Congressional Record, Volume 151 Issue 4 (Monday, January 24, 2005)

[Congressional Record Volume 151, Number 4 (Monday, January 24, 2005)]
[Senate]
[Pages S146-S367]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page S146]]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. GREGG (for himself, Mr. Frist, Mr. Sessions, Mr. DeWine,
Mr. Allen, Mr. Santorum, Mr. McConnell, and Mr. DeMint):
S. 3. A bill to strengthen and protect America in the war on terror;
to the Committee on Finance.
Mr. ENZI. Mr. President, as reports continue to appear in the media,
there can be little doubt that a critical area of homeland security,
and one on which I will be focusing as Chairman of the Health,
Education, Labor and Pensions Committee, is the issue of bioterrorism.
It is clear that we cannot separate the need for a strong national
biodefense from other aspects of emergency preparedness.
Last summer, when President Bush signed the Project Bioshield Act
into law, he called bioterrorism and efforts to use modern technologies
against us the greatest danger of our time. The threat posed by
bioterror has not gone unnoticed by terrorists and those who wish to do
us harm. That is why we must continue to do everything we can to ensure
our ability to respond to the use of biological weapons.
In the months to come, my Committee will be working together to
develop the strategy we will need to provide for a strong national
biodefense. We will be exploring a number of options in that effort,
like providing incentives to increase private sector participation in
the development of bioterror countermeasures and biopreparedness tools.
We will also be examining ways to strengthen our domestic vaccine
industry and increase the overall readiness of our public health
system.
While I commend its intent, I declined to cosponsor S. 3, the
Republican leadership bioterrorism bill introduced today. I look
forward to developing bipartisan legislation to strengthen our national
biodefense system in our Committee. Senator Burr, who will be heading
the Subcommittee on Bioterrorism and Public Health Preparedness, will
be an important part of that effort. I am also looking forward to the
input of my fellow Committee members, including Senators Kennedy, Gregg
and Hatch, as well as Senator Lieberman, who, while not a member of my
Committee, has made this a priority of his work in the Congress and put
a great deal of thought and effort into the area. In the coming weeks
and months, I will also be convening a number of discussions with
critical stakeholders and experts as we develop our legislation.
Together, I am confident we can build on the work Congress and
President Bush began with the Project Bioshield legislation and do what
is necessary to ensure that we are as prepared as we possibly can be
for the ever-present and constantly changing threat of bioterrorism.
______

By Mr. ENZI (for himself, Mr. Frist, and Mr. McConnell):
S. 9. A bill to improve American competitiveness in the global
economy by improving and strengthening Federal education and training
programs, and for other purposes; to the Committee on Finance.
Mr. ENZI. Mr. President, last week we had an opportunity to be a part
of a truly historic event. As we gathered together on the west front of
the Capitol, a huge crowd joined us along the Mall and down
Pennsylvania Avenue to witness the inauguration of President Bush. It
was a great moment for America as the President took his oath of
office. Later, in what was one of the best inaugural speeches I have
ever heard, he outlined his vision for the future and the theme for his
second term.
It filled my heart with pride to hear him speak about freedom and the
role America would continue to play in helping to bring its bright
light to bear on the darkest regions of the world. As he spoke, I was
pleased to hear him also renew, his commitment to our Nation's
education system and to bringing the highest standards to our schools.
The President made it clear that such an effort was an important part
of making sure that every American has a stake in our future as a
nation. Without it, the American dream we have shared for many years
may be reduced to a nightmare for future generations.
Clearly, we can't allow that to happen. That is why I am pleased to
join, with the distinguished majority leader, Dr. Frist, and my friend
and colleague, from Tennessee, Senator Alexander, in introducing
legislation we have written to address that need and ensure a brighter
future for our children. Among the goals our legislation seeks to
address is the importance of strengthening our public education system,
ensuring parents are involved in the process and, above all, giving our
teachers the support they need to obtain the results we must have if
our children are to have the best chance to succeed in life.
The legislation I am introducing today continues the work we began
with the passage of the No Child Left Behind Act. That bipartisan
legislation made it clear that we had high expectations for all public
school children. It made making sure those expectations were met the
center of our Federal education policy. That policy has had good
results. Children all over the country, including minority children,
are improving their reading skills. Their math scores are getting
better. In another 2 years, when science is included in the State
assessments, I believe we will see that students are doing better in
that subject, too. Thanks to the passage of the No Child Left Behind
Act that we all had a hand in, we are continuing to see more and more
positive results in our schools.
Although our record of success is impressive, there is still room for
more improvement. According to the most recent National Assessment of
Education Progress, over 25 percent of twelfth grade students could not
read at grade level. Only two-thirds of students entering the ninth
grade are expected to complete high school within 4 years. That is a
dire forecast for our future, but it need not be so if we stick to the
goals we have set and work to achieve them.
We want to make sure we continue to set high expectations of what all
students can achieve, regardless of their background. This needs to be
a common theme in all our Federal education programs. All students can
learn and every child can be a star pupil. It is not just a slogan. It
is a philosophy that our teachers need to put into practice every day
in the classroom. It must then be echoed by every student's parents
each evening at home at the dinner table.
We need to make sure Federal programs emphasize accountability, but
we also need to make sure we do it in a way that makes sense. Many
Federal programs designed to serve the same population of students have
different requirements. We can help our teachers serve their students
better by reducing the amount of time they spend outside the classroom
on activities that don't help our children learn. Federal program
requirements should not work against the, goal we have set of improving
student achievement.
It is important to provide flexibility to the States so they can
manage Federal program dollars and address their unique needs in the
most effective manner possible. We need to let leaders at the State and
local level make the important decisions about this country's
education, because they are at the level closest to the people--and
closest to the classroom where we must continue to get good results
from our efforts.
The needs of rural schools must also continue to be addressed.
Schools in rural States like Wyoming have unique needs and serve
smaller populations. They can't be administered like the large schools
of the big cities in the East. One-size-fits-all policies that may work
in large population centers are all too often doomed to fail in the
smaller towns and cities of the West.
Although funding will be a key in the effort to address these issues,
the Federal Government provides only a fraction of education spending
in this country. For K-12 education, the Federal investment is still
around 8 percent. The rest of the money comes from States and local
districts. We need to trust these educators and administrators to work
on behalf of the children in their charge. We must ensure they have the
tools they need to serve their students and help all children in their
area succeed.
We also want to support lifelong learning opportunities for students
at every stage in their life. Education is

[[Page S147]]

changing; the way we approach learning has to change as well. Federal
programs should reflect these changes and help our students adapt to
them. Las year, more than 70 percent of college students were
considered ``nontraditional.'' Our education system needs to address
the needs of adult learners, as well as children who take the more
``traditional'' track in education.
We want to create a strong link between education and the workforce.
Businesses are creating and filling good jobs with good candidates, and
we want to make sure we are filling those jobs with American workers.
In our technology-driven economy, school can never be out. It is
estimated that 60 percent of tomorrow's jobs will require skills that
only 20 percent of today's workers possess. It is also estimated that
the average worker leaving college today will switch careers 14 times
in their life, and 10 of those careers haven't been invented yet.
To address those needs, we need a system in place that can support a
lifetime of education, training, and retraining. As tomorrow's workers
change careers, they will need to learn new skills, or to apply their
current skills in new ways. Our postsecondary institutions will play a
critical role in supporting these students, as they do now through a
number of Federal education programs.
High school dropouts are the most at-risk school population in the
workforce. We must look at Federal efforts to reform high schools to
make sure we are keeping students in school. We need to make sure that
students are leaving high school with a diploma, a quality education,
and the strong foundation of reading, writing, math and science skills
that will help them succeed in the workforce. We must also reach out to
those who do not have high school diplomas to give them an opportunity
to increase the level of their skills so that they, too, have a chance
to succeed in life. We can do that by increasing their awareness of and
involvement in lifetime of learning programs.
In this bill, we have also included language to reauthorize the
Workforce Investment Act. That will help an estimated 900,000
unemployed workers each year get back to work and provide American
workers with the skills they will need to be competitive in the global
marketplace. That will help them land the good jobs that will be
created in the years to come. Our legislation will also support the
needs of businesses including small businesses looking for skilled
workers. In addition, the bill will strengthen the role of public
education institutions in the Federal workforce preparation effort,
including our community colleges.
As we work on this and other education legislation, we must ensure we
are focused on getting the results that will help our children succeed
in life. We can do that by incorporating high expectations,
accountability, flexibility for our States in administering Federal
assistance, and a lifetime of learning opportunities, into our
education policies. If we do that, every child's life will be a success
story and everyone will have the freedom to live their own version of
the American dream.
As we continue to work on improving our Nation's education system, an
educated citizenry will continue to be our goal. It will never be
enough to provide our children with a diploma. We must provide them
with the skills they will need to compete for and win the jobs of
tomorrow and keep them.
______

By Mr. LEVIN (for himself, Mr. Reid, Ms. Mikulski, Ms. Stabenow,
Mr. Inouye, Mr. Dorgan, Mr. Lautenberg, Mr. Leahy, Mr. Salazar,
Mr. Rockefeller, Mrs. Murray, Mr. Bingaman, Mrs. Feinstein, Mr.
Durbin, Mr. Kennedy, Mr. Corzine, Mr. Pryor, Mr. Nelson of
Nebraska, Mr. Reed, Mr. Schumer, and Mr. Dayton):
S. 11. A bill to amend title 10, United States Code, to ensure that
the strength of the Armed Forces and the protections and benefits for
members of the Armed Forces and their families are adequate for keeping
the commitment of the people of the United States to support their
service members, and for other purposes; to the Committee on Finance.
Mr. LEVIN. Mr. President, I am honored to introduce the Standing with
Our Troops Act of 2005. This bill addresses the needs of the Soldiers,
Sailors, Airmen, and Marines who have responded so bravely to the call
of our Nation. We owe it to them and their families to ensure that they
are properly trained and equipped for the hazardous duties they are
performing, that they are fairly compensated for their service, and
that they receive their pay in the correct amount, on time.
We start with the recognition that we have cut our troop strength too
far to sustain current military operations. This bill would authorize
increases of up to 40,000 additional active duty Soldiers and Marines
over the next two years. The bill authorizes an increase in the active
duty Army end strength by up to 20,000 Soldiers in 2006 and an
additional 10,000 in 2007, and it authorizes an increase in the Marine
Corps' active duty end strength by up to 5,000 Marines in 2006 and an
additional 5,000 Marines in 2007.
The Department of Defense currently reports numbers of service
members killed or seriously wounded in action in our ongoing combat
operations in Iraq and Afghanistan. This bill would require a formal
monthly report that includes the numbers of Soldiers, Sailors, Airmen
and Marines who are killed in action; killed as a result of non-combat
injuries incurred during combat operations; killed as a result of self-
inflicted wounds or suicide; wounded in action, when the injuries
prevent the service member from returning to duty within 72 hours;
wounded in action when the service member returns to duty within 72
hours, insofar as this data is currently maintained; and the total
number of service personnel evacuated from theater for medical reasons.
To ensure that awards and decorations are expeditiously and fairly
awarded to deserving military personnel, this bill would establish an
Advisory Panel on Military Awards and Decorations to review the
policies and practices of each of the Services for awarding medals and
decorations and to report to Congress. This Panel would compare the
different Service policies and practices for decorating its military
personnel, and make a recommendation as to whether individual service
practices should be continued or a single standard adopted that applies
to all Services; recommend measures that can be taken to ensure that
service members serving in combat are at least as likely to receive
medals as those not exposed to combat, and enlisted personnel are just
as likely as officers to be decorated for their service.
This bill would create an Office of Mobilization Planning and
Preparedness within the National Security Council to ensure that all of
our national resources are assembled and organized to respond to a
national security emergency. National resources include our military,
labor, transportation, industry and financial resources.
We know that current military operations are wearing out military
equipment faster than we are replacing it. To address this, this bill
would require the Secretary of Defense to report to Congress on the
needs of our military forces for reconstituting stocks of equipment and
material damaged, destroyed, and worn out in Operation Iraqi Freedom
and Operation Enduring Freedom. The report will include the needs of
each military service, including the reserve components, for repair and
replacement of equipment; and authorize appropriation of $8.5 billion
for the Army and $2.1 billion for the Marine Corps for repair,
refurbishment, and replacement of equipment used in OIF and OEF.
The Government Accountability Office (GAO) found, and I agree, that
the Department of Defense's mobilization and deployment policies were
implemented in a piecemeal fashion not linked to a strategic framework.
We owe it to our service men and women to have clear policies regarding
lengths of deployments. The Department of Defense must clearly
communicate these policies and other deployment related information to
service members and their families. This bill would require the
Secretary of Defense to report to Congress on DoD policies on lengths
of mobilization and deployment periods and on the use of stop-loss to
keep military personnel in the service beyond their service
commitments.

[[Page S148]]

In two separate reports, the GAO has found that more than 90 percent
mobilized reserve component personnel experienced pay problems. The GAO
found that ``These pay problems often had a profound adverse impact on
individual soldiers and their families.'' This bill would require the
designation of a senior official to ensure implementation of GAO
recommendations to correct these pay problems.
Representation of our reserve component personnel at the highest
levels in the Department of Defense has not kept pace with the
increased role of our Guard and Reserve personnel. Accordingly, this
bill creates a new position, a Deputy Under Secretary of Defense for
Reserve Affairs, to speak for the Reserve Components.
This bill would give tax relief to mobilized service members and
employers who make up for pay lost to service members who are ordered
to active duty. It would amend the Internal Revenue Code to authorize
activated National Guard and Reserve personnel to make penalty free
withdrawals from qualified retirement plans; allow employers a tax
deduction for making up the difference between military pay and
civilian income of mobilized reservists; and authorize a tax credit to
small business employers who continue to compensate members of the
Ready Reserve ordered to active duty and for costs of hiring a
replacement employee.
We know that the military pay of about a third of our mobilized
National Guard and Reserve personnel is less than the pay they received
from their civilian jobs. Many private employers already pay a wage
differential to those who lose money, and we will encourage more to do
so with the tax incentives I have just described. The biggest employer
of our Guard and Reserve personnel is the Federal Government, and the
Federal Government should do as much as the private employers do for
those who lose money while serving our Nation. This bill would require
Federal Agencies to make up the pay differences for Federal employees
who are ordered to active duty.
Studies have shown that 40 percent of our junior enlisted members in
the reserve components have no health insurance except when they are on
active duty. This bill would provide access to the military's TRICARE
health care program for all members of the Selected Reserve and their
families. They would pay a subsidized premium similar to the premium
charged Federal Employees for health care. This will help to ensure
that members of the National Guard and Reserves are medically ready
when called to serve in the military.
When a Soldier, Sailor, Airmen or Marine dies on active duty, his
survivors currently receive a death gratuity of just over $12,000. This
is simply not enough. This bill would raise the death gratuity to
$100,000, and would allow survivors to receive Dependency and Indemnity
Compensation from the VA as well as a Survivor Benefit Plan annuity
from the Department of Defense.
United States taxpayers have borne a disproportionate share of the
cost for the reconstruction of Iraq. The support of the international
community for this reconstruction is critical. This bill would require
the President to report to Congress on U.S., Iraqi, and foreign
contributions to Iraq's reconstruction before any new U.S.
reconstruction funds are appropriated. The bill would also require any
U.S. funds for reconstruction in Iraq be in the form of a
collateralized loan which the U.S. would guarantee unless the President
reports to Congress that it is in the U.S. national security interest
to provide the funds other than in the form of a loan.
I again want to compliment the service of the young men and women
serving in our military forces for their magnificent and unselfish
service to our Nation. I trust that the measures included in this bill
will serve as a token of the Nation's sincere appreciation for their
great sacrifices and service.

S. 11

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Standing With Our Troops Act
of 2005''.

DIVISION A--FULFILLMENT OF OBLIGATIONS TO THE MEMBERS OF THE ARMED
FORCES

TITLE I--STRENGTHS OF THE ARMY AND MARINE CORPS ACTIVE FORCES

SEC. 101. FINDINGS.

Congress makes the following findings:
(1) While the United States Armed Forces remain the premier
fighting force in the world, the Defense Science Board, in a
study carried out in the summer of 2004, found that ``When we
match the existing and projected force structure with the
current and projected need for stabilization forces we see an
enduring shortfall in both total numbers of people and their
ability to sustain the continuity of stabilization
efforts.''.
(2) Between 1989 and 2004, the military personnel end
strength of the Army has been reduced by more than 34
percent, and the Department of the Army's civilian workforce
has been reduced by more than 45 percent, while the mission
rate of the Army has increased by 300 percent.
(3) Because of the personnel reductions, the Army National
Guard and the Army Reserve are repeatedly being called to
active duty to meet Army mission requirements that the
active-duty force of the Army is no longer large enough to
meet alone. Army National Guard and Army Reserve units have
provided up to 40 percent of the military personnel engaged
in Operation Iraqi Freedom while they have also been
performing a dramatically increased role in homeland defense
and continuing to respond to natural disasters, other
domestic emergencies, and military contingencies. As a
result, the reserve components of the Army have been pushed
to the breaking point.

SEC. 102. ARMY.

(a) Strength for Fiscal Year 2006.--Effective on October 1,
2005, section 691(b)(1) of title 10, United States Code, is
amended by striking ``502,400'' and inserting ``522,400''.
(b) Strength for Fiscal Years After Fiscal Year 2006.--
Effective on October 1, 2006, section 691(b)(1) of such title
is amended by striking ``522,400'' and inserting ``532,400''.

SEC. 103. MARINE CORPS.

(a) Strength for Fiscal Year 2006.--Effective on October 1,
2005, section 691(b)(3) of title 10, United States Code, is
amended by striking ``178,000'' and inserting ``183,000''.
(b) Strength for Fiscal Years After Fiscal Year 2006.--
Effective on October 1, 2006, section 691(b)(3) of title 10,
United States Code, is amended by striking ``183,000'' and
inserting ``188,000''.

TITLE II--FULL RECOGNITION OF SACRIFICE AND VALOR OF UNITED STATES
SERVICEMEMBERS

Subtitle A--Findings

SEC 201. FINDINGS.

Congress makes the following findings:
(1) On November 21, 2004, the Columbia Broadcasting System
television program 60 Minutes reported that the staff of that
program had received from the Department of Defense a letter
containing the assertion that ``[m]ore than 15,000 troops
with so-called `non-battle' injuries and diseases have been
evacuated from Iraq.''.
(2) This report was a rare disclosure by the Department of
Defense, as it is the policy of the Department of Defense not
to disclose publicly the number of Armed Forces personnel
that sustain non-combat injuries.

Subtitle B--Accounting for Casualties Incurred in the Prosecution of
the Global War on Terrorism

SEC. 211. MONTHLY ACCOUNTING.

Not later than five days after the end of each month, the
Secretary of Defense shall publish, for such month for each
operation described in section 212, a full accounting of the
casualties among the members of the Armed Forces that were
incurred in such operation during that month.

SEC. 212. OPERATIONS COVERED.

The operations referred to in section 211 are as follows:
(1) Operation Iraqi Freedom.
(2) Operation Enduring Freedom.
(3) Each other operation undertaken by the Armed Forces in
the prosecution of the Global War on Terrorism.

SEC. 213. COMPREHENSIVE CONTENT OF ACCOUNTING.

For the purpose of providing a full and complete accounting
of casualties covered by a report under section 211, the
Secretary of Defense shall include in the report the number
of casualties in each casualty status in accordance with
section 214.

SEC. 214. CASUALTY STATUS.

(a) Status Types.--In a report under this title, each
casualty among members of the Armed Forces shall be
characterized by the most specific casualty status applicable
to the member as follows:
(1) Killed in action.
(2) Killed in non-hostile duty.
(3) Killed, self-inflicted.
(4) Wounded in action, not returned to duty.
(5) Wounded in action, returned to duty (to the extent that
data is available to support this characterization of
casualty status).
(6) Evacuated for medical reasons.
(b) Definitions.--In this section:
(1) Killed in action.--The term ``killed in action'', with
respect to a member of the Armed Forces, means that the
member incurred one or more mortal wounds while involved in
an action against a hostile force, whether or not the wounds
are inflicted by the hostile force.

[[Page S149]]

(2) Killed in non-hostile duty.--The term ``killed in non-
hostile duty'', with respect to a member of the Armed Forces,
means that the member incurred one or more mortal wounds that
were not self-inflicted and not inflicted during an action
against a hostile force.
(3) Killed, self-inflicted.--The term ``killed, self-
inflicted'', with respect to a member of the Armed Forces,
means a suicide of the member or the death of the member as a
result of one or more self-inflicted injuries.
(4) Wounded in action, not returned to duty.--The term
``wounded in action, not returned to duty'', with respect to
a member of the Armed Forces, means that the member, while
involved in an action against a hostile force, incurred one
or more non-mortal injuries that required medical attention
and that prevented the member from returning to duty within
72 hours after incurring the injury or injuries.
(5) Wounded in action, returned to duty.--The term
``wounded in action, returned to duty'', with respect to a
member of the Armed Forces, means that the member, while
involved in an action against a hostile force, incurred one
or more non-mortal injuries that required medical attention
but did not prevent the member from returning to duty within
72 hours after incurring the injury or injuries.
(6) Evacuated for medical reasons.--The term ``evacuated
for medical reasons'', with respect to a member of the Armed
Forces, means that the member was evacuated from a theater of
operations for medical reasons.

SEC. 215. PUBLICATION AND RELEASE OF REPORT.

The Secretary of Defense shall--
(1) post the report under this title on the official
website of the Department of Defense; and
(2) transmit a copy of the report to the chairmen and
ranking members of the Committees on Armed Services of the
Senate and the House of Representatives.

SEC. 216. SENSE OF CONGRESS.

It is the sense of Congress that the Secretary of Defense
has an obligation to ensure full and accurate reporting of
casualties among the members of the Armed Forces to Congress
and the people of the United States.

Subtitle C--Advisory Panel on Military Awards and Decorations

SEC. 221. ESTABLISHMENT.

The Secretary of Defense shall establish within the
Department of Defense an Advisory Panel on Military Awards
and Decorations.

SEC. 222. DUTIES.

(a) Comprehensive Review of Military Decorations System.--
The Advisory Panel shall conduct a comprehensive review of
the standards and processes used in the Armed Forces to award
medals and decorations to members of the Armed Forces. The
review shall include the following matters:
(1) An examination and evaluation of the standards of each
of the Armed Forces for awarding each medal and decoration.
(2) A comparison of the standards of each of the Armed
Forces with the standards of each of the other Armed Forces
for awarding comparable medals and decorations.
(3) An examination and evaluation of the speed with which--
(A) each of the Armed Forces identifies and considers
members for the awarding of medals and decorations; and
(B) the medals and decorations are ultimately awarded.
(4) A review of the medals and decorations awarded by the
Armed Forces during 2002, 2003, and 2004, together with a
review of the ranks of the recipients and the mission-related
and other circumstances that are associated with the awarding
of the medals and decorations to those recipients.
(b) Report.--
(1) Requirement for report.--Not later than 18 months after
the date of the enactment of this Act, the Advisory Panel
shall submit a report on the results of the review under this
section to the Secretary of Defense and to Congress.
(2) Content.--The report under this subsection shall
contain the findings and conclusions of the Advisory Panel
together with any recommendations for action that the panel
considers appropriate, and shall include the following
matters:
(A) A discussion of the merits of maintaining for each of
the Armed Forces separate policies for the awarding of
comparable medals and decorations of the Armed Forces,
together with a discussion of the merits of adopting uniform
standards for awarding such medals and decorations.
(B) Measures that can be taken by each of the Armed Forces
to expedite the process for timely identifying a member who
deserves a medal of decoration, determining the
appropriateness of awarding the medal or decoration to the
member, and, in each appropriate case, awarding the medal or
decoration to the member.
(C) Measures that can be taken to ensure that--
(i) members serving in combat are at least equally as
likely to be considered for the awarding of medals and
decorations as are personnel not exposed to combat; and
(ii) enlisted personnel are at least as likely to be
considered for the awarding of medals and decorations as are
officers.
(D) A recommendation regarding whether the Valor device
awarded by each of the Armed Forces should be replaced by a
separate class of medals honoring special bravery in combat.
(E) A determination of the desirability of adding a new
class of medals, similar to the Purple Heart, to be awarded
to military personnel who incur non-combat injuries in
connection with performance of an official mission or duty
during a combat operation in order to honor their sacrifice
in service to the people of the United States.
(c) Scope Limited to Department of Defense.--The scope of
the review and report under this section does not include the
Coast Guard.

SEC. 223. COMPOSITION AND ADMINISTRATION.

(a) Composition.--
(1) Number; appointment.--The Advisory Panel shall be
composed of not more than seven members appointed by the
Secretary of Defense.
(2) General and flag officers.--The Secretary shall ensure
that the membership of the task force includes a retired
general or flag officer from each of the Army, Navy, Air
Force, and Marine Corps who is familiar with the policies of
the Armed Forces regarding military awards and decorations.
(3) Veterans.--The Secretary shall appoint at least one
representative of a leading veterans' advocacy organization
as a member of the Advisory Panel.
(b) Time for Appointment.--All members of the Advisory
Panel shall be appointed within 60 days after the date of the
enactment of this Act.
(c) Chairperson.--The chairperson of the Advisory Panel
shall be selected from among the members of the Advisory
Panel by a majority vote of the members.
(d) Compensation and Expenses of Members.--Each member of
the Advisory Panel shall serve without compensation, but
shall be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from the member's home or regular places of
business in the performance of services for the Advisory
Panel.
(e) Federal Advisory Committee Act.--The Federal Advisory
Committee Act (5 U.S.C. App) shall not apply to the Advisory
Panel.

SEC. 224. COOPERATION OF FEDERAL AGENCIES.

(a) Information.--The Advisory Panel may obtain directly
from the Department of Defense, the Department of Veterans
Affairs, or any other department or agency of the United
States any information of such department or agency that the
panel considers necessary for the panel to carry out its
duties.
(b) Other Cooperation.--The Secretary of Defense, the
Secretary of Veterans Affairs, and any other official of the
United States shall provide the Advisory Panel with full and
timely cooperation requested by the panel in carrying out its
duties under this section.

SEC. 225. TERMINATION.

The Advisory Panel on Military Awards and Decorations shall
terminate 30 days after the submission of the report to
Congress under section 222(b).

TITLE III--MILITARY EQUIPMENT AND MATERIEL

SEC. 301. FINDINGS.

Congress makes the following findings:
(1) United States military personnel serving in Operations
Iraqi Freedom have experienced significant shortages of
critical equipment, such as body armor, aircraft
survivability equipment, and armored trucks, including up-
armored High Mobility Multipurpose Wheeled Vehicles. In many
cases the shortages have lasted several months. For example,
the individual body armor needed for protecting every member
of the Armed Forces and Department of Defense civilians in
Iraq was not produced and fielded until February 2004, 11
months after Operation Iraqi Freedom was launched. Shortages
of armor for Army trucks still existed as of the beginning of
2005.
(2) Operation Iraqi Freedom and Operation Enduring Freedom
have taken a substantial toll on military equipment of the
Armed Forces. The commanding general of the Army Material
Command estimated in 2004 that the Army is wearing out its
equipment in Iraq and Afghanistan at a rate that could be up
to 10 times faster than the rate at which it wears out its
equipment elsewhere during peacetime, and there are no
significant reserve stocks of that equipment remaining.
(3) It is a solemn obligation of the United States
Government to ensure that, whenever the Armed Forces are
called into battle, the military personnel fighting or
supporting the battle are provided with the safest, most
effective technology and equipment.

SEC. 302. MOBILIZATION PLANNING AND PREPAREDNESS.

(a) Director of Mobilization Planning and Preparedness.--
Title I of the National Security Act of 1947 (50 U.S.C. 402
et seq.) is amended by striking section 107 and inserting the
following new sections:

``director of mobilization planning and preparedness

``Sec. 107. Definitions.--In this section:
``(1) The term `Director' means the Director of
Mobilization Planning and Preparedness referred to in
subsection (b)(1), except where the context clearly indicates
otherwise.
``(2) The term `national security emergency' means any
occurrence, including a

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natural disaster, a military or terrorist attack against the
territory of the United States, a military operation carried
out by the Armed Forces abroad, a technological emergency, or
any other emergency, that either seriously degrades or
threatens the security of the United States or the Armed
Forces.
``(3) The term `mobilization' means the act of assembling
and organizing national resources, including military
personnel and equipment, labor, transportation systems,
industry, and financial resources, to support national
objectives of the United States in time of a national
security emergency.
``(4) The term `mobilization planning and preparedness'
means all aspects of planning and preparing for a
mobilization for a national security emergency, including the
identification of functions that would have to be performed
during a national security emergency, development of plans
for performing such functions, development of the capability
to execute such plans, and development of policies that
maximize the speed and efficiency with which such plans can
be executed during a national security emergency.
``(b) Position of Director.--
``(1) Establishment.--There is a Director of Mobilization
Planning and Preparedness on the staff of the National
Security Council.
``(2) Appointment.--The Director is appointed by the
Assistant to the President for National Security Affairs.
``(3) Relationship to national security advisor.--The
Director reports directly to the Assistant to the President
for National Security Affairs.
``(c) Duties.--
``(1) Principal duty.--The Director is the principal
adviser to the Assistant to the President for National
Security Affairs on matters of mobilization planning and
preparedness.
``(2) Specific duties.--The duties of the Director include
the following:
``(A) Identify which governmental and private sector
functions must be performed on a sustained basis during a
national security emergency.
``(B) Develop plans for the sustained performance of the
identified functions.
``(C) Provide guidance on the development of the capability
to execute the plans.
``(D) Recommend policies for the maximization of the speed
and efficiency with which the plans can be executed during a
national security emergency.
``(E) Recommend planning and policy guidance regarding
involvement of the National Guard in 2 or more national
security emergency operations concurrently.
``(F) Administer quarterly exercises simulating
mobilization for various types of national security
emergencies, including the following:
``(i) A major military operation carried out in and around
1 or more foreign countries.
``(ii) An occupation and reconstruction mission.
``(iii) A terrorist attack within the United States.
``(iv) A natural disaster within the United States.
``(v) A major humanitarian crisis in 1 or more foreign
countries.
``(vi) A minor military intervention in a foreign country.
``(3) Related duties.--
``(A) Mobilization planning and preparedness policy
coordinating committee.--The Director serves on the
Mobilization Planning and Preparedness Policy Coordinating
Committee as provided in section 107A.
``(B) Department of defense primary allocation of
industrial resources task force.--The Director serves as a
member of the Primary Allocation of Industrial Resources Task
Force of the Department of Defense.
``(d) Office of Mobilization Planning and Preparedness.--
``(1) Establishment.--There is an Office of Mobilization
Planning and Preparedness within the National Security
Council. The Director is the head of the office.
``(2) Composition.--The Office of Mobilization Planning and
Preparedness is composed of the following personnel:
``(A) Thirty employees appointed by the Assistant to the
President for National Security Affairs.
``(B) An employee of the Department of Defense, who shall
be detailed to the Office by the Under Secretary of Defense
for Acquisition, Technology, and Logistics to serve as
liaison between the Department of Defense and the Director to
ensure that comprehensive and accurate information on the
needs of the Armed Forces for equipment and materiel in a
national security emergency are timely communicated to the
Director.
``(e) Coordination With National Counterterrorism Center.--
``(1) Liaison officer.--The Director shall detail an
employee of the Office to the National Counterterrorism
Center to serve as a liaison officer between the Director of
Mobilization Planning and Preparedness and the Director of
the National Counterterrorism Center for collaboration on
counterterrorism-related information and issues necessary for
effective mobilization planning and preparedness.
``(2) Responsibility of director of national
counterterrorism center.--The Director of the National
Counterterrorism Center shall ensure that the liaison officer
is accorded such privileges at the Center as are necessary to
ensure that the collaboration between the Director of the
National Counterterrorism Center and the Director of
Mobilization Planning and Preparedness on counterterrorism-
related information and issues is effective.
``(f) Annual Report.--
``(1) Requirement for report.--The President, acting
through the Director, shall submit to Congress each year a
report on mobilization planning and preparedness.
``(2) Content.--The annual report under this subsection
shall include the following information:
``(A) Funding needs for mobilization planning and
preparedness.
``(B) An assessment of the state of mobilization planning
and preparedness in the United States.
``(C) Any recommended policies on mobilization planning and
preparedness that the President, in consultation with the
Assistant to the President for National Security Affairs and
the Director, considers appropriate.

``mobilization planning and preparedness policy coordinating committee

``Sec. 107A. (a) Mobilization Planning and Preparedness
Defined.--In this section, the term `mobilization planning
and preparedness' has the meaning given that term in section
107(a).
``(b) Establishment.--There is in the executive branch an
interagency committee known as the `Mobilization Planning and
Preparedness Policy Coordinating Committee'.
``(c) Composition.--The Committee shall be composed of the
following members:
``(1) The Director of Mobilization Planning and
Preparedness of the National Security Council, who shall
chair the committee.
``(2) The Under Secretary for Emergency Preparedness and
Response of the Department of Homeland Security.
``(3) The Under Secretary of State for Economic, Business,
and Agricultural Affairs.
``(4) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
``(5) The Associate Attorney General.
``(6) The Assistant Secretary of the Interior for Land and
Minerals Management.
``(7) The Under Secretary of Commerce for Industry and
Security.
``(8) The Deputy Secretary of Labor.
``(9) The Assistant Secretary of Health and Human Services
for Public Health Emergency Preparedness.
``(10) The Under Secretary of Transportation for Policy.
``(11) The Under Secretary of Energy for Energy, Science,
and Environment.
``(12) One member designated by the Assistant to the
President for National Security Affairs.
``(13) One member designated by the Director of National
Intelligence.
``(d) Duties.--The Committee has the following duties:
``(1) To review, at least once each year, the mobilization
planning and preparedness policies of the United States.
``(2) To make any recommendations for action to improve
mobilization planning and preparedness that the Committee
determines appropriate.
``(3) To participate in the exercises conducted by the
Director of Mobilization Planning and Preparedness of the
Department under section 510(b)(2)(F).''.
(b) Clerical Amendment.--The table of contents in the first
section of the National Security Act of 1947 is amended by
striking the item relating to section 107 and inserting the
following new items:

``Sec. 107. Director of Mobilization Planning and Preparedness.
``Sec. 107A. Mobilization Planning and Preparedness Policy Coordinating
Committee.''.

SEC. 303. REPORT ON RECONSTITUTION NEEDS OF THE ARMED FORCES.

(a) Report Required.--
(1) Requirement for report.--Not later than March 1, 2005,
the Secretary of Defense shall submit to the congressional
defense committees a report on the needs of the Armed Forces
for reconstituting its stocks of military equipment and other
materiel in view of the attrition of military equipment and
other materiel experienced by the Armed Forces in Operation
Iraqi Freedom and Operation Enduring Freedom.
(2) Consultation.--The Secretary shall consult with the
Chief of Staff of the Army, the Chief of Staff of the Air
Force, the Chief of Naval Operations, the Commandant of the
Marine Corps, and the Inspector General of each of the Armed
Forces in preparing the report under this section.
(b) Content.--The report shall include an assessment of
each of the following matters:
(1) The extent of the damage and destruction of military
equipment and other military materiel in Operation Iraqi
Freedom and Operation Enduring Freedom.
(2) The amount of such equipment, if any, that has become
ineffective or obsolete by age or other causes.
(3) The needs of each of the Armed Forces, including the
reserve components as well as the regular components, for
repair and replacement of equipment.
(4) The total cost of reconstituting the stocks of military
equipment and other materiel of the Armed Forces to meet the
needs of the Armed Forces.
(5) The time needed to reconstitute such stocks to meet
those needs.

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SEC. 304. AUTHORIZATIONS OF APPROPRIATIONS.

(a) Army.--Funds are hereby authorized to be appropriated
for fiscal year 2005 for the use of the Army for the repair,
refurbishment, and replacement of equipment used by the Army
in Operation Iraqi Freedom or Operation Enduring Freedom, as
follows:
(1) Operation and maintenance.--For expenses, not otherwise
provided for, for operation and maintenance, $6,000,000,000.
(2) Procurement.--For procurement, $2,500,000,000.
(b) Marine Corps.--Fund are hereby authorized to be
appropriated for fiscal year 2005 for the use of the Marine
Corps for the repair, refurbishment, and replacement of
equipment used by the Marine Corps in Operation Iraqi Freedom
or Operation Enduring Freedom, as follows:
(1) Operation and maintenance.--For expenses, not otherwise
provided for, for operation and maintenance, $640,000,000.
(2) Procurement.--For procurement, $1,500,000,000.
(c) Availability Through Fiscal Year 2006.--Amounts
authorized to be appropriated under this section shall remain
available until September 30, 2006.
(d) Limitation.--None of the funds appropriated pursuant to
an authorization of appropriations in this section may be
obligated or expended until the date that is 15 days after
the date on which the Secretary of Defense transmits to the
congressional defense committees a report on the specific use
for which the funds are to be obligated or expended,
respectively.

SEC. 305. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

In this title, the term ``congressional defense
committees'' has the meaning given such term in section
101(a)(16) of title 10, United States Code.

TITLE IV--PERIODS OF OVERSEAS DEPLOYMENTS OF RESERVES

SEC. 401. FINDINGS.

Congress makes the following findings:
(1) The Department of Defense failed to establish an
adequate troop deployment and rotation policy for Operation
Iraqi Freedom until several months after the operation had
begun. For several reserve component units involved in that
operation before 2005, the demobilization date was
rescheduled three or more times before the unit members were
finally allowed to return home.
(2) Without an adequate deployment and rotation plan, the
Department of Defense has relied on a series of stop-gap
measures to retain a sufficient number of troops to carry out
the United States missions in Operation Iraqi Freedom and
Operation Enduring Freedom, including--
(A) institution of a so-called ``stop-loss'' policy that
prevents personnel from leaving their units during
deployment;
(B) extensions of deployments beyond scheduled
demobilization dates; and
(C) activation of members of the Individual Ready Reserve.
(3) In September 2004, the Government Accountability Office
reported that ``Many of DOD's policies that affect mobilized
reserve component personnel were implemented in a piecemeal
manner and were not linked within the context of a strategic
framework to meet the organizational goals. . . . Without a
strategic framework, OSD and the services made several
changes to their personnel policies to increase the
availability of the reserve components for the longer-term
requirements of the Global War on Terrorism, and
predictability declined for reserve component members.''.
(4) Fairness to the men and women of the Armed Forces
deployed overseas requires that the Department of Defense--
(A) have clear policies regarding lengths of deployment
periods; and
(B) communicate these policies and other deployment-related
information to them and their families.

SEC. 402. SENSE OF CONGRESS ON TWO-YEAR LIMIT ON
MOBILIZATION.

It is the sense of Congress that the Secretary of Defense
should continue the existing Department of Defense policy of
limiting to a total of 24 months the period for which members
of the reserve components serve on active duty to which
called or ordered in support of a contingency operation.

SEC. 403. COMMUNICATION OF LENGTHS OF DEPLOYMENT PERIODS TO
RESERVES IN OPERATION IRAQI FREEDOM.

(a) Report of Department of Defense Policies.--
(1) Requirement for report.--Not later than March 1, 2005,
the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives
a report on--
(A) Department of Defense policies governing the length of
mobilization and deployment periods applicable to members of
reserve components of the Armed Forces in connection with
Operation Iraqi Freedom, and on the communication between the
Department of Defense and reserve component personnel and
their families regarding the lengths of the mobilization
deployment periods; and
(B) Department of Defense stop-loss policies.
(2) Consultation requirement.--In preparing the report, the
Secretary shall consult with the Chairman and other members
of the Joint Chiefs of Staff and with such other officials as
the Secretary considers appropriate.
(b) Content of Report.--The report under this section shall
contain a discussion of the matters described in subsection
(a)(1), including a discussion of the following matters:
(1) The process by which the Department of Defense
determined its policy regarding the lengths of mobilization
deployment periods.
(2) The reason that an adequate troop deployment policy was
not in place before Operation Iraqi Freedom began.
(3) A comparison of the policies during Operation Iraqi
Freedom with Department of Defense policies that applied to
previous contingency operations.
(4) The timeliness of the process for notifying reserve
component units for activation.
(5) The process for communicating with activated reserve
component members and their families about demobilization
schedules.
(6) The justification for delaying demobilization after
members and their families have been notified of the
anticipated demobilization schedule.
(7) The justification for current stop-loss policies,
together with a statement of the period for which those
policies are to remain in effect and the conditions under
which management of personnel under those policies would
terminate.
(8) The family support programs provided by the National
Guard and other reserve components for families of activated
Reserves.
(9) An assessment of lessons learned about how the
increased operation tempos of the National Guard and other
reserve components can be expected to affect readiness,
recruitment and retention, civilian employers of Reserves,
and equipment and supply resources of the National Guard and
the other reserve components.
(c) Matters for Particular Emphasis.--In the discussion of
the matters included in the report under this section, the
Secretary of Defense shall place particular emphasis on--
(1) lessons learned, including deficiencies identified; and
(2) near-term and long-term corrective actions to address
the identified deficiencies.
(d) Form of Report.--The report under this section shall be
submitted in unclassified form, but may include a classified
annex.

TITLE V----TIMELY COMPENSATION

SEC. 501. FINDINGS.

Congress makes the following findings:
(1) In November 2003, the General Accounting Office
reported, in connection with a study conducted by that
office, that among Army National Guard soldiers ``450 of the
481 soldiers from our 6 case study units had at least 1 pay
problem associated with their mobilization. These pay
problems severely constrain the Army's and the Department of
Defense's (DOD) ability to provide a most basic service to
these personnel, many of whom were risking their lives in
combat.''.
(2) In August 2004, a second study by that office (by then
renamed the Government Accountability Office) found that
among Army Reserve soldiers ``332 of 348 soldiers (95
percent) we audited at 8 case study units that were
mobilized, deployed, and demobilized at some time during the
18-month period from August 2002 through January 2004 had at
least 1 pay problem.''.
(3) The August 2004 report concluded that ``These pay
problems often had a profound adverse impact on individual
soldiers and their families. For example, soldiers were
required to spend considerable time, sometimes while deployed
in remote, hostile environments overseas, seeking help on pay
inquiries or in correcting errors in their active duty pays,
allowances, and related tax benefits.''.

SEC. 502. CORRECTION OF MILITARY PAY PROBLEMS FOR ACTIVATED
RESERVE COMPONENT PERSONNEL.

The Secretary of the Army shall designate a senior level
official of the Department of the Army to implement--
(1) the recommendations for executive action that are set
forth in the report of the Comptroller General of the United
States entitled ``Military Pay, Army National Guard Personnel
Mobilized to Active Duty Experienced Significant Pay
Problems'', dated November 2003; and
(2) the recommendations for executive action that are set
forth in the report of the Comptroller General of the United
States entitled ``Military Pay, Army Reserve Soldiers
Mobilized to Active Duty Experienced Significant Pay
Problems'', dated August 2004.

SEC. 503. SUPERVISION BY COMPTROLLER OF DEPARTMENT OF
DEFENSE.

The official designated under section 502 shall report
directly to, and be subject to the direction of, the Under
Secretary of Defense (Comptroller) regarding performance of
the duties that the official is designated to carry out under
such section.

SEC. 504. TERMINATION OF REQUIREMENT.

The designation under section 502 shall terminate upon the
submission of a certification of the Under Secretary of
Defense (Comptroller) to Congress that all recommendations
referred to in such section have been implemented.

TITLE VI--IMPROVED REPRESENTATION OF RESERVE PERSONNEL INTERESTS IN
DEPARTMENT OF DEFENSE SECRETARIAT

SEC. 601. FINDINGS.

Congress makes the following findings:

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(1) Since September 11, 2001, the National Guard and the
other reserve components of the Armed Forces have experienced
an expansion of their role in the total force structure of
the Armed Forces to an unprecedented level. In 2004, the
reserve components comprised 40 percent of the total force of
the Armed Forces. Reservists are experiencing a dramatic
increase in operation tempo and average length of deployment.
(2) While the extent of the role of the reserve component
has changed so dramatically, the Department of Defense
approach to management of the reserve components has remained
much the same. No new senior leadership positions have been
established to manage the reserve components more effectively
in the expanded role.

SEC. 602. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND
READINESS (RESERVE AFFAIRS).

(a) Establishment of Position.--
(1) Position and duties.--Chapter 4 of title 10, United
States Code, is amended by inserting after section 136a the
following new section:

``Sec. 136b. Deputy Under Secretary of Defense for Personnel
and Readiness (Reserve Affairs)

``(a) There is a Deputy Under Secretary of Defense for
Personnel and Readiness (Reserve Affairs), appointed from
civilian life by the President, by and with the advice and
consent of the Senate.
``(b) The Deputy Under Secretary of Defense for Personnel
and Readiness (Reserve Affairs) shall have as his principal
duty the overall supervision of reserve component affairs of
the Department of Defense.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 136a the following new item:

``136b. Deputy Under Secretary of Defense for Personnel and Readiness
(Reserve Affairs).''.

(b) Executive Level IV.--Section 5315 of title 5, United
States Code, is amended by inserting after ``Deputy Under
Secretary of Defense for Personnel and Readiness.'' the
following:
``Deputy Under Secretary of Defense for Personnel and
Readiness (Reserve Affairs).''.

SEC. 603. ELIMINATION OF POSITION OF ASSISTANT SECRETARY OF
DEFENSE FOR RESERVE AFFAIRS.

(a) Repeal of Requirement for Position.--Subsection (b) of
section 138 of title 10, United States Code, is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraphs (3), (4), and (5), as
paragraphs (2), (3), and (4), respectively.
(b) Reduction in Total Number of Assistant Secretaries of
Defense.--
(1) Authorized number.--Subsection (a) of such section is
amended by striking ``nine'' and inserting ``eight''.
(2) Conforming amendment.--Section 5315 of title 5, United
States Code, is amended by striking ``(9)'' after ``Assistant
Secretaries of Defense'' and inserting ``(8)''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the date on which a person is
first appointed as Deputy Under Secretary of Defense for
Personnel and Readiness (Reserve Affairs).

DIVISION B--MILITARY FAMILY PROTECTIONS

TITLE XXI--GUARDSMEN AND RESERVISTS FINANCIAL RELIEF

SEC. 2101. FINDINGS.

Congress makes the following findings:
(1) According to a Government Accountability Office report
in November 2004, ``The September 11, 2001, terrorist attacks
and the global war on terrorism have triggered the largest
activation of National Guard forces since World War II. As of
June 2004, over one-half of the National Guard's 457,000
personnel had been activated for overseas warfighting or
domestic homeland security missions in Federal and State
active duty roles.''. In all, over 400,000 reservists have
been mobilized between September 11, 2001, and the beginning
of 2005.
(2) In March 2003, the General Accounting Office reported
that among members of the National Guard and other reserve
components of the Armed Forces ``. . . data for past military
operations show that 41 percent of drilling unit members
reported income loss . . .''. The report further noted that
senior officers in the reserve component reported average
losses of $5,000 in income upon activation.
(3) Not only has operation tempo drastically increased for
members of the reserve components, meaning that reservists
are being called away from their civilian jobs more often,
but also the durations of deployments have increased
dramatically as well, meaning that reservists are being
called away from their civilian jobs for longer periods. The
Government Accountability Office reported in September 2004
that the average annual days of duty performed by members of
the reserve components has risen from approximately 40 days
in 1989 to approximately 120 days in 2003. A consequence of
both increased operations tempo and increased duration of
deployment has been a far greater loss of income for
reservists answering their country's call to duty.

SEC. 2102. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR
INDIVIDUALS CALLED TO ACTIVE DUTY FOR AT LEAST
179 DAYS.

(a) In General.--Paragraph (2) of section 72(t) of the
Internal Revenue Code of 1986 (relating to 10-percent
additional tax on early distributions from qualified
retirement plans) is amended by adding at the end the
following new subparagraph:
``(G) Distributions from retirement plans to individuals
called to active duty.--
``(i) In general.--Any qualified reservist distribution.
``(ii) Qualified reservist distribution.--For purposes of
this subparagraph, the term `qualified reservist
distribution' means any distribution to an individual if--

``(I) such distribution is from any qualified retirement
plan (as defined in section 4974(c)),
``(II) such individual was (by reason of being a member of
a reserve component (as defined in section 101 of title 37,
United States Code)), ordered or called to active duty for a
period in excess of 179 days or for an indefinite period, and
``(III) such distribution is made during the period
beginning on the date of such order or call and ending at the
close of the active duty period.

``(iii) Application of subparagraph.--This subparagraph
applies to individuals ordered or called to active duty after
September 11, 2001, and before September 12, 2005.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to distributions after September 11, 2001.

SEC. 2103. INCOME TAX WITHHOLDING ON DIFFERENTIAL WAGE
PAYMENTS.

(a) In General.--Section 3401 of the Internal Revenue Code
of 1986 (relating to definitions) is amended by adding at the
end the following new subsection:
``(i) Differential Wage Payments to Active Duty Members of
the Uniformed Services.--
``(1) In general.--For purposes of subsection (a), any
differential wage payment shall be treated as a payment of
wages by the employer to the employee.
``(2) Differential wage payment.--For purposes of paragraph
(1), the term `differential wage payment' means any payment
which--
``(A) is made by an employer to an individual with respect
to any period during which the individual is performing
service in the uniformed services while on active duty for a
period of more than 30 days, and
``(B) represents all or a portion of the wages the
individual would have received from the employer if the
individual were performing service for the employer.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to remuneration paid after December 31, 2004.

SEC. 2104. TREATMENT OF DIFFERENTIAL WAGE PAYMENTS FOR
RETIREMENT PLAN PURPOSES.

(a) Pension Plans.--
(1) In general.--Section 414(u) of the Internal Revenue
Code of 1986 (relating to special rules relating to veterans'
reemployment rights under USERRA) is amended by adding at the
end the following new paragraph:
``(11) Treatment of differential wage payments.--
``(A) In general.--Except as provided in this paragraph,
for purposes of applying this title to a retirement plan to
which this subsection applies--
``(i) an individual receiving a differential wage payment
shall be treated as an employee of the employer making the
payment,
``(ii) the differential wage payment shall be treated as
compensation, and
``(iii) the plan shall not be treated as failing to meet
the requirements of any provision described in paragraph
(1)(C) by reason of any contribution which is based on the
differential wage payment.
``(B) Special rule for distributions.--
``(i) In general.--Notwithstanding subparagraph (A)(i), for
purposes of section 401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii),
403(b)(11)(A), or 457(d)(1)(A)(ii), an individual shall be
treated as having been severed from employment during any
period the individual is performing service in the uniformed
services described in section 3401(i)(2)(A).
``(ii) Limitation.--If an individual elects to receive a
distribution by reason of clause (i), the plan shall provide
that the individual may not make an elective deferral or
employee contribution during the 6-month period beginning on
the date of the distribution.
``(C) Nondiscrimination requirement.--Subparagraph (A)(iii)
shall apply only if all employees of an employer performing
service in the uniformed services described in section
3401(i)(2)(A) are entitled to receive differential wage
payments on reasonably equivalent terms and, if eligible to
participate in a retirement plan maintained by the employer,
to make contributions based on the payments. For purposes of
applying this subparagraph, the provisions of paragraphs (3),
(4), and (5), of section 410(b) shall apply.
``(D) Differential wage payment.--For purposes of this
paragraph, the term `differential wage payment' has the
meaning given such term by section 3401(i)(2).''.
(2) Conforming amendment.--The heading for section 414(u)
of such Code is amended by inserting ``and to Differential
Wage Payments to Members on Active Duty'' after ``USERRA''.
(b) Differential Wage Payments Treated as Compensation for
Individual Retirement Plans.--Section 219(f)(1) of the
Internal Revenue Code of 1986 (defining compensation) is
amended by adding at the end the

[[Page S153]]

following new sentence: ``The term `compensation' includes
any differential wage payment (as defined in section
3401(i)(2)).''.
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31, 2004.
(d) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any plan or
annuity contract amendment--
(A) such plan or contract shall be treated as being
operated in accordance with the terms of the plan or contract
during the period described in paragraph (2)(B)(i), and
(B) except as provided by the Secretary of the Treasury,
such plan shall not fail to meet the requirements of the
Internal Revenue Code of 1986 or the Employee Retirement
Income Security Act of 1974 by reason of such amendment.
(2) Amendments to which section applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is made--
(i) pursuant to any amendment made by this section, and
(ii) on or before the last day of the first plan year
beginning on or after January 1, 2007.
(B) Conditions.--This subsection shall not apply to any
plan or annuity contract amendment unless--
(i) during the period beginning on the date the amendment
described in subparagraph (A)(i) takes effect and ending on
the date described in subparagraph (A)(ii) (or, if earlier,
the date the plan or contract amendment is adopted), the plan
or contract is operated as if such plan or contract amendment
were in effect; and
(ii) such plan or contract amendment applies retroactively
for such period.

SEC. 2105. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT AND
READY RESERVE-NATIONAL GUARD REPLACEMENT
EMPLOYEE CREDIT.

(a) Ready Reserve-National Guard Credit.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
business-related credits) is amended by inserting after
section 45I the following new section:

``SEC. 45J. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

``(a) General Rule.--For purposes of section 38, in the
case of an eligible taxpayer, the Ready Reserve-National
Guard employee credit determined under this section for any
taxable year with respect to each Ready Reserve-National
Guard employee of such taxpayer is an amount equal to 50
percent of the lesser of--
``(1) the actual compensation amount with respect to such
employee for such taxable year, or
``(2) $30,000.
``(b) Definition of Actual Compensation Amount.--For
purposes of this section, the term `actual compensation
amount' means the amount of compensation paid or incurred by
an eligible taxpayer with respect to a Ready Reserve-National
Guard employee on any day when the employee was absent from
employment for the purpose of performing qualified active
duty.
``(c) Limitations.--No credit shall be allowed with respect
to any day that a Ready Reserve-National Guard employee who
performs qualified active duty was not scheduled to work (for
reason other than to participate in qualified active duty).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible taxpayer.--
``(A) In general.--The term `eligible taxpayer' means a
small business employer.
``(B) Small business employer.--
``(i) In general.--The term `small business employer'
means, with respect to any taxable year, any employer who
employed an average of 50 or fewer employees on business days
during such taxable year.
``(ii) Controlled groups.--For purposes of clause (i), all
persons treated as a single employer under subsection (b),
(c), (m), or (o) of section 414 shall be treated as a single
employer.
``(2) Qualified active duty.--The term `qualified active
duty' means--
``(A) active duty under an order or call for a period in
excess of 179 days or for an indefinite period, other than
the training duty specified in section 10147 of title 10,
United States Code (relating to training requirements for the
Ready Reserve), or section 502(a) of title 32, United States
Code (relating to required drills and field exercises for the
National Guard), in connection with which an employee is
entitled to reemployment rights and other benefits or to a
leave of absence from employment under chapter 43 of title
38, United States Code, and
``(B) hospitalization incident to such duty.
``(3) Compensation.--The term `compensation' means any
remuneration for employment, whether in cash or in kind,
which is paid or incurred by a taxpayer and which is
deductible from the taxpayer's gross income under section
162(a)(1).
``(4) Ready reserve-national guard employee.--The term
`Ready Reserve-National Guard employee' means an employee who
is a member of the Ready Reserve of a reserve component of an
Armed Force of the United States as described in sections
10142 and 10101 of title 10, United States Code.
``(5) Certain rules to apply.--Rules similar to the rules
of section 52 shall apply.
``(e) Termination.--This section shall not apply to any
amount paid or incurred after December 31, 2005.''.
(2) Credit to be part of general business credit.--
Subsection (b) of section 38 of the Internal Revenue Code of
1986 (relating to general business credit) is amended by
striking ``plus'' at the end of paragraph (18), by striking
the period at the end of paragraph (19) and inserting ``,
plus'', and by adding at the end the following:
``(20) the Ready Reserve-National Guard employee credit
determined under section 45J(a).''.
(3) Denial of double benefit.--Section 280C(a) of the
Internal Revenue Code of 1986 (relating to rule for
employment credits) is amended by inserting ``45J(a),'' after
``45A(a),''.
(4) Conforming amendment.--The table of sections for
subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after
the item relating to section 45I the following:

``Sec. 45J. Ready Reserve-National Guard employee credit.''.

(5) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after September 30,
2004, in taxable years ending after such date.
(b) Ready Reserve-National Guard Replacement Employee
Credit.--
(1) In general.--Paragraph (1) of section 51(d) of the
Internal Revenue Code of 1986 (relating to members of
targeted groups) is amended by striking ``or'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, or'' and by adding at the
end the following new subparagraph:
``(I) a qualified replacement employee.''.
(2) Qualified replacement employee.--Section 51(d) of the
Internal Revenue Code of 1986 is amended by redesignating
paragraphs (10), (11), and (12) as paragraphs (11), (12), and
(13), respectively, and by inserting after paragraph (9) the
following new paragraph:
``(10) Qualified replacement employee.--
``(A) In general.--The term `qualified replacement
employee' means an individual who is certified by the
designated local agency as being hired by an eligible
taxpayer to replace a Ready Reserve-National Guard employee
of such taxpayer, but only with respect to the period during
which such Ready Reserve-National Guard employee participates
in qualified active duty, including time spent in travel
status.
``(B) General definitions and special rules.--For purposes
of this paragraph--
``(i) Eligible taxpayer.--The term `eligible taxpayer'
means a small business employer.
``(ii) Small business employer.--

``(I) In general.--The term `small business employer'
means, with respect to any taxable year, any employer who
employed an average of 50 or fewer employees on business days
during such taxable year.
``(II) Controlled groups.--For purposes of subclause (I),
all persons treated as a single employer under subsection
(b), (c), (m), or (o) of section 414 shall be treated as a
single employer.

``(iii) Ready reserve-national guard employee.--The term
`Ready Reserve-National Guard employee' has the meaning given
such term by section 45J(d)(3).
``(iv) Qualified active duty.--The term `qualified active
duty' has the meaning given such term by section 45J(d)(1).
``(C) Disallowance for failure to comply with employment or
reemployment rights of members of the reserve components of
the armed forces of the united states.--No credit shall be
allowed under subsection (a) by reason of paragraph (1)(I) to
a taxpayer for--
``(i) any taxable year, beginning after the date of the
enactment of this section, in which the taxpayer is under a
final order, judgment, or other process issued or required by
a district court of the United States under section 4323 of
title 38 of the United States Code with respect to a
violation of chapter 43 of such title, and
``(ii) the 2 succeeding taxable years.''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred to an individual who
begins work for the employer after September 30, 2004.
(c) Study by GAO.--
(1) In general.--The Comptroller General of the United
States shall study the following:
(A) What, if any, problems exist in recruiting individuals
for a reserve component of an Armed Force of the United
States.
(B) What, if any, problems exist as the result of providing
differential wage payments (as defined in section 3401(i)(2)
of the Internal Revenue Code of 1986 (as added by this Act))
to individuals described in subparagraph (A) in the
recruitment and retention of individuals as regular members
of the Armed Forces of the United States.
(C) Whether the credit allowed under section 45J of the
Internal Revenue Code of 1986 (as added by this section) is
an effective incentive for the hiring and retention of
employees who are individuals described in subparagraph (A)
and whether there exists any compliance problems in the
administration of such credit.
(2) Report.--The Comptroller General of the United States
shall report on the results of the study required under
paragraph (1) to the Committee of Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives before July 1, 2005.

[[Page S154]]

SEC. 2106. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS
PERFORMING ACTIVE SERVICE IN THE UNIFORMED
SERVICES OR NATIONAL GUARD.

(a) Preservation of Pay Level.--
(1) Requirements.--Subchapter IV of chapter 55 of title 5,
United States Code, is amended by adding at the end the
following:

``Sec. 5538. Nonreduction in pay while serving in the
uniformed services or National Guard

``(a) An employee who is absent from a position of
employment with the Federal Government in order to perform
active duty in the uniformed services pursuant to a call or
order to active duty under a provision of law referred to in
section 101(a)(13)(B) of title 10 shall be entitled, while
serving on active duty, to receive, for each pay period
described in subsection (b), an amount equal to the amount by
which--
``(1) the amount of basic pay which would otherwise have
been payable to such employee for such pay period if such
employee's civilian employment with the Government had not
been interrupted by that service, exceeds (if at all)
``(2) the amount of pay and allowances which (as determined
under subsection (d))--
``(A) is payable to such employee for that service; and
``(B) is allocable to such pay period.
``(b)(1) Amounts under this section shall be payable with
respect to each pay period (which would otherwise apply if
the employee's civilian employment had not been
interrupted)--
``(A) during which such employee is entitled to
reemployment rights under chapter 43 of title 38 with respect
to the position from which such employee is absent (as
referred to in subsection (a)); and
``(B) for which such employee does not otherwise receive
basic pay (including by taking any annual, military, or other
paid leave) to which such employee is entitled by virtue of
such employee's civilian employment with the Government.
``(2) For purposes of this section, the period during which
an employee is entitled to reemployment rights under chapter
43 of title 38--
``(A) shall be determined disregarding the provisions of
section 4312(d) of title 38; and
``(B) shall include any period of time specified in section
4312(e) of title 38 within which an employee may report or
apply for employment or reemployment following completion of
service on active duty to which called or ordered as
described in subsection (a).
``(c) Any amount payable under this section to an employee
shall be paid--
``(1) by such employee's employing agency;
``(2) from the appropriation or fund which would be used to
pay the employee if such employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would basic pay if such employee's
civilian employment had not been interrupted.
``(d) The Office of Personnel Management shall, in
consultation with Secretary of Defense, prescribe any
regulations necessary to carry out the preceding provisions
of this section.
``(e)(1) The head of each agency referred to in section
2302(a)(2)(C)(ii) shall, in consultation with the Office,
prescribe procedures to ensure that the rights under this
section apply to the employees of such agency.
``(2) The Administrator of the Federal Aviation
Administration shall, in consultation with the Office,
prescribe procedures to ensure that the rights under this
section apply to the employees of that agency.
``(f) For purposes of this section--
``(1) the terms `employee', `Federal Government', and
`uniformed services' have the same respective meanings as
given them in section 4303 of title 38;
``(2) the term `employing agency', as used with respect to
an employee entitled to any payments under this section,
means the agency or other entity of the Government (including
an agency referred to in section 2302(a)(2)(C)(ii)) with
respect to which such employee has reemployment rights under
chapter 43 of title 38; and
``(3) the term `basic pay' includes any amount payable
under section 5304.''.
(2) Clerical amendment.--The table of sections for chapter
55 of title 5, United States Code, is amended by inserting
after the item relating to section 5537 the following:

``5538. Nonreduction in pay while serving in the uniformed services or
National Guard.''.

(b) Effective Date.--
(1) In general.--Section 5538 of title 5, United States
Code (as added by subsection (a)), shall apply with respect
to pay periods (as described in subsection (b) of such
section) beginning on or after the date of the enactment of
this Act.
(2) Conditional retroactive application.--
(A) Section 5538 of title 5, United States Code (as added
by subsection (a)), shall apply with respect to pay periods
(as described in subsection (b) of such section) beginning on
or after October 11, 2002 through the date of the enactment
of this Act, subject to the availability of appropriations.
(B) There are authorized to be appropriated $100,000,000
for purposes of subparagraph (A).

TITLE XXII--NATIONAL GUARD AND RESERVE COMPREHENSIVE HEALTH BENEFITS

SEC. 2201. SHORT TITLE.

This title may be cited as the ``National Guard and Reserve
Comprehensive Health Benefits Act of 2005''.

SEC. 2202. FINDINGS.

Congress makes the following findings:
(1) According to the results of a Department of Defense
survey conducted in 2000, 20 percent of members of the
reserve components of the Armed Forces, including 40 percent
of junior enlisted personnel, had no health care coverage
while not on active duty.
(2) In 2004, Congress passed legislation authorizing
reservists to obtain access to the military TRICARE health
care program for one year for each 90-day period of active
duty service. While the enactment of this law was an
important step forward, the law only provides eligibility for
health care after active duty has been completed and fails to
provide the complete health care coverage necessary to ensure
that reservists are medically ready to answer a future call
to active duty.
(3) In September 2004, the Government Accountability
Office, after reviewing pre-deployment health screenings of
over 240,000 reservists, reported finding that nearly 7
percent of activated reservists were categorized as
nondeployable for health reasons, including nearly 10 percent
of the Army Reserve.

SEC. 2203. TRICARE COVERAGE FOR MEMBERS OF THE READY RESERVE.

(a) Eligibility.--Section 1076b of title 10, United States
Code, is amended to read as follows:

``Sec. 1076b. TRICARE program: coverage for members of the
Ready Reserve

``(a) Eligibility.--Members of the Selected Reserve of the
Ready Reserve of a reserve component of the armed forces and
members of the Individual Ready Reserve described in
subsection 10144(b) of this title are eligible, subject to
subsection (h)(1), to enroll in the following TRICARE program
options:
``(1) TRICARE Prime.
``(2) TRICARE Standard.
``(b) Types of Coverage.--(1) A member eligible under
subsection (a) may enroll for either of the following types
of coverage:
``(A) Self alone coverage.
``(B) Self and family coverage.
``(2) An enrollment by a member for self and family covers
the member and the dependents of the member who are described
in subparagraph (A), (D), or (I) of section 1072(2) of this
title.
``(c) Open Enrollment Periods.--The Secretary of Defense
shall provide for at least one open enrollment period each
year. During an open enrollment period, a member eligible
under subsection (a) may enroll in the TRICARE program or
change or terminate an enrollment in the TRICARE program.
``(d) Scope of Care.--(1) A member and the dependents of a
member enrolled in the TRICARE program under this section
shall be entitled to the same benefits under this chapter as
a member of the uniformed services on active duty or a
dependent of such a member, respectively.
``(2) Section 1074(c) of this title shall apply with
respect to a member enrolled in the TRICARE program under
this section.
``(e) Premiums.--(1) The Secretary of Defense shall charge
premiums for coverage pursuant to enrollments under this
section. The Secretary shall prescribe for each of the
TRICARE program options referred to in subsection (a) a
premium for self alone coverage and a premium for self and
family coverage.
``(2) The monthly amount of the premium in effect for a
month for a type of coverage under this section shall be the
amount equal to 28 percent of the total amount determined by
the Secretary on an appropriate actuarial basis as being
reasonable for the coverage.
``(3) The premiums payable by a member under this
subsection may be deducted and withheld from basic pay
payable to the member under section 204 of title 37 or from
compensation payable to the member under section 206 of such
title. The Secretary shall prescribe the requirements and
procedures applicable to the payment of premiums by members
not entitled to such basic pay or compensation.
``(4) Amounts collected as premiums under this subsection
shall be credited to the appropriation available for the
Defense Health Program Account under section 1100 of this
title, shall be merged with sums in such Account that are
available for the fiscal year in which collected, and shall
be available under subsection (b) of such section for such
fiscal year.
``(f) Other Charges.--A person who receives health care
pursuant to an enrollment in a TRICARE program option under
this section, including a member who receives such health
care, shall be subject to the same deductibles, copayments,
and other nonpremium charges for health care as apply under
this chapter for health care provided under the same TRICARE
program option to dependents described in subparagraph (A),
(D), or (I) of section 1072(2) of this title.
``(g) Termination of Enrollment.--(1) A member enrolled in
the TRICARE program under this section may terminate the
enrollment only during an open enrollment period provided
under subsection (c), except as provided in subsection
(h)(2).
``(2) An enrollment of a member for self alone or for self
and family under this section shall terminate on the first
day of the first month beginning after the date on which the
member ceases to be eligible under subsection (a).
``(3) The enrollment of a member under this section may be
terminated on the basis of failure to pay the premium charged
the member under this section.

[[Page S155]]

``(h) Relationship to Transition TRICARE Coverage Upon
Separation From Active Duty.--(1) A member may not enroll in
the TRICARE program under this section while entitled to
transitional health care under subsection (a) of section 1145
of this title or while authorized to receive health care
under subsection (c) of such section.
``(2) A member who enrolls in the TRICARE program under
this section within 90 days after the date of the termination
of the member's entitlement or eligibility to receive health
care under subsection (a) or (c) of section 1145 of this
title may terminate the enrollment at any time within one
year after the date of the enrollment.
``(i) Regulations.--The Secretary of Defense, in
consultation with the other administering Secretaries, shall
prescribe regulations for the administration of this
section.''.
(b) Definitions.--
(1) Tricare options.--Section 1072 of title 10, United
States Code, is amended by adding at the end the following
new paragraphs:
``(10) The term `TRICARE Prime' means the managed care
option of the TRICARE program.
``(11) The term `TRICARE Standard' means the Civilian
Health and Medical Program of the Uniformed Services option
under the TRICARE program.''.
(2) Conforming amendments.--
(A) Section 1076d(f) of such title is amended--
(i) by striking ``(f) Definitions.--'' and all that follows
through ``(1) The'' and inserting ``(f) Immediate Family
Defined.--In this section, the''; and
(ii) by striking paragraph (2).
(B) Section 1097a(f) of such title is amended by striking
``Definitions.--In this section:'' and all that follows
through ``(2) The term'' and inserting ``Catchment Area
Defined.--In this section, the term''.
(c) Period for Implementation.--Section 1076b of title 10,
United States Code (as added by subsection (a)), shall apply
with respect to months that begin on or after the date that
is 180 days after the date of the enactment of this Act.
(d) Coordination With Overlapping Authority.--
(1) Repeal.--Effective one year after the date of the
enactment of this Act--
(A) section 1076d of title 10, United States Code, is
repealed; and
(B) the table of sections at the beginning of chapter 55 of
such title is amended by striking the item relating to
section 1076d.
(2) Transition coverage.--The Secretary of Defense shall
provide for an orderly transition to TRICARE coverage under
section 1076b of title 10, United States Code (as amended by
subsection (a)), for persons enrolled for TRICARE coverage
under section 1076d of such title before the repeal of such
section takes effect under paragraph (1)(A).

SEC. 2204. ALLOWANCE FOR CONTINUATION OF NON-TRICARE HEALTH
BENEFITS COVERAGE FOR CERTAIN MOBILIZED
RESERVES.

(a) Payment of Premiums.--
(1) Requirement to pay premiums.--Chapter 55 of title 10,
United States Code, is amended by inserting after section
1078a the following new section:

``Sec. 1078b. Continuation of non-TRICARE health benefits
plan coverage for certain Reserves called or ordered to
active duty and their dependents

``(a) Payment of Premiums.--The Secretary concerned shall
pay the applicable premium to continue in force any qualified
health benefits plan coverage for an eligible reserve
component member for the benefits coverage continuation
period if timely elected by the member in accordance with
regulations prescribed under subsection (j).
``(b) Eligible Member.--A member of a reserve component is
eligible for payment of the applicable premium for
continuation of qualified health benefits plan coverage under
subsection (a) while serving on active duty pursuant to a
call or order issued under a provision of law referred to in
section 101(a)(13)(B) of this title during a war or national
emergency declared by the President or Congress.
``(c) Qualified Health Benefits Plan Coverage.--For the
purposes of this section, health benefits plan coverage for a
member called or ordered to active duty is qualified health
benefits plan coverage if--
``(1) the coverage was in force on the date on which the
Secretary notified the member that issuance of the call or
order was pending or, if no such notification was provided,
the date of the call or order;
``(2) on such date, the coverage applied to the member and
dependents of the member described in subparagraph (A), (D),
or (I) of section 1072(2) of this title; and
``(3) the coverage has not lapsed.
``(d) Applicable Premium.--The applicable premium payable
under this section for continuation of health benefits plan
coverage in the case of a member is the amount of the premium
payable by the member for the coverage of the member and
dependents.
``(e) Maximum Amount.--The total amount that may be paid
for the applicable premium of a health benefits plan for a
member under this section in a fiscal year may not exceed the
amount determined by multiplying--
``(1) the sum of one plus the number of the member's
dependents covered by the health benefits plan, by
``(2) the per capita cost of providing TRICARE coverage and
benefits for dependents under this chapter for such fiscal
year, as determined by the Secretary of Defense.
``(f) Benefits Coverage Continuation Period.--The benefits
coverage continuation period under this section for qualified
health benefits plan coverage in the case of a member called
or ordered to active duty is the period that--
``(1) begins on the date of the call or order; and
``(2) ends on the earlier of the date on which--
``(A) the member's eligibility for transitional health care
under section 1145(a) of this title terminates under
paragraph (3) of such section; or
``(B) the member elects to terminate the continued
qualified health benefits plan coverage of the dependents of
the member.
``(g) Extension of Period of COBRA Coverage.--
Notwithstanding any other provision of law--
``(1) any period of coverage under a COBRA continuation
provision (as defined in section 9832(d)(1) of the Internal
Revenue Code of 1986) for a member under this section shall
be deemed to be equal to the benefits coverage continuation
period for such member under this section; and
``(2) with respect to the election of any period of
coverage under a COBRA continuation provision (as so
defined), rules similar to the rules under section
4980B(f)(5)(C) of such Code shall apply.
``(h) Nonduplication of Benefits.--A dependent of a member
who is eligible for benefits under qualified health benefits
plan coverage paid on behalf of a member by the Secretary
concerned under this section is not eligible for benefits
under the TRICARE program during a period of the coverage for
which so paid.
``(i) Revocability of Election.--A member who makes an
election under subsection (a) may revoke the election. Upon
such a revocation, the member's dependents shall become
eligible for benefits under the TRICARE program as provided
for under this chapter.
``(j) Regulations.--The Secretary of Defense shall
prescribe regulations for carrying out this section. The
regulations shall include such requirements for making an
election of payment of applicable premiums as the Secretary
considers appropriate.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for
certain Reserves called or ordered to active duty and
their dependents.''.

(b) Applicability.--Section 1078b of title 10, United
States Code (as added by subsection (a)), shall apply with
respect to calls or orders of members of reserve components
of the Armed Forces to active duty as described in subsection
(b) of such section, that are issued by the Secretary of a
military department on or after the date of the enactment of
this Act.

TITLE XXIII--IMPROVED DEATH GRATUITY AND OTHER SURVIVOR BENEFITS

SEC. 2301. FINDINGS.

Congress makes the following findings:
(1) No amount of money can make up for the loss of a loved
one. But the United States can, and is obliged to, honor the
service of lost servicemembers by ensuring that their
families are financially supported at the time of great need
occasioned by those losses.
(2) The Federal Government owes families of servicemembers
dying on duty a death gratuity that is sufficient to help
each family pay for costs associated with the death of the
servicemember and to help the members of the family adjust to
the financial instability that results from termination of
the servicemember's income.
(3) Survivors of fallen military personnel who are eligible
for both a Survivor Benefit Plan annuity and Dependency and
Indemnity Compensation suffer a loss of income as a result of
the law that requires a reduction in the Survivor Benefit
Plan annuity by the amount of the Dependency and Indemnity
Compensation. This unjust prohibition against concurrent
receipt of two independent benefits prevents the United
States from fulfilling its obligation to the survivors during
the time of financial need that is occasioned by the deaths
of the fallen servicemembers.

SEC. 2302. INCREASED AMOUNT OF DEATH GRATUITY.

(a) Amount of Death Gratuity.--Section 1478(a) of title 10,
United States Code, is amended by striking ``$12,000'' in the
first sentence and inserting ``$100,000''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as of September 11, 2001, and shall apply
with respect to deaths occurring on or after that date.

SEC. 2303. DEATH GRATUITY EXCLUDABLE FROM FEDERAL INCOME
TAXATION.

(a) In General.--Paragraph (1) of section 134(b) of the
Internal Revenue Code of 1986 (relating to certain military
benefits) is amended by adding at the end the following new
flush sentence:
``Such term shall include any death gratuity to which the
limitation in section 1478(a) of title 10, United States
Code, applies.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to amounts paid with respect to deaths occurring
on or after September 11, 2001.

[[Page S156]]

SEC. 2304. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR
ANNUITIES BY DEPENDENCY AND INDEMNITY
COMPENSATION.

(a) Repeal.--Subchapter II of chapter 73 of title 10,
United States Code is amended--
(1) in section 1450(c)(1), by inserting after ``to whom
section 1448 of this title applies'' the following: ``(except
in the case of a death as described in subsection (d) or (f)
of such section)''; and
(2) in section 1451(c)--
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.
(b) Prohibition on Retroactive Benefits.--No benefits may
be paid to any person for any period before the effective
date provided under subsection (e) by reason of the
amendments made by subsection (a).
(c) Prohibition on Recoupment of Certain Amounts Previously
Refunded to SBP Recipients.--A surviving spouse who is or has
been in receipt of an annuity under the Survivor Benefit Plan
under subchapter II of chapter 73 of title 10, United States
Code, that is in effect before the effective date provided
under subsection (e) and that is adjusted by reason of the
amendments made by subsection (a) and who has received a
refund of retired pay under section 1450(e) of title 10,
United States Code, shall not be required to repay such
refund to the United States.
(d) Reconsideration of Optional Annuity.--Section
1448(d)(2) of title 10, United States Code, is amended by
adding at the end the following new sentences: ``The
surviving spouse, however, may elect to terminate an annuity
under this subparagraph in accordance with regulations
prescribed by the Secretary concerned. Upon such an election,
payment of an annuity to dependent children under this
subparagraph shall terminate effective on the first day of
the first month that begins after the date on which the
Secretary concerned receives notice of the election, and,
beginning on that day, an annuity shall be paid to the
surviving spouse under paragraph (1) instead.''.
(e) Effective Date.--The amendments made by this section
shall take effect on the later of--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted.

SEC. 2305. EFFECTIVE DATE FOR PAID-UP COVERAGE UNDER SURVIVOR
BENEFIT PLAN.

Section 1452(j) of title 10, United States Code, is amended
by striking ``October 1, 2008'' and inserting ``October 1,
2005''.

DIVISION C--TAXPAYER PROTECTION

TITLE XXXI--FUNDING OF RECONSTRUCTION IN IRAQ

SEC. 3101. FINDINGS.

Congress makes the following findings:
(1) The international community's support for Iraq's
efforts to reconstruct the infrastructure of Iraq following
the overthrow of Saddam Hussein's regime is critical to the
achievement of regional and international stability and to
the protection of national security interests of the United
States.
(2) United States taxpayers have borne a disproportionate
burden in supporting the reconstruction of Iraq. The United
States Government has committed to providing Iraq with grants
of financial assistance worth more than 500 percent more than
the grant assistance that has been committed by the
governments of all of the rest of the countries of the world
combined.
(3) The disproportionate contribution of the United States
to the reconstruction of Iraq has resulted in a commitment of
United States resources to reconstruction that otherwise
would be available for supporting the efforts of United
States military personnel to rid Iraq and Afghanistan of
hostile insurgents.
(4) Iraq possesses the world's second largest reserve of
crude oil, with 112,000,000,000 barrels, and administration
officials have stated on several occasions that revenue from
Iraq's oil industry could fund a significant portion of the
costs of the reconstruction of Iraq.

SEC. 3102. REPORT ON ADDITIONAL NEEDS FOR FUNDING MILITARY
AND RECONSTRUCTION EFFORTS.

(a) Requirement for Report.--Whenever the President submits
to Congress a request for a supplemental appropriation of
funds for use in connection with United States military or
reconstruction efforts in Iraq, the President shall submit to
the chairmen and ranking members of the appropriate
committees of Congress in accordance with this section a
report on the status of United States financial commitments
to the reconstruction of Iraq.
(b) Content.--The report under subsection (a) shall include
the following information:
(1) An estimate of the amount of the United States
Government funds spent for the reconstruction of Iraq between
March 19, 2003, and the date of the report that is
attributable to tax revenue collected from United States
taxpayers.
(2) An assessment of the activities funded by that amount,
together with a discussion of the results that such
activities have achieved.
(3) An estimate of the amount of the funds that have been
contributed by all other foreign governments for the
reconstruction of Iraq and in relief of Iraq's national debt.
(4) The amount of the crude oil that has been extracted by
Iraq since March 19, 2003, and the total value of that oil in
United States dollars.
(c) Time for Report.--The President shall submit the report
under this section not later than 24 hours after any proposed
legislation to provide a supplemental appropriation of funds
requested by the President for use in connection with United
States military or reconstruction activities in Iraq is
introduced in either the Senate or the House of
Representatives.
(d) Form.--The report under this section shall be submitted
in unclassified form.

SEC. 3103. LIMITATION ON USE OF FUNDS.

(a) Limitation.--Funds appropriated or otherwise available
for providing financial assistance for reconstruction
activities in Iraq may not be obligated or expended for
providing financial assistance for such activities other than
in the form of a collateralized loan until the President
submits to the chairmen and ranking members of the
appropriate committees of Congress a report that contains the
following matters:
(1) The President's plan for seeking increased financial
support for reconstruction activities in Iraq from the
international community.
(2) The President's statement that he has determined that--
(A) Iraq is incapable of producing sufficient revenues from
its oil industry to pay for future reconstruction activities;
and
(B) it is not in the national security interests of the
United States for the United States to provide financial
assistance for reconstruction activities in Iraq solely in
the form of loans.
(b) Waiver Authority.--The President may waive the
applicability of the limitation in subsection (a) to an
obligation or expenditure of funds if the President
determines that the applicability of the limitation to such
obligation or expenditure would adversely affect the physical
safety of United States Armed Forces personnel operating in
Iraq, except that any such waiver shall not take effect
before the President submits a written notification of the
waiver and determination to the chairmen and ranking members
of the appropriate committees of Congress.

SEC. 3104. APPROPRIATE COMMITTEES OF CONGRESS DEFINED.

In this title, the term ``appropriate committees of
Congress'' mean the following committees:
(1) The Committee on Foreign Relations Committee, the
Committee on Armed Services, and the Committee on
Appropriations of the Senate.
(2) The Committee on International Relations, the Committee
on Armed Services, and the Committee on Appropriations of the
House of Representatives.
______

By Mr. BIDEN (for himself, Mr. Reid, Mr. Bingaman, Ms. Mikulski,
Mr. Durbin, Ms. Stabenow, Mr. Rockefeller, Mr. Lautenberg, and
Mr. Schumer):
S. 12. A bill to combat international terrorism, and for other
purposes; to the Committee on Foreign Relations.
Mr. BIDEN. Mr. President, I am pleased to join the Democratic Leader
in introducing S. 12, a bill to combat international terrorism.
We all know that the primary security threat facing America is from
terrorists motivated by a radical Islamic fundamentalism. Since the 9/
11 attacks, we have done much to confront this threat, but we must do
much more. As the 9/11 Commission reported, we are safer, but we are
not yet safe. I know that all Senators are committed to the objective
of making our country safer.
We must understand that those who would spread radical Islamic
fundamentalism and weapons of mass destruction are beyond the reach of
reason. We must--and we will--defeat them. But hundreds of millions of
hearts and minds around the world are open to American ideas and
ideals. We must reach them.
This bill contains a range of proposals that are designed to
strengthen our anti-terrorism efforts in a broad range of areas. It
will strengthen our military by expanding our special forces. It will
strengthen our intelligence operations by increasing the cadre of the
trained linguists in the government. It will strengthen our public
diplomacy by increasing funds for State Department programs,
international exchanges, and international broadcasting. It will
strengthen our effort to expand basic educational opportunities in the
Muslim world and combat radical madrassas. It will strengthen our
assistance to non-governmental organizations working to build
democratic institutions. It will strengthen our programs to help Russia
account for, secure and destroy dangerous nuclear materials. And it
will strengthen our law enforcement by increasing support for cops on
the beat--the people

[[Page S157]]

who labor on the front lines of homeland security.
I cannot take credit for every proposal in this bill. Many of them
are ideas contributed by my Democratic colleagues. The Democratic
Leader has graciously allowed me to be the lead sponsor of the bill,
for which I am grateful. I look forward to working with all my
colleagues to strengthen America's defenses against the threat of
terrorism--through this and other legislation--in the coming Congress.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 12

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Targeting Terrorists More
Effectively Act of 2005''.
TITLE I--EFFECTIVELY TARGETING TERRORISTS

SEC. 101. INCREASED STRENGTH OF ARMY SPECIAL OPERATIONS
FORCES.

(a) Sense of Congress.--It is the sense of Congress that
the number of the active-duty Army personnel comprising the
Army Special Forces Command as of the last day of a fiscal
year should be increased as follows:
(1) To 4,644, as of September 30, 2006.
(2) To 5,144, as of September 30, 2007.
(3) To 5,644, as of September 30, 2008.
(4) To 6,144, as of September 30, 2009.
(b) Increased Active Forces End Strengths To Effectuate
Policy on Increase in Strength of Army Special Forces.--
(1) Fiscal year 2006.--Effective on October 1, 2005,
section 691(b)(1) of title 10, United States Code, is amended
by striking ``502,400'' and inserting ``502,900''.
(2) Fiscal year 2007.--Effective on October 1, 2006,
section 691(b)(1) of such title is amended by striking
``502,900'' and inserting ``503,400''.
(3) Fiscal year 2008.--Effective on October 1, 2007,
section 691(b)(1) of such title is amended by striking
``503,400'' and inserting ``503,900''.
(4) Fiscal year 2009.--Effective on October 1, 2008,
section 691(b)(1) of such title is amended by striking
``503,900'' and inserting ``504,400''.

SEC. 102. FOREIGN LANGUAGE EXPERTISE.

(a) Findings.--Congress makes the following findings:
(1) Success in the global war on terrorism will require a
dramatic increase in institutional and personal expertise in
the languages and cultures of the societies where terrorism
has taken root, including a substantial increase in the
number of national security personnel who obtain expert
lingual training.
(2) The National Commission on Terrorist Attacks Upon the
United States identified the countries in the Middle East,
South Asia, Southeast Asia, and West Africa as countries that
serve or could serve as terrorist havens.
(3) Although 22 countries have Arabic as their official
language, the National Commission on Terrorist Attacks Upon
the United States found that a total of only 6 undergraduate
degrees for the study of Arabic were granted by United States
colleges and universities in 2002.
(4) The report of the National Commission on Terrorist
Attacks Upon the United States contained several criticisms
of the lack of linguistic expertise in the Central
Intelligence Agency and the Federal Bureau of Investigation
prior to the September 11, 2001 terrorist attacks, and called
for the Central Intelligence Agency to ``develop a stronger
language program, with high standards and sufficient
financial incentives''.
(5) An audit conducted by the Department of Justice in July
2004, revealed that the Federal Bureau of Investigation has a
backlog of hundreds of thousands of untranslated audio
recordings from terror and espionage investigations.
(6) The National Security Education Program Trust Fund,
which funds critical grant and scholarship programs for
linguistic training in regions critical to national security,
will have exhausted all its funding by fiscal year 2006,
unless additional appropriations are made to the Trust Fund.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the overwhelming majority of Muslims reject terrorism
and a small, radical minority has grossly distorted the
teachings of one of the world's great faiths to seek
justification for acts of terrorism, such radical Islamic
fundamentalism constitutes a primary threat to the national
security interests of the United States, and an effective
strategy for combating terrorism should include increasing
the number of personnel throughout the Federal Government
with expertise in languages spoken in predominately Muslim
countries and in the culture of such countries;
(2) Muslim-Americans constitute an integral and cherished
part of the fabric of American society and possess many
talents, including linguistic, historic, and cultural
expertise that should be harnessed in the war against
radical, fundamentalist terror; and
(3) amounts appropriated for the National Flagship Language
Initiative pursuant to the amendments made by subsection
(e)(2) should be used to support the establishment,
operation, and improvement of programs for the study of
Arabic, Persian, and other Middle Eastern, South Asian,
Southeast Asian, and West African languages in institutes of
higher education in the United States.
(c) Authorization of Appropriations.--
(1) National security education trust fund.--Section 810 of
the David L. Boren National Security Education Act of 1991
(50 U.S.C. 1910) is amended by adding at the end the
following:
``(d) Authorization of Appropriations for the Fund for
Fiscal Year 2006.--
``(1) In general.--There are authorized to be appropriated
to the Fund $150,000,000 for fiscal year 2006.
``(2) Availability of funds.--Amounts appropriated pursuant
to the authorization of appropriations in paragraph (1) shall
remain available until expended and not more than $15,000,000
of such amounts may be obligated and expended during any
fiscal year.''.
(2) National flagship language initiative.--
(A) In general.--Section 811(a) of the David L. Boren
National Security Education Act of 1991 (50 U.S.C. 1911(a))
is amended by striking ``there is authorized to be
appropriated to the Secretary for each fiscal year, beginning
with fiscal year 2003, $10,000,000'' and inserting ``there is
authorized to be appropriated to the Secretary for each
fiscal year 2003 through 2005, $10,000,000, and for each
fiscal year after 2005, $20,000,000,''.
(B) Availability of funds.--Section 811(b) of such Act (50
U.S.C. 1911(b)) is amended by inserting ``for fiscal years
2003 through 2005'' after ``this section''.
(3) Demonstration program.--There are authorized to be
appropriated to the Director of National Intelligence such
sums as may be necessary for each of fiscal years 2006, 2007,
and 2008 in order to carry out the demonstration program
established under subsection (c).

SEC. 103. CURTAILING TERRORIST FINANCING.

(a) Findings.--Congress makes the following findings:
(1) The report of the National Commission on Terrorist
Attacks Upon the United States stated that ``[v]igorous
efforts to track terrorist financing must remain front and
center in United States counterterrorism efforts''.
(2) The report of the Independent Task Force sponsored by
the Council on Foreign Relations stated that ``currently
existing U. S. and international policies, programs,
structures, and organizations will be inadequate to assure
sustained results commensurate with the ongoing threat posed
to the national security of the United States''.
(3) The report of the Independent Task Force contained the
conclusion that ``[l]ong-term success will depend critically
upon the structure, integration, and focus of the U. S.
Government--and any intergovernmental efforts undertaken to
address this problem''.
(b) Policy.--It is the policy of the United States--
(1) to work with the Government of Saudi Arabia to curtail
terrorist financing originating from that country using a
range of methods, including diplomacy, intelligence, and law
enforcement;
(2) to ensure effective coordination and sufficient
resources for efforts of the agencies and departments of the
United States to disrupt terrorist financing by carrying out,
through the Office of Terrorism and Financial Intelligence in
the Department of the Treasury, a comprehensive analysis of
the budgets and activities of all such agencies and
departments that are related to disrupting the financing of
terrorist organizations;
(3) to provide each agency or department of the United
States with the appropriate number of personnel to carry out
the activities of such agency or department related to
disrupting the financing of terrorist organizations;
(4) to centralize the coordination of the efforts of the
United States to combat terrorist financing and utilize
existing authorities to identify foreign jurisdictions and
foreign financial institutions suspected of abetting
terrorist financing and take actions to prevent the provision
of assistance to terrorists; and
(5) to work with other countries to develop and enforce
strong domestic terrorist financing laws, and increase
funding for bilateral and multilateral programs to enhance
training and capacity-building in countries who request
assistance.
(c) Authorization of Appropriations To Provide Technical
Assistance To Prevent Financing of Terrorists.--
(1) In general.--There are authorized to be appropriated to
the President for the ``Economic Support Fund'' to provide
technical assistance under the provisions of chapter 4 of
part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346
et seq.) to foreign countries to assist such countries in
preventing the financing of terrorist activities--
(A) for fiscal year 2006, $300,000,000; and
(B) for fiscal years 2007 and 2008, such sums as may be
necessary.
(2) Availability of funds.--Amounts appropriated pursuant
to the authorization of appropriations in this subsection are
authorized to remain available until expended.
(3) Additional funds.--Amounts authorized to be
appropriated under this subsection are in addition to amounts
otherwise available for such purposes.

[[Page S158]]

SEC. 104. PROHIBITION ON TRANSACTIONS WITH COUNTRIES THAT
SUPPORT TERRORISM.

(a) Clarification of Certain Actions Under IEEPA.--In any
case in which the President takes action under the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) with respect to a foreign country, or persons
dealing with or associated with the government of that
foreign country, as a result of a determination by the
Secretary of State that the government of that foreign
country has repeatedly provided support for acts of
international terrorism, such action shall apply to a United
States person or other person.
(b) Definitions.--In this section:
(1) Controlled in fact.--The term ``is controlled in fact''
includes--
(A) in the case of a corporation, holds at least 50 percent
(by vote or value) of the capital structure of the
corporation; and
(B) in the case of any other kind of legal entity, holds
interests representing at least 50 percent of the capital
structure of the entity.
(2) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Virgin Islands, and
other territories or possessions of the United States.
(3) United states person.--The term ``United States
person'' includes any United States citizen, permanent
resident alien, entity organized under the law of the United
States or of any State (including foreign branches), wherever
located, or any other person in the United States.
(c) Applicability.--
(1) In general.--In any case in which the President has
taken action under the International Emergency Economic
Powers Act and such action is in effect on the date of
enactment of this Act, the provisions of subsection (a) shall
not apply to a United States person (or other person) if such
person divests or terminates its business with the government
or person identified by such action within 90 days after the
date of enactment of this Act.
(2) Actions after date of enactment.--In any case in which
the President takes action under the International Emergency
Economic Powers Act on or after the date of enactment of this
Act, the provisions of subsection (a) shall not apply to a
United States person (or other person) if such person divests
or terminates its business with the government or person
identified by such action within 90 days after the date of
such action.
(d) Notification of Congress of Termination of
Investigation by Office of Foreign Assets Control.--The
Office of Federal Procurement Policy Act (41 U.S.C. 403 et
seq.) is amended by adding at the end the following new
section:

``SEC. 42. NOTIFICATION OF CONGRESS OF TERMINATION OF
INVESTIGATION BY OFFICE OF FOREIGN ASSETS
CONTROL.

``The Director of the Office of Foreign Assets Control
shall notify Congress upon the termination of any
investigation by the Office of Foreign Assets Control of the
Department of the Treasury if any sanction is imposed by the
Director of such office as a result of the investigation.''.
TITLE II--PREVENTING THE GROWTH OF RADICAL ISLAMIC FUNDAMENTALISM
Subtitle A--Quality Educational Opportunities

SEC. 201. FINDINGS, POLICY, AND DEFINITION.

(a) Findings.--Congress makes the following findings:
(1) The report of the National Commission on Terrorist
Attacks Upon the United States stated that ``[e]ducation that
teaches tolerance, the dignity and value of each individual,
and respect for different beliefs is a key element in any
global strategy to eliminate Islamic terrorism''.
(2) According to the United Nations Development Program
Arab Human Development Report for 2002, 10,000,000 children
between the ages of 6 through 15 in the Arab world do not
attend school, and \2/3\ of the 65,000,000 illiterate adults
in the Arab world are women.
(3) The report of the National Commission on Terrorist
Attacks Upon the United States concluded that ensuring
educational opportunity is essential to the efforts of the
United States to defeat global terrorism and recommended that
the United States Government ``should offer to join with
other nations in generously supporting [spending funds] . . .
directly on building and operating primary and secondary
schools in those Muslim states that commit to sensibly
investing financial resources in public education''.
(b) Policy.--It is the policy of the United States--
(1) to work toward the goal of dramatically increasing the
availability of basic education in the developing world,
which will reduce the influence of radical madrassas and
other institutions that promote religious extremism;
(2) to join with other countries in generously supporting
the International Youth Opportunity Fund authorized under
section 7114 of the 9/11 Commission Implementation Act of
2004 (Public Law 108-458), with the goal of building and
operating primary and secondary schools in Muslim countries
that commit to sensibly investing the resources of such
countries in public education;
(3) to work with the international community, including
foreign countries and international organizations to raise
$7,000,000,000 to $10,000,000,000 each year to fund education
programs in Muslim countries;
(4) to offer additional incentives to countries to increase
the availability of basic education; and
(5) to work to prevent financing of educational
institutions that support radical Islamic fundamentalism.
(c) Appropriate Congressional Committees Defined.--In this
subtitle, the term ``appropriate congressional committees''
means the Committee on Foreign Relations and the Committee on
Appropriations of the Senate and the Committee on
International Relations and the Committee on Appropriations
of the House of Representatives.

SEC. 202. ANNUAL REPORT TO CONGRESS.

Not later than June 1 of each year, the Secretary of State
shall submit to the appropriate congressional committees a
report on the efforts of countries in the developing world to
increase the availability of basic education and to close
educational institutions that promote religious extremism and
terrorism. Each report shall include--
(1) a list of countries that are making serious and
sustained efforts to increase the availability of basic
education and to close educational institutions that promote
religious extremism and terrorism;
(2) a list of countries that are making efforts to increase
the availability of basic education and to close educational
institutions that promote religious extremism and terrorism,
but such efforts are not serious and sustained; and
(3) a list of countries that are not making efforts to
increase the availability of basic education and to close
educational institutions that promote religious extremism and
terrorism.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

(a) International Education Programs.--There are authorized
to be appropriated to the President for ``Development
Assistance'' for international education programs carried out
under sections 105 and 496 of the Foreign Assistance Act of
1961 (22 U.S.C. 2151c and 2293)--
(1) for fiscal year 2006, $1,000,000,000; and
(2) for fiscal years 2007 and 2008, such sums as may be
necessary.
(b) International Youth Opportunity Fund.--There are
authorized to be appropriated to the President for fiscal
years 2006, 2007, and 2008 such sums as may be necessary for
the United States contribution to the International Youth
Opportunity Fund authorized under section 7114 of the 9/11
Commission Implementation Act of 2004 (Public Law 108-458)
for international education programs.
(c) Additional Funds.--Amounts authorized to be
appropriated in this section are in addition to amounts
otherwise available for such purposes.
Subtitle B--Democracy and Development in the Muslim World

SEC. 211. PROMOTING DEMOCRACY AND DEVELOPMENT IN THE MIDDLE
EAST, CENTRAL ASIA, SOUTH ASIA, AND SOUTHEAST
ASIA.

(a) Findings.--Congress makes the following findings:
(1) Al-Qaeda and affiliated groups have established a
terrorist network with linkages throughout the Middle East,
Central Asia, South Asia, and Southeast Asia.
(2) While political repression and lack of economic
development do not justify terrorism, increased political
freedoms and economic growth can contribute to an environment
that undercuts tendencies and conditions that facilitate the
rise of terrorist organizations.
(3) It is in the national security interests of the United
States to promote democracy, good governance, political
freedom, independent media, women's rights, private sector
development, and open economic systems in the countries of
the Middle East, Central Asia, South Asia, and Southeast
Asia.
(b) Policy.--It is the policy of the United States--
(1) to promote the objectives described in subsection
(a)(3) in the countries of the Middle East, Central Asia,
South Asia, and Southeast Asia;
(2) to provide assistance and resources to organizations
that are committed to promoting such objectives; and
(3) to work with other countries and international
organizations to increase the resources devoted to promoting
such objectives.
(c) Strategy.--Not later than 180 days after the date of
enactment of this Act, the Secretary of State shall submit to
Congress a strategy to promote the policy of the United
States set out in subsection (b). Such strategy shall
describe how funds appropriated pursuant to the authorization
of appropriations in subsection (d) will be used.
(d) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the President for the ``Economic Support Fund'' for
activities carried out under chapter 4 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.) to
promote the policy of the United States set out in subsection
(b)--
(A) for fiscal year 2006, $500,000,000; and
(B) for fiscal years 2007 and 2008, such sums as may be
necessary.
(2) Sense of congress on use of funds.--It is the sense of
Congress that a substantial portion of the funds appropriated
pursuant to the authorization of appropriations in paragraph
(1) should be made available to non-governmental
organizations that have a record of success working in the
countries of

[[Page S159]]

the Middle East, Central Asia, South Asia, and Southeast Asia
to support democratic parties, human rights organizations,
independent media, and the efforts to promote the rights of
women.
(3) Additional funds.--Amounts authorized to be
appropriated in paragraph (1) are in addition to amounts
otherwise available for such purposes.

SEC. 212. MIDDLE EAST FOUNDATION.

(a) Purposes.--The purposes of this section are to support,
through the provision of grants, technical assistance,
training, and other programs, in the countries of the Middle
East, the expansion of--
(1) civil society;
(2) opportunities for political participation for all
citizens;
(3) protections for internationally recognized human
rights, including the rights of women;
(4) educational system reforms;
(5) independent media;
(6) policies that promote economic opportunities for
citizens;
(7) the rule of law; and
(8) democratic processes of government.
(b) Middle East Foundation.--
(1) Designation.--The Secretary of State is authorized to
designate an appropriate private, nonprofit organization that
is organized or incorporated under the laws of the United
States or of a State as the Middle East Foundation (referred
to in this section as the ``Foundation'').
(2) Funding.--The Secretary of State is authorized to
provide funding to the Foundation through the Middle East
Partnership Initiative of the Department of State. The
Foundation shall use amounts provided under this paragraph to
carry out the purposes of this section, including through
making grants and providing other assistance to entities to
carry out programs for such purposes.
(3) Notification to congressional committees.--The
Secretary of State shall notify the Committee on Foreign
Relations of the Senate and the Committee on International
Relations of the House of Representatives prior to
designating an appropriate organization as the Foundation.
(c) Grants for Projects.--
(1) Foundation to make grants.--The Secretary of State
shall enter into an agreement with the Foundation that
requires the Foundation to use the funds provided under
subsection (b)(2) to make grants to persons (other than
governments or government entities) located in the Middle
East or working with local partners based in the Middle East
to carry out projects that support the purposes specified in
subsection (a).
(2) Center for public policy.--Under the agreement
described in paragraph (1), the Foundation may make a grant
to an institution of higher education located in the Middle
East to create a center for public policy for the purpose of
permitting scholars and professionals from the countries of
the Middle East and from other countries, including the
United States, to carry out research, training programs, and
other activities to inform public policymaking in the Middle
East and to promote broad economic, social, and political
reform for the people of the Middle East.
(3) Applications for grants.--An entity seeking a grant
from the Foundation under this section shall submit an
application to the head of the Foundation at such time, in
such manner, and including such information as the head of
the Foundation may reasonably require.
(d) Private Character of the Foundation.--Nothing in this
section shall be construed to--
(1) make the Foundation an agency or establishment of the
United States Government, or to make the officers or
employees of the Foundation officers or employees of the
United States for purposes of title 5, United States Code; or
(2) to impose any restriction on the Foundation's
acceptance of funds from private and public sources in
support of its activities consistent with the purposes of
this section.
(e) Limitation on Payments to Foundation Personnel.--No
part of the funds provided to the Foundation under this
section shall inure to the benefit of any officer or employee
of the Foundation, except as salary or reasonable
compensation for services.
(f) Retention of Interest.--The Foundation may hold funds
provided under this section in interest-bearing accounts
prior to the disbursement of such funds to carry out the
purposes of this section, and may retain for use for such
purposes any interest earned without returning such interest
to the Treasury of the United States and without further
appropriation by Congress.
(g) Financial Accountability.--
(1) Independent private audits of the foundation.--The
accounts of the Foundation shall be audited annually in
accordance with generally accepted auditing standards by
independent certified public accountants or independent
licensed public accountants certified or licensed by a
regulatory authority of a State or other political
subdivision of the United States. The report of the
independent audit shall be included in the annual report
required by subsection (h).
(2) GAO audits.--The financial transactions undertaken
pursuant to this section by the Foundation may be audited by
the General Accounting Office in accordance with such
principles and procedures and under such rules and
regulations as may be prescribed by the Comptroller General
of the United States.
(3) Audits of grant recipients.--
(A) In general.--A recipient of a grant from the Foundation
shall agree to permit an audit of the books and records of
such recipient related to the use of the grant funds.
(B) Recordkeeping.--Such recipient shall maintain
appropriate books and records to facilitate an audit referred
to subparagraph (A), including--
(i) separate accounts with respect to the grant funds;
(ii) records that fully disclose the use of the grant
funds;
(iii) records describing the total cost of any project
carried out using grant funds; and
(iv) the amount and nature of any funds received from other
sources that were combined with the grant funds to carry out
a project.
(h) Annual Reports.--Not later than January 31, 2006, and
annually thereafter, the Foundation shall submit to Congress
and make available to the public an annual report that
includes, for the fiscal year prior to the fiscal year in
which the report is submitted, a comprehensive and detailed
description of--
(1) the operations and activities of the Foundation that
were carried out using funds provided under this section;
(2) grants made by the Foundation to other entities with
funds provided under this section;
(3) other activities of the Foundation to further the
purposes of this section; and
(4) the financial condition of the Foundation.
Subtitle C--Restoring American Moral Leadership

SEC. 221. ADVANCING UNITED STATES INTERESTS THROUGH PUBLIC
DIPLOMACY.

(a) Findings.--Congress makes the following findings:
(1) The United States needs to improve its communication of
information and ideas to people in foreign countries,
particularly in countries with significant Muslim
populations.
(2) Public diplomacy should reaffirm the paramount
commitment of the United States to democratic principles,
including preserving the civil liberties of all the people of
the United States, including Muslim-Americans.
(3) The report of the National Commission on Terrorist
Attacks Upon the United States stated that, ``Recognizing
that Arab and Muslim audiences rely on satellite television
and radio, the government has begun some promising
initiatives in television and radio broadcasting to the Arab
world, Iran, and Afghanistan. These efforts are beginning to
reach large audiences. The Broadcasting Board of Governors
has asked for much larger resources. It should get them.''.
(4) A significant expansion of United States international
broadcasting would provide a cost-effective means of
improving communication with countries with significant
Muslim populations by providing news, information, and
analysis, as well as cultural programming, through both radio
and television broadcasts.
(b) Special Authority for Surge Capacity.--The United
States International Broadcasting Act of 1994 (22 U.S.C. 6201
et seq.) is amended by adding at the end the following new
section:

``SEC. 316. SPECIAL AUTHORITY FOR SURGE CAPACITY.

``(a) Emergency Authority.--
``(1) In general.--Whenever the President determines it to
be important to the national interests of the United States
and so certifies to the appropriate congressional committees,
the President, on such terms and conditions as the President
may determine, is authorized to direct any department,
agency, or other entity of the United States to furnish the
Broadcasting Board of Governors with such assistance as may
be necessary to provide international broadcasting activities
of the United States with a surge capacity to support United
States foreign policy objectives during a crisis abroad.
``(2) Supersedes existing law.--The authority of paragraph
(1) supersedes any other provision of law.
``(3) Surge capacity defined.--In this subsection, the term
`surge capacity' means the financial and technical resources
necessary to carry out broadcasting activities in a
geographical area during a crisis.
``(b) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the President such sums as may be necessary for the
President to carry out this section, except that no such
amount may be appropriated which, when added to amounts
previously appropriated for such purpose but not yet
obligated, would cause such amounts to exceed $25,000,000.
``(2) Availability of funds.--Amounts appropriated pursuant
to the authorization of appropriations in this subsection are
authorized to remain available until expended.
``(3) Designation of appropriations.--Amounts appropriated
pursuant to the authorization of appropriations in this
subsection may be referred to as the `United States
International Broadcasting Surge Capacity Fund'.''.
(c) Report.--An annual report submitted to the President
and Congress by the Broadcasting Board of Governors under
section 305(a)(9) of the United States International
Broadcasting Act of 1994 (22 U.S.C. 6204(a)(9)) shall provide
a detailed description of any activities carried out under
section 316 of such Act, as added by subsection (b).
(d) Authorization of Appropriations for United States
International Broadcasting Activities.--

[[Page S160]]

(1) In general.--In addition to amounts otherwise available
for such purposes, the following amounts are authorized to be
appropriated to carry out United States Government
broadcasting activities under the United States Information
and Educational Exchange Act of 1948 (22 U.S.C. 1431 et
seq.), the United States International Broadcasting Act of
1994 (22 U.S.C. 6201 et seq.), the Foreign Affairs Reform and
Restructuring Act of 1998 (as enacted in division G of the
Omnibus Consolidated and Emergency Supplemental
Appropriations Act, 1999; Public Law 105-277), and this Act,
and to carry out other authorities in law consistent with
such purposes:
(A) International broadcasting operations.--For
``International Broadcasting Operations'', $497,000,000 for
the fiscal year 2006.
(B) Broadcasting capital improvements.--For ``Broadcasting
Capital Improvements'', $70,000,000 for the fiscal year 2006.
(2) Availability of funds.--Amounts appropriated pursuant
to the authorization of appropriations in this section are
authorized to remain available until expended.

SEC. 222. DEPARTMENT OF STATE PUBLIC DIPLOMACY PROGRAMS.

(a) United States Educational, Cultural, and Public
Diplomacy Programs.--There is authorized to be appropriated
for the Department of State to carry out public diplomacy
programs of the Department under the United States
Information and Educational Exchange Act of 1948, the Mutual
Educational and Cultural Exchange Act of 1961, Reorganization
Plan Number 2 of 1977, the Foreign Affairs Reform and
Restructuring Act of 1998, the Center for Cultural and
Technical Interchange Between East and West Act of 1960, the
Dante B. Fascell North-South Center Act of 1991, and the
National Endowment for Democracy Act, and to carry out other
authorities in law consistent with the purposes of such Acts
for ``Educational and Cultural Exchange Programs'',
$500,000,000 for the fiscal year 2006.
(b) Administration of Foreign Affairs.--
The is authorized to be appropriated for the Department of
State under ``Administration of Foreign Affairs'' to carry
out the authorities, functions, duties, and responsibilities
in the conduct of foreign affairs of the United States, and
for other purposes authorized by law for ``Diplomatic and
Consular Programs'', $500,000,000 for the fiscal year 2006,
which shall only be available for public diplomacy
international information programs.

SEC. 223. TREATMENT OF DETAINEES.

(a) Findings.--Consistent with the report of the National
Commission on Terrorist Attacks Upon the United States,
Congress makes the following findings:
(1) Carrying out the global war on terrorism requires the
development of policies with respect to the detention and
treatment of captured international terrorists that are
adhered to by all coalition forces.
(2) Article 3 of the Convention Relative to the Treatment
of Prisoners of War, done at Geneva August 12, 1949 (6 UST
3316), was specifically designed for cases in which the usual
rules of war do not apply, and the minimum standards of
treatment pursuant to such Article are generally accepted
throughout the world as customary international law.
(b) Policy.--The policy of the United States is as follows:
(1) It is the policy of the United States to treat all
foreign persons captured, detained, interned, or otherwise
held in the custody of the United States (hereinafter
``detainees'') humanely and in accordance with the legal
obligations under United States law and international law,
including the obligations in the Convention Against Torture
and in the minimum standards set forth in the Geneva
Conventions.
(2) It is the policy of the United States that all
officials of the United States are bound both in wartime and
in peacetime by the legal prohibitions against torture,
cruel, inhumane, or degrading treatment set out in the
Constitution, laws, and treaties of the United States.
(3) If there is any doubt as to whether a detainee is
entitled to the protections afforded by the Geneva
Conventions, it is the policy of the United States that such
detainee shall enjoy the protections of the Convention
Relative to the Treatment of Prisoners of War, done at Geneva
August 12, 1949 (6 UST 3316) until such time as the
detainee's status can be determined pursuant to the
procedures authorized by Army Regulation 190-8, Section 1-6.
(4) It is the policy of the United States to provide
individualized hearings for all detainees for the purpose of
expeditiously holding detainees accountable for violations of
the law of war, other relevant international prohibitions, or
criminal laws alleged to have been committed by such
detainees or to expeditiously conduct intelligence
debriefings of such detainees.
(5) It is the policy of the United States to avoid the
indefinite detention of any individual in a manner which is
contrary to the legal principles and security interests of
the United States.
(c) Reporting.--The Secretary shall submit to the
appropriate congressional committees:
(1) A quarterly report providing the number of detainees
who were denied prisoner of war status under the Geneva
Conventions and the basis for denying such status to each
such detainee.
(2) Not later than 180 days after the date of the enactment
of this Act, a report setting forth--
(A) the proposed schedule for military commissions to be
held at Guantanamo Bay, Cuba; and
(B) the number of individuals currently held at Guantanamo
Bay, Cuba, the number of such individuals who are unlikely to
face a military commission in the next six months, and each
reason for not bringing such individuals before a military
commission.
(3) Not later than 15 days after the date of the enactment
of this Act, all International Committee of the Red Cross
reports, completed prior to the enactment of this Act,
concerning the treatment of detainees in United States
custody at Guantanamo Bay, Cuba, Iraq, and Afghanistan. Such
reports should be provided, in classified form.
(4) Not later than 90 days after the date of the enactment
of this Act, a report setting forth all interrogation
techniques approved, as of the date of the enactment of this
Act, by officials of the United States for use with
detainees.
(d) Annual Training Requirement.--The Secretary of Defense
shall certify to the appropriate congressional committees, no
later than June 1 of each year, that all Federal employees
and civilian contractors engaged in the handling or
interrogating of detainees have fulfilled an annual training
requirement on the laws of war, the Geneva Conventions, the
Convention Against Torture, and the obligations of the United
States under international humanitarian law.
(e) Prohibition on Torture or Cruel, Inhumane, or Degrading
Treatment or Punishment.--
(1) In general.--No detainee shall be subject to torture or
cruel, inhumane, or degrading treatment or punishment that is
prohibited by the Constitution, laws, or treaties of the
United States.
(2) Relationship to geneva conventions.--Nothing in this
section shall affect the status of any person under the
Geneva Conventions or whether any person is entitled to the
protections of the Geneva Conventions.
(f) Rules, Regulations, and Guidelines.--
(1) Requirement.--Not later than 180 days after the date of
the enactment of this Act, the Secretary and the Director
shall prescribe the rules, regulations, or guidelines
necessary to ensure compliance with the prohibition in
subsection (e)(1) by all personnel of the United States
Government and by any person providing services to the United
States Government on a contract basis.
(2) Report to congress.--The Secretary and the Director
shall submit to Congress the rules, regulations, or
guidelines prescribed under paragraph (1), and any
modifications to such rules, regulations, or guidelines--
(A) not later than 30 days after the effective date of such
rules, regulations, guidelines, or modifications; and
(B) in a manner and form that will protect the national
security interests of the United States.
(g) Reports on Possible Violations.--
(1) Requirement.--The Secretary and the Director shall each
submit, on a timely basis and not less than twice each year,
a report to Congress on the circumstances surrounding, and a
status report on, any investigation of a possible violation
of the prohibition in subsection (e)(1) by United States
Government personnel or by a person providing services to the
United States Government on a contract basis.
(2) Form of report.--A report required under paragraph (1)
shall be submitted in a manner and form that--
(A) will protect the national security interests of the
United States; and
(B) will not prejudice any prosecution of an individual
alleged to have violated the prohibition in subsection
(e)(1).
(h) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Armed Services, the Committee on the Judiciary, and the
Committee on Foreign Relations of the Senate and the
Committee on Armed Services, the Committee on the Judiciary,
and the Committee on International Relations of the House of
Representatives.
(2) Convention Against Torture.--The term ``Convention
Against Torture'' means the Convention Against Torture and
Other Cruel, Inhuman or Degrading Treatment or Punishment,
done at New York December 10, 1984.
(3) Director.--The term ``Director'' means the Director of
National Intelligence.
(4) Geneva conventions.--The term ``Geneva Conventions''
means--
(A) the Convention for the Amelioration of the Condition of
the Wounded and Sick in Armed Forces in the Field, done at
Geneva August 12, 1949 (6 UST 3114);
(B) the Convention for the Amelioration of the Condition of
the Wounded, Sick, and Shipwrecked Members of Armed Forces at
Sea, done at Geneva August 12, 1949 (6 UST 3217);
(C) the Convention Relative to the Treatment of Prisoners
of War, done at Geneva August 12, 1949 (6 UST 3316); and
(D) the Convention Relative to the Protection of Civilian
Persons in Time of War, done at Geneva August 12, 1949 (6 UST
3516).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Defense.
(6) Torture.--The term ``torture'' has the meaning given
that term in section 2340 of title 18, United States Code.

[[Page S161]]

SEC. 224. NATIONAL COMMISSION TO REVIEW POLICY REGARDING THE
TREATMENT OF DETAINEES.

(a) Establishment of Commission.--There is established the
National Commission To Review Policy Regarding the Treatment
of Detainees.
(b) Purposes.--The purposes of the Commission are as
follows:
(1) To examine and report upon the role of policymakers in
the development of intelligence related to the treatment of
individuals detained during Operation Iraqi Freedom or
Operation Enduring Freedom.
(2) To examine and report on the impact of the abuse of
prisoners by the United States personnel on the security of
the Armed Forces of the United States.
(3) To build upon the reviews of the policies of the United
States related to the treatment of individuals detained by
the United States, including such reviews conducted by the
executive branch, Congress, or other entities.
(c) Composition of the Commission.--
(1) Members.--The Commission shall be composed of 15
members, of whom--
(A) 3 members shall be appointed by the majority leader of
the Senate;
(B) 3 members shall be appointed by the Speaker of the
House of Representatives;
(C) 3 members shall be appointed by the minority leader of
the Senate;
(D) 3 members shall be appointed by the minority leader of
the House of Representatives;
(E) 1 member shall be appointed by the Judge Advocate
General of the Army;
(F) 1 member shall be appointed by the Judge Advocate
General of the Navy; and
(G) 1 member shall be appointed by the Judge Advocate
General of the Air Force.
(2) Chairperson; vice chairperson.--
(A) In general.--Subject to subparagraph (B), the
Chairperson and Vice Chairperson of the Commission shall be
elected by the members.
(B) Political party affiliation.--The Chairperson and Vice
Chairperson may not be from the same political party.
(3) Initial meeting.--Once 9 or more members of the
Commission have been appointed, those members who have been
appointed may meet and, if necessary, select a temporary
chairperson, who may begin the operations of the Commission,
including the hiring of staff.
(4) Quorum; vacancies.--After its initial meeting, the
Commission shall meet upon the call of the Chairperson or a
majority of its members. Eight members of the Commission
shall constitute a quorum. Any vacancy in the Commission
shall not affect its powers, but shall be filled in the same
manner in which the original appointment was made.
(5) Sense of congress on qualifications of commission
members.--It is the sense of Congress that individuals
appointed to the Commission should be prominent United States
citizens, with national recognition and significant depth of
experience in the fields of intelligence, law enforcement, or
foreign affairs, or experience serving the United States
Government, including service in the Armed Forces.
(d) Functions of the Commission.--The functions of the
Commission are--
(1) to conduct an investigation that--
(A) investigates the development of policy relating to
individuals detained during Operation Iraqi Freedom or
Operation Enduring Freedom;
(B) determines whether the United States policy related to
the treatment of detained individuals has adversely affected
the security of the members of the Armed Forces of the United
States;
(C) determines whether and to what extent the incidences of
abuse of detained individuals has affected the standing of
the United States in the world;
(D) determines whether and to what extent leaders of the
United States Armed Forces were given the opportunity to
comment on and influence policy relating to treatment of
detained individuals; and
(E) determines whether and to what extent policy relating
to the treatment of individuals detained during Operation
Iraqi Freedom or Operation Enduring Freedom differed from the
policies and practices regarding detainees established by the
Armed Forces prior to such operations; and
(2) to submit to the President and Congress such report as
is required by this section containing such findings,
conclusions, and recommendations as the Commission shall
determine, including proposing organization, coordination,
planning, management arrangements, procedures, rules, and
regulations.
(e) Powers of the Commission.--
(1) In general.--
(A) Hearings and evidence.--The Commission or, on the
authority of the Commission, any subcommittee or member
thereof, may, for the purpose of carrying out this section--
(i) hold such hearings and sit and act at such times and
places, take such testimony, receive such evidence,
administer such oaths; and
(ii) require, by subpoena or otherwise, the attendance and
testimony of such witnesses and the production of such books,
records, correspondence, memoranda, cables, electronic
messages, papers, and documents, as the Commission or such
designated subcommittee or designated member may determine
advisable.
(B) Subpoenas.--
(i) Issuance.--Subpoenas issued under subparagraph (A)(ii)
may be issued under the signature of the Chairperson of the
Commission, the Vice Chairperson of the Commission, the
chairperson of any subcommittee created by a majority of the
Commission, or any member designated by a majority of the
Commission, and may be served by any person designated by the
Chairperson, subcommittee chairperson, or member.
(ii) Enforcement.--
(I) In general.--In the case of contumacy or failure to
obey a subpoena issued under subparagraph (A)(ii), the United
States district court for the judicial district in which the
subpoenaed person resides, is served, or may be found, or
where the subpoena is returnable, may issue an order
requiring such person to appear at any designated place to
testify or to produce documentary or other evidence. Any
failure to obey the order of the court may be punished by the
court as a contempt of that court.
(II) Additional enforcement.--In the case of any failure of
any witness to comply with any subpoena or to testify when
summoned under authority of this section, the Commission may,
by majority vote, certify a statement of fact constituting
such failure to the appropriate United States attorney, who
may bring the matter before the grand jury for its action,
under the same statutory authority and procedures as if the
United States attorney had received a certification under
sections 102 through 104 of the Revised Statutes of the
United States (2 U.S.C. 192 through 194).
(2) Closed meetings.--
(A) In general.--Meetings of the Commission may be closed
to the public under section 10(d) of the Federal Advisory
Committee Act (5 U.S.C. App.) or other applicable law.
(B) Additional authority.--In addition to the authority
under subparagraph (A), section 10(a)(1) and (3) of the
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to any portion of a Commission meeting if the President
determines that such portion or portions of that meeting is
likely to disclose matters that could endanger national
security. If the President makes such determination, the
requirements relating to a determination under section 10(d)
of that Act shall apply.
(3) Contracting.--The Commission may, to such extent and in
such amounts as are provided in appropriation Acts, enter
into contracts to enable the Commission to discharge its
duties under this section.
(4) Information from federal agencies.--The Commission is
authorized to secure directly from any executive department,
bureau, agency, board, commission, office, independent
establishment, or instrumentality of the Government
information, suggestions, estimates, and statistics for the
purposes of this section. Each department, bureau, agency,
board, commission, office, independent establishment, or
instrumentality shall, to the extent authorized by law,
furnish such information, suggestions, estimates, and
statistics directly to the Commission, upon request made by
the Chairperson, the chairperson of any subcommittee created
by a majority of the Commission, or any member designated by
a majority of the Commission.
(5) Assistance from federal agencies.--
(A) General services administration.--The Administrator of
General Services shall provide to the Commission on a
reimbursable basis administrative support and other services
for the performance of the Commission's functions.
(B) Other departments and agencies.--In addition to the
assistance prescribed in subparagraph (A), departments and
agencies of the United States are authorized to provide to
the Commission such services, funds, facilities, staff, and
other support services as they may determine advisable and as
may be authorized by law.
(6) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
(7) Postal services.--The Commission may use the United
States mails in the same manner and under the same conditions
as departments and agencies of the United States.
(f) Staff of the Commission.--
(1) Appointment and compensation.--The Chairperson and Vice
Chairperson, in accordance with rules agreed upon by the
Commission, may appoint and fix the compensation of a staff
director and such other personnel as may be necessary to
enable the Commission to carry out its functions, without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification
and General Schedule pay rates, except that no rate of pay
fixed under this subsection may exceed the equivalent of that
payable for a position at level V of the Executive Schedule
under section 5316 of title 5, United States Code.
(2) Personnel as federal employees.--
(A) In general.--The executive director and any personnel
of the Commission who are employees shall be employees under
section 2105 of title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title.
(B) Members of commission.--Subparagraph (A) shall not be
construed to apply to a member of the Commission.
(3) Detailees.--Any Federal Government employee may be
detailed to the Commission without reimbursement from the
Commission, and such detailee shall retain the rights,
status, and privileges of his or her regular employment
without interruption.
(4) Consultant services.--The Commission is authorized to
procure the services of

[[Page S162]]

experts and consultants in accordance with section 3109 of
title 5, United States Code, but at rates not to exceed the
daily rate paid a person occupying a position at level IV of
the Executive Schedule under section 5315 of title 5, United
States Code.
(g) Compensation and Travel Expenses.--
(1) Compensation.--Each member of the Commission may be
compensated at not to exceed the daily equivalent of the
annual rate of basic pay in effect for a position at level IV
of the Executive Schedule under section 5315 of title 5,
United States Code, for each day during which that member is
engaged in the actual performance of the duties of the
Commission.
(2) Travel expenses.--While away from their homes or
regular places of business in the performance of services for
the Commission, members of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence,
in the same manner as persons employed intermittently in the
Government service are allowed expenses under section 5703(b)
of title 5, United States Code.
(h) Security Clearances for Commission Members and Staff.--
The appropriate departments and agencies of the Government
shall cooperate with the Commission in expeditiously
providing to the Commission members and staff appropriate
security clearances in a manner consistent with existing
procedures and requirements, except that no person shall be
provided with access to classified information under this
section who would not otherwise qualify for such security
clearance.
(i) Report of the Commission.--Not later than 9 months
after the date of the first meeting of the Commission, the
Commission shall submit to the President and Congress a
report containing such findings, conclusions, and
recommendations as have been agreed to by a majority of
Commission members.
(j) Termination.--
(1) Termination.--The Commission, and all the authorities
of this section, shall terminate 60 days after the date on
which the report is submitted under subsection (i).
(2) Administrative activities before termination.--The
Commission may use the 60-day period referred to in paragraph
(1) for the purpose of concluding its activities, including
providing testimony to committees of Congress concerning its
reports and disseminating the second report.
(k) Authorization of Appropriations.--There are authorized
to be appropriated to the Commission to carry out this
section $5,000,000, to remain available until expended.
Subtitle D--Strategy for the United States Relationship With
Afghanistan, Pakistan, and Saudi Arabia

SEC. 231. AFGHANISTAN.

(a) Afghanistan Freedom Support Act of 2002.--Section
108(a) the Afghanistan Freedom Support Act of 2002 (22 U.S.C.
7518(a)) is amended by striking ``such sums as may be
necessary for each of the fiscal years 2005 and 2006'' and
inserting ``$2,400,000,000 for fiscal year 2006 and such sums
as may be necessary for each of the fiscal years 2007 and
2008''.
(b) Other Authorizations of Appropriations.--
(1) Fiscal year 2006.--There are authorized to be
appropriated to the President for providing assistance for
Afghanistan in a manner consistent with the provisions of the
Afghanistan Freedom Support Act of 2002 (22 U.S.C. 7501 et
seq.) for fiscal year 2006--
(A) for ``International Military Education and Training'',
$1,000,000 to carry out the provisions of section 541 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2347);
(B) for ``Foreign Military Financing Program'' grants,
$444,000,000 to carry out the provisions of section 23 of the
Arms Export Control Act (22 U.S.C. 2763); and
(C) for ``Peacekeeping Operations'', $30,000,000 to carry
out the provisions of section 551 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2348).
(2) Fiscal years 2007 and 2008.--
(A) Authorization of appropriation.--There are authorized
to be appropriated for each of the purposes described in
subparagraphs (A) through (C) of paragraph (1) such sums as
may be necessary for each of the fiscal years 2007 and 2008.
(B) Sense of congress.--It is the sense of Congress that
the amount appropriated for each purpose described in
subparagraphs (A) through (C) of paragraph (1) for each of
the fiscal years 2007 and 2008 should be an amount that is
equal to 125 percent of the amount appropriated for such
purpose during the preceding fiscal year.
(3) Other funds.--Amounts authorized to be appropriated
under this section are in addition to amounts otherwise
available for such purposes.

SEC. 232. PAKISTAN.

(a) Findings.--Congress makes the following findings:
(1) Since September 11, 2001, the Government of Pakistan
has been an important partner in helping the United States
remove the Taliban regime in Afghanistan and combating
international terrorism in the frontier provinces of
Pakistan.
(2) There remain a number of critical issues that threaten
to disrupt the relationship between the United States and
Pakistan, undermine international security, and destabilize
Pakistan, including--
(A) curbing the proliferation of nuclear weapons
technology;
(B) combating poverty and corruption;
(C) building effective government institutions, especially
secular public schools;
(D) promoting democracy and rule of law, particularly at
the national level; and
(E) effectively dealing with Islamic extremism.
(b) Policy.--It is the policy of the United States--
(1) to work with the Government of Pakistan to combat
international terrorism, especially in the frontier provinces
of Pakistan;
(2) to establish a long-term strategic partnership with the
Government of Pakistan to address the issues described in
subparagraphs (A) through (E) of subsection (a)(2);
(3) to dramatically increase funding for United States
Agency for International Development and Department of State
programs that assist Pakistan in addressing such issues, if
the Government of Pakistan demonstrates a commitment to
building a moderate, democratic state; and
(4) to work with the international community to secure
additional financial and political support to effectively
implement the policies set forth in this subsection and help
to resolve the dispute between the Government of Pakistan and
the Government of India over the disputed territory of
Kashmir.
(c) Strategy on Pakistan.--
(1) Requirement for report on strategy.--Not later than 90
days after the date of enactment of this Act, the President
shall submit to the appropriate congressional committees a
report, in classified form if necessary, that describes the
long-term strategy of the United States to engage with the
Government of Pakistan to address the issues described in
subparagraphs (A) through (E) of subsection (a)(2) in order
accomplish the goal of building a moderate, democratic
Pakistan.
(2) Appropriate congressional committees defined.--In this
subsection the term ``appropriate congressional committees''
means the Committee on Appropriations and the Committee on
Foreign Relations in the Senate, and the Committee on
Appropriations and the Committee on International Relations
of the House of Representatives.
(d) Nuclear Proliferation.--
(1) Finding.--Congress finds that Pakistan's maintenance of
a global missile and nuclear proliferation network would be
inconsistent with Pakistan being considered an ally of the
United States.
(2) Sense of congress.--It is the sense of Congress that
the national security interest of the United States will best
be served if the United States develops and implements a
long-term strategy to improve the United States relationship
with Pakistan and works with the Government of Pakistan to
stop nuclear proliferation.
(3) Limitation on assistance to pakistan.--None of the
funds appropriated for a fiscal year to provide military or
economic assistance to the Government of Pakistan may be made
available for such purpose unless the President submits to
Congress for such fiscal year a certification that no
military or economic assistance provided by the United States
to the Government of Pakistan will be provided, either
directly or indirectly, to a person that is opposing or
undermining the efforts of the United States Government to
halt the proliferation of nuclear weapons.
(e) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the President for providing assistance for Pakistan for
fiscal year 2006--
(A) for ``Development Assistance'', $50,000,000 to carry
out the provisions of section 103, 105, and 106 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151a, 2151c, and
2151d,);
(B) for the ``Child Survival and Health Programs Fund'',
$35,000,000 to carry out the provisions of sections 104 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2151b);
(C) for the ``Economic Support Fund'', $350,000,000 to
carry out the provisions of chapter 4 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.);
(D) for ``International Narcotics and Law Enforcement'',
$50,000,000 to carry out the provisions of section 481 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2291);
(E) for ``Nonproliferation, Anti-Terrorism, Demining, and
Related Programs'', $10,000,000;
(F) for ``International Military Education and Training'',
$2,000,000 to carry out the provisions of section 541 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2347); and
(G) for ``Foreign Military Financing Program'',
$300,000,000 grants to carry of the provision of section 23
of the Arms Export Control Act (22 U.S.C. 2763).
(2) Other funds.--Amounts authorized to be appropriated
under this section are in addition to amounts otherwise
available for such purposes.

SEC. 233. SAUDI ARABIA.

(a) Findings.--Congress makes the following findings:
(1) The Kingdom of Saudi Arabia has an uneven record in the
fight against terrorism, especially with respect to terrorist
financing, support for radical madrassas, and a lack of
political outlets for its citizens, that poses a threat to
the security of the United States, the international
community, and the Kingdom of Saudi Arabia itself.
(2) The United States has a national security interest in
working with the Government of Saudi Arabia to combat
international terrorists that operate within that nation or
that operate outside Saudi Arabia with the support of
citizens of Saudi Arabia.

[[Page S163]]

(3) In order to more effectively combat terrorism, the
Government of Saudi Arabia must undertake a number of
political and economic reforms, including increasing anti-
terrorism operations conducted by law enforcement agencies,
providing more political rights to its citizens, increasing
the rights of women, engaging in comprehensive educational
reform, enhancing monitoring of charitable organizations,
promulgating and enforcing domestic laws and regulation on
terrorist financing.
(b) Policy.--It is the policy of the United States--
(1) to engage with the Government of Saudi Arabia to openly
confront the issue of terrorism, as well as other problematic
issues such as the lack of political freedoms, with the goal
of restructuring the relationship on terms that leaders of
both nations can publicly support;
(2) to enhance counterterrorism cooperation with the
Government of Saudi Arabia, if the political leaders of such
Government are committed to making a serious, sustained
effort to combat terrorism; and
(3) to support the efforts of the Government of Saudi
Arabia to make political, economic, and social reforms
throughout the country.
(c) Strategy on Saudi Arabia.--
(1) Requirement for report on strategy.--Not later than 90
days after the date of enactment of this Act, the President
shall submit to the appropriate congressional committees a
report, in classified form if necessary, that describes the
long-term strategy of the United States--
(A) to engage with the Government of Saudi Arabia to
facilitate political, economic, and social reforms that will
enhance the ability of the Government of Saudi Arabia to
combat international terrorism; and
(B) to effectively prevent the financing of terrorists in
Saudi Arabia.
(2) Appropriate congressional committees defined.--In this
subsection the term ``appropriate congressional committees''
means the Committee on Appropriations and the Committee on
Foreign Relations in the Senate, and the Committee on
Appropriations and the Committee on International Relations
of the House of Representatives.
TITLE III--PROTECTION FROM TERRORIST ATTACKS THAT UTILIZE NUCLEAR,
CHEMICAL, BIOLOGICAL, AND RADIOLOGICAL WEAPONS
Subtitle A--Non-Proliferation Programs

SEC. 301. REPEAL OF LIMITATIONS TO THREAT REDUCTION
ASSISTANCE.

Section 5 of S. 2980 of the 108th Congress (the ``Nunn-
Lugar Cooperative Threat Reduction Act of 2004''), as
introduced on November 16, 2004, is hereby enacted into law.

SEC. 302. REUSE OF RUSSIAN NUCLEAR FACILITIES.

(a) In General.--The Secretary of Energy shall work with
the Minister of Atomic Energy of Russia to carry out a
program to close or convert to non-defense work one or more
nuclear weapons assembly and disassembly facilities in
Russia.
(b) Designation of Facilities.--The Secretary of Energy and
Minister of Atomic Energy of Russia shall jointly designate
each facility to be covered by the program under subsection
(a).
(c) Commissions To Provide Advice and Recommendations.--
(1) In general.--Not later than two months after the
designation of a facility under subsection (b), the Secretary
of Energy shall establish a commission to provide advice and
recommendations on the closure or conversion of the facility
to non-defense work.
(2) Commission membership.--Each commission established
under paragraph (1) shall consist of such personnel,
including Russian nationals, as the Secretary considers
appropriate for its work. The names of each member of each
commission shall be made public upon designation under this
paragraph.
(3) Personnel matters.--
(A) Compensation.--Each member of a commission established
under paragraph (1) who is not an officer or employee of the
Federal Government shall be compensated at a rate equal to
the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each day
(including travel time) during which such member is engaged
in the performance of the duties of such commission. All
members of a commission who are officers or employees of the
United States shall serve without compensation in addition to
that received for their services as officers or employees of
the United States.
(B) Travel expenses.--The members of a commission
established under paragraph (1) shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance
of services for such commission.
(4) FACA.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to any activities of a commission
established under paragraph (1).
(5) Open meetings.--The meetings of any commission under
paragraph (1) shall, to the maximum extent practicable, be
open to the public.
(d) Proposed Facility Reuse Plan.--
(1) Requirement for proposed plan.--Not later than six
months after the designation of a facility under subsection
(b), the commission for the facility under subsection (c)
shall submit to the Secretary of Energy and the Minister of
Atomic Energy of Russia a proposed plan on the closure or
conversion of the facility to non-defense work.
(2) Elements of proposed plan.--A proposed plan under
paragraph (1) may include one or more of the elements
specified in subsection (f).
(3) Availability of proposed plan.--Any proposed plan
submitted under paragraph (1) shall be made public upon its
submittal.
(e) Final Facility Reuse Plan.--
(1) Requirement for final plan.--Not later than nine months
after receiving a proposed plan for a facility under
subsection (d), the Secretary of Energy and the Minister of
Atomic Energy of Russia shall jointly develop a final plan on
the closure or conversion of the facility to non-defense
work.
(2) Elements of final plan.--A final plan for a facility
under paragraph (1) shall include the following:
(A) Any of the elements specified in subsection (f).
(B) Assurances of access to the facility necessary to carry
out the final plan.
(C) Resolution of any matters relating to liability and
taxation.
(D) An estimate of the costs of the United States, and of
Russia, under the final plan.
(E) The commitment of Russia to pay at least 15 percent of
the costs of the final plan.
(F) Milestones for the final plan, including a deadline for
the closure or conversion of the facility to non-defense
work.
(G) Appropriate auditing and accounting mechanisms.
(f) Plan Elements.--The plan for a facility under
subsection (d) or (e) may include one or more of the
following elements:
(1) A retraining program for facility employees.
(2) Economic incentives to attract and facilitate
commercial ventures in connection with the facility.
(3) A site preparation plan.
(4) Technical exchange and training programs.
(5) The participation of a redevelopment manager and of
business, legal, financial, or other appropriate experts.
(6) Promotional or marketing plans.
(7) Provision for startup funds, loans, or grants, or other
venture capital or financing.
(g) Limitation on Availability of Funds.--No amount
authorized to be appropriated by subsection (h) may be
available for a facility under the program established under
subsection (a) unless the deadlines for the preparation of
the proposed facility reuse plan for the facility under
subsection (d) and for the preparation of the final facility
reuse plan for the facility under subsection (e) are both
met.
(h) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Department of Energy, $60,000,000 to carry out this
section, of which not more than $4,000,000 may be available
to each commission established under subsection (c).
(2) Availability of funds.--The amount authorized to be
appropriated by paragraph (1) shall remain available until
expended.

SEC. 303. RUSSIAN TACTICAL NUCLEAR WEAPONS.

(a) Report Required.--Not later than six months after the
date of the enactment of this Act, the President shall submit
to Congress a report setting forth the following:
(1) An assessment of the number, location, condition, and
security of Russian tactical nuclear weapons.
(2) An assessment of the threat that would be posed by the
theft of Russian tactical nuclear weapons.
(3) A plan for developing with Russia a cooperative program
to secure, consolidate, and, as appropriate, dismantle
Russian tactical nuclear weapons.
(b) Program.--The Secretary of Defense and the Secretary of
Energy shall jointly work with Russia to establish a
cooperative program, based on the report under subsection
(a), to secure, consolidate, and, as appropriate, dismantle
Russian tactical nuclear weapons in order to achieve
reductions in the total number of Russian tactical nuclear
weapons.
(c) Authorization of Appropriations.--
(1) Department of defense.--There is authorized to be
appropriated for the Department of Defense, $25,000,000 to
carry out this section.
(2) Department of energy.--There is authorized to be
appropriated for the Department of Energy, $25,000,000 to
carry out this section.

SEC. 304. ADDITIONAL ASSISTANCE TO ACCELERATE NON-
PROLIFERATION PROGRAMS.

(a) Authorization of Appropriations for the Department of
Defense.--There is authorized to be appropriated to the
Department of Defense $40,000,000 for fiscal year 2006 for
Cooperative Threat Reduction Activities as follows:
(1) To accelerate security upgrades at warhead storage
sites located in Russia or another country of the former
Soviet Union, $15,000,000.
(2) To accelerate security upgrades at warhead storage
sites located in countries other than the countries of the
former Soviet Union, $10,000,000.
(3) To accelerate biological weapons proliferation
prevention programs in Kazakhstan, Georgia, and Uzbekiztan,
$15,000,000.
(b) Authorization of Appropriations for the Department of
Energy.--There is

[[Page S164]]

authorized to be appropriated to the Department of Energy
$95,000,000 for fiscal year 2006 for nonproliferation
activities of the National Nuclear Security Administration as
follows:
(1) To accelerate the Global Threat Reduction Initiative,
$20,000,000.
(2) To accelerate security upgrades at warhead storage
sites located in Russia or another country of the former
Soviet Union, $15,000,000.
(3) To accelerate the closure of the plutonium producing
reactor at Zheleznogorsk, Russia as part of the program to
eliminate weapons grade plutonium production, $25,000,000.
(4) To accelerate completion of comprehensive security
upgrades at Russian storage sites for weapons-usable nuclear
materials, $15,000,000.
(c) Authorization of Appropriations for the Department of
State.--
(1) In general.--There is authorized to be appropriated to
the Department of State $25,000,000 for fiscal year 2006 for
nonproliferation activities as follows:
(A) To accelerate engagement of former chemical an
biological weapons scientists in Russia and the countries of
the former Soviet Union through the Bio-Chem Redirect
Program, $15,000,000.
(B) To enhance efforts to combat bioterrorism by
transforming the for Soviet biological weapons research and
production facilities to commercial enterprises through the
BioIndustry Initiative, $10,000,000.
(2) Availability of funds.--The amount authorized to be
appropriated by paragraph (1) shall remain available until
expended.

SEC. 305. ADDITIONAL ASSISTANCE TO THE INTERNATIONAL ATOMIC
ENERGY AGENCY.

There is authorized to be appropriated to the Department of
Energy $20,000,000 to be used to provide technical and other
assistance to the International Atomic Energy Agency to
support nonproliferation programs. Such amount is in addition
to amounts otherwise available for such purpose.
Subtitle B--Border Protection

SEC. 311. FINDINGS.

Congress makes the following findings:
(1) More than 500,000,000 people cross the borders of the
United States at legal points of entry each year, including
approximately 330,000,000 people who are not citizens of the
United States.
(2) The National Commission on Terrorist Attacks Upon the
United States found that 15 of the 19 hijackers involved in
the September 11, 2001 terrorist attacks ``were potentially
vulnerable to interception by border authorities''.
(3) Officials with the Bureau of Customs and Border
Protection and with the Bureau of Immigration and Customs
Enforcement have stated that there is a shortage of agents in
such Bureaus. Due to an inadequate budget, the Bureau of
Immigration and Customs Enforcement has effected a hiring
freeze since March 2004, and the Bureau has not made public
any plans to end this freeze.

SEC. 312. HIRING AND TRAINING OF BORDER SECURITY PERSONNEL.

(a) Inspectors and Agents.--
(1) Increase in inspectors and agents.--During each of
fiscal years 2005 through 2008, the Under Secretary shall--
(A) increase the number of full-time agents and associated
support staff in the Bureau of Immigration and Customs
Enforcement of the Department of Homeland Security by the
equivalent of at least 100 more than the number of such
employees in the Bureau as of the end of the preceding fiscal
year; and
(B) increase the number of full-time inspectors and
associated support staff in the Bureau of Customs and Border
Protection by the equivalent of at least 200 more than the
number of such employees in the Bureau as of the end of the
preceding fiscal year.
(2) Waiver of fte limitation.--The Under Secretary is
authorized to waive any limitation on the number of full-time
equivalent personnel assigned to the Department of Homeland
Security to fulfill the requirements of paragraph (1).
(b) Training.--The Under Secretary shall provide
appropriate training for agents, inspectors, and associated
support staff on an ongoing basis to utilize new technologies
and to ensure that the proficiency levels of such personnel
are acceptable to protect the borders of the United States.
Subtitle C--Seaport Protection

SEC. 321. FINDINGS.

Congress makes the following findings:
(1) The United States port system is a vital artery of the
economy of the United States. Almost 95 percent of all
foreign trade passes through one or more of the 361 ports in
the United States. Such seaports handle more than
2,000,000,000 tons of domestic and international freight each
year of which has a value of more than $740,000,000. The
shipment of cargo in vessels creates employment for
13,000,000 people within the United States.
(2) The United States Coast Guard has estimated that, given
this tremendous commerce, a terrorist attack shutting down a
major port in the United States would have a $60,000,000
impact on the United States economy during the first 30 days
after such an attack.
(3) Although 6,000,000 cargo containers, each a possible
hiding place for a bomb or other weapon, are off-loaded at
ports in the United States each year, less than \1/10\ of
these containers are physically inspected. A container ship
can carry as many as 3,000 containers, each one weighing up
to 45,000 pounds, hundreds of which may be off-loaded at a
port.
(4) The United States Coast Guard has estimated that the
maritime security requirements set for ports by the Maritime
Transportation Security Act of 2002 (Public Law 107-295; 116
Stat. 2064), which are critical to protecting United States
ports from a nuclear terrorist attack, will cost
$5,400,000,000 to implement over a 10-year period.

SEC. 322. PORT SECURITY GRANT FUNDING.

Section 70107(h) of title 46, United States Code, is
amended to read as follows:
``(h) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
subsections (a) through (g)--
``(1) $500,000,000 for fiscal year 2006;
``(2) $750,000,000 for fiscal year 2007;
``(3) $1,000,000,000 for fiscal year 2008;
``(4) $1,250,000,000 for fiscal year 2009; and
``(5) such sums as may be needed for each fiscal year after
fiscal year 2009.''.

SEC. 323. DEPLOYMENT OF RADIATION DETECTION PORTAL EQUIPMENT;
INTEGRATED CARGO INSPECTION SYSTEM.

(a) In General.--Subtitle C of title IV of the Homeland
Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by
adding at the end the following new section:

``SEC. 431. DETECTION OF NUCLEAR MATERIAL AT UNITED STATES
SEAPORTS.

``(a) Deployment of Radiation Detection Portal Equipment.--
``(1) Deployment.--Not later than September 30, 2006, the
Undersecretary for Border and Transportation Security shall
deploy radiation detection portal equipment at all United
States seaports, other United States ports of entry, and
major facilities as determined by the Undersecretary.
``(2) Report.--Not later than December 31, 2005, the
Undersecretary shall submit to the appropriate congressional
committees a report on the implementation of the requirement
under paragraph (1).
``(3) Authorization of appropriations.--There is authorized
to be appropriated to the Undersecretary $217,000,000 for
fiscal year 2006 to carry out this subsection.
``(b) Integrated Cargo Inspection System.--
``(1) Plan.--The Undersecretary for Border and
Transportation Security shall develop a plan to integrate
radiation detection portal equipment with gamma-ray
inspection technology equipment at United States seaports and
foreign seaports that are participating the Container
Security Initiative in order to facilitate the detection of
nuclear weapons in maritime cargo containers. Such plan shall
include methods for automatic identification of containers
and vehicles for inspection in a timely manner and a data
sharing network capable of transmitting gamma-ray images and
cargo data among relevant ports and the National Targeting
Center of the Bureau of Customs and Border Protection.
``(2) Report.--Not later than 180 days after the date of
the enactment of the Targeting Terrorists More Effectively
Act of 2005, the Undersecretary for Border and Transportation
Security shall prepare and submit to the appropriate
congressional committees a report that contains--
``(A) a description of the plan developed under paragraph
(1), including any infrastructure improvements required at
the seaports involved;
``(B) an estimate of the costs associated with
implementation of the plan; and
``(C) an estimate of the timeframe for implementation of
the plan.''.

SEC. 324. ACCELERATION OF THE MEGAPORTS INITIATIVE.

(a) Deployment.--Not later than September 30, 2007, the
Administrator of the National Nuclear Security Administration
shall--
(1) complete agreements under the Megaports Initiative of
the Office of International Material Protection and
Cooperation with each country that possesses one or more of
the world's twenty largest seaports, as defined by volume of
maritime cargo traffic; and
(2) deploy radiation portal monitoring equipment to each
seaport operating under an agreement described in subsection
(a)(1).
(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Administrator such funds as are
necessary to carry out the provisions of this section.

SEC. 325. TANKER SECURITY INITIATIVE.

(a) Establishment.--The Secretary of Homeland Security
shall establish a Tanker Security Initiative to promulgate
and enforce standards and carry out activities to ensure that
tanker vessels that transport oil, natural gas, or other
materials are not used by terrorists or as carriers of
weapons of mass destruction.
(b) Elements.--To carry out the Tanker Security Initiative
the Secretary of Homeland Security may--
(1) develop physical standards intended to prevent
terrorists from placing a weapon of mass destruction in or on
a tanker vessel without detection;
(2) develop detection equipment, and prescribe the use of
such equipment, to be employed on a tanker vessel that is
bound for a United States port of entry;
(3) develop new security inspection procedures required to
be carried out on a tanker vessel at a foreign port of
embarkation, on

[[Page S165]]

the high seas, or in United States waters prior to the
arrival of such tanker at a United States port of entry;
(4) carry out research and development of sensing devices
to detect any nuclear device that is placed in or on a tanker
vessel; and
(5) provide assistance to a foreign country to assist such
country in carrying out any provisions of the Tanker Security
Initiative.
(c) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Homeland Security
shall submit to Congress a report that includes--
(1) a description of the terrorism risks posed by tanker
vessels:
(2) the elements of the Tanker Security Initiative
developed to combat such risks;
(3) a proposed budget describing the resources needed to
carry out the Tanker Security Initiative during the 3-year
period beginning on the date of the enactment of this Act;
and
(4) any proposal for legislation that the Secretary
determines would address effectively such risks.
Subtitle D--First Responders

SEC. 331. FINDINGS.

Congress makes the following findings:
(1) In a report entitled ``Emergency First Responders:
Drastically Underfunded, Dangerously Unprepared'', an
independent task force sponsored by the Council on Foreign
Relations found that ``America's local emergency responders
will always be the first to confront a terrorist incident and
will play the central role in managing its immediate
consequences. Their efforts in the first minutes and hours
following an attack will be critical to saving lives,
establishing order, and preventing mass panic. The United
States has both a responsibility and a critical need to
provide them with the equipment, training, and other
resources necessary to do their jobs safely and
effectively.''.
(2) The task force further concluded that many state and
local emergency responders, including police officers and
firefighters, lack the equipment and training needed to
respond effectively to a terrorist attack involving weapons
of mass destruction.
(3) The Federal Government has a responsibility to ensure
that the people of the United States are protected to the
greatest possible extent against a terrorist attack,
especially an attack that utilizes nuclear, chemical,
biological, or radiological weapons, and consequently, the
Federal Government has a critical responsibility to address
the equipment, training, and other needs of State and local
first responders.

SEC. 332. RESTORATION OF JUSTICE ASSISTANCE FUNDING.

(a) Findings.--Congress makes the following findings:
(1) State and local police officers, firefighters, and
emergency responders play an essential role in the efforts of
the United States to prevent terrorist attacks and, if an
attack occurred, to address the effects of the attack.
(2) An independent task force has concluded that hundreds
of local police offices and firefighting and emergency
response units throughout the United States are unprepared
for responding to a terrorist attack involving nuclear,
chemical, biological, or radiological weapons.
(3) The Edward Byrne Memorial Justice Assistance Grant
Program provides critical Federal support for personnel,
equipment, training, and technical assistance for the
homeland security responsibilities of local law enforcement
offices.
(4) The Consolidated Appropriations Act, 2005 (Public Law
108-447) appropriated funding for the Edward Byrne Memorial
Justice Assistance Grant Program, a program that resulted
from the combination of the Edward Byrne Memorial Grant
Program and the Local Law Enforcement Block Grant Program.
(5) Funding for the Edward Byrne Memorial Justice
Assistance Grant Program, as provided in the Consolidated
Appropriations Act, 2005, has been reduced by nearly 50
percent since fiscal year 2002.
(b) Sense of Congress.--It is the sense of Congress that
the President should request in the annual budget proposal,
and Congress should appropriate, the full amount authorized
to be appropriated in subsection (c).
(c) Authorization of Appropriations.--There is authorized
to be appropriated for the Edward Byrne Memorial Justice
Assistance Grant Program--
(1) for fiscal year 2006, $1,250,000,000;
(2) for fiscal year 2007, $1,400,000,000; and
(3) for fiscal year 2008, $1,600,000,000.

SEC. 333. PROVIDING RELIABLE OFFICERS, TECHNOLOGY, EDUCATION,
COMMUNITY PROSECUTORS, AND TRAINING IN OUR
NEIGHBORHOOD INITIATIVE.

(a) COPS Program.--Section 1701(a) of title I of the
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C.
3796dd(a)) is amended by--
(1) inserting ``and prosecutor'' after ``increase police'';
and
(2) inserting ``to enhance law enforcement access to new
technologies, and'' after ``presence,''.
(b) Hiring and Redeployment Grant Projects.--Section
1701(b) of title I of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3796dd(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) by inserting after ``Nation'' the following: ``, or pay
overtime to existing career law enforcement officers to the
extent that such overtime is devoted to community policing
efforts''; and
(ii) by striking ``and'' at the end;
(B) in subparagraph (C), by--
(i) striking ``or pay overtime''; and
(ii) striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following:
``(D) promote higher education among in-service State and
local law enforcement officers by reimbursing them for the
costs associated with seeking a college or graduate school
education.''; and
(2) in paragraph (2) by striking all that follows ``Support
Systems.--'' and inserting ``Grants pursuant to--
``(A) paragraph (1)(B) for overtime may not exceed 25
percent of the funds available for grants pursuant to this
subsection for any fiscal year;
``(B) paragraph (1)(C) may not exceed 20 percent of the
funds available for grants pursuant to this subsection in any
fiscal year; and
``(C) paragraph (1)(D) may not exceed 5 percent of the
funds available for grants pursuant to this subsection for
any fiscal year.''.
(c) Additional Grant Projects.--Section 1701(d) of title I
of the Omnibus Crime Control and Safe Streets Act of 1968 (42
U.S.C. 3796dd(d)) is amended--
(1) in paragraph (2)--
(A) by inserting ``integrity and ethics'' after
``specialized''; and
(B) by inserting ``and'' after ``enforcement officers'';
(2) in paragraph (7) by inserting ``school officials,
religiously-affiliated organizations,'' after ``enforcement
officers'';
(3) by striking paragraph (8) and inserting the following:
``(8) establish school-based partnerships between local law
enforcement agencies and local school systems, by using
school resource officers who operate in and around elementary
and secondary schools to serve as a law enforcement liaison
with other Federal, State, and local law enforcement and
regulatory agencies, combat school-related crime and disorder
problems, gang membership and criminal activity, firearms and
explosives-related incidents, illegal use and possession of
alcohol, and the illegal possession, use, and distribution of
drugs;'';
(4) in paragraph (10) by striking ``and'' at the end;
(5) in paragraph (11) by striking the period that appears
at the end and inserting ``; and''; and
(6) by adding at the end the following:
``(12) develop and implement innovative programs (such as
the TRIAD program) that bring together a community's sheriff,
chief of police, and elderly residents to address the public
safety concerns of older citizens.''.
(d) Technical Assistance.--Section 1701(f) of title I of
the Omnibus Crime Control and Safe Streets Act of 1968 (42
U.S.C. 3796dd(f)) is amended--
(1) in paragraph (1)--
(A) by inserting ``use up to 5 percent of the funds
appropriated under subsection (a) to'' after ``The Attorney
General may'';
(B) by inserting at the end the following: ``In addition,
the Attorney General may use up to 5 percent of the funds
appropriated under subsections (d), (e), and (f) for
technical assistance and training to States, units of local
government, Indian tribal governments, and to other public
and private entities for those respective purposes.'';
(2) in paragraph (2) by inserting ``under subsection (a)''
after ``the Attorney General''; and
(3) in paragraph (3)--
(A) by striking ``the Attorney General may'' and inserting
``the Attorney General shall'';
(B) by inserting ``regional community policing institutes''
after ``operation of''; and
(C) by inserting ``representatives of police labor and
management organizations, community residents,'' after
``supervisors,''.
(e) Technology and Prosecution Programs.--Section 1701 of
title I of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3796dd) is amended by--
(1) striking subsection (k);
(2) redesignating subsections (f) through (j) as
subsections (g) through (k); and
(3) striking subsection (e) and inserting the following:
``(e) Law Enforcement Technology Program.--Grants made
under subsection (a) may be used to assist police
departments, in employing professional, scientific, and
technological advancements that will help them--
``(1) improve police communications through the use of
wireless communications, computers, software, videocams,
databases and other hardware and software that allow law
enforcement agencies to communicate more effectively across
jurisdictional boundaries and effectuate interoperability;
``(2) develop and improve access to crime solving
technologies, including DNA analysis, photo enhancement,
voice recognition, and other forensic capabilities; and
``(3) promote comprehensive crime analysis by utilizing new
techniques and technologies, such as crime mapping, that
allow law enforcement agencies to use real-time crime and
arrest data and other related information--including non-
criminal justice data--to improve their ability to analyze,
predict, and respond pro-actively to local crime and disorder
problems, as well as to engage in regional crime analysis.

[[Page S166]]

``(f) Community-Based Prosecution Program.--Grants made
under subsection (a) may be used to assist State, local or
tribal prosecutors' offices in the implementation of
community-based prosecution programs that build on local
community policing efforts. Funds made available under this
subsection may be used to--
``(1) hire additional prosecutors who will be assigned to
community prosecution programs, including programs that
assign prosecutors to handle cases from specific geographic
areas, to address specific violent crime and other local
crime problems (including intensive illegal gang, gun and
drug enforcement projects and quality of life initiatives),
and to address localized violent and other crime problems
based on needs identified by local law enforcement agencies,
community organizations, and others;
``(2) redeploy existing prosecutors to community
prosecution programs as described in paragraph (1) of this
section by hiring victim and witness coordinators,
paralegals, community outreach, and other such personnel; and
``(3) establish programs to assist local prosecutors'
offices in the implementation of programs that help them
identify and respond to priority crime problems in a
community with specifically tailored solutions.

At least 75 percent of the funds made available under this
subsection shall be reserved for grants under paragraphs (1)
and (2) and of those amounts no more than 10 percent may be
used for grants under paragraph (2) and at least 25 percent
of the funds shall be reserved for grants under paragraphs
(1) and (2) to units of local government with a population of
less than 50,000.''.
(f) Retention Grants.--Section 1703 of title I of the
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C.
3796dd-2) is amended by inserting at the end the following:
``(d) Retention Grants.--The Attorney General may use no
more than 50 percent of the funds under subsection (a) to
award grants targeted specifically for retention of police
officers to grantees in good standing, with preference to
those that demonstrate financial hardship or severe budget
constraint that impacts the entire local budget and may
result in the termination of employment for police officers
funded under subsection (b)(1).''.
(g) Definitions.--
(1) Career law enforcement officer.--Section 1709(1) of
title I of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3796dd-8) is amended by inserting after
``criminal laws'' the following: ``including sheriffs
deputies charged with supervising offenders who are released
into the community but also engaged in local community
policing efforts.''.
(2) School resource officer.--Section 1709(4) of title I of
the Omnibus Crime Control and Safe Streets Act of 1968 (42
U.S.C. 3796dd-8) is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) to serve as a law enforcement liaison with other
Federal, State, and local law enforcement and regulatory
agencies, to address and document crime and disorder problems
including gangs and drug activities, firearms and explosives-
related incidents, and the illegal use and possession of
alcohol affecting or occurring in or around an elementary or
secondary school;'';
(B) by striking subparagraph (E) and inserting the
following:
``(E) to train students in conflict resolution, restorative
justice, and crime awareness, and to provide assistance to
and coordinate with other officers, mental health
professionals, and youth counselors who are responsible for
the implementation of prevention/intervention programs within
the schools;''; and
(C) by adding at the end the following:
``(H) to work with school administrators, members of the
local parent teacher associations, community organizers, law
enforcement, fire departments, and emergency medical
personnel in the creation, review, and implementation of a
school violence prevention plan;
``(I) to assist in documenting the full description of all
firearms found or taken into custody on school property and
to initiate a firearms trace and ballistics examination for
each firearm with the local office of the Bureau of Alcohol,
Tobacco, and Firearms;
``(J) to document the full description of all explosives or
explosive devices found or taken into custody on school
property and report to the local office of the Bureau of
Alcohol, Tobacco, and Firearms; and
``(K) to assist school administrators with the preparation
of the Department of Education, Annual Report on State
Implementation of the Gun-Free Schools Act which tracks the
number of students expelled per year for bringing a weapon,
firearm, or explosive to school.''.
(h) Authorization of Appropriations.--Section 1001(a)(11)
of title I of the Omnibus Crime Control and Safe Streets Act
of 1968 (42 U.S.C. 3793(a)(11)) is amended--
(1) by amending subparagraph (A) to read as follows:
``(A) There are authorized to be appropriated to carry out
part Q, to remain available until expended--
``(i) $1,150,000,000 for fiscal year 2006;
``(ii) $1,150,000,000 for fiscal year 2007;
``(iii) $1,150,000,000 for fiscal year 2008;
``(iv) $1,150,000,000 for fiscal year 2009;
``(v) $1,150,000,000 for fiscal year 2010; and
``(vi) $1,150,000,000 for fiscal year 2011.''; and
(2) in subparagraph (B)--
(A) by striking ``3 percent'' and inserting ``5 percent'';
(B) by striking ``1701(f)'' and inserting ``1701(g)'';
(C) by striking the second sentence and inserting ``Of the
remaining funds, if there is a demand for 50 percent of
appropriated hiring funds, as determined by eligible hiring
applications from law enforcement agencies having
jurisdiction over areas with populations exceeding 150,000,
no less than 50 percent shall be allocated for grants
pursuant to applications submitted by units of local
government or law enforcement agencies having jurisdiction
over areas with populations exceeding 150,000 or by public
and private entities that serve areas with populations
exceeding 150,000, and no less than 50 percent shall be
allocated for grants pursuant to applications submitted by
units of local government or law enforcement agencies having
jurisdiction over areas with populations less than 150,000 or
by public and private entities that serve areas with
populations less than 150,000.'';
(D) by striking ``85 percent'' and inserting
``$600,000,000''; and
(E) by striking ``1701(b),'' and all that follows through
``of part Q'' and inserting the following: ``1701 (b) and
(c), $350,000,000 to grants for the purposes specified in
section 1701(e), and $200,000,000 to grants for the purposes
specified in section 1701(f).''.

SEC. 334. FIRST RESPONDERS ANTI-TERRORISM PARTNERSHIP.

(a) Definitions.--In this section:
(1) Indian tribe.--The term ``Indian tribe'' has the same
meaning as in section 4(e) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(e)).
(2) Law enforcement officer.--The term ``law enforcement
officer'' means any officer, agent, or employee of a State,
unit of local government, public or private college or
university, or Indian tribe authorized by law or by a
government agency to engage in or supervise the prevention,
detection, or investigation of any violation of criminal law,
or authorized by law to supervise sentenced criminal
offenders.
(3) Public safety officer.--The term ``public safety
officer'' means any person serving a public or private agency
with or without compensation as a law enforcement officer, as
a firefighter, or as a member of a rescue squad or ambulance
crew.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Homeland Security.
(5) State.--The term ``State'' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto
Rico.
(6) Unit of local government.--The term ``unit of local
government'' means a county, municipality, town, township,
village, parish, borough, or other unit of general government
below the State level.
(b) First Responders Partnership Grant Program for Public
Safety Officers.--
(1) In general.--The Secretary is authorized to make grants
to States, units of local government, and Indian tribes to
support public safety officers in their efforts to protect
homeland security and prevent and respond to acts of
terrorism.
(2) Use of funds.--Grants awarded under this section shall
be--
(A) distributed directly to the State, unit of local
government, or Indian tribe; and
(B) used to fund overtime expenses, equipment, training,
and facilities to support public safety officers in their
efforts to protect homeland security and prevent and respond
to acts of terrorism.
(3) Allocation and distribution of funds.--
(A) Set-aside for indian tribes.--
(i) In general.--The Secretary shall reserve 1 percent of
the amount appropriated for grants pursuant to this section
to be used for grants to Indian tribes.
(ii) Selection of indian tribes.--

(I) In general.--The Secretary shall award grants under
this paragraph to Indian tribes on the basis of a competition
conducted pursuant to specific criteria.
(II) Rulemaking.--The criteria under subclause (I) shall be
contained in a regulation promulgated by the Secretary after
notice and public comment.

(B) Set-aside for rural states.--
(i) In general.--The Secretary shall reserve 5 percent of
the amount appropriated for grants pursuant to this section
to be used for grants to rural States.
(ii) Selection of rural states.--The Secretary shall award
grants under this subparagraph to rural States (as defined in
section 1501(b) of the Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796bb(b))).
(C) Minimum amount.--The Secretary shall allocate, from the
total amount appropriated for grants to States under this
subsection--
(i) not less than 0.75 percent for each State; and
(ii) not less than 0.25 percent for American Samoa, Guam,
the Northern Mariana Islands, and the United States Virgin
Islands, respectively.
(D) Allocation to metropolitan cities and urban counties.--
The balance of the total amount appropriated for grants to
States under this subsection after allocations have been made
to Indian tribes, rural States, and the minimum amount to
each State pursuant to subparagraphs (A) through

[[Page S167]]

(C), shall be allocated by the Secretary to metropolitan
cities and urban counties pursuant to subparagraphs (E) and
(F).
(E) Computation of amount allocated to metropolitan
cities.--
(i) Computation ratios.--The Secretary shall determine the
amount to be allocated to each metropolitan city, which shall
bear the same ratio to the allocation for all metropolitan
cities as the weighted average of--

(I) the population of the metropolitan city divided by the
population of all metropolitan cities;
(II) the potential chemical security risk of the
metropolitan city divided by the potential chemical security
risk of all metropolitan cities;
(III) the proximity of the metropolitan city to the nearest
operating nuclear power plant compared to the proximity of
all metropolitan cities to the nearest operating nuclear
power plant to each such city;
(IV) the proximity of the metropolitan cities to the
nearest United States land or water port compared with the
proximity of all metropolitan cities to the nearest United
States land or water port to each such city;
(V) the proximity of the metropolitan city to the nearest
international border compared with the proximity of all
metropolitan cities to the nearest international border to
each such city; and
(VI) the proximity of the metropolitan city to the nearest
Disaster Medical Assistance Team (referred to in this
subsection as ``DMAT'') compared with the proximity of all
metropolitan cities to the nearest DMAT to each such city.

(ii) Clarification of computation ratios.--

(I) Relative weight of factor.--In determining the average
of the ratios under clause (i), the ratio involving
population shall constitute 50 percent of the formula in
calculating the allocation and the remaining factors shall be
equally weighted.
(II) Potential chemical security risk.--If a metropolitan
city is within the vulnerable zone of a worst-case chemical
release (as specified in the most recent risk management
plans filed with the Environmental Protection Agency, or
another instrument developed by the Environmental Protection
Agency or the Homeland Security Department that captures the
same information for the same facilities), the ratio under
clause (i)(II) shall be 1 divided by the total number of
metropolitan cities that are within such a zone.
(III) Proximity as it pertains to nuclear security.--If a
metropolitan city is located within 50 miles of an operating
nuclear power plant (as identified by the Nuclear Regulatory
Commission), the ratio under clause (i)(III) shall be 1
divided by the total number of metropolitan cities, not to
exceed 100, which are located within 50 miles of an operating
nuclear power plant.
(IV) Proximity as it pertains to port security.--If a
metropolitan city is located within 50 miles of 1 of the 100
largest United States ports (as stated by the Department of
Transportation, Bureau of Transportation Statistics, United
States Port Report by All Land Modes), or within 50 miles of
1 of the 30 largest United States water ports by metric tons
and value (as stated by the Department of Transportation,
Maritime Administration, United States Foreign Waterborne
Transportation Statistics), the ratio under clause (i)(IV)
shall be 1 divided by the total number of metropolitan cities
that are located within 50 miles of a United States land or
water port.
(V) Proximity to international border.--If a metropolitan
city is located within 50 miles of an international border,
the ratio under clause (i)(V) shall be 1 divided by the total
number of metropolitan cities that are located within 50
miles of an international border.
(VI) Proximity to disaster medical assistance team.--If a
metropolitan city is located within 50 miles of a DMAT, as
organized by the National Disaster Medical System, the ratio
under clause (i)(VI) shall be 1 divided by the total number
of metropolitan cities that are located within 50 miles of a
DMAT.

(F) Computation of amount allocated to urban counties.--
(i) Computation ratios.--The Secretary shall determine the
amount to be allocated to each urban county, which shall bear
the same ratio to the allocation for all urban counties as
the weighted average of--

(I) the population of the urban county divided by the
population of all urban counties;
(II) the potential chemical security risk of the urban
county divided by the potential chemical security risk of all
urban counties;
(III) the proximity of the urban county to the nearest
operating nuclear power plant compared to the proximity of
all urban counties to the nearest operating nuclear power
plant to each such county;
(IV) the proximity of the urban counties to the nearest
United States land or water port compared with the proximity
of all urban counties to the nearest United States land or
water port to each such county;
(V) the proximity of the urban county to the nearest
international border compared with the proximity of all urban
counties to the nearest international border to each such
county; and
(VI) the proximity of the urban county to the nearest
Disaster Medical Assistance Team compared with the proximity
of all urban counties to the nearest DMAT to each such
county.

(ii) Clarification of computation ratios.--

(I) Relative weight of factor.--In determining the average
of the ratios under clause (i), the ratio involving
population shall constitute 50 percent of the formula in
calculating the allocation and the remaining factors shall be
equally weighted.
(II) Potential chemical security risk.--If an urban county
is within the vulnerable zone of a worst-case chemical
release (as specified in the most recent risk management
plans filed with the Environmental Protection Agency, or
another instrument developed by the Environmental Protection
Agency or the Homeland Security Department that captures the
same information for the same facilities), the ratio under
clause (i)(II) shall be 1 divided by the total number of
urban counties that are within such a zone.
(III) Proximity as it pertains to nuclear security.--If an
urban county is located within 50 miles of an operating
nuclear power plant (as identified by the Nuclear Regulatory
Commission), the ratio under clause (i)(III) shall be 1
divided by the total number of urban counties, not to exceed
100, which are located within 50 miles of an operating
nuclear power plant.
(IV) Proximity as it pertains to port security.--If an
urban county is located within 50 miles of 1 of the 100
largest United States ports (as stated by the Department of
Transportation, Bureau of Transportation Statistics, United
States Port Report by All Land Modes), or within 50 miles of
1 of the 30 largest United States water ports by metric tons
and value (as stated by the Department of Transportation,
Maritime Administration, United States Foreign Waterborne
Transportation Statistics), the ratio under clause (i)(IV)
shall be 1 divided by the total number of urban counties that
are located within 50 miles of a United States land or water
port.
(V) Proximity to international border.--If an urban county
is located within 50 miles of an international border, the
ratio under clause (i)(V) shall be 1 divided by the total
number of urban counties that are located within 50 miles of
an international border.
(VI) Proximity to disaster medical assistance team.--If an
urban county is located within 50 miles of a DMAT, as
organized by the National Disaster Medical System, the ratio
under clause (i)(VI) shall be 1 divided by the total number
of urban counties that are located within 50 miles of a DMAT.

(G) Exclusions.--
(i) In general.--In computing amounts or exclusions under
subparagraph (F) with respect to any urban county, units of
general local government located in the county shall be
excluded if the populations of such units are not counted to
determine the eligibility of the urban county to receive a
grant under this paragraph.
(ii) Independent cities.--

(I) In general.--In computing amounts under clause (i),
there shall be included any independent city (as defined by
the Bureau of the Census) which--

(aa) is not part of any county;
(bb) is not eligible for a grant;
(cc) is contiguous to the urban county;
(dd) has entered into cooperation agreements with the urban
county which provide that the urban county is to undertake or
to assist in the undertaking of essential community
development and housing assistance activities with respect to
such independent city; and
(ee) is not included as a part of any other unit of general
local government for purposes of this section.

(II) Limitation.--Any independent city that is included in
the computation under subclause (I) shall not be eligible to
receive assistance under this paragraph for the fiscal year
for which such computation is used to allocate such
assistance.

(H) Inclusion.--
(i) Local government straddling county line.--In computing
amounts or exclusions under subparagraph (F) with respect to
any urban county, all of the area of any unit of local
government shall be included, which is part of, but is not
located entirely within the boundaries of, such urban county
if--

(I) the part of such unit of local government that is
within the boundaries of such urban county would otherwise be
included in computing the amount for such urban county under
this subsection; and
(II) the part of such unit of local government that is not
within the boundaries of such urban county is not included as
a part of any other unit of local government for the purpose
of this subsection.

(ii) Use of grant funds outside urban county.--Any amount
received under this section by an urban county described
under clause (i) may be used with respect to the part of such
unit of local government that is outside the boundaries of
such urban county.
(I) Population.--
(i) Effect of consolidation.--Where data are available, the
amount to be allocated to a metropolitan city that has been
formed by the consolidation of 1 or more metropolitan cities
within an urban county shall be equal to the sum of the
amounts that would have been allocated to the urban county or
cities and the balance of the consolidated government if such
consolidation had not occurred.
(ii) Limitation.--Clause (i) shall apply only to a
consolidation that--

[[Page S168]]

(I) included all metropolitan cities that received grants
under this section for the fiscal year preceding such
consolidation and that were located within the urban county;
(II) included the entire urban county that received a grant
under this section for the fiscal year preceding such
consolidation; and
(III) took place on or after January 1, 2005.

(iii) Growth rate.--The population growth rate of all
metropolitan cities defined in this section shall be based on
the population of metropolitan cities other than consolidated
governments the grant for which is determined under this
paragraph and cities that were metropolitan cities before
their incorporation into consolidated governments.
(4) Maximum amount per grantee.--
(A) In general.--A qualifying State, unit of local
government, or Indian tribe may not receive more than 5
percent of the total amount appropriated for grants under
this section.
(B) Aggregate amount per state.--A State, together with the
grantees within the State, may not receive more than 20
percent of the total amount appropriated for grants under
this section.
(5) Matching funds.--
(A) In general.--The portion of the costs of a program
provided by a grant under paragraph (1) may not exceed 90
percent.
(B) Waiver.--If the Secretary determines that a grantee is
experiencing fiscal hardship, the Secretary may waive, in
whole or in part, the matching requirement under subparagraph
(A).
(C) Exception.--Any funds appropriated by Congress for the
activities of any agency of an Indian tribal government or
the Bureau of Indian Affairs performing law enforcement
functions on any Indian lands may be used to provide the non-
Federal share of a matching requirement under subparagraph
(A).
(c) Applications.--
(1) In general.--To request a grant under this section, the
chief executive of a State, unit of local government, or
Indian tribe shall submit an application to the Secretary in
such form and containing such information as the Secretary
may reasonably require.
(2) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall promulgate
regulations to implement this subsection (including the
information that must be included and the requirements that
the States, units of local government, and Indian tribes must
meet) in submitting the applications required under this
subsection.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000,000 for fiscal year 2006 to
carry out this section.
TITLE IV--PROTECTING TAXPAYERS

SEC. 401. REPORTS ON METRICS FOR MEASURING SUCCESS IN GLOBAL
WAR ON TERRORISM.

(a) Requirement for Reports.--The Comptroller General of
the United States shall submit to Congress reports on the
metrics for use in tracking and measuring acts of global
terrorism, international counterterrorism efforts, and the
success of United States counterterrorism policies and
practices including specific, replicable definitions,
criteria, and standards of measurement to be used for the
following:
(A) Counting and categorizing acts of international
terrorism.
(B) Monitoring counterterrorism efforts of foreign
governments.
(C) Monitoring financial support provided to terrorist
groups.
(D) Assessing the success of United States counterterrorism
policies and practices.
(b) Schedule of Reports.--The Comptroller General shall
submit to Congress an initial report under subsection (a) not
later than 1 year after the date of enactment of this Act and
a second report not later than 1 year after the date on which
the initial report is submitted.

SEC. 402. PROHIBITION ON WAR PROFITEERING.

(a) Findings.--Congress makes the following findings:
(1) War profiteering, the overcharging of taxpayers for any
good or service with the specific intent to excessively
profit from a conflict or reconstruction situation, not only
defrauds taxpayers in the United States, but also threatens
the safety of United States troops in harms way by hindering
reconstruction progress, damaging the credibility of the
United States, and wasting resources that could be used for
troop protection.
(2) Laws prohibiting fraud protect against waste of tax
dollars within the United States, but no current fraud
statute expressly prohibits waste of tax dollars resulting
from war profiteering during conflicts in foreign countries.
(3) War profiteers have hindered United States efforts to
secure and reconstruct Iraq. In its third quarterly report,
the Coalition Provisional Authority Inspector General
reported that, as of October 12, 2004, it had received a
total of 113 potential criminal cases.
(4) In nine separate reports, the Defense Contract Audit
Agency, the Coalition Provisional Authority Inspector
General, and the Government Accountability Office have found
widespread, systematic abuses by the Halliburton Company and
its subsidiaries, including instances of overcharging worth
tens of millions of dollars, fraudulent accounting practices,
and kickbacks. Contracts awarded to Custer Battles, LLC, were
suspended by the Department of Defense after it uncovered
fraudulent billing practices including the establishment of
phantom off-shore corporations. Government investigators have
found contract irregularities, including lack of transparency
and poor accounting, in contracts awarded to other firms.
(b) Prohibition of Profiteering.--
(1) Prohibition.--
(A) In general.--Chapter 47 of title 18, United States
Code, is amended by adding at the end the following new
section:

``Sec. 1038. War profiteering and fraud relating to military
action, relief, and reconstruction efforts

``(a) Prohibition.--
``(1) In general.--Whoever, in any matter involving a
contract or the provision of goods or services, directly or
indirectly, in connection with the war, military action, or
relief or reconstruction activities, knowingly and
willfully--
``(A) executes or attempts to execute a scheme or artifice
to defraud the United States;
``(B) falsifies, conceals, or covers up by any trick,
scheme, or device a material fact;
``(C) makes any materially false, fictitious, or fraudulent
statements or representations, or makes or uses any
materially false writing or document knowing the same to
contain any materially false, fictitious, or fraudulent
statement or entry; or
``(D) materially overvalues any good or service with the
specific intent to excessively profit from the war, military
action, or relief or reconstruction activities;

shall be fined under paragraph (2), imprisoned not more than
20 years, or both.
``(2) Fine.--A person convicted of an offense under
paragraph (1) may be fined the greater of--
``(A) $1,000,000; or
``(B) if such person derives profits or other proceeds from
the offense, not more than twice the gross profits or other
proceeds.
``(b) Extraterritorial Jurisdiction.--There is
extraterritorial Federal jurisdiction over an offense under
this section.
``(c) Venue.--A prosecution for an offense under this
section may be brought--
``(1) as authorized by chapter 211 of this title;
``(2) in any district where any act in furtherance of the
offense took place; or
``(3) in any district where any party to the contract or
provider of goods or services is located.''.
(2) Table of sections.--The table of sections for chapter
47 of title 18, United States Code, is amended by adding at
the end the following:

``1038. War profiteering and fraud relating to military action, relief,
and reconstruction efforts.''.

(c) Civil Forfeiture.--Section 981(a)(1)(C) of title 18,
United States Code, is amended by inserting ``1038,'' after
``1032,''.
(d) Criminal Forfeiture.--Section 982(a)(2)(B) of title 18,
United States Code, is amended by striking ``or 1030'' and
inserting ``1030, or 1038''.
(e) Money Laundering.--Section 1956(c)(7)(D) of title 18,
United States Code, is amended by inserting ``section 1038
(relating to war profiteering and fraud relating to military
action, relief, and reconstruction efforts),'' after
``liquidating agent of financial institution),''.
(f) Relationship to Existing Law.--This section shall not
limit or repeal any additional authorities provided by law.
(g) Effective Date of Amendments.--The amendments made by
this section shall be effective during the 7-year period
beginning on the date of enactment of this Act.
______

By Mr. AKAKA (for himself, Mr. Reid, Ms. Mikulski, Ms. Stabenow,
Mr. Inouye, Mr. Dorgan, Mr. Lautenberg, Mr. Leahy, Mr. Salazar,
Mr. Rockefeller, Mrs. Murray, Mr. Bingaman, Mrs. Feinstein, Mr.
Durbin, Mr. Kennedy, Mr. Corzine, Mr. Pryor, Mr. Schumer, Mr.
Sarbanes, and Mr. Dayton):
S. 13. A bill to amend titles 10 and 38, United States Code, to
expand and enhance health care, mental health, transition, and
disability benefits for veterans, and for other purposes; to the
Committee on Veterans' Affairs.
Mr. AKAKA. Mr. President, I rise today to introduce a bill that would
make sweeping changes to the way the Department of Veterans Affairs
(VA) delivers health care and benefits to our nation's veterans. S. 13
would, among other things, guarantee full funding for VA health care,
provide for full concurrent receipt, enhance mental health care
services, and ease the transition from military service to civilian
life.
This bill would mean that the 115,000 veterans who choose to make
Hawaii their home would be assured the services they have earned. The
nearly 18,000 veterans who avail themselves of VA health care in
Honolulu, Hawaii,

[[Page S169]]

Kauai, and Maui would not have to worry if resources for doctors and
nurses will materialize next year.
And because so many of our reservists and Guardsmen are being
deployed for the current wars in Iraq and Afghanistan, this bill will
help ensure they get the care they need upon their return.
Every year the President sends forward his budget proposal to
Congress, and every year we go through the same battles to get VA
health care the money it needs to adequately serve its veteran
patients. The time has come to approach this process more rationally.
This legislation would ensure full funding for VA health care by simply
changing the way funds are allocated. To be perfectly clear, this bill
merely shifts money already being allocated over to a more reliable
mechanism.
The American Legion, the Disabled American Veterans, and the Veterans
of Foreign Wars support this approach to fully fund the veterans health
care system.
These three organizations--representing more than 7 million military
veterans--rightly believe that veterans have earned the right to VA
medical care through their ``extraordinary sacrifices and service to
this Nation.''
We have seen huge numbers of veterans seeking VA care for the first
time. I, for one, believe this is a good thing. Others rationalize that
as we are at war, we must cut back on VA care. I simply do not
understand this logic. We are at war, and therefore we must do
everything we can to show our military that VA health care will be
there for all veterans who served. To accomplish this goal, we must
change the way VA health care is funded.
Although we have continued to make progress on eliminating the long-
standing injustice that has affected our disabled retired veterans'
retirement pay, we still have work to do.
S. 13 will correct this unfairness by allowing all disabled military
retirees to collect both their full military retired and VA disability
pay concurrently.
Most military retirees who have a service-connected disability are
not permitted to collect both their retirement and disability benefits
concurrently. Military retired pay is the promised reward for 20 or
more years of uniformed service and is based on length of service. VA
disability compensation is unrelated to length of service and is
intended to compensate a veteran for a service-connected loss of
function.
In order to continue to recruit and retain quality soldiers, sailors,
airmen and marines, we must pay attention not only to the present, but
also to the future. George Washington said:

The willingness with which our young people are likely to
serve in any war, no matter how justified, shall be directly
proportional to how they perceive the Veterans of earlier
wars were treated and appreciated by their nation.

Our disabled military retirees deserve to receive the retirement pay
that they earned and be compensated for their service-connected
disabilities. Our young people will wear the uniforms of our Armed
Forces only if they believe that their service is appreciated and
compensated accordingly.
Along those lines, S. 13 also seeks to ensure that veterans and
returning service members can receive the mental health care they might
need as a result of their service. The legislation requires that VA
employ at least one psychiatrist and treatment team at each medical
center that does not currently have one. This legislation would also
mandate that VA carry out a community outreach program to let Operation
Iraqi Freedom and Operation Enduring Freedom veterans know about the
services available to them at VA.
Why is good VA mental health care so important?
Because so often battle wounds do not manifest in physical illness,
but in quiet and equally debilitating mental illness. These wounds are
revealed as post-traumatic stress disorder with effects that linger and
symptoms that can be brought on years after combat.
While hypertension and heart disease afflict vast numbers of
veterans, mental illness is not far behind. It might surprise some of
my colleagues to know that cancer and depression affect roughly the
same number of veterans. But is VA reaching and treating all veterans
who need care? This remains very much an open question.
This legislation also seeks to improve access to needed prescription
drugs. Many veterans have expressed their desire to bring prescriptions
from their Medicare doctors to VA pharmacies to get them filled.
Current VA policy requires that nearly all veterans see a VA doctor
before such prescriptions are issued. This does not make sense.
The Department's inspector general testified that VA could see
savings of $1 billion a year if veterans were allowed to bring their
outside prescriptions, because it would obviate the need for VA to re
diagnose patients and then re-issue prescriptions that have already
been written. S. 13 would allow these veterans to get their
prescriptions filled by VA at prices that are far better than in the
private sector.
This legislation also seeks to help veterans with their education. S.
13 would exclude MGIB benefits from computation as income when
calculating campus based aid, such as Perkins loans. This draws the
distinction between a benefit that has been earned, and paid for, by
the veterans, and other types of income. This allows the individual
applying for financial aid to subtract $1,200 from the expected family
contribution for 1 year. This $1,200 represents the money that the
individual paid to participate in the MGIB program.
S. 13 also offers an opportunity for enrollment in the MGIB education
program for servicemembers who participated in or were eligible to
participate in the post-Vietnam era educational assistance program,
known as VEAP. This bill would create a 1-year window and requires the
individual to pay $2,700, which was the VEAP contribution.
Last year, Congress extended the period of eligibility for education
benefits for survivors of servicemembers who were killed during active
duty. We would like to further extend this delimiting date for veterans
and other dependents. The 10-year period of eligibility would not begin
to toll until they began to use the benefit, rather than when they
became eligible for the benefit.
Overall, this is a bill to spur dialogue started on the issues that
are truly important to our Nation's veterans.
We all need to work harder towards the goal of seeing that the
promises made to the men and women who are serving today are met; that
their sacrifices were not in vain.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 13

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fulfilling Our Duty to
America's Veterans Act of 2005''.

TITLE I--HEALTH CARE MATTERS

SEC. 100. FINDINGS.

Congress makes the following findings:
(1) The three largest veterans advocacy groups, the
Disabled American Veterans, the American Legion, and the
Veterans of Foreign Wars, have called upon Congress to change
veterans funding to a mandatory process, stating, ``We
believe it is time to guarantee health care funding for all
veterans. We believe health care rationing must end. We
believe it is time the promise is kept.''.
(2) The May 2003 report of The President's Task Force To
Improve Health Care Delivery For Our Nation's Veterans found
that ``there is a significant mismatch in VA between demand
and available funding--an imbalance that . . . if unresolved,
will delay veterans' access to care and could threaten the
quality of VA health care.''.
(3) Under the current funding process, the VA has
experienced billion-dollar shortfalls every year for the past
several years, resulting in waiting lists several months long
for appointments with physicians, a substantial disability
claims backlog, and policies designed to prevent veterans
from obtaining the health care they were promised.

Subtitle A--Funding Matters

SEC. 101. FUNDING TO ADDRESS CHANGES IN POPULATION AND
INFLATION.

(a) In General.--Chapter 17 of title 38, United States
Code, is amended by inserting after section 1706 the
following new section:

``Sec. 1706A. Management of health care: funding to address
changes in population and inflation

``(a) By the enactment of this section, Congress and the
President intend to ensure access to health care for all
veterans. Upon the

[[Page S170]]

enactment of this section, funding for the programs,
functions, and activities of the Veterans Health
Administration specified in subsection (d) to accomplish this
objective shall be provided through a combination of
discretionary and mandatory funds. The discretionary amount
should be equal to the fiscal year 2005 discretionary funding
for such programs, functions, and activities, and should
remain unchanged each fiscal year thereafter. The annual
level of mandatory amount shall be adjusted according to the
formula specified in subsection (c). While this section does
not purport to control the outcome of the annual
appropriations process, it anticipates cooperation from
Congress and the President in sustaining discretionary
funding for such programs, functions, and activities in
future fiscal years at the level of discretionary funding for
such programs, functions, and activities for fiscal year
2005. The success of that arrangement, as well as of the
funding formula, are to be reviewed after two years.
``(b) On the first day of each fiscal year, the Secretary
of the Treasury shall make available to the Secretary of
Veterans Affairs the amount determined under subsection (c)
with respect to that fiscal year. Each such amount is
available, without fiscal year limitation, for the programs,
functions, and activities of the Veterans Health
Administration specified in subsection (d). There is hereby
appropriated, out of any sums in the Treasury not otherwise
appropriated, amounts necessary to implement this section.
``(c)(1) The amount applicable to fiscal year 2006 under
this subsection is the amount equal to--
``(A) 130 percent of the amount obligated by the Department
during fiscal year 2004 for the purposes specified in
subsection (d); minus
``(B) the amount appropriated for those purposes for fiscal
year 2005.
``(2) The amount applicable to any fiscal year after fiscal
year 2006 under this subsection is the amount equal to the
product of the following, minus the amount appropriated for
the purposes specified for subsection (d) for fiscal year
2005:
``(A) The sum of--
``(i) the number of veterans enrolled in the Department
health care system under section 1705 of this title as of
July 1 preceding the beginning of such fiscal year; and
``(ii) the number of persons eligible for health care under
chapter 17 of this title who are not covered by clause (i)
and who were provided hospital care or medical services under
such chapter at any time during the fiscal year preceding
such fiscal year.
``(B) The per capita baseline amount, as increased from
time to time pursuant to paragraph (3)(B).
``(3)(A) For purposes of paragraph (2)(B), the term `per
capita baseline amount' means the amount equal to--
``(i) the amount obligated by the Department during fiscal
year 2005 for the purposes specified in subsection (d);
divided by
``(ii) the number of veterans enrolled in the Department
health care system under section 1705 of this title as of
September 30, 2004.
``(B) With respect to any fiscal year, the Secretary shall
provide a percentage increase (rounded to the nearest dollar)
in the per capita baseline amount equal to the percentage by
which--
``(i) the Consumer Price Index (all Urban Consumers, United
States City Average, Hospital and related services,
Seasonally Adjusted), published by the Bureau of Labor
Statistics of the Department of Labor for the 12-month period
ending on the June 30 preceding the beginning of the fiscal
year for which the increase is made; exceeds
``(ii) such Consumer Price Index for the 12-month period
preceding the 12-month period described in clause (i).
``(d)(1) Except as provided in paragraph (2), the purposes
for which amounts are made available pursuant to subsection
(b) shall be all programs, functions, and activities of the
Veterans Health Administration.
``(2) Amounts made available pursuant to subsection (b) are
not available for--
``(A) construction, acquisition, or alteration of medical
facilities as provided in subchapter I of chapter 81 of this
title (other than for such repairs as were provided for
before the date of the enactment of this section through the
Medical Care appropriation for the Department); or
``(B) grants under subchapter III of chapter 81 of this
title.
``(e) Nothing in this section shall be construed to prevent
or limit the authority of Congress to reauthorize provisions
relating to veterans health care.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1706A. Management of health care: funding to address changes in
population and inflation.''.

SEC. 102. COMPTROLLER GENERAL REPORT.

(a) Requirement for Report.--Not later than January 31,
2008, the Comptroller General of the United States shall
submit to Congress a report on the extent to which section
1706A of title 38, United States Code (as added by section
101 of this Act), has achieved the objective set forth in
subsection (a) of such section 1706A during fiscal years 2006
and 2007.
(b) Content.--The report under subsection (a) shall set
forth the following:
(1) The amount appropriated for fiscal year 2005 for the
programs, functions, and activities of the Veterans Health
Administration specified in subsection (d) of section 1706A
of title 38, United States Code (as so added).
(2) The amount appropriated by annual appropriations Acts
for each of fiscal years 2006 and 2007 for such programs,
functions, and activities.
(3) The amount provided by section 1706A of title 38,
United States Code (as so added), for each of fiscal years
2006 and 2007 for such programs, functions, and activities.
(4) An assessment whether the amount described in paragraph
(3) for each of fiscal years 2006 and 2007 was appropriate to
address the changes in costs to the Veterans Health
Administration for such programs, functions, and activities
that were attributable to changes in population and in
inflation over the course of such fiscal years.
(5) An assessment whether the amount provided by section
1706A of title 38, United States Code (as so added), in each
of fiscal years 2006 and 2007, when combined with amounts
appropriated by annual appropriations Acts for each of such
fiscal years for such programs, functions, and activities,
provided adequate funding of such programs, functions, and
activities in each such fiscal year.
(6) Such recommendations as the Comptroller General
considers appropriate regarding modifications of the formula
under subsection (c) of section 1706A of title 38, United
States Code (as so added), or any other modifications of law,
to better ensure adequate funding of such programs,
functions, and activities.

SEC. 103. CONGRESSIONAL CONSIDERATION OF COMPTROLLER GENERAL
RECOMMENDATIONS.

(a) Applicable Procedure.--The procedure provided under
this section shall apply to consideration of a joint
resolution described in subsection (b) in the Senate and the
House of Representatives.
(b) Joint Resolution Defined.--For purposes of this
section, the term ``joint resolution'' means only a joint
resolution that is introduced in the House of Representatives
by the Speaker of the House of Representatives (or the
Speaker's designee) or the Minority Leader (or the Minority
Leader's designee), or in the Senate by the Majority Leader
(or the Majority Leader's designee) or the Minority Leader
(or the Minority Leader's designee), within the 10-day period
beginning on the date on which Congress receives the report
of the Comptroller General of the United States under section
102, and--
(1) that does not have a preamble;
(2) the matter after the resolving clause of which consists
of amendments of title 38, United States Code, or other
amendments or modifications of laws administered by the
Secretary of Veterans Affairs to implement the
recommendations of the Comptroller General in the report
under section 102(b)(6); and
(3) the title of which is as follows: ``Joint resolution to
ensure adequate funding of health care for veterans.''.
(c) Referral.--A joint resolution described in subsection
(b) that is introduced in the House of Representatives shall
be referred to the Committee on Veterans' Affairs of the
House of Representatives. A joint resolution described in
subsection (b) introduced in the Senate shall be referred to
the Committee on Veterans' Affairs of the Senate.
(d) Discharge.--If the committee to which a joint
resolution described in subsection (b) is referred has not
reported such resolution (or an identical resolution) by the
end of the 20-day period beginning on the date on which the
Comptroller General submits to Congress the report under
section 102, such committee shall be, at the end of such
period, discharged from further consideration of such
resolution, and such resolution shall be placed on the
appropriate calendar of the House involved.
(e) Consideration.--
(1) Motion to proceed to consideration.--On or after the
third day after the date on which the committee to which such
a joint resolution is referred has reported, or has been
discharged (under subsection (d)) from further consideration
of, such a resolution, it is in order (even though a previous
motion to the same effect has been disagreed to) for any
Member of the respective House to move to proceed to the
consideration of the resolution (but only on the day after
the calendar day on which such Member announces to the House
concerned the Member's intention to do so). The motion is
highly privileged in the House of Representatives and is
privileged in the Senate and is not debatable. The motion is
not subject to amendment, or to a motion to postpone, or to a
motion to proceed to the consideration of other business. A
motion to reconsider the vote by which the motion is agreed
to or disagreed to shall not be in order. If a motion to
proceed to the consideration of the resolution is agreed to,
the respective House shall immediately proceed to
consideration of the joint resolution without intervening
motion, order, or other business, and the resolution shall
remain the unfinished business of the respective House until
disposed of.
(2) Debate.--Debate on the resolution, and on all debatable
motions and appeals in connection therewith, shall be limited
to not more than 2 hours, which shall be divided equally
between those favoring and those opposing the resolution. An
amendment to the resolution is not in order. A motion further
to limit debate is in order and not debatable. A motion to
postpone, or a motion to proceed to the consideration of
other business,

[[Page S171]]

or a motion to recommit the resolution is not in order. A
motion to reconsider the vote by which the resolution is
agreed to or disagreed to is not in order.
(3) Vote on final passage.--Immediately following the
conclusion of the debate on a joint resolution described in
subsection (b) and a single quorum call at the conclusion of
the debate if requested in accordance with the rules of the
appropriate House, the vote on final passage of the
resolution shall occur.
(4) Appeals from decisions of the chair.--Appeals from the
decisions of the Chair relating to the application of the
rules of the Senate or the House of Representatives, as the
case may be, to the procedure relating to a joint resolution
described in subsection (b) shall be decided without debate.
(f) Consideration by Other House.--
(1) Procedure.--If, before the passage by one House of a
joint resolution of that House described in subsection (b),
that House receives from the other House a joint resolution
described in subsection (b), then the following procedures
shall apply:
(A) The resolution of the other House shall not be referred
to a committee and may not be considered in the House
receiving it except in the case of final passage as provided
in subparagraph (B)(ii).
(B) With respect to a joint resolution described in
subsection (b) of the House receiving the resolution--
(i) the procedure in that House shall be the same as if no
resolution had been received from the other House; but
(ii) the vote on final passage shall be on the resolution
of the other House.
(2) Disposition.--Upon disposition of the resolution
received from the other House, it shall no longer be in order
to consider the resolution that originated in the receiving
House.
(g) Rules of Senate and House.--This section is enacted by
Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed
in that House in the case of a joint resolution described in
subsection (b), and it supersedes other rules only to the
extent that it is inconsistent with such rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.

Subtitle B--Mental Health Matters

SEC. 111. FINDINGS.

Congress makes the following findings:
(1) A study published in the New England Journal of
Medicine reported that about one in six soldiers of the Iraq
war displays symptoms of post-traumatic stress disorder.
(2) Clinical experts are anticipating an increase in the
number of post-traumatic stress disorder cases in light of
the increasing duration of military deployment.
(3) 86 of 163 Department of Veterans Affairs Medical
Centers have post-traumatic stress disorder treatment
programs.
(4) Section 1706 of title 38, United States Code, requires
that the Secretary of Veterans Affairs ensure, in accordance
with that section, that the Department of Veterans Affairs
maintains its capacity to provide for the specialized
treatment and rehabilitative needs of disabled veterans
within distinct programs or facilities of the Department.

SEC. 112. POST-TRAUMATIC STRESS DISORDER TREATMENT FOR
VETERANS OF SERVICE IN AFGHANISTAN AND IRAQ AND
THE WAR ON TERROR.

(a) Enhanced Capacity for Department of Veterans Affairs.--
Using funds available to the Secretary of Veterans Affairs
for fiscal year 2006 for ``Medical Care'', the Secretary
shall employ at least one psychiatrist and a complementary
clinical team at each medical center of the Department of
Veterans Affairs in order to conduct a specialized program
for the diagnosis and treatment of post-traumatic stress
disorder and to employ additional mental health services
specialists at the medical center.
(b) Outreach at the Community Level.--
(1) Program.--The Secretary of Veterans Affairs shall,
within the authorities of the Secretary under title 38,
United States Code, carry out a program to provide outreach
at the community level to veterans who participated in
Operation Iraqi Freedom or Operation Enduring Freedom who are
or may be suffering from post-traumatic stress disorder.
(2) Program sites.--The program shall be carried out on a
nation-wide basis through facilities of the Department of
Veterans Affairs.
(3) Program content.--The program shall provide for
individualized case management to be conducted on a one-on-
one basis, counseling, education, and group therapy to help
participants cope with post-traumatic stress disorder. The
program--
(A) shall emphasize early identification of veterans who
may be experiencing symptoms of post-traumatic stress
disorder; and
(B) shall include group-oriented, peer-to-peer settings for
treatment.

SEC. 113. ARMED FORCES REVIEW OF MENTAL HEALTH PROGRAMS.

(a) Review of Mental Health Programs.--The Secretary of
each military department shall conduct a comprehensive review
of the mental health care programs of the Armed Forces under
the jurisdiction of that Secretary in order to determine ways
to improve the efficacy of such care, including a review of
joint Department of Defense and Department of Veterans
Affairs clinical guidelines to ensure a seamless delivery of
care during transitions from active duty or reserve status to
civilian life.
(b) Report to Congress.--The Secretary of Defense shall
submit to Congress a report setting forth the results of such
review not later than 90 days after the date of the enactment
of this Act.

Subtitle C--Other Matters

SEC. 121. AUTHORITY OF DEPARTMENT OF VETERANS AFFAIRS
PHARMACIES TO DISPENSE MEDICATIONS TO VETERANS
ON PRESCRIPTIONS WRITTEN BY PRIVATE
PRACTITIONERS.

(a) Findings.--Congress makes the following findings:
(1) Under longstanding regulations of the Department of
Veterans Affairs, most veterans who receive prescriptions for
medication from private doctors are forced to complete
physicals conducted by Department of Veterans Affairs
physicians before the veterans can have their prescriptions
filled by a pharmacy. This bureaucratic red tape can prevent
veterans from quickly receiving the medical treatment they
need.
(2) In December 2000, the Inspector General of the
Department of Veterans Affairs reported that eliminating this
unnecessary red tape would save the underfunded Department of
Veterans Affairs over $1,000,000,000 per year. The report
concluded that ``a decision to continue the current policies
results in inefficiency and waste that we estimate annually
costs the Department over $1,000,000,000 in resources that
could be better used in the delivery of healthcare services
to veterans.''.
(3) In 2004, the Department of Justice, in a reversal of an
earlier legal opinion, stating that the Secretary of Veterans
Affairs has the authority to eliminate this rule without
further legislative action. The Secretary has failed to take
such a step, thus necessitating action by Congress.
(b) Authority.--Section 1712 of title 38, United States
Code, is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new
subsection (e):
``(e)(1) The Secretary shall furnish to any medicare-
eligible veteran on an out-patient basis such drugs and
medicines as may be ordered on prescription of a duly
licensed physician as specific therapy in the treatment of
any illness or injury suffered by such veteran.
``(2) In this subsection, the term `medicare-eligible
veteran' means any veteran who--
``(A) is entitled to or enrolled in hospital insurance
benefits under part A of title XVIII of the Social Security
Act (42 U.S.C. 1395 et seq.); or
``(B) is enrolled in the supplementary medical insurance
program under part B of such title (42 U.S.C. 1395j et seq.).
``(3) The furnishing of drugs and medicines under this
subsection shall be subject to the provisions of section
1722A(b) of this title.''.
(c) Copayment Requirements.--
(1) In general.--Section 1722A of such title is amended--
(A) in subsection (a)(1), by inserting ``(other than a
veteran covered by subsection (b))'' after ``require a
veteran'';
(B) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively;
(C) by inserting after subsection (a) the following new
subsection (b):
``(b)(1) In the case of a veteran who is furnished
medications on an out-patient basis under section 1712(e) of
this title, the Secretary shall require the veteran to pay,
at the election of the Secretary, one or more of the
following:
``(A) An annual enrollment fee in an amount determined
appropriate by the Secretary.
``(B) A copayment for each 30-day supply of such
medications in an amount determined appropriate by the
Secretary.
``(C) An amount equal to the cost to the Secretary of such
medications, as determined by the Secretary.
``(2)(A) In determining the amounts to be paid by a veteran
under paragraph (1), and the basis of payment under one or
more subparagraphs of that paragraph, the Secretary shall
ensure that the total amount paid by veterans for medications
under that paragraph in a year is not less than the costs of
the Department in furnishing medications to veterans under
section 1712(e) of this title during that year, including the
cost of purchasing and furnishing medications, and other
costs of administering that section.
``(B) The Secretary shall take appropriate actions to
ensure, to the maximum extent practicable, that amounts paid
by veterans under paragraph (1) in a year are equal to the
costs of the Department referred to in subparagraph (A) in
that year.
``(3) In determining amounts under paragraph (1), the
Secretary may take into account the following:
``(A) Whether or not the medications furnished are generic
medications or brand name medications.
``(B) Whether or not the medications are furnished by mail.
``(C) Whether or not the medications furnished are listed
on the National Prescription Drug Formulary of the
Department.
``(D) Any other matters the Secretary considers
appropriate.

[[Page S172]]

``(4) The Secretary may from time to time adjust any amount
determined by the Secretary under paragraph (1), as
previously adjusted under this paragraph, in order to meet
the purpose specified in paragraph (2).''; and
(D) in subsection (d), as so redesignated--
(i) by striking ``subsection (a)'' and inserting
``subsections (a) and (b)''; and
(ii) by striking ``subsection (b)'' and inserting
``subsection (c)''.
(2) Deposit of collections in medical care collections
fund.--Paragraph (4) of section 1729A(b) of such title is
amended to read as follows:
``(4) Subsection (a) or (b) of section 1722A of this
title.''.
(d) Clerical Amendments.--(1) The heading for section 1712
of such title is amended by striking ``for certain disabled
veterans''.
(2) The table of sections at the beginning of chapter 17 of
such title is amended in the item relating to section 1712 by
striking ``for certain disabled veterans''.

TITLE II--CONCURRENT RECEIPT OF RETIRED PAY AND SERVICE-CONNECTED
DISABILITY COMPENSATION

SEC. 201. SHORT TITLE.

This title may be cited as the ``Retired Pay Restoration
Act of 2005''.

SEC. 202. FINDINGS.

Congress makes the following findings:
(1) The United States Government has an essential
obligation to provide support and care for men and women who
have completed honorable military service in defense of the
Nation. In no instance is this obligation more critical than
for veterans who were injured or disabled during their
military service.
(2) Disability compensation and military retired pay are
benefits earned for two distinct reasons. Disability
compensation is provided to veterans for disabilities
resulting from their military service to the Nation as an
expression of the Nation's gratitude and as recompense for
their sacrifice. Military retired pay is earned by members of
the Armed Forces for the devotion of 20 or more years of
their lives to the military service of the Nation.
(3) Until 2002, Federal law prohibited disabled veterans
from concurrently receiving both disability compensation and
retirement pay. The prohibition against concurrent receipt
was a gross violation of the Government's commitment to
veterans.
(4) Despite recent legislative advances, over 1,500,000
disabled veterans continue to be prohibited from receiving
both military retirement and disability payments
concurrently.

SEC. 203. FULL PAYMENT OF BOTH RETIRED PAY AND COMPENSATION
TO DISABLED MILITARY RETIREES.

(a) Restoration of Full Retired Pay Benefits.--Section 1414
of title 10, United States Code, is amended to read as
follows:

``Sec. 1414. Members eligible for retired pay who are also
eligible for veterans' disability compensation: payment of
retired pay and veterans' disability compensation

``(a) Payment of Both Retired Pay and Compensation.--Except
as provided in subsection (b), a member or former member of
the uniformed services who is entitled to retired pay (other
than as specified in subsection (c)) and who is also entitled
to veterans' disability compensation is entitled to be paid
both without regard to sections 5304 and 5305 of title 38.
``(b) Special Rule for Chapter 61 Career Retirees.--The
retired pay of a member retired under chapter 61 of this
title with 20 years or more of service otherwise creditable
under section 1405 of this title at the time of the member's
retirement is subject to reduction under sections 5304 and
5305 of title 38, but only to the extent that the amount of
the member's retired pay under chapter 61 of this title
exceeds the amount of retired pay to which the member would
have been entitled under any other provision of law based
upon the member's service in the uniformed services if the
member had not been retired under chapter 61 of this title.
``(c) Exception.--Subsection (a) does not apply to a member
retired under chapter 61 of this title with less than 20
years of service otherwise creditable under section 1405 of
this title at the time of the member's retirement.
``(d) Definitions.--In this section:
``(1) The term `retired pay' includes retainer pay,
emergency officers' retirement pay, and naval pension.
``(2) The term `veterans' disability compensation' has the
meaning given the term `compensation' in section 101(13) of
title 38.''.
(b) Repeal of Combat-Related Special Compensation
Program.--Section 1413a of such title is repealed.
(c) Clerical Amendment.--The table of sections at the
beginning of chapter 71 of such title is amended by striking
the items relating to sections 1413a and 1414 and inserting
the following:

``1414. Members eligible for retired pay who are also eligible for
veterans' disability compensation: payment of retired pay
and veterans' disability compensation.''.

SEC. 204. EFFECTIVE DATE; PROHIBITION ON RETROACTIVE
BENEFITS.

(a) In General.--The amendments made by section 202 shall
take effect on--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted, if later than the
date specified in paragraph (1).
(b) Retroactive Benefits.--No benefits may be paid to any
person by reason of section 1414 of title 10, United States
Code, as amended by section 202(a), for any period before the
effective date applicable under subsection (a).

TITLE III--SEAMLESS TRANSITION FROM MILITARY SERVICE TO VETERANS STATUS

SEC. 301. FINDINGS.

Congress makes the following findings:
(1) In its final report, the President's Task Force To
Improve Health Care Delivery For Our Nation's Veterans found
that ``. . . increased collaboration between the Departments
[of Defense and Veterans Affairs] for the transfer of
personnel and health information is needed. Within VA,
broader sharing of the information received from the DOD and
individual veterans is required so that veterans are not met
at every turn with the question, `Who are you and what do you
want?' A `seamless transition' from military service to
veteran status is especially critical in the context of
health care, where readily available, accurate, and current
medical information must be accessible to health care
providers''.
(2) The Task Force put forward a series of seven
recommendations designed to create a seamless transition from
military service to veteran status. Nearly two years after
the submittal of its final report, few of the recommendations
have been adopted.
(3) Leading nonpartisan veterans' advocates, including the
American Legion, Veterans of Foreign Wars, Disabled American
Veterans, and the Military Officers Association of America,
support the adoption of the recommendations made by the Task
Force to create a seamless transition from military service
to veteran status.

SEC. 302. REPORT ON DEVELOPMENT OF INTEROPERABLE ELECTRONIC
MEDICAL RECORDS.

Not later than 60 days after the date of the enactment of
this Act, the Secretary of Defense and the Secretary of
Veterans Affairs shall jointly submit to Congress a report on
the status of the development of interoperable electronic
medical records for members of the Armed Forces and veterans
that are utilizable by both the Department of Defense and the
Department of Veterans Affairs.

SEC. 303. EXCHANGE OF MEDICAL RECORDS FOR SEAMLESS TRANSITION
IN THE PROVISION OF HEALTHCARE SERVICES.

The Secretary of Health and Human Services shall modify
section 164.512(k)(1) of title 45, Code of Federal
Regulations, to provide that the Department of Defense and
the Department of Veterans Affairs may exchange protected
health information of members of the Armed Forces and
veterans in a manner that, as determined jointly by the
Secretary of Health and Human Services, the Secretary of
Defense, and the Secretary of Veterans Affairs, facilitates a
seamless transition between the provision of health care
services by the Department of Defense to members of the Armed
Forces and the provision of health care services by the
Department of Veterans Affairs to veterans who require such
services after their separation or retirement from the Armed
Forces.

SEC. 304. ENHANCEMENT OF PRESEPARATION PHYSICAL EXAMINATION
REQUIREMENTS.

Section 1145 of title 10, United States Code, is amended--
(1) in subsection (a), by striking paragraph (4);
(2) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(3) by inserting after subsection (c) the following new
subsection (d):
``(d) Preseparation Physical.--(1) The Secretary concerned
shall require a member of the armed forces to be separated
from active duty to undergo a physical examination before
that separation.
``(2) The physical examination of a member under this
subsection shall be conducted before the member receives
preseparation counseling under section 1142 of this title.
``(3)(A) The physical examinations conducted under this
subsection shall be comprehensive and, to the maximum extent
practicable, uniform throughout the armed forces.
``(B) The purpose of a physical examination conducted for a
member under this subsection shall be--
``(i) to determine the immediate health care needs, if any,
of the member as of separation and the ongoing health care
needs, if any, of the member after separation; and
``(ii) to identify any illness, injury, or other medical
conditions that may make the member eligible for benefits as
a veteran under the laws administered by the Secretary of
Veterans Affairs.
``(C) The Secretary of Defense shall prescribe in
regulations the requirements for physical examinations
conducted under this subsection.
``(4) The results of the physical examination of a member
under this subsection shall be included on the Form DD214 of
the member (or any successor form).
``(5) The Secretary concerned shall transmit in electronic
form to the Secretary of Veterans Affairs the results of each
physical examination conducted by such Secretary under this
subsection.''.

SEC. 305. ENHANCEMENT OF PRESEPARATION COUNSELING
REQUIREMENTS.

Section 1142(b) of title 10, United States Code, is
amended--
(1) by redesignating paragraphs (3) through (10) as
paragraphs (4) through (11), respectively; and

[[Page S173]]

(2) by striking paragraph (2) and inserting the following
new paragraphs:
``(2) A description (to be developed with the assistance of
the Secretary of Veterans Affairs) of the health care and
other benefits to which the member may be entitled under the
laws administered by the Secretary of Veterans Affairs,
including compensation and vocational rehabilitation benefits
in the case of a member being medically separated or being
retired under chapter 61 of this title, which shall be taken
into account the preseperation physical examination of the
member conducted under section 1145(d) of this title.
``(3) In the case of a member who, as determined pursuant
to the preseperation physical examination conducted under
section 145(d) of this title, may be entitled to compensation
or pensions benefits under the laws administered by the
Secretary of Veterans Affairs, a referral (to be provided
with the assistance of the Secretary of Veterans Affairs) for
a compensation and pension examination by the Secretary of
Veterans Affairs.''.

SEC. 306. EPIDEMIOLOGICAL STUDIES.

(a) In General.--The Secretary of Defense and the Secretary
of Veterans Affairs may, during the five-year period
beginning on October 1, 2005, jointly carry out such
epidemioligical studies relating to veterans' health
conditions that develop as a result of occupational exposure
during military service as such Secretaries consider
appropriate.
(b) Funding.--
(1) Department of defense.--Of the amount authorized to be
appropriated for fiscal year 2006 for the Department of
Defense for the Defense Health Program, $2,500,000 shall be
available for the epidemiological studies authorized by
subsection (a).
(2) Department of veterans affairs.--Of the amount
appropriated for fiscal year 2006 for the Department of
Veterans Affairs for Medical Care, $2,500,000 shall be
available for the epidemiological studies authorized by
subsection (a).
(3) Availability.--Amounts available under this subsection
shall be available without fiscal year limitation.

SEC. 307. INFORMATION SHARING.

(a) In General.--The Secretary of Defense and the Secretary
of Veterans Affairs shall jointly develop protocols to
facilitate the sharing of information between the Department
of Defense and the Department of Veterans Affairs on the
matters referred to in subsection (c) with respect to each
member of the Armed Forces.
(b) Purpose.--The purpose of the protocols is to facilitate
determinations by the Department of Veterans Affairs of the
existence and extent of a connection any illness or injury
experienced by a former member of the Armed Forces after
separation from the Armed Forces and the exposure of the
member to toxic or hazardous substances in the course of the
member's duties or assignments as a member of the Armed
Forces.
(c) Covered Matters.--The matters referred to in this
subsection with respect to a member of the Armed Forces are
as follows:
(1) The duties and assignments of the member, including the
location of such duties and assignments.
(2) Any exposures of the member in the course of such
duties and assignments to toxic or hazardous substances.
(3) Any illness or injury of the member incurred or
aggravated in the course of such duties and assignments.
(d) Elements of Protocols.--The protocols on the sharing of
information developed under subsection (a) shall include the
following:
(1) Mechanisms to ensure that the Department of Veterans
Affairs receives information to facilitate the timely and
accurate assessment of the illnesses or injuries of a member
of the Armed Forces that may have been incurred or aggravated
by the members's exposure to toxic or hazardous substances
during service in the Armed Forces.
(2) Mechanisms that provide, to the maximum extent
practicable consistent with the national security interests
of the United States, for the declassification of information
necessary to achieve the purpose of the protocols.
(3) Procedures to ensure that information is shared under
the protocols as a matter of routine operations of the
Department of Defense and the Department of Veterans Affairs.
(e) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense and the
Secretary of Veterans Affairs shall jointly submit to
Congress a report on the protocols developed under subsection
(a). The report shall include such recommendations for
legislative or administrative action as the Secretaries
consider appropriate.
(f) Funding.--
(1) Department of defense.--Amounts authorized to be
appropriated for fiscal year 2006 for the Department of
Defense for operation and maintenance, defense-wide, shall be
available for the development of protocols under subsection
(a).
(2) Department of veterans affairs.--Amounts authorized to
be appropriated for fiscal year 2006 for the Department of
Veterans Affairs shall be available for the development of
protocols under subsection (a).

SEC. 308. COORDINATION OF LONG-TERM RESEARCH ON HEALTH CARE.

(a) Department of Veterans Affairs Representative on Armed
Force Epidemiological Board.--
(1) In general.--The Secretary of Defense shall appoint to
the Armed Forces Epidemiological Board, as an ex officio
member, an officer of the Department of Veterans Affairs
designated by the Secretary of Veterans Affairs for the
purpose of this subsection.
(2) Purpose.--The purpose of the appointment under this
subsection is to ensure that the Armed Forces Epidemiological
Board considers and takes into account the views and
recommendations of the Department of Veterans Affairs in
providing advice to the Assistant Secretary of Defense for
Health Affairs and the surgeons general of the Armed Forces.
(b) Department of Veterans Affairs Representative on
Department of Defense Safety and Occupational Health
Committee.--
(1) In general.--The Secretary of Defense shall appoint to
the Department of Defense Safety and Occupational Health
Committee, as an ex officio member, an officer of the
Department of Veterans Affairs designated by the Secretary of
Veterans Affairs for the purpose of this subsection.
(2) Purpose.--The purpose of the appointment under
paragraph (1) is to ensure that the Department of Defense and
the Department of Veterans Affairs establish and maintain
effective collaboration on matters relating to occupational
safety and health of current and former members of the Armed
Forces.
(c) Annual Report on Force Health Protection.--Not later
than March 1 each year, the Secretary of Defense and the
Secretary of Veterans Affairs shall jointly submit to
Congress each year a report on the efforts of the Department
of Defense and Department of Veterans Affairs, respectively,
during the preceding calendar year, to accomplish the
following:
(1) The identification of illnesses and injuries incurred
or aggravated by members of the Armed Forces during service
in the Armed Forces through exposure to occupational hazards
and other toxic and hazardous substances.
(2) The treatment of members of the Armed Forces and
veterans for illnesses and injuries described in paragraph
(1).
(3) The conduct of epidemiological studies on the health
consequences of the exposure of members of the Armed Forces
to occupational hazards and other toxic and hazardous
substances during service in the Armed Forces.
(4) The development of guidance and other information on
policies and practices intended to prevent, reduce, or
mitigate the exposure of members of the Armed Forces to
occupational hazards and other toxic and hazardous substances
during service in the Armed Forces.

TITLE IV--INCREASED GOVERNMENT COMMITMENT TO VETERANS' EDUCATION

SEC. 401. SHORT TITLE.

This title may be cited as the ``Montgomery GI Bill for the
21st Century Act''.

SEC. 402. FINDINGS.

Congress makes the following findings:
(1) 2004 marked the 60th anniversary of the Servicemen's
Readjustment Act of 1944, better known as the G.I. Bill. Out
of an eligible population of 15,500,000 veterans, nearly
8,000,000 received education or training as a result of this
legislation, one of the most successful Federal Government
programs in United States history.
(2) Since Congress first enacted the G.I. Bill, veterans'
benefits have been updated to keep pace with changing times.
Over 21,000,000 veterans have now received educational
assistance through the G.I. Bill and its successors.
(3) Congress has a duty to ensure that the VA can continue
to offer an education assistance program that robustly
supports veterans' efforts to obtain higher education and
make a successful transition from military to civilian life.

SEC. 403. EXCLUSION OF BASIC PAY CONTRIBUTIONS FOR
PARTICIPATION IN BASIC EDUCATIONAL ASSISTANCE
IN CERTAIN COMPUTATIONS ON STUDENT FINANCIAL
AID.

(a) Exclusion.--Subchapter II of chapter 30 of title 38,
United States Code, is amended by adding at the end the
following new section:

``Sec. 3020A. Exclusion of basic pay contributions in certain
computations on student financial aid

``(a) In General.--The expected family contribution
computed under section 475, 476, or 477 of the Higher
Education Act of 1965 (20 U.S.C. 1087oo, 1087pp, 1087qq) for
a covered student shall be decreased by $1,200 for the
applicable year.
``(b) Definitions.--In this section:
``(1) The term `academic year' has the meaning given the
term in section 481(a)(2) of the Higher Education Act of 1965
(20 U.S.C. 1088(a)(2)).
``(2) The term `applicable year' means the first academic
year for which a student uses entitlement to basic
educational assistance under this chapter.
``(3) The term `covered student' means any individual
entitled to basic educational assistance under this chapter
whose basic pay or voluntary separation incentives was or
were subject to reduction under section 3011(b), 3012(c),
3018(c), 3018A(b), or 3018B(b) of this title.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 3020 the following new item:

``3020A. Exclusion of basic pay contributions in certain computations
on student financial aid.''.

[[Page S174]]

SEC. 404. OPPORTUNITY FOR ENROLLMENT IN BASIC EDUCATIONAL
ASSISTANCE PROGRAM OF CERTAIN INDIVIDUALS WHO
PARTICIPATED OR WERE ELIGIBLE TO PARTICIPATE IN
POST-VIETNAM ERA VETERANS EDUCATIONAL
ASSISTANCE PROGRAM.

(a) Opportunity for Enrollment.--Section 3018C(e) of title
38, United States Code, is amended--
(1) in paragraph (1), by inserting ``or (3)'' after
``paragraph (2)'';
(2) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively;
(3) by inserting after paragraph (2) the following new
paragraph (3):
``(3) A qualified individual referred to in paragraph (1)
is also an individual who meets each of the following
requirements:
``(A) The individual is a participant in the educational
benefits program under chapter 32 of this title as of the
date of the enactment of the Montgomery GI Bill for the 21st
Century Act, or was eligible to participate in such program,
but had not participated in that program or any other
educational benefits program under this title, as of that
date.
``(B) The individual meets the requirements of subsection
(a)(3).
``(C) The individual, when discharged or released from
active duty, is discharged or released therefrom with an
honorable discharge.'';
(4) in paragraph (5), as so redesignated, by striking
``paragraph (3)(A)(ii)'' and inserting ``paragraph
(4)(A)(ii)''; and
(5) in paragraph (6), as so redesignated, by inserting ``,
or individuals eligible to participate in that program who
have not participated in that program or any other
educational benefits program under this title,'' after
``chapter 32 of this title''.
(b) Conforming and Clerical Amendments.--(1) The heading of
such section is amended to read as follows:

``Sec. 3018C. Opportunity to enroll: certain VEAP
participants; certain individuals eligible for
participation in VEAP''.

(2) The table of sections at the beginning of chapter 30 of
such title is amended by striking the item relating to
section 3018C and inserting the following new item:

``3018C. Opportunity to enroll: certain VEAP participants; certain
individuals eligible for participation in VEAP.''.

SEC. 405. COMMENCEMENT OF 10-YEAR DELIMITING PERIOD FOR
VETERANS, SURVIVORS, AND DEPENDENTS WHO ENROLL
IN TRAINING PROGRAM.

(a) Veterans.--Section 3031 of title 38, United States
Code, is amended--
(1) in subsection (a), by striking ``through (g), and
subject to subsection (h)'' and inserting ``through (h), and
subject to subsection (i)'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following new
subsection (h):
``(h) In the case of an individual eligible for educational
assistance under this chapter who, during the 10-year period
described in subsection (a) of this section, enrolls in a
program of training under this chapter, the period during
which the individual may use the individual's entitlement to
educational assistance under this chapter expires on the last
day of the 10-year period beginning on the first day of the
individual's pursuit of such program of training.''.
(b) Eligible Children.--Subsection (a) of section 3512 of
such title is amended--
(1) in paragraph (6)(B), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(8) if the person enrolls in a program of special
restorative training under subchapter V of this chapter, such
period shall begin on the first day of the person's pursuit
of such program of special restorative training.''.
(c) Eligible Surviving Spouses.--Subsection (b) of such
section is amended by adding at the end the following new
paragraph:
``(3) Notwithstanding the provisions of paragraph (1) of
this subsection, any eligible person (as defined in section
3501(a)(1)(B) or (D)(ii) of this title) who, during the 10-
year period described in paragraph (1) of this subsection,
enrolls in a program of special restorative training under
subchapter V of this chapter may be afforded educational
assistance under this chapter during the 10-year period
beginning on the first day of the individual's pursuit of
such program of special restorative training.''.
______

By Mr. BINGAMAN (for himself, Mr. Reid, Mr. Kennedy, Mr. Corzine,
Mr. Durbin, Mr. Reed, Mr. Schumer, Mr. Dodd, Mr. Harkin, Ms.
Mikulski, Ms. Stabenow, Mr. Lautenberg, Mrs. Feinstein, Mrs.
Clinton, Mr. Inouye, Mr. Rockefeller, Mr. Sarbanes, and Mr.
Dayton):
S. 15. A bill to improve education for all students, and for other
purposes; to the Committee on Finance
Mr. BINGAMAN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 15

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Quality Education for All
Act''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

TITLE I--STRENGTHENING HEAD START AND CHILD CARE PROGRAMS

Subtitle A--Increasing Access to Head Start Programs

Sec. 101. Authorization of appropriations.
Sec. 102. Strengthening Indian and migrant and seasonal Head Start
programs.
Sec. 103. Expanding Early Head Start programs.
Sec. 104. Participation in Head Start programs.

Subtitle B--Enhancing the School Readiness of Head Start Children

Sec. 111. School readiness standards.
Sec. 112. Staff.

Subtitle C--Expanding Access to Quality, Affordable Child Care

Sec. 121. Authorization of appropriations.

Subtitle D--Strengthening the Quality of Child Care

Sec. 131. State plan requirements relating to training.
Sec. 132. Strengthening the quality of child care.

TITLE II--PROVIDING SAFE, RELIABLE TRANSPORTATION FOR RURAL SCHOOL
CHILDREN

Sec. 201. Findings and purpose.
Sec. 202. Definitions.
Sec. 203. Grant program.
Sec. 204. Authorization of appropriations.

TITLE III--SENSE OF THE SENATE REGARDING FULLY FUNDING THE INDIVIDUALS
WITH DISABILITIES EDUCATION ACT BY 2011

Sec. 301. Findings.
Sec. 302. Sense of the Senate regarding authorization of
appropriations.

TITLE IV--IMPROVEMENT OF ELEMENTARY AND SECONDARY EDUCATION

Subtitle A--Public School Choice, Supplemental Educational Services,
and Teacher Quality

Sec. 401. Public school choice capacity.
Sec. 402. Supplemental educational services.
Sec. 403. Qualifications for teachers and paraprofessionals.

Subtitle B--Adequate Yearly Progress Determinations

Sec. 421. Review of adequate yearly progress determinations for schools
for the 2002-2003 school year.
Sec. 422. Review of adequate yearly progress determinations for local
educational agencies for the 2002-2003 school year.
Sec. 423. Definitions.

Subtitle C--Technical Assistance

Sec. 451. Technical assistance.

TITLE V--IMPROVING ASSESSMENT AND ACCOUNTABILITY

Sec. 501. Grants for increasing data capacity for purposes of
assessment and accountability.
Sec. 502. Grants for assessment of children with disabilities and
children who are limited English proficient.
Sec. 503. Reports on student enrollment and graduation rates.
Sec. 504. Civil rights.

TITLE VI--SENSE OF THE SENATE REGARDING FUNDING FOR ELEMENTARY AND
SECONDARY EDUCATION

Sec. 601. Sense of the Senate.

TITLE VII--PROVIDING A ROADMAP FOR FIRST GENERATION COLLEGE FOR
STUDENTS

Sec. 701. Expansion of TRIO and GEARUP.

TITLE VIII--COLLEGE TUITION RELIEF FOR STUDENTS AND THEIR FAMILIES
THROUGH PELL GRANTS

Sec. 801. Pell Grants tax tables hold harmless.
Sec. 802. Sense of the Senate regarding increasing the maximum Pell
Grant.
Sec. 803. Establishment of a Pell demonstration program.

TITLE IX--TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, AND SPECIAL
EDUCATION TEACHERS

Sec. 901. Purpose.
Sec. 902. Tuition free college for mathematics, science, and special
education teachers.
Sec. 903. Offset for tuition free college for mathematics, science, and
special education teachers.

TITLE X--MAKING COLLEGE AFFORDABLE FOR ALL STUDENTS

Sec. 1001. Expansion of deduction for higher education expenses.
Sec. 1002. Credit for interest on higher education loans.
Sec. 1003. Hope and Lifetime Learning credits to be refundable.

[[Page S175]]

TITLE I--STRENGTHENING HEAD START AND CHILD CARE PROGRAMS

Subtitle A--Increasing Access to Head Start Programs

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

Section 639(a) of the Head Start Act (42 U.S.C. 9834(a)) is
amended by striking ``such sums'' and all that follows and
inserting the following: ``$8,570,000,000 for fiscal year
2006, $10,445,000,000 for fiscal year 2007, $12,384,000,000
for fiscal year 2008, $14,334,000,000 for fiscal year 2009,
and $16,332,000,000 for fiscal year 2010.''.

SEC. 102. STRENGTHENING INDIAN AND MIGRANT AND SEASONAL HEAD
START PROGRAMS.

Section 640(a)(2) of the Head Start Act (42 U.S.C.
9835(a)(2)) is amended by striking subparagraph (A) and
inserting the following:
``(A) Indian Head Start programs, services for children
with disabilities, and migrant and seasonal Head Start
programs, except that the Secretary shall reserve for each
fiscal year for use by Indian Head Start and migrant and
seasonal Head Start programs (referred to in this
subparagraph as `covered programs'), on a nationwide basis, a
sum that is the total of not less than 4 percent of the
amount appropriated under section 639(a) for that fiscal year
(for Indian Head Start programs), and not less than 5 percent
of that appropriated amount (for migrant and seasonal Head
Start programs), except that--
``(i) if reserving the specified percentages for covered
programs and would reduce the number of children served by
Head Start programs, relative to the number of children
served on the date of enactment of the Quality Education for
All Act, taking into consideration an appropriate adjustment
for inflation, the Secretary shall reserve percentages that
approach, as closely as practicable, the specified
percentages and that do not cause such a reduction; and
``(ii) notwithstanding any other provision of this
subparagraph, the Secretary shall reserve for each fiscal
year for use by Indian Head Start programs and by migrant and
seasonal Head Start programs, on a nationwide basis, not less
than the amount that was obligated for use by Indian Head
Start programs and by migrant and seasonal Head Start
programs, respectively, for the previous fiscal year;''.

SEC. 103. EXPANDING EARLY HEAD START PROGRAMS.

Section 640(a)(6) of the Head Start Act (42 U.S.C.
9835(a)(6)) is amended--
(1) in subparagraph (A), by striking ``7.5 percent for
fiscal year 1999'' and all that follows and inserting ``12
percent for fiscal year 2006, 14 percent for fiscal year
2007, 16 percent for fiscal year 2008, 18 percent for fiscal
year 2009, and 20 percent for fiscal year 2010, of the amount
appropriated pursuant to section 639(a).'';
(2) by striking subparagraph (B); and
(3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 104. PARTICIPATION IN HEAD START PROGRAMS.

Section 645 of the Head Start Act (42 U.S.C. 9840) is
amended--
(1) in subsection (a)(1)(A), by inserting ``130 percent
of'' after ``below''; and
(2) by adding at the end the following:
``(e) After demonstrating a need through a community needs
assessment, a Head Start agency may apply to the Secretary to
convert part-day sessions, particularly consecutive part-day
sessions, into full-day sessions.''.

Subtitle B--Enhancing the School Readiness of Head Start Children

SEC. 111. SCHOOL READINESS STANDARDS.

Section 641A(a)(1)(B)(ii) of the Head Start Act (42 U.S.C.
9836(a)(1)(B)(ii)) is amended by striking ``at a minimum''
and all that follows and inserting the following: ``at a
minimum, develop and demonstrate--
``(I) language skills, including an expanded use of
vocabulary;
``(II) interest in and appreciation of books, reading, and
writing (either alone or with others), phonological and
phonemic awareness, and varied modes of expression and
communication;
``(III) premathematics knowledge and skills, including
knowledge and skills relating to aspects of classification,
seriation, numbers, spatial relations, and time;
``(IV) cognitive abilities related to academic achievement;
``(V) abilities related to social and emotional
development;
``(VI) gross and fine motor skills; and
``(VII) in the case of children with limited English
proficiency, abilities related to progress toward acquisition
of the English language.''.

SEC. 112. STAFF.

(a) Staff Qualifications and Development.--Section 648A of
the Head Start Act (42 U.S.C. 9843a) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking ``not
later than September 30, 2003'' and all that follows through
``programs have'' and inserting ``not later than the date
determined under subparagraph (D) for a Head Start region,
each Head Start agency in the region with a center-based
program shall ensure that all classrooms in the program have
at least 1 teacher who has'';
(ii) in clause (i), strike ``an associate, baccalaureate,''
and insert ``a baccalaureate''; and
(iii) in clause (ii), strike ``an associate,
baccalaureate,'' and insert ``a baccalaureate''; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) Temporary requirement.--Until the date determined
under subparagraph (D) for a Head Start region, the Secretary
shall ensure that at least 50 percent of all Head Start
teachers in the region in center-based programs have--
``(i) an associate, baccalaureate, or advanced degree in
early childhood education; or
``(ii) an associate, baccalaureate, or advanced degree in a
field related to early childhood education, with experience
in teaching preschool children.
``(C) Requirement for new head start teachers.--Not later
than 3 years after the date of enactment of the Quality
Education for All Act, the Secretary shall require that all
teachers hired nationwide in center-based programs of Head
Start agencies following the date of the requirement--
``(i) have an associate, baccalaureate, or advanced degree
in early childhood education;
``(ii) have an associate, baccalaureate, or advanced degree
in a field related to early childhood education, with
experience in teaching preschool children; or
``(iii) be enrolled, or enroll not later than 1 year after
the date of hire, in a program of study leading to an
associate degree in early childhood education.
``(D) Appropriate date.--The Secretary shall determine an
appropriate date for Head Start agencies in each Head Start
region to reach the result described in subparagraph (A), but
in no case shall such a date be later than 8 years after the
date of enactment of Quality Education for All Act.
``(E) Progress.--
``(i) Requirement.--The Secretary shall require Head Start
agencies with center-based programs to demonstrate continuing
and consistent progress each year to reach the results
described in subparagraphs (A) and (C).
``(ii) Plan.--Each State shall establish a plan for the
Head Start agencies with center-based programs in the State
to reach the results described in subparagraphs (A) and (C).
``(iii) Progress.--Each Head Start agency shall prepare and
submit to the Secretary and the Governor of the State a
report indicating the number and percentage of its teachers
in center-based programs with child development associate
credentials or associate, baccalaureate, or advanced degrees
in early childhood education or a field related to early
childhood education. The Secretary shall compile all such
reports and submit a summary of the compiled reports to the
Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and the Workforce of
the House of Representatives.'';
(2) in subsection (a)(3), by striking ``(2)(A)'' and
inserting ``(2)(B)''; and
(3) by adding at the end the following:
``(f) Pre-Literacy and Language Training.--To support local
efforts to enhance early language and pre-literacy
development of children in Head Start programs, and to
provide the children with high-quality oral language skills
and environments that are rich in literature, in which to
acquire early language and pre-literacy skills, each Head
Start agency shall ensure that all of the agency's Head Start
teachers receive ongoing training in language and emergent
literacy. Such training shall also include information
regarding appropriate curricula and assessments to improve
instruction and learning. Such training shall include
training in methods to promote phonological and phonemic
awareness and vocabulary development in an age-appropriate
and culturally and linguistically appropriate manner.
``(g) Professional Development Plans.--Each Head Start
agency and center shall create, in consultation with
employees of the agency or center (including family service
workers), a professional development plan for employees who
provide direct services to children, including a plan for
teachers, to meet the requirements set forth in subsection
(a).''.
(b) Attracting and Retaining High-Quality Head Start
Teachers; Tribal College or University-Head Start Partnership
Program.--
(1) Program.--The Head Start Act is amended by inserting
after section 648A (42 U.S.C. 9843a) the following:

``SEC. 648B. ATTRACTING AND RETAINING HIGH-QUALITY HEAD START
TEACHERS.

``(a) In General.--The Secretary shall make grants to
eligible Head Start agencies to enable the agencies to reach
the results described in subparagraphs (A) and (C) of section
648A(a)(2). The Secretary shall make the grants from
allotments determined under subsection (b).
``(b) Allotments.--From the funds made available under
section 639(c) for a fiscal year and not reserved under
subsection (d), the Secretary shall allot to each Head Start
agency an amount that bears the same relationship to such
funds as the amount received by the agency under section 640
for that fiscal year bears to the amount received by all Head
Start agencies under section 640 for that fiscal year.
``(c) Salary Plan.--A Head Start agency that receives a
grant under this section shall develop and carry out a plan
to raise the average salaries of teachers in the agency's
Head Start programs. In developing the plan, the agency shall
take into consideration the training, level of education, and
experience of the teachers, and the average salaries of

[[Page S176]]

prekindergarten and kindergarten teachers employed by the
local educational agency for the school district in which the
Head Start agency is located, with similar training, level of
education, and experience.
``(d) Salaries in High-Cost Areas.--The Secretary may
reserve and use a portion of the funds available under
section 639(c) to assist Head Start agencies located in high-
cost areas to help reduce the discrepancy between such
average salaries of such teachers and such average salaries
of such prekindergarten and kindergarten teachers.

``SEC. 648C. TRIBAL COLLEGE OR UNIVERSITY-HEAD START
PARTNERSHIP PROGRAM.

``(a) Tribal College or University-Head Start Partnership
Program.--
``(1) Grants.--The Secretary is authorized to award grants,
of not less than 5 years duration, to Tribal Colleges and
Universities to--
``(A) implement education programs that include tribal
culture and language and increase the number of associate,
baccalaureate, and graduate degrees in early childhood
education and related fields that are earned by Indian Head
Start agency staff members, parents of children served by
such an agency, and members of the tribal community involved;
``(B) develop and implement the programs under subparagraph
(A) in technology-mediated formats; and
``(C) provide technology literacy programs for Indian Head
Start agency staff members and children and families of
children served by such an agency.
``(2) Staffing.--The Secretary shall ensure that the
American Indian Programs Branch of the Head Start Bureau of
the Department of Health and Human Services shall have
staffing sufficient to administer the programs under this
section and to provide appropriate technical assistance to
Tribal Colleges and Universities receiving grants under this
section.
``(b) Application.--Each Tribal College or University
desiring a grant under this section shall submit an
application to the Secretary, at such time, in such manner,
and containing such information as the Secretary may require,
including a certification that the Tribal College or
University has established a partnership with 1 or more
Indian Head Start agencies for the purpose of conducting the
activities described in subsection (a).
``(c) Definitions.--In this section:
``(1) Institution of higher education.--The term
`institution of higher education' has the meaning given such
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
``(2) Tribal college or university.--The term `Tribal
College or University' means an institution--
``(A) defined by such term in section 316(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059c(b)); and
``(B) determined to be accredited or a candidate for
accreditation by a nationally recognized accrediting agency
or association.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section,
$10,000,000 for fiscal year 2006 and such sums as may be
necessary for each of fiscal years 2007 through 2010.''.
(2) Authorization of appropriations.--Section 639 of the
Head Start Act (42 U.S.C. 9834) is amended--
(A) in subsection (a), by inserting ``(other than section
648B)'' after ``this subchapter''; and
(B) by adding at the end the following:
``(c) There are authorized to be appropriated to carry out
section 648B $387,000,000 for fiscal year 2006, $496,000,000
for fiscal year 2007, $608,000,000 for fiscal year 2008,
$723,000,000 for fiscal year 2009, and $841,000,000 for
fiscal year 2010.''.
(3) Conforming amendments.--Section 640 of the Head Start
Act (42 U.S.C. 9835) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``section 639'' and
inserting ``section 639(a)'';
(ii) in paragraph (2)--

(I) in the matter preceding subparagraph (A), by inserting
``pursuant to section 639(a)'' after ``appropriated'';
(II) in subparagraph (B), in the matter following clause
(ii), by inserting ``pursuant to section 639(a)'' after
``appropriated''; and
(III) in subparagraph (C), by inserting ``pursuant to
section 639(a)'' after ``appropriated'' each place it
appears; and

(iii) in paragraph (4), in the matter preceding
subparagraph (A), by inserting ``pursuant to section 639(a)''
after ``appropriated''; and
(B) in subsection (g)(1), by inserting ``pursuant to
section 639(a)'' after ``appropriated'' each place it
appears.

Subtitle C--Expanding Access to Quality, Affordable Child Care

SEC. 121. AUTHORIZATION OF APPROPRIATIONS.

Section 658B of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858) is amended--
(1) by striking ``is'' and inserting ``are''; and
(2) by striking ``subchapter'' and all that follows and
inserting ``subchapter $3,100,000,000 for fiscal year 2006,
$4,100,000,000 for fiscal year 2007, $5,100,000,000 for
fiscal year 2008, $6,100,000,000 for fiscal year 2009, and
$7,100,000,000 for fiscal year 2010.''.

Subtitle D--Strengthening the Quality of Child Care

SEC. 131. STATE PLAN REQUIREMENTS RELATING TO TRAINING.

Section 658E(c) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)) is amended by adding
at the end the following:
``(6) Training in early learning and childhood
development.--The State plan shall describe any training
requirements that are in effect within the State that are
designed to enable child care providers to promote the
social, emotional, physical, and cognitive development of
children and that are applicable to child care providers that
provide services for which assistance is made available under
this subchapter in the State.''.

SEC. 132. STRENGTHENING THE QUALITY OF CHILD CARE.

Section 658G of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

``(a) In General.--
``(1) Reservation.--Each State that receives funds
appropriated under section 639(a) for a fiscal year shall
reserve and use not less than 6 percent of the funds for
activities provided directly, or through grants or contracts
with resource and referral organizations or other appropriate
entities, that are designed to improve the quality of child
care services.
``(2) Activities.--The funds reserved under paragraph (1)
may only be used to--
``(A) develop and implement voluntary guidelines on pre-
reading and language skills and activities, for child care
programs in the State, that are aligned with State standards
for kindergarten through grade 12 or the State's general
goals for school preparedness;
``(B) support activities and provide technical assistance
in child care settings to enhance early learning for young
children, to promote literacy, and to foster school
preparedness;
``(C) offer training, professional development, and
educational opportunities for child care providers that
relate to the use of developmentally appropriate and age-
appropriate curricula, and early childhood teaching
strategies, that are scientifically based and aligned with
the social, emotional, physical, and cognitive development of
children, including--
``(i) developing and operating distance learning child care
training infrastructures;
``(ii) developing model technology-based training courses;
``(iii) offering training for caregivers in informal child
care settings; and
``(iv) offering training for child care providers who care
for infants and toddlers and children with special needs;
``(D) engage in programs designed to increase the retention
and improve the competencies of child care providers,
including wage incentive programs and initiatives that
establish tiered payment rates for providers that meet or
exceed child care services guidelines, as defined by the
State;
``(E) evaluate and assess the quality and effectiveness of
child care programs and services offered in the State to
young children on improving overall school preparedness; and
``(F) carry out other activities determined by the State to
improve the quality of child care services provided in the
State and for which measurement of outcomes relating to
improved child safety, child well-being, or school
preparedness is possible.
``(b) Certification.--For each fiscal year beginning after
September 30, 2005, the State shall annually submit to the
Secretary a certification in which the State certifies and
demonstrates that the State was in compliance with subsection
(a) during the preceding fiscal year and describes how the
State used funds made available to carry out this subchapter
to comply with subsection (a) during that preceding fiscal
year.''.

TITLE II--PROVIDING SAFE, RELIABLE TRANSPORTATION FOR RURAL SCHOOL
CHILDREN

SEC. 201. FINDINGS AND PURPOSE.

(a) Findings.--Congress finds that--
(1) school transportation issues have concerned parents,
local educational agencies, lawmakers, the National Highway
Traffic Safety Administration, the National Transportation
Safety Board, and the Environmental Protection Agency for
years;
(2) millions of children face potential future health
problems because of exposure to noxious fumes emitted from
older school buses;
(3) the Environmental Protection Agency established the
Clean School Bus USA program to replace 129,000 of the oldest
diesel buses that cannot be retrofitted in an effort to help
children and the environment by improving air quality;
(4) unfortunately, many rural local educational agencies
are unable to participate in that program because of the
specialized fuels needed to sustain a clean bus fleet;
(5) many rural local educational agencies are operating
outdated, unsafe school buses that are failing inspections
because of automotive flaws, resulting in the depletion of
the school bus fleets of the local educational agencies; and
(6) many rural local educational agencies are unable to
afford to buy newer, safer buses.
(b) Purpose.--The purpose of this title is to establish
within the Department of Education a Federal cost-sharing
program to assist rural local educational agencies with
older, unsafe school bus fleets in purchasing newer, safer
school buses.

[[Page S177]]

SEC. 202. DEFINITIONS.

In this title:
(1) Rural local educational agency.--The term ``rural local
educational agency'' means a local educational agency, as
defined in section 9101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801), with respect to
which--
(A) each county in which a school served by the local
educational agency is located has a total population density
of fewer than 10 persons per square mile;
(B) all schools served by the local educational agency are
designated with a school locale code of 7 or 8, as determined
by the Secretary; or
(C) all schools served by the local educational agency have
been designated, by official action taken by the legislature
of the State in which the local educational agency is
located, as rural schools for purposes relating to the
provision of educational services to students in the State.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(3) School bus.--The term ``school bus'' means a vehicle
the primary purpose of which is to transport students to and
from school or school activities.

SEC. 203. GRANT PROGRAM.

(a) In General.--From amounts appropriated under subsection
(e) for a fiscal year, the Secretary shall provide grants, on
a competitive basis, to rural local educational agencies to
pay the Federal share of the cost of purchasing new school
buses.
(b) Application.--
(1) In general.--Each rural local educational agency that
seeks to receive a grant under this title shall submit to the
Secretary for approval an application at such time, in such
manner, and accompanied by such information (in addition to
information required under paragraph (2)) as the Secretary
may require.
(2) Contents.--Each application submitted under paragraph
(1) shall include--
(A) documentation that, of the total number of school buses
operated by the rural local educational agency, not less than
50 percent of the school buses are in need of repair or
replacement;
(B) documentation of the number of miles that each school
bus operated by the rural local educational agency traveled
in the most recent 9-month academic year;
(C) documentation that the rural local educational agency
is operating with a reduced fleet of school buses;
(D) a certification from the rural local educational agency
that--
(i) authorizes the application of the rural local
educational agency for a grant under this title; and
(ii) describes the dedication of the rural local
educational agency to school bus replacement programs and
school transportation needs (including the number of new
school buses needed by the rural local educational agency);
and
(E) an assurance that the rural local educational agency
will pay the non-Federal share of the cost of the purchase of
new school buses under this title from non-Federal sources.
(c) Priority.--In providing grants under this title, the
Secretary shall give priority to rural local educational
agencies that, as determined by the Secretary--
(1) are transporting students in a bus manufactured before
1977;
(2) have a grossly depleted fleet of school buses; or
(3) serve a school that is required, under section
1116(b)(9) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6316(b)(9)), to provide transportation to
students to enable the students to transfer to another public
school served by the rural local educational agency.
(d) Use of Funds.--School buses purchased with grant funds
awarded under subsection (a) shall be in compliance with
proposed air quality regulations and standards of the
Environmental Protection Agency for 2006.
(e) Payments; Federal Share.--
(1) Payments.--The Secretary shall pay to each rural local
educational agency having an application approved under this
section the Federal share described in paragraph (2) of the
cost of purchasing such number of new school buses as is
specified in the approved application.
(2) Federal share.--The Federal share of the cost of
purchasing a new school bus under this title shall be 75
percent.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this
title $50,000,000 for fiscal year 2006 and such sums as may
be necessary for each of fiscal years 2007 through 2010.

TITLE III--SENSE OF THE SENATE REGARDING FULLY FUNDING THE INDIVIDUALS
WITH DISABILITIES EDUCATION ACT BY 2011

SEC. 301. FINDINGS.

(a) Findings.--The Senate finds the following:
(1) Disability is a natural part of the human experience
and in no way diminishes the right of individuals to
participate in or contribute to society. Improving
educational results for children with disabilities is an
essential element of our national policy of ensuring equality
of opportunity, full participation, independent living, and
economic self-sufficiency for individuals with disabilities.
(2) Before the date of enactment of the Education for All
Handicapped Children Act of 1975 (Public Law 94-142), the
predecessor to the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.), the educational needs of
millions of children with disabilities were not being fully
met because--
(A) the children did not receive appropriate educational
services;
(B) the children were excluded entirely from the public
school system and from being educated with their peers;
(C) undiagnosed disabilities prevented the children from
having a successful educational experience; or
(D) a lack of adequate resources within the public school
system forced such families to find services outside the
public school system.
(3) The Individuals with Disabilities Education Act has
been successful in ensuring children with disabilities and
the families of such children access to a free appropriate
public education and in improving educational results for
children with disabilities.
(4) The implementation of the Individuals with Disabilities
Education Act has been impeded by the Federal Government's
failure to honor the commitment it made 30 years ago to
provide States with 40 percent of the excess costs of special
education.
(5) While States, local educational agencies, and
educational service agencies are primarily responsible for
providing an education for all children with disabilities, it
is in the national interest that the Federal Government have
a supporting role in assisting State and local efforts to
educate children with disabilities in order to improve
results for such children and to ensure equal protection of
the law.
(6) Congress passed authorizing language to fully fund the
Individuals with Disabilities Education Act and should
appropriate such sums as authorized.
(7) A more equitable allocation of resources is essential
for the Federal Government to meet its responsibility to
provide an equal educational opportunity for all individuals.

SEC. 302. SENSE OF THE SENATE REGARDING AUTHORIZATION OF
APPROPRIATIONS.

It is the sense of the Senate that for the purpose of
carrying out the Federal Government's commitment to children,
parents, and the States, there should be authorized to be
appropriated--
(1) $14,648,647,143 or the maximum amount available for
awarding grants under section 611(a)(2) of the Individuals
with Disabilities Education Act, whichever is lower, for
fiscal year 2006, and there should be appropriated
$4,058,901,319 for fiscal year 2006, which should become
available for obligation on July 1, 2006, and should remain
available through September 30, 2007, except that if the
maximum amount available for awarding grants under section
611(a)(2) of such Act is less than $14,648,647,143, then the
amount should be reduced by the difference between
$14,648,647,143 and the maximum amount available for awarding
grants under section 611(a)(2) of such Act;
(2) $16,938,917,714 or the maximum amount available for
awarding grants under section 611(a)(2) of the Individuals
with Disabilities Education Act, whichever is lower, for
fiscal year 2007, and there should be appropriated
$6,349,171,890 for fiscal year 2007, which should become
available for obligation on July 1, 2007, and should remain
available through September 30, 2008, except that if the
maximum amount available for awarding grants under section
611(a)(2) of such Act is less than $16,938,917,714, then the
amount should be reduced by the difference between
$16,938,917,714 and the maximum amount available for awarding
grants under section 611(a)(2) of such Act;
(3) $19,229,188,286 or the maximum amount available for
awarding grants under section 611(a)(2) of the Individuals
with Disabilities Education Act, whichever is lower, for
fiscal year 2008, and there should be appropriated
$8,639,442,462 for fiscal year 2008, which should become
available for obligation on July 1, 2008, and should remain
available through September 30, 2009, except that if the
maximum amount available for awarding grants under section
611(a)(2) of such Act is less than $19,229,188,286, then the
amount should be reduced by the difference between
$19,229,188,286 and the maximum amount available for awarding
grants under section 611(a)(2) of such Act;
(4) $21,519,458,857 or the maximum amount available for
awarding grants under section 611(a)(2) of the Individuals
with Disabilities Education Act, whichever is lower, for
fiscal year 2009, and there should be appropriated
$10,929,713,033 for fiscal year 2009, which should become
available for obligation on July 1, 2009, and should remain
available through September 30, 2010, except that if the
maximum amount available for awarding grants under section
611(a)(2) of such Act is less than $21,519,458,857, then the
amount should be reduced by the difference between
$21,519,458,857 and the maximum amount available for awarding
grants under section 611(a)(2) of such Act;
(5) $23,809,729,429 or the maximum amount available for
awarding grants under section 611(a)(2) of the Individuals
with Disabilities Education Act, whichever is lower, for
fiscal year 2010, and there should be appropriated
$13,219,983,605 for fiscal year 2010, which should become
available for obligation on July 1, 2010, and should remain
available through September 30, 2011, except that if the
maximum amount available for awarding grants under section
611(a)(2) of such Act is less than $23,809,729,429, then the
amount

[[Page S178]]

should be reduced by the difference between $23,809,729,429
and the maximum amount available for awarding grants under
section 611(a)(2) of such Act;
(6) $26,100,000,000 or the maximum amount available for
awarding grants under section 611(a)(2) of the Individuals
with Disabilities Education Act, whichever is lower, for
fiscal year 2011, and there should be appropriated
$15,510,254,176 for fiscal year 2011, which should become
available for obligation on July 1, 2011, and should remain
available through September 30, 2012, except that if the
maximum amount available for awarding grants under section
611(a)(2) of such Act is less than $26,100,000,000, then the
amount should be reduced by the difference between
$26,100,000,000 and the maximum amount available for awarding
grants under section 611(a)(2) of such Act; and
(7) the maximum amount available for awarding grants under
section 611(a)(2) of the Individuals with Disabilities
Education Act for fiscal year 2012 and each succeeding fiscal
year, and there should be appropriated for each such year an
amount equal to the maximum amount available for awarding
grants under section 611(a)(2) of such Act for the fiscal
year for which the determination is made minus
$10,589,745,824, which should become available for obligation
on July 1 of the fiscal year for which the determination is
made and should remain available through September 30 of the
succeeding fiscal year.

TITLE IV--IMPROVEMENT OF ELEMENTARY AND SECONDARY EDUCATION

Subtitle A--Public School Choice, Supplemental Educational Services,
and Teacher Quality

SEC. 401. PUBLIC SCHOOL CHOICE CAPACITY.

(a) School Capacity.--Section 1116(b)(1)(E) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6316(b)(1)(E)) is amended--
(1) in clause (i), by striking ``In the case'' and
inserting ``Subject to clauses (ii) and (iii), in the case'';
(2) by redesignating clause (ii) as clause (iii);
(3) by inserting after clause (i) the following:
``(ii) School capacity.--The obligation of a local
educational agency to provide the option to transfer to
students under clause (i) is subject to all applicable State
and local health and safety code requirements regarding
facility capacity.''; and
(4) in clause (iii) (as redesignated by paragraph (2)), by
inserting ``and subject to clause (ii),'' after ``public
school,''.
(b) Grants for School Construction and Renovation.--
(1) In general.--Subpart 1 of part A of title I of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.) is amended by adding at the end the following:

``SEC. 1120C. GRANTS FOR SCHOOL CONSTRUCTION AND RENOVATION.

``(a) Program Authorized.--From funds appropriated under
subsection (g), the Secretary is authorized to award grants
to local educational agencies experiencing overcrowding in
the schools served by the local educational agencies, for the
construction and renovation of safe, healthy, high-
performance school buildings.
``(b) Application.--Each local educational agency desiring
a grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by
such additional information as the Secretary may require.
``(c) Priority.--In awarding grants under this section, the
Secretary shall give priority to local educational agencies--
``(1) who have documented difficulties in meeting the
public school choice requirements of paragraph (1)(E),
(5)(A), (7)(C)(i), or (8)(A)(i) of section 1116(b), or
section 1116(c)(10)(C)(vii); and
``(2) with the highest number of schools at or above
capacity.
``(d) Award Basis.--From funds remaining after awarding
grants under subsection (c), the Secretary shall award grants
to local educational agencies that are experiencing
overcrowding in the schools served by the local educational
agencies.
``(e) Prevailing Wages.--Any laborer or mechanic employed
by any contractor or subcontractor in the performance of work
on any construction funded by a grant awarded under this
section will be paid wages at rates not less than those
prevailing on similar construction in the locality as
determined by the Secretary of Labor under subchapter IV of
chapter 31 of title 40, United States Code (commonly referred
to as the Davis-Bacon Act).
``(f) Definitions.--In this section:
``(1) At or above capacity.--The term `at or above
capacity', in reference to a school, means a school in which
1 additional student would increase the average class size of
the school above the average class size of all schools in the
State in which the school is located.
``(2) Healthy, high-performance school building.--The term
`healthy, high-performance school building' has the meaning
given such term in section 5586.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$250,000,000 for fiscal year 2006, and such sums as may be
necessary for each of the 2 succeeding fiscal years.''.
(2) Table of contents.--The table of contents of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.6301
note) is amended by inserting after the item relating to
section 1120B the following:

``Sec. 1120C. Grants for school construction and renovation.''.

SEC. 402. SUPPLEMENTAL EDUCATIONAL SERVICES.

Section 1116(e) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6316(e)) is amended--
(1) in paragraph (4)--
(A) in subparagraph (B), by striking the semicolon and
inserting ``, including criteria that--
``(i) ensure that personnel delivering supplemental
educational services to students have adequate
qualifications; and
``(ii) may, at the State's discretion, ensure that
personnel delivering supplemental educational services to
students are teachers that are highly qualified, as such term
is defined in section 9101;'';
(B) in subparagraph (D), by striking ``and'' after the
semicolon;
(C) in subparagraph (E), by striking the period and
inserting ``; and''; and
(D) by adding at the end the following:
``(F) ensure that the list of approved providers of
supplemental educational services described in subparagraph
(C) includes a choice of providers that have sufficient
capacity to provide effective services for children who are
limited English proficient and children with disabilities.'';
(2) in paragraph (5)(C)--
(A) by striking ``applicable''; and
(B) by inserting before the period ``, and acknowledge in
writing that, as an approved provider in the relevant State
educational agency program of providing supplemental
educational services, the provider is deemed to be a
recipient of Federal financial assistance'';
(3) by redesignating paragraphs (6), (7), (8), (9), (10),
(11), and (12) as paragraphs (7), (8), (9), (10), (11), (12),
and (13), respectively;
(4) by inserting after paragraph (5) the following:
``(6) Rule of construction.--Nothing in this section shall
be construed to prohibit a local educational agency from
being considered by a State educational agency as a potential
provider of supplemental educational services under this
subsection, if such local educational agency meets the
criteria adopted by the State educational agency in
accordance with paragraph (5).'';
(5) in paragraph (13) (as redesignated by paragraph (3))--
(A) in subparagraph (B)--
(i) in clause (ii), by striking ``and'' after the
semicolon;
(ii) in clause (iii), by striking ``and'' after the
semicolon; and
(iii) by adding at the end the following:
``(iv) may employ teachers who are highly qualified, as
such term is defined in section 9101; and
``(v) pursuant to its inclusion on the relevant State
educational agency's list described in paragraph (4)(C), is
deemed to be a recipient of Federal financial assistance;
and''; and
(B) in subparagraph (C)--
(i) in the matter preceding clause (i), by striking
``are'';
(ii) in clause (i)--

(I) by inserting ``are'' before ``in addition''; and
(II) by striking ``and'' after the semicolon;

(iii) in clause (ii), by striking the period and inserting
``; and''; and
(iv) by adding at the end the following:
``(iii) if provided by providers that are included on the
relevant State educational agency's list described in
paragraph (4)(C), shall be deemed to be programs or
activities of the relevant State educational agency.''; and
(6) by adding at the end the following:
``(14) Civil rights.--In providing supplemental educational
services under this subsection, no State educational agency
or local educational agency may, directly or through
contractual, licensing, or other arrangements with a provider
of supplemental educational services, engage in any form of
discrimination prohibited by--
``(A) title VI of the Civil Rights Act of 1964;
``(B) title IX of the Education Amendments of 1972;
``(C) section 504 of the Rehabilitation Act of 1973;
``(D) titles II and III of the Americans with Disabilities
Act;
``(E) the Age Discrimination Act of 1975;
``(F) regulations promulgated under the authority of the
laws listed in subparagraphs (A) through (E); or
``(G) other Federal civil rights laws.''.

SEC. 403. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

(a) High Objective Uniform State Standard of Evaluation.--
Section 1119 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6319) is amended--
(1) in subsection (a)(2)--
(A) by redesignating subparagraphs (A) through (C) as
clauses (i) through (iii), respectively, and indenting as
appropriate;
(B) by striking ``(2) State plan.--As part'' and inserting
the following:
``(2) State plan.--
``(A) In general.--As part''; and
(C) by adding at the end the following:
``(B) Availability of state standards.--Each State
educational agency shall make available to teachers in the
State the high objective uniform State standard of
evaluation, as described in section 9101(23)(C)(ii), for the
purpose of meeting the teacher qualification requirements
established under this section.'';

[[Page S179]]

(2) by redesignating subsections (e), (f), (g), (h), (i),
(j), (k), and (l) as subsections (f), (g), (h), (i), (j),
(k), (l), and (m), respectively;
(3) by inserting after subsection (d) the following:
``(e) State Responsibilities.--Each State educational
agency shall ensure that local educational agencies in the
State make available all options described in subparagraphs
(A) through (C) of subsection (c)(1) to each new or existing
paraprofessional for the purpose of demonstrating the
qualifications of the paraprofessional, consistent with the
requirements of this section.''; and
(4) in subsection (l) (as redesignated by paragraph (2)),
by striking ``subsection (l)'' and inserting ``subsection
(m)''.
(b) Definition of Highly Qualified Teachers.--Section
9101(23)(B)(ii) is amended--
(1) in subclause (I), by striking ``or'' after the
semicolon;
(2) in subclause (II), by striking ``and'' after the
semicolon; and
(3) by adding at the end the following:

``(III) in the case of a middle school teacher, passing a
State-approved middle school generalist exam when the teacher
receives a license to teach middle school in the State;
``(IV) obtaining a State middle school or secondary school
social studies certificate that qualifies the teacher to
teach history, geography, economics, civics, and government
in middle schools or in secondary schools, respectively, in
the State; or
``(V) obtaining a State middle school or secondary school
science certificate that qualifies the teacher to teach earth
science, biology, chemistry, and physics in middle schools or
secondary schools, respectively, in the State; and''.

(c) Ensuring Highly Qualified Teachers.--
(1) Requirement.--The Secretary of Education shall improve
coordination among the teacher quality programs authorized
under the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.), the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.), the Higher Education
Act of 1965 (20 U.S.C. 1001 et seq.), and the Carl D. Perkins
Vocational and Technical Education Act of 1998 (20 U.S.C.
2301 et seq.), to provide a unified effort in strengthening
the American teaching workforce and ensuring highly qualified
teachers.
(2) Report.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Education shall
submit a report to the relevant committees of Congress, that
shall be made available on the website of the Department of
Education, on efforts to coordinate programs pursuant to
paragraph (1).

Subtitle B--Adequate Yearly Progress Determinations

SEC. 421. REVIEW OF ADEQUATE YEARLY PROGRESS DETERMINATIONS
FOR SCHOOLS FOR THE 2002-2003 SCHOOL YEAR.

(a) In General.--The Secretary shall require each local
educational agency to provide each school served by the
agency with an opportunity to request a review of a
determination by the agency that the school did not make
adequate yearly progress for the 2002-2003 school year.
(b) Final Determination.--Not later than 30 days after
receipt of a request by a school for a review under this
section, a local educational agency shall issue and make
publicly available a final determination on whether the
school made adequate yearly progress for the 2002-2003 school
year.
(c) Evidence.--In conducting a review under this section, a
local educational agency shall--
(1) allow the principal of the school involved to submit
evidence on whether the school made adequate yearly progress
for the 2002-2003 school year; and
(2) consider that evidence before making a final
determination under subsection (b).
(d) Standard of Review.--In conducting a review under this
section, a local educational agency shall revise, consistent
with the applicable State plan under section 1111 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311), the local educational agency's original determination
that a school did not make adequate yearly progress for the
2002-2003 school year if the agency finds that the school
made such progress, taking into consideration--
(1) the amendments made to part 200 of title 34, Code of
Federal Regulations (68 Fed. Reg. 68698) (relating to
accountability for the academic achievement of students with
the most significant cognitive disabilities); or
(2) any regulation or guidance that, subsequent to the date
of such original determination, was issued by the Secretary
relating to--
(A) the assessment of limited English proficient children;
(B) the inclusion of limited English proficient children as
part of the subgroup described in section
1111(b)(2)(C)(v)(II)(dd) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)(v)(II)(dd))
after such children have obtained English proficiency; or
(C) any requirement under section 1111(b)(2)(I)(ii) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311(b)(2)(I)(ii)).
(e) Effect of Revised Determination.--
(1) In general.--If pursuant to a review under this section
a local educational agency determines that a school made
adequate yearly progress for the 2002-2003 school year, upon
such determination--
(A) any action by the Secretary, the State educational
agency, or the local educational agency that was taken
because of a prior determination that the school did not make
such progress shall be terminated; and
(B) any obligations or actions required of the local
educational agency or the school because of the prior
determination shall cease to be required.
(2) Exceptions.--Notwithstanding paragraph (1), a
determination under this section shall not affect any
obligation or action required of a local educational agency
or school under the following:
(A) Section 1116(b)(13) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6316(b)(13)) (requiring a
local educational agency to continue to permit a child who
transferred to another school under such section to remain in
that school until completion of the highest grade in the
school).
(B) Section 1116(e)(9) of the Elementary and Secondary
Education Act of 1965 (as redesignated by section 402(3)) (20
U.S.C. 6316(e)(9)) (requiring a local educational agency to
continue to provide supplemental educational services under
such section until the end of the school year).
(3) Subsequent determinations.--In determining whether a
school is subject to school improvement, corrective action,
or restructuring as a result of not making adequate yearly
progress, the Secretary, a State educational agency, or a
local educational agency may not take into account a
determination that the school did not make adequate yearly
progress for the 2002-2003 school year if such determination
was revised under this section and the school received a
final determination of having made adequate yearly progress
for the 2002-2003 school year.
(f) Notification.--The Secretary--
(1) shall require each State educational agency to notify
each school served by the agency of the school's ability to
request a review under this section; and
(2) not later than 30 days after the date of the enactment
of this section, shall notify the public by means of the
Department of Education's website of the review process
established under this section.

SEC. 422. REVIEW OF ADEQUATE YEARLY PROGRESS DETERMINATIONS
FOR LOCAL EDUCATIONAL AGENCIES FOR THE 2002-
2003 SCHOOL YEAR.

(a) In General.--The Secretary shall require each State
educational agency to provide each local educational agency
in the State with an opportunity to request a review of a
determination by the State educational agency that the local
educational agency did not make adequate yearly progress for
the 2002-2003 school year.
(b) Application of Certain Provisions.--Except as
inconsistent with, or inapplicable to, this section, the
provisions of section 421 shall apply to review by a State
educational agency of a determination described in subsection
(a) in the same manner and to the same extent as such
provisions apply to review by a local educational agency of a
determination described in section 421(a).

SEC. 423. DEFINITIONS.

In this subtitle:
(1) The term ``adequate yearly progress'' has the meaning
given to that term in section 1111(b)(2)(C) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
6311(b)(2)(C)).
(2) The term ``local educational agency'' means a local
educational agency (as that term is defined in section 9101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801)) receiving funds under part A of title I of such
Act (20 U.S.C. 6311 et seq.).
(3) The term ``Secretary'' means the Secretary of
Education.
(4) The term ``school'' means an elementary school or a
secondary school (as those terms are defined in section 9101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801)) served under part A of title I of such Act (20
U.S.C. 6311 et seq.).
(5) The term ``State educational agency'' means a State
educational agency (as that term is defined in section 9101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801)) receiving funds under part A of title I of such
Act (20 U.S.C. 6311 et seq.).

Subtitle C--Technical Assistance

SEC. 451. TECHNICAL ASSISTANCE.

(a) In General.--Part F of title IX of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7941) is amended--
(1) in the part heading, by inserting ``AND TECHNICAL
ASSISTANCE'' after ``EVALUATIONS''; and
(2) by adding at the end the following:

``SEC. 9602. TECHNICAL ASSISTANCE.

``The Secretary shall ensure that the technical assistance
provided by, and the research developed and disseminated
through, the Institute of Education Sciences and other
offices or agencies of the Department provide educators and
parents with the needed information and support for
identifying and using educational strategies, programs, and
practices, including strategies, programs, and practices
available through the clearinghouses supported under the
Education Sciences Reform Act of 2002 (20 U.S.C. 9501 et
seq.) and other federally supported clearinghouses, that have
been successful in improving educational opportunities and
achievement for all students.''.
(b) Table of Contents.--The table of contents of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6301 note) is amended by inserting after the item relating to
section 9601 the following:

``Sec. 9602. Technical assistance.''.

[[Page S180]]

TITLE V--IMPROVING ASSESSMENT AND ACCOUNTABILITY

SEC. 501. GRANTS FOR INCREASING DATA CAPACITY FOR PURPOSES OF
ASSESSMENT AND ACCOUNTABILITY.

(a) Program Authorized.--From funds appropriated for a
fiscal year, the Secretary may award grants, on a competitive
basis, to State educational agencies--
(1) to enable the State educational agencies to develop or
increase the capacity of data systems for assessment and
accountability purposes, including the collection of
graduation rates; and
(2) to award subgrants to increase the capacity of local
educational agencies to upgrade, create, or manage
longitudinal data systems for the purpose of measuring
student academic progress and achievement.
(b) State Application.--Each State educational agency
desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
(c) State Use of Funds.--Each State educational agency that
receives a grant under this section shall use--
(1) not more than 20 percent of the grant funds for the
purpose of--
(A) increasing the capacity of, or creating, State
databases to collect, disaggregate, and report information
related to student achievement, enrollment, and graduation
rates for assessment and accountability purposes; and
(B) reporting, on an annual basis, for the elementary
schools and secondary schools within the State, on--
(i) the enrollment data from the beginning of the academic
year;
(ii) the enrollment data from the end of the academic year;
and
(iii) the twelfth grade graduation rates; and
(2) not less than 80 percent of the grant funds to award
subgrants to local educational agencies within the State to
enable the local educational agencies to carry out the
authorized activities described in subsection (e).
(d) Local Application.--Each local educational agency
desiring a subgrant under this section shall submit an
application to the State educational agency at such time, in
such manner, and containing such information as the State
educational agency may require. Each such application shall
include, at a minimum, a demonstration of the local
educational agency's ability to put a longitudinal data
system in place.
(e) Local Authorized Activities.--Each local educational
agency that receives a subgrant under this section shall use
the subgrant funds to increase the capacity of the local
educational agency to upgrade or manage longitudinal data
systems consistent with the uses in subsection (c)(1), by--
(1) purchasing database software or hardware;
(2) hiring additional staff for the purpose of managing
such data;
(3) providing professional development or additional
training for such staff; and
(4) providing professional development or training for
principals and teachers on how to effectively use such data
to implement instructional strategies to improve student
achievement and graduation rates.
(f) Definitions.--In this section:
(1) Graduation rate.--The term ``graduation rate'' means
the percentage that--
(A) the total number of students who--
(i) graduate from a secondary school with a regular diploma
(which shall not include the recognized equivalent of a
secondary school diploma or an alternative degree) in an
academic year; and
(ii) graduated on time by progressing 1 grade per academic
year; represents of
(B) the total number of students who entered the secondary
school in the entry level academic year applicable to the
graduating students.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(3) State educational agency and local educational
agency.--The terms ``State educational agency'' and ``local
educational agency'' have the meanings given such terms in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $100,000,000 for
fiscal year 2006, and such sums as may be necessary for each
of the 2 succeeding fiscal years.

SEC. 502. GRANTS FOR ASSESSMENT OF CHILDREN WITH DISABILITIES
AND CHILDREN WHO ARE LIMITED ENGLISH
PROFICIENT.

(a) Grants for Assessment of Children With Disabilities and
Children Who Are Limited English Proficient.--Part E of title
I of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6491 et seq.) is amended by adding at the end the
following:

``SEC. 1505. GRANTS FOR ASSESSMENT OF CHILDREN WITH
DISABILITIES AND CHILDREN WHO ARE LIMITED
ENGLISH PROFICIENT.

``(a) Grants Authorized.--From amounts authorized to be
appropriated under subsection (e) for a fiscal year, the
Secretary shall award grants, on a competitive basis, to
State educational agencies, or to consortia of State
educational agencies, to enable the State educational
agencies or consortia to collaborate with institutions of
higher education, research institutions, or other
organizations--
``(1) to design and improve State academic assessments for
students who are limited English proficient and students with
disabilities; and
``(2) to ensure the most accurate, valid, and reliable
means to assess academic content standards and student
academic achievement standards for students who are limited
English proficient and students with disabilities.
``(b) Authorized Activities.--A State educational agency or
consortium that receives a grant under this section shall use
the grant funds to carry out 1 or more of the following
activities:
``(1) Developing alternate assessments for students with
disabilities, consistent with section 1111 and the amendments
made on December 9, 2003, to part 200 of title 34, Code of
Federal Regulations (68 Fed. Reg. 68698) (relating to
accountability for the academic achievement of students with
the most significant cognitive disabilities), including--
``(A) the alignment of such assessments, as appropriate and
consistent with such amendments, with--
``(i) State student academic achievement standards and
State academic content standards for all students; or
``(ii) alternate State student academic achievement
standards that reflect the intended instructional construct
for students with disabilities;
``(B) activities to ensure that such assessments do not
reflect the disabilities, or associated characteristics, of
the students that are extraneous to the intent of the
measurement;
``(C) the development of an implementation plan for pilot
tests for such assessments, in order to determine the level
of appropriateness and feasibility of full-scale
administration; and
``(D) activities that provide for the retention of all
feasible standardized features in the alternate assessments.
``(2) Developing alternate assessments that meet the
requirements of section 1111 for students who are limited
English proficient, including--
``(A) the alignment of such assessments with State student
academic achievement standards and State academic content
standards for all students;
``(B) the development of parallel native language
assessments or linguistically modified assessments for
limited English proficient students that meet the
requirements of section 1111(b)(3)(C)(ix)(III);
``(C) the development of an implementation plan for pilot
tests for such assessments, in order to determine the level
of appropriateness and feasibility of full-scale
administration; and
``(D) activities that provide for the retention of all
feasible standardized features in the alternate assessments.
``(3) Developing, modifying, or revising State policies and
criteria for appropriate accommodations to ensure the full
participation of students who are limited English proficient
and students with disabilities in State academic assessments,
including--
``(A) developing a plan to ensure that assessments provided
with accommodations are fully included and integrated into
the accountability system, for the purpose of making the
determinations of adequate yearly progress required under
section 1116;
``(B) ensuring the validity, reliability, and
appropriateness of such accommodations, such as--
``(i) a modification to the presentation or format of the
assessment;
``(ii) the use of assistive devices;
``(iii) an extension of the time allowed for testing;
``(iv) an alteration of the test setting or procedures;
``(v) the administration of portions of the test in a
method appropriate for the level of language proficiency of
the test taker;
``(vi) the use of a glossary or dictionary; and
``(vii) the use of a linguistically modified assessment;
``(C) ensuring that State policies and criteria for
appropriate accommodations take into account the form or
program of instruction provided to students, including the
level of difficulty, reliability, cultural difference, and
content equivalence of such form or program;
``(D) ensuring that such policies are consistent with the
standards prepared by the Joint Committee on Standards for
Educational and Psychological Testing of the American
Educational Research Association, the American Psychological
Association, and the National Council on Measurement in
Education; and
``(E) developing a plan for providing training on the use
of accommodations to school instructional staff, families,
students, and other appropriate parties.
``(4) Developing universally designed assessments that can
be accessible to all students, including--
``(A) examining test item or test performance for students
with disabilities and students who are limited English
proficient, to determine the extent to which the test item or
test is universally designed;
``(B) using think aloud and cognitive laboratory
procedures, as well as item statistics, to identify test
items that may pose particular problems for students with
disabilities or students who are limited English proficient;
``(C) developing and implementing a plan to ensure that
developers and reviewers of test items are trained in the
principles of universal design; and

[[Page S181]]

``(D) developing computer-based applications of universal
design principles.
``(c) Application.--Each State educational agency, or
consortium of State educational agencies, desiring to apply
for a grant under this section shall submit an application to
the Secretary at such time, in such manner, and containing
such information as the Secretary may require, including--
``(1) information regarding the institutions of higher
education, research institutions, or other organizations that
are collaborating with the State educational agency or
consortium, in accordance with subsection (a);
``(2) in the case of a consortium of State educational
agencies, the designation of 1 State educational agency as
the fiscal agent for the receipt of grant funds;
``(3) a description of the process and criteria by which
the State educational agency will identify students that are
unable to participate in general State content assessments
and are eligible to take alternate assessments, consistent
with the amendments made to part 200 of title 34, Code of
Federal Regulations (68 Fed. Reg. 68698);
``(4) in the case of a State educational agency or
consortium carrying out the activity described in subsection
(b)(1)(A), a description of how the State educational agency
plans to fulfill the requirement of subsection (b)(1)(A);
``(5) in the case of a State educational agency or
consortium carrying out the activities described in
paragraphs (1), (2), and (4) of subsection (b), information
regarding the proposed techniques for the development of
alternate assessments, including a description of the
technical adequacy of, technical aspects of, and scoring for
such assessments;
``(6) a plan for providing training for school
instructional staff, families, students, and other
appropriate parties on the use of alternate assessments; and
``(7) information on how the scores of students
participating in alternate assessments will be reported to
the public and to parents.
``(d) Evaluation and Reporting Requirements.--Each State
educational agency receiving a grant under this section shall
submit an annual report to the Secretary describing the
activities carried out under the grant and the result of such
activities, including--
``(1) details on the effectiveness of the activities
supported under this section in helping students with
disabilities, or students who are limited English proficient,
better participate in State assessment programs; and
``(2) information on the change in achievement, if any, of
students with disabilities and students who are limited
English proficient, as a result of a more accurate assessment
of such students.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$50,000,000 for fiscal year 2006, and such sums as may be
necessary for each of the 2 succeeding fiscal years.''.
(b) Table of Contents.--The table of contents of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6301 note) is amended by inserting after the item relating to
section 1504 the following:

``Sec. 1505. Grants for assessment of children with disabilities and
children who are limited English proficient.''.

SEC. 503. REPORTS ON STUDENT ENROLLMENT AND GRADUATION RATES.

(a) Student Enrollment and Graduation Rates.--Part E of
title I of the Elementary and Secondary Education Act of 1965
(as amended by section 502) (20 U.S.C. 6491 et seq.) is
amended by adding at the end the following:

``SEC. 1506. REPORTS ON STUDENT ENROLLMENT AND GRADUATION
RATES.

``(a) In General.--The Secretary shall collect from each
State educational agency, local educational agency, and
school, on an annual basis, the following data:
``(1) The number of students enrolled in each of grades 7
through 12 at the beginning of the most recent school year.
``(2) The number of students enrolled in each of grades 7
through 12 at the end of the most recent school year.
``(3) The graduation rate for the most recent school year.
``(4) The data described in paragraphs (1) through (3),
disaggregated by the groups of students described in section
1111(b)(2)(C)(v)(II).
``(b) Annual Report.--The Secretary shall report the
information collected under subsection (a) on an annual
basis.''.
(b) Table of Contents.--The table of contents of the
Elementary and Secondary Education Act of 1965 (as amended by
section 502(b)) (20 U.S.C. 6301 note) is amended by inserting
after the item relating to section 1505 the following:

``Sec. 1506. Reports on student enrollment and graduation rates.''.

SEC. 504. CIVIL RIGHTS.

Section 9534 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7914) is amended--
(1) by redesignating subsections (a) and (b) as subsections
(b) and (c), respectively; and
(2) by inserting before subsection (b) (as redesignated by
paragraph (1)) the following:
``(a) Prohibition of Discrimination.--Discrimination on the
basis of race, color, religion, sex (except as otherwise
permitted under title IX of the Education Amendments of
1972), national origin, or disability in any program funded
under this Act is prohibited.''.

TITLE VI--SENSE OF THE SENATE REGARDING FUNDING FOR ELEMENTARY AND
SECONDARY EDUCATION

SEC. 601. SENSE OF THE SENATE.

(a) Findings.--The Senate finds the following:
(1) Congress enacted, with bipartisan support, and the
President signed into law the No Child Left Behind Act of
2001 (Public Law 107-210; 115 Stat. 1425), that reauthorized
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6301 et seq.). The new law required States to set high
standards for learning and required schools to implement
reforms to help improve student achievement. In return,
Congress and the President pledged to make sure schools would
have resources to carry out the reforms as called for in the
new law.
(2) $22,750,000,000 is needed to fund part A of title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.) in fiscal year 2006, as promised pursuant to
the No Child Left Behind Act of 2001 (Public Law 107-210; 115
Stat. 1425).
(3) $25,000,000,000 is needed to fund part A of title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.) in fiscal year 2007, as promised pursuant to
the No Child Left Behind Act of 2001 (Public Law 107-210; 115
Stat. 1425).
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) it is in the best interest of the Nation that all
students have access to a high-quality elementary and
secondary education; and
(2) part A of title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311 et seq.) should be
funded as promised pursuant to the No Child Left Behind Act
of 2001 (Public Law 107-210; 115 Stat. 1425).

TITLE VII--PROVIDING A ROADMAP FOR FIRST GENERATION COLLEGE FOR
STUDENTS

SEC. 701. EXPANSION OF TRIO AND GEARUP.

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
is amended--
(1) in section 402A(f), by striking ``$700,000,000 for
fiscal year 1999'' and inserting ``$1,000,000,000 for fiscal
year 2006''; and
(2) by striking section 404H and inserting the following:

``SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this
chapter $400,000,000 for fiscal year 2006 and such sums as
may be necessary for each of the 4 succeeding fiscal
years.''.

TITLE VIII--COLLEGE TUITION RELIEF FOR STUDENTS AND THEIR FAMILIES
THROUGH PELL GRANTS

SEC. 801. PELL GRANTS TAX TABLES HOLD HARMLESS.

Notwithstanding any other provision of law, the annual
updates to the allowance for State and other taxes in the
tables used in the Federal Need Analysis Methodology to
determine a student's expected family contribution for the
award year 2005-2006 under part F of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087kk et seq.), published
in the Federal Register on Thursday, December 23, 2004 (69
Fed. Reg. 76926), shall not apply to a student to the extent
the updates will reduce the amount of Federal student
assistance for which the student is eligible.

SEC. 802. SENSE OF THE SENATE REGARDING INCREASING THE
MAXIMUM PELL GRANT.

(a) Findings.--The Senate makes the following findings:
(1) Increasing the percentage of individuals who obtain a
postsecondary education has become increasingly important,
not just to the individual beneficiary, but to the Nation as
a whole. The growth and continued expansion of the Nation's
economy is heavily dependent on an educated and highly
skilled workforce.
(2) The opportunity to gain a postsecondary education also
is important to the Nation as a means to help advance the
American ideals of progress and equality.
(3) The Federal Government plays an invaluable role in
making student financial aid available to ensure that
qualified students are able to attend college, regardless of
their financial means. Since the inception of the Pell Grant
program in 1973, nearly 80,000,000 grants have helped low-
and middle-income students go to college, enrich their lives,
and become productive members of society.
(4) Nationwide, almost 63 percent of secondary school
graduates continue on to higher education immediately after
completing secondary school. This degree of college
participation would not exist without the Federal investment
in student aid, especially the Pell Grant program. More than
4,000,000 low- and middle-income students receive Pell
Grants; 95 percent of whom have a family income of not more
than $40,000.
(5) In the next 10 years, the number of undergraduate
students enrolled in the Nation's colleges and universities
will increase by 15 percent to more than 15,000,000 students.
Many of these students will be the first in their families to
attend college. The continued investment in the Pell Grant
program is essential if college is to remain an achievable
part of the American dream.
(6) Increasing the maximum Pell Grant to $5,100 would allow
more than 430,000 additional students to benefit from the
program.
(7) Increasing the maximum Pell Grant to $5,100 would
result in 200,000 new Pell Grant recipients.

[[Page S182]]

(8) Pell Grant recipients are more likely to graduate with
student loan debt and to amass more debt than other student
borrowers. Increasing the maximum Pell Grant to $5,100 will
help remedy this disparity.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) the maximum Pell Grant should be increased to $5,100
during award year 2006-2007; and
(2) the maximum Pell Grant amount set by Congress should be
the amount eligible students receive.

SEC. 803. ESTABLISHMENT OF A PELL DEMONSTRATION PROGRAM.

(a) Findings.--Congress finds that:
(1) A student remains eligible to receive a Federal Pell
Grant as long as the student is income-eligible and has not
received a bachelor's degree.
(2) By encouraging persistence and degree acquisition in a
timely manner, the Federal Government, in effect, saves
money--
(A) by reducing the courses that do not lead to a degree;
and
(B) by helping students get the financial benefits of a
college degree as soon as possible.
(b) Pell Demonstration Program.--
(1) Authorization.--The Secretary of Education shall
establish a demonstration program to facilitate the ability
of low-income students to complete the students' degree
within 150 percent of the time expected to complete such
degree.
(2) Grants.--The Secretary of Education shall award
competitive grants to institutions of higher education to
enable students who are eligible to receive Federal Pell
Grants under subpart 1 of part A of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070a et seq.) to enroll in
courses in the summer at such institutions to expedite the
students' graduation from the institutions.
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $500,000,000
for the period of fiscal years 2006 through 2008.

TITLE IX--TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, AND SPECIAL
EDUCATION TEACHERS

SEC. 901. PURPOSE.

It is the purpose of this title to make public college
tuition free for future mathematics, science, and special
education teachers and to provide additional assistance to
students eligible to receive a Federal Pell Grant under
subpart 1 of part A of title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070a et seq.).

SEC. 902. TUITION FREE COLLEGE FOR MATHEMATICS, SCIENCE, AND
SPECIAL EDUCATION TEACHERS.

(a) Additional Amounts for Teachers in Mathematics,
Science, and Special Education.--
(1) Ffel loans.--Section 428J(c)(3) of the Higher Education
Act of 1965 (20 U.S.C. 1078-10(c)(3)) is amended by striking
``$17,500'' and inserting ``$23,000''.
(2) Direct loans.--Section 460(c)(3) of the Higher
Education Act of 1965 (20 U.S.C. 1087j(c)(3)) is amended by
striking ``$17,500'' and inserting ``$23,000''.
(b) Effective Date.--The amendments made by this section
shall apply only with respect to eligible individuals who are
new borrowers on or after October 1, 1998.

SEC. 903. OFFSET FOR TUITION FREE COLLEGE FOR MATHEMATICS,
SCIENCE, AND SPECIAL EDUCATION TEACHERS.

(a) Special Allowances.--
(1) In general.--Section 438(b)(2)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(B)) is
amended--
(A) in clause (iv), by striking ``or refunded after
September 30, 2004, and before January 1, 2006,'' and
inserting ``or refunded on or after the date of enactment of
the Taxpayer-Teacher Protection Act of 2004,''; and
(B) by striking clause (v) and inserting the following:
``(v) Notwithstanding clauses (i) and (ii), the quarterly
rate of the special allowance shall be the rate determined
under subparagraph (A), (E), (F), (G), (H), or (I) of this
paragraph, or paragraph (4), as the case may be, for loans--

``(I) originated, transferred, or purchased on or after the
date of enactment of the Taxpayer-Teacher Protection Act of
2004;
``(II) financed by an obligation that has matured, been
retired, or defeased on or after the date of enactment of the
Taxpayer-Teacher Protection Act of 2004;
``(III) which the special allowance was determined under
such subparagraphs or paragraph, as the case may be, on or
after the date of enactment of the Taxpayer-Teacher
Protection Act of 2004;
``(IV) for which the maturity date of the obligation from
which funds were obtained for such loans was extended on or
after the date of enactment of the Taxpayer-Teacher
Protection Act of 2004; or
``(V) sold or transferred to any other holder on or after
the date of enactment of the Taxpayer-Teacher Protection Act
of 2004.''.

(2) Rule of construction.--Nothing in the amendment made by
paragraph (1) shall be construed to abrogate a contractual
agreement between the Federal Government and a student loan
provider.
(b) Available Funds From Reduced Expenditures.--
(1) In general.--Any funds available to the Secretary of
Education as a result of reduced expenditures under section
438 of the Higher Education Act of 1965 (20 U.S.C. 1087-1)
secured by the enactment of subsection (a) shall first be
used by the Secretary for loan cancellation and loan
forgiveness for teachers under sections 428J and 460 of the
Higher Education Act of 1965 (20 U.S.C. 1078-10, 1087j), as
amended by section 902 of this Act.
(2) Remaining funds.--
(A) In general.--Any such funds remaining after carrying
out paragraph (1) shall be used by the Secretary of Education
to make payments to each nonprofit lender in an amount that
bears the same relation to the remaining funds as the amount
the nonprofit lender receives for fiscal year 2005 under
section 438(b)(2)(B) of the Higher Education Act of 1965 (20
U.S.C. 1087-1(b)(2)(B)) bears to the total amount received by
nonprofit lenders for fiscal year 2005 under such section.
(B) Definition of nonprofit lender.--In this paragraph the
term ``nonprofit lender'' means an eligible lender (as
defined in section 435(d) of the Higher Education Act of 1965
(20 U.S.C.1085(d)) that--
(i) is an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986;
(ii) is a nonprofit entity as defined by applicable State
law; and
(iii) meets the following requirements:

(I) The nonprofit lender does not confer a salary or
benefits to any employee of the nonprofit lender in an amount
that is in excess of the salary and benefits provided to the
Secretary of Education by the Department of Education.
(II) The nonprofit lender does not maintain an ongoing
relationship whereby the nonprofit lender passes on revenue
directly or indirectly through lease, securitization, resale,
or any other financial instrument to a for-profit entity or
to shareholders.
(III) The nonprofit lender does not offer benefits to a
borrower in a manner directly or indirectly predicated on
such borrower's participation--

(aa) in a program under part B or D of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a
et seq.); or
(bb) with any particular lender.

(IV) The nonprofit lender certifies that the nonprofit
lender uses the payment received pursuant to subparagraph (A)
to confer grant or scholarship benefits to students who are
eligible to receive Federal Pell Grants under subpart 1 of
part A of title IV of the Higher Education Act of 1965 (20
U.S.C. 1070a et seq.).
(V) The nonprofit lender is subject to public oversight
through either a State charter, or through not less than 50
percent of the nonprofit lender's board of directors
consisting of State appointed representatives.
(VI) The nonprofit lender does not engage in the marketing
of the relative value of programs under part B of title IV of
the Higher Education Act of 1965 as compared to programs
under part D of title IV of the Higher Education Act of 1965,
nor does the nonprofit lender engage in the marketing of
loans or programs offered by for-profit lenders. This
subclause shall not be construed to prohibit the nonprofit
lender from conferring basic information on lenders under
part B of title IV of the Higher Education Act of 1965 and
the related benefits offered by such nonprofit lenders.

TITLE X--MAKING COLLEGE AFFORDABLE FOR ALL STUDENTS

SEC. 1001. EXPANSION OF DEDUCTION FOR HIGHER EDUCATION
EXPENSES.

(a) Amount of Deduction.--Subsection (b) of section 222 of
the Internal Revenue Code of 1986 (relating to deduction for
qualified tuition and related expenses) is amended to read as
follows:
``(b) Limitations.--
``(1) Dollar limitations.--
``(A) In general.--Except as provided in paragraph (2), the
amount allowed as a deduction under subsection (a) with
respect to the taxpayer for any taxable year shall not exceed
the applicable dollar limit.
``(B) Applicable dollar limit.--The applicable dollar limit
for any taxable year shall be determined as follows:

Applicable
``Taxable year: dollar amount:
2005 and 2006..................................................$6,000
2007 and 2008..................................................$8,000
2009 and 2010.................................................$10,000
2011 and thereafter..........................................$12,000.
``(2) Limitation based on modified adjusted gross income.--
``(A) In general.--The amount which would (but for this
paragraph) be taken into account under subsection (a) shall
be reduced (but not below zero) by the amount determined
under subparagraph (B).
``(B) Amount of reduction.--The amount determined under
this subparagraph equals the amount which bears the same
ratio to the amount which would be so taken into account as--
``(i) the excess of--

``(I) the taxpayer's modified adjusted gross income for
such taxable year, over
``(II) $65,000 ($130,000 in the case of a joint return),
bears to

``(ii) $15,000 ($30,000 in the case of a joint return).
``(C) Modified adjusted gross income.--For purposes of this
paragraph, the term `modified adjusted gross income' means
the adjusted gross income of the taxpayer for the taxable
year determined--
``(i) without regard to this section and sections 199, 911,
931, and 933, and
``(ii) after the application of sections 86, 135, 137, 219,
221, and 469.
For purposes of the sections referred to in clause (ii),
adjusted gross income shall be determined without regard to
the deduction allowed under this section.

[[Page S183]]

``(D) Inflation adjustments.--
``(i) In general.--In the case of any taxable year
beginning in a calendar year after 2005, both of the dollar
amounts in subparagraph (B)(i)(II) shall be increased by an
amount equal to--

``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2004' for
`calendar year 1992' in subparagraph (B) thereof.

``(ii) Rounding.--If any amount as adjusted under clause
(i) is not a multiple of $50, such amount shall be rounded to
the nearest multiple of $50.''.
(b) Qualified Tuition and Related Expenses of Eligible
Students.--
(1) In general.--Section 222(a) of the Internal Revenue
Code of 1986 (relating to allowance of deduction) is amended
by inserting ``of eligible students'' after ``expenses''.
(2) Definition of eligible student.--Section 222(d) of such
Code (relating to definitions and special rules) is amended
by redesignating paragraphs (2) through (6) as paragraphs (3)
through (7), respectively, and by inserting after paragraph
(1) the following new paragraph:
``(2) Eligible student.--The term `eligible student' has
the meaning given such term by section 36(b)(3).''.
(c) Deduction Made Permanent.--Title IX of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (relating to
sunset of provisions of such Act) shall not apply to the
amendments made by section 431 of such Act.
(d) Effective Date.--The amendments made by this section
shall apply to payments made in taxable years beginning after
December 31, 2004.

SEC. 1002. CREDIT FOR INTEREST ON HIGHER EDUCATION LOANS.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
nonrefundable personal credits) is amended by inserting after
section 25B the following new section:

``SEC. 25C. INTEREST ON HIGHER EDUCATION LOANS.

``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the
interest paid by the taxpayer during the taxable year on any
qualified education loan.
``(b) Maximum Credit.--
``(1) In general.--Except as provided in paragraph (2), the
credit allowed by subsection (a) for the taxable year shall
not exceed $1,500.
``(2) Limitation based on modified adjusted gross income.--
``(A) In general.--If the modified adjusted gross income of
the taxpayer for the taxable year exceeds $50,000 ($100,000
in the case of a joint return), the amount which would (but
for this paragraph) be allowable as a credit under this
section shall be reduced (but not below zero) by the amount
which bears the same ratio to the amount which would be so
allowable as such excess bears to $20,000 ($40,000 in the
case of a joint return).
``(B) Modified adjusted gross income.--The term `modified
adjusted gross income' means adjusted gross income determined
without regard to sections 199, 222, 911, 931, and 933.
``(C) Inflation adjustment.--In the case of any taxable
year beginning after 2005, the $50,000 and $100,000 amounts
referred to in subparagraph (A) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `2004' for `1992'.
``(D) Rounding.--If any amount as adjusted under
subparagraph (C) is not a multiple of $50, such amount shall
be rounded to the nearest multiple of $50.
``(c) Dependents Not Eligible for Credit.--No credit shall
be allowed by this section to an individual for the taxable
year if a deduction under section 151 with respect to such
individual is allowed to another taxpayer for the taxable
year beginning in the calendar year in which such
individual's taxable year begins.
``(d) Limit on Period Credit Allowed.--A credit shall be
allowed under this section only with respect to interest paid
on any qualified education loan during the first 60 months
(whether or not consecutive) in which interest payments are
required. For purposes of this paragraph, any loan and all
refinancings of such loan shall be treated as 1 loan.
``(e) Definitions.--For purposes of this section--
``(1) Qualified education loan.--The term `qualified
education loan' has the meaning given such term by section
221(d)(1).
``(2) Dependent.--The term `dependent' has the meaning
given such term by section 152.
``(f) Special Rules.--
``(1) Denial of double benefit.--No credit shall be allowed
under this section for any amount taken into account for any
deduction under any other provision of this chapter.
``(2) Married couples must file joint return.--If the
taxpayer is married at the close of the taxable year, the
credit shall be allowed under subsection (a) only if the
taxpayer and the taxpayer's spouse file a joint return for
the taxable year.
``(3) Marital status.--Marital status shall be determined
in accordance with section 7703.''.
(b) Conforming Amendment.--The table of sections for
subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after
the item relating to section 25B the following new item:

``Sec. 25C. Interest on higher education loans.''.
(c) Effective Date.--The amendments made by this section
shall apply to any qualified education loan (as defined in
section 25C(e)(1) of the Internal Revenue Code of 1986, as
added by this section) incurred on, before, or after the date
of the enactment of this Act, but only with respect to any
loan interest payment due after December 31, 2004.

SEC. 1003. HOPE AND LIFETIME LEARNING CREDITS TO BE
REFUNDABLE.

(a) Credit To Be Refundable.--Section 25A of the Internal
Revenue Code of 1986 (relating to Hope and Lifetime Learning
credits) is hereby moved to subpart C of part IV of
subchapter A of chapter 1 of such Code (relating to
refundable credits) and inserted after section 35.
(b) Technical Amendments.--
(1) Section 36 of such Code is redesignated as section 37.
(2) Section 25A of such Code (as moved by subsection (a))
is redesignated as section 36.
(3) Paragraph (1) of section 36(a) of such Code (as
redesignated by paragraph (2)) is amended by striking ``this
chapter'' and inserting ``this subtitle''.
(4) Subparagraph (B) of section 72(t)(7) of such Code is
amended by striking ``section 25A(g)(2)'' and inserting
``section 36(g)(2)''.
(5) Subparagraph (A) of section 135(d)(2) of such Code is
amended by striking ``section 25A'' and inserting ``section
36''.
(6) Section 221(d) of such Code is amended--
(A) by striking ``section 25A(g)(2)'' in paragraph (2)(B)
and inserting ``section 36(g)(2)'',
(B) by striking ``section 25A(f)(2)'' in the matter
following paragraph (2)(B) and inserting ``section
36(f)(2)'', and
(C) by striking ``section 25A(b)(3)'' in paragraph (3) and
inserting ``section 36(b)(3)''.
(7) Section 222 of such Code is amended--
(A) by striking ``section 25A'' in subparagraph (A) of
subsection (c)(2) and inserting ``section 36'',
(B) by striking ``section 25A(f)'' in subsection (d)(1) and
inserting ``section 36(f)'', and
(C) by striking ``section 25A(g)(2)'' in subsection (d)(1)
and inserting ``section 36(g)(2)''.
(8) Section 529 of such Code is amended--
(A) by striking ``section 25A(g)(2)'' in subclause (I) of
subsection (c)(3)(B)(v) and inserting ``section 36(g)(2)'',
(B) by striking ``section 25A'' in subclause (II) of
subsection (c)(3)(B)(v) and inserting ``section 36'', and
(C) by striking ``section 25A(b)(3)'' in clause (i) of
subsection (e)(3)(B) and inserting ``section 36(b)(3)''.
(9) Section 530 of such Code is amended--
(A) by striking ``section 25A(g)(2)'' in subclause (I) of
subsection (d)(2)(C)(i) and inserting ``section 36(g)(2)'',
(B) by striking ``section 25A'' in subclause (II) of
subsection (d)(2)(C)(i) and inserting ``section 36'', and
(C) by striking ``section 25A(g)(2)'' in clause (iii) of
subsection (d)(4)(B) and inserting ``section 36(g)(2)''.
(10) Subsection (e) of section 6050S of such Code is
amended by striking ``section 25A'' and inserting ``section
36''.
(11) Subparagraph (J) of section 6213(g)(2) of such Code is
amended by striking ``section 25A(g)(1)'' and inserting
``section 36(g)(1)''.
(12) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``or
from section 36 of such Code''.
(13) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by striking the item relating to section 36
and inserting the following:

``Sec. 36. Hope and Lifetime Learning credits.
``Sec. 37. Overpayments of tax.''.
(14) The table of sections for subpart A of such part IV is
amended by striking the item relating to section 25A.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.
______

By Mr. KENNEDY (for himself, Mr. Reid, Ms. Stabenow, Mr. Corzine,
Mr. Schumer, Ms. Mikulski, Mr. Akaka, Mr. Inouye, Mr. Levin,
Mr. Kerry, Mr. Lautenberg, Mr. Rockefeller, Mr. Dodd, Mr.
Pryor, and Mr. Durbin):
S. 16. A bill to reduce to the cost of quality health care coverage
and improve the availability of health care coverage for all Americans;
to the Committee on Finance.
Mr. KENNEDY. Mr. President, it's an honor to join our Democratic
Leader and so many of our colleagues in introducing the Affordable
Health Care Act.
This legislation states our strong commitment as Democrats to end the
crisis in health care that affects every family. It's a down payment on
our commitment to quality, affordable health care for every American,
and we

[[Page S184]]

will not rest until that goal is achieved.
The worsening crisis in health care is caused by skyrocketing costs,
declining insurance coverage, and less security for every family.
Businesses--especially small businesses--find it increasingly difficult
to provide decent coverage for their employees. Companies struggling
with foreign competition are at an every-larger competitive
disadvantage because of their constantly rising costs.
Last year, the percentage of the Nation's gross domestic product
devoted to health was 15.5%, the highest in our history. Since 2000,
annual spending on health care has risen from $1.3 trillion to $1.7
trillion, an increase of almost half a trillion dollars in just four
years.
Even worse, insurance premiums have soared by 59 percent during those
four years. The cost of insurance for a family has risen by almost
$3,000. Last year, the cost of the premiums for family coverage
averaged $10,000, and was much higher for many families.
Drug costs are also out of control. According to current data, they
rose 47 percent in the first three years of the Bush Administration.
Too many patients are cutting the pills their doctors prescribe in half
or going without them altogether, because they can't afford the drugs
they need to treat or prevent disease.
Even Medicare premiums are out of control. The largest premium
increase in Medicare's history went into effect just three weeks ago.
Since President Bush took office, Medicare premiums have climbed by 72
percent. Senior citizens, with an average income of $15,000, now have
to pay almost $1,000 a year for their Part B premiums under Medicare.
The recent report of the Medicare trustees included the stunning
revelation that Medicare cost sharing and premiums will soon eat up
more than 40 percent of the total Social Security benefit of the
typical 85 year old.
As a proportion of Gross Domestic Product spent on health care,
America is first in the world by a large margin. We spend 30 percent
more than the Swiss who are number two, a third more than the Germans,
fifty percent more than the French and the Canadians, and seventy-eight
percent more than the Japanese.
These extraordinarily high levels of health spending might be
justified if they produced dramatically better health care for the
American people. But they don't. Among the world's leading
industrialized countries, the United States ranks 22nd in average life
expectancy and 25th in infant mortality.
We also face a worsening crisis of the uninsured. Since President
Bush took office, the number of uninsured Americans has increased by a
shameful million a year. Today, 45 million Americans have no coverage.
Between 2001 and 2004, five million jobs offering health insurance were
lost.
Even these figures understate the problem. Over a two-year period, 82
million Americans--one out of every three non-elderly Americans--will
be uninsured for a significant period of time.
Tragically, eight and a half million children are uninsured and may
well be denied the opportunity for a healthy start in life that should
be the birthright of every child. Even people who have health insurance
today cannot count on it being there for them tomorrow. No American
family is more than one pink slip or one employer decision away from
being uninsured.
The uninsured are vulnerable not only to unaffordable costs, but to
substandard or health care or no care at all. In any given year, one-
third of the uninsured go without needed medical care. Two hundred
seventy thousand children suffering from asthma never see a doctor.
Three hundred fifty thousand children with recurrent earaches never see
a doctor. Three hundred fifty thousand children with severe sore
throats never see a doctor.
Twenty-seven thousand uninsured women are diagnosed with breast
cancer each year. They are twice as likely as insured women not to
receive medical treatment until their cancer has spread too far, and
they are 50 percent more likely to die of the disease.
Thirty-two thousand Americans with heart disease go without life-
saving and life-enhancing bypass surgery or angioplasty--because they
are uninsured.
The bottom line is that whether the disease is AIDS or mental illness
or cancer or heart disease or diabetes, the uninsured are left out and
left behind. In hospital and out, young or old, black or brown or
white, they receive less care, suffer more, and are 25 percent more
likely to die prematurely than those who have insurance.
Even for those with insurance, the quality of health care is often
needlessly compromised. Recent events cast serious doubt on the FDA's
ability to respond promptly when drugs it has approved turn out to have
dangerous side effects. By some estimates, tens of thousands of
unnecessary deaths have resulted.
The lack of coordination in our system results in duplicative,
costly, and often counterproductive tests and procedures. The Midwest
Business Group on Health estimates that the cost of poor quality care
to employers providing health insurance coverage is $2,000 per worker,
and it's paid in the form of higher insurance premiums. A recent study
found that for many serious illnesses, patients are as likely to
receive substandard care as they are to receive care meeting accepted
professional standards.
In the face of this massive crisis in health care, the Administration
and Congress have been missing in action for too long. The Bush
Administration and the Republican leadership in Congress defend the
special interests that profit from the status quo and ignore the
suffering of the millions of families victimized by their neglect.
Reports suggest in fact that the Administration's new budget will
propose to cut Medicaid, which provides health care for more than 50
million of the poorest of the poor. The deficit must be addressed--but
it was created by the Administration's tax breaks for the wealthy, and
the poor and the sick should not have to bear the burden of reducing
it. That's the wrong priority and the wrong values.
The legislation we are offering today will not solve all these
problems, but it is a good start, and we are committed to finishing the
job.
The Affordable Health Care Act guarantees that every child in America
will have quality health care coverage.
It reduces health costs substantially, by making FDA-approved drugs
available at the same fair prices available to Canadians and Europeans,
rather than the inflated prices charged to U.S. patients.
It takes a giant step toward adoption of modern information
technology in health care, which has the potential to dramatically
improve the quality of care and dramatically reduce its cost--by as
much as $140 billion a year. It also improves quality by giving the FDA
additional authority to monitor the safety of approved drugs.
It addresses the special burden faced by small businesses by offering
tax credits to reduce the premiums they pay to cover their employees.
It also establishes a demonstration program in 25 cities to see if a
successful program in Michigan to expand insurance coverage for small
businesses can be replicated elsewhere. Finally, our bill includes a
sense of the Senate resolution to put Congress firmly on record against
destructive cuts in Medicaid.
Affordable health care is a high priority for every family, and it
should be an equally high priority for this Congress. We face a crisis,
and it is time to act. Senate Democrats are committed to guaranteeing
the basic right to health care for all Americans, and when we say
``all'', we mean ``all''.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 16

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Affordable
Health Care Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--MAKING PRESCRIPTION DRUGS MORE SAFE AND AFFORDABLE

Subtitle A--Access to Prescription Drugs

Sec. 101. Findings.
Sec. 102. Repeal of certain section regarding importation of
prescription drugs.
Sec. 103. Importation of prescription drugs; waiver of certain import
restrictions.

[[Page S185]]

Sec. 104. Additional waivers regarding personal importation;
enforcement policies of Secretary.
Sec. 105. Disposition of certain drugs denied admission into United
States.
Sec. 106. Civil actions regarding property.
Sec. 107. Wholesale distribution of drugs; Statements regarding prior
sale, purchase, or trade.
Sec. 108. Repeal of importation exemption under Controlled Substances
Import and Export Act.
Sec. 109. Effect on administration practices.

Subtitle B--Ensuring Drug Safety

Sec. 121. Drug safety.
Sec. 122. Report by GAO on drug safety.

TITLE II--MODERNIZING THE HEALTH CARE SYSTEM

Sec. 201. Amendment to the Public Health Service Act.
Sec. 202. Standardized measures of quality health care and data
collection.

TITLE III--MAKING HEALTH CARE MORE AFFORDABLE FOR CHILDREN AND PREGNANT
WOMEN

Subtitle A--Covering all Children

Sec. 300. Findings.

Chapter 1--Expanded Coverage of Children Under Medicaid and SCHIP

Sec. 301. State option to receive 100 percent fmap for medical
assistance for children in poverty in exchange for
expanded coverage of children in working poor families
under title XXI.
Sec. 302. Elimination of cap on SCHIP funding for States that expand
eligibility for children.

Chapter 2--State Options for Incremental Child Coverage Expansions

Sec. 311. State option to enroll low-income children of State employees
in SCHIP.
Sec. 312. State option for passive renewal of eligibility for children
under medicaid and SCHIP.

Chapter 3--Tax Incentives for Health Insurance Coverage of Children

Sec. 321. Refundable credit for health insurance coverage of children.
Sec. 322. Forfeiture of personal exemption for any child not covered by
health insurance.

Chapter 4--Miscellaneous

Sec. 331. Requirement for group market health insurers to offer
dependent coverage option for workers with children.
Sec. 332. Effective date.

Subtitle B--Covering Pregnant Women

Sec. 351. State option to expand or add coverage of pregnant women
under the medicaid program and State Children's Health
Insurance Program.
Sec. 352. Optional coverage of legal immigrants under the medicaid
program and SCHIP.
Sec. 353. Promoting cessation of tobacco use under the medicaid
program.
Sec. 354. Promoting cessation of tobacco use under the maternal and
child health services block grant program.
Sec. 355. State option to provide family planning services and supplies
to individuals with incomes that do not exceed a State's
income eligibility level for medical assistance.
Sec. 356. State option to extend the postpartum period for provision of
family planning services and supplies.
Sec. 357. State option to provide wrap-around SCHIP coverage to
children who have other health coverage.
Sec. 358. Innovative outreach programs.

Subtitle C--Affirming the Importance of Medicaid

Sec. 361. Sense of the Senate.

TITLE IV--REDUCING HEALTH CARE COSTS FOR SMALL EMPLOYERS

Subtitle A--Tax Relief

Sec. 401. Refundable credit for small business employee health
insurance expenses.

Subtitle B--Three-Share Program

Sec. 421. Three-share programs.

TITLE I--MAKING PRESCRIPTION DRUGS MORE SAFE AND AFFORDABLE

Subtitle A--Access to Prescription Drugs

SEC. 101. FINDINGS.

Congress finds that--
(1) Americans unjustly pay up to 5 times more to fill their
prescriptions than consumers in other countries;
(2) the United States is the largest market for
pharmaceuticals in the world, yet American consumers pay the
highest prices for brand pharmaceuticals in the world;
(3) a prescription drug is neither safe nor effective to an
individual who cannot afford it;
(4) allowing and structuring the importation of
prescription drugs to ensure access to safe and affordable
drugs approved by the Food and Drug Administration will
provide a level of safety to American consumers that they do
not currently enjoy;
(5) American seniors alone will spend $1,800,000,000,000 on
pharmaceuticals over the next 10 years; and
(6) allowing open pharmaceutical markets could save
American consumers at least $38,000,000,000 each year.

SEC. 102. REPEAL OF CERTAIN SECTION REGARDING IMPORTATION OF
PRESCRIPTION DRUGS.

Chapter VIII of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 381 et seq.) is amended by striking section 804.

SEC. 103. IMPORTATION OF PRESCRIPTION DRUGS; WAIVER OF
CERTAIN IMPORT RESTRICTIONS.

(a) In General.--Chapter VIII of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 381 et seq.), as amended by
section 102, is further amended by inserting after section
803 the following:

``SEC. 804. COMMERCIAL AND PERSONAL IMPORTATION OF
PRESCRIPTION DRUGS.

``(a) Importation of Prescription Drugs.--
``(1) In general.--The Secretary shall in accordance with
this section provide by regulation that, in the case of
qualifying drugs imported or offered for import into the
United States from registered exporters or by registered
importers--
``(A) the limitation on importation that is established in
section 801(d)(1) is waived; and
``(B) the standards referred to in section 801(a) regarding
admission of the drugs are subject to subsection (g) of this
section (including with respect to qualifying drugs to which
section 801(d)(1) does not apply).
``(2) Importers.--A qualifying drug may not be imported
under paragraph (1) unless--
``(A) the drug is imported by a pharmacy or a wholesaler
that is a registered importer; or
``(B) the drug is imported by an individual for personal
use or for the use of a family member of the individual (not
for resale) from a registered exporter.
``(3) Rule of construction.--This section shall apply only
with respect to a drug that is imported or offered for import
into the United States--
``(A) by a registered importer; or
``(B) from a registered exporter to an individual.
``(4) Definitions.--
``(A) Registered exporter; registered importer.--For
purposes of this section:
``(i) The term `registered exporter' means an exporter for
which a registration under subsection (b) has been approved
and is in effect.
``(ii) The term `registered importer' means a pharmacy,
group of pharmacies, or a wholesaler for which a registration
under subsection (b) has been approved and is in effect.
``(iii) The term `registration condition' means a condition
that must exist for a registration under subsection (b) to be
approved.
``(B) Qualifying drug.--For purposes of this section, the
term `qualifying drug' means a prescription drug, other than
any of the following:
``(i) A controlled substance, as defined in section 102 of
the Controlled Substances Act (21 U.S.C. 802).
``(ii) A biological product, as defined in section 351 of
the Public Health Service Act (42 U.S.C. 262).
``(iii) An infused drug, including a peritoneal dialysis
solution.
``(iv) An intravenously injected drug.
``(v) A drug that is inhaled during surgery.
``(C) Other definitions.--For purposes of this section:
``(i) The term `exporter' means a person that is in the
business of exporting a drug from Canada to individuals in
the United States or that, pursuant to submitting a
registration under subsection (b), seeks to be in such
business.
``(ii) The term `importer' means a pharmacy, a group of
pharmacies, or a wholesaler that is in the business of
importing a drug into the United States or that, pursuant to
submitting a registration under subsection (b), seeks to be
in such business.
``(iii) The term `pharmacist' means a person licensed by a
State to practice pharmacy, including the dispensing and
selling of prescription drugs.
``(iv) The term `pharmacy' means a person that--

``(I) is licensed by a State to engage in the business of
selling prescription drugs at retail; and
``(II) employs 1 or more pharmacists.

``(v) The term `prescription drug' means a drug that is
described in section 503(b)(1).
``(vi) The term `wholesaler'--

``(I) means a person licensed as a wholesaler or
distributor of prescription drugs in the United States under
section 503(e)(2)(A); and
``(II) does not include a person authorized to import drugs
under section 801(d)(1).

``(D) Permitted country.--The term `permitted country'
means--
``(i) Australia;
``(ii) Canada;
``(iii) a member country of the European Union as of
January 1, 2003;
``(iv) Japan;
``(v) New Zealand; and
``(vi) Switzerland.
``(b) Registration of Importers and Exporters.--
``(1) Registration of importers and exporters.--A
registration condition is that the importer or exporter
involved (referred to in this subsection as a `registrant')
submits to the Secretary a registration containing the
following:
``(A) The name of the registrant and an identification of
all places of business of the

[[Page S186]]

registrant that relate to qualifying drugs, including each
warehouse or other facility owned or controlled by, or
operated for, the registrant.
``(B) Such information as the Secretary determines to be
necessary to demonstrate that the registrant is in compliance
with registration conditions under--
``(i) in the case of an importer, subsections (c), (d),
(e), (g), and (j) (relating to the sources of exported drugs;
the inspection of facilities of the importer; the payment of
fees; compliance with the standards referred to in section
801(a); and maintenance of records and samples); or
``(ii) in the case of an exporter, subsections (c), (d),
(f), (g), (h), (i), and (j) (relating to the sources of
exported drugs; the inspection of facilities of the exporter
and the marking of compliant shipments; the payment of fees;
and compliance with the standards referred to in section
801(a); being licensed as a pharmacist; conditions for
individual importation from Canada; and maintenance of
records and samples).
``(C) An agreement by the registrant that the registrant
will not under subsection (a) import or export any drug that
is not a qualifying drug.
``(D) An agreement by the registrant to--
``(i) notify the Secretary of a recall or withdrawal of a
drug distributed in a permitted country that the registrant
has exported or imported, or intends to export or import, to
the United States under subsection (a);
``(ii) provide for the return to the registrant of such
drug; and
``(iii) cease, or not begin, the exportation or importation
of such drug unless the Secretary has notified the registrant
that exportation or importation of such drug may proceed.
``(E) An agreement by the registrant to ensure and monitor
compliance with each registration condition, to promptly
correct any noncompliance with such a condition, and to
promptly report to the Secretary any such noncompliance.
``(F) A plan describing the manner in which the registrant
will comply with the agreement under subparagraph (E).
``(G) An agreement by the registrant to enforce a contract
under subsection (c)(3)(B) against a party in the chain of
custody of a qualifying drug with respect to the authority of
the Secretary under clauses (ii) and (iii) of that
subsection.
``(H) An agreement by the registrant to notify the
Secretary of--
``(i) any change that the registrant intends to make
regarding information provided under subparagraph (A) or (B);
and
``(ii) any change that the registrant intends to make in
the compliance plan under subparagraph (F).
``(I) In the case of an exporter--
``(i) An agreement by the exporter that a qualifying drug
will not under subsection (a) be exported to any individual
not authorized pursuant to subsection (a)(2)(B) to be an
importer of such drug.
``(ii) An agreement to post a bond, payable to the Treasury
of the United States if, after opportunity for an informal
hearing, the Secretary determines that the exporter has
exported a drug to the United States that is not a qualifying
drug or that is not in compliance with subsections (g) or
(i), that is equal in value to the lesser of--

``(I) the value of drugs exported by the exporter to the
United States in a typical 4-week period over the course of a
year under this section; or
``(II) $1,000,000.

``(J) Such other provisions as the Secretary may require to
protect the public health while permitting--
``(i) the importation by pharmacies, groups of pharmacies,
wholesalers as registered importers of qualifying drugs under
subsection (a); and
``(ii) importation by individuals of qualifying drugs under
subsection (a).
``(2) Approval or disapproval of registration.--
``(A) In general.--Not later than 90 days after the date on
which a registrant submits to the Secretary a registration
under paragraph (1), the Secretary shall notify the
registrant whether the registration is approved or is
disapproved. The Secretary shall disapprove a registration if
there is reason to believe that the registrant is not in
compliance with one or more registration conditions, and
shall notify the registrant of such reason. In the case of a
disapproved registration, the Secretary shall subsequently
notify the registrant that the registration is approved if
the Secretary determines that the registrant is in compliance
with such conditions.
``(B) Changes in registration information.--Not later than
30 days after receiving a notice under paragraph (1)(G) from
a registrant, the Secretary shall determine whether the
change involved affects the approval of the registration of
the registrant under paragraph (1), and shall inform the
registrant of the determination.
``(3) Publication of contact information for registered
exporters.--Through the Internet website of the Food and Drug
Administration, the Secretary shall make readily available to
the public a list of registered exporters, including contact
information for the exporters. Promptly after the approval of
a registration submitted under paragraph (1), the Secretary
shall update the Internet website accordingly.
``(4) Suspension and termination.--
``(A) Suspension.--With respect to the effectiveness of a
registration submitted under paragraph (1):
``(i) Subject to clause (ii), if the Secretary determines,
after notice and opportunity for a hearing, that the
registrant has failed to maintain substantial compliance with
all registration conditions, the Secretary may suspend the
registration.
``(ii) If the Secretary determines that, under color of the
registration, the exporter has exported a drug or the
importer has imported a drug that is not a qualifying drug,
or a drug that does not meet the criteria under subsection
(g)(2)(A), or has exported a qualifying drug to an individual
in violation of subsection (i)(1)(F), the Secretary shall
immediately suspend the registration. A suspension under the
preceding sentence is not subject to the provision by the
Secretary of prior notice, and the Secretary shall provide to
the registrant an opportunity for a hearing not later than 10
days after the date on which the registration is suspended.
``(iii) The Secretary may reinstate the registration,
whether suspended under clause (i) or (ii), if the Secretary
determines that the registrant has demonstrated that further
violations of registration conditions will not occur.
``(B) Termination.--The Secretary, after notice and
opportunity for a hearing, may terminate the registration
under paragraph (1) of a registrant if the Secretary
determines that the registrant has engaged in a pattern or
practice of violating 1 or more registration conditions, or
if on 1 or more occasions the Secretary has under
subparagraph (A)(ii) suspended the registration of the
registrant. The Secretary may make the termination permanent,
or for a fixed period of not less than 1 year. During the
period in which the registration is terminated, any
registration submitted under paragraph (1) by the registrant,
or a person that is a partner in the export or import
enterprise, or a principal officer in such enterprise, and
any registration prepared with the assistance of the
registrant or such a person, has no legal effect under
this section.
``(c) Sources of Qualifying Drugs.--A registration
condition is that the exporter or importer involved agrees
that a qualifying drug will under subsection (a) be exported
or imported to the United States only if there is compliance
with the following:
``(1) The drug was manufactured in an establishment--
``(A) required to register under subsection (h) or (i) of
section 510; or
``(B) inspected by the Secretary as provided by this
section.
``(2) The establishment is located in the United States or
in any foreign country, and the establishment manufactured
the drug for distribution in the United States or for
distribution in 1 or more of the permitted countries (without
regard to whether in addition the drug was manufactured for
distribution in a foreign country that is not a permitted
country).
``(3) The exporter or importer obtained the drug--
``(A) directly from the establishment; or
``(B) directly from an entity that, by contract with the
exporter or importer--
``(i) provides to the exporter or importer a statement (in
such form and containing such information as the Secretary
may require) that, for the chain of custody from the
establishment, identifies each prior sale, purchase, or trade
of the drug (including the date of the transaction and the
names and addresses of all parties to the transaction);
``(ii) agrees to permit the Secretary to inspect such
statements and related records to determine their accuracy;
``(iii) agrees, with respect to the qualifying drugs
involved, to permit the Secretary to inspect warehouses and
other facilities of the entity for purposes of determining
whether the facilities are in compliance with any standards
under this Act that are applicable to facilities of that type
in the United States; and
``(iv) has ensured, through such contractual relationships
as may be necessary, that the Secretary has the same
authority regarding other parties in the chain of custody
from the establishment that the Secretary has under clauses
(ii) and (iii) regarding such entity.
``(4) The foreign country from which the importer will
import the drug is a permitted country.
``(5) The foreign country from which the exporter will
export the drug is Canada.
``(6) During any period in which the drug was not in the
control of the manufacturer of the drug, the drug did not
enter any country that is not a permitted country.
``(7) The exporter or importer retains a sample of each lot
of the drug sufficient for testing by the Secretary.
``(d) Inspection of Facilities; Marking of Shipments.--
``(1) Inspection of facilities.--A registration condition
is that, for the purpose of assisting the Secretary in
determining whether the exporter involved is in compliance
with all other registration conditions--
``(A) the exporter agrees to permit the Secretary--
``(i) to conduct onsite inspections, including monitoring
on a day-to-day basis, of places of business of the exporter
that relate to qualifying drugs, including each warehouse or
other facility owned or controlled by, or operated for, the
exporter;
``(ii) to have access, including on a day-to-day basis,
to--

[[Page S187]]

``(I) records of the exporter that relate to the export of
such drugs, including financial records; and
``(II) samples of such drugs;

``(iii) to carry out the duties described in paragraph (3);
and
``(iv) to carry out any other functions determined by the
Secretary to be necessary regarding the compliance of the
exporter; and
``(B) the Secretary has assigned 1 or more employees of the
Secretary to carry out the functions described in this
subsection for the Secretary not less than every 3 weeks on
the premises of places of businesses referred to in
subparagraph (A)(i), and such an assignment remains in effect
on a continuous basis.
``(2) Marking of compliant shipments.--A registration
condition is that the exporter involved agrees to affix to
each shipping container of qualifying drugs exported under
subsection (a) such markings as the Secretary determines to
be necessary to identify the shipment as being in compliance
with all registration conditions. Markings under the
preceding sentence--
``(A) shall be designed to prevent affixation of the
markings to any shipping container that is not authorized to
bear the markings; and
``(B) may include anti-counterfeiting or track-and-trace
technologies.
``(3) Certain duties relating to exporters.--Duties of the
Secretary with respect to an exporter include the following:
``(A) Verifying the chain of custody of a statistically
significant sample of qualifying drugs from the establishment
in which the drug was manufactured to the exporter, which may
be accomplished by the use of anticounterfeiting or track-
and-trace technologies, if available.
``(B) Randomly reviewing records of exports to individuals
for the purpose of determining whether the drugs are being
imported by the individuals in accordance with the conditions
under subsection (i). Such reviews shall be conducted in a
manner that will result in a statistically significant
determination of compliance with all such conditions.
``(C) Monitoring the affixing of markings under paragraph
(2).
``(D) Inspect as the Secretary determines is necessary the
warehouses and other facilities of other parties in the chain
of custody of qualifying drugs.
``(E) Determine whether the exporter is in compliance with
all other registration conditions.
``(4) Certain duties relating to importers.--Duties of the
Secretary with respect to an importer include the following:
``(A) As authorized under section 704, inspect not less
than every 3 weeks, the places of business of the importer
that relate to the receipt and distribution of a qualifying
drug, including each warehouse or other facility owned or
controlled by, or operated for, the importer at which
qualifying drugs are received or from which they are
distributed to pharmacies.
``(B) During the inspections under subparagraph (A), verify
the chain of custody of a statistically significant sample of
qualifying drugs from the establishment in which the drug was
manufactured to the importer, which may be accomplished by
the use of anticounterfeiting or track-and-trace
technologies, if available.
``(C) Inspect as the Secretary determines is necessary the
warehouses and other facilities of other parties in the chain
of custody of qualifying drugs.
``(D) Determine whether the importer is in compliance with
all other registration conditions.
``(e) Importer Fees.--
``(1) Registration fee.--A registration condition is that
the importer involved pays to the Secretary a fee of $10,000
due on the date on which the importer first submits the
registration to the Secretary under subsection (b).
``(2) Inspection fee.--A registration condition is that the
importer involved pays to the Secretary in accordance with
this subsection a fee on a semiannual basis, with the first
fee due on the date that is 6 months after the date on which
the registration of the importer under subsection (b) is
first approved by the Secretary.
``(3) Amount of inspection fee.--
``(A) Aggregate total of fees.--The Secretary shall ensure
that the aggregate total of fees collected under paragraph
(2) for a fiscal year from all importers is sufficient, and
no more than necessary, to pay the costs of administering
this section with respect to registered importers for a
fiscal year, including--
``(i) inspection of the facilities of importers under
subsection (d)(4);
``(ii) reviewing qualifying drugs offered for import to
importers; and
``(iii) determining the compliance of importers with
registration conditions.
``(B) Limitation.--The aggregate total of fees collected
under paragraph (2) shall not exceed 1 percent of the total
price of drugs imported annually to the United States by
registered importers under this section.
``(C) Individual importer fee.--Subject to the limitation
described in subparagraph (B), a fee under paragraph (2) for
an importer shall be an amount that is a reasonable estimate
by the Secretary of the semiannual share of the importer of
the volume of drugs imported by importers under this section.
``(D) Adjustment of fee.--The Secretary shall annually
adjust the fees under paragraph (2) to ensure that the fees
accurately reflect the actual costs referred to in
subparagraph (A) and do not exceed, in the aggregate, 1
percent of the total price of drugs imported annually to the
United States under this section.
``(4) Use of fees.--Subject to appropriations Acts, fees
collected by the Secretary under paragraphs (1) and (2) are
available only to the Secretary and are for the sole purpose
of paying the costs referred to in paragraph (3)(A).
``(f) Exporter Fees.--
``(1) Registration fee.--A registration condition is that
the exporter involved pays to the Secretary a fee of $10,000
due on the date on which the exporter first submits that
registration to the Secretary under subsection (b).
``(2) Inspection fee.--A registration condition is that the
exporter involved pays to the Secretary in accordance with
this subsection a fee on a semiannual basis, with the first
fee due on the date that is 6 months after the date on which
the registration of the exporter under subsection (b) is
first approved by the Secretary.
``(3) Amount of inspection fee.--
``(A) Aggregate total of fees.--The Secretary shall ensure
that the aggregate total of fees collected under paragraph
(2) for a fiscal year from all exporters is sufficient, and
not more than necessary, to pay the costs of administering
this section with respect to registered exporters for a
fiscal year, including--
``(i) monitoring foreign facilities under subsection (d);
``(ii) developing, implementing, and maintaining under such
subsection a system to mark shipments to indicate compliance
with all registration conditions; and
``(iii) conducting under such subsection inspections within
the United States to determine compliance with conditions
under subsections (h) and (i).
``(B) Limitation.--The aggregate total of fees collected
under paragraph (2) shall not exceed 1 percent of the total
price of drugs imported annually to the United States by
registered exporters under this section.
``(C) Individual exporter fee.--Subject to the limitation
described in subparagraph (B), a fee under paragraph (2) for
an exporter shall be an amount that is a reasonable estimate
by the Secretary of the semiannual share of the exporter of
the volume of drugs exported by exporters under this section.
``(D) Adjustment of fee.--The Secretary shall annually
adjust the fees under paragraph (2) to ensure that the fees
accurately reflect the actual costs referred to in
subparagraph (A) and do not exceed, in the aggregate, 1
percent of the total price of drugs imported annually to the
United States under this section.
``(4) Use of fees.--Subject to appropriations Acts, fees
collected by the Secretary under paragraphs (1) and (2) are
only available to the Secretary and are for the sole purpose
of paying the costs referred to in paragraph (3)(A).
``(g) Compliance With Section 801(a).--
``(1) In general.--A registration condition is that each
qualifying drug exported under subsection (a) by the
registered exporter involved or imported under subsection (a)
by the registered importer involved is in compliance with the
standards referred to in section 801(a) regarding admission
of the drug into the United States, subject to paragraphs
(2), (3), and (4).
``(2) Section 505; approval status.--
``(A) In general.--For purposes of administrative and
judicial procedure, there is a presumption that a drug
proposed for export or import under subsection (a) is an
approved drug under section 505(b) if the following criteria
are met:
``(i) The drug proposed for export or import is in
compliance with subsection (c).
``(ii) The drug proposed for export or import has the same
active ingredient or ingredients, route of administration,
dosage form, and strength, according to information provided
by the labeling of the drug proposed for export or import, as
a drug (referred to in this subsection as a `U.S. label
drug') that--

``(I) is manufactured by or for the person that
manufactures the drug proposed for export or import; and
``(II) is approved under section 505(b).

``(B) Importation.--Subject to subparagraphs (D) and (E), a
drug meeting the criteria described in subparagraph (A) may,
in accordance with the other subsections of this section, be
imported into the United States.
``(C) Notice by manufacturer; general provisions.--
``(i) In general.--The person that manufactures a drug that
may be imported under subsection (a) shall in accordance with
this paragraph submit to the Secretary a notice that--

``(I) includes each difference in the drug from a condition
established in the approved application for the U.S. label
drug beyond the variations provided for in the application,
any difference in labeling, the date on which the drug with
such difference was, or will be, introduced for commercial
distribution in a permitted country, and such additional
information as the Secretary may require; or
``(II) states that there is no difference in the drug from
a condition established in the approved application for the
U.S. label drug beyond the variations provided for in the
application and differences in labeling.

``(ii) Information regarding foreign government.--A notice
under clause (i)(I) shall with respect to the permitted
country that

[[Page S188]]

approved the drug for commercial distribution, or with
respect to which such approval is sought, include the
following:

``(I) Information demonstrating that the person submitting
the notice has also notified the government of the permitted
country in writing that the person is submitting to the
Secretary a notice under clause (i)(I), which notice
describes the difference in the drug from a condition
established in the approved application for the U.S. label
drug.
``(II) The information that the person submitted or will
submit to the government of the permitted country for
purposes of obtaining approval for commercial distribution of
the drug in the country which, if in a language other than
English, shall be accompanied by an English translation
verified to be complete and accurate, with the name, address,
and a brief statement of the qualifications of the person
that made the translation.

``(iii) Certifications.--The chief executive officer and
the chief medical officer of the manufacturer involved shall
each certify in the notice under clause (i) that--

``(I) the information provided in the notice is complete
and true; and

``(II) a copy of the notice has been provided to the
Federal Trade Commission and to the Assistant Attorney
General in charge of the Antitrust Division of the Department
of Justice (referred to in this subsection as the `Assistant
Attorney General').

``(iv) Fee.--If a notice submitted under clause (i)
includes a difference that would, under section 506A, require
the submission of a supplemental application if made as a
change to the U.S. label drug, the person that submits the
notice shall pay to the Secretary a fee in the same amount as
would apply if the person were paying a fee pursuant to
section 736(a)(1)(A)(ii). Subject to appropriations Acts,
fees collected by the Secretary under the preceding sentence
are available only to the Secretary and are for the sole
purpose of paying the costs of reviewing notices submitted
under clause (i).
``(v) Timing of submission of notices.--

``(I) Prior approval notices.--A notice under clause (i) to
which subparagraph (D) applies shall be submitted to the
Secretary not later than 120 days before the drug with the
difference is introduced for commercial distribution in a
permitted country, unless the country requires that
distribution of the drug with the difference begin less than
120 days after the country requires the difference.
``(II) Other approval notices.--A notice under clause (i)
to which subparagraph (E) applies shall be submitted to the
Secretary not later than the day on which the drug with the
difference is introduced for commercial distribution in a
permitted country.
``(III) Other notices.--A notice under clause (i) to which
subparagraph (F) applies shall be submitted to the Secretary
on the date that the drug is first introduced for commercial
distribution in a permitted country and annually thereafter.

``(vi) Review by secretary.--

``(I) In general.--In this paragraph, the difference in a
drug that may be imported under subsection (a) from the U.S.
label drug shall be treated by the Secretary as if it was a
manufacturing change to the U.S. label drug under section
506A.
``(II) Review by the secretary.--The Secretary shall review
and approve or disapprove the difference in a notice
submitted under clause (i), if required under section 506A,
not later than 120 days after the date on which the notice is
submitted.
``(III) Establishment inspection.--If review of such
difference would require an inspection by the Secretary of
the establishment in which the drug is manufactured, such
inspection shall be authorized by section 704.

``(vii) Publication of information on notices.--

``(I) In general.--Through the Internet website of the Food
and Drug Administration, the Secretary shall readily make
available to the public a list of notices submitted under
clause (i).
``(II) Contents.--The list under subclause (I) shall
include the date on which a notice is submitted and whether--

``(aa) a notice is under review;
``(bb) the Secretary has ordered that importation of the
drug from a permitted country cease; or
``(cc) the importation of the drug is permitted under
subsection (a).

``(III) Update.--The Secretary shall promptly update the
Internet website with any changes to the list.

``(D) Notice; drug difference requiring prior approval.--In
the case of a notice under subparagraph (C)(i) that includes
a difference that would, under section 506A(c) or
(d)(3)(B)(i), require the approval of a supplemental
application before the difference could be made to the U.S.
label drug the following shall occur:
``(i) Promptly after the notice is submitted, the Secretary
shall notify registered exporters, registered importers, the
Federal Trade Commission, and the Assistant Attorney General
that the notice has been submitted with respect to the drug
involved.
``(ii) If the Secretary has not made a determination
whether a supplemental application regarding the U.S. label
drug would be approved or disapproved by the date on which
the drug involved is to be introduced for commercial
distribution in a permitted country, the Secretary shall--

``(I) order that the importation of the drug involved from
the permitted country cease for the period in which the
Secretary completes review of the notice; and

``(II) promptly notify registered exporters, registered
importers, the Federal Trade Commission, and the Attorney
General of the order.

``(iii) If the Secretary determines that such a
supplemental application regarding the U.S. label drug would
not be approved, the Secretary shall--

``(I) order that the importation of the drug involved from
the permitted country cease, or provide that an order under
clause (ii), if any, remains in effect;
``(II) notify the permitted country that approved the drug
for commercial distribution of the determination; and
``(III) promptly notify registered exporters, registered
importers, the Federal Trade Commission, and the Assistant
Attorney General of the determination.

``(iv) If the Secretary determines that such a supplemental
application regarding the U.S. label drug would be approved,
the Secretary shall vacate the order under clause (ii), if
any, permit importation of the drug under subsection (a), and
promptly notify registered exporters, registered importers,
the Federal Trade Commission, and the Assistant Attorney
General of the determination.
``(E) Notice; drug difference not requiring prior
approval.--In the case of a notice under subparagraph (C)(i)
that includes a difference that would, under section
506A(d)(3)(B)(ii), not require the approval of a supplemental
application before the difference could be made to the U.S.
label drug the following shall occur:
``(i) During the period in which the notice is being
reviewed by the Secretary, the authority under this
subsection to import the drug involved continues in effect.
``(ii) If the Secretary determines that such a supplemental
application regarding the U.S. label drug would not be
approved, the Secretary shall order that the importation of
the drug involved from the permitted country cease, shall
notify the permitted country that approved the drug for
commercial distribution of the determination, and shall
promptly notify registered exporters, registered importers,
the Federal Trade Commission, and the Assistant Attorney
General of the determination.
``(F) Notice; drug difference not requiring approval; no
difference.--In the case of a notice under subparagraph
(C)(i) that includes a difference for which, under section
506A(d)(1)(A), a supplemental application would not be
required for the difference to be made to the U.S. label
drug, or that states that there is no difference, the
Secretary--
``(i) may not order that the importation of the drug
involved cease; and
``(ii) shall promptly notify registered exporters and
registered importers.
``(G) Differences in active ingredient, route of
administration, dosage form, or strength.--
``(i) In general.--A person who manufactures a U.S. label
drug shall submit an application under section 505(b) for a
drug that is manufactured for distribution in a permitted
country by or for the person that manufactures the U.S. label
drug if--

``(I) there is no drug for export from at least half of the
permitted countries with the same active ingredient or
ingredients, route of administration, dosage form, and
strength as the U.S. label drug; and
``(II) each active ingredient of the drug is related to an
active ingredient of the U.S. label drug, as defined in
clause (v).

``(ii) Application under section 505(b).--The application
under section 505(b) required under clause (i) shall--

``(I) request approval of the drug for the indication or
indications for which the U.S. label drug is approved under
section 505;
``(II) include the information that the person submitted to
the government of the permitted country for purposes of
obtaining approval for commercial distribution of the drug in
that country, which if in a language other than English,
shall be accompanied by an English translation verified to be
complete and accurate, with the name, address, and a brief
statement of the qualifications of the person that made the
translation;
``(III) include a right of reference to the application
under section 505(b) for the U.S. label drug; and
``(IV) include such additional information as the Secretary
may require.

``(iii) Timing of submission of application.--An
application under section 505(b) required under clause (i)
shall be submitted to the Secretary not later than the day on
which the information referred to in clause (ii)(II) is
submitted to the government of the permitted country.
``(iv) Notice of decision on application.--The Secretary
shall promptly notify registered exporters, registered
importers, the Federal Trade Commission, and the Assistant
Attorney General of a determination to approve or to
disapprove an application under section 505(b) required under
clause (i).
``(v) Related active ingredients.--For purposes of clause
(i)(II), 2 active ingredients are related if they are--

``(I) the same; or
``(II) different salts, esters, or complexes of the same
moiety.

``(3) Section 502; labeling.--
``(A) Importation by registered importer.--
``(i) In general.--In the case of a qualifying drug that is
imported or offered for import by a registered importer, such
drug

[[Page S189]]

shall be considered to be in compliance with section 502 if
the drug bears--

``(I) a copy of the labeling approved for the drug under
section 505, without regard to whether the copy bears the
trademark involved;
``(II) the name of the manufacturer and location of the
manufacturer;
``(III) the lot number assigned by the manufacturer; and
``(IV) the name, location, and registration number of the
importer.

``(ii) Request for copy of the labeling.--The Secretary
shall provide such copy to the registered importer involved,
upon request of the importer.
``(B) Importation by individual.--In the case of a
qualifying drug that is imported or offered for import by a
registered exporter to an individual, such drug shall be
considered to be in compliance with section 502 if the drug
bears a label providing the directions for use by the
consumer, and bears a copy of any special labeling that would
be required by the Secretary had the drug been dispensed by a
pharmacist in the United States, without regard to whether
the special labeling bears the trademark involved. The
Secretary shall provide to the registered exporter involved a
copy of the special labeling, upon request of the exporter.
``(4) Section 501; standards for refusing admission.--
``(A) In general.--For purposes of administrative and
judicial procedure, there is a presumption that a drug
proposed for export or import under subsection (a) is in
compliance with section 501 if the drug is in compliance with
subsection (c).
``(B) Standards for refusing admission.--A qualifying drug
exported under subsection (a) from a registered exporter or
imported by a registered importer may be refused admission
into the United States if 1 or more of the following applies:
``(i) The shipping container appears damaged in a way that
may affect the strength, quality, or purity of the drug.
``(ii) The Secretary becomes aware that--

``(I) the drug may be counterfeit;
``(II) the drug may have been prepared, packed, or held
under insanitary conditions; or
``(III) the methods used in, or the facilities or controls
used for, the manufacturing, processing, packing, or holding
of the drug do not conform to good manufacturing practice.

``(iii) The Secretary has obtained an injunction under
section 302 that prohibits the distribution of the drug in
interstate commerce.
``(iv) The Secretary has under section 505(e) withdrawn
approval of the drug.
``(v) The manufacturer of the drug has instituted a recall
of the drug.
``(vi) If the qualifying drug is exported from a registered
exporter to an individual and 1 or more of the following
applies:

``(I) The shipping container for such drug does not bear
the markings required under subsection (d)(2).
``(II) The markings on the shipping container appear to be
counterfeit.
``(III) The shipping container or markings appear to have
been tampered with.

``(h) Licensing as Pharmacist.--A registration condition is
that the exporter involved agrees that a qualifying drug will
be exported to an individual only if the Secretary has
verified that--
``(1) the exporter is authorized under Canadian law to
dispense prescription drugs; and
``(2) the exporter employs persons that are licensed under
Canadian law to dispense prescription drugs in sufficient
number to dispense safely the qualifying drugs exported by
the exporter to individuals, and the exporter assigns to
those persons responsibility for dispensing such qualifying
drugs to individuals.
``(i) Individuals; Conditions for Importation From
Canada.--
``(1) In general.--For purposes of subsection (a)(2)(B),
the importation of a qualifying drug by an individual is in
accordance with this subsection if the following conditions
are met:
``(A) The drug is accompanied by a copy of a prescription
for the drug, which prescription--
``(i) is valid under applicable Federal and State laws; and
``(ii) was issued by a practitioner who, under the law of a
State of which the individual is a resident, or in which the
individual receives care from the practitioner who issues the
prescription, is authorized to administer prescription drugs.
``(B) The drug is accompanied by a copy of the
documentation that was required under the law or regulations
of Canada as a condition of dispensing the drug to the
individual.
``(C) The copies referred to in subparagraphs (A)(i) and
(B) are marked in a manner sufficient--
``(i) to indicate that the prescription, and the equivalent
document in Canada, have been filled; and
``(ii) to prevent a duplicative filling by another
pharmacist.
``(D) The individual has provided to the registered
exporter a complete list of all drugs used by the individual
for review by the individuals who dispense the drug.
``(E) The quantity of the drug does not exceed a 90-day
supply.
``(F) The drug is not an ineligible subpart H drug. For
purposes of this section, a prescription drug is an
`ineligible subpart H drug' if the drug was approved by the
Secretary under subpart H of part 314 of title 21, Code of
Federal Regulations (relating to accelerated approval), with
restrictions under section 520 of such part to assure safe
use, and the Secretary has published in the Federal Register
a notice that the Secretary has determined that good cause
exists to prohibit the drug from being imported pursuant to
this subsection.
``(2) Notice regarding drug refused admission.--If a
registered exporter ships a drug to an individual pursuant to
subsection (a)(2)(B) and the drug is refused admission to the
United States, a written notice shall be sent to the
individual and to the exporter that informs the individual
and the exporter of such refusal and the reason for the
refusal.
``(j) Maintenance of Records and Samples.--A registration
condition is that the importer or exporter involved shall--
``(1) maintain records required under this section for not
less than 2 years; and
``(2) maintain samples of each lot of a drug required under
this section for not less than 2 years.
``(k) Drug Recalls.--
``(1) Manufacturers.--A person that manufactures a
prescription drug imported from a permitted country under
this section shall promptly inform the Secretary--
``(A) if the drug is recalled or withdrawn from the market
in a permitted country;
``(B) how the drug may be identified, including lot number;
and
``(C) the reason for the recall or withdrawal.
``(2) Secretary.--With respect to each permitted country,
the Secretary shall--
``(A) enter into an agreement with the government of the
country to receive information about recalls and withdrawals
of prescription drugs in the country; or
``(B) monitor recalls and withdrawals of prescription drugs
in the country using any information that is available to the
public in any media.
``(3) Notice.--The Secretary may notify, as appropriate,
registered exporters, registered importers, wholesalers,
pharmacies, or the public of a recall or withdrawal of a
prescription drug in a permitted country.''.
(b) Prohibited Acts.--The Federal Food, Drug, and Cosmetic
Act is amended--
(1) in section 301 (21 U.S.C. 331), by striking paragraph
(aa) and inserting the following:
``(aa)(1) The sale or trade by a pharmacist, or by a
business organization of which the pharmacist is a part, of a
qualifying drug that under section 804(a)(2)(A) was imported
by the pharmacist, other than--
``(A) a sale at retail made pursuant to dispensing the drug
to a customer of the pharmacist or organization; or
``(B) a sale or trade of the drug to a pharmacy or a
wholesaler registered to import drugs under section 804.
``(2) The sale or trade by an individual of a qualifying
drug that under section 804(a)(2)(B) was imported by the
individual.
``(3) The making of a materially false, fictitious, or
fraudulent statement or representation, or a material
omission, in a notice under clause (i) of section
804(g)(2)(C) or in an application required under section
804(g)(2)(G), or the failure to submit such a notice or
application.
``(4) The importation of a drug in violation of a
requirement under section 804.''; and
(2) in section 303(a) (21 U.S.C. 333(a)), by striking
paragraph (6) and inserting the following:
``(6) Notwithstanding subsection (a), any person that
knowingly violates section 301(aa) (3) or (4) shall be
imprisoned not more than 10 years, or fined in accordance
with title 18, United States Code, or both.''.
(c) Implementation.--
(1) Rulemaking.--
(A) In general.--
(i) Promulgation by secretary.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of
Health and Human Services shall promulgate an interim rule
for implementing section 804 of the Federal Food, Drug, and
Cosmetic Act, as added by subsection (a) of this section.
Such rule shall be developed and promulgated by the Secretary
without providing general notice of proposed rulemaking. Not
later than 1 year after the date on which the interim rule is
promulgated, the Secretary shall, in accordance with
procedures under section 553 of title 5, United States
Code, promulgate a final rule for implementing such
section 804, which may incorporate by reference provisions
of the interim rule, to the extent that such provisions
are not modified.
(ii) Effect of rules.--The rules promulgated under clause
(i) shall permit the importation of prescription drugs--

(I) from registered exporters by individuals effective on
the date of the promulgation of the interim rule;
(II) from Canada by registered importers effective on the
date of the promulgation of the interim rule; and
(III) from Australia, a member country of the European
Union as of January 1, 2003, Japan, New Zealand, or
Switzerland by registered importers on the date that is 1
year after the date of the enactment of this Act.

(B) Certain exporters.--The interim rule under subparagraph
(A) shall provide that, in the review of registrations
submitted under subsection (b) of the section 804 referred to
in such subparagraph, registrations submitted by entities in
Canada that are significant exporters of prescription drugs
to individuals in the United States as of the date of the
enactment of this Act will have priority during the period in
which the interim rule

[[Page S190]]

under subparagraph (A) is in effect. During such period, the
reference in subsection (b)(2)(A) of such section 804 to 90
days (relating to approval or disapproval of registrations)
is, as applied to such entities, deemed to be 30 days.
(C) Drugs for import from canada.--The notices with respect
to drugs to be imported from Canada that are required under
subsection (g)(2)(C)(i)(I) of such section 804 and that
require approval under subsection (g)(2)(D) or (E) of such
section 804 shall be submitted to the Secretary not later
than 30 days after the date of enactment of this Act. The
notices with respect to drugs to be imported from Canada that
are required under subsection (g)(2)(C)(i) of such section
804 and that do not require approval under subsection
(g)(2)(D) or (E) of such section 804 shall be submitted to
the Secretary not later than 90 days after the date of
enactment of this Act.
(D) Drugs for import from other countries.--The notices
with respect to drugs to be imported from Australia, a member
country of the European Union as of January 1, 2003, Japan,
New Zealand, or Switzerland that are required under
subsection (g)(2)(C)(i)(I) of such section 804 and that
require approval under subsection (g)(2)(D) or (E) of such
section 804 shall be submitted to the Secretary not later
than 180 days after the date of enactment of this Act. The
notices with respect to drugs to be imported from such
countries that are required under subsection (g)(2)(C)(i)(II)
of such section 804 and that do not require approval under
subsection (g)(2)(D) or (E) of such section 804 shall be
submitted to the Secretary not later than 270 days after the
date of enactment of this Act.
(2) Personal importation from canada.--Until the expiration
of the 60-day period beginning on the date on which the
interim rule under paragraph (1)(A) is promulgated, an
individual may import a prescription drug from Canada for
personal use or for the use of a family member of the
individual (rather than for resale), subject to compliance
with the following conditions:
(A) The drug is not--
(i) a controlled substance, as defined in section 102 of
the Controlled Substances Act (21 U.S.C. 802);
(ii) a biological product, as defined in section 351 of the
Public Health Service Act (42 U.S.C. 262);
(iii) an infused drug, including a peritoneal dialysis
solution;
(iv) an intravenously injected drug;
(v) a drug that is inhaled during surgery; or
(vi) a drug approved by the Secretary under subpart H of
part 314 of title 21, Code of Federal Regulations (relating
to accelerated approval) with restrictions under section 520
of such part to assure safe use.
(B) The drug is dispensed by a person licensed in Canada to
dispense such drugs.
(C) The drug is accompanied by a copy of the prescription
for the drug, which prescription--
(i) is valid under applicable Federal and State laws; and
(ii) was issued by a practitioner who, under the law of a
State of which the individual is a resident, or in which the
individual receives care from the practitioner who issues the
prescription, is authorized to administer prescription drugs.
(D) The drug is accompanied by a copy of the document that
was required in Canada as a condition of dispensing the drug
to the individual.
(E) The copies referred to in subparagraphs (C) and (D) are
marked in a manner sufficient--
(i) to indicate that the prescription, and the equivalent
document in Canada, have been filled; and
(ii) to prevent a duplicative filling by another
pharmacist.
(F) The quantity of the drug does not exceed a 90-day
supply.
(3) Facilitation of canadian imports.--Not less than 15
days after the enactment of this Act and until the expiration
of the 60-day period that begins on the date on which the
interim rule under paragraph (1)(A) is promulgated, the
Secretary shall, through the Internet website of the Food and
Drug Administration, make readily available to the public a
list of persons licensed in Canada to dispense prescription
drugs who are willing to export drugs under paragraph (2) to
individuals in the United States.
(4) Effect of provisions.--The amendments made in
subsection (d), section 6, and section 7 of this Act shall
have no effect with respect to imports made under paragraph
(2).
(d) Amendment of Certain Provision.--Section 801 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381) is
amended by striking subsection (g) and inserting the
following:
``(g) With respect to a prescription drug that is imported
or offered for import into the United States by an individual
who is not in the business of such importation, that is not
shipped by a registered exporter under section 804, and that
is refused admission under subsection (a), the Secretary
shall notify the individual that--
``(1) the drug has been refused admission because the drug
was not a lawful import under section 804;
``(2) the drug is not otherwise subject to a waiver of the
requirements of subsection (a);
``(3) the individual may under section 804 lawfully import
certain prescription drugs from Canadian exporters registered
with the Secretary; and
``(4) the individual can find information about such
importation, including a list of registered exporters, on the
Internet website of the Food and Drug Administration.''.
(e) Anticompetitive Practices Relating to Importing and
Exporting Drugs to the United States.--
(1) In general.--The Clayton Act (15 U.S.C. 12 et seq.) is
amended by adding at the end the following:

``SEC. 27. RESTRAINT OF TRADE REGARDING PRESCRIPTION DRUGS.

``(a) In General.--It shall be unlawful for any person
engaged in commerce, directly or indirectly to--
``(1) charge a higher price for prescription drugs sold to
a registered exporter or other person that exports
prescription drugs to the United States under section 804 of
the Federal Food, Drug, and Cosmetic Act than the price that
is charged to another person that is in the same country and
that does not export prescription drugs into the United
States under section 804 of such Act;
``(2) charge a higher price for prescription drugs sold to
a registered importer or other person that distributes,
sells, or uses prescription drugs imported to the United
States under section 804 of such Act than the price that is
charged to another person in the United States that does not
import prescription drugs under section 804 of such Act, or
that does not distribute, sell, or use such drugs;
``(3) deny supplies of prescription drugs to a registered
exporter or other person that exports prescription drugs to
the United States under section 804 of such Act or to a
registered importer or other person that distributes, sells,
or uses prescription drugs imported to the United States
under section 804 of such Act;
``(4) publicly, privately, or otherwise refuse to do
business with a registered exporter or other person that
exports prescription drugs to the United States under section
804 of such Act or with a registered importer or other person
that distributes, sells, or uses prescription drugs imported
to the United States under section 804 of such Act;
``(5) specifically restrict supplies of prescription drugs
to a registered exporter or other person that exports
prescription drugs to the United States under section 804 of
such Act or to a registered importer or other person that
distributes, sells, or uses prescription drugs imported to
the United States under section 804 of such Act;
``(6) fail to submit a notice under subsection (g)(2)(C)(i)
of section 804 of such Act, fail to submit such a notice on
or before the date specified in subsection (g)(2)(C)(v) of
section 804 of such Act, submit such a notice that makes a
materially false, fictitious, or fraudulent statement, or
fail to provide promptly any information requested by the
Secretary of Health and Human Services to review such a
notice;
``(7) fail to submit an application required under
subsection (g)(2)(G) of section 804 of such Act, fail to
submit such an application on or before the date specified in
subsection (g)(2)(G)(ii) of section 804 of such Act, submit
such an application that makes a materially false,
fictitious, or fraudulent statement, or fail to provide
promptly any information requested by the Secretary of Health
and Human Services to review such an application;
``(8) cause there to be a difference (including a
difference in active ingredient, route of administration,
dosage form, strength, formulation, manufacturing
establishment, manufacturing process, or person that
manufactures the drug) between a prescription drug for
distribution in the United States and a prescription drug for
distribution in Australia, Canada, a member country of the
European Union as of January 1, 2003, Japan, New Zealand, or
Switzerland for the purpose of restricting importation of the
drug to the United States under section 804 of such Act;
``(9) refuse to allow an inspection authorized under
section 804 of such Act of an establishment that manufactures
a prescription drug that is offered for import under such
section;
``(10) fail to conform to the methods used in, or the
facilities used for, the manufacturing, processing, packing,
or holding of a prescription drug offered for import under
section 804 to good manufacturing practice under such Act; or
``(11) engage in any other action that the Federal Trade
Commission determines to unfairly restrict competition under
section 804 of such Act.
``(b) Presumption.--A difference (including a difference in
active ingredient, route of administration, dosage form,
strength, formulation, manufacturing establishment,
manufacturing process, or person that manufactures the drug)
between a prescription drug for distribution in the United
States and a prescription drug for distribution in Australia,
Canada, a member country of the European Union as of January
1, 2003, Japan, New Zealand, or Switzerland made after
January 1, 2004, shall be presumed to be for the purpose of
restricting importation of the drug to the United States
under section 804 of the Federal Food, Drug, and Cosmetic Act
unless--
``(1) the person manufacturing the drug for distribution in
the United States proves that the difference was required by
the country in which the drug is distributed;
``(2) the Secretary of Health and Human Services, acting
through the Commissioner

[[Page S191]]

of Food and Drug, determines that the difference was
necessary to improve the safety or efficacy of the drug; or
``(3) the person manufacturing the drug for distribution in
the United States has given notice to the Secretary of Health
and Human Services under subsection (g)(2)(C)(i) of section
804 of such Act that the drug for distribution in the United
States is not different from a drug for distribution in not
fewer than half of those countries.
``(c) Affirmative Defense.--It shall be an affirmative
defense to a charge that a person has violated paragraph (1),
(2), (3), (4), or (5) of subsection (a) that the higher
prices charged for prescription drugs sold to a person, the
denial of supplies of prescription drugs to a person, the
refusal to do business with a person, or the specific
restriction or delay of supplies to a person is not based, in
whole or in part, on--
``(1) the person exporting or importing prescription drugs
to the United States under section 804 of the Federal Food,
Drug, and Cosmetic Act; or
``(2) the person distributing, selling, or using
prescription drugs imported to the United States under
section 804 of such Act.
``(d) Definitions.--In this section:
``(1) Prescription drug.--The term `prescription drug'
means a drug that is described in section 503(b)(1) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 353(b)(1)).
``(2) Registered importer.--The term `registered importer'
has the meaning given such term in section 804 of the Federal
Food, Drug, and Cosmetic Act.
``(3) Registered exporter.--The term `registered exporter'
has the same meaning as in section 804 of the Federal Food,
Drug, and Cosmetic Act.''.
(2) Applicability of amendments to importation under the
pharmaceutical market access and fair trade act of 2004.--
(A) Personal importation from canada.--Paragraphs (1)
through (5) and (11) of subsection (a) of section 27 of the
Clayton Act (15 U.S.C. et seq.) (as amended by paragraph (1))
shall apply with respect to the importation of drugs from
Canada under subsection (c)(2).
(B) Notices respecting drug for import.--Paragraph (6) of
subsection (a) of section 27 of the Clayton Act (15 U.S.C. et
seq.) (as amended by paragraph (1)) shall apply with respect
to notices required under section 804(g)(2)(C)(i) of the
Federal Food Drug and Cosmetic Act (21 U.S.C.
384(g)(2)(C)(i)) that are not submitted by the dates required
under subsections (c)(1)(C) and (D).
(f) Exhaustion.--
(1) In general.--Section 271 of title 35, United States
Code, is amended--
(A) by redesignating subsections (h) and (i) as (i) and
(j), respectively; and
(B) by inserting after subsection (g) the following:
``(h) It shall not be an act of infringement to use, offer
to sell, or sell within the United States or to import into
the United States any patented invention under section 804 of
the Federal Food, Drug, and Cosmetic Act that was first sold
abroad by or under authority of the owner or licensee of such
patent.''.
(2) Rule of construction.--Nothing in the amendment made by
paragraph (1) shall be construed to affect the ability of a
patent owner or licensee to enforce their patent, subject to
such amendment.

SEC. 104. ADDITIONAL WAIVERS REGARDING PERSONAL IMPORTATION;
ENFORCEMENT POLICIES OF SECRETARY.

(a) In General.--Section 801 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 381) is amended by adding at the end
the following:
``(p)(1) Waivers under this subsection are in addition to,
and independent of, the waiver pursuant to section
804(a)(2)(B).
``(2) With respect to the standards referred to in
subsection (d)(1), the Secretary shall establish by
regulation a waiver of such standards in the case of the
importation by an individual of a drug into the United States
in the following circumstances:
``(A) The drug was dispensed to the individual while the
individual was in the United States, the drug was dispensed
by a pharmacist or by a practitioner licensed by law to
administer the drug, and the individual traveled from the
United States with the drug.
``(B) The individual is entering the United States and the
drug accompanies the individual at the time of entry.
``(C) The drug does not appear to the Secretary to be
adulterated.
``(D) The quantity of the drug does not exceed a 90-day
supply.
``(E) The drug is accompanied by a statement that the
individual seeks to import the drug into the United States
under a personal importation waiver.
``(F) Such additional standards as the Secretary determines
to be appropriate to protect the public health.
``(3) With respect to the standards referred to in
subsections (a) and (d)(1), the Secretary shall establish by
regulation a waiver of such standards in the case of the
importation by an individual of a drug into the United States
in the following circumstances:
``(A) The drug was dispensed to the individual while the
individual was in a foreign country, and the drug was
dispensed in accordance with the laws and regulations of such
country.
``(B) The individual is entering the United States and the
drug accompanies the individual at the time of entry.
``(C) The drug is approved for commercial distribution in
the foreign country in which the drug was obtained.
``(D) The drug does not appear to the Secretary to be
adulterated.
``(E) The quantity of the drug does not exceed--
``(i) a 90-day supply if the drug is dispensed in
Australia, Canada, a member country of the European Union as
of January 1, 2003, Japan, New Zealand, or Switzerland; or
``(ii) a 14-day supply otherwise.
``(F) The drug is accompanied by a statement that the
individual seeks to import the drug into the United States
under a personal importation waiver.
``(G) Such additional standards as the Secretary determines
to be appropriate to protect the public health.
``(q) The Secretary may not administer any enforcement
policy that has the effect of permitting the importation of a
prescription drug into the United States in violation of this
Act or section 351 of the Public Health Service Act.''.
(b) Additional Waiver.--This Act and the amendments made by
this Act shall not be construed as limiting the authority of
the Secretary of Health and Human Services to establish a
waiver of the standards referred to in section 801(a) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381(a)) with
respect to the importation by an individual of a drug into
the United States that does not meet such standards, provided
that such waiver is no more permissive than the guidance, as
in effect on January 1, 2004, that is provided in the item
numbered 2 (relating to a specific situation, consisting of
conditions (a) through (d)) under the heading ``Drugs,
Biologics, and Devices'' in chapter 9 of the FDA/ORA
Regulatory Procedures Manual (relating to import operations/
actions), in the subchapter relating to coverage of personal
importations.

SEC. 105. DISPOSITION OF CERTAIN DRUGS DENIED ADMISSION INTO
UNITED STATES.

(a) In General.--Chapter VIII of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 381 et seq.), as amended by
section 102, is further amended by adding at the end the
following section:

``SEC. 805. DISPOSITION OF CERTAIN DRUGS DENIED ADMISSION.

``(a) In General.--The Secretary of Homeland Security shall
refuse admission to a shipment of drugs that is imported or
offered for import into the United States if the shipment has
a declared value of less than $10,000 and the drugs are in
violation of any standard referred to in section 801(a) or
801(d)(1), including any drugs imported or offered for import
under enforcement policies prohibited under section 801(q).
``(b) Importation Under Section 804.--In the case of a drug
that under section 804 is imported or offered for import from
a registered exporter, the reference in subsection (a) to
standards referred to in section 801(a) or 801(d)(1) shall be
considered a reference to standards referred to in section
804(g)(4)(B).
``(c) Destruction of Violative Shipments.--Drugs refused
admission under subsection (a) or (b) shall be destroyed,
subject to subsection (e). Section 801(b) does not authorize
the delivery of the drugs pursuant to the execution of a
bond, and the drugs may not be exported.
``(d) Certain Procedures.--
``(1) In general.--The refusal of admission and destruction
of drugs under this section may be carried out without notice
to the importer, owner, or consignee of the drugs except as
required by section 801(g) or section 804(i)(2). The issuance
of receipts for the drugs, and recordkeeping activities
regarding the drugs, may be carried out on a summary basis.
``(2) Objective of procedures.--Procedures promulgated
under paragraph (1) shall be designed toward the objective of
ensuring that, with respect to efficiently utilizing Federal
resources available for carrying out this section, a
substantial majority of shipments of drugs subject to
subsection (a) or (b) are identified and refused admission
and destroyed.
``(e) Evidence Exception.--Drugs may not be destroyed under
subsection (c) to the extent that the Attorney General of the
United States determines that the drugs should be preserved
as evidence or potential evidence with respect to an offense
against the United States.
``(f) Rule of Construction.--This section may not be
construed as having any legal effect on applicable law with
respect to a shipment of drugs that is imported or offered
for import into the United States and has a declared value
equal to or greater than $10,000.''.
(b) Procedures.--Procedures for carrying out section 805 of
the Federal Food, Drug, and Cosmetic Act, as added by
subsection (a), shall be established not later than 90 days
after the date of the enactment of this Act.

SEC. 106. CIVIL ACTIONS REGARDING PROPERTY.

Section 303 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 333) is amended by adding at the end the following
subsection:
``(g)(1) If a person is alienating or disposing of
property, or intends to alienate or dispose of property, that
is obtained as a result of or is traceable to a drug imported
in violation of section 801(a) or 801(d), the Attorney
General may commence a civil action in any Federal court--
``(A) to enjoin such alienation or disposition of property;
or
``(B) for a restraining order to--

[[Page S192]]

``(i) prohibit any person from withdrawing, transferring,
removing, dissipating, or disposing of any such property or
property of equivalent value; and
``(ii) appoint a temporary receiver to administer such
restraining order.
``(2) Proceedings under paragraph (1) shall be carried out
in the same manner as applies under section 1345 of title 18,
United States Code.''.

SEC. 107. WHOLESALE DISTRIBUTION OF DRUGS; STATEMENTS
REGARDING PRIOR SALE, PURCHASE, OR TRADE.

(a) Striking of Exemptions; Applicability to Registered
Exporters.--Section 503(e) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 353(e)) is amended--
(1) in paragraph (1)--
(A) by striking ``and who is not the manufacturer or an
authorized distributor of record of such drug'';
(B) by striking ``to an authorized distributor of record
or''; and
(C) by striking subparagraph (B) and inserting the
following:
``(B) The fact that a drug subject to subsection (b) is
exported from the United States does not with respect to such
drug exempt any person that is engaged in the business of the
wholesale distribution of the drug from providing the
statement described in subparagraph (A) to the person that
receives the drug pursuant to the export of the drug.
``(C)(i) The Secretary may by regulation establish
requirements that supersede subparagraph (A) (referred to in
this subparagraph as `alternative requirements') to identify
the chain of custody of a drug subject to subsection (b) from
the manufacturer of the drug throughout the wholesale
distribution of the drug to a pharmacist who intends to sell
the drug at retail if the Secretary determines that the
alternative requirements, which may include anti-
counterfeiting or track-and-trace technologies, will identify
such chain of custody or the identity of the drug with equal
certainty to the requirements of subparagraph (A), and that
the alternative requirements are economically and technically
feasible.
``(ii) If the Secretary promulgates a final rule to
establish such alternative requirements, the final rule in
addition shall, with respect to the registration condition
established in clause (i) of section 804(c)(3)(B), establish
a condition equivalent to the alternative requirements, and
such equivalent condition supersedes such clause (i).'';
(2) in paragraph (2)(A), by adding at the end the
following: ``The preceding sentence may not be construed as
having any applicability with respect to a registered
exporter under section 804.''; and
(3) in paragraph (3), by striking ``and subsection (d)--''
in the matter preceding subparagraph (A) and all that follows
through ``the term `wholesale distribution' means'' in
subparagraph (B) and inserting the following: ``and
subsection (d), the term `wholesale distribution' means''.
(b) Conforming Amendment.--Section 503(d) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 353(d)) is amended by
adding at the end the following:
``(4) Each manufacturer of a drug subject to subsection (b)
shall maintain at its corporate offices a current list of the
authorized distributors of record of such drug.
``(5) For purposes of this subsection, the term `authorized
distributors of record' means those distributors with whom a
manufacturer has established an ongoing relationship to
distribute such manufacturer's products.''.

SEC. 108. REPEAL OF IMPORTATION EXEMPTION UNDER CONTROLLED
SUBSTANCES IMPORT AND EXPORT ACT.

Section 1006 of the Controlled Substances Import and Export
Act (21 U.S.C. 956) is repealed.

SEC. 109. EFFECT ON ADMINISTRATION PRACTICES.

Notwithstanding any provision of this Act (and the
amendments made by this Act), nothing in this Act (or the
amendments made by this Act) shall be construed to change,
limit, or restrict the practices of the Food and Drug
Administration or the Bureau of Customs and Border Protection
in effect on January 1, 2004, with respect to the importation
of prescription drugs into the United States by an
individual, on the person of such individual, for personal
use.

Subtitle B--Ensuring Drug Safety

SEC. 121. DRUG SAFETY.

(a) In General.--Chapter V of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 351 et seq.) is amended by inserting
after section 506C the following:

``SEC. 507. DRUG SAFETY.

``(a) Phase IV Studies.--
``(1) In general.--The Secretary may require that the
sponsor of a drug that is approved or licensed under section
505(c) or under section 351 of the Public Health Service Act
conduct one or more studies, to be completed by a date after
approval or licensing of such drug specified by the
Secretary, that confirms or refutes an empirical or
theoretical hypothesis of a significant safety issue with the
drug, raised with respect to the drug or the class of the
drug, found in--
``(A) the MedWatch post-market surveillance system;
``(B) a clinical or epidemiological study; or
``(C) the scientific literature.
``(b) Supplements.--The sponsor of a drug that is approved
or licensed under section 505(c) or under section 351 of the
Public Health Service Act shall promptly submit the results
of a study required under subsection (a) as a supplement to
the application for the drug.
``(c) Public Disclosure.--The Secretary shall, not less
than every quarter, make public each study required under
subsection (a), including a description of, and the reason
for, the study, the required completion date, and whether the
study has been completed, through--
``(1) a notice in the Federal Register; and
``(2) a database that shall be readily accessible to the
public through the Internet site of the Food and Drug
Administration.
``(d) Civil Penalties.--
``(1) In general.--The Secretary may order the sponsor of a
drug that is approved or licensed under section 505(c) or
under section 351 of the Public Health Service Act to pay a
civil penalty, subject to paragraph (2), if, after providing
an opportunity for an informal hearing, the Secretary
determines that--
``(A) the sponsor has failed to complete a study required
under subsection (a) by the date specified by the Secretary;
and
``(B) there is no legitimate reason for such failure.
``(2) Amount of penalties.--The civil penalty order under
paragraph (1) may be assessed for each day the completion of
a required study of a drug is delayed in an amount that is
not more than 3 times the gross revenue received by the
sponsor for the average sales of the drug in a day.
``(3) Records relating to gross revenue.--When provided an
opportunity for an informal hearing under paragraph (1), a
drug sponsor shall provide to the Secretary all records
relating to the gross revenues received by the sponsor for
average sales of the drug in a day.
``(4) Procedure.--The provisions of paragraphs (3) (other
than subparagraph (A)), (4), and (5) of section 303(f) shall
apply to a violation under subsection (a) in the same manner
as such provisions apply to a violation of a requirement of
this Act that relates to devices.''.
(b) Resources.--In addition to fees that may be available
to the Office of Drug Safety under sections 735 and 736 of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 379g and
379h), there is authorized to be appropriated for the Office
of Drug Safety within the Center for Drug Evaluation and
Research of the Food and Drug Administration--
(1) $30,000,000 for fiscal year 2006;
(2) $40,000,0000 for fiscal year 2007;
(3) $50,000,000 for fiscal year 2008;
(4) $60,000,000 for fiscal year 2009; and
(5) $70,00,000 for fiscal year 2010.

SEC. 122. REPORT BY GAO ON DRUG SAFETY.

(a) In General.--The Government Accountability Office shall
provide for the conduct of a study concerning measures to
increase the safety of prescription drugs, including--
(1) whether Federal funding levels are adequate to ensure
drug safety and whether the uncertainty associated with the
Federal budgetary process hampers planning;
(2) whether the lack of permanent leadership at the Food
and Drug Administration has contributed to problems in
decisionmaking and in transmitting information to the public
concerning the safety of drugs;
(3) whether prolonged and rampant vacancies within the Food
and Drug Administration have contributed to the ability of
the Food and Drug Administration to properly examine drug
safety;
(4) whether conflicts of interest exist that unduly bias
approvals or later reviews of drug safety;
(5) whether employees of the Food and Drug Administration
have been improperly threatened or face any barriers to
raising concerns about drug safety;
(6) whether the procedure of the Food and Drug
Administration for notifying the public of possible drug
safety issues is appropriate and complied with;
(7) whether further measures or authorities are necessary
to ensure the safety of drugs; and
(8) other matters determined appropriate.
(b) Report.--Not later than 90 days after the date of
enactment of this Act, the Government Accountability Office
shall prepare and submit to the appropriate committees of
Congress a report concerning the results of the study
conducted under subsection (a). Such report shall include a
proposal (including legislative language) for improving the
safety of prescription drugs.

TITLE II--MODERNIZING THE HEALTH CARE SYSTEM

SEC. 201. AMENDMENT TO THE PUBLIC HEALTH SERVICE ACT.

The Public Health Service Act (42 U.S.C. 201 et seq.) is
amended by adding at the end thereof the following:

``TITLE XXIX--HEALTH CARE INFORMATION TECHNOLOGY

``SEC. 2901. DEFINITIONS.

``In this title:
``(1) Coverage area.--The term `coverage area' means the
boundaries of a local health information infrastructure.
``(2) Director.--The term `Director' means the Director of
the Office of Health Information Technology.
``(3) Health care provider.--The term `health care
provider' means a hospital, skilled nursing facility, home
health entity, health care clinic, community health center,
group practice (as defined in section

[[Page S193]]

1877(h)(4) of the Social Security Act, including practices
with only 1 physician), and any other facility or clinician
determined appropriate by the Director.
``(4) Health information technology.--The term `health
information technology' means a computerized system that--
``(A) is consistent with the standards developed pursuant
to section 2903;
``(B) permits the secure electronic transmission of
information to other health care providers and public health
entities; and
``(C) includes--
``(i) an electronic health record (EHR) that provides
access in real-time to the patient's complete medical record;
``(ii) a personal health record (PHR) through which an
individual (and anyone authorized by such individual) can
maintain and manage their health information;
``(iii) computerized provider order entry (CPOE) technology
that permits the electronic ordering of diagnostic and
treatment services, including prescription drugs;
``(iv) decision support to assist physicians in making
clinical decisions by providing electronic alerts and
reminders to improve compliance with best practices, promote
regular screenings and other preventive practices, and
facilitate diagnoses and treatments;
``(v) error notification procedures so that a warning is
generated if an order is entered that is likely to lead to a
significant adverse outcome for the patient; and
``(vi) tools to allow for the collection, analysis, and
reporting of data on adverse events, near misses, and the
quality of care provided to the patient.
``(5) Local health information infrastructures.--The term
`local health information infrastructure' means an
independent organization of health care entities established
for the purpose of linking health information systems to
electronically shared information. A local health information
infrastructure may not be a single business entity.
``(6) Office.--The term `Office' means the Office of Health
Information Technology established under section 2902.

``SEC. 2902. OFFICE OF HEALTH INFORMATION TECHNOLOGY.

``(a) Establishment.--There is established within the
executive office of the President an Office of Health
Information Technology. The Office shall be headed by a
Director to be appointed by the President. The Director shall
report directly to the President.
``(b) Purpose.--It shall be the purpose of the Office to--
``(1) improve the quality and increase the efficiency of
health care delivery through the use of health information
technology;
``(2) provide national leadership relating to, and
encourage the adoption of, health information technology;
``(3) direct all health information technology activities
within the Federal Government; and
``(4) facilitate the interaction between the Federal
Government and the private sector relating to health
information technology development and use.
``(c) Duties and Responsibilities.--The Office shall be
responsible for the following:
``(1) National strategy.--The Office shall develop a
national strategy for improving the quality and enhancing the
efficiency of health care through the improved use of health
information technology and the creation of a National Health
Information Infrastructure.
``(2) Federal leadership.--The Office shall--
``(A) serve as the principle advisor to the President
concerning health information technology;
``(B) direct all health information technology activity
within the Federal Government, including approving or
disapproving agency policies submitted under paragraph (3);
``(C) work with public and private health information
technology stakeholders to implement the national strategy
described in paragraph (1); and
``(D) ensure that health information technology is utilized
as fully as practicable in carrying out health surveillance
efforts.
``(3) Agency policies.--
``(A) In general.--The Office shall, in accordance with
this paragraph, approve or disapprove the policies of Federal
departments or agencies with respect to any policy proposed
to be implemented by such agency or department that would
significantly affect that agency or department's use of
health information technology.
``(B) Submission of proposal.--The head of any Federal
Government agency or department that desires to implement any
policy with respect to such agency or department that would
significantly affect that agency or department's use of
health information technology shall submit an implementation
proposal to the Office at least 60 days prior to the proposed
date of the implementation of such policy.
``(C) Approval or disapproval.--Not later than 60 days
after the date on which a proposal is received under
subparagraph (B), the Office shall determine whether to
approve the implementation of such proposal. In making such
determination, the Office shall consider whether the proposal
is consistent with the national strategy described in
paragraph (1). If the Office fails to make a determination
within such 60-day period, such proposal shall be deemed to
be approved.
``(D) Failure to approve.--Except as otherwise provided for
by law, a proposal submitted under subparagraph (B) may not
be implemented unless such proposal is approved or deemed to
be approved under subparagraph (C).
``(4) Coordination.--The Office shall--
``(A) encourage the development and adoption of clinical,
messaging, and decision support health information data
standards, pursuant to the requirements of section 2903;
``(B) ensure the maintenance and implementation of the data
standards described in subparagraph (A);
``(C) oversee and coordinate the health information
technology efforts of the Federal Government;
``(D) ensure the compliance of the Federal Government with
Federally adopted health information technology data
standards;
``(E) ensure that the Federal Government consults and
collaborates on decision making with respect to health
information technology with the private sector and other
interested parties; and
``(F) in consultation with private sector, adopt
certification and testing criteria to determine if electronic
health information systems interoperate.
``(5) Communication.--The Office shall--
``(A) act as the point of contact for the private sector
with respect to the use of health information technology; and
``(B) work with the private sector to collect and
disseminate best health information technology practices.
``(6) Evaluation and dissemination.--The Office shall
coordinate with the Agency for Health Research and Quality
and other Federal agencies to--
``(A) evaluate and disseminate information relating to
evidence of the costs and benefits of health information
technology and to whom those costs and benefits accrue;
``(B) evaluate and disseminate information on the impact of
health information technology on the quality and efficiency
of patient care; and
``(C) review Federal payment structures and differentials
for health care providers that utilize health information
technology systems.
``(7) Technical assistance.--The Office shall utilize
existing private sector quality improvement organizations
to--
``(A) promote the adoption of health information technology
among healthcare providers; and
``(B) provide technical assistance concerning the
implementation of health information technology to healthcare
providers.
``(8) Federal reimbursement.--
``(A) In general.--Not later than 6 months after the date
of enactment of this title, the Office shall make
recommendations to the President and the Secretary of Health
and Human Services on changes to Federal reimbursement and
payment structures that would encourage the adoption of
information technology (IT) to improve health care quality
and safety.
``(B) Plan.--Not later than 90 days after receiving
recommendations under subparagraph (A), the Secretary shall
provide to the relevant Committees of Congress a report that
provides, with respect to each recommendation, a plan for the
implementation, or an explanation as to why implementation is
inadvisable, of such recommendations. The Office shall
continue to monitor federally funded and
supported information technology and quality initiatives
(including the initiatives authorized in this title), and
periodically update recommendations to the President and
the Secretary.
``(d) Resources.--The President shall make available to the
Office, the resources, both financial and otherwise,
necessary to enable the Director to carry out the purposes
of, and perform the duties and responsibilities of the Office
under, this section.
``(e) Detail of Federal Employees.--Upon the request of the
Director, the head of any Federal agency is authorized to
detail, without reimbursement from the Office, any of the
personnel of such agency to the Office to assist it in
carrying out its duties under this section. Any such detail
shall not interrupt or otherwise affect the civil service
status or privileges of the Federal employee.

``SEC. 2903. PROMOTING THE INTEROPERABILITY OF HEALTH CARE
INFORMATION TECHNOLOGY SYSTEMS.

``(a) Development, and Federal Government Adoption, of
Standards.--
``(1) Adoption.--
``(A) In general.--Not later than 2 years after the date of
the enactment of this title, the Director, in collaboration
with the Consolidated Health Informatics Initiative (or a
successor organization to such Initiative), shall provide for
the adoption by the Federal Government of national data and
communication health information technology standards that
promote the efficient exchange of data between varieties of
provider health information technology systems. In carrying
out the preceding sentence, the Director may adopt existing
standards. Except as otherwise provided for in this title,
standards adopted under this section shall be voluntary for
private sector entities.
``(B) Grants or contracts.--The Director may utilize grants
or contracts to provide for the private sector development of
standards for adoption by the Federal Government under
subparagraph (A).
``(C) Definition.--In this paragraph, the term `provide
for' means that the Director shall promulgate, and each
Federal agency or department shall adopt, regulations to
ensure that each such agency or department complies with the
requirements of subsection (b).

[[Page S194]]

``(2) Requirements.--The standards developed and adopted
under paragraph (1) shall be designed to--
``(A) enable health information technology to be used for
the collection and use of clinically specific data;
``(B) promote the interoperability of health care
information across health care settings;
``(C) facilitate clinical decision support through the use
of health information technology; and
``(D) ensure the privacy and confidentiality of medical
records.
``(3) Public private partnership.--Consistent with
activities being carried out on the date of enactment of this
title, including the Consolidated Health Informatics
Initiative (or a successor organization to such Initiative),
health information technology standards shall be adopted by
the Director under paragraph (1) at the conclusion of a
collaborative process that includes consultation between the
Federal Government and private sector health care and
information technology stakeholders.
``(4) Privacy and security.--The regulations promulgated by
the Secretary under part C of title XI of the Social Security
Act (42 U.S.C. 1320d et seq.) and sections 261, 262, 263, and
264 of the Health Insurance Portability and Accountability
Act of 1996 (42 U.S.C. 1320d-2 note) with respect to the
privacy, confidentiality, and security of health information
shall apply to the implementation of programs and activities
under this title.
``(5) Pilot tests.--To the extent practical, the Director
shall pilot test the health information technology data
standards developed under paragraph (1) prior to their
implementation under this section.
``(6) Dissemination.--
``(A) In general.--The Director shall ensure that the
standards adopted under paragraph (1) are widely disseminated
to interested stakeholders.
``(B) Licensing.--To facilitate the dissemination and
implementation of the standards developed and adopted under
paragraph (1), the Director may license such standards, or
utilize other means, to ensure the widespread use of such
standards.
``(b) Implementation of Standards.--
``(1) Purchase of systems by the secretary.--Effective
beginning on the date that is 1 year after the adoption of
the technology standards pursuant to subsection (a), the
Secretary shall not purchase any health care information
technology system unless such system is in compliance with
the standards adopted under subsection (a), nor shall the
Director approve any proposal pursuant to section 2902(c)(3)
unless such proposal utilizes systems that are in compliance
with the standards adopted under subsection (a).
``(2) Recipients of federal funds.--Effective on the date
described in paragraph (1), no appropriated funds may be used
to purchase a health care information technology system
unless such system is in compliance with applicable standards
adopted under subsection (a).
``(c) Modification of Standards.--The Director shall
provide for ongoing oversight of the health information
technology standards developed under subsection (a) to--
``(1) identify gaps or other shortcomings in such
standards; and
``(2) modify such standards when determined appropriate or
develop additional standards, in collaboration with standard
setting organizations.

``SEC. 2904. LOAN GUARANTEES FOR THE ADOPTION OF HEALTH
INFORMATION TECHNOLOGY.

``(a) In General.--The Director shall guarantee payment of
the principal of and the interest on loans made to eligible
entities to enable such entities--
``(1) to implement local health information infrastructures
to facilitate the development of interoperability across
health care settings to improve quality and efficiency; or
``(2) to facilitate the purchase and adoption of health
information technology to improve quality and efficiency.
``(b) Eligibility.--To be eligible to receive a loan
guarantee under subsection (a) an entity shall--
``(1) with respect to an entity desiring a loan guarantee--
``(A) under subsection (a)(1), be a coalition of entities
that represent an independent consortium of health care
stakeholders within a community that--
``(i) includes--

``(I) physicians (as defined in section 1881(r)(1) of the
Social Security Act);
``(II) hospitals; and
``(III) group health plans or other health insurance
issuers (as such terms are defined in section 2791); and

``(ii) may include any other health care providers; or
``(B) under subsection (a)(2) be a health care provider;
``(2) to the extent practicable, adopt the national health
information technology standards adopted under section 2903;
``(3) provide assurances that the entity shall submit to
the Director regular reports on the activities carried out
under the loan guarantee, including--
``(A) a description of the financial costs and benefits of
the project involved and of the entities to which such costs
and benefits accrue;
``(B) a description of the impact of the project on health
care quality and safety; and
``(C) a description of any reduction in duplicative or
unnecessary care as a result of the project involved;
``(4) provide assurances that not later than 30 days after
the development of the standard quality measures pursuant to
section 2906, the entity shall submit to the Director regular
reports on such measures, including provider level data and
analysis of the impact of information technology on such
measures;
``(5) prepare and submit to the Director an application at
such time, in such manner, and containing such information as
the Director may require.
``(c) Use of Funds.--Amounts received under a loan
guarantee under subsection (a) shall be used--
``(1) with respect to a loan guarantee described in
subsection (a)(1)--
``(A) to develop a plan for the implementation of a local
health information infrastructure under this section;
``(B) to establish systems for the sharing of data in
accordance with the national health information technology
standards developed under section 2903;
``(C) to purchase directly related integrated hardware and
software to establish an interoperable health information
technology system that is capable of linking to a local
health care information infrastructure; and
``(D) to train staff, maintain health information
technology systems, and maintain adequate security and
privacy protocols;
``(2) with respect to a loan guarantee described in
subsection (a)(2)--
``(A) to develop a plan for the purchase and installation
of health information technology;
``(B) to purchase directly related integrated hardware and
software to establish an interoperable health information
technology system that is capable of linking to a national or
local health care information infrastructure; and
``(C) to train staff, maintain health information
technology systems, and maintain adequate security and
privacy protocols; and
``(3) to carry out any other activities determined
appropriate by the Director.
``(d) Special Considerations for Certain Entities.--In
awarding loan guarantees under this section, the Director
shall give special consideration to eligible entities that--
``(1) provide service to low-income and underserved
populations; and
``(2) agree to electronically submit the information
described in paragraphs (3) and (4) of subsection (b) on a
daily basis.
``(e) Special Considerations for Local Health Information
Infrastructures.--In awarding loan guarantees under this
section to local health information infrastructures, the
Director shall give special consideration to eligible
entities that--
``(1) include at least 50 percent of the patients living in
the designated coverage area;
``(2) incorporate public health surveillance and reporting
into the overall architecture of the proposed infrastructure;
and
``(3) link local health information infrastructures.
``(f) Areas of Specific Interest.--In awarding loan
guarantees under this section, the Director shall include--
``(1) entities with a coverage area that includes an entire
State; and
``(2) entities with a multi-state coverage area.
``(g) Administrative Provisions.--
``(1) Aggregate amount.--
``(A) In general.--Except as provided in subparagraph (B),
the aggregate amount of principal of loans guaranteed under
subsection (a) with respect to an eligible entity may not
exceed $5,000,000. In any 12-month period the amount
disbursed to an eligible entity under this section (by a
lender under a guaranteed loan) may not exceed $5,000,000.
``(B) Exception.--The cumulative total of the principal of
the loans outstanding at any time to which guarantees have
been issued under subsection (a) may not exceed such
limitations as may be specified in appropriation Acts.
``(2) Protection of federal government.--
``(A) In general.--The Director may not approve an
application for a loan guarantee under this section unless
the Director determines that--
``(i) the terms, conditions, security (if any), and
schedule and amount of repayments with respect to the loan
are sufficient to protect the financial interests of the
United States and are otherwise reasonable, including a
determination that the rate of interest does not exceed such
percent per annum on the principal obligation outstanding as
the Director determines to be reasonable, taking into account
the range of interest rates prevailing in the private market
for loans with similar maturities, terms, conditions, and
security and the risks assumed by the United States; and
``(ii) the loan would not be available on reasonable terms
and conditions without the enactment of this section.
``(B) Recovery.--
``(i) In general.--The United States shall be entitled to
recover from the applicant for a loan guarantee under this
section the amount of any payment made pursuant to such loan
guarantee, unless the Director for good cause waives such
right of recovery, and, upon making any such payment, the
United States shall be subrogated to all of the rights of the
recipient of the payments with respect to which the loan was
made.

[[Page S195]]

``(ii) Modification of terms.--Any terms and conditions
applicable to a loan guarantee under this section may be
modified by the Director to the extent the Director
determines it to be consistent with the financial interest of
the United States.
``(3) Defaults.--The Director may take such action as the
Director deems appropriate to protect the interest of the
United States in the event of a default on a loan guaranteed
under this section, including taking possession of, holding,
and using real property pledged as security for such a loan
guarantee.
``(h) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section, such sums as may be necessary for
each of fiscal years 2006 through 2011.
``(2) Availability.--Amounts appropriated under
subparagraph (A) shall remain available for obligation until
expended.

``SEC. 2905. GRANTS FOR THE PURCHASE OF HEALTH INFORMATION
TECHNOLOGY.

``(a) In General.--The Director may award competitive
grants to eligible entities--
``(1) to implement local health information infrastructures
to facilitate the development of interoperability across
health care settings; or
``(2) to facilitate the purchase and adoption of health
information technology.
``(b) Eligibility.--To be eligible to receive a grant under
subsection (a) an entity shall--
``(1) demonstrate financial need to the Director;
``(2) with respect to an entity desiring a grant--
``(A) under subsection (a)(1), represent an independent
consortium of health care stakeholders within a community
that--
``(i) includes--

``(ii) may include any other health care providers; or
``(B) under subsection (a)(2) be a health care provider
that provides health care services to low-income and
underserved populations;
``(3) adopt the national health information technology
standards developed under section 2903;
``(4) provide assurances that the entity shall submit to
the Director regular reports on the activities carried out
under the loan guarantee, including--
``(A) a description of the financial costs and benefits of
the project involved and of the entities to which such costs
and benefits accrue;
``(B) a description of the impact of the project on health
care quality and safety; and
``(C) a description of any reduction in duplicative or
unnecessary care as a result of the project involved;
``(5) provide assurances that not later than 30 days after
the development of the standard quality measures pursuant to
section 2906, the entity shall submit to the Director regular
reports on such measures, including provider level data and
analysis of the impact of information technology on such
measures;
``(6) prepare and submit to the Director an application at
such time, in such manner, and containing such information as
the Director may require; and
``(7) agree to provide matching funds in accordance with
subsection (g).
``(c) Use of Funds.--Amounts received under a grant under
subsection (a) shall be used to--
``(1) with respect to a grant described in subsection
(a)(1)--
``(A) to develop a plan for the implementation of a local
health information infrastructure under this section;
``(B) to establish systems for the sharing of data in
accordance with the national health information technology
standards developed under section 2903;
``(C) to implement, enhance, or upgrade a comprehensive,
electronic health information technology system; and
``(D) to maintain adequate security and privacy protocols;
``(2) with respect to a grant described in subsection
(a)(2)--
``(A) to develop a plan for the purchase and installation
of health information technology;
``(B) to purchase directly related integrated hardware and
software to establish an interoperable health information
technology system that is capable of linking to a national or
local health care information infrastructure; and
``(C) to train staff, maintain health information
technology systems, and maintain adequate security and
privacy protocols;
``(3) maintain adequate security and privacy protocols; and
``(4) carry out any other activities determined appropriate
by the Director.
``(d) Special Considerations for Certain Entities.--In
awarding grants under this section, the Director shall give
special consideration to eligible entities that--
``(1) provide service to low-income and underserved
populations; and
``(2) agree to electronically submit the information
described in paragraphs (4) and (5) of subsection (b).
``(e) Special Considerations for Local Health Information
Infrastructures.--In awarding grants under this section to
local health information infrastructures, the Director shall
give special consideration to eligible entities that--
``(1) include at least 50 percent of the patients living in
the designated coverage area;
``(2) incorporate public health surveillance and reporting
into the overall architecture of the proposed infrastructure;
and
``(3) link local health information infrastructures;
``(f) Areas of Specific Interest.--In awarding grants under
this section, the Director shall include--
``(1) entities with a coverage area that includes an entire
State; and
``(2) entities with a multi-state coverage area.
``(g) Matching Requirement.--
``(1) In general.--The Director may not make a grant under
this section to an entity unless the entity agrees that, with
respect to the costs to be incurred by the entity in carrying
out the infrastructure program for which the grant was
awarded, the entity will make available (directly or through
donations from public or private entities) non-Federal
contributions toward such costs in an amount equal to not
less than 20 percent of such costs ($1 for each $5 of Federal
funds provided under the grant).
``(2) Determination of amount contributed.--Non-Federal
contributions required under paragraph (1) may be in cash or
in kind, fairly evaluated, including equipment, technology,
or services. Amounts provided by the Federal Government, or
services assisted or subsidized to any significant extent by
the Federal Government, may not be included in determining
the amount of such non-Federal contributions.
``(h) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this section, such sums as may be necessary for
each of fiscal years 2006 through 2011.
``(2) Availability.--Amounts appropriated under paragraph
(1) shall remain available for obligation until expended.''.

SEC. 202. STANDARDIZED MEASURES OF QUALITY HEALTH CARE AND
DATA COLLECTION.

Title XXIX of the Public Health Service Act, as added by
section 201, is amended by adding at the end the following:

``SEC. 2906. STANDARDIZED MEASURES OF QUALITY HEALTH CARE.

``(a) In General.--
``(1) Collaboration.--The Secretary of Health and Human
Services, the Secretary of Defense, and the Secretary of
Veterans Affairs (referred to in this section as the
`Secretaries'), in consultation with the Quality Interagency
Coordination Taskforce (as established by Executive Order on
March 13, 1998), the Institute of Medicine, the Joint
Commission on Accreditation of Healthcare Organizations, the
National Committee for Quality Assurance, the American Health
Quality Association, the National Quality Forum, the Medicare
Payment Advisory Committee, and other individuals and
organizations determined appropriate by the Secretaries,
shall establish uniform health care quality measures to
assess the effectiveness, timeliness, patient-centeredness,
efficiency, equity, and safety of care delivered across all
federally supported health delivery programs.
``(2) Development of measures.--Not later than 18 months
after the date of enactment of this title, the Secretaries
shall develop standardized sets of quality measures for each
of the 20 priority areas for improvement in health care
quality as identified by the Institute of Medicine in their
report entitled `Priority Areas for National Action' in 2003,
or other such areas as identified by the Secretaries in order
to assist beneficiaries in making informed choices about
health plans or care delivery systems. The selection of
appropriate quality indicators under this subsection shall
include the evaluation criteria formulated by clinical
professionals, consumers, and data collection experts.
``(3) Pilot testing.--Each federally supported health
delivery program may conduct a pilot test of the quality
measures developed under paragraph (2) that shall include a
collection of patient-level data and a public release of
comparative performance reports.
``(b) Public Reporting Requirements.--The Secretaries,
working collaboratively, shall establish public reporting
requirements for clinicians, institutional providers, and
health plans in each of the federally supported health
delivery program described in subsection (a). Such
requirements shall provide that the entities described in the
preceding sentence shall report to the appropriate Secretary
on the measures developed under subsection (a).
``(c) Full Implementation.--The Secretaries, working
collaboratively, shall implement all sets of quality measures
and reporting systems developed under subsections (a) and (b)
by not later than the date that is 1 year after the date on
which the measures are developed under subsection (a)(2).
``(d) Reports.--Not later than 1 year after the date of
enactment of this title, and annually thereafter, the
Secretary shall--
``(1) submit to Congress a report that details the
collaborative efforts carried out under subsection (a), the
progress made on standardizing quality indicators throughout
the Federal Government, and the state of quality measurement
for priority areas that links data to the report submitted
under paragraph (2) for the year involved; and

[[Page S196]]

``(2) submit to Congress a report that details areas of
clinical care requiring further research necessary to
establish effective clinical treatments that will serve as a
basis for additional quality indicators.
``(e) Comparative Quality Reports.--Beginning not later
than 3 years after the date of enactment of this title, in
order to make comparative quality information available to
health care consumers, including members of health disparity
populations, health professionals, public health officials,
researchers, and other appropriate individuals and entities,
the Secretaries shall provide for the pooling, analysis, and
dissemination of quality measures collected under this
section. Nothing in this section shall be construed as
modifying the privacy standards under the Health Insurance
Portability and Accountability Act of 1996 (Public Law 104-
191).
``(f) Ongoing Evaluation of Use.--The Secretary of Health
and Human Services shall ensure the ongoing evaluation of the
use of the health care quality measures established under
this section.
``(g) Evaluation and Regulations.--
``(1) Evaluation.--
``(A) In general.--The Secretary shall, directly or
indirectly through a contract with another entity, conduct an
evaluation of the collaborative efforts of the Secretaries to
establish uniform health care quality measures and reporting
requirements for federally supported health care delivery
programs as required under this section.
``(B) Report.--Not later than 1 year after the date of
enactment of this title, the Secretary of Health and Human
Services shall submit a report to the appropriate committees
of Congress concerning the results of the evaluation under
subparagraph (A).
``(2) Regulations.--
``(A) Proposed.--Not later than 6 months after the date on
which the report is submitted under paragraph (1)(B), the
Secretary shall publish proposed regulations regarding the
application of the uniform health care quality measures and
reporting requirements described in this section to federally
supported health delivery programs.
``(B) Final regulations.--Not later than 1 year after the
date on which the report is submitted under paragraph (1)(B),
the Secretary shall publish final regulations regarding the
uniform health care quality measures and reporting
requirements described in this section.
``(h) Definitions.--In this section, the term `federally
supported health delivery program' means a program that is
funded by the Federal Government under which health care
items or services are delivered directly to patients.''.

TITLE III--MAKING HEALTH CARE MORE AFFORDABLE FOR CHILDREN AND PREGNANT
WOMEN

Subtitle A--Covering all Children

SEC. 300. FINDINGS.

Congress makes the following findings:
(1) Need for universal coverage.--
(A) Currently, there are 9,000,000 children under the age
of 19 that are uninsured. One out of every 8 children are
uninsured while 1 in 5 Hispanic children and 1 in 7 African
American children are uninsured. Three-quarters,
approximately 6,800,000, of these children are eligible but
not enrolled in the medicaid program or the State children's
health insurance program (SCHIP). Long-range studies found
that 1 in 3 children went without health insurance for all or
part of 2002 and 2003.
(B) Low-income children are 3 times as likely as children
in higher income families to be uninsured. It is estimated
that 65 percent of uninsured children have at least 1 parent
working full time over the course of the year.
(C) It is estimated that 50 percent of all legal immigrant
children in families with income that is less than 200
percent of the Federal poverty line are uninsured. In States
without programs to cover immigrant children, 57 percent of
non-citizen children are uninsured.
(D) Children in the Southern and Western parts of the
United States were nearly 1.7 times more likely to be
uninsured than children in the Northeast. In the Northeast,
9.4 percent of children are uninsured while in the Midwest,
8.3 percent are uninsured. The South's rate of uninsured
children is 14.3 percent while the West has an uninsured rate
of 13 percent.
(E) Children's health care needs are neglected in the
United States. One-quarter of young children in the United
States are not fully up to date on their basic immunizations.
One-third of children with chronic asthma do not get a
prescription for the necessary medications to manage the
disease.
(F) According to the Centers for Disease Control and
Prevention, nearly \1/2\ of all uninsured children have not
had a well-child visit in the past year. One out of every 5
children has problems accessing needed care, and 1 out of
every 4 children do not receive annual dental exams. One in 6
uninsured children had a delayed or unmet medical need in the
past year. Minority children are less likely to receive
proven treatments such as prescription medications to treat
chronic disease.
(G) There are 7,600,000 young adults between the ages of 19
and 20. In the United States, approximately 28 percent, or
2,100,000 individuals, of this group are uninsured.
(H) Chronic illness and disability among children are on
the rise. Children most at risk for chronic illness and
disability are children who are most likely to be poor and
uninsured.
(2) Role of the medicaid and state children's health
insurance programs.--
(A) The medicaid program and SCHIP serve as a crucial
health safety net for 30,000,000 children. During the recent
economic downturn and the highest number of uninsured
individuals ever recorded in the United States, the medicaid
program and SCHIP offset losses in employer-sponsored
coverage. While the number of children living in low-income
families increased by 2,000,000 between 2000 and 2003, the
number of uninsured children fell due to the medicaid program
and SCHIP.
(B) In 2003, 25,000,000 children were enrolled in the
medicaid program, accounting for \1/2\ of all enrollees and
only 19 percent of total program costs.
(C) The medicaid program and SCHIP do more than just fill
in the gaps. Gains in public coverage have reduced the
percentage of low-income uninsured by a \1/3\ from 1997 to
2003. In addition, a recent study found that publicly-insured
children are more likely to obtain medical care, preventive
care and dental care than similar low-income privately -
insured children.
(D) Publicly funded programs such as the medicaid program
and SCHIP actually improve children's health. Children who
are currently insured by public programs are in better health
than they were a year ago. Expansion of coverage for children
and pregnant women under the medicaid program and SCHIP
reduces rates of avoidable hospitalizations by 22 percent.
(E) Studies have found that children enrolled in public
insurance programs experienced a 68 percent improvement in
measures of school performance.
(F) Despite the success of expansions in general under the
medicaid program and SCHIP, due to current budget
constraints, many States have stopped doing aggressive
outreach and have raised premiums and cost-sharing
requirements on families under these programs. In addition, 8
States stopped enrollment in SCHIP for a period of time
between April 2003 and July 2004. As a result, SCHIP
enrollment fell by 200,000 children for the first time in the
program's history.
(G) It is estimated that nearly 50 percent of children
covered through SCHIP do not remain in the program due to
reenrollment barriers. A recent study found that between 10
and 40 percent of these children are ``lost'' in the system.
Difficult renewal policies and reenrollment barriers make
seamless coverage in SCHIP unattainable. Studies indicate
that as many as 67 percent of children who were eligible but
not enrolled for SCHIP had applied for coverage but were
denied due to procedural issues.
(H) While the medicaid program and SCHIP expansions to date
have done much to offset what otherwise would have been a
significant loss of coverage among children because of
declining access to employer coverage, the shortcomings of
previous expansions, such as the failure to enroll all
eligible children and caps on enrollment in SCHIP because of
under-funding, also are clear.

CHAPTER 1--EXPANDED COVERAGE OF CHILDREN UNDER MEDICAID AND SCHIP

SEC. 301. STATE OPTION TO RECEIVE 100 PERCENT FMAP FOR
MEDICAL ASSISTANCE FOR CHILDREN IN POVERTY IN
EXCHANGE FOR EXPANDED COVERAGE OF CHILDREN IN
WORKING POOR FAMILIES UNDER TITLE XXI.

(a) State Option.--Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) is amended by redesignating section 1936
as section 1937, and by inserting after section 1935 the
following:

``STATE OPTION FOR INCREASED FMAP FOR MEDICAL ASSISTANCE FOR CHILDREN
IN POVERTY IN EXCHANGE FOR EXPANDED COVERAGE OF CHILDREN IN WORKING
POOR FAMILIES UNDER TITLE XXI

``Sec. 1936. (a) 100 Percent FMAP.--
``(1) In general.--Notwithstanding any other provision of
this title, in the case of a State that, through an amendment
to each of its State plans under this title and title XXI (or
to a waiver of either such plan), agrees to satisfy the
conditions described in subsections (b), (c), and (d) the
Federal medical assistance percentage shall be 100 percent
with respect to the total amount expended by the State for
providing medical assistance under this title for each fiscal
year quarter beginning on or after the date described in
subsection (e) for children whose family income does not
exceed 100 percent of the poverty line.
``(2) Limitation on scope of application of increase.--The
increase in the Federal medical assistance percentage for a
State under this section shall apply only with respect to the
total amount expended for providing medical assistance under
this title for a fiscal year quarter for children described
in paragraph (1) and shall not apply with respect to--
``(A) any other payments made under this title, including
disproportionate share hospital payments described in section
1923;
``(B) payments under title IV or XXI; or
``(C) any payments made under this title or title XXI that
are based on the enhanced FMAP described in section 2105(b).
``(b) Eligibility Expansions.--The condition described in
this subsection is that the State agrees to do the following:
``(1) Coverage under medicaid or schip for children in
families whose income does not exceed 300 percent of the
poverty line.--
``(A) In general.--The State agrees to provide medical
assistance under this title or

[[Page S197]]

child health assistance under title XXI to children whose
family income exceeds the medicaid applicable income level
(as defined in section 2110(b)(4) but by substituting
`January 1, 2005' for `March 31, 1997'), but does not exceed
300 percent of the poverty line.
``(B) State option to expand coverage through subsidized
purchase of family coverage.--A State may elect to carry out
subparagraph (A) through the provision of assistance for the
purchase of dependent coverage under a group health plan or
health insurance coverage if--
``(i) the dependent coverage is consistent with the benefit
standards under this title or title XXI, as approved by the
Secretary; and
``(ii) the State provides `wrap-around' coverage under this
title or title XXI.
``(C) Deemed satisfaction for certain states.--A State
that, as of January 1, 2005, provides medical assistance
under this title or child health assistance under title XXI
to children whose family income is 300 percent of the poverty
line shall be deemed to satisfy this paragraph.
``(2) Coverage for children under age 21.--The State agrees
to define a child for purposes of this title and title XXI as
an individual who has not attained 21 years of age.
``(3) Opportunity for higher income children to purchase
schip coverage.--The State agrees to permit any child whose
family income exceeds 300 percent of the poverty line to
purchase full or `wrap-around' coverage under title XXI at
the full cost of providing such coverage, as determined by
the State.
``(4) Coverage for legal immigrant children.--The State
agrees to--
``(A) provide medical assistance under this title and child
health assistance under title XXI for alien children who are
lawfully residing in the United States (including battered
aliens described in section 431(c) of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996) and who are otherwise eligible for such assistance in
accordance with section 1903(v)(4) and 2107(e)(1)(E); and
``(B) not establish or enforce barriers that deter
applications by such aliens, including through the
application of the removal of the barriers described in
subsection (c).
``(c) Removal of Enrollment and Access Barriers.--The
condition described in this subsection is that the State
agrees to do the following:
``(1) Presumptive eligibility for children.--The State
agrees to--
``(A) provide presumptive eligibility for children under
this title and title XXI in accordance with section 1920A;
``(B) treat any items or services that are provided to an
uncovered child (as defined in section 2110(c)(8)) who is
determined ineligible for medical assistance under this title
as child health assistance for purposes of paying a provider
of such items or services, so long as such items or services
would be considered child health assistance for a targeted
low-income child under title XXI.
``(2) Adoption of 12-month continuous enrollment.--The
State agrees to provide that eligibility for assistance under
this title and title XXI shall not be regularly redetermined
more often than once every year for children.
``(3) Acceptance of self-declaration of income.--The State
agrees to permit the family of a child applying for medical
assistance under this title or child health assistance under
title XXI to declare and certify by signature under penalty
of perjury family income for purposes of collecting financial
eligibility information.
``(4) Adoption of acceptance of eligibility determinations
for other assistance programs.--The State agrees to accept
determinations (made within a reasonable period, as found by
the State, before its use for this purpose) of an
individual's family or household income made by a Federal or
State agency (or a public or private entity making such
determination on behalf of such agency), including the
agencies administering the Food Stamp Act of 1977, the
Richard B. Russell National School Lunch Act, and the Child
Nutrition Act of 1966, notwithstanding any differences in
budget unit, disregard, deeming, or other methodology, but
only if--
``(A) such agency has fiscal liabilities or
responsibilities affected or potentially affected by such
determinations; and
``(B) any information furnished by such agency pursuant to
this subparagraph is used solely for purposes of determining
eligibility for medical assistance under this title or for
child health assistance under title XXI.
``(5) No assets test.--The State agrees to not (or
demonstrates that it does not) apply any assets or resources
test for eligibility under this title or title XXI with
respect to children.
``(6) Eligibility Determinations and Redeterminations.--
``(A) In general.--The State agrees for purposes of initial
eligibility determinations and redeterminations of children
under this title and title XXI not to require a face-to-face
interview and to permit applications and renewals by mail,
telephone, and the Internet.
``(B) Nonduplication of information.--
``(i) In general.--For purposes of redeterminations of
eligibility for currently or previously enrolled children
under this title and title XXI, the State agrees to use all
information in its possession (including information
available to the State under other Federal or State programs)
to determine eligibility or redetermine continued eligibility
before seeking similar information from parents.
``(ii) Rule of construction.--Nothing in clause (i) shall
be construed as limiting any obligation of a State to provide
notice and a fair hearing before denying, terminating, or
reducing a child's coverage based on such information in the
possession of the State.
``(7) No waiting list for children under schip.--The State
agrees to not impose any numerical limitation, waiting list,
waiting period, or similar limitation on the eligibility of
children for child health assistance under title XXI or to
establish or enforce other barriers to the enrollment of
eligible children based on the date of their application for
coverage.
``(8) Adequate provider payment rates.--The State agrees
to--
``(A) establish payment rates for children's health care
providers under this title that are no less than the average
of payment rates for similar services for such providers
provided under the benchmark benefit packages described in
section 2103(b);
``(B) establish such rates in amounts that are sufficient
to ensure that children enrolled under this title or title
XXI have adequate access to comprehensive care, in accordance
with the requirements of section 1902(a)(30)(A); and
``(C) include provisions in its contracts with providers
under this title guaranteeing compliance with these
requirements.
``(d) Maintenance of Medicaid Eligibility Levels for
Children.--
``(1) In general.--The condition described in this
subsection is that the State agrees to maintain eligibility
income, resources, and methodologies applied under this title
(including under a waiver of such title or under section
1115) with respect to children that are no more restrictive
than the eligibility income, resources, and methodologies
applied with respect to children under this title (including
under such a waiver) as of January 1, 2005.
``(2) Rule of construction.--Nothing in this section shall
be construed as implying that a State does not have to comply
with the minimum income levels required for children under
section 1902(l)(2).
``(e) Date Described.--The date described in this
subsection is the date on which, with respect to a State, a
plan amendment that satisfies the requirements of subsections
(b), (c), and (d) is approved by the Secretary.
``(f) Definition of Poverty Line.--In this section, the
term `poverty line' has the meaning given that term in
section 2110(c)(5).''.
(b) Conforming Amendments.--
(1) The third sentence of section 1905(b) of the Social
Security Act (42 U.S.C. 1396d(b)) is amended by inserting
before the period the following: ``, and with respect to
amounts expended for medical assistance for children on or
after the date described in subsection (d) of section 1936,
in the case of a State that has, in accordance with such
section, an approved plan amendment under this title and
title XXI''.
(2) Section 1903(f)(4) of the Social Security Act (42
U.S.C. 1396b(f)(4)) is amended--
(A) in subparagraph (C), by adding ``or'' after ``section
1611(b)(1),''; and
(B) by inserting after subparagraph (C), the following:
``(D) who would not receive such medical assistance but for
State electing the option under section 1936 and satisfying
the conditions described in subsections (b), (c), and (d) of
such section,''.

SEC. 302. ELIMINATION OF CAP ON SCHIP FUNDING FOR STATES THAT
EXPAND ELIGIBILITY FOR CHILDREN.

(a) In General.--Section 2105 of the Social Security Act
(42 U.S.C. 1397dd) is amended by adding at the end the
following:
``(h) Guaranteed Funding for Child Health Assistance for
Coverage Expansion States.--
``(1) In general.--Only in the case of a State that has, in
accordance with section 1936, an approved plan amendment
under this title and title XIX, any payment cap that would
otherwise apply to the State under this title as a result of
having expended all allotments available for expenditure by
the State with respect to a fiscal year shall not apply with
respect to amounts expended by the State on or after the date
described in section 1936(d).
``(2) Appropriation.--There is appropriated, out of any
money in the Treasury not otherwise appropriated, such sums
as may be necessary for the purpose of paying a State
described in paragraph (1) for each quarter beginning on or
after the date described in section 1936(d), an amount equal
to the enhanced FMAP of expenditures described in paragraph
(1) and incurred during such quarter.''.
(b) Conforming Amendments.--Section 2104 of the Social
Security Act (42 U.S.C. 1397dd) is amended--
(1) in subsection (a), by inserting ``subject to section
2105(h),'' after ``under this section,'';
(2) in subsection (b)(1), by inserting ``and section
2105(h)'' after ``Subject to paragraph (4)''; and
(3) in subsection (c)(1), by inserting ``subject to section
2105(h),'' after ``for a fiscal year,''.

CHAPTER 2--STATE OPTIONS FOR INCREMENTAL CHILD COVERAGE EXPANSIONS

SEC. 311. STATE OPTION TO ENROLL LOW-INCOME CHILDREN OF STATE
EMPLOYEES IN SCHIP.

Section 2110(b)(2) of the Social Security Act (42 U.S.C.
1397jj(b)(2)) is amended--

[[Page S198]]

(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively and realigning the left margins of
such clauses appropriately;
(2) by striking ``Such term'' and inserting the following:
``(A) In general.--Such term''; and
(3) by adding at the end the following:
``(B) State option to enroll low-income children of state
employees.--At the option of a State, subparagraph (A)(ii)
shall not apply to any low-income child who would otherwise
be eligible for child health assistance under this title but
for such subparagraph.''.

SEC. 312. STATE OPTION FOR PASSIVE RENEWAL OF ELIGIBILITY FOR
CHILDREN UNDER MEDICAID AND SCHIP.

(a) In General.--Section 1902(l) of the Social Security Act
(42 U.S.C. 1396a(l)) is amended by adding at the end the
following:
``(5) Notwithstanding any other provision of this title, a
State may provide that an individual who has not attained 21
years of age who has been determined eligible for medical
assistance under this title shall remain eligible for medical
assistance until such time as the State has information
demonstrating that the individual is no longer so
eligible.''.
(b) Application under Title XXI.--Section 2107(e)(1) of the
Social Security Act (42 U.S.C. 1397gg(e)) is amended--
(1) by redesignating subparagraphs (B) through (D) as
subparagraphs (C) through (E), respectively; and
(2) by inserting after subparagraph (A), the following:
``(B) Section 1902(l)(5) (relating to passive renewal of
eligibility for children).''.

CHAPTER 3--TAX INCENTIVES FOR HEALTH INSURANCE COVERAGE OF CHILDREN

SEC. 321. REFUNDABLE CREDIT FOR HEALTH INSURANCE COVERAGE OF
CHILDREN.

(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by redesignating section 36 as
section 37 and by inserting after section 35 the following
new section:

``SEC. 36. HEALTH INSURANCE COVERAGE OF CHILDREN.

``(a) In General.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
subtitle an amount equal to so much of the amount paid during
the taxable year, not compensated for by insurance or
otherwise, for qualified health insurance for each dependent
child of the taxpayer, as exceeds 5 percent of the adjusted
gross income of such taxpayer for such taxable year.
``(b) Dependent child.--For purposes of this section, the
term `dependent child' means any child (as defined in section
152(f)(1)) who has not attained the age of 19 as of the close
of the calendar year in which the taxable year of the
taxpayer begins and with respect to whom a deduction under
section 151 is allowable to the taxpayer.
``(c) Qualified Health Insurance.--For purposes of this
section--
``(1) In general.--The term `qualified health insurance'
means insurance, either employer-provided or made available
under title XIX or XXI of the Social Security Act, which
constitutes medical care as defined in section 213(d) without
regard to--
``(A) paragraph (1)(C) thereof, and
``(B) so much of paragraph (1)(D) thereof as relates to
qualified long-term care insurance contracts.
``(2) Exclusion of certain other contracts.--Such term
shall not include insurance if a substantial portion of its
benefits are excepted benefits (as defined in section
9832(c)).
``(d) Medical Savings Account and Health Savings Account
Contributions.--
``(1) In general.--If a deduction would (but for paragraph
(2)) be allowed under section 220 or 223 to the taxpayer for
a payment for the taxable year to the medical savings account
or health savings account of an individual, subsection (a)
shall be applied by treating such payment as a payment for
qualified health insurance for such individual.
``(2) Denial of double benefit.--No deduction shall be
allowed under section 220 or 223 for that portion of the
payments otherwise allowable as a deduction under section 220
or 223 for the taxable year which is equal to the amount of
credit allowed for such taxable year by reason of this
subsection.
``(e) Special Rules.--
``(1) Determination of insurance costs.--The Secretary
shall provide rules for the allocation of the cost of any
qualified health insurance for family coverage to the
coverage of any dependent child under such insurance.
``(2) Coordination with deduction for health insurance
costs of self-employed individuals.--In the case of a
taxpayer who is eligible to deduct any amount under section
162(l) for the taxable year, this section shall apply only if
the taxpayer elects not to claim any amount as a deduction
under such section for such year.
``(3) Coordination with medical expense and high deductible
health plan deductions.--The amount which would (but for this
paragraph) be taken into account by the taxpayer under
section 213 or 224 for the taxable year shall be reduced by
the credit (if any) allowed by this section to the taxpayer
for such year.
``(4) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.
``(5) Denial of double benefit.--No credit shall be allowed
under subsection (a) if the credit under section 35 is
allowed and no credit shall be allowed under 35 if a credit
is allowed under this section.
``(6) Election not to claim credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable
year.''.
(b) Information Reporting.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 (relating to
information concerning transactions with other persons) is
amended by inserting after section 6050T the following new
section:

``SEC. 6050U. RETURNS RELATING TO PAYMENTS FOR QUALIFIED
HEALTH INSURANCE.

``(a) In General.--Any governmental unit or any person who,
in connection with a trade or business conducted by such
person, receives payments during any calendar year from any
individual for coverage of a dependent child (as defined in
section 36(b)) of such individual under creditable health
insurance, shall make the return described in subsection (b)
(at such time as the Secretary may by regulations prescribe)
with respect to each individual from whom such payments were
received.
``(b) Form and Manner of Returns.--A return is described in
this subsection if such return--
``(1) is in such form as the Secretary may prescribe, and
``(2) contains--
``(A) the name, address, and TIN of the individual from
whom payments described in subsection (a) were received,
``(B) the name, address, and TIN of each dependent child
(as so defined) who was provided by such person with coverage
under creditable health insurance by reason of such payments
and the period of such coverage, and
``(C) such other information as the Secretary may
reasonably prescribe.
``(c) Creditable Health Insurance.--For purposes of this
section, the term `creditable health insurance' means
qualified health insurance (as defined in section 36(c)).
``(d) Statements To Be Furnished to Individuals With
Respect to Whom Information Is Required.--Every person
required to make a return under subsection (a) shall furnish
to each individual whose name is required under subsection
(b)(2)(A) to be set forth in such return a written statement
showing--
``(1) the name and address of the person required to make
such return and the phone number of the information contact
for such person,
``(2) the aggregate amount of payments described in
subsection (a) received by the person required to make such
return from the individual to whom the statement is required
to be furnished, and
``(3) the information required under subsection (b)(2)(B)
with respect to such payments.
The written statement required under the preceding sentence
shall be furnished on or before January 31 of the year
following the calendar year for which the return under
subsection (a) is required to be made.
``(e) Returns Which Would Be Required To Be Made by 2 or
More Persons.--Except to the extent provided in regulations
prescribed by the Secretary, in the case of any amount
received by any person on behalf of another person, only the
person first receiving such amount shall be required to make
the return under subsection (a).''.
(2) Assessable penalties.--
(A) Subparagraph (B) of section 6724(d)(1) of such Code
(relating to definitions) is amended by redesignating clauses
(xiii) through (xviii) as clauses (xiv) through (xix),
respectively, and by inserting after clause (xii) the
following new clause:
``(xiii) section 6050U (relating to returns relating to
payments for qualified health insurance),''.
(B) Paragraph (2) of section 6724(d) of such Code is
amended by striking ``or'' at the end of the next to last
subparagraph, by striking the period at the end of the last
subparagraph and inserting ``, or'', and by adding at the end
the following new subparagraph:
``(CC) section 6050U(d) (relating to returns relating to
payments for qualified health insurance).''.
(3) Clerical amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 of such Code is
amended by inserting after the item relating to section 6050T
the following new item:

``Sec. 6050U. Returns relating to payments for qualified health
insurance.''.

(c) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 36 of such Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by striking the last item and inserting the
following new items:

[[Page S199]]

``Sec. 36. Health insurance coverage of children.
``Sec. 37. Overpayments of tax.''.

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.

SEC. 322. FORFEITURE OF PERSONAL EXEMPTION FOR ANY CHILD NOT
COVERED BY HEALTH INSURANCE.

(a) In General.--Section 151(d) of the Internal Revenue
Code of 1986 (relating to exemption amount) is amended by
adding at the end the following new paragraph:
``(5) Reduction of exemption amount for any child not
covered by health insurance.--
``(A) In general.--Except as otherwise provided in this
paragraph, the exemption amount otherwise determined under
this subsection for any dependent child (as defined in
section 36(b)) for any taxable year shall be reduced by the
same percentage as the percentage of such taxable year during
which such dependent child was not covered by qualified
health insurance (as defined in section 36(c)).
``(B) Full reduction if no proof of coverage is provided.--
For purposes of subparagraph (A), in the case of any taxpayer
who fails to attach to the return of tax for any taxable year
a copy of the statement furnished to such taxpayer under
section 6050U, the percentage reduction under such
subparagraph shall be deemed to be 100 percent.
``(C) Nonapplication of paragraph to taxpayers in lowest
tax bracket.--This paragraph shall not apply to any taxpayer
whose taxable income for the taxable year does not exceed the
initial bracket amount determined under section
1(i)(1)(B).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2004.

CHAPTER 4--MISCELLANEOUS

SEC. 331. REQUIREMENT FOR GROUP MARKET HEALTH INSURERS TO
OFFER DEPENDENT COVERAGE OPTION FOR WORKERS
WITH CHILDREN.

(a) ERISA.--
(1) In general.--Subpart B of part 7 of subtitle B of title
I of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1185 et seq.) is amended by adding at the end the
following:

``SEC. 714. REQUIREMENT TO OFFER OPTION TO PURCHASE DEPENDENT
COVERAGE FOR CHILDREN.

``(a) Requirements for Coverage.--A group health plan, and
a health insurance issuer providing health insurance coverage
in connection with a group health plan, shall offer an
individual who is enrolled in such coverage the option to
purchase dependent coverage for a child of the individual.
``(b) No Employer Contribution Required.--An employer shall
not be required to contribute to the cost of purchasing
dependent coverage for a child by an individual who is an
employee of such employer.
``(c) Definition of Child.--In this section, the term
`child' means an individual who has not attained 21 years of
age.''.
(2) Clerical amendment.--The table of contents in section 1
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001) is amended by inserting after the item relating
to section 713 the following:

``Sec. 714. Requirement to offer option to purchase dependent coverage
for children.''.

(b) Public Health Service Act.--Subpart 2 of part A of
title XXVII of the Public Health Service Act (42 U.S.C.
300gg-4 et seq.) is amended by adding at the end the
following:

``SEC. 2707. REQUIREMENT TO OFFER OPTION TO PURCHASE
DEPENDENT COVERAGE FOR CHILDREN.

``(a) Requirements for Coverage.--A group health plan, and
a health insurance issuer providing health insurance coverage
in connection with a group health plan, shall offer an
individual who is enrolled in such coverage the option to
purchase dependent coverage for a child of the individual.
``(b) No Employer Contribution Required.--An employer shall
not be required to contribute to the cost of purchasing
dependent coverage for a child by an individual who is an
employee of such employer.
``(c) Definition of Child.--In this section, the term
`child' means an individual who has not attained 21 years of
age.''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to plan years beginning on or after
January 1, 2006.

SEC. 332. EFFECTIVE DATE.

Unless otherwise provided, the amendments made by this
subtitle shall take effect on October 1, 2005, and shall
apply to child health assistance and medical assistance
provided on or after that date without regard to whether or
not final regulations to carry out such amendments have been
promulgated by such date.

Subtitle B--Covering Pregnant Women

SEC. 351. STATE OPTION TO EXPAND OR ADD COVERAGE OF PREGNANT
WOMEN UNDER THE MEDICAID PROGRAM AND STATE
CHILDREN'S HEALTH INSURANCE PROGRAM.

(a) Medicaid.--
(1) Authority to expand coverage.--Section 1902(l)(2)(A)(i)
of the Social Security Act (42 U.S.C. 1396a(l)(2)(A)(i)) is
amended by inserting ``(or such higher percentage as the
State may elect for purposes of expenditures for medical
assistance for pregnant women described in section
1905(u)(4)(A))'' after ``185 percent''.
(2) Enhanced matching funds available if certain conditions
met.--Section 1905 of the Social Security Act (42 U.S.C.
1396d), as amended by section 311(b)(2), is amended--
(A) in the fourth sentence of subsection (b), by striking
``or (u)(4)'' and inserting ``, (u)(4), or (u)(5)''; and
(B) in subsection (u)--
(i) by redesignating paragraph (5) as paragraph (6); and
(ii) by inserting after paragraph (4) the following new
paragraph:
``(5) For purposes of the fourth sentence of subsection (b)
and section 2105(a), the expenditures described in this
paragraph are the following:
``(A) Certain pregnant women.--If the conditions described
in subparagraph (B) are met, expenditures for medical
assistance for pregnant women described in subsection (n) or
under section 1902(l)(1)(A) in a family the income of which
exceeds 185 percent of the poverty line, but does not exceed
the income eligibility level established under title XXI for
a targeted low-income child.
``(B) Conditions.--The conditions described in this
subparagraph are the following:
``(i) The State plans under this title and title XXI do not
provide coverage for pregnant women described in subparagraph
(A) with higher family income without covering such pregnant
women with a lower family income.
``(ii) The State does not apply an effective income level
for pregnant women that is lower than the effective income
level (expressed as a percent of the poverty line and
considering applicable income disregards) that has been
specified under the State plan under subsection
(a)(10)(A)(i)(III) or (l)(2)(A) of section 1902, as of
January 1, 2005, to be eligible for medical assistance as a
pregnant woman.
``(C) Definition of poverty line.--In this subsection, the
term `poverty line' has the meaning given such term in
section 2110(c)(5).''.
(3) Payment from title xxi allotment for medicaid expansion
costs; elimination of counting medicaid child presumptive
eligibility costs against title xxi allotment.--Section
2105(a)(1) of the Social Security Act (42 U.S.C.
1397ee(a)(1)) is amended--
(A) in the matter preceding subparagraph (A), by striking
``(or, in the case of expenditures described in subparagraph
(B), the Federal medical assistance percentage (as defined in
the first sentence of section 1905(b)))''; and
(B) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) for the provision of medical assistance that is
attributable to expenditures described in section
1905(u)(5)(A);''.
(b) SCHIP.--
(1) Coverage.--Title XXI of the Social Security Act (42
U.S.C. 1397aa et seq.) is amended by adding at the end the
following new section:

``SEC. 2111. OPTIONAL COVERAGE OF TARGETED LOW-INCOME
PREGNANT WOMEN.

``(a) Optional Coverage.--Notwithstanding any other
provision of this title, a State may provide for coverage,
through an amendment to its State child health plan under
section 2102, of pregnancy-related assistance for targeted
low-income pregnant women in accordance with this section,
but only if--
``(1) the State has established an income eligibility level
for pregnant women under subsection (a)(10)(A)(i)(III) or
(l)(2)(A) of section 1902 that is at least 185 percent of the
income official poverty line; and
``(2) the State meets the conditions described in section
1905(u)(5)(B).
``(b) Definitions.--For purposes of this title:
``(1) Pregnancy-related assistance.--The term `pregnancy-
related assistance' has the meaning given the term child
health assistance in section 2110(a) as if any reference to
targeted low-income children were a reference to targeted
low-income pregnant women, except that the assistance shall
be limited to services related to pregnancy (which include
prenatal, delivery, and postpartum services and services
described in section 1905(a)(4)(C)) and to other conditions
that may complicate pregnancy.
``(2) Targeted low-income pregnant woman.--The term
`targeted low-income pregnant woman' means a woman--
``(A) during pregnancy and through the end of the month in
which the 60-day period (beginning on the last day of her
pregnancy) ends;
``(B) whose family income exceeds the effective income
level (expressed as a percent of the poverty line and
considering applicable income disregards) that has been
specified under subsection (a)(10)(A)(i)(III) or (l)(2)(A) of
section 1902, as of January 1, 2005, to be eligible for
medical assistance as a pregnant woman under title XIX but
does not exceed the income eligibility level established
under the State child health plan under this title for a
targeted low-income child; and
``(C) who satisfies the requirements of paragraphs (1)(A),
(1)(C), (2), and (3) of section 2110(b).
``(c) References to Terms and Special Rules.--In the case
of, and with respect to, a State providing for coverage of
pregnancy-related assistance to targeted low-income pregnant
women under subsection (a), the following special rules
apply:
``(1) Any reference in this title (other than in subsection
(b)) to a targeted low-income

[[Page S200]]

child is deemed to include a reference to a targeted low-
income pregnant woman.
``(2) Any such reference to child health assistance with
respect to such women is deemed a reference to pregnancy-
related assistance.
``(3) Any such reference to a child is deemed a reference
to a woman during pregnancy and the period described in
subsection (b)(2)(A).
``(4) In applying section 2102(b)(3)(B), any reference to
children found through screening to be eligible for medical
assistance under the State medicaid plan under title XIX is
deemed a reference to pregnant women.
``(5) There shall be no exclusion of benefits for services
described in subsection (b)(1) based on any preexisting
condition and no waiting period (including any waiting period
imposed to carry out section 2102(b)(3)(C)) shall apply.
``(6) Subsection (a) of section 2103 (relating to required
scope of health insurance coverage) shall not apply insofar
as a State limits coverage to services described in
subsection (b)(1) and the reference to such section in
section 2105(a)(1)(C) is deemed not to require, in such case,
compliance with the requirements of section 2103(a).
``(7) In applying section 2103(e)(3)(B) in the case of a
pregnant woman provided coverage under this section, the
limitation on total annual aggregate cost-sharing shall be
applied to such pregnant woman.
``(8) The reference in section 2107(e)(1)(D) to section
1920A (relating to presumptive eligibility for children) is
deemed a reference to section 1920 (relating to presumptive
eligibility for pregnant women).
``(d) Automatic Enrollment for Children Born to Women
Receiving Pregnancy-Related Assistance.--If a child is born
to a targeted low-income pregnant woman who was receiving
pregnancy-related assistance under this section on the date
of the child's birth, the child shall be deemed to have
applied for child health assistance under the State child
health plan and to have been found eligible for such
assistance under such plan or to have applied for medical
assistance under title XIX and to have been found eligible
for such assistance under such title, as appropriate, on the
date of such birth and to remain eligible for such assistance
until the child attains 1 year of age. During the period in
which a child is deemed under the preceding sentence to be
eligible for child health or medical assistance, the child
health or medical assistance eligibility identification
number of the mother shall also serve as the identification
number of the child, and all claims shall be submitted and
paid under such number (unless the State issues a separate
identification number for the child before such period
expires).''.
(2) Additional allotments for providing coverage of
pregnant women.--
(A) In general.--Section 2104 of the Social Security Act
(42 U.S.C. 1397dd) is amended by inserting after subsection
(c) the following new subsection:
``(d) Additional Allotments for Providing Coverage of
Pregnant Women.--
``(1) Appropriation; total allotment.--For the purpose of
providing additional allotments to States under this title,
there is appropriated, out of any money in the Treasury not
otherwise appropriated, for each of fiscal years 2006 through
2009, $200,000,000.
``(2) State and territorial allotments.--In addition to the
allotments provided under subsections (b) and (c), subject to
paragraphs (3) and (4), of the amount available for the
additional allotments under paragraph (1) for a fiscal year,
the Secretary shall allot to each State with a State child
health plan approved under this title--
``(A) in the case of such a State other than a commonwealth
or territory described in subparagraph (B), the same
proportion as the proportion of the State's allotment under
subsection (b) (determined without regard to subsection (f))
to the total amount of the allotments under subsection (b)
for such States eligible for an allotment under this
paragraph for such fiscal year; and
``(B) in the case of a commonwealth or territory described
in subsection (c)(3), the same proportion as the proportion
of the commonwealth's or territory's allotment under
subsection (c) (determined without regard to subsection (f))
to the total amount of the allotments under subsection (c)
for commonwealths and territories eligible for an allotment
under this paragraph for such fiscal year.
``(3) Use of additional allotment.--Additional allotments
provided under this subsection are not available for amounts
expended before October 1, 2005. Such amounts are available
for amounts expended on or after such date for child health
assistance for targeted low-income children, as well as for
pregnancy-related assistance for targeted low-income pregnant
women.
``(4) No payments unless election to expand coverage of
pregnant women.--No payments may be made to a State under
this title from an allotment provided under this subsection
unless the State provides pregnancy-related assistance for
targeted low-income pregnant women under this title, or
provides medical assistance for pregnant women under title
XIX, whose family income exceeds the effective income level
applicable under subsection (a)(10)(A)(i)(III) or (l)(2)(A)
of section 1902 to a family of the size involved as of
January 1, 2005.''.
(B) Conforming amendments.--Section 2104 of the Social
Security Act (42 U.S.C. 1397dd), as amended by section
302(b), is amended--
(i) in subsection (a), in the matter preceding paragraph
(1), by inserting ``subsection (d) and'' before ``section
2105(h)'';
(ii) in subsection (b)(1), by inserting ``, subsection
(d),'' after ``Subject to paragraph (4)''; and
(iii) in subsection (c)(1), by inserting ``subsection (d)
and'' after ``section 2105(h)''.
(3) Additional conforming amendments.--
(A) No cost-sharing for pregnancy-related benefits.--
Section 2103(e)(2) of the Social Security Act (42 U.S.C.
1397cc(e)(2)) is amended--
(i) in the heading, by inserting ``or pregnancy-related
services'' after ``preventive services''; and
(ii) by inserting before the period at the end the
following: ``or for pregnancy-related services''.
(B) No waiting period.--Section 2102(b)(1)(B) (42 U.S.C.
1397bb(b)(1)(B)) is amended--
(i) in clause (i), by striking ``, and'' at the end and
inserting a semicolon;
(ii) in clause (ii), by striking the period at the end and
inserting ``; and''; and
(iii) by adding at the end the following new clause:
``(iii) may not apply a waiting period (including a waiting
period to carry out paragraph (3)(C)) in the case of a
targeted low-income pregnant woman.''.
(c) Authority for States That Provide Medicaid or SCHIP
Coverage for Pregnant Women With Income Above 185 Percent of
the Poverty Line To Use Portion of SCHIP Funds for Medicaid
Expenditures.--Section 2105(g) of the Social Security Act (42
U.S.C. 1397ee(g)) is amended--
(1) in the subsection heading, by inserting ``and Certain
Pregnancy Coverage Expansion States'' after ``Qualifying
States'';
(2) by adding at the end the following:
``(4) Special authority for certain pregnancy coverage
expansion states.--
``(A) In general.--In the case of a State that, as of the
date of enactment of the Affordable Health Care Act of 2005,
has an income eligibility standard under title XIX or this
title (under section 1902(a)(10)(A) or under a statewide
waiver in effect under section 1115 with respect to title XIX
or this title) that is at least 185 percent of the poverty
line with respect to pregnant women, the State may elect to
use not more than 20 percent of any allotment under section
2104 for any fiscal year (insofar as it is available under
subsections (e) and (g) of such section) for payments under
title XIX in accordance with subparagraph (B), instead of for
expenditures under this title.
``(B) Payments to states.--
``(i) In general.--In the case of a State described in
subparagraph (A) that has elected the option described in
that subparagraph, subject to the availability of funds under
such subparagraph and, if applicable, paragraph (1)(A), with
respect to the State, the Secretary shall pay the State an
amount each quarter equal to the additional amount that would
have been paid to the State under title XIX with respect to
expenditures described in clause (ii) if the enhanced FMAP
(as determined under subsection (b)) had been substituted for
the Federal medical assistance percentage (as defined in
section 1905(b)).
``(ii) Expenditures described.--For purposes of this
subparagraph, the expenditures described in this clause are
expenditures, made after the date of the enactment of this
paragraph and during the period in which funds are available
to the State for use under subparagraph (A), for medical
assistance under title XIX for pregnant women whose family
income is at least 185 percent of the poverty line.
``(iii) No impact on determination of budget neutrality for
waivers.--In the case of a State described in subparagraph
(A) that uses amounts paid under this paragraph for
expenditures described in clause (ii) that are incurred under
a waiver approved for the State, any budget neutrality
determinations with respect to such waiver shall be
determined without regard to such amounts paid.''; and
(3) in paragraph (3), by striking ``and (2)'' and inserting
``(2), and (4)''.
(d) Other Amendments to Medicaid.--
(1) Eligibility of a newborn.--Section 1902(e)(4) of the
Social Security Act (42 U.S.C. 1396a(e)(4)) is amended in the
first sentence by striking ``so long as the child is a member
of the woman's household and the woman remains (or would
remain if pregnant) eligible for such assistance''.
(2) Application of qualified entities to presumptive
eligibility for pregnant women under medicaid.--Section
1920(b) of the Social Security Act (42 U.S.C. 1396r-1(b)) is
amended by adding after paragraph (2) the following flush
sentence:
``The term `qualified provider' includes a qualified entity
as defined in section 1920A(b)(3).''.
(e) Effective Date.--The amendments made by this section
apply to items and services furnished on or after October 1,
2005, without regard to whether regulations implementing such
amendments have been promulgated.

SEC. 352. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE
MEDICAID PROGRAM AND SCHIP.

(a) Medicaid Program.--Section 1903(v) of the Social
Security Act (42 U.S.C. 1396b(v)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and

[[Page S201]]

(2) by adding at the end the following new paragraph:
``(4)(A) A State may elect (in a plan amendment under this
title) to provide medical assistance under this title for
aliens who are lawfully residing in the United States
(including battered aliens described in section 431(c) of the
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996) and who are otherwise eligible for such
assistance, within any of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the
pregnancy).
``(ii) Children.--Children (as defined under such plan),
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(B)(i) In the case of a State that has elected to provide
medical assistance to a category of aliens under subparagraph
(A), no debt shall accrue under an affidavit of support
against any sponsor of such an alien on the basis of
provision of assistance to such category and the cost of such
assistance shall not be considered as an unreimbursed cost.
``(ii) The provisions of sections 401(a), 402(b), 403, and
421 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 shall not apply to a State that
makes an election under subparagraph (A).''.
(b) Title XXI.--Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end
the following new subparagraph:
``(E) Section 1903(v)(4) (relating to optional coverage of
permanent resident alien pregnant women and children), but
only with respect to an eligibility category under this
title, if the same eligibility category has been elected
under such section for purposes of title XIX.''.
(c) Effective Date.--The amendments made by this section
take effect on October 1, 2005, and apply to medical
assistance and child health assistance furnished on or after
such date.

SEC. 353. PROMOTING CESSATION OF TOBACCO USE UNDER THE
MEDICAID PROGRAM.

(a) Dropping Exception From Medicaid Prescription Drug
Coverage for Tobacco Cessation Medications.--Section
1927(d)(2) of the Social Security Act (42 U.S.C. 1396r-
8(d)(2)) is amended--
(1) by striking subparagraph (E);
(2) by redesignating subparagraphs (F) through (J) as
subparagraphs (E) through (I), respectively; and
(3) in subparagraph (F) (as redesignated by paragraph (2)),
by inserting before the period at the end the following: ``,
except agents approved by the Food and Drug Administration
for purposes of promoting, and when used to promote, tobacco
cessation''.
(b) Requiring Coverage of Tobacco Cessation Counseling
Services for Pregnant Women.--Section 1905 of the Social
Security Act (42 U.S.C. 1396d(a)(4)) is amended--
(1) in subsection (a)(4)--
(A) by striking ``and'' before ``(C)''; and
(B) by inserting before the semicolon at the end the
following new subparagraph: ``; and (D) counseling for
cessation of tobacco use (as defined in subsection (x)) for
pregnant women''; and
(2) by adding at the end the following:
``(y)(1) For purposes of this title, the term `counseling
for cessation of tobacco use' means therapy and counseling
for cessation of tobacco use for pregnant women who use
tobacco products or who are being treated for tobacco use
that is furnished--
``(A) by or under the supervision of a physician; or
``(B) by any other health care professional who--
``(i) is legally authorized to furnish such services under
State law (or the State regulatory mechanism provided by
State law) of the State in which the services are furnished;
and
``(ii) is authorized to receive payment for other services
under this title or is designated by the Secretary for this
purpose.
``(2) Subject to paragraph (3), such term is limited to--
``(A) therapy and counseling services recommended in
`Treating Tobacco Use and Dependence: A Clinical Practice
Guideline', published by the Public Health Service in June
2000, or any subsequent modification of such Guideline; and
``(B) such other therapy and counseling services that the
Secretary recognizes to be effective.
``(3) Such term shall not include coverage for drugs or
biologicals that are not otherwise covered under this
title.''.
(c) Removal of Cost-Sharing for Tobacco Cessation
Counseling Services for Pregnant Women.--Section 1916 of the
Social Security Act (42 U.S.C. 1396o) is amended in each of
subsections (a)(2)(B) and (b)(2)(B) by inserting ``, and
counseling for cessation of tobacco use (as defined in
section 1905(x))'' after ``complicate the pregnancy''.
(d) Effective Date.--The amendments made by this section
shall apply to services furnished on or after the date that
is 1 year after the date of enactment of this Act.

SEC. 354. PROMOTING CESSATION OF TOBACCO USE UNDER THE
MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT
PROGRAM.

(a) Quality Maternal and Child Health Services Includes
Tobacco Cessation Counseling and Medications.--
(1) In general.--Section 501 of the Social Security Act (42
U.S.C. 701) is amended by adding at the end the following new
subsection:
``(c) For purposes of this title, counseling for cessation
of tobacco use (as defined in section 1905(y)), drugs and
biologicals used to promote smoking cessation, and the
inclusion of antitobacco messages in health promotion
counseling shall be considered to be part of quality maternal
and child health services.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 1 year after the date
of enactment of this Act.
(b) Evaluation of National Core Performance Measures.--
(1) In general.--The Administrator of the Health Resources
and Services Administration shall assess the current national
core performance measures and national core outcome measures
utilized under the Maternal and Child Health Block Grant
under title V of the Social Security Act (42 U.S.C. 701 et
seq.) for purposes of expanding such measures to include some
of the known causes of low birthweight and prematurity,
including the percentage of infants born to pregnant women
who smoked during pregnancy.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Health
Resources and Services Administration shall submit to the
appropriate committees of Congress a report concerning the
results of the evaluation conducted under paragraph (1).

SEC. 355. STATE OPTION TO PROVIDE FAMILY PLANNING SERVICES
AND SUPPLIES TO INDIVIDUALS WITH INCOMES THAT
DO NOT EXCEED A STATE'S INCOME ELIGIBILITY
LEVEL FOR MEDICAL ASSISTANCE.

(a) In General.--Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.), as amended by section 301(a), is
amended--
(1) by redesignating section 1937 as section 1938; and
(2) by inserting after section 1936 the following new
section:

``state option to provide family planning services and supplies

``Sec. 1937. (a) In General.--Subject to subsections (b)
and (c), a State may elect (through a State plan amendment)
to make medical assistance described in section 1905(a)(4)(C)
available to any individual whose family income does not
exceed the greater of--
``(1) 185 percent of the income official poverty line (as
defined by the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) applicable to a family of
the size involved; or
``(2) the eligibility income level (expressed as a
percentage of such poverty line) that has been specified
under a waiver authorized by the Secretary or under section
1902(r)(2)), as of January 1, 2005, for an individual to be
eligible for medical assistance under the State plan.
``(b) Comparability.--Medical assistance described in
section 1905(a)(4)(C) that is made available under a State
plan amendment under subsection (a) shall--
``(1) not be less in amount, duration, or scope than the
medical assistance described in that section that is made
available to any other individual under the State plan; and
``(2) be provided in accordance with the restrictions on
deductions, cost sharing, or similar charges imposed under
section 1916(a)(2)(D).
``(c) Option To Extend Coverage During a Post-Eligibility
Period.--
``(1) Initial period.--A State plan amendment made under
subsection (a) may provide that any individual who was
receiving medical assistance described in section
1905(a)(4)(C) as a result of such amendment, and who becomes
ineligible for such assistance because of hours of, or income
from, employment, may remain eligible for such medical
assistance through the end of the 6-month period that begins
on the first day the individual becomes so ineligible.
``(2) Additional extension.--A State plan amendment made
under subsection (a) may provide that any individual who has
received medical assistance described in section
1905(a)(4)(C) during the entire 6-month period described in
paragraph (1) may be extended coverage for such assistance
for a succeeding 6-month period.''.
(b) Effective Date.--The amendments made by subsection (a)
apply to medical assistance provided on and after October 1,
2005.

SEC. 356. STATE OPTION TO EXTEND THE POSTPARTUM PERIOD FOR
PROVISION OF FAMILY PLANNING SERVICES AND
SUPPLIES.

(a) In General.--Section 1902(e)(5) of the Social Security
Act (42 U.S.C. 1396a(e)(5)) is amended--
(1) by striking ``eligible under the plan, as though'' and
inserting ``eligible under the plan--
``(A) as though'';
(2) by striking the period and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(B) for medical assistance described in section
1905(a)(4)(C) for so long as the family income of such woman
does not exceed the maximum income level established by the
State for the woman to be eligible for medical assistance
under the State plan (as a result of pregnancy or
otherwise).''.
(b) Effective Date.--The amendments made by subsection (a)
apply to medical assistance provided on and after October 1,
2005.

[[Page S202]]

SEC. 357. STATE OPTION TO PROVIDE WRAP-AROUND SCHIP COVERAGE
TO CHILDREN WHO HAVE OTHER HEALTH COVERAGE.

(a) In General.--
(1) SCHIP.--
(A) State option to provide wrap-around coverage.--Section
2110(b) of the Social Security Act (42 U.S.C. 1397jj(b)) is
amended--
(i) in paragraph (1)(C), by inserting ``, subject to
paragraph (5),'' after ``under title XIX or''; and
(ii) by adding at the end the following:
``(5) State option to provide wrap-around coverage.--A
State may waive the requirement of paragraph (1)(C) that a
targeted low-income child may not be covered under a group
health plan or under health insurance coverage, if the State
satisfies the conditions described in subsection (c)(8). The
State may waive such requirement in order to provide--
``(A) services for a child with special health care needs;
or
``(B) all services.

In waiving such requirement, a State may limit the
application of the waiver to children whose family income
does not exceed a level specified by the State, so long as
the level so specified does not exceed the maximum income
level otherwise established for other children under the
State child health plan.''.
(B) Conditions described.--Section 2105(c) of the Social
Security Act (42 U.S.C. 1397ee(c)) is amended by adding at
the end the following:
``(8) Conditions for provision of wrap-around coverage.--
For purposes of section 2110(b)(5), the conditions described
in this paragraph are the following:
``(A) Income eligibility.--The State child health plan
(whether implemented under title XIX or this XXI)--
``(i) has the highest income eligibility standard permitted
under this title as of January 1, 2005;
``(ii) subject to subparagraph (B), does not limit the
acceptance of applications for children; and
``(iii) provides benefits to all children in the State who
apply for and meet eligibility standards.
``(B) No waiting list imposed.--With respect to children
whose family income is at or below 200 percent of the poverty
line, the State does not impose any numerical limitation,
waiting list, or similar limitation on the eligibility of
such children for child health assistance under such State
plan.
``(C) No more favorable treatment.--The State child health
plan may not provide more favorable coverage of dental
services to the children covered under section 2110(b)(5)
than to children otherwise covered under this title.''.
(C) State option to waive waiting period.--Section
2102(b)(1)(B) of the Social Security Act (42 U.S.C.
1397bb(b)(1)(B)), as amended by section 2(b)(3)(B), is
amended--
(i) in clause (ii), by striking ``, and'' at the end and
inserting a semicolon;
(ii) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(iii) by adding at the end the following new clause:
``(iv) at State option, may not apply a waiting period in
the case of a child described in section 2110(b)(5), if the
State satisfies the requirements of section 2105(c)(8).''.
(2) Application of enhanced match under medicaid.--Section
1905 of the Social Security Act (42 U.S.C. 1396d), as amended
by section 2(a)(2), is amended--
(A) in subsection (b), in the fourth sentence, by striking
``or (u)(4)'' and inserting ``(u)(4), or (u)(5)''; and
(B) in subsection (u)--
(i) by redesignating paragraph (5) as paragraph (6); and
(ii) by inserting after paragraph (4) the following:
``(5) For purposes of subsection (b), the expenditures
described in this paragraph are expenditures for items and
services for children described in section 2110(b)(5), but
only in the case of a State that satisfies the requirements
of section 2105(c)(8).''.
(3) Application of secondary payor provisions.--Section
2107(e)(1) of the Social Security Act (42 U.S.C.
1397gg(e)(1)), as amended by section 3(b), is amended by
adding at the end the following:
``(F) Section 1902(a)(25) (relating to coordination of
benefits and secondary payor provisions) with respect to
children covered under a waiver described in section
2110(b)(5).''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on January 1, 2005, and shall apply to
child health assistance and medical assistance provided on or
after that date.

SEC. 358. INNOVATIVE OUTREACH PROGRAMS.

Title XXI of the Social Security Act (42 U.S.C. 1397aa et
seq.), as amended by section 351(b), is amended by adding at
the end the following:

``SEC. 2112. EXPANDED OUTREACH ACTIVITIES.

``(a) In General.--Funds made available under subsection
(f) for expenditure under this section for a fiscal year
shall be used by the Secretary to award grants to eligible
entities to conduct innovative outreach and enrollment
efforts that are designed to increase the enrollment and
participation of eligible children under this title and title
XIX.
``(b) Priority for Grants in Certain Areas.--In making
grants under subsection (a), the Secretary shall give
priority to eligible entities that propose to target
geographic areas with high rates of--
``(1) eligible but unenrolled children, including such
children who reside in rural areas;
``(2) families for whom English is not their primary
language; or
``(3) racial and ethnic minorities and health disparity
populations
``(c) Application.--An eligible entity that desires to
receive a grant under this section shall submit an
application to the Secretary in such form and manner, and
containing such information, as the Secretary may decide.
Such application shall include--
``(1) quality and outcomes performance measures to evaluate
the effectiveness of activities funded by a grant under this
paragraph to ensure that the activities are meeting their
goals; and
``(2) an assurance that the entity will--
``(A) collect and report enrollment data; and
``(B) disseminate findings from evaluations of the
activities funded under the grant.
``(d) Report.--The Secretary shall report to Congress on an
annual basis the results of the outreach efforts under grants
awarded under this section.
``(e) Definition of Eligible Entity.--In this section, the
term `eligible entity' means any of the following:
``(1) A State.
``(2) A national, local, or community-based public or
nonprofit private organization.
``(f) Appropriation.--For the purpose of awarding grants to
eligible entities under this section, there is appropriated,
out of any money in the Treasury not otherwise appropriated,
$50,000,000 for each of fiscal years 2006 and 2007.''.

Subtitle C--Affirming the Importance of Medicaid

SEC. 361. SENSE OF THE SENATE.

(a) Findings.--The Senate makes the following findings:
(1) The Medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) provides essential
health care and long-term care coverage to more than
50,000,000 low-income children, pregnant women and families,
individuals with disabilities, and senior citizens. It is a
Federal guarantee that even the most vulnerable will have
access to needed medical services.
(2) Medicaid provides health insurance for more than \1/4\
of America's children and is the largest purchaser of
maternity care, paying for more than \1/3\ of all the births
in the United States each year.
(3) Medicaid provides critical help for the elderly and
individuals living with disabilities. Medicaid is America's
single largest purchaser of nursing home services and other
long-term care, covering the majority of nursing home
residents.
(4) Medicaid pays for personal care and other supportive
services, which are typically not provided by private health
insurance, even if individuals could obtain it. These
services are necessary to enable individuals with spinal cord
injuries, developmental disabilities, neurological
degenerative diseases, serious and persistent mental
illnesses, HIV/AIDS, and other chronic conditions to remain
in the community, to work, and to maintain independence.
(5) Medicaid is an essential supplement to the Medicare
program under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) for more than 6,000,000 Medicare
beneficiaries who are low-income elderly or disabled,
assisting them with their Medicare premiums and co-insurance,
wrap-around benefits, and, in most States, the costs of
nursing home care that Medicare does not cover.
(6) About 42 percent of all Medicaid spending is for those
who are elderly or are living with disabilities and are
dually eligible for Medicare and Medicaid.
(7) Medicaid faces an ever growing burden as a result of
Medicare's gaps. The Medicaid program spent nearly
$40,000,000,000 on uncovered Medicare services in 2002.
Medicaid payments for low-income Medicare beneficiary cost-
sharing are the largest and fastest growing share of Medicaid
spending.
(8) The Medicare drug benefit imposes additional costs on
States, which will add to the already significant long-term
care cost burden. Medicaid spending on Medicare
beneficiaries' long-term care costs is expected to double
from $25,000,000,000 in 2002 to $51,000,000,000 in 2012.
(9) Medicaid helps ensure access to care for all Americans.
Medicaid is the single largest source of revenue for the
Nation's safety net hospitals and health centers and is
critical to the ability of those providers to serve Medicaid
enrollees and uninsured Americans.
(10) Medicaid serves a major role in ensuring that the
number of Americans without health insurance, approximately
45,000,000 in 2003, is not substantially higher. Medicaid
helps buffer the drop in private coverage during recessions.
More than 4,800,000 Americans lost employer sponsored
coverage between 2000 and 2003. Medicaid covered an
additional 5,800,000 Americans during this period, preventing
even greater numbers of uninsured.
(11) Medicaid matters to women in America. More than
16,000,000 women depend on Medicaid for their health care.
Women comprise the majority of seniors (71 percent) on
Medicaid. Half of nonelderly women with permanent mental or
physical disabilities have health coverage through Medicaid.
Medicaid provides treatment for low-income women diagnosed
with breast or cervical cancer in every State.
(12) Medicaid is critical for children with disabilities.
Medicaid covers 78 percent of poor children with disabilities
who are under

[[Page S203]]

5 years of age and 70 percent of poor children with
disabilities who are between the ages of 5 and 17. Similarly,
Medicaid covers a substantial portion of children with
disabilities who are near poor, covering 40 percent of
children with disabilities who are under 5 years of age and
25 percent of children with disabilities who are between the
ages of 5 and 17.
(13) Medicaid is the Nation's largest source of payment for
mental health services, HIV/AIDS care, and care for children
with special needs. Much of this care is either not covered
by private insurance or limited in scope or duration.
Medicaid is also a critical source of funding for health care
for children in foster care and for health services in
schools.
(14) The need for Medicaid is greater than ever today,
because the number of Americans living in poverty has
increased by 8,000,000 over the last 4 years and the number
of the uninsured has increased by 5,000,000.
(15) The system of Federal matching for State Medicaid
expenditures ensures that Federal funds will grow as State
spending increases in response to unmet needs.
(16) Despite the varied population served by the Medicaid
program, including those with significant health care needs,
Medicaid per capita growth has been consistently about half
the rate of growth in private insurance premiums and Medicaid
has far lower administrative costs. Medicaid costs less per
person than private coverage for people who have similar
health status.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) the Medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) is a critical component
of the health care system of the United States;
(2) Federal support for the Medicaid program must be
adequate to support State spending meeting the essential
health needs of the low-income elderly, low-income
individuals with disabilities, and low-income children and
families, and should not be cut or capped; and
(3) any retreat from the Federal commitment to Medicaid
would threaten not only the health care safety net of the
United States but the entire health care system

TITLE IV--REDUCING HEALTH CARE COSTS FOR SMALL EMPLOYERS

Subtitle A--Tax Relief

SEC. 401. REFUNDABLE CREDIT FOR SMALL BUSINESS EMPLOYEE
HEALTH INSURANCE EXPENSES.

(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by redesignating section 36 as
section 37 and inserting after section 35 the following new
section:

``SEC. 36. SMALL BUSINESS EMPLOYEE HEALTH INSURANCE EXPENSES.

``(a) Determination of Amount.--In the case of a qualified
small employer, there shall be allowed as a credit against
the tax imposed by this subtitle for the taxable year an
amount equal to the expense amount described in subsection
(b) paid by the taxpayer during the taxable year.
``(b) Expense Amount.--For purposes of this section--
``(1) In general.--The expense amount described in this
subsection is the applicable percentage of the amount of
qualified employee health insurance expenses of each
qualified employee.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is equal to--
``(A) for any qualified small employer described in
subparagraph (A) of paragraph (4), 50 percent,
``(B) for any qualified small employer described in
subparagraph (B) of paragraph (4), 35 percent, and
``(C) for any qualified small employer described in
subparagraph (C) of paragraph (4), 25 percent.
``(3) Per employee dollar limitation.--The amount of
qualified employee health insurance expenses taken into
account under paragraph (1) with respect to any qualified
employee for any taxable year shall not exceed--
``(A) $1,500 in the case of self-only coverage; and
``(B) $3,500 in the case of family coverage.
``(4) Qualified small employers described.--A qualified
small employer is described in--
``(A) this subparagraph if such employer employed an
average of 9 or fewer employees (as determined under
subsection (c)(1)(A)(ii)),
``(B) this subparagraph if such employer employed an
average of more than 9 but less than 25 employees (as so
determined), and
``(C) this subparagraph if such employer employed an
average of more than 24 but not more than 50 employees (as so
determined).
``(c) Definitions.--For purposes of this section--
``(1) Qualified small employer.--
``(A) In general.--The term `qualified small employer'
means, with respect to any calendar year, any employer if--
``(i) such employer pays or incurs at least 75 percent of
the qualified employee health insurance expenses of each
qualified employee (determined without regard to subsection
(b)(3)), and
``(ii) such employer employed an average of 50 or fewer
employees on business days during either of the 2 preceding
calendar years.

For purposes of clause (ii), a preceding calendar year may be
taken into account only if the employer was in existence
throughout such year.
``(B) Employers not in existence in preceding year.--In the
case of an employer which was not in existence throughout the
1st preceding calendar year, the determination under
subparagraph (A)(ii) shall be based on the average number of
employees that it is reasonably expected such employer will
employ on business days in the current calendar year.
``(2) Qualified employee health insurance expenses.--
``(A) In general.--The term `qualified employee health
insurance expenses' means any amount paid by an employer for
health insurance coverage (as defined in section 9832(b)(1))
to the extent such amount is attributable to coverage
provided to any employee while such employee is a qualified
employee.
``(B) Exception for amounts paid under salary reduction
arrangements.--No amount paid or incurred for health
insurance coverage pursuant to a salary reduction arrangement
shall be taken into account under subparagraph (A).
``(3) Qualified employee.--
``(A) In general.--The term `qualified employee' means,
with respect to any period, an employee of an employer if--
``(i) the annual amount of hours in the employ of such
employer by such employee is at least 400 hours,
``(ii) the total amount of wages paid or incurred by such
employer to such employee at an annual rate during the
taxable year is at least $5,000, and
``(iii) such employee is not eligible for--

``(I) any benefits under title XVIII, XIX, or XXI of the
Social Security Act, or
``(II) any other publicly-sponsored health insurance
program.

``(B) Treatment of certain employees.--For purposes of
subparagraph (A), the term `employee'--
``(i) shall not include an employee within the meaning of
section 401(c)(1), and
``(ii) shall include a leased employee within the meaning
of section 414(n).
``(C) Wages.--The term `wages' has the meaning given such
term by section 3121(a) (determined without regard to any
dollar limitation contained in such section).
``(d) Certain Rules Made Applicable.--For purposes of this
section, rules similar to the rules of section 52 shall
apply.
``(e) Coordination With Deduction for Health Insurance
Costs of Self-Employed Individuals.--In the case of a
taxpayer who is eligible to deduct any amount under section
162(l) for the taxable year, this section shall apply only if
the taxpayer elects not to claim any amount as a deduction
under such section for such year.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 36 of such Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by striking the last item and inserting the
following new items:

``Sec. 36. Small business employee health insurance expenses.
``Sec. 37. Overpayments of tax.''.

(e) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2005.

Subtitle B--Three-Share Program

SEC. 421. THREE-SHARE PROGRAMS.

The Social Security Act (42 U.S.C. 301 et seq.) is amended
by adding at the end the following:

``TITLE XXII--PROVIDING FOR THE UNINSURED

``SEC. 2201. THREE-SHARE PROGRAMS.

``(a) Pilot Programs.--The Secretary, acting through the
Administrator, shall award grants under this section for the
startup and operation of 25 eligible three-share pilot
programs for a 5-year period.
``(b) Grants for Three-Share Programs.--
``(1) Establishment.--The Administrator may award grants to
eligible entities--
``(A) to establish three-share programs;
``(B) to provide for contributions to the premiums assessed
for coverage under a three-share program as provided for in
subsection (c)(2)(B)(iii); and
``(C) to establish risk pools.
``(2) Three-share program plan.--Each entity desiring a
grant under this subsection shall develop a plan for the
establishment and operation of a three-share program that
meets the requirements of paragraphs (2) and (3) of
subsection (c).
``(3) Application.--Each entity desiring a grant under this
subsection shall submit an application to the Administrator
at such time, in such manner and containing such information
as the Administrator may require, including--
``(A) the three-share program plan described in paragraph
(2); and
``(B) an assurance that the eligible entity will--
``(i) determine a benefit package;
``(ii) recruit businesses and employees for the three-share
program;
``(iii) build and manage a network of health providers or
contract with an existing network or licensed insurance
provider;
``(iv) manage all administrative needs; and

[[Page S204]]

``(v) establish relationships among community, business,
and provider interests.
``(4) Priority.--In awarding grants under this section the
Secretary shall give priority to an applicant--
``(A) that is an existing three-share program;
``(B) that is an eligible three-share program that has
demonstrated community support; or
``(C) that is located in a State with insurance laws and
regulations that permit three-share program expansion.
``(c) Grant Eligibility.--
``(1) In general.--The Secretary, acting through the
Administrator, shall promulgate regulations providing for the
eligibility of three-share programs for participation in the
pilot program under this section.
``(2) Three-share program requirements.--
``(A) In general.--To be determined to be an eligible
three-share program for purposes of participation in the
pilot program under this section a three-share program
shall--
``(i) be either a non-profit or local governmental entity;
``(ii) define the region in which such program will provide
services;
``(iii) have the capacity to carry out administrative
functions of managing health plans, including monthly
billings, verification/enrollment of eligible employers and
employees, maintenance of membership rosters, development of
member materials (such as handbooks and identification
cards), customer service, and claims processing; and
``(iv) have demonstrated community involvement.
``(B) Payment.--To be eligible under paragraph (1), a
three-share program shall pay the costs of services provided
under subparagraph (A)(ii) by charging a monthly premium for
each covered individual to be divided as follows:
``(i) Not more than 30 percent of such premium shall be
paid by a qualified employee desiring coverage under the
three-share program.
``(ii) Not more than 30 percent of such premium shall be
paid by the qualified employer of such a qualified employee.
``(iii) At least 40 percent of such premium shall be paid
from amounts provided under a grant under this section.
``(iv) Any remaining amount shall be paid by the three-
share program from other public, private, or charitable
sources.
``(C) Program flexibility.--A three-share program may set
an income eligibility guideline for enrollment purposes.
``(3) Coverage.--
``(A) In general.--To be an eligible three-share program
under this section, the three-share program shall provide at
least the following benefits:
``(i) Physicians services.
``(ii) In-patient hospital services.
``(iii) Out-patient services.
``(iv) Emergency room visits.
``(v) Emergency ambulance services.
``(vi) Diagnostic lab fees and x-rays.
``(vii) Prescription drug benefits.
``(B) Limitation.--Nothing in subparagraph (A) shall be
construed to require that a three-share program provide
coverage for services performed outside the region described
in paragraph (2)(A)(i).
``(C) Preexisting conditions.--A program described in
subparagraph (A) shall not be an eligible three-share program
under paragraph (1) if any individual can be excluded from
coverage under such program because of a preexisting
health condition.
``(d) Grants for Existing Three-Share Programs To Meet
Certification Requirements.--
``(1) In general.--The Administrator may award grants to
three-share programs that are operating on the date of
enactment of this section.
``(2) Application.--Each eligible entity desiring a grant
under this subsection shall submit an application to the
Administrator at such time, in such manner, and containing
such information as the Administrator may require.
``(e) Application of State Laws.--Nothing in this section
shall be construed to preempt State law.
``(f) Distressed Business Formula.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Administrator of the Health
Resources and Services Administration shall develop a formula
to determine which businesses qualify as distressed
businesses for purposes of this section.
``(2) Effect on insurance market.--Granting eligibility to
a distressed business using the formula under paragraph (1)
shall not interfere with the insurance market. Any business
found to have reduced benefits to qualify as a distressed
business under the formula under paragraph (1) shall not be
eligible to be a three-share program for purposes of this
section.
``(g) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Health Resources and Services
Administration.
``(2) Covered individual.--The term `covered individual'
means--
``(A) a qualified employee; or
``(B) a child under the age of 23 or a spouse of such
qualified employee who--
``(i) lacks access to health care coverage through their
employment or employer;
``(ii) lacks access to health coverage through a family
member;
``(iii) is not eligible for coverage under the medicare
program under title XVIII or the medicaid program under title
XIX; and
``(iv) does not qualify for benefits under the State
Children's Health Insurance Program under title XXI.
``(3) Distressed business.--The term `distressed business'
means a business that--
``(A) in light of economic hardship and rising health care
premiums may be forced to discontinue or scale back its
health care coverage; and
``(B) qualifies as a distressed business according to the
formula under subsection (g).
``(4) Eligible entity.--The term `eligible entity' means an
entity that meets the requirements of subsection (a)(2)(A).
``(5) Qualified employee.--The term `qualified employee'
means any individual employed by a qualified employer who
meets certain criteria including--
``(A) lacking access to health coverage through a family
member or common law partner;
``(B) not being eligible for coverage under the medicare
program under title XVIII or the medicaid program under title
XIX; and
``(C) agreeing that the share of fees described in
subsection (a)(2)(B)(i) shall be paid in the form of payroll
deductions from the wages of such individual.
``(6) Qualified employer.--The term `qualified employer'
means an employer as defined in section 3(d) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 203(d)) who--
``(A) is a small business concern as defined in section
3(a) of the Small Business Act (15 U.S.C. 632);
``(B) is located in the region described in subsection
(a)(2)(A)(i); and
``(C) has not contributed to the health care benefits of
its employees for at least 12 months consecutively or
currently provides insurance but is classified as a
distressed business.
``(h) Evaluation.--Not later than 90 days after the end of
the 5-year period during which grants are available under
this section, the Government Accountability Office shall
submit to the Secretary and the appropriate committees of
Congress a report concerning--
``(1) the effectiveness of the programs established under
this section;
``(2) the number of individuals covered under such
programs;
``(3) any resulting best practices; and
``(4) the level of community involvement.
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section, such
sums as may be necessary for each of fiscal years 2006
through 2011.''.
______

By Mr. DODD (for himself, Mr. Reid, Ms. Mikulski, Ms. Stabenow,
Mr. Rockefeller, and Mr. Schumer):
S. 17. A bill to amend the Help America Vote Act of 2002 to protect
voting rights and to improve the administration of Federal elections,
and for other purposes; to the Committee on Rules and Administration.
Mr. DODD. Mr. President, I ask unanimous consent that the text of the
bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 17

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Voting
Opportunity and Technology Enhancement Rights Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. National Federal write-in absentee ballot.
Sec. 4. Voter verified ballots.
Sec. 5. Requirements for counting provisional ballots.
Sec. 6. Minimum required voting systems and poll workers in polling
places.
Sec. 7. Election day registration.
Sec. 8. Integrity of voter registration list.
Sec. 9. Early voting.
Sec. 10. Acceleration of study on election day as a public holiday.
Sec. 11. Improvements to voting systems.
Sec. 12. Voter registration.
Sec. 13. Establishing voter identification.
Sec. 14. Impartial administration of elections.
Sec. 15. Strengthening the election assistance commission.
Sec. 16. Authorization of appropriations.
Sec. 17. Effective date.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--Congress makes the following findings:
(1) The right of all eligible citizens to vote and have
their vote counted is the cornerstone of a democratic form of
government and the core precondition of government of the
people, by the people, and for the people.
(2) The right of citizens of the United States to vote is a
fundamental civil right guaranteed under the United States
Constitution.
(3) Congress has an obligation to reaffirm the right of
each American to have an equal

[[Page S205]]

opportunity to vote and have that vote counted in Federal
elections, regardless of color, ethnicity, disability,
language, or the resources of the community in which they
live.
(4) Congress has an obligation to ensure the uniform and
nondiscriminatory exercise of that right by removing barriers
in the form of election administration procedures and
technology and insufficient and unequal resources of State
and local governments.
(b) Purposes.--The purposes of this Act are as follows:
(1) To secure the opportunity to participate in democracy
for all eligible American citizens by establishing a national
Federal write-in absentee ballot for Federal elections.
(2) To expand and establish uniform and nondiscriminatory
requirements and standards to remove administrative
procedural barriers and technological obstacles to casting a
vote and having that vote counted in Federal elections.
(3) To expand and establish uniform and nondiscriminatory
requirements and standards to provide for the accessibility,
accuracy, verifiability, privacy, and security of all voting
systems and technology used in Federal elections.
(4) To provide a Federal funding mechanism for the States
to implement the requirements and standards to preserve and
protect voting rights and th integrity of Federal elections
in the United States.

SEC. 3. NATIONAL FEDERAL WRITE-IN ABSENTEE BALLOT.

(a) In General.--
(1) In general.--Title III of the Help America Vote Act of
2002 (42 U.S.C. 15481 et seq.) is amended by adding at the
end the following new subtitle:

``Subtitle C--Additional Requirements

``SEC. 321. USE OF NATIONAL FEDERAL WRITE-IN ABSENTEE BALLOT.

``(a) In General.--Any person who is otherwise qualified to
vote in a Federal election in a State shall be permitted to
use the national Federal write-in absentee ballot prescribed
by the Election Assistance Commission under section 298 to
cast a vote in an election for Federal office.
``(b) Submission and Processing.--
``(1) In general.--Except as otherwise provided in this
section, a national Federal write-in absentee ballot shall be
submitted and processed in the manner provided by law for
absentee ballots in the State involved.
``(2) Deadline.--An otherwise eligible national Federal
write-in absentee ballot shall be counted if postmarked or
signed before the close of the polls on election day and
received by the appropriate State election official on or
before the date which is 10 days after the date of the
election or the date provided for receipt of absentee ballots
under State law, whichever is later.
``(c) Special Rules.--The following rules shall apply with
respect to national Federal write-in absentee ballots:
``(1) In completing the ballot, the voter may designate a
candidate by writing in the name of the candidate or by
writing in the name of a political party (in which case the
ballot shall be counted for the candidate of that political
party).
``(2) In the case of the offices of President and Vice
President, a vote for a named candidate or a vote by writing
in the name of a political party shall be counted as a vote
for the electors supporting the candidate involved.
``(3) Any abbreviation, misspelling, or other minor
variation in the form of the name of a candidate or a
political party shall be disregarded in determining the
validity of the ballot.
``(d) Effective Date.--Each State shall be required to
comply with the requirements of this section on and after
January 1, 2007.''.
(2) Conforming amendment.--Section 401 of the Help America
Vote Act of 2002 (42 U.S.C. 15511) is amended by striking
``and 303'' and inserting ``303, and subtitle C''.
(b) National Federal Write-in Absentee Ballot.--
(1) In general.--Title II of the Help America Vote Act of
2002 (42 U.S.C. 15321 et seq.) is amended by adding at the
end the following new subtitle:

``Subtitle E--Guidance and Standards

``SEC. 297. NATIONAL FEDERAL WRITE-IN ABSENTEE BALLOT.

``(a) Form of Ballot.--The Commission shall prescribe a
national Federal write-in absentee ballot (including a
secrecy envelope and mailing envelope for such ballot) for
use in elections for Federal office.
``(b) Standards.--The Commission shall prescribe standards
for--
``(1) distributing the national Federal write-in absentee
ballot, including standards for distributing such ballot
through the Internet; and
``(2) processing and submission of the national Federal
write-in absentee ballot.''.
(2) Conforming amendment.--Section 202 of the Help America
Vote Act of 2002 (42 U.S.C. 15322) is amended by
redesignating paragraphs (5) and (6) as paragraphs (6) and
(7), respectively, and by inserting after paragraph (4) the
following new paragraph:
``(5) carrying out the duties described in subtitle E.''.
(c) Coordination With Uniformed and Overseas Citizens
Absentee Voting Act.--
(1) In general.--The Presidential designee under the
Uniformed and Overseas Absentee Voting Act, in consultation
with the Election Assistance Commission, shall facilitate the
use and return of the national Federal write-in ballot for
absent uniformed services voters and overseas voters.
(2) Definitions.--The terms ``absent uniformed service
voter'' and ``overseas voter'' shall have the meanings given
such terms by section 107 of the Uniformed and Overseas
Citizens Absentee Voting Act (42 U.S.C. 1973gg-6).

SEC. 4. VOTER VERIFIED BALLOTS.

(a) Verification.--
(1) In general.--Section 301(a) of the Help America Vote
Act of 2002 (42 U.S.C. 15481(a)) is amended by adding at the
end the following new paragraph:
``(7) Voter verified ballots.--In order to meet the
requirements of paragraph (1)(A)(i), on and after January 1,
2009:
``(A) The voting system shall provide an independent means
of voter verification which meets the requirements of
subparagraph (B) and which allows each voter to verify the
ballot before it is cast and counted.
``(B) A means of voter verification meets the requirements
of this subparagraph if the voting system allows the voter to
choose from one of the following options to verify the
voter's vote selection:
``(i) A paper record.
``(ii) An audio record.
``(iii) A pictorial record.
``(iv) An electronic record or other means that provides
for voter verification that is accessible for individuals
with disabilities, including nonvisual accessibility for the
blind and visually impaired, in a manner that provides
privacy and independence equal to that provided for other
voters.
``(C) Any means of verification described in clause (ii),
(iii), or (iv) of subparagraph (B) must provide verification
which is equal or superior to verification through the use of
a paper record.
``(D) The requirements of this paragraph shall not apply to
any voting system purchased before January 1, 2009, in order
to meet the requirements of paragraph (3)(B).''.
(2) Conforming amendment.--Clause (i) of section
301(a)(1)(A) of the Help America Vote Act of 2002 (42 U.S.C.
15481(a)(1)(A)(i)) is amended by inserting ``and consistent
with the requirements of paragraphs (2), (4), and (7)'' after
``independent manner''.
(b) Guidance.--Subtitle E of Title II of the Help America
Vote Act of 2002, as added by this Act, is amended by adding
at the end the following new section:

``SEC. 298. VOTER VERIFIED BALLOTS.

``The Commission shall issue uniform and nondiscriminatory
standards--
``(1) for voter verified ballots required under section
301(a)(7); and
``(2) for meeting the audit requirements of section
301(a)(2).''.
(c) Reports.--
(1) Election assistance commission.--Section 207 of the
Help America Vote Act of 2002 (42 U.S.C. 15327) is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) A description of the progress on implementing the
voter verified ballot requirements of section 301(a)(7) and
the impact of the use of such requirements on the
accessibility, privacy, security, usability, and auditability
of voting systems.''.
(2) State reports.--Section 258 of the Help America Vote
Act of 2002 (42 U.S.C. 15408) is amended by striking ``and''
at the end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting ``; and'', and by adding
at the end the following new paragraph:
``(4) an analysis and description in the form and manner
prescribed by the Commission of the progress on implementing
the voter verified ballot requirements of section
301(a)(7).''.

SEC. 5. REQUIREMENTS FOR COUNTING PROVISIONAL BALLOTS.

(a) In General.--Section 302 of the Help America Vote Act
of 2002 (42 U.S.C. 15482) is amended by redesignating
subsection (d) as subsection (e) and by inserting after
subsection (c) the following new subsection:
``(d) Statewide Counting of Provisional Ballots.--For
purposes of subsection (a)(4), notwithstanding at which
polling place a provisional ballot is cast within the State,
the State shall count such ballot if the individual who cast
such ballot is otherwise eligible to vote.''.
(b) Effective Date.--
(1) In general.--Subsection (e) of section 302 of the Help
America Vote Act of 2002 (42 U.S.C. 15482(e)), as
redesignated under subsection (a), is amended by adding at
the end the following:
``(2) Effective date for statewide counting of provisional
ballots.--Each State shall be required to comply with the
requirements of subsection (d) on and after January 1,
2007.''.
(2) Conforming amendment.--Subsection (e) of section 302 of
the Help America Vote Act of 2002 (42 U.S.C. 15482(e)), as
redesignated under subsection (a), is amended by striking
``Each'' and inserting the following:
``(1) In general.--Except as provided in paragraph (2),
each''.

SEC. 6. MINIMUM REQUIRED VOTING SYSTEMS AND POLL WORKERS IN
POLLING PLACES.

(a) In General.--Subtitle C of title III of the Help
America Vote Act of 2002, as added by this Act, is amended by
adding at the end the following new section:

``SEC. 322. MINIMUM REQUIRED VOTING SYSTEMS AND POLL WORKERS.

``(a) In General.--Each State shall provide for the minimum
required number of voting

[[Page S206]]

systems and poll workers for each polling place on the day of
any Federal election and on any days during which such State
allows early voting for a Federal election in accordance with
the standards determined under section 299A
``(b) Effective Date.--Each State shall be required to
comply with the requirements of this section on and after
January 1, 2007.''.
(b) Standards.--Subtitle E of the Help America Vote Act of
2002, as added and amended by this Act, is amended by adding
at the end the following new section:

``SEC. 299. STANDARDS FOR ESTABLISHING THE MINIMUM REQUIRED
VOTING SYSTEMS AND POLL WORKERS.

``(a) In General.--The Commission shall issue standards
regarding the minimum number of voting systems and poll
workers required in each polling place on the day of any
Federal election and on any days during which early voting is
allowed for a Federal election.
``(b) Distribution.--The standards described in subsection
(a) shall provide for a uniform and nondiscriminatory
geographic distribution of such systems and workers.
``(c) Deviation.--The standards described in subsection (a)
shall permit States, upon providing adequate public notice,
to deviate from any allocation requirements in the case of
unforseen circumstances such as a natural disaster, terrorist
attack, or a change in voter turnout.''.

SEC. 7. ELECTION DAY REGISTRATION.

(a) Requirement.--Subtitle C of title III of the Help
America Vote Act of 2002 is, as added and amended by this
Act, is amended by adding at the end the following new
section:

``SEC. 323. ELECTION DAY REGISTRATION.

``(a) In General.--
``(1) Registration.--Notwithstanding section 8(a)(1)(D) of
the National Voter Registration Act of 1993 (42 U.S.C.
1973gg-6), each State shall permit any individual on the day
of a Federal election--
``(A) to register to vote in such election at the polling
place using the form established by the Election Assistance
Commission pursuant to section 297; and
``(B) to cast a vote in such election.
``(2) Exception.--The requirements under paragraph (1)
shall not apply to a State in which, under a State law in
effect continuously on and after the date of the enactment of
this Act, there is no voter registration requirement for
individuals in the State with respect to elections for
Federal office.
``(b) Effective Date.--Each State shall be required to
comply with the requirements of subsection (a) on and after
January 1, 2007.''.
(b) Election Day Registration Form.--Subtitle E of Title II
of the Help America Vote Act of 2002, as added and amended by
this Act, is amended by adding at the end the following new
section:

``SEC. 299A. ELECTION DAY REGISTRATION FORM.

``The Commission shall develop an election day registration
form for elections for Federal office.''.

SEC. 8. INTEGRITY OF VOTER REGISTRATION LIST.

Subtitle C of title III of the Help America Vote Act of
2002, as added and amended by this Act, is amended by adding
at the end the following new section:

``SEC. 324. REMOVAL FROM VOTER REGISTRATION LIST.

``(a) Public Notice.--Not later than 45 days before any
Federal election, each State shall provide public notice of
all names which have been removed from the voter registration
list of such State under section 303 since the later of the
most recent election for Federal office or the day of the
most recent previous public notice provided under this
section.
``(b) Notice to Individual Voters.--
``(1) In general.--No individual shall be removed from the
voter registration list under section 303 unless such
individual is first provided with a notice which meets the
requirements of paragraph (2).
``(2) Requirements of notice.--The notice required under
paragraph (1) shall be--
``(A) provided to each voter in a uniform and
nondiscriminatory manner;
``(B) consistent with the requirements of the National
Voter Registration Act of 1993 (42 U.S.C. 1973gg et seq.);
and
``(C) in the form and manner prescribed by the Election
Assistance Commission.
``(c) Effective Date.--Each State shall be required to
comply with the requirements of this section on and after
January 1, 2007.''.

SEC. 9. EARLY VOTING.

(a) In General.--Subtitle C of title III of the Help
America Vote Act of 2002, as added and amended by this Act,
is amended by adding at the end the following new section:

``SEC. 325. EARLY VOTING.

``(a) In General.--Each State shall allow individuals to
vote in an election for Federal office not less than 15 days
prior to the day scheduled for such election in the same
manner as voting is allowed on such day.
``(b) Minimum Early Voting Requirements.--Each polling
place which allows voting prior to the day of a Federal
election pursuant to subsection (a) shall--
``(1) allow such voting for no less than 4 hours on each
day (other than Sunday); and
``(2) have uniform hours each day for which such voting
occurs.
``(c) Effective Date.--Each State shall be required to
comply with the requirements of this section on and after
January 1, 2007.''.
(b) Standards for Early Voting.--Subtitle E of the Help
America Vote Act of 2002, as added and amended by this Act,
is amended by adding at the end the following new section:

``SEC. 299B. STANDARDS FOR EARLY VOTING.

``(a) In General.--The Commission shall issue standards for
the administration of voting prior to the day scheduled for a
Federal election. Such standards shall include the
nondiscriminatory geographic placement of polling places at
which such voting occurs.
``(b) Deviation.--The standards described in subsection (a)
shall permit States, upon providing adequate public notice,
to deviate from any requirement in the case of unforseen
circumstances such as a natural disaster, terrorist attack,
or a change in voter turnout.''.

SEC. 10. ACCELERATION OF STUDY ON ELECTION DAY AS A PUBLIC
HOLIDAY.

(a) In General.--Section 241 of the Help America Vote Act
of 2002 (42 U.S.C. 15381) is amended by adding at the end the
following new subsection:
``(d) Report on Election Day.--
``(1) In general.--The report required under subsection (a)
with respect to election administration issues described in
subsection (b)(10) shall be submitted not later than 6 months
after the date of the enactment of the Voting Enhancement and
Technology Accuracy Rights Act of 2005.
``(2) Authorization of appropriations.--Of the amount
authorized to be appropriated under section 210 for fiscal
year 2006, $100,000 shall be authorized solely to carry out
the purposes of this subsection.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

SEC. 11. IMPROVEMENTS TO VOTING SYSTEMS.

(a) In General.--Subparagraph (B) of section 301(a)(1) of
the Help America Vote Act of 2002 (42 U.S.C. 15481(a)(1)(B))
is amended by striking ``, a punch card voting system, or a
central count voting system''.
(b) Clarification of Requirements for Punch Card Systems.--
Subparagraph (A) of section 301(a)(1) of the Help America
Vote Act of 2002 (42 U.S.C. 15481(a)(1)(A)) is amended by
inserting ``punch card voting system,'' after ``any''.

SEC. 12. VOTER REGISTRATION.

(a) In General.--Paragraph (4) of section 303(b) of the
Help America Vote Act of 2002 (42 U.S.C. 15483(b)(4)) is
amended by adding at the end the following new subparagraph:
``(C) Exception.--On and after January 1, 2007--
``(i) in lieu of the questions and statements required
under subparagraph (A), such mail voter registration form
shall include an affidavit to be signed by the registrant
attesting both to citizenship and age; and
``(ii) subparagraph (B) shall not apply.''.
(b) Internet Registration.--Subtitle C of title III of the
Help America Vote Act of 2002, as added and amended by this
Act, is amended by adding at the end the following new
section:

``SEC. 326. INTERNET REGISTRATION.

``(a) Internet Registration.--Each State shall establish a
program under which individuals may access and submit voter
registration forms electronically through the Internet.
``(b) Effective Date.--Each State shall be required to
comply with the requirements of this section on and after
January 1, 2009.''.
(c) Standards for Internet Registration.--Subtitle E of the
Help America Vote Act of 2002, as added and amended by this
Act, is amended by adding at the end the following new
section:

``SEC. 299C. STANDARDS FOR INTERNET REGISTRATION PROGRAMS.

``The Commission shall establish standards regarding the
design and operation of programs which allow electronic voter
registration through the Internet.''.

SEC. 13. ESTABLISHING VOTER IDENTIFICATION.

(a) In General.--
(1) In person voting.--Clause (i) of section 303(b)(2)(A)
of the Help America Vote Act of 2002 (42 U.S.C.
15483(b)(2)(A)(i)) is amended by striking ``or'' at the end
of subclause (I) and by adding at the end the following new
subclause:

``(III) executes a written affidavit attesting to such
individual's identity; or''.

(2) Voting by mail.--Clause (ii) of section 303(b)(2)(A) of
the Help America Vote Act of 2002 (42 U.S.C.
15483(b)(2)(A)(ii)) is amended by striking ``or'' at the end
of subclause (I), by striking the period at the end of
subclause (II) and inserting ``; or'', and by adding at the
end the following new subclause:

``(III) a written affidavit, executed by such individual,
attesting to such individual's identity.''.

(b) Standards for Verifying Voter Information.--Subtitle E
of the Help America Vote Act of 2002, as added and amended by
this Act, is amended by adding at the end the following new
section:

``SEC. 299D. VOTER IDENTIFICATION.

``The Commission shall develop standards for verifying the
identification information required under section 303(a)(5)
in connection with the registration of an individual to vote
in a Federal election.''.

SEC. 14. IMPARTIAL ADMINISTRATION OF ELECTIONS.

Subtitle C of title III of the Help America Vote Act of
2002, as added and amended by this Act, is amended by adding
at the end the following new section:

``SEC. 327. ELECTION ADMINISTRATION REQUIREMENTS.

``(a) Notice of Changes in State Election Laws.--Not later
than 15 days prior to any Federal election, each State shall
issue a

[[Page S207]]

public notice describing all changes in State law affecting
the administration of Federal elections since the most recent
prior election.
``(b) Observers.--
``(1) In general.--Each State shall allow uniform and
nondiscriminatory access to any polling place for purposes of
observing a Federal election to--
``(A) party challengers;
``(B) voting rights and civil rights organizations; and
``(C) nonpartisan domestic observers and international
observers.
``(2) Notice of denial of observation request.--Each State
shall issue a public notice with respect to any denial of a
request by any observer described in paragraph (1) for access
to any polling place for purposes of observing a Federal
election. Such notice shall be issued not later than 24 hours
after such denial.
``(c) Effective Date.--Each State shall be required to
comply with the requirements of this section on and after
January 1, 2007.''.

SEC. 15. STRENGTHENING THE ELECTION ASSISTANCE COMMISSION.

(a) Budget Requests.--Part 1 of subtitle A of title II of
the Help America Vote Act of 2002 (42 U.S.C. 15321 et seq.)
is amended by inserting after section 209 the following new
section:

``SEC. 209A. SUBMISSION OF BUDGET REQUESTS.

``Whenever the Commission submits any budget estimate or
request to the President or the Office of Management and
Budget, it shall concurrently transmit a copy of such
estimate or request to the Congress and to the Committee on
House Administration of the House of Representatives and the
Committee on Rules and Administration of the Senate.''.
(b) Exemption From Paperwork Reduction Act.--Paragraph (1)
of section 3502 of title 44, United States Code, is amended
by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (C), (D), and (E), respectively, and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) the Election Assistance Commission;''.
(c) Rulemaking.--Section 209 of the Help America Vote Act
of 2002 (42 U.S.C. 15239) is amended--
(1) by striking ``The Commission'' and inserting the
following:
``(a) In General.--Except as provided in subsection (b),
the Commission'', and
(2) by inserting at the end the following new subsection:
``(b) Exception.--On and after January 1, 2007, subsection
(a) shall not apply to any authority granted under subtitle E
of this title or subtitle C of title III.''.
(d) NIST Authority.--Subtitle E of title II of the Help
America Vote Act of 2002, as added and amended by this Act,
is amended by adding at the end the following new section:

``SEC. 299E. TECHNICAL SUPPORT.

``At the request of the Commission, the Director of the
National Institute of Standards and Technology shall provide
the Commission with technical support necessary for the
Commission to carry out its duties under this title.''.
(e) Authorization of Appropriations.--Section 210 of the
Help America Vote Act of 2002 (42 U.S.C. 15330) is amended by
striking ``for each of fiscal years 2003 through 2005 such
sums as may be necessary (but not to exceed $10,000,000 for
each such year)'' and inserting ``$23,000,000 for fiscal year
2006 (of which $3,000,000 are authorized solely to carry out
the purposes of section 299E) and such sums as may be
necessary for succeeding fiscal years''.

SEC. 16. AUTHORIZATION OF APPROPRIATIONS.

Subsection (a) of section 257 of the Help America Vote Act
of 2002 (42 U.S.C. 15408(a)) is amended by adding at the end
the following new paragraphs:
``(4) For fiscal year 2006, $2,000,000,000.
``(5) For each fiscal year after 2006, such sums as are
necessary.''.

SEC. 17. EFFECTIVE DATE.

(a) In General.--Except as provided by section 10 and
subsection (b), the amendments made by this Act shall take
effect on January 1, 2007.
(b) Exceptions.--The amendments made by section 4, section
11, section 12(b), and subsections (a) and (b) of section 15
shall take effect on January 1, 2009.
______

By Mr. DAYTON (for himself, Mr. Reid, Ms. Stabenow, Mrs.
Feinstein, Mr. Kennedy, Mr. Corzine, Mr. Schumer, Mrs. Murray,
Ms. Mikulski, Mr. Lautenberg, Mr. Akaka, Mr. Inouye, Mrs.
Clinton, Mr. Levin, Mr. Kerry, Mr. Leahy, Mr. Rockefeller, Mr.
Dodd, Mr. Sarbanes, and Mr. Durbin):
S. 18. A bill to amend title XVIII of the Social Security Act to make
improvements to the medicare program for beneficiaries; to the
Committee on Finance.
Mr. DAYTON. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 18

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Meeting
Our Responsibility to Medicare Beneficiaries Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--ELIMINATING SPECIAL INTEREST PREFERENCES

Sec. 101. Negotiating fair prices for medicare prescription drugs.
Sec. 102. Elimination of MA Regional Plan Stabilization Fund (Slush
Fund).
Sec. 103. Application of risk adjustment reflecting characteristics for
the entire medicare population in payments to Medicare
Advantage organizations.

TITLE II--IMPROVING THE MEDICARE PROGRAM FOR BENEFICIARIES

Sec. 201. Eliminating coverage gap.
Sec. 202. Requiring two prescription drug plans to avoid Federal
fallback.
Sec. 203. Waiver of part D late enrollment penalty for transition
period.
Sec. 204. Improving the transition of full-benefit dual eligible
individuals to coverage under the medicare drug benefit.
Sec. 205. Part B premium reduction.
Sec. 206. Study and report on providing incentives to preserve retiree
coverage.
Sec. 207. Promoting transparency in employer subsidy payments.

TITLE I--ELIMINATING SPECIAL INTEREST PREFERENCES

SEC. 101. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION
DRUGS.

(a) In General.--Section 1860D-11 of the Social Security
Act (42 U.S.C. 1395w-111) is amended by striking subsection
(i) (relating to noninterference) and by inserting the
following new subsection:
``(i) Authority To Negotiate Prices With Manufacturers.--
``(1) In general.--The Secretary shall have authority
similar to that of other Federal entities that purchase
prescription drugs in bulk to negotiate contracts with
manufacturers of covered part D drugs, consistent with the
requirements and in furtherance of the goals of providing
quality care and containing costs under this part.
``(2) Required use of authority.--
``(A) Fallback plans.--The Secretary shall exercise the
authority described in paragraph (1) with respect to covered
part D drugs offered under each fallback prescription drug
plan under subsection (g).
``(B) PDPs and ma-pd plans.--In order to ensure that
beneficiaries enrolled under prescription drug plans and MA-
PD plans and taxpayers are getting fair and affordable prices
for covered part D drugs that reflect the bulk purchasing
power of such enrollees, the Secretary shall exercise the
authority described in paragraph (1) with respect to such
drugs offered under all such plans if the Secretary
determines that the negotiated prices available under such
plans for such drugs are not fair and affordable prices
compared to the prices obtained by other Federal government
programs for such drugs.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of section
101(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2071).

SEC. 102. ELIMINATION OF MA REGIONAL PLAN STABILIZATION FUND
(SLUSH FUND).

(a) In General.--Subsection (e) of section 1858 of the
Social Security Act (42 U.S.C. 1395w-27a) is repealed.
(b) Conforming Amendment.--Section 1858(f)(1) of the Social
Security Act (42 U.S.C. 1395w-27a(f)(1)) is amended by
striking ``subject to subsection (e),''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
221(c) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2181).

SEC. 103. APPLICATION OF RISK ADJUSTMENT REFLECTING
CHARACTERISTICS FOR THE ENTIRE MEDICARE
POPULATION IN PAYMENTS TO MEDICARE ADVANTAGE
ORGANIZATIONS.

Effective January 1, 2006, in applying risk adjustment
factors to payments to organizations under section 1853 of
the Social Security Act (42 U.S.C. 1395w-23), the Secretary
of Health and Human Services shall ensure that payments to
such organizations are adjusted based on such factors to
ensure that the health status of the enrollee is reflected in
such adjusted payments, including adjusting for the
difference between the health status of the enrollee and
individuals enrolled under the original medicare fee-for-
service program under parts A and B of title XVIII of such
Act. Payments to such organizations must, in aggregate,
reflect such differences.

TITLE II--IMPROVING THE MEDICARE PROGRAM FOR BENEFICIARIES

SEC. 201. ELIMINATING COVERAGE GAP.

(a) In General.--Section 1860D-2(b)(4)(B) of the Social
Security Act (42 U.S.C. 1395w-102(b)(4)(B)) is amended to
read as follows:
``(B) Annual out-of-pocket threshold.--For purposes of this
part, the `annual out-of-pocket threshold' specified in this
subparagraph for a year is equal to the greater of--
``(i) $3,600; or
``(ii) the initial coverage limit for the year specified in
paragraph (3).''.

[[Page S208]]

(b) Conforming Amendment.--Section 1860D-22(a)(3)(B)(ii) of
the Social Security Act (42 U.S.C. 1395w-132(b)(4)(B)(ii)) is
amended by striking ``and the annual out-of-pocket threshold,
respectively, are annually adjusted under paragraphs (1) and
(4)(B) of section 1860D-2(b)'' and inserting ``is annually
adjusted under paragraph (1) of section 1860D-2(b) (using the
percentage increase specified in paragraph (6) of such
section)''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
101(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2071).

SEC. 202. REQUIRING TWO PRESCRIPTION DRUG PLANS TO AVOID
FEDERAL FALLBACK.

(a) In General.--Section 1860D-3(a) of the Social Security
Act (42 U.S.C. 1395w-103(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``qualifying plans (as defined in paragraph
(3))'' and inserting ``prescription drug plans''; and
(B) by striking ``, at least one of which is a prescription
drug plan'';
(2) in paragraph (2), by striking ``qualifying plans'' and
inserting ``prescription drug plans''; and
(3) by striking paragraph (3).
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of section
101(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2071).

SEC. 203. WAIVER OF PART D LATE ENROLLMENT PENALTY FOR
TRANSITION PERIOD.

(a) In General.--Section 1860D-13(b) of the Social Security
Act (42 U.S.C. 1895w-113(b)) is amended by adding at the end
the following new paragraph:
``(8) Waiver of penalty for months prior to 2008.--A part D
eligible individual who enrolls for the first time in a
prescription drug plan or an MA-PD plan under this part prior
to January 1, 2008, shall not be subject an increase in the
monthly beneficiary premium established under subsection (a)
with respect to months occurring prior to such date.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of section
101(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (117 Stat. 2071).

SEC. 204. IMPROVING THE TRANSITION OF FULL-BENEFIT DUAL
ELIGIBLE INDIVIDUALS TO COVERAGE UNDER THE
MEDICARE DRUG BENEFIT.

(a) In General.--Notwithstanding subsection (d)(1) of
section 1935 of the Social Security Act (42 U.S.C. 1396u-5),
beginning on January 1, 2006, the Secretary of Health and
Human Services shall administer a 12-month period during
which full-benefit dual eligible individuals (as defined in
section 1935(c)(6) of the Social Security Act) shall
gradually transition from receiving medical assistance for
prescribed drugs under the medicaid program under title XIX
of such Act to obtaining coverage of covered part D drugs (as
defined in section 1860D-2(e) (42 U.S.C. 1395w-102(e)) under
title XVIII of such Act in order to assure that such
individuals continue to receive the outpatient prescription
drugs they need.
(b) Adjustments to Phased-Down State Contribution.--The
Secretary of Health and Human Services shall make appropriate
adjustments to the amount of payments required to be made by
a State or the District of Columbia under section 1935(c) of
the Social Security Act (42 U.S.C. 1396u-5(c)) for months
occurring during the period described in subsection (a) in
order to account for increased costs for the provision of
medical assistance incurred by the State or the District of
Columbia by reason of the application of the transition
period required under this section.

SEC. 205. PART B PREMIUM REDUCTION.

Section 1839(a) of the Social Security Act (42 U.S.C.
1395r(a)) is amended--
(1) in paragraph (3), in the first sentence, by striking
``The Secretary'' and inserting ``Subject to paragraph (5),
the Secretary''; and
(2) by adding at the end the following new paragraph:
``(5) For each year (beginning with 2006), the Secretary
shall reduce the monthly premium rate determined under
paragraph (3) for each month in the year for each individual
enrolled under this part (including such an individual
subject to an increased premium under subsection (b) or (i))
so that the aggregate amount of such reductions in the year
is equal to the aggregate amount of reduced expenditures from
the Federal Supplementary Medicare Insurance Trust Fund in
the year that the Secretary estimates will result from the
provisions of section 103 of the Meeting Our Responsibility
to Medicare Beneficiaries Act of 2005.''.

SEC. 206. STUDY AND REPORT ON PROVIDING INCENTIVES TO
PRESERVE RETIREE COVERAGE.

(a) Study.--The Secretary of Health and Human Services
shall conduct a study to determine what additional incentives
should be provided to employers in order for such employers
to continue to provide retirees with prescription drug
coverage. Such study shall include an assessment of
permitting costs incurred by an employer for covered part D
drugs on behalf of a retiree to be treated as incurred costs
for purposes of reaching the annual out-of-pocket threshold
under section 1860D-2(b)(4) of the Social Security Act (42
U.S.C. 1395w-102(b)(4)).
(b) Report.--Not later than January 1, 2006, the Secretary
of Health and Human Services shall submit to Congress a
report on the study under subsection (a) together with such
recommendations for legislation as the Secretary deems
appropriate.

SEC. 207. PROMOTING TRANSPARENCY IN EMPLOYER SUBSIDY
PAYMENTS.

(a) In General.--Section 1860D-22(a) of the Social Security
Act (42 U.S.C. 1895w-132(a)) is amended by adding at the end
the following new paragraph:
``(7) Disclosure of certain information.--The Secretary
shall make the following information regarding the sponsor of
a qualified prescription drug plan receiving a subsidy under
this section available to the public through the Internet
website of the Centers for Medicare & Medicaid Services and
other appropriate means:
``(A) The information used by the Secretary to ensure that
the prescription drug coverage offered under the plan meets
the requirements for subsidy payments under this section.
``(B) The total amount of the subsidy payments made to the
sponsor under this section.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of section
101(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2071).

Mr. KENNEDY. Mr. President, the Bush Administration and the
Republican Congress are no friend of America's seniors. In 2003, they
enacted legislation to dismantle Medicare, even though Medicare has
helped a generation of seniors live their golden years with health and
dignity.
Now their target is Social Security. They want to privatize this
trusted program for the benefit of Wall Street bankers. They even want
to cut benefits for women because--in the Republican view--they live
too long. It's time to end these shameful attacks on our senior
citizens, restore Medicare and protect Social Security.
I commend the leadership of my colleague from Minnesota, Senator
Dayton, and our Democratic Leader, Senator Reid, in introducing this
urgently needed legislation today to enable Medicare to keep its
promise to the elderly.
Forty years ago, Congress enacted the landmark legislation that
established Medicare. We would do well today to remember President
Lyndon Johnson's words on signing that historic bill in 1965: ``No
longer will older Americans be denied the healing miracle of modern
medicine. No longer will illness crush and destroy the savings they
have so carefully put away over a lifetime so that they might enjoy
dignity in their later years.''
The ruinous Medicare legislation that the Republican Congress enacted
in 2003 breaks that solemn promise.
Before Medicare was created, millions of seniors could obtain health
care coverage only at the whim of the insurance industry. If they were
too sick or too poor to be profitable to an insurance company, they
would be denied health care coverage. Their savings--and their
children's savings--were in jeopardy when illness struck. Before
Medicare, senior citizens were among the poorest Americans, with almost
three in ten living in poverty. Bankruptcies from overwhelming medical
bills were common.
Medicare changed all that, and 40 years later, President Bush and the
Republican Congress are wrong to try to turn back the clock.
Some of my colleagues attempt to portray Medicare as a failure. But
the facts show that it is one of the most successful endeavors the
Nation has ever undertaken. In 1963, before Medicare was enacted,
almost half of America's seniors were uninsured. Today that number is
one in a hundred.
Before Medicare was enacted, Americans turning 65 could expect to
live another 14 years. Today, they can expect almost 18 more years.
Seniors understand that Medicare works. They don't want to return to
the days when they had to gamble their health, their savings and their
lives on risky private insurance.
The 2003 Republican bill was sold to the American people as a way to
help seniors with the high cost of prescription drugs, so you might
think it does something about the high cost of drugs. But it doesn't.
It not only fails to help Medicare lower the cost of drugs--it
actually makes it illegal for Medicare to try. Republicans were so
worried about protecting drug company profits that they made it illegal
for Medicare to do what

[[Page S209]]

the Veterans Administration does for veterans--negotiate discounts on
drug prices. The Bush Administration and the GOP Congress wouldn't dare
to prohibit the VA from doing that for the veterans, and they shouldn't
do it for senior citizens either.
The discounts on drug prices for veterans are substantial. On
average, the price paid by the VA is 45 percent of the retail price,
but often, the savings are even more dramatic. The retail price for
Mevacor is $4 a pill, but the VA pays only 23 cents. The undiscounted
price of Zantac is $1.83, but the VA pays two cents.
Senator Dayton's legislation abolishes the unconscionable provision
that bars Medicare from negotiating discounts on drug prices for
America's seniors. That's not price control--it's common sense.
Republicans also claim that their new drug benefit is ``voluntary.''
Not exactly. If seniors don't sign up the first year, they have to pay
more and more to join in subsequent years. When they need the coverage,
they may not be able to afford it.
Senator Dayton's legislation reverses this flagrant system of fines
and makes the Medicare drug program truly voluntary. When Congress
enacts it, seniors will be able to sign up for the drug program without
facing ruinous fines.
Good prescription drug coverage for senior citizens is a priority for
Democrats. For the Administration and the Republicans in Congress,
however, tax cuts for billionaires are more important than health care
for senior citizens.
In addition, the 2003 Medicare law leaves too many elderly citizens
with unaffordable costs. Seniors with moderate incomes and high drug
expenses still face high drug costs. The benefits under the GOP law--
with its $250 deductible, 25 percent cost-sharing, an out-of-pocket
limit of $3,600 on costs, but continued co-payment obligations even
after the limit is reached--are far less generous than those enjoyed by
most younger Americans, even though the elderly's need for prescription
drugs is much greater.
Senior citizens with an income of $15,000 and drug expenses of $4,000
would have to pay more than $2,900, including premiums, out of their
own pocket. That's too heavy a burden.
If they fall into the so-called doughnut hole, their situation is
much worse. Under the 2003 law, the government makes no contribution to
any drug costs between $2,250 in expenditures and $5,100 in
expenditures. Patients who need $5,200 worth of prescriptions could be
forced to pay $2,850 in drug expenses without any help at all from
Medicare. That's too much for an elderly person to pay and still meet
other essential medical needs, pay the rent or mortgage, and buy food
and other necessities of life.

Senator Dayton's proposal begins to fill in that doughnut hole by not
allowing the cap on total out of pocket expenditures to rise year after
year, as it does under the GOP act. Under Senator Dayton's proposal,
seniors will have the certainty of knowing where that limit is from one
year to the next. As drug expenses rise, more seniors will gain the
benefit of the assistance from Medicare at these high spending levels,
and ultimately, the doughnut hole will close.
The Republican Medicare law is a raw deal for seniors, but it's a
bonanza for the drug industry and the insurance industry.
It gives massive subsidies to HMOs. Most Americans probably think
it's the job of insurance companies to guarantee the health of their
beneficiaries, but according to the Republican view that's wrong. They
make America's seniors guarantee the health and wealth of HMOs.
The government already pays private insurance plans 104 percent of
what it costs Medicare to provide seniors with the same health care.
Republicans claim to be in favor of competition, but the playing field
is tilted toward HMOs, and their 2003 Act tilted it further. You might
think HMOs need that overpayment because they serve sicker or needier
beneficiaries. Not true. Enrollees in private plans are actually
healthier than those in Medicare, resulting in a further bonus of 8.7
percent to the private plans.
Senator Dayton's legislation requires realistic risk adjustment for
private plans that provide services to seniors under Medicare. It
removes the artificial calculations that inflate payments to HMOs and
other private insurance carriers.
Another problem with the 2003 Act is that if the subsidies don't
provide enough profits, the Republican bill provides cash handouts for
the insurance industry. If an HMO doesn't think it can make enough
money in some area of the country, the Bush Administration can simply
ladle out the cash--up to $12 billion a year--until the bribe is high
enough to get the company to participate.
Senator Dayton's legislation reverses this outrageous giveaway and
ensures that the dollars devoted to this slush fund are used instead to
provide better health care for seniors.
The Republican law stacks the deck against seniors in other ways. It
allows a region to be served by only one prescription drug plan, along
with a PPO. That gives the drug plan a monopoly in that region for
seniors who want to remain in Medicare. If the only available drug plan
is tailored to the healthiest and youngest seniors, it might be
acceptable for a senior whose prescription needs are limited. But it
gives no help to seniors who take medications for multiple chronic
conditions every day. Seniors have no real recourse if they can't
afford the monopoly drug plan. The only way they can get prescription
drug coverage is to enroll in the PPO.
Senator Dayton's legislation provides an effective guarantee that
seniors who wish to remain in traditional Medicare will have a genuine
choice of prescription-only plans. If a choice between at least two
private drug-only plans is not available in any region, the Federal
Government will provide a plan. This proposal ensures that any senior
who wishes to remain in Medicare will have access to high-quality
affordable prescription drug coverage.

The Republican Medicare law also dealt a harsh blow to the employer
plans that millions of retirees depend on. The Congressional Budget
Office estimates that almost three million retirees will lose their
current drug coverage, because employers will drop the coverage when
retirees become eligible for the new federal benefit, which is not as
comprehensive.
Democrats fought to include provisions in that flawed legislation to
help employers maintain the good coverage that so many Americans depend
on to meet their needs in retirement. Sadly, some employers could abuse
these subsidies by failing to use them to assist their employees--and
the Bush Administration is letting them get away with it. Toothless
enforcement and weak regulation allow some unscrupulous employers to
pocket the subsidy and weaken the coverage.
Senator Dayton's legislation will put an end to this scandalous
practice by requiring employers to account for the funds they receive
in subsidies. No longer will employers be able to hide that they are
accepting subsidies to maintain retiree health coverage and still cut
back the coverage. The Dayton bill also requires new research on ways
to help employers maintain retiree coverage.
One of the most troubling aspects of the 2003 Act is that it
victimizes six million senior citizens and disabled people on
Medicaid--the poorest of the poor. Their out-of-pocket payments for
drugs will be raised, even though they do not even have coverage for
the drugs they need the most.
Today, under Federal law, people with drug coverage under Medicaid
may be charged only nominal amounts for the drugs they need. The vast
majority of states charge nothing.
For every other Medicare benefit, Medicaid wraps around Medicare
coverage and picks up the out-of-pocket costs that Medicare does not
pay. Not under this legislation. States are prohibited from wrapping
around the Medicare benefits with their Medicaid program. Instead, a
uniform Federal co-payment is imposed. It is indexed, so that it
increases every year. If low income seniors need a drug that is not in
the insurance company formulary, they have to go through a burdensome
appeals process. Most will simply go without the drug they need.
The people we are talking about are truly the poorest of the poor. In
most cases, their incomes are well below poverty. And the impact of
even small

[[Page S210]]

co-payments is devastating. Study after study finds that when the poor
have to pay more for drugs, they end up hospitalized, in nursing homes,
or dead.
Senator Dayton's legislation reverses this cruel provision and allows
States to delay implementing the requirement that the new Medicare
provisions must immediately supplant State Medicaid programs for the
poorest of the poor.
Congress should be helping seniors with the burden of high drug
costs, not allowing a right wing agenda to destroy the guarantee of
affordable health care that America's seniors deserve and expect.
That's why Senator Dayton and Senator Reid have introduced this
needed legislation, and I urge my colleagues to support it.
______

By Mr. CONRAD (for himself, Mr. Reid, Mr. Feingold, Ms. Mikulski,
Ms. Stabenow, Mr. Inouye, Mr. Leahy, Mr. Salazar, Mr.
Rockefeller, Mr. Schumer, Mrs. Feinstein, Mr. Dayton, Mr. Dodd,
and Mrs. Clinton):
S. 19. A bill to reduce budget deficits by restoring budget
enforcement and strengthening fiscal responsibility; to the Committee
on the Budget.
Mr. CONRAD. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 19

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fiscal Responsibility for a
Sound Future Act''.

SEC. 2. EXTENSION OF THE DISCRETIONARY SPENDING CAPS.

(a) In General.--Section 251(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(c)) is
amended to read as follows:
``(c) Discretionary Spending Limit.--As used in this part,
the term `discretionary spending limit' means, with respect
to fiscal year 2005--
``(1) for the discretionary category: $836,268,000,000 in
new budget authority and $895,966,000,000 in outlays;
``(2) for the highway category: $31,761,000,000 in outlays;
and
``(3) for the mass transit category: $956,000,000 in new
budget authority and $6,748,000,000 in outlays;
as adjusted in strict conformance with subsection (b).''.
(b) Commitment of the Senate.--Congress should enact a
limit on total discretionary spending for fiscal year 2006.

SEC. 3. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.

Section 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
(1) in subsection (a), by striking ``enacted before October
1, 2002''; and
(2) in subsection (b), by striking ``enacted before October
1, 2002,''.

SEC. 4. EXTENSION OF BUDGET ENFORCEMENT THROUGH 2015.

Section 275 of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 900 note) is amended by adding
at the end the following:
``(d) Reenactment.--Part C of this title is reenacted into
law effective for fiscal year 2005. Part C shall expire at
the end of fiscal year 2015.''.

SEC. 5. RECONCILIATION FOR DEFICIT REDUCTION IN THE SENATE.

(a) In General.--It shall not be in order in the Senate to
consider under the expedited procedures applicable to
reconciliation in sections 305 and 310 of the Congressional
Budget Act of 1974 any bill, resolution, amendment, amendment
between Houses, motion, or conference report that increases
the deficit in the first fiscal year covered by the most
recently adopted concurrent resolution on the budget, the
period of the first 5 fiscal years covered by the most
recently adopted concurrent resolution on the budget, or the
period of the 5 fiscal years following the first 5 fiscal
years covered by the most recently adopted concurrent
resolution on the budget.
(b) Budget Resolution.--It shall not be in order in the
Senate to consider pursuant to sections 301, 305, or 310 of
the Congressional Budget Act of 1974 pertaining to concurrent
resolutions on the budget any resolution, concurrent
resolution, amendment, amendment between the Houses, motion,
or conference report that contains any reconciliation
directive that would increase the deficit in the first fiscal
year covered by the most recently adopted concurrent
resolution on the budget, the period of the first 5 fiscal
years covered by the most recently adopted concurrent
resolution on the budget, or the period of the 5 fiscal years
following the first 5 fiscal years covered by the most
recently adopted concurrent resolution on the budget.
(c) Supermajority Waiver and Appeal.--This section may be
waived or suspended in the Senate only by an affirmative vote
of \3/5\ of the Members, duly chosen and sworn. An
affirmative vote of \3/5\ of the Members of the Senate, duly
chosen and sworn, shall be required in the Senate to sustain
an appeal of the ruling of the Chair on a point of order
raised under this section.

SEC. 6. SENATE PAYGO RULE.

(a) In General.--Section 505(a)(5)(A) of H. Con. Res. 95
(108th Congress) is amended by striking ``as adjusted for any
changes in revenues or direct spending assumed by such
resolution''.
(b) Expiration Date.--Section 505(e) of H. Con. Res. 95
(108th Congress) is amended by striking ``2008'' and
inserting ``2015''.
______

By Mr. REID (for himself, Mrs. Murray, Mr. Schumer, Mr. Corzine,
Mr. Lautenberg, Mrs. Clinton, Mr. Kerry, Mrs. Feinstein, Ms.
Cantwell, Mr. Harkin, Ms. Mikulski, Mr. Inouye, Mr. Akaka, Mr.
Levin, Mr. Kennedy, Mr. Leahy, Mr. Wyden, and Ms. Stabenow):
S. 20. A bill to expand access to preventive health care services
that help reduce unintended pregnancy, reduce the number of abortions,
and improve access to women's health care; to the Committee on Health,
Education, Labor, and Pensions.
Mr. REID. Mr. President, I ask unanimous consent that the text of the
bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 20

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Prevention
First Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

TITLE I--TITLE X OF PUBLIC HEALTH SERVICE ACT

Sec. 101. Short title.
Sec. 102. Authorization of appropriations.

TITLE II--FAMILY PLANNING STATE EMPOWERMENT

Sec. 201. Short title.
Sec. 202. State option to provide family planning services and supplies
to additional low-income individuals.
Sec. 203. State option to extend the period of eligibility for
provision of family planning services and supplies.

TITLE III--EQUITY IN PRESCRIPTION INSURANCE AND CONTRACEPTIVE COVERAGE

Sec. 301. Short title.
Sec. 302. Amendments to Employee Retirement Income Security Act of
1974.
Sec. 303. Amendments to Public Health Service Act relating to the group
market.
Sec. 304. Amendment to Public Health Service Act relating to the
individual market.

TITLE IV--EMERGENCY CONTRACEPTION EDUCATION AND INFORMATION

Sec. 401. Short title.
Sec. 402. Emergency contraception education and information programs.

TITLE V--COMPASSIONATE ASSISTANCE FOR RAPE EMERGENCIES

Sec. 501. Short title.
Sec. 502. Survivors of sexual assault; provision by hospitals of
emergency contraceptives without charge.

TITLE VI--TEENAGE PREGNANCY PREVENTION

Sec. 601. Short title.
Sec. 602. Teenage pregnancy prevention.

TITLE VII--ACCURACY OF CONTRACEPTIVE INFORMATION

Sec. 701. Short title.
Sec. 702. Accuracy of contraceptive information.

SEC. 2. FINDINGS.

The Congress finds as follows:
(1) Although the Centers for Disease Control and Prevention
(referred to in this section as the ``CDC'') included family
planning in its published list of the Ten Great Public Health
Achievements in the 20th Century, the United States still has
one of the highest rates of unintended pregnancies among
industrialized nations.
(2) Each year, 3,000,000 pregnancies, nearly half of all
pregnancies, in the United States are unintended, and nearly
half of unintended pregnancies end in abortion.
(3) In 2002, 34,000,000 women-half of all women of
reproductive age (ages 15-44)-were in need of contraceptive
services and supplies to help prevent unintended pregnancy,
and half of those were in need of public support for such
care.
(4) The United States also has the highest rate of
infection with sexually transmitted diseases of any
industrialized country. In 2003 there were approximately
19,000,000 new cases of sexually transmitted diseases.
According to the CDC (November 2004), these sexually
transmitted diseases impose a tremendous economic burden with
direct medical costs as high as $15,500,000,000 per year.

[[Page S211]]

(5) Increasing access to family planning services will
improve women's health and reduce the rates of unintended
pregnancy, abortion, and infection with sexually transmitted
diseases. Contraceptive use saves public health dollars.
Every dollar spent on providing family planning services
saves an estimated $3 in expenditures for pregnancy-related
and newborn care for Medicaid alone.
(6) Contraception is basic health care that improves the
health of women and children by enabling women to plan and
space births.
(7) Women experiencing unintended pregnancy are at greater
risk for physical abuse and women having closely spaced
births are at greater risk of maternal death.
(8) The child born from an unintended pregnancy is at
greater risk of low birth weight, dying in the first year of
life, being abused, and not receiving sufficient resources
for healthy development.
(9) The ability to control fertility also allows couples to
achieve economic stability by facilitating greater
educational achievement and participation in the workforce.
(10) The average American woman desires two children and
spends five years of her life pregnant or trying to get
pregnant and roughly 30 years trying to prevent pregnancy.
Without contraception, a sexually active woman has an 85
percent chance of becoming pregnant within a year.
(11) The percentage of sexually active women ages 15
through 44 who were not using contraception increased from
5.4 percent to 7.4 percent in 2002, an increase of 37
percent, according to the CDC. This represents an apparent
increase of 1,430,000 women and could raise the rate of
unintended pregnancy.
(12) Many poor and low-income women cannot afford to
purchase contraceptive services and supplies on their own.
12,100,000 or 20 percent of all women ages 15 through 24 were
uninsured in 2002, and that proportion has increased by 10
percent since 1999.
(13) Public health programs like Medicaid and title X (of
the Public Health Service Act), the national family planning
program, provide high-quality family planning services and
other preventive health care to underinsured or uninsured
individuals who may otherwise lack access to health care.
(14) Medicaid is the single largest source of public
funding for family planning services and HIV/AIDS care in the
United States. Half of all public dollars spent on
contraceptive services and supplies in the United States are
provided through Medicaid and approximately 5,500,000 women
of reproductive age-nearly one in 10 women between the ages
of 15 and 44-rely on Medicaid for their basic health care
needs.
(15) Each year, title X services enable Americans to
prevent approximately 1,000,000 unintended pregnancies, and
one in three women of reproductive age who obtains testing or
treatment for sexually transmitted diseases does so at a
title X-funded clinic. In 2003, title X-funded clinics
provided 2,800,000 Pap tests, 5,100,000 sexually transmitted
disease tests, and 526,000 HIV tests.
(16) The increasing number of uninsured, stagnant funding,
health care inflation, new and expensive contraceptive
technologies, and improved but expensive screening and
treatment for cervical cancer and sexually transmitted
diseases, have diminished the ability of title X funded
clinics to adequately serve all those in need. Taking
inflation into account, funding for the title X program
declined by 58 percent between 1980 and 2003.
(17) While Medicaid remains the largest source of
subsidized family planning services, States are facing
significant budgetary pressures to cut their Medicaid
programs, putting many women at risk of losing coverage for
family planning services.
(18) In addition, eligibility for Medicaid in many States
is severely restricted leaving family planning services
financially out of reach for many poor women. Many States
have demonstrated tremendous success with Medicaid family
planning waivers that allow them to expand access to Medicaid
family planning services. However, the administrative burden
of applying for a waiver poses a significant barrier to
States that would like to expand their coverage of family
planning programs through Medicaid.
(19) As of January of 2005, 21 States offered expanded
family planning benefits as a result of Medicaid family
planning waivers. The cost-effectiveness of these waivers was
affirmed by a recent evaluation funded by the Centers for
Medicare & Medicaid. This evaluation of six waivers found
that all such programs resulted in significant savings to
both the Federal and State governments. Moreover, the
researchers found measurable reductions in unintended
pregnancy.
(20) Although employer-sponsored health plans have improved
coverage of contraceptive services and supplies, largely in
response to State contraceptive coverage laws, there is still
significant room for improvement. The ongoing lack of
coverage in health insurance plans, particularly in self-
insured and individual plans, continues to place effective
forms of contraception beyond the financial reach of many
women.
(21) Including contraceptive coverage in private health
care plans saves employers money. Not covering contraceptives
in employee health plans costs employers 15 to 17 percent
more than providing such coverage.
(22) Approved for use by the Food and Drug Administration,
emergency contraception is a safe and effective way to
prevent unintended pregnancy after unprotected sex. It is
estimated that the use of emergency contraception could cut
the number of unintended pregnancies in half, thereby
reducing the need for abortion. New research confirms that
easier access to emergency contraceptives does not increase
sexual risk-taking or sexually transmitted diseases.
(23) In 2000, 51,000 abortions were prevented by the use of
emergency contraception. Increased use of emergency
contraception accounted for up to 43 percent of the total
decline in abortions between 1994 and 2000.
(24) A February 2004 CDC study of declining birth and
pregnancy rates among teens concluded that the reduction in
teen pregnancy between 1991 and 2001 suggests that increased
abstinence and increased use of contraceptives were equally
responsible for the decline. As such, it is critically
important that teens receive accurate, unbiased information
about contraception.
(25) Thirteen percent of all teens give birth before age
20. 88 percent of births to teens age 17 or younger were
unintended. 24 percent of Hispanic females gave birth before
the age of 20. (CDC, December 2004).
(26) The American Medical Association, the American Nurses
Association, the American Academy of Pediatrics, the American
College of Obstetricians and Gynecologists, the American
Public Health Association, and the Society for Adolescent
Medicine, support responsible sexuality education that
includes information about both abstinence and contraception.
(27) Teens who receive sex education that includes
discussion of contraception are more likely than those who
receive abstinence-only messages to delay sex and to have
fewer partners and use contraceptives when they do become
sexually active.
(28) Government-funded abstinence only programs are
precluded from discussing contraception except to talk about
failure rates. A December 2004 review of federally-funded
abstinence-only programs by the United States House of
Representatives Committee on Government Reform (Minority
Staff) found that many federally funded abstinence-only
program curricula distort public health data and misrepresent
the effectiveness of contraception. Information on the
effectiveness of condoms, in preventing pregnancy and
sexually transmitted diseases, including HIV, was often
highly inaccurate.

TITLE I--TITLE X OF PUBLIC HEALTH SERVICE ACT

SEC. 101. SHORT TITLE.

This Act may be cited as the ``Title X Family Planning
Services Act of 2005''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

For the purpose of making grants and contracts under
section 1001 of the Public Health Service Act, there are
authorized to be appropriated $643,000,000 for fiscal year
2006, and such sums as may be necessary for each subsequent
fiscal year.

TITLE II--FAMILY PLANNING STATE EMPOWERMENT

SEC. 201. SHORT TITLE.

This Act may be cited as the ``Family Planning State
Empowerment Act''.

SEC. 202. STATE OPTION TO PROVIDE FAMILY PLANNING SERVICES
AND SUPPLIES TO ADDITIONAL LOW-INCOME
INDIVIDUALS.

(a) In General.--Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) is amended--
(1) by redesignating section 1936 as section 1937; and
(2) by inserting after section 1935 the following:

``state option to provide family planning services and supplies to
additional low-income individuals

``Sec. 1936.
``(a) In General.--A State may elect (through a State plan
amendment) to make medical assistance described in section
1905(a)(4)(C) available to any individual not otherwise
eligible for such assistance--
``(1) whose family income does not exceed an income level
(specified by the State) that does not exceed the greatest
of--
``(A) 200 percent of the income official poverty line (as
defined by the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act) applicable to a family of the size
involved;
``(B) in the case of a State that has in effect (as of the
date of the enactment of this section) a waiver under section
1115 to provide such medical assistance to individuals based
on their income level (expressed as a percent of the poverty
line), the eligibility income level as provided under such
waiver; or
``(C) the eligibility income level (expressed as a percent
of such poverty line) that has been specified under the plan
(including under section 1902(r)(2)), for eligibility of
pregnant women for medical assistance; and
``(2) at the option of the State, whose resources do not
exceed a resource level specified by the State, which level
is not more restrictive than the resource level applicable
under the waiver described in paragraph (1)(B) or to pregnant
women under paragraph (1)(C).
``(b) Flexibility.--A State may exercise the authority
under subsection (a) with respect to one or more classes of
individuals described in such subsection.''.
(b) Conforming Amendment.--Section 1905(a) of such Act (42
U.S.C. 1396d(a)) is amended, in the matter before paragraph
(1)--
(1) by striking ``and'' at the end of clause (xii);

[[Page S212]]

(2) by adding ``and'' at the end of clause (xiii); and
(3) by inserting after clause (xiii) the following new
clause:
``(xiv) individuals described in section 1935, but only
with respect to items and services described in paragraph
(4)(C),''.
(c) Effective Date.--The amendments made by this section
apply to medical assistance provided on and after October 1,
2005.

SEC. 203. STATE OPTION TO EXTEND THE PERIOD OF ELIGIBILITY
FOR PROVISION OF FAMILY PLANNING SERVICES AND
SUPPLIES.

(a) In General.--Section 1902(e) of the Social Security Act
(42 U.S.C. 1396a(e)) is amended by adding at the end the
following new paragraph:
``(13) At the option of a State, the State plan may provide
that, in the case of an individual who was eligible for
medical assistance described in section 1905(a)(4)(C), but
who no longer qualifies for such assistance because of an
increase in income or resources or because of the expiration
of a post-partum period, the individual may remain eligible
for such assistance for such period as the State may specify,
but the period of extended eligibility under this paragraph
shall not exceed a continuous period of 24 months for any
individual. The State may apply the previous sentence to one
or more classes of individuals and may vary the period of
extended eligibility with respect to different classes of
individuals.''.
(b) Effective Date.--The amendments made by subsection (a)
apply to medical assistance provided on and after October 1,
2005.

TITLE III--EQUITY IN PRESCRIPTION INSURANCE AND CONTRACEPTIVE COVERAGE

SEC. 301. SHORT TITLE.

This Act may be cited as the ``Equity in Prescription
Insurance and Contraceptive Coverage Act''.

SEC. 302. AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974.

(a) In General.--Subpart B of part 7 of subtitle B of title
I of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1185 et seq.) is amended by adding at the end the
following:

``SEC. 714. STANDARDS RELATING TO BENEFITS FOR
CONTRACEPTIVES.

``(a) Requirements for Coverage.--A group health plan, and
a health insurance issuer providing health insurance coverage
in connection with a group health plan, may not--
``(1) exclude or restrict benefits for prescription
contraceptive drugs or devices approved by the Food and Drug
Administration, or generic equivalents approved as
substitutable by the Food and Drug Administration, if such
plan or coverage provides benefits for other outpatient
prescription drugs or devices; or
``(2) exclude or restrict benefits for outpatient
contraceptive services if such plan or coverage provides
benefits for other outpatient services provided by a health
care professional (referred to in this section as `outpatient
health care services').
``(b) Prohibitions.--A group health plan, and a health
insurance issuer providing health insurance coverage in
connection with a group health plan, may not--
``(1) deny to an individual eligibility, or continued
eligibility, to enroll or to renew coverage under the terms
of the plan because of the individual's or enrollee's use or
potential use of items or services that are covered in
accordance with the requirements of this section;
``(2) provide monetary payments or rebates to a covered
individual to encourage such individual to accept less than
the minimum protections available under this section;
``(3) penalize or otherwise reduce or limit the
reimbursement of a health care professional because such
professional prescribed contraceptive drugs or devices, or
provided contraceptive services, described in subsection (a),
in accordance with this section; or
``(4) provide incentives (monetary or otherwise) to a
health care professional to induce such professional to
withhold from a covered individual contraceptive drugs or
devices, or contraceptive services, described in subsection
(a).
``(c) Rules of Construction.--
``(1) In general.--Nothing in this section shall be
construed--
``(A) as preventing a group health plan and a health
insurance issuer providing health insurance coverage in
connection with a group health plan from imposing
deductibles, coinsurance, or other cost-sharing or
limitations in relation to--
``(i) benefits for contraceptive drugs under the plan or
coverage, except that such a deductible, coinsurance, or
other cost-sharing or limitation for any such drug shall be
consistent with those imposed for other outpatient
prescription drugs otherwise covered under the plan or
coverage;
``(ii) benefits for contraceptive devices under the plan or
coverage, except that such a deductible, coinsurance, or
other cost-sharing or limitation for any such device shall be
consistent with those imposed for other outpatient
prescription devices otherwise covered under the plan or
coverage; and
``(iii) benefits for outpatient contraceptive services
under the plan or coverage, except that such a deductible,
coinsurance, or other cost-sharing or limitation for any such
service shall be consistent with those imposed for other
outpatient health care services otherwise covered under the
plan or coverage;
``(B) as requiring a group health plan and a health
insurance issuer providing health insurance coverage in
connection with a group health plan to cover experimental or
investigational contraceptive drugs or devices, or
experimental or investigational contraceptive services,
described in subsection (a), except to the extent that the
plan or issuer provides coverage for other experimental or
investigational outpatient prescription drugs or devices, or
experimental or investigational outpatient health care
services; or
``(C) as modifying, diminishing, or limiting the rights or
protections of an individual under any other Federal law.
``(2) Limitations.--As used in paragraph (1), the term
`limitation' includes--
``(A) in the case of a contraceptive drug or device,
restricting the type of health care professionals that may
prescribe such drugs or devices, utilization review
provisions, and limits on the volume of prescription drugs or
devices that may be obtained on the basis of a single
consultation with a professional; or
``(B) in the case of an outpatient contraceptive service,
restricting the type of health care professionals that may
provide such services, utilization review provisions,
requirements relating to second opinions prior to the
coverage of such services, and requirements relating to
preauthorizations prior to the coverage of such services.
``(d) Notice Under Group Health Plan.--The imposition of
the requirements of this section shall be treated as a
material modification in the terms of the plan described in
section 102(a)(1), for purposes of assuring notice of such
requirements under the plan, except that the summary
description required to be provided under the last sentence
of section 104(b)(1) with respect to such modification shall
be provided by not later than 60 days after the first day of
the first plan year in which such requirements apply.
``(e) Preemption.--Nothing in this section shall be
construed to preempt any provision of State law to the extent
that such State law establishes, implements, or continues in
effect any standard or requirement that provides coverage or
protections for participants or beneficiaries that are
greater than the coverage or protections provided under this
section.
``(f) Definition.--In this section, the term `outpatient
contraceptive services' means consultations, examinations,
procedures, and medical services, provided on an outpatient
basis and related to the use of contraceptive methods
(including natural family planning) to prevent an unintended
pregnancy.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001) is amended by inserting after the item relating
to section 713 the following:

``Sec. 714. Standards relating to benefits for contraceptives.''.

(c) Effective Date.--The amendments made by this section
shall apply with respect to plan years beginning on or after
January 1, 2006.

SEC. 303. AMENDMENTS TO PUBLIC HEALTH SERVICE ACT RELATING TO
THE GROUP MARKET.

(a) In General.--Subpart 2 of part A of title XXVII of the
Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is
amended by adding at the end the following:

``SEC. 2707. STANDARDS RELATING TO BENEFITS FOR
CONTRACEPTIVES.

[[Page S213]]

``(A) as preventing a group health plan and a health
insurance issuer providing health insurance coverage in
connection with a group health plan from imposing
deductibles, coinsurance, or other cost-sharing or
limitations in relation to--
``(i) benefits for contraceptive drugs under the plan or
coverage, except that such a deductible, coinsurance, or
other cost-sharing or limitation for any such drug shall be
consistent with those imposed for other outpatient
prescription drugs otherwise covered under the plan or
coverage;
``(ii) benefits for contraceptive devices under the plan or
coverage, except that such a deductible, coinsurance, or
other cost-sharing or limitation for any such device shall be
consistent with those imposed for other outpatient
prescription devices otherwise covered under the plan or
coverage; and
``(iii) benefits for outpatient contraceptive services
under the plan or coverage, except that such a deductible,
coinsurance, or other cost-sharing or limitation for any such
service shall be consistent with those imposed for other
outpatient health care services otherwise covered under the
plan or coverage;
``(B) as requiring a group health plan and a health
insurance issuer providing health insurance coverage in
connection with a group health plan to cover experimental or
investigational contraceptive drugs or devices, or
experimental or investigational contraceptive services,
described in subsection (a), except to the extent that the
plan or issuer provides coverage for other experimental or
investigational outpatient prescription drugs or devices, or
experimental or investigational outpatient health care
services; or
``(C) as modifying, diminishing, or limiting the rights or
protections of an individual under any other Federal law.
``(2) Limitations.--As used in paragraph (1), the term
`limitation' includes--
``(A) in the case of a contraceptive drug or device,
restricting the type of health care professionals that may
prescribe such drugs or devices, utilization review
provisions, and limits on the volume of prescription drugs or
devices that may be obtained on the basis of a single
consultation with a professional; or
``(B) in the case of an outpatient contraceptive service,
restricting the type of health care professionals that may
provide such services, utilization review provisions,
requirements relating to second opinions prior to the
coverage of such services, and requirements relating to
preauthorizations prior to the coverage of such services.
``(d) Notice.--A group health plan under this part shall
comply with the notice requirement under section 714(d) of
the Employee Retirement Income Security Act of 1974 with
respect to the requirements of this section as if such
section applied to such plan.
``(e) Preemption.--Nothing in this section shall be
construed to preempt any provision of State law to the extent
that such State law establishes, implements, or continues in
effect any standard or requirement that provides coverage or
protections for enrollees that are greater than the coverage
or protections provided under this section.
``(f) Definition.--In this section, the term `outpatient
contraceptive services' means consultations, examinations,
procedures, and medical services, provided on an outpatient
basis and related to the use of contraceptive methods
(including natural family planning) to prevent an unintended
pregnancy.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to group health plans for plan years
beginning on or after January 1, 2006.

SEC. 304. AMENDMENT TO PUBLIC HEALTH SERVICE ACT RELATING TO
THE INDIVIDUAL MARKET.

(a) In General.--Part B of title XXVII of the Public Health
Service Act (42 U.S.C. 300gg-41 et seq.) is amended--
(1) by redesignating the first subpart 3 (relating to other
requirements) as subpart 2; and
(2) by adding at the end of subpart 2 the following:

``SEC. 2753. STANDARDS RELATING TO BENEFITS FOR
CONTRACEPTIVES.

``The provisions of section 2707 shall apply to health
insurance coverage offered by a health insurance issuer in
the individual market in the same manner as they apply to
health insurance coverage offered by a health insurance
issuer in connection with a group health plan in the small or
large group market.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to health insurance coverage
offered, sold, issued, renewed, in effect, or operated in the
individual market on or after January 1, 2006.

TITLE IV--EMERGENCY CONTRACEPTION EDUCATION AND INFORMATION

SEC. 401. SHORT TITLE.

This Act may be cited as the ``Emergency Contraception
Education Act''.

SEC. 402. EMERGENCY CONTRACEPTION EDUCATION AND INFORMATION
PROGRAMS.

(a) Definitions.--For purposes of this section:
(1) Emergency contraception.--The term ``emergency
contraception'' means a drug or device (as the terms are
defined in section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321)) or a drug regimen that is--
(A) used after sexual relations;
(B) prevents pregnancy, by preventing ovulation,
fertilization of an egg, or implantation of an egg in a
uterus; and
(C) approved by the Food and Drug Administration.
(2) Health care provider.--The term ``health care
provider'' means an individual who is licensed or certified
under State law to provide health care services and who is
operating within the scope of such license.
(3) Institution of higher education.--The term
``institution of higher education'' has the same meaning
given such term in section 1201(a) of the Higher Education
Act of 1965 (20 U.S.C. 1141(a)).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(b) Emergency Contraception Public Education Program.--
(1) In general.--The Secretary, acting through the Director
of the Centers for Disease Control and Prevention, shall
develop and disseminate to the public information on
emergency contraception.
(2) Dissemination.--The Secretary may disseminate
information under paragraph (1) directly or through
arrangements with nonprofit organizations, consumer groups,
institutions of higher education, Federal, State, or local
agencies, clinics and the media.
(3) Information.--The information disseminated under
paragraph (1) shall include, at a minimum, a description of
emergency contraception, and an explanation of the use,
safety, efficacy, and availability of such contraception.
(c) Emergency Contraception Information Program for Health
Care Providers.--
(1) In general.--The Secretary, acting through the
Administrator of the Health Resources and Services
Administration and in consultation with major medical and
public health organizations, shall develop and disseminate to
health care providers information on emergency contraception.
(2) Information.--The information disseminated under
paragraph (1) shall include, at a minimum--
(A) information describing the use, safety, efficacy and
availability of emergency contraception;
(B) a recommendation regarding the use of such
contraception in appropriate cases; and
(C) information explaining how to obtain copies of the
information developed under subsection (b), for distribution
to the patients of the providers.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $10,000,000 for
each of the fiscal years 2006 through 2010.

TITLE V--COMPASSIONATE ASSISTANCE FOR RAPE EMERGENCIES

SEC. 501. SHORT TITLE.

This Act may be cited as the ``Compassionate Assistance for
Rape Emergencies Act''.

SEC. 502. SURVIVORS OF SEXUAL ASSAULT; PROVISION BY HOSPITALS
OF EMERGENCY CONTRACEPTIVES WITHOUT CHARGE.

(a) In General.--Federal funds may not be provided to a
hospital under any health-related program, unless the
hospital meets the conditions specified in subsection (b) in
the case of--
(1) any woman who presents at the hospital and states that
she is a victim of sexual assault, or is accompanied by
someone who states she is a victim of sexual assault; and
(2) any woman who presents at the hospital whom hospital
personnel have reason to believe is a victim of sexual
assault.
(b) Assistance for Victims.--The conditions specified in
this subsection regarding a hospital and a woman described in
subsection (a) are as follows:
(1) The hospital promptly provides the woman with medically
and factually accurate and unbiased written and oral
information about emergency contraception, including
information explaining that--
(A) emergency contraception does not cause an abortion; and
(B) emergency contraception is effective in most cases in
preventing pregnancy after unprotected sex.
(2) The hospital promptly offers emergency contraception to
the woman, and promptly provides such contraception to her on
her request.
(3) The information provided pursuant to paragraph (1) is
in clear and concise language, is readily comprehensible, and
meets such conditions regarding the provision of the
information in languages other than English as the Secretary
may establish.
(4) The services described in paragraphs (1) through (3)
are not denied because of the inability of the woman or her
family to pay for the services.
(c) Definitions.--For purposes of this section:
(1) The term ``emergency contraception'' means a drug, drug
regimen, or device that is--
(A) used postcoitally;
(B) prevents pregnancy by delaying ovulation, preventing
fertilization of an egg, or preventing implantation of an egg
in a uterus; and
(C) is approved by the Food and Drug Administration.
(2) The term ``hospital'' has the meanings given such term
in title XVIII of the Social Security Act, including the
meaning applicable in such title for purposes of making
payments for emergency services to hospitals

[[Page S214]]

that do not have agreements in effect under such title.
(3) The term ``Secretary'' means the Secretary of Health
and Human Services.
(4) The term ``sexual assault'' means coitus in which the
woman involved does not consent or lacks the legal capacity
to consent.
(d) Effective Date; Agency Criteria.--This section takes
effect upon the expiration of the 180-day period beginning on
the date of enactment of this Act. Not later than 30 days
prior to the expiration of such period, the Secretary shall
publish in the Federal Register criteria for carrying out
this section.

TITLE VI--TEENAGE PREGNANCY PREVENTION

SEC. 601. SHORT TITLE.

This title may be cited as the ``Preventing Teen Pregnancy
Act''.

SEC. 602. TEENAGE PREGNANCY PREVENTION.

Part P of title III of the Public Health Service Act (42
U.S.C. 280g et seq.) is amended by inserting after section
399N the following section:

``SEC. 399N-1. TEENAGE PREGNANCY PREVENTION GRANTS.

``(a) Authority.--The Secretary may award on a competitive
basis grants to public and private entities to establish or
expand teenage pregnancy prevention programs.
``(b) Grant Recipients.--Grant recipients under this
section may include State and local not-for-profit coalitions
working to prevent teenage pregnancy, State, local, and
tribal agencies, schools, entities that provide afterschool
programs, and community and faith-based groups.
``(c) Priority.--In selecting grant recipients under this
section, the Secretary shall give--
``(1) highest priority to applicants seeking assistance for
programs targeting communities or populations in which--
``(A) teenage pregnancy or birth rates are higher than the
corresponding State average; or
``(B) teenage pregnancy or birth rates are increasing; and
``(2) priority to applicants seeking assistance for
programs that--
``(A) will benefit underserved or at-risk populations such
as young males or immigrant youths; or
``(B) will take advantage of other available resources and
be coordinated with other programs that serve youth, such as
workforce development and after school programs.
``(d) Use of Funds.--Funds received by an entity as a grant
under this section shall be used for programs that--
``(1) replicate or substantially incorporate the elements
of one or more teenage pregnancy prevention programs that
have been proven (on the basis of rigorous scientific
research) to delay sexual intercourse or sexual activity,
increase condom or contraceptive use (without increasing
sexual activity), or reduce teenage pregnancy; and
``(2) incorporate one or more of the following strategies
for preventing teenage pregnancy: encouraging teenagers to
delay sexual activity; sex and HIV education; interventions
for sexually active teenagers; preventive health services;
youth development programs; service learning programs; and
outreach or media programs.
``(e) Complete Information.--Programs receiving funds under
this section that choose to provide information on HIV/AIDS
or contraception or both must provide information that is
complete and medically accurate.
``(f) Relation to Abstinence-Only Programs.--Funds under
this section are not intended for use by abstinence-only
education programs. Abstinence-only education programs that
receive Federal funds through the Maternal and Child Health
Block Grant, the Administration for Children and Families,
the Adolescent Family Life Program, and any other program
that uses the definition of `abstinence education' found in
section 510(b) of the Social Security Act are ineligible for
funding.
``(g) Applications.--Each entity seeking a grant under this
section shall submit an application to the Secretary at such
time and in such manner as the Secretary may require.
``(h) Matching Funds.--
``(1) In general.--The Secretary may not award a grant to
an applicant for a program under this section unless the
applicant demonstrates that it will pay, from funds derived
from non-Federal sources, at least 25 percent of the cost of
the program.
``(2) Applicant's share.--The applicant's share of the cost
of a program shall be provided in cash or in kind.
``(i) Supplementation of Funds.--An entity that receives
funds as a grant under this section shall use the funds to
supplement and not supplant funds that would otherwise be
available to the entity for teenage pregnancy prevention.
``(j) Evaluations.--
``(1) In general.--The Secretary shall--
``(A) conduct or provide for a rigorous evaluation of 10
percent of programs for which a grant is awarded under this
section;
``(B) collect basic data on each program for which a grant
is awarded under this section; and
``(C) upon completion of the evaluations referred to in
subparagraph (A), submit to the Congress a report that
includes a detailed statement on the effectiveness of grants
under this section.
``(2) Cooperation by grantees.--Each grant recipient under
this section shall provide such information and cooperation
as may be required for an evaluation under paragraph (1).
``(k) Definition.--For purposes of this section, the term
`rigorous scientific research' means based on a program
evaluation that:
``(1) Measured impact on sexual or contraceptive behavior,
pregnancy or childbearing.
``(2) Employed an experimental or quasi-experimental design
with well-constructed and appropriate comparison groups.
``(3) Had a sample size large enough (at least 100 in the
combined treatment and control group) and a follow-up
interval long enough (at least six months) to draw valid
conclusions about impact.
``(l) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$20,000,000 for fiscal year 2006, and such sums as may be
necessary for each subsequent fiscal year. In addition, there
are authorized to be appropriated for evaluations under
subsection (j) such sums as may be necessary for fiscal year
2006 and each subsequent fiscal year.''.

TITLE VII--ACCURACY OF CONTRACEPTIVE INFORMATION

SEC. 701. SHORT TITLE.

This title may be cited as the ``Truth in Contraception
Act''.

SEC. 702. ACCURACY OF CONTRACEPTIVE INFORMATION.

Notwithstanding any other provision of law, any information
concerning the use of a contraceptive provided through any
federally funded sex education, family life education,
abstinence education, comprehensive health education, or
character education program shall be medically accurate and
shall include health benefits and failure rates relating to
the use of such contraceptive.
______

By Mrs. HUTCHISON:
S. 24. A bill to establish an emergency reserve fund to provide
timely financial assistance in response to domestic disasters and
emergencies; to the Committee on the Budget.
Mrs. HUTCHISON. Mr. President, over the past decade, Congress has
approved over $46 billion in disaster relief and emergency spending.
This is an average of $4.6 billion a year. The majority of this
funding--$34 billion--has been provided through supplemental bills, not
subject to the normal appropriations process.
Supporters of supplemental spending suggest it provides Congress
flexibility to respond to emergencies and to priorities that did not
receive the proper consideration during the budget cycle. While
supplemental bills do offer flexibility, they are not always helpful
for fiscal responsibility. Millions of dollars are put in emergency
spending bills that should go through the regular budget process,
adding more and more to the bottom line.
America is at a critical time--we must be prepared to address
domestic emergencies without increasing the deficit or being forced to
fund non-emergency projects in order to release necessary funds.
Supplemental spending circumvents budgetary enforcement mechanisms and
can lead lawmakers to under-fund programs in the regular appropriations
process, because they know they ultimately can get what is needed
through a supplemental.
Supplemental bills allocate funding for emergencies, and we have all
witnessed, firsthand, how a natural disaster can impact a country
severely. Merely because something is unforeseen does not mean we
should not prepare. Congress needs to plan in a manner that is fiscally
responsible and procedurally transparent.
Today, I offer a bill to create an emergency fund under the office of
the Secretary of the Treasury, in an interest bearing account,
containing 1.2 percent of the annual non-defense domestic spending, or
roughly $4.6 billion. This will be America's rainy day fund--a savings
account ready for almost any potential unforeseen domestic emergencies.
This account is not designed to eliminate the need for supplemental
bills but rather lessen the need for them.
Last year, in supplemental spending alone, Congress spent $2.5
billion on disaster relief in America. Domestic discretionary
supplemental bills enacted in response to natural disasters, such as
hurricanes and earthquakes, rose steadily through the 1990s. Federal
Emergency Management Agency, FEMA, was the second-largest recipient of
supplemental spending during the 1990s. Supplemental appropriations for
``non-natural'' disasters such as the Los Angeles riots in 1992 and the
Oklahoma City bombing in 1995 as well as the September 11 terrorist
attack have also demanded quick and efficient funding. History is
teaching us a lesson; while we do not know what the

[[Page S215]]

emergencies will be, we can feel certain there will be something to
which we will need to respond.
Beyond the clear fiscal conservatism we need, I believe this rainy
day fund would reduce the time it takes to respond to emergencies by
giving Congress a more efficient, less political process. My bill would
require the contingency fund to be expended before supplemental
spending for domestic disasters can be pursued, with the exclusion of
defense spending.
As we seek to be more fiscally responsible, our next step forward
should be this account, from which the funds we draw upon are planned
for and set aside through the normal appropriations process. Our
current system regularly underfunds FEMA and other agencies for
emergencies, and this should end.
As we prepare for the future, it is my goal that we save and prepare
for the vital needs of our people should there be a domestic emergency.
Recent events worldwide demand we be fiscally responsible and
procedurally capable of this, our most important duty, the protection
and safe-keeping of the American people.
______

By Mr. CHAMBLISS:
S. 25. A bill to promote freedom, fairness, and economic opportunity
by repealing the income tax and other taxes, abolishing the Internal
Revenue Service, and enacting a national sales tax to be administered
primarily by the States; to the Committee on Finance.
Mr. CHAMBLISS. Mr. President, I rise today to introduce the Fair Tax
Act of 2005. This bill will promote freedom, fairness, and economic
opportunity by repealing the Federal income tax and other taxes,
abolishing the Internal Revenue Service, and enacting a national sales
tax.
The Fair Tax, which offers a national sales tax as the primary source
of Federal revenue, is a necessary piece of tax reform that, should it
pass, upon its inception would eliminate our current archaic and
inefficient Tax Code and replace it with a simpler, fairer means of
collecting revenue.
Our antiquated Tax Code was implemented in 1913 and has since been
modified numerous times. The Federal Tax Code in its present form is
overly complicated and desperately in need of an overhaul. We are well
beyond rectifying the unfairness in our current system by tinkering
around the edges. All Americans are in dire need of unbiased, sweeping
tax reform--and the Fair Tax provides just that.
The Fair Tax Act of 2005 would repeal the individual income tax, the
corporate income tax, capital gains taxes, all payroll taxes, the self-
employment tax and the estate and gift taxes in lieu of a 23 percent
tax on the final sale of all goods and services. Elimination of these
inefficient taxing mechanisms will not only bring about equality within
in our tax system, it will also bring about simplicity.
This bill will also provide for tax relief for business-to-business
transactions. These transactions, including used-product transactions
which have already been taxed, are not subject to the sales tax,
thereby abrogating any double taxation.
Social Security and Medicare benefits would remain untouched under
the Fair Tax bill. There would be no financial reductions to either one
of these vital programs. Instead, the source of the trust-fund revenue
for these two programs would be replaced simply by sales-tax revenue
instead of payroll-tax revenue.
Lastly, under the Fair Tax Act, every American would receive a
monthly rebate check equal to spending up to the Federal poverty level
according to the Department of Health and Human Services guidelines.
This rebate would ensure that no American pays taxes on the purchase of
necessities.
The Fair Tax creates a fairer, simpler code that allows every
American the freedom to determine his or her own priorities and
opportunities. Ronald Reagan once said, ``I believe we really can,
however, say that God did give mankind virtually unlimited gifts to
invent, produce and create. And for that reason alone, it would be
wrong for governments to devise a tax structure or economic system that
suppresses and denies those gifts.'' I couldn't agree more.
And as long as we continue to operate under our current skewed Tax
Code, we will continue to suppress and deny these unlimited gifts to
the American people, who would otherwise thrive boundlessly under the
Fair Tax.
______

By Mrs. HUTCHISON (for herself, Mr. Frist, Ms. Cantwell, Mr.
Ensign, Mr. Alexander, and Mr. Cornyn):
S. 27. A bill to amend the Internal Revenue Code of 1986 to make
permanent the deduction of State and local general sales taxes; to the
Committee on Finance.
Mrs. HUTCHISON. Mr. President, I am pleased to introduce a bill to
permanently correct an injustice in the tax code that has harmed
citizens in many States of this great Nation.
State and local governments have various alternatives for raising
revenue. Some levy income taxes, some use sales taxes, and others use a
combination of the two. The citizens who pay State and local income
taxes have been able to offset some of what they pay by receiving a
deduction on their federal taxes. Before 1986, taxpayers also had the
ability to deduct their sales taxes.
The philosophy behind these deductions is simple: people should not
have to pay taxes on their taxes. The money that people must give to
one level of government should not also be taxed by another level of
government.
Unfortunately, citizens of some States were treated differently after
1986 when the deduction for State and local sales taxes was eliminated.
This discriminated against those living in States, such as my home
State of Texas, with no income taxes. It is important to remember the
lack of an income tax does not mean citizens in these States do not pay
State taxes; revenues are simply collected differently.
It is unfair to give citizens from some States a deduction for the
revenue they provide their State and local governments, while not doing
the same for citizens from other States. Federal tax law should not
treat people differently on the basis of State residence and differing
tax collection methods, and it should not provide an incentive for
States to establish income taxes over sales taxes.
This discrepancy had a significant impact on Texas. According to the
Texas Comptroller, the ability of taxpayers to deduct their sales taxes
will lead to an additional $740 million staying in the hands of Texans
each year, the creation of more than 16,500 new jobs, and the addition
of $920 million in State economic activity.
Last year, we took an important step by reinstating a sales tax
deduction. As a result, everyone now has the opportunity to deduct
either their State and local income taxes or sales taxes. For the 55
million of us in the 7 States with a sales tax but no income tax, this
means the tax code no longer discriminates against us. Unfortunately,
the new deduction is only in effect for 2004 and 2005. We must act to
prevent the inequity from returning.
The legislation I am offering today will fix this problem for good by
making the State and local sales tax deduction permanent. This will
permanently end the discrimination suffered by my fellow Texans and
citizens of other States who do not have the option of an income tax
deduction.
This legislation is about reestablishing equity to the tax code and
defending the important principle of eliminating taxes on taxes. I hope
my fellow Senators will support this effort.
I ask unanimous consent that the test of the bill be printed in the
Record.
Ms. CANTWELL. Mr. President, today I am joining my good friend the
Senator from Texas, (Mrs. Hutchison), and the Senator from Tennessee,
the Majority Leader, Mr. Frist, in legislation to permanently extend
the State sales tax deduction. This bill aims to make permanent
legislation that the Congress passed and the President signed into law
last year on October 22, 2004 as a provision of the JOBS Act. It is a
change to the tax code that I have worked to see enacted since coming
to the U.S. Senate, and one I want to maintain.
The JOBS Act reinstituted, for a period of 2 years, the ability of
taxpayers to deduct State and local sales taxes just as they would
State and local income taxes. Residents of States such as Washington
that do not have income

[[Page S216]]

taxes, but have State sales taxes, had not been able to do this since
the 1986.
Make no mistake about it: permanently extending the sales tax
deduction is a tax cut for Washington State taxpayers. Such a cut will
strengthen our economy and fundamentally restore basic tax fairness.
When the Federal income tax was first imposed in 1913, Congress
allowed taxpayers to deduct State and local sales so they would not be
taxed on once at the State level and then, again, at the Federal level
in the same calendar year.
In 1986, after 74 years of precedent, this tax equity abruptly ended.
Taxpayers from States without income taxes were given a raw deal when
Congress made a budgetary squeeze play and ended the tax deduction for
State sales taxes.
For States like Washington, where sales tax revenues are nearly 60
percent of the State budget, the impact is immense. The loss to
Washington State taxpayers in 2004 alone, is estimated to be $500
million.
Washington taxpayers waited 18 years to for the Federal government to
correct the unique burden on them that amounts to requiring them to pay
taxes twice on the same money. Now that the burden has been lifted for
2 years, with thanks to this body and the President, Washington
taxpayers are now looking for--and must have--permanence in the tax
code with regard to their ability to deduct State and local sales taxes
from their Federal income tax.
As I mentioned, this issue has been a primary one for me on behalf of
the people I serve. In fact, when I became a member of this body in the
107th Congress, one of my first legislative acts was to cosponsor sales
tax deduction legislation that at the time was introduced by the former
Senator from Tennessee, Mr. Thompson. In the 108th Congress, Senator
Hutchison and I carried the banner as the lead sponsors of similar
legislation, the core of which we saw enacted into law for a 2-year
period.
I am here once again in the 109th Congress with the Senator from
Texas, Mrs. Hutchison, on the heels of a victory for a two-year
reprieve for our constituents, looking, now, for permanent equity in
the tax code. I look forward to continuing to work with Senator
Hutchison, as well as Senator Frist and others, in moving this sales
tax deduction legislation forward in the coming months.
Only by making the two-year law permanent will we be able to see to
it that taxpayers from Washington State, or any other State, are not
unfairly singled out to pay higher taxes.
I urge prompt action on this measure.
______

By Mrs. FEINSTEIN (for herself and Mr. Leahy):
S. 29. A bill to amend title 18, United States Code, to limit the
misuse of social security numbers, to establish criminal penalties for
such misuse, and for other purposes; to the Committee on the Judiciary.
Mrs. FEINSTEN. Mr. President, I rise on behalf of myself and Senator
Leahy to again introduce legislation to protect one of Americans' most
valuable but vulnerable assets: Social Security numbers. This is the
second Congress in a row that I have introduced this legislation, to
restrict the sale and display of Social Security numbers.
We have just begun the New Year, and unfortunately we can say with
certainty that it will be another year in which millions of Americans
will be victimized by identity theft, a crime so often linked to
unprotected Social Security numbers. It is my hope that Congress will
finally approve this legislation this year. For the benefit of all
Californians and of all Americans, the Senate needs to take this step,
to stop those who would do us harm by taking our very identities.
The goal of this bill is straightforward--to get Social Security
numbers out of the public domain, so that identity thieves can't get
them. Toward this goal, this bill will do the following:
The heart of this bill prohibits anyone from selling or displaying an
individual's Social Security number to the general public without the
individual's express consent.
But in recognition that sometimes there are legitimate needs for
Social Security numbers, the bill also makes exceptions. Perhaps the
most important exception allows the sale of Social Security numbers
between businesses, or between the government and businesses. The bill
also makes exceptions for law enforcement, national security,
compliance with other laws, and a few other areas.
Additionally, this bill prohibits government entities from displaying
Social Security numbers on public records that are posted on the
Internet or in other electronic media after the legislation's effective
date. It also prohibits governments from printing Social Security
numbers on government checks.
This bill also punishes people who fraudulently use Social Security
numbers to obtain benefits that they do not deserve.
Finally, this law has teeth to enforce its provisions. It gives the
Attorney General the authority to issue civil penalties of up to $5,000
for people who misuse Social Security numbers. It also creates a
criminal penalty, of up to five years in prison, for anyone who obtains
another person's Social Security number for the purpose of locating or
identifying that individual with the intent to physically harm that
person. And it lets the victims of identity theft sue in court to
recover their loss from the person who causes it.
Mr. President, the need for this bill should be clear. Theft of a
Social Security number can be especially devastating, because that
piece of information has become a de facto universal identifier in
American society.
Despite the widespread use of Social Security numbers, the General
Accounting Office reported recently that ``No single federal law
regulates the overall use or restricts the disclosure of SSNs by
governments.'' (Source: Social Security numbers: SSNs are Widely Used
by Government and Could be Better Protected, 2002 (Report Number GAO-
02-691T) at page 5). As a result, the use of Social Security numbers is
regulated by an inconsistent and insufficient patchwork of state and
federal laws, that often leaves the numbers in plain view of the whole
world.
One recent book on privacy in the United States documents how far the
use of Social Security numbers has spread beyond its original purpose,
when they were created in 1936, of tracking American workers' earnings
and benefits. According to the book: ``The SSN began to be used for
military personnel, legally admitted aliens, anyone receiving or
applying for federal benefits, food stamps, school lunch program
eligibility, draft registration, and federal loans. State and local
governments, as well as private sector entities such as schools and
banks, began to use SSNs as well--for drivers' licenses, birth
certificates, blood donation, jury selection, worker's compensation,
occupational licenses, and marriage licenses.'' (Source: Daniel Solove
and Marc Rotenberg, Information Privacy Law, Aspen Publishers, 2003, at
page 447-48.)
It isn't surprising, then, that the sale of Social Security numbers
is proceeding at a furious pace. According to the GAO in a report that
it released earlier this year, ``Internet-based information resellers
whose Web sites we accessed also obtain SSNs from their customers and
scour public records and other publicly available information to
provide the information to persons willing to pay a fee.'' (Source:
Social Security numbers: Private Sector Entities Routinely Obtain and
Use SSNs, and Laws Limit the Disclosure of this Information (2004,
Report Number GAO-04-11, on Highlights Page).
Governments also play a role in the widespread availability of Social
Security numbers to the general public. According to another GAO
report, issued just the other month in November 2004, ``State agencies
in 41 States and the District of Columbia reported visible SSNs in at
least one type of record.'' (Source: Government Could Do More to Reduce
Display in Public Records and on Identity Cards, (November 2004, Report
Number GAO-05-59, on Highlights Page). This affects about 94 percent of
the country's population. The report continues that ``15 to 28 percent
of the nation's 3,141 counties do place [Social Security numbers] on
the Internet and this could affect millions of people.''
If anyone who has doubts about the important role that this
legislation will in protecting the identity of Americans, let me offer
a few facts.

[[Page S217]]

For the past four years, the Federal Trade Commission has ranked
identity theft as its top consumer complaint. When the new numbers for
2004 come out in early February, I will not be surprised if identity
theft again ranks as the most common complaint.
The most comprehensive survey of identity-theft victimization, a
Federal Trade Commission report released in 2003, found that nearly 10
million Americans had been victimized by identity theft in the previous
year. The California Office of Privacy Protection estimates that 1.1
million of those victims were Californians.
A separate FTC report found California to have the third-highest rate
of identity theft per capita in 2003, with the number of victims
increasing by more than 28 percent from 2002.

For anyone still unconvinced about the need for this law, let me
offer a few specific examples of identity theft.
In November, 2004, in my home state of California, a married couple--
Antonio and Rose Espino--pled guilty after stealing the identities of
over 1,000 victims, and also stealing more than $8.8 million in
fraudulent unemployment insurance. They obtained employer payroll lists
that included names and Social Security numbers. (Source: ``San Joaquin
couple plead guilty in identity-theft case,'' Fresno Bee, November 23,
2004).
In another case, Christopher Jones, a twenty-five-year-old employee
at the University of North Carolina-Pembroke, stole approximately 3,000
Social Security numbers through his job, handing out towels and other
equipment at the university gym, and then tried to sell them in blocks
of 1,000 on eBay. He stated in his advertisement: ``100 (one hundred
Social Security # Numbers Obtain False Credit Cards Idenity Theft I
Don't Care Bid Starts at a Dollar a Piece USPS Money Orders only all
Different.''
Similar behavior--using the Web to gather Social Secuirty numbers--
still continues. As The Washington Post reported last February, by
using the common search engine Google on the Web, ``Search strings . .
. often bring up spread sheets, credit card numbers, and Social
Security numbers linked to a customer list.'' (Source: ``Online Search
Engines Help Lift Cover of Privacy,'' The Washington Post, February 9,
2004, at A1).
I personally first became aware of the need for a law to restrict the
sale and display of Social Security numbers about eight years ago, when
one of my staff members sat me down and downloaded my own Social
Security Number from the Internet in a matter of minutes.
Unfortunately, Congress has done little to protect Social Security
numbers since then. We still badly need a uniform law. Year after year,
I have advocated and proposed such legislation that would restrict the
public display and use of Social Security numbers:
In the 106th Congress, I introduced S. 2966.
In the 107th Congress, I introduced, S. 848 and S. 3100.
In the 108th Congress, I introduced S. 228, S. 745, and S. 2801.
None of these bills moved. Today, I stand before you yet again, to
introduce for a seventh time a bill to take steps that will make it
more difficult for thieves to steal this precious resource. This issue
does not concern Republican government or Democratic government; this
is an issue of good government.
Last year, the President signed into law a bill that I helped to
author, to increase penalties for those who steal the identities of
others. But punishment is not enough. We need to stop identity theft
from occurring in the first place. This information should have been
under lock and key long ago. It is time for us to act. Thank you Mr.
President.
I ask for unanimous consent that the text of the legislation directly
follow this statement in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 29

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Social
Security Number Misuse Prevention Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents
Sec. 2. Findings
Sec. 3. Prohibition of the display, sale, or purchase of social
security numbers
Sec. 4. Application of prohibition of the display, sale, or purchase of
social security numbers to public records
Sec. 5. Rulemaking authority of the Attorney General
Sec. 6. Treatment of social security numbers on government documents
Sec. 7. Limits on personal disclosure of a social security number for
consumer transactions
Sec. 8. Extension of civil monetary penalties for misuse of a social
security number
Sec. 9. Criminal penalties for the misuse of a social security number
Sec. 10. Civil actions and civil penalties
Sec. 11. Federal injunctive authority

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) The inappropriate display, sale, or purchase of social
security numbers has contributed to a growing range of
illegal activities, including fraud, identity theft, and, in
some cases, stalking and other violent crimes.
(2) While financial institutions, health care providers,
and other entities have often used social security numbers to
confirm the identity of an individual, the general display to
the public, sale, or purchase of these numbers has been used
to commit crimes, and also can result in serious invasions of
individual privacy.
(3) The Federal Government requires virtually every
individual in the United States to obtain and maintain a
social security number in order to pay taxes, to qualify for
social security benefits, or to seek employment. An
unintended consequence of these requirements is that social
security numbers have become one of the tools that can be
used to facilitate crime, fraud, and invasions of the privacy
of the individuals to whom the numbers are assigned. Because
the Federal Government created and maintains this system, and
because the Federal Government does not permit individuals to
exempt themselves from those requirements, it is appropriate
for the Federal Government to take steps to stem the abuse of
social security numbers.
(4) The display, sale, or purchase of social security
numbers in no way facilitates uninhibited, robust, and wide-
open public debate, and restrictions on such display, sale,
or purchase would not affect public debate.
(5) No one should seek to profit from the display, sale, or
purchase of social security numbers in circumstances that
create a substantial risk of physical, emotional, or
financial harm to the individuals to whom those numbers are
assigned.
(6) Consequently, this Act provides each individual that
has been assigned a social security number some degree of
protection from the display, sale, and purchase of that
number in any circumstance that might facilitate unlawful
conduct.

SEC. 3. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF
SOCIAL SECURITY NUMBERS.

(a) Prohibition.--
(1) In general.--Chapter 47 of title 18, United States
Code, is amended by inserting after section 1028 the
following:

``Sec. 1028A. Prohibition of the display, sale, or purchase
of social security numbers

[[Page S218]]

display, sale, or purchase of a social security number--
``(1) required, authorized, or excepted under any Federal
law;
``(2) for a public health purpose, including the protection
of the health or safety of an individual in an emergency
situation;
``(3) for a national security purpose;
``(4) for a law enforcement purpose, including the
investigation of fraud and the enforcement of a child support
obligation;
``(5) if the display, sale, or purchase of the number is
for a use occurring as a result of an interaction between
businesses, governments, or business and government
(regardless of which entity initiates the interaction),
including, but not limited to--
``(A) the prevention of fraud (including fraud in
protecting an employee's right to employment benefits);
``(B) the facilitation of credit checks or the facilitation
of background checks of employees, prospective employees, or
volunteers;
``(C) the retrieval of other information from other
businesses, commercial enterprises, government entities, or
private nonprofit organizations; or
``(D) when the transmission of the number is incidental to,
and in the course of, the sale, lease, franchising, or merger
of all, or a portion of, a business;
``(6) if the transfer of such a number is part of a data
matching program involving a Federal, State, or local agency;
or
``(7) if such number is required to be submitted as part of
the process for applying for any type of Federal, State, or
local government benefit or program;

except that, nothing in this subsection shall be construed as
permitting a professional or commercial user to display or
sell a social security number to the general public.
``(f) Limitation.--Nothing in this section shall prohibit
or limit the display, sale, or purchase of social security
numbers as permitted under title V of the Gramm-Leach-Bliley
Act, or for the purpose of affiliate sharing as permitted
under the Fair Credit Reporting Act, except that no entity
regulated under such Acts may make social security numbers
available to the general public, as may be determined by the
appropriate regulators under such Acts. For purposes of this
subsection, the general public shall not include affiliates
or unaffiliated third-party business entities as may be
defined by the appropriate regulators.''.
(2) Conforming amendment.--The chapter analysis for chapter
47 of title 18, United States Code, is amended by inserting
after the item relating to section 1028 the following:

``1028A. Prohibition of the display, sale, or purchase of social
security numbers''.

(b) Study; Report.--
(1) In general.--The Attorney General shall conduct a study
and prepare a report on all of the uses of social security
numbers permitted, required, authorized, or excepted under
any Federal law. The report shall include a detailed
description of the uses allowed as of the date of enactment
of this Act, the impact of such uses on privacy and data
security, and shall evaluate whether such uses should be
continued or discontinued by appropriate legislative action.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Attorney General shall report to
Congress findings under this subsection. The report shall
include such recommendations for legislation based on
criteria the Attorney General determines to be appropriate.
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 30 days after the date
on which the final regulations promulgated under section 5
are published in the Federal Register.

SEC. 4. APPLICATION OF PROHIBITION OF THE DISPLAY, SALE, OR
PURCHASE OF SOCIAL SECURITY NUMBERS TO PUBLIC
RECORDS.

(a) Public Records Exception.--
(1) In general.--Chapter 47 of title 18, United States Code
(as amended by section 3(a)(1)), is amended by inserting
after section 1028A the following:

``Sec. 1028B. Display, sale, or purchase of public records
containing social security numbers

``(a) Definition.--In this section, the term `public
record' means any governmental record that is made available
to the general public.
``(b) In General.--Except as provided in subsections (c),
(d), and (e), section 1028A shall not apply to a public
record.
``(c) Public Records on the Internet or in an Electronic
Medium.--
``(1) In general.--Section 1028A shall apply to any public
record first posted onto the Internet or provided in an
electronic medium by, or on behalf of a government entity
after the date of enactment of this section, except as
limited by the Attorney General in accordance with paragraph
(2).
``(2) Exception for government entities already placing
public records on the internet or in electronic form.--Not
later than 60 days after the date of enactment of this
section, the Attorney General shall issue regulations
regarding the applicability of section 1028A to any record of
a category of public records first posted onto the Internet
or provided in an electronic medium by, or on behalf of a
government entity prior to the date of enactment of this
section. The regulations will determine which individual
records within categories of records of these government
entities, if any, may continue to be posted on the Internet
or in electronic form after the effective date of this
section. In promulgating these regulations, the Attorney
General may include in the regulations a set of procedures
for implementing the regulations and shall consider the
following:
``(A) The cost and availability of technology available to
a governmental entity to redact social security numbers from
public records first provided in electronic form after the
effective date of this section.
``(B) The cost or burden to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments of complying with
section 1028A with respect to such records.
``(C) The benefit to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments if the Attorney General
were to determine that section 1028A should apply to such
records.

Nothing in the regulation shall permit a public entity to
post a category of public records on the Internet or in
electronic form after the effective date of this section if
such category had not been placed on the Internet or in
electronic form prior to such effective date.
``(d) Harvested Social Security Numbers.--Section 1028A
shall apply to any public record of a government entity which
contains social security numbers extracted from other public
records for the purpose of displaying or selling such numbers
to the general public.
``(e) Attorney General Rulemaking on Paper Records.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Attorney General shall
determine the feasibility and advisability of applying
section 1028A to the records listed in paragraph (2) when
they appear on paper or on another nonelectronic medium. If
the Attorney General deems it appropriate, the Attorney
General may issue regulations applying section 1028A to such
records.
``(2) List of paper and other nonelectronic records.--The
records listed in this paragraph are as follows:
``(A) Professional or occupational licenses.
``(B) Marriage licenses.
``(C) Birth certificates.
``(D) Death certificates.
``(E) Other short public documents that display a social
security number in a routine and consistent manner on the
face of the document.
``(3) Criteria for attorney general review.--In determining
whether section 1028A should apply to the records listed in
paragraph (2), the Attorney General shall consider the
following:
``(A) The cost or burden to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments of complying with
section 1028A.
``(B) The benefit to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments if the Attorney General
were to determine that section 1028A should apply to such
records.''.
(2) Conforming amendment.--The chapter analysis for chapter
47 of title 18, United States Code (as amended by section
3(a)(2)), is amended by inserting after the item relating to
section 1028A the following:

``1028B. Display, sale, or purchase of public records containing social
security numbers''.

(b) Study and Report on Social Security Numbers in Public
Records.--
(1) Study.--The Comptroller General of the United States
shall conduct a study and prepare a report on social security
numbers in public records. In developing the report, the
Comptroller General shall consult with the Administrative
Office of the United States Courts, State and local
governments that store, maintain, or disseminate public
records, and other stakeholders, including members of the
private sector who routinely use public records that contain
social security numbers.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report on the study
conducted under paragraph (1). The report shall include a
detailed description of the activities and results of the
study and recommendations for such legislative action as the
Comptroller General considers appropriate. The report, at a
minimum, shall include--
(A) a review of the uses of social security numbers in non-
federal public records;
(B) a review of the manner in which public records are
stored (with separate reviews for both paper records and
electronic records);
(C) a review of the advantages or utility of public records
that contain social security numbers, including the utility
for law enforcement, and for the promotion of homeland
security;
(D) a review of the disadvantages or drawbacks of public
records that contain social security numbers, including
criminal activity, compromised personal privacy, or threats
to homeland security;
(E) the costs and benefits for State and local governments
of removing social security numbers from public records,
including a review of current technologies and procedures for
removing social security numbers from public records; and

[[Page S219]]

(F) an assessment of the benefits and costs to businesses,
their customers, and the general public of prohibiting the
display of social security numbers on public records (with
separate assessments for both paper records and electronic
records).
(c) Effective Date.--The prohibition with respect to
electronic versions of new classes of public records under
section 1028B(b) of title 18, United States Code (as added by
subsection (a)(1)) shall not take effect until the date that
is 60 days after the date of enactment of this Act.

SEC. 5. RULEMAKING AUTHORITY OF THE ATTORNEY GENERAL.

(a) In General.--Except as provided in subsection (b), the
Attorney General may prescribe such rules and regulations as
the Attorney General deems necessary to carry out the
provisions of section 1028A(e)(5) of title 18, United States
Code (as added by section 3(a)(1)).
(b) Display, Sale, or Purchase Rulemaking With Respect to
Interactions Between Businesses, Governments, or Business and
Government.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Attorney General, in consultation
with the Commissioner of Social Security, the Chairman of the
Federal Trade Commission, and such other heads of Federal
agencies as the Attorney General determines appropriate,
shall conduct such rulemaking procedures in accordance with
subchapter II of chapter 5 of title 5, United States Code, as
are necessary to promulgate regulations to implement and
clarify the uses occurring as a result of an interaction
between businesses, governments, or business and government
(regardless of which entity initiates the interaction)
permitted under section 1028A(e)(5) of title 18, United
States Code (as added by section 3(a)(1)).
(2) Factors to be considered.--In promulgating the
regulations required under paragraph (1), the Attorney
General shall, at a minimum, consider the following:
(A) The benefit to a particular business, to customers of
the business, and to the general public of the display, sale,
or purchase of an individual's social security number.
(B) The costs that businesses, customers of businesses, and
the general public may incur as a result of prohibitions on
the display, sale, or purchase of social security numbers.
(C) The risk that a particular business practice will
promote the use of a social security number to commit fraud,
deception, or crime.
(D) The presence of adequate safeguards, procedures, and
technologies to prevent--
(i) misuse of social security numbers by employees within a
business; and
(ii) misappropriation of social security numbers by the
general public, while permitting internal business uses of
such numbers.
(E) The presence of procedures to prevent identity thieves,
stalkers, and other individuals with ill intent from posing
as legitimate businesses to obtain social security numbers.
(F) The impact of such uses on privacy.

SEC. 6. TREATMENT OF SOCIAL SECURITY NUMBERS ON GOVERNMENT
DOCUMENTS.

(a) Prohibition of Use of Social Security Account Numbers
on Checks Issued for Payment by Governmental Agencies.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at
the end the following:
``(x) No Federal, State, or local agency may display the
social security account number of any individual, or any
derivative of such number, on any check issued for any
payment by the Federal, State, or local agency.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to violations of section
205(c)(2)(C)(x) of the Social Security Act (42 U.S.C.
405(c)(2)(C)(x)), as added by paragraph (1), occurring after
the date that is 3 years after the date of enactment of this
Act.
(b) Prohibition of Inmate Access to Social Security Account
Numbers.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by
subsection (b)) is amended by adding at the end the
following:
``(xi) No Federal, State, or local agency may employ, or
enter into a contract for the use or employment of, prisoners
in any capacity that would allow such prisoners access to the
social security account numbers of other individuals. For
purposes of this clause, the term `prisoner' means an
individual confined in a jail, prison, or other penal
institution or correctional facility pursuant to such
individual's conviction of a criminal offense.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to employment of prisoners, or entry
into contract with prisoners, after the date that is 1 year
after the date of enactment of this Act.

SEC. 7. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL SECURITY
NUMBER FOR CONSUMER TRANSACTIONS.

(a) In General.--Part A of title XI of the Social Security
Act (42 U.S.C. 1301 et seq.) is amended by adding at the end
the following:

``SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL
SECURITY NUMBER FOR CONSUMER TRANSACTIONS.

``(a) In General.--A commercial entity may not require an
individual to provide the individual's social security number
when purchasing a commercial good or service or deny an
individual the good or service for refusing to provide that
number except--
``(1) for any purpose relating to--
``(A) obtaining a consumer report for any purpose permitted
under the Fair Credit Reporting Act;
``(B) a background check of the individual conducted by a
landlord, lessor, employer, voluntary service agency, or
other entity as determined by the Attorney General;
``(C) law enforcement; or
``(D) a Federal, State, or local law requirement; or
``(2) if the social security number is necessary to verify
the identity of the consumer to effect, administer, or
enforce the specific transaction requested or authorized by
the consumer, or to prevent fraud.
``(b) Application of Civil Money Penalties.--A violation of
this section shall be deemed to be a violation of section
1129(a)(3)(F).
``(c) Application of Criminal Penalties.--A violation of
this section shall be deemed to be a violation of section
208(a)(8).
``(d) Limitation on Class Actions.--No class action
alleging a violation of this section shall be maintained
under this section by an individual or any private party in
Federal or State court.
``(e) State Attorney General Enforcement.--
``(1) In general.--
``(A) Civil actions.--In any case in which the attorney
general of a State has reason to believe that an interest of
the residents of that State has been or is threatened or
adversely affected by the engagement of any person in a
practice that is prohibited under this section, the State, as
parens patriae, may bring a civil action on behalf of the
residents of the State in a district court of the United
States of appropriate jurisdiction to--
``(i) enjoin that practice;
``(ii) enforce compliance with such section;
``(iii) obtain damages, restitution, or other compensation
on behalf of residents of the State; or
``(iv) obtain such other relief as the court may consider
appropriate.
``(B) Notice.--
``(i) In general.--Before filing an action under
subparagraph (A), the attorney general of the State involved
shall provide to the Attorney General--

``(I) written notice of the action; and
``(II) a copy of the complaint for the action.

``(ii) Exemption.--

``(I) In general.--Clause (i) shall not apply with respect
to the filing of an action by an attorney general of a State
under this subsection, if the State attorney general
determines that it is not feasible to provide the notice
described in such subparagraph before the filing of the
action.
``(II) Notification.--With respect to an action described
in subclause (I), the attorney general of a State shall
provide notice and a copy of the complaint to the Attorney
General at the same time as the State attorney general files
the action.

``(2) Intervention.--
``(A) In general.--On receiving notice under paragraph
(1)(B), the Attorney General shall have the right to
intervene in the action that is the subject of the notice.
``(B) Effect of intervention.--If the Attorney General
intervenes in the action under paragraph (1), the Attorney
General shall have the right to be heard with respect to any
matter that arises in that action.
``(3) Construction.--For purposes of bringing any civil
action under paragraph (1), nothing in this section shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on such attorney general by
the laws of that State to--
``(A) conduct investigations;
``(B) administer oaths or affirmations; or
``(C) compel the attendance of witnesses or the production
of documentary and other evidence.
``(4) Actions by the attorney general of the united
states.--In any case in which an action is instituted by or
on behalf of the Attorney General for violation of a practice
that is prohibited under this section, no State may, during
the pendency of that action, institute an action under
paragraph (1) against any defendant named in the complaint in
that action for violation of that practice.
``(5) Venue; service of process.--
``(A) Venue.--Any action brought under paragraph (1) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
``(B) Service of process.--In an action brought under
paragraph (1), process may be served in any district in which
the defendant--
``(i) is an inhabitant; or
``(ii) may be found.
``(f) Sunset.--This section shall not apply on or after the
date that is 6 years after the effective date of this
section.''.
(b) Evaluation and Report.--Not later than the date that is
6 years and 6 months after the date of enactment of this Act,
the Attorney General, in consultation with the chairman of
the Federal Trade Commission, shall issue a report evaluating
the effectiveness and efficiency of section 1150A of the
Social Security Act (as added by subsection (a)) and shall
make recommendations to Congress as to any legislative action
determined to be necessary or advisable with respect to such
section, including a recommendation regarding whether to
reauthorize such section.

[[Page S220]]

(c) Effective Date.--The amendment made by subsection (a)
shall apply to requests to provide a social security number
occurring after the date that is 1 year after the date of
enactment of this Act.

SEC. 8. EXTENSION OF CIVIL MONETARY PENALTIES FOR MISUSE OF A
SOCIAL SECURITY NUMBER.

(a) Treatment of Withholding of Material Facts.--
(1) Civil penalties.--The first sentence of section
1129(a)(1) of the Social Security Act (42 U.S.C. 1320a-
8(a)(1)) is amended--
(A) by striking ``who'' and inserting ``who--'';
(B) by striking ``makes'' and all that follows through
``shall be subject to'' and inserting the following:
``(A) makes, or causes to be made, a statement or
representation of a material fact, for use in determining any
initial or continuing right to or the amount of monthly
insurance benefits under title II or benefits or payments
under title VIII or XVI, that the person knows or should know
is false or misleading;
``(B) makes such a statement or representation for such use
with knowing disregard for the truth; or
``(C) omits from a statement or representation for such
use, or otherwise withholds disclosure of, a fact which the
individual knows or should know is material to the
determination of any initial or continuing right to or the
amount of monthly insurance benefits under title II or
benefits or payments under title VIII or XVI and the
individual knows, or should know, that the statement or
representation with such omission is false or misleading or
that the withholding of such disclosure is misleading, shall
be subject to'';
(C) by inserting ``or each receipt of such benefits while
withholding disclosure of such fact'' after ``each such
statement or representation'';
(D) by inserting ``or because of such withholding of
disclosure of a material fact'' after ``because of such
statement or representation''; and
(E) by inserting ``or such a withholding of disclosure''
after ``such a statement or representation''.
(2) Administrative procedure for imposing penalties.--The
first sentence of section 1129A(a) of the Social Security Act
(42 U.S.C. 1320a-8a(a)) is amended--
(A) by striking ``who'' and inserting ``who--''; and
(B) by striking ``makes'' and all that follows through
``shall be subject to'' and inserting the following:
``(1) makes, or causes to be made, a statement or
representation of a material fact, for use in determining any
initial or continuing right to or the amount of monthly
insurance benefits under title II or benefits or payments
under title VIII or XVI, that the person knows or should know
is false or misleading;
``(2) makes such a statement or representation for such use
with knowing disregard for the truth; or
``(3) omits from a statement or representation for such
use, or otherwise withholds disclosure of, a fact which the
individual knows or should know is material to the
determination of any initial or continuing right to or the
amount of monthly insurance benefits under title II or
benefits or payments under title VIII or XVI and the
individual knows, or should know, that the statement or
representation with such omission is false or misleading or
that the withholding of such disclosure is misleading, shall
be subject to''.
(b) Application of Civil Money Penalties to Elements of
Criminal Violations.--Section 1129(a) of the Social Security
Act (42 U.S.C. 1320a-8(a)), as amended by subsection (a)(1),
is amended--
(1) by redesignating paragraph (2) as paragraph (4);
(2) by redesignating the last sentence of paragraph (1) as
paragraph (2) and inserting such paragraph after paragraph
(1); and
(3) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Any person (including an organization, agency, or
other entity) who--
``(A) uses a social security account number that such
person knows or should know has been assigned by the
Commissioner of Social Security (in an exercise of authority
under section 205(c)(2) to establish and maintain records) on
the basis of false information furnished to the Commissioner
by any person;
``(B) falsely represents a number to be the social security
account number assigned by the Commissioner of Social
Security to any individual, when such person knows or should
know that such number is not the social security account
number assigned by the Commissioner to such individual;
``(C) knowingly alters a social security card issued by the
Commissioner of Social Security, or possesses such a card
with intent to alter it;
``(D) knowingly displays, sells, or purchases a card that
is, or purports to be, a card issued by the Commissioner of
Social Security, or possesses such a card with intent to
display, purchase, or sell it;
``(E) counterfeits a social security card, or possesses a
counterfeit social security card with intent to display,
sell, or purchase it;
``(F) discloses, uses, compels the disclosure of, or
knowingly displays, sells, or purchases the social security
account number of any person in violation of the laws of the
United States;
``(G) with intent to deceive the Commissioner of Social
Security as to such person's true identity (or the true
identity of any other person) furnishes or causes to be
furnished false information to the Commissioner with respect
to any information required by the Commissioner in connection
with the establishment and maintenance of the records
provided for in section 205(c)(2);
``(H) offers, for a fee, to acquire for any individual, or
to assist in acquiring for any individual, an additional
social security account number or a number which purports to
be a social security account number; or
``(I) being an officer or employee of a Federal, State, or
local agency in possession of any individual's social
security account number, willfully acts or fails to act so as
to cause a violation by such agency of clause (vi)(II) or (x)
of section 205(c)(2)(C), shall be subject to, in addition to
any other penalties that may be prescribed by law, a civil
money penalty of not more than $5,000 for each violation.
Such person shall also be subject to an assessment, in lieu
of damages sustained by the United States resulting from such
violation, of not more than twice the amount of any benefits
or payments paid as a result of such violation.''.
(c) Clarification of Treatment of Recovered Amounts.--
Section 1129(e)(2)(B) of the Social Security Act (42 U.S.C.
1320a-8(e)(2)(B)) is amended by striking ``In the case of
amounts recovered arising out of a determination relating to
title VIII or XVI,'' and inserting ``In the case of any other
amounts recovered under this section,''.
(d) Conforming Amendments.--
(1) Section 1129(b)(3)(A) of the Social Security Act (42
U.S.C. 1320a-8(b)(3)(A)) is amended by striking ``charging
fraud or false statements''.
(2) Section 1129(c)(1) of the Social Security Act (42
U.S.C. 1320a-8(c)(1)) is amended by striking ``and
representations'' and inserting ``, representations, or
actions''.
(3) Section 1129(e)(1)(A) of the Social Security Act (42
U.S.C. 1320a-8(e)(1)(A)) is amended by striking ``statement
or representation referred to in subsection (a) was made''
and inserting ``violation occurred''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
violations of sections 1129 and 1129A of the Social Security
Act (42 U.S.C. 1320-8 and 1320a-8a), as amended by this
section, committed after the date of enactment of this Act.
(2) Violations by government agents in possession of social
security numbers.--Section 1129(a)(3)(I) of the Social
Security Act (42 U.S.C. 1320a-8(a)(3)(I)), as added by
subsection (b), shall apply with respect to violations of
that section occurring on or after the effective date
described in section 3(c).

SEC. 9. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL
SECURITY NUMBER.

(a) Prohibition of Wrongful Use as Personal Identification
Number.--No person may obtain any individual's social
security number for purposes of locating or identifying an
individual with the intent to physically injure, harm, or use
the identity of the individual for any illegal purpose.
(b) Criminal Sanctions.--Section 208(a) of the Social
Security Act (42 U.S.C. 408(a)) is amended--
(1) in paragraph (8), by inserting ``or'' after the
semicolon; and
(2) by inserting after paragraph (8) the following:
``(9) except as provided in subsections (e) and (f) of
section 1028A of title 18, United States Code, knowingly and
willfully displays, sells, or purchases (as those terms are
defined in section 1028A(a) of title 18, United States Code)
any individual's social security account number without
having met the prerequisites for consent under section
1028A(d) of title 18, United States Code; or
``(10) obtains any individual's social security number for
the purpose of locating or identifying the individual with
the intent to injure or to harm that individual, or to use
the identity of that individual for an illegal purpose;''.

SEC. 10. CIVIL ACTIONS AND CIVIL PENALTIES.

(a) Civil Action in State Courts.--
(1) In general.--Any individual aggrieved by an act of any
person in violation of this Act or any amendments made by
this Act may, if otherwise permitted by the laws or rules of
the court of a State, bring in an appropriate court of that
State--
(A) an action to enjoin such violation;
(B) an action to recover for actual monetary loss from such
a violation, or to receive up to $500 in damages for each
such violation, whichever is greater; or
(C) both such actions.

It shall be an affirmative defense in any action brought
under this paragraph that the defendant has established and
implemented, with due care, reasonable practices and
procedures to effectively prevent violations of the
regulations prescribed under this Act. If the court finds
that the defendant willfully or knowingly violated the
regulations prescribed under this subsection, the court may,
in its discretion, increase the amount of the award to an
amount equal to not more than 3 times the amount available
under subparagraph (B).
(2) Statute of limitations.--An action may be commenced
under this subsection not later than the earlier of--
(A) 5 years after the date on which the alleged violation
occurred; or
(B) 3 years after the date on which the alleged violation
was or should have been reasonably discovered by the
aggrieved individual.

[[Page S221]]

(3) Nonexclusive remedy.--The remedy provided under this
subsection shall be in addition to any other remedies
available to the individual.
(b) Civil Penalties.--
(1) In general.--Any person who the Attorney General
determines has violated any section of this Act or of any
amendments made by this Act shall be subject, in addition to
any other penalties that may be prescribed by law--
(A) to a civil penalty of not more than $5,000 for each
such violation; and
(B) to a civil penalty of not more than $50,000, if the
violations have occurred with such frequency as to constitute
a general business practice.
(2) Determination of violations.--Any willful violation
committed contemporaneously with respect to the social
security numbers of 2 or more individuals by means of mail,
telecommunication, or otherwise, shall be treated as a
separate violation with respect to each such individual.
(3) Enforcement procedures.--The provisions of section
1128A of the Social Security Act (42 U.S.C. 1320a-7a), other
than subsections (a), (b), (f), (h), (i), (j), (m), and (n)
and the first sentence of subsection (c) of such section, and
the provisions of subsections (d) and (e) of section 205 of
such Act (42 U.S.C. 405) shall apply to a civil penalty
action under this subsection in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a) of such Act (42 U.S.C. 1320a-7a(a)), except that,
for purposes of this paragraph, any reference in section
1128A of such Act (42 U.S.C. 1320a-7a) to the Secretary shall
be deemed to be a reference to the Attorney General.

SEC. 11. FEDERAL INJUNCTIVE AUTHORITY.

In addition to any other enforcement authority conferred
under this Act or the amendments made by this Act, the
Federal Government shall have injunctive authority with
respect to any violation by a public entity of any provision
of this Act or of any amendments made by this Act.
______

By Mr. SARBANES (for himself, Mr. Corzine, Mrs. Clinton, Mr.
Akaka, Mr. Bingaman, Mr. Schumer, Mr. Dodd, Mrs. Boxer, Ms.
Mikulski, and Mr. Reid):
S. 31. A bill to amend the Electronic Fund Transfer Act to extend
certain consumer protections to international remittance transfers of
funds originating in the United States, and for other purposes; to the
Committee on Banking, Housing, and Urban Affairs.
Mr. SARBANES. Mr. President, today I am introducing the International
Remittance Consumer Protection Act of 2005. This legislation extends
basic consumer protection rights to those who send remittances, and it
creates new avenues and incentives for federally insured financial
institutions to provide remittance and basic banking services to those
who currently do not use such institutions to send remittances.
The practice of sending remittances is not new. Immigrants to the
United States traditionally have used remittances to provide financial
assistance to family members who remained in their country of origin,
but the practice has been largely overlooked; it has not been
systematically studied and its implications have not been fully
understood. The 2000 census shows that 30 million people in this
country are foreign-born--the largest number in our Nation's history--
and the vast majority of them--22 million are citizens or legal
residents. More than 40 percent of our Nation's foreign-born population
immigrated to the United States in the 1990s, and some 15.4 million, or
more than half the immigrant community, have come from Latin American
countries. Immigrants make a vital contribution to the economic and
social life of our Nation.
In a recent study, Sending Money Home: Remittances to Latin America
from the U.S., 2004, the Inter-American Development Bank, IADB, found
that nationwide over 60 percent of Latin American immigrants send
remittances. On average, each immigrant sends $240 at a time, 12 times
per year. Although these individual transactions are not large, they
have constituted an aggregate amount of over $30 billion from America
to our Latin American neighbors in this year alone.
In my State of Maryland, we have 175,000 immigrants from Latin
America and the vast majority send remittances back home. According to
the IADB's study 80 percent of Maryland's immigrants from Latin America
send remittances. The typical sender remits an average of $245, 14
times per year--in other words, remittances are a monthly matter, with
special gifts for Christmas and Mother's Day.
The subject of remittances has been a major interest of mine for some
time. As chairman of the Banking Committee, in February, 2002, during
the 107th Congress, I chaired what I understand was the first
Congressional hearing devoted exclusively to the subject. Dr. Manuel
Orozco, a leading researcher on remittances at the Inter-American
Dialogue, told the Committee that remittances from the U.S. to Latin
America had grown substantially--at that point to an estimated $20
billion in 2001--and that between 15 to 20 percent--$3-$4 billion--was
being lost in fees and other transaction costs. Since Dr. Orozco
testified, remittances to Latin America have grown by $10 billion, or
50 percent, in just three years, and continued growth is expected.
That an estimated 15 percent to 20 percent of the money sent in
remittances is diverted to fees and other transaction costs, often
hidden from the remittance sender, is evidence of the abusive practices
that exist in the remittance market. There are two primary factors that
account for this abuse. First, studies have shown that people who send
remittances tend to be relatively low-wage earners, with modest formal
education and relatively little experience in dealing with this
country's complex system of financial institutions. As a result they
are susceptible to unscrupulous actors who can take advantage of them
by charging all sorts of exorbitant fees, which are often hidden or
misrepresented. The exchange rate conversion is often the mechanism for
this abusive practice.
Second, remittances are currently not subject to the requirements set
by Federal consumer protection law, including the disclosure of fees.
There is no requirement that a remittance transfer provider disclose to
the consumer the exchange rate fee that will be applied in the
transaction. Without knowing the exchange rate fee that the company is
charging, a consumer has little ability to gauge accurately the full
cost of sending a remittance. As Sergio Bendixen, a leading researcher
of public opinion and behavior, with a specialty among Hispanic
consumers, testified before the Banking Committee: ``an overwhelming
majority of Hispanic immigrants are unaware that their families in
Latin America receive less money than what they send from the United
States.'' Further, a remittance sender cannot effectively shop between
remittance transfer providers. The lack of basic information limits the
amount of competition in this market.
The legislation I am introducing today extends basic consumer rights
to those who send remittances. Further, by requiring clear and
understandable disclosures to the remittance sender of the cost of the
remittance, thus presenting to the consumer the full cost of sending
money, the legislation will enhance competition, which in turn should
lead to an overall decrease in the cost of sending remittances. As
Sergio Bendixen testified to the Banking Committee, ``Full disclosure
should unleash market forces that, hopefully, will result in a
significant reduction in the cost of sending cash remittances.''

This legislation amends the Electronic Fund Transfer Act, EFTA, which
is the primary vehicle for providing basic protections to most persons
who engage in electronic transactions, to cover remittances, and to
provide the basic rights associated with EFTA to remittance
transactions. The two most important components of EFTA are the
requirement of full disclosure of fees and the establishment of a
process for the resolution of transactional errors. These rights have
been an integral part of the regulations that govern our banking
infrastructure since EFTA's enactment in 1978. The new legislation will
build upon the success of EFTA by extending these basic rights to
remittance senders.
The cornerstone of this legislation is the requirement that
remittance transfer providers make three key disclosures to their
consumers: One, the total cost of the remittance, represented in a
single dollar amount; two, the total amount of currency that will be
sent to the designated recipient; and three, the promised date of
delivery for the remittance. These disclosures follow the core
recommendations of the Inter-American Development Bank, which in its
publication, Remittances to Latin America and the Caribbean: Goals and
Recommendations,

[[Page S222]]

states: ``Remittance institutions should disclose in a fully
transparent manner, complete information on total costs and transfer
conditions, including all commissions and fees, foreign exchange rates
applied and execution time.''
The total cost disclosure will include the cost of the exchange rate
conversion as well as all up-front fees. This single item will both
give consumers a more accurate representation of the cost of the
remittance transaction and allow consumers to more effectively compare
costs between remittance transfer providers.
In order to calculate the cost of the exchange rate conversion, which
is part of the total cost, the legislation requires that the Treasury
Department post on its website, on a daily basis, the exchange rate for
all currencies. At present the Treasury receives this information on a
daily basis, but posts it only on a quarterly basis on the Treasury
website. By posting the information daily, the Treasury could create a
uniform and credible source for exchange rate information.
To calculate the cost to the consumer of the exchange rate
differential, remittance transfer providers will use the difference
between the previous business day's exchange rate, as posted on the
Treasury website, and the exchange rate that the remittance transfer
provider offers. Using the exchange rate posted by the Treasury will
ensure that the exchange rate cost is calculated on a uniform base.
When the exchange rate cost is disclosed to the consumer as part of the
total cost of the remittance transfer, the consumer will be better able
to understand the full cost of the transaction and to shop between
different remittance transfer providers.
In addition to fee disclosure requirements, this legislation
establishes an error resolution mechanism so that consumers whose
remittance transactions experience an error have a fair, open, and
expedient process through which they may resolve those errors with the
institution that conducted the flawed transaction. This basic right is
already afforded to consumers who are protected by EFTA, and now this
right will be extended to cover consumers who send remittances as well.
Further, the legislation establishes an error resolution mechanism for
remittance transfer errors that is responsive to the different types of
errors that can occur in a remittance transaction and is reflective of
the unique characteristics of the remittance market and its
participants.
Under this legislation, a consumer has one year from the date that
the remittance transfer company promised to deliver the money to notify
the company that an error has occurred. The company is then required to
resolve the error within 90 days. To resolve the error, the company
must either 1. refund the full amount of the remittance that was not
properly transferred, 2. resend that amount at no additional cost to
the consumer or the designated recipient, or 3. demonstrate to the
consumer that there was no error. The Federal Reserve Board is also
granted the authority to establish additional remedies for specific
situations that cannot be addressed by the three specific remedies that
are described in the legislation.
It is urgent that we continue to encourage efforts to bring those who
send remittances into the financial mainstream. In his testimony to the
Banking Committee, Dr. Orozco pointed out that, ``About two-thirds of
immigrants cash their salary checks in check cashing stores that charge
exorbitant fees. Many of these same immigrants then use what remains of
their income to send remittances back home. In this common scenario,
immigrants are penalized in both receiving and sending their
earnings.'' In order to further bank those who are currently unbanked,
the legislation that I am introducing today requires that the Federal
banking agencies and the National Credit Union Administration provide
guidelines to financial institutions regarding the offering of low-cost
remittance transfers and no-cost or low-cost basic consumer accounts.
This legislation also amends the Federal Credit Union Act to allow
credit unions to offer remittances and to cash checks for persons who
are in their field of membership but are not credit union members. The
guidelines set out in the legislation will help educate the financial
services industry about the importance and potential profitability of
providing these services.

The sending of remittances in a fair and scrupulous manner is likely
to be profitable for the institution that provides the remittance
service, and indeed we have begun to see aggressive moves into the
remittance market by many of the largest banking institutions.
Individuals who send remittances but are currently unbanked represent
an expanded and profitable customer base for financial institutions.
By its very nature, the issues involved in sending remittances affect
both the United States and other nations. As Professor Susan Martin of
Georgetown University, who also testified at our hearing, told the
Banking Committee: ``Until relatively recently, researchers and policy
makers tended to dismiss the importance of remittances or emphasize
only their negative aspects . . . but recent work on remittances show a
far more complex and promising picture. . . . Experts now recognize
that remittances have far greater positive impact on communities in
developing countries than previously acknowledged.'' In fact, the size
of the remittance market is such that for six Central American and
Caribbean nations--Nicaragua, Haiti, El Salvador, Honduras, Guyana and
Jamaica--remittances constitute more than 10 percent of GDP; Haiti and
Jamaica receive more in remittances than in revenues from trade. The
World Bank estimates that Mexico receives more in remittances than it
does in foreign direct investment. Reducing the costs of remittances is
in the interest of both the United States and the countries that
receive them.
Given the growing importance of annual remittance flows, we must work
to increase their efficiency. One mechanism for accomplishing this
objective, and for increasing the ability of financial institutions to
offer remittances, is linking our banking infrastructure with the
banking infrastructures of other nations. The Federal Reserve operates
an international automated clearing house system, ACHi, that is
currently linked to seven countries, of which the vast majority are
highly developed trading partners that receive relatively low levels of
remittances. The ACHi was recently connected to Mexico, however, which
will allow financial institutions throughout the United States,
especially those institutions of smaller size, to provide remittance
services more easily and cheaply to Mexico. This legislation directs
the Fed to take into account the importance of remittance flows to
other countries as it continues to expand the ACHi system. Linking the
ACHi to countries that receive significant remittances has the
potential to result in great benefits to consumers who send remittances
from America as well as to those who receive the remittances around the
world.
Finally, I am acutely aware of the need for better and more broadly
available financial literacy and education for all Americans. I am
pleased to report that in the last Congress, as part of the
reauthorization of the Fair Credit Reporting Act, we established a
Presidential Financial Literacy and Education Commission, which is
charged with developing a national strategy to promote financial
literacy and education. The Act addresses the issue of remittances by
including in the Commission's work a focus on increasing the
``awareness of the particular financial needs and financial
transactions, such as the sending of remittances, of consumers who are
targeted in multilingual financial literacy and education programs.''
The legislation that I am introducing today builds on that framework by
instructing the bank and credit union regulators to work with the
Commission to specifically increase the financial education efforts
that target those persons who send remittances.
Millions of Americans send remittances to family members around the
world, for a total far exceeding the $30 billion that goes to Latin
America alone. Yet almost all of these transactions take place without
the basic consumer rights and protections that apply to other
electronic transfers. Consumers who send remittances are often
immigrants and workers who earn modest wages, who are not aware of the
full costs of each remittance,

[[Page S223]]

and as a practical matter have no way of finding out, and, as a
consequence, in the aggregate pay billions of dollars in costs and
hidden fees. They do not have available to them an established
procedure for resolving transactional errors. This legislation
rectifies this situation by extending to remittances the basic consumer
rights established in EFTA. The bill also contains provisions that,
when implemented, will allow more insured financial institutions to
provide remittance services--and potentially at lower costs to
consumers. The bill contains important provisions to help bring the
unbanked--men and women without an account at a bank or credit union
into the financial mainstream. Taken together, these measures will
increase transparency, competition and efficiency in the remittance
market, while helping to bring more Americans into the financial
mainstream.
A broad range of community, civil rights, and consumer groups have
endorsed this legislation including the National Council of La Raza,
the Mexican American Legal Defense and Educational Fund, the League of
United Latin American Citizens, the Leadership Conference on Civil
Rights, United Farm Workers of America, the Farmworker Justice Fund,
the NAACP, Casa de Maryland, the National Federation of Filipino
American Associations, the Asian Pacific American Labor Alliance,
National Asian Pacific American Legal Consortium, Consumers Union,
Consumer Federation of America, the National Consumer Law Center, the
National Community Reinvestment Coalition, the Center for Responsible
Lending, U.S. PIRG, ACORN, Woodstock Institute, and the National
Association of Consumer Advocates. The Credit Union National
Association and the World Council of Credit Unions, both of whom
provide remittance services, have also endorsed this legislation.
I ask unanimous consent that the text of International Remittance
Consumer Protection Act be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 31

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``International Remittance
Consumer Protection Act of 2005''.

SEC. 2. TREATMENT OF REMITTANCE TRANSFERS.

(a) In General.--The Electronic Fund Transfer Act (15
U.S.C. 1693 et seq.) is amended--
(1) in section 902(b), by inserting ``and remittance''
after ``electronic fund'';
(2) by redesignating sections 918, 919, 920, and 921 as
sections 919, 920, 921, and 922, respectively; and
(3) by inserting after section 917 the following:

``SEC. 918. REMITTANCE TRANSFERS.

``(a) Disclosures Required for Remittance Transfers.--
``(1) In general.--Each remittance transfer provider shall
make disclosures to consumers, as specified by this section
and augmented by regulation of the Board.
``(2) Specific disclosures.--In addition to any other
disclosures applicable under this title, a remittance
transfer provider shall clearly and conspicuously disclose,
in writing and in a form that the consumer may keep, to each
consumer requesting a remittance transfer--
``(A) at the time at which the consumer makes the request,
and prior to the consumer making any payment in connection
with the transfer--
``(i) the total amount of currency that will be required to
be tendered by the consumer in connection with the remittance
transfer;
``(ii) the amount of currency that will be sent to the
designated recipient of the remittance transfer, using the
values of the currency into which the funds will be
exchanged;
``(iii) the total remittance transfer cost, identified as
the `Total Cost'; and
``(iv) an itemization of the charges included in clause
(iii), as determined necessary by the Board; and
``(B) at the time at which the consumer makes payment in
connection with the remittance transfer, if any--
``(i) a receipt showing--

``(I) the information described in subparagraph (A);
``(II) the promised date of delivery;
``(III) the name and telephone number or address of the
designated recipient; and

``(ii) a notice containing--

``(I) information about the rights of the consumer under
this section to resolve errors; and
``(II) appropriate contact information for the remittance
transfer provider and its State licensing authority and
Federal or State regulator, as applicable.

``(3) Exemption authority.--The Board may, by rule, and
subject to subsection (d)(3), permit a remittance transfer
provider--
``(A) to satisfy the requirements of paragraph (2)(A)
orally if the transaction is conducted entirely by telephone;
``(B) to satisfy the requirements of paragraph (2)(B) by
mailing the documents required under such paragraph to the
consumer not later than 1 business day after the date on
which the transaction is conducted, if the transaction is
conducted entirely by telephone; and
``(C) to satisfy the requirements of subparagraphs (A) and
(B) of paragraph (2) with 1 written disclosure, but only to
the extent that the information provided in accordance with
paragraph (2)(A) is accurate at the time at which payment is
made in connection with the subject remittance transfer.
``(b) Foreign Language Disclosures.--The disclosures
required under this section shall be made in English and in
the same languages principally used by the remittance
transfer provider, or any of its agents, to advertise,
solicit, or market, either orally or in writing, at that
office, if other than English.
``(c) Remittance Transfer Errors.--
``(1) Error resolution.--
``(A) In general.--If a remittance transfer provider
receives oral or written notice from the consumer within 365
days of the promised date of delivery that an error occurred
with respect to a remittance transfer, including that the
full amount of the funds to be remitted was not made
available to the designated recipient in the foreign country,
the remittance transfer provider shall resolve the error
pursuant to this subsection.
``(B) Remedies.--Not later than 90 days after the date of
receipt of a notice from the consumer pursuant to
subparagraph (A), the remittance transfer provider shall, as
applicable to the error and as designated by the consumer--
``(i) refund to the consumer the total amount of funds
tendered by the consumer in connection with the remittance
transfer which was not properly transmitted;
``(ii) make available to the designated recipient, without
additional cost to the designated recipient or to the
consumer, the amount appropriate to resolve the error;
``(iii) provide such other remedy, as determined
appropriate by rule of the Board for the protection of
consumers; or
``(iv) demonstrate to the consumer that there was no error.
``(2) Rules.--The Board shall establish, by rule, clear and
appropriate standards for remittance transfer providers with
respect to error resolution relating to remittance transfers,
to protect consumers from such errors.
``(d) Applicability of Other Provisions of Law.--
``(1) Applicability of title 18 and title 31 provisions.--A
remittance transfer provider may only provide remittance
transfers if such provider is in compliance with the
requirements of section 5330 of title 31, United States Code,
and section 1960 of title 18, United States Code, as
applicable.
``(2) Applicability of this title.--A remittance transfer
that is not an electronic fund transfer, as defined in
section 903, shall not be subject to any of sections 905
through 913. A remittance transfer that is an electronic fund
transfer, as defined in section 903, shall be subject to all
provisions of this title that are otherwise applicable to
electronic fund transfers under this title.
``(3) Rule of construction.--Nothing in this section shall
be construed--
``(A) to affect the application to any transaction, to any
remittance provider, or to any other person of any of the
provisions of subchapter II of chapter 53 of title 31, United
States Code, section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b), or chapter 2 of title I of Public Law 91-
508 (12 U.S.C. 1951-1959), or any regulations promulgated
thereunder; or
``(B) to cause any fund transfer that would not otherwise
be treated as such under paragraph (2) to be treated as an
electronic fund transfer, or as otherwise subject to this
title, for the purposes of any of the provisions referred to
in subparagraph (A) or any regulations promulgated
thereunder.
``(e) Publication of Exchange Rates.--The Secretary of the
Treasury shall make available to the public in electronic
form, not later than noon on each business day, the dollar
exchange rate for all foreign currencies, using any
methodology that the Secretary determines appropriate, which
may include the methodology used pursuant to section 613(b)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2363(b)).
``(f) Agents and Subsidiaries.--A remittance transfer
provider shall be liable for any violation of this section by
any agent or subsidiary of that remittance transfer provider.
``(g) Definitions.--As used in this section--
``(1) the term `exchange rate fee' means the difference
between the total dollar amount transferred, valued at the
exchange rate offered by the remittance transfer provider,
and the total dollar amount transferred, valued at the
exchange rate posted by the Secretary of the Treasury in
accordance with subsection (e) on the business day prior to
the initiation of the subject remittance transfer;
``(2) the term `remittance transfer' means the electronic
(as defined in section 106(2) of the Electronic Signatures in
Global and National Commerce Act (15 U.S.C. 7006(2)))

[[Page S224]]

transfer of funds at the request of a consumer located in any
State to a person in another country that is initiated by a
remittance transfer provider, whether or not the consumer is
an account holder of the remittance transfer provider or
whether or not the remittance transfer is also an electronic
fund transfer, as defined in section 903;
``(3) the term `remittance transfer provider' means any
person or financial institution that provides remittance
transfers on behalf of consumers in the normal course of its
business, whether or not the consumer is an account holder of
that person or financial institution;
``(4) the term `State' means any of the several States, the
Commonwealth of Puerto Rico, the District of Columbia, and
any territory or possession of the United States; and
``(5) the term `total remittance transfer cost' means the
total cost of a remittance transfer expressed in dollars,
including all fees charged by the remittance transfer
provider, including the exchange rate fee.''.
(b) Effect on State Laws.--Section 919 of the Electronic
Fund Transfer Act (12 U.S.C. 1693q) is amended--
(1) in the first sentence, by inserting ``or remittance
transfers (as defined in section 918)'' after ``transfers'';
and
(2) in the fourth sentence, by inserting ``, or remittance
transfer providers (as defined in section 918), in the case
of remittance transfers,'' after ``financial institutions''.

SEC. 3. FEDERAL CREDIT UNION ACT AMENDMENT.

Paragraph (12) of section 107 of the Federal Credit Union
Act (12 U.S.C. 1757(12)) is amended to read as follows:
``(12) in accordance with regulations prescribed by the
Board--
``(A) to provide remittance transfers, as defined in
section 918(h) of the Electronic Fund Transfer Act, to
persons in the field of membership; and
``(B) to cash checks and money orders for persons in the
field of membership for a fee;''.

SEC. 4. AUTOMATED CLEARINGHOUSE SYSTEM.

(a) Expansion of System.--The Board of Governors of the
Federal Reserve System shall work with the Federal reserve
banks to expand the use of the automated clearinghouse system
for remittance transfers to foreign countries, with a focus
on countries that receive significant remittance transfers
from the United States, based on--
(1) the number, volume, and sizes of such transfers;
(2) the significance of the volume of such transfers,
relative to the external financial flows of the receiving
country; and
(3) the feasibility of such an expansion.
(b) Report to Congress.--Not later than 180 days after the
date of enactment of this Act, and on April 30 biannually
thereafter, the Board of Governors of the Federal Reserve
System shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on the
status of the automated clearinghouse system and its progress
in complying with the requirements of this section.

SEC. 5. EXPANSION OF FINANCIAL INSTITUTION PROVISION OF
REMITTANCE TRANSFERS.

(a) Provision of Guidelines to Institutions.--Each of the
Federal banking agencies (as defined in section 3 of the
Federal Deposit Insurance Act) and the National Credit Union
Administration shall provide guidelines to financial
institutions under the jurisdiction of the agency regarding
the offering of low-cost remittance transfers and no-cost or
low-cost basic consumer accounts, as well as agency services
to remittance transfer providers.
(b) Content of Guidelines.--Guidelines provided to
financial institutions under this section shall include--
(1) information as to the methods of providing remittance
transfer services;
(2) the potential economic opportunities in providing low-
cost remittance transfers; and
(3) the potential value to financial institutions of
broadening their financial bases to include persons that use
remittance transfers.
(c) Assistance to Financial Literacy Commission.--The
Secretary of the Treasury and each agency referred to in
subsection (a) shall, as part of their duties as members of
the Financial Literacy and Education Commission, assist that
Commission in improving the financial literacy and education
of consumers who send remittances.

SEC. 6. STUDY AND REPORT ON REMITTANCES.

(a) Study.--The Comptroller General of the United States
shall conduct a study and analysis of the remittance transfer
system, including an analysis of its impact on consumers.
(b) Areas of Consideration.--The study conducted under this
section shall include, to the extent that information is
available--
(1) an estimate of the total amount, in dollars,
transmitted from individuals in the United States to other
countries, including per country data, historical data, and
any available projections concerning future remittance
levels;
(2) a comparison of the amount of remittance funds, in
total and per country, to the amount of foreign trade,
bilateral assistance, and multi-development bank programs
involving each of the subject countries;
(3) an analysis of the methods used to remit the funds,
with estimates of the amounts remitted through each method
and descriptive statistics for each method, such as market
share, median transaction size, and cost per transaction,
including through--
(A) depository institutions;
(B) postal money orders and other money orders;
(C) automatic teller machines;
(D) wire transfer services; and
(E) personal delivery services;
(4) an analysis of advantages and disadvantages of each
remitting method listed in subparagraphs (A) through (E) of
paragraph (3);
(5) an analysis of the types and specificity of disclosures
made by various types of remittance transaction providers to
consumers who send remittances; and
(6) if reliable data are unavailable, recommendations
concerning options for Congress to consider to improve the
state of information on remittances from the United States.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General shall
submit a report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives on the results of
the study conducted under this section.
______

By Ms. CANTWELL (for herself, Mr. Bingaman, Mrs. Feinstein, Mrs.
Murray, and Mr. Feingold):
S. 33. A bill to prohibit energy market manipulation; to the
Committee on Energy and Natural Resources.
Ms. CANTWELL. Mr. President, today I am introducing the Electricity
Needs Rules and Oversight Now, or ENRON, Act.
This legislation does two simple--yet critical--things. The ENRON Act
would amend the Federal Power Act to put in place a broad prohibition
on all manipulative practices in electricity markets--rather than just
round-trip trading, as included in last year's comprehensive energy
bill; and it would specify that electricity rates resulting from
manipulative practices are not just and reasonable under the Federal
Power Act.
Many of my colleagues are, by now, familiar with the provisions of
this legislation, as I have often described the circumstances that led
me to propose it. While the Senate has been considering comprehensive
energy legislation over the past few years, various investigations have
unearthed Enron's ``smoking gun'' memos--detailing the company's
schemes to drive up electricity prices--and other evidence leading the
Federal Energy Regulatory Commission (FERC) to conclude that market
manipulation was ``epidemic'' in western markets during 2000-2001.
Recently, even more information--including audio files detailing Enron
traders' conversations--has come to light. Meanwhile, the energy crisis
continues to take a serious toll on American consumers and businesses:
it's been estimated that, as a result, the West has lost $35 billion in
domestic economic product--in other words, a 1.5 percent decline in
productivity and a total loss of 589,000 jobs. Adding insult to injury,
Enron has now sued a number of utilities throughout the country--for
almost a $1 billion--attempting to collect penalty charges on inflated
contracts, cancelled when the company went bankrupt. In essence, Enron
is asking the same consumers it gouged to pay yet again.
As I have discussed on the Senate floor many times, the Western
market meltdown of 2000-2001 has had a profound impact on my state's
economy, the pocketbooks and economic well-being of my constituents--
too many of whom have had to make the choice between keeping their heat
and lights on and buying food, paying rent, and purchasing prescription
drugs. In some parts of Washington state, utility disconnection rates
have risen more than 40 percent. People just can't pay their utility
bills.
As my colleagues can imagine, what we have seen and heard since the
height of the crisis--as we have learned about the market manipulation
and fraud that took place in the Western market, while Enron energy
traders laughed about the plight of ``Grandma Millie''--has added
tremendous insult to substantial economic injury. Moreover, the Western
crisis has brought to the forefront a number of very important policy
questions about the kind of behavior that will be tolerated in our
Nation's electricity markets, as the Federal Energy Regulatory
Commission has continued to pursue its ``restructuring'' agenda.
I believe we need strong leadership that will condemn the types of
schemes

[[Page S225]]

used by Enron traders--manipulation tactics with infamous nicknames
like Get Shorty, Death Star and Ricochet. We need to send a strong and
unanimous message that these practices will not be tolerated in our
nation's electricity markets. Next, we need to agree--as a matter of
policy--that the victims of these schemes should not have to pay the
inflated power prices resulting from market manipulation. The ENRON Act
will make these commonsense principles the law of the land.
I would like to thank the original cosponsors of this legislation,
the Senator from New Mexico, Mr. Bingaman, the Senator from California,
Mrs. Feinstein, the senior Senator from Washington, Mrs. Murray, and
the junior Senator from Wisconsin, Mr. Feingold, for joining me today.
It is our hope that the Senate will move toward swift passage of the
ENRON Act.
Mr. President, I ask unanimous consent that a copy of the legislation
be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 33

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Electricity Needs Rules and
Oversight Now (ENRON) Act''.

SEC. 2. PROHIBITION OF ENERGY MARKET MANIPULATION.

(a) Prohibition.--Part II of the Federal Power Act (16
U.S.C. 824 et seq.) is amended by adding at the end the
following:

``SEC. 215. PROHIBITION OF MARKET MANIPULATION.

``It shall be unlawful for any person, directly or
indirectly, to use or employ, in connection with the purchase
or sale of electric energy or the purchase or sale of
transmission services subject to the jurisdiction of the
Commission, any manipulative or deceptive device or
contrivance in contravention of such regulations as the
Commission may promulgate as appropriate in the public
interest or for the protection of electric ratepayers.''.
(b) Rates Resulting From Market Manipulation.--Section
205(a) of the Federal Power Act (16 U.S.C. 824d(a)) is
amended by inserting after ``not just and reasonable'' the
following: ``or that result from a manipulative or deceptive
device or contrivance''.

Mr. President, I am proud to cosponsor the Energy Needs Regulatory
Oversight Now or ENRON Act of 2005, S. 33, introduced today by Senator
Cantwell. Last summer the release of audiotapes of Enron traders
gloating about their ability to manipulate energy markets shocked the
Nation. As more tapes surface and energy prices continue to rise, the
need for the Senate to pass the ENRON Act has never been more clear.
A public utility near Seattle, which is trying to get back the money
it lost to Enron's unscrupulous energy trading practices, received the
tapes from the Justice Department. These tapes confirm what we all
suspected: Enron manipulated energy markets and gouged consumers.
According to these tapes, Enron traders celebrated when a forest fire
shut down a major transmission line into California in 2000. This
shutdown cut power supplies and raised energy prices. An energy trader
sang: ``Burn, baby, burn. That's a beautiful thing.'' These taped
conversations also provide evidence that Enron made secret pacts with
power producers, and Enron traders deliberately drove up prices by
ordering power plants to shut down. The traders also brag about their
ability to manipulate markets and steal money from the ``grandmothers
of California,'' who one trader called ``Grandma Millie.'' The
arrogance of these traders shocks the conscience. It also demonstrates
the need for Congress to protect consumers from energy market
manipulation. We cannot let the market abuses that took place during
the Western energy crisis of 2000 happen again.
S. 2105 requires the Federal Energy Regulatory Commission to prohibit
the use of manipulative practices like these that put at risk consumers
and the reliability of the transmission grid. We learned from this
crisis that electricity markets need close government oversight to
ensure that companies do not engage in risky and deceptive trading
schemes leading to soaring energy prices and their own possible
financial failure. In both cases, consumers--the people who depend upon
the electricity these companies generate or trade--are the losers.
The Senate recently went on record in support of barring abusive
energy market practices when it approved an amendment to the fiscal
year 2004 agricultural appropriations bill offered by Senator Cantwell.
I am disappointed this language was stripped from the omnibus spending
bill. These necessary protections were also omitted from the final
energy conference report and the revised energy bill we voted on in
April 2004.
We need to send a clear message to the energy industry that this
behavior will not be tolerated, and we must show consumers that we will
protect them from energy market manipulation. I encourage my fellow
colleagues to pass this legislation.
______

By Mr. LIEBERMAN:
S. 34. A bill to provide for the development of a global tsunami
detection and warning system, to improve existing communication of
tsunami warnings to all potentially affected nations, and for other
purposes; to the Committee on Commerce, Science, and Transportation.
Mr. LIEBERMAN. Mr. President, I rise today to introduce legislation
that would close the gaps in our present tsunami warning system and
establish a global network that will give all the world's coastal
communities a chance to evacuate--much like the hurricane and typhoon
warning system works today across international boundaries.
Although the probability is slim, the United States, like all coastal
nations, is vulnerable to tsunamis. The threat to the Pacific is
greatest because of its relatively extensive seismic activity. But
while the threat is less in the Atlantic, it also does exist. Tsunamis
early in the last century struck coastal Newfoundland and regions of
the Caribbean including Puerto Rico, and the U.S. Virgin Islands.
As events last month in the Indian Ocean have shown, a large tsunami
can be catastrophic when it catches a coastal population unwarned and
unprepared. Existing technology, however, can detect tsunamis and with
the right forecasting models, be used to predict potential landfall of
a tsunami and provide the warning needed for those in the path of the
destructive waves.
The United States has been a leader in developing instrumentation for
detecting tsunamis and developing forecasting models used for
predicting tsunami landfall. Such technology is used in two existing
tsunami warning centers, one in Alaska and one in Hawaii. The recent
tsunami in South Asia has alerted the world to the dangers of these
destructive waves, and has caused many of us to seek ways that the
United States can help the world avoid such tragic loss again.
The legislation I am introducing today builds on the existing United
States model. It authorizes funding that will enable us to expand our
existing capabilities, completes our network of seismic and tsunami
sensors, and directs us to work in partnership with other nations as
needed to build additional centers and the necessary network for
disseminating warnings to the appropriate local officials. Similar
efforts are being put forth by Senators Stevens and Inouye as leaders
of the Commerce Committee, and by the Administration. I look forward to
working with them to enact legislation which, at relatively low cost,
will allow us to partner with other nations and complete a global
detection and warning system. This will help ensure that the kind of
tragedy that befell the nations of the Indian Ocean region never
happens again.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 34

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION. 1. SHORT TITLE.

This Act may be cited as the ``Global Tsunami Detection and
Warning System Act of 2005''.

SEC. 2. DEVELOPMENT AND DEPLOYMENT OF TSUNAMI SENSORS.

(a) Responsibilities of Secretary of Commerce.--The
Secretary of Commerce shall--
(1) identify deficiencies in the existing system of
worldwide seismic stations that can

[[Page S226]]

identify in real or near real time potentially tsunamigenic
earthquakes in any location in the Pacific, Atlantic, or
Indian Oceans and associated seas;
(2) work with the Secretary of State to enlist
international cooperation in deploying seismic sensors to
eliminate such deficiencies;
(3) work with the Secretary of the Interior, through the
Director of the United States Geological Survey to identify
and implement any additions or improvements to the United
States' maintained network of seismic stations that are
necessary to improve real time or near real time signal
acquisition and processing capability for detection of
potentially tsunamigenic seismic events.
(4) identify tsunami sensors, such as those developed by
the National Oceanic and Atmospheric Administration and
deployed under its Deep Ocean Assessment and Report of
Tsunamis Project, or other appropriate ocean-based sensors,
that can be deployed to detect potential tsunamis generated
by any type of disturbance, including earthquake, underwater
landslide, above water landslide, eruption of an explosive
volcano, and meteor impact;
(5) identify the number and location of such sensors that
must be deployed throughout the Atlantic, Indian, and Pacific
Oceans, and associated seas, and any other bodies of water of
concern, to provide a system offering complete global
coverage for detection of a tsunami, taking into
consideration and coordinating with any regional systems in
place or under development through other nations in the
affected regions;
(6) procure and deploy such sensors;
(7) establish the measurement system, forecast system, and
communication system and infrastructure needed to receive and
process the signals generated by such tsunami sensors, by
building on existing infrastructure at existing Centers of
the National Oceanic and Atmospheric Administration, such as
the Pacific Tsunami Warning Center and West Coast and Alaska
Tsunami Center; and
(8) disseminate tsunami forecasts and warnings as necessary
to all potentially affected nations.
(b) Report to Congress.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of Commerce
shall submit to Congress a report on the progress made in
carrying out the requirements of subsection (a).

SEC. 3. INTERNATIONAL CONFERENCE ON GLOBAL TSUNAMI DETECTION
AND WARNING.

(a) Sense of Congress on Convening Conference.--It is the
sense of Congress that the President, in consultation with
the leaders of nations described in section 4(a)(1), should
undertake to convene, within 180 days after the date of the
enactment of this Act, an international conference on global
tsunami detection and warning for the purposes of--
(1) supporting the common objective of such nations of
preventing or reducing the toll of human loss from future
tsunami-related natural disasters in the Pacific, Indian, and
Atlantic Oceans and associated seas; and
(2) seeking international agreement on the most effective
means for deploying and funding a global tsunami detection
and warning system.
(b) Sense of Congress on Alternative Action.--It is further
the sense of Congress that a conference described in
subsection (a) would not be necessary if, as determined by
the President after consultation with the Secretary of State
and the Secretary of Commerce, satisfactory international
agreement as described in paragraph (2) of that subsection
has been reached within 90 days after the date of the
enactment of this Act.

SEC. 4. NETWORK OF NATIONS POTENTIALLY AFFECTED BY TSUNAMIS.

(a) Requirement for Strategy.--The Secretary of State, in
consultation with the Secretary of Commerce, shall prepare
and implement a comprehensive strategy to achieve the
following objectives:
(1) Identify all coastal nations that have the potential to
be adversely affected by tsunamis, particularly the nations
that border the Pacific, Indian, and Atlantic Oceans, and
associated seas.
(2) Identify appropriate organizations, agencies, and
contacts within the governments of those nations for
disseminating tsunami warnings by working with--
(A) the United Nations Educational, Scientific, and
Cultural Organization; and
(B) other appropriate organizations.
(3) Develop, with cooperating nations and their agencies
and organizations, a structure for a Global Tsunami Warning
System that has an appropriate number of regional operational
headquarters.
(4) Identify, with cooperating nations and their agencies
and organizations, and establish an appropriate chain of
command structure to ensure that warnings of potential or
approaching tsunamis are directed to the appropriate contacts
in potentially affected countries in a timely manner through
the Global Tsunami Warning System network.
(5) Implement, with cooperating nations and their agencies
and organizations, a tsunami forecasting system that includes
tsunami early detection and monitoring instrumentation
integrated with modeling technology essential to producing
real-time tsunami forecasts.
(6) Utilize the forecasts developed under the tsunami
forecasting system to form appropriate warnings, and rapidly
disseminate such warnings to potentially affected nations.
(7) Develop an appropriate warning communications system
involving telephone, Internet, radio, fax, and other
appropriate means to convey warnings as rapidly as possible
to all potentially affected nations.
(8) Work in partnership with the nations identified as
described in paragraph (1), as needed, to develop, establish,
and maintain appropriate educational and response planning
partnerships to ensure that tsunami warnings are properly
interpreted by officials in other nations and that coastal
communities respond appropriately to tsunami warnings.
(9) Seek funding assistance from participating nations to
fund the sensor systems identified under section 4 and the
ongoing operation and maintenance of such systems.
(b) Report to Congress.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of State
shall submit to Congress a report on the strategy required
under subsection (a). The report shall include the following:
(1) The strategy.
(2) The progress made on implementing the strategy.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated to carry out
this Act as follows:
(1) For fiscal year 2005, $30,000,000.
(2) For each of fiscal years 2006 through 2014, $7,500,000.
______

By Mr. CONRAD:
S. 35. A bill to amend the Internal Revenue Code of 1986 to extend
the credit for production of electricity from wind; to the Committee on
Finance.
Mr. CONRAD. Mr. President, I rise today to introduce the Wind Energy
Production Tax Credit Extension Act. This legislation is very important
for the expansion and competitiveness of the wind energy sector in
North Dakota and the rest of the country.
There should be no doubt that the wind energy production tax credit,
PTC, is vital for the continued growth of the wind energy sector. The
PTC was enacted in 1992. Delays in renewing the PTC have caused a boom-
and-bust cycle in the development of new wind projects. These delays of
the credit inhibit the development of a favorable and secure investment
climate for wind projects and are also economically damaging as
companies involved in wind energy lay off workers or put off hiring
until the credit is extended. Given the long lead time required to
develop new wind projects, short-term extensions of the credit do not
give companies enough certainty to expand wind energy production. We
need a long-term extension to provide that certainty.
Wind energy is an important component of our Nation's energy
portfolio. Wind is a clean source of energy that fosters economic
development in rural communities. Combined with other domestic sources
of energy, the use of wind energy helps reduce our dependence on
foreign sources of energy. In addition, advanced wind energy technology
could one day be an important component of a hydrogen-based economy. In
order to ensure that wind power remains competitive with other fuels,
passage of a longer-term wind PTC is necessary.
In my home State, a long-term extension of the wind PTC is especially
important. North Dakota is ranked number one in wind energy potential.
As in other parts of the country, reliance on Congress to re-extend the
wind PTC prevents companies tied to wind energy from adding workers and
negotiating long-term contracts. In general terms, this uncertainty
inflicts economic costs on communities and certain manufacturers. For
North Dakota, a long-term wind PTC extension is vital to continue the
development of wind energy resources that are second to none.
The bill I am introducing today will extend the wind energy PTC,
indexed to inflation, for five years. I believe that Congress has the
responsibility to ensure that the wind energy sector in this country
grows at its full potential. In my view, wind is a crucial part of our
country's energy portfolio and energy security. This bill will help the
wind energy industry grow and remain competitive with other types of
energy. I urge my colleagues to support this legislation.
______

By Mr. INOUYE:
S. 36. A bill to amend title 10, United States Code, to recognize the
United States Military Cancer Institute as an establishment within the
Uniformed

[[Page S227]]

Services University of the Health Sciences, to require the Institute to
promote the health of members of the Armed Forces and their dependents
by enhancing cancer research and treatment, to provide for a study of
the epidemiological causes of cancer among various ethnic groups for
cancer prevention and early detection efforts, and for other purposes;
to the Committee on Armed Services.
Mr. INOUYE. Mr. President, today I introduce the United States
Military Cancer Institute Research Collaborative Act. This legislation
would formally establish the United States Military Cancer Institute
(USMCI), and support the collaborative augmentation of research efforts
in cancer epidemiology, prevention and control. Although the USMCI
already exists as an informal collaborative effort, this bill will
formally establish the institution with a mission of providing for the
maintenance of health in the military by enhancing cancer research and
treatment, and studying the epidemiological causes of cancer among
various ethnic groups. By formally establishing the USMCI, it will be
in a better position to unite military research efforts with other
cancer research centers.
Cancer prevention, early detection, and treatment are significant
issues for the military population, thus the USMCI was organized to
coordinate the existing military cancer assets. The USMCI has a
comprehensive database of its beneficiary population of 9 million
people. The military's nationwide tumor registry, the Automated Central
Tumor Registry, has acquired more than 180,000 cases in the last 14
years, and a serum repository of 30 million specimens from military
personnel collected sequentially since 1987. This population is
predominantly Caucasian, African-American, and Hispanic.
The Director of the USMCI, Dr. John Potter, is a Professor of Surgery
at the Uniformed Services University of the Health Sciences (USUHS). A
highly talented cancer epidemiologist, Dr. Kangmin Zhu, has also been
recruited to lead the USMCI Prevention and Control Programs.
The USMCI currently resides in the Washington, D.C., area, and its
components are located at the National Naval Medical Center, the
Malcolm Grow Medical Center, the Armed Forces Institute of Pathology,
and the Armed Forces Radiobiology Research Institute. There are more
than 70 research workers, both active duty and Department of Defense
civilian scientists, working in the USMCI.
The USMCI intends to expand its research activities to military
medical centers across the Nation. Special emphasis will be placed on
the study of genetic and environmental factors in carcinogenesis among
the entire population, including Asian, Caucasian, African-American and
Hispanic subpopulations.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 36

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. THE UNITED STATES MILITARY CANCER INSTITUTE.

(a) Establishment.--Chapter 104 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2117. United States Military Cancer Institute

``(a) Establishment.--(1) There is a United States Military
Cancer Institute in the University. The Director of the
United States Military Cancer Institute is the head of the
Institute.
``(2) The Institute is composed of clinical and basic
scientists in the Department of Defense who have an expertise
in research, patient care, and education relating to oncology
and who meet applicable criteria for participation in the
Institute.
``(3) The components of the Institute include military
treatment and research facilities that meet applicable
criteria and are designated as affiliates of the Institute.
``(b) Research.--(1) The Director of the United States
Military Cancer Institute shall carry out research studies on
the following:
``(A) The epidemiological features of cancer, including
assessments of the carcinogenic effect of genetic and
environmental factors, and of disparities in health, inherent
or common among populations of various ethnic origins.
``(B) The prevention and early detection of cancer.
``(C) Basic, translational, and clinical investigation
matters relating to the matters described in subparagraphs
(A) and (B).
``(2) The research studies under paragraph (1) shall
include complementary research on oncologic nursing.
``(c) Collaborative Research.--The Director of the United
States Military Cancer Institute shall carry out the research
studies under subsection (b) in collaboration with other
cancer research organizations and entities selected by the
Institute for purposes of the research studies.
``(d) Annual Report.--(1) Promptly after the end of each
fiscal year, the Director of the United States Military
Cancer Institute shall submit to the President of the
University a report on the results of the research studies
carried out under subsection (b).
``(2) Not later than 60 days after receiving the annual
report under paragraph (1), the President of the University
shall transmit such report to the Secretary of Defense and to
Congress.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2117. United States Military Cancer Institute.''.
______

By Mrs. FEINSTEIN (for herself and Mrs. Hutchison):
S. 37. A bill to extend the special postage stamp for breast cancer
research for 2 years; to the Committee on Homeland Security and
Governmental Affairs.
Mrs. FEINSTEIN. Mr. President, on behalf of Senator Hutchison and
myself, I rise today to introduce legislation to reauthorize the
tremendously successful Breast Cancer Research Stamp for 2 additional
years.
Without Congressional action, the Breast Cancer Research Stamp will
expire on December 31 of this year.
The life of this extraordinary stamp deserves to be extended as it
has proven to be a highly effective and self-supporting fundraiser.
Since 1998, the American people have bought over 588 million breast
cancer stamps--raising $42.66 million for breast cancer research.
The National Cancer Institute and the Department of Defense have put
these research dollars to good use by funding novel and innovative
research in the area of breast cancer.
Over a 7 year period, the Breast Cancer Stamp has demonstrated a very
sustained and committed customer base.
Millions of Americans have bought the stamps to honor loved ones with
the disease, to highlight their own personal battle with breast cancer
or to promote general public awareness--in hope of helping to find a
cure.
One cannot calculate in dollars and cents how the stamp has focused
public awareness on this devastating disease and the need for
additional research funding.
There is still so much more to do because this disease has far
reaching effects on our Nation:
Breast cancer is the most commonly diagnosed cancer among women in
the United States, ranking second among cancer deaths in women after
lung cancer.
In 2005, approximately 211,240 women in the U.S. will get breast
cancer.
About 40,410 women will die from the disease this year.
There are over two million women living today in the U.S. who have
been treated for breast cancer.
Though much less common, about 1,300 men in America are diagnosed
with breast cancer each year.
It is imperative that we extend the life of this stamp so that we can
continue to reach out to American women and men who do not know of
their cancer and to those who are living with it.
This legislation would extend the authorization of the Breast Cancer
Research stamp for two additional years until December 31, 2007.
The stamp would continue to have a surcharge of up to 25 percent
above the value of a first-class stamp with the surplus revenues going
to breast cancer research.
Extending the Breast Cancer Research stamp does not affect any other
semi-postal proposals under consideration by the Postal Service.
We urge our colleagues to join us in passing this important
legislation to extend the Breast Cancer Research Stamp for another 2
years.
Thanks to breakthroughs in cancer research, more and more people are
becoming cancer survivors rather than cancer victims. Every dollar we
continue to raise will help save lives.
I ask unanimous consent that the text of the legislation be printed
in the Record.

[[Page S228]]

There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 37

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. 2-YEAR EXTENSION OF POSTAGE STAMP FOR BREAST
CANCER RESEARCH.

Section 414(h) of title 39, United States Code, is amended
by striking ``2005'' and inserting ``2007''.
______

By Mr. NELSON of Nebraska (for himself, Mr. Domenici, and Mr.
Craig):
S. 41. A bill to amend the Safe Drinking Water Act to exempt
nonprofit small public water systems from certain drinking water
standards relating to naturally occurring contaminants; to the
Committee on Environment and Public Works.
Mr. NELSON of Nebraska. Mr. President, today I am offering
legislation with Senator Pete Domenici and Senator Larry Craig to allow
small rural communities more time to meet an onerous and financially
burdensome water quality regulation that is being imposed on local
governments by the Environmental Protection Agency. The bipartisan
Rural Community Arsenic Relief Act (RCARA) will amend the Safe Drinking
Water Act to exempt small rural communities with population of up to
ten thousand from the EPA's strict requirement to limit arsenic in
drinking water to 10 parts per billion by January 1, 2006. Currently
the allowable level of arsenic in drinking water is 50 ppb.
As a former governor who fought against unfunded Federal mandates
from Washington, I understand the impact a policy such as this can have
on local budgets.
Small rural communities simply don't have the resources and tax base
to meet the arsenic standard arbitrarily set by the EPA. This unfunded
mandate is a strain on local government budgets and will drive up local
taxes. It is not right to ask the elected officials of our small
communities to spend their limited funds on risks that we are learning
are not as dangerous as they have been portrayed. This legislation will
allow local governments more time to plan for and absorb the costs of
meeting the EPA's standards for arsenic.
With each passing day it is increasingly evident that small
communities will not be able to count on any immediate federal
assistance in converting their water systems to meet the new arsenic
standard. This bipartisan bill represents one means of giving more time
to these communities, most of which have lived with arsenic--a widely
distributed naturally occurring element--for ages.
Rural communities across America are grasping for solutions to comply
with the new arsenic standard. Many reach the same conclusion--it is
just too expensive. RCARA acknowledges that this is happening,
recognizes that a one-size-fits-all solution doesn't work, and provides
a framework to protect public health, while at the same time giving
communities the flexibility they need to comply.
State officials in Nebraska estimate it could cost communities $120
million--$176 million to comply with the standard. Many communities,
fearing that this regulation could bankrupt them, are considering
dramatically raising rates for drinking water to cover the cost of new
treatment and equipment. Extending the deadline is crucial for
taxpayers and ratepayers throughout the country.
This bill allows small communities to adopt a locally supported
public health policy as an alternative to the one prescribed by EPA. In
many communities, the rule can reasonably be expected to more than
double water rates on low-income families without improving the quality
of their water in any appreciative manner. Our bill provides a
reasonable amount of time for our small communities to understand and
implement EPA's requirements, without bankrupting the system. It is the
least we should do.
Mr. CRAIG. Mr. President, I rise to address an issue that has begun
to emerge and gain our attention in rural America. This issue is an
important one because it has the potential to devastate, economically,
small cities and towns across the inter-mountain west--like in my
State, of Idaho.
The new Environmental Protection Agency drinking water standard of 10
parts per billion for arsenic is something the current Administration
inherited from the prior Administration and is now trying to implement.
I would remind my colleagues, however, that the new lowered arsenic
standard was not universally supported in Congress when it was
proposed.
There were Senators--not many, but I was certainly one of them--that
knew that the cost of complying with the new arsenic standard was going
to cripple economically--was going to break the back financially--of
rural communities and small towns across the western United States.
I fought this new standard on the floor of the Senate. I knew the
costs were crippling and the health benefit was bogus. I also knew that
the science to support the lower standard is being exposed as based on
examples and sample populations that were very, very flawed. The
science is now revealing that extrapolating from those sample
communities to the whole of the United States was a very, very flawed
basis for the drinking water standard.
I fought this new standard, but I did not succeed.
There are communities now in Idaho that will not be able to come into
compliance with this new standard by the time it takes effect. Some of
these Idaho communities have estimated that it would take double or
triple their entire city budget, just to try to come into compliance--
and that would mean that no other city services could be paid for.
That kind of situation is clearly ridiculous, and I will fight as
long and as hard as I can to find solutions to this problem.
Last year, I raised this issue with then-EPA Administrator Mike
Leavitt. Mike Leavitt is a Westerner--his folks in Utah are having some
of the same problems.
I discussed the issue with him. I will raise it with any successor of
his who is nominated to head the EPA. I will keep raising this issue
and looking for solutions. The problem is that EPA bureaucrats--who are
so good at being bureaucrats--think they know Idaho better than
Idahoans do. Some of our Idaho communities have requested of EPA Region
10 that EPA exercise some flexibility with this standard. This is
flexibility that EPA has already incorporated into its final agency
rule on the arsenic standard.
Unfortunately, EPA bureaucrats are doing what they are good at. They
are saying no to flexibility and hey, by the way, Castleford, Idaho or
New Plymouth, Idaho--this won't disadvantage you economically as much
as you say. That is what EPA says to the communities of Idaho. We know
better than you.
Seeing that EPA cannot be reasonable, I have worked with my
colleagues Senator Nelson of Nebraska and Senator Domenici of New
Mexico. Both of their States have similar problems. The product of our
collaboration is a bill that we introduced last year and are re-
introducing today. The name of this bill is the Rural Community Arsenic
Relief Act. While it may not provide all the relief that I would like
to see, and it does not repeal the new arsenic standard--as I believe
is merited by the science--this bill is a good compromise and a good
start.
With this bill, we are trying to force States--and in Idaho's case,
the EPA since Idaho is what they call a ``non-primacy state''--to
approve requests from communities to delay their compliance with the
new arsenic standard.
The bill is straightforward, it is vital, and it is needed. It will
save some of these communities from bankruptcy or from discontinuing
essential community services. Many other States--other than Idaho,
Nebraska, and New Mexico--face this same crisis. I implore my
colleagues to learn about what their small communities are facing, and
to join with us in enacting this essential regulatory relief.
______

By Mr. ALLEN (for himself, Mr. Nelson of Florida, Mr. DeWine, Mr.
Nelson of Nebraska, Mrs. Dole, Ms. Murkowski, and Mr. Vitter).
S. 42. A bill to amend title 10, United States Code, to increase the
death gratuity payable with respect to deceased members of the Armed
Forces, and for other purposes; to the Committee on Armed Services.

[[Page S229]]

Mr. ALLEN. Mr. President, I rise to bring to my colleagues' attention
a bill I introduced today called the Honoring the Fallen Soldiers and
Families Act of 2005, sharing the same views of Senator Sessions of
Alabama, who has worked on this legislation, as well as many of us over
the years, including my partner, Senator Warner. This measure is
originally cosponsored by Senators Bill Nelson, Mike DeWine, Ben
Nelson, Elizabeth Dole, Lisa Murkowski, and David Vitter.
Mr. President, as Americans, I believe we need to do everything we
can to make sure our men and women in uniform are provided with the
most technologically advanced armaments and equipment for their safety
and their security when they are protecting our liberty. We also need
to take care of the families of the soldiers who lose their lives,
those who are killed in action and on duty. We need to care more about
their surviving families.
Currently, there are a number of benefits that are provided to family
members who lose a loved one while serving our great Nation. Some of
these benefits include the Servicemen's Group Life Insurance policies,
the Dependency and Indemnity Compensation Program, education benefits,
and Government housing.
However, there is one benefit I have been concerned with during my
tenure in the Senate. This is called the military death gratuity. It is
a tax-exempt cash payment, currently at the amount of $12,000, which
provides immediate financial compensation to families of those service
men and women who have lost their lives serving our great Nation.
During the past 108th Congress, I cosponsored legislation authored by
Senator Susan Collins of Maine to double the death gratuity from $6,000
to $12,000, which at the time was apparently a big deal, since Congress
had sparingly raised the death gratuity since its inception in 1908.
The last increase before then was at the end of the first gulf war in
1991. Even then, half of that benefit was subjected to taxation.
Some of us in Congress understood the need to provide this financial
assistance and were able to get this provision included in a larger
bill, the Military Family Tax Relief Act of 2003. Not only did this
legislation double the death gratuity from $6,000 to $12,000, but it
also made the payments of these moneys tax exempt.
However, that is not enough, $12,000. I still believe this current
amount of $12,000 is a miserly and paltry amount. Indeed, I consider it
insulting. I have been speaking with people from Virginia and all
across America and listening to them. It is confirmed to me how truly
insulting this sum of money is. My sense is that a grateful Nation
wants to better help the widows, widowers, and the children of those
who have given their lives and their futures in defense of our country
and our liberties, whether it was in Afghanistan, Iraq, or elsewhere in
the world.
When I was bringing this issue up, I got an e-mail and many messages
from people across the country. This one is from Mrs. Margaret
Stubenhofer from Springfield, VA, who wrote:

Dear Senator Allen: On December 7, 2004, our son Captain
Mark Stubenhofer (U.S. Army) was killed in action while
serving in Iraq. He was shot by insurgents. Mark, who was
born and raised in Springfield, VA, leaves behind his wife
(Patty, age 30) and 3 small children (Lauren, 5 yrs, Justin,
2\1/2\ yrs, and Hope, 4 months). I am writing to you in
support of the proposed legislation to raise the military
survivor benefits. It is appalling to me that our people, who
also suffered a great tragedy, are receiving millions of
dollars after their loved ones died on 9-11 . . . yet,
dependents of military personnel killed in action while
bravely serving their country in a foreign land receive only
slightly more than $12,000 as a death gratuity and $100,000
in insurance benefits. I am very much in favor of these
benefits being raised to a more reasonable level; and I ask
you to continue to support such action as to make this
possible. In all good conscience, how can we possibly ask
these young men and women to be ready to die for their
country . . . and then leave their survivors with almost
nothing when their worst nightmare actually becomes a
reality?

That is a good question. That is why I am introducing, with a number
of my Senate colleagues who are cosponsoring, the Honoring Our Fallen
Soldiers and Families Act of 2005. I am glad this is getting a lot of
support from both sides of the aisle and leadership.
This legislation will raise the military death gratuity from $12,000
to $100,000 for the families of those service men and women who have
lost their lives serving our great Nation since October 1, 2001. The
reason for October 1, 2001--the retroactivity--is that is when the
military action began in Afghanistan. As I mentioned, there a number of
other benefits that family members whose loved one has died will
receive, but unlike the death gratuity that reaches family members
within 48 hours of the death, the other benefits can take some time--in
fact, months--to make it to the family. That is just too long a period
of time. They will eventually get it, but that short-term, immediate
influx of money helps provide for the monetary stability at a time of
great grief and uncertainty. The money can help pay for a home mortgage
or for rent or gas or utilities bills, car payments, or schooling.
School kids may be in schools where there are expenses. It will also
help put food on the table. As a matter of fact, many of the fallen
soldiers were the sole or significant breadwinner for the families, and
the families are left without any immediate source of income.
It is doubly important for members of the Guard and Reserve.
Approximately a quarter to a third of those who serve in the Guard and
Reserve actually take a pay cut when they are called up or activated to
serve. While it is a source of income that may be less than they were
receiving in the private sector, it is still a significant, substantial
part of that family household's income. So when a soldier loses his or
her life, even if it is a lower amount, the money stops. That is why it
is imperative that we in Congress raise the death gratuity to a level
that will take care of the immediate financial needs of these families.
Some have questioned or critics may argue that raising the death
gratuity to $100,000 is too costly. I contend that if you look at
firefighters and police officers, these great citizens of our
communities who are our warriors at home, saving lives from fires or in
law enforcement actions, they generally get a death gratuity in the
amount of $50,000 to $100,000. In our Commonwealth of Virginia, a
police officer or firefighter who loses his or her life in the line of
duty receives a $75,000 death gratuity. My proposal is to put some
logical symmetry between what our warriors on the homefront--the police
officers and firefighters--get and what our soldiers stationed at home
and abroad get.
In addition, as long as we have an all-volunteer Army, we need to
make sure our soldiers know and their families know they have the best
possible benefits should the unthinkable happen. I believe this
legislation will help put some of those worries at ease. Whatever the
amount may be, I guarantee to each of my colleagues that any family
would rather have their loved one there at holidays and birthdays and
anniversaries than the $100,000, but there is a big financial hole in
their lives. There is also one that cannot be compensated. But it is
one that a grateful Nation would want to provide.
I will close by quoting George Washington, who was one of our
greatest leaders, when he made a very wise and still cogent
observation.
He cautioned that the willingness of future generations to fight for
their country, no matter how just the cause, will be proportional to
how they perceive previous veterans were treated.
It is important that we show a deeper appreciation for those heroic
soldiers who died defending our liberty and also their brave families
back home who have paid the ultimate sacrifice as well. This
legislation is a significant striding step in that direction.
I urge my colleagues in the Senate to quickly act on this legislation
and all others trying to help our families of fallen heroes and their
loved ones and pass these measures as quickly as possible, and also
make them retroactive for all of those nearly 1,500 who have lost their
lives protecting our freedom, advancing liberty throughout the world,
and people who are truly American heroes whom we will always remember.
______

By Mr. HAGEL (for himself, Mr. Coleman, Mr. Kennedy, Mr. DeWine,
and Mr. Obama):
S. 43. A bill to provide certain enhancements to the Montgomery GI
Bill Program for certain individuals who serve as members of the Armed
Forces

[[Page S230]]

after the September 11, 2001, terrorist attacks, and for other
purposes; to the Committee on Armed Services.
Mr. Hagel. Mr. President, I rise today to re-introduce the ``Military
Death Benefit Improvement Act of 2005'' and the ``G.I. Bill Enhancement
Act of 2005.'' These pieces of legislation recognize the service and
sacrifice of the men and women of our armed forces who are proudly and
bravely serving our country around the world. These bills also
recognize the sacrifices borne by the families of our men and women in
uniform.
The ``Military Death Benefit Improvement Act of 2005'' would raise
the military death gratuity paid to the families of military personnel
killed while on active duty from $12,000 to $100,000. This increase
would also be applied retroactively to all service members on active
duty who have died since September 11, 2001.
The military death gratuity is money provided within 72 hours to
families of service members who are killed while on active duty. These
funds assist next-of-kin with their immediate financial needs.
Though nothing can replace the hole left in a family by the loss of a
son, daughter, mother or father, this bill will help alleviate some of
the financial hardships faced by the families of our brave service men
and women who give their lives in service to our country. It will send
a message to our brave young men and women and their families that
their Nation appreciates their service and sacrifice.
As we face the challenges of the 21st Century, service men and women
sacrificing for their country in a time of war should be assured that
their families will be taken care of. The loss of a loved one is a
tremendous emotional hardship for families. Congress must do what it
can to ensure that it does not cause devastating financial hardship as
well.
I also rise today to re-introduce the ``G.I. Bill Enhancement Act of
2005.'' This legislation would waive the Montgomery G.I. Bill program's
$1,200 enrollment fee for active duty members of our Nation's military.
The G.I. Bill Enhancement Act covers any member of the United States
military, including Reserve and National Guard members, serving on
active duty during the period after President Bush's November 2001
Executive Order that placed the military on a wartime footing. This
legislation would: Waive the G.I. Bill enrollment fee until President
Bush's November 2001 Executive Order is rescinded; allow all service
men and women to opt into the G.I. Bill with no penalty or enrollment
fee; and reimburse those service men and women covered by this bill who
have already paid the $1,200 enrollment fee prior to the enactment of
this legislation.
The current Montgomery G.I. Bill is tailored to serve members of our
military in a time of peace. Upon enlistment, recruits are given the
option of enrolling in the G.I. Bill. If they choose to participate,
they are charged a $1,200 enrollment fee which is deducted from their
monthly pay over 12 months. However, we are now in a time of war and
the demands on our service members and their families have been
transformed and increased. To that end, changes must be made to the
G.I. Bill to ensure that it continues to provide realistic and relevant
educational opportunities to those who are defending our country.
This is an issue of fundamental fairness. The men and women serving
our country in wartime should not have to choose between the long-term
benefits of the G.I. Bill and the short-term demands of their paycheck.
The G.I. Bill is one of the great legacies of military service to our
country. Men and women sacrificing for their country in a time of war
need to be assured that access to higher education is in their future.
Congress must do all it can to ensure that education options for our
veterans are accessible and real.
The G.I. Bill has long been recognized as one of the most important
Congressional acts of post World War II America. This legislation
ensured that all who served their Nation would not be penalized as a
result of their time away from their careers and communities in service
to their country. The G.I. Bill helped members of our ``greatest
generation'' upon their return home by providing them with the
educational tools necessary to pursue the opportunities enjoyed by all
Americans.
Over the last 60 years, the Federal Government has invested billions
of dollars in education benefits for our Nation's veterans. Over 21
million men and women have benefitted from the G.I. Bill, resulting in
a workforce that transformed American society. The bill's far-reaching
impact can be seen here today, as Members of this body, including this
Senator, have prospered as a result of the benefits of the G.I. Bill.
Every American should be proud of how we have responded to the
challenges of terrorism following September 11, 2001. We owe much to
the men and women who have fought bravely in Afghanistan and Iraq. The
``Military Death Benefit Improvement Act of 2005'' and the ``G.I. Bill
Enhancement Act of 2005'' recognize these sacrifices. I hope that my
Senate colleagues will give serious consideration to these important
pieces of legislation, and that we will pass these bills and they will
be signed into law by President Bush. I ask unanimous consent that the
text of these two bills be printed in the Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:

S. 43

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Montgomery GI Bill
Enhancement Act of 2005''.

SEC. 2. EXEMPTION FROM PAYMENT OF INDIVIDUAL CONTRIBUTIONS
UNDER MONTGOMERY GI BILL OF INDIVIDUALS WHO
SERVE AS ACTIVE DUTY MEMBERS OF THE ARMED
FORCES UNDER EXECUTIVE ORDER 13235.

(a) Active Duty Program.--Notwithstanding section 3011(b)
of title 38, United States Code, no reduction in basic pay
otherwise required by such section shall be made in the case
of a covered member of the Armed Forces.
(b) Selected Reserve Program.--Notwithstanding section
3012(c) of such title, no reduction in basic pay otherwise
required by such section shall be made in the case of a
covered member of the Armed Forces.
(c) Termination of On-Going Reductions in Basic Pay.--In
the case of a covered member of the Armed Forces who first
became a member of the Armed Forces or first entered on
active duty as a member of the Armed Forces before the date
of the enactment of this Act and whose basic pay would, but
for subsection (a) or (b) of this section, be subject to
reduction under section 3011(b) or 3012(c) of such title for
any month beginning on or after that date, the reduction of
basic pay of such covered member of the Armed Forces under
such section 3011(b) or 3012(c), as applicable, shall cease
commencing with the first month beginning on or after that
date.
(d) Refund of Contributions.--(1) In the case of any
covered member of the Armed Forces whose basic pay was
reduced under section 3011(b) or 3012(c) of such title for
any month beginning before the date of the enactment of this
Act, the Secretary concerned shall pay to such covered member
of the Armed Forces an amount equal to the aggregate amount
of reductions of basic pay of such member of the Armed Forces
under such section 3011(b) or 3012(c), as applicable, as of
that date.
(2) Any amount paid to a covered member of the Armed Forces
under paragraph (1) shall not be included in gross income
under the Internal Revenue Code of 1986.
(3) Amounts for payments made by a Secretary concerned
under paragraph (1) during fiscal year 2005 shall be derived
from amounts made available for such fiscal year in an Act
making supplemental appropriations for defense and the
reconstruction of Iraq.
(4) In this subsection, the term ``Secretary concerned''
means--
(A) the Secretary of the Army, with respect to matters
concerning the Army;
(B) the Secretary of the Navy, with respect to matters
concerning the Navy or the Marine Corps;
(C) the Secretary of the Air Force, with respect to matters
concerning the Air Force; and
(D) the Secretary of Homeland Security, with respect to
matters concerning the Coast Guard.
(e) Covered Member of the Armed Forces Defined.--In this
section, the term ``covered member of the Armed Forces''
means any individual who serves on active duty as a member of
the Armed Forces during the period--
(1) beginning on November 16, 2001, the date of Executive
Order 13235, relating to National Emergency Construction
Authority; and
(2) ending on the termination date of the Executive order
referred to in paragraph (1).

SEC. 3. OPPORTUNITY FOR INDIVIDUALS WHO SERVE AS ACTIVE DUTY
MEMBERS OF THE ARMED FORCES UNDER EXECUTIVE
ORDER 13235 TO WITHDRAW ELECTION NOT TO ENROLL
IN MONTGOMERY GI BILL.

Section 3018 of title 38, United States Code, is amended--
(1) by redesignating subsections (c) and (d) as subsection
(d) and (e), respectively;

[[Page S231]]

(2) by inserting after subsection (b) the following new
subsection (c):
``(c)(1) Notwithstanding any other provision of this
chapter, during the one-year period beginning on the date of
the enactment of this subsection, an individual who--
``(A) serves on active duty as a member of the Armed Forces
during the period beginning on November 16, 2001, and ending
on the termination date of Executive Order 13235, relating to
National Emergency Construction Authority; and
``(B) has served continuously on active duty without a
break in service following the date the individual first
becomes a member or first enters on active duty as a member
of the Armed Forces,

shall have the opportunity, on such form as the Secretary of
Defense shall prescribe, to withdraw an election under
section 3011(c)(1) or 3012(d)(1) of this title not to receive
education assistance under this chapter.
``(2) An individual described paragraph (1) who made an
election under section 3011(c)(1) or 3012(d)(1) of this title
and who--
``(A) while serving on active duty during the one-year
period beginning on the date of the enactment of this
subsection makes a withdrawal of such election;
``(B) continues to serve the period of service which such
individual was obligated to serve;
``(C) serves the obligated period of service described in
subparagraph (B) or before completing such obligated period
of service is described by subsection (b)(3)(B); and
``(D) meets the requirements set forth in paragraphs (4)
and (5) of subsection (b),

is entitled to basic educational assistance under this
chapter.''; and
(3) in subsection (e), as so redesignated, by inserting
``or (c)(2)(A)'' after ``(b)(1)''.
______

By Mr. HAGEL (for himself, Mr. DeWine, Mrs. Clinton, Mr. Kennedy,
Mr. Lautenberg, and Mr. Salazar):
S. 44. A bill to amend title 10, United States Code, to increase the
amount of the military death gratuity from $12,000 to $100,000; to the
Committee on Armed Services.

S. 44

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Military Death Benefit
Improvement Act of 2005''.

SEC. 2. INCREASE IN DEATH GRATUITY PAYABLE WITH RESPECT TO
MEMBERS OF THE ARMED FORCES.

(a) Amount of Death Gratuity.--Section 1478(a) of title 10,
United States Code, is amended by striking ``$12,000'' and
inserting ``$100,000''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to deaths occurring on or after
November 16, 2001, the date of Executive Order 13235,
relating to National Emergency Construction Authority.
(c) Funding.--
(1) Source of funds.--Amounts for the payment during fiscal
year 2005 of death gratuities by a Secretary concerned under
sections 1475 through 1477 of title 10, United States Code,
as amended by subsection (a), shall be derived from amounts
made available for such fiscal year in an Act making
emergency supplemental appropriations for defense and for the
reconstruction of Iraq.
(2) Secretary concerned defined.--In this subsection, the
term ``Secretary concerned'' has the meaning given such term
in section 101(a)(9) of title 10, United States Code.
______

By Mr. LEVIN (for himself, Mr. Hatch, and Mr. Biden):
S. 45. A bill to amend the Controlled Substances Act to lift the
patient limitation on prescribing drug addiction treatments by medical
practitioners in group practices, and for other purposes; to the
Committee on Health, Education, Labor, and Pensions.
Mr. LEVIN. Mr. President, the legislation I am introducing today
along with my colleagues Senator Hatch and Senator Biden, addresses an
unintended effect of a provision in the original Drug Abuse and
Treatment Act of 2000 (DATA) that hinders access to a revolutionary new
treatment for thousands of individuals who seek it.
When Congress passed DATA as Title XXXV of the Children's Health Act
of 2000, it allowed for the dispensing and prescribing of Schedule III
drugs, like buprenorphine/naloxone, in an office-based setting, for the
treatment of heroin addiction. As a result of DATA, access to treatment
is significantly expanded; patients no longer are restricted to
receiving treatment in a large public clinic, usually at a great
distance, but now may receive such care in the private, nearby office
of qualified physicians.
DATA limits individual physicians to treating no more than 30-
patients at a time. Unfortunately, the law results in the same 30-
patient limit on physician group practices. The difficulties that have
arisen, including the dashed hopes for treatment of many, have resulted
in the underutilization of this proven therapy all across this country,
including my home state of Michigan.
One of the authors of DATA, I can tell you that it clearly was not
our intention that individuals seeking this new treatment have less
access simply because they receive care from a physician practicing in
a group, or from a group-based or mixed-model health plan.
Nevertheless, this is the effect and it is having a severe effect.
The problem is addressed by removing the 30-patient aggregate limit
on medical groups. This is achieved in the bill we are introducing
today. Our bill simply removes the statutory limit on physician group
practices, while maintaining the 30-patient limit on each physician. I
am pleased that the Senate has already gone on record in support of
this modification to DATA. On October 11, 2004, the Senate Passed S.
2976, to remove the 30-patient limit on the group practices. However,
the House adjourned before acting on the legislation. It is our hope
that the bill we are introducing today will receive speedy action in
both the Senate and House in the very near future.
Mr. President, I would like to share some of the sentiments that have
been expressed in support of the group practice modification, as well
as some first hand accounts of individuals who are being successfully
treated with buprenorphine/naloxone. Dr. Charles Schuster, a former
director of the National Institute on Drug Abuse who currently heads
the Addiction Research Institute at Wayne State University, writes:

We have three physicians in a group, all of whom have been
trained and granted waivers by the U.S. Department of Health
and Human Services to prescribe Suboxone and Subutex for the
treatment of opiate addiction. All are specialists in the
treatment of addictive disorders. Rather than being able to
bring this potentially life saving therapy to 90 members of
our community, they are restricted to a total of thirty.
This situation is particularly heart breaking in places
where there are a few or only one provider. This situation
will only get worse as physicians and practice plans reach
their 30-patient limitation.
I have been involved in the development of Suboxone and
Subutex for the treatment of opiate addiction for many years.
It is a safer medication with less abuse potential than
methadone. It allows people who fear public knowledge of
their addictive disease to more discreetly seek help from a
private physician. It is a medication that can be used for a
short period with adolescents who have become addicted to
opiates because it is easier to taper them off of this drug
than methadone. In short, office-based practice with Suboxone
and Subutex is a major addition to our country's treatment
system for opiate addiction. It is essential that we remove
the impediment of limiting Physician Practice Plans to 30
patients so that each of the physicians in such Practice
Plans who are trained to use this medication can bring their
services to those in need.

Peter DeMarco, in an article in the May 30, 2004 Boston Globe,
writes:

When buprenorphine became available as a treatment for
OxyContin and heroin addiction 18 months ago, many medical
professionals and addicts hailed it as a miracle drug,
bringing addicts back from the brink and helping them lead
normal lives when all else had failed. But for many addicts,
buprenorphine remains one of the hardest drugs to obtain. . .
. (B)prenorphine doesn't cloud the minds of patients,
allowing them to work or study as if they're not on any drug
at all. Nearly all who take buprenorphine, meanwhile, say
they lose all physical cravings for street drugs.
But a combination of federal limits on the distribution of
buprenorphine . . . has kept thousands of opiate addicts from
receiving the drug in Massachusetts and across the country.
At the heart of the issue is federal legislation passed in
2000--two years before the drug was approved by the FDA--that
restricts individual clinical practices from treating more
than 30 patients with buprenorphine at a time.
While many substance-abuse experts say the 30-patient
figure is too low for some practices, their main quarrel with
the Drug Addiction Treatment Act of 2000 is its failure to
differentiate single-physician practices, hospitals, and
health care organizations. For example, all the doctors who
work for Tufts Health Plan can treat a combined 30 patients--
the same total as can be seen by a physician practicing
alone.
Boston health officials, along with their counterparts in
the State and Federal governments, say the Federal
legislation erred on the side of caution, and needs to be
changed to allow wider access to buprenorphine.
``Boston Medical Center's main practice has 200 or more
general internal-medicine doctors, and within that practice,
we can only treat 30 people. It's the craziest loophole,''
said Colleen Labelle, nurse-manager of the hospital's Office-
Based Opioid Treatment Program. ``We get 20 calls a day from

[[Page S232]]

across the state. People are begging, desperate to get
treated, who we can't treat.''
The Federal Substance Abuse and Mental Health Services
Administration has begun an internal process to increase the
30-patient cap. But because any proposed change would be
subject to the public-review process, approval could take as
long as two years, said Nick Reuter, a senior public health
analyst with the agency.
Timothy Tigges says his addiction began after he wrenched
his back and bummed a few Percocet pills, a prescription
analgesic, from a friend to dull the pain. Before he knew it,
he was hooked on opiates, alternating between OxyContin and
shooting up heroin as his life went to pieces.
In October, Tigges, a 27-year-old East Boston carpet
installer, began taking buprenorphine, placing an orange pill
the size of a dime under his tongue until it dissolves, four
times daily. He hasn't touched an illegal drug since the day
he started the program, has put on 80 pounds from lifting
weights at the gym, and has yet to miss a day of work. For
the first time in three years, Tigges hopes to see his 5-
year-old daughter, whose mother has refused to let him visit.
``I've had clean urines, 100 percent, for nine months now.
There's nothing I'm prouder of than that,'' he said, choking
back emotion. ``What I read on the front page of the paper
every day is 18- and 20-year-old kids dying of garbage drugs.
There's just no need for it. I would take every ounce of
heroin off the street and give them this stuff. You watch the
crime rate go down.''

Mr. President, I ask unanimous consent that the text of the
legislation be included at the end of my remarks.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 45

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. MAINTENANCE OR DETOXIFICATION TREATMENT WITH
CERTAIN NARCOTIC DRUGS; ELIMINATION OF 30-
PATIENT LIMIT FOR GROUP PRACTICES.

(a) In General.--Section 303(g)(2)(B) of the Controlled
Substance Act (21 U.S.C. 823(g)(2)(B)) is amended by striking
clause (iv).
(b) Conforming Amendment.--Section 303(g)(2)(B) of the
Controlled Substance Act (21 U.S.C. 823(g)(2)(B)) is amended
in clause (iii) by striking ``In any case'' and all that
follows through ``the total'' and inserting ``The total''.
(c) Effective Date.--This section shall take effect on the
date of enactment of this Act.
______

By Mr. LEVIN (for himself and Mr. Lugar):
S. 46. A bill to authorize the extension of unconditional and
permanent nondiscriminatory treatment (permanent normal trade relations
treatment) to the products of Ukraine, and for other purposes; to the
Committee on Finance.
Mr. LEVIN. Mr. President, today I introduce with my colleague,
Senator Lugar, a bill to grant normal trade treatment to the products
of Ukraine. My brother, Congressman Sander Levin and other members are
introducing a similar bill in the House. It is our hope that enactment
of this legislation will help to build stronger economic ties between
the United States and Ukraine.
The Cold War era Jackson-Vanik trade restrictions that deny most
favored nation trade status to imports from former Soviet-Bloc
countries are outdated and, when applied to Ukraine, inappropriate.
Those restrictions were established as a tool to pressure Communist
nations to allow their people to freely emigrate in exchange for
favorable trade treatment by the United States.
Ukraine does allow its citizens the right and opportunity to
emigrate. It has met the Jackson-Vanik test. In fact, Ukraine has been
found to be in full compliance with the freedom of emigration
requirements under the Jackson-Vanik law. Ukraine has been certified as
meeting the Jackson-Vanik requirements on an annual basis since 1992
when a bilateral trade agreement went into effect.
It is time the United States recognizes this reality by eliminating
the Jackson-Vanik restrictions and granting Ukraine normal trading
status on a permanent basis. Our bill does this as well as addressing
traditional Jackson-Vanik issues such as emigration, religious freedom,
restoration of property, and human rights. It also deals with the
important trade issues that must be considered when granting a country
permanent normal trade relations (PNTR), such as making progress toward
World Trade Organization (WTO), accession and tariff and excise tax
reductions.
Since reestablishing independence in 1991, Ukraine has taken
important steps toward the creation of democratic institutions and a
free-market economy. As a member state of the Organization for Security
and Cooperation in Europe (OSCE), Ukraine is committed to developing a
system of governance in accordance with the principles regarding human
rights that are set forth in the Final Act of the Conference on
Security and Cooperation in Europe, the Helsinki Final Act.
On December 26, 2004, Ukraine took another historic step in its
pursuit of democracy with the legitimate election of its new President
Viktor Yuschenko. This election showed the world that Ukraine has
joined the family of democracies. The United States can help advance
this young democracy by repealing our Cold War-era laws that should no
longer apply to them and welcoming them to the international economic
community as a full partner. This bill will accomplish these goals.
In addition to welcoming the Ukrainian government to the family of
democracies, we must also take a moment to honor the Ukranian people
for their commitment to democratic institutions in civil society
through peaceful demonstrations. Free and fair elections were conducted
only because of the courage and hard work of the Ukranian people.
Without their persistence Ukraine was in danger of moving forward with
an illegitimately elected president.
By drawing Ukraine into normal trade relations, the international
community will be helping Ukraine to achieve greater market reform and
continue its commitment to safeguarding religious liberty and enforcing
laws to combat discrimination. PNTR status will hopefully do more than
increase bilateral trade between the United States and Ukraine and
encourage increased international investment in Ukraine. Hopefully it
will also stimulate the reform we all want and the Ukrainian people
deserve on their way to achieving a more mature and stable democracy.
It's time we recognize Ukraine's accomplishments and status as an
emerging democracy and market economy by lifting the Jackson-Vanik
restrictions. I hope my colleagues will support this important bill.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 46

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. FINDINGS.

Congress finds that--
(1) Ukraine allows its citizens the right and opportunity
to emigrate, free of anything more than a nominal tax on
emigration or on the visas or other documents required for
emigration and free of any tax, levy, fine, fee, or other
charge on any citizens as a consequence of the desire of such
citizens to emigrate to the country of their choice;
(2) Ukraine has been found to be in full compliance with
the freedom of emigration requirements under title IV of the
Trade Act of 1974 since 1997;
(3) since reestablishing independence in 1991, Ukraine has
taken important steps toward the creation of democratic
institutions and a free-market economy and, as a
participating state of the Organization for Security and
Cooperation in Europe (OSCE), is committed to developing a
system of governance in accordance with the principles
regarding human rights and humanitarian affairs that are set
forth in the Final Act of the Conference on Security and
Cooperation in Europe (also known as the ``Helsinki Final
Act'') and successive documents;
(4) the people of Ukraine deserve praise for demonstrating
a deep commitment to democracy and through peaceful civil
action demanding a process that achieved a fair election in
Ukraine's most recent Presidential runoff;
(5) Ukraine has made progress toward meeting international
commitments and standards in the most recent Presidential
runoff elections, including in the implementation of
Ukraine's new elections laws;
(6) as a participating state of the Organization for
Security and Co-operation in Europe (OSCE), Ukraine is
committed to addressing issues relating to its national and
religious minorities and to adopting measures to ensure that
persons belonging to national minorities have full equality
both individually and communally;

[[Page S233]]

(7) Ukraine has enacted legislation providing protection
against incitement to violence against persons or groups
based on national, racial, ethnic, or religious
discrimination, including anti-Semitism, and has committed
itself, including through a letter to the President of the
United States, to ensuring freedom of religion and combating
racial and ethnic intolerance and hatred;
(8) Ukraine has engaged in efforts to combat ethnic and
religious intolerance by cooperating with various United
States nongovernmental organizations;
(9) Ukraine is continuing the restitution of religious
properties, including religious and communal properties
confiscated from national and religious minorities during the
Soviet era, is facilitating the revival of those minority
groups, and remains committed to developing a legislative
framework for completing this process, as promised in a
letter to the President of the United States;
(10) Ukraine has received normal trade relations treatment
since concluding a bilateral trade agreement with the United
States that entered into force on June 23, 1992;
(11) Ukraine's accession to the World Trade Organization
would be a welcome step, recognizing that many issues remain
to be resolved, including commitments relating to access of
United States agricultural products, protection of
intellectual property rights, tariff and excise tax
reductions for goods (including automobiles), trade in
services, elimination of export incentives for industrial
goods, and reform of customs procedures and other non-tariff
barriers;
(12) Ukraine has enacted protections reflecting
internationally recognized labor rights;
(13) as a participating state of the OSCE, Ukraine has
committed itself to respecting freedom of the press, and the
new administration has affirmed this commitment;
(14) Ukraine has stated its desire to pursue a course of
Euro-Atlantic integration with a commitment to ensuring
democracy and prosperity for its citizens; and
(15) Ukraine has participated with the United States in its
peacekeeping operations in Europe and has provided important
cooperation in the global struggle against international
terrorism.

SEC. 2. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE
ACT OF 1974 TO UKRAINE.

(a) Presidential Determinations and Extension of
Unconditional and Permanent Nondiscriminatory Treatment.--
Notwithstanding any provision of title IV of the Trade Act of
1974 (19 U.S.C. 2431 et seq.), the President may--
(1) determine that such title should no longer apply to
Ukraine; and
(2) after making a determination under paragraph (1) with
respect to Ukraine, proclaim the extension of unconditional
and permanent nondiscriminatory treatment (permanent normal
trade relations treatment) to the products of that country.
(b) Termination of Application of Title IV.--On and after
the effective date of the extension under subsection (a)(2)
of nondiscriminatory treatment to the products of Ukraine,
chapter 1 of title IV of the Trade Act of 1974 shall cease to
apply to that country.

SEC. 3. SENSE OF CONGRESS.

It is the sense of Congress that the United States remain
fully committed to a multifaceted engagement with Ukraine,
including by--
(1) encouraging Ukraine to continue to meet its commitments
as a participating member of the OSCE and welcoming further
progress on implementing policy--
(A) of providing for the free emigration of its citizens;
(B) of safeguarding religious liberty throughout Ukraine;
(C) of enforcing existing Ukrainian laws at the national
and local levels to combat ethnic, religious, and racial
discrimination and violence;
(D) of expanding the restitution of religious and communal
properties, including establishing a legal framework for the
completion of such restitution in the future;
(E) of meeting international standards of democracy,
including implementation of newly adopted election laws;
(F) of creating a more independent legal and judicial
system, governed by the rule of law, and free of political
interference and corruption; and
(G) of respecting media freedoms fully, including by
prohibiting physical harm to and intimidation of journalists;
(2) supporting Ukraine's efforts to make further market-
oriented reforms, to pursue a policy of Euro-Atlantic
integration, to join the WTO, and to combat corruption;
(3) supporting Ukraine's efforts to make substantial and
meaningful progress in enacting and enforcing the protection
of intellectual property rights; and
(4) working with Ukraine to ensure quick resolution of
trade disputes that may arise, particularly in the
intellectual property, poultry, and other agricultural
sectors.

SEC. 4. CONTINUED ENJOYMENT OF RIGHTS UNDER THE JUNE 23,
1992, BILATERAL TRADE AGREEMENT.

(a) Finding.--Congress finds that the trade agreement
between the United States and Ukraine that entered into force
on June 23, 1992, remains in force between the 2 countries
and provides the United States with important rights,
including the right to use specific safeguard rules to
respond to import surges from Ukraine.
(b) Applicability of Safeguard.--Section 421 of the Trade
Act of 1974 (19 U.S.C. 2451) shall apply to Ukraine to the
same extent as such section applies to the People's Republic
of China, so long as the trade agreement described in
subsection (a) remains in force.

SEC. 5. EXERCISE OF CONGRESSIONAL OVERSIGHT OVER WTO
ACCESSION NEGOTIATIONS.

(a) Notice of Agreement on Accession to WTO by Ukraine.--
Not later than 5 days after the date on which the United
States has entered into a bilateral agreement with Ukraine on
the terms of accession by Ukraine to the World Trade
Organization, the President shall so notify Congress, and the
President shall transmit to Congress, not later than 15 days
after that agreement is entered into, a report that sets
forth the provisions of that agreement.
(b) Congressional Oversight Resolution.--
(1) Introduction.--If a Congressional Oversight Resolution
is introduced in the House of Representatives or the Senate
during the 30-day period (not counting any day which is
excluded under section 154(b) of the Trade Act of 1974 (19
U.S.C. 2194(b)), beginning on the date on which the President
first notifies Congress under subsection (a) of the agreement
referred to in that subsection, that Congressional Oversight
Resolution shall be considered in accordance with this
subsection.
(2) Congressional oversight resolution.--In this
subsection, the term ``Congressional Oversight Resolution''
means only a joint resolution of the two Houses of Congress,
the matter after the resolving clause of which is as follows:
``That it is the sense of the Congress that the agreement
between the United States and Ukraine on the terms of
accession by Ukraine to the World Trade Organization, of
which Congress was notified on ________, does not adequately
advance the interests of the United States.'', with the blank
space being filled with the appropriate date.
(3) Procedures for considering resolutions.--
(A) Introduction and referral.--A Congressional Oversight
Resolution--
(i) in the House of Representatives--

(I) may be introduced by any Member of the House;
(II) shall be referred to the Committee on Ways and Means
and, in addition, to the Committee on Rules; and
(III) may not be amended by either Committee; and

(ii) in the Senate--

(I) may be introduced by any Member of the Senate;
(II) shall be referred to the Committee on Finance; and
(III) may not be amended.

(B) Committee discharge and floor consideration.--The
provisions of subsections (c) through (f) of section 152 of
the Trade Act of 1974 (19 U.S.C. 2192 (c) through (f))
(relating to committee discharge and floor consideration of
certain resolutions in the House and Senate) apply to a
Congressional Oversight Resolution to the same extent as such
subsections apply to resolutions under such section.
(c) Rules of House of Representatives and Senate.--
Subsection (b) is enacted by Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and as such is
deemed a part of the rules of each House, respectively, and
the procedures described in such subsection supersede other
rules only to the extent that they are inconsistent with such
other rules; and
(2) with the full recognition of the constitutional right
of either House to change the rules (so far as relating to
the procedures of that House) at any time, in the same
manner, and to the same extent as any other rule of that
House.

Mr. LUGAR. Mr. President, I rise today in support of a bill that I
have introduced with Senator Carl Levin authorizing the extension of
permanent normal trade relations treatment. Ukraine is still subject to
the provisions of the Jackson-Vanik amendment to the Trade Act of 1974,
which sanctions nations for failure to comply with freedom of
emigration requirements. Our bill would repeal permanently the
application of Jackson-Vanik to Ukraine.
In the post-cold-war era, Ukraine has demonstrated a commitment to
meet these requirements, and in addition, has expressed a strong desire
to abide by free market principles and good governance. Last November,
I served as President Bush's personal representative to the runoff
election between Prime Minister Yanukovich and Viktor Yushchenko.
During that visit, I promoted free and fair election procedures that
would strengthen worldwide respect for the legitimacy of the winning
candidate. Unfortunately, that was not possible. The Government of
Ukraine allowed, or aided and abetted, wholesale fraud and abuse that
changed the results of the election. It is clear that Prime Minister
Yanukovich did not win the election.
In response, the people of Ukraine rallied in the streets and
demanded justice. After tremendous international

[[Page S234]]

pressure and mediation, Ukraine repeated the runoff election on
December 26. A newly named Central Election Commission and a new set of
election laws led to a much-improved process. International monitors
concluded that the process was generally free and fair. This past
weekend Viktor Yushchenko was inaugurated as President of Ukraine.
Extraordinary events have occurred in Ukraine over the last three
months. A free press has revolted against government intimidation and
reasserted itself. An emerging middle class has found its political
footing. A new generation has embraced democracy and openness. A
society has rebelled against the illegal activities of its government.
It is in our interest to recognize and protect these advances in
Ukraine.
The United States has a long record of cooperation with Ukraine
through the Nunn-Lugar Cooperative Threat Reduction. Ukraine inherited
the third largest nuclear arsenal in the world with the fall of the
Soviet Union. Through the Nunn-Lugar program the United States has
assisted Ukraine in eliminating this deadly arsenal and joining the
Nonproliferation Treaty as a non-nuclear State.
One of the areas where we can deepen United States-Ukrainian
relations is bilateral trade. Our trade relations between the United
States and Ukraine are currently governed by a bilateral trade
agreement signed in 1992. There are other economic agreements in place
seeking to further facilitate economic cooperation between the United
States and Ukraine, including a bilateral investment treaty which was
signed in 1996, and a taxation treaty signed in 2000. In addition,
Ukraine commenced negotiations to become a member of the World Trade
Organization in 1993, further demonstrating its commitment to adhere to
free market principles and fair trade. In light of its adherence to
freedom of emigration requirements, democratic principles, compliance
with threat reduction and several agreements on economic cooperation,
the products of Ukraine should not be subject to the sanctions of
Jackson-Vanik.
There are areas in which Ukraine needs to continue to improve. These
include market access, protection of intellectual property and
reduction of tariffs. The U.S. must remain committed to assisting
Ukraine in pursuing market economic reforms. The permanent waiver of
Jackson-Vanik and establishment of permanent normal trade relations
will be the foundation on which further progress in a burgeoning
economic partnership can be made.
I am hopeful that my colleagues will review this legislation and join
Senator Levin and I in supporting this important legislation.
______

By Mr. BINGAMAN (for himself and Mr. Domenici):
S. 47. A bill to provide for the exchange of certain Federal land in
the Santa Fe National Forest and certain non-Federal land in the Pecos
National Historical Park in the State of New Mexico; to the Committee
on Energy and Natural Resources.
Mr. BINGAMAN. Mr. President, today, I am introducing along with Mr.
Domenici the ``Pecos National Historical Park Land Exchange Act of
2005''. This bill will authorize a land exchange between the Federal
government and a private landowner that will benefit the Pecos National
Historical Park in my State of New Mexico.
Specifically, the bill will enable the Park Service to acquire a
private inholding within the Park's boundaries in exchange for the
transfer of a nearby tract of National Forest System land. The National
Forest parcel has been identified as available for exchange in the
Santa Fe National Forest Land and Resource Management Plan and is
surrounded by private lands on three sides.
The Pecos National Historical Park possesses exceptional historic and
archaeological resources. The Park preserves the ruins of the great
Pecos pueblo, which was a major trade center, and the ruins of two
Spanish colonial missions dating from the 17th and 18th centuries.
The Glorieta Unit of the Park protects key sites associated with the
1862 Civil War Battle of Glorieta Pass, a significant event that ended
the Confederate attempt to expand the war into the West. This Unit will
directly benefit from the land exchange.
Similar bills passed the Senate in both the 106th and the 108th
Congresses, and I hope it finally will be enacted this Congress.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 47

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Pecos National Historical
Park Land Exchange Act of 2005''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Federal land.--The term ``Federal land'' means the
approximately 160 acres of Federal land within the Santa Fe
National Forest in the State, as depicted on the map.
(2) Landowner.--The term ``landowner'' means the 1 or more
owners of the non-Federal land.
(3) Map.--The term ``map'' means the map entitled
``Proposed Land Exchange for Pecos National Historical
Park'', numbered 430/80,054, dated November 19, 1999, and
revised September 18, 2000.
(4) Non-federal land.--The term ``non-Federal land'' means
the approximately 154 acres of non-Federal land in the Park,
as depicted on the map.
(5) Park.--The term ``Park'' means the Pecos National
Historical Park in the State.
(6) Secretaries.--The term ``Secretaries'' means the
Secretary of the Interior and the Secretary of Agriculture,
acting jointly.
(7) State.--The term ``State'' means the State of New
Mexico.

SEC. 3. LAND EXCHANGE.

(a) In General.--On conveyance by the landowner to the
Secretary of the Interior of the non-Federal land, title to
which is acceptable to the Secretary of the Interior--
(1) the Secretary of Agriculture shall, subject to the
conditions of this Act, convey to the landowner the Federal
land; and
(2) the Secretary of the Interior shall, subject to the
conditions of this Act, grant to the landowner the easement
described in subsection (b).
(b) Easement.--
(1) In general.--The easement referred to in subsection
(a)(2) is an easement (including an easement for service
access) for water pipelines to 2 well sites located in the
Park, as generally depicted on the map.
(2) Route.--The Secretary of the Interior, in consultation
with the landowner, shall determine the appropriate route of
the easement through the Park.
(3) Terms and conditions.--The easement shall include such
terms and conditions relating to the use of, and access to,
the well sites and pipeline, as the Secretary of the
Interior, in consultation with the landowner, determines to
be appropriate.
(4) Applicable law.--The easement shall be established,
operated, and maintained in compliance with applicable
Federal law.
(c) Valuation, Appraisals, and Equalization.--
(1) In general.--The value of the Federal land and non-
Federal land--
(A) shall be equal, as determined by appraisals conducted
in accordance with paragraph (2); or
(B) if the value is not equal, shall be equalized in
accordance with paragraph (3).
(2) Appraisals.--
(A) In general.--The Federal land and non-Federal land
shall be appraised by an independent appraiser selected by
the Secretaries.
(B) Requirements.--An appraisal conducted under
subparagraph (A) shall be conducted in accordance with--
(i) the Uniform Appraisal Standards for Federal Land
Acquisition; and
(ii) the Uniform Standards of Professional Appraisal
Practice.
(C) Approval.--The appraisals conducted under this
paragraph shall be submitted to the Secretaries for approval.
(3) Equalization of values.--
(A) In general.--If the values of the non-Federal land and
the Federal land are not equal, the values may be equalized
by--
(i) the Secretary of the Interior making a cash
equalization payment to the landowner;
(ii) the landowner making a cash equalization payment to
the Secretary of Agriculture; or
(iii) reducing the acreage of the non-Federal land or the
Federal land, as appropriate.
(B) Cash equalization payments.--Any amounts received by
the Secretary of Agriculture as a cash equalization payment
under section 206(b) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1716(b)) shall--
(i) be deposited in the fund established by Public Law 90-
171 (commonly known as the ``Sisk Act'') (16 U.S.C. 484a);
and
(ii) be available for expenditure, without further
appropriation, for the acquisition of land and interests in
land in the State.
(d) Costs.--Before the completion of the exchange under
this section, the Secretaries

[[Page S235]]

and the landowner shall enter into an agreement that
allocates the costs of the exchange among the Secretaries and
the landowner.
(e) Applicable Law.--Except as otherwise provided in this
Act, the exchange of land and interests in land under this
Act shall be in accordance with--
(1) section 206 of the Federal Land Policy and Management
Act of 1976 (43 U.S.C. 1716); and
(2) other applicable laws, including the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(f) Additional Terms and Conditions.--The Secretaries may
require, in addition to any requirements under this Act, such
terms and conditions relating to the exchange of Federal land
and non-Federal land and the granting of easements under this
Act as the Secretaries determine to be appropriate to protect
the interests of the United States.
(g) Completion of the Exchange.--
(1) In general.--The exchange of Federal land and non-
Federal land shall be completed not later than 180 days after
the later of--
(A) the date on which the requirements of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
have been met;
(B) the date on which the Secretary of the Interior
approves the appraisals under subsection (c)(2)(C); or
(C) the date on which the Secretaries and the landowner
agree on the costs of the exchange and any other terms and
conditions of the exchange under this section.
(2) Notice.--The Secretaries shall submit to the Committee
on Energy and Natural Resources of the Senate and the
Committee on Resources of the House of Representatives notice
of the completion of the exchange of Federal land and non-
Federal land under this Act.

SEC. 4. ADMINISTRATION.

(a) In General.--The Secretary of the Interior shall
administer the non-Federal land acquired under this Act in
accordance with the laws generally applicable to units of the
National Park System, including the Act of August 25, 1916
(commonly known as the ``National Park Service Organic Act'')
(16 U.S.C. 1 et seq.).
(b) Maps.--
(1) In general.--The map shall be on file and available for
public inspection in the appropriate offices of the
Secretaries.
(2) Transmittal of revised map to congress.--Not later than
180 days after completion of the exchange, the Secretaries
shall transmit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Resources of the
House of Representatives a revised map that depicts--
(A) the Federal land and non-Federal land exchanged under
this Act; and
(B) the easement described in section 3(b).
______

By Mr. LAUTENBERG (for himself and Mr. Corzine):
S. 48. A bill to reauthorize appropriations for the New Jersey
Coastal Heritage Trail Route, and for other purposes; to the Committee
on Energy and Natural Resources.
Mr. LAUTENBERG. Mr. President, I rise today to speak about a bill
that Senator Corzine and I are introducing, the New Jersey Coastal
Heritage Trail Route bill. Our bill would reauthorize a law based on a
bill that former Senator Bill Bradley and I first introduced in 1988.
That law was extended once but its authorization has now expired,
bringing work on the Trail to a complete standstill.
This bill would reauthorize federal appropriations for New Jersey's
Coastal Heritage Trail. This authority would sunset in 2009, allowing
enough time for unfinished trail projects to be completed.
The 300-mile Trail is divided into five sections that extend south
from Perth Amboy to Cape May and west to Deepwater. New Jersey's
Coastal Heritage Trail is unique. It is neither a National Heritage
Area, nor a National Trail. Collaboration on this Trail marked the
National Park Service's first attempt at protecting a significant
resource without actually acquiring it. This experiment has been a
resounding success.
The State of New Jersey is heavily developed, and the National Park
Service, the State, and many other public and private organizations
have worked hard to preserve the natural and cultural heritage along
the Trail.
This experiment has also been a bargain. Between 1988 and 2004, the
Park Service spent 3.9 million dollars on Trail projects, while non-
federal sources contributed 5.4 million dollars in matching funds.
These funds represent an important investment in New Jersey's economy.
Last year, 65 million visitors came to New Jersey, and the majority of
those visitors went to the shore where many spent time on sections of
the Coastal Heritage Trail.
In the past, Federal funds have contributed to signs and exhibits
along the Trail which entice tourists and local New Jerseyans to
explore our maritime history, coastal habitats, and wildlife migration.
Most people think that New Jersey is a crowded, highly industrialized
State. That is true. But New Jersey also contains incredible beauty,
such as a Bald Eagle silhouetted against a Delaware Bay sunset; a lone
fishing boat making its way through Barnegat Inlet at dawn; or the
quiet, dark waters flowing slowly through the Pine Barrens.
Such sights can be enjoyed in New Jersey, and the Coastal Heritage
Trail invites New Jerseyans and our many visitors to enjoy these
splendors.
Mr. President, in the House, Congressman LoBiondo is sponsoring a
companion bill to this legislation, so this is truly a bipartisan
effort. The Congressman and I have worked with our respective
committees of jurisdiction and have come to agreement on identical
language in our bills. So, it is my hope that the Senate will be able
to pass this bill promptly. Getting it passed and signed into law will
help to protect our environment and markedly improve the quality of
life for millions of Americans--all at a very low cost to the Nation's
taxpayers.
Mr. President, I ask for unanimous consent that the text of the bill
be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 48

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. REAUTHORIZATION OF APPROPRIATIONS FOR NEW JERSEY
COASTAL HERITAGE TRAIL ROUTE.

(a) Reauthorization.--Section 6 of Public Law 100-515 (16
U.S.C. 1244 note) is amended--
(1) in subsection (b)(1), by striking ``$4,000,000'' and
all that follows and inserting ``such sums as are
necessary''; and
(2) in subsection (c), by striking ``10'' and inserting
``12''.
(b) Strategic Plan.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of the Interior shall
prepare a strategic plan for the New Jersey Coastal Heritage
Trail Route.
(2) Contents.--The strategic plan shall describe--
(A) opportunities to increase participation by national and
local private and public interests in the planning,
development, and administration of the New Jersey Coastal
Heritage Trail Route; and
(B) organizational options for sustaining the New Jersey
Coastal Heritage Trail Route.
______

By Mr. STEVENS (for himself and Ms. Murkowski):
S. 49. A bill to establish a joint Federal-State Floodplain and
Erosion Mitigation Commission for the State of Alaska; to the Committee
on Energy and Natural Resources.
Mr. STEVENS. Mr. President, on behalf of myself and Senator
Murkowski, I introduce S. 49, the Alaska Floodplain and Erosion
Mitigation Commission Act.
For the last several years, we have seen coastal river flooding and
erosion destroy homes, public buildings, and runways, threatening the
traditional lifestyle of our Alaska Native people and rural residents.
Over 100 feet of land can be lost in a single storm, with homes and
buildings literally being washed into the ocean.
Last year, the Federal Emergency Management Agency was called in
after one storm and assessed millions of dollars in damages.
In Alaska, there are over 213 communities that have been identified
as being affected by erosion, 4 of which are in imminent danger and
will be forced to relocate.
Given the devastating impacts of erosion on Alaska Native villages, I
held a full 2-day Appropriations field hearing in July of 2004. Senator
Conrad Burns of Montana, Senator John Sununu of New Hampshire, and
Senator Lisa Murkowski were all in attendance.
Testifying at the hearing were witnesses from the Federal Government,
State of Alaska, and representatives from the villages most affected by
coastal erosion and flooding.
These hearings examined the findings and recommendations from the
Government Accounting Office, GAO, report on the severe flooding and
erosion problems faced in many Native Alaska villages. Congress had
previously directed GAO to study flooding and erosion of Alaska Native
villages and to determine the extent to which these villages are
affected, identify Federal and State flooding and erosion programs,
determine the current status of

[[Page S236]]

efforts to respond to flooding and erosion in nine villages, and
identify alternatives that Congress may wish to consider when providing
assistance for flooding and erosion.
This bill is a culmination of the GAO report and the field hearings I
have mentioned. It will focus the efforts of the Federal agencies and
the State of Alaska to better serve the impacted Native villages and
rural residents. This bill is intended to provide relief for these
communities. It is going to be a very difficult problem to solve.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 49

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Alaska
Floodplain and Erosion Mitigation Commission Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

TITLE I--JOINT FEDERAL-STATE FLOODPLAIN AND EROSION MITIGATION
COMMISSION FOR ALASKA

Sec. 101. Establishment of commission.
Sec. 102. Duties.
Sec. 103. Administration.
Sec. 104. Commission personnel matters.
Sec. 105. Reports.
Sec. 106. Termination of commission.

TITLE II--FLOOD AND EROSION CONTROL AND MITIGATION

Sec. 201. Evaluation and prioritization.
Sec. 202. Flood and erosion control and mitigation.
Sec. 203. Mitigation.
Sec. 204. Administration.

TITLE III--AUTHORIZATION OF APPROPRIATIONS

Sec. 301. Authorization of appropriations.

SEC. 2. DEFINITIONS.

In this Act:
(1) Commission.--The term ``Commission'' means the Joint
Federal-State Floodplain and Erosion Mitigation Commission
for Alaska established by section 101(a).
(2) Alaska native.--The term ``Alaska Native'' has the
meaning given the term in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602).
(3) Alaska native village.--The term ``Alaska Native
village'' has the meaning given the term in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602).
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(5) State.--The term ``State'' means the State of Alaska.

TITLE I--JOINT FEDERAL-STATE FLOODPLAIN AND EROSION MITIGATION
COMMISSION FOR ALASKA

SEC. 101. ESTABLISHMENT OF COMMISSION.

(a) Establishment.--There is established a commission to be
known as the ``Joint Federal-State Floodplain and Erosion
Mitigation Commission for Alaska''.
(b) Membership.--
(1) Composition.--The Commission shall be composed of 7
members, of whom--
(A) 1 member shall be the Governor of the State, who shall
serve as Cochairperson;
(B) 3 members shall be appointed by the Governor of the
State, of whom--
(i) 1 member shall be a nonvoting ex officio Alaska Native;
and
(ii) at least 1 member shall represent city or borough
governments;
(C) 1 shall be appointed by the Secretary, shall be an
employee of the Department of the Interior, and shall serve
as Cochairperson;
(D) 1 member appointed by the Secretary of Agriculture
shall be an employee of the Natural Resources Conservation
Service of the Department of Agriculture; and
(E) 1 member, appointed by the Secretary of Defense, shall
be an employee of--
(i) the Department of Defense; or
(ii) the Corps of Engineers.
(2) Date of appointments.--The appointment of a member of
the Commission shall be made not later than 90 days after the
date of enactment of this Act.
(c) Appointment; Vacancies.--
(1) Appointment.--A member of the Commission shall serve at
the pleasure of the appointing authority.
(2) Vacancies.--A vacancy on the Commission--
(A) shall not affect the powers of the Commission; and
(B) shall be filled in the same manner as the original
appointment was made.
(d) Initial Meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold the initial meeting of the
Commission.
(e) Meetings.--Subject to section 102(a), the Commission
shall meet at the call of the Cochairpersons.
(f) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) Concurrence of Cochairpersons.--A decision of the
Commission shall require the concurrence of the
Cochairpersons.
(h) Principal Office.--The principal office of the
Commission shall be in the State of Alaska.

SEC. 102. DUTIES.

(a) Meetings.--For the first 2 years following the date of
enactment of this Act, the Commission shall meet not less
than 2 times per year.
(b) Study.--
(1) In general.--The Commission shall conduct a study of
all matters relating to--
(A) the feasibility of alternatives for flooding or erosion
assistance; and
(B) the development of a policy to guide infrastructure
investments in the Alaska Native villages, cities, and
boroughs that are most affected by flooding or erosion.
(2) Matters to be studied.--The matters to be studied by
the Commission include--
(A) flood and erosion processes;
(B) the planning needs associated with flood and erosion
processes, including identifying and making recommendations
concerning--
(i) specific flood and erosion circumstances that affect
life and property in the State;
(ii) land use regulations, including area standards for
designation of flood- and erosion-prone land;
(iii) uses to be made of flood- and erosion-prone land, and
how State and Federal grants, loans, and capital improvements
shall be invested in designated areas; and
(iv) how to regulate and implement the uses described in
clause (iii) on--

(I) land designated as an allotment for Alaska Native
people;
(II) land owned by an Alaska Native village corporation or
a regional village corporation under the Alaska Native Claims
Settlement Act (Public Law 92-203);
(III) land owned by the Federal or State government;
(IV) city and borough land; and
(V) other private land; and

(C) the establishment of procedures to obtain the view of
the public on land use planning needs, such as implementation
and enforcement of flood and erosion control and mitigation
solutions, including--
(i) increased hydrologic and other specialized data
collection; and
(ii) public hearings.
(c) Evaluation.--Not later than 120 days after the date of
enactment of this Act and annually thereafter, the Commission
shall evaluate specific flood and erosion circumstances that
affect life and property in the State.
(d) Recommendations.--The Commission shall develop
recommendations on--
(1) the development and implementation of flood and erosion
control and mitigation solutions in villages and communities
identified by the Commission as being most in need of those
solutions;
(2) programs and budgets of Federal and State agencies
responsible for administrating Federal and State floodplain
management authorities;
(3) the establishment of State erosion management
responsibilities and authorities;
(4) changes in law, policies, and programs that the
Commission determines are necessary or desirable to provide
an integrated Federal-State erosion and flood management
authority;
(5) improving coordination and consultation between the
Federal and State governments in making resource allocation
and flood and erosion control and mitigation decisions;
(6) ways to avoid conflict between the State and Alaska
Native people in the allocation of resources;
(7) ensuring that higher priority is given to achieving
long-term sustainability of communities from debilitating
flood and erosion losses than to short-term project and
infrastructure development needs, if the flood and erosion
control and mitigation solution is publicly funded; and
(8) ensuring that the economic and social well-being of
Alaska Native people and other residents of the State is not
compromised by a risk of erosion or flood that could be
avoided through long-term planning.

SEC. 103. ADMINISTRATION.

(a) Advisers.--To assist the Commission in carrying out
this Act, the Commission shall establish a committee of
technical advisers to the Commission with expertise in--
(1) coastal engineering;
(2) the adverse impact of flood and erosion management;
(3) rural community planning in the State;
(4) how city and borough governments are affected by
erosion;
(5) the relationship between State and local governments
and Alaska Native villages; and
(6) any other interest that the Commission determines is
appropriate.
(b) Records.--
(1) In general.--The Commission shall maintain complete
records of the activities of the Commission.
(2) Public inspection.--Records maintained under paragraph
(1) shall be available for public inspection.
(c) Hearings.--The Commission may hold such hearings, meet
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable
to carry out this title.
(d) Information From Federal Agencies.--

[[Page S237]]

(1) In general.--The Commission may secure directly from a
Federal agency such information as the Commission considers
necessary to carry out this title.
(2) Provision of information.--On request of a
Cochairperson of the Commission, the head of the agency shall
provide the information to the Commission.
(e) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property to carry out the
duties of the Commission.

SEC. 104. COMMISSION PERSONNEL MATTERS.

(a) Compensation of Members.--
(1) Non-federal employees.--A member of the Commission who
is not an officer or employee of the Federal Government shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties
of the Commission.
(2) Federal or state employees.--A member of the Commission
who is an officer or employee of the Federal or State
government shall serve without compensation in addition to
the compensation received for the services of the member as
an officer or employee of the Federal or State Government.
(b) Travel Expenses.--A member of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for an employee of an agency
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the
Commission.
(c) Staff.--
(1) In general.--The Cochairpersons of the Commission may,
without regard to the civil service laws (including
regulations), appoint and terminate an executive director and
such other additional personnel as are necessary to enable
the Commission to perform the duties of the Commission.
(2) Confirmation of executive director.--The employment of
an executive director shall be subject to confirmation by the
Commission.
(3) Compensation.--
(A) In general.--Except as provided in subparagraph (B),
the Cochairpersons of the Commission may fix the compensation
of the executive director and other personnel without regard
to the provisions of chapter 51 and subchapter III of chapter
53 of title 5, United States Code, relating to classification
of positions and General Schedule pay rates.
(B) Maximum rate of pay.--The rate of pay for the executive
director and other personnel shall not exceed the rate
payable for level V of the Executive Schedule under section
5316 of title 5, United States Code.
(d) Detail of Federal Government Employees.--
(1) In general.--An employee of the Federal Government may
be detailed to the Commission without reimbursement.
(2) Civil service status.--The detail of the employee shall
be without interruption or loss of civil service status or
privilege.
(e) Procurement of Temporary and Intermittent Services.--
The Cochairpersons of the Commission may procure temporary
and intermittent services in accordance with section 3109(b)
of title 5, United States Code, at rates for individuals that
do not exceed the daily equivalent of the annual rate of
basic pay prescribed for level V of the Executive Schedule
under section 5316 of that title.

SEC. 105. REPORTS.

(a) Interim Reports.--Not later than September 30 of each
year, the Commission shall submit to Congress, the Secretary,
and the legislature of the State--
(1) a report that describes the activities of the
Commission in the preceding calendar year; and
(2) a report that describes--
(A) any immediate need of the Commission; and
(B) any imminent threat action directive for the
coordinated response to erosion and flooding in the case of
an emergency.
(b) Final Report.--Not later than September 30, 2011, the
Commission shall submit to Congress, the Secretary, and the
legislature of the State a final report that describes--
(1) the activities and findings of the Commission; and
(2) the recommendations of the Commission for legislation
and administrative actions the Commission considers
appropriate.

SEC. 106. TERMINATION OF COMMISSION.

The Commission shall terminate on September 30, 2011.

TITLE II--FLOOD AND EROSION CONTROL AND MITIGATION

SEC. 201. EVALUATION AND PRIORITIZATION.

Not later than 120 days after the date of enactment of this
Act and annually thereafter, the Secretary, in consultation
with the Commission, shall evaluate and prioritize specific
flood and erosion circumstances that affect life and property
in the State.

SEC. 202. FLOOD AND EROSION CONTROL AND MITIGATION.

(a) In General.--Not later than September 15, 2006, the
Secretary, in consultation with the Commission, shall examine
the most cost-effective ways of carrying out flood and
erosion control and mitigation solutions devised by the
Commission for the 9 villages in the State identified in the
Government Accountability Office Report 04-142.
(b) Cost-effective Technology.--The Secretary, in
consultation with the Commission, shall implement a solution
described in subsection (a) using the most cost-effective
technology to protect life and property in the State,
including--
(1) movement of structures;
(2) nonstructural land management of erosion-prone areas;
and
(3) structural erosion control techniques.
(c) Grants to State and Local Governments.--For any fiscal
year after fiscal year 2006, the Secretary may implement a
solution described in subsection (a) through the State
government or a local government by making a grant to a
government using the remainder of any funds appropriated to
the Secretary for appropriate flood and erosion control and
mitigation solutions.
(d) Factors.--In implementing a solution under this
section, the Secretary, in consultation with the Commission,
shall consider--
(1) the design life of structural erosion control projects;
(2) the cost effectiveness of all erosion control projects;
and
(3) the availability of a revolving loan fund administered
by the State for relocation, elevation, and flood proofing of
flood- or erosion-prone structures.
(e) Federal Share.--The Federal share of the cost of
carrying out a project or activity under this section shall
be 75 percent.

SEC. 203. MITIGATION.

(a) In General.--The Secretary, in consultation with the
Commission, may take any action necessary to mitigate the
loss of structures and infrastructure from flood and erosion
using the most cost effective means practicable to provide
the longest-term benefit, including--
(1) relocation;
(2) elevation;
(3) flood proofing; and
(4) land management alternatives.

SEC. 204. ADMINISTRATION.

(a) Consultation.--The Secretary shall--
(1) consult with the Commission and appropriate Federal and
State agencies; and
(2) provide oversight authority, responsibility, and
directives to agencies developing relocation and flood and
erosion control and mitigation plans.
(b) Valid Existing Rights.--This subsection does not limit
any right recognized under the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.) that is in existence
at the time of the enactment of this Act.
(c) Authority of the Secretary.--This title does not impair
the authority of the Secretary to make contracts and grant
leases, permits, rights-of-way, and easements.

TITLE III--AUTHORIZATION OF APPROPRIATIONS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There is authorized to be appropriated for
each of fiscal years 2006 through 2011 such sums as are
necessary to carry out this Act, to remain available until
expended.
(b) Commission.--The Secretary may use not to exceed
$250,000 of the funds made available under subsection (a) for
the expenses of the Commission, including hiring any
necessary staff.
______

By Mr. INOUYE (for himself, Mr. Stevens, Ms. Cantwell, Mr. Burns,
Mr. Lautenberg, Ms. Snowe, Mr. Akaka, Ms. Murkowski, Mrs.
Clinton, Mr. Smith, and Mrs. Murray):
S. 50. A bill to authorize and strengthen the National Oceanic and
Atmospheric Administration's tsunami detection, forecast, warning, and
mitigation program, and for other purposes; to the Committee on
Commerce, Science, and Transportation.
Mr. INOUYE. Mr. President, today I introduce the Tsunami Preparedness
Act with my friend and distinguished colleague, Senator Ted Stevens, in
our new capacities as Co-Chair and Chair of the Commerce Committee. Our
bill today provides a scientific and technological response to minimize
the threats posed by tsunami to our own shores, and the coastal
communities of the world, as exemplified by the appalling scope of the
Indian Ocean tragedy. The bill builds on our work to establish a system
in the Pacific that is a model for the world, and also provides for its
expansion and improvement to repair gaps that have been identified
recently.
Protecting human life and property from natural disaster requires the
ability to reliably detect and forecast, the capacity to broadcast
warnings in a timely and informative manner, and the knowledge in
communities of how to respond and evacuate to safety. Above all,
however, it requires the willingness to invest resources to prepare for
a threat that is largely unseen and unpredictable until the last
moment, when a monstrous wave actually strikes.

[[Page S238]]

The people of Alaska and Hawaii have long memories of the threat of
tsunami. Perhaps it is because Hawaii sits in a position of terrible
vulnerability in the Pacific Ocean, which is the site of 85 percent of
the world's tsunami activity, and because Alaska, perched on the
northern edge of the Pacific's Ring of Fire, suffers frequent tsunami-
generating earthquakes.
In order to protect local communities, Hawaii established in 1949 a
tsunami warning center, following a tragic Hilo tsunami. In response to
the Good Friday earthquake and tsunami of 1964, which accounted for 90
percent of the deaths in the state that year, Alaska followed suit by
establishing an observatory in Palmer, Alaska, in 1967. Collaborations
between the two centers and other partners led to a nascent capacity
for predicting and warning coastal communities about potential tsunami
in Alaska and Hawaii and beyond.
As we came to understand the broader threat that tsunami posed, Ted
Stevens and I worked together to pass legislation in 1994 to direct the
National Oceanic and Atmospheric Administration (NOAA) to develop a
Tsunami Hazard Mitigation Program.
We are pleased to report that the program has laid the foundation for
tsunami preparedness. Through its Pacific Marine Environmental
Laboratory (PMEL), NOAA has developed Deep ocean Assessment and
Reporting of Tsunami--or ``DART''--buoys, which accurately measure the
subtle variations in the ocean's sea level caused by tsunami traveling
over open water. With these measurements, as well as readings from
coastal gauges, the mathematical models PMEL and others have developed
can forecast tsunami direction, speed, and inundation with astonishing
accuracy. Although the worldwide network of seismic sensors operated by
the U.S. Geological Survey (USGS) provides excellent notice of
earthquakes with the potential to generate tsunami, the DART buoys
represent a next-generation approach to detection and forecasting of
tsunami that will form the backbone of our domestic preparedness.
Interpreting these data and issuing warnings are Hawaii's Pacific
Tsunami Warning Center, and Alaska's West Coast/Alaska Tsunami Warning
Center, which jointly have the capacity to cover our domestic shores,
and, at the same time, to reach out to all cooperating nations of the
world.
Forecasting and warning networks, however, depend on ears who know
how to respond, and so the Tsunami Hazard Mitigation Program has
partnered with states and local authorities to produce inundation
mapping, develop evacuation routes, and conduct tsunami education. As a
result of much hard work, fifteen counties up and down the west coast,
and in Alaska and Hawaii have become national and world leaders by
becoming ``tsunami ready.''
The appalling scope of the Indian Ocean tragedy illustrates the
importance and necessity of our work of the past ten years, and with
stark clarity, we can see that despite our best efforts, much remains
to be done. Now, as before, Senator Stevens and I have come together to
lead the charge toward national and international tsunami preparedness.
Our legislation today formally authorizes NOAA to establish, operate,
and maintain a dependable national tsunami warning system that would
provide maximum tsunami detection capability for the nation. The system
would build on the model established in the Pacific, and provide for
its repair, expansion and modernization by the close of calendar year
2007. The system would include four components: an expanded and
upgraded detection and warning system, a federal-state tsunami hazard
mitigation program, a tsunami research program, and a modernization and
upgrade program. In addition, the bill would direct NOAA to provide any
necessary technical or other assistance to international efforts to
establish regional systems in other parts of the world, including the
Indian Ocean.
The detection and warning system established by the bill would cover
the Pacific Ocean region, as well as the Atlantic-Caribbean-Gulf of
Mexico region, and incorporate a variety of seismic and tsunami
detection technologies, including deep ocean buoys, as well as
encompass tsunami warning centers charged with collecting and analyzing
the data and distributing warnings--including the existing Pacific
Tsunami Warning Center in Hawaii and the West Coast/Alaska Tsunami
Warning Center in Alaska, as well as any others deemed necessary by the
NOAA Administrator.
The bill also formally authorizes NOAA's Tsunami Hazard Mitigation
Program and its community-based tsunami hazard mitigation program to
improve tsunami preparedness of at-risk areas. The bill directs a
Federal-State coordinating committee for the program, consisting
(FEMA), the United States Geological Survey (USGS), the National
Science Foundation (NSF), and affected coastal states and territories,
to work together to improve inundation mapping, community outreach and
education, and promote and integrate tsunami warning and mitigation
measures, including rescue and recovery guidelines. The program would
provide grants to states to ensure the program elements are implemented
in coastal communities.
The bill also requires NOAA to establish, along with other agencies
and academic institutions, a tsunami research program to continuously
improve detection, prediction, communication, and mitigation science
and technology to support tsunami forecasts and warnings. This program
would also focus on the potential for improved communications systems
for tsunami and other hazard warnings, including telephones, wireless
and satellite technology, the Internet, television and radio, and any
innovative combination of these technologies.
A critical component of the bill requires NOAA to upgrade and
modernize the U.S. tsunami detection system by December 2007, as well
as provide accountability for the long-term operation of the system.
NOAA is required to repair and upgrade the system, ensuring deployment
of existing deep ocean detection buoys and related detection equipment,
as well as notify Congress upon any equipment or system failures that
will impair regional detection, and of significant contractor failures
or delays. In addition, the bill calls for the National Academy of
Sciences to review the system for further modernization
recommendations.
The bill recognizes the need for global coordination on tsunami
preparedness, requiring NOAA, and the interagency coordinating
committee of the U.S. Tsunami Hazard Mitigation Program, to provide
technical assistance and advice to international entities as part of an
international effort to develop a fully functional global tsunami
warning system.
Finally, the bill authorizes $35 million annually for six years to
support these activities. Through this legislation, the work Senator
Stevens and I started over ten years ago will step up to the next
level, and provide our nation with coverage and protection that it
needs, while fulfilling our duties as citizens of the global community.
I ask unanimous consent that the full text of the bill be printed in
the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 50

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Tsunami Preparedness Act''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--The Congress finds the following:
(1) Tsunami are a series of large waves of long wavelength
created by the displacement of water by violent undersea
disturbances such as earthquakes, volcanic eruptions,
landslides, explosions, and the impact of cosmic bodies.
(2) Tsunami have caused, and can cause in the future,
enormous loss of human life, injury, destruction of property,
and economic and social disruption in coastal and island
communities.
(3) While 85 percent of tsunami occur in the Pacific Ocean,
and coastal and island communities in this region are the
most vulnerable to the destructive results, tsunami can occur
at any point in any ocean or related body of water where
there are earthquakes, volcanoes, or any other activity that
displaces a large volume of water.
(4) A number of States and territories are subject to the
threat of tsunamis, including Alaska, California, Hawaii,
Oregon, Washington, American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, Puerto Rico, and the U.S.
Virgin Islands.

[[Page S239]]

(5) The National Oceanic and Atmospheric Administration is
responsible for maintaining a tsunami detection and warning
system for the Nation, issuing warnings to United States
communities at risk from tsunami, and preparing those
communities to respond appropriately, through--
(A) the Pacific Tsunami Warning Center in Ewa Beach,
Hawaii, which serves as a warning center for Hawaii, all
other United States assets in the Pacific, and Puerto Rico;
(B) the Alaska/West Coast Tsunami Warning Center in Palmer,
Alaska, which is responsible for issuing warnings for Alaska,
British Columbia, California, Oregon, and Washington;
(C) the Federal-State national tsunami hazard mitigation
program;
(D) a tsunami research and assessment program, including
programs conducted by the Pacific Marine Environmental
Laboratory;
(E) the TsunamiReady Program, which educates and prepares
communities for survival before and during a tsunami; and
(F) other related programs.
(6) The National Oceanic and Atmospheric Administration
also represents the United States as a member of the
International Coordination Group for the Tsunami Warning
System in the Pacific, administered by the Intergovernmental
Oceanographic Commission of UNESCO, for which the Pacific
Tsunami Warning Center acts as the operational center and
shares seismic and water level information with 26 member
states, and maintains UNESCO's International Tsunami
Information Center, in Honolulu, Hawaii, which provides
technical and educational assistance to member states.
(7) The Tsunami Warning Centers receive seismographic
information from the Global Seismic Network, an international
system of earthquake monitoring stations, from the United
States Geological Survey National Earthquake Information
Center, and from cooperative regional seismic networks, and
use these data to issue tsunami warnings and integrate the
information with data from their own tidal and deep ocean
monitoring stations, to cancel or verify the existence of a
damaging tsunami. Warnings are disseminated by the National
Oceanic and Atmospheric Administration to State emergency
operation centers.
(8) Current gaps in the International Tsunami Warning
System, such as the lack of regional warning systems in the
Indian Ocean, the southwest Pacific Ocean, Central and South
America, the Mediterranean Sea, and Caribbean, pose risks for
coastal and island communities.
(9) The tragic and extreme loss of life experienced by
countries in the Indian Ocean following the magnitude 9.0
earthquake and resulting tsunami in that region on December
26, 2004, illustrates the destructive consequences which can
occur in the absence of an effective tsunami warning and
notification system.
(10) An effective tsunami warning and notification system
is part of a multi-hazard disaster warning and preparedness
program and requires near real-time seismic, sea level, and
oceanographic data, high-speed data analysis capabilities, a
high-speed tsunami warning communication system, a sustained
program of education and risk assessment, and an established
local communications infrastructure for timely and effective
dissemination of warnings to activate evacuation of tsunami
hazard zones.
(11) The Tsunami Warning System for the Pacific is a model
for other regions of the world to adopt, and can be expanded
and modernized to increase detection, forecast, and warning
capabilities for vulnerable states and territories, reduce
the incidence of costly false alarms, improve reliability of
measurement and assessment technology, and increase community
preparedness.
(12) Tsunami warning and preparedness capability can be
developed in other vulnerable areas of the world, such as the
Indian Ocean, by identifying tsunami hazard zones, educating
populations, developing alert and notification communications
infrastructure, and by deploying near real-time tsunami
detection sensors and gauges, establishing hazard
communication and warning networks, expanding global
monitoring of seismic activity, encouraging the increased
exchange of seismic and tidal data between nations, and
improving international coordination when a tsunami is
detected.
(13) UNESCO has recognized the need to establish tsunami
warning systems for regions beyond the Pacific Basin that are
vulnerable to tsunami, including the Indian Ocean, and has
convened a working group to lead an effort to expand the
International Tsunami Warning System in the Pacific to such
vulnerable regions.
(14) The international community and all vulnerable nations
should take coordinated efforts to establish and participate
in regional tsunami warning systems and other hazard warnings
systems developed to meet the goals of the United Nations
International Strategy for Disaster Reduction.
(b) Purposes.--The purposes of this Act are--
(1) to improve tsunami detection, forecast, warnings,
notification, preparedness, and mitigation in order to
protect life and property both in the United States and
elsewhere in the world;
(2) to improve and modernize the existing Pacific Tsunami
Warning System to increase coverage, reduce false alarms and
increase accuracy of forecasts and warnings, and expand
detection and warning systems to include other vulnerable
States and United States territories, including the
Caribbean/Atlantic/Gulf region;
(3) to increase and accelerate mapping, modeling, research,
assessment, education, and outreach efforts in order to
improve forecasting, preparedness, mitigation, response, and
recovery of tsunami and related coastal hazards;
(4) to provide technical and other assistance to speed
international efforts to establish regional tsunami warning
systems in vulnerable areas worldwide, including the Indian
Ocean; and
(5) to improve Federal, State, and international
coordination for tsunami and other coastal hazard warnings
and preparedness.

SEC. 3. TSUNAMI DETECTION AND WARNING SYSTEM.

(a) In General.--The Administrator of the National Oceanic
and Atmospheric Administration shall operate regional tsunami
detection and warning systems for the Pacific Ocean region
and for the Atlantic Ocean, Caribbean, and Gulf of Mexico
region that will provide maximum detection capability for
United States coastal tsunami.
(b) System Requirements.--
(1) Pacific system.--The Pacific tsunami warning system
shall cover the entire Pacific Ocean area, including the
Western Pacific, the Central Pacific, the North Pacific, the
South Pacific, and the East Pacific and Arctic areas.
(2) Atlantic, caribbean, and gulf of mexico system.--The
Atlantic, Caribbean, and Gulf system shall cover areas of the
Atlantic Ocean, Caribbean Sea, and the Gulf of Mexico that
the Administrator determines--
(A) to be geologically active, or to have significant
potential for geological activity; and
(B) to pose measurable risks of tsunamis for States along
the coastal areas of the Atlantic Ocean or the Gulf of
Mexico.
(3) Components.--The systems shall--
(A) utilize an array of deep ocean detection buoys,
including redundant and spare buoys;
(B) include an associated tide gauge and water level system
designed for long-term continuous operation tsunami
transmission capability;
(C) provide for establishment of a cooperative effort
between the National Oceanic and Atmospheric Administration
and the United States Geological Survey under which the
Geological Survey provides rapid and reliable seismic
information to the Administration from international and
domestic seismic networks;
(D) provide for information and data processing through the
tsunami warning centers established under subsection (c);
(E) be integrated into United States and global ocean and
earth observing systems; and
(F) provide a communications infrastructure for at-risk
tsunami communities that supports rapid and reliable alert
and notification to the public such as the National Oceanic
and Atmospheric Administration weather radio and the All
Hazard Alert Broadcasting Radio.
(c) Tsunami Warning Centers.--
(1) In general.--The Administrator shall establish tsunami
warning centers to provide a link between the detection and
warning system and the tsunami hazard mitigation program
established under section 4 including--
(A) a Pacific Tsunami Warning Center in Hawaii;
(B) a West Coast and Alaska Tsunami Warning Center in
Alaska; and
(C) any additional warning centers determined by the
Administrator to be necessary.
(2) Responsibilities.--The responsibilities of each tsunami
warning center shall include--
(A) continuously monitoring data from seismological, deep
ocean, and tidal monitoring stations;
(B) evaluating earthquakes that have the potential to
generate tsunami;
(C) evaluating deep ocean buoy data and tidal monitoring
stations for indications of tsunami resulting from sources
other than earthquakes; and
(D) disseminating information and warning bulletins
appropriate for local and distant tsunamis to government
agencies and the public and alerting potentially impacted
coastal areas for evacuation.
(d) Transfer of Technology; Maintenance and Upgrades.--In
carrying out this section, the Administrator shall--
(1) promulgate specifications and standards for forecast,
detection, and warning systems, including detection
equipment;
(2) develop and execute a plan for the transfer of
technology from ongoing research to long-term operations;
(3) ensure that detection equipment is maintained in
operational condition to fulfill the forecasting, detection
and warning requirements of the regional tsunami detection
and warning systems;
(4) obtain, to the greatest extent practicable, priority
treatment in budgeting for, acquiring, transporting, and
maintaining weather sensors, tide gauges, water level gauges,
and tsunami buoys incorporated into the system including
obtaining ship time; and
(5) ensure integration of the tsunami detection system with
other United States and global ocean and coastal observation
systems, the global earth observing system of systems, global
seismic networks, and the Advanced National Seismic System.
(e) Certification.--Amounts appropriated for any fiscal
year pursuant to section 8 to carry out this section may not
be obligated

[[Page S240]]

or expended for the acquisition of services for construction
or deployment of tsunami detection equipment unless the
Administrator certifies in writing to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Science within 60 calendar days
after the date on which the President submits the Budget of
the United States for that fiscal year to the Congress that--
(1) each contractor for such services has met the
requirements of the contract for such construction or
deployment;
(2) the equipment to be constructed or deployed is capable
of becoming fully operational without the obligation or
expenditure of additional appropriated funds; and
(3) the Administrator does not reasonably foresee
unanticipated delays in the deployment and operational
schedule specified in the contract.

SEC. 4. TSUNAMI HAZARD MITIGATION PROGRAM.

(a) In General.--The Administrator of the National Oceanic
and Atmospheric Administration is authorized to conduct a
community-based tsunami hazard mitigation program to improve
tsunami preparedness of at-risk areas.
(b) Coordinating Committee.--In conducting the program, the
Administrator shall establish a coordinating committee
comprising representatives of--
(1) the National Oceanic and Atmospheric Administration;
(2) the United States Geological Survey;
(3) the Federal Emergency Management Agency;
(4) the National Science Foundation; and
(5) affected coastal States and territories.
(c) Program Components.--The program shall--
(1) improve the quality and extent of inundation mapping,
including assessment of vulnerable inner coastal areas;
(2) promote and improve community outreach and education
networks and programs to ensure community readiness,
including the development of multi-hazard risk and
vulnerability assessment training and decision support tools,
implementation of technical training and public education
programs, and provide for certification of prepared
communities;
(3) integrate tsunami preparedness and mitigation programs
into ongoing hazard warning and risk management programs in
affected areas including the National Response Plan;
(4) promote the adoption of tsunami warning and mitigation
measures by Federal, State, tribal, and local governments and
non-governmental entities through a grant program for
training, development of guidelines, and other purposes;
(5) through the Federal Emergency Management Agency as the
lead agency, develop tsunami specific rescue and recovery
guidelines for the National Response Plan, including long-
term mitigation measures, educational programs to discourage
development in high-risk areas, and use of remote sensing and
other technology in rescue and recovery operations;
(6) require budget coordination, through the
Administration, to carry out the purposes of this Act and to
ensure that participating agencies provide necessary funds
for matters within their respective areas of authority and
expertise; and
(7) provide for periodic external review of the program and
for inclusion of the results of such reviews in the report
required by section 6(c).

SEC. 5. TSUNAMI RESEARCH PROGRAM.

(a) Establishment.--The Administrator of the National
Oceanic and Atmospheric Administration shall, in coordination
with other agencies and academic institutions, establish a
tsunami research program to develop detection, prediction,
communication, and mitigation science and technology that
supports tsunami forecasts and warnings, including advanced
sensing techniques, information and communication technology,
data collection, analysis and assessment for tsunami tracking
and numerical forecast modeling that will--
(1) help determine--
(A) whether an earthquake or other seismic event will
result in a tsunami; and
(B) the likely path, severity, duration, and travel time of
a tsunami;
(2) develop techniques and technologies that may be used to
communicate tsunami forecasts and warnings as quickly and
effectively as possible to affected communities;
(3) develop techniques and technologies to support
evacuation products, including real-time notice of the
condition of critical infrastructure along tsunami evacuation
routes for public officials and first responders; and
(4) develop techniques for utilizing remote sensing
technologies in rescue and recovery operations.
(b) Communications Technology.--The Administrator, in
consultation with in consultation with the Assistant
Secretary of Commerce for Communications and Information and
the Federal Communications Commission, shall investigate the
potential for improved communications systems for tsunami and
other hazard warnings by incorporating into the existing
network a full range of options for providing those warnings
to the public, including, as appropriate--
(1) telephones, including special alert rings;
(2) wireless and satellite technology, including cellular
telephones and pagers;
(3) the Internet, including e-mail;
(4) automatic alert televisions and radios;
(5) innovative and low-cost combinations of such
technologies that may provide access to remote areas; and
(6) other technologies that may be developed.

SEC. 6. TSUNAMI SYSTEM UPGRADE AND MODERNIZATION.

(a) System Upgrades.--The Administrator of the National
Oceanic and Atmospheric Administration shall--
(1) authorize and direct the immediate repair of existing
deep ocean detection buoys and related components of the
system;
(2) ensure the deployment of an array of deep ocean
detection buoys in the regions described in section 3(a) of
this Act;
(3) ensure expansion or upgrade of the tide gauge network
in the regions described in section 3(a); and
(4) complete the upgrades not later than December 31, 2007.
(b) Congressional Notifications.--The Administrator shall
notify the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Science of--
(1) impaired regional detection coverage due to equipment
or system failures; and
(2) significant contractor failures or delays in completing
work associated with the tsunami detection and warning
system.
(c) Annual Report.--The Administrator shall transmit an
annual report to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Science the status of the tsunami detection and warning
system, including accuracy, false alarms, equipment failures,
improvements over the previous year, and goals for further
improvement (or plans for curing failures) of the system, as
well as progress and accomplishments of the national tsunami
hazard mitigation program.
(d) External Review.--The National Academy of Science shall
review the tsunami detection, forecast, and warning system
operated by the National Oceanic and Atmospheric
Administration under this Act to assess further modernization
and coverage needs, as well as long-term operational
reliability issues, taking into account measures implemented
under this Act, and transmit a report containing its
recommendations, including an estimate of the costs of
implementing those recommendations, to the Senate Committee
on Commerce, Science, and Transportation and the House of
Representatives Committee on Science within 24 months after
the date of enactment of this Act.

SEC. 7. GLOBAL TSUNAMI WARNING AND MITIGATION NETWORK.

(a) International Tsunami Warning System.--The
Administrator of the National Oceanic and Atmospheric
Administration, in coordination with other members of the
United States Interagency Committee of the National Tsunami
Mitigation Program, shall provide technical assistance and
advice to the Intergovernmental Oceanographic Commission of
UNESCO, the World Meteorological Organization, and other
international entities, as part of international efforts to
develop a fully functional global tsunami warning system
comprised of regional tsunami warning networks, modeled on
the International Tsunami Warning System of the Pacific.
(b) Detection Equipment; Technical Advice.--In carrying out
this section, the Administrator--
(1) shall give priority to assisting nations in identifying
vulnerable coastal areas, creating inundation maps, obtaining
or designing real-time detection and reporting equipment, and
establishing communication and warning networks and contact
points in each vulnerable nation; and
(2) may establish a process for transfer of detection and
communication technology to affected nations for the purposes
of establishing the international tsunami warning system.
(c) Data-Sharing Requirement.--The Administrator may not
provide assistance under this section for any region unless
all affected nations in that region participating in the
tsunami warning network agree to share relevant data
associated with the development and operation of the network.
(d) Receipt of International Reimbursement Authorized.--The
Administrator may accept payment to, or reimbursement of, the
National Oceanic and Atmospheric Administration in cash or in
kind from international organizations and foreign
authorities, or payment or reimbursement made on behalf of
such an authority, for expenses incurred by the Administrator
in carrying out any activity under this Act. Any such
payments or reimbursements shall be considered a
reimbursement to the appropriated funds of the
Administration.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the
Administrator of the National Oceanic and Atmospheric
Administration $35,000,000 for each of fiscal years 2006
through 2012 to carry out this Act.

Mr. President, the Tsunami Preparedness Act, S. 50, will authorize
much of the work that Senator Inouye and I have done on the
Appropriations Committee. It establishes a National Tsunami Hazard
Mitigation Program in the National Oceanic and Atmospheric
Administration. The recent

[[Page S241]]

events in Indonesia reminds us all how critical it is to have a strong
detection network and warning system for coastal communities. Currently
there are 15 communities from Alaska, the west coast and Hawaii that
are ``Tsunami Ready'', a certification by NOAA that the community has a
communication and coordination plan in case of a Tsunami event.
The Tsunami Preparedness Act provides the essential component of any
warning system--a program for outreach and education to inform
potentially Tsunami-impacted communities and for these coastal areas to
plan accordingly.
I have worked closely with Senator Inouye on this legislation and it
is an example of how we plan to coordinate on bills from the Commerce
Committee. This legislation also represents the importance of tsunami
detection and early warning for our States, both of which have
experienced deadly tsunamis in the past and are ever vigilant to remain
prepared for future possible events.

The administration released its plan for an improved tsunami
monitoring system on January 14, 2005, committing $37.5 million to
improving early detection and warning of tsunami events. The
administration's proposal is a good one and this bill will build on
many of the commitments made in their plan. In addition, the bill
improves the federal coordination and dissemination of tsunami
information and research. It establishes a multi-agency task force
consisting of representatives from NOAA, FEMA, USGS, NSF and
potentially impacted coastal states and territories.
The tsunami preparedness act will expand tsunami research, and
consistently upgrade and maintain the improved system, which would
cover the Pacific and Atlantic-Caribbean-Gulf of Mexico regions. In an
effort to lend help internationally, the bill also directs NOAA to
assist other countries that could be impacted by tsunamis and build on
the United States efforts to establish an international earth observing
system.
It is a pleasure to work with my good friend from Hawaii on this
important legislation.
______

By Mr. INOUYE:
S. 58. A bill to amend title 10, United States Code, to permit former
members of the Armed Forces who have a service-connected disability
rated as total to travel on military aircraft in the same manner and to
the same extent as retired members of the Armed Forces are entitled to
travel on such aircraft; to the Committee on Armed Services.
Mr. INOUYE. Mr. President, today I am reintroducing a bill which is
of great importance to a group of patriotic Americans. This legislation
is designed to extend space-available travel privileges on military
aircraft to those who have been totally disabled in the service of our
country.
Currently, retired members of the Armed Services are permitted to
travel on a space-available basis on non-scheduled military flights
within the continental United States, and on scheduled overseas flights
operated by the Military Airlift Command. My bill would provide the
same benefits for veterans with 100 percent service-connected
disabilities.
We owe these heroic men and women who have given so much to our
country a debt of gratitude. Of course, we can never repay them for the
sacrifices they have made on behalf of our Nation, but we can surely
try to make their lives more pleasant and fulfilling. One way in which
we can help is to extend military travel privileges to these
distinguished American veterans. I have received numerous letters from
all over the country attesting to the importance attached to this issue
by veterans. Therefore, I ask that my colleagues show their concern and
join me in saying ``thank you'' by supporting this legislation.
I ask unanimous consent that the text of my bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 58

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. TRAVEL ON MILITARY AIRCRAFT OF CERTAIN DISABLED
FORMER MEMBERS OF THE ARMED FORCES.

(a) In General.--Chapter 53 of title 10, United States
Code, is amended by inserting after section 1060b the
following new section:

``Sec. 1060c. Travel on military aircraft: certain disabled
former members of the armed forces

``The Secretary of Defense shall permit any former member
of the armed forces who is entitled to compensation under the
laws administered by the Secretary of Veterans Affairs for a
service-connected disability rated as total to travel, in the
same manner and to the same extent as retired members of the
armed forces, on unscheduled military flights within the
continental United States and on scheduled overseas flights
operated by the Air Mobility Command. The Secretary of
Defense shall permit such travel on a space-available
basis.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1060b the following new item:

``1060c. Travel on military aircraft: certain disabled former members
of the armed forces.''.
______

By Mr. INOUYE:
S. 59. A bill to amend title 10, United States Code, to authorize
certain disabled former prisoners of war to use Department of Defense
commissary and exchange stores; to the Committee on Armed Services.
Mr. INOUYE. Mr. President, today I am reintroducing legislation to
enable those former prisoners of war who have been separated honorably
from their respective services and who have been rated as having a 30
percent service-connected disability to have the use of both the
military commissary and post exchange privileges. While I realize it is
impossible to adequately compensate one who has endured long periods of
incarceration at the hands of our Nation's enemies, I do feel this
gesture is both meaningful and important to those concerned because it
serves as a reminder that our Nation has not forgotten their
sacrifices.
I ask unanimous consent that the text of my bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 59

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. USE OF COMMISSARY AND EXCHANGE STORES BY CERTAIN
DISABLED FORMER PRISONERS OF WAR.

(a) In General.--Chapter 54 of title 10, United States
Code, is amended by inserting after section 1064 the
following new section:

``Sec. 1064a. Use of commissary and exchange stores by
certain disabled former prisoners of war

``(a) In General.--Under regulations prescribed by the
Secretary of Defense, former prisoners of war described in
subsection (b) may use commissary and exchange stores.
``(b) Covered Individuals.--Subsection (a) applies to any
former prisoner of war who--
``(1) separated from active duty in the armed forces under
honorable conditions; and
``(2) has a service-connected disability rated by the
Secretary of Veterans Affairs at 30 percent or more.
``(c) Definitions.--In this section:
``(1) The term `former prisoner of war' has the meaning
given that term in section 101(32) of title 38.
``(2) The term `service-connected' has the meaning given
that term in section 101(16) of title 38.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1064 the following new item:

``1064a. Use of commissary and exchange stores by certain disabled
former prisoners of war.''.
______

By Mr. FEINGOLD:
S. 60. A bill to repeal the provision of law that provides automatic
pay adjustments for Members of Congress; to the Committee on Homeland
Security and Governmental Affairs.
Mr. FEINGOLD. Mr. President, I am pleased to reintroduce legislation
that would put an end to automatic cost-of-living adjustments for
congressional pay.
As I have noted when I raised this issue in past years, it is an
unusual thing to have the power to raise our own pay. Most of our
constituents do not have that power. And that this power is so unusual
is good reason for the Congress to exercise that power openly, and to
exercise it subject to regular procedures that include debate,
amendment, and a vote on the record.
I regret to say, that current law permits Congress to avoid that
public debate and vote. All that is necessary for Congress to get a pay
raise is that

[[Page S242]]

nothing be done to stop it. The annual pay raise takes effect unless
Congress acts.
This stealth pay raise mechanism began with a change Congress enacted
in the Ethics Reform Act of 1989. In section 704 of that act, Members
of Congress voted to make themselves entitled to an annual raise equal
to half a percentage point less than the employment cost index, one
measure of inflation.
It is true, that on occasion Congress has voted to deny itself the
raise, and the traditional vehicle for the pay raise vote is the
Treasury appropriations bill. But that vehicle is not always made
available to those who want a public debate and vote on the matter.
Just last year, for example, the Treasury appropriations bill was
slipped into the massive Omnibus Appropriations conference report, and
thus it was completely shielded from amendment. Senators were
effectively prevented from offering an amendment to force an up or down
vote on the annual pay raise. And that situation was not unique.
Getting a vote on the annual congressional pay raise is a haphazard
affair at best, and it should not be that way. The burden should not be
on those who seek a public debate and recorded vote on the Member pay
raise. On the contrary, Congress should have to act if it decides to
award itself a hike in pay. This process of pay raises without
accountability must end.
This issue is not a new question. It was something that our Founders
considered from the beginning of our Nation. In August 1789, as part of
the package of 12 amendments advocated by James Madison that included
what has become our Bill of Rights, the House of Representatives passed
an amendment to the Constitution providing that Congress could not
raise its pay without an intervening election. On September 9, 1789,
the Senate passed that amendment. In late September 1789, Congress
submitted the amendments to the States.
Although the amendment on pay raises languished for two centuries, in
the 1980s, a campaign began to ratify it. While I was a member of the
Wisconsin State Senate, I was proud to help ratify the amendment. Its
approval by the Michigan Legislature on May 7, 1992, gave it the needed
approval by three-fourths of the States.
The 27th amendment to the Constitution now states: ``No law, varying
the compensation for the services of the senators and representatives,
shall take effect, until an election of representatives shall have
intervened.''
I try to honor that limitation in my own practices. In my own case,
throughout my 6-year term, I accept only the rate of pay that Senators
receive on the date on which I was sworn in as a Senator. And I return
to the Treasury any additional income Senators get, whether from a
cost-of-living adjustment or a pay raise we vote for ourselves. I don't
take a raise until my bosses, the people of Wisconsin, give me one at
the ballot box. That is the spirit of the 27th amendment. The stealth
pay raises like the one that Congress allowed last year, at a minimum,
certainly violate the spirit of that amendment.
This practice must end. This bill will end it. Senators and
Congressmen should have to vote up-or-down to raise congressional pay.
My bill would simply require us to vote in the open. We owe our
constituents nothing less.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 60

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. ELIMINATION OF AUTOMATIC PAY ADJUSTMENTS FOR
MEMBERS OF CONGRESS.

(a) In General.--Paragraph (2) of section 601(a) of the
Legislative Reorganization Act of 1946 (2 U.S.C. 31) is
repealed.
(b) Technical and Conforming Amendments.--Section 601(a)(1)
of such Act is amended--
(1) by striking ``(a)(1)'' and inserting ``(a)'';
(2) by redesignating subparagraphs (A), (B), and (C) as
paragraphs (1), (2), and (3), respectively; and
(3) by striking ``as adjusted by paragraph (2) of this
subsection'' and inserting ``adjusted as provided by law''.
(c) Effective Date.--This section shall take effect on
February 1, 2007.
______

By Mr. INOUYE:
S. 61. A bill to amend title XVIII of the Social Security Act to
provide improved reimbursement for clinical social worker services
under the medicare program; to the Committee on Finance.
Mr. INOUYE. Mr. President, today I am introducing legislation to
amend Title XVIII of the Social Security Act to correct discrepancies
in the reimbursement of clinical social workers covered through
Medicare, Part B. The three proposed changes contained in this
legislation clarify the current payment process for clinical social
workers and establish a reimbursement methodology for the profession
that is similar to other health care professionals reimbursed through
the Medicare program.
First, this legislation sets payment for clinical social worker
services according to a fee schedule established by the Secretary.
Second, it explicitly states that services and supplies furnished by a
clinical social worker are a covered Medicare expense, just as these
services are covered for other mental health professionals in Medicare.
Third, the bill allows clinical social workers to be reimbursed for
services provided to a client who is hospitalized.
Clinical social workers are valued members of our health care
provider network. They are legally regulated in every state of the
nation and are recognized as independent providers of mental health
care throughout the health care system. It is time to correct the
disparate reimbursement treatment of this profession under Medicare.
I ask unanimous consent that the text of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 61

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Equity for Clinical Social
Workers Act of 2005''.

SEC. 2. IMPROVED REIMBURSEMENT FOR CLINICAL SOCIAL WORKER
SERVICES UNDER MEDICARE.

(a) In General.--Section 1833(a)(1)(F)(ii) of the Social
Security Act (42 U.S.C. 1395l(a)(1)(F)(ii)) is amended to
read as follows: ``(ii) the amount determined by a fee
schedule established by the Secretary,''.
(b) Definition of Clinical Social Worker Services
Expanded.--Section 1861(hh)(2) of the Social Security Act (42
U.S.C. 1395x(hh)(2)) is amended by striking ``services
performed by a clinical social worker (as defined in
paragraph (1))'' and inserting ``such services and such
services and supplies furnished as an incident to such
services performed by a clinical social worker (as defined in
paragraph (1))''.
(c) Clinical Social Worker Services Not to Be Included in
Inpatient Hospital Services.--Section 1861(b)(4) of the
Social Security Act (42 U.S.C. 1395x(b)(4)) is amended by
striking ``and services'' and inserting ``clinical social
worker services, and services''.
(d) Treatment of Services Furnished in Inpatient Setting.--
Section 1832(a)(2)(B)(iii) of the Social Security Act (42
U.S.C. 1395k(a)(2)(B)(iii)) is amended by striking ``and
services'' and inserting ``clinical social worker services,
and services''.
(e) Effective Date.--The amendments made by this section
shall apply to payments made for clinical social worker
services furnished on or after January 1, 2006.
______

By Mr. INOUYE:
S. 62. A bill for the relief of Jim K. Yoshida; to the Committee on
Veterans' Affairs.
Mr. INOUYE. Mr. President, today I am introducing a private relief
bill on behalf of Jim K. Yoshida, to obtain recognition of his service
with the U.S. military in Korea so that he may obtain veteran's status.
Mr. President, I ask unanimous consent that the text of my bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 62

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. VETERAN STATUS.

(a) Entitlement to Status.--Notwithstanding any other
provision of law, Jim K. Yoshida of Honolulu, Hawaii, is
deemed to be a veteran for the purposes of all laws
administered by the Secretary of Veterans Affairs.
(b) Treatment of Service.--Notwithstanding any other
provision of law, the service of Jim K. Yoshida of Honolulu,
Hawaii, as a volunteer member of the United

[[Page S243]]

States Army during the period beginning on July 2, 1950, and
ending on January 17, 1951, shall be deemed to be active
military service from which Jim K. Yoshida was discharged
under honorable conditions for the purposes of all laws
administered by the Secretary of Veterans Affairs.
(c) Prospective Applicability.--No benefits may be paid or
otherwise provided to Jim K. Yoshida of Honolulu, Hawaii, by
reason of the enactment of this Act with respect to any
period before the date of the enactment of this Act.
______

By Mr. BINGAMAN (for himself and Mr. Domenici):
S. 63. A bill to establish the Northern Rio Grande National Heritage
Area in the State of New Mexico, and for other purposes; to the
Committee on Energy and Natural Resources.
Mr. BINGAMAN. Mr. President, I rise today to reintroduce legislation
to establish the Northern Rio Grande National Heritage Area in northern
New Mexico. I am pleased that Senator Domenici is again joining me in
sponsoring this bill. The Northern Rio Grande National Heritage Area
will be established as part of a collaborative effort between local
residents, Indian tribes, businesses and local governments, who are
working together to preserve the area.
By establishing the Northern Rio Grande National Heritage Area, I
hope to commemorate the significant but complex heritage of northern
New Mexico communities and Indian tribes, from the pre-Spanish
colonization period to present day. Establishing a National Heritage
Area will benefit the northern New Mexico communities, local residents,
students, and visitors, as well as help the local protection and
interpretation of the unique cultural, historical, and natural
resources of northern New Mexico.
Last Congress, identical legislation passed the Senate by unanimous
consent and again as part of a comprehensive heritage area bill. The
House of Representatives amended the bill to add authorizations for
other heritage areas but unfortunately the different versions were not
able to be reconciled prior to the sine die adjournment of the
Congress. However, I am encouraged that the Senate and House have each
approved authorization for the Northern Rio Grande National Heritage
Area, and it is my hope that since both Houses have now passed
legislation that is essentially identical to the bill I am introducing
today, it can be swiftly considered and enacted into law.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 63

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Northern Rio Grande National
Heritage Area Act''.

SEC. 2. CONGRESSIONAL FINDINGS.

The Congress finds that--
(1) northern New Mexico encompasses a mosaic of cultures
and history, including eight Pueblos and the descendants of
Spanish ancestors who settled in the area in 1598;
(2) the combination of cultures, languages, folk arts,
customs, and architecture make northern New Mexico unique;
(3) the area includes spectacular natural, scenic, and
recreational resources;
(4) there is broad support from local governments and
interested individuals to establish a National Heritage Area
to coordinate and assist in the preservation and
interpretation of these resources;
(5) in 1991, the National Park Service study Alternative
Concepts for Commemorating Spanish Colonization identified
several alternatives consistent with the establishment of a
National Heritage Area, including conducting a comprehensive
archaeological and historical research program, coordinating
a comprehensive interpretation program, and interpreting a
cultural heritage scene; and
(6) establishment of a National Heritage Area in northern
New Mexico would assist local communities and residents in
preserving these unique cultural, historical and natural
resources.

SEC. 3. DEFINITIONS.

As used in this Act--
(1) the term ``heritage area'' means the Northern Rio
Grande Heritage Area; and
(2) the term ``Secretary'' means the Secretary of the
Interior.

SEC. 4. NORTHERN RIO GRANDE NATIONAL HERITAGE AREA.

(a) Establishment.--There is hereby established the
Northern Rio Grande National Heritage Area in the State of
New Mexico.
(b) Boundaries.--The heritage area shall include the
counties of Santa Fe, Rio Arriba, and Taos.
(c) Management Entity.--
(1) The Northern Rio Grande National Heritage Area, Inc., a
non-profit corporation chartered in the State of New Mexico,
shall serve as the management entity for the heritage area.
(2) The Board of Directors for the management entity shall
include representatives of the State of New Mexico, the
counties of Santa Fe, Rio Arriba and Taos, tribes and pueblos
within the heritage area, the cities of Santa Fe, Espanola
and Taos, and members of the general public. The total number
of Board members and the number of Directors representing
State, local and tribal governments and interested
communities shall be established to ensure that all parties
have appropriate representation on the Board.

SEC. 5. AUTHORITY AND DUTIES OF THE MANAGEMENT ENTITY.

(a) Management Plan.--
(1) Not later than 3 years after the date of enactment of
this Act, the management entity shall develop and forward to
the Secretary a management plan for the heritage area.
(2) The management entity shall develop and implement the
management plan in cooperation with affected communities,
tribal and local governments and shall provide for public
involvement in the development and implementation of the
management plan.
(3) The management plan shall, at a minimum--
(A) provide recommendations for the conservation, funding,
management, and development of the resources of the heritage
area;
(B) identify sources of funding;
(C) include an inventory of the cultural, historical,
archaeological, natural, and recreational resources of the
heritage area;
(D) provide recommendations for educational and
interpretive programs to inform the public about the
resources of the heritage area; and
(E) include an analysis of ways in which local, State,
Federal, and tribal programs may best be coordinated to
promote the purposes of this Act.
(4) If the management entity fails to submit a management
plan to the secretary as provided in paragraph (1), the
heritage area shall no longer be eligible to receive Federal
funding under this Act until such time as a plan is submitted
to the Secretary.
(5) The Secretary shall approve or disapprove the
management plan within 90 days after the date of submission.
If the Secretary disapproves the management plan, the
Secretary shall advise the management entity in writing of
the reasons therefore and shall make recommendations for
revisions to the plan.
(6) The management entity shall periodically review the
management plan and submit to the Secretary any
recommendations for proposed revisions to the management
plan. Any major revisions to the management plan must be
approved by the Secretary.
(b) Authority.--The management entity may make grants and
provide technical assistance to tribal and local governments,
and other public and private entities to carry out the
management plan.
(c) Duties.--The management entity shall--
(1) give priority in implementing actions set forth in the
management plan;
(2) coordinate with tribal and local governments to better
enable them to adopt land use policies consistent with the
goals of the management plan;
(3) encourage by appropriate means economic viability in
the heritage area consistent with the goals of the management
plan; and
(4) assist local and tribal governments and non-profit
organizations in--
(A) establishing and maintaining interpretive exhibits in
the heritage area;
(B) developing recreational resources in the heritage area;
(C) increasing public awareness of, and appreciation for,
the cultural, historical, archaeological and natural
resources and sits in the heritage area;
(D) the restoration of historic structures related to the
heritage area; and
(E) carrying out other actions that the management entity
determines appropriate to fulfill the purposes of this Act,
consistent with the management plan.
(d) Prohibition on Acquiring Real Property.--The management
entity may not use Federal funds received under this Act to
acquire real property or an interest in real property.
(e) Public Meetings.--The management entity shall hold
public meetings at least annually regarding the
implementation of the management plan.
(f) Annual Reports and Audits.--
(1) For any year in which the management entity receives
Federal funds under this Act, the management entity shall
submit an annual report to the Secretary setting forth
accomplishments, expenses and income, and each entity to
which any grant was made by the management entity.
(2) The management entity shall make available to the
Secretary for audit all records relating to the expenditure
of Federal funds and any matching funds. The management
entity shall also require, for all agreements authorizing
expenditure of Federal funds by other organizations, that the
receiving organization make available to the Secretary for
audit all records concerning the expenditure of those funds.

[[Page S244]]

SEC. 6. DUTIES OF THE SECRETARY.

(a) Technical and Financial Assistance.--The Secretary may,
upon request of the management entity, provide technical and
financial assistance to develop and implement the management
plan.
(b) Priority.--In providing assistance under subsection
(a), the Secretary shall give priority to actions that
facilitate--
(1) the conservation of the significant natural, cultural,
historical, archaeological, scenic, and recreational
resources of the heritage area; and
(2) the provision of educational, interpretive, and
recreational opportunities consistent with the resources and
associated values of the heritage area.

SEC. 7. SAVINGS PROVISIONS.

(a) No Effect on Private Property.--Nothing in this Act
shall be construed--
(1) to modify, enlarge, or diminish any authority of
Federal, State, or local governments to regulate any use of
privately owned lands; or
(2) to grant the management entity any authority to
regulate the use of privately owned lands.
(b) Tribal Lands.--Nothing in this Act shall restrict or
limit a tribe from protecting cultural or religious sites on
tribal lands.
(c) Authority of Governments.--Nothing in this Act shall--
(1) modify, enlarge, or diminish any authority of Federal,
State, tribal, or local governments to manage or regulate any
use of land as provided for by law or regulation; or
(2) authorize the management entity to assume any
management authorities over such lands.
(d) Trust Responsibilities.--Nothing in this Act shall
diminish the Federal Government's trust responsibilities or
government-to-government obligations to any federally
recognized Indian tribe.

SEC. 8. SUNSET.

The authority of the Secretary to provide assistance under
this Act terminates on the date that is 15 years after the
date of enactment of this Act.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated to
carry out this Act $10,000,000, of which not more than
$1,000,000 may be authorized to be appropriated for any
fiscal year.
(b) Cost-Sharing Requirement.--The Federal share of the
total cost of any activity assisted under this Act shall be
not more than 50 percent.
______

By Mr. INOUYE (for himself, Mr. Stevens, and Mr. Burns):
S. 65. A bill to amend the age restrictions for pilots; to the
Committee on Commerce, Science, and Transportation.
Mr. INHOFE. Mr. President, I rise today, as an experienced pilot over
age 60, along with my colleagues, Senator Stevens and Senator Burns, to
introduce a bill that will help end age discrimination among airline
pilots. I also want to thank my colleague in the other chamber,
Congressman Jim Gibbons, for his leadership on this issue and for
introducing the companion version of this bill.
This bill will abolish the Federal Aviation Administration's Age 60
Rule-the regulation that for more than 40 years has forced the
retirement of airline pilots the day they turn 60 and replace it with a
rational plan that ties the commercial pilot retirement age to the
Social Security retirement age currently 65.
Most nations have abolished mandatory age 60 retirement rules. The
United States is one of only two countries in the Joint Aviation
Authority that requires its commercial pilots to retire at the age of
60. Some countries, including Canada, Australia, and New Zealand have
no upper age limit at all.
The Age 60 Rule has no basis in science or safety and never did. FAA
data shows that pilots over age 60 are as safe as, and in some cases
safer than, their younger colleagues. There have been numerous studies
and statements in support of abolishing the Age 60 Rule.
In 1981, the National Institute of Aging stated that ``the Age 60
Rule appears indefensible on medical grounds'' and ``there is no
convincing medical evidence to support age 60, or any other specific
age, for mandatory pilot retirement.''
The FAA released the Hilton Study in 1993, which stated ``the data
for all groups of pilots were remarkably consistent in showing a modest
decrease in accident rate with age no hint of an increase in accident
rates as pilots near age 60.''
Furthermore, in May 1999, the Senate Appropriations Committee asked
the FAA to report on why the US should not cautiously increase the age
to 63, ``like other countries have for commercial aviation.''
Airline Pilots magazine stated in a September 2003 article, ``If a
permanent replacement for the 30 year Treasury bond rate is also
applied to the calculation of lump-sum payments, we recommend a long
transition period, similar to that proposed in H.R. 1776, the pension
legislation introduced by Rep. Bob Portman. For pilots who must retire
at age 60, this is particularly important. It would be unfair to pull
the rug out from under employees who have carefully planned their
retirement finances, especially pilots who can't fly longer to make up
for the amounts lost because of a change in the basis used to calculate
lump-sum payments.''
As recently as September 14, 2004, in a hearing before the Senate
Special Committee on Aging, Captain Joseph ``Ike'' Eichelkraut,
President of Southwest Airlines Pilots' Association, testified:
``The 4400 plus pilots of the Southwest Airlines Pilots' Association,
oppose the Age 60 Rule.
``Flying a commercial airliner is not the physically demanding
environment I encountered 15 years ago in the 7 9 ``G'' world of the F-
16 I flew in the Air Force. Commercial piloting is, however, a job
requiring key management skills and sound judgment. These are talents
that I have found typically come with age and experience.
``The facts are that plain. The FAA has the ideal mechanisms for
ensuring safe pilots at any age are already in place. To retain my
license and fly as a pilot for Southwest Airlines, I must pass semi-
annual flight physicals administered by a qualified (FAA licensed)
Aero-Medical Examiner (AME). When a pilot turns 40 years of age, he
must undergo an EKG every other flight physical, which is
electronically transmitted by the AME directly to FAA headquarters
where a computer program alerts if parameters dictate.
``Pilots must also successfully pass semiannual simulator training
and flight checks designed to evaluate the crewmember's ability to
respond to various aircraft emergencies and/or competently handle
advances in flight technology and the Air Traffic Control (ATC)
environment. Captains must demonstrate, twice yearly, complete
knowledge of systems and procedures, safe piloting skills and multi-
tasking by managing emergency and normal flight situations, typically
in instrument flight conditions conducted in advanced simulators. There
is no greater test of cognitive ability and mental dexterity than these
simulator rides. Flight crews are also administered random inflight
check rides by FAA inspectors and Southwest check airmen. Further, we
are subject to random alcohol and drug testing at any time while on
duty. There is no other profession examined to this level. The 59 year
old Captain arrives at this point in his career having demonstrated
successful performance following years of this kind of scrutiny. FAA
studies have verified the superior level of safety exhibited by this
senior Captain.
``At Southwest, our pilots are trained to fly the aircraft on
instruments down to 50 above the ground in poor visibility conditions
before acquiring the intended runway and landing visually. In
simulators, both pilots must demonstrate the ability to immediately
determine whether a safe landing can be made at this point and then
either execute a ``go-around'' or land. The First Officer is trained to
assume control of the aircraft and execute a ``go-around'' if the
Captain fails to respond to procedures at this critical decision point.
If either pilot should become incapacitated, even at touchdown, the
other pilot is capable of assuming control in order to fly the airplane
to a safe landing. The passengers would probably remain unaware that a
pilot had become ill until the aircraft is met at the gate by Emergency
Medical Technicians (EMT).
``Simulator failure rates among SWA pilots are low. Last year there
were only 31 out of 4,200 simulator checkrides. But as pilots approach
age 60 the failure numbers are at their lowest. The graph attached
shows this and I believe that experience is the key. As pilots get
older, they know how to better handle the extreme situations they may
have encountered in simulator checks. The mean failure rate declines at
an even rate from a pilot's thirties through his fifties. Of course,
because of the Age 60 rule, I don't have data to

[[Page S245]]

show that this trend would continue throughout a pilot's sixties, but I
suspect it would.''
I urge the Commerce Committee to hold hearings along these lines.
Furthermore, on September 29, 2004, thousands of people watched as
63-year-old Michael Melvill made history by becoming the first civilian
to pilot a craft into space. In doing so, he helped Paul Allen, the
owner of Mojave Aerospace Ventures, which owns SpaceShipOne technology,
along with the designer of SpaceShipOne, Burt Rutan, win the coveted
$10 million Ansari X-Prize.
Melvill took SpaceShipOne above the 62-mile altitude point,
ultimately soaring to 337,500 feet. Despite rolling nearly 30 times,
Melvill was able to gain control of the vehicle, re-enter the
atmosphere, and glide to a landing. I attribute this recovery and
subsequent landing to Melvill's years of extensive experience as a test
pilot.
This bill will allow our most experienced pilots, those like Michael
Melvill demonstrably healthy, and fit for duty-to retain their jobs, a
step that will benefit pilots, the financially burdened airlines, and
most importantly, passengers. Now, more than ever before, we need to
keep our best pilots flying.
Again, there is no scientific justification for requiring pilots to
retire at age 60. Our pilots, our airlines, and our passengers deserve
our consideration. I urge the rest of my colleagues to support this
important legislation.
______

By Mr. INOUYE:
S. 66. A bill to amend title XIX of the Social Security Act to
provide for coverage of services provided by nursing school clinics
under medicaid programs; to the Committee on Finance.
Mr. INOUYE. Mr. President, today I introduce the Nursing School
Clinics Act. This measure builds on our concerted efforts to provide
access to quality health care for Americans by offering grants and
incentives for nursing schools to establish primary care clinics in
underserved areas where additional medical services are most needed. In
addition, this measure provides the opportunity for nursing schools to
enhance the scope of student training and education by providing
firsthand clinical experience in primary care facilities.
Primary care clinics administered by nursing schools are university
or nonprofit primary care centers developed mainly in collaboration
with university schools of nursing and the communities they serve.
These centers are staffed by faculty and staff who are nurse
practitioners and public health nurses. Students supplement patient
care while receiving preceptorships provided by college of nursing
faculty and primary care physicians, often associated with academic
institutions, who serve as collaborators with nurse practitioners. To
date, the comprehensive models of care provided by nursing clinics have
yielded excellent results, including significantly fewer emergency room
visits, fewer hospital inpatient days, and less use of specialists, as
compared to conventional primary health care.
This bill reinforces the principle of combining health care delivery
in underserved areas with the education of advanced practice nurses. To
accomplish these objectives, Title XIX of the Social Security Act would
be amended to designate that the services provided in these nursing
school clinics are reimbursable under Medicaid. The combination of
grants and the provision of Medicaid reimbursement furnishes the
financial incentives for clinic operators to establish the clinics.
In order to meet the increasing challenges of bringing cost-effective
and quality health care to all Americans, we must consider a wide range
of proposals, both large and small. Most importantly, we must approach
the issue of health care with creativity and determination, ensuring
that all reasonable avenues are pursued. Nurses have always been an
integral part of health care delivery. The Nursing School Clinics Act
recognizes the central role nurses can perform as care givers to the
medically underserved.
I ask unanimous consent that the text of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 66

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Nursing School Clinics Act
of 2005''.

SEC. 2. MEDICAID COVERAGE OF SERVICES PROVIDED BY NURSING
SCHOOL CLINICS.

(a) In General.--Section 1905(a) of the Social Security Act
(42 U.S.C. 1396d(a)) is amended--
(1) in paragraph (27), by striking ``and'' at the end;
(2) by redesignating paragraph (28) as paragraph (29); and
(3) by inserting after paragraph (27), the following new
paragraph:
``(28) nursing school clinic services (as defined in
subsection (x)) furnished by or under the supervision of a
nurse practitioner or a clinical nurse specialist (as defined
in section 1861(aa)(5)), whether or not the nurse
practitioner or clinical nurse specialist is under the
supervision of, or associated with, a physician or other
health care provider; and''.
(b) Nursing School Clinic Services Defined.--Section 1905
of the Social Security Act (42 U.S.C. 1396d) is amended by
adding at the end the following new subsection:
``(y) The term `nursing school clinic services' means
services provided by a health care facility operated by an
accredited school of nursing which provides primary care,
long-term care, mental health counseling, home health
counseling, home health care, or other health care services
which are within the scope of practice of a registered
nurse.''.
(c) Conforming Amendment.--Section 1902(a)(10)(C)(iv) of
the Social Security Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is
amended by inserting ``and (28)'' after ``(24)''.
(d) Effective Date.--The amendments made by this section
shall be effective with respect to payments made under a
State plan under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) for calendar quarters commencing with
the first calendar quarter beginning after the date of
enactment of this Act.
______

By Mr. INOUYE:
S. 67. A bill to amend the Public Health Act to provide health care
practitioners in rural areas with training in preventive health care,
including both physical and mental care, and for other purposes; to the
Committee on Health, Education, Labor, and Pensions.
Mr. INOUYE. Mr. President, I rise today to introduce the Rural
Preventive Health Care Training Act, a bill that responds to the dire
need of our rural communities for quality health care and disease
prevention programs. Almost one fourth of Americans live in rural areas
and frequently lack access to adequate physical and mental health care.
As many as 21 million of the 34 million people living in underserved
rural areas are without access to a primary care provider. Even in
areas where providers do exist, there are numerous limits to access,
such as geography, distance, lack of transportation, and lack of
knowledge about available resources. Due to the diversity of rural
populations, language and cultural obstacles are often a factor in the
access to medical care.
Compound these problems with limited financial resources, and the
result is that many Americans living in rural communities go without
vital health care, especially preventive care. Children fail to receive
immunizations and routine checkups. Preventable illnesses and injuries
occur needlessly, and lead to expensive hospitalizations. Early
symptoms of emotional problems and substance abuse go undetected, and
often develop into full-blown disorders.
An Institute of Medicine IOM report entitled, ``Reducing Risks for
Mental Disorders: Frontiers for Preventive Intervention Research,''
highlights the benefits of preventive care for all health problems. The
training of health care providers in prevention is crucial in order to
meet the demand for care in underserved areas. Currently, rural health
care providers lack preventive care training opportunities.
Interdisciplinary preventive training of rural health care providers
must be encouraged. Through such training, rural health care providers
can build a strong educational foundation from the behavioral,
biological, and psychological sciences. Interdisciplinary team
prevention training will also facilitate operations at sites with both
health and mental health clinics by facilitating routine consultation
between groups. Emphasizing the mental health disciplines and their
services as part of the health care team will contribute to the overall
health of rural communities.
The Rural Preventive Health Care Training Act would implement the

[[Page S246]]

risk-reduction model described in the IOM study. This model is based on
the identification of risk factors and targets specific interventions
for those risk factors. The human suffering caused by poor health is
immeasurable, and places a huge financial burden on communities,
families, and individuals. By implementing preventive measures to
reduce this suffering, the potential psychological and financial
savings are enormous.
Mr. President. I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 67

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Rural Preventive Health Care
Training Act of 2005''.

SEC. 2. PREVENTIVE HEALTH CARE TRAINING.

Part D of title VII of the Public Health Service Act (42
U.S.C. 294 et seq.) is amended by inserting after section 754
the following:

``SEC. 754A. PREVENTIVE HEALTH CARE TRAINING.

``(a) In General.--The Secretary may make grants to, and
enter into contracts with, eligible applicants to enable such
applicants to provide preventive health care training, in
accordance with subsection (c), to health care practitioners
practicing in rural areas. Such training shall, to the extent
practicable, include training in health care to prevent both
physical and mental disorders before the initial occurrence
of such disorders. In carrying out this subsection, the
Secretary shall encourage, but may not require, the use of
interdisciplinary training project applications.
``(b) Limitation.--To be eligible to receive training using
assistance provided under subsection (a), a health care
practitioner shall be determined by the eligible applicant
involved to be practicing, or desiring to practice, in a
rural area.
``(c) Use of Assistance.--Amounts received under a grant
made or contract entered into under this section shall be
used--
``(1) to provide student stipends to individuals attending
rural community colleges or other institutions that service
predominantly rural communities, for the purpose of enabling
the individuals to receive preventive health care training;
``(2) to increase staff support at rural community colleges
or other institutions that service predominantly rural
communities to facilitate the provision of preventive health
care training;
``(3) to provide training in appropriate research and
program evaluation skills in rural communities;
``(4) to create and implement innovative programs and
curricula with a specific prevention component; and
``(5) for other purposes as the Secretary determines to be
appropriate.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section,
$5,000,000 for each of fiscal years 2006 through 2009.''.
______

By Mr. INOUYE:
S. 68. A bill to amend title XIX of the Social Security Act to
provide 100 percent reimbursement for medical assistance provided to a
Native Hawaiian through a federally-qualified health center or a Native
Hawaiian health care system; to the Committee on Finance.
Mr. INOUYE. Mr. President, today I introduce the Native Hawaiian
Medicaid Coverage Act. This legislation would authorize a Federal
Medicaid Assistance Percent (FMAP) of 100 percent for the payment of
health care costs of Native Hawaiians who receive health care from
Federally Qualified Health Centers or the Native Hawaiian Health Care
System.
This bill was originally a provision within the Medicare Prescription
Drug Bill, which the Senate passed by an overwhelming majority of 76 to
21, but was dropped from the final Medicare Prescription Drug
Conference Report.
This bill is modeled on the Native Alaskan Health Care Act, which
provides for a Federal Medicaid Assistance Percent (FMAP) of 100
percent for payment of health care costs for Native Alaskans by the
Indian Health Service, an Indian tribe, or a tribal organization.
Community health centers serve as the ``safety net'' for uninsured
and medically underserved Native Hawaiians and other United States
citizens, providing comprehensive primary and preventive health
services to the entire community. Outpatient services offered to the
entire family include comprehensive primary care, preventive health
maintenance, and education outreach in the local community. Community
health centers, with their multidisciplinary approach, offer cost
effective integration of health promotion and wellness with chronic
disease management and primary care focused on serving vulnerable
populations.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 68

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Native Hawaiian Medicaid
Coverage Act of 2005''.

SEC. 2. 100 PERCENT FMAP FOR MEDICAL ASSISTANCE PROVIDED TO A
NATIVE HAWAIIAN THROUGH A FEDERALLY-QUALIFIED
HEALTH CENTER OR A NATIVE HAWAIIAN HEALTH CARE
SYSTEM UNDER THE MEDICAID PROGRAM.

(a) Medicaid.--The third sentence of section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)) is amended by
inserting ``, and with respect to medical assistance provided
to a Native Hawaiian (as defined in section 12 of the Native
Hawaiian Health Care Improvement Act) through a federally-
qualified health center or a Native Hawaiian health care
system (as so defined) whether directly, by referral, or
under contract or other arrangement between a federally-
qualified health center or a Native Hawaiian health care
system and another health care provider'' before the period.
(b) Effective Date.--The amendment made by this section
applies to medical assistance provided on or after the date
of enactment of this Act.
______

By Mr. INOUYE:
S. 69. A bill for the relief of Donald C. Pence; to the Committee on
Armed Services.
Mr. INOUYE. Mr. President, today I am reintroducing a private relief
mill on behalf of Donald C. Pence of Stanford, North Carolina, for
compensation for the failure of the Department of Veterans Affairs to
pay dependency and indemnity compensation to Kathryn E. Box, the now-
deceased mother of Donald C. Pence. It is rare that a federal agency
admits a mistake. In this case, the Department of Veterans Affairs has
admitted that a mistake was made and explored ways to permit payment
under the law, including equitable relief, but has found no provision
authorizing the Department to release the remaining benefits that were
unpaid to Mrs. Box at the time of her death. My bill would correct this
injustice, and I urge my colleagues to support this measure.
Mr. President, I ask unanimous consent that the text of my bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 69

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. RELIEF OF DONALD C. PENCE.

(a) Relief.--The Secretary of the Treasury shall pay, out
of any moneys in the Treasury not otherwise appropriated, to
Donald C. Pence, of Sanford, North Carolina, the sum of
$31,128 in compensation for the failure of the Department of
Veterans Affairs to pay dependency and indemnity compensation
to Kathryn E. Box, the now-deceased mother of Donald C.
Pence, for the period beginning on July 1, 1990, and ending
on March 31, 1993.
(b) Limitation on Fees.--Not more than a total of 10
percent of the payment authorized by subsection (a) shall be
paid to or received by agents or attorneys for services
rendered in connection with obtaining such payment, any
contract to the contrary notwithstanding. Any person who
violates this subsection shall be fined not more than $1,000.
______

By Mr. INOUYE:
S. 70. A bill to amend title XVIII of the Social Security Act to
remove the restriction that a clinical psychologist or a clinical
social worker provide services in a comprehensive outpatient
rehabilitation facility to a patient only under the care of a
physician; to the Committee on Armed Services.
Mr. INOUYE. Mr. President, today I introduce legislation to authorize
the autonomous functioning of clinical psychologists and clinical
social workers within the Medicare comprehensive outpatient
rehabilitation facility program.
In my judgment, it is unfortunate that Medicare requires clinical
supervision of the services provided by certain health professionals
and does not allow them to function to the full extent of their State
practice licenses. Those who need the services of outpatient
rehabilitation facilities should have access to a wide range of social
and behavioral science expertise. Clinical psychologists and clinical
social workers are recognized as independent providers of mental health
care services under the Federal Employee Health Benefits Program, the
TRICARE Military Health Program of the Uniformed Services, the Medicare
(Part B) Program, and numerous private insurance plans. This
legislation will ensure that these qualified professionals achieve the
same recognition under the Medicare comprehensive outpatient
rehabilitation facility program.

[[Page S247]]

Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 70

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Autonomy for Psychologists
and Social Workers Act of 2005''.

SEC. 2. REMOVAL OF RESTRICTION THAT A CLINICAL PSYCHOLOGIST
OR CLINICAL SOCIAL WORKER PROVIDE SERVICES IN A
COMPREHENSIVE OUTPATIENT REHABILITATION
FACILITY TO A PATIENT ONLY UNDER THE CARE OF A
PHYSICIAN.

(a) In General.--Section 1861(cc)(2)(E) of the Social
Security Act (42 U.S.C. 1395x(cc)(2)(E)) is amended by
striking ``physician'' and inserting ``physician, except that
a patient receiving qualified psychologist services (as
defined in subsection (ii)) may be under the care of a
clinical psychologist with respect to such services to the
extent permitted under State law and except that a patient
receiving clinical social worker services (as defined in
subsection (hh)(2)) may be under the care of a clinical
social worker with respect to such services to the extent
permitted under State law''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to services provided on or after January 1, 2006.
______

By Mr. INOUYE:
S. 71. A bill to amend title XVIII of the Social Security Act to
provide for patient protection by limiting the number of mandatory
overtime hours a nurse may be required to work at certain medicare
providers, and for other purposes; to the Committee on Finance.
Mr. INOUYE. Mr. President, today I introduce the Registered Nurse
Safe Staffing Act. I am introducing this bill on behalf of the American
Nurses Association's Chief Executive Officer and President Linda
Stierle, MSN, RN, CNAA and Barbara A. Blakeney, MS, APRN, BC, ANP,
respectively. For over four decades I have been a committed supporter
of nurses and the delivery of safe patient care. While enforceable
regulations will help to ensure patient safety, the complexity and
variability of today's hospitals require that staffing patterns be
determined at the hospital and unit level, with the professional input
of registered nurses. More than a decade of research demonstrates that
nurse staff levels and the skill mix of nursing staff directly affect
the clinical outcomes of hospitalized patients. Studies show that when
there are more registered nurses, there are lower mortality rates,
shorter lengths of stay, reduced costs, and fewer complications.
A study published in the Journal of the American Medical Association
found that the risks of patient mortality rose by 7 percent for every
additional patient added to the average nurse's workload. In the midst
of a nursing shortage and increasing financial pressures, hospitals
often find it difficult to maintain adequate staffing. While nursing
research indicates that adequate registered nurse staffing is vital to
the health and safety of patients, there is no standardized public
reporting mechanism, nor enforcement of adequate staffing plans. The
only regulations addressing nursing staff exists vaguely in Medicare
Conditions of Participation which states: ``The nursing service must
have an adequate number of licensed registered nurses, licensed
practice (vocational) nurse, and other personnel to provide nursing
care to all patients as needed''.
This bill will require Medicare Participating Hospitals to develop
and maintain reliable and valid systems to determine sufficient
registered nurse staffing. Given the demands that the healthcare
industry faces today, it is our responsibility to ensure that patients
have access to adequate nursing care. However, we must ensure that the
decisions by which care is provided are made by the clinical experts,
the registered nurses caring for these patients. Support of this bill
supports our nation's nurses during a critical shortage, but more
importantly, works to ensure the safety of their patients.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 71

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Registered Nurse Safe
Staffing Act of 2005''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) There are hospitals throughout the United States that
have inadequate staffing of registered nurses to protect the
well-being and health of the patients.
(2) Studies show that the health of patients in hospitals
is directly proportionate to the number of registered nurses
working in the hospital.
(3) There is a critical shortage of registered nurses in
the United States.
(4) The effect of that shortage is revealed in unsafe
staffing levels in hospitals.
(5) Patient safety is adversely affected by these unsafe
staffing levels, creating a public health crisis.
(6) Registered nurses are being required to perform
professional services under conditions that do not support
quality health care or a healthful work environment for
registered nurses.
(7) As a payer for inpatient and outpatient hospital
services for individuals entitled to benefits under the
medicare program established under title XVIII of the Social
Security Act, the Federal Government has a compelling
interest in promoting the safety of such individuals by
requiring any hospital participating in such program to
establish minimum safe staffing levels for registered nurses.

SEC. 3. ESTABLISHMENT OF MINIMUM STAFFING RATIOS BY MEDICARE
PARTICIPATING HOSPITALS.

(a) Requirement of Medicare Provider Agreement.--Section
1866(a)(1) of the Social Security Act (42 U.S.C.
1395cc(a)(1)) is amended--
(1) in subparagraph (R), by striking ``and'' after the
comma at the end;
(2) in subparagraph (S), by striking the period at the end
and inserting ``, and''; and
(3) by inserting after subparagraph (S) the following new
subparagraph:
``(T) in the case of a hospital, to meet the requirements
of section 1889.''.
(b) Requirements.--Part D of title XVIII of the Social
Security Act is amended by inserting after section 1888 the
following new section:

``STAFFING REQUIREMENTS FOR MEDICARE PARTICIPATING HOSPITALS

``Sec. 1889. (a) Establishment of Staffing System.--
``(1) In general.--Each participating hospital shall adopt
and implement a staffing system that ensures a number of
registered nurses on each shift and in each unit of the
hospital to ensure appropriate staffing levels for patient
care.
``(2) Staffing system requirements.--Subject to paragraph
(3), a staffing system adopted and implemented under this
section shall--
``(A) be based upon input from the direct care-giving
registered nurse staff or their exclusive representatives, as
well as the chief nurse executive;
``(B) be based upon the number of patients and the level
and variability of intensity of care to be provided, with
appropriate consideration given to admissions, discharges,
and transfers during each shift;
``(C) account for contextual issues affecting staffing and
the delivery of care, including architecture and geography of
the environment and available technology;
``(D) reflect the level of preparation and experience of
those providing care;
``(E) account for staffing level effectiveness or
deficiencies in related health care classifications,
including but not limited to, certified nurse assistants,
licensed vocational nurses, licensed psychiatric technicians,
nursing assistants, aides, and orderlies;
``(F) reflect staffing levels recommended by specialty
nursing organizations;
``(G) establish upwardly adjustable registered nurse-to-
patient ratios based upon registered nurses' assessment of
patient acuity and existing conditions;
``(H) provide that a registered nurse shall not be assigned
to work in a particular unit without first having established
the ability to provide professional care in such unit; and
``(I) be based on methods that assure validity and
reliability.
``(3) Limitation.--A staffing system adopted and
implemented under paragraph (1) may not--
``(A) set registered-nurse levels below those required by
any Federal or State law or regulation; or
``(B) utilize any minimum registered nurse-to-patient ratio
established pursuant to paragraph (2)(G) as an upper limit on
the staffing of the hospital to which such ratio applies.
``(b) Reporting, and Release to Public, of Certain Staffing
Information.--
``(1) Requirements for hospitals.--Each participating
hospital shall--
``(A) post daily for each shift, in a clearly visible
place, a document that specifies in a uniform manner (as
prescribed by the Secretary) the current number of licensed
and unlicensed nursing staff directly responsible for patient
care in each unit of the hospital, identifying specifically
the number of registered nurses;
``(B) upon request, make available to the public--
``(i) the nursing staff information described in
subparagraph (A); and

[[Page S248]]

``(ii) a detailed written description of the staffing
system established by the hospital pursuant to subsection
(a); and
``(C) submit to the Secretary in a uniform manner (as
prescribed by the Secretary) the nursing staff information
described in subparagraph (A) through electronic data
submission not less frequently than quarterly.
``(2) Secretarial responsibilities.--The Secretary shall--
``(A) make the information submitted pursuant to paragraph
(1)(C) publicly available, including by publication of such
information on the Internet site of the Department of Health
and Human Services; and
``(B) provide for the auditing of such information for
accuracy as a part of the process of determining whether an
institution is a hospital for purposes of this title.
``(c) Recordkeeping; Data Collection; Evaluation.--
``(1) Recordkeeping.--Each participating hospital shall
maintain for a period of at least 3 years (or, if longer,
until the conclusion of pending enforcement activities) such
records as the Secretary deems necessary to determine whether
the hospital has adopted and implemented a staffing system
pursuant to subsection (a).
``(2) Data collection on certain outcomes.--The Secretary
shall require the collection, maintenance, and submission of
data by each participating hospital sufficient to establish
the link between the staffing system established pursuant to
subsection (a) and--
``(A) patient acuity from maintenance of acuity data
through entries on patients' charts;
``(B) patient outcomes that are nursing sensitive, such as
patient falls, adverse drug events, injuries to patients,
skin breakdown, pneumonia, infection rates, upper
gastrointestinal bleeding, shock, cardiac arrest, length of
stay, and patient readmissions;
``(C) operational outcomes, such as work-related injury or
illness, vacancy and turnover rates, nursing care hours per
patient day, on-call use, overtime rates, and needle-stick
injuries; and
``(D) patient complaints related to staffing levels.
``(3) Evaluation.--Each participating hospital shall
annually evaluate its staffing system and establish minimum
registered nurse staffing ratios to assure ongoing
reliability and validity of the system and ratios. The
evaluation shall be conducted by a joint management-staff
committee comprised of at least 50 percent of registered
nurses who provide direct patient care.
``(d) Enforcement.--
``(1) Responsibility.--The Secretary shall enforce the
requirements and prohibitions of this section in accordance
with the succeeding provisions of this subsection.
``(2) Procedures for receiving and investigating
complaints.--The Secretary shall establish procedures under
which--
``(A) any person may file a complaint that a participating
hospital has violated a requirement or a prohibition of this
section; and
``(B) such complaints are investigated by the Secretary.
``(3) Remedies.--If the Secretary determines that a
participating hospital has violated a requirement of this
section, the Secretary--
``(A) shall require the facility to establish a corrective
action plan to prevent the recurrence of such violation; and
``(B) may impose civil money penalties under paragraph (4).
``(4) Civil money penalties.--
``(A) In general.--In addition to any other penalties
prescribed by law, the Secretary may impose a civil money
penalty of not more than $10,000 for each knowing violation
of a requirement of this section, except that the Secretary
shall impose a civil money penalty of more than $10,000 for
each such violation in the case of a participating hospital
that the Secretary determines has a pattern or practice of
such violations (with the amount of such additional penalties
being determined in accordance with a schedule or methodology
specified in regulations).
``(B) Procedures.--The provisions of section 1128A (other
than subsections (a) and (b)) shall apply to a civil money
penalty under this paragraph in the same manner as such
provisions apply to a penalty or proceeding under section
1128A.
``(C) Public notice of violations.--
``(i) Internet site.--The Secretary shall publish on the
Internet site of the Department of Health and Human Services
the names of participating hospitals on which civil money
penalties have been imposed under this section, the violation
for which the penalty was imposed, and such additional
information as the Secretary determines appropriate.
``(ii) Change of ownership.--With respect to a
participating hospital that had a change in ownership, as
determined by the Secretary, penalties imposed on the
hospital while under previous ownership shall no longer be
published by the Secretary of such Internet site after the 1-
year period beginning on the date of change in ownership.
``(e) Whistleblower Protections.--
``(1) Prohibition of discrimination and retaliation.--A
participating hospital shall not discriminate or retaliate in
any manner against any patient or employee of the hospital
because that patient or employee, or any other person, has
presented a grievance or complaint, or has initiated or
cooperated in any investigation or proceeding of any kind,
relating to the staffing system or other requirements and
prohibitions of this section.
``(2) Relief for prevailing employees.--An employee of a
participating hospital who has been discriminated or
retaliated against in employment in violation of this
subsection may initiate judicial action in a United States
district court and shall be entitled to reinstatement,
reimbursement for lost wages, and work benefits caused by the
unlawful acts of the employing hospital. Prevailing employees
are entitled to reasonable attorney's fees and costs
associated with pursuing the case.
``(3) Relief for prevailing patients.--A patient who has
been discriminated or retaliated against in violation of this
subsection may initiate judicial action in a United States
district court. A prevailing patient shall be entitled to
liquidated damages of $5,000 for a violation of this statute
in addition to any other damages under other applicable
statutes, regulations, or common law. Prevailing patients are
entitled to reasonable attorney's fees and costs associated
with pursuing the case.
``(4) Limitation on actions.--No action may be brought
under paragraph (2) or (3) more than 2 years after the
discrimination or retaliation with respect to which the
action is brought.
``(5) Treatment of adverse employment actions.--For
purposes of this subsection--
``(A) an adverse employment action shall be treated as
retaliation or discrimination; and
``(B) the term `adverse employment action' includes--
``(i) the failure to promote an individual or provide any
other employment-related benefit for which the individual
would otherwise be eligible;
``(ii) an adverse evaluation or decision made in relation
to accreditation, certification, credentialing, or licensing
of the individual; and
``(iii) a personnel action that is adverse to the
individual concerned.
``(f) Relationship to State Laws.--Nothing in this section
shall be construed as exempting or relieving any person from
any liability, duty, penalty, or punishment provided by any
present or future law of any State or political subdivision
of a State, other than any such law which purports to require
or permit the doing of any act which would be an unlawful
practice under this title.
``(g) Relationship To Conduct Prohibited Under the National
Labor Relations Act or Other Collective Bargaining Laws.--
Nothing in this section shall be construed as permitting
conduct prohibited under the National Labor Relations Act or
under any other Federal, State, or local collective
bargaining law.
``(h) Regulations.--The Secretary shall promulgate such
regulations as are appropriate and necessary to implement
this section.
``(i) Definitions.--In this section:
``(1) Participating hospital.--The term `participating
hospital' means a hospital that has entered into a provider
agreement under section 1866.
``(2) Registered nurse.--The term `registered nurse' means
an individual who has been granted a license to practice as a
registered nurse in at least 1 State.
``(3) Unit.--The term `unit' of a hospital is an
organizational department or separate geographic area of a
hospital, such as a burn unit, a labor and delivery room, a
post-anesthesia service area, an emergency department, an
operating room, a pediatric unit, a stepdown or intermediate
care unit, a specialty care unit, a telemetry unit, a general
medical care unit, a subacute care unit, and a transitional
inpatient care unit.
``(4) Shift.--The term `shift' means a scheduled set of
hours or duty period to be worked at a participating
hospital.
``(5) Person.--The term `person' means 1 or more
individuals, associations, corporations, unincorporated
organizations, or labor unions.''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2006.
______

By Mr. INOUYE:
S. 72. A bill to amend title 5, United States Code, to require the
issuance of a prisoner-of-war medal to civilian employees of the
Federal Government who are forcibly detained or interned by an enemy
government or a hostile force under wartime conditions; to the
Committee on Homeland Security and Governmental Affairs.
Mr. INOUYE. Mr. President, all too often we find that our Nation's
civilian employees of the Federal Government who have been forcibly
detained or interned by a hostile government do not receive the
recognition they deserve. My bill would correct this inequity and
provide a prisoner of war medal for such citizens.
Mr. President, I ask unanimous consent that the text of my bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

[[Page S249]]

S. 72

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. PRISONER-OF-WAR MEDAL FOR CIVILIAN EMPLOYEES OF
THE FEDERAL GOVERNMENT.

(a) Authority To Issue Prisoner-of-War Medal.--(1) Subpart
A of part III of title 5, United States Code, is amended by
inserting after chapter 23 the following new chapter:

``CHAPTER 25--MISCELLANEOUS AWARDS

``Sec.
``2501. Prisoner-of-war medal: issue.

``Sec. 2501. Prisoner-of-war medal: issue

``(a) The President shall issue a prisoner-of-war medal to
any person who, while serving in any capacity as an officer
or employee of the Federal Government, was forcibly detained
or interned, not as a result of such person's own willful
misconduct--
``(1) by an enemy government or its agents, or a hostile
force, during a period of war; or
``(2) by a foreign government or its agents, or a hostile
force, during a period other than a period of war in which
such person was held under circumstances which the President
finds to have been comparable to the circumstances under
which members of the armed forces have generally been
forcibly detained or interned by enemy governments during
periods of war.
``(b) The prisoner-of-war medal shall be of appropriate
design, with ribbons and appurtenances.
``(c) Not more than one prisoner-of-war medal may be issued
to a person under this section or section 1128 of title 10.
However, for each succeeding service that would otherwise
justify the issuance of such a medal, the President (in the
case of service referred to in subsection (a) of this
section) or the Secretary concerned (in the case of service
referred to in section 1128(a) of title 10) may issue a
suitable device to be worn as determined by the President or
the Secretary, as the case may be.
``(d) For a person to be eligible for issuance of a
prisoner-of-war medal, the person's conduct must have been
honorable for the period of captivity which serves as the
basis for the issuance.
``(e) If a person dies before the issuance of a prisoner-
of-war medal to which the person is entitled, the medal may
be issued to that person's representative, as designated by
the President.
``(f) Under regulations prescribed by the President, a
prisoner-of-war medal that is lost, destroyed, or rendered
unfit for use without fault or neglect on the part of the
person to whom it was issued may be replaced without charge.
``(g) In this section, the term `period of war' has the
meaning given such term in section 101(11) of title 38.''.
(2) The table of chapters at the beginning of part III of
such title is amended by inserting after the item relating to
chapter 23 the following new item:

``25. Miscellaneous Awards..................................2501''.....

(b) Applicability.--Section 2501 of title 5, United States
Code, as added by subsection (a), applies with respect to any
person who, after April 5, 1917, is forcibly detained or
interned as described in subsection (a) of such section.
______

By Ms. CANTWELL:
S. 73. A bill to promote food safety and to protect the animal feed
supply from bovine spongiform encephalopathy; to the Committee on
Agriculture, Nutrition, and Forestry.
Ms. CANTWELL. Mr. President, today I am introducing the Animal Feed
Protection Act of 2005. It is similar to legislation that I introduced
in the 108th Congress.
Last week, during the Senate's consideration of the nomination of
Governor Mike Johanns to be the Secretary of Agriculture, I spoke in
favor of exercising caution with respect to re-opening the U.S.-
Canadian border to imports of live animals and processed beef products
until the Animal Protective Health Inspection Service fully
investigates the most recent case of Mad Cow in that country. This
legislation is important to our ongoing efforts to eradicate the
possibility that Mad Cow disease will infect U.S. cattle herds.
My legislation provides necessary enhancements to current Federal
feed regulations. It reduces the chance that the riskiest materials,
those most likely to transmit Mad Cow disease, cross-contaminate cattle
feed or are accidentally fed to cattle.
Specifically, my legislation would ban the inclusion of specified
risk materials, or SRM, in all animal feed. Currently these materials
are only banned from ruminant feed.
As we continue to negotiate the reopening of export markets to U.S.
beef, a comprehensive SRM ban is a prudent step. It is necessary to
assure our trading partners that we have secured our domestic feed, and
eliminated the risk of spreading Mad Cow disease through feed.
As our domestic beef producers continue to suffer from the closure of
our largest export markets, I encourage my colleagues to join me by
cosponsoring this legislation--a measure that will strengthen our Mad
Cow firewalls and our assurances to foreign beef consumers. I also hope
that as the Senate Agriculture Committee conducts hearings next month
into the appropriate Federal response to the most recent Canadian Mad
Cow case, the committee will consider examining this legislation as
well. The Senate should move toward its swift passage. Mr. President, I
ask unanimous consent that a copy of the legislation be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 73

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Animal Feed Protection Act
of 2005''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Bse.--The term ``BSE'' means bovine spongiform
encephalopathy.
(2) Covered article.--
(A) In general.--The term ``covered article'' means--
(i) feed for an animal;
(ii) a nutritional supplement for an animal;
(iii) medicine for an animal; and
(iv) any other article of a kind that is ordinarily
ingested, implanted, or otherwise taken into an animal.
(B) Exclusions.--The term ``covered article'' does not
include--
(i) an unprocessed agricultural commodity that is readily
identifiable as nonanimal in origin, such as a vegetable,
grain, or nut;
(ii) an article described in subparagraph (A) that, based
on compelling scientific evidence, the Secretary determines
does not pose a risk of transmitting prion disease; or
(iii) an article regulated by the Secretary that, as
determined by the Secretary--

(I) poses a minimal risk of carrying prion disease; and
(II) is necessary to protect animal health or public
health.

(3) Specified risk material.--
(A) In general.--The term ``specified risk material''
means--
(i) the skull, brain, trigeminal ganglia, eyes, tonsils,
spinal cord, vertebral column, or dorsal root ganglia of--

(I) cattle and bison 30 months of age and older; or
(II) sheep, goats, deer, and elk 12 months of age and
older;

(ii) the intestinal tract of a ruminant of any age; and
(iii) any other material of a ruminant that may carry a
prion disease, as determined by the Secretary, based on
scientifically credible research.
(B) Modification.--The Secretary shall conduct an annual
review of scientific research and may modify the definition
of specified risk material based on scientifically credible
research (including the conduct of ante-mortem and post-
mortem tests certified by the Secretary of Agriculture).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.

SEC. 3. PROTECTION OF ANIMAL FEED AND PUBLIC HEALTH.

It shall be unlawful for any person to introduce into
interstate or foreign commerce a covered article if the
covered article contains--
(1)(A) specified risk material from a ruminant; or
(B) any material from a ruminant that--
(i) was in any foreign country at a time at which there was
a risk of transmission of BSE in the country, as determined
by the Secretary of Agriculture; and
(ii) may contain specified risk material from a ruminant;
or
(2) any material from a ruminant exhibiting signs of a
neurological disease.

SEC. 4. ENFORCEMENT.

(a) Cooperation.--The Secretary and the heads of other
Federal agencies, as appropriate, shall cooperate with the
Attorney General in enforcing this Act.
(b) Due Process.--Any person subject to enforcement action
under this section shall have the opportunity for an informal
hearing on the enforcement action as soon as practicable
after, but not later than 10 days after, the enforcement
action is taken.
(c) Remedies.--In addition to any remedies available under
other provisions of law, the head of a Federal agency may
enforce this Act by--
(1) seizing and destroying an article that is introduced
into interstate or foreign commerce in violation of this Act;
or
(2) issuing an order requiring any person that introduces
an article into interstate or foreign commerce in violation
of this Act--
(A) to cease the violation;
(B)(i) to recall any article that is sold; and
(ii) to refund the purchase price to the purchaser;
(C) to destroy the article or forfeit the article to the
United States for destruction; or
(D) to cease operations at the facility at which the
article is produced until the head of the appropriate Federal
agency determines that the operations are no longer in
violation of this Act.

[[Page S250]]

(d) Civil and Monetary Penalties.--Not later than 180 days
after the date of enactment of this Act, the Secretary shall
promulgate regulations establishing the appropriate level of
civil and monetary penalties necessary to carry out this Act.

SEC. 5. TRAINING STANDARDS.

The Secretary, in consultation with the Secretary of
Agriculture, shall issue training standards to industry for
the removal of specified risk materials.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated $5,000,000 to carry
out this Act.

SEC. 7. EFFECTIVE DATE.

This Act takes effect on the date that is 180 days after
the date of enactment of this Act.
______

By Ms. CANTWELL (for herself and Mrs. Murray):
S. 74. A bill to designate a portion of the White Salmon River as a
component of the National Wild and Scenic Rivers System; to the
Committee on Energy and Natural Resources.
Ms. CANTWELL. Mr. President, today I am introducing the White Salmon
Wild and Scenic Rivers Act. I am pleased to be joined by the Senior
Senator from Washington (Mrs. Murray), who has been a strong supporter
of this legislation.
This bill would designate some 20 miles of the main stem of the upper
White Salmon River Salmon and one of its tributaries, Cascade Creek,
all within the Gifford Pinchot National Forest, as components of the
National Wild and Scenic Rivers System. By designating this upper third
of the White Salmon, we can permanently protect this special river as a
premiere recreational destination, a Southwest Washington economic
resource, and an important wildlife habitat.
I am happy to note that my delegation colleague, Congressman Baird,
recently offered identical legislation in the House.
The White Salmon River's remarkable beauty and pristine condition are
not in question. In fact, the lower eight miles of the river received
protection when Congress granted that stretch of the river Wild and
Scenic status in 1986. As we saw then, its protected status hasn't
prevented residents and visitors from taking advantage of the unique
recreational opportunities the White Salmon River offers. Extending
Wild and Scenic protection to the river's upper reaches today is an
important step forward in protecting even more of its wild character
for fishing, boating, and other recreational activities.
As one of the best whitewater rivers in the Pacific Northwest, the
White Salmon already supports a number of whitewater rafting companies.
About 12,000 whitewater boaters visit the river each year. So I see
this designation as not just protecting a pristine river, but also its
beneficial impact on the local economy downstream.
Protecting the White Salmon River will help increase opportunities
for other outdoor sports, as well. This is an important sector of our
state's economy. According to the Washington Department of Fish and
Wildlife, fish and wildlife related recreation pumps nearly $2.2
billion per year into our economy. And we rank first in the Northwest
and eighth in the nation in spending by sport fishers.
Safeguarding the White Salmon through this designation will also be
an important step toward restoring wildlife habitat. Once the Condit
Dam is removed from the lower reach of the river, the White Salmon will
again become valuable spawning habitat for salmon and steelhead.
I am proud that identical legislation to the measure I introduce
today passed the Senate unanimously on October 10, 2004. While the bill
narrowly missed clearing the House of Representatives, I am confident
that because this bill has a broad range of support, and is a true win-
win proposal for local interests, that it will become law during the
109th Congress.
Mr. President, I look forward to working with my colleagues in the
Senate, as well as other members of the Washington state congressional
delegation, to ensure swift passage of this important legislation. I
ask unanimous consent that a copy of the legislation be printed in the
Record at the conclusion of my remarks.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 74

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Upper White Salmon Wild and
Scenic Rivers Act''.

SEC. 2. UPPER WHITE SALMON WILD AND SCENIC RIVER.

Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C.
1274(a)) is amended by adding at the end the following:
`` ( ) White Salmon River, Washington.--The 20 miles of
river segments of the main stem of the White Salmon River and
Cascade Creek, Washington, to be administered by the
Secretary of Agriculture in the following classifications:
``(A) The approximately 1.6-mile segment of the main stem
of the White Salmon River from the headwaters on Mount Adams
in section 17, township 8 north, range 10 east, downstream to
the Mount Adams wilderness boundary as a wild river.
``(B) The approximately 5.1-mile segment of Cascade Creek
from its headwaters on Mount Adams in section 10, township 8
north, range 10 east, downstream to the Mount Adams
Wilderness boundary as a wild river.
``(C) The approximately 1.5-mile segment of Cascade Creek
from the Mount Adams Wilderness boundary downstream to its
confluence with the White Salmon River as a scenic river.
``(D) The approximately 11.8-mile segment of the main stem
of the White Salmon River from the Mount Adams Wilderness
boundary downstream to the Gifford Pinchot National Forest
boundary as a scenic river.''.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as are
necessary to carry out this Act.
______

By Ms. CANTWELL:
S. 75. A bill to permanently increase the maximum annual contribution
allowed to be made to Coverdell education savings accounts; to the
Committee on Finance.
Ms. CANTWELL. Mr. President, today I am introducing two pieces of
legislation to help families save for their children's education.
In today's global marketplace, ensuring access to high-quality
education--starting in early childhood and grade school, moving on to
college and beyond--is central in maintaining America's competitive
edge. To make paying for school easier, I am introducing two pieces of
legislation that would expand Coverdell Education Savings Accounts or
ESAs: The Education Savings for Students Act and College Savings Act.
Coverdell ESAs are trusts created solely for the educational benefit
of any child under the age of 18. Contributions to a Coverdell
Education Savings account can be used toward a child's education from
kindergarten through 12th grade, college, and even graduate school. All
earnings in the account grow tax-free and can be withdrawn on a tax-
deferred basis, if used for educational expenses. Currently, annual
contributions to each Coverdell ESA cannot exceed $2,000. But this
particular provision will sunset on 12/31/2010 unless Congress takes
action to extend it, otherwise the maximum contribution will drop back
to a previously set stipulation of $500.
My bill, the Education for Students Act would expand the existing
Coverdell ESA by permanently increasing the maximum annual contribution
from $2,000 to $5,000. This bill keeps the current Coverdell ESA
provision that investment earnings accumulate tax-free and withdrawals
from the account are tax-exempt when the child uses the funds for
school.
My other bill, the College Savings Act would also permanently
increase the maximum annual contribution to a Coverdell ESA to $5,000.
Instead of anticipating future earnings, families would be able to
deduct the amount they contribute to their education savings account
from income.
Rather than putting away money ad-hoc, both bills provide a financial
incentive to save for college or other educational expenses. And since
there is no limit on the number of Coverdell ESAs that may be opened
for a child under age 18, parents have the flexibility to set aside
money now through deductible contributions or bank on projected savings
through tax-deferred earnings and withdrawals, or even take on both
options. The College Savings and Education Savings for Students Acts
will help families plan for future educational expenses, paving a path
to financial self-sufficiency.
I understand that all families are different. Saving for college may
be the last thing on a parent's mind, especially when their child is
young and their family has significant financial needs. But just as
fast as our children

[[Page S251]]

grow, so does the cost of tuition. Mounting prices for books and
materials, plus room and board have made colleges and universities less
affordable for most families.
College is expensive. There are many parents whose children aim to go
to college, but soon discover they can't afford it because the price of
pursuing a higher education costs too much. If the College Savings and
Education for Students Acts became law, families would have another
powerful tool to help their children realize their educational dreams.
By saving money early and often, families won't feel as hard hit by
skyrocketing college prices because you'll know what's coming in and
what's going out of these accounts.
In 2002, the National Center for Public Policy and Higher Education
reported on the national trends of rising college prices. The Center
determined that if educational costs are unaddressed there will be
adverse consequences for expanding students' opportunities to pursue a
higher education and future career.
This report found that over the last two decades, the cost of
attending two- and four-year public and private colleges have not only
grown more rapidly than inflation, but faster than family incomes,
increasing the share of family income that is needed to pay for tuition
and other college expenses. From 1991 through 2001, tuition at four-
year public colleges and universities rose faster than family income in
41 states, including my home state of Washington.
The Washington State Higher Education Coordinating Board reports
that, over the last ten years, tuition and fees have far outpaced
family income, increasing 89 percent compared to 51 percent in per
capita personal income in my state. In comparison, the cost of most
consumer goods increased an average of 20 percent during the same time.
Per capita personal income in Washington increased 51 percent during
this same period.
As a result, more students and families at all income levels are
borrowing more money than ever before to pay for college. According to
a recent study by the College Board, nonfederal borrowing reached $11.3
billion in 2003-04, up 39 percent over the previous year, and jumping
nearly 150 percent in three years. Over $10 billion of these loans are
private. Over the past five years, borrowing through banks and other
private lenders has increased from 7 percent to 16 percent of education
loan volume.
Although borrowing is an acceptable way to pay for college, the
financial consequences of high debt can still ensue, and students spend
years paying back loans, undermining their ability to purchase a home
or save for retirement. Additionally, college students on average
graduate with about $3,300 in credit card debit alone. Concern about
the increase in educational loan debt may cause students to spend more
time working than attending class or to opt out of enrolling in college
altogether.
Moreover, the steepest increases in college and university tuition
have been imposed during times of greatest economic hardship. Just in
the past three years, our economy has experienced a loss of 1.8 million
private sector jobs and 2.7 million manufacturing jobs. Preparing
America's workforce and keeping up with the demand for skilled workers
across all sectors of the 21st century economy is my priority. If we
want to maintain our economic competitiveness, it is imperative that
there are opportunities for individuals to fully take advantage of
educational opportunities.
The Bureau of Labor Statistics reports that six of the ten fastest-
growing occupations in the U.S. economy require an associate's degree
or bachelor's degree, and that all ten of these careers will require
some type of skills training. By 2010, 40 percent of all job growth
will require some form of post-secondary education.
On average, a college graduate earns nearly 73 percent more than a
typical high school graduate. In 2003, the average worker in the U.S.
with a four-year college degree earned just under $50,000, over 60
percent more than the $30,800 earned by the average worker with a high
school diploma, reports the College Board. Those with advanced degrees
earn two to three times as much as high school graduates. In addition,
society reaps the benefits of an educated workforce by improving
quality of life and overall, the well-being of our communities.
Affordability is key to expanding opportunities to go to college.
Saving for college early and often will help lift the pressures off of
parents who are feeling the financial squeeze of increased tuition and
fees.
Because my family qualified for financial aid, I was able to work my
way through college using Pell grant funding. But there are many
families who do not qualify for Pell or other sources of financial aid.
For these families, Coverdell Education Savings plans provide
necessary relief for the middle class. The purpose of education savings
plans are to increase saving by increasing net returns. Today, parents
can put up to $2,000 a year into a Coverdell Education Savings account.
The actual contribution is not tax deductible, but all earnings in this
account are free from taxes when they are withdrawn to pay for school.
However, the current $2,000 annual limit on Coverdell contributions
will be repealed in 2010 unless Congress acts to extend it. If we don't
extend the contribution level, the maximum contribution will drop to
$500.
While the current tax benefit makes it easier to save for college,
the Education Savings for Students Act would increase the annual
contributions from $2,000 to $5,000; making this change permanent
ensures greater savings for families. By increasing the amount parents
can put aside for their children's college savings, middle-income
parents will be able to save more easily for their child's college
education.
Say, for example, parents start saving when their child turns eight
years old. If they put away just $100.00 a month--at an interest rate
of savings of four percent--by the time their kid turns 18, their
account would have earned more than $12,400 in interest. Parents will
save over $3,100 in taxes when that child is old enough to go to
school.
In addition to projected savings, parents also have the option to
save now. The College Savings Act would allow families to deduct
Coverdell ESA contributions from their taxes each year.
Mr. President, both of these bills, the College Savings Act and the
Education Savings for Students Act are financial incentives for people
to save by allowing families to deduct the amount they contribute and
take tax-free earnings when their child is ready to go to school. These
bills would further lessen the financial burden that parents bear by
saving money early and often.
Permanently expanding the Coverdell maximum contribution from its
current threshold of $2,000 to $5,000 a year and allowing this
contribution to be tax deductible is a common-sense savings vehicle
that keeps future college costs from spinning out of control.
Increasing contribution caps will make school more affordable at a time
when a college education and advanced job training is becoming more and
more important for economic success.
I urge my colleagues to support these measures and I ask unanimous
consent that the full text of these bills be printed in the Record.
There being no objection, the bills was ordered to be printed in the
Record, as follows:

S. 75

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``The Education Savings for
Students Act of 2005''.

SEC. 2. INCREASE IN MAXIMUM ANNUAL CONTRIBUTION FOR COVERDELL
EDUCATION SAVINGS ACCOUNTS.

(a) In General.--Section 530(b)(1)(A)(iii) of the Internal
Revenue Code of 1986 (defining Coverdell education savings
account) is amended by striking ``$2,000'' and inserting
``$5,000''.
(b) Conforming Amendment.--Section 4973(e)(1)(A) of the
Internal Revenue Code of 1986 is amended by striking
``$2,000'' and inserting ``$5,000''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.

S. 76

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``The College Savings Act of
2005''.

[[Page S252]]

SEC. 2. INCREASE IN MAXIMUM ANNUAL CONTRIBUTION FOR COVERDELL
EDUCATION SAVINGS ACCOUNTS.

SEC. 3. EDUCATION SAVINGS ACCOUNTS.

(a) Deduction for Contributions.--Part VII of subchapter B
of chapter 1 of the Internal Revenue Code of 1986 (relating
to additional itemized deductions for individuals) is amended
by redesignating section 224 as section 225 and inserting
after section 223 the following new section:

``SEC. 224. EDUCATION SAVINGS.

``(a) Deduction Allowed.--In the case of an individual,
there shall be allowed as a deduction an amount equal to the
amount of contributions made by such individual to an
education savings account during the taxable year.
``(b) Definitions.--
``(1) Education savings account.--The term `education
savings account' means a trust created or organized in the
United States exclusively for the purpose of paying the
qualified education expenses of an individual who is the
designated beneficiary of the trust (and designated as an
education savings account at the time created or organized),
but only if the written governing instrument creating the
trust meets the following requirements:
``(A) No contribution will be accepted--
``(i) unless it is in cash,
``(ii) after the date on which such beneficiary attains age
18, or
``(iii) except in the case of rollover contributions
described in subsection (e)(4), if such contribution would
result in aggregate contributions for the taxable year
exceeding $5,000.
``(B) The trustee is a bank (as defined in section 408(n))
or another person who demonstrates to the satisfaction of the
Secretary that the manner in which that person will
administer the trust will be consistent with the requirements
of this section or who has so demonstrated with respect to
any individual retirement plan or any Coverdell education
savings account.
``(C) No part of the trust assets will be invested in life
insurance contracts.
``(D) The assets of the trust shall not be commingled with
other property except in a common trust fund or common
investment fund.
``(E) Except as provided in subsection (e)(6), any balance
to the credit of the designated beneficiary on the date on
which the beneficiary attains age 30 shall be distributed
within 30 days after such date to the beneficiary or, if the
beneficiary dies before attaining age 30, shall be
distributed within 30 days after the date of death of such
beneficiary.
``(F) The age limitations in subparagraphs (A)(ii) and (E),
and paragraphs (4) and (5) of subsection (e), shall not apply
to any designated beneficiary with special needs (as
determined under regulations prescribed by the Secretary).
``(2) Qualified education expenses.--The term `qualified
education expenses' has the meaning given such term in
section 530(b)(2).
``(3) Certain rules to apply.--Rules similar to the
following rules shall apply for purposes of this section:
``(A) Section 219(d)(2) (relating to no deduction for
rollovers),
``(B) Section 530(b)(5) (relating to time when
contributions deemed made),
``(C) Section 530(f) (relating to community property laws),
``(D) Section 530(g) (relating to custodial accounts), and
``(E) Section 530(h) (relating to reports).
``(c) Reduction in Permitted Contribution Based on Adjusted
Gross Income.--
``(1) In general.--The maximum amount which a contributor
could otherwise make to an account under this section shall
be reduced by an amount which bears the same ratio to such
maximum amount as--
``(A) the excess of--
``(i) the contributor's modified adjusted gross income for
such taxable year, over
``(ii) $95,000 ($190,000 in the case of a joint return),
bears to
``(B) $15,000 ($30,000 in the case of a joint return).
``(2) Modified adjusted gross income.--For purposes of
paragraph (1), the term `modified adjusted gross income'
means the adjusted gross income of the taxpayer for the
taxable year increased by any amount excluded from gross
income under section 911, 931, or 933.
``(d) Tax Treatment of Accounts.--
``(1) In general.--An education savings account is exempt
from taxation under this subtitle unless such account has
ceased to be an education savings account. Notwithstanding
the preceding sentence, any such account is subject to the
taxes imposed by section 511 (relating to imposition of tax
on unrelated business income of charitable, etc.
organizations).
``(2) Account terminations.--Rules similar to the rules of
paragraphs (2) and (4) of section 408(e) shall apply to
education savings accounts, and any amount treated as
distributed under such rules shall be treated as not used to
pay qualified education expenses.
``(e) Treatment of Distributions.--
``(1) In general.--Any distribution shall be includible in
the gross income of the distributee in the manner as provided
in section 72.
``(2) Special rules for applying estate and gift taxes with
respect to account.--Rules similar to the rules of paragraphs
(2), (4), and (5) of section 529(c) shall apply for purposes
of this section.
``(3) Additional tax for distributions not used for
educational expenses.--
``(A) In general.--The tax imposed by this chapter for any
taxable year on any taxpayer who receives a payment or
distribution from an education savings account which is in
excess of the qualified education expenses of the designated
beneficiary during the taxable year shall be increased by 10
percent of the amount of such excess.
``(B) Exceptions.--Subparagraph (A) shall not apply if the
payment or distribution is--
``(i) made to a beneficiary (or to the estate of the
designated beneficiary) on or after the death of the
designated beneficiary,
``(ii) attributable to the designated beneficiary's being
disabled (within the meaning of section 72(m)(7)),
``(iii) made on account of a scholarship, allowance, or
payment described in section 25A(g)(2) received by the
account holder to the extent the amount of the payment or
distribution does not exceed the amount of the scholarship,
allowance, or payment, or
``(iv) made on account of the attendance of the designated
beneficiary at the United States Military Academy, the United
States Naval Academy, the United States Air Force Academy,
the United States Coast Guard Academy, or the United States
Merchant Marine Academy, to the extent that the amount of the
payment or distribution does not exceed the costs of advanced
education (as defined by section 2005(e)(3) of title 10,
United States Code, as in effect on the date of the enactment
of this section) attributable to such attendance.
``(C) Contributions returned before certain date.--
Subparagraph (A) shall not apply to the distribution of any
contribution made during a taxable year on behalf of the
designated beneficiary if--
``(i) such distribution is made before the first day of the
sixth month of the taxable year following the taxable year,
and
``(ii) such distribution is accompanied by the amount of
net income attributable to such excess contribution.

Any net income described in clause (ii) shall be included in
gross income for the taxable year in which such excess
contribution was made.
``(4) Rollover contributions.--Paragraph (1) shall not
apply to any amount paid or distributed from an education
savings account to the extent that the amount received is
paid, not later than the 60th day after the date of such
payment or distribution, into another education savings
account for the benefit of the same beneficiary or a member
of the family (within the meaning of section 529(e)(2)) of
such beneficiary who has not attained age 30 as of such date.
The preceding sentence shall not apply to any payment or
distribution if it applied to any prior payment or
distribution during the 12-month period ending on the date of
the payment or distribution.
``(5) Change in beneficiary.--Any change in the beneficiary
of an education savings account shall not be treated as a
distribution for purposes of paragraph (1) if the new
beneficiary is a member of the family (as so defined) of the
old beneficiary and has not attained age 30 as of the date of
such change.
``(6) Special rules for death and divorce.--Rules similar
to the rules of paragraphs (7) and (8) of section 220(f)
shall apply. In applying the preceding sentence, members of
the family (as so defined) of the designated beneficiary
shall be treated in the same manner as the spouse under such
paragraph (8).
``(7) Deemed distribution on required distribution date.--
In any case in which a distribution is required under
subsection (b)(1)(E), any balance to the credit of a
designated beneficiary as of the close of the 30-day period
referred to in such subsection for making such distribution
shall be deemed distributed at the close of such period.''.
(b) Tax on Excess Contributions.--
(1) In general.--Subsection (a) of section 4973 of the
Internal Revenue Code of 1986 (relating to tax on excess
contributions to certain tax-favored accounts and annuities)
is amended by striking ``or'' at the end of paragraph (4), by
inserting ``or'' at the end of paragraph (5), and by
inserting after paragraph (5) the following new paragraph:
``(6) an education savings account (as defined in section
224),''.
(2) Excess contribution.--Section 4973 of such Code is
amended by adding at the end the following new subsection:
``(h) Excess Contributions to Education Savings Accounts.--
For purposes of this section--
``(1) In general.--In the case of education savings
accounts maintained for the benefit of any one beneficiary,
the term `excess contributions' means the sum of--
``(A) the amount by which the amount contributed for the
taxable year to such accounts exceeds $5,000 (or, if less,
the sum of the maximum amounts permitted to be contributed
under section 224(c) by the contributors to such accounts for
such year); and

[[Page S253]]

``(B) the amount determined under this subsection for the
preceding taxable year, reduced by the sum of--
``(i) the distributions out of the accounts for the taxable
year (other than distributions described in section
224(e)(4)); and
``(ii) the excess (if any) of the maximum amount which may
be contributed to the accounts for the taxable year over the
amount contributed to the accounts for the taxable year.
``(2) Special rules.--For purposes of paragraph (1), the
following contributions shall not be taken into account:
``(A) Any contribution which is distributed out of the
education savings account in a distribution to which section
224(e)(3)(C) applies.
``(B) Any rollover contribution.''.
(c) Failure To Provide Reports on Education Savings
Accounts.--Paragraph (2) of section 6693(a) of the Internal
Revenue Code of 1986 (relating to failure to provide reports
on individual retirement accounts or annuities) is amended by
striking ``and'' at the end of subparagraph (D), by striking
the period at the end of subparagraph (E) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(F) section 224(b)(3)(E) (relating to education savings
accounts).''.
(d) Clerical Amendment.--The table of section for part VII
of subchapter B of chapter 1 of the Internal Revenue Code of
1986 is amended by striking the item relating to section 224
and inserting the following new items:

``Sec. 224. Education savings.
``Sec. 225. Cross reference.''.

(e) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2004.
______

By Mr. SESSIONS (for himself and Mr. Lieberman):
S. 77. A bill to amend titles 10 and 38, United States Code, to
improve death benefits for the families of deceased members of the
Armed Forces, and for other purposes; to the Committee on Armed
Services.
Mr. SESSIONS. Mr. President, I want to take a few minutes to discuss
legislation that I offer today along with Senator Lieberman and I
believe 15 other cosponsors called the HEROES Act of 2005, the Honoring
Every Requirement of Exemplary Service Act, that will increase
substantially the death benefits provided to the families of our
service personnel who lose their lives in service to their country. I
see Senator Allen. I know he deeply cares about this issue. We are
working together on this same idea.
Fundamentally, this bill would raise the basic death benefit from
$12,420 to $100,000. It will raise the servicemen's group life
insurance payment from $250,000 to $400,000. Senator Lieberman and I,
all of us in this body believe we need to make sure that our
servicemen's families are well taken care of if something were to
happen to them.
I am very pleased that Senator Frist on Friday made this part of his
leadership package and that Senator John Warner, chairman of the Armed
Services Committee, promised quick action in the committee on the
subject. And I am very pleased that the Defense Department has worked
with us in helping to craft this legislation, actually supports it and
the funding it will require.
I asked last year about it when our defense bill moved. When no
consensus was reached as that bill was moving, we put in the
legislation a requirement that the DOD work with the Congress to
develop a plan to improve death benefits, and they have done so. It is
the right thing to do.
Just last Monday, I was in Iraq. I had the ability to travel
throughout that country, and we flew back from Baghdad to Kuwait about
9 or 10 that night. On the C-130 in which we flew back, in the bay of
that great aircraft were two flag-draped coffins of American service
personnel who had given their life to their country. There should be no
doubt in any soldier's mind that if something happens to them while in
service to their country, their family will be well taken care of. The
American people want that. I believe the people in this Congress will
support that.
This legislation needs to be passed promptly. I am proud that Senator
Warner and Senator Frist have indicated they would accelerate it and do
what they can to see that it does become law. I look forward to working
with Senator Lieberman and my fellow Senators to move this bill to
final passage.
I see the chairman of Armed Services, Senator Warner. I express my
appreciation to him for his commitment to do what he can to move this
bill forward promptly.
I yield the floor.
The PRESIDING OFFICER. The Senator from Virginia.
Mr. WARNER. Mr. President, I thank my colleague for his thoughtful
remarks. I so commit to do that.
Ms. SNOWE. Mr. President, America's finest citizens and the world's
greatest military men and women continue to put themselves in harm's
way in support of the establishment of freedom and democracy in Iraq
and Afghanistan. They also are helping millions throughout South and
Southeast Asia to recover from the devastating tsunami that destroyed
so many lives.
These great Americans have made a commitment to serve this country
come what may. They are prepared to make the ultimate sacrifice with
the knowledge that in doing so, they are defending the security of our
Nation and advancing the very ideals upon which this great country was
founded.
Just as these men and women have agreed to make this commitment, so
too must we commit to supporting the families of these soldiers who
give the ``last full measure of devotion'' for us. It is the very least
we can do to provide a greater degree of peace of mind to our service
men and women, who should always know and trust that a grateful America
will stand with and support their family members should tragedy strike.
It is in recognition of their extraordinary selflessness that I join
my colleagues, Mr. Sessions, Mr. Lieberman and others in cosponsoring
the HEROES Act of 2005. Although Congress last year raised the amount
offered to families following the death of a service man or woman for
the first time in over a decade, I continue to believe that even that
amount is an inadequate level of support in this day and age.
For decades, we offered a nominal amount of between $800 and $3,000,
depending upon rank, for immediate expenses to surviving family members
upon the death of a member of our armed forces. In the wake of the 1991
Gulf War, Congress raised this to a flat $6,000, of which half was
subject to income tax. Finally, we raised that to $12,000, made the
entire amount tax-free, and tied future increases to the annual
increase in base pay.
Of course, no amount of money can replace the loved ones that are
lost in combat. It's an unimaginable loss which can never be
ameliorated by financial comfort. However, despite the increase in the
level of support last year, the amount that we currently offer the
families of our soldiers remains woefully inadequate to try to begin to
address the immediate costs of funeral arrangements, the loss of what
may in most cases be the primary wage earner in the family and the
additional costs associated with the loss of a mother, father, or
spouse.
When one considers how long it may take for a family to regain its
footing, how surviving family members may need to move out of military-
provided housing and to secure private housing elsewhere, how a
surviving spouse may need to search for employment to support his or
her family, and how long it may take for insurance benefits to be paid
out, this improvement in benefits is the very least we can do to
alleviate the burdens and financial worry that come with such a loss.
I strongly support raising the amount to $100,000, in addition to
increasing the maximum benefit of the Servicemen's Group Life Insurance
policy from $250,000 to $400,000, as this bill does.
In acknowledgment of and appreciation for the sacrifices of our brave
men and women in uniform, I hope that we can all agree on the need to
help ensure that the futures of their children are secured should they
sacrifice their lives in combat.
It is for the sake of our brave servicemen and women and the families
who depend on them that we introduce this legislation and for them that
I urge full support.
______

By Mrs. HUTCHISON (for herself, Mr. Brownback, Mr. Cornyn, Mr.
Bunning, Mr. Burns, Mr. Hagel, and Mr. Ensign):
S. 78. A bill to make permanent marriage penalty relief; to the
Committee on Finance.
Ms. HUTCHISON. Mr. President I am pleased to introduce a bill to
provide

[[Page S254]]

permanent tax relief from the marriage penalty--the most egregious,
anti-family provision that has been in the tax code. One of my highest
priorities in the U.S. Senate has been to relieve American taxpayers of
this punitive burden.
Over the past four years we have made important strides to eliminate
this unfair tax and provide marriage penalty relief by raising the
standard deduction and enlarging the 15 percent tax bracket for married
joint filers to twice that of single filers. Before these provisions
were changed, 44 million married couples, including 2.4 million Texas
families, paid an average penalty of $1,480.
Enacting marriage penalty relief has been a giant step for tax
fairness, but it may be fleeting. Even as married couples use the money
they now save to put food on the table and clothes on their children, a
tax increase looms in the future. Since the 2001 tax relief bill was
restricted, the marriage penalty provisions will only be in effect
through 2010. In 2011, marriage will again be a taxable event and 43
percent of married couples will again pay more in taxes unless we act
decisively.
Given the challenges many families face in making ends meet, we must
make sure we do not backtrack on this important reform.
The benefits of marriage are well established, yet, without marriage
penalty relief, the tax code provides a significant disincentive for
people to walk down the aisle. Marriage is a fundamental institution in
our society and should not be discouraged by the IRS. Children living
in a married household are far less likely to live in poverty or to
suffer from child abuse. Research indicates they are less likely to be
depressed or have developmental problems. Scourges such as adolescent
drug use are less common in married families, and married mothers are
less likely to be victims of domestic violence.
We should celebrate marriage, not penalize it. The bill I am offering
would make marriage penalty relief permanent, because we cannot be
satisfied until couples never again must decide between love and money.
Marriage should not be a taxable event.
I call on the Senate to finish the job we started to make marriage
penalty relief permanent today.
Mr. President, I ask unanimous consent that a copy of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 78

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Permanent Marriage Penalty
Relief Act of 2005''.

SEC. 2. REPEAL OF SUNSET ON MARRIAGE PENALTY RELIEF.

Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions
of such Act) shall not apply to sections 301, 302, and 303 of
such Act (relating to marriage penalty relief).
______

By Mr. INOUYE:
S. 79. A bill to require the Secretary of the Army to determine the
validity of the claims of certain Filipinos that they performed
military service on behalf of the United States during World War II; to
the Committee on Veterans' Affairs.
Mr. INOUYE. Mr. President, I am reintroducing legislation today that
would direct the Secretary of the Army to determine whether certain
nationals of the Philippine Islands performed military service on
behalf of the United States during World War II.
Mr. President, our Filipino veterans fought side by side with
Americans and sacrificed their lives on behalf of the United States.
This legislation would confirm the validity of their claims and further
allow qualified individuals the opportunity to apply for military and
veterans benefits that, I believe, they are entitled to. As this
population becomes older, it is important for our nation to extend its
firm commitment to the Filipino veterans and their families who
participated in making us the great nation that we are today.
Mr. President, I ask unanimous consent that the text of my bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 79

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. DETERMINATIONS BY THE SECRETARY OF THE ARMY.

(a) In General.--Upon the written application of any person
who is a national of the Philippine Islands, the Secretary of
the Army shall determine whether such person performed any
military service in the Philippine Islands in aid of the
Armed Forces of the United States during World War II which
qualifies such person to receive any military, veterans', or
other benefits under the laws of the United States.
(b) Information To Be Considered.--In making a
determination for the purpose of subsection (a), the
Secretary shall consider all information and evidence
(relating to service referred to in subsection (a)) that is
available to the Secretary, including information and
evidence submitted by the applicant, if any.

SEC. 2. CERTIFICATE OF SERVICE.

(a) Issuance of Certificate of Service.--The Secretary of
the Army shall issue a certificate of service to each person
determined by the Secretary to have performed military
service described in section 1(a).
(b) Effect of Certificate of Service.--A certificate of
service issued to any person under subsection (a) shall, for
the purpose of any law of the United States, conclusively
establish the period, nature, and character of the military
service described in the certificate.

SEC. 3. APPLICATIONS BY SURVIVORS.

An application submitted by a surviving spouse, child, or
parent of a deceased person described in section 1(a) shall
be treated as an application submitted by such person.

SEC. 4. LIMITATION PERIOD.

The Secretary of the Army may not consider for the purpose
of this Act any application received by the Secretary more
than two years after the date of the enactment of this Act.

SEC. 5. PROSPECTIVE APPLICATION OF DETERMINATIONS BY THE
SECRETARY OF THE ARMY.

No benefits shall accrue to any person for any period
before the date of the enactment of this Act as a result of
the enactment of this Act.

SEC. 6. REGULATIONS.

The Secretary of the Army shall prescribe regulations to
carry out sections 1, 3, and 4.

SEC. 7. RESPONSIBILITIES OF THE SECRETARY OF VETERANS
AFFAIRS.

Any entitlement of a person to receive veterans' benefits
by reason of this Act shall be administered by the Department
of Veterans Affairs pursuant to regulations prescribed by the
Secretary of Veterans Affairs.

SEC. 8. DEFINITION.

In this Act, the term ``World War II'' means the period
beginning on December 7, 1941, and ending on December 31,
1946.
______

By Mr. INOUYE:
S. 80. A bill to restore the traditional day of observance of
Memorial Day, and for other purposes; to the Committee on the
Judiciary.
Mr. INOUYE. Mr. President, in our effort to accommodate many
Americans by making Memorial Day the last Monday in May, we have lost
sight of the significance of this day to our nation. My bill would
restore Memorial Day to May 30 and authorize our flag to fly at half
mast on that day. In addition, this legislation would authorize the
President to issue a proclamation designating Memorial Day and Veterans
Day as days for prayer and ceremonies. This legislation would help
restore the recognition our veterans deserve for the sacrifices they
have made on behalf of our Nation.
Mr. President, I ask unanimous consent that the text of my bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 80

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. RESTORATION OF TRADITIONAL DAY OF OBSERVANCE OF
MEMORIAL DAY.

(a) Designation of Legal Public Holiday.--Section 6103(a)
of title 5, United States Code, is amended by striking
``Memorial Day, the last Monday in May.'' and inserting the
following:
``Memorial Day, May 30.''.
(b) Observances and Ceremonies.--Section 116 of title 36,
United States Code, is amended--
(1) in subsection (a), by striking ``The last Monday in
May'' and inserting ``May 30''; and
(2) in subsection (b)--
(A) by striking ``and'' at the end of paragraph (3);
(B) by redesignating paragraph (4) as paragraph (5); and
(C) by inserting after paragraph (3) the following new
paragraph (4):
``(4) calling on the people of the United States to observe
Memorial Day as a day of ceremonies for showing respect for
American veterans of wars and other military conflicts;
and''.

[[Page S255]]

(c) Display of Flag.--Section 6(d) of title 4, United
States Code, is amended by striking ``the last Monday in
May;'' and inserting ``May 30;''.
______

By Mr. INOUYE:
S. 83. A bill to amend the Internal Revenue Code of 1986 to provide
tax relief for the conversion of cooperative housing corporations into
condominiums; to the Committee on Finance.
Mr. INOUYE. Mr. President, today I rise to introduce legislation
which would amend the Internal Revenue Code of 1986 to allow
Cooperative Housing Corporations (co-ops), to convert to condominium
forms of ownership.
Under current law, a conversion from cooperative shareholding to
condominium ownership is taxable at a corporate level as well as an
individual level. The conversion is treated as a corporate liquidation,
and therefore taxed accordingly. In addition, a capital gains tax is
levied on any increase between the owner's basis in the co-op share
pre-conversion and the market value of the condominium interest post-
conversion. This double taxation dissuades condominium conversion
because the owner is being taxed on the transaction which is nothing
more than a change in the form of ownership. While the Internal Revenue
Service concedes that there are no discernable advantages to society of
the cooperative form of ownership, they do not view federal tax
statutes as providing sufficient flexibility with which to address the
obstacles of conversion.
Cooperative housing organizes the ownership structure into a
corporation, with shares of stock for each apartment unit, which are
sold to buyers. The corporation then issues a proprietary lease
entitling the owner of the stock to the use of the unit in perpetuity.
Because the investment is in the form of a share of stock, investors
sometimes lose their entire investment as a result of debt incurred by
the corporation in construction and development. In addition, due to
the structure of a cooperative housing corporation, a prospective
purchaser of shares in the corporation from an existing tenant-
stockholders has difficulty obtaining mortgage financing for the
purchase. Furthermore, tenant-stockholders of cooperative housing also
encounter difficulties in securing bank loans for the full value of
their investment.
As a result, owners of cooperative housing are increasingly looking
toward conversion to the condominium structure of ownership.
Condominium ownership permits the owner of a unit to own the unit
itself, eliminating the cooperative housing dilemma of corporate debt
that supercedes the investment of cooperative housing share owners, and
other financial concerns.
The legislation I introduce today will remove the penalty of double
taxation from the conversion of cooperative housing to condominium
ownership, and will greatly benefit co-op owners across the nation. The
bill does not apply to cooperatives which have been or are now being
financed by any federal, state, or local programs for the purpose of
assisting in the construction of affordable housing cooperatives or the
conversion of rental units to affordable housing cooperatives. I urge
my colleagues' consideration and support for this measure.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 83

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. NONRECOGNITION OF GAIN OR LOSS ON DISTRIBUTIONS BY
COOPERATIVE HOUSING CORPORATIONS.

(a) In General.--Section 216(e) of the Internal Revenue
Code of 1986 (relating to distributions by cooperative
housing corporations) is amended to read as follows:
``(e) Distributions by Cooperative Housing Corporations.--
``(1) In general.--Except as provided in regulations--
``(A) no gain or loss shall be recognized to a cooperative
housing corporation on the distribution by such corporation
of a dwelling unit to a stockholder in such corporation if
such distribution is in exchange for the stockholder's stock
in such corporation, and
``(B) no gain or loss shall be recognized to a stockholder
of such corporation on the transfer of such stockholder's
stock in an exchange described in subparagraph (A).
``(2) Basis.--The basis of a dwelling unit acquired in a
distribution to which paragraph (1) applies shall be the same
as the basis of the stock in the cooperative housing
corporation for which it is exchanged, decreased in the
amount of any money received by the taxpayer in such
exchange.
``(3) Applicability.--This subsection shall not apply with
respect to any dwelling unit the basis of which includes
financing under any Federal, State, or local program for the
purpose of assisting the construction of affordable housing
cooperatives or the conversion of rental units to affordable
housing cooperatives.''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions after the date of the enactment
of this Act.
______

By Mr. INOUYE:
S. 84. A bill to amend the Internal Revenue Code of 1986 to exempt
certain sightseeing flights from taxes on air transportation; to the
Committee on Finance.
Mr. INOUYE. Mr. President, I rise to introduce a bill that would
amend the Internal Revenue Code of 1986 to exempt certain sightseeing
flights from the air transportation excise tax. A clarifying amendment
to the Tax Code is needed due to a problem that exists in the
application of the excise tax.
In 1986, the Internal Revenue Service (IRS), issued a Private Letter
Ruling in which it exempted one Hawaii-based air tour operator from
paying the air passenger transportation excise tax, but has not applied
equal treatment to other similarly situated aerial sightseeing tour
operators. It is my belief that the IRS should be consistent in its
application of this excise tax.
Under current law, a variety of excise taxes on air transportation
are imposed to finance the Airport and Airway Trust funds program that
is administered by the Federal Aviation Administration. For example, an
air passenger transportation excise tax is imposed on users of our
nation's airports and airways. The Congress intended that the tax be
levied on passengers traveling on scheduled commercial airlines. In
addition, for the most part, the tax is imposed on each flight segment.
The Congress did not intend to have the tax applied to air tour
operators, who utilize our system of airways differently. Our national
transportation system receives little or no benefit from aerial
sightseeing operations. Air tour operations are not scheduled
commercial airlines. They are for entertainment purposes and are
circular, in that they begin and end at the same destination point.
Hawaii is among a small handful of states where our citizens can
enjoy aerial tours of sights that are remote or difficult to reach by
land. Aerial sightseeing tours are also enjoyed in Alaska, California,
Washington, Arizona, and even New York City. The imposition of the air
transportation excise tax on aerial sightseeing flights will
significantly raise the consumer price on air tours. Doing so will
cause many small aerial sightseeing tour operators, especially in my
home state, to lose customers. Many of these small companies have
struggled to stay in business after incurring significant losses in the
months following September 11, 2001, when our government imposed flight
restrictions across the nation. Those flight restrictions prevented
many flight operations in all segments of the general aviation industry
for many months into early 2002.
Accordingly, I urge my colleagues to support my bill, which would
amend the Internal Revenue Code of 1986 to exempt certain sightseeing
trips from the air transportation excise tax. Under my bill, air tour
operations would still be subject to the aviation fuel excise tax.
I ask unanimous consent that the text of my bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 84

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON
AIR TRANSPORTATION.

(a) In General.--Section 4281 of the Internal Revenue Code
of 1986 (relating to small aircraft on nonestablished lines)
is amended by adding at the end the following new sentence:
``For purposes of this section, an aircraft shall not be
considered as operated on an established line if such
aircraft is operated on a flight the sole purpose of which is
sightseeing.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect

[[Page S256]]

to transportation beginning on or after the date of the
enactment of this Act, but shall not apply to any amount paid
before such date.
______

By Mr. INOUYE:
S. 87. A bill to recognize the organization known as the National
Academies of Practice; to the Committee on the Judiciary.
Mr. INOUYE. Mr. President today I am introducing legislation that
would provide a federal charter for the National Academies of Practice.
This organization represents outstanding health care professionals who
have made significant contributions to the practice of applied
psychology, medicine, dentistry, nursing, optometry, osteopathic
medicine, pharmacy, podiatry, social work, and veterinary medicine.
When fully established, each of the ten academies will possess 150
distinguished practitioners selected by their peers. This umbrella
organization will be able to provide the Congress of the United States
and the executive branch with considerable health policy expertise,
especially from the perspective of those individuals who are in the
forefront of actually providing health care.
As we continue to grapple with the many complex issues surrounding
the delivery of health care services, it is clearly in our best
interest to ensure that the Congress has direct and immediate access to
the recommendations of an interdisciplinary body of health care
practitioners.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 87

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Academies of
Practice Recognition Act of 2005''.

SEC. 2. CHARTER.

The National Academies of Practice organized and
incorporated under the laws of the District of Columbia, is
hereby recognized as such and is granted a Federal charter.

SEC. 3. CORPORATE POWERS.

The National Academies of Practice (referred to in this Act
as the ``corporation'') shall have only those powers granted
to it through its bylaws and articles of incorporation filed
in the State in which it is incorporated and subject to the
laws of such State.

SEC. 4. OBJECTIVES AND PURPOSES OF THE CORPORATION.

The objectives and purposes for which the corporation is
organized shall be provided for in the articles of
incorporation and shall include the following:
(1) Honoring persons who have made significant
contributions to the practice of applied dentistry, medicine,
nursing, optometry, osteopathy, pharmacy, podiatry,
psychology, social work, veterinary medicine, and other
health care professions.
(2) Improving the effectiveness of such professions by
disseminating information about new techniques and
procedures, promoting interdisciplinary practices, and
stimulating multidisciplinary exchange of scientific and
professional information.
(3) Upon request, advising the President, the members of
the President's Cabinet, Congress, Federal agencies, and
other relevant groups about practitioner issues in health
care and health care policy, from a multidisciplinary
perspective.

SEC. 5. SERVICE OF PROCESS.

With respect to service of process, the corporation shall
comply with the laws of the State in which it is incorporated
and those States in which it carries on its activities in
furtherance of its corporate purposes.

SEC. 6. MEMBERSHIP.

Eligibility for membership in the corporation and the
rights and privileges of members shall be as provided in the
bylaws of the corporation.

SEC. 7. BOARD OF DIRECTORS; COMPOSITION; RESPONSIBILITIES.

The composition and the responsibilities of the board of
directors of the corporation shall be as provided in the
articles of incorporation of the corporation and in
conformity with the laws of the State in which it is
incorporated.

SEC. 8. OFFICERS OF THE CORPORATION.

The officers of the corporation and the election of such
officers shall be as provided in the articles of
incorporation of the corporation and in conformity with the
laws of the State in which it is incorporated.

SEC. 9. RESTRICTIONS.

(a) Use of Income and Assets.--No part of the income or
assets of the corporation shall inure to any member, officer,
or director of the corporation or be distributed to any such
person during the life of the charter under this Act. Nothing
in this subsection shall be construed to prevent the payment
of reasonable compensation to the officers of the corporation
or reimbursement for actual necessary expenses in amounts
approved by the board of directors.
(b) Loans.--The corporation shall not make any loan to any
officer, director, or employee of the corporation.
(c) Political Activity.--The corporation, any officer, or
any director of the corporation, acting as such officer or
director, shall not contribute to, support, or otherwise
participate in any political activity or in any manner
attempt to influence legislation.
(d) Issuance of Stock and Payment of Dividends.--The
corporation shall have no power to issue any shares of stock
nor to declare or pay any dividends.
(e) Claims of Federal Approval.--The corporation shall not
claim congressional approval or Federal Government authority
for any of its activities.
(f) Federal Advisory Activities.--While providing advice to
Federal agencies, the corporation shall be subject to the
Federal Advisory Committee Act (5 U.S.C. Appendix; 86 stat.
700).

SEC. 10. LIABILITY.

The corporation shall be liable for the acts of its
officers and agents when acting within the scope of their
authority.

SEC. 11. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

(a) Books and Records of Account.--The corporation shall
keep correct and complete books and records of account and
shall keep minutes of any proceeding of the corporation
involving any of its members, the board of directors, or any
committee having authority under the board of directors.
(b) Names and Addresses of Members.--The corporation shall
keep at its principal office a record of the names and
addresses of all members having the right to vote in any
proceeding of the corporation.
(c) Right to Inspect Books and Records.--All books and
records of the corporation may be inspected by any member
having the right to vote, or by any agent or attorney of such
member, for any proper purpose, at any reasonable time.
(d) Application of State Law.--Nothing in this section
shall be construed to contravene any applicable State law.

SEC. 12. ANNUAL REPORT.

The corporation shall report annually to the Congress
concerning the activities of the corporation during the
preceding fiscal year. The report shall not be printed as a
public document.

SEC. 13. RESERVATION OF RIGHT TO AMEND OR REPEAL CHARTER.

The right to alter, amend, or repeal this Act is expressly
reserved to Congress.

SEC. 14. DEFINITION.

In this Act, the term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, and the
territories and possessions of the United States.

SEC. 15. TAX-EXEMPT STATUS.

The corporation shall maintain its status as an
organization exempt from taxation as provided in the Internal
Revenue Code of 1986 or any corresponding similar provision.

SEC. 16. TERMINATION.

If the corporation fails to comply with any of the
restrictions or provisions of this Act the charter granted by
this Act shall terminate.
______

By Mr. INOUYE:
S. 88. A bill to allow the psychiatric or psychological examinations
required under chapter 313 of title 18, United States Code, relating to
offenders with mental disease or defect, to be conducted by a clinical
social worker; to the Committee on the Judiciary.
Mr. INOUYE. Mr. President, today I introduce legislation to amend
Title 18 of the United States Code to allow our Nation's clinical
social workers to use their mental health expertise on behalf of the
federal judiciary by conducting psychological and psychiatric exams.
I feel that the time has come to allow our Nation's judicial system
to have access to a wide range of behavioral science and mental health
expertise. I am confident that the enactment of this legislation would
be very much in our Nation's best interest.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 88

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Psychiatric and Psychlogical
Examinations Act of 2005''.

SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL WORKERS.

Section 4247(b) of title 18, United States Code, is
amended, in the first sentence, by striking ``psychiatrist or
psychologist'' and inserting ``psychiatrist, psychologist, or
clinical social worker''.
______

By Mr. INOUYE:
S. 89. A bill to amend title VII of the Public Health Service Act to
make certain graduate programs in professional

[[Page S257]]

psychology eligible to participate in various health professions loan
programs; to the Committee on Health, Education, Labor, and Pensions.
Mr. INOUYE. Mr. President, I rise to introduce legislation today to
modify Title VII of the Public Health Service Act in order to provide
students enrolled in graduate psychology programs with the opportunity
to participate in various health professions loan programs.
Providing students enrolled in graduate psychology programs with
eligibility for financial assistance in the form of loans, loan
guarantees, and scholarships will facilitate a much-needed infusion of
behavioral science expertise into our community of public health
providers. There is a growing recognition of the valuable contribution
being made by psychologists toward solving some of our Nation's most
distressing problems.
The participation of students from all backgrounds and clinical
disciplines is vital to the success of health care training. The Title
VII programs play a significant role in providing financial support for
the recruitment of minorities, women, and individuals from economically
disadvantaged backgrounds. Minority therapists have an advantage in the
provision of critical services to minority populations because often
they can communicate with clients in their own language and cultural
framework. Minority therapists are more likely to work in community
settings where ethnic minority and economically disadvantaged
individuals are most likely to seek care. It is critical that continued
support be provided for the training of individuals who provide health
care services to underserved communities.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 89

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Strengthen the Public Health
Service Act''.

SEC. 2. PARTICIPATION IN VARIOUS HEALTH PROFESSIONS LOAN
PROGRAMS.

(a) Loan Agreements.--Section 721 of the Public Health
Service Act (42 U.S.C. 292q) is amended--
(1) in subsection (a), by inserting ``, or any public or
nonprofit school that offers a graduate program in
professional psychology'' after ``veterinary medicine'';
(2) in subsection (b)(4), by inserting ``, or to a graduate
degree in professional psychology'' after ``or doctor of
veterinary medicine or an equivalent degree''; and
(3) in subsection (c)(1), by inserting ``, or schools that
offer graduate programs in professional psychology'' after
``veterinary medicine''.
(b) Loan Provisions.--Section 722 of the Public Health
Service Act (42 U.S.C. 292r) is amended--
(1) in subsection (b)(1), by inserting ``, or to a graduate
degree in professional psychology'' after ``or doctor of
veterinary medicine or an equivalent degree'';
(2) in subsection (c), in the matter preceding paragraph
(1), by inserting ``, or at a school that offers a graduate
program in professional psychology'' after ``veterinary
medicine''; and
(3) in subsection (k)--
(A) in the matter preceding paragraph (1), by striking ``or
podiatry'' and inserting ``podiatry, or professional
psychology''; and
(B) in paragraph (4), by striking ``or podiatric medicine''
and inserting ``podiatric medicine, or professional
psychology''.

SEC. 3. GENERAL PROVISIONS.

(a) Health Professions Data.--Section 792(a) of the Public
Health Service Act (42 U.S.C. 295k(a)) is amended by striking
``clinical'' and inserting ``professional''.
(b) Prohibition Against Discrimination on Basis of Sex.--
Section 794 of the Public Health Service Act (42 U.S.C. 295m)
is amended in the matter preceding paragraph (1) by striking
``clinical'' and inserting ``professional''.
(c) Definitions.--Section 799B(1)(B) of the Public Health
Service Act (42 U.S.C. 295p(1)(B)) is amended by striking
``clinical'' each place the term appears and inserting
``professional''.
______

By Mr. INOUYE:
S. 90. A bill to amend the Public Health Service Act to provide for
the establishment of a National Center for Social Work Research; to the
Committee on Health, Education, Labor, and Pensions.
Mr. INOUYE. Mr. President, I rise today to introduce legislation to
amend the Public Health Service Act for the establishment of a National
Center for Social Work Research. Social workers provide a multitude of
health care delivery services throughout America to our children,
families, the elderly, and persons suffering from various forms of
abuse and neglect. The purpose of this center is to support and
disseminate information about basic and clinical social work research,
and training, with emphasis on service to underserved and rural
populations.
While the Federal Government provides funding for various social work
research activities through the National Institutes of Health and other
Federal agencies, there presently is no coordination or direction of
these critical activities and no overall assessment of needs and
opportunities for empirical knowledge development. The establishment of
a Center for Social Work Research would result in improved behavioral
and mental health care outcomes for our Nation's children, families,
the elderly, and others.
In order to meet the increasing challenges of bringing cost-
effective, research-based, quality health care to all Americans, we
must recognize the important contributions of social work researchers
to health care delivery and the central role that the Center for Social
Work can provide in facilitating their work.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 90

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

This Act may be cited as the ``National Center for Social
Work Research Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) social workers focus on the improvement of individual
and family functioning and the creation of effective health
and mental health prevention and treatment interventions in
order for individuals to become more productive members of
society;
(2) social workers provide front line prevention and
treatment services in the areas of school violence, aging,
teen pregnancy, child abuse, domestic violence, juvenile
crime, and substance abuse, particularly in rural and
underserved communities; and
(3) social workers are in a unique position to provide
valuable research information on these complex social
concerns, taking into account a wide range of social,
medical, economic and community influences from an
interdisciplinary, family-centered and community-based
approach.

SEC. 3. ESTABLISHMENT OF NATIONAL CENTER FOR SOCIAL WORK
RESEARCH.

(a) In General.--Section 401(b)(2) of the Public Health
Service Act (42 U.S.C. 281(b)(2)) is amended by adding at the
end the following:
``(H) The National Center for Social Work Research.''.
(b) Establishment.--Part E of title IV of the Public Health
Service Act (42 U.S.C. 287 et seq.) is amended by adding at
the end the following:

``Subpart 7--National Center for Social Work Research

``SEC. 485J. PURPOSE OF CENTER.

``The general purpose of the National Center for Social
Work Research (referred to in this subpart as the `Center')
is the conduct and support of, and dissemination of targeted
research concerning social work methods and outcomes related
to problems of significant social concern. The Center shall--
``(1) promote research and training that is designed to
inform social work practices, thus increasing the knowledge
base which promotes a healthier America; and
``(2) provide policymakers with empirically-based research
information to enable such policymakers to better understand
complex social issues and make informed funding decisions
about service effectiveness and cost efficiency.

``SEC. 485K. SPECIFIC AUTHORITIES.

``(a) In General.--To carry out the purpose described in
section 485J, the Director of the Center may provide research
training and instruction and establish, in the Center and in
other nonprofit institutions, research traineeships and
fellowships in the study and investigation of the prevention
of disease, health promotion, the association of
socioeconomic status, gender, ethnicity, age and geographical
location and health, the social work care of individuals
with, and families of individuals with, acute and chronic
illnesses, child abuse, neglect, and youth violence, and
child and family care to address problems of significant
social concern especially in underserved populations and
underserved geographical areas.
``(b) Stipends and Allowances.--The Director of the Center
may provide individuals receiving training and instruction or
traineeships or fellowships under subsection (a) with such
stipends and allowances (including amounts for travel and
subsistence and dependency allowances) as the Director
determines necessary.

[[Page S258]]

``(c) Grants.--The Director of the Center may make grants
to nonprofit institutions to provide training and instruction
and traineeships and fellowships under subsection (a).

``SEC. 485L. ADVISORY COUNCIL.

``(a) Duties.--
``(1) In general.--The Secretary shall establish an
advisory council for the Center that shall advise, assist,
consult with, and make recommendations to the Secretary and
the Director of the Center on matters related to the
activities carried out by and through the Center and the
policies with respect to such activities.
``(2) Gifts.--The advisory council for the Center may
recommend to the Secretary the acceptance, in accordance with
section 231, of conditional gifts for study, investigations,
and research and for the acquisition of grounds or
construction, equipment, or maintenance of facilities for the
Center.
``(3) Other duties and functions.--The advisory council for
the Center--
``(A)(i) may make recommendations to the Director of the
Center with respect to research to be conducted by the
Center;
``(ii) may review applications for grants and cooperative
agreements for research or training and recommend for
approval applications for projects that demonstrate the
probability of making valuable contributions to human
knowledge; and
``(iii) may review any grant, contract, or cooperative
agreement proposed to be made or entered into by the Center;
``(B) may collect, by correspondence or by personal
investigation, information relating to studies that are being
carried out in the United States or any other country and,
with the approval of the Director of the Center, make such
information available through appropriate publications; and
``(C) may appoint subcommittees and convene workshops and
conferences.
``(b) Membership.--
``(1) In general.--The advisory council shall be composed
of the ex officio members described in paragraph (2) and not
more than 18 individuals to be appointed by the Secretary
under paragraph (3).
``(2) Ex officio members.--The ex officio members of the
advisory council shall include--
``(A) the Secretary of Health and Human Services, the
Director of NIH, the Director of the Center, the Chief Social
Work Officer of the Veterans' Administration, the Assistant
Secretary of Defense for Health Affairs, the Associate
Director of Prevention Research at the National Institute of
Mental Health, the Director of the Division of Epidemiology
and Services Research, the Assistant Secretary of Health and
Human Services for the Administration for Children and
Families, the Assistant Secretary of Education for the Office
of Educational Research and Improvement, the Assistant
Secretary of Housing and Urban Development for Community
Planning and Development, and the Assistant Attorney General
for Office of Justice Programs (or the designees of such
officers); and
``(B) such additional officers or employees of the United
States as the Secretary determines necessary for the advisory
council to effectively carry out its functions.
``(3) Appointed members.--The Secretary shall appoint not
to exceed 18 individuals to the advisory council, of which--
``(A) not more than two-thirds of such individual shall be
appointed from among the leading representatives of the
health and scientific disciplines (including public health
and the behavioral or social sciences) relevant to the
activities of the Center, and at least 7 such individuals
shall be professional social workers who are recognized
experts in the area of clinical practice, education, or
research; and
``(B) not more than one-third of such individuals shall be
appointed from the general public and shall include leaders
in fields of public policy, law, health policy, economics,
and management.

The Secretary shall make appointments to the advisory council
in such a manner as to ensure that the terms of the members
do not all expire in the same year.
``(4) Compensation.--Members of the advisory council who
are officers or employees of the United States shall not
receive any compensation for service on the advisory council.
The remaining members shall receive, for each day (including
travel time) they are engaged in the performance of the
functions of the advisory council, compensation at rates not
to exceed the daily equivalent of the annual rate in effect
for an individual at grade GS-18 of the General Schedule.
``(c) Terms.--
``(1) In general.--The term of office of an individual
appointed to the advisory council under subsection (b)(3)
shall be 4 years, except that any individual appointed to
fill a vacancy on the advisory council shall serve for the
remainder of the unexpired term. A member may serve after the
expiration of the member's term until a successor has been
appointed.
``(2) Reappointments.--A member of the advisory council who
has been appointed under subsection (b)(3) for a term of 4
years may not be reappointed to the advisory council prior to
the expiration of the 2-year period beginning on the date on
which the prior term expired.
``(3) Vacancy.--If a vacancy occurs on the advisory council
among the members under subsection (b)(3), the Secretary
shall make an appointment to fill that vacancy not later than
90 days after the date on which the vacancy occurs.
``(d) Chairperson.--The chairperson of the advisory council
shall be selected by the Secretary from among the members
appointed under subsection (b)(3), except that the Secretary
may select the Director of the Center to be the chairperson
of the advisory council. The term of office of the
chairperson shall be 2 years.
``(e) Meetings.--The advisory council shall meet at the
call of the chairperson or upon the request of the Director
of the Center, but not less than 3 times each fiscal year.
The location of the meetings of the advisory council shall be
subject to the approval of the Director of the Center.
``(f) Administrative Provisions.--The Director of the
Center shall designate a member of the staff of the Center to
serve as the executive secretary of the advisory council. The
Director of the Center shall make available to the advisory
council such staff, information, and other assistance as the
council may require to carry out its functions. The Director
of the Center shall provide orientation and training for new
members of the advisory council to provide such members with
such information and training as may be appropriate for their
effective participation in the functions of the advisory
council.
``(g) Comments and Recommendations.--The advisory council
may prepare, for inclusion in the biennial report under
section 485M--
``(1) comments with respect to the activities of the
advisory council in the fiscal years for which the report is
prepared;
``(2) comments on the progress of the Center in meeting its
objectives; and
``(3) recommendations with respect to the future direction
and program and policy emphasis of the center.
The advisory council may prepare such additional reports as
it may determine appropriate.

``SEC. 485M. BIENNIAL REPORT.

``The Director of the Center, after consultation with the
advisory council for the Center, shall prepare for inclusion
in the biennial report under section 403, a biennial report
that shall consist of a description of the activities of the
Center and program policies of the Director of the Center in
the fiscal years for which the report is prepared. The
Director of the Center may prepare such additional reports as
the Director determines appropriate. The Director of the
Center shall provide the advisory council of the Center an
opportunity for the submission of the written comments
described in section 485L(g).

``SEC. 485N. QUARTERLY REPORT.

``The Director of the Center shall prepare and submit to
Congress a quarterly report that contains a summary of
findings and policy implications derived from research
conducted or supported through the Center.''.
______

By Mr. INOUYE:
S. 91. A bill to amend title VII of the Public Health Service Act to
ensure that social work students or social work schools are eligible
for support under certain programs to assist individuals in pursuing
health careers and programs of grants for training projects in
geriatrics, and to establish a social work training program; to the
Committee on Health, Education, Labor, and Pensions.
Mr. INOUYE. Mr. President, on behalf of our Nation's clinical social
workers, I am introducing legislation to amend the Public Health
Service Act. This legislation would (1) establish a new social work
training program, (2) ensure that social work students are eligible for
support under the Health Careers Opportunity Program, (3) provide
social work schools with eligibility for support under the Minority
Centers of Excellence programs, (4) permit schools offering degrees in
social work to obtain grants for training projects in geriatrics, and
(5) ensure that social work is recognized as a profession under the
Public Health Maintenance Organization Act.
Despite the impressive range of services social workers provide to
people of this Nation, few Federal programs exist to provide
opportunities for social work training in health and mental health
care.
Social workers have long provided quality mental health services to
our citizens and continue to be at the forefront of establishing
innovative programs to serve our disadvantaged populations. I believe
it is important to ensure that the special expertise social workers
possess continues to be available to the citizens of this Nation. This
bill, by providing financial assistance to schools of social work and
social work students, acknowledges the long history and critical
importance of the services provided by social work professionals. I
believe it is time to provide them with the recognition they deserve.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.

[[Page S259]]

There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 91

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Strengthen Social Work
Training Act of 2005''.

SEC. 2. SOCIAL WORK STUDENTS.

(a) Health Professions Schools.--Section 736(g)(1)(A) of
the Public Health Service Act (42 U.S.C. 293(g)(1)(A)) is
amended by striking ``graduate program in behavioral or
mental health'' and inserting ``graduate program in
behavioral or mental health, including a school offering
graduate programs in clinical social work, or programs in
social work''.
(b) Scholarships.--Section 737(d)(1)(A) of the Public
Health Service Act (42 U.S.C. 293a(d)(1)(A)) is amended by
striking ``mental health practice'' and inserting ``mental
health practice (including graduate programs in clinical
psychology, graduate programs in clinical social work, or
programs in social work)''.
(c) Faculty Positions.--Section 738(a)(3) of the Public
Health Service Act (42 U.S.C. 293b(a)(3)) is amended by
striking ``offering graduate programs in behavioral and
mental health'' and inserting ``offering graduate programs in
behavioral and mental health, including graduate programs in
clinical psychology, graduate programs in clinical social
work, or programs in social work''.

SEC. 3. GERIATRICS TRAINING PROJECTS.

Section 753(b)(1) of the Public Health Service Act (42
U.S.C. 294c(b)(1)) is amended by inserting ``schools offering
degrees in social work,'' after ``teaching hospitals,''.

SEC. 4. SOCIAL WORK TRAINING PROGRAM.

Subpart 2 of part E of title VII of the Public Health
Service Act (42 U.S.C. 295 et seq.) is amended--
(1) by redesignating section 770 as section 770A;
(2) by inserting after section 769, the following:

``SEC. 770. SOCIAL WORK TRAINING PROGRAM.

``(a) Training Generally.--The Secretary may make grants
to, or enter into contracts with, any public or nonprofit
private hospital, any school offering programs in social
work, or to or with a public or private nonprofit entity that
the Secretary has determined is capable of carrying out such
grant or contract--
``(1) to plan, develop, and operate, or participate in, an
approved social work training program (including an approved
residency or internship program) for students, interns,
residents, or practicing physicians;
``(2) to provide financial assistance (in the form of
traineeships and fellowships) to students, interns,
residents, practicing physicians, or other individuals, who--
``(A) are in need of such assistance;
``(B) are participants in any such program; and
``(C) plan to specialize or work in the practice of social
work;
``(3) to plan, develop, and operate a program for the
training of individuals who plan to teach in social work
training programs; and
``(4) to provide financial assistance (in the form of
traineeships and fellowships) to individuals who are
participants in any such program and who plan to teach in a
social work training program.
``(b) Academic Administrative Units.--
``(1) In general.--The Secretary may make grants to or
enter into contracts with schools offering programs in social
work to meet the costs of projects to establish, maintain, or
improve academic administrative units (which may be
departments, divisions, or other units) to provide clinical
instruction in social work.
``(2) Preference in making awards.--In making awards of
grants and contracts under paragraph (1), the Secretary shall
give preference to any qualified applicant for such an award
that agrees to expend the award for the purpose of--
``(A) establishing an academic administrative unit for
programs in social work; or
``(B) substantially expanding the programs of such a unit.
``(c) Duration of Award.--The period during which payments
are made to an entity from an award of a grant or contract
under subsection (a) may not exceed 5 years. The provision of
such payments shall be subject to annual approval by the
Secretary and subject to the availability of appropriations
for the fiscal year involved to make the payments.
``(d) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section
$10,000,000 for each of the fiscal years 2006 through 2008.
``(2) Allocation.--Of the amounts appropriated under
paragraph (1) for a fiscal year, the Secretary shall make
available not less than 20 percent for awards of grants and
contracts under subsection (b).''; and
(3) in section 770A (as redesignated by paragraph (1)) by
inserting ``other than section 770,'' after ``carrying out
this subpart,''.

SEC. 5. CLINICAL SOCIAL WORKER SERVICES.

Section 1302 of the Public Health Service Act (42 U.S.C.
300e-1) is amended--
(1) in paragraphs (1) and (2), by inserting ``clinical
social worker,'' after ``psychologist,'' each place the term
appears;
(2) in paragraph (4)(A), by striking ``and psychologists''
and inserting ``psychologists, and clinical social workers'';
and
(3) in paragraph (5), by inserting ``clinical social
work,'' after ``psychology,''.
______

By Mr. INOUYE:
S. 92. A bill to amend title VII of the Public Health Service Act to
establish a psychology post-doctoral fellowship program, and for other
purposes; to the Committee on Health, Education, Labor, and Pensions.
Mr. INOUYE. Mr. President, I am introducing legislation today to
amend Title VII of the Public Health Service Act to establish a
psychology post-doctoral program. Psychologists have made a unique
contribution in reaching out to the nation's medically underserved
populations. Expertise in behavioral science is useful in addressing
grave concerns such as violence, addiction, mental illness, adolescent
and child behavioral disorders, and family disruption. Establishment of
a psychology post-doctoral program could be an effective way to find
solutions to these issues.
Similar programs supporting additional, specialized training in
traditionally underserved settings have been successful in retaining
participants to serve the same populations. For example, mental health
professionals who have participated in these specialized federally
funded programs have tended not only to meet their repayment
obligations, but have continued to work in the public sector or with
the underserved.
While a doctorate in psychology provides broad-based knowledge and
mastery in a wide variety of clinical skills, specialized post-doctoral
fellowship programs help to develop particular diagnostic and treatment
skills required to respond effectively to underserved populations. For
example, what appears to be poor academic motivation in a child
recently relocated from Southeast Asia might actually reflect a
cultural value of reserve rather than a disinterest in academic
learning. Specialized assessment skills enable the clinician to
initiate effective treatment.
Domestic violence poses a significant public health problem and is
not just a problem for the criminal justice system. Violence against
women results in thousands of hospitalizations a year. Rates of child
and spouse abuse in rural areas are particularly high, as are the rates
of alcohol abuse and depression in adolescents. A post-doctoral
fellowship program in the psychology of the rural populations could be
of special benefit in addressing these problems.
Given the demonstrated success and effectiveness of specialized
training programs, it is incumbent upon us to encourage participation
in post-doctoral fellowships that respond to the needs of the nation's
underserved.
Mr. President, I ask unanimous consent that the text of this bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 92

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Psychologists in the Service
of the Public Act of 2005''.

SEC. 2. GRANTS FOR FELLOWSHIPS IN PSYCHOLOGY.

Part C of title VII of the Public Health Service Act (42
U.S.C. 293k et seq.) is amended by adding at the end the
following:

``SEC. 749. GRANTS FOR FELLOWSHIPS IN PSYCHOLOGY.

``(a) In General.--The Secretary shall establish a
psychology post-doctoral fellowship program to make grants to
and enter into contracts with eligible entities to encourage
the provision of psychological training and services in
underserved treatment areas.
``(b) Eligible Entities.--
``(1) Individuals.--In order to receive a grant under this
section an individual shall submit an application to the
Secretary at such time, in such form, and containing such
information as the Secretary shall require, including a
certification that such individual--
``(A) has received a doctoral degree through a graduate
program in psychology provided by an accredited institution
at the time such grant is awarded;
``(B) will provide services to a medically underserved
population during the period of such grant;
``(C) will comply with the provisions of subsection (c);
and
``(D) will provide any other information or assurances as
the Secretary determines appropriate.

[[Page S260]]

``(2) Institutions.--In order to receive a grant or
contract under this section, an institution shall submit an
application to the Secretary at such time, in such form, and
containing such information as the Secretary shall require,
including a certification that such institution--
``(A) is an entity, approved by the State, that provides
psychological services in medically underserved areas or to
medically underserved populations (including entities that
care for the mentally retarded, mental health institutions,
and prisons);
``(B) will use amounts provided to such institution under
this section to provide financial assistance in the form of
fellowships to qualified individuals who meet the
requirements of subparagraphs (A) through (C) of paragraph
(1);
``(C) will not use more than 10 percent of amounts provided
under this section to pay for the administrative costs of any
fellowship programs established with such funds; and
``(D) will provide any other information or assurances as
the Secretary determines appropriate.
``(c) Continued Provision of Services.--Any individual who
receives a grant or fellowship under this section shall
certify to the Secretary that such individual will continue
to provide the type of services for which such grant or
fellowship is awarded for not less than 1 year after the term
of the grant or fellowship has expired.
``(d) Regulations.--Not later than 180 days after the date
of enactment of this section, the Secretary shall promulgate
regulations necessary to carry out this section, including
regulations that define the terms `medically underserved
areas' and `medically underserved populations'.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$5,000,000 for each of the fiscal years 2006 through 2008.''.
______

By Mr. INOUYE:
S. 93. A bill to increase the role of the Secretary of Transportation
in administering section 901 of the Merchant Marine Act, 1936, and for
other purposes; to the Committee on Commerce, Science, and
Transportation.
Mr. LUGAR. Mr. President, on behalf of myself and Senators Leahy,
Lincoln, Dole, and Smith, I rise today to introduce the Good Samaritan
Hunger Relief Tax Incentive Act of 2005. This important legislation
allows for expanded charitable tax deductions for contributions of food
inventory to our nation's food banks and would permit farmers and
businesses of all sizes to take advantage of this tax deduction. Demand
on food banks has been rising, and these tax deductions would be an
important step in increasing private donations to the non-profit hunger
relief charities playing a critical role in meeting America's
nutritional needs.
To a certain degree, donations have not diminished or have even
modestly increased, but most areas surveyed report that donations
cannot keep up with the growing demand. According to the U.S.
Conference of Mayors and Sodexho USA ``Hunger and Homelessness Survey''
released in December 2004, requests for emergency food assistance has
increased fourteen percent. Fifty-six percent of the people requesting
emergency food assistance are either children or their parents. The
number of elderly persons requesting food assistance has increased by
twelve percent. The success of welfare reform legislation has moved
many recipients off welfare and into jobs. Over the last decade, in
many states, welfare roles have been reduced by more than one half. But
we need to recognize that these individuals and their families are
living on modest wages. As the states' unemployment rates have risen,
so have the demands placed on the food banks and soup kitchens. The
problem of hunger goes well beyond the unemployed. The Mayors' survey
points out that thirty-four percent of people requesting food
assistance were working. Due to increases in rent, underemployment,
multigenerational residences, families have to make the tough financial
decisions. As a result, food needs of families have been pushed further
and further down the priority list. This is coupled with the
nutritional value becoming less important to some families because fast
food and ``junk'' food is more economical to those on a tight budget.
Private food banks provide a key safety net against hunger. According
to the 2002 report by U.S. Department of Agriculture, over 13 million
children were hungry or at the risk of being hungry.
America's Second Harvest, a nationwide umbrella group of over 200
food banks and food rescue organization, released a 2001 report
entitled ``Hunger in America'' stating that 23.3 million people sought
and received emergency hunger relief from just their network of
charitable organizations. That would be the equivalent of the
populations of New York, Los Angeles, Chicago, Houston, Philadelphia,
San Diego, Phoenix, San Antonio, Dallas, and Detroit combined. In 1997,
the USDA estimated that up to 96 billion pounds of food goes to waste
each year in the United States at a cost of an estimated $1 billion in
increased disposal fees paid by municipalities. This is food and fresh
produce that is left unharvested or in storage bins, discarded by
wholesales, restaurants, and grocery stores, or reduced by the
manufacturing or transportation process. If a small percentage of this
wasted food could be redirected to food banks, we could make important
strides in our fight against hunger. I believe the enactment of this
legislation would be a great incentive in redirecting this food from
being discarded to being distributed to hungry families.
The Good Samaritan Hunger Relief Tax Incentive Act would allow
farmers and small business owners to take a deduction when they donate
food to their community food bank. Currently this reduction is
available to large corporations but not for small businesses. This
approach would stimulate private charitable giving to food banks at the
community level. Each citizen can make an important contribution to the
fight against hunger at a local level. Over the years, I have had the
opportunity to visit numerous Hoosier food banks, and have been
especially impressed by the remarkable work of these organizations. In
many cases, they are partnered with churches and faith-based
organizations and are making a tremendous difference in our
communities. We should support this private sector activity, which not
only feeds people, but also strengthens community bonds and
demonstrates the power of faith, charity, and civic involvement.
Thank you, Mr. President. I yield the floor.
______

By Mr. LAUTENBERG (for himself and Mr. DeWine):
S. 95. A bill to amend titles 23 and 49, United States Code,
concerning length and weight limitations for vehicles operating on
Federal-aid highways, and for other purposes; to the Committee on
Environment and Public Works.
Mr. LAUTENBERG. Today, I am proud to introduce, along with my
colleague Senator DeWine, legislation which will make our roads safer
and last longer. Our bill, the ``Safe Highways and Infrastructure
Preservation Act,'' will extend the current limited freeze of current
truck size and weight limits set by states, which only applies to our
44,000-mile Interstate Highway System, to the entire 156,000-mile
National Highway System (NHS). This extension will make more roads
safer and will further reduce the wear and tear of our highways and
bridges.
Fifteen years ago, I got a provision into the ISTEA highway
reauthorization bill to ban triple-trailer trucks and other so-called
``longer combination vehicles'' (LCVs) from New Jersey and most other
States. At that time and ever since, the trucking industry has fought
to defeat and repeal this ban, under the guise of arguments for
``states' rights'' and ``unfair re-distribution of business to
railroads.'' But these are not rational arguments for allowing larger
and heavier trucks as well as triple-trailer trucks on our roads.
Additionally, the trucking industry's proclaimed hardships have not
materialized. In fact, the trucking companies have survived the current
laws quite well, and trucks have refined their role in our national
freight transportation system.
Anyone who has ever shared the road with a large tractor-trailer
truck has probably wondered whether the truck driver is aware of the
smaller vehicles around the truck. Anyone who has seen the third
trailer on a triple-trailer truck swinging around in a 'crack the whip'
fashion probably knows that these trucks are to be avoided.
Moving to the use of even larger trucks is not safe. The U.S.
Department of Transportation has determined that multi-trailer trucks
are likely to be involved in more fatal crashes--11 percent more than
today's single-trailer trucks. By expanding the limits on triples and
other longer combination

[[Page S261]]

vehicles to the entire NHS including more than 2,000 miles of highway
in New Jersey the Safe Highways and Infrastructure Protection Act will
save lives and prevent further deterioration of our roads and bridges.
The State of New Jersey sees its share of the nation's truck traffic.
And we are concerned about recent projections that show the amount of
traffic increasing considerably over the next 10 to 20 years. We are
concerned about these 53-foot, 80,000-pound vehicles on our highways
and the pressure from other states to increase weight and length
limitations to allow larger trucks to come through our State. This
makes truck safety even more important to New Jersey drivers.
Triple-trailers and other LCVs do more damage to our roads and
bridges but don't come close to paying associated maintenance and
repair costs. Currently, some 37 percent of bridges in New Jersey are
considered structurally deficient or functionally obsolete. Their
average age is 42 years old. But the fees, tolls, and gasoline taxes
paid by the operator of a 100,000-pound truck only covers 40 percent of
the cost of the damage that truck does to our roads and bridges;
taxpayers make up the difference. I believe that motorists should not
have to share the road with these dangerous behemoths and pay for the
extra damage they cause.
In the 108th Congress, the Senate passed portions of this legislation
in the highway reauthorization legislation package. I believe that if
we act to pass this legislation, we can make a big difference in the
lives of people who share our highways with large truck traffic.
I thank my colleague Senator DeWine for once again joining me in
sponsoring this important legislation, and I look forward to working
with my colleagues in the Congress to improve highway safety and
increase the remaining life of our country's roads and bridges.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record.
(The bill will be printed in a future edition of the Record.)
______

By Mr. INHOFE:
S. 96. A bill to target Federal funding for research and development,
to amend section 1928 of the Social Security Act to encourage the
production of influenza vaccines by eliminating the price cap
applicable to the purchase of such vaccines under contracts entered
into by the Secretary of Health and Human Services, to amend the
Internal Revenue Code of 1986 to establish a tax credit to encourage
vaccine production capacity, and for other purposes; to the Committee
on Finance.
Mr. INHOFE. Mr. President, I have long been dedicated to quality
healthcare for my constituents in Oklahoma and across America. I
supported the Medicare bill of 2003 to give a voluntary prescription
drug benefit to seniors. I have championed the rural health care
providers, who received some of the greatest benefits of the Medicare
bill. In 1997, I was one of few Republican to vote against the Balanced
Budget Act because of its lack of support for rural hospitals. Back
then, I made a commitment to not allow our rural hospitals to be
closed, and I am pleased we finally addressed that important issue in
the Medicare legislation. I also co-sponsored S. 816, the Health Care
Access and Rural Equity Act, to protect and preserve access of Medicare
beneficiaries to health care in rural regions.
I am a strong advocate of medical liability reform and am an original
cosponsor of S. 11, the Patients First Act, to protect patients' access
to quality and affordable health care by reducing the effects of
excessive liability costs. There are solutions to alleviate the burden
placed on physicians and patients by excessive medical malpractice
lawsuits, and I am committed to this vital reform.
I have also worked with officials from the Center for Medicare and
Medicaid Services to expand access to life-saving Implantable Cardiac
Defibrillators. I supported legislation to increase the supply of
pancreatic islet cells for research and co-sponsored a bill to take the
abortion pill RU-486 off the market in the United States.
The Federal Government invests in improving hospitals and healthcare
initiatives, and I have fought hard to ensure that Oklahoma gets its
fair share. Specifically, over the past three years, I have helped to
secure $5.2 million in funding for the Oklahoma Medical Research
Foundation, the Oklahoma State Department of Health planning initiative
for a rural telemedicine system, the INTEGRIS Healthcare System, the
University of Oklahoma Health Sciences Center, the Oklahoma Center for
the Advancement of Science and Technology, St. Anthony's Heart
Hospital, the Hillcrest Healthcare System, and the Morton Health
Center.
Mr. President, the unexpected influenza (flu) vaccine shortage
beginning last month highlights the need to encourage the production of
flu vaccine in America. As you know, on October 5, 2004, Chiron, a
California-based biotechnology company, notified U.S. health officials
that its plant in Liverpool, England had been shut down due to vaccine
contamination. Almost 50,000 doses of flu vaccine were thrown away,
which created a severe shortage for Americans just as the flu season
began.
In light of the current shortage, I have examined why America found
itself unable to accommodate the public demand for the flu vaccine. As
we have seen, once a vaccine shortage strikes, a rapid response is
difficult and often impossible. Thirty years ago, more than a dozen
American companies were in the flu vaccine business. Today, only two
companies make the vaccine for America, and only one is an America-
based company. This is no coincidence. High liability costs, tedious
production, price caps, and the complicated United States tax code have
kept the market bare.
In October, President Bush signed the JOBS bill, which curbed the
billion-dollar lawsuits that have crippled the flu vaccination
industry. By adding flu vaccine to the list of vaccines protected by
the National Vaccine Injury Compensation Program (VICP), a no-fault
alternative must be used for resolving vaccine injury claims. I am
encouraged with this progress, but more can be done to prevent a
shortage in the future.
The FY2005 Omnibus bill provides $100 million to the Department of
Health and Human Services (HHS) to ensure a year-round flu vaccine
production capacity and for the development of rapidly expandable flu
vaccine production technologies. The Omnibus language also permits HHS
to purchase flu vaccine with these funds, if deemed necessary. Such
costly purchasing is a waste of federal dollars that could otherwise be
used for research through the National Institutes of Health to develop
faster and safer vaccine production technology. My bill strikes the
language that allows government purchasing of the flu vaccine with
these funds.
Optimizing the flu vaccine production process is imperative. The
ever-changing nature of the flu virus results in a complicated
production process. The dominant strain of the flu virus mutates each
year, requiring a different vaccine for every flu season. Because
harvesting the flu vaccine currently takes at least six months and
requires tens of thousands of fertilized eggs susceptible to
contamination, this process must begin nearly a year before the flu
season begins.

Research should be focused on developing new technologies to allow us
to produce more vaccine--in the same season--when we encounter a
shortage. For example, a company in Connecticut is developing a flu
vaccine relying on cell lines from silk moths. Reverse genetics
technology also holds potential that researchers should explore. These
types of innovative research promise to shave at least one month off of
production time and significantly reduce cost.
Rather than temporarily masking problems through wasted spending on
vaccine surpluses, my bill would ensure that the federal government
invests in lasting solutions to the challenges of flu vaccine
production. The encouragement of safer and faster flu vaccine
production technology is a prudent use of federal research dollars
through the National Institutes of Health.
To invest in these new technologies, flu vaccine manufacturers will
have to renovate existing facilities or construct new ones. My bill
gives a tax

[[Page S262]]

credit to companies, new and old, to assist them in this important
venture.
Currently, ten American companies produce the forty-seven FDA-
approved vaccines. An investment tax credit will encourage these
existing companies to expand their production to cover the flu vaccine
and will invite start-up companies to join the industry. This will
better equip the United States market to prevent and deal with a
shortage in the future.
Furthermore, my bill removes the suffocating price controls that have
discouraged companies from producing the flu vaccine. The Vaccines For
Children program (VFC), enacted under the Clinton Administration,
imposed a price cap on all vaccines purchased through federal
contracts. From a shortsighted perspective, these regulated prices may
expand access to vaccines. However, in the long run this policy
devastates the vaccine production industry and decreases the
availability of vaccines. This occurred in 1998 when manufacturers of
Tetanus Diphtheria vaccine refused to bid on government contracts.
Consequently, this vaccine is no longer available to children through
the VFC program.
Similarly, the CDC purchased nearly 12 percent of the flu vaccine
this season, and significant quantities were purchased through the
Department of Defense, the Veteran's Administration, and Medicare. The
price controls imposed from federal government purchasing create a
high-risk, low-reward business market. Price controls destroy any
profit incentive. Manufacturers avoid this artificial environment and
will continue to as long as the government over steps its bounds.
The harmful effect of government price controls is especially
pronounced in the flu vaccine market because the vaccine has a single-
season shelf life. The difficulty of predicting the demand for vaccines
each year exposes companies great risk. A slight drop in demand can
force them out of the market. Financial losses--from seven million
extra doses in 2002 and 4.5 million extra in 2003--compelled Wyeth
Pharmaceutical Company to end its flu vaccine manufacturing.
Scientific experts consider vaccination to be the most effective
medical intervention, and we live in an age of unprecedented vaccine
development and implementation. We cannot continue to over-regulate the
flu vaccine industry and hope companies will hang on and produce
vaccines regardless of profit. The current national flu vaccine
shortage reveals the need to act.
My bill would steer NIH research dollars towards cutting-edge
technology, remove suffocating price controls, and free American
companies to enter the flu vaccine industry with an investment tax
credit. I urge my colleagues to stand with me in supporting this vital
legislation.
______

By Mr. TALENT:
S. 102. A bill to provide grants to States to combat methamphetamine
abuse; to the Committee on the Judiciary.
Mr. TALENT. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 102

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Exile Meth Act''.

SEC. 2. ESTABLISHMENT OF GRANT PROGRAM FOR COMBATING
METHAMPHETAMINE REPEAT OFFENDERS.

The Attorney General shall establish a program that
provides grants to qualified States for combating the problem
of methamphetamine abuse, with a specific focus on the
prosecution of repeat offenders.

SEC. 3. DEFINITION.

As used in this Act, the term ``qualified State'' means a
State that--
(1) had more than 200 methamphetamine lab seizures in 2004,
as reported by the National Clandestine Laboratory Database;
and
(2) has a law that provides that a person who possesses or
distributes 5 grams or more of methamphetamine, its salts,
isomers, or salts of its isomers, or 50 grams or more of a
mixture or substance containing a detectable amount of
methamphetamine, its salts, isomers, or salts of its isomers,
qualifies for a mandatory minimum sentence, without the
possibility of probation or parole, of 5 to 40 years for a
first offense, 10 years to life for a second offense, and
life for a third offense.

SEC. 4. DISTRIBUTION OF GRANT AMOUNTS.

The Attorney General shall distribute grants authorized
under this Act to 2 States.

SEC. 5. ADMINISTRATION.

The Attorney General shall prescribe requirements,
including application requirements, for grants under the
program established under this Act.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated
$10,000,000 for each of the fiscal years 2006 and 2007 to
carry out this Act.
(b) Availability.--Amounts appropriated pursuant to the
authorization of appropriations in subsection (a) shall
remain available until expended.

By Mr. TALENT (for himself, Mrs. Feinstein, Mr. Bayh, Mr. Nelson
of Nebraska, Mr. Dayton, Mr. Wyden, Mr. Salazar, Mr. Hagel, Mr.
Harkin, Mr. Smith, Mr. Coleman, and Mr. Grassley):
S. 103. A bill to respond to the illegal production, distribution,
and use of methamphetamine in the United States, and for other
purposes; to the Committee on the Judiciary.
Mr. TALENT. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill were ordered to be printed in the
Record, as follows:

S. 103

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Combat Meth Act of 2005''.

TITLE I--ENFORCEMENT

SEC. 101. AUTHORIZATION OF APPROPRIATIONS RELATING TO COPS
GRANTS.

(a) In General.--In addition to any other funds authorized
to be appropriated for fiscal year 2006 for grants under part
Q of title I of the Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796dd et seq.), commonly known as the
COPS program, there are authorized to be appropriated
$15,000,000 for such purpose to provide training to State and
local prosecutors and law enforcement agents for the
investigation and prosecution of methamphetamine offenses.
(b) Rural Set-Aside.--Of amounts made available under
subsection (a), $3,000,000 shall be available only for
prosecutors and law enforcement agents for rural communities.

SEC. 102. EXPANSION OF METHAMPHETAMINE HOT SPOTS PROGRAM TO
INCLUDE PERSONNEL AND EQUIPMENT FOR
ENFORCEMENT, PROSECUTION, AND CLEANUP.

Section 1701(d) of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3796dd(d)) is amended--
(1) in paragraph (11) by striking ``and'' at the end;
(2) in paragraph (12) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(13) hire personnel and purchase equipment to assist in
the enforcement and prosecution of methamphetamine offenses
and the cleanup of methamphetamine-affected areas.''.

SEC. 103. SPECIAL UNITED STATES ATTORNEYS' PROGRAM.

(a) In General.--The Attorney General shall allocate any
amounts appropriated pursuant to the authorization under
subsection (c) for the hiring and training of special
assistant United States attorneys.
(b) Use of Funds.--The funds allocated under subsection (a)
shall be used to--
(1) train local prosecutors in techniques used to prosecute
methamphetamine cases, including the presentation of evidence
related to the manufacture of methamphetamine;
(2) train local prosecutors in Federal and State laws
involving methamphetamine manufacture or distribution;
(3) cross-designate local prosecutors as special assistant
United States attorneys; and
(4) hire additional local prosecutors who--
(A) with the approval of the United States attorney, shall
be cross-designated to prosecute both Federal and State
methamphetamine cases;
(B) shall be assigned a caseload, whether in State court or
Federal court, that gives the highest priority to cases in
which--
(i) charges related to methamphetamine manufacture or
distribution are submitted by law enforcement for
consideration; and
(ii) the defendant has been previously convicted of a crime
related to methamphetamine manufacture or distribution.
(c) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000 for each of the fiscal years
2006 and 2007 to carry out the provisions of this section.

SEC. 104. PSEUDOEPHEDRINE AMENDMENTS TO CONTROLLED SUBSTANCES
ACT.

(a) Addition of Pseudoephedrine to Schedule V.--Section 202
of the Controlled Substances Act (21 U.S.C. 812) is amended
by adding at the end the following:
``(6) Any detectable quantity of pseudoephedrine, its salts
or optical isomers, or salts of optical isomers.''.
(b) Prescriptions.--Section 309(c) of the Controlled
Substances Act (21 U.S.C. 829(c)) is amended--

[[Page S263]]

(1) by inserting ``(1)'' before ``No controlled
substance''; and
(2) by adding at the end the following:
``(2) If the substance described in paragraph (6) of
Schedule V of section 202 is dispensed, sold, or distributed
in a pharmacy--
``(A) the substance shall be dispensed, sold, or
distributed only by a licensed pharmacist or a licensed
pharmacy technician; and
``(B) any person purchasing, receiving, or otherwise
acquiring any such substance shall--
``(i) produce a photo identification showing the date of
birth of such person; and
``(ii) sign a written log or receipt showing--
``(I) the date of the transaction;
``(II) the name of the person; and
``(III) the name and the amount of the substance purchased,
received, or otherwise acquired.
``(3)(A) No person shall purchase, receive, or otherwise
acquire more than 9 grams of the substance described in
paragraph (6) of Schedule V of section 202 within any 30-day
period.
``(B) The limit described in subparagraph (A) shall not
apply to any quantity of such substance dispensed under a
valid prescription.
``(4)(A) The Director of the Federal Drug Administration,
by rule, may exempt a product from Schedule V of section 202
if the Director determines that the produce is not used in
the illegal manufacture of methamphetamine or other
controlled dangerous substance.
``(B) The Director of the Federal Drug Administration, upon
the application of a manufacturer of a drug product, may
exempt the product from Schedule V of section 202 if the
Director determines that the product has been formulated in
such a way as to effectively prevent the conversion of the
active ingredient into methamphetamine.
``(C) The Director of the Federal Drug Administration, by
rule, may authorize the sale of the substance described in
paragraph (6) of Schedule V of section 202 by persons other
than licensed pharmacists or licensed pharmacy technicians
if--
``(i) the Director finds evidence that the absence of a
pharmacy creates a hardship for a community; and
``(ii) the authorized personnel follow the procedure set
forth in this Act''.

TITLE II--EDUCATION, PREVENTION, AND TREATMENT

SEC. 201. GRANTS FOR SERVICES FOR CHILDREN OF SUBSTANCE
ABUSERS.

Section 519 of the Public Health Service Act (42 U.S.C.
290bb-25) is amended--
(1) in subsection (b), by inserting after paragraph (8) the
following:
``(9) Development of drug endangered children rapid
response teams that will intervene on behalf of children
exposed to methamphetamine as a result of residing or being
present in a home-based clandestine drug laboratory.''; and
(2) in subsection (o)--
(A) by striking ``For the purpose'' and inserting the
following:
``(1) In general.--For the purpose''; and
(B) by adding at the end the following:
``(2) Drug endangered children rapid response teams.--There
are authorized to be appropriated $2,500,000 for each of the
fiscal years 2006 and 2007 to carry out the provisions of
subsection (b)(9).''.

SEC. 202. LOCAL GRANTS FOR TREATMENT OF METHAMPHETAMINE ABUSE
AND RELATED CONDITIONS.

Subpart 1 of part B of title V of the Public Health Service
Act (42 U.S.C. 290bb et seq.) is amended--
(1) by redesignating the section 514 that relates to
methamphetamine and appears after section 514A as section
514B;
(2) in section 514B, as redesignated--
(A) by amending subsection (a)(1) to read as follows:
``(1) Grants authorized.--The Secretary may award grants to
States, political subdivisions of States, American Indian
Tribes, and private, nonprofit entities to provide treatment
for methamphetamine abuse.'';
(B) by amending subsection (b) to read as follows:
``(b) Priority for Rural Areas.--In awarding grants under
subsection (a), the Secretary shall give priority to entities
that will serve rural areas experiencing an increase in
methamphetamine abuse.''; and
(C) in subsection (d)(1), by striking ``2000'' and all that
follows and inserting ``2005 and such sums as may be
necessary for each of fiscal years 2006 through 2009''; and
(3) by inserting after section 514B, as redesignated, the
following:

``SEC. 514C. METHAMPHETAMINE RESEARCH, TRAINING, AND
TECHNICAL ASSISTANCE CENTER.

``(a) Program Authorized.--The Secretary, acting through
the Administrator, and in consultation with the Director of
the National Institutes of Health, shall award grants to, or
enter into contracts with, public or private, nonprofit
entities to establish a research, training, and technical
assistance center to carry out the activities described in
subsection (d).
``(b) Application.--A public or private, nonprofit entity
seeking a grant or contract under subsection (a) shall submit
an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
``(c) Condition.--In awarding grants or entering into
contracts under subsection (a), the Secretary shall ensure
that not less than 1 of the centers will focus on
methamphetamine abuse in rural areas.
``(d) Authorized Activities.--Each center established under
this section shall--
``(1) engage in research and evaluation of the
effectiveness of treatment modalities for the treatment of
methamphetamine abuse;
``(2) disseminate information to public and private
entities on effective treatments for methamphetamine abuse;
``(3) provide direct technical assistance to States,
political subdivisions of States, and private entities on how
to improve the treatment of methamphetamine abuse; and
``(4) provide training on the effects of methamphetamine
use and on effective ways of treating methamphetamine abuse
to substance abuse treatment professionals and community
leaders.
``(e) Reports.--Each grantee or contractor under this
section shall annually submit a report to the Administrator
that contains--
``(1) a description of the previous year's activities of
the center established under this section;
``(2) effective treatment modalities undertaken by the
center; and
``(3) evidence to demonstrate that such treatment
modalities were successful.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$3,000,000 for fiscal year 2006 and such sums as may be
necessary for each of fiscal years 2007 and 2008.''.

SEC. 203. METHAMPHETAMINE PRECURSOR MONITORING GRANTS.

(a) Grants Authorized.--The Attorney General, acting
through the Bureau of Justice Assistance, may award grants to
States to establish methamphetamine precursor monitoring
programs.
(b) Purpose.--The purpose of the grant program established
under this section is to--
(1) prevent the sale of methamphetamine precursors, such as
pseudoephedrine, to individuals in quantities so large that
the only reasonable purpose of the purchase would be to
manufacture methamphetamine;
(2) educate businesses that legally sell methamphetamine
precursors of the need to balance the legitimate need for
lawful access to medication with the risk that those
substances may be used to manufacture methamphetamine; and
(3) recalibrate existing prescription drug monitoring
programs designed to track the sale of controlled substances
to also track the sale of pseudoephedrine in any amount
greater than 6 grams.
(c) Use of Grant Funds.--Grant funds awarded to States
under this section may be used to--
(1) implement a methamphetamine precursor monitoring
program, including hiring personnel and purchasing computer
hardware and software designed to monitor methamphetamine
precursor purchases;
(2) expand existing methamphetamine precursor or
prescription drug monitoring programs to accomplish the
purposes described in subsection (b);
(3) pay for training and technical assistance for law
enforcement personnel and employees of businesses that
lawfully sell substances, which may be used as
methamphetamine precursors;
(4) improve information sharing between adjacent States
through enhanced connectivity; or
(5) make grants to subdivisions of the State to implement
methamphetamine precursor monitoring programs.
(d) Application.--Any State seeking a grant under this
section shall submit an application to the Attorney General
at such time, in such manner, and containing such information
as the Attorney General may require.
(e) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000 for each of the fiscal years
2006 and 2007 to carry out the provisions of this section.
______

By Mr. TALENT (for himself, Mr. Wyden, Mr. Coleman, and Mr.
Corzine):
S. 104. A bill to amend the Internal Revenue Code of 1986 to provide
tax-exempt financing of highway projects and rail-truck transfer
facilities; to the Committee on Finance.
Mr. TALENT. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 104

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS AND RAIL-
TRUCK TRANSFER FACILITIES.

(a) Treatment as Exempt Facility Bond.--Subsection (a) of
section 142 of the Internal Revenue Code of 1986 (relating to
exempt facility bond) is amended by striking ``or'' at the
end of paragraph (13), by striking the period at the end of
paragraph (14), and by adding at the end the following:
``(15) qualified highway facilities, or
``(16) qualified surface freight transfer facilities.''.
(b) Qualified Highway Facilities and Qualified Surface
Freight Transfer Facilities.--Section 142 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following:
``(m) Qualified Highway and Surface Freight Transfer
Facilities.--

[[Page S264]]

``(1) Qualified highway facilities.--For purposes of
subsection (a)(15), the term `qualified highway facilities'
means--
``(A) any surface transportation project which receives
Federal assistance under title 23, United States Code (as in
effect on the date of the enactment of this subsection), or
``(B) any project for an international bridge or tunnel for
which an international entity authorized under Federal or
State law is responsible and which receives Federal
assistance under such title 23.
``(2) Qualified surface freight transfer facilities.--For
purposes of subsection (a)(16), the term `qualified surface
freight transfer facilities' means facilities for the
transfer of freight from truck to rail or rail to truck
(including any temporary storage facilities directly related
to such transfers) which receives Federal assistance under
either title 23 or title 49, United States Code (as in effect
on the date of the enactment of this subsection).
``(3) Aggregate face amount of tax-exempt financing for
facilities.--
``(A) In general.--An issue shall not be treated as an
issue described in subsection (a)(15) or (a)(16) if the
aggregate face amount of bonds issued by any State pursuant
thereto (when added to the aggregate face amount of bonds
previously so issued) exceeds $15,000,000,000.
``(B) Allocation by secretary of transportation.--The
Secretary of Transportation shall allocate the amount
described in subparagraph (A) among eligible projects
described in subsections (a)(15) and (a)(16) in such manner
as the Secretary determines appropriate.''.
(c) Exemption From General State Volume Caps.--Paragraph
(3) of section 146(g) of the Internal Revenue Code of 1986
(relating to exception for certain bonds) is amended by
striking ``or (14)'' and all that follows through the end of
the paragraph and inserting ``(14), (15), or (16) of section
142(a), and''.
(d) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
______

By Mr. TALENT (for himself, Mr. Sessions, and Mr. DeMint):
S. 105. A bill to reauthorize and improve the program of block grants
to States for temporary assistance for needy families, improve access
to quality child care, and for other purposes; to the Committee on
Finance.
Mr. TALENT. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 105

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Personal Responsibility,
Work, and Family Promotion Act of 2005''.

SEC. 2. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.

TITLE I--TANF

Sec. 101. Purposes.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain
States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Universal engagement and family self-sufficiency plan
requirements.
Sec. 110. Work participation requirements.
Sec. 111. Maintenance of effort.
Sec. 112. Performance improvement.
Sec. 113. Data collection and reporting.
Sec. 114. Direct funding and administration by Indian tribes.
Sec. 115. Research, evaluations, and national studies.
Sec. 116. Studies by the Census Bureau and the Government
Accountability Office.
Sec. 117. Definition of assistance.
Sec. 118. Technical corrections.
Sec. 119. Fatherhood program.
Sec. 120. State option to make TANF programs mandatory partners with
one-stop employment training centers.
Sec. 121. Sense of the Congress.
Sec. 122. Extension through fiscal year 2005.

TITLE II--CHILD CARE

Sec. 201. Short title.
Sec. 202. Goals.
Sec. 203. Authorization of appropriations.
Sec. 204. Application and plan.
Sec. 205. Activities to improve the quality of child care.
Sec. 206. Report by Secretary.
Sec. 207. Definitions.
Sec. 208. Entitlement funding.

TITLE III--CHILD SUPPORT

Sec. 301. Federal matching funds for limited pass through of child
support payments to families receiving TANF.
Sec. 302. State option to pass through all child support payments to
families that formerly received TANF.
Sec. 303. Mandatory review and adjustment of child support orders for
families receiving TANF.
Sec. 304. Mandatory fee for successful child support collection for
family that has never received TANF.
Sec. 305. Report on undistributed child support payments.
Sec. 306. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 307. Use of tax refund intercept program to collect past-due child
support on behalf of children who are not minors.
Sec. 308. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce child support
obligations.
Sec. 309. Improving Federal debt collection practices.
Sec. 310. Maintenance of technical assistance funding.
Sec. 311. Maintenance of Federal Parent Locator Service funding.

TITLE IV--CHILD WELFARE

Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Elimination of limitation on number of waivers.
Sec. 403. Elimination of limitation on number of States that may be
granted waivers to conduct demonstration projects on same
topic.
Sec. 404. Elimination of limitation on number of waivers that may be
granted to a single State for demonstration projects.
Sec. 405. Streamlined process for consideration of amendments to and
extensions of demonstration projects requiring waivers.
Sec. 406. Availability of reports.
Sec. 407. Technical correction.

TITLE V--SUPPLEMENTAL SECURITY INCOME

Sec. 501. Review of State agency blindness and disability
determinations.

TITLE VI--STATE AND LOCAL FLEXIBILITY

Sec. 601. Program coordination demonstration projects.
Sec. 602. State food assistance block grant demonstration project.

TITLE VII--ABSTINENCE EDUCATION

Sec. 701. Extension of abstinence education program.

TITLE VIII--TRANSITIONAL MEDICAL ASSISTANCE

Sec. 801. Extension of medicaid transitional medical assistance program
through fiscal year 2006.
Sec. 802. Adjustment to payments for medicaid administrative costs to
prevent duplicative payments and to fund extension of
transitional medical assistance.

TITLE IX--EFFECTIVE DATE

Sec. 901. Effective date.

SEC. 3. REFERENCES.

Except as otherwise expressly provided, wherever in this
Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
amendment or repeal shall be considered to be made to a
section or other provision of the Social Security Act.

SEC. 4. FINDINGS.

The Congress makes the following findings:
(1) The Temporary Assistance for Needy Families (TANF)
Program established by the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (Public Law 104-193)
has succeeded in moving families from welfare to work and
reducing child poverty.
(A) There has been a dramatic increase in the employment of
current and former welfare recipients. The percentage of
working recipients reached an all-time high in fiscal year
1999 and continued steady in fiscal years 2000 and 2001. In
fiscal year 2003, 31.3 percent of adult recipients were
counted as meeting the work participation requirements. All
States but one met the overall participation rate standard in
fiscal year 2003, as did the District of Columbia and Puerto
Rico.
(B) Earnings for welfare recipients remaining on the rolls
have also increased significantly, as have earnings for
female-headed households. The increases have been
particularly large for the bottom 2 income quintiles, that
is, those women who are most likely to be former or present
welfare recipients.
(C) Welfare dependency has plummeted. As of June 2004,
1,969,909 families and 4,727,291 individuals were receiving
assistance. Accordingly, the number of families in the
welfare caseload and the number of individuals receiving cash
assistance declined 55 percent and 61 percent, respectively,
since the enactment of TANF.
(D) The child poverty rate continued to decline between
1996 and 2003, falling 14 percent from 20.5 to 17.6 percent.
Child poverty rates for African-American and Hispanic
children have also fallen dramatically during the past 7
years.

[[Page S265]]

(2) As a Nation, we have made substantial progress in
reducing teen pregnancies and births, slowing increases in
nonmarital childbearing, and improving child support
collections and paternity establishment.
(A) The birth rate to teenagers declined 30 percent from
its high in 1991 to 2002. The 2002 teenage birth rate of 43.0
per 1,000 women aged 15-19 is the lowest recorded birth rate
for teenagers.
(B) During the period from 1991 through 2001, teenage birth
rates fell in all States and the District of Columbia, Puerto
Rico, Guam, and the Virgin Islands. Declines also have
spanned age, racial, and ethnic groups. There has been
success in lowering the birth rate for both younger and older
teens. The birth rate for those 15-17 years of age has
declined 40 percent since 1991, and the rate for those 18 and
19 has declined 23 percent. The rate for African American
teens--until recently the highest--has declined the most--42
percent from 1991 through 2002.
(C) Since the enactment of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, child support
collections within the child support enforcement system have
grown every year, increasing from $12,000,000,000 in fiscal
year 1996 to over $21,000,000,000 in fiscal year 2003. The
number of paternities established or acknowledged in fiscal
year 2003 (over 1,500,000) includes a more than 100 percent
increase through in-hospital acknowledgement programs--
862,043 in 2003 compared to 324,652 in 1996. Child support
collections were made in nearly 8,000,000 cases in fiscal
year 2003, significantly more than the almost 4,000,000 cases
having a collection in 1996.
(3) The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 gave States great flexibility in
the use of Federal funds to develop innovative programs to
help families leave welfare and begin employment and to
encourage the formation of 2-parent families.
(A) Total Federal and State TANF expenditures in fiscal
year 2003 were $26,300,000,000, up from $25,400,000,000 in
fiscal year 2002 and $22,600,000,000 in fiscal year 1999.
This increased spending is attributable to significant new
investments in supportive services in the TANF program, such
as child care and activities to support work.
(B) Since the welfare reform effort began there has been a
dramatic increase in work participation (including
employment, community service, and work experience) among
welfare recipients, as well as an unprecedented reduction in
the caseload because recipients have left welfare for work.
(C) States are making policy choices and investment
decisions best suited to the needs of their citizens.
(i) To expand aid to working families, almost all States
disregard a portion of a family's earned income when
determining benefit levels.
(ii) Most States increased the limits on countable assets
above the former Aid to Families with Dependent Children
(AFDC) program. Every State has increased the vehicle asset
level above the prior AFDC limit for a family's primary
automobile.
(iii) States are experimenting with programs to promote
marriage and paternal involvement. Over half of the States
have eliminated restrictions on 2-parent families. Many
States use TANF, child support, or State funds to support
community-based activities to help fathers become more
involved in their children's lives or strengthen
relationships between mothers and fathers.
(4) However, despite this success, there is still progress
to be made. Policies that support and promote more work,
strengthen families, and enhance State flexibility are
necessary to continue to build on the success of welfare
reform.
(A) Significant numbers of welfare recipients still are not
engaged in employment-related activities. While all States
have met the overall work participation rates required by
law, in an average month, only 41 percent of all families
with an adult participated in work activities that were
countable toward the State's participation rate. In fiscal
year 2003, four jurisdictions failed to meet the more
rigorous 2-parent work requirements, and 25 jurisdictions
(States and territories) are not subject to the 2-parent
requirements, most because they moved their 2-parent cases to
separate State programs where they are not subject to a
penalty for failing the 2-parent rates.
(B) In 2002, 34 percent of all births in the U.S. were to
unmarried women. And, with fewer teens entering marriage, the
proportion of births to unmarried teens has increased
dramatically (80 percent in 2002 versus 30 percent in 1970).
The negative consequences of out-of-wedlock birth on the
mother, the child, the family, and society are well
documented. These include increased likelihood of welfare
dependency, increased risks of low birth weight, poor
cognitive development, child abuse and neglect, and teen
parenthood, and decreased likelihood of having an intact
marriage during adulthood.
(C) There has been a dramatic rise in cohabitation as
marriages have declined. It is estimated that 40 percent of
children are expected to live in a cohabiting-parent family
at some point during their childhood. Children in single-
parent households and cohabiting-parent households are at
much higher risk of child abuse than children in intact
married families.
(D) Children who live apart from their biological fathers,
on average, are more likely to be poor, experience
educational, health, emotional, and psychological problems,
be victims of child abuse, engage in criminal behavior, and
become involved with the juvenile justice system than their
peers who live with their married, biological mother and
father. A child living with a single mother is nearly 5 times
as likely to be poor as a child living in a married-couple
family. In 2003, in married-couple families, the child
poverty rate was 8.6 percent, and in households headed by a
single mother the poverty rate was 41.7 percent.
(5) Therefore, it is the sense of the Congress that
increasing success in moving families from welfare to work,
as well as in promoting healthy marriage and other means of
improving child well-being, are very important Government
interests and the policy contained in part A of title IV of
the Social Security Act (as amended by this Act) is intended
to serve those ends.

TITLE I--TANF

SEC. 101. PURPOSES.

Section 401(a) (42 U.S.C. 601(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``increase'' and inserting ``improve child well-being by
increasing'';
(2) in paragraph (1), by inserting ``and services'' after
``assistance'';
(3) in paragraph (2), by striking ``parents on government
benefits'' and inserting ``families on government benefits
and reduce poverty''; and
(4) in paragraph (4), by striking ``two-parent families''
and inserting ``healthy, 2-parent married families, and
encourage responsible fatherhood''.

SEC. 102. FAMILY ASSISTANCE GRANTS.

(a) Extension of Authority.--Section 403(a)(1)(A) (42
U.S.C. 603(a)(1)(A)) is amended--
(1) by striking ``1996, 1997, 1998, 1999, 2000, 2001, 2002,
and 2003'' and inserting ``2006 through 2010''; and
(2) by inserting ``payable to the State for the fiscal
year'' before the period.
(b) State Family Assistance Grant.--Section 403(a)(1)(C)
(42 U.S.C. 603(a)(1)(C)) is amended by striking ``fiscal year
2003'' and inserting ``each of fiscal years 2006 through
2010''.
(c) Matching Grants for the Territories.--Section
1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking
``1997 through 2003'' and inserting ``2006 through 2010''.

SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY MARRIAGE.

(a) State Plans.--Section 402(a)(1)(A) (42 U.S.C.
602(a)(1)(A)) is amended by adding at the end the following:
``(vii) Encourage equitable treatment of married, 2-parent
families under the program referred to in clause (i).''.
(b) Healthy Marriage Promotion Grants; Repeal of Bonus for
Reduction of Illegitimacy Ratio.--
(1) In general.--Section 403(a)(2) (42 U.S.C. 603(a)(2)) is
amended to read as follows:
``(2) Healthy marriage promotion grants.--
``(A) Authority.--The Secretary shall award competitive
grants to States, territories, and tribal organizations for
not more than 50 percent of the cost of developing and
implementing innovative programs to promote and support
healthy, married, 2-parent families.
``(B) Healthy marriage promotion activities.--Funds
provided under subparagraph (A) shall be used to support any
of the following programs or activities:
``(i) Public advertising campaigns on the value of marriage
and the skills needed to increase marital stability and
health.
``(ii) Education in high schools on the value of marriage,
relationship skills, and budgeting.
``(iii) Marriage education, marriage skills, and
relationship skills programs, that may include parenting
skills, financial management, conflict resolution, and job
and career advancement, for non-married pregnant women and
non-married expectant fathers.
``(iv) Pre-marital education and marriage skills training
for engaged couples and for couples or individuals interested
in marriage.
``(v) Marriage enhancement and marriage skills training
programs for married couples.
``(vi) Divorce reduction programs that teach relationship
skills.
``(vii) Marriage mentoring programs which use married
couples as role models and mentors in at-risk communities.
``(viii) Programs to reduce the disincentives to marriage
in means-tested aid programs, if offered in conjunction with
any activity described in this subparagraph.
``(C) Appropriation.--
``(i) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated for each of fiscal years 2005 through 2010
$100,000,000 for grants under this paragraph.
``(ii) Extended availability of fy2005 funds.--Funds
appropriated under clause (i) for fiscal year 2005 shall
remain available to the Secretary through fiscal year 2006,
for grants under this paragraph for fiscal year 2005.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of the enactment of this Act.
(c) Counting of Spending on Non-Eligible Families to
Prevent and Reduce Incidence of Out-Of-Wedlock Births,
Encourage Formation and Maintenance of Healthy, 2-Parent
Married Families, or Encourage

[[Page S266]]

Responsible Fatherhood.--Section 409(a)(7)(B)(i) (42 U.S.C.
609(a)(7)(B)(i)) is amended by adding at the end the
following:

``(V) Counting of spending on non-eligible families to
prevent and reduce incidence of out-of-wedlock births,
encourage formation and maintenance of healthy, 2-parent
married families, or encourage responsible fatherhood.--The
term `qualified State expenditures' includes the total
expenditures by the State during the fiscal year under all
State programs for a purpose described in paragraph (3) or
(4) of section 401(a).''.

SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN
CERTAIN STATES.

Section 403(a)(3) (42 U.S.C. 603(a)(3)) is amended--
(1) in subparagraph (E)--
(A) by striking ``1998, 1999, 2000, and 2001'' and
inserting ``2006 through 2009''; and
(B) by striking ``, in a total amount not to exceed
$800,000,000'';
(2) in subparagraph (G), by striking ``2001'' and inserting
``2009''; and
(3) by striking subparagraph (H) and inserting the
following:
``(H) Further preservation of grant amounts.--A State that
was a qualifying State under this paragraph for fiscal year
2004 or any prior fiscal year shall be entitled to receive
from the Secretary for each of fiscal years 2006 through 2009
a grant in an amount equal to the amount required to be paid
to the State under this paragraph for the most recent fiscal
year for which the State was a qualifying State.''.

SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.

(a) In General.--Section 403(a)(4) (42 U.S.C. 603(a)(4)) is
amended--
(1) in the paragraph heading, by striking ``high
performance states'' and inserting ``employment
achievement''; and
(2) by striking subparagraphs (A) through (F) and inserting
the following:
``(A) In general.--The Secretary shall make a grant
pursuant to this paragraph to each State for each bonus year
for which the State is an employment achievement State.
``(B) Amount of grant.--
``(i) In general.--Subject to clause (ii) of this
subparagraph, the Secretary shall determine the amount of the
grant payable under this paragraph to an employment
achievement State for a bonus year, which shall be based on
the performance of the State as determined under subparagraph
(D)(i) for the fiscal year that immediately precedes the
bonus year.
``(ii) Limitation.--The amount payable to a State under
this paragraph for a bonus year shall not exceed 5 percent of
the State family assistance grant.
``(C) Formula for measuring state performance.--
``(i) In general.--Subject to clause (ii), not later than
October 1, 2006, the Secretary, in consultation with the
States, shall develop a formula for measuring State
performance in operating the State program funded under this
part so as to achieve the goals of employment entry, job
retention, and increased earnings from employment for
families receiving assistance under the program, as measured
on an absolute basis and on the basis of improvement in State
performance.
``(ii) Special rule for bonus year 2006.--For the purposes
of awarding a bonus under this paragraph for bonus year 2006,
the Secretary may measure the performance of a State in
fiscal year 2005 using the job entry rate, job retention
rate, and earnings gain rate components of the formula
developed under section 403(a)(4)(C) as in effect immediately
before the effective date of this paragraph.
``(D) Determination of state performance.--For each bonus
year, the Secretary shall--
``(i) use the formula developed under subparagraph (C) to
determine the performance of each eligible State for the
fiscal year that precedes the bonus year; and
``(ii) prescribe performance standards in such a manner so
as to ensure that--

``(I) the average annual total amount of grants to be made
under this paragraph for each bonus year equals $100,000,000;
and
``(II) the total amount of grants to be made under this
paragraph for all bonus years equals $600,000,000.

``(E) Definitions.--In this paragraph:
``(i) Bonus year.--The term `bonus year' means each of
fiscal years 2006 through 2011.
``(ii) Employment achievement state.--The term `employment
achievement State' means, with respect to a bonus year, an
eligible State whose performance determined pursuant to
subparagraph (D)(i) for the fiscal year preceding the bonus
year equals or exceeds the performance standards prescribed
under subparagraph (D)(ii) for such preceding fiscal year.
``(F) Appropriation.--
``(i) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated for fiscal years 2006 through 2011 $600,000,000
for grants under this paragraph.
``(ii) Extended availability of prior appropriation.--
Amounts appropriated under section 403(a)(4)(F) of the Social
Security Act (as in effect before the date of the enactment
of this clause) that have not been expended as of such date
of enactment shall remain available through fiscal year 2006
for grants under section 403(a)(4) of such Act (as in effect
before such date of enactment) for bonus year 2005.[needed?]
``(G) Grants for tribal organizations.--This paragraph
shall apply with respect to tribal organizations in the same
manner in which this paragraph applies with respect to
States. In determining the criteria under which to make
grants to tribal organizations under this paragraph, the
Secretary shall consult with tribal organizations.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.

SEC. 106. CONTINGENCY FUND.

(a) Deposits Into Fund.--Section 403(b)(2) (42 U.S.C.
603(b)(2)) is amended--
(1) by striking ``1997, 1998, 1999, 2000, 2001, 2002, and
2003'' and inserting ``2006 through 2010''; and
(2) by striking all that follows ``$2,000,000,000'' and
inserting a period.
(b) Grants.--Section 403(b)(3)(C)(ii) (42 U.S.C.
603(b)(3)(C)(ii)) is amended by striking ``fiscal years 1997
through 2005'' and inserting ``fiscal years 2006 through
2010''.
(c) Definition of Needy State.--Clauses (i) and (ii) of
section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are amended by
inserting after ``1996'' the following: ``, and the Food
Stamp Act of 1977 as in effect during the corresponding 3-
month period in the fiscal year preceding such most recently
concluded 3-month period,''.
(d) Annual Reconciliation: Federal Matching of State
Expenditures Above ``Maintenance of Effort'' Level.--Section
403(b)(6) (42 U.S.C. 603(b)(6)) is amended--
(1) in subparagraph (A)(ii)--
(A) by adding ``and'' at the end of subclause (I);
(B) by striking ``; and'' at the end of subclause (II) and
inserting a period; and
(C) by striking subclause (III);
(2) in subparagraph (B)(i)(II), by striking all that
follows ``section 409(a)(7)(B)(iii))'' and inserting a
period;
(3) by amending subparagraph (B)(ii)(I) to read as follows:

``(I) the qualified State expenditures (as defined in
section 409(a)(7)(B)(i)) for the fiscal year; plus''; and

(4) by striking subparagraph (C).
(e) Consideration of Certain Child Care Expenditures in
Determining State Compliance With Contingency Fund
Maintenance of Effort Requirement.--Section 409(a)(10) (42
U.S.C. 609(a)(10)) is amended--
(1) by striking ``(other than the expenditures described in
subclause (I)(bb) of that paragraph)) under the State program
funded under this part'' and inserting a close parenthesis;
and
(2) by striking ``excluding any amount expended by the
State for child care under subsection (g) or (i) of section
402 (as in effect during fiscal year 1994) for fiscal year
1994,''.

SEC. 107. USE OF FUNDS.

(a) General Rules.--Section 404(a)(2) (42 U.S.C. 604(a)(2))
is amended by striking ``in any manner that'' and inserting
``for any purposes or activities for which''.
(b) Treatment of Interstate Immigrants.--
(1) State plan provision.--Section 402(a)(1)(B) (42 U.S.C.
602(a)(1)(B)) is amended by striking clause (i) and
redesignating clauses (ii) through (iv) as clauses (i)
through (iii), respectively.
(2) Use of funds.--Section 404 (42 U.S.C. 604) is amended
by striking subsection (c).
(c) Increase in Amount Transferable to Child Care.--Section
404(d)(1) (42 U.S.C. 604(d)(1)) is amended by striking ``30''
and inserting ``50''.
(d) Increase in Amount Transferable to Title XX Programs.--
Section 404(d)(2)(B) (42 U.S.C. 604(d)(2)(B)) is amended to
read as follows:
``(B) Applicable percent.--For purposes of subparagraph
(A), the applicable percent is 10 percent for fiscal year
2006 and each succeeding fiscal year.''.
(e) Clarification of Authority of States to Use TANF Funds
Carried Over From Prior Years to Provide TANF Benefits and
Services.--Section 404(e) (42 U.S.C. 604(e)) is amended to
read as follows:
``(e) Authority to Carryover or Reserve Certain Amounts for
Benefits or Services or for Future Contingencies.--
``(1) Carryover.--A State or tribe may use a grant made to
the State or tribe under this part for any fiscal year to
provide, without fiscal year limitation, any benefit or
service that may be provided under the State or tribal
program funded under this part.
``(2) Contingency reserve.--A State or tribe may designate
any portion of a grant made to the State or tribe under this
part as a contingency reserve for future needs, and may use
any amount so designated to provide, without fiscal year
limitation, any benefit or service that may be provided under
the State or tribal program funded under this part. If a
State or tribe so designates a portion of such a grant, the
State shall, on an annual basis, include in its report under
section 411(a) the amount so designated.''.

SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE PROGRAMS.

(a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
(b) Conforming Amendments.--
(1) Section 409(a) (42 U.S.C. 609(a)) is amended by
striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by striking
subsection (f) and redesignating subsections (g) through (i)
as subsections (f) through (h), respectively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by
striking ``406,''.

[[Page S267]]

SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY
PLAN REQUIREMENTS.

(a) Modification of State Plan Requirements.--Section
402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by striking
clauses (ii) and (iii) and inserting the following:
``(ii) Require a parent or caretaker receiving assistance
under the program to engage in work or alternative self-
sufficiency activities (as defined by the State), consistent
with section 407(e)(2).
``(iii) Require families receiving assistance under the
program to engage in activities in accordance with family
self-sufficiency plans developed pursuant to section
408(b).''.
(b) Establishment of Family Self-Sufficiency Plans.--
(1) In general.--Section 408(b) (42 U.S.C. 608(b)) is
amended to read as follows:
``(b) Family Self-Sufficiency Plans.--
``(1) In general.--A State to which a grant is made under
section 403 shall--
``(A) assess, in the manner deemed appropriate by the
State, the skills, prior work experience, and employability
of each work-eligible individual (as defined in section
407(b)(2)(C)) receiving assistance under the State program
funded under this part;
``(B) establish for each family that includes such an
individual, in consultation as the State deems appropriate
with the individual, a self-sufficiency plan that specifies
appropriate activities described in the State plan submitted
pursuant to section 402, including direct work activities as
appropriate designed to assist the family in achieving their
maximum degree of self-sufficiency, and that provides for the
ongoing participation of the individual in the activities;
``(C) require, at a minimum, each such individual to
participate in activities in accordance with the self-
sufficiency plan;
``(D) monitor the participation of each such individual in
the activities specified in the self sufficiency plan, and
regularly review the progress of the family toward self-
sufficiency;
``(E) upon such a review, revise the self-sufficiency plan
and activities as the State deems appropriate.
``(2) Timing.--The State shall comply with paragraph (1)
with respect to a family--
``(A) in the case of a family that, as of October 1, 2005,
is not receiving assistance from the State program funded
under this part, not later than 60 days after the family
first receives assistance on the basis of the most recent
application for the assistance; or
``(B) in the case of a family that, as of such date, is
receiving the assistance, not later than 12 months after the
date of enactment of this subsection.
``(3) State discretion.--A State shall have sole
discretion, consistent with section 407, to define and design
activities for families for purposes of this subsection, to
develop methods for monitoring and reviewing progress
pursuant to this subsection, and to make modifications to the
plan as the State deems appropriate to assist the individual
in increasing their degree of self-sufficiency.
``(4) Rule of interpretation.--Nothing in this part shall
preclude a State from requiring participation in work and any
other activities the State deems appropriate for helping
families achieve self-sufficiency and improving child well-
being.''.
(2) Penalty for failure to establish family self-
sufficiency plan.--Section 409(a)(3) (42 U.S.C. 609(a)(3)) is
amended--
(A) in the paragraph heading, by inserting ``or establish
family self-sufficiency plan'' after ``rates''; and
(B) in subparagraph (A), by inserting ``or 408(b)'' after
``407(a)''.

SEC. 110. WORK PARTICIPATION REQUIREMENTS.

(a) Elimination of Separate Participation Rate Requirements
for 2-Parent Families.--
(1) Section 407 (42 U.S.C. 607) is amended in each of
subsections (a) and (b) by striking paragraph (2).
(2) Section 407(b)(4) (42 U.S.C. 607(b)(4)) is amended by
striking ``paragraphs (1)(B) and (2)(B)'' and inserting
``paragraph (1)(B)''.
(3) Section 407(c)(1) (42 U.S.C. 607(c)(1)) is amended by
striking subparagraph (B).
(4) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is
amended by striking ``paragraphs (1)(B)(i) and (2)(B) of
subsection (b)'' and inserting ``subsection (b)(1)(B)(i)''.
(b) Work Participation Requirements.--Section 407 (42
U.S.C. 607) is amended by striking all that precedes
subsection (b)(3) and inserting the following:

``SEC. 407. WORK PARTICIPATION REQUIREMENTS.

``(a) Participation Rate Requirements.--
``(1) In general.--Subject to the succeeding provisions of
this section, a State to which a grant is made under section
403 for a fiscal year shall achieve a minimum participation
rate equal to not less than--
``(A) 50 percent for fiscal year 2006;
``(B) 55 percent for fiscal year 2007;
``(C) 60 percent for fiscal year 2008;
``(D) 65 percent for fiscal year 2009; and
``(E) 70 percent for fiscal year 2010 and each succeeding
fiscal year.
``(2) Minimum participation rate floor.--
``(A) In general.--A State to which a grant is made under
section 403 for a fiscal year shall achieve a minimum
participation rate floor, calculated in accordance with
subparagraph (B), that is not less than--
``(i) 10 percent for fiscal year 2006;
``(ii) 20 percent for fiscal year 2007;
``(iii) 30 percent for fiscal year 2008;
``(iv) 40 percent for fiscal year 2009; and
``(v) 55 percent for fiscal year 2010 and each succeeding
fiscal year.
``(B) Calculation of participation rates for determining
compliance with minimum participation rate floor.--
``(i) In general.--For purposes of determining compliance
with subparagraph (A), the provisions of subsection (b) shall
apply with respect to the calculation of the participation
rate of a State for a fiscal year except as provided in
clauses (ii) and (iii).
``(ii) Special rules.--For purposes of this paragraph--

``(I) a reduction under subsection (b)(3) shall not be
applied with respect to a State for a fiscal year to the
extent it would reduce the minimum participation rate the
State is otherwise required to meet below the level specified
in subparagraph (A) for such fiscal year;
``(II) the participation rate determined under paragraphs
(1) and (2) of subsection (b) for a State for a fiscal year
may not be increased as provided in subsection (b)(4) if the
State's participation rate (as so determined) is below the
level specified for such fiscal year in subparagraph (A); and
``(III) the options to exclude certain families for
purposes of determining monthly participation rates provided
in subsection (b)(2)(B)(ii) shall not apply.

``(iii) Definition of assistance.--For purposes of this
paragraph, the term `assistance' in subsection (b) shall be
deemed to mean assistance to a family that--

``(I) meets the definition of that term in section 419; and
``(II) is provided--

``(aa) under the State program funded under this part; or
``(bb) under a program funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)).
``(C) No work requirement imposed for families with an
infant.--Nothing in this paragraph shall be construed as
requiring a State to require a family in which the youngest
child has not attained 12 months of age to engage in work or
other activities.
``(b) Calculation of Participation Rates.--
``(1) Average monthly rate.--For purposes of subsection
(a), the participation rate of a State for a fiscal year is
the average of the participation rates of the State for each
month in the fiscal year.
``(2) Monthly participation rates; incorporation of 40-hour
work week standard.--
``(A) In general.--For purposes of paragraph (1), the
participation rate of a State for a month is--
``(i) the total number of countable hours (as defined in
subsection (c)) with respect to the counted families for the
State for the month; divided by
``(ii) 160 multiplied by the number of counted families for
the State for the month.
``(B) Counted families defined.--
``(i) In general.--In subparagraph (A), the term `counted
family' means, with respect to a State and a month, a family
that includes a work-eligible individual and that receives
assistance in the month under the State program funded under
this part, subject to clause (ii).
``(ii) State option to exclude certain families.--At the
option of a State, the term `counted family' shall not
include--

``(I) a family in the first month for which the family
receives assistance from a State program funded under this
part on the basis of the most recent application for such
assistance; or
``(II) on a case-by-case basis, a family in which the
youngest child has not attained 12 months of age.

``(iii) State option to include individuals receiving
assistance under a tribal family assistance plan or tribal
work program.--At the option of a State, the term `counted
family' may include families in the State that are receiving
assistance under a tribal family assistance plan approved
under section 412 or under a tribal work program to which
funds are provided under this part.
``(C) Work-eligible individual defined.--In this section,
the term `work-eligible individual' means an individual--
``(i) who is married or a single head of household; and
``(ii) whose needs are (or, but for sanctions under this
part that have been in effect for more than 3 months (whether
or not consecutive) in the preceding 12 months or under part
D, would be) included in determining the amount of cash
assistance to be provided to the family under the State
program funded under this part.''.
(c) Recalibration of Caseload Reduction Credit.--
(1) In general.--Section 407(b)(3)(A)(ii) (42 U.S.C.
607(b)(3)(A)(ii)) is amended to read as follows:
``(ii) the average monthly number of families that received
assistance under the State program funded under this part
during the base year.''.
(2) Conforming amendment.--Section 407(b)(3)(B) (42 U.S.C.
607(b)(3)(B)) is amended by striking ``and eligibility
criteria'' and all that follows through the close parenthesis
and inserting ``and the eligibility criteria in effect during
the then applicable base year''.
(3) Base year defined.--Section 407(b)(3) (42 U.S.C.
607(b)(3)) is amended by adding at the end the following:
``(C) Base year defined.--In this paragraph, the term `base
year' means, with respect to a fiscal year--
``(i) if the fiscal year is fiscal year 2006, fiscal year
1996;

[[Page S268]]

``(ii) if the fiscal year is fiscal year 2007, fiscal year
1998;
``(iii) if the fiscal year is fiscal year 2008, fiscal year
2001; or
``(iv) if the fiscal year is fiscal year 2009 or any
succeeding fiscal year, the then 4th preceding fiscal
year.''.
(d) Superachiever Credit.--Section 407(b) (42 U.S.C.
607(b)) is amended by striking paragraphs (4) and (5) and
inserting the following:
``(4) Superachiever credit.--
``(A) In general.--The participation rate, determined under
paragraphs (1) and (2) of this subsection, of a superachiever
State for a fiscal year shall be increased by the lesser of--
``(i) the amount (if any) of the superachiever credit
applicable to the State; or
``(ii) the number of percentage points (if any) by which
the minimum participation rate required by subsection (a) for
the fiscal year exceeds 50 percent.
``(B) Superachiever state.--For purposes of subparagraph
(A), a State is a superachiever State if the State caseload
for fiscal year 2001 has declined by at least 60 percent from
the State caseload for fiscal year 1995.
``(C) Amount of credit.--The superachiever credit
applicable to a State is the number of percentage points (if
any) by which the decline referred to in subparagraph (B)
exceeds 60 percent.
``(D) Definitions.--In this paragraph:
``(i) State caseload for fiscal year 2001.--The term `State
caseload for fiscal year 2001' means the average monthly
number of families that received assistance during fiscal
year 2001 under the State program funded under this part.
``(ii) State caseload for fiscal year 1995.--The term
`State caseload for fiscal year 1995' means the average
monthly number of families that received aid under the State
plan approved under part A (as in effect on September 30,
1995) during fiscal year 1995.''.
(e) Countable Hours.--Section 407 of such Act (42 U.S.C.
607) is amended by striking subsections (c) and (d) and
inserting the following:
``(c) Countable Hours.--
``(1) Definition.--In subsection (b)(2), the term
`countable hours' means, with respect to a family for a
month, the total number of hours in the month in which any
member of the family who is a work-eligible individual is
engaged in a direct work activity or other activities
specified by the State (excluding an activity that does not
address a purpose specified in section 401(a)), subject to
the other provisions of this subsection.
``(2) Limitations.--Subject to such regulations as the
Secretary may prescribe:
``(A) Minimum weekly average of 24 hours of direct work
activities required.--If the work-eligible individuals in a
family are engaged in a direct work activity for an average
total of fewer than 24 hours per week in a month, then the
number of countable hours with respect to the family for the
month shall be zero.
``(B) Maximum weekly average of 16 hours of other
activities.--An average of not more than 16 hours per week of
activities specified by the State (subject to the exclusion
described in paragraph (1)) may be considered countable hours
in a month with respect to a family.
``(3) Special rules.--For purposes of paragraph (1):
``(A) Participation in qualified activities.--
``(i) In general.--If, with the approval of the State, the
work-eligible individuals in a family are engaged in 1 or
more qualified activities for an average total of at least 24
hours per week in a month, then all such engagement in the
month shall be considered engagement in a direct work
activity, subject to clause (iii).
``(ii) Qualified activity defined.--The term `qualified
activity' means an activity specified by the State (subject
to the exclusion described in paragraph (1)) that meets such
standards and criteria as the State may specify, including--

``(I) substance abuse counseling or treatment;
``(II) rehabilitation treatment and services;
``(III) work-related education or training directed at
enabling the family member to work;
``(IV) job search or job readiness assistance; and
``(V) any other activity that addresses a purpose specified
in section 401(a).

``(iii) Limitation.--

``(I) In general.--Except as provided in subclause (II),
clause (i) shall not apply to a family for more than 3 months
in any period of 24 consecutive months.
``(II) Special rule applicable to education and training.--
A State may, on a case-by-case basis, apply clause (i) to a
work-eligible individual so that participation by the
individual in education or training, if needed to permit the
individual to complete a certificate program or other work-
related education or training directed at enabling the
individual to fill a known job need in a local area, may be
considered countable hours with respect to the family of the
individual for not more than 4 months in any period of 24
consecutive months.

``(B) School attendance by teen head of household.--The
work-eligible members of a family shall be considered to be
engaged in a direct work activity for an average of 40 hours
per week in a month if the family includes an individual who
is married, or is a single head of household, who has not
attained 20 years of age, and the individual--
``(i) maintains satisfactory attendance at secondary school
or the equivalent in the month; or
``(ii) participates in education directly related to
employment for an average of at least 20 hours per week in
the month.
``(d) Direct Work Activity.--In this section, the term
`direct work activity' means--
``(1) unsubsidized employment;
``(2) subsidized private sector employment;
``(3) subsidized public sector employment;
``(4) on-the-job training;
``(5) supervised work experience; or
``(6) supervised community service.''.
(f) Penalties Against Individuals.--Section 407(e)(1) (42
U.S.C. 607(e)(1)) is amended to read as follows:
``(1) Reduction or termination of assistance.--
``(A) In general.--Except as provided in paragraph (2), if
an individual in a family receiving assistance under a State
program funded under this part fails to engage in activities
required in accordance with this section, or other activities
required by the State under the program, and the family does
not otherwise engage in activities in accordance with the
self-sufficiency plan established for the family pursuant to
section 408(b), the State shall--
``(i) if the failure is partial or persists for not more
than 1 month--

``(I) reduce the amount of assistance otherwise payable to
the family pro rata (or more, at the option of the State)
with respect to any period during a month in which the
failure occurs; or
``(II) terminate all assistance to the family, subject to
such good cause exceptions as the State may establish; or

``(ii) if the failure is total and persists for at least 2
consecutive months, terminate all cash payments to the family
including qualified State expenditures (as defined in section
409(a)(7)(B)(i)) for at least 1 month and thereafter until
the State determines that the individual has resumed full
participation in the activities, subject to such good cause
exceptions as the State may establish.
``(B) Special rule.--
``(i) In general.--In the event of a conflict between a
requirement of clause (i)(II) or (ii) of subparagraph (A) and
a requirement of a State constitution, or of a State statute
that, before 1966, obligated local government to provide
assistance to needy parents and children, the State
constitutional or statutory requirement shall control.
``(ii) Limitation.--Clause (i) of this subparagraph shall
not apply after the 1-year period that begins with the date
of the enactment of this subparagraph.''.
(g) Conforming Amendments.--
(1) Section 407(f) (42 U.S.C. 607(f)) is amended in each of
paragraphs (1) and (2) by striking ``work activity described
in subsection (d)'' and inserting ``direct work activity''.
(2) The heading of section 409(a)(14) (42 U.S.C.
609(a)(14)) is amended by inserting ``or refusing to engage
in activities under a family self-sufficiency plan'' after
``work''.

SEC. 111. MAINTENANCE OF EFFORT.

(a) In General.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is
amended--
(1) in subparagraph (A), by striking ``fiscal year 1998,
1999, 2000, 2001, 2002, 2003, 2004, 2005, or 2006'' and
inserting ``fiscal year 2006, 2007, 2008, 2009, 2010, or
2011''; and
(2) in subparagraph (B)(ii)--
(A) by inserting ``preceding'' before ``fiscal year''; and
(B) by striking ``for fiscal years 1997 through 2005,''.
(b) State Spending on Promoting Healthy Marriage.--
(1) In general.--Section 404 (42 U.S.C. 604) is amended by
adding at the end the following:
``(l) Marriage Promotion.--A State, territory, or tribal
organization to which a grant is made under section 403(a)(2)
may use a grant made to the State, territory, or tribal
organization under any other provision of section 403 for
marriage promotion activities, and the amount of any such
grant so used shall be considered State funds for purposes of
section 403(a)(2).''.
(2) Federal tanf funds used for marriage promotion
disregarded for purposes of maintenance of effort
requirement.--Section 409(a)(7)(B)(i) (42 U.S.C.
609(a)(7)(B)(i)), as amended by section 103(c) of this Act,
is amended by adding at the end the following:

``(VI) Exclusion of federal tanf funds used for marriage
promotion activities.--Such term does not include the amount
of any grant made to the State under section 403 that is
expended for a marriage promotion activity.''.

SEC. 112. PERFORMANCE IMPROVEMENT.

(a) State Plans.--Section 402(a) (42 U.S.C. 602(a)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by redesignating clause (vi) and clause (vii) (as added
by section 103(a) of this Act) as clauses (vii) and (viii),
respectively; and
(ii) by striking clause (v) and inserting the following:
``(v) The document shall--

``(I) describe how the State will pursue ending dependence
of needy families on government benefits and reducing poverty
by promoting job preparation and work;
``(II) describe how the State will encourage the formation
and maintenance of healthy 2-parent married families,
encourage responsible fatherhood, and prevent and reduce the
incidence of out-of-wedlock pregnancies;

[[Page S269]]

``(III) include specific, numerical, and measurable
performance objectives for accomplishing subclauses (I) and
(II), and with respect to subclause (I), include objectives
consistent with the criteria used by the Secretary in
establishing performance targets under section 403(a)(4)(B)
if available; and
``(IV) describe the methodology that the State will use to
measure State performance in relation to each such objective.

``(vi) Describe any strategies and programs the State may
be undertaking to address--

``(I) employment retention and advancement for recipients
of assistance under the program, including placement into
high-demand jobs, and whether the jobs are identified using
labor market information;
``(II) efforts to reduce teen pregnancy;
``(III) services for struggling and noncompliant families,
and for clients with special problems; and
``(IV) program integration, including the extent to which
employment and training services under the program are
provided through the One-Stop delivery system created under
the Workforce Investment Act of 1998, and the extent to which
former recipients of such assistance have access to
additional core, intensive, or training services funded
through such Act.''; and

(B) in subparagraph (B), by striking clause (iii) (as so
redesignated by section 107(b)(1) of this Act) and inserting
the following:
``(iii) The document shall describe strategies and programs
the State is undertaking to engage religious organizations in
the provision of services funded under this part and efforts
related to section 104 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996.
``(iv) The document shall describe strategies to improve
program management and performance.''; and
(2) in paragraph (4), by inserting ``and tribal'' after
``that local''.
(b) Consultation With State Regarding Plan and Design of
Tribal Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is
amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) provides an assurance that the State in which the
tribe is located has been consulted regarding the plan and
its design.''.
(c) Performance Measures.--Section 413 (42 U.S.C. 613) is
amended by adding at the end the following:
``(k) Performance Improvement.--The Secretary, in
consultation with the States, shall develop uniform
performance measures designed to assess the degree of
effectiveness, and the degree of improvement, of State
programs funded under this part in accomplishing the purposes
of this part.''.
(d) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C.
613(d)(1)) is amended by striking ``long-term private sector
jobs'' and inserting ``private sector jobs, the success of
the recipients in retaining employment, the ability of the
recipients to increase their wages''.

SEC. 113. DATA COLLECTION AND REPORTING.

(a) Contents of Report.--Section 411(a)(1)(A) (42 U.S.C.
611(a)(1)(A)) is amended--
(1) in the matter preceding clause (i), by inserting ``and
on families receiving assistance under State programs funded
with other qualified State expenditures (as defined in
section 409(a)(7)(B))'' before the colon;
(2) in clause (vii), by inserting ``and minor parent''
after ``of each adult'';
(3) in clause (viii), by striking ``and educational
level'';
(4) in clause (ix), by striking ``, and if the latter 2,
the amount received'';
(5) in clause (x)--
(A) by striking ``each type of''; and
(B) by inserting before the period ``and, if applicable,
the reason for receipt of the assistance for a total of more
than 60 months'';
(6) in clause (xi), by striking the subclauses and
inserting the following:

``(I) Subsidized private sector employment.
``(II) Unsubsidized employment.
``(III) Public sector employment, supervised work
experience, or supervised community service.
``(IV) On-the-job training.
``(V) Job search and placement.
``(VI) Training.
``(VII) Education.
``(VIII) Other activities directed at the purposes of this
part, as specified in the State plan submitted pursuant to
section 402.'';

(7) in clause (xii), by inserting ``and progress toward
universal engagement'' after ``participation rates'';
(8) in clause (xiii), by striking ``type and'' before
``amount of assistance'';
(9) in clause (xvi), by striking subclause (II) and
redesignating subclauses (III) through (V) as subclauses (II)
through (IV), respectively; and
(10) by adding at the end the following:
``(xviii) The date the family first received assistance
from the State program on the basis of the most recent
application for such assistance.
``(xix) Whether a self-sufficiency plan is established for
the family in accordance with section 408(b).
``(xx) With respect to any child in the family, the marital
status of the parents at the birth of the child, and if the
parents were not then married, whether the paternity of the
child has been established.''.
(b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C.
611(a)(1)(B)) is amended--
(1) in clause (i)--
(A) by striking ``a sample'' and inserting ``samples''; and
(B) by inserting before the period ``, except that the
Secretary may designate core data elements that must be
reported on all families''; and
(2) in clause (ii), by striking ``funded under this part''
and inserting ``described in subparagraph (A)''.
(c) Report on Families That Become Ineligible to Receive
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--
(1) by striking paragraph (5);
(2) by redesignating paragraph (6) as paragraph (5); and
(3) by inserting after paragraph (5) (as so redesignated)
the following:
``(6) Report on families that become ineligible to receive
assistance.--The report required by paragraph (1) for a
fiscal quarter shall include for each month in the quarter
the number of families and total number of individuals that,
during the month, became ineligible to receive assistance
under the State program funded under this part (broken down
by the number of families that become so ineligible due to
earnings, changes in family composition that result in
increased earnings, sanctions, time limits, or other
specified reasons).''.
(d) Regulations.--Section 411(a)(7) (42 U.S.C. 611(a)(7))
is amended--
(1) by inserting ``and to collect the necessary data''
before ``with respect to which reports'';
(2) by striking ``subsection'' and inserting ``section'';
and
(3) by striking ``in defining the data elements'' and all
that follows and inserting ``, the National Governors'
Association, the American Public Human Services Association,
the National Conference of State Legislatures, and others in
defining the data elements.''.
(e) Additional Reports by States.--Section 411 (42 U.S.C.
611) is amended--
(1) by redesignating subsection (b) as subsection (e); and
(2) by inserting after subsection (a) the following:
``(b) Annual Reports on Program Characteristics.--Not later
than 90 days after the end of fiscal year 2006 and each
succeeding fiscal year, each eligible State shall submit to
the Secretary a report on the characteristics of the State
program funded under this part and other State programs
funded with qualified State expenditures (as defined in
section 409(a)(7)(B)(i)). The report shall include, with
respect to each such program, the program name, a description
of program activities, the program purpose, the program
eligibility criteria, the sources of program funding, the
number of program beneficiaries, sanction policies, and any
program work requirements.
``(c) Monthly Reports on Caseload.--Not later than 3 months
after the end of a calendar month that begins 1 year or more
after the enactment of this subsection, each eligible State
shall submit to the Secretary a report on the number of
families and total number of individuals receiving assistance
in the calendar month under the State program funded under
this part.
``(d) Annual Report on Performance Improvement.--Beginning
with fiscal year 2007, not later than January 1 of each
fiscal year, each eligible State shall submit to the
Secretary a report on achievement and improvement during the
preceding fiscal year under the numerical performance goals
and measures under the State program funded under this part
with respect to each of the matters described in section
402(a)(1)(A)(v).''.
(f) Annual Reports to Congress by the Secretary.--Section
411(e), as so redesignated by subsection (e) of this section,
is amended--
(1) in the matter preceding paragraph (1), by striking
``and each fiscal year thereafter'' and inserting ``and by
July 1 of each fiscal year thereafter'';
(2) in paragraph (2), by striking ``families applying for
assistance,'' and by striking the last comma; and
(3) in paragraph (3), by inserting ``and other programs
funded with qualified State expenditures (as defined in
section 409(a)(7)(B)(i))'' before the semicolon.
(g) Increased Analysis of State Single Audit Reports.--
Section 411 (42 U.S.C. 611) is amended by adding at the end
the following:
``(f) Increased Analysis of State Single Audit Reports.--
``(1) In general.--Within 3 months after a State submits to
the Secretary a report pursuant to section 7502(a)(1)(A) of
title 31, United States Code, the Secretary shall analyze the
report for the purpose of identifying the extent and nature
of problems related to the oversight by the State of
nongovernmental entities with respect to contracts entered
into by such entities with the State program funded under
this part, and determining what additional actions may be
appropriate to help prevent and correct the problems.
``(2) Inclusion of program oversight section in annual
report to the congress.--The Secretary shall include in each
report under subsection (e) a section on oversight of State
programs funded under this part, including findings on the
extent and nature of the problems referred to in paragraph
(1), actions taken to resolve the problems, and to the extent
the Secretary deems appropriate make recommendations on
changes needed to resolve the problems.''.

[[Page S270]]

SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

(a) Tribal Family Assistance Grant.--Section 412(a)(1)(A)
(42 U.S.C. 612(a)(1)(A)) is amended by striking ``1997, 1998,
1999, 2000, 2001, 2002, and 2003'' and inserting ``2006
through 2010''.
(b) Grants for Indian Tribes That Received JOBS Funds.--
Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)) is amended by
striking ``1997, 1998, 1999, 2000, 2001, 2002, and 2003'' and
inserting ``2006 through 2010''.

SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

(a) Secretary's Fund for Research, Demonstrations, and
Technical Assistance.--
(1) In general.--Section 413 (42 U.S.C. 613), as amended by
section 112(c) of this Act, is further amended by adding at
the end the following:
``(l) Funding for Research, Demonstrations, and Technical
Assistance.--
``(1) Appropriation.--
``(A) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated $102,000,000 for each of fiscal years 2005
through 2010, which shall be available to the Secretary for
the purpose of conducting and supporting research and
demonstration projects by public or private entities, and
providing technical assistance to States, Indian tribal
organizations, and such other entities as the Secretary may
specify that are receiving a grant under this part, which
shall be expended primarily on activities described in
section 403(a)(2)(B), and which shall be in addition to any
other funds made available under this part.
``(B) Extended availability of fy 2005 funds.--Funds
appropriated under this paragraph for fiscal year 2005 shall
remain available to the Secretary through fiscal year 2006,
for use in accordance with this paragraph for fiscal year
2005.
``(2) Set aside for demonstration projects for coordination
of provision of child welfare and tanf services to tribal
families at risk of child abuse or neglect.--
``(A) In general.--Of the amounts made available under
paragraph (1) for a fiscal year, $2,000,000 shall be awarded
on a competitive basis to fund demonstration projects
designed to test the effectiveness of tribal governments or
tribal consortia in coordinating the provision to tribal
families at risk of child abuse or neglect of child welfare
services and services under tribal programs funded under this
part.
``(B) Use of funds.--A grant made to such a project shall
be used--
``(i) to improve case management for families eligible for
assistance from such a tribal program;
``(ii) for supportive services and assistance to tribal
children in out-of-home placements and the tribal families
caring for such children, including families who adopt such
children; and
``(iii) for prevention services and assistance to tribal
families at risk of child abuse and neglect.
``(C) Reports.--The Secretary may require a recipient of
funds awarded under this paragraph to provide the Secretary
with such information as the Secretary deems relevant to
enable the Secretary to facilitate and oversee the
administration of any project for which funds are provided
under this paragraph.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of the enactment of this Act.
(b) Funding of Studies and Demonstrations.--Section
413(h)(1) (42 U.S.C. 613(h)(1)) is amended in the matter
preceding subparagraph (A) by striking ``1997 through 2002''
and inserting ``2006 through 2010''.
(c) Report on Enforcement of Certain Affidavits of Support
and Sponsor Deeming.--Not later than March 31, 2006, the
Secretary of Health and Human Services, in consultation with
the Attorney General, shall submit to the Congress a report
on the enforcement of affidavits of support and sponsor
deeming as required by section 421, 422, and 432 of the
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996.
(d) Report on Coordination.--Not later than 6 months after
the date of the enactment of this Act, the Secretary of
Health and Human Services and the Secretary of Labor shall
jointly submit a report to the Congress describing common or
conflicting data elements, definitions, performance measures,
and reporting requirements in the Workforce Investment Act of
1998 and part A of title IV of the Social Security Act, and,
to the degree each Secretary deems appropriate, at the
discretion of either Secretary, any other program
administered by the respective Secretary, to allow greater
coordination between the welfare and workforce development
systems.

SEC. 116. STUDIES BY THE CENSUS BUREAU AND THE GOVERNMENT
ACCOUNTABILITY OFFICE.

(a) Census Bureau Study.--
(1) In general.--Section 414(a) (42 U.S.C. 614(a)) is
amended to read as follows:
``(a) In General.--The Bureau of the Census shall implement
or enhance a longitudinal survey of program participation,
developed in consultation with the Secretary and made
available to interested parties, to allow for the assessment
of the outcomes of continued welfare reform on the economic
and child well-being of low-income families with children,
including those who received assistance or services from a
State program funded under this part, and, to the extent
possible, shall provide State representative samples. The
content of the survey should include such information as may
be necessary to examine the issues of out-of-wedlock
childbearing, marriage, welfare dependency and compliance
with work requirements, the beginning and ending of spells of
assistance, work, earnings and employment stability, and the
well-being of children.''.
(2) Appropriation.--Section 414(b) (42 U.S.C. 614(b)) is
amended--
(A) by striking ``1996,'' and all that follows through
``2003'' and inserting ``2006 through 2010''; and
(B) by adding at the end the following: ``Funds
appropriated under this subsection shall remain available
through fiscal year 2010 to carry out subsection (a).''.
(b) GAO Study.--
(1) In general.--The Comptroller General of the United
States shall conduct a study to determine the combined effect
of the phase-out rates for Federal programs and policies
which provide support to low-income families and individuals
as they move from welfare to work, at all earning levels up
to $35,000 per year, for at least 5 States including
Wisconsin and California, and any potential disincentives the
combined phase-out rates create for families to achieve
independence or to marry.
(2) Report.--Not later than 1 year after the date of the
enactment of this subsection, the Comptroller General shall
submit a report to Congress containing the results of the
study conducted under this section and, as appropriate, any
recommendations consistent with the results.

SEC. 117. DEFINITION OF ASSISTANCE.

(a) In General.--Section 419 (42 U.S.C. 619) is amended by
adding at the end the following:
``(6) Assistance.--
``(A) In general.--The term `assistance' means payment, by
cash, voucher, or other means, to or for an individual or
family for the purpose of meeting a subsistence need of the
individual or family (including food, clothing, shelter, and
related items, but not including costs of transportation or
child care).
``(B) Exception.--The term `assistance' does not include a
payment described in subparagraph (A) to or for an individual
or family on a short-term, nonrecurring basis (as defined by
the State in accordance with regulations prescribed by the
Secretary).''.
(b) Conforming Amendments.--
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by
striking ``assistance'' and inserting ``aid''.
(2) Section 404(f) (42 U.S.C. 604(f)) is amended by
striking ``assistance'' and inserting ``benefits or
services''.
(3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is
amended in the heading by striking ``assistance'' and
inserting ``aid''.
(4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is amended by
striking ``assistance'' and inserting ``aid''.

SEC. 118. TECHNICAL CORRECTIONS.

(a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended by
inserting a comma after ``appropriate''.
(b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
(c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is
amended by striking ``section'' and inserting ``sections''.
(d)(1) Section 413 (42 U.S.C. 613) is amended by striking
subsection (g) and redesignating subsections (h) through (j)
and subsections (k) and (l) (as added by sections 112(c) and
115(a) of this Act, respectively) as subsections (g) through
(k), respectively.
(2) Each of the following provisions is amended by striking
``413(j)'' and inserting ``413(i)'':
(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C.
603(a)(5)(A)(ii)(III)).
(B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).
(C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).
(D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).

SEC. 119. FATHERHOOD PROGRAM.

(a) Short Title.--This section may be cited as the
``Promotion and Support of Responsible Fatherhood and Healthy
Marriage Act of 2005''.
(b) Fatherhood Program.--
(1) In general.--Title I of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (Public Law 104-
193) is amended by adding at the end the following:

``SEC. 117. FATHERHOOD PROGRAM.

``(a) In General.--Title IV (42 U.S.C. 601-679b) is amended
by inserting after part B the following:

`PART C--FATHERHOOD PROGRAM

`SEC. 441. FINDINGS AND PURPOSES.

`(a) Findings.--The Congress finds that there is
substantial evidence strongly indicating the urgent need to
promote and support involved, committed, and responsible
fatherhood, and to encourage and support healthy marriages
between parents raising children, including data
demonstrating the following:
`(1) In approximately 84 percent of cases where a parent is
absent, that parent is the father.
`(2) If current trends continue, half of all children born
today will live apart from one of their parents, usually
their father, at some point before they turn 18.

[[Page S271]]

`(3) Where families (whether intact or with a parent
absent) are living in poverty, a significant factor is the
father's lack of job skills.
`(4) Committed and responsible fathering during infancy and
early childhood contributes to the development of emotional
security, curiosity, and math and verbal skills.
`(5) An estimated 19,400,000 children (27 percent) live
apart from their biological father.
`(6) Forty percent of children under age 18 not living with
their biological father had not seen their father even once
in the last 12 months, according to national survey data.
`(b) Purposes.--The purposes of this part are:
`(1) To provide for projects and activities by public
entities and by nonprofit community entities, including
religious organizations, designed to test promising
approaches to accomplishing the following objectives:
`(A) Promoting responsible, caring, and effective parenting
through counseling, mentoring, and parenting education,
dissemination of educational materials and information on
parenting skills, encouragement of positive father
involvement, including the positive involvement of
nonresident fathers, and other methods.
`(B) Enhancing the abilities and commitment of unemployed
or low-income fathers to provide material support for their
families and to avoid or leave welfare programs by assisting
them to take full advantage of education, job training, and
job search programs, to improve work habits and work skills,
to secure career advancement by activities such as outreach
and information dissemination, coordination, as appropriate,
with employment services and job training programs, including
the One-Stop delivery system established under title I of the
Workforce Investment Act of 1998, encouragement and support
of timely payment of current child support and regular
payment toward past due child support obligations in
appropriate cases, and other methods.
`(C) Improving fathers' ability to effectively manage
family business affairs by means such as education,
counseling, and mentoring in matters including household
management, budgeting, banking, and handling of financial
transactions, time management, and home maintenance.
`(D) Encouraging and supporting healthy marriages and
married fatherhood through such activities as premarital
education, including the use of premarital inventories,
marriage preparation programs, skills-based marriage
education programs, marital therapy, couples counseling,
divorce education and reduction programs, divorce mediation
and counseling, relationship skills enhancement programs,
including those designed to reduce child abuse and domestic
violence, and dissemination of information about the benefits
of marriage for both parents and children.
`(2) Through the projects and activities described in
paragraph (1), to improve outcomes for children with respect
to measures such as increased family income and economic
security, improved school performance, better health,
improved emotional and behavioral stability and social
adjustment, and reduced risk of delinquency, crime, substance
abuse, child abuse and neglect, teen sexual activity, and
teen suicide.
`(3) To evaluate the effectiveness of various approaches
and to disseminate findings concerning outcomes and other
information in order to encourage and facilitate the
replication of effective approaches to accomplishing these
objectives.

`SEC. 442. DEFINITIONS.

`In this part, the terms ``Indian tribe'' and ``tribal
organization'' have the meanings given them in subsections
(e) and (l), respectively, of section 4 of the Indian Self-
Determination and Education Assistance Act.

`SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.

`(a) In General.--The Secretary may make grants for fiscal
years 2006 through 2010 to public and nonprofit community
entities, including religious organizations, and to Indian
tribes and tribal organizations, for demonstration service
projects and activities designed to test the effectiveness of
various approaches to accomplish the objectives specified in
section 441(b)(1).
`(b) Eligibility Criteria for Full Service Grants.--In
order to be eligible for a grant under this section, except
as specified in subsection (c), an entity shall submit an
application to the Secretary containing the following:
`(1) Project description.--A statement including--
`(A) a description of the project and how it will be
carried out, including the geographical area to be covered
and the number and characteristics of clients to be served,
and how it will address each of the 4 objectives specified in
section 441(b)(1); and
`(B) a description of the methods to be used by the entity
or its contractor to assess the extent to which the project
was successful in accomplishing its specific objectives and
the general objectives specified in section 441(b)(1).
`(2) Experience and qualifications.--A demonstration of
ability to carry out the project, by means such as
demonstration of experience in successfully carrying out
projects of similar design and scope, and such other
information as the Secretary may find necessary to
demonstrate the entity's capacity to carry out the project,
including the entity's ability to provide the non-Federal
share of project resources.
`(3) Addressing child abuse and neglect and domestic
violence.--A description of how the entity will assess for
the presence of, and intervene to resolve, domestic violence
and child abuse and neglect, including how the entity will
coordinate with State and local child protective service and
domestic violence programs.
`(4) Addressing concerns relating to substance abuse and
sexual activity.--A commitment to make available to each
individual participating in the project education about
alcohol, tobacco, and other drugs, and about the health risks
associated with abusing such substances, and information
about diseases and conditions transmitted through substance
abuse and sexual contact, including HIV/AIDS, and to
coordinate with providers of services addressing such
problems, as appropriate.
`(5) Coordination with specified programs.--An undertaking
to coordinate, as appropriate, with State and local entities
responsible for the programs under parts A, B, and D of this
title, including programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop delivery
system), and such other programs as the Secretary may
require.
`(6) Records, reports, and audits.--An agreement to
maintain such records, make such reports, and cooperate with
such reviews or audits as the Secretary may find necessary
for purposes of oversight of project activities and
expenditures.
`(7) Self-initiated evaluation.--If the entity elects to
contract for independent evaluation of the project (part or
all of the cost of which may be paid for using grant funds),
a commitment to submit to the Secretary a copy of the
evaluation report within 30 days after completion of the
report and not more than 1 year after completion of the
project.
`(8) Cooperation with secretary's oversight and
evaluation.--An agreement to cooperate with the Secretary's
evaluation of projects assisted under this section, by means
including random assignment of clients to service recipient
and control groups, if determined by the Secretary to be
appropriate, and affording the Secretary access to the
project and to project-related records and documents, staff,
and clients.
`(c) Eligibility Criteria for Limited Purpose Grants.--In
order to be eligible for a grant under this section in an
amount under $25,000 per fiscal year, an entity shall submit
an application to the Secretary containing the following:
`(1) Project description.--A description of the project and
how it will be carried out, including the number and
characteristics of clients to be served, the proposed
duration of the project, and how it will address at least 1
of the 4 objectives specified in section 441(b)(1).
`(2) Qualifications.--Such information as the Secretary may
require as to the capacity of the entity to carry out the
project, including any previous experience with similar
activities.
`(3) Coordination with related programs.--As required by
the Secretary in appropriate cases, an undertaking to
coordinate and cooperate with State and local entities
responsible for specific programs relating to the objectives
of the project including, as appropriate, jobs programs and
programs serving children and families.
`(4) Records, reports, and audits.--An agreement to
maintain such records, make such reports, and cooperate with
such reviews or audits as the Secretary may find necessary
for purposes of oversight of project activities and
expenditures.
`(5) Cooperation with secretary's oversight and
evaluation.--An agreement to cooperate with the Secretary's
evaluation of projects assisted under this section, by means
including affording the Secretary access to the project and
to project-related records and documents, staff, and clients.
`(d) Considerations in Awarding Grants.--
`(1) Diversity of projects.--In awarding grants under this
section, the Secretary shall seek to achieve a balance among
entities of differing sizes, entities in differing geographic
areas, entities in urban and in rural areas, and entities
employing differing methods of achieving the purposes of this
section, including working with the State agency responsible
for the administration of part D to help fathers satisfy
child support arrearage obligations.
`(2) Preference for projects serving low-income fathers.--
In awarding grants under this section, the Secretary may give
preference to applications for projects in which a majority
of the clients to be served are low-income fathers.
`(e) Federal Share.--
`(1) In general.--Grants for a project under this section
for a fiscal year shall be available for a share of the cost
of such project in such fiscal year equal to--
`(A) up to 80 percent (or up to 90 percent, if the entity
demonstrates to the Secretary's satisfaction circumstances
limiting the entity's ability to secure non-Federal
resources) in the case of a project under subsection (b); and
`(B) up to 100 percent, in the case of a project under
subsection (c).
`(2) Non-federal share.--The non-Federal share may be in
cash or in kind. In determining the amount of the non-Federal
share, the Secretary may attribute fair market value to
goods, services, and facilities contributed from non-Federal
sources.

[[Page S272]]

`SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION PROJECTS.

`(a) In General.--The Secretary may make grants under this
section for fiscal years 2006 through 2010 to eligible
entities (as specified in subsection (b)) for 2 multicity,
multistate projects demonstrating approaches to achieving the
objectives specified in section 441(b)(1). One of the
projects shall test the use of married couples to deliver
program services.
`(b) Eligible Entities.--An entity eligible for a grant
under this section must be a national nonprofit fatherhood
promotion organization that meets the following requirements:
`(1) Experience with fatherhood programs.--The organization
must have substantial experience in designing and
successfully conducting programs that meet the purposes
described in section 441.
`(2) Experience with multicity, multistate programs and
government coordination.--The organization must have
experience in simultaneously conducting such programs in more
than 1 major metropolitan area in more than 1 State and in
coordinating such programs, where appropriate, with State and
local government agencies and private, nonprofit agencies
(including community-based and religious organizations),
including State or local agencies responsible for child
support enforcement and workforce development.
`(c) Application Requirements.--In order to be eligible for
a grant under this section, an entity must submit to the
Secretary an application that includes the following:
`(1) Qualifications.--
`(A) Eligible entity.--A demonstration that the entity
meets the requirements of subsection (b).
`(B) Other.--Such other information as the Secretary may
find necessary to demonstrate the entity's capacity to carry
out the project, including the entity's ability to provide
the non-Federal share of project resources.
`(2) Project description.--A description of and commitments
concerning the project design, including the following:
`(A) In general.--A detailed description of the proposed
project design and how it will be carried out, which shall--
`(i) provide for the project to be conducted in at least 3
major metropolitan areas;
`(ii) state how it will address each of the 4 objectives
specified in section 441(b)(1);
`(iii) demonstrate that there is a sufficient number of
potential clients to allow for the random selection of
individuals to participate in the project and for comparisons
with appropriate control groups composed of individuals who
have not participated in such projects; and
`(iv) demonstrate that the project is designed to direct a
majority of project resources to activities serving low-
income fathers (but the project need not make services
available on a means-tested basis).
`(B) Oversight, evaluation, and adjustment component.--An
agreement that the entity--
`(i) in consultation with the evaluator selected pursuant
to section 445, and as required by the Secretary, will modify
the project design, initially and (if necessary) subsequently
throughout the duration of the project, in order to
facilitate ongoing and final oversight and evaluation of
project operation and outcomes (by means including, to the
maximum extent feasible, random assignment of clients to
service recipient and control groups), and to provide for
mid-course adjustments in project design indicated by interim
evaluations;
`(ii) will submit to the Secretary revised descriptions of
the project design as modified in accordance with clause (i);
and
`(iii) will cooperate fully with the Secretary's ongoing
oversight and ongoing and final evaluation of the project, by
means including affording the Secretary access to the project
and to project-related records and documents, staff, and
clients.
`(3) Addressing child abuse and neglect and domestic
violence.--A description of how the entity will assess for
the presence of, and intervene to resolve, domestic violence
and child abuse and neglect, including how the entity will
coordinate with State and local child protective service and
domestic violence programs.
`(4) Addressing concerns relating to substance abuse and
sexual activity.--A commitment to make available to each
individual participating in the project education about
alcohol, tobacco, and other drugs, and about the health risks
associated with abusing such substances, and information
about diseases and conditions transmitted through substance
abuse and sexual contact, including HIV/AIDS, and to
coordinate with providers of services addressing such
problems, as appropriate.
`(5) Coordination with specified programs.--An undertaking
to coordinate, as appropriate, with State and local entities
responsible for the programs funded under parts A, B, and D
of this title, programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop delivery
system), and such other programs as the Secretary may
require.
`(6) Records, reports, and audits.--An agreement to
maintain such records, make such reports, and cooperate with
such reviews or audits (in addition to those required under
the preceding provisions of paragraph (2)) as the Secretary
may find necessary for purposes of oversight of project
activities and expenditures.
`(d) Federal Share.--
`(1) In general.--Grants for a project under this section
for a fiscal year shall be available for up to 80 percent of
the cost of such project in such fiscal year.
`(2) Non-federal share.--The non-Federal share may be in
cash or in kind. In determining the amount of the non-Federal
share, the Secretary may attribute fair market value to
goods, services, and facilities contributed from non-Federal
sources.

`SEC. 445. EVALUATION.

`(a) In General.--The Secretary, directly or by contract or
cooperative agreement, shall evaluate the effectiveness of
service projects funded under sections 443 and 444 from the
standpoint of the purposes specified in section 441(b)(1).
`(b) Evaluation Methodology.--Evaluations under this
section shall--
`(1) include, to the maximum extent feasible, random
assignment of clients to service delivery and control groups
and other appropriate comparisons of groups of individuals
receiving and not receiving services;
`(2) describe and measure the effectiveness of the projects
in achieving their specific project goals; and
`(3) describe and assess, as appropriate, the impact of
such projects on marriage, parenting, domestic violence,
child abuse and neglect, money management, employment and
earnings, payment of child support, and child well-being,
health, and education.
`(c) Evaluation Reports.--The Secretary shall publish the
following reports on the results of the evaluation:
`(1) An implementation evaluation report covering the first
24 months of the activities under this part to be completed
by 36 months after initiation of such activities.
`(2) A final report on the evaluation to be completed by
September 30, 2013.

`SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.

`The Secretary is authorized, by grant, contract, or
cooperative agreement, to carry out projects and activities
of national significance relating to fatherhood promotion,
including--
`(1) Collection and dissemination of information.--
Assisting States, communities, and private entities,
including religious organizations, in efforts to promote and
support marriage and responsible fatherhood by collecting,
evaluating, developing, and making available (through the
Internet and by other means) to all interested parties
information regarding approaches to accomplishing the
objectives specified in section 441(b)(1).
`(2) Media campaign.--Developing, promoting, and
distributing to interested States, local governments, public
agencies, and private nonprofit organizations, including
charitable and religious organizations, a media campaign that
promotes and encourages involved, committed, and responsible
fatherhood and married fatherhood.
`(3) Technical assistance.--Providing technical assistance,
including consultation and training, to public and private
entities, including community organizations and faith-based
organizations, in the implementation of local fatherhood
promotion programs.
`(4) Research.--Conducting research related to the purposes
of this part.

`SEC. 447. NONDISCRIMINATION.

`The projects and activities assisted under this part shall
be available on the same basis to all fathers and expectant
fathers able to benefit from such projects and activities,
including married and unmarried fathers and custodial and
noncustodial fathers, with particular attention to low-income
fathers, and to mothers and expectant mothers on the same
basis as to fathers.

`SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVATION FOR
CERTAIN PURPOSE.

`(a) Authorization.--There are authorized to be
appropriated $20,000,000 for each of fiscal years 2006
through 2010 to carry out the provisions of this part.
`(b) Reservation.--Of the amount appropriated under this
section for each fiscal year, not more than 15 percent shall
be available for the costs of the multicity, multicounty,
multistate demonstration projects under section 444,
evaluations under section 445, and projects of national
significance under section 446.'.
``(b) Inapplicability of Effective Date Provisions.--
Section 116 shall not apply to the amendment made by
subsection (a) of this section.''.
(2) Clerical amendment.--Section 2 of such Act is amended
in the table of contents by inserting after the item relating
to section 116 the following new item:

``117. Fatherhood program.''.

SEC. 120. STATE OPTION TO MAKE TANF PROGRAMS MANDATORY
PARTNERS WITH ONE-STOP EMPLOYMENT TRAINING
CENTERS.

Section 408 of the Social Security Act (42 U.S.C. 608) is
amended by adding at the end the following:
``(h) State Option to Make TANF Programs Mandatory Partners
With One-Stop Employment Training Centers.--For purposes of
section 121(b) of the Workforce Investment Act of 1998, a
State program funded under part A of title IV of the Social
Security Act shall be considered a program referred to in
paragraph (1)(B) of such section, unless, after the date of
the enactment of

[[Page S273]]

this subsection, the Governor of the State notifies the
Secretaries of Health and Human Services and Labor in writing
of the decision of the Governor not to make the State program
a mandatory partner.''.

SEC. 121. SENSE OF THE CONGRESS.

It is the sense of the Congress that a State welfare-to-
work program should include a mentoring program.

SEC. 122. EXTENSION THROUGH FISCAL YEAR 2005.

(a) In General.--Except as otherwise provided in this Act
and the amendments made by this Act, activities authorized by
part A of title IV of the Social Security Act, and by
sections 429A, 1108(b), and 1130(a) of such Act, shall
continue through September 30, 2005, in the manner authorized
for fiscal year 2004, and out of any money in the Treasury of
the United States not otherwise appropriated, there are
hereby appropriated such sums as may be necessary for such
purpose. Grants and payments may be made pursuant to this
authority through the fourth quarter of fiscal year 2005 at
the level provided for such activities through the fourth
quarter of fiscal year 2004, except that in the case of
section 403(a)(4) of such Act, the level shall be
$100,000,000.
(b) Effective Date.--Subsection (a) shall take effect on
the date of the enactment of this Act.

TITLE II--CHILD CARE

SEC. 201. SHORT TITLE.

This title may be cited as the ``Caring for Children Act of
2005''.

SEC. 202. GOALS.

(a) Goals.--Section 658A(b) of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is
amended--
(1) in paragraph (3) by striking ``encourage'' and
inserting ``assist'',
(2) by amending paragraph (4) to read as follows:
``(4) to assist States to provide child care to low-income
parents;'',
(3) by redesignating paragraph (5) as paragraph (7), and
(4) by inserting after paragraph (4) the following:
``(5) to encourage States to improve the quality of child
care available to families;
``(6) to promote school readiness by encouraging the
exposure of young children in child care to nurturing
environments and developmentally-appropriate activities,
including activities to foster early cognitive and literacy
development; and''.
(b) Conforming Amendment.--Section 658E(c)(3)(B) of the
Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858c(c)(3)(B)) is amended by striking ``through (5)'' and
inserting ``through (7)''.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

Section 658B of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858) is amended--
(1) by striking ``is'' and inserting ``are'', and
(2) by striking ``$1,000,000,000 for each of the fiscal
years 1996 through 2002'' and inserting ``$2,100,000,000 for
fiscal year 2005, $2,300,000,000 for fiscal year 2006,
$2,500,000,000 for fiscal year 2007, $2,700,000,000 for
fiscal year 2008, $2,900,000,000 for fiscal year 2009, and
$3,100,000,000 for fiscal year 2010''.

SEC. 204. APPLICATION AND PLAN.

Section 658E(c)(2) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858C(c)(2)) is amended--
(1) by amending subparagraph (D) to read as follows:
``(D) Consumer and child care provider education
information.--Certify that the State will collect and
disseminate, through resource and referral services and other
means as determined by the State, to parents of eligible
children, child care providers, and the general public,
information regarding--
``(i) the promotion of informed child care choices,
including information about the quality and availability of
child care services;
``(ii) research and best practices on children's
development, including early cognitive development;
``(iii) the availability of assistance to obtain child care
services; and
``(iv) other programs for which families that receive child
care services for which financial assistance is provided
under this subchapter may be eligible, including the food
stamp program, the WIC program under section 17 of the Child
Nutrition Act of 1966, the child and adult care food program
under section 17 of the Richard B. Russell National School
Lunch Act, and the medicaid and SCHIP programs under titles
XIX and XXI of the Social Security Act.'', and
(2) by inserting after subparagraph (H) the following:
``(I) Coordination with other early child care services and
early childhood education programs.--Demonstrate how the
State is coordinating child care services provided under this
subchapter with Head Start, Early Reading First, Even Start,
Ready-To-Learn Television, State pre-kindergarten programs,
and other early childhood education programs to expand
accessibility to and continuity of care and early education
without displacing services provided by the current early
care and education delivery system.
``(J) Public-private partnerships.--Demonstrate how the
State encourages partnerships with private and other public
entities to leverage existing service delivery systems of
early childhood education and increase the supply and quality
of child care services.
``(K) Child care service quality.--
``(i) Certification.--For each fiscal year after fiscal
year 2006, certify that during the then preceding fiscal year
the State was in compliance with section 658G and describe
how funds were used to comply with such section during such
preceding fiscal year.
``(ii) Strategy.--For each fiscal year after fiscal year
2006, contain an outline of the strategy the State will
implement during such fiscal year for which the State plan is
submitted, to address the quality of child care services in
the State available to low-income parents from eligible child
care providers, and include in such strategy--

``(I) a statement specifying how the State will address the
activities described in paragraphs (1), (2), and (3) of
section 658G;
``(II) a description of quantifiable, objective measures
for evaluating the quality of child care services separately
with respect to the activities listed in each of such
paragraphs that the State will use to evaluate its progress
in improving the quality of such child care services;
``(III) a list of State-developed child care service
quality targets for such fiscal year quantified on the basis
of such measures; and
``(IV) for each fiscal year after fiscal year 2006, a
report on the progress made to achieve such targets during
the then preceding fiscal year.

``(iii) Rule of construction.--Nothing in this subparagraph
shall be construed to require that the State apply measures
for evaluating quality to specific types of child care
providers.
``(L) Access to care for certain populations.--Demonstrate
how the State is addressing the child care needs of parents
eligible for child care services for which financial
assistance is provided under this subchapter who have
children with special needs, work nontraditional hours, or
require child care services for infants or toddlers.''.

SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

Section 658G of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE
SERVICES.

``A State that receives funds to carry out this subchapter
for a fiscal year, shall use not less than 6 percent of the
amount of such funds for activities provided through resource
and referral services or other means, that are designed to
improve the quality of child care services in the State
available to low-income parents from eligible child care
providers. Such activities include--
``(1) programs that provide training, education, and other
professional development activities to enhance the skills of
the child care workforce, including training opportunities
for caregivers in informal care settings;
``(2) activities within child care settings to enhance
early learning for young children, to promote early literacy,
and to foster school readiness;
``(3) initiatives to increase the retention and
compensation of child care providers, including tiered
reimbursement rates for providers that meet quality standards
as defined by the State; or
``(4) other activities deemed by the State to improve the
quality of child care services provided in such State.''.

SEC. 206. REPORT BY SECRETARY.

Section 658L of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858j) is amended to read as follows:

``SEC. 658L. REPORT BY SECRETARY.

``(a) Report Required.--Not later than October 1, 2007, and
biennially thereafter, the Secretary shall prepare and submit
to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Health, Education,
Labor and Pensions of the Senate a report that contains the
following:
``(1) A summary and analysis of the data and information
provided to the Secretary in the State reports submitted
under section 658K.
``(2) Aggregated statistics on the supply of, demand for,
and quality of child care, early education, and non-school-
hours programs.
``(3) An assessment, and where appropriate, recommendations
for the Congress concerning efforts that should be undertaken
to improve the access of the public to quality and affordable
child care in the United States.
``(b) Collection of Information.--The Secretary may utilize
the national child care data system available through
resource and referral organizations at the local, State, and
national level to collect the information required by
subsection (a)(2).''

SEC. 207. DEFINITIONS.

Section 658P(4)(B) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858N(4)(B)) is amended by
striking ``85 percent of the State median income'' and
inserting ``income levels as established by the State,
prioritized by need,''.

SEC. 208. ENTITLEMENT FUNDING.

Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F)
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) $2,917,000,000 for each of fiscal years 2006 through
2010.''.

[[Page S274]]

TITLE III--CHILD SUPPORT

SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS THROUGH OF
CHILD SUPPORT PAYMENTS TO FAMILIES RECEIVING
TANF.

(a) In General.--Section 457(a) (42 U.S.C. 657(a)) is
amended--
(1) in paragraph (1)(A), by inserting ``subject to
paragraph (7)'' before the semicolon; and
(2) by adding at the end the following:
``(7) Federal matching funds for limited pass through of
child support payments to families receiving tanf.--
Notwithstanding paragraph (1), a State shall not be required
to pay to the Federal Government the Federal share of an
amount collected during a month on behalf of a family that is
a recipient of assistance under the State program funded
under part A, to the extent that--
``(A) the State distributes the amount to the family;
``(B) the total of the amounts so distributed to the family
during the month--
``(i) exceeds the amount (if any) that, as of December 31,
2001, was required under State law to be distributed to a
family under paragraph (1)(B); and
``(ii) does not exceed the greater of--

``(I) $100; or
``(II) $50 plus the amount described in clause (i); and

``(C) the amount is disregarded in determining the amount
and type of assistance provided to the family under the State
program funded under part A.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply to amounts distributed on or after October 1,
2007.

SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD SUPPORT
PAYMENTS TO FAMILIES THAT FORMERLY RECEIVED
TANF.

(a) In General.--Section 457(a) (42 U.S.C. 657(a)), as
amended by section 301(a) of this Act, is amended--
(1) in paragraph (2)(B), in the matter preceding clause
(i), by inserting ``, except as provided in paragraph (8),''
after ``shall''; and
(2) by adding at the end the following:
``(8) State option to pass through all child support
payments to families that formerly received tanf.--In lieu of
applying paragraph (2) to any family described in paragraph
(2), a State may distribute to the family any amount
collected during a month on behalf of the family.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply to amounts distributed on or after October 1,
2007.

SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT
ORDERS FOR FAMILIES RECEIVING TANF.

(a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C.
666(a)(10)(A)(i)) is amended--
(1) by striking ``parent, or,'' and inserting ``parent
or''; and
(2) by striking ``upon the request of the State agency
under the State plan or of either parent,''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on October 1, 2007.

SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUPPORT
COLLECTION FOR FAMILY THAT HAS NEVER RECEIVED
TANF.

(a) In General.--Section 454(6)(B) (42 U.S.C. 654(6)(B)) is
amended--
(1) by inserting ``(i)'' after ``(B)'';
(2) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively;
(3) by adding ``and'' after the semicolon; and
(4) by adding after and below the end the following new
clause:
``(ii) in the case of an individual who has never received
assistance under a State program funded under part A and for
whom the State has collected at least $500 of support, the
State shall impose an annual fee of $25 for each case in
which services are furnished, which shall be retained by the
State from support collected on behalf of the individual (but
not from the 1st $500 so collected), paid by the individual
applying for the services, recovered from the absent parent,
or paid by the State out of its own funds (the payment of
which from State funds shall not be considered as an
administrative cost of the State for the operation of the
plan, and such fees shall be considered income to the
program);''.
(b) Conforming Amendment.--Section 457(a)(3) (42 U.S.C.
657(a)(3)) is amended to read as follows:
``(3) Families that never received assistance.--In the case
of any other family, the State shall distribute to the family
the portion of the amount so collected that remains after
withholding any fee pursuant to section 454(6)(B)(ii).''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2006.

SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

Not later than 6 months after the date of the enactment of
this Act, the Secretary of Health and Human Services shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report on the procedures that the States use generally to
locate custodial parents for whom child support has been
collected but not yet distributed. The report shall include
an estimate of the total amount of undistributed child
support and the average length of time it takes undistributed
child support to be distributed. To the extent the Secretary
deems appropriate, the Secretary shall include in the report
recommendations as to whether additional procedures should be
established at the State or Federal level to expedite the
payment of undistributed child support.

SEC. 306. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE
TRIGGERING PASSPORT DENIAL.

(a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) is
amended by striking ``$5,000'' and inserting ``$2,500''.
(b) Conforming Amendment.--Section 454(31) (42 U.S.C.
654(31)) is amended by striking ``$5,000'' and inserting
``$2,500''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 2006.

SEC. 307. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT
PAST-DUE CHILD SUPPORT ON BEHALF OF CHILDREN
WHO ARE NOT MINORS.

(a) In General.--Section 464 (42 U.S.C. 664) is amended--
(1) in subsection (a)(2)(A), by striking ``(as that term is
defined for purposes of this paragraph under subsection
(c))''; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``(1) Except as provided in paragraph (2),
as used in'' and inserting ``In''; and
(ii) by inserting ``(whether or not a minor)'' after ``a
child'' each place it appears; and
(B) by striking paragraphs (2) and (3).
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on October 1, 2007.

SEC. 308. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR
SERVICE-CONNECTED DISABILITIES IN ORDER TO
ENFORCE CHILD SUPPORT OBLIGATIONS.

(a) In General.--Section 459(h) (42 U.S.C. 659(h)) is
amended--
(1) in paragraph (1)(A)(ii)(V), by striking all that
follows ``Armed Forces'' and inserting a semicolon; and
(2) by adding at the end the following:
``(3) Limitations with respect to compensation paid to
veterans for service-connected disabilities.--Notwithstanding
any other provision of this section:
``(A) Compensation described in paragraph (1)(A)(ii)(V)
shall not be subject to withholding pursuant to this
section--
``(i) for payment of alimony; or
``(ii) for payment of child support if the individual is
fewer than 60 days in arrears in payment of the support.
``(B) Not more than 50 percent of any payment of
compensation described in paragraph (1)(A)(ii)(V) may be
withheld pursuant to this section.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on October 1, 2007.

SEC. 309. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.

(a) In General.--Section 3716(h)(3) of title 31, United
States Code, is amended to read as follows:
``(3) In applying this subsection with respect to any debt
owed to a State, other than past due support being enforced
by the State, subsection (c)(3)(A) shall not apply.
Subsection (c)(3)(A) shall apply with respect to past due
support being enforced by the State notwithstanding any other
provision of law, including sections 207 and 1631(d)(1) of
the Social Security Act (42 U.S.C. 407 and 1383(d)(1)),
section 413(b) of Public law 91-173 (30 U.S.C. 923(b)), and
section 14 of the Act of August 29, 1935 (45 U.S.C. 231m).''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on October 1, 2006.

SEC. 310. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.

Section 452(j) (42 U.S.C. 652(j)) is amended by inserting
``or the amount appropriated under this paragraph for fiscal
year 2002, whichever is greater,'' before ``which shall be
available''.

SEC. 311. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE
FUNDING.

Section 453(o) (42 U.S.C. 653(o)) is amended--
(1) in the 1st sentence, by inserting ``or the amount
appropriated under this paragraph for fiscal year 2002,
whichever is greater,'' before ``which shall be available'';
and
(2) in the 2nd sentence, by striking ``for each of fiscal
years 1997 through 2001''.

TITLE IV--CHILD WELFARE

SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION
PROJECTS.

Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by
striking ``2002'' and inserting ``2010''.

SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS.

Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by
striking ``not more than 10''.

SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF STATES THAT
MAY BE GRANTED WAIVERS TO CONDUCT DEMONSTRATION
PROJECTS ON SAME TOPIC.

Section 1130 (42 U.S.C. 1320a-9) is amended by adding at
the end the following:
``(h) No Limit on Number of States That May Be Granted
Waivers to Conduct Same or Similar Demonstration Projects.--
The Secretary shall not refuse to grant a waiver to a State
under this section on the grounds that a purpose of the
waiver or of the demonstration project for which the waiver
is necessary would be the same as or similar to a purpose of
another waiver or project that is or may be conducted under
this section.''.

[[Page S275]]

SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS THAT
MAY BE GRANTED TO A SINGLE STATE FOR
DEMONSTRATION PROJECTS.

Section 1130 (42 U.S.C. 1320a-9) is further amended by
adding at the end the following:
``(i) No Limit on Number of Waivers Granted to, or
Demonstration Projects That May Be Conducted by, a Single
State.--The Secretary shall not impose any limit on the
number of waivers that may be granted to a State, or the
number of demonstration projects that a State may be
authorized to conduct, under this section.''.

SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS
TO AND EXTENSIONS OF DEMONSTRATION PROJECTS
REQUIRING WAIVERS.

Section 1130 (42 U.S.C. 1320a-9) is further amended by
adding at the end the following:
``(j) Streamlined Process for Consideration of Amendments
and Extensions.--The Secretary shall develop a streamlined
process for consideration of amendments and extensions
proposed by States to demonstration projects conducted under
this section.''.

SEC. 406. AVAILABILITY OF REPORTS.

Section 1130 (42 U.S.C. 1320a-9) is further amended by
adding at the end the following:
``(k) Availability of Reports.--The Secretary shall make
available to any State or other interested party any report
provided to the Secretary under subsection (f)(2), and any
evaluation or report made by the Secretary with respect to a
demonstration project conducted under this section, with a
focus on information that may promote best practices and
program improvements.''.

SEC. 407. TECHNICAL CORRECTION.

Section 1130(b)(1) (42 U.S.C. 1320a-9(b)(1)) is amended by
striking ``422(b)(9)'' and inserting ``422(b)(10)''.

TITLE V--SUPPLEMENTAL SECURITY INCOME

SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY
DETERMINATIONS.

Section 1633 (42 U.S.C. 1383b) is amended by adding at the
end the following:
``(e)(1) The Commissioner of Social Security shall review
determinations, made by State agencies pursuant to subsection
(a) in connection with applications for benefits under this
title on the basis of blindness or disability, that
individuals who have attained 18 years of age are blind or
disabled as of a specified onset date. The Commissioner of
Social Security shall review such a determination before any
action is taken to implement the determination.
``(2)(A) In carrying out paragraph (1), the Commissioner of
Social Security shall review--
``(i) at least 20 percent of all determinations referred to
in paragraph (1) that are made in fiscal year 2006;
``(ii) at least 40 percent of all such determinations that
are made in fiscal year 2007; and
``(iii) at least 50 percent of all such determinations that
are made in fiscal year 2008 or thereafter.
``(B) In carrying out subparagraph (A), the Commissioner of
Social Security shall, to the extent feasible, select for
review the determinations which the Commissioner of Social
Security identifies as being the most likely to be
incorrect.''.

TITLE VI--STATE AND LOCAL FLEXIBILITY

SEC. 601. PROGRAM COORDINATION DEMONSTRATION PROJECTS.

(a) Purpose.--The purpose of this section is to establish a
program of demonstration projects in a State or portion of a
State to coordinate multiple public assistance, workforce
development, and other programs, for the purpose of
supporting working individuals and families, helping families
escape welfare dependency, promoting child well-being, or
helping build stronger families, using innovative approaches
to strengthen service systems and provide more coordinated
and effective service delivery.
(b) Definitions.--In this section:
(1) Administering secretary.--The term ``administering
Secretary'' means, with respect to a qualified program, the
head of the Federal agency responsible for administering the
program.
(2) Qualified program.--The term ``qualified program''
means--
(A) a program under part A of title IV of the Social
Security Act;
(B) the program under title XX of such Act;
(C) activities funded under title I of the Workforce
Investment Act of 1998, except subtitle C of such title;
(D) a demonstration project authorized under section 505 of
the Family Support Act of 1988;
(E) activities funded under the Wagner-Peyser Act;
(F) activities funded under the Adult Education and Family
Literacy Act;
(G) activities funded under the Child Care and Development
Block Grant Act of 1990;
(H) activities funded under the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.), except that such term shall
not include--
(i) any program for rental assistance under section 8 of
such Act (42 U.S.C. 1437f); and
(ii) the program under section 7 of such Act (42 U.S.C.
1437e) for designating public housing for occupancy by
certain populations;
(I) activities funded under title I, II, III, or IV of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et
seq.); or
(J) the food stamp program as defined in section 3(h) of
the Food Stamp Act of 1977 (7 U.S.C. 2012(h)).
(c) Application Requirements.--The head of a State entity
or of a sub-State entity administering 2 or more qualified
programs proposed to be included in a demonstration project
under this section shall (or, if the project is proposed to
include qualified programs administered by 2 or more such
entities, the heads of the administering entities (each of
whom shall be considered an applicant for purposes of this
section) shall jointly) submit to the administering Secretary
of each such program an application that contains the
following:
(1) Programs included.--A statement identifying each
qualified program to be included in the project, and
describing how the purposes of each such program will be
achieved by the project.
(2) Population served.--A statement identifying the
population to be served by the project and specifying the
eligibility criteria to be used.
(3) Description and justification.--A detailed description
of the project, including--
(A) a description of how the project is expected to improve
or enhance achievement of the purposes of the programs to be
included in the project, from the standpoint of quality, of
cost-effectiveness, or of both; and
(B) a description of the performance objectives for the
project, including any proposed modifications to the
performance measures and reporting requirements used in the
programs.
(4) Waivers requested.--A description of the statutory and
regulatory requirements with respect to which a waiver is
requested in order to carry out the project, and a
justification of the need for each such waiver.
(5) Cost neutrality.--Such information and assurances as
necessary to establish to the satisfaction of the
administering Secretary, in consultation with the Director of
the Office of Management and Budget, that the proposed
project is reasonably expected to meet the applicable cost
neutrality requirements of subsection (d)(4).
(6) Evaluation and reports.--An assurance that the
applicant will conduct ongoing and final evaluations of the
project, and make interim and final reports to the
administering Secretary, at such times and in such manner as
the administering Secretary may require.
(7) Public housing agency plan.--In the case of an
application proposing a demonstration project that includes
activities referred to in subsection (b)(2)(H) of this
section--
(A) a certification that the applicable annual public
housing agency plan of any agency affected by the project
that is approved under section 5A of the United States
Housing Act of 1937 (42 U.S.C. 1437c-1) by the Secretary
includes the information specified in paragraphs (1) through
(4) of this subsection; and
(B) any resident advisory board recommendations, and other
information, relating to the project that, pursuant to
section 5A(e)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437c-1(e)(2), is required to be included in the
public housing agency plan of any public housing agency
affected by the project.
(8) Other information and assurances.--Such other
information and assurances as the administering Secretary may
require.
(d) Approval of Applications.--
(1) In general.--The administering Secretary with respect
to a qualified program that is identified in an application
submitted pursuant to subsection (c) may approve the
application and, except as provided in paragraph (2), waive
any requirement applicable to the program, to the extent
consistent with this section and necessary and appropriate
for the conduct of the demonstration project proposed in the
application, if the administering Secretary determines that
the project--
(A) has a reasonable likelihood of achieving the objectives
of the programs to be included in the project;
(B) may reasonably be expected to meet the applicable cost
neutrality requirements of paragraph (4), as determined by
the Director of the Office of Management and Budget; and
(C) includes the coordination of 2 or more qualified
programs.
(2) Provisions excluded from waiver authority.--A waiver
shall not be granted under paragraph (1)--
(A) with respect to any provision of law relating to--
(i) civil rights or prohibition of discrimination;
(ii) purposes or goals of any program;
(iii) maintenance of effort requirements;
(iv) health or safety;
(v) labor standards under the Fair Labor Standards Act of
1938; or
(vi) environmental protection;
(B) with respect to section 241(a) of the Adult Education
and Family Literacy Act;
(C) in the case of a program under the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.), with respect to
any requirement under section 5A of such Act (42 U.S.C.
1437c-1; relating to public housing agency plans and resident
advisory boards);
(D) in the case of a program under the Workforce Investment
Act, with respect to any requirement the waiver of which
would violate section 189(i)(4)(A)(i) of such Act;
(E) in the case of the food stamp program (as defined in
section 3(h) of the Food Stamp Act of 1977 (7 U.S.C.
2012(h)), with respect to any requirement under--

[[Page S276]]

(i) section 6 (if waiving a requirement under such section
would have the effect of expanding eligibility for the
program), 7(b) or 16(c) of the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.); or
(ii) title IV of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1601 et
seq.);
(F) with respect to any requirement that a State pass
through to a sub-State entity part or all of an amount paid
to the State;
(G) if the waiver would waive any funding restriction or
limitation provided in an appropriations Act, or would have
the effect of transferring appropriated funds from 1
appropriations account to another; or
(H) except as otherwise provided by statute, if the waiver
would waive any funding restriction applicable to a program
authorized under an Act which is not an appropriations Act
(but not including program requirements such as application
procedures, performance standards, reporting requirements, or
eligibility standards), or would have the effect of
transferring funds from a program for which there is direct
spending (as defined in section 250(c)(8) of the Balanced
Budget and Emergency Deficit Control Act of 1985) to another
program.
(3) Agreement of each administering secretary required.--
(A) In general.--An applicant may not conduct a
demonstration project under this section unless each
administering Secretary with respect to any program proposed
to be included in the project has approved the application to
conduct the project.
(B) Agreement with respect to funding and implementation.--
Before approving an application to conduct a demonstration
project under this section, an administering Secretary shall
have in place an agreement with the applicant with respect to
the payment of funds and responsibilities required of the
administering Secretary with respect to the project.
(4) Cost-neutrality requirement.--
(A) General rule.--Notwithstanding any other provision of
law (except subparagraph (B)), the total of the amounts that
may be paid by the Federal Government for a fiscal year with
respect to the programs in the State in which an entity
conducting a demonstration project under this section is
located that are affected by the project shall not exceed the
estimated total amount that the Federal Government would have
paid for the fiscal year with respect to the programs if the
project had not been conducted, as determined by the Director
of the Office of Management and Budget.
(B) Special rule.--If an applicant submits to the Director
of the Office of Management and Budget a request to apply the
rules of this subparagraph to the programs in the State in
which the applicant is located that are affected by a
demonstration project proposed in an application submitted by
the applicant pursuant to this section, during such period of
not more than 5 consecutive fiscal years in which the project
is in effect, and the Director determines, on the basis of
supporting information provided by the applicant, to grant
the request, then, notwithstanding any other provision of
law, the total of the amounts that may be paid by the Federal
Government for the period with respect to the programs shall
not exceed the estimated total amount that the Federal
Government would have paid for the period with respect to the
programs if the project had not been conducted.
(5) 90-day approval deadline.--
(A) In general.--If an administering Secretary receives an
application to conduct a demonstration project under this
section and does not disapprove the application within 90
days after the receipt, then--
(i) the administering Secretary is deemed to have approved
the application for such period as is requested in the
application, except to the extent inconsistent with
subsection (e); and
(ii) any waiver requested in the application which applies
to a qualified program that is identified in the application
and is administered by the administering Secretary is deemed
to be granted, except to the extent inconsistent with
paragraph (2) or (4) of this subsection.
(B) Deadline extended if additional information is
sought.--The 90-day period referred to in subparagraph (A)
shall not include any period that begins with the date the
Secretary requests the applicant to provide additional
information with respect to the application and ends with the
date the additional information is provided.
(e) Duration of Projects.--A demonstration project under
this section may be approved for a term of not more than 5
years.
(f) Reports to Congress.--
(1) Report on disposition of applications.--Within 90 days
after an administering Secretary receives an application
submitted pursuant to this section, the administering
Secretary shall submit to each Committee of the Congress
which has jurisdiction over a qualified program identified in
the application notice of the receipt, a description of the
decision of the administering Secretary with respect to the
application, and the reasons for approving or disapproving
the application.
(2) Reports on projects.--Each administering Secretary
shall provide annually to the Congress a report concerning
demonstration projects approved under this section,
including--
(A) the projects approved for each applicant;
(B) the number of waivers granted under this section, and
the specific statutory provisions waived;
(C) how well each project for which a waiver is granted is
improving or enhancing program achievement from the
standpoint of quality, cost-effectiveness, or both;
(D) how well each project for which a waiver is granted is
meeting the performance objectives specified in subsection
(c)(3)(B);
(E) how each project for which a waiver is granted is
conforming with the cost-neutrality requirements of
subsection (d)(4); and
(F) to the extent the administering Secretary deems
appropriate, recommendations for modification of programs
based on outcomes of the projects.
(g) Amendment to United States Housing Act of 1937.--
Section 5A(d) of the United States Housing Act of 1937 (42
U.S.C. 1437c-1(d)) is amended--
(1) by redesignating paragraph (18) as paragraph (19); and
(2) by inserting after paragraph (17) the following new
paragraph:
``(18) Program coordination demonstration projects.--In the
case of an agency that administers an activity referred to in
section 601(b)(2)(H) of the Personal Responsibility, Work,
and Family Promotion Act of 2005 that, during such fiscal
year, will be included in a demonstration project under
section 601 of such Act, the information that is required to
be included in the application for the project pursuant to
paragraphs (1) through (4) of section 601(b) of such Act.''.

SEC. 602. STATE FOOD ASSISTANCE BLOCK GRANT DEMONSTRATION
PROJECT.

The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is
amended by adding at the end the following:

``SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEMONSTRATION
PROJECT.

``(a) Establishment.--The Secretary shall establish a
program to make grants to States in accordance with this
section to provide--
``(1) food assistance to needy individuals and families
residing in the State;
``(2) funds to operate an employment and training program
under subsection (g) for needy individuals under the program;
and
``(3) funds for administrative costs incurred in providing
the assistance.
``(b) Election.--
``(1) In general.--A State may elect to participate in the
program established under subsection (a).
``(2) Election revocable.--A State that elects to
participate in the program established under subsection (a)
may subsequently reverse the election of the State only once
thereafter. Following the reversal, the State shall only be
eligible to participate in the food stamp program in
accordance with the other sections of this Act and shall not
receive a block grant under this section.
``(3) Program exclusive.--A State that is participating in
the program established under subsection (a) shall not be
subject to, or receive any benefit under, this Act except as
provided in this section.
``(c) Lead Agency.--
``(1) Designation.--A State desiring to participate in the
program established under subsection (a) shall designate, in
an application submitted to the Secretary under subsection
(d)(1), an appropriate State agency that complies with
paragraph (2) to act as the lead agency for the State.
``(2) Duties.--The lead agency shall--
``(A) administer, either directly, through other State
agencies, or through local agencies, the assistance received
under this section by the State;
``(B) develop the State plan to be submitted to the
Secretary under subsection (d)(1); and
``(C) coordinate the provision of food assistance under
this section with other Federal, State, and local programs.
``(d) Application and Plan.--
``(1) Application.--To be eligible to receive assistance
under this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary shall by
regulation require, including--
``(A) an assurance that the State will comply with the
requirements of this section;
``(B) a State plan that meets the requirements of paragraph
(2); and
``(C) an assurance that the State will comply with the
requirements of the State plan under paragraph (2).
``(2) Requirements of plan.--
``(A) Lead agency.--The State plan shall identify the lead
agency.
``(B) Use of block grant funds.--The State plan shall
provide that the State shall use the amounts provided to the
State for each fiscal year under this section--
``(i) to provide food assistance to needy individuals and
families residing in the State, other than residents of
institutions who are ineligible for food stamps under section
3(i);
``(ii) to administer an employment and training program
under subsection (g) for needy individuals under the program
and to provide reimbursements to needy individuals and
families as would be allowed under section 16(h)(3); and
``(iii) to pay administrative costs incurred in providing
the assistance.
``(C) Assistance for entire state.--The State plan shall
provide that benefits under this section shall be available
throughout the entire State.
``(D) Notice and hearings.--The State plan shall provide
that an individual or family who applies for, or receives,
assistance

[[Page S277]]

under this section shall be provided with notice of, and an
opportunity for a hearing on, any action under this section
that adversely affects the individual or family.
``(E) Other assistance.--
``(i) Coordination.--The State plan may coordinate
assistance received under this section with assistance
provided under the State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.).
``(ii) Penalties.--If an individual or family is penalized
for violating part A of title IV of the Act, the State plan
may reduce the amount of assistance provided under this
section or otherwise penalize the individual or family.
``(F) Eligibility limitations.--The State plan shall
describe the income and resource eligibility limitations that
are established for the receipt of assistance under this
section.
``(G) Receiving benefits in more than 1 jurisdiction.--The
State plan shall establish a system to verify and otherwise
ensure that no individual or family shall receive benefits
under this section in more than 1 jurisdiction within the
State.
``(H) Privacy.--The State plan shall provide for
safeguarding and restricting the use and disclosure of
information about any individual or family receiving
assistance under this section.
``(I) Other information.--The State plan shall contain such
other information as may be required by the Secretary.
``(3) Approval of application and plan.--During fiscal
years 2006 through 2010, the Secretary may approve the
applications and State plans that satisfy the requirements of
this section of not more than 5 States for a term of not more
than 5 years.
``(e) Construction of Facilities.--No funds made available
under this section shall be expended for the purchase or
improvement of land, or for the purchase, construction, or
permanent improvement of any building or facility.
``(f) Benefits for Aliens.--No individual shall be eligible
to receive benefits under a State plan approved under
subsection (d)(3) if the individual is not eligible to
participate in the food stamp program under title IV of the
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1601 et seq.).
``(g) Employment and Training.--Each State shall implement
an employment and training program for needy individuals
under the program.
``(h) Enforcement.--
``(1) Review of compliance with state plan.--The Secretary
shall review and monitor State compliance with this section
and the State plan approved under subsection (d)(3).
``(2) Noncompliance.--
``(A) In general.--If the Secretary, after reasonable
notice to a State and opportunity for a hearing, finds that--
``(i) there has been a failure by the State to comply
substantially with any provision or requirement set forth in
the State plan approved under subsection (d)(3); or
``(ii) in the operation of any program or activity for
which assistance is provided under this section, there is a
failure by the State to comply substantially with any
provision of this section, the Secretary shall notify the
State of the finding and that no further payments will be
made to the State under this section (or, in the case of
noncompliance in the operation of a program or activity, that
no further payments to the State will be made with respect to
the program or activity) until the Secretary is satisfied
that there is no longer any failure to comply or that the
noncompliance will be promptly corrected.
``(B) Other sanctions.--In the case of a finding of
noncompliance made pursuant to subparagraph (A), the
Secretary may, in addition to, or in lieu of, imposing the
sanctions described in subparagraph (A), impose other
appropriate sanctions, including recoupment of money
improperly expended for purposes prohibited or not authorized
by this section and disqualification from the receipt of
financial assistance under this section.
``(C) Notice.--The notice required under subparagraph (A)
shall include a specific identification of any additional
sanction being imposed under subparagraph (B).
``(3) Issuance of regulations.--The Secretary shall
establish by regulation procedures for--
``(A) receiving, processing, and determining the validity
of complaints concerning any failure of a State to comply
with the State plan or any requirement of this section; and
``(B) imposing sanctions under this section.
``(i) Payments.--
``(1) In general.--For each fiscal year, the Secretary
shall pay to a State that has an application approved by the
Secretary under subsection (d)(3) an amount that is equal to
the allotment of the State under subsection (l)(2) for the
fiscal year.
``(2) Method of payment.--The Secretary shall make payments
to a State for a fiscal year under this section by issuing 1
or more letters of credit for the fiscal year, with necessary
adjustments on account of overpayments or underpayments, as
determined by the Secretary.
``(3) Spending of funds by state.--
``(A) In general.--Except as provided in subparagraph (B),
payments to a State from an allotment under subsection (l)(2)
for a fiscal year may be expended by the State only in the
fiscal year.
``(B) Carryover.--The State may reserve up to 10 percent of
an allotment under subsection (l)(2) for a fiscal year to
provide assistance under this section in subsequent fiscal
years, except that the reserved funds may not exceed 30
percent of the total allotment received under this section
for a fiscal year.
``(4) Provision of food assistance.--A State may provide
food assistance under this section in any manner determined
appropriate by the State to provide food assistance to needy
individuals and families in the State, such as electronic
benefits transfer limited to food purchases, coupons limited
to food purchases, or direct provision of commodities.
``(5) Definition of food assistance.--In this section, the
term `food assistance' means assistance that may be used only
to obtain food, as defined in section 3(g).
``(j) Audits.--
``(1) Requirement.--After the close of each fiscal year, a
State shall arrange for an audit of the expenditures of the
State during the program period from amounts received under
this section.
``(2) Independent auditor.--An audit under this section
shall be conducted by an entity that is independent of any
agency administering activities that receive assistance under
this section and be in accordance with generally accepted
auditing principles.
``(3) Payment accuracy.--Each annual audit under this
section shall include an audit of payment accuracy under this
section that shall be based on a statistically valid sample
of the caseload in the State.
``(4) Submission.--Not later than 30 days after the
completion of an audit under this section, the State shall
submit a copy of the audit to the legislature of the State
and to the Secretary.
``(5) Repayment of amounts.--Each State shall repay to the
United States any amounts determined through an audit under
this section to have not been expended in accordance with
this section or to have not been expended in accordance with
the State plan, or the Secretary may offset the amounts
against any other amount paid to the State under this
section.
``(k) Nondiscrimination.--
``(1) In general.--The Secretary shall not provide
financial assistance for any program, project, or activity
under this section if any person with responsibilities for
the operation of the program, project, or activity
discriminates with respect to the program, project, or
activity because of race, religion, color, national origin,
sex, or disability.
``(2) Enforcement.--The powers, remedies, and procedures
set forth in title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.) may be used by the Secretary to enforce
paragraph (1).
``(l) Allotments.--
``(1) Definition of state.--In this section, the term
'State' means each of the 50 States, the District of
Columbia, Guam, and the Virgin Islands of the United States.
``(2) State allotment.--
``(A) In general.--Except as provided in subparagraph (B),
from the amounts made available under section 18 of this Act
for each fiscal year, the Secretary shall allot to each State
participating in the program established under subsection (a)
an amount that is equal to the sum of--
``(i) the greater of, as determined by the Secretary--

``(I) the total dollar value of all benefits issued under
the food stamp program established under this Act by the
State during fiscal year 2005; or
``(II) the average per fiscal year of the total dollar
value of all benefits issued under the food stamp program by
the State during each of fiscal years 2003 through 2005; and

``(ii) the greater of, as determined by the Secretary--

``(I) the total amount received by the State for
administrative costs and the employment and training program
under subsections (a) and (h), respectively, of section 16 of
this Act for fiscal year 2005; or
``(II) the average per fiscal year of the total amount
received by the State for administrative costs and the
employment and training program under subsections (a) and
(h), respectively, of section 16 of this Act for each of
fiscal years 2003 through 2005.

``(B) Insufficient funds.--If the Secretary finds that the
total amount of allotments to which States would otherwise be
entitled for a fiscal year under subparagraph (A) will exceed
the amount of funds that will be made available to provide
the allotments for the fiscal year, the Secretary shall
reduce the allotments made to States under this subsection,
on a pro rata basis, to the extent necessary to allot under
this subsection a total amount that is equal to the funds
that will be made available.''.

TITLE VII--ABSTINENCE EDUCATION

SEC. 701. EXTENSION OF ABSTINENCE EDUCATION PROGRAM.

(a) Extension of Appropriations.--
(1) In general.--Section 510(d) (42 U.S.C. 710(d)) is
amended in the first sentence by inserting before the period
the following: ``and for each of the fiscal years 2006
through 2010''.
(2) Additional funds for fiscal year 2005.--
(A) Additional funds.--Activities authorized by section 510
of the Social Security Act shall continue through September
30, 2005, in

[[Page S278]]

the manner authorized for fiscal year 2004, and out of any
money in the Treasury of the United States not otherwise
appropriated, there are hereby appropriated such sums as may
be necessary for such purpose, in addition to other amounts
appropriated for such purpose for fiscal year 2005. Grants
and payments may be made pursuant to this authority through
the fourth quarter of fiscal year 2005 at the level provided
for such activities through the fourth quarter of fiscal year
2004.
(B) Effective date.--Subparagraph (A) takes effect upon the
date of the enactment of this Act.
(b) Allotment of Funds.--Section 510(a) (42 U.S.C. 710(a))
is amended--
(1) in the matter preceding paragraph (1), by striking ``an
application for the fiscal year under section 505(a)'' and
inserting ``, for the fiscal year, an application under
section 505(a), and an application under this section (in
such form and meeting such terms and conditions as determined
appropriate by the Secretary),''; and
(2) in paragraph (2), to read as follows:
``(2) the percentage that would be determined for the State
under section 502(c)(1)(B)(ii) if the calculation under such
section took into consideration only those States that
transmitted both such applications for such fiscal year.''.
(c) Reallotment of Funds.--Section 510 (42 U.S.C. 710(a))
is amended by adding at the end the following new subsection:
``(e)(1) With respect to allotments under subsection (a)
for fiscal year 2006 and subsequent fiscal years, the amount
of any allotment to a State for a fiscal year that the
Secretary determines will not be required to carry out a
program under this section during such fiscal year or the
succeeding fiscal year shall be available for reallotment
from time to time during such fiscal years on such dates as
the Secretary may fix, to other States that the Secretary
determines--
``(A) require amounts in excess of amounts previously
allotted under subsection (a) to carry out a program under
this section; and
``(B) will use such excess amounts during such fiscal
years.
``(2) Reallotments under paragraph (1) shall be made on the
basis of such States' applications under this section, after
taking into consideration the population of low-income
children in each such State as compared with the population
of low-income children in all such States with respect to
which a determination under paragraph (1) has been made by
the Secretary.
``(3) Any amount reallotted under paragraph (1) to a State
is deemed to be part of its allotment under subsection
(a).''.
(d) Effective Date.--The amendments made by this section
shall be effective with respect to the program under section
510 of the Social Security Act for fiscal years 2006 and
succeeding fiscal years.

TITLE VIII--TRANSITIONAL MEDICAL ASSISTANCE

SEC. 801. EXTENSION OF MEDICAID TRANSITIONAL MEDICAL
ASSISTANCE PROGRAM THROUGH FISCAL YEAR 2006.

(a) In General.--Section 1925(f) (42 U.S.C. 1396r-6(f)) is
amended by striking ``2003'' and inserting ``2006''.
(b) Conforming Amendment.--Section 1902(e)(1)(B) (42 U.S.C.
1396a(e)(1)(B)) is amended by striking ``September 30, 2003''
and inserting ``the last date (if any) on which section 1925
applies under subsection (f) of that section''.
(c) Effective Date.--The amendments made by this section
shall take effect on April 1, 2005.

SEC. 802. ADJUSTMENT TO PAYMENTS FOR MEDICAID ADMINISTRATIVE
COSTS TO PREVENT DUPLICATIVE PAYMENTS AND TO
FUND EXTENSION OF TRANSITIONAL MEDICAL
ASSISTANCE.

(a) In General.--Section 1903 (42 U.S.C. 1396b) is
amended--
(1) in subsection (a)(7), by striking ``section
1919(g)(3)(B)'' and inserting ``subsection (x) and section
1919(g)(3)(C)''; and
(2) by adding at the end the following:
``(x) Adjustments to Payments for Administrative Costs to
Fund Extension of Transitional Medical Assistance.--
``(1) Reductions in payments for administrative costs.--
Effective for each of the last 2 calendar quarters in fiscal
year 2005 and for each calendar quarter in fiscal year 2006,
the Secretary shall reduce the amount paid under subsection
(a)(7) to each State by an amount equal to 45 percent for
calendar quarters in fiscal year 2005, and 80 percent for
calendar quarters in fiscal year 2006, of one-quarter of the
annualized amount determined for the medicaid program under
section 16(k)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2025(k)(2)(B)).
``(2) Allocation of administrative costs.--None of the
funds or expenditures described in section 16(k)(5)(B) of the
Food Stamp Act of 1977 (7 U.S.C. 2025(k)(5)(B)) may be used
to pay for costs--
``(A) eligible for reimbursement under subsection (a)(7)
(or costs that would have been eligible for reimbursement but
for this subsection); and
``(B) allocated for reimbursement to the program under this
title under a plan submitted by a State to the Secretary to
allocate administrative costs for public assistance programs;

except that, for purposes of subparagraph (A), the reference
in clause (iii) of that section to `subsection (a)' is deemed
a reference to subsection (a)(7) and clause (iv)(II) of that
section shall be applied as if `medicaid program' were
substituted for `food stamp program'.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on April 1, 2005.

TITLE IX--EFFECTIVE DATE

SEC. 901. EFFECTIVE DATE.

(a) In General.--Except as otherwise provided in this Act,
this Act and the amendments made by this Act shall take
effect on October 1, 2005.
(b) Exception.--In the case of a State plan under part A or
D of title IV of the Social Security Act which the Secretary
determines requires State legislation in order for the plan
to meet the additional requirements imposed by the amendments
made by this Act, the effective date of the amendments
imposing the additional requirements shall be 3 months after
the first day of the first calendar quarter beginning after
the close of the first regular session of the State
legislature that begins after the date of the enactment of
this Act. For purposes of the preceding sentence, in the case
of a State that has a 2-year legislative session, each year
of the session shall be considered to be a separate regular
session of the State legislature.
______

By Mr. JOHNSON (for himself, Mr. Enzi, Mr. Bingaman, and Mr.
Dorgan):
S. 108. A bill to prohibit the operation during a calendar year of
the final rule issued by the Secretary of Agriculture to establish
standards for the designation of minimal-risk regions for the
introduction of bovine spongiform encephalopathy into the United
States, including designation of Canada as a minimal-risk region, and
the importation into the United States from Canada of certain bovine
ruminant products during that calendar year, unless country of origin
labeling is required for the retail sale of a covered commodity during
that calendar year; to the Committee on Agriculture, Nutrition, and
Forestry.
Mr. DORGAN. Mr. President, I am an original cosponsor of legislation
which was introduced today by Senators Johnson and Enzi. This
legislation requires that a mandatory system of country of-origin
labeling be in place before the U.S. Department of Agriculture can open
the border to imports of live Canadian cattle.
This legislation would not be necessary if USDA and this
Administration were not furiously pushing to allow live Canadian cattle
into this country. I am very concerned that they are doing this despite
the most recent discovery, just a few weeks ago, of two more Canadian
cows infected with BSE.
I believe that the decision to open the border to live Canadian
cattle should be made based on sound science, not politics. The border
should be opened when science indicates that it is safe to do so, and
not before.
I also believe that it is necessary that this country have a system
of country-of-origin labeling in place before the border is opened.
That is the only way American consumers will be able to choose between
beef raised in America and beef raised in Canada. Right now there is no
way to tell the difference. We must have country-of-origin labeling in
place before we allow Canadian cattle into this country, and that is
why I am cosponsoring this legislation.
______

By Mr. VITTER (for himself, Mr. Salazar, Mr. Thune, and Mr.
DeMint):
S. 109. A bill entitled ``Pharmaceutical Market Access Act of 2005'';
to the Committee on Health, Education, Labor, and Pensions.
Mr. VITTER. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 109

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Pharmaceutical Market Access
Act of 2005''.

SEC. 2. FINDINGS.

Congress finds as follows:
(1) Americans unjustly pay up to 1000 percent more to fill
their prescriptions than consumers in other countries.
(2) The United States is the world's largest market for
pharmaceuticals yet consumers still pay the world's highest
prices.
(3) An unaffordable drug is neither safe nor effective.
Allowing and structuring the importation of prescription
drugs ensures access to affordable drugs, thus providing a

[[Page S279]]

level of safety to American consumers they do not currently
enjoy.
(4) According to the Congressional Budget Office, American
seniors alone will spend $1,800,000,000,000 on
pharmaceuticals over the next 10 years.
(5) Allowing open pharmaceutical markets could save
American consumers at least $635,000,000,000 of their own
money each year.

SEC. 3. PURPOSES.

The purposes of this Act are as follows:
(1) To give all Americans immediate relief from the
outrageously high cost of pharmaceuticals.
(2) To reverse the perverse economics of the American
pharmaceutical market.
(3) To allow the importation of prescription drugs only if
the drugs and facilities where such drugs are manufactured
are approved by the Food and Drug Administration, and to
exclude pharmaceutical narcotics.
(4) To require that imported prescription drugs be packaged
and shipped using counterfeit-resistant technologies.

SEC. 4. AMENDMENTS TO SECTION 804 OF THE FEDERAL FOOD, DRUG,
AND COSMETIC.

(a) Definitions.--Section 804(a) of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 384(a)) is amended to read as
follows:
``(a) Definitions.--In this section:
``(1) Importer.--The term `importer' means a pharmacy,
group of pharmacies, pharmacist, or wholesaler.
``(2) Permitted country.--The term `permitted country'
means a country, union, or economic area that is listed in
subparagraph (A) of section 802(b)(1), except that the
Secretary--
``(A) may add a country, union, or economic area to such
list for purposes of this section if the Secretary determines
that the country, union, or economic area has a
pharmaceutical infrastructure that is substantially
equivalent or superior to the pharmaceutical infrastructure
of the United States, taking into consideration pharmacist
qualifications, pharmacy storage procedures, the drug
distribution system, the drug dispensing system, and market
regulation; and
``(B) may remove a country, union, or economic area from
such list for purposes of this section if the Secretary
determines that the country, union, or economic area does not
have such a pharmaceutical infrastructure.
``(3) Pharmacist.--The term `pharmacist' means a person
licensed by a State to practice pharmacy, including the
dispensing and selling of prescription drugs.
``(4) Pharmacy.--The term `pharmacy' means a person that is
licensed by a State to engage in the business of selling
prescription drugs at retail that employs 1 or more
pharmacists.
``(5) Prescription drug.--The term `prescription drug'
means a drug subject to section 503(b), other than--
``(A) a controlled substance (as defined in section 102 of
the Controlled Substances Act (21 U.S.C. 802));
``(B) a biological product (as defined in section 351 of
the Public Health Service Act (42 U.S.C. 262));
``(C) an infused drug (including a peritoneal dialysis
solution);
``(D) an intravenously injected drug;
``(E) a drug that is inhaled during surgery; or
``(F) a drug which is a parenteral drug, the importation of
which pursuant to subsection (b) is determined by the
Secretary to pose a threat to the public health, in which
case section 801(d)(1) shall continue to apply.
``(6) Qualifying drug.--The term `qualifying drug' means a
prescription drug that--
``(A) is approved under section 505(b)(1); and
``(B) is not--
``(i) a drug manufactured through 1 or more biotechnology
processes;
``(ii) a drug that is required to be refrigerated; or
``(iii) a photoreactive drug.
``(7) Qualifying internet pharmacy.--The term `qualifying
Internet pharmacy' means a registered exporter that dispenses
qualifying drugs to individuals over an Internet website.
``(8) Qualifying laboratory.--The term `qualifying
laboratory' means a laboratory in the United States that has
been approved by the Secretary for the purposes of this
section.
``(9) Registered exporter.--The term `registered exporter'
means a person that is in the business of exporting a drug to
individuals in the United States (or that seeks to be in such
business), for which a registration under this section has
been approved and is in effect.
``(10) Wholesaler.--
``(A) In general.--The term `wholesaler' means a person
licensed as a wholesaler or distributor of prescription drugs
in the United States under section 503(e)(2)(A).
``(B) Exclusion.--The term `wholesaler' does not include a
person authorized to import drugs under section 801(d)(1).''.
(b) Regulations.--Section 804(b) of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 384(b)) is amended to read as
follows:
``(b) Regulations.--Not later than 180 days after the date
of enactment of the Pharmaceutical Market Access Act of 2005,
the Secretary, after consultation with the United States
Trade Representative and the Commissioner of Customs, shall
promulgate regulations permitting pharmacists, pharmacies,
wholesalers, and individuals to import qualifying drugs from
permitted countries into the United States.''.
(c) Limitation.--Section 804(c) of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 384(c)) is amended by striking
``prescription drug'' each place it appears and inserting
``qualifying drug''.
(d) Information and Records.--Section 804(d)(1) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 384(d)(1)) is
amended--
(1) by striking subparagraph (G) and redesignating
subparagraphs (H) through (N) as subparagraphs (G) through
(M), respectively;
(2) in subparagraph (H) (as so redesignated), by striking
``telephone number, and professional license number (if
any)'' and inserting ``and telephone number''; and
(3) in subparagraph (L) (as so redesignated), by striking
``(J) and (L)'' and inserting ``(I) and (K)''.
(e) Testing.--Section 804(e) of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 384(e)) is amended to read as
follows:
``(e) Testing.--The regulations under subsection (b) shall
require that the testing described under subparagraphs (I)
and (K) of subsection (d)(1) be conducted by the importer of
the qualifying drug, unless the qualifying drug is drug
subject to the requirements under subsection (l) for
counterfeit-resistant technologies.''.
(f) Registration of Exporters; Inspections.--Section 804(f)
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
384(f)) is amended to read as follows:
``(f) Registration of Exporters; Inspections.--
``(1) In general.--Any person that seeks to be a registered
exporter (referred to in this subsection as the `registrant')
shall submit to the Secretary a registration that includes
the following:
``(A) The name of the registrant and identification of all
places of business of the registrant that relate to
qualifying drugs, including each warehouse or other facility
owned or controlled by, or operated for, the registrant;
``(B) An agreement by the registrant to--
``(i) make its places of business that relate to qualifying
drugs (including warehouses and other facilities owned or
controlled by, or operated for, the exporter) and records
available to the Secretary for on-site inspections, without
prior notice, for the purpose of determining whether the
registrant is in compliance with this Act's requirements;
``(ii) export only qualifying drugs;
``(iii) export only to persons authorized to import the
drugs;
``(iv) notify the Secretary of a recall or withdrawal of a
qualifying drug distributed in a permitted country to or from
which the registrant has exported or imported, or intends to
export or import, to the United States;
``(v) monitor compliance with registration conditions and
report any noncompliance promptly;
``(vi) submit a compliance plan showing how the registrant
will correct violations, if any; and
``(vii) promptly notify Secretary of changes in the
registration information of the registrant.
``(2) Notice of approval or disapproval.--
``(A) In general.--Not later than 90 days after receiving a
completed registration from a registrant, the Secretary
shall--
``(i) notify such registrant of receipt of the
registration;
``(ii) assign such registrant a registration number; and
``(ii) approve or disapprove the application.
``(B) Disapproval of application.--
``(i) In general.--The Secretary shall disapprove a
registration, and notify the registrant of such disapproval,
if the Secretary has reason to believe that such registrant
is not in compliance with a registration condition.
``(ii) Subsequent approval.--The Secretary may subsequently
approve a registration that was denied under clause (i) if
the Secretary finds that the registrant is in compliance with
all registration conditions.
``(3) List.--The Secretary shall--
``(A) maintain an up-to-date list of registered exporters
(including qualifying Internet pharmacies that sell
qualifying drugs to individuals);
``(B) make such list available to the public on the
Internet site of the Food and Drug Administration and via a
toll-free telephone number; and
``(C) update such list promptly after the approval of a
registration under this subsection.
``(4) Education of consumers.--The Secretary shall carry
out activities, by use of the Internet website and toll-free
telephone number under paragraph (3), that educate consumers
with regard to the availability of qualifying drugs for
import for personal use under this section, including
information on how to verify whether an exporter is
registered.
``(5) Inspection of importers and registered exporters.--
The Secretary shall inspect the warehouses, other facilities,
and records of importers and registered exporters as often as
the Secretary determines necessary to ensure that such
importers and registered exporters are in compliance with
this section.''.
(g) Suspension of Importation.--Section 804(g) of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 384(g)) is
amended by--
(1) striking ``and the Secretary determines that the public
is adequately protected from

[[Page S280]]

counterfeit and violative prescription drugs being imported
under subsection (b)''; and
(2) by adding after the period at the end the following:
``The Secretary shall reinstate the importation by a specific
importer upon a determination by the Secretary that the
violation has been corrected and that the importer has
demonstrated that further violations will not occur. This
subsection shall not apply to a prescription drug imported by
an individual, or to a prescription drug shipped to an
individual by a qualifying Internet pharmacy.''.
(h) Waiver Authority for Individuals.--Section 804(j) of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 384(j))
is amended to read as follows:
``(j) Importation by Individuals.--
``(1) In general.--Not later than 180 days after the
enactment of the Pharmaceutical Market Access Act of 2005,
the Secretary shall by regulation permit an individual to
import a drug from a permitted country to the United States
if the drug is--
``(A) a qualifying drug;
``(B) imported from a licensed pharmacy or qualifying
Internet pharmacy;
``(C) for personal use by an individual, or family member
of the individual, not for resale;
``(D) in a quantity that does not exceed a 90-day supply
during any 90-day period; and
``(E) accompanied by a copy of a prescription for the drug,
which--
``(i) is valid under applicable Federal and State laws and;
``(ii) was issued by a practitioner who is authorized
administer prescription drugs.
``(2) Drugs dispensed outside the United States.--An
individual may import a drug from a country that is not a
permitted country if--
``(A) the drug was dispensed to the individual while the
individual was in such country, and the drug was dispensed in
accordance with the laws and regulations of such country;
``(B) the individual is entering the United States and the
drug accompanies the individual at the time of entry;
``(C) the drug is approved for commercial distribution in
the country in which the drug was obtained;
``(D) the drug does not appear to be adulterated; and
``(E) the quantity of the drug does not exceed a 14-day
supply.''.
(i) Repeal of Certain Provisions.--Section 804 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 384) is
amended by striking subsections (l) and (m).

SEC. 5. REGISTRATION FEES.

Subchapter C of chapter VII of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 397f et seq.) is amended by adding at
the end the following:

``PART 5--FEES RELATING TO PRESCRIPTION DRUG IMPORTATION

``SEC. 740A. FEES RELATING TO PRESCRIPTION DRUG IMPORTATION.

``(a) Registration Fee.--The Secretary shall establish a
registration fee program under which a registered exporter
under section 804 shall be required to pay an annual fee to
the Secretary in accordance with this subsection.
``(b) Collection.--
``(1) Collection on initial registration.--A fee under this
section shall be payable for the fiscal year in which the
registered exporter first submits a registration under
section 804 (or reregisters under that section if that person
has withdrawn its registration and subsequently reregisters)
in a amount of $10,000, due on the date the exporter first
submits a registration to the Secretary under section 804.
``(2) Collection in subsequent years.--After the fee is
paid for the first fiscal year, the fee described under this
subsection shall be payable on or before October 1 of each
year.
``(3) One fee per facility.--The fee shall be paid only
once for each registered exporter for a fiscal year in which
the fee is payable.
``(c) Fee Amount.--
``(1) In general.--The amount of the fee shall be
determined each year by the Secretary and shall be based on
the anticipated costs to the Secretary of enforcing the
amendments made by the Pharmaceutical Market Access Act of
2005 in the subsequent fiscal year.
``(2) Limitation.--
``(A) In general.--The aggregate total of fees collected
under this section shall not exceed 1 percent of the total
price of drugs exported annually to the United States by
registered exporters under this section.
``(B) Reasonable estimate.--Subject to the limitation in
described in subparagraph (A), a fee under this subsection
for an exporter shall be an amount that is a reasonable
estimate by the Secretary of the annual share of the exporter
of the volume of drugs exported by exporters under this
section.
``(d) Use of Fees.--The fees collected under this section
shall be used for the sole purpose of administering this
section with respect to registered exporters, including the
costs associated with--
``(1) inspecting the facilities of registered exporters,
and of other entities in the chain of custody of a qualifying
drug;
``(2) developing, implementing, and maintaining a system to
determine registered exporters' compliance with the
registration conditions under the Pharmaceutical Market
Access Act of 2005, including when shipments of qualifying
drugs are offered for import into the United States; and
``(3) inspecting such shipments, as necessary, when offered
for import into the United States to determine if any such
shipment should be refused admission.
``(e) Annual Fee Setting.--The Secretary shall establish,
60 days before the beginning of each fiscal year beginning
after September 30, 2005, for that fiscal year, registration
fees.
``(f) Effect of Failure To Pay Fees.--
``(1) Due date.--A fee payable under this section shall be
paid by the date that is 30 days after the date on which the
fee is due.
``(2) Failure to pay.--If a registered exporter subject to
a fee under this section fails to pay the fee, the Secretary
shall not permit the registered exporter to engage in
exportation to the United States or offering for exportation
prescription drugs under this Act until all such fees owed by
that person are paid.
``(g) Reports.--
``(1) Fee establishment.--Not later than 60 days before the
beginning of each fiscal year, the Secretary shall--
``(A) publish registration fees under this section for that
fiscal year;
``(B) hold a meeting at which the public may comment on the
recommendations; and
``(C) provide for a period of 30 days for the public to
provide written comments on the recommendations.
``(2) Performance and fiscal report.--Beginning with fiscal
year 2005, not later than 60 days after the end of each
fiscal year during which fees are collected under this
section, the Secretary shall submit to the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Energy and Commerce of the House of
Representatives a report that describes--
``(A) implementation of the registration fee authority
during the fiscal year; and
``(B) the use by the Secretary of the fees collected during
the fiscal year for which the report is made.''.

SEC. 6. COUNTERFEIT-RESISTANT TECHNOLOGY.

(a) Misbranding.--Section 502 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 352; deeming drugs and devices to
be misbranded) is amended by adding at the end the following:
``(v) If it is a drug subject to section 503(b), unless the
packaging of such drug complies with the requirements of
section 505C for counterfeit-resistant technologies.''.
(b) Requirements.--Title V of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 351 et seq.) is amended by inserting
after section 505B the following:

``SEC. 505C. COUNTERFEIT-RESISTANT TECHNOLOGIES.

``(a) Incorporation of Counterfeit-resistant Technologies
Into Prescription Drug Packaging.--The Secretary shall
require that the packaging of any drug subject to section
503(b) incorporate--
``(1) overt optically variable counterfeit-resistant
technologies that are described in subsection (b) and comply
with the standards of subsection (c); or
``(2) technologies that have an equivalent function of
security, as determined by the Secretary.
``(b) Eligible Technologies.--Technologies described in
this subsection--
``(1) shall be visible to the naked eye, providing for
visual identification of product authenticity without the
need for readers, microscopes, lighting devices, or scanners;
``(2) shall be similar to that used by the Bureau of
Engraving and Printing to secure United States currency;
``(3) shall be manufactured and distributed in a highly
secure, tightly controlled environment; and
``(4) should incorporate additional layers of non-visible
covert security features up to and including forensic
capability.
``(c) Standards for Packaging.--
``(1) Multiple elements.--For the purpose of making it more
difficult to counterfeit the packaging of drugs subject to
section 503(b), manufacturers of the drugs shall incorporate
the technologies described in subsection (b) into multiple
elements of the physical packaging of the drugs, including
blister packs, shrink wrap, package labels, package seals,
bottles, and boxes.
``(2) Labeling of shipping container.--Shipments of drugs
described in subsection (a) shall include a label on the
shipping container that incorporates the technologies
described in subsection (b), so that officials inspecting the
packages will be able to determine the authenticity of the
shipment. Chain of custody procedures shall apply to such
labels and shall include procedures applicable to contractual
agreements for the use and distribution of the labels,
methods to audit the use of the labels, and database access
for the relevant governmental agencies for audit or
verification of the use and distribution of the labels.
``(d) Effective date.--This section shall take effect 180
days after the date of enactment of the Pharmaceutical Market
Access Act of 2005.''.

SEC. 7. PROHIBITED ACTS.

Section 301 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 331) is amended by inserting after subsection (k) the
following:
``(l) The failure to register in accordance with section
804(f) or to import or offer to import a prescription drug in
violation of a suspension order under section 804(g).''.

SEC. 8. PATENTS.

Section 271 of title 35, United States Code, is amended--
(1) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and

[[Page S281]]

(2) by inserting after subsection (g) the following:
``(h) It shall not be an act of infringement to use, offer
to sell, or sell within the United States or to import into
the United States any patented invention under section 804
(21 U.S.C. 384) of the Federal Food, Drug, and Cosmetic Act
that was first sold abroad by or under authority of the owner
or licensee of such patent.''.

SEC. 9. OTHER ENFORCEMENT ACTIONS.

(a) In general.--Section 804 of the Federal Food, Drug, and
Cosmetic Act (as amended in section 4) is amended by adding
at the end the following:
``(l) Unfair or Discriminatory Acts and Practices.--
``(1) In general.--It is unlawful for a manufacturer,
directly or indirectly (including by being a party to a
licensing or other agreement) to--
``(A) discriminate by charging a higher price for a
prescription drug sold to a person in a permitted country
that exports a prescription drug to the United States under
this section than the price that is charged to another person
that is in the same country and that does not export a
prescription drug into the United States under this section;
``(B) discriminate by charging a higher price for a
prescription drug sold to a person that distributes, sells,
or uses a prescription drug imported into the United States
under this section than the price that is charged to another
person in the United States that does not import a
prescription drug under this section, or that does not
distribute, sell, or use such a drug;
``(C) discriminate by denying supplies of a prescription
drug to a person in a permitted country that exports a
prescription drug to the United States under this section or
distributes, sells, or uses a prescription drug imported into
the United States under this section;
``(D) discriminate by publicly, privately, or otherwise
refusing to do business with a person in a permitted country
that exports a prescription drug to the United States under
this section or distributes, sells, or uses a prescription
drug imported into the United States under this section;
``(E) discriminate by specifically restricting or delaying
the supply of a prescription drug to a person in a permitted
country that exports a prescription drug to the United States
under this section or distributes, sells, or uses a
prescription drug imported into the United States under this
section;
``(F) cause there to be a difference (including a
difference in active ingredient, route of administration,
dosage form, strength, formulation, manufacturing
establishment, manufacturing process, or person that
manufactures the drug) between a prescription drug for
distribution in the United States and the drug for
distribution in a permitted country for the purpose of
restricting importation of the drug into the United States
under this section;
``(G) refuse to allow an inspection authorized under this
section of an establishment that manufactures a prescription
drug that may be imported or offered for import under this
section;
``(H) fail to conform to the methods used in, or the
facilities used for, the manufacturing, processing, packing,
or holding of a prescription drug that may be imported or
offered for import under this section to good manufacturing
practice under this Act;
``(I) become a party to a licensing or other agreement
related to a prescription drug that fails to provide for
compliance with all requirements of this section with respect
to such prescription drug or that has the effect of
prohibiting importation of the drug under this section; or
``(J) engage in any other action that the Federal Trade
Commission determines to discriminate against a person that
engages in, or to impede, delay, or block the process for,
the importation of a prescription drug under this section.
``(2) Affirmative defense.--It shall be an affirmative
defense to a charge that a person has discriminated under
subparagraph (A), (B), (C), (D), or (E) of paragraph (1) that
the higher price charged for a prescription drug sold to a
person, the denial of supplies of a prescription drug to a
person, the refusal to do business with a person, or the
specific restriction or delay of supplies to a person is not
based, in whole or in part, on--
``(A) the person exporting or importing a prescription drug
into the United States under this section; or
``(B) the person distributing, selling, or using a
prescription drug imported into the United States under this
section.
``(3) Presumption and affirmative defense.--
``(A) Presumption.--A difference (including a difference in
active ingredient, route of administration, dosage form,
strength, formulation, manufacturing establishment,
manufacturing process, or person that manufactures the drug)
created after January 1, 2005, between a prescription drug
for distribution in the United States and the drug for
distribution in a permitted country shall be presumed under
paragraph (1)(H) to be for the purpose of restricting
importation of the drug into the United States under this
section.
``(B) Affirmative defense.--It shall be an affirmative
defense to the presumption under subparagraph (A) that--
``(i) the difference was required by the country in which
the drug is distributed; or
``(ii) the Secretary has determined that the difference was
necessary to improve the safety or effectiveness of the drug.
``(4) Effect of subsection.--
``(A) Sales in other countries.--This subsection applies
only to the sale or distribution of a prescription drug in a
country if the manufacturer of the drug chooses to sell or
distribute the drug in the country. Nothing in this
subsection shall be construed to compel the manufacturer of a
drug to distribute or sell the drug in a country.
``(B) Discounts to insurers, health plans, pharmacy benefit
managers, and covered entities.--Nothing in this subsection
shall be construed to--
``(i) prevent or restrict a manufacturer of a prescription
drug from providing discounts to an insurer, health plan,
pharmacy benefit manager in the United States, or covered
entity in the drug discount program under section 340B in
return for inclusion of the drug on a formulary;
``(ii) require that such discounts be made available to
other purchasers of the prescription drug; or
``(iii) prevent or restrict any other measures taken by an
insurer, health plan, or pharmacy benefit manager to
encourage consumption of such prescription drug.
``(C) Charitable contributions.--Nothing in this subsection
shall be construed to--
``(i) prevent a manufacturer from donating a prescription
drug, or supplying a prescription drug at nominal cost, to a
charitable or humanitarian organization, including the United
Nations and affiliates, or to a government of a foreign
country; or
``(ii) apply to such donations or supplying of a
prescription drug.
``(5) Enforcement.--
``(A) Unfair or deceptive act or practice.--A violation of
this subsection shall be treated as a violation of a rule
defining an unfair or deceptive act or practice prescribed
under section 18(a)(1)(B) of the Federal Trade Commission
Act.
``(B) Actions by the commission.--The Federal Trade
Commission--
``(i) shall enforce this subsection in the same manner, by
the same means, and with the same jurisdiction, powers, and
duties as though all applicable terms and provisions of the
Federal Trade Commission Act were incorporated into and made
a part of this section; and
``(ii) may seek monetary relief threefold the damages
sustained.
``(6) Actions by states.--
``(A) In general.--
``(i) Civil actions.--The attorney general of a State may
bring a civil action on behalf of the residents of the State,
and persons doing business in the State, in a district court
of the United States of appropriate jurisdiction for a
violation of paragraph (1) to--

``(I) enjoin that practice;
``(II) enforce compliance with this subsection;
``(III) obtain damages, restitution, or other compensation
on behalf of residents of the State and persons doing
business in the State, including threefold the damages; or
``(IV) obtain such other relief as the court may consider
to be appropriate.

``(ii) Notice.--

``(I) In general.--Before filing an action under clause
(i), the attorney general of the State involved shall provide
to the Federal Trade Commission--

``(aa) written notice of that action; and
``(bb) a copy of the complaint for that action.

``(II) Exemption.--Subclause (I) shall not apply with
respect to the filing of an action by an attorney general of
a State under this paragraph, if the attorney general
determines that it is not feasible to provide the notice
described in that subclause before filing of the action. In
such case, the attorney general of a State shall provide
notice and a copy of the complaint to the Federal Trade
Commission at the same time as the attorney general files the
action.

``(B) Intervention.--
``(i) In general.--On receiving notice under subparagraph
(A)(ii), the Commission shall have the right to intervene in
the action that is the subject of the notice.
``(ii) Effect of intervention.--If the Commission
intervenes in an action under subparagraph (A), it shall have
the right--

``(I) to be heard with respect to any matter that arises in
that action; and
``(II) to file a petition for appeal.

``(C) Construction.--For purposes of bringing any civil
action under subparagraph (A), nothing in this subsection
shall be construed to prevent an attorney general of a State
from exercising the powers conferred on the attorney general
by the laws of that State to--
``(i) conduct investigations;
``(ii) administer oaths or affirmations; or
``(iii) compel the attendance of witnesses or the
production of documentary and other evidence.
``(D) Actions by the commission.--
``(i) In general.--In any case in which an action is
instituted by or on behalf of the Commission for a violation
of paragraph (1), a State may not, during the pendency of
that action, institute an action under subparagraph (A) for
the same violation against any defendant named in the
complaint in that action.
``(ii) Intervention.--An attorney general of a State may
intervene, on behalf of the residents of that State, in an
action instituted by the Commission.
``(iii) Effect of intervention.--If an attorney general of
a State intervenes in an

[[Page S282]]

action instituted by the Commission, such attorney general
shall have the right--

``(I) to be heard with respect to any matter that arises in
that action; and
``(II) to file a petition for appeal.

``(E) Venue.--Any action brought under subparagraph (A) may
be brought in the district court of the United States that
meets applicable requirements relating to venue under section
1391 of title 28, United States Code.
``(F) Service of process.--In an action brought under
subparagraph (A), process may be served in any district in
which the defendant--
``(i) is an inhabitant; or
``(ii) may be found.
``(G) Limitation of actions.--Any action under this
paragraph to enforce a cause of action under this subsection
by the Federal Trade Commission or the attorney general of a
State shall be forever barred unless commenced within 5 years
after the Federal Trade Commission, or the attorney general,
as the case may be, knew or should have known that the cause
of action accrued. No cause of action barred under existing
law on the effective date of this Act shall be revived by
this Act.
``(H) Measurement of damages.--In any action under this
paragraph to enforce a cause of action under this subsection
in which there has been a determination that a defendant has
violated a provision of this subsection, damages may be
proved and assessed in the aggregate by statistical or
sampling methods, by the computation of illegal overcharges
or by such other reasonable system of estimating aggregate
damages as the court in its discretion may permit without the
necessity of separately proving the individual claim of, or
amount of damage to, persons on whose behalf the suit was
brought.
``(I) Exclusion on duplicative relief.--The district court
shall exclude from the amount of monetary relief awarded in
an action under this paragraph brought by the attorney
general of a State any amount of monetary relief which
duplicates amounts which have been awarded for the same
injury.
``(7) Effect on antitrust laws.--Nothing in this subsection
shall be construed to modify, impair, or supersede the
operation of the antitrust laws. For the purpose of this
subsection, the term `antitrust laws' has the meaning given
it in the first section of the Clayton Act, except that it
includes section 5 of the Federal Trade Commission Act to the
extent that such section 5 applies to unfair methods of
competition.
``(8) Manufacturer.--In this subsection, the term
`manufacturer' means any entity, including any affiliate or
licensee of that entity, that is engaged in--
``(A) the production, preparation, propagation,
compounding, conversion, or processing of a prescription
drug, either directly or indirectly by extraction from
substances of natural origin, or independently by means of
chemical synthesis, or by a combination of extraction and
chemical synthesis; or
``(B) the packaging, repackaging, labeling, relabeling, or
distribution of a prescription drug.''.
(b) Regulations.--The Federal Trade Commission shall
promulgate regulations to carry out the enforcement program
under section 804(l) of the Federal Food, Drug, and Cosmetic
Act (as added by subsection (a)).
(c) Suspension and Termination of Exporters.--Section
804(g) of the Federal Food, Drug, and Cosmetic Act (as
amended by section 4(g)) (21 U.S.C. 384(g)) is amended by--
(1) striking ``Suspension of Importation.--The Secretary''
and inserting ``Suspension of Importation.--
``(1) The Secretary--''; and
(2) adding at the end the following:
``(2) Suspension and termination of exporters.--
``(A) Suspension.--With respect to the effectiveness of a
registration submitted under subsection (f) by a registered
exporter:
``(i) Subject to clause (ii), if the Secretary determines,
after notice and opportunity for a hearing, that the
registered exporter has failed to maintain substantial
compliance with all registration conditions, the Secretary
may suspend the registration.
``(ii) If the Secretary determines that, under color of the
registration, the registered exporter has exported a drug
that is not a qualifying drug, or a drug that does not meet
the criteria under this section, or has exported a qualifying
drug to an individual in violation of this section, the
Secretary shall immediately suspend the registration. A
suspension under the preceding sentence is not subject to the
provision by the Secretary of prior notice, and the Secretary
shall provide to the registered exporter involved an
opportunity for a hearing not later than 10 days after the
date on which the registration is suspended.
``(iii) The Secretary may reinstate the registration,
whether suspended under clause (i) or (ii), if the Secretary
determines that the registered exporter has demonstrated that
further violations of registration conditions will not occur.
``(B) Termination.--The Secretary, after notice and
opportunity for a hearing, may terminate the registration
under subsection (f) of a registered exporter if the
Secretary determines that the registered exporter has engaged
in a pattern or practice of violating 1 or more registration
conditions, or if on 1 or more occasions the Secretary has
under subparagraph (A)(ii) suspended the registration of the
registered exporter. The Secretary may make the termination
permanent, or for a fixed period of not less than 1 year.
During the period in which the registration of a registered
exporter is terminated, any registration submitted under
subsection (f) by such exporter or a person who is a partner
in the export enterprise or a principal officer in such
enterprise, and any registration prepared with the assistance
of such exporter or such a person, has no legal effect under
this section.''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be
necessary to carry out this Act (and the amendments made by
this Act).
______

By Mrs. FEINSTEIN:
S. 110. A bill for the relief of Robert Liang and Alice Liang; to the
Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I offer today private relief
legislation to provide lawful permanent residence status to Robert Kuan
Liang and his wife, Chun-Mei (``Alice'') Hsu-Liang, foreign nationals
who live in San Bruno, California.
I have decided to offer private relief immigration bills on their
behalf because I believe that, without it, this hardworking couple and
their three United States citizen children would endure an immense and
unfair hardship. Indeed, without this legislation, this family may not
remain a family for much longer.
The Liangs are foreign nationals facing deportation on account of
their overstay of visitors visas and the failure of their previous
attorney to timely file a suspension of deportation application before
the immigration laws changed in 1996.
Mr. Liang is a foreign national and refugee from Laos. His wife is a
citizen of Taiwan. They entered the United States 22 years ago as
tourists and established residency in the San Bruno, CA. Because they
overstayed the terms of their temporary visas, they now face
deportation from the United States.
After living here for so many years, removal from the United States
would not come easily or perhaps without tearing this family apart. The
Liangs have three children born in this country: Wesley, 13 years old,
Bruce, 10 years old, and Eva, 7 years old. Young Wesley suffers from
asthma and has a history of social and emotional anxiety. The
immigration judge who presided over the Liang's case in 1997 concluded
that there was no question that the Liang children would be adversely
impacted if they were required to leave their relatives and friends
behind in California to follow their parents to Taiwan, a country whose
language and culture is unfamiliar to them. And that was 7 years ago. I
can only imagine how much more they would be adversely impacted now
given the passage of 7 more years.
The Liangs have filed annual income tax returns; established a
successful business, Fong Yong Restaurant, in the United States; are
home owners, and are financially successful. Since they arrived in the
United States, they have pursued and, to a degree, achieved the
American Dream.
Mr. and Mrs. Liang's quest to legalize their immigration status began
in 1993 when they filed for relief from deportation before an
immigration judge. The Immigration and Naturalization Service, however,
did not act on their application until nearly 5 years later, in 1997,
after which time the immigration laws had significantly changed.
According to the immigration judge, had the INS acted on their
application for relief from deportation in a timely manner, they would
have qualified for suspension of deportation, given that they were
long-term residents of this country with US citizen children and other
positive factors. By the time INS processed their application, however,
Congress passed the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996, which changed the requirements for relief
from removal to the Liangs' disadvantage.
I supported the changes of the 1996 law, but I believe sometimes
there are exceptions which merit special consideration. The Liangs are
such a couple and family. Perhaps what distinguishes this family from
many others is that through hard work and perseverance, Mr. Liang has
achieved a significant degree of success in the United States while
battling a severe form of Post Traumatic Stress Disorder. According to
his psychologist, this disorder stems from the persecution he, his
family and community experienced in his native

[[Page S283]]

country of Laos during the Vietnam War. Throughout his childhood and
adolescence, Mr. Liang was exposed to numerous traumatic experiences,
including the murder of his mother by the North Vietnamese and frequent
episodes of wartime violence. He also routinely witnessed the brutal
persecution and deaths of others in his village. In 1975, he was
granted refugee status in Taiwan.
The emotional impact of Mr. Liang's experiences in his war-torn
native country have been profound and continue to haunt him. In
addition to being diagnosed with Post Traumatic Stress Disorder, his
psychologist has also indicated that he suffers from severe clinical
depression, which has been exacerbated by the prospect of being
deported to Taiwan, where on account of his nationality, he believes he
and his family would be treated as second-class citizens. Moreover, Mr.
Liang believes that the pursuit of further mental health treatment in
Taiwan would only exacerbate the stigma of being an outsider in a
country whose language he does not speak. Given those prospects, he
also fears the impact such a stigma would have on the well-being and
future of his children.
Given these extraordinary and unique facts, I ask my colleagues to
support this private relief bill on behalf of the Liangs.
I also ask unanimous consent that the text of the legislation be
printed in the Record and that the attached three letters of community
support also be printed.
There being no objection, the bill and letters were ordered to be
printed in the Record, as follows:

S. 110

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. ADJUSTMENT OF STATUS.

(a) In General.--Notwithstanding any other provision of law
or any order, for the purposes of the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), Robert Liang and
Alice Liang shall be deemed to have been lawfully admitted
to, and remained in, the United States, and shall be eligible
for issuance of an immigrant visa or for adjustment of status
under section 245 of the Immigration and Nationality Act (8
U.S.C. 1255).
(b) Application and Payment of Fees.--Subsection (a) shall
apply only if the applications for issuance of immigrant
visas or the applications for adjustment of status are filed
with appropriate fees within 2 years after the date of
enactment of this Act.
(c) Reduction of Immigrant Visa Numbers.--Upon the granting
of immigrant visas to Robert Liang and Alice Liang, the
Secretary of State shall instruct the proper officer to
reduce by 2, during the current or subsequent fiscal year,
the total number of immigrant visas that are made available
to natives of the country of the aliens' birth under section
202(e) or 203(a) of the Immigration and Nationality Act (8
U.S.C. 1152(e), 1153(a)), as applicable.

Re the Liang Family.

Hon. Dianne Feinstein,
U.S. Senate, Hart Senate Office Building, Washington, DC.
Dear Senator Feinstein: Robert and Alice Liang and their
Fon Yong Restaurant at 1065 Holly Street are members in good
standing of the San Carlos Chamber of Commerce. As such they
have shown their commitment to be members in good standing of
the San Carlos business community. Chamber members tend to
reflect a desire for community involvement and support for
their city. The Liangs took the initiative to start a
business here and have maintained it beautifully. They have a
very loyal cadre of customers.
The Chamber is always happy to see good small businesses
like Fon Yong thrive. The Chamber stands behind Alice and her
family in their quest for permanent residence in the United
States. Alice is well known to all who frequent her
restaurant as a warm, friendly business woman who even takes
the time to remember what her regulars' favorites are.
The Liang family is a stable one and they contribute to the
community here. They have done good rather than harm as they
settled here. I hope you can respond positively to their
example and settle the immigration issue quickly.
Sincerely,

Sheryl Pomerenk,

CEO, San Carlos Chamber of Commerce.
____

January 13, 2005.
Hon. Dianne Feinstein,
331 Hart Senate Office Building,
Washington, DC.
Dear Senator Feinstein: I am writing in support of a
private bill for Robert and Alice Liang, two outstanding
residents of our community for the past twenty-one years.
Robert and Alice are two of the most caring and hardworking
people I have ever met. Despite the demands of running a
small business and taking care of their three children, they
are always trying to help others in need. Recently, Alice
heard about Chloe Chang, a young local girl who had acute
promyelocytic leukemia. Chloe had undergone chemotherapy, but
had a relapse. She needed a bone marrow transplant, and was
looking for a donor. Her family was facing mounting bills
from the donor search. Alice asked me if there was any way
she could help. I should point out that she had never met
this family, she just knew they were in need from newspaper
articles and TV broadcasts. We put together a fund-raising
dinner event at Stanford University in which I bought the
ingredients, and Robert and Alice worked all day cooking a
hundred dinners. Together, we raised almost a thousand
dollars to help Chloe's family.
This is not the only time that Robert and Alice have gone
out of their way to help others, even while they themselves
face deportation. It amazes me that they can think of others
at such a time, but that's the kind of people they are. I am
so worried about Robert, especially, because he is still
suffering from all the things he saw as a child and a
teenager in Laos. People were dragged out and killed in front
of him, and his own mother was killed by the Communists
before the rest of the family escaped. After two decades
here, Robert has found a little peace, and I can't even think
what it will do to him to have that taken away. I want you as
my senator to do whatever it takes to make sure that these
two wonderful people can stay here where they belong. Please
sponsor a private bill and try to convince other members of
Congress to support it. If there's anything I can do to help,
please let me know.
Sincerely,
Sue Chow.
____

January 12, 2005.
Senator Dianne Feinstein,
Hart Senate Office Building,
Washington, DC.
Dear Senator Feinstein: I am writing you as a friend and
customer of Robert and Alice Liang of San Bruno, because I
understand that you may be considering resubmitting a private
bill in their favor. I certainly hope that you do resubmit
and support this private bill. These are extraordinary people
in the way they and their business have enhanced our
community of San Carlos. Alice and Robert have really created
a special community of customers and friends with their
restaurant.
It's hard to describe how much of an asset the Liangs are
to our community. They are good neighbors. They are welcoming
friends and hosts. They expect only good from people and they
reach out with friendship and aid to those around them.
Robert and Alice have touched the hundreds of customers who
have walked in the doors of Fon Yong Restaurant by not only
preparing very good food, but by reaching us personally with
very caring, unsolicited acts of kindness and neighborliness.
A couple of examples include their bringing my husband's
favorite vegetarian meal to him at Sequoia Hospital, when he
was undergoing rehabilitation from a stroke, and regularly
assisting the disabled daughter of a customer as she works to
feed herself dinner in the restaurant. Their actions of
kindness remind all of us what it is to be a good neighbor.
These are the values and qualities we hope for in our
neighbors.
The private bill you submitted in the last Congress did
help reduce Robert's anxiety level. (As you know, he is being
treated for Post Traumatic Stress Disorder.) I am very
concerned though, about what may happen to the family if they
are forced to leave the United States and relocate to a place
the children have never seen, is a half a life away for
Alice, and is certainly not Robert's home. I hope you will
resubmit your bill for the Liangs and encourage your fellow
members of the Senate to support the Liangs in their quest to
join us as citizens of the United States.
Thank you so much for your support of the Liangs. Also,
please know that I am ready and willing to help you help
them.
Sincerely,
Barbara Maas.
______

By Mrs. FEINSTEIN:
S. 111. A bill for the relief of Shigeru Yamada; to the Committee on
the Judiciary.
Mrs. FEINSTEIN. Mr. President, I offer today private relief
legislation to provide lawful permanent residence status to Shigeru
Yamada, a 22-year-old Japanese national who lives in Chula Vista, CA.
I have decided to introduce a private bill on his behalf because I
believe that Mr. Yamada represents a model American citizen, for whom
removal from this country would represent an unfair hardship. Without
this legislation, Mr. Yamada will be forced to return to a country in
which he lacks any linguistic, cultural or family ties.
Mr. Yamada legally entered the United States with his mother and two
sisters in 1992 at the young age of 10. The family was fleeing from Mr.
Yamada's alcoholic father, who had been physically abusive to his
mother, the children and even his own parents. Since then, he has had
no contact with his father and is unsure if he is even alive.
Tragically, Mr. Yamada experienced further hardship when his mother was
killed in a car crash in 1995. Orphaned at the age of 13, Mr. Yamada

[[Page S284]]

spent time living with his aunt before moving to Chula Vista to live
with a close friend of his late mother.
The death of his mother marked more than a personal tragedy for Mr.
Yamada; it also served to impede the process for him to legalize his
status. At the time of her death, Mr. Yamada's family was living
legally in the United States. His mother had acquired a student visa
for herself and her children qualified as her dependents. Her death
revoked his legal status in the United States. In addition, Mr.
Yamada's mother was engaged to an American citizen at the time of her
death. Had she survived, her son would likely have become an American
citizen through this marriage.
Mr. Yamada has exhausted all administrative options under our current
immigration system. Throughout high school, he contacted attorneys in
the hopes of legalizing his status, but his attempts were unsuccessful.
Unfortunately, time has run out and, for Mr. Yamada, the only option
available to him today is private relief legislation.
For several reasons, it would be tragic for Mr. Yamada to be deported
from the United States and forced to return to Japan.
First, since arriving in the United States, Mr. Yamada has lived as a
model American. He graduated with honors from Eastlake High School in
2000, where he excelled in both academics and athletics. Academically,
he earned a number of awards including being named an ``Outstanding
English Student'' his freshman year, an All-American Scholar, and
earning the United States National Minority Leadership Award. His
teacher and coach, Mr. John Inumerable, describes him as being
``responsible, hard working, organized, honest, caring and very
dependable.'' His role as the Vice-President of the Associated Student
Body his senior year is an indication of Mr. Yamada's high level of
leadership, as well as, his popularity and trustworthiness among his
peers. As an athlete, Mr. Yamada was named the ``Most Inspirational
Player of the Year'' in Junior Varsity baseball and football, as well
as, Varsity football. His football coach, Mr. Jose Mendoza, expressed
his admiration by saying that he has ``seen in Shigeru Yamada the
responsibility, dedication and loyalty that the average American holds
to be virtuous.''

Second, Mr. Yamada has distinguished himself as a local volunteer. As
a member of the Eastlake High School Link Crew, he helped freshman find
their way around campus, offered tutoring and mentoring services, and
set an example of how to be a successful member of the student body.
After graduating from high school, he volunteered his time for 4 years
as the coach of the Eastlake High School Girl's softball team. The
former head coach, who has since retired, Dr. Charles Sorge, describes
him as an individual full of ``integrity'' who understands that as a
coach it is important to work as a ``team player.'' His level of
commitment to the team was further illustrated to Dr. Sorge when he
discovered, halfway through the season, that Mr. Yamada's commute to
and from practice was 2 hours long each way. It takes an individual
with character to volunteer his time to coach and never bring up the
issue of how long his commute takes him each day. Dr. Sorge hopes that,
once Mr. Yamada legalizes his immigration status, he will be formally
hired to continue coaching the team.
Third, sending Mr. Yamada back to Japan would be an immense hardship
for him and his family here. Mr. Yamada does not speak Japanese. He is
unaware of the nation's current cultural trends. And, he has no
immediate family members that he knows of in Japan. Currently, both of
his sisters are in the process of legalizing their immigration status
in the United States. His older sister is married to a United States
citizen and his younger sister is being adopted by a maternal aunt, who
is a United States citizen. Since as all of his family lives in
California, sending Mr. Yamada back to Japan would serve to split his
family apart and separate him from everyone and everything that he
knows. His sister contends that her younger brother would be ``lost''
if he had to return to live in Japan on his own. It is unlikely that he
would be able to find any gainful employment in Japan due to his
inability to speak or read the language.
As a member of the Chula Vista community, Mr. Yamada has
distinguished himself as an honorable individual. His teacher, Mr.
Robert Hughes, describes him as being an ``upstanding `All-American'
young man''. Until being picked up during a routine check of riders'
immigration status on a city bus, he had never been arrested or
convicted of any crime. Mr. Yamada is not, and has never been, a burden
on the State. He has never received any Federal or State assistance.
Currently, Mr. Yamada holds sophomore status at Southwestern
Community College. However, he is taking this semester off in order to
alleviate his financial burdens by working full time. He had hoped to
pursue a career in law enforcement, but his plans have recently changed
due to his current immigration status dilemma. Until he obtains
citizenship, Mr. Yamada will be prohibited from pursuing a career in
law enforcement. Due to the circumstances, Mr. Yamada has changed his
career goal to that of becoming a high school teacher. Mr. Yamada's
commitment to his education is admirable. He could have easily taken a
different path but, through his own ``individual fortitude,'' he has
dedicated himself to his studies so that he can live a better life.
With his hard work and giving attitude, Shigeru Yamada represents the
ideal American citizen. Although born in Japan, he is truly American in
every other sense. I ask you to help right a wrong and grant Mr. Yamada
lawful permanent resident status so that he can continue towards his
bright future.
Given these extraordinary and unique facts, I ask my colleagues to
support this private relief bill on behalf of Mr. Yamada.
I ask unanimous consent that the text of the bill be printed in the
Record and that the three letters of community support be printed in
the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 111

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. PERMANENT RESIDENT STATUS FOR SHIGERU YAMADA.

(a) In General.--Notwithstanding subsections (a) and (b) of
section 201 of the Immigration and Nationality Act (8 U.S.C.
1151), Shigeru Yamada shall be eligible for issuance of an
immigrant visa or for adjustment of status to that of an
alien lawfully admitted for permanent residence upon filing
an application for issuance of an immigrant visa under
section 204 of that Act or for adjustment of status to lawful
permanent resident.
(b) Adjustment of Status.--If Shigeru Yamada enters the
United States before the filing deadline specified in
subsection (c), Shigeru Yamada shall be considered to have
entered and remained lawfully and shall be eligible for
adjustment of status under section 245 of the Immigration and
Nationality Act (8 U.S.C. 1255) as of the date of enactment
of this Act.
(c) Deadline for Application and Payment of Fees.--
Subsections (a) and (b) shall apply only if the application
for issuance of an immigrant visa or the application for
adjustment of status is filed with appropriate fees within 2
years after the date of enactment of this Act.
(d) Reduction of Immigrant Visa Numbers.--Upon the granting
of an immigrant visa or permanent residence to Shigeru
Yamada, the Secretary of State shall instruct the proper
officer to reduce by 1, during the current or next following
fiscal year, the total number of immigrant visas that are
made available to natives of the country of birth of Shigeru
Yamada under section 203(a) of the Immigration and
Nationality Act or, if applicable, the total number of
immigrant visas that are made available to natives of the
country of birth of Shigeru Yamada under section 202(e) of
that Act.

Eastlake High School,

Chula Vista, CA, January 17, 2005.
Senator Dianne Feinstein,
U.S. Senate,
Washington, DC.
Dear Senator Feinstein: I am more than happy to write this
letter on behalf of Shigeru Yamada as he pursues his efforts
to stay in the United States. I was Shigeru's counselor while
he attended Eastlake High School. During that time he always
displayed exemplary behavior, academic focus, and personal
determination.
Academically Shigeru was a model student. He earned a 3.84
grade point average; he made the National Honor Roll and was
nominated to Who's Who Among High School Students for three
straight years. Shigeru plans to attend a university to study
sports medicine and physical therapy so he has set high goals
for himself. He has the ability to not only handle college-
level work, but to thrive on the challenge the university
will

[[Page S285]]

bring. His quiet determination has been an example to his
peers and was a joy to his instructors.
Shigeru Yamada not only took the most from his high school
experience, but he has consistently ``given back'' his
talents, time, and effort to serve the school community. He
was elected ASB vice-president during his senior year. He
demonstrated leadership skills as president of the Inter-Club
Council on campus; he mentored incoming ninth-grade students
and worked on numerous service projects. In addition to his
involvement in student government, Shigeru participated in
football, baseball, and wrestling. He was named ``Most
Inspirational Player of the Year'' for both his junior
varsity baseball and football teams. He was also awarded the
J.T. Franks Memorial Award (most inspirational) from the
varsity football team. (This award carries a great deal of
respect amongst the players as it is named after a teammate
who died of cancer.) Shigeru was a role model for our
students when he attended our school: He earned good grades;
he was an athlete; and he was involved in a variety of
additional activities. He is the kind of student that
Eastlake High School has been proud to have.
A further testimony to Shigeru's character is what he has
been doing since graduating. This young man has come back to
serve as an assistant football and wrestling coach for our
students. He gives his time and energy to working with
individual students during the week and on weekends; he not
only advises them on how to improve their athletic skills,
but he is also a wonderful role model and mentor. He is
someone to whom the young men can relate, a person whose
opinions are valued. I have personally seen Shigeru interact
with these boys; the respect he gives them and the respect
they give Shigeru is an absolute indication of the positive
influence he has in their lives.
Shigeru is seeking permanent resident status in the United
States through a private bill that you have agreed to
sponsor. Were his mother still alive, his residency would not
be in question. However, since she died a few years ago in a
car accident, Shigeru has had to get through high school
without her guidance and support, and now his future in the
United States is in jeopardy. Shigeru Yamada has already
proven himself to be a hard-working, law-abiding, goal-
oriented young man. He has already proven himself to be a
productive member of society. And, most importantly, Shigeru
wants to not only take the best this society has to offer,
but to also give back to the society to make it a better
place for those around him.
Perhaps the best endorsement that I can give is that I
would be proud to claim Shigeru Yamada as my son. He embodies
all the qualities that I have tried to instill in my own
sons. Please, I urge you to submit the bill that would give
Shigeru Yamada permanent residency in the United States. He
will represent all of us well.
Sincerely,
Ann M. Stevens,
Asst. Principal.
____

Eastlake High School,

Chula Vista, CA, January 13, 2005.
Hon. Dianne Feinstein: I am writing to bring to your
attention the need to support a fine young man, Shigeru
Yamada. I am a teacher and coach at Eastlake High School; I
have known Shigeru for 8 years, both as a student and as a
volunteer coach during the last 5 years. What has singularly
impressed me about this young man is that he has created
himself and never complained about his life's struggles. His
mother died when he was young. He got little support from his
aunt--materially, emotionally, spiritually. Yet all the while
you would not have known that. He set goals for himself
academically and athletically; modeled himself on good ideals
of community service and service to his school. He was vice-
president of the Associated Student Body at Eastlake High and
would have pursued an academic future at UCLA were it not for
his citizenship status. Instead, he did what he could do and
has gone to community college in an effort to pursue his
college degree.
All the while, he volunteered his time during these past 5
years to help coach our school's softball team (as well as
other sports on campus). It was only recently that I had
discovered that it would take him 2 hours with bus transfers
just to get to softball practice.
I provide this information to you as a testimonial to the
character of this young man. Exceptional in attitude and
determination. We need this kind of spirit and resolve in
America. We do not want to export it somewhere else. Please
help.
Respectfully,

Charles R. Sorge,

Ed.D., English Teacher and
Head Softball Coach.
____

Eastlake High School,

Associated Student Body,

Chula Vista, CA, January 14, 2005.
Congressman Filner: Please consider the reintroduction of
the private bill for permanent residency on behalf of Shigeru
Yamada. He is a most outstanding person, with character
second to none. Shigeru Yamada has no ties, nor any cultural
background with Japan. Since he has been raised in the United
States for the past 12 years out of his 22 years, he is not
able to communicate in the Japanese language. Therefore, to
throw Shiguru back into a world of confusion will not only be
a tragic event for him, but a loss for the United States and
the Chula Vista community.
Once again we cannot lose a strong member of this society.
Please consider his request for sponsorship.
Sincerely,
Bob Barrett,
Assistant Principal.
______

By Mrs. FEINSTEIN:
S. 112. A bill for the relief of Denes Fulop and Gyorgyi Fulop; to
the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I offer today a private immigration
relief bill to provide lawful permanent residence status to Denes and
Gyorgyi Fulop, Hungarian nationals who have lived in California for
more than 20 years. The Fulops are the parents of six U.S. citizen
children. Today, they face deportation having exhausted all
administrative remedies under our immigration system.
The Fulop's story is a compelling one and one which I believe merits
Congress' consideration for humanitarian relief.
The most poignant tragedy to affect this family occurred in May 2000,
when the Fulops eldest child, Robert ``Bobby'' Fulop, an accomplished
15 year-old teenager, died suddenly of a heart aneurism. Bobby was
considered the shining star of his family.
That same year their six-year-old daughter, Elizabeth, was diagnosed
with moderate pulmonary stenosis, a potentially life-threatening heart
condition and a frightening situation similar to Bobby's. Not long ago,
she successfully underwent heart surgery, but requires medical
supervision to ensure her good health.
The Fulop's youngest child, Matthew, was born seven weeks premature.
He subsequently underwent several kidney surgeries and is still being
closely monitored by physicians.
Compounding these tragedies is the fact that today the Fulops face
deportation. They face deportation, in part, because in 1995 the family
traveled to Hungary and remained there for more than 90 days. Under the
pre-1996 immigration law, prior to the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996, their stay in Hungary would not
have been a factor in their immigration case and they would have been
eligible for adjustment of status to lawful permanent residents.
Indeed, in 1996, Mr. and Mrs. Fulop applied to the Immigration and
Naturalization Service, INS, for permanent resident status. Due to
large backlogs, the INS did not interview them until 1998. By the time
their applications were considered, the new 1996 immigration law had
taken effect. Given their one-time 90 day trip outside the United
States, they were statutorily ineligible for relief pursuant to the
cancellation of removal provisions of the Immigration and Nationality
Act.
One cannot help but conclude that had the INS acted on the Fulop's
application for relief from deportation in a timelier manner, they
would have qualified for suspension of deportation under the pre-1996
law, given that they were long-term residents of the United States with
U.S. Citizen children and many positive factors in their favor.
The irony of this situation is that the Fulops were gone from the
United States for nearly five months in 1995 because they traveled to
Hungary to help Mr. Fulop's brother build his home. Mr. Fulop's brother
is handicap and they went to help remodel his home.
The Fulops are good and decent people. Mr. Fulop is a masonry
contractor and the owner and president of his own construction
company--Sumeg International. He has owned this business for 10 years
and currently has three full-time employees.
The couple are active in their church and community. As Pastor Peter
Petrovic of the Apostolic Christian Church of San Diego says in his
letter of support, ``[t]he family is an exceptional asset to their
community.'' Mrs. Fulop has served as a Sunday school teacher and
volunteers regularly at Heritage K-8 Charter School in Escondido. Mrs.
Morris, a Heritage K-8 Charter School faculty member says in her letter
of support that Mrs. Fulop is
``. . . a valuable asset to our school and community.''
Mr. President, this is a tragic situation. Essentially, as happened
to many families under the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996, the rules of the game were

[[Page S286]]

changed in the middle. When the Fulops applied for relief from
deportation they were eligible for suspension of deportation. By the
time the INS got around to their application, nearly three years later,
they were no longer eligible and in fact suspension of deportation as a
form of relief ceased to exist.
The Fulops today have been in the United States since the early
1980s. Most harmful is the effect that their deportation will have on
the children, all of whom were born here and who range from one year
old to 17 years of age. Their eldest, Dennis, is a 4.0 honor student at
Palomar Community College having graduated from high school one year
early. His sister, Linda, has a 3.8 grade point average and is an honor
student in high school.
It is my hope that Congress sees fit to provide an opportunity for
this family to remain together in the United States given their many
years here, the profound sadness they have already experienced and the
harm that would come from their deportation to their six U.S. citizen
children.
Mr. President, I ask unanimous consent that the text of the bill and
three letters be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 112

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. ADJUSTMENT OF STATUS.

(a) In General.--Notwithstanding any other provision of law
or any order, for the purposes of the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), Denes Fulop and
Gyorgyi Fulop shall be deemed to have been lawfully admitted
to, and remained in, the United States, and shall be eligible
for issuance of an immigrant visa or for adjustment of status
under section 245 of the Immigration and Nationality Act (8
U.S.C. 1255).
(b) Application and Payment of Fees.--Subsection (a) shall
apply only if the applications for issuance of immigrant
visas or the applications for adjustment of status are filed
with appropriate fees within 2 years after the date of
enactment of this Act.
(c) Reduction of Immigrant Visa Numbers.--Upon the granting
of immigrant visas to Denes Fulop and Gyorgyi Fulop, the
Secretary of State shall instruct the proper officer to
reduce by 2, during the current or subsequent fiscal year,
the total number of immigrant visas that are made available
to natives of the country of the aliens' birth under section
202(e) or 203(a) of the Immigration and Nationality Act (8
U.S.C. 1152(e), 1153(a)), as applicable.

Apostolic Christian Church

of San Diego,

Escondido, CA, January 14, 2005.
Re the Denes Fulop Family.

To Whom It May Concern: My family and I have known Denes
and Joy Fulop for many years. They have been members in good
standing in our church for approximately 20 years. Denes has
served the congregation faithfully in many capacities. He was
a building committee member during the construction of our
church 10 years ago. He also served as church treasurer for
four years and Sunday School Superintendent for many years.
Presently he is a member on the board of trustees.
Joy Fulop was a building sub-committee member during the
construction of the church and also served for a few years as
a Sunday school teacher. Joy is a devoted and committed
homemaker, and a wonderful example of a loving mother and
wife. Their three younger children, Elizabeth, Sarah and
Abigail are actively involved in Sunday school and in various
youth group activities. The two oldest, Denny and Linda, are
also active in the church. They are very diligent and
excellent students in High School and outstanding citizens.
The family is an exceptional asset to their community.
Denes has been self-employed for many years and is a
knowledgeable and successful contractor. Their family has
never depended on any government aid, but rather contributes
and shares their blessings with others. Denes, Joy, and their
six children are truly an asset to our church and community.
Should you have any further questions, please don't
hesitate to contact me.
Respectfully submitted,
Peter Petrovic,
Pastor.
____

Heritage K-8 Charter School,

Escondido, CA, January 14, 2005.
Dear Members of Congress, I am writing this letter on
behalf of the Fulop Family. I want to express my deep
appreciation for Mrs. Fulop's involvement at our elementary
school.
Abigail Fulop is a successful kindergarten student in my
class who performs above grade level. Sarah and Elizabeth
Fulop attend Heritage charter as well and are outstanding
students.
Mrs. Fulop volunteers on a regular basis in my kindergarten
classroom helping students become better readers. She takes a
reading group and works on reading strategies that increase
student' learning. She also takes time to volunteer in her
daughter Sarah's class. Her time and effort fosters a
learning environment. Recently she participated in a cooking
demonstration for the class. She also takes time out of her
busy schedule to help her daughter's third grade teacher plan
and prepare for field trips.
In all these things I have confidence that she is a
valuable asset to our school and community. Please consider
supporting their desire to remain with us. Please feel free
to contact me with any questions.
Sincerely,
Mrs. Morris.
____

R. Rimmer Construction Inc.,

Cardiff, CA, January 13, 2005.
To Whom It May Concern: The purpose of this letter is to
describe my relationship with Dennis Fulop, whom I have known
for approximately twenty-two years.
As a building contractor in the San Diego area I have been
fortunate to have worked with Dennis for most of those years.
He has constructed nearly all of the foundations for the room
additions and new houses that I have built. Dennis has also
constructed most of the driveways, sidewalks, retaining
walls, fireplaces and masonry on my projects. He has also
attended to much of my finish grading, drainage and backhoe
construction needs.
Dennis has long been an invaluable member of my
construction ``team''. He is very knowledgeable in nearly all
construction matters. He has always been very reliable and
responsible in meeting deadlines and upholding high standards
of construction quality.
Dennis is also a very successful small business owner. He
has his own credit accounts with all of the necessary
construction suppliers and to my knowledge has always paid
his bills in a timely manner. In fact, I have never been
contacted or liened by any of his suppliers to date. Dennis
is also very proficient at managing and providing work for
his employees.
Dennis's wife Joy is a dedicated wife and mother to their
six children.
I am very thankful to know the Fulop family personally and
I can attest that their values and deeply held convictions
make them valuable contributors to their local community and
society as a whole.
Sincerely,
Ron Rimmer,
President.
______

By Mrs. FEINSTEIN:
S. 113. A bill to modify the date as of which certain tribal land of
the Lytton Rancheria of California is deemed to be held in trust; to
the Committee on Indian Affairs.
Mr. President, I rise today to introduce legislation that would
strike a small provision in the Omnibus Indian Advancement Act of 2000;
language that circumvents the Indian Gaming Regulatory Act's common-
sense protections and safeguards against the inappropriate siting of
Nevada-style casinos.
In December 2000, a one-paragraph provision was attached to the
Omnibus Indian Advancement Act taking land into trust for a single
Indian tribe--the Lytton--with the aim of allowing the tribe to bypass
the federal and state review process and expedite plans to establish a
large, off-reservation gaming complex in an urban area near San
Francisco. Most astoundingly, this provision included a clause which
mandated that the Secretary of Interior backdate the acquisition of
this land to October 17, 1988--despite the fact that the land was
actually taken into trust in 2004. This backdating permitted the tribe
to completely circumvent the Indian Gaming Regulatory Act's
requirements for gaming on newly acquired lands and avoid an important
consultative process prescribed in federal law.
Today California is home to 110 federally recognized tribes. Sixty-
six tribes have gaming compacts with the state and there are 57 tribal
casinos. With more than 50 tribes seeking federal recognition and
approximately 25 recognized tribes seeking gaming compacts from the
Governor, revenues from California's tribal gaming industry are
expected to be the highest of any state's by the end of the decade.
According to the latest statistics released by the National Indian
Gaming Commission, in 2003 California by itself accounted for about
half of the increase in gaming revenues nationwide.
Mr. President, I have serious reservations about the expansion of
Nevada-style gaming--with its slot machines and in-house banking--into
urban areas, and I am particularly concerned about off-reservation
gambling and ``reservation shopping''. Off-reservation casinos often
cause counties additional costs in public and local services, intrude
on residential areas, and are responsible for an increase of traffic
and crime within local communities.

[[Page S287]]

That is why Section 20 of the Indian Gaming Regulatory Act requires
that tribes complete a ``two-part determination'' process prior to
engaging in Class III gaming on newly acquired, or off-reservation
lands. Under this law, tribes seeking to game on lands acquired after
October 17, 1988, must receive the approval of both the state Governor
and the Secretary of the Interior. In addition, this process requires
that the Secretary of the Interior consult with local communities and
nearby tribes before making a final decision in these cases.
In August 2004, the Lytton tribe and the Governor of my state reached
an agreement on a compact that would have permitted the development of
a 6-8 story casino housing 5,000 slot machines. Notably, this would be
the largest inventory of slot machines found in any casino outside of
Connecticut. After the State Legislature balked at approving this
massive deal, the Governor and the tribe agreed to put forward a
revised compact that would allow for a 2,500 slot casino, while
permitting the tribe to negotiate for additional slots in 2008. This
latest proposal remains unratified by the State Legislature.
Mr. President, without this legislation, the Lytton tribe will be
able to open a massive gambling complex in a metropolitan area outside
the regulations set up by the Indian Gaming Regulatory Act. Allowing
this to happen would set a dangerous precedent not only for California,
but every state where tribal gaming is permitted.
The changes I seek today are extremely limited. This legislation
would not reverse restoration of the tribe. It would not infringe on
Native American sovereignty. It does not affect the land acquisition or
even block the casino proposal. It only seeks to give the State and the
local communities a voice in the process and ensure that gaming
continues to be organized within the framework of the Indian Gaming
Regulatory Act.
The Indian Gaming Regulatory Act has provided this Nation with a fair
and balanced approach to Indian gaming by facilitating tribal plans for
economic recovery without compromising a multitude of factors that
should be taken into account when deciding on the siting of casinos.
This law works. It is a fair process that should continue to be
followed.
It is simply not asking too much to require that Lytton be subject to
the regulatory and approval processes applicable to newly acquired
tribal lands by the Indian Gaming Regulatory Act.
I hope my colleagues will support this legislation and I look forward
to working with the Chairman and Ranking Member of the Indian Affairs
Committee to pass this legislation quickly.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 113

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. LYTTON RANCHERIA OF CALIFORNIA.

Section 819 of the Omnibus Indian Advancement Act (114
Stat. 2919) is amended by striking the last sentence.
______

By Mr. KERRY (for himself, Mr. Kennedy, Mrs. Murray, Mr.
Lautenberg, Mr. Corzine, and Ms. Cantwell):
S. 114. A bill to amend titles XIX and XXI of the Social Security Act
to ensure that every uninsured child in America has health insurance
coverage, and for other purposes; to the Committee on Finance.
Mr. KENNEDY. Mr. President, I'm honored to join my friend and
colleague, Senator Kerry, in introducing this legislation to guarantee
affordable health insurance for every child. We made a good start
toward this goal in the 1990s, by enacting the Children's Health
Insurance Program to cover more low-income children. Now it is time to
finish the job.
Twelve million Americans who are twenty-one years old or younger have
no health insurance today. Seven million are already eligible for
Medicaid or CHIP, but five million are not eligible for these current
programs.
Every uninsured child represents a national failure. Every uninsured
child is at risk for losing the healthy start in life that should be
birthright of every American. Every uninsured child is a potential
source of heartbreak for parents and other loved ones. Every uninsured
child is an American tragedy waiting to happen.
This year, three hundred eighty thousand children suffering from
asthma will never see a doctor. Five hundred thousand children with
recurrent earaches will never see a doctor. Five hundred thousand
children with severe sore throats will never see a doctor.
Uninsured children pay for their lack of coverage in human suffering,
unnecessary disability, and even death, and our society pays too. Sick
children cannot learn. Every child whose education is limited or whose
future potential is lost because of avoidable illness is a loss to
America, because America's children are America's future.
The legislation we are introducing today will guarantee coverage for
every child twenty-one years of age or younger. It makes health
insurance affordable for every family, but it also asks families to
share the responsibility of covering their children, when they are able
to do so.
The bill expands Medicaid and CHIP up to 300 percent of poverty.
Families of moderate means will be able to obtain subsidized coverage
for their children. Families with incomes above 300 percent of poverty
will be able to buy into Medicaid or CHIP for their children, and they
will be guaranteed that the cost will not exceed 5 percent of their
family income.
The bill also lifts the cap on CHIP funding that has caused some
States to limit enrollment. It assists States financially by shifting
current State spending for children under 100 percent of poverty to the
Federal government. It requires all States to adopt the proven methods
that encourage families to enroll and stay enrolled--methods such as
presumptive eligibility, the ability to apply on-line or by telephone
for the coverage, and coverage for at least twelve months without
eligibility redeterminations.
This legislation is vitally important to all children. It is a pledge
that they will have access to good health care without regard to their
family's wealth. It is a commitment to a healthy start in life for
every child.
As important as those objectives are, the significance of this
legislation goes beyond coverage of all children. It is a major step
toward the day when the basic right to health care will be a reality
for every American, whatever their age or income. We will not rest
until that goal is achieved, and I commend Senator Kerry for leading
this essential effort.
______

By Mrs. FEINSTEIN:
S. 115. A bill to require Federal agencies, and persons engaged in
interstate commerce, in possession of electronic data containing
personal information, to disclose any unauthorized acquisition of such
information; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I rise to introduce the Notification
of Risk to Personal Data Act of 2005. This legislation will require
that individuals are notified when their most sensitive personal
information is stolen from a corporate or government database. This is
the second Congress in a row that I have introduced this legislation--
it is time for us to pass it to give Americans the notice they need to
protect themselves from identity thieves.
Specifically, the bill would require government or private entities
to notify individuals if a data breach has compromised their Social
Security number, driver's license number, credit card number, debit
card number or financial account numbers.
In most cases, if authorities know that someone is a victim of a
crime, the victim is notified. But, that isn't the case if an
individual's most sensitive personal information is stolen from an
electronic database.
Measuring the problem of security breaches is difficult, because many
companies never report breaches of their systems for fear that their
reputation for securing data would be harmed. But, in a survey
conducted in 2004 by the FBI and the Computer Security Institute, 52
percent of respondents reported some level of unauthorized use of their
computer systems. (Source: 2004 CSI/FBI Computer Crime and Security
Survey)
Data breaches are becoming all too common. Consider the following
incidents which have compromised the

[[Page S288]]

records of hundreds of thousands of Americans.
On January 10, 2005, George Mason University in Fairfax, Virginia
notified 30,000 students that their names, photos and Social Security
numbers were taken by an online intruder; (Source: Cnet news, ``Hackers
Steal ID Info from Virginia University,'' Monday, January 11, 2005)
On August 30, 2004, a University of California-Berkeley database
containing the personal information of 600,000 people was penetrated.
The computer contained names, addresses, telephone numbers, dates of
birth and Social Security numbers; (Source: Associated Press, October
21, 2004)
Already in the new year, cell phone carrier T-Mobile announced that a
hacker broke into its database and accessed the names and Social
Security numbers of 400 customers. (Source: Cnet News, ``Hacker Had
Limited Access'' January 12, 2004)
Last year, San Diego State University reported that hackers broke
into a server, gaining access to names and Social Security numbers for
more than 178,000 former and current students, alumni and staff;
(Source: San Francisco Chronicle, ``Colleges Leaking Confidential
Data,'' April 5, 2004)
At the Georgia Institute of Technology, a hacker downloaded
information that could have included names, addresses, phone numbers
and credit card numbers for about 57,775 people; (Source: San Francisco
Chronicle, ``Colleges Leaking Confidential Data,'' April 5, 2004) and
Finally, in 2004, a Florida man and his employees hacked into Acxiom
Corp.'s computer system for 16 months and stole large amounts of
personal information. Christopher Way, a U.S. assistant attorney
general, said then that the case represents ``what may be the largest
intrusion of personal data ever.'' (Source: Arkansas Democrat-Gazette,
``Hacker Accesses Load of Data from Acxiom,'' July 22, 2004)
My home State of California has a similar data notification law, on
which my bill today is modeled. But this sort of protection needs to be
extended to all Americans.
I strongly believe Americans should be notified if a hacker gets
access to their most personal data. This is both a matter of principle
and a practical measure to curb identity theft.
Let me take a moment to describe the proposed legislation.
The Notification of Risk to Personal Data Act will set a national
standard for notification of consumers when a data breach occurs.
The legislation requires a business or government entity to notify an
individual when there is a reasonable basis to conclude that a hacker
or other criminal has obtained unencrypted personal data maintained by
the entity.
Personal data is defined by the bill as an individual's Social
Security number, State identification number, driver's license number,
financial account number, or credit card number.
The legislation's notification scheme minimizes the burdens on
companies or agencies that must report a data breach. In general,
notice would have to be provided to each person whose data was
compromised in writing or through e-mail.
But there are important exceptions.
First, companies that have developed their own reasonable
notification policies are given a safe harbor under the bill and are
exempted from its notification requirements.
Second, encrypted data is exempted.
Third, where it is too expensive or impractical (e.g., contact
address information is incomplete) to notify every individual who is
harmed, the bill allows entities to send out an alternative form of
notice called ``substitute notice.'' Substitute notice includes posting
notice on a website or notifying major media. Substitute notice would
be triggered if any of the following factors exist:
(i) the agency or person demonstrates that the cost of providing
direct notice would exceed $250,000;
(ii) the affected class of subject persons to be notified exceeds
500,000; or
(iii) the agency or person does not have sufficient contact
information to notify people whose information is at risk.
The bill has a tough, but fair enforcement regime. Entities that fail
to comply with the bill will be subject to fines by the Federal Trade
Commission of $5,000 per violation or up to $25,000 per day while the
violation persists. State Attorneys General can also file suit to
enforce the statute.
Additionally, the bill would allow California's law to remain in
effect, but preempt conflicting state laws. It is my understanding that
legislators in a number of states are developing bills modeled after
the California law. Reportedly, some of these bills have requirements
that are inconsistent with the California legislation. It is not fair
to put companies in a situation that forces them to comply with
database notification laws of 50 different states.
A year after California's landmark legislation went into effect, the
law has raised overall awareness of the need to have strong privacy
protections in place. Chris Jay Hoofnagle, associate director of the
nonprofit Electronic Privacy Information Center, said: ``the California
law has given the public a window into a very serious problem of
information security.'' (Source: Associated Press, ``Authorities Probe
U.C. Hacking Attack,'' October 21, 2004)
As Beth Givens, director of the Privacy Rights Clearinghouse, points
out ``if [California] didn't have this law, the vast majority of these
situations would go unreported.'' (Source: The Orange County Register,
``Ingram Micro Discloses Database Break-In,'' May 15, 2004)
I strongly believe individuals have a right to be notified when their
most sensitive information is compromised--because it is truly their
information. Ask the ordinary person on the street if he or she would
like to know if a criminal had illegally gained access to their
personal information from a database--the answer will be a resounding
yes.
Enabling consumers to be notified in a timely manner of security
breaches involving their personal data will help combat the growing
scourge of identity theft. If individuals are informed of the theft of
their Social Security numbers or other sensitive information, they can
take immediate preventative action.
They can place a fraud alert on their credit report to prevent crooks
from obtaining credit cards in their name;
They can monitor their credit reports to see if unauthorized activity
has occurred;
They can cancel any affected financial or consumer or utility
accounts; and
They can change their phone numbers if necessary.
I look forward to working with my colleagues to pass this vitally
needed legislation. This bill will give ordinary Americans more control
and confidence about the safety of their personal information.
Americans will have the security of knowing that should a breach occur,
they will be notified and be able to take protective action. Thank you,
Mr. President.
I ask unanimous consent that the text of the legislation be printed
in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 115

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Notification of Risk to
Personal Data Act''.

SEC. 2. DEFINITIONS.

In this Act, the following definitions shall apply:
(1) Agency.--The term ``agency'' has the same meaning given
such term in section 551(1) of title 5, United States Code.
(2) Breach of security of the system.--The term ``breach of
security of the system''--
(A) means the compromise of the security, confidentiality,
or integrity of computerized data that results in, or there
is a reasonable basis to conclude has resulted in, the
unauthorized acquisition of and access to personal
information maintained by the person or business; and
(B) does not include good faith acquisition of personal
information by an employee or agent of the person or business
for the purposes of the person or business, if the personal
information is not used or subject to further unauthorized
disclosure.
(3) Person.--The term ``person'' has the same meaning given
such term in section 551(2) of title 5, United States Code.
(4) Personal information.--The term ``personal
information'' means an individual's last name in combination
with any 1 or more of the following data elements, when
either the name or the data elements are not encrypted:

[[Page S289]]

(A) Social security number.
(B) Driver's license number or State identification number.
(C) Account number, credit or debit card number, in
combination with any required security code, access code, or
password that would permit access to an individual's
financial account.
(5) Substitute notice.--The term ``substitute notice''
means--
(A) e-mail notice, if the agency or person has an e-mail
address for the subject persons;
(B) conspicuous posting of the notice on the Internet site
of the agency or person, if the agency or person maintains an
Internet site; or
(C) notification to major media.

SEC. 3. DATABASE SECURITY.

(a) Disclosure of Security Breach.--
(1) In general.--Any agency, or person engaged in
interstate commerce, that owns or licenses electronic data
containing personal information shall, following the
discovery of a breach of security of the system containing
such data, notify any resident of the United States whose
unencrypted personal information was, or is reasonably
believed to have been, acquired by an unauthorized person.
(2) Notification of owner or licensee.--Any agency, or
person engaged in interstate commerce, in possession of
electronic data containing personal information that the
agency does not own or license shall notify the owner or
licensee of the information if the personal information was,
or is reasonably believed to have been, acquired by an
unauthorized person through a breach of security of the
system containing such data.
(3) Timeliness of notification.--Except as provided in
paragraph (4), all notifications required under paragraph (1)
or (2) shall be made as expediently as possible and without
unreasonable delay following--
(A) the discovery by the agency or person of a breach of
security of the system; and
(B) any measures necessary to determine the scope of the
breach, prevent further disclosures, and restore the
reasonable integrity of the data system.
(4) Delay of notification authorized for law enforcement
purposes.--If a law enforcement agency determines that the
notification required under this subsection would impede a
criminal investigation, such notification may be delayed
until such law enforcement agency determines that the
notification will no longer compromise such investigation.
(5) Methods of notice.--An agency, or person engaged in
interstate commerce, shall be in compliance with this
subsection if it provides the resident, owner, or licensee,
as appropriate, with--
(A) written notification;
(B) e-mail notice, if the person or business has an e-mail
address for the subject person; or
(C) substitute notice, if--
(i) the agency or person demonstrates that the cost of
providing direct notice would exceed $250,000;
(ii) the affected class of subject persons to be notified
exceeds 500,000; or
(iii) the agency or person does not have sufficient contact
information for those to be notified.
(6) Alternative notification procedures.--Notwithstanding
any other obligation under this subsection, an agency, or
person engaged in interstate commerce, shall be deemed to be
in compliance with this subsection if the agency or person--
(A) maintains its own reasonable notification procedures as
part of an information security policy for the treatment of
personal information; and
(B) notifies subject persons in accordance with its
information security policy in the event of a breach of
security of the system.
(7) Reasonable notification procedures.--As used in
paragraph (6), with respect to a breach of security of the
system involving personal information described in section
2(4)(C), the term ``reasonable notification procedures''
means procedures that--
(A) use a security program reasonably designed to block
unauthorized transactions before they are charged to the
customer's account;
(B) provide for notice to be given by the owner or licensee
of the database, or another party acting on behalf of such
owner or licensee, after the security program indicates that
the breach of security of the system has resulted in fraud or
unauthorized transactions, but does not necessarily require
notice in other circumstances; and
(C) are subject to examination for compliance with the
requirements of this Act by 1 or more Federal functional
regulators (as defined in section 509 of the Gramm-Leach
Bliley Act (15 U.S.C. 6809)), with respect to the operation
of the security program and the notification procedures.
(b) Civil Remedies.--
(1) Penalties.--Any agency, or person engaged in interstate
commerce, that violates this section shall be subject to a
fine of not more than $5,000 per violation, to a maximum of
$25,000 per day while such violations persist.
(2) Equitable relief.--Any person engaged in interstate
commerce that violates, proposes to violate, or has violated
this section may be enjoined from further violations by a
court of competent jurisdiction.
(3) Other rights and remedies.--The rights and remedies
available under this subsection are cumulative and shall not
affect any other rights and remedies available under law.
(c) Enforcement.--The Federal Trade Commission is
authorized to enforce compliance with this section, including
the assessment of fines under subsection (b)(1).

SEC. 4. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

(a) In General.--
(1) Civil actions.--In any case in which the attorney
general of a State has reason to believe that an interest of
the residents of that State has been or is threatened or
adversely affected by the engagement of any person in a
practice that is prohibited under this Act, the State, as
parens patriae, may bring a civil action on behalf of the
residents of the State in a district court of the United
States of appropriate jurisdiction to--
(A) enjoin that practice;
(B) enforce compliance with this Act;
(C) obtain damage, restitution, or other compensation on
behalf of residents of the State; or
(D) obtain such other relief as the court may consider to
be appropriate.
(2) Notice.--
(A) In general.--Before filing an action under paragraph
(1), the attorney general of the State involved shall provide
to the Attorney General--
(i) written notice of the action; and
(ii) a copy of the complaint for the action.
(B) Exemption.--
(i) In general.--Subparagraph (A) shall not apply with
respect to the filing of an action by an attorney general of
a State under this subsection, if the State attorney general
determines that it is not feasible to provide the notice
described in such subparagraph before the filing of the
action.
(ii) Notification.--In an action described in clause (i),
the attorney general of a State shall provide notice and a
copy of the complaint to the Attorney General at the time the
State attorney general files the action.
(b) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this Act shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on such attorney general by
the laws of that State to--
(1) conduct investigations;
(2) administer oaths or affirmations; or
(3) compel the attendance of witnesses or the production of
documentary and other evidence.
(c) Venue; Service of Process.--
(1) Venue.--Any action brought under subsection (a) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
(2) Service of process.--In an action brought under
subsection (a), process may be served in any district in
which the defendant--
(A) is an inhabitant; or
(B) may be found.

SEC. 5. EFFECT ON STATE LAW.

The provisions of this Act shall supersede any inconsistent
provisions of law of any State or unit of local government
relating to the notification of any resident of the United
States of any breach of security of an electronic database
containing such resident's personal information (as defined
in this Act), except as provided under sections 1798.82 and
1798.29 of the California Civil Code.

SEC. 6. EFFECTIVE DATE.

This Act shall take effect on the expiration of the date
which is 6 months after the date of enactment of this Act.
______

By Mrs. FEINSTEIN:
S. 116. A bill to require the consent of an individual prior to the
sale and marketing of such individual's personally identifiable
information, and for other purposes; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I am pleased to re-introduce the
``Privacy Act of 2005.''
This legislation would establish, for the first time, a comprehensive
national system of privacy protection. This is the second Congress in a
row that I have introduced this legislation. Every year that we wait,
millions more Americans become victims of identity theft. It is time
for us to act.
As you know, Mr. President, I have ardently fought for years for
legislation to hamper identity theft. Today, this legislation is one of
three bills that I am introducing to continue that fight. I am also
introducing the Social Security Number Misuse Prevention Act of 2005,
and the Notification of Risk to Personal Data Act of 2005. I urge my
colleagues to pass all of them, to protect Americans from those who
would steal our very identities.
At the heart of this bill is the requirement that companies may not
sell consumers' most intimate personal information unless consumers
affirmatively give their authorization. This is known as ``opt-in.''
Therefore, companies must obtain consumers' written consent prior to
selling their personal health information, financial information,
Social Security numbers, and drivers' license data (opt-in). For this
sensitive data, the bill gives the individual ultimate control over
whether

[[Page S290]]

or not his or her information is shared. If an individual does not
actively decide to permit sharing of personal data, the data is not
disclosed.
The bill recognizes that different sorts of information deserve
different levels of protection. For information that is still personal,
but not as intimate, the bill allows businesses more flexibility.
Therefore, for other personal information--names, physical addresses,
e-mail addresses, telephones, photographs, birth dates, places of
birth, and birth certificate numbers--companies can sell the
information so long as consumers receive notice of the companies'
intent, and an opportunity to object and prohibit the sale of their
information. This is known as ``opt-out.''
That is structure of the overall bill. Let me take a moment to go
over some of the specifics.
For financial data, the Privacy Act would tighten the information-
sharing provisions of the Gramm-Leach-Bliley Act. This legislation
would modify that statute, to prohibit the sale or disclosure of
sensitive personal financial information to third parties unless the
consumer affirmatively consents or opts in. The legislation would also
require that banks let consumers opt out of the sharing of their
personal financial information with the bank's affiliates or joint
partners. The bill makes exceptions for vital public safety concerns.
The Privacy Act of 2005 also prohibits banks from denying a customer a
financial product or financial service if the consumer withholds
consent.
For sensitive medical information, this legislation would expand on
the Department of Health and Human Services privacy regulations, by
extending the restrictions placed on ``covered entities'' (health
insurers, health providers, and health care clearinghouses) to ``non-
covered entities'' (business associates, health researchers, schools or
universities, and life insurers). All of those entities will be able to
share information only with the patients' consent.
For Social Security numbers, this bill will prohibit the sale or
display of an individual's Social Security number to the general public
without the individual's express consent, and prohibit federal, state,
and local governments from displaying the numbers on the Internet, or
from printing them on checks and drivers' licenses. This legislation
also recognizes legitimate uses of Social Security numbers, by allowing
the sale of Social Security numbers between businesses, or between the
government and businesses, among other exceptions.
This legislation protects the privacy of information regardless of
the medium through which it is collected. Therefore, it recognizes that
both paper and electronic records are important to protecting the
identities of Americans.
To minimize the regulatory burden of these privacy rules, the bill
sets up a safe harbor so that industries that established approved
policies will be exempt from some regulatory requirements of the
legislation.
To ensure uniformity of the laws across all 50 states, the bill
preempts inconsistent state laws regarding the treatment of non-
sensitive information.
I note that this legislation is modeled on the California Financial
Information Privacy Act, which gives consumers the right to require
their consent before financial companies share their most intimate
data. The plan is a good one for Californians, and it is a good one for
all Americans. The fact that the California law is under assault in the
courts makes it all the more vital that the uniform, national standard
I introduce today becomes law.
I want to give a sense of why this legislation is so necessary.
Recent statistics on the growth of identity theft show we have no time
to waste in protecting personal privacy.
For years, identity theft has topped the list of complaints reported
to the Federal Trade Commission. In 2003, the Commission received over
half a million such complaints, about 42 percent of the total. While
the FTC will not report its numbers for 2004 until early February, I
unfortunately expect to again see identity theft as the cause of the
most complaints.
According to a 2003 report from the FTC, 10 million Americans
discovered that year their identities had been stolen. The report also
stated that consumers have to spend an average of 30 hours to clear
their name; The Identity Theft Resource Center puts the number at 175
hours. And as Attorney General John Ashcroft said last August,
``Identity theft costs the nation's businesses nearly $50 billion a
year in fraudulent transactions and often involves coordinated criminal
conduct.''
My own State, California, has more victims of identity theft than any
other state. The FTC recorded 39,452 complaints of identity theft cases
in 2003 in California alone.
But the numbers tell only part of the story. More important are the
individual people whose lives have been devastated by identity theft.
Let me tell just one story that I find particularly disturbing:
Eric Drew was a patient in a hospital receiving a bone marrow
transplant. Yet unbeknownst to him, a worker in the hospital had stolen
Drew's identity, and had taken advantage of this sick patient. As the
Associated Press reported, ``Drew said that while he was lying in a
hospital bed, dying from cancer and weak from massive doses of
chemotherapy, he began to get mail thanking him for opening accounts he
knew nothing about.'' In this case, luckily, the criminal was caught
and convicted.
Since I introduced this legislation for the first time in the 108th
Congress, there are millions more stories like this one.
Indeed, there are also new common methods of identity theft. There
has been a massive upswing in the phenomenon known as ``Phishing,'' in
which criminals send emails to people, spoofed to fraudulently look
like emails from banks and other financial institutions. These emails
tell consumers to click on a Web page, and then to enter their name,
account numbers, passwords, and other sensitive financial information.
The criminals then use this information not only to steal from the
unwitting consumers, but to literally lock them out of their own
accounts. This one sort of identity theft has, according to a December
study from e-mail security company MessageLabs, increased by almost
tenfold over the last year.
Given the grave risks that technology poses to our privacy, it is our
responsibility to start taking action. This is especially the case for
older Americans, who are disproportionately vulnerable to identity
theft, as I tried to highlight last year by cosponsoring the
``Protecting Older Americans From Fraud Month'' resolution last
October.
I would like to highlight some of the key provisions of the law.
For financial information this legislation tightens the privacy
provisions of the Financial Services Modernization Act, commonly known
as the Gramm-Leach-Bliley Act. Under Gramm-Leach-Bliley, a bank can
share a customer's personal information with other companies so long as
it gives consumers notice and the right to opt-out of the data sharing.
The problem with the prevailing opt-out is that most people throw
away their privacy notices from banks along with the rest of the
unrelenting pile of commercial solicitations they receive. Since the
passage of Gramm-Leach-Bliley, banks have sent out over one billion
privacy notices.
According to available published information, fewer than 5 percent of
bank customers have opted out of sharing their personal information,
and for many financial institutions, the response rate has been less
than one percent.
Accordingly, this legislation prohibits the sale or disclosure of
sensitive personal financial information to third parties unless the
consumer affirmatively consents or opts in--the burden thus shifts off
of the consumer.
This legislation also toughens Federal financial privacy laws for
affiliate-sharing and joint-marketing. An affiliate is a company that
is linked by common ownership with another company. Under Federal law,
a bank can share with affiliates or joint marketing partners regardless
of whether the consumer wants this information shared.
This legislation would require that banks give consumers the option
of opting out of the sharing of their personal financial information
with the bank's affiliates or joint partners.
I would also like to describe several other key components of the
financial privacy section.

[[Page S291]]

The bill prohibits banks from denying a customer a financial product
or financial service just because the customer chooses to not disclose
his personal information to third parties, affiliates, or joint venture
partners. However, the bill does allow banks to offer incentives to
customers to encourage them to permit the sharing of their personal
information.
Additionally, the bill permits banks to disclose, but not sell,
personal information to third parties for vital public interest
purposes such as identifying or locating missing and abducted children,
witnesses, criminals and fugitives, parents delinquent in child support
payments, organ and bone marrow donors, pension fund beneficiaries, and
missing heirs.

Just as with financial data, personal health and medical data
deserves the most stringent privacy protections.
The recently adopted Department of Health and Human Services privacy
regulations set a basic opt-in framework for disclosure of health
information. But more can be done to protect patient privacy.
The regulations only prohibit ``covered entities''--namely health
insurers, health providers, and health care clearinghouse--from selling
a patient's health information without that patient's prior consent.
Meanwhile, non-covered entities--such as business associates, health
researchers, schools or universities, and life insurers--are not
subject to this opt-in requirement, except through contractual
arrangements.
This legislation would preserve the privacy of health information
wherever the information is sold. Any business associate, life insurer,
school or non-covered entity trying to sell or market protected health
information would, like covered entities, have to get the patient's
prior consent. This is a crucial step to protect what is truly our most
intimate information.
Drivers' license data also are given the strongest level of
protection under this bill.
The Driver's Privacy Protection Act, DPPA was amended in 2000 to
offer some meaningful protections for drivers' privacy.
For example, under the DPPA, a State Department of Motor Vehicles
must obtain the prior consent (opt-in) of the driver before ``highly
sensitive information''--defined as a physical copy of the license, a
Social Security number, medical or disability information, and other
information can be disclosed to a third party.
However, loopholes remain. Other sensitive information found on a
driver's license deserves equal protection.
This legislation would expand the definition of ``highly sensitive
information'' to include a physical copy of a driver's license, the
driver identification number, birth date, information on the driver's
physical characteristics and any biometric identifiers, such as a
fingerprint, that are found on the driver's license.
Thus, this bill would ensure consumers have control over how their
motor vehicle records and driver's license data are used.
I would like to take a moment to highlight the Social Security number
section of this legislation. I have also introduced this section as a
stand-alone bill, the ``Social Security Number Misuse Prevention Act of
2005.''
It is crucial to protect Social Security numbers because Social
Security numbers are the key to a person's identity. Many identity
theft cases start with the theft of a Social Security number. Once a
thief has access to a victim's Social Security number, it is only a
short step to acquiring credit cards, driver's licenses, or other
crucial identification documents.
This legislation bars the sale or display of Social Security numbers
to the public except in a very narrow set of circumstances. In general
display or sale is permitted only if the Social Security number holder
affirmatively consents or if there are compelling public safety needs.
Government entities will have to redact Social Security numbers from
electronic records that are readily available to the public on the
Internet. State governments will no longer be permitted to use the
Social Security number as the default driver's license number.
The legislation, however, recognizes that some industries rely on
Social Security numbers to exchange information for certain
transactions.
Thus, the bill directs the Attorney General to develop regulations
allowing for the sale or purchase of Social Security Numbers to
facilitate business-to-business and business-to-government
transactions, so long as businesses put appropriate safeguards in place
and do not permit public access to the number.
This legislation codifies steps Congress can take to protect citizens
from identity thieves and other predators of personal information.
It restores to an individual more control over her most sensitive
personal information, such as Social Security numbers, health
information, and financial information. It also sets reasonable
guidelines for businesses that handle our personal information every
day. Every American has a fundamental right to privacy, no matter how
fast our technology grows or changes.
Last year, President Bush signed into law the Identity Theft Penalty
Enhancement Act, legislation that I helped to write, to increase
punishment on people who steal others' identities. I am proud of my
work to make that bill into a law. But we all must realize that
punishment is no substitute for prevention. My legislation today will
make fewer suffer from identity theft in the first place.
I look forward to working with my colleagues to enact this
legislation.
I ask unanimous consent that the text of the legislation be printed
in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 116

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Privacy
Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents

TITLE I--COMMERCIAL SALE AND MARKETING OF PERSONALLY IDENTIFIABLE
INFORMATION

Sec. 101. Collection and distribution of personally identifiable
information
Sec. 102. Enforcement
Sec. 103. Safe harbor
Sec. 104. Definitions
Sec. 105. Preemption
Sec. 106. Effective Date

TITLE II--SOCIAL SECURITY NUMBER MISUSE PREVENTION

Sec. 201. Findings
Sec. 202. Prohibition of the display, sale, or purchase of social
security numbers
Sec. 203. Application of prohibition of the display, sale, or purchase
of social security numbers to public records
Sec. 204. Rulemaking authority of the Attorney General
Sec. 205. Treatment of social security numbers on government documents
Sec. 206. Limits on personal disclosure of a social security number for
consumer transactions
Sec. 207. Extension of civil monetary penalties for misuse of a social
security number
Sec. 208. Criminal penalties for the misuse of a social security number
Sec. 209. Civil actions and civil penalties
Sec. 210. Federal injunctive authority

TITLE III--LIMITATIONS ON SALE AND SHARING OF NONPUBLIC PERSONAL
FINANCIAL INFORMATION

Sec. 301. Definition of sale
Sec. 302. Rules applicable to sale of nonpublic personal information
Sec. 303. Exceptions to disclosure prohibition
Sec. 304. Conforming amendments
Sec. 305. Regulatory authority
Sec. 306. Effective date

TITLE IV--LIMITATIONS ON THE PROVISION OF PROTECTED HEALTH INFORMATION

Sec. 401. Definitions
Sec. 402. Prohibition against selling protected health information
Sec. 403. Authorization for sale or marketing of protected health
information by noncovered entities
Sec. 404. Prohibition against retaliation
Sec. 405. Rule of construction
Sec. 406. Regulations
Sec. 407. Enforcement

TITLE V--DRIVER'S LICENSE PRIVACY

Sec. 501. Driver's license privacy

TITLE VI--MISCELLANEOUS

Sec. 601. Enforcement by State Attorneys General
Sec. 602. Federal injunctive authority

TITLE I--COMMERCIAL SALE AND MARKETING OF PERSONALLY IDENTIFIABLE
INFORMATION

SEC. 101. COLLECTION AND DISTRIBUTION OF PERSONALLY
IDENTIFIABLE INFORMATION.

(a) Prohibition.--

[[Page S292]]

(1) In general.--It is unlawful for a commercial entity to
collect personally identifiable information and disclose such
information to any nonaffiliated third party for marketing
purposes or sell such information to any nonaffiliated third
party, unless the commercial entity provides--
(A) notice to the individual to whom the information
relates in accordance with the requirements of subsection
(b); and
(B) an opportunity for such individual to restrict the
disclosure or sale of such information.
(2) Exception.--A commercial entity may collect personally
identifiable information and use such information to market
to potential customers such entity's product.
(b) Notice.--
(1) In general.--A notice under subsection (a) shall
contain statements describing the following:
(A) The identity of the commercial entity collecting the
personally identifiable information.
(B) The types of personally identifiable information that
are being collected on the individual.
(C) How the commercial entity may use such information.
(D) A description of the categories of potential recipients
of such personally identifiable information.
(E) Whether the individual is required to provide
personally identifiable information in order to do business
with the commercial entity.
(F) How an individual may decline to have such personally
identifiable information used or sold as described in
subsection (a).
(2) Time of notice.--Notice shall be conveyed prior to the
sale or use of the personally identifiable information as
described in subsection (a) in such a manner as to allow the
individual a reasonable period of time to consider the notice
and limit such sale or use.
(3) Medium of notice.--The medium for providing notice must
be--
(A) the same medium in which the personally identifiable
information is or will be collected, or a medium approved by
the individual; or
(B) in the case of oral communication, notice may be
conveyed orally or in writing.
(4) Form of notice.--The notice shall be clear and
conspicuous.
(c) Opt-out.--
(1) Opportunity to opt-out of sale or marketing.--The
opportunity provided to limit the sale of personally
identifiable information to nonaffiliated third parties or
the disclosure of such information for marketing purposes,
shall be easy to use, accessible and available in the medium
the information is collected, or in a medium approved by the
individual.
(2) Duration of limitation.--An individual's limitation on
the sale or marketing of personally identifiable information
shall be considered permanent, unless otherwise specified by
the individual.
(3) Revocation of consent.--After an individual grants
consent to the use of that individual's personally
identifiable information, the individual may revoke the
consent at any time, except to the extent that the commercial
entity has taken action in reliance thereon. The commercial
entity shall provide the individual an opportunity to revoke
consent that is easy to use, accessible, and available in the
medium the information was or is collected.
(4) Not applicable.--This section shall not apply to
disclosure of personally identifiable information--
(A) that is necessary to facilitate a transaction
specifically requested by the consumer;
(B) is used for the sole purpose of facilitating this
transaction; and
(C) in which the entity receiving or obtaining such
information is limited, by contract, to use such formation
for the purpose of completing the transaction.

SEC. 102. ENFORCEMENT.

(a) In General.--In accordance with the provisions of this
section, the Federal Trade Commission shall have the
authority to enforce any violation of section 101 of this
Act.
(b) Violations.--The Federal Trade Commission shall treat a
violation of section 101 as a violation of a rule under
section 18a(a)(1)(B) of the Federal Trade Commission Act (15
U.S.C. 57a(a)(1)(B)).
(c) Transfer of Enforcement Authority.--The Federal Trade
Commission shall promulgate rules in accordance with section
553 of title 5, United States Code, allowing for the transfer
of enforcement authority from the Federal Trade Commission to
a Federal agency regarding section 101 of this Act. The
Federal Trade Commission may permit a Federal agency to
enforce any violation of section 101 if such agency submits a
written request to the Commission to enforce such violations
and includes in such request--
(1) a description of the entities regulated by such agency
that will be subject to the provisions of section 101;
(2) an assurance that such agency has sufficient authority
over the entities to enforce violations of section 101; and
(3) a list of proposed rules that such agency shall use in
regulating such entities and enforcing section 101.
(d) Actions by the Commission.--Absent transfer of
enforcement authority to a Federal agency under subsection
(c), the Federal Trade Commission shall prevent any person
from violating section 101 in the same manner, by the same
means, and with the same jurisdiction, powers, and duties as
provided to such Commission under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.). Any entity that
violates section 101 is subject to the penalties and entitled
to the privileges and immunities provided in such Act in the
same manner, by the same means, and with the same
jurisdiction, power, and duties under such Act.
(e) Relationship to Other Laws.--
(1) Commission authority.--Nothing contained in this title
shall be construed to limit authority provided to the
Commission under any other law.
(2) Communications act.--Nothing in section 101 requires an
operator of a website to take any action that is inconsistent
with the requirements of section 222 or 631 of the
Communications Act of 1934 (47 U.S.C. 222 and 5551).
(3) Other acts.--Nothing in this title is intended to
affect the applicability or the enforceability of any
provision of, or any amendment made by--
(A) the Children's Online Privacy Protection Act of 1998
(15 U.S.C. 6501 et seq.);
(B) title V of the Gramm-Leach-Bliley Act;
(C) the Health Insurance Portability and Accountability Act
of 1996; or
(D) the Fair Credit Reporting Act.
(f) Public Records.--Nothing in this title shall be
construed to restrict commercial entities from obtaining or
disclosing personally identifying information from public
records.
(g) Civil Penalties.--In addition to any other penalty
applicable to a violation of section 101(a), a penalty of up
to $25,000 may be issued for each violation.
(h) Enforcement Regarding Programs.--
(1) In general.--A Federal agency or department providing
financial assistance to any entity required to comply with
section 101 of this Act shall issue regulations requiring
that such entity comply with such section or forfeit some or
all of such assistance. Such regulations shall prescribe
sanctions for noncompliance, require that such department or
agency provide notice of failure to comply with such section
prior to any action being taken against such recipient, and
require that a determination be made prior to any action
being taken against such recipient that compliance cannot be
secured by voluntary means.
(2) Federal financial assistance.--The term ``Federal
financial assistance'' means assistance through a grant,
cooperative agreement, loan, or contract other than a
contract of insurance or guaranty.

SEC. 103. SAFE HARBOR.

A commercial entity may not be held to have violated any
provision of this title if such entity complies with self-
regulatory guidelines that--
(1) are issued by seal programs or representatives of the
marketing or online industries or by any other person; and
(2) are approved by the Federal Trade Commission, after
public comment has been received on such guidelines by the
Commission, as meeting the requirements of this title.

SEC. 104. DEFINITIONS.

In this title:
(1) Commercial entity.--The term ``commercial entity''--
(A) means any person offering products or services
involving commerce--
(i) among the several States or with 1 or more foreign
nations;
(ii) in any territory of the United States or in the
District of Columbia, or between any such territory and--

(I) another such territory; or
(II) any State or foreign nation; or

(iii) between the District of Columbia and any State,
territory, or foreign nation; and
(B) does not include--
(i) any nonprofit entity that would otherwise be exempt
from coverage under section 5 of the Federal Trade Commission
Act (15 U.S.C. 45);
(ii) any financial institution that is subject to title V
of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.); or
(iii) any group health plan, health insurance issuer, or
other entity that is subject to the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. 201
note).
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Individual.--The term ``individual'' means a person
whose personally identifying information has been, is, or
will be collected by a commercial entity.
(4) Marketing.--The term ``marketing'' means to make a
communication about a product or service a purpose of which
is to encourage recipients of the communication to purchase
or use the product or service.
(5) Medium.--The term ``medium'' means any channel or
system of communication including oral, written, and online
communication.
(6) Nonaffiliated third party.--The term ``nonaffiliated
third party'' means any entity that is not related by common
ownership or affiliated by corporate control with, the
commercial entity, but does not include a joint employee of
such institution.
(7) Personally identifiable information.--The term
``personally identifiable information'' means individually
identifiable information about the individual that is
collected including--
(A) a first, middle, or last name, whether given at birth
or adoption, assumed, or legally changed;

[[Page S293]]

(B) a home or other physical address, including the street
name, zip code, and name of a city or town;
(C) an e-mail address;
(D) a telephone number;
(E) a photograph or other form of visual identification;
(F) a birth date, birth certificate number, or place of
birth for that person; or
(G) information concerning the individual that is combined
with any other identifier in this paragraph.
(8) Sale; sell; sold.--The terms ``sale'', ``sell'', and
``sold'', with respect to personally identifiable
information, mean the exchanging of such information for any
thing of value, directly or indirectly, including the
licensing, bartering, or renting of such information.
(9) Writing.--The term ``writing'' means writing in either
a paper-based or computer-based form, including electronic
and digital signatures.

SEC. 105. PREEMPTION.

The provisions of this title shall supersede any statutory
and common law of States and their political subdivisions
insofar as that law may now or hereafter relate to the--
(1) collection and disclosure of personally identifiable
information for marketing purposes; and
(2) collection and sale of personally identifiable
information.

SEC. 106. EFFECTIVE DATE.

This title and the amendments made by this title shall take
effect 1 year after the date of enactment of this Act.

TITLE II--SOCIAL SECURITY NUMBER MISUSE PREVENTION

SEC. 201. FINDINGS.

Congress makes the following findings:
(1) The inappropriate display, sale, or purchase of social
security numbers has contributed to a growing range of
illegal activities, including fraud, identity theft, and, in
some cases, stalking and other violent crimes.
(2) While financial institutions, health care providers,
and other entities have often used social security numbers to
confirm the identity of an individual, the general display to
the public, sale, or purchase of these numbers has been used
to commit crimes, and also can result in serious invasions of
individual privacy.
(3) The Federal Government requires virtually every
individual in the United States to obtain and maintain a
social security number in order to pay taxes, to qualify for
social security benefits, or to seek employment. An
unintended consequence of these requirements is that social
security numbers have become one of the tools that can be
used to facilitate crime, fraud, and invasions of the privacy
of the individuals to whom the numbers are assigned. Because
the Federal Government created and maintains this system, and
because the Federal Government does not permit individuals to
exempt themselves from those requirements, it is appropriate
for the Federal Government to take steps to stem the abuse of
social security numbers.
(4) The display, sale, or purchase of social security
numbers in no way facilitates uninhibited, robust, and wide-
open public debate, and restrictions on such display, sale,
or purchase would not affect public debate.
(5) No one should seek to profit from the display, sale, or
purchase of social security numbers in circumstances that
create a substantial risk of physical, emotional, or
financial harm to the individuals to whom those numbers are
assigned.
(6) Consequently, this title provides each individual that
has been assigned a social security number some degree of
protection from the display, sale, and purchase of that
number in any circumstance that might facilitate unlawful
conduct.

SEC. 202. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF
SOCIAL SECURITY NUMBERS.

(a) Prohibition.--
(1) In general.--Chapter 47 of title 18, United States
Code, is amended by inserting after section 1028 the
following:

``Sec. 1028A. Prohibition of the display, sale, or purchase
of social security numbers

``(a) Definitions.--In this section:
``(1) Display.--The term `display' means to intentionally
communicate or otherwise make available (on the Internet or
in any other manner) to the general public an individual's
social security number.
``(2) Person.--The term `person' means any individual,
partnership, corporation, trust, estate, cooperative,
association, or any other entity.
``(3) Purchase.--The term `purchase' means providing
directly or indirectly, anything of value in exchange for a
social security number.
``(4) Sale.--The term `sale' means obtaining, directly or
indirectly, anything of value in exchange for a social
security number.
``(5) State.--The term `State' means any State of the
United States, the District of Columbia, Puerto Rico, the
Northern Mariana Islands, the United States Virgin Islands,
Guam, American Samoa, and any territory or possession of the
United States.
``(b) Limitation on Display.--Except as provided in section
1028B, no person may display any individual's social security
number to the general public without the affirmatively
expressed consent of the individual.
``(c) Limitation on Sale or Purchase.--Except as otherwise
provided in this section, no person may sell or purchase any
individual's social security number without the affirmatively
expressed consent of the individual.
``(d) Prerequisites for Consent.--In order for consent to
exist under subsection (b) or (c), the person displaying or
seeking to display, selling or attempting to sell, or
purchasing or attempting to purchase, an individual's social
security number shall--
``(1) inform the individual of the general purpose for
which the number will be used, the types of persons to whom
the number may be available, and the scope of transactions
permitted by the consent; and
``(2) obtain the affirmatively expressed consent
(electronically or in writing) of the individual.
``(e) Exceptions.--Nothing in this section shall be
construed to prohibit or limit the display, sale, or purchase
of a social security number--
``(1) required, authorized, or excepted under any Federal
law;
``(2) for a public health purpose, including the protection
of the health or safety of an individual in an emergency
situation;
``(3) for a national security purpose;
``(4) for a law enforcement purpose, including the
investigation of fraud and the enforcement of a child support
obligation;
``(5) if the display, sale, or purchase of the number is
for a use occurring as a result of an interaction between
businesses, governments, or business and government
(regardless of which entity initiates the interaction),
including, but not limited to--
``(A) the prevention of fraud (including fraud in
protecting an employee's right to employment benefits);
``(B) the facilitation of credit checks or the facilitation
of background checks of employees, prospective employees, or
volunteers;
``(C) the retrieval of other information from other
businesses, commercial enterprises, government entities, or
private nonprofit organizations; or
``(D) when the transmission of the number is incidental to,
and in the course of, the sale, lease, franchising, or merger
of all, or a portion of, a business;
``(6) if the transfer of such a number is part of a data
matching program involving a Federal, State, or local agency;
or
``(7) if such number is required to be submitted as part of
the process for applying for any type of Federal, State, or
local government benefit or program;
except that, nothing in this subsection shall be construed as
permitting a professional or commercial user to display or
sell a social security number to the general public.
``(f) Limitation.--Nothing in this section shall prohibit
or limit the display, sale, or purchase of social security
numbers as permitted under title V of the Gramm-Leach-Bliley
Act, or for the purpose of affiliate sharing as permitted
under the Fair Credit Reporting Act, except that no entity
regulated under such Acts may make social security numbers
available to the general public, as may be determined by the
appropriate regulators under such Acts. For purposes of this
subsection, the general public shall not include affiliates
or unaffiliated third-party business entities as may be
defined by the appropriate regulators.''.
(2) Conforming amendment.--The chapter analysis for chapter
47 of title 18, United States Code, is amended by inserting
after the item relating to section 1028 the following:

``1028A. Prohibition of the display, sale, or purchase of social
security numbers''.

(b) Study; Report.--
(1) In general.--The Attorney General shall conduct a study
and prepare a report on all of the uses of social security
numbers permitted, required, authorized, or excepted under
any Federal law. The report shall include a detailed
description of the uses allowed as of the date of enactment
of this Act and shall evaluate whether such uses should be
continued or discontinued by appropriate legislative action.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Attorney General shall report to
Congress findings under this subsection. The report shall
include such recommendations for legislation based on
criteria the Attorney General determines to be appropriate.
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 30 days after the date
on which the final regulations promulgated under section 5
are published in the Federal Register.

SEC. 203. APPLICATION OF PROHIBITION OF THE DISPLAY, SALE, OR
PURCHASE OF SOCIAL SECURITY NUMBERS TO PUBLIC
RECORDS.

(a) Public Records Exception.--
(1) In general.--Chapter 47 of title 18, United States Code
(as amended by section 3(a)(1)), is amended by inserting
after section 1028A the following:

``Sec. 1028B. Display, sale, or purchase of public records
containing social security numbers

[[Page S294]]

``(2) Exception for government entities already placing
public records on the internet or in electronic form.--Not
later than 60 days after the date of enactment of this
section, the Attorney General shall issue regulations
regarding the applicability of section 1028A to any record of
a category of public records first posted onto the Internet
or provided in an electronic medium by, or on behalf of a
government entity prior to the date of enactment of this
section. The regulations will determine which individual
records within categories of records of these government
entities, if any, may continue to be posted on the Internet
or in electronic form after the effective date of this
section. In promulgating these regulations, the Attorney
General may include in the regulations a set of procedures
for implementing the regulations and shall consider the
following:
``(A) The cost and availability of technology available to
a governmental entity to redact social security numbers from
public records first provided in electronic form after the
effective date of this section.
``(B) The cost or burden to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments of complying with
section 1028A with respect to such records.
``(C) The benefit to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments if the Attorney General
were to determine that section 1028A should apply to such
records.
Nothing in the regulation shall permit a public entity to
post a category of public records on the Internet or in
electronic form after the effective date of this section if
such category had not been placed on the Internet or in
electronic form prior to such effective date.
``(d) Harvested Social Security Numbers.--Section 1028A
shall apply to any public record of a government entity which
contains social security numbers extracted from other public
records for the purpose of displaying or selling such numbers
to the general public.
``(e) Attorney General Rulemaking on Paper Records.--
``(1) In general.--Not later than 60 days after the date of
enactment of this section, the Attorney General shall
determine the feasibility and advisability of applying
section 1028A to the records listed in paragraph (2) when
they appear on paper or on another nonelectronic medium. If
the Attorney General deems it appropriate, the Attorney
General may issue regulations applying section 1028A to such
records.
``(2) List of paper and other nonelectronic records.--The
records listed in this paragraph are as follows:
``(A) Professional or occupational licenses.
``(B) Marriage licenses.
``(C) Birth certificates.
``(D) Death certificates.
``(E) Other short public documents that display a social
security number in a routine and consistent manner on the
face of the document.
``(3) Criteria for attorney general review.--In determining
whether section 1028A should apply to the records listed in
paragraph (2), the Attorney General shall consider the
following:
``(A) The cost or burden to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments of complying with
section 1028A.
``(B) The benefit to the general public, businesses,
commercial enterprises, non-profit organizations, and to
Federal, State, and local governments if the Attorney General
were to determine that section 1028A should apply to such
records.''.
(2) Conforming amendment.--The chapter analysis for chapter
47 of title 18, United States Code (as amended by section
202(a)(2)), is amended by inserting after the item relating
to section 1028A the following:

``1028B. Display, sale, or purchase of public records containing social
security numbers''.
(b) Study and Report on Social Security Numbers in Public
Records.--
(1) Study.--The Comptroller General of the United States
shall conduct a study and prepare a report on social security
numbers in public records. In developing the report, the
Comptroller General shall consult with the Administrative
Office of the United States Courts, State and local
governments that store, maintain, or disseminate public
records, and other stakeholders, including members of the
private sector who routinely use public records that contain
social security numbers.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report on the study
conducted under paragraph (1). The report shall include a
detailed description of the activities and results of the
study and recommendations for such legislative action as the
Comptroller General considers appropriate. The report, at a
minimum, shall include--
(A) a review of the uses of social security numbers in non-
federal public records;
(B) a review of the manner in which public records are
stored (with separate reviews for both paper records and
electronic records);
(C) a review of the advantages or utility of public records
that contain social security numbers, including the utility
for law enforcement, and for the promotion of homeland
security;
(D) a review of the disadvantages or drawbacks of public
records that contain social security numbers, including
criminal activity, compromised personal privacy, or threats
to homeland security;
(E) the costs and benefits for State and local governments
of removing social security numbers from public records,
including a review of current technologies and procedures for
removing social security numbers from public records; and
(F) an assessment of the benefits and costs to businesses,
their customers, and the general public of prohibiting the
display of social security numbers on public records (with
separate assessments for both paper records and electronic
records).
(c) Effective Date.--The prohibition with respect to
electronic versions of new classes of public records under
section 1028B(b) of title 18, United States Code (as added by
subsection (a)(1)) shall not take effect until the date that
is 60 days after the date of enactment of this Act.

SEC. 204. RULEMAKING AUTHORITY OF THE ATTORNEY GENERAL.

(a) In General.--Except as provided in subsection (b), the
Attorney General may prescribe such rules and regulations as
the Attorney General deems necessary to carry out the
provisions of section 1028A(e)(5) of title 18, United States
Code (as added by section 202(a)(1)).
(b) Display, Sale, or Purchase Rulemaking With Respect to
Interactions Between Businesses, Governments, or Business and
Government.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Attorney General, in consultation
with the Commissioner of Social Security, the Chairman of the
Federal Trade Commission, and such other heads of Federal
agencies as the Attorney General determines appropriate,
shall conduct such rulemaking procedures in accordance with
subchapter II of chapter 5 of title 5, United States Code, as
are necessary to promulgate regulations to implement and
clarify the uses occurring as a result of an interaction
between businesses, governments, or business and government
(regardless of which entity initiates the interaction)
permitted under section 1028A(e)(5) of title 18, United
States Code (as added by section 202(a)(1)).
(2) Factors to be considered.--In promulgating the
regulations required under paragraph (1), the Attorney
General shall, at a minimum, consider the following:
(A) The benefit to a particular business, to customers of
the business, and to the general public of the display, sale,
or purchase of an individual's social security number.
(B) The costs that businesses, customers of businesses, and
the general public may incur as a result of prohibitions on
the display, sale, or purchase of social security numbers.
(C) The risk that a particular business practice will
promote the use of a social security number to commit fraud,
deception, or crime.
(D) The presence of adequate safeguards and procedures to
prevent--
(i) misuse of social security numbers by employees within a
business; and
(ii) misappropriation of social security numbers by the
general public, while permitting internal business uses of
such numbers.
(E) The presence of procedures to prevent identity thieves,
stalkers, and other individuals with ill intent from posing
as legitimate businesses to obtain social security numbers.

SEC. 205. TREATMENT OF SOCIAL SECURITY NUMBERS ON GOVERNMENT
DOCUMENTS.

(a) Prohibition of Use of Social Security Account Numbers
on Checks Issued for Payment by Governmental Agencies.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at
the end the following:
``(x) No Federal, State, or local agency may display the
social security account number of any individual, or any
derivative of such number, on any check issued for any
payment by the Federal, State, or local agency.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to violations of section
205(c)(2)(C)(x) of the Social Security Act (42 U.S.C.
405(c)(2)(C)(x)), as added by paragraph (1), occurring after
the date that is 3 years after the date of enactment of this
Act.
(b) Prohibition of Appearance of Social Security Account
Numbers on Driver's Licenses or Motor Vehicle Registration.--
(1) In general.--Section 205(c)(2)(C)(vi) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
(A) by inserting ``(I)'' after ``(vi)''; and
(B) by adding at the end the following:
``(II)(aa) An agency of a State (or political subdivision
thereof), in the administration of any driver's license or
motor vehicle registration law within its jurisdiction, may
not display the social security account numbers issued by the
Commissioner of Social Security, or any derivative of such
numbers, on the face of any driver's license or motor vehicle
registration or any other document issued by such State (or
political subdivision thereof) to an individual for purposes
of identification of such individual.
``(bb) Nothing in this subclause shall be construed as
precluding an agency of a State (or political subdivision
thereof), in the administration of any driver's license or
motor vehicle registration law within its jurisdiction, from
using a social security account

[[Page S295]]

number for an internal use or to link with the database of an
agency of another State that is responsible for the
administration of any driver's license or motor vehicle
registration law.''.
(2) Effective date.--The amendments made by this subsection
shall apply with respect to licenses, registrations, and
other documents issued or reissued after the date that is 1
year after the date of enactment of this Act.
(c) Prohibition of Inmate Access to Social Security Account
Numbers.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by
subsection (b)) is amended by adding at the end the
following:
``(xi) No Federal, State, or local agency may employ, or
enter into a contract for the use or employment of, prisoners
in any capacity that would allow such prisoners access to the
social security account numbers of other individuals. For
purposes of this clause, the term `prisoner' means an
individual confined in a jail, prison, or other penal
institution or correctional facility pursuant to such
individual's conviction of a criminal offense.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to employment of prisoners, or entry
into contract with prisoners, after the date that is 1 year
after the date of enactment of this Act.

SEC. 206. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL SECURITY
NUMBER FOR CONSUMER TRANSACTIONS.

(a) In General.--Part A of title XI of the Social Security
Act (42 U.S.C. 1301 et seq.) is amended by adding at the end
the following:

``SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL
SECURITY NUMBER FOR CONSUMER TRANSACTIONS.

``(I) written notice of the action; and
``(II) a copy of the complaint for the action.

``(ii) Exemption.--

SEC. 207. EXTENSION OF CIVIL MONETARY PENALTIES FOR MISUSE OF
A SOCIAL SECURITY NUMBER.

[[Page S296]]

(b) Application of Civil Money Penalties to Elements of
Criminal Violations.--Section 1129(a) of the Social Security
Act (42 U.S.C. 1320a-8(a)), as amended by subsection (a)(1),
is amended--
(1) by redesignating paragraph (2) as paragraph (4);
(2) by redesignating the last sentence of paragraph (1) as
paragraph (2) and inserting such paragraph after paragraph
(1); and
(3) by inserting after paragraph (2) (as so redesignated)
the following:
``(3) Any person (including an organization, agency, or
other entity) who--
``(A) uses a social security account number that such
person knows or should know has been assigned by the
Commissioner of Social Security (in an exercise of authority
under section 205(c)(2) to establish and maintain records) on
the basis of false information furnished to the Commissioner
by any person;
``(B) falsely represents a number to be the social security
account number assigned by the Commissioner of Social
Security to any individual, when such person knows or should
know that such number is not the social security account
number assigned by the Commissioner to such individual;
``(C) knowingly alters a social security card issued by the
Commissioner of Social Security, or possesses such a card
with intent to alter it;
``(D) knowingly displays, sells, or purchases a card that
is, or purports to be, a card issued by the Commissioner of
Social Security, or possesses such a card with intent to
display, purchase, or sell it;
``(E) counterfeits a social security card, or possesses a
counterfeit social security card with intent to display,
sell, or purchase it;
``(F) discloses, uses, compels the disclosure of, or
knowingly displays, sells, or purchases the social security
account number of any person in violation of the laws of the
United States;
``(G) with intent to deceive the Commissioner of Social
Security as to such person's true identity (or the true
identity of any other person) furnishes or causes to be
furnished false information to the Commissioner with respect
to any information required by the Commissioner in connection
with the establishment and maintenance of the records
provided for in section 205(c)(2);
``(H) offers, for a fee, to acquire for any individual, or
to assist in acquiring for any individual, an additional
social security account number or a number which purports to
be a social security account number; or
``(I) being an officer or employee of a Federal, State, or
local agency in possession of any individual's social
security account number, willfully acts or fails to act so as
to cause a violation by such agency of clause (vi)(II) or (x)
of section 205(c)(2)(C), shall be subject to, in addition to
any other penalties that may be prescribed by law, a civil
money penalty of not more than $5,000 for each violation.
Such person shall also be subject to an assessment, in lieu
of damages sustained by the United States resulting from such
violation, of not more than twice the amount of any benefits
or payments paid as a result of such violation.''.
(c) Clarification of Treatment of Recovered Amounts.--
Section 1129(e)(2)(B) of the Social Security Act (42 U.S.C.
1320a-8(e)(2)(B)) is amended by striking ``In the case of
amounts recovered arising out of a determination relating to
title VIII or XVI,'' and inserting ``In the case of any other
amounts recovered under this section,''.
(d) Conforming Amendments.--
(1) Section 1129(b)(3)(A) of the Social Security Act (42
U.S.C. 1320a-8(b)(3)(A)) is amended by striking ``charging
fraud or false statements''.
(2) Section 1129(c)(1) of the Social Security Act (42
U.S.C. 1320a-8(c)(1)) is amended by striking ``and
representations'' and inserting ``, representations, or
actions''.
(3) Section 1129(e)(1)(A) of the Social Security Act (42
U.S.C. 1320a-8(e)(1)(A)) is amended by striking ``statement
or representation referred to in subsection (a) was made''
and inserting ``violation occurred''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
violations of sections 1129 and 1129A of the Social Security
Act (42 U.S.C. 1320-8 and 1320a-8a), as amended by this
section, committed after the date of enactment of this Act.
(2) Violations by government agents in possession of social
security numbers.--Section 1129(a)(3)(I) of the Social
Security Act (42 U.S.C. 1320a-8(a)(3)(I)), as added by
subsection (b), shall apply with respect to violations of
that section occurring on or after the effective date
described in section 202(c).

SEC. 208. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL
SECURITY NUMBER.

SEC. 209. CIVIL ACTIONS AND CIVIL PENALTIES.

(a) Civil Action in State Courts.--
(1) In general.--Any individual aggrieved by an act of any
person in violation of this title or any amendments made by
this title may, if otherwise permitted by the laws or rules
of the court of a State, bring in an appropriate court of
that State--
(A) an action to enjoin such violation;
(B) an action to recover for actual monetary loss from such
a violation, or to receive up to $500 in damages for each
such violation, whichever is greater; or
(C) both such actions.
It shall be an affirmative defense in any action brought
under this paragraph that the defendant has established and
implemented, with due care, reasonable practices and
procedures to effectively prevent violations of the
regulations prescribed under this title. If the court finds
that the defendant willfully or knowingly violated the
regulations prescribed under this subsection, the court may,
in its discretion, increase the amount of the award to an
amount equal to not more than 3 times the amount available
under subparagraph (B).
(2) Statute of limitations.--An action may be commenced
under this subsection not later than the earlier of--
(A) 5 years after the date on which the alleged violation
occurred; or
(B) 3 years after the date on which the alleged violation
was or should have been reasonably discovered by the
aggrieved individual.
(3) Nonexclusive remedy.--The remedy provided under this
subsection shall be in addition to any other remedies
available to the individual.
(b) Civil Penalties.--
(1) In general.--Any person who the Attorney General
determines has violated any section of this title or of any
amendments made by this title shall be subject, in addition
to any other penalties that may be prescribed by law--
(A) to a civil penalty of not more than $5,000 for each
such violation; and
(B) to a civil penalty of not more than $50,000, if the
violations have occurred with such frequency as to constitute
a general business practice.
(2) Determination of violations.--Any willful violation
committed contemporaneously with respect to the social
security numbers of 2 or more individuals by means of mail,
telecommunication, or otherwise, shall be treated as a
separate violation with respect to each such individual.
(3) Enforcement procedures.--The provisions of section
1128A of the Social Security Act (42 U.S.C. 1320a-7a), other
than subsections (a), (b), (f), (h), (i), (j), (m), and (n)
and the first sentence of subsection (c) of such section, and
the provisions of subsections (d) and (e) of section 205 of
such Act (42 U.S.C. 405) shall apply to a civil penalty
action under this subsection in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a) of such Act (42 U.S.C. 1320a-7a(a)), except that,
for purposes of this paragraph, any reference in section
1128A of such Act (42 U.S.C. 1320a-7a) to the Secretary shall
be deemed to be a reference to the Attorney General.

SEC. 210. FEDERAL INJUNCTIVE AUTHORITY.

In addition to any other enforcement authority conferred
under this title or the amendments made by this title, the
Federal Government shall have injunctive authority with
respect to any violation by a public entity of any provision
of this title or of any amendments made by this title.

TITLE III--LIMITATIONS ON SALE AND SHARING OF NONPUBLIC PERSONAL
FINANCIAL INFORMATION

SEC. 301. DEFINITION OF SALE.

Section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809)
is amended by adding at the end the following:
``(12) Sale.--The terms `sale', `sell', and `sold', with
respect to nonpublic personal information, mean the exchange
of such information for any thing of value, directly or
indirectly, including the licensing, bartering, or renting of
such information.''.

SEC. 302. RULES APPLICABLE TO SALE OF NONPUBLIC PERSONAL
INFORMATION.

Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802)
is amended--
(1) in the section heading, by inserting ``sales, and other
sharing'' after ``disclosures'';
(2) in subsection (a), by striking ``disclose to'' and
inserting ``sell or otherwise disclose to an affiliate or'';
(3) in subsection (b)--
(A) in the subsection heading, by inserting ``for
Disclosures to Affiliates'' before the period;
(B) by striking ``a nonaffiliated third party'' each place
that term appears and inserting ``an affiliate'';
(C) by striking ``such third party'' each place that term
appears and inserting ``such affiliate'';
(D) by striking ``may not disclose'' and inserting ``may
not sell or otherwise disclose''; and

[[Page S297]]

(E) by striking paragraph (2) and inserting the following:
``(2) Exception.--This subsection shall not prevent a
financial institution from providing nonpublic personal
information to an affiliated third party to perform services
for or functions on behalf of the financial institution,
including marketing of the financial institution's own
products or services, if the financial institution fully
discloses the provision of such information and requires the
affiliate to maintain the confidentiality of such
information.'';
(4) in subsection (d), by striking ``disclose'' and
inserting ``sell or otherwise disclose'';
(5) by striking subsection (e);
(6) by redesignating subsections (c) and (d) as subsections
(e) and (f), respectively; and
(7) by inserting after subsection (b) the following:
``(c) Opt in for Disclosures to Nonaffiliated Third
Parties.--
``(1) Affirmative consent required.--A financial
institution may not sell or otherwise disclose nonpublic
personal information to any nonaffiliated third party, unless
the consumer to whom the information pertains--
``(A) has affirmatively consented to the sale or disclosure
of such information; and
``(B) has not withdrawn the consent.
``(2) Exception.--This subsection shall not prevent a
financial institution from providing nonpublic personal
information to a nonaffiliated third party to perform
services for or functions on behalf of the financial
institution, including marketing of the financial
institution's own products or services (subject to subsection
(d) with respect to joint agreements between 2 or more
financial institutions), if the financial institution fully
discloses the provision of such information and enters into a
contractual agreement with the nonaffiliated third party that
requires that third party to maintain the confidentiality of
such information.
``(d) Opt Out for Joint Agreements.--A financial
institution may not sell or otherwise disclose nonpublic
personal information to a nonaffiliated third party for the
purpose of offering financial products or services pursuant
to a joint agreement between 2 or more financial
institutions, unless--
``(1) the financial institution clearly and conspicuously
discloses to the consumer to whom the information pertains,
in writing or in electronic form or other form permitted by
the regulations prescribed under section 504, that such
information may be disclosed to such nonaffiliated third
party;
``(2) the consumer is given the opportunity, before the
time that such information is initially disclosed, to direct
that such information not be disclosed to such nonaffiliated
third party;
``(3) the consumer is given an explanation of how the
consumer can exercise that nondisclosure option; and
``(4) the financial institution receiving the nonpublic
personal information signs a written agreement obliging it--
``(A) to maintain the confidentiality of the information;
and
``(B) to refrain from using, selling, or otherwise
disclosing the information other than to carry out the joint
offering or servicing of the financial product or financial
service that is the subject of the written agreement.''.

SEC. 303. EXCEPTIONS TO DISCLOSURE PROHIBITION.

(a) In General.--Section 502 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6802), as amended by this title, is amended by
adding at the end the following:
``(g) General Exceptions.--Notwithstanding any other
provision of this section, this section does not prohibit--
``(1) the sale or other disclosure of nonpublic personal
information to an affiliate or a nonaffiliated third party--
``(A) as necessary to effect, administer, or enforce a
transaction requested or authorized by the consumer to whom
the information pertains, or in connection with--
``(i) servicing or processing a financial product or
service requested or authorized by the consumer;
``(ii) maintaining or servicing the account of the consumer
with the financial institution, or with another entity as
part of a private label credit card program or other
extension of credit on behalf of such entity; or
``(iii) a proposed or actual securitization, secondary
market sale (including sales of servicing rights), or similar
transaction related to a transaction of the consumer;
``(B) with the consent or at the direction of the consumer,
in accordance with applicable rules prescribed under this
subtitle;
``(C) to the extent specifically permitted or required
under other provisions of law and in accordance with the
Right to Financial Privacy Act of 1978; or
``(D) to law enforcement agencies (including a Federal
functional regulator, the Secretary of the Treasury, with
respect to subchapter II of chapter 53 of title 31, United
States Code, and chapter 2 of title I of Public Law 91-508
(12 U.S.C. 1951-1959), a State insurance authority, or the
Federal Trade Commission), self-regulatory organizations, or
for an investigation on a matter related to public safety;
``(2) the disclosure, other than the sale, of nonpublic
personal information to identify or locate missing and
abducted children, witnesses, criminals, and fugitives,
parties to lawsuits, parents, delinquents in child support
payments, organ and bone marrow donors, pension fund
beneficiaries, and missing heirs; or
``(3) the disclosure, other than the sale, of nonpublic
personal information--
``(A) to protect the confidentiality or security of the
records of the financial institution pertaining to the
consumer, the service or product, or the transaction therein;
``(B) to protect against or prevent actual or potential
fraud, unauthorized transactions, claims, or other liability;
``(C) for required institutional risk control, or for
resolving customer disputes or inquiries;
``(D) to persons holding a legal or beneficial interest
relating to the consumer;
``(E) to persons acting in a fiduciary or representative
capacity on behalf of the consumer;
``(F) to provide information to insurance rate advisory
organizations, guaranty funds or agencies, applicable rating
agencies of the financial institution, persons assessing the
compliance of the institution with industry standards, or the
attorneys, accountants, or auditors of the institution;
``(G) to a consumer reporting agency, in accordance with
the Fair Credit Reporting Act or from a consumer report
reported by a consumer reporting agency, as those terms are
defined in that Act;
``(H) in connection with a proposed or actual sale, merger,
transfer, or exchange of all or a portion of a business or
operating unit if the disclosure of nonpublic personal
information concerns solely consumers of such business or
unit;
``(I) to comply with Federal, State, or local laws, rules,
or other applicable legal requirements, or with a properly
authorized civil, criminal, or regulatory investigation or
subpoena or summons by Federal, State, or local authorities;
or
``(J) to respond to judicial process or government
regulatory authorities having jurisdiction over the financial
institution for examination, compliance, or other purposes,
as authorized by law.
``(h) Denial of Service Prohibited.--A financial
institution may not deny any consumer a financial product or
a financial service as a result of the refusal by the
consumer to grant consent to disclosure under this section or
the exercise by the consumer of a nondisclosure option under
this section, except that nothing in this subsection may be
construed to prohibit a financial institution from offering
incentives to elicit consumer consent to the use of his or
her nonpublic personal information.''.
(b) Repeal of Regulatory Exemption Authority.--Section 504
of the Gramm-Leach-Bliley Act (15 U.S.C. 6804) is amended--
(1) by striking subsection (b);
(2) by striking ``(a) Regulatory Authority.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c), respectively, and moving the
margins 2 ems to the left; and
(4) by striking ``paragraph (1)'' and inserting
``subsection (a)''.

SEC. 304. CONFORMING AMENDMENTS.

Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et
seq.) is amended--
(1) in section 503(b)(1) (15 U.S.C. 6803(b)(1))--
(A) by inserting ``affiliates and'' before
``nonaffiliated''; and
(B) in subparagraph (A), by striking ``502(e)'' and
inserting ``502(g)''; and
(2) in section 509(3)(D) (15 U.S.C. 6809(3)(D)), by
striking ``502(e)(1)(C)'' and inserting
``502(g)(1)(A)(iii)''.

SEC. 305. REGULATORY AUTHORITY.

Not later than 6 months after the date of enactment of this
Act, the agencies referred to in section 504(a)(1) of the
Gramm-Leach-Bliley Act (15 U.S.C. 6804(a)(1)) shall
promulgate final regulations in accordance with that section
504 to carry out the amendments made by this Act.

SEC. 306. EFFECTIVE DATE.

This title and the amendments made by this title shall take
effect 6 months after the date of enactment of this Act.

TITLE IV--LIMITATIONS ON THE PROVISION OF PROTECTED HEALTH INFORMATION

SEC. 401. DEFINITIONS.

In this title:
(1) Business associate.--
(A) In general.--Except as provided in subparagraph (B),
the term ``business associate'' means, with respect to a
covered entity, a person who--
(i) on behalf of such covered entity or of an organized
health care arrangement in which the covered entity
participates, but other than in the capacity of a member of
the workforce of such covered entity or arrangement,
performs, or assists in the performance of--

(I) a function or activity involving the use or disclosure
of individually identifiable health information, including
claims processing or administration, data analysis,
processing or administration, utilization review, quality
assurance, billing, benefit management, practice management,
and repricing; or
(II) any other function or activity regulated under
subchapter C of title 45, Code of Federal Regulations; or

(ii) provides, other than in the capacity of a member of
the workforce of such covered entity, legal, actuarial,
accounting, consulting, data aggregation (as defined in
section 164.501 of title 45, Code of Federal Regulations),
management, administrative, accreditation, or financial
services to or for such covered entity, or to or for an
organized

[[Page S298]]

health care arrangement in which the covered entity
participates, where the provision of the service involves the
disclosure of individually identifiable health information
from such covered entity or arrangement, or from another
business associate of such covered entity or arrangement, to
the person.
(B) Limitations.--
(i) In general.--A covered entity participating in an
organized health care arrangement that performs a function or
activity as described by subparagraph (A)(i) for or on behalf
of such organized health care arrangement, or that provides a
service as described in subparagraph (A)(ii) to or for such
organized health care arrangement, does not, simply through
the performance of such function or activity or the provision
of such service, become a business associate of other covered
entities participating in such organized health care
arrangement.
(ii) Limitation.--A covered entity may be a business
associate of another covered entity.
(2) Covered entity.--The term ``covered entity'' means--
(A) a health plan;
(B) a health care clearinghouse; and
(C) a health care provider who transmits any health
information in electronic form in connection with a
transaction covered by parts 160 through 164 of title 45,
Code of Federal Regulations.
(3) Disclosure.--The term ``disclosure'' means the release,
transfer, provision of access to, or divulging in any other
manner of information outside the entity holding the
information.
(4) Employer.--The term ``employer'' has the meaning given
that term in section 3401(d) of the Internal Revenue Code of
1986.
(5) Group health plan.--The term ``group health plan''
means an employee welfare benefit plan (as defined in section
3(1) of the Employee Retirement Income and Security Act of
1974 (29 U.S.C. 1002(1)), including insured and self-insured
plans, to the extent that the plan provides medical care (as
defined in section 2791(a)(2) of the Public Health Service
Act, 42 U.S.C. 300gg-91(a)(2)), including items and services
paid for as medical care, to employees or their dependents
directly or through insurance, reimbursement, or otherwise,
that--
(A) has 50 or more participants (as defined in section 3(7)
of Employee Retirement Income and Security Act of 1974, 29
U.S.C. 1002(7)); or
(B) is administered by an entity other than the employer
that established and maintains the plan.
(6) Health care.--The term ``health care'' includes, but is
not limited to, the following:
(A) Preventive, diagnostic, therapeutic, rehabilitative,
maintenance, or palliative care and counseling, service,
assessment, or procedure with respect to the physical or
mental condition, or functional status, of an individual or
that affects the structure or function of the body.
(B) The sale or dispensing of a drug, device, equipment, or
other item in accordance with a prescription.
(7) Health care clearinghouse.--The term ``health care
clearinghouse'' means a public or private entity, including a
billing service, repricing company, community health
management information system or community health information
system, and value-added networks and switches, that--
(A) processes or facilitates the processing of health
information received from another entity in a nonstandard
format or containing nonstandard data content into standard
data elements or a standard transaction; or
(B) receives a standard transaction from another entity and
processes or facilitates the processing of health information
into nonstandard format or nonstandard data content for the
receiving entity.
(8) Health care provider.--The term ``health care
provider'' has the meaning given the terms ``provider of
services'' and ``provider of medical or health services'' in
subsections (u) and (s) of section 1861 of the Social
Security Act (42 U.S.C. 1395x), respectively, and includes
any other person or organization who furnishes, bills, or is
paid for health care in the normal course of business.
(9) Health information.--The term ``health information''
means any information, whether oral or recorded in any form
or medium, that--
(A) is created or received by a health care provider,
health plan, public health authority, employer, life insurer,
school or university, or health care clearinghouse; and
(B) relates to the past, present, or future physical or
mental health or condition of an individual; the provision of
health care to an individual; or the past, present, or future
payment for the provision of health care to an individual.
(10) Health insurance issuer.--The term ``health insurance
issuer'' means a health insurance issuer (as defined in
section 2791(b)(2) of the Public Health Service Act, 42
U.S.C. 300gg-91(b)(2)) and used in the definition of health
plan in this section and includes an insurance company,
insurance service, or insurance organization (including an
HMO) that is licensed to engage in the business of insurance
in a State and is subject to State law that regulates
insurance. Such term does not include a group health plan.
(11) Health maintenance organization.--The term ``health
maintenance organization'' (HMO) (as defined in section
2791(b)(3) of the Public Health Service Act, 42 U.S.C. 300gg-
91 (b)(3)) and used in the definition of health plan in this
section, means a federally qualified HMO, an organization
recognized as an HMO under State law, or a similar
organization regulated for solvency under State law in the
same manner and to the same extent as such an HMO.
(12) Health oversight agency.--The term ``health oversight
agency'' means an agency or authority of the United States, a
State, a territory, a political subdivision of a State or
territory, or an Indian tribe, or a person or entity acting
under a grant of authority from or contract with such public
agency, including the employees or agents of such public
agency or its contractors or persons or entities to whom it
has granted authority, that is authorized by law to oversee
the health care system (whether public or private) or
government programs in which health information is necessary
to determine eligibility or compliance, or to enforce civil
rights laws for which health information is relevant.
(13) Health plan.--The term ``health plan'' means an
individual or group plan that provides, or pays the cost of,
medical care, as defined in section 2791(a)(2) of the Public
Health Service Act (42 U.S.C. 300gg-91(a)(2))--
(A) including, singly or in combination--
(i) a group health plan;
(ii) a health insurance issuer;
(iii) an HMO;
(iv) part A or B of the medicare program under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.);
(v) the medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.);
(vi) an issuer of a medicare supplemental policy (as
defined in section 1882(g)(1) of the Social Security Act, 42
U.S.C. 1395ss(g)(1));
(vii) an issuer of a long-term care policy, excluding a
nursing home fixed-indemnity policy;
(viii) an employee welfare benefit plan or any other
arrangement that is established or maintained for the purpose
of offering or providing health benefits to the employees of
2 or more employers;
(ix) the health care program for active military personnel
under title 10, United States Code;
(x) the veterans health care program under chapter 17 of
title 38, United States Code;
(xi) the Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS) (as defined in section 1072(4)
of title 10, United States Code);
(xii) the Indian Health Service program under the Indian
Health Care Improvement Act (25 U.S.C. 1601 et seq.);
(xiii) the Federal Employees Health Benefits Program under
chapter 89 of title 5, United States Code;
(xiv) an approved State child health plan under title XXI
of the Social Security Act (42 U.S.C. 1397aa et seq.),
providing benefits for child health assistance that meet the
requirements of section 2103 of such Act (42 U.S.C. 1397cc);
(xv) the Medicare+Choice program under part C of title
XVIII of the Social Security Act (42 U.S.C. 1395w-21 et
seq.);
(xvi) a high risk pool that is a mechanism established
under State law to provide health insurance coverage or
comparable coverage to eligible individuals; and
(xvii) any other individual or group plan, or combination
of individual or group plans, that provides or pays for the
cost of medical care (as defined in section 2791(a)(2) of the
Public Health Service Act (42 U.S.C. 300gg-91(a)(2)); and
(B) excluding--
(i) any policy, plan, or program to the extent that it
provides, or pays for the cost of, excepted benefits that are
listed in section 2791(c)(1) of the Public Health Service Act
(42 U.S.C. 300gg-91(c)(1)); and
(ii) a government-funded program (other than 1 listed in
clause (i) through (xvi) of subparagraph (A)), whose
principal purpose is other than providing, or paying the cost
of, health care, or whose principal activity is the direct
provision of health care to persons, or the making of grants
to fund the direct provision of health care to persons.
(14) Individually identifiable health information.--The
term ``individually identifiable health information'' means
information that is a subset of health information, including
demographic information collected from an individual, that--
(A) is created or received by a covered entity or employer;
and
(B)(i) relates to the past, present, or future physical or
mental health or condition of an individual, the provision of
health care to an individual, or the past, present, or future
payment for the provision of health care to an individual;
and
(ii)(I) identifies an individual; or
(II) with respect to which there is a reasonable basis to
believe that the information can be used to identify an
individual.
(15) Law enforcement official.--The term ``law enforcement
official'' means an officer or employee of any agency or
authority of the United States, a State, a territory, a
political subdivision of a State or territory, or an Indian
tribe, who is empowered by law to--
(A) investigate or conduct an official inquiry into a
potential violation of law; or
(B) prosecute or otherwise conduct a criminal, civil, or
administrative proceeding arising from an alleged violation
of law.
(16) Life insurer.--The term ``life insurer'' means a life
insurance company (as defined in section 816 of the Internal
Revenue Code of 1986), including the employees and agents of
such company.

[[Page S299]]

(17) Marketing.--The term ``marketing'' means to make a
communication about a product or service that encourages
recipients of the communication to purchase or use the
product or service.
(18) Noncovered entity.--The term ``noncovered entity''
means any person or public or private entity that is not a
covered entity, including but not limited to a business
associate of a covered entity, a covered entity if such
covered entity is acting as a business associate, a health
researcher, school or university, life insurer, employer,
public health authority, health oversight agency, or law
enforcement official, or any person acting as an agent of
such entities or persons.
(19) Organized health care arrangement.--The term
``organized health care arrangement'' means--
(A) a clinically integrated care setting in which
individuals typically receive health care from more than 1
health care provider;
(B) an organized system of health care in which more than 1
covered entity participates, and in which the participating
covered entities--
(i) hold themselves out to the public as participating in a
joint arrangement; and
(ii) participate in joint activities including at least--

(I) utilization review, in which health care decisions by
participating covered entities are reviewed by other
participating covered entities or by a third party on their
behalf;
(II) quality assessment and improvement activities, in
which treatment provided by participating covered entities is
assessed by other participating covered entities or by a
third party on their behalf; or
(III) payment activities, if the financial risk for
delivering health care is shared, in part or in whole, by
participating covered entities through the joint arrangement
and if protected health information created or received by a
covered entity is reviewed by other participating covered
entities or by a third party on their behalf for the purpose
of administering the sharing of financial risk;

(C) a group health plan and a health insurance issuer or
HMO with respect to such group health plan, but only with
respect to protected health information created or received
by such health insurance issuer or HMO that relates to
individuals who are or who have been participants or
beneficiaries in such group health plan;
(D) a group health plan and 1 or more other group health
plans each of which are maintained by the same plan sponsor;
or
(E) the group health plans described in subparagraph (D)
and health insurance issuers or HMOs with respect to such
group health plans, but only with respect to protected health
information created or received by such health insurance
issuers or HMOs that relates to individuals who are or have
been participants or beneficiaries in any of such group
health plans.
(20) Protected health information.--
(A) In general.--The term ``protected health information''
means individually identifiable health information that,
except as provided in subparagraph (B), is--
(i) transmitted by electronic media;
(ii) maintained in any medium described in the definition
of electronic media in section 162.103 of title 45, Code of
Federal Regulations; or
(iii) transmitted or maintained in any other form or
medium.
(B) Exclusions.--Such term does not include individually
identifiable health information in--
(i) education records covered by the Family Educational
Rights and Privacy Act of 1974 (section 444 of the General
Education Provisions Act (20 U.S.C. 1232g));
(ii) records described in subsection (a)(4)(B)(iv) of that
Act; or
(iii) employment records held by a covered entity in its
role as an employer.
(21) Public health authority.--The term ``public health
authority'' means an agency or authority of the United
States, a State, a territory, a political subdivision of a
State or territory, or an Indian tribe, or a person or entity
acting under a grant of authority from or contract with such
public agency, including employees or agents of such public
agency or its contractors or persons or entities to whom it
has granted authority, that is responsible for public health
matters as part of its official mandate.
(22) School or university.--The term ``school or
university'' means an institution or place for instruction or
education, including an elementary school, secondary school,
or institution of higher learning, a college, or an
assemblage of colleges united under 1 corporate organization
or government.
(23) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(24) Sale; sell; sold.--The terms ``sale'', ``sell'', and
``sold'', with respect to protected health information, mean
the exchange of such information for anything of value,
directly or indirectly, including the licensing, bartering,
or renting of such information.
(25) Use.--The term ``use'' means, with respect to
individually identifiable health information, the sharing,
employment, application, utilization, examination, or
analysis of such information within an entity that maintains
such information.
(26) Writing.--The term ``writing'' means writing in either
a paper-based or computer-based form, including electronic
and digital signatures.

SEC. 402. PROHIBITION AGAINST SELLING PROTECTED HEALTH
INFORMATION.

(a) Valid Authorization Required.--
(1) In general.--A noncovered entity shall not sell the
protected health information of an individual or use such
information for marketing purposes without an authorization
that is valid under section 403. When a noncovered entity
obtains or receives authorization to sell such information,
such sale must be consistent with such authorization.
(2) No duplicate authorization required.--Nothing in
paragraph (1) shall be construed as requiring a noncovered
entity that receives from a covered entity an authorization
that is valid under section 403 to obtain a separate
authorization from an individual before the sale or use of
the individual's protected health information so long as the
sale or use of the information is consistent with the terms
of the authorization.
(b) Scope.--A sale of protected health information as
described under subsection (a) shall be limited to the
minimum amount of information necessary to accomplish the
purpose for which the sale is made.
(c) Purpose.--A recipient of information sold pursuant to
this title may use or disclose such information solely to
carry out the purpose for which the information was sold.
(d) Not Required.--Nothing in this title permitting the
sale of protected health information shall be construed to
require such sale.
(e) Identification of Information as Protected Health
Information.--Information sold pursuant to this title shall
be clearly identified as protected health information.
(f) No Waiver.--Except as provided in this title, an
individual's authorization to sell protected health
information shall not be construed as a waiver of any rights
that the individual has under other Federal or State laws,
the rules of evidence, or common law.

SEC. 403. AUTHORIZATION FOR SALE OR MARKETING OF PROTECTED
HEALTH INFORMATION BY NONCOVERED ENTITIES.

(a) Valid Authorization.--A valid authorization is a
document that complies with all requirements of this section.
Such authorization may include additional information not
required under this section, provided that such information
is not inconsistent with the requirements of this section.
(b) Defective Authorization.--An authorization is not
valid, if the document submitted has any of the following
defects:
(1) The expiration date has passed or the expiration event
is known by the noncovered entity to have occurred.
(2) The authorization has not been filled out completely,
with respect to an element described in subsections (e) and
(f).
(3) The authorization is known by the noncovered entity to
have been revoked.
(4) The authorization lacks an element required by
subsections (e) and (f).
(5) Any material information in the authorization is known
by the noncovered entity to be false.
(c) Revocation of Authorization.--An individual may revoke
an authorization provided under this section at any time
provided that the revocation is in writing, except to the
extent that the noncovered entity has taken action in
reliance thereon.
(d) Documentation.--
(1) In general.--A noncovered entity must document and
retain any signed authorization under this section as
required under paragraph (2).
(2) Standard.--A noncovered entity shall, if a
communication is required by this title to be in writing,
maintain such writing, or an electronic copy, as
documentation.
(3) Retention period.--A noncovered entity shall retain the
documentation required by this section for 6 years from the
date of its creation or the date when it last was in effect,
whichever is later.
(e) Content of Authorization.--
(1) Content.--An authorization described in subsection (a)
shall--
(A) contain a description of the information to be sold
that identifies such information in a specific and meaningful
manner;
(B) contain the name or other specific identification of
the person, or class of persons, authorized to sell the
information;
(C) contain the name or other specific identification of
the person, or class of persons, to whom the information is
to be sold;
(D) include an expiration date or an expiration event
relating to the selling of such information that signifies
that the authorization is valid until such date or event;
(E) include a statement that the individual has a right to
revoke the authorization in writing and the exceptions to the
right to revoke, and a description of the procedure involved
in such revocation;
(F) be in writing and include the signature of the
individual and the date, or if the authorization is signed by
a personal representative of the individual, a description of
such representative's authority to act for the individual;
and
(G) include a statement explaining the purpose for which
such information is sold.
(2) Plain language.--The authorization shall be written in
plain language.
(f) Notice.--
(1) In general.--The authorization shall include a
statement that the individual may--
(A) inspect or copy the protected health information to be
sold; and
(B) refuse to sign the authorization.
(2) Copy to the individual.--A noncovered entity shall
provide the individual with a copy of the signed
authorization.

[[Page S300]]

(g) Model Authorizations.--The Secretary, after notice and
opportunity for public comment, shall develop and disseminate
model written authorizations of the type described in this
section and model statements of the limitations on such
authorizations. Any authorization obtained on a model
authorization form developed by the Secretary pursuant to the
preceding sentence shall be deemed to satisfy the
requirements of this section.
(h) Noncoercion.--A covered entity or noncovered entity
shall not condition the purchase of a product or the
provision of a service to an individual based on whether such
individual provides an authorization to such entity as
described in this section.

SEC. 404. PROHIBITION AGAINST RETALIATION.

A noncovered entity that collects protected health
information, may not adversely affect another person,
directly or indirectly, because such person has exercised a
right under this title, disclosed information relating to a
possible violation of this title, or associated with, or
assisted, a person in the exercise of a right under this
title.

SEC. 405. RULE OF CONSTRUCTION.

The requirements of this title shall not be construed to
impose any additional requirements or in any way alter the
requirements imposed upon covered entities under parts 160
through 164 of title 45, Code of Federal Regulations.

SEC. 406. REGULATIONS.

(a) In General.--The Secretary shall promulgate regulations
implementing the provisions of this title.
(b) Timeframe.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall publish proposed
regulations in the Federal Register. With regard to such
proposed regulations, the Secretary shall provide an
opportunity for submission of comments by interested persons
during a period of not less than 90 days. Not later than 2
years after the date of enactment of this Act, the Secretary
shall publish final regulations in the Federal Register.

SEC. 407. ENFORCEMENT.

(a) In General.--A covered entity or noncovered entity that
knowingly violates section 402 shall be subject to a civil
money penalty under this section.
(b) Amount.--The civil money penalty described in
subsection (a) shall not exceed $100,000. In determining the
amount of any penalty to be assessed, the Secretary shall
take into account the previous record of compliance of the
entity being assessed with the applicable provisions of this
title and the gravity of the violation.
(c) Administrative Review.--
(1) Opportunity for hearing.--The entity assessed shall be
afforded an opportunity for a hearing by the Secretary upon
request made within 30 days after the date of the issuance of
a notice of assessment. In such hearing the decision shall be
made on the record pursuant to section 554 of title 5, United
States Code. If no hearing is requested, the assessment shall
constitute a final and unappealable order.
(2) Hearing procedure.--If a hearing is requested, the
initial agency decision shall be made by an administrative
law judge, and such decision shall become the final order
unless the Secretary modifies or vacates the decision. Notice
of intent to modify or vacate the decision of the
administrative law judge shall be issued to the parties
within 30 days after the date of the decision of the judge. A
final order which takes effect under this paragraph shall be
subject to review only as provided under subsection (d).
(d) Judicial Review.--
(1) Filing of action for review.--Any entity against whom
an order imposing a civil money penalty has been entered
after an agency hearing under this section may obtain review
by the United States district court for any district in which
such entity is located or the United States District Court
for the District of Columbia by filing a notice of appeal in
such court within 30 days from the date of such order, and
simultaneously sending a copy of such notice by registered
mail to the Secretary.
(2) Certification of administrative record.--The Secretary
shall promptly certify and file in such court the record upon
which the penalty was imposed.
(3) Standard for review.--The findings of the Secretary
shall be set aside only if found to be unsupported by
substantial evidence as provided by section 706(2)(E) of
title 5, United States Code.
(4) Appeal.--Any final decision, order, or judgment of the
district court concerning such review shall be subject to
appeal as provided in chapter 83 of title 28 of such Code.
(e) Failure to Pay Assessment; Maintenance of Action.--
(1) Failure to pay assessment.--If any entity fails to pay
an assessment after it has become a final and unappealable
order, or after the court has entered final judgment in favor
of the Secretary, the Secretary shall refer the matter to the
Attorney General who shall recover the amount assessed by
action in the appropriate United States district court.
(2) Nonreviewability.--In such action the validity and
appropriateness of the final order imposing the penalty shall
not be subject to review.
(f) Payment of Penalties.--Except as otherwise provided,
penalties collected under this section shall be paid to the
Secretary (or other officer) imposing the penalty and shall
be available without appropriation and until expended for the
purpose of enforcing the provisions with respect to which the
penalty was imposed.

TITLE V--DRIVER'S LICENSE PRIVACY

SEC. 501. DRIVER'S LICENSE PRIVACY.

Section 2725 of title 18, United States Code, is amended by
striking paragraphs (2) through (4) and adding the following:
``(2) `person' means an individual, organization, or
entity, but does not include a State or agency thereof;
``(3) `personal information' means information that
identifies an individual, including an individual's
photograph, social security number, driver identification
number, name, address (but not the 5-digit zip code),
telephone number, medical or disability information, any
physical copy of a driver's license, birth date, information
on physical characteristics, including height, weight, sex or
eye color, or any biometric identifiers on a license,
including a finger print, but not information on vehicular
accidents, driving violations, and driver's status;
``(4) `highly restricted personal information' means an
individual's photograph or image, social security number,
medical or disability information, any physical copy of a
driver's license, driver identification number, birth date,
information on physical characteristics, including height,
weight, sex, or eye color, or any biometric identifiers on a
license, including a finger print; and''.

TITLE VI--MISCELLANEOUS

SEC. 601. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

(a) In General.--
(1) Civil actions.--In any case in which the attorney
general of a State has reason to believe that an interest of
the residents of that State has been or is threatened or
adversely affected by the engagement of any person in a
practice that is prohibited under title I, II, or IV of this
Act or under any amendment made by such a title, the State,
as parens patriae, may bring a civil action on behalf of the
residents of the State in a district court of the United
States of appropriate jurisdiction to--
(A) enjoin that practice;
(B) enforce compliance with such titles or such amendments;
(C) obtain damage, restitution, or other compensation on
behalf of residents of the State; or
(D) obtain such other relief as the court may consider to
be appropriate.
(2) Notice.--
(A) In general.--Before filing an action under paragraph
(1), the attorney general of the State involved shall provide
to the Attorney General--
(i) written notice of the action; and
(ii) a copy of the complaint for the action.
(B) Exemption.--
(i) In general.--Subparagraph (A) shall not apply with
respect to the filing of an action by an attorney general of
a State under this subsection, if the State attorney general
determines that it is not feasible to provide the notice
described in such subparagraph before the filing of the
action.
(ii) Notification.--In an action described in clause (i),
the attorney general of a State shall provide notice and a
copy of the complaint to the Attorney General at the same
time as the State attorney general files the action.
(b) Intervention.--
(1) In general.--On receiving notice under subsection
(a)(2), the Attorney General shall have the right to
intervene in the action that is the subject of the notice.
(2) Effect of intervention.--If the Attorney General
intervenes in an action under subsection (a), the Attorney
General shall have the right to be heard with respect to any
matter that arises in that action.
(c) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this Act shall be
construed to prevent an attorney general of a State from
exercising the powers conferred on such attorney general by
the laws of that State to--
(1) conduct investigations;
(2) administer oaths or affirmations; or
(3) compel the attendance of witnesses or the production of
documentary and other evidence.
(d) Actions by the Attorney General of the United States.--
In any case in which an action is instituted by or on behalf
of the Attorney General for violation of a practice that is
prohibited under title I, II, IV, or V of this Act or under
any amendment made by such a title, no State may, during the
pendency of that action, institute an action under subsection
(a) against any defendant named in the complaint in that
action for violation of that practice.
(e) Venue; Service of Process.--
(1) Venue.--Any action brought under subsection (a) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
(2) Service of process.--In an action brought under
subsection (a), process may be served in any district in
which the defendant--
(A) is an inhabitant; or
(B) may be found.

SEC. 602. FEDERAL INJUNCTIVE AUTHORITY.

In addition to any other enforcement authority conferred
under this Act or under an amendment made by this Act, the
Federal Government shall have injunctive authority with
respect to any violation of any provision of title I, II, or
IV of this Act or of any amendment made by such a title,
without regard to whether a public or private entity violates
such provision.

[[Page S301]]

______

By Mrs. FEINSTEIN (for herself and Mr. Voinovich):
S. 117. A bill to amend the Higher Education Act of 1965 to extend
loan forgiveness for certain loans to Head Start teachers; to the
Committee on Health, Education, Labor, and Pensions.
Mrs. FEINSTEIN. Mr. President. I rise today with Senator Voinovich to
introduce legislation to expand the federal loan forgiveness program to
include Head Start teachers.
Nationwide, only 30 percent of Head Start teachers have completed a
baccalaureate or advanced degree program.
In California, that number is even smaller: about eighteen percent of
Head Start teachers have completed a bachelor's degree.
To prepare Head Start children for elementary school, we must recruit
highly qualified teachers who have demonstrated knowledge and teaching
skills in reading, writing, early childhood development, and other
areas of the preschool curriculum with a particular focus on cognitive
learning.
Recruiting and maintaining teachers with such qualifications is the
only way to jump-start cognitive development and ensure that our
children start elementary school ready to learn.
A survey conducted by the U.S. Department of Health and Human
Services called the Head Start Family and Child Experiences Survey
(FACES) found a strong relationship between the education of Head Start
teachers and classroom quality. Teachers with higher education levels
were found to be more sensitive and responsive to their children, to
have more high quality language activities, and more creative
activities in their classrooms.

Teachers with higher levels of education also had classes with higher
quality language activities such as reading books for the children and
provided more opportunities for children to develop skills in
expressing thoughts.
Head Start is the primary federal program that has the potential to
reach out to low-income children early in their formative years when
their cognitive skills are just developing.
We know that poor children disproportionately start school behind
their peers--they are less likely to count to 10 or to recite the
alphabet.
Many of our nation's youngsters enter elementary school without the
basic skills necessary to succeed. Often these children lag behind
their peers throughout their academic career.
As taxpayers, we will spend millions on efforts to help these
children catch up. Many of these children will never catch up. A recent
national study by The High/Scope Perry Preschool confirms the
importance of providing preschool children with the opportunity early
on to gain the basic skills necessary for school.
The study found that preschoolers were more likely to graduate from
high school and be employed at age 40, earn more money a year, and were
more likely to own a home and have a savings account.

We can save millions by providing low-income children with access to
quality preschool where they will gain the necessary skills to succeed
in school and life.
In order to give every child a head start in life, we must continue
to recruit highly qualified teachers to the Head Start field and
prevent the best teachers from leaving.
Many Head Start programs across the country, including in California,
are losing qualified teachers to local school districts in part because
the pay is better.
Nationally, the average Head Start teacher earns a salary of $21,287
compared to $43,152 for an elementary school teacher.
Head Start teachers are making half of what elementary school
teachers are paid on average.
Low pay, combined with increasing student debt, is a real deterrent
to getting college graduates to become Head Start teachers.
And every teacher that Head Start loses impacts the quality and
access to services for our nation's low-income children.
One way to recruit and retain highly qualified Head Start teachers is
to offer incentives to pursue a career in this field.
Current law allows elementary and secondary school teachers to
receive up to $5,000 in loan forgiveness in exchange for five years of
service.
We believe Head Start teachers should be given this same opportunity.
The legislation we are introducing today is meant to encourage recent
graduates, current Head Start teachers without a degree, and college
students to enter and remain in the Head Start field.
In exchange for 5 years of service, a Head Start teacher could
receive up to $5,000 of their federal loans forgiven.
We must continue to improve the Head Start program so that children
will have the necessary cognitive skills when they leave the program,
such as being able to count to ten, begin to recite the alphabet, and
recognize sizes and colors.
This is just the first step. To further ensure cognitive learning, we
must also continue to raise the standards and pay for Head Start
teachers.
Providing our nation's low-income children with access to highly
educated and qualified teachers so that they enter school ready to
learn is critical to their future success and should be a priority of
this Congress.
I urge my colleagues to support this legislation. I ask unanimous
consent that the text of the legislation be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 117

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. LOAN FORGIVENESS FOR HEAD START TEACHERS.

(a) Short Title.--This section may be cited as the ``Loan
Forgiveness for Head Start Teachers Act of 2005''.
(b) Head Start Teachers.--Section 428J of the Higher
Education Act of 1965 (20 U.S.C 1078-10) is amended--
(1) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1)(A) has been employed--
``(i) as a full-time teacher for 5 consecutive complete
school years in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such a school; or
``(ii) as a Head Start teacher for 5 consecutive complete
program years under the Head Start Act; and
``(B)(i) if employed as an elementary school or secondary
school teacher, is highly qualified as defined in section
9101 of the Elementary and Secondary Education Act of 1965;
and
``(ii) if employed as a Head Start teacher, has
demonstrated knowledge and teaching skills in reading,
writing, early childhood development, and other areas of a
preschool curriculum, with a focus on cognitive learning;
and'';
(2) in subsection (g), by adding at the end the following:
``(3) Head start.--An individual shall be eligible for loan
forgiveness under this section for service described in
clause (ii) of subsection (b)(1)(A) only if such individual
received a baccalaureate or graduate degree on or after the
date of enactment of the Loan Forgiveness for Head Start
Teachers Act of 2005.''; and
(3) by adding at the end the following:
``(i) Authorization of Appropriations.--There are
authorized to be appropriated such sums as may be necessary
for fiscal year 2009 and succeeding fiscal years to carry out
loan repayment under this section for service described in
clause (ii) of subsection (b)(1)(A).''.
(c) Direct Student Loan Forgiveness.--
(1) In general.--Section 460 of the Higher Education Act of
1965 (20 U.S.C 1087j) is amended--
(A) in subsection (b)(1), by striking subparagraph (A) and
inserting the following:
``(A)(i) has been employed--
``(I) as a full-time teacher for 5 consecutive complete
school years in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such a school; or
``(II) as a Head Start teacher for 5 consecutive complete
program years under the Head Start Act; and
``(ii)(I) if employed as an elementary school or secondary
school teacher, is highly qualified as defined in section
9101 of the Elementary and Secondary Education Act of 1965;
and
``(II) if employed as a Head Start teacher, has
demonstrated knowledge and teaching skills in reading,
writing, early childhood development, and other areas of a
preschool curriculum, with a focus on cognitive learning;
and'';
(B) in subsection (g), by adding at the end the following
``(3) Head start.--An individual shall be eligible for loan
forgiveness under this section for service described in
subclause (II) of subsection (b)(l)(A)(i) only if such
individual received a baccalaureate or graduate degree on or
after the date of enactment of the Loan Forgiveness for Head
Start Teachers Act of 2005.''; and
(C) by adding at the end the following:
``(i) Authorization of Appropriations.--There are
authorized to be appropriated such sums as may be necessary
for fiscal year 2009 and succeeding fiscal years to carry out
loan

[[Page S302]]

repayment under this section for service described in
subclause (II) of subsection (b)(1)(A)(i).''.
(d) Conforming Amendments.--
(1) FFEL program.--Section 428J of the Higher Education Act
of 1965 (20 U.S.C. 1078-10) is amended--
(A) in subsection (c)(1), by inserting ``or fifth complete
program year'' after ``fifth complete school year of
teaching'';
(B) in subsection (f), by striking ``subsection (b)'' and
inserting ``subsection (b)(1)(A)(i)'';
(C) in subsection (g)(1)(A), by striking ``subsection
(b)(1)(A)'' and inserting ``subsection (b)(1)(A)(i)''; and
(D) in subsection (h), by inserting ``except as part of the
term `program year','' before ``where''.
(2) Direct loan program.--Section 460 of the Higher
Education Act of 1965 (20 U.S.C. 1087j) is amended--
(A) in subsection (c)(1), by inserting ``or fifth complete
program year'' after ``fifth complete school year of
teaching'';
(B) in subsection (f), by striking ``subsection (b)'' and
inserting ``subsection (b)(1)(A)(i)(I)'';
(C) in subsection (g)(1)(A), by striking ``subsection
(b)(1)(A)'' and inserting ``subsection (b)(1)(A)(i)(I)''; and
(D) in subsection (h), by inserting ``except as part of the
term `program year','' before ``where''.

loan forgiveness for head start teachers act of 2005

Mr. VOINOVICH. Mr. President, I am pleased to join my friend and
colleague from California, Senator Dianne Feinstein, in introducing
very important legislation that I believe will encourage young teachers
to go into early childhood education, improve the qualifications of
current early educators, and lead to a better education for our
Nation's youngest children.
Study after study on human development has found that there is no
more important time in a child's life than their earliest years. In
fact, the learning opportunities in these years have a critical and
decisive impact on the development of the brain and on the nature and
extent of their adult capacities.
To maximize their potential, we must begin to teach our children the
necessary learning skills they will utilize throughout their lives as
early as possible; well before they reach kindergarten.
I know of few other programs that have the same potential to meet
this goal as Head Start.
When I was Governor of Ohio, we invested heavily in Head Start,
increasing funding from $18 million in 1990, to $180 million in 1998.
By the time I left office, there was a space available for every
eligible child in Ohio whose parents wanted them in a Head Start or
pre-school program, and because of our efforts, Ohio led the Nation in
terms of children served by Head Start.
Now that I am in the Senate, I continue to believe that it is
absolutely critical that we do more to help our young people prepare to
begin school ``ready to learn.''
The results of a survey undertaken by the U.S. Department of Health
and Human Services in 1999 and 2000 has shown a significant correlation
between the quality of education a child receives and the amount of
education that child's teacher possesses.
Unfortunately, nationwide, just 30 percent of Head Start teachers
have earned a baccalaureate or advanced degree.
Under Ohio law, by 2007, all Head Start teachers must have at least
an associate's degree. It is hoped that this requirement will encourage
Head Start educators to pursue a bachelor's or even an advanced degree.
After all, the more education our teachers have, the better off our
children will be.
Unfortunately, as we all know, education can be expensive.
The bill we are introducing is designed to encourage currently
enrolled and incoming college students working on a bachelor's or a
master's degree to pursue a career as a Head Start teacher. It is also
intended to assist current Head Start teachers, who wish to pursue a
degree, to remain in the field.
In exchange for a 5-year teaching commitment in a qualified Head
Start program, a college graduate with a minimum of a bachelor's degree
could receive up to $5,000 in forgiveness for their Federal student
loan. Current law already permits elementary and secondary educators to
receive this type of loan forgiveness. It is time to give Head Start
teachers this same opportunity.
Recruiting and retaining Head Start and early childhood teachers
continues to be a challenge for Ohio and other States. This is not
surprising. On average, Head Start teachers earn about half of the
average salary of kindergarten teachers. For Head Start providers, this
financial difference combined with the growing cost of a college
education and student debt makes it difficult to recruit quality
teachers.
This bill will help communities, schools and other funded Head Start
providers to meet the challenge of recruiting and retaining high
quality teachers. It is one of the best ways that I know of where we
can make a real difference in the lives of our most precious resource,
our children.
One of the best uses of our Federal education resources is to target
them toward our youngest citizens where they can have the most impact.
I am pleased to have been able to work with my colleague Senator
Feinstein on this legislation, and I ask for my colleagues' support.
______

By Mrs. FEINSTEIN:
S. 118. A bill for the relief of Maria Cristina DeGrassi; to the
Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I offer today private relief
legislation to provide lawful permanent residence status to Maria
Cristina Degrassi, a 37-year-old severely disabled Italian national
currently living with her family in San Mateo, California.
I have decided to offer private relief legislation on Ms. Degrassi's
behalf because I believe that her removal from the United States would
be tragically unfair not only to her, but to her sister and brother-in-
law, Daniela Degrassi and Luca Prasso, who reside legally in the United
States and who are Ms. Degrassi's closest family and only willing
caregivers.
Ms. Degrassi has legally resided in the United States since 1997 on a
non-immigrant tourist visa. However, she is not like an ordinary
tourist. She cannot enjoy California's beautiful coastline or stunning
mountain ranges. She cannot tour Hollywood movie studios or Napa Valley
wineries. Ms. Degrassi was born premature in 1965 and, consequently, is
severely mentally handicapped and autistic. Because of these
disabilities, Ms. Degrassi has the mental capacity of a two-year old,
cannot speak and understands only a few sentences in Italian.
In addition to these challenges, Ms. Degrassi was diagnosed with
diabetes in 2001 and now requires daily insulin shots and a carefully
monitored diet.
For Ms. Degrassi, the sum of these health problems means that she
must have 24-hour-a-day, 7-day-a-week personal care and attention.
Luckily, however, there are two people in Ms. Degrassi's life who are
more than happy not only to care for her daily needs, but to love and
nurture her.
Ms. Degrassi's sister, Daniela, and her brother-in-law, Luca, are
legal permanent residents of the United States. Mr. Prasso is a highly
skilled and valued employee of PDI-DreamWorks, the world renowned movie
production company. Serving as a Character Technical Supervisor and
earning nearly $200,000 per year, Mr. Prasso has worked on such
critically acclaimed films as ``Shrek'' and ``ANTZ.'' In the course of
that work, Mr. Prasso has developed and patented new technologies and
become a leader in his field. In a letter in support of this private
legislation, DreamWorks referred to Mr. Prasso's skills as ``rar[e]''
and ``irreplaceable.''
Daniela Degrassi has also excelled in the United States, starting a
successful freelance photography career and business.
Together, Mr. Prasso and Daniela Degrassi have provided Ms. Degrassi
with the love, care and attention that she so desperately needs. When
Ms. Degrassi's father and aunt died in 1997, the couple knew that they
were the only family left who was willing to care for her. The choice
for them was clear. Mr. Prasso wrote in a letter he sent me, ``My wife
and I then faced a big decision. We refuse[d] completely to put her in
an institution. We [could not] accept the idea of not being able to
properly take care of her. No other relative was alive or came forward
to offer help. We were the only and closest persons to Cristina. We
decided to take care of her like a daughter.''

For the past seven years, Mr. Prasso and Daniela Degrassi have done
just that, organizing their lives around caring for and attending to
Ms. Degrassi.

[[Page S303]]

They cook for her and clothe and bathe her on a daily basis. Because of
the close monitoring Ms. Degrassi's diabetic condition requires, when
the couple wants to go out to dinner or see a movie, they must do so
separately so that one of them is always with Ms. Degrassi in case of
an emergency.
Despite the hardships that caring for Ms. Degrassi have imposed upon
Mr. Prasso and Daniela Degrassi, the experience has deeply enriched
their lives. In Mr. Prasso's letter, he wrote, ``despite my long work
hours and my wife['s] new successful business as a photographer, we are
able and fully committed to continue to take care [of Cristina] 24
hours a day . . . The reward of a kiss, hug or smile from Cristina is
an amazing thing and makes all the pain disappear.''
Unfortunately, if this private relief bill is not approved, this
wonderful family will face a tragic set of choices. Since 1997, Ms.
Degrassi has applied for and always received six-month extensions of
her non-immigrant tourist visa. The Degrassi's lawyer has informed the
couple that approval of the current extension is unlikely and has
recommended they withdraw their petition. This would leave Ms. Degrassi
with nothing. There are no other avenues available for her to remain in
the United States lawfully. In short, if this private relief
legislation is not approved, Ms. Degrassi will be forced to return to
Italy.
However, Mr. Prasso and Daniela Degrassi's love for their sister will
never allow her to return to Italy alone. Faced with Ms. Degrassi's
removal, the couple will leave their lives in California and move back
with her in order to continue to provide the care and attention on
which Ms. Degrassi depends.
The consequences of such a move will be tragic for this family. It
will mean the end of Mr. Prasso's highly accomplished career with
DreamWorks, as well as, the end of the photography career Daniela
Degrassi has worked so hard to build. In addition, both Mr. Prasso and
Daniela Degrassi are eligible to become United States citizens this
year.
I can think of no compelling reasons why the United States should not
enable this family to continue as they have in California. Because of
the substantial salary that Mr. Prasso and Daniela Degrassi earn and
because of the monthly pension Ms. Degrassi receives, due to her
disability, from the Italian government, there is almost no chance that
Ms. Degrassi will become a burden on the state or federal government.
In Mr. Prasso's letter to me, he made this simple request, ``We are
looking forward to find[ing] a permanent solution to this dilemma that
does not involve dismembering this family or giving up on a wonderful
job. A solution that will allow us to live a normal life like a normal
family.''
We can make this solution a reality for Ms. Degrassi and this
wonderful family. For that reason, I offer this private relief
legislation and ask my colleagues to support it.
Given these extraordinary and unique facts, I ask my colleagues to
support this private relief bill on behalf of Ms. Degrassi.
I also ask unanimous consent that the text of the legislation be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 118

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. ADJUSTMENT OF STATUS.

(a) In General.--Notwithstanding any other provision of law
or any order, for the purposes of the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), Maria Cristina
DeGrassi shall be deemed to have been lawfully admitted to,
and remained in, the United States, and shall be eligible for
issuance of an immigrant visa or for adjustment of status
under section 245 of the Immigration and Nationality Act (8
U.S.C. 1255).
(b) Application and Payment of Fees.--Subsection (a) shall
apply only if the application for issuance of an immigrant
visa or the application for adjustment of status is filed
with appropriate fees within 2 years after the date of
enactment of this Act.
(c) Reduction of Immigrant Visa Numbers.--Upon the granting
of an immigrant visa to Maria Cristina DeGrassi, the
Secretary of State shall instruct the proper officer to
reduce by 1, during the current or subsequent fiscal year,
the total number of immigrant visas that are made available
to natives of the country of the alien's birth under section
202(e) or 203(a) of the Immigration and Nationality Act (8
U.S.C. 1152(e), 1153(a)), as applicable.
______

By Mrs. FEINSTEIN (for herself, Ms. Collins, Mr. Schumer, Mr.
Hagel, Mr. Durbin, Mr. DeWine, Ms. Cantwell, Mr. Inouye, and
Mr. Feingold):
S. 119. A bill to provide for the protection of unaccompanied alien
children, and for other purposes; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I introduce today the ``Unaccompanied
Alien Child Protection Act of 2005'', legislation to reform the way the
federal government treats unaccompanied alien children who are
apprehended by federal immigration officials at our borders or within
the United States.
I first introduced legislation similar to this bill during the 107th
Congress and still strongly believe that its passage is necessary to
ensure the proper treatment of unaccompanied alien children within our
federal system. With each passing year, as members realize the
necessity for this legislation, the bill has moved further along in the
process.
I am pleased to be joined by Senators Collins, Schumer, Hagel,
Durbin, DeWine, Cantwell, Inouye and Feingold as original co-sponsors
of this legislation.
During the 108th Congress, the ``Unaccompanied Alien Child Protection
Act'' passed the Senate by unanimous consent, after garnering no less
than 34 co-sponsors. Unfortunately, the bill stalled in the House of
Representatives.
So today I re-introduce this legislation, and again, this will be one
of my top legislative priorities because I believe we have a special
obligation to ensure that every child that comes into contact with
federal officials is afforded fair and humane treatment.
In 2004, approximately 6,200 unaccompanied alien children were
apprehended by Department of Homeland Security officials and
transferred to the care of the Office of Refugee Resettlement within
the Department of Health and Human Services. This number has grown over
the years and shows no signs of abating.
Thousands of foreign-born children under the age of 18 enter the
United States each year unaccompanied by parents or other legal
guardians. These children are among the most vulnerable of the
immigrant population and these numbers are going to continue to grow
given the greater emphasis on enforcement actions by immigration
officials--which I support--and the relatively unchanged conditions
bringing them here.
These children are from all over the world, although the majority
encountered by immigration officials today are from Honduras, Guatemala
and El Salvador. Some are asylum seekers fleeing human rights abuses
and armed conflict in their homelands. Others are fleeing abuses
specific to children, such as forced recruitment of child soldiers,
forced prostitution and servitude, sexual slavery and exploitation,
child labor, abuse of street children, child brides and female genital
mutilation. Yet other children come to the United States because they
have been abused, abandoned or neglected by their parents or
caregivers. And finally, some come seeking to reunify with family
members already in the United States or seeking a better life.
Historically, U.S. immigration law and policies have been developed
and implemented without regard to their effect on children. This result
has been similar to trying to fit a square peg in a round hole--it just
doesn't work.
Under current immigration law, these children are forced to struggle
through a system designed for adults, even though they lack the
capacity to understand nuanced legal principles or courtroom and
administrative procedures. Because of this, children who may very well
be eligible for relief are often vulnerable to being deported back to
the very life-threatening situations from which they fled--before they
are even able to make their cases before the Department of Homeland
Security or an immigration judge.
Prior to March 1, 2003, the Immigration and Naturalization Service
had responsibility for the care, custody and treatment of unaccompanied
alien children. Unfortunately, the Immigration and Naturalization
Service fell short in

[[Page S304]]

fulfilling these responsibilities. The legislation that I am
introducing today builds on Section 462 of Public Law 107-296, the
Homeland Security Act of 2002, which provided for the transfer of
responsibility for the care and placement of unaccompanied alien
children from the now-abolished Immigration and Naturalization Service
to the Office of Refugee Resettlement within the Department of Health
and Human Services.
Section 462 was based on S. 121, comprehensive legislation relating
to unaccompanied alien children that I introduced during the 107th
Congress.
With the enactment of the Homeland Security Act of 2002, we set into
motion the centralization of responsibility for the care and custody of
unaccompanied alien children with the Office of Refugee Resettlement.
The first phase of this transfer of responsibility occurred on March 1,
2003. Once the transition was completed, we finally resolved the
conflict of interest inherent in the former system which pitted the
enforcement side of the Immigration and Naturalization Service against
the benefits side of that same agency in the care of unaccompanied
alien children.
I am pleased that the provision transferring responsibility for the
care and custody of unaccompanied alien children was contained in the
Homeland Security Act and that by all accounts the transition in the
care of children between the affected agencies has gone well.
But, the transfer of authority to the Office of Refugee
Resettlement--by itself--is not enough to ensure that these children
are treated fairly and humanely. Congress now has a responsibility to
go beyond the simple transfer to actually laying out the process and
steps to ensure that unaccompanied alien children are treated fairly
and humanely. We must provide the Office of Refugee Resettlement, the
Department of Homeland Security and the Department of Justice with the
tools they will need to succeed in their missions regarding the care of
unaccompanied alien children after the transfer of jurisdiction took
place.
First of all, I want to stress that this bill is not about benefits,
as it provides no new immigration benefit to unaccompanied alien
children. Rather, this bill is about the process of how we treat these
children.
The ``Unaccompanied Alien Child Protection Act'' provides guidance
and instruction to the Office of Refugee Resettlement, the Department
of Homeland Security and the Department of Justice in the following
areas:
First, in the custody, release, family reunification and detention of
unaccompanied alien children;
Second, it provides access by unaccompanied alien children to
guardians ad litem and pro bono counsel;
Third, it streamlines the Special Immigrant Juvenile (SIJ) program
and provides guidance on the training of federal government officials
and private parties who come into contact with unaccompanied alien
children;
Fourth, it requires the issuance of guidelines specific to children's
asylum claims;
Fifth, it authorizes appropriations for the care of unaccompanied
alien children; and
Sixth, it amends the Homeland Security Act of 2002 to provide
additional responsibilities and powers to the Office of Refugee
Resettlement with respect to unaccompanied alien children.
Central throughout the ``Unaccompanied Alien Child Protection Act''
are two concepts:
The United States government has a fundamental responsibility to
protect unaccompanied children in its custody; and in all proceedings
and actions, the government should have as a priority protecting the
interests of these children.
I first became involved in this issue in 2000 when I heard about a
young 15-year old Chinese girl who stood before a U.S. immigration
court facing deportation proceedings with her hands chained to her
waist, like a criminal. She had found her way to the United States as a
stowaway in a container ship captured off of Guam, hoping to escape the
repression she had experienced in her home country.
She had been placed on a boat bound for the United States by her very
own parents, fleeing China's rigid family planning laws. Under these
laws, she was denied citizenship, education and medical care. She came
to this country alone and desperate.
And what did our immigration authorities do when they found her? The
Immigration and Naturalization Service detained her in a juvenile jail
in Portland, Oregon for eight months before her asylum hearing, and
more than seven weeks after she was granted asylum.
At her asylum hearing, the young girl stood before a judge,
unrepresented by counsel, confused and unable to understand the
proceedings against her. She could not wipe away the tears from her
face because her hands were chained to her waist. According to a lawyer
who later came to represent her, ``her only crime was that her parents
had put her on a boat so she could get a better life over here.''
While the young girl eventually received asylum in our country, she
unnecessarily faced an ordeal no child should bear under our
immigration system. This young Chinese girl represents only one of the
more than 6,000 foreign-born children who, without parents or legal
guardians to protect them, are discovered in the United States each
year in need of protection.
This is unacceptable treatment and we have a responsibility to do
better than this.
Imagine the fear of an unaccompanied alien child, in the United
States alone, without a parent or guardian. Imagine that child being
thrust into a system he or she does not understand, provided no access
to pro bono counsel or guardians ad litem, placed in jail with adults
or housed with juveniles with serious criminal convictions. I find it
hard to believe that our country would allow children to be treated in
such a manner.
That is why I am introducing this legislation today. The
``Unaccompanied Alien Child Protection Act'' will help our country
fulfill the special obligation to these children to treat them fairly
and humanely.
I am proud to have the support of the United States Conference of
Catholic Bishops, the Women's Commission on Refugee Women and Children,
the Lutheran Immigration and Refugee Service, Amnesty International USA
and the United Nations High Commissioner for Refugees, and many other
organizations with whom I have worked closely to develop this
legislation.
I urge my colleagues to join with me by cosponsoring this important
measure and ensuring that these reforms are finally enacted.
I ask unanimous consent that the text of the legislation be printed
in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 119

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the
``Unaccompanied Alien Child Protection Act of 2005''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents
Sec. 2. Definitions

TITLE I--CUSTODY, RELEASE, FAMILY REUNIFICATION, AND DETENTION

Sec. 101. Procedures when encountering unaccompanied alien children
Sec. 102. Family reunification for unaccompanied alien children with
relatives in the United States
Sec. 103. Appropriate conditions for detention of unaccompanied alien
children
Sec. 104. Repatriated unaccompanied alien children
Sec. 105. Establishing the age of an unaccompanied alien child
Sec. 106. Effective date

TITLE II--ACCESS BY UNACCOMPANIED ALIEN CHILDREN TO GUARDIANS AD LITEM
AND COUNSEL

Sec. 201. Guardians ad litem
Sec. 202. Counsel
Sec. 203. Effective date; applicability

TITLE III--STRENGTHENING POLICIES FOR PERMANENT PROTECTION OF ALIEN
CHILDREN

Sec. 301. Special immigrant juvenile visa
Sec. 302. Training for officials and certain private parties who come
into contact with unaccompanied alien children
Sec. 303. Report
Sec. 304. Effective date

TITLE IV--CHILDREN REFUGEE AND ASYLUM SEEKERS

Sec. 401. Guidelines for children's asylum claims

[[Page S305]]

Sec. 402. Unaccompanied refugee children
Sec. 403. Exceptions for unaccompanied alien children in asylum and
refugee-like circumstances

TITLE V--AUTHORIZATION OF APPROPRIATIONS

Sec. 501. Authorization of appropriations

TITLE VI--AMENDMENTS TO THE HOMELAND SECURITY ACT OF 2002

Sec. 601. Additional responsibilities and powers of the Office of
Refugee Resettlement with respect to unaccompanied alien
children
Sec. 602. Technical corrections
Sec. 603. Effective date

SEC. 2. DEFINITIONS.

(a) In General.--In this Act:
(1) Competent.--The term ``competent'', in reference to
counsel, means an attorney who--
(A) complies with the duties set forth in this Act;
(B) is a member in good standing of the bar of the highest
court of any State, possession, territory, Commonwealth, or
the District of Columbia;
(C) is not under any order of any court suspending,
enjoining, restraining, disbarring, or otherwise restricting
the attorney in the practice of law; and
(D) is properly qualified to handle matters involving
unaccompanied immigrant children or is working under the
auspices of a qualified nonprofit organization that is
experienced in handling such matters.
(2) Director.--The term ``Director'' means the Director of
the Office.
(3) Directorate.--The term ``Directorate'' means the
Directorate of Border and Transportation Security established
by section 401 of the Homeland Security Act of 2002 (6 U.S.C.
201).
(4) Office.--The term ``Office'' means the Office of
Refugee Resettlement established by section 411 of the
Immigration and Nationality Act (8 U.S.C. 1521).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Homeland Security.
(6) Unaccompanied alien child.--The term ``unaccompanied
alien child'' has the meaning given the term in section
462(g)(2) of the Homeland Security Act of 2002 (6 U.S.C.
279(g)(2)).
(7) Voluntary agency.--The term ``voluntary agency'' means
a private, nonprofit voluntary agency with expertise in
meeting the cultural, developmental, or psychological needs
of unaccompanied alien children, as certified by the
Director.
(b) Amendments to the Immigration and Nationality Act.--
Section 101(a) of the Immigration and Nationality Act (8
U.S.C. 1101(a)) is amended by adding at the end the
following:
``(51) The term `unaccompanied alien child' means a child
who--
``(A) has no lawful immigration status in the United
States;
``(B) has not attained the age of 18; and
``(C) with respect to whom--
``(i) there is no parent or legal guardian in the United
States; or
``(ii) no parent or legal guardian in the United States is
able to provide care and physical custody.
``(52) The term `unaccompanied refugee children' means
persons described in paragraph (42) who--
``(A) have not attained the age of 18; and
``(B) with respect to whom there are no parents or legal
guardians available to provide care and physical custody.''.
(c) Rule of Construction.--A department or agency of a
State, or an individual or entity appointed by a State court
or juvenile court located in the United States, acting in
loco parentis, shall not be considered a legal guardian for
purposes of section 462 of the Homeland Security Act of 2002
(6 U.S.C. 279) or this Act.

TITLE I--CUSTODY, RELEASE, FAMILY REUNIFICATION, AND DETENTION

SEC. 101. PROCEDURES WHEN ENCOUNTERING UNACCOMPANIED ALIEN
CHILDREN.

(a) Unaccompanied Children Found Along the United States
Border or at United States Ports of Entry.--
(1) In general.--Subject to paragraph (2), if an
immigration officer finds an unaccompanied alien child who is
described in paragraph (2) at a land border or port of entry
of the United States and determines that such child is
inadmissible under the Immigration and Nationality Act (8
U.S.C. 1101 et seq.), the officer shall--
(A) permit such child to withdraw the child's application
for admission pursuant to section 235(a)(4) of the
Immigration and Nationality Act (8 U.S.C. 1225(a)(4)); and
(B) return such child to the child's country of nationality
or country of last habitual residence.
(2) Special rule for contiguous countries.--
(A) In general.--Any child who is a national or habitual
resident of a country that is contiguous with the United
States and that has an agreement in writing with the United
States providing for the safe return and orderly repatriation
of unaccompanied alien children who are nationals or habitual
residents of such country shall be treated in accordance with
paragraph (1), if a determination is made on a case-by-case
basis that--
(i) such child is a national or habitual resident of a
country described in this subparagraph;
(ii) such child does not have a fear of returning to the
child's country of nationality or country of last habitual
residence owing to a fear of persecution;
(iii) the return of such child to the child's country of
nationality or country of last habitual residence would not
endanger the life or safety of such child; and
(iv) the child is able to make an independent decision to
withdraw the child's application for admission due to age or
other lack of capacity.
(B) Right of consultation.--Any child described in
subparagraph (A) shall have the right, and shall be informed
of that right in the child's native language--
(i) to consult with a consular officer from the child's
country of nationality or country of last habitual residence
prior to repatriation; and
(ii) to consult, telephonically, with the Office.
(3) Rule for apprehensions at the border.--The custody of
unaccompanied alien children not described in paragraph (2)
who are apprehended at the border of the United States or at
a United States port of entry shall be treated in accordance
with subsection (b).
(b) Care and Custody of Unaccompanied Alien Children Found
in the Interior of the United States.--
(1) Establishment of jurisdiction.--
(A) In general.--Except as otherwise provided under
subparagraphs (B) and (C) and subsection (a), the care and
custody of all unaccompanied alien children, including
responsibility for their detention, where appropriate, shall
be under the jurisdiction of the Office.
(B) Exception for children who have committed crimes.--
Notwithstanding subparagraph (A), the Directorate shall
retain or assume the custody and care of any unaccompanied
alien child who--
(i) has been charged with any felony, excluding offenses
proscribed by the Immigration and Nationality Act (8 U.S.C.
1101 et seq.), while such charges are pending; or
(ii) has been convicted of any such felony.
(C) Exception for children who threaten national
security.--Notwithstanding subparagraph (A), the Directorate
shall retain or assume the custody and care of an
unaccompanied alien child if the Secretary has substantial
evidence, based on an individualized determination, that such
child could personally endanger the national security of the
United States.
(D) Trafficking victims.--For purposes of section 462 of
the Homeland Security Act of 2002 (6 U.S.C. 279) and this
Act, an unaccompanied alien child who is eligible for
services authorized under the Victims of Trafficking and
Violence Protection Act of 2000 (Public Law 106-386), shall
be considered to be in the custody of the Office.
(2) Notification.--
(A) In general.--The Secretary shall promptly notify the
Office upon--
(i) the apprehension of an unaccompanied alien child;
(ii) the discovery that an alien in the custody of the
Directorate is an unaccompanied alien child;
(iii) any claim by an alien in the custody of the
Directorate that such alien is under the age of 18; or
(iv) any suspicion that an alien in the custody of the
Directorate who has claimed to be over the age of 18 is
actually under the age of 18.
(B) Special rule.--In the case of an alien described in
clause (iii) or (iv) of subparagraph (A), the Director shall
make an age determination in accordance with section 105 and
take whatever other steps are necessary to determine whether
such alien is eligible for treatment under section 462 of the
Homeland Security Act of 2002 (6 U.S.C. 279) or this Act.
(3) Transfer of unaccompanied alien children.--
(A) Transfer to the office.--The care and custody of an
unaccompanied alien child shall be transferred to the
Office--
(i) in the case of a child not described in subparagraph
(B) or (C) of paragraph (1), not later than 72 hours after a
determination is made that such child is an unaccompanied
alien child;
(ii) in the case of a child whose custody and care has been
retained or assumed by the Directorate pursuant to
subparagraph (B) or (C) of paragraph (1), immediately
following a determination that the child no longer meets the
description set forth in such subparagraphs; or
(iii) in the case of a child who was previously released to
an individual or entity described in section 102(a)(1), upon
a determination by the Director that such individual or
entity is no longer able to care for the child.
(B) Transfer to the directorate.--Upon determining that a
child in the custody of the Office is described in
subparagraph (B) or (C) of paragraph (1), the Director shall
transfer the care and custody of such child to the
Directorate.
(C) Promptness of transfer.--In the event of a need to
transfer a child under this paragraph, the sending office
shall make prompt arrangements to transfer such child and the
receiving office shall make prompt arrangements to receive
such child.
(c) Age Determinations.--In any case in which the age of an
alien is in question and the resolution of questions about
the age of such alien would affect the alien's eligibility
for treatment under section 462 of the Homeland Security Act
of 2002 (6 U.S.C. 279) or this Act, a determination of
whether or not such

[[Page S306]]

alien meets such age requirements shall be made by the
Director in accordance with section 105.

SEC. 102. FAMILY REUNIFICATION FOR UNACCOMPANIED ALIEN
CHILDREN WITH RELATIVES IN THE UNITED STATES.

(a) Placement Authority.--
(1) Order of preference.--Subject to the discretion of the
Director under paragraph (4), section 103(a)(2), and section
462(b)(2) of the Homeland Security Act of 2002 (6 U.S.C.
279(b)(2)), an unaccompanied alien child in the custody of
the Office shall be promptly placed with 1 of the following
individuals or entities in the following order of preference:
(A) A parent who seeks to establish custody, as described
in paragraph (3)(A).
(B) A legal guardian who seeks to establish custody, as
described in paragraph (3)(A).
(C) An adult relative.
(D) An individual or entity designated by the parent or
legal guardian that is capable and willing to care for the
well-being of the child.
(E) A State-licensed juvenile shelter, group home, or
foster care program willing to accept physical custody of the
child.
(F) A qualified adult or entity seeking custody of the
child when it appears that there is no other likely
alternative to long-term detention and family reunification
does not appear to be a reasonable alternative. For purposes
of this subparagraph, the Office shall decide who is a
qualified adult or entity and promulgate regulations in
accordance with such decision.
(2) Suitability assessment.--Notwithstanding paragraph (1),
no unaccompanied alien child shall be placed with a person or
entity unless a valid suitability assessment conducted by an
agency of the State of the child's proposed residence, by an
agency authorized by that State to conduct such an
assessment, or by an appropriate voluntary agency contracted
with the Office to conduct such assessments, has found that
the person or entity is capable of providing for the child's
physical and mental well-being.
(3) Right of parent or legal guardian to custody of
unaccompanied alien child.--
(A) Placement with parent or legal guardian.--If an
unaccompanied alien child is placed with any person or entity
other than a parent or legal guardian, and subsequent to that
placement a parent or legal guardian seeks to establish
custody, the Director shall--
(i) assess the suitability of placing the child with the
parent or legal guardian; and
(ii) make a written determination on the child's placement
within 30 days.
(B) Rule of construction.--Nothing in this Act shall be
construed to--
(i) supersede obligations under any treaty or other
international agreement to which the United States is a
party, including The Hague Convention on the Civil Aspects of
International Child Abduction, the Vienna Declaration and
Program of Action, and the Declaration of the Rights of the
Child; or
(ii) limit any right or remedy under such international
agreement.
(4) Protection from smugglers and traffickers.--
(A) Policies and programs.--
(i) In general.--The Director shall establish policies and
programs to ensure that unaccompanied alien children are
protected from smugglers, traffickers, or other persons
seeking to victimize or otherwise engage such children in
criminal, harmful, or exploitative activity.
(ii) Witness protection programs included.--Programs
established pursuant to clause (i) may include witness
protection programs.
(B) Criminal investigations and prosecutions.--Any officer
or employee of the Office or the Department of Homeland
Security, and any grantee or contractor of the Office, who
suspects any individual of involvement in any activity
described in subparagraph (A) shall report such individual to
Federal or State prosecutors for criminal investigation and
prosecution.
(C) Disciplinary action.--Any officer or employee of the
Office or the Department of Homeland Security, and any
grantee or contractor of the Office, who suspects an attorney
of involvement in any activity described in subparagraph (A)
shall report the individual to the State bar association of
which the attorney is a member, or to other appropriate
disciplinary authorities, for appropriate disciplinary
action, which may include private or public admonition or
censure, suspension, or disbarment of the attorney from the
practice of law.
(5) Grants and contracts.--The Director may award grants
to, and enter into contracts with, voluntary agencies to
carry out this section or section 462 of the Homeland
Security Act of 2002 (6 U.S.C. 279).
(6) Reimbursement of state expenses.--The Director may
reimburse States for any expenses they incur in providing
assistance to unaccompanied alien children who are served
pursuant to this Act or section 462 of the Homeland Security
Act of 2002 (6 U.S.C. 279).
(b) Confidentiality.--All information obtained by the
Office relating to the immigration status of a person
described in subparagraphs (A), (B), and (C) of subsection
(a)(1) shall remain confidential and may be used only for the
purposes of determining such person's qualifications under
subsection (a)(1).
(c) Required Disclosure.--The Secretary of Health and Human
Services or the Secretary of Homeland Security shall provide
the information furnished under this section, and any other
information derived from such furnished information, to--
(1) a duly recognized law enforcement entity in connection
with an investigation or prosecution of an offense described
in paragraph (2) or (3) of section 212(a) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)), when such information
is requested in writing by such entity; or
(2) an official coroner for purposes of affirmatively
identifying a deceased individual (whether or not such
individual is deceased as a result of a crime).
(d) Penalty.--Whoever knowingly uses, publishes, or permits
information to be examined in violation of this section shall
be fined not more than $10,000.

SEC. 103. APPROPRIATE CONDITIONS FOR DETENTION OF
UNACCOMPANIED ALIEN CHILDREN.

(a) Standards for Placement.--
(1) Prohibition of detention in certain facilities.--Except
as provided in paragraph (2), an unaccompanied alien child
shall not be placed in an adult detention facility or a
facility housing delinquent children.
(2) Detention in appropriate facilities.--An unaccompanied
alien child who has exhibited a violent or criminal behavior
that endangers others may be detained in conditions
appropriate to such behavior in a facility appropriate for
delinquent children.
(3) State licensure.--A child shall not be placed with an
entity described in section 102(a)(1)(E), unless the entity
is licensed by an appropriate State agency to provide
residential, group, child welfare, or foster care services
for dependent children.
(4) Conditions of detention.--
(A) In general.--The Director and the Secretary of Homeland
Security shall promulgate regulations incorporating standards
for conditions of detention in such placements that provide
for--
(i) educational services appropriate to the child;
(ii) medical care;
(iii) mental health care, including treatment of trauma,
physical and sexual violence, or abuse;
(iv) access to telephones;
(v) access to legal services;
(vi) access to interpreters;
(vii) supervision by professionals trained in the care of
children, taking into account the special cultural,
linguistic, and experiential needs of children in immigration
proceedings;
(viii) recreational programs and activities;
(ix) spiritual and religious needs; and
(x) dietary needs.
(B) Notification of children.--Regulations promulgated
under subparagraph (A) shall provide that all children are
notified of such standards orally and in writing in the
child's native language.
(b) Prohibition of Certain Practices.--The Director and the
Secretary shall develop procedures prohibiting the
unreasonable use of--
(1) shackling, handcuffing, or other restraints on
children;
(2) solitary confinement; or
(3) pat or strip searches.
(c) Rule of Construction.--Nothing in this section shall be
construed to supersede procedures favoring release of
children to appropriate adults or entities or placement in
the least secure setting possible, as defined in the
Stipulated Settlement Agreement under Flores v. Reno.

SEC. 104. REPATRIATED UNACCOMPANIED ALIEN CHILDREN.

(a) Country Conditions.--
(1) Sense of congress.--It is the sense of Congress that,
to the extent consistent with the treaties and other
international agreements to which the United States is a
party, and to the extent practicable, the United States
Government should undertake efforts to ensure that it does
not repatriate children in its custody into settings that
would threaten the life and safety of such children.
(2) Assessment of conditions.--
(A) In general.--The annual Country Reports on Human Rights
Practices published by the Department of State shall contain
an assessment of the degree to which each country protects
children from smugglers and traffickers.
(B) Factors for assessment.--The Directorate shall consult
the Country Reports on Human Rights Practices and the
Trafficking in Persons Report in assessing whether to
repatriate an unaccompanied alien child to a particular
country.
(b) Report on Repatriation of Unaccompanied Alien
Children.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, and annually thereafter, the Secretary
shall submit a report to the Committee on the Judiciary of
the Senate and the Committee on the Judiciary of the House of
Representatives on efforts to repatriate unaccompanied alien
children.
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) the number of unaccompanied alien children ordered
removed and the number of such children actually removed from
the United States;
(B) a description of the type of immigration relief sought
and denied to such children;
(C) a statement of the nationalities, ages, and gender of
such children;
(D) a description of the procedures used to effect the
removal of such children from the United States;

[[Page S307]]

(E) a description of steps taken to ensure that such
children were safely and humanely repatriated to their
country of origin; and
(F) any information gathered in assessments of country and
local conditions pursuant to subsection (a)(2).

SEC. 105. ESTABLISHING THE AGE OF AN UNACCOMPANIED ALIEN
CHILD.

(a) Procedures.--
(1) In general.--The Director shall develop procedures to
make a prompt determination of the age of an alien in the
custody of the Department of Homeland Security or the Office,
when the age of the alien is at issue.
(2) Evidence.--The procedures developed under paragraph (1)
shall--
(A) permit the presentation of multiple forms of evidence,
including testimony of the child, to determine the age of the
unaccompanied alien for purposes of placement, custody,
parole, and detention; and
(B) allow the appeal of a determination to an immigration
judge.
(3) Access to alien.--The Secretary of Homeland Security
shall permit the Office to have reasonable access to aliens
in the custody of the Secretary so as to ensure a prompt
determination of the age of such alien.
(b) Prohibition on Sole Means of Determining Age.--
Radiographs or the attestation of an alien shall not be used
as the sole means of determining age for the purposes of
determining an alien's eligibility for treatment under this
Act or section 462 of the Homeland Security Act of 2002 (6
U.S.C. 279).
(c) Rule of Construction.--Nothing in this section shall be
construed to place the burden of proof in determining the age
of an alien on the government.

SEC. 106. EFFECTIVE DATE.

This title shall take effect on the date which is 90 days
after the date of enactment of this Act.

TITLE II--ACCESS BY UNACCOMPANIED ALIEN CHILDREN TO GUARDIANS AD LITEM
AND COUNSEL

SEC. 201. GUARDIANS AD LITEM.

(a) Establishment of Guardian Ad Litem Program.--
(1) Appointment.--The Director may appoint a guardian ad
litem, who meets the qualifications described in paragraph
(2), for an unaccompanied alien child. The Director is
encouraged, wherever practicable, to contract with a
voluntary agency for the selection of an individual to be
appointed as a guardian ad litem under this paragraph.
(2) Qualifications of guardian ad litem.--
(A) In general.--No person shall serve as a guardian ad
litem unless such person--
(i) is a child welfare professional or other individual who
has received training in child welfare matters; and
(ii) possesses special training on the nature of problems
encountered by unaccompanied alien children.
(B) Prohibition.--A guardian ad litem shall not be an
employee of the Directorate, the Office, or the Executive
Office for Immigration Review.
(3) Duties.--The guardian ad litem shall--
(A) conduct interviews with the child in a manner that is
appropriate, taking into account the child's age;
(B) investigate the facts and circumstances relevant to the
child's presence in the United States, including facts and
circumstances--
(i) arising in the country of the child's nationality or
last habitual residence; and
(ii) arising subsequent to the child's departure from such
country;
(C) work with counsel to identify the child's eligibility
for relief from removal or voluntary departure by sharing
with counsel information collected under subparagraph (B);
(D) develop recommendations on issues relative to the
child's custody, detention, release, and repatriation;
(E) take reasonable steps to ensure that--
(i) the best interests of the child are promoted while the
child participates in, or is subject to, proceedings or
matters under the Immigration and Nationality Act (8 U.S.C.
1101 et seq.);
(ii) the child understands the nature of the legal
proceedings or matters and determinations made by the court,
and that all information is conveyed to the child in an age-
appropriate manner; and
(F) report factual findings relating to--
(i) information collected under subparagraph (B);
(ii) the care and placement of the child during the
pendency of the proceedings or matters; and
(iii) any other information collected under subparagraph
(D).
(4) Termination of appointment.--The guardian ad litem
shall carry out the duties described in paragraph (3) until
the earliest of the date on which--
(A) those duties are completed;
(B) the child departs the United States;
(C) the child is granted permanent resident status in the
United States;
(D) the child attains the age of 18; or
(E) the child is placed in the custody of a parent or legal
guardian.
(5) Powers.--The guardian ad litem--
(A) shall have reasonable access to the child, including
access while such child is being held in detention or in the
care of a foster family;
(B) shall be permitted to review all records and
information relating to such proceedings that are not deemed
privileged or classified;
(C) may seek independent evaluations of the child;
(D) shall be notified in advance of all hearings or
interviews involving the child that are held in connection
with proceedings or matters under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), and shall be given a
reasonable opportunity to be present at such hearings or
interviews;
(E) shall be permitted to consult with the child during any
hearing or interview involving such child; and
(F) shall be provided at least 24 hours advance notice of a
transfer of that child to a different placement, absent
compelling and unusual circumstances warranting the transfer
of such child before such notification.
(b) Training.--
(1) In general.--The Director shall provide professional
training for all persons serving as guardians ad litem under
this section.
(2) Training topics.--The training provided under paragraph
(1) shall include training in--
(A) the circumstances and conditions that unaccompanied
alien children face; and
(B) various immigration benefits for which such alien child
might be eligible.
(c) Pilot Program.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Director shall establish and begin
to carry out a pilot program to test the implementation of
subsection (a).
(2) Purpose.--The purpose of the pilot program established
under paragraph (1) is to--
(A) study and assess the benefits of providing guardians ad
litem to assist unaccompanied alien children involved in
immigration proceedings or matters;
(B) assess the most efficient and cost-effective means of
implementing the guardian ad litem provisions in this
section; and
(C) assess the feasibility of implementing such provisions
on a nationwide basis for all unaccompanied alien children in
the care of the Office.
(3) Scope of program.--
(A) Selection of site.--The Director shall select 3 sites
in which to operate the pilot program established under
paragraph (1).
(B) Number of children.--To the greatest extent possible,
each site selected under subparagraph (A) should have at
least 25 children held in immigration custody at any given
time.
(4) Report to congress.--Not later than 1 year after the
date on which the first pilot program site is established
under paragraph (1), the Director shall submit a report on
the achievement of the purposes described in paragraph (2) to
the Committee on the Judiciary of the Senate and the
Committee on the Judiciary of the House of Representatives.

SEC. 202. COUNSEL.

(a) Access to Counsel.--
(1) In general.--The Director should ensure that all
unaccompanied alien children in the custody of the Office or
the Directorate, who are not described in section 101(a)(2),
have competent counsel to represent them in immigration
proceedings or matters.
(2) Pro bono representation.--To the maximum extent
practicable, the Director should--
(A) make every effort to utilize the services of competent
pro bono counsel who agree to provide representation to such
children without charge; and
(B) ensure that placements made under subparagraphs (D),
(E), and (F) of section 102(a)(1) are in cities where there
is a demonstrated capacity for competent pro bono
representation.
(3) Development of necessary infrastructures and systems.--
In ensuring that legal representation is provided to
unaccompanied alien children, the Director shall develop the
necessary mechanisms to identify entities available to
provide such legal assistance and representation and to
recruit such entities.
(4) Contracting and grant making authority.--
(A) In general.--The Director shall enter into contracts
with, or award grants to, nonprofit agencies with relevant
expertise in the delivery of immigration-related legal
services to children in order to carry out the
responsibilities of this Act, including providing legal
orientation, screening cases for referral, recruiting,
training, and overseeing pro bono attorneys.
(B) Subcontracting.--Nonprofit agencies may enter into
subcontracts with, or award grants to, private voluntary
agencies with relevant expertise in the delivery of
immigration-related legal services to children in order to
carry out this subsection.
(C) Considerations regarding grants and contracts.--In
awarding grants and entering into contracts with agencies
under this paragraph, the Director shall take into
consideration the capacity of the agencies in question to
properly administer the services covered by such grants or
contracts without an undue conflict of interest.
(5) Model guidelines on legal representation of children.--
(A) Development of guidelines.--The Executive Office for
Immigration Review, in consultation with voluntary agencies
and national experts, shall develop model guidelines for the
legal representation of alien children in immigration
proceedings. Such guidelines shall be based on the children's
asylum guidelines, the American Bar Association Model Rules
of Professional Conduct, and other relevant domestic or
international sources.
(B) Purpose of guidelines.--The guidelines developed under
subparagraph (A) shall

[[Page S308]]

be designed to help protect each child from any individual
suspected of involvement in any criminal, harmful, or
exploitative activity associated with the smuggling or
trafficking of children, while ensuring the fairness of the
removal proceeding in which the child is involved.
(C) Implementation.--The Executive Office for Immigration
Review shall adopt the guidelines developed under
subparagraph (A) and submit the guidelines for adoption by
national, State, and local bar associations.
(b) Duties.--Counsel shall--
(1) represent the unaccompanied alien child in all
proceedings and matters relating to the immigration status of
the child or other actions involving the Directorate;
(2) appear in person for all individual merits hearings
before the Executive Office for Immigration Review and
interviews involving the Directorate; and
(3) owe the same duties of undivided loyalty,
confidentiality, and competent representation to the child as
is due an adult client.
(c) Access to Child.--
(1) In general.--Counsel shall have reasonable access to
the unaccompanied alien child, including access while the
child is being held in detention, in the care of a foster
family, or in any other setting that has been determined by
the Office.
(2) Restriction on transfers.--Absent compelling and
unusual circumstances, no child who is represented by counsel
shall be transferred from the child's placement to another
placement unless advance notice of at least 24 hours is made
to counsel of such transfer.
(d) Notice to Counsel During Immigration Proceedings.--
(1) In general.--Except when otherwise required in an
emergency situation involving the physical safety of the
child, counsel shall be given prompt and adequate notice of
all immigration matters affecting or involving an
unaccompanied alien child, including adjudications,
proceedings, and processing, before such actions are taken.
(2) Opportunity to consult with counsel.--An unaccompanied
alien child in the custody of the Office may not give consent
to any immigration action, including consenting to voluntary
departure, unless first afforded an opportunity to consult
with counsel.
(e) Access to Recommendations of Guardian Ad Litem.--
Counsel shall be given an opportunity to review the
recommendation by the guardian ad litem affecting or
involving a client who is an unaccompanied alien child.

SEC. 203. EFFECTIVE DATE; APPLICABILITY.

(a) Effective Date.--This title shall take effect 180 days
after the date of enactment of this Act.
(b) Applicability.--The provisions of this title shall
apply to all unaccompanied alien children in Federal custody
on, before, or after the effective date of this title.

TITLE III--STRENGTHENING POLICIES FOR PERMANENT PROTECTION OF ALIEN
CHILDREN

SEC. 301. SPECIAL IMMIGRANT JUVENILE VISA.

(a) J Visa.--Section 101(a)(27)(J) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(27)(J)) is amended to read
as follows:
``(J) an immigrant, who is 18 years of age or younger on
the date of application and who is present in the United
States--
``(i) who by a court order, which shall be binding on the
Secretary of Homeland Security for purposes of adjudications
under this subparagraph, was declared dependent on a juvenile
court located in the United States or whom such a court has
legally committed to, or placed under the custody of, a
department or agency of a State, or an individual or entity
appointed by a State or juvenile court located in the United
States, due to abuse, neglect, abandonment, or a similar
basis found under State law;
``(ii) for whom it has been determined in administrative or
judicial proceedings that it would not be in the alien's best
interest to be returned to the alien's or parent's previous
country of nationality or country of last habitual residence;
and
``(iii) with respect to a child in Federal custody, for
whom the Office of Refugee Resettlement of the Department of
Health and Human Services has certified to the Director of
the Bureau of Citizenship and Immigration Services that the
classification of an alien as a special immigrant under this
subparagraph has not been made solely to provide an
immigration benefit to that alien,

except that no natural parent or prior adoptive parent of any
alien provided special immigrant status under this
subparagraph shall thereafter, by virtue of such parentage,
be accorded any right, privilege, or status under this
Act;''.
(b) Adjustment of Status.--Section 245(h)(2)(A) of the
Immigration and Nationality Act (8 U.S.C. 1255(h)(2)(A)) is
amended to read as follows:
``(A) paragraphs (4), (5)(A), (6)(A), and (7) of section
212(a) shall not apply; and''.
(c) Eligibility for Assistance.--A child who has been
granted relief under section 101(a)(27)(J) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(27)(J)), shall be
eligible for all funds made available under section 412(d) of
that Act (8 U.S.C. 1522(d)) until such time as the child
attains the age designated in section 412(d)(2)(B) of that
Act (8 U.S.C. 1522(d)(2)(B)), or until the child is placed in
a permanent adoptive home, whichever occurs first.
(d) Transition Rule.--Notwithstanding any other provision
of law, any child described in section 101(a)(27)(J) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(27)(J)) who
filed an application for a visa before the date of enactment
of this Act and who was 19, 20, or 21 years of age on the
date such application was filed shall not be denied a visa
after the date of enactment of this Act because of such
alien's age.

SEC. 302. TRAINING FOR OFFICIALS AND CERTAIN PRIVATE PARTIES
WHO COME INTO CONTACT WITH UNACCOMPANIED ALIEN
CHILDREN.

(a) Training of State and Local Officials and Certain
Private Parties.--
(1) In general.--The Secretary of Health and Human
Services, acting jointly with the Secretary, shall provide
appropriate training to State and county officials, child
welfare specialists, teachers, public counsel, and juvenile
judges who come into contact with unaccompanied alien
children.
(2) Curriculum.--The training shall provide education on
the processes pertaining to unaccompanied alien children with
pending immigration status and on the forms of relief
potentially available. The Director shall be responsible for
establishing a core curriculum that can be incorporated into
education, training, or orientation modules or formats that
are currently used by these professionals.
(b) Training of Directorate Personnel.--The Secretary,
acting jointly with the Secretary of Health and Human
Services, shall provide specialized training to all personnel
of the Directorate who come into contact with unaccompanied
alien children. Training for Border Patrol agents and
immigration inspectors shall include specific training on
identifying children at the United States borders or at
United States ports of entry who have been victimized by
smugglers or traffickers, and children for whom asylum or
special immigrant relief may be appropriate, including
children described in section 101(a)(2).

SEC. 303. REPORT.

Not later than 1 year after the date of enactment of this
Act, and annually thereafter, the Secretary of Health and
Human Services shall submit a report for the previous fiscal
year to the Committee on the Judiciary of the Senate and the
Committee on the Judiciary of the House of Representatives
that contains--
(1) data related to the implementation of section 462 of
the Homeland Security Act (6 U.S.C. 279);
(2) data regarding the care and placement of children in
accordance with this Act;
(3) data regarding the provision of guardian ad litem and
counsel services under this Act; and
(4) any other information that the Director or the
Secretary of Health and Human Services determines to be
appropriate.

SEC. 304. EFFECTIVE DATE.

The amendment made by section 301 shall apply to all aliens
who were in the United States before, on, or after the date
of enactment of this Act.

TITLE IV--CHILDREN REFUGEE AND ASYLUM SEEKERS

SEC. 401. GUIDELINES FOR CHILDREN'S ASYLUM CLAIMS.

(a) Sense of Congress.--Congress commends the Immigration
and Naturalization Service for its issuance of its
``Guidelines for Children's Asylum Claims'', dated December
1998, and encourages and supports the implementation of such
guidelines by the Immigration and Naturalization Service (and
its successor entities) in an effort to facilitate the
handling of children's asylum claims. Congress calls upon the
Executive Office for Immigration Review of the Department of
Justice to adopt the ``Guidelines for Children's Asylum
Claims'' in its handling of children's asylum claims before
immigration judges and the Board of Immigration Appeals.
(b) Training.--The Secretary shall provide periodic
comprehensive training under the ``Guidelines for Children's
Asylum Claims'' to asylum officers, immigration judges,
members of the Board of Immigration Appeals, and immigration
officers who have contact with children in order to
familiarize and sensitize such officers to the needs of
children asylum seekers. Voluntary agencies shall be allowed
to assist in such training.

SEC. 402. UNACCOMPANIED REFUGEE CHILDREN.

(a) Identifying Unaccompanied Refugee Children.--Section
207(e) of the Immigration and Nationality Act (8 U.S.C.
1157(e)) is amended--
(1) by redesignating paragraphs (3), (4), (5), (6), and (7)
as paragraphs (4), (5), (6), (7), and (8), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) An analysis of the worldwide situation faced by
unaccompanied refugee children, by region, which shall
include an assessment of--
``(A) the number of unaccompanied refugee children, by
region;
``(B) the capacity of the Department of State to identify
such refugees;
``(C) the capacity of the international community to care
for and protect such refugees;
``(D) the capacity of the voluntary agency community to
resettle such refugees in the United States;
``(E) the degree to which the United States plans to
resettle such refugees in the United States in the coming
fiscal year; and
``(F) the fate that will befall such unaccompanied refugee
children for whom resettlement in the United States is not
possible.''.

[[Page S309]]

(b) Training on the Needs of Unaccompanied Refugee
Children.--Section 207(f)(2) of the Immigration and
Nationality Act (8 U.S.C. 1157(f)(2)) is amended by--
(1) striking ``and'' after ``countries,''; and
(2) inserting before the period at the end the following:
``, and instruction on the needs of unaccompanied refugee
children''.

SEC. 403. EXCEPTIONS FOR UNACCOMPANIED ALIEN CHILDREN IN
ASYLUM AND REFUGEE-LIKE CIRCUMSTANCES.

(a) Placement in Removal Proceedings.--Any unaccompanied
alien child apprehended by the Directorate, except for an
unaccompanied alien child subject to exceptions under
paragraph (1)(A) or (2) of section (101)(a), shall be placed
in removal proceedings under section 240 of the Immigration
and Nationality Act (8 U.S.C. 1229a).
(b) Exception From Time Limit for Filing Asylum
Application.--Section 208(a)(2) of the Immigration and
Nationality Act (8 U.S.C. 1158(a)(2)) is amended by adding at
the end the following:
``(E) Applicability.--Subparagraphs (A) and (B) shall not
apply to an unaccompanied alien child as defined in section
101(a)(51).''.

TITLE V--AUTHORIZATION OF APPROPRIATIONS

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated to
the Department of Homeland Security, the Department of
Justice, and the Department of Health and Human Services,
such sums as may be necessary to carry out--
(1) the provisions of section 462 of the Homeland Security
Act of 2002 (6 U.S.C. 279); and
(2) the provisions of this Act.
(b) Availability of Funds.--Amounts appropriated pursuant
to subsection (a) shall remain available until expended.

TITLE VI--AMENDMENTS TO THE HOMELAND SECURITY ACT OF 2002

SEC. 601. ADDITIONAL RESPONSIBILITIES AND POWERS OF THE
OFFICE OF REFUGEE RESETTLEMENT WITH RESPECT TO
UNACCOMPANIED ALIEN CHILDREN.

(a) Additional Responsibilities of the Director.--Section
462(b)(1) of the Homeland Security Act of 2002 (6 U.S.C.
279(b)(1)) is amended--
(1) in subparagraph (K), by striking ``and'' at the end;
(2) in subparagraph (L), by striking the period at the end
and inserting ``, including regular follow-up visits to such
facilities, placements, and other entities, to assess the
continued suitability of such placements; and''; and
(3) by adding at the end the following:
``(M) ensuring minimum standards of care for all
unaccompanied alien children--
``(i) for whom detention is necessary; and
``(ii) who reside in settings that are alternative to
detention.''.
(b) Additional Powers of the Director.--Section 462(b) of
the Homeland Security Act of 2002 (6 U.S.C. 279(b)) is
amended by adding at the end the following:
``(4) Authority.--In carrying out the duties under
paragraph (3), the Director is authorized to--
``(A) contract with service providers to perform the
services described in sections 102, 103, 201, and 202 of the
Unaccompanied Alien Child Protection Act of 2005; and
``(B) compel compliance with the terms and conditions set
forth in section 103 of the Unaccompanied Alien Child
Protection Act of 2005, including the power to--
``(i) declare providers to be in breach and seek damages
for noncompliance;
``(ii) terminate the contracts of providers that are not in
compliance with such conditions; and
``(iii) reassign any unaccompanied alien child to a similar
facility that is in compliance with such section.''.

SEC. 602. TECHNICAL CORRECTIONS.

Section 462(b) of the Homeland Security Act of 2002 (6
U.S.C. 279(b)), as amended by section 601, is amended--
(1) in paragraph (3), by striking ``paragraph (1)(G)'' and
inserting ``paragraph (1)''; and
(2) by adding at the end the following:
``(5) Statutory construction.--Nothing in paragraph (2)(B)
may be construed to require that a bond be posted for
unaccompanied alien children who are released to a qualified
sponsor.''.

SEC. 603. EFFECTIVE DATE.

The amendments made by this title shall take effect as if
included in the Homeland Security Act of 2002 (6 U.S.C. 101
et seq.).
______

By Mrs. FEINSTEIN:
S. 120. A bill for the relief of Esidronio Arreola-Saucedo, Maria
Elna Cobian Arreola, Nayely Bibiana Arreola, and Cindy Jael Arreola; to
the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I offer today private immigration
relief legislation to provide lawful permanent residence status to
Esidronio Arreola-Saucedo, Maria Elena Cobian Arreola, Nayely Bibiana
Arreola and Cindy Jael Arreola, Mexican nationals living in the Fresno
area of California.
Mr. and Mrs. Arreola have lived in the United States for almost 20
years. Two of their five children, Nayely, age 18, and Cindy, age 16,
also stand to benefit from this legislation. Their other three
children, Roberto, age 13, Daniel, age 9, and Saray, age 8, are United
States citizens. Today, Mr. and Mrs. Arreola and their two eldest
children face deportation.
The story of the Arreola family is compelling and I believe they
merit Congress's special consideration for such an extraordinary form
of relief as a private bill.
The Arreolas are in this uncertain situation in part because of
grievous errors committed by their previous counsel, who has since been
disbarred. In fact, the attorney's conduct was so egregious that it
compelled an immigration judge to write the Executive Office of
Immigration Review seeking his disbarment for the detriment he caused
his immigration clients.
Mr. Arreola has lived in the United States since 1986. He was an
agricultural migrant worker in the fields of California for several
years, and as such would have been eligible for permanent residence
through the Seasonal Agricultural Workers, SAW, program had he known
about it.
Mrs. Arreola was living in the United States at the time she became
pregnant with her daughter Cindy, but returned to Mexico to give birth
so as to avoid any problems with the Immigration and Naturalization
Service.
Given the length of time that the Arreolas had, and have been, in the
United States it is quite likely that they would have qualified for
relief from deportation pursuant to the cancellation of removal
provisions of the Immigration and Nationality Act, but for the conduct
of their previous attorney.
Perhaps one of the most compelling reasons for permitting the family
to remain in the United States is the devastating impact their
deportation would have on their children--three of whom are U.S.
citizens, as I stated earlier, and the other two who have lived in the
United States since they were toddlers. For these children, this
country is the only country they really know.
Nayely, the oldest, is a freshman at Fresno Pacific University. She
was the first in her family to graduate from high school and the first
to attend college. She attends Fresno Pacific University, a regionally
ranked university, on a full tuition scholarship package and works
part-time in the admissions office.
At her young age, Nayely has demonstrated a strong commitment to the
ideals of citizenship in her adopted country. She has worked hard to
achieve her full potential both in her academic endeavors and through
the service she provides her community. As the Associate Dean of
Enrollment Services, Cary Templeton, at Fresno Pacific University
states in a letter of support, ``[t]he leaders of Fresno Pacific
University saw in Nayely, a young person who will become exemplary of
all that is good in the American dream.''
In high school, Nayely was a member of Advancement Via Individual
Determination, AVID, a college preparatory program in which students
commit to determining their own futures through achieving a college
degree. Nayely was also president of the Key Club, a community service
organization. She helped mentor freshmen and participates in several
other student organizations in her school. Perhaps the greatest
hardship to this family, if forced to return to Mexico, will be her
lost opportunity to realize her dreams and further contribute to her
community and to this country.
It is clear to me that Nayely feels a strong sense of responsibility
for her community and country. By all indications, this is the case as
well for all of the members of her family.
The Arreolas also have other family who are lawful permanent
residents of this country or United States citizens. Mrs. Arreola has
three brothers who are U.S. citizens and Mr. Arreola has a sister who
is a U.S. citizen. It is also my understanding that they have no
immediate family in Mexico.
According to immigration authorities, this family has never had any
problems with law enforcement. I am told that they have filed their
taxes for every year from 1990 to the present. They have always worked
hard to support themselves. As I previously mentioned, Mr. Arreola was
previously employed as a farm worker, but now has his own business
repairing electronics. His business has been successful enough to
enable him to purchase a home for his family.

[[Page S310]]

It seems so clear to me that this family has embraced the American
dream and their continued presence in our country would do so much to
enhance the values we hold dear. Enactment of the legislation I have
introduced today will enable the Arreolas to continue to make
significant contributions to their community as well as the United
States.
I ask my colleagues to support this private bill. I also ask
unanimous consent that the text of the legislation be printed in the
Record and that the three letters of community support be printed in
the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 120

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. ADJUSTMENT OF STATUS.

(a) In General.--Notwithstanding any other provision of law
or any order, for the purposes of the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), Esidronio Arreola-
Saucedo, Maria Elna Cobian Arreola, Nayely Bibiana Arreola,
and Cindy Jael Arreola shall be deemed to have been lawfully
admitted to, and remained in, the United States, and shall be
eligible for issuance of an immigrant visa or for adjustment
of status under section 245 of the Immigration and
Nationality Act (8 U.S.C. 1255).
(b) Application and Payment of Fees.--Subsection (a) shall
apply only if the applications for issuance of immigrant
visas or the applications for adjustment of status are filed
with appropriate fees within 2 years after the date of
enactment of this Act.
(c) Reduction of Immigrant Visa Numbers.--Upon the granting
of immigrant visas to Esidronio Arreola-Saucedo, Maria Elna
Cobian Arreola, Nayely Bibiana Arreola, and Cindy Jael
Arreola, the Secretary of State shall instruct the proper
officer to reduce by 4, during the current or subsequent
fiscal year, the total number of immigrant visas that are
made available to natives of the country of the aliens' birth
under section 202(e) or 203(a) of the Immigration and
Nationality Act (8 U.S.C. 1152(e), 1153(a)), as applicable.

Fresno Pacific University,

Fresno, CA.
Hon. Dianne Feinstein,
Washington, DC.
Senator Feinstein: I am writing to ask you to continue your
support for the Arreola family of Porterville, CA. and to ask
you to reintroduce a private bill to grant the family
permanent residency. It is laudable that you came to this
families aid in May 2003 because of grievous errors committed
by their former immigration attorney. You recognized the
outstanding academic achievements of Nayely, Esidronio and
Maria Arreola's oldest daughter, as one of the most
compelling reasons to allow the family to remain in the
United States. You recognized that the ``Arreola family had
and continues to embrace the American dream and that their
continued presence in our country would enhance the values
that we as Americans hold dear.'' Unfortunately the private
bill you introduced was not passed into law and the family is
in need of your support again.
You were right about Nayely!!! Nayely Arreola, the oldest
daughter, has continued in her outstanding academic
achievements and community service. The leaders at Fresno
Pacific University saw in Nayely, a young person who will
become exemplary of all that is good in the American dream.
She has heart in the face of tough times, desire leading to
solid community service, and leadership that our country
desperately needs. Nayely has become a role model of success
and hope that is so important to many young Hispanic students
in Central California. She works in the admission office and
often speaks to young people about the importance of a
college education. Fresno Pacific was so impressed with her
high school achievements that we offered her a full tuition
scholarship package to attend our fully accredited and
regionally ranked university.
Nayely's sister Cindy, now 16, is following Nayely's
example. So are Roberto, now 13, Daniel, now 9, and Saray,
now 8 years old. Nayely's parents, Esidronio Arreola-Saucedo
and Maria Elena Cobian Arreola are continuing to be positive
role models to their children and no burden on our American
way of life. They would have been eligible for permanent
residence through the Seasonal Agricultural Workers (SAW)
program except for poor advice from their attorney who
government officials have since disbarred. Please reintroduce
a private bill seeking to grant this Porterville Family
permanent resident status. All of us at Fresno Pacific
University who have come to know and love this family would
be in your debt as you to continue your support of the
Arreola family.
Sincerely,
Cary W. Templeton,
Associate Dean of Enrollment Services.
____

Granite Hills High School,

Porterville, CA, January 14, 2005.
Dear Senator Feinstein: This letter is in support of
Granite Hills High School graduate Nayely Arreola whom I have
had the pleasure of knowing for the past four and one-half
years. Nayely is a responsible, hard working and intelligent
young lady.
Nayely was born in Mexico; English is her second language.
She came to the United States when she was approximately five
years old. When Nayely enrolled in high school at Granite
Hills High School she was enrolled in our AVID program. AVID,
``Advancement via Individual Determination'', is a program
for students who have the ability and desire to go to college
but no one in their family has attended college.
Nayely took our AVID program and Granite Hills High School
by storm. What a successful four year high school career she
had. Throughout high school she was still listed as an
``English Language Learner''. Nayely successfully overcame
not only a language barrier but many other obstacles and
emerged as a respected scholar.
Nayely graduated from Granite Hills High School with
honors, was a speaker at our graduation ceremony, and was and
is highly regarded and respected by her peers and our
teachers. Upon graduation, she earned The Good Samaratin
Scholarship a ``full ride'' scholarship to Fresno Pacific
University where she will excel as she did here I am sure.
She will be successful in any career she pursues. Her parents
did an excellent job: I wish I had done as well with my
children.
Cindy Arreola, Nayely's younger sister, is currently a
student at Granite Hills High School.
We need more families like the Arreolas in our country.
Thank you for supporting them in the past and I fervently
hope and pray the family will be allowed to remain in the
United States.
Sincerely yours,
Veryl Ann Duncan,
Principal.
____

Granite Hills High School,

Porterville, CA.
Dear Senator Feinstein: I am writing you this letter on
behalf of Nayely Arreola and her family. It is with a
grateful heart that I praise you for all you have done so far
for this family. I am urging that the Arreola bill be
reintroduced so that this great family can stay in our
country.
While Nayely was at Granite Hills High School, she was my
prized pupil. I am the Speech and Debate teacher and Nayely
represented our school in the Optimist Speech contest and the
Lions Club Speech contest. In the Optimist contest she was a
Club and Zone winner and last year in the Lions Club contest
she was a club winner. Nayely was not only had my respect as
a speaker and a student in my program, she had my highest
opinion as the person she represented to her peers and
teachers. I can honestly say Nayely was the hardest working
student I have encountered in my tenure at Granite Hills
High. She graduated fourth in her class and was a C. S. F.
seal bearer at graduation. She was the president of the Key
Club where she assisted in food, coat and toy drives for the
needy of our community. She was a LINK, leader, which works
with freshmen and their orientation to our school.
Nayely Arreola is more than a remarkable student, she is a
remarkable person. Everything she has done has been to
prepare her to go to a University in the United States. She
was accepted at Fresno Pacific University as a President's
Scholar. She is doing an outstanding job at Fresno Pacific
University as a freshman. She is America's dream-her
contribution to our country will be great. I have watched
with great pride as she has grown into a wonderful young
lady, ready to take on the world.
Please, I urge you to reintroduce this bill and work to
have it passed.
Christine L. Amann,
Reading Specialist/Speech Coordinator.
______

By Mr. DeWINE (for himself, Mr. Durbin, Mr. Allen, Mr. Hagel, Mr.
Coleman, Mr. Johnson, Mr. Obama, and Mr. Leahy):
S. 121. A bill to amend titles 10 and 38, United States Code, to
improve the benefits provided for survivors of deceased members of the
Armed Forces, and for other purposes; to the Committee on Armed
Services.
Mr. DeWINE. Mr. President, I rise today to honor the many families of
our Nation's servicemen and women. We owe them a tremendous debt of
gratitude for the services they have performed in supporting their
family members in uniform. These families embody courage, patriotism,
and dedication.
Mr. President, we have all heard the saying, ``if the military wanted
you to have a family, they would have issued you one at boot camp.''
But, the truth today is that more than 50% of America's men and women
in uniform are married and about 50% of those families also have
children. These families supply endless support for our servicemen and
women in life and I believe we need to provide them that same support
in the event of the death of the service member while serving on active
duty. That is why I am joining my colleagues Senators Durbin, Allen,
Hagel, Coleman, Johnson, Obama, and Leahy in introducing legislation
today

[[Page S311]]

to improve critical survivor benefits for those families who have lost
a loved one on active duty.
Our legislation would amend four key benefit programs to improve the
overall quality of life for survivors and dependent children. First, it
would increase the death gratuity to $100,000 and create a death
gratuity for each child under the age of 18 in the amount of $25,000.
Currently, the gratuity for spouses is just $12,000, while no benefit
exits for dependent children. This change would provide flexibility for
the spouse in maintaining a home, paying off remaining debt, and
providing immediate funds to transition the family to a life without
the service member. Additionally, the dependent benefit would offer
surviving children an initial investment that can be used to transition
to adulthood, for example, as a down payment on a house or for college
tuition.
Second, our legislation would extend military health insurance, known
as TRICARE Prime, to every dependent child of a deceased service member
at no cost until the age of 21, or until 23 if the dependent attends
college. The Department of Defense indicates that this important
benefit would save dependents approximately $15,000 per year compared
to the cost of private health insurance premiums. Expanded TRICARE
coverage also guarantees that surviving dependents would continue to
have access to some of the best doctors this country has to offer and
would receive adequate health care and treatment.
Third, our legislation would increase the dependency and indemnity
compensation, or DIC, for a spouse to $1500 per month, as well as $750
per month for each child. In July 2004, the Government Accountability
Office released a report titled ``Military Personnel: Survivor Benefits
for Service members and Federal, State, and City Employees.'' This
report outlined hypothetical situations to demonstrate the benefits
received at certain pay grades. This report indicated that an E-3,
meaning a Private First Class or a Lance Corporal, with two dependents
and three years of service would receive $1,182 per month from the
Survivor Benefit Plan, SBP, and $1208 per month for DIC. This equals
$28,680 per year for the family to live on if the surviving spouse is
not employed.
In 2003, the USDA Center for Nutrition Policy and Promotion released
a report on the costs associated with raising children. The study
indicated that, on average across the United States, families spent
between $9,500 and $10,500 per child on expenses in a two child,
husband-wife family. Further, this study indicated that families with a
household income below $47,000 per year were only able to spend from
$7000 to $8000 per year on expenses to raise a child. For the
hypothetical family I just described, it would cost more than $18,000
per year just to meet the expenses of raising the two dependents.
However, since the household income, if the surviving spouse is not
employed, would reach just $28,860, then it is likely that only about
$14,000 will be spent for that purpose. Clearly, that's just not
enough. Our bill would help ensure that the essential needs of the
family can be met.
Finally, our legislation would increase the benefits available from
the Survivors' and Dependents' Educational Assistance Program. It would
eliminate the current 45 month cap on benefit payments and establish an
$80,000 lump sum that can be drawn down for any educational expenses,
including tuition, fees, room, board, and books. Under current law, a
survivor only has access to about $38,867 if he/she attends college or
a trade school on a full-time basis. As we know, this amount would not
even guarantee a survivor access to a college degree from a state
university. In fact, let's use the Ohio State University as an example.
This public institution will cost in-state students roughly $18,600 for
the 2004-2005 school year. Now, if there were no cost increases over
the course of a four year matriculation, which, in this day and age, is
an unrealistic assumption, a degree from OSU would cost $75,600. That
is $36,733 more than the current benefit available from the Department
of Veterans Affairs. Clearly a gap exists.
Mr. President, we owe the families of those who have lost loved ones
in active duty our gratitude and support. The President's inauguration
last week reminded me of something President Abraham Lincoln said in
his second inaugural address. He said this: ``With malice toward none,
with charity for all, with firmness in the right as God gives us to see
the right, let us strive on to finish the work we are in, to bind up
the nation's wounds, to care for him who shall have borne the battle
and for his widow and his orphan. . . .'' It is time to do a better job
of caring for these families. It is time to ensure that this Congress
does what is right. I ask my colleagues to stand with me in support for
these families and do our part, as they have done theirs.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 121

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. DEATH GRATUITIES PAYABLE WITH RESPECT TO DECEASED
MEMBERS OF THE ARMED FORCES.

(a) Increased Amount of Death Gratuity.--Section 1478(a) of
title 10, United States Code, is amended by striking
``$12,000'' in the first sentence and inserting ``$100,000''.
(b) Additional Death Gratuity Payable to Child of
Deceased.--
(1) Payment at age 21.--Section 1477 of such title is
amended by adding at the end the following new subsection:
``(e) Additional Death Gratuity for Dependent Children.--
(1) If, in the case of a death for which a death gratuity is
payable under section 1475 or 1476 of this title, the
deceased is survived by one or more children described in
subsection (b) who are under 18 years of age on the date of
the death, the Secretary concerned shall pay an additional
death gratuity to each such child when that child attains 21
years of age.
``(2) A death gratuity payable to any person under this
subsection with respect to a death is in addition to any
death gratuity that is payable to that person under section
1475 or 1476 of this title with respect to such death
pursuant to subsection (a)(2).''.
(2) Amount.--
(A) Subsection (a) of section 1478 of such title, as
amended by subsection (a) of this section, is further amended
by inserting after the first sentence the following new
sentence: ``The death gratuity payable to a child of a
deceased person under section 1477(e) of this title shall be
$25,000.''.
(B) Subsection (c) of such section is amended by striking
``the amount'' and inserting ``each amount''.
(3) Conforming amendments.--(A) Section 1477(d) of such
title is amended by striking ``he receives the death
gratuity,'' and inserting ``receiving payment of a death
gratuity under section 1475 or 1476 of this title,''.
(B) Section 1479 of such title is amended--
(i) by striking ``immediate''; and
(ii) by inserting ``or 1477(e)'' after ``section 1475''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect as of October 1, 2001, and shall apply with respect to
deaths occurring on or after such date.
(2) Exception.--The amendment made by subsection (b)(2)(B)
shall take effect as of October 28, 2004, immediately
following the enactment of Public Law 108-375.

SEC. 2. INCREASED PERIOD OF CONTINUED TRICARE COVERAGE OF
CHILDREN OF MEMBERS OF THE UNIFORMED SERVICES
WHO DIE WHILE SERVING ON ACTIVE DUTY FOR A
PERIOD OF MORE THAN 30 DAYS.

(a) Period of Eligibility.--Section 1079(g) of title 10,
United States Code, is amended--
(1) by inserting ``(1)'' after ``(g)'';
(2) by striking the second sentence and inserting the
following:
``(2) In addition to any continuation of eligibility for
benefits under paragraph (1), when a member dies while on
active duty for a period of more than 30 days, the member's
dependents who are receiving benefits under a plan covered by
subsection (a) shall continue to be eligible for such
benefits during the three-year period beginning on the date
of the member's death, except that, in the case of such a
dependent who is a child of the deceased, the period of
continued eligibility shall be the longer of the following
periods beginning on such date:
``(A) Three years.
``(B) The period ending on the date on which the child
attains 21 years of age.
``(C) In the case of a child of the deceased who, at 21
years of age, is enrolled in a full-time course of study in a
secondary school or in a full-time course of study in an
institution of higher education approved by the administering
Secretary and was, at the time of the member's death, in fact
dependent on the member for over one-half of the child's
support, the period ending on the earlier of the following
dates:
``(i) The date on which the child ceases to pursue such a
course of study, as determined by the administering
Secretary.
``(ii) The date on which the child attains 23 years of age.

[[Page S312]]

``(3) For the purposes of paragraph (2)(C), a child shall
be treated as being enrolled in a full-time course of study
in an institution of higher education during any reasonable
period of transition between the child's completion of a
full-time course of study in a secondary school and the
commencement of an enrollment in a full-time course of study
in an institution of higher education, as determined by the
administering Secretary.
``(4) No charge may be imposed for any benefits coverage
under this chapter that is provided for a child for a period
of continued eligibility under paragraph (2), or for any
benefits provided to such child during such period under that
coverage.''.
(b) Effective Date.--This section and the amendments made
by this section shall take effect as of October 1, 2001, and
shall apply with respect to deaths occurring on or after such
date.

SEC. 3. INCREASE AND ENHANCEMENT OF DEPENDENCY AND INDEMNITY
COMPENSATION FOR SURVIVING SPOUSES.

(a) In General.--Subsection (a) of section 1311 of title
38, United States Code, is amended--
(1) in paragraph (1), by striking ``$967'' and inserting
``$1,500'';
(2) in paragraph (2), by inserting ``or (4)'' after
``paragraph (1)''; and
(3) by adding at the end the following new paragraph:
``(4) In the case of a surviving spouse who remarries,
dependency and indemnity compensation shall be paid to the
surviving spouse at a monthly rate equal to 50 percent of the
monthly rate otherwise provided under paragraph (1) for--
``(A) the first 60 months beginning after the date of such
remarriage; or
``(B) in the case of a surviving spouse with one or more
children below the age of 18, each month until the first
month beginning after the date on which each such child has
attained the age of 18.''.
(b) Rates for Surviving Spouses With Dependent Children.--
Such section is further amended--
(1) by striking subsection (b) and inserting the following
new subsection (b):
``(b)(1) If there is a surviving spouse with one or more
children below the age of 18, the dependency and indemnity
compensation paid monthly to the surviving spouse shall be
increased by $750 for each such child.
``(2)(A) Except as provided in subparagraph (B), the
increase in dependency and indemnity compensation payable to
a surviving spouse under paragraph (1) shall cease beginning
with the first month commencing after the month in which all
children of the surviving spouse have attained the age of 18.
``(B) The cessation under subparagraph (A) of the increase
in dependency and indemnity compensation payable to a
surviving spouse under paragraph (1) shall not occur with
respect to any child of the surviving spouse who, before
attaining the age of 18, becomes permanently incapable of
support.''; and
(2) by striking subsection (e), as added by section 301(a)
of the Veterans Benefits Improvements Act of 2004 (Public Law
104-454).
(c) Effective Date.--(1) Except as provided in paragraph
(2), the amendments made by this section shall take effect on
October 1, 2001, and shall apply with respect to months
beginning on or after that date.
(2) The amendment made by subsection (b)(2) shall take
effect on the date of the enactment of this Act.

SEC. 4. EXPANSION AND ENHANCEMENT OF SURVIVORS' AND
DEPENDENTS' EDUCATIONAL ASSISTANCE.

(a) Termination of Durational Limitation on Use of
Educational Assistance.--
(1) Termination of limitation and restatement of continuing
requirements.--Subsection (a) of section 3511 of title 38,
United States Code, is amended to read as follows:
``(a)(1) Notwithstanding any other provision of this
chapter or chapter 36 of this title, any payment of
educational assistance described in paragraph (2) shall not
be charged against the entitlement of any individual under
this chapter.
``(2) The payment of educational assistance referred to in
paragraph (1) is the payment of such assistance to an
individual for pursuit of a course or courses under this
chapter if the Secretary finds that the individual--
``(A) had to discontinue such course pursuit as a result of
being ordered to serve on active duty under section 688,
12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10;
and
``(B) failed to receive credit or training time toward
completion of the individual's approved educational,
professional, or vocational objective as a result of having
to discontinue, as described in subparagraph (A), the course
pursuit.''.
(2) Conforming amendments.--(A) The heading of section 3511
of such title is amended to read as follows:

``Sec. 3511. Treatment of certain interruptions in pursuit of
programs of education''.

(B) Section 3532(g) of such title, as amended by section
106(b)(3) of the Veterans Earn and Learn Act of 2004 (title I
of Public Law 108-454), is further amended--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as paragraph (2).
(C) Section 3541 of such title is amended to read as
follows:

``Sec. 3541. Special restorative training

``(a) The Secretary may, at the request of an eligible
person--
``(1) determine whether such person is in need of special
restorative training; and
``(2) if such need is found to exist, prescribe a course
which is suitable to accomplish the purposes of this chapter.
``(b) A course of special restorative training under
subsection (a) may, at the discretion of the Secretary,
contain elements that would contribute toward an ultimate
objective of a program of education.''.
(D) Section 3695(a)(4) of such title is amended by striking
``35,''.
(b) Extension of Delimiting Age of Eligibility for
Dependents.--Section 3512(a) of title 38, United States Code,
is amended by striking ``twenty-sixth birthday'' each place
it appears and inserting ``thirtieth birthday''.
(c) Amount of Educational Assistance.--
(1) In general.--Section 3532 of title 38, United States
Code, is amended to read as follows:

``Sec. 3532. Amount of educational assistance

``(a) The aggregate amount of educational assistance to
which an eligible person is entitled under this chapter is
$80,000, as increased from time to time under section 3564 of
this title.
``(b) Within the aggregate amount provided for in
subsection (a), educational assistance under this chapter may
be paid for any purpose, and in any amount, as follows:
``(1) A program of education consisting of institutional
courses.
``(2) A full-time program of education that consists of
institutional courses and alternate phases of training in a
business or industrial establishment with the training in the
business or industrial establishment being strictly
supplemental to the institutional portion.
``(3) A farm cooperative program consisting of
institutional agricultural courses prescheduled to fall
within forty-four weeks of any period of twelve consecutive
months that is pursued by an eligible person who is
concurrently engaged in agricultural employment which is
relevant to such institutional agricultural courses as
determined under standards prescribed by the Secretary.
``(4) A course or courses or other program of special
educational assistance as provided in section 3491(a) of this
title.
``(5) A program of apprenticeship or other on-job training
pursued in a State as provided in section 3687(a) of this
title.
``(6) In the case of an eligible spouse or surviving
spouse, a program of education exclusively by correspondence
as provided in section 3686 of this title.
``(7) A special training allowance for special restorative
training as provided in section 3542 of this title.
``(c) If a program of education is pursued by an eligible
person at an institution located in the Republic of the
Philippines, any educational assistance for such person under
this chapter shall be paid at the rate of $0.50 for each
dollar.
``(d)(1) Subject to paragraph (2), the amount of
educational assistance payable under this chapter for a
licensing or certification test described in section
3501(a)(5) of this title is the lesser of $2,000 or the fee
charged for the test.
``(2) In no event shall payment of educational assistance
under this subsection for such a test exceed the amount of
the individual's available entitlement under this chapter.''.
(2) Conforming amendments.--(A) Section 3533 of such title
is amended to read as follows:

``Sec. 3533. Tutorial assistance

``An eligible person shall, without any charge to any
entitlement of such person to educational assistance under
section 3532(a) of this title be entitled to the benefits
provided an eligible veteran under section 3492 of this
title.''.
(B) Section 3534 of such title is repealed.
(C) Section 3542 of such title is amended--
(i) in subsection (a), by striking ``computed at the basic
rate'' and all that follows through the end of the subsection
and inserting a period; and
(ii) in subsection (b), by striking ``an educational
assistance allowance'' and inserting ``educational
assistance''.
(D) Section 3543(c) of such title is amended--
(i) in paragraph (1), by adding ``and'' at the end;
(ii) by striking paragraph (2); and
(iii) by redesignating paragraph (3) as paragraph (2).
(E) Section 3564 of such title is amended by striking
``rates payable under sections 3532, 3534(b), and 3542(a)''
and inserting ``aggregate amount of educational assistance
payable under section 3532''.
(F) Paragraph (1) of section 3565(b) of such title is
amended to read as follows:
``(1) educational assistance payable under section 3532 of
this title, including the special training allowance referred
to in subsection (b)(7) of such section, shall be paid at the
rate of $0.50 for each dollar; and''.
(G) Section 3687 of such title is amended--
(i) in subsection (a)--
(I) in the matter preceding paragraph (1), by striking ``or
an eligible person (as defined in section 3501(a) of this
title)''; and
(II) in the flush matter following paragraph (2), by
striking ``chapters 34 and 35'' and inserting ``chapter 34'';
(ii) in subsection (c), by striking ``chapters 34 and 35''
and inserting ``chapter 34''; and
(iii) in subsection (e), as added by section 102(a) of the
Veterans Earn and Learn Act of

[[Page S313]]

2004 (title I of Public Law 108-454), by striking paragraph
(3) and inserting the following new paragraph (3):
``(3) In this subsection, the term `individual' means an
eligible veteran who is entitled to monthly educational
assistance allowances payable under section 3015(e) of this
title.''.
(d) Other Conforming Amendments.--(1) Section 3524 of title
38, United States Code, is amended by striking ``allowance''
each place it appears.
(2)(A) Section 3531 of such title is amended--
(i) in subsection (a), by striking ``an educational
assistance allowance'' and inserting ``educational
assistance''; and
(ii) in subsection (b), by striking ``allowance''.
(B) The heading of such section is amended by striking
``allowance''.
(3) Section 3537(a) of such title is amended by striking
``additional''.
(e) Clerical Amendments.--The table of sections at the
beginning of chapter 35 of title 38, United States Code, is
amended--
(1) by striking the item relating to section 3511 and
inserting the following new item:

``3511. Treatment of certain interruptions in pursuit of programs of
education.'';

(2) by striking the items relating to section 3531, 3532,
and 3533 and inserting the following new items:

``3531. Educational assistance.
``3532. Amount of educational assistance.
``3533. Tutorial assistance.'';

(3) by striking the item relating to section 3534; and
(4) by striking the item relating to section 3541 and
inserting the following new item:

``3541. Special restorative training.''.

(f) Effective Dates.--(1) Except as provided in paragraph
(2), the amendments made by this section shall take effect on
October 1, 2001.
(2) The amendments made by subsections (a)(2)(B) and
(c)(2)(G)(iii) shall take effect on the date of the enactment
of this Act.
(3) Notwithstanding the effective date under paragraph (1)
of the amendment to section 3564 of title 38, United States
Code, made by subsection (c)(2)(E), the Secretary of Veterans
Affairs shall make the first increase in the aggregate amount
of educational assistance under section 3532 of such title as
required by such section 3564 (as so amended) for fiscal year
2006.
______

By Mr. FEINGOLD:
S. 122. A bill to abolish the death penalty under Federal law; to the
Committee on the Judiciary.
Mr. FEINGOLD. Mr. President, today I introduce the Federal Death
Penalty Abolition Act of 2005. This bill would abolish the death
penalty at the Federal level. It would put an immediate halt to
executions and forbid the imposition of the death penalty as a sentence
for violations of Federal law.
Since 1976, when the death penalty was reinstated by the Supreme
Court, there have been almost 1,000 executions across the country,
including three at the Federal level. At the same time, over 100 people
on death row were later found innocent and released from death row.
Exonerated inmates are not only removed from death row, but they are
usually released from prison altogether. Apparently, these people never
should have been convicted in the first place. While death penalty
proponents claim that the death penalty is fair, efficient, and a
deterrent, the fact remains that our criminal justice system has failed
and has resulted in at least 117 very grave mistakes.
Nine hundred and forty-four executions, and 117 exonerations in the
modern death penalty era. That is an embarrassing statistic, one that
should have us all questioning the use of capital punishment in this
country. And we continue to learn about more cases in which our justice
system has failed. Since I first introduced this bill in November of
1999, 36 death row inmates have been exonerated throughout the country,
12 since I introduced this bill in the last Congress in February 2003.
Since I last introduced this bill, 115 people have been executed
nationwide. How many innocents are among them? We may never know.
While executions continue and the death row population grows, the
national debate on the death penalty intensifies and has become even
more vigorous. The number of voices joining in to express doubt about
the use of capital punishment in America is growing. As evidence of the
flaws in our system mounts, it has created an awareness that has not
escaped the attention of the American people. Layer after layer of
confidence in the death penalty system has been gradually peeling away,
and the voices of those questioning its fairness are growing louder and
louder. Now they can be heard from college campuses and courtrooms and
podiums across the Nation, to the Senate Judiciary Committee hearing
room, to the Supreme Court. We must not ignore them.
That our modern society relies on killing as punishment is disturbing
enough. Even more disturbing, however, is that our States' and Federal
Government's use of the death penalty is often not consistent with
principles of due process, fairness, and justice. These principles are
the foundation of our criminal justice system. It is clearer than ever
before that we have put innocent people on death row. In addition,
statistics show that those States that have the death penalty are more
likely to put people to death for killing white victims than for
killing black victims.
After the death penalty was reinstated by the Supreme Court in 1976,
the Federal Government first resumed death penalty prosecutions after
enactment of a 1988 Federal law that provided for the death penalty for
murder in the course of a drug-kingpin conspiracy. The Federal death
penalty was then expanded significantly in 1994, when the omnibus crime
bill allowed its use to apply to a total of some 60 Federal offenses.
Since 1994, Federal prosecutions seeking the death penalty have now
accelerated.
A survey on the Federal death penalty system from 1988 to early 2000
was released by the U.S. Department of Justice in September 2000. That
report showed troubling racial and geographic disparities in the
Federal Government's administration of the death penalty. In other
words, who lives and who dies in the Federal system appears to relate
to the color of the defendant's skin or the region of the country where
the defendant is prosecuted. Attorney General Janet Reno was so
disturbed by the results of that report that she ordered a further, in-
depth study of the results. Attorney General John Ashcroft pledged to
continue that study, but we still await the results of that further
study. The Federal Government must do all that it can to ensure that no
person is ever subject to harsher penalties because of the color of the
defendant's skin.
I am certain that not one of my colleagues here in the Senate, not a
single one, would defend racial discrimination in this ultimate
punishment. The most fundamental guarantee of our Constitution is equal
justice under law, and equal protection of the laws. Yet we have a
system in place today that raises grave questions about whether that
guarantee is being met.
While the Federal death penalty system is clearly plagued by flaws,
there are 38 States across our Nation that also authorize the use of
capital punishment. And like the Federal system, those systems are not
free from error.
Five years ago, Governor George Ryan took the historic step of
placing a moratorium on executions in Illinois and creating an
independent, blue ribbon commission to review the State's death penalty
system. The Commission conducted an extensive study of the death
penalty in Illinois and released a report with 85 recommendations for
reform of the death penalty system. The Commission concluded that the
death penalty system is not fair, and that the risk of executing the
innocent is alarmingly real. Governor Ryan later pardoned four death
row inmates and commuted the sentences of all remaining Illinois death
row inmates to life in prison before he left office in January 2003:

Illinois is not alone. Four years ago, then Governor Parris
Glendening learned of suspected racial disparities in the
administration of the death penalty in Maryland. Governor Glendening
did not look the other way. He commissioned the University of Maryland
to conduct the most exhaustive study of Maryland's application of the
death penalty in history. Then faced with the rapid approach of a
scheduled execution, Governor Glendening acknowledged that it was
unacceptable to allow executions to take place while the study he had
ordered was not yet complete. So, in May 2002, he placed a moratorium
on executions. Unfortunately, Governor Bob Ehrlich later lifted that
moratorium and executions have resumed in Maryland.
The Maryland study was released in January 2003, and the findings
should startle us all. The study found that blacks accused of killing
whites are

[[Page S314]]

simply more likely to receive a death sentence than blacks who kill
blacks, or than white killers. According to the report, black offenders
who kill whites are four times as likely to be sentenced to death as
blacks who kill blacks, and twice as likely to get a death sentence as
whites who kill whites.
Maryland and Illinois are not exceptions to a rule, nor anomalies in
an otherwise perfect system. In fact, since reinstatement of the modern
death penalty, 81 percent of capital cases across the country have
involved white victims, even though only 50 percent of murder victims
are white. Nationwide, more than half of the death row inmates are
African Americans or Hispanic Americans.
There is evidence of racial disparities, inadequate counsel,
prosecutorial misconduct, and false scientific evidence in death
penalty systems across the country. While the research done in Maryland
and Illinois has yielded shocking results, there are 36 other States
that authorize the use of the death penalty, most of them far more
frequently. Twenty of the 38 States that authorize capital punishment
have executed more inmates than Maryland, and 14 of those States have
carried out more executions than Illinois. So while we are closer to
uncovering the unthinkable truth about the flaws in the Maryland and
Illinois death penalty systems, there are 36 other States with systems
that are most likely plagued with the same flaws. And yet, the killing
continues.
At the beginning of 2005, I cannot help but believe that our progress
has been tarnished by our Nation's not only continuing, but increasing
use of the death penalty. We are a Nation that prides itself on the
fundamental principles of justice, liberty, equality and due process.
We are a Nation that scrutinizes the human rights records of other
nations. Historically, we are one of the first nations to speak out
against torture and killings by foreign governments. We should hold our
own system of justice to the highest standard.
Over the last few years, some prominent voices in our country have
done just that. And they are not just voices of liberals, or of the
faith community. They are the voices of Justice Sandra Day O'Connor,
Reverend Pat Robertson, George Will, former FBI Director William
Sessions, Republican Governor George Ryan, and Democratic Governor
Parris Glendening. The voices of those questioning our application of
the death penalty are growing in number, and they are growing louder.
And while we examine the flaws in our death penalty system, we cannot
help but note that our use of the death penalty stands in stark
contrast to the majority of nations, which have abolished the death
penalty in law or practice. There are now 117 countries that have
abolished the death penalty in law or in practice. The European Union
denies membership in the alliance to those nations that use the death
penalty. In fact, it passed a resolution calling for the immediate and
unconditional global abolition of the death penalty, and it
specifically called on all States within the United States to abolish
the death penalty. This is significant because it reflects the
unanimous view of a group of nations with which the United States
enjoys the closest of relationships and shares the deepest common
values.
What is even more troubling in the international context is that the
United States is now one of only five countries that imposes the death
penalty for crimes committed by juveniles. So, while a May 2002 Gallup
poll found that 69 percent of Americans oppose the death penalty for
those under the age of 18, we are one of only five nations on this
earth that puts to death people who were under 18 years of age when
they committed their crimes. The others are Iran, the Democratic
Republic of the Congo, Nigeria, and Saudi Arabia. In the last decade,
the United States has executed more juvenile offenders than all other
nations combined.
These are countries that we often criticize for human rights abuses.
We should remove any basis for charges that human rights violations are
taking place on our own soil by halting the execution of people who
were not even adults when they committed the crimes for which they were
sentenced to die. No one can reasonably argue that executing child
offenders is a normal or acceptable practice in the world community.
And I do not think that we should be proud that the United States is
the world leader in the execution of child offenders.
As we begin a new year and another Congress, our society is still far
from fully just. The continued use of the death penalty shames us. The
penalty is at odds with our best traditions. It is wrong and it is
immoral. The adage ``two wrongs do not make a right,'' applies here in
the most fundamental way. Our Nation has long ago done away with other
barbaric punishments like whipping and cutting off the ears of
criminals. Just as our Nation did away with these punishments as
contrary to our humanity and ideals, it is time to abolish the death
penalty as we seek justice in this new century. And it is not just a
matter of morality. The continued viability of our justice system as a
truly just system that deserves the respect of our own people and the
world requires that we do so. Our Nation's striving to remain the
leading defender of freedom, liberty and equality demands that we do
so.
Abolishing the death penalty will not be an easy task. It will take
patience, persistence, and courage. As we work to move forward in a
rapidly changing world, let us leave this archaic practice behind.
I ask my colleagues to join me in taking the first step in abolishing
the death penalty in our great Nation. I also call on each State that
authorizes the use of the death penalty to cease this practice. Let us
step away from the culture of violence and restore fairness and
integrity to our criminal justice system.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 122

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Federal Death Penalty
Abolition Act of 2005''.

SEC. 2. REPEAL OF FEDERAL LAWS PROVIDING FOR THE DEATH
PENALTY.

(a) Homicide-Related Offenses.--
(1) Murder related to the smuggling of aliens.--Section
274(a)(1)(B)(iv) of the Immigration and Nationality Act (8
U.S.C. 1324(a)(1)(B)(iv)) is amended by striking ``punished
by death or''.
(2) Destruction of aircraft, motor vehicles, or related
facilities resulting in death.--Section 34 of title 18,
United States Code, is amended by striking ``to the death
penalty or''.
(3) Murder committed during a drug-related drive-by
shooting.--Section 36(b)(2)(A) of title 18, United States
Code, is amended by striking ``death or''.
(4) Murder committed at an airport serving international
civil aviation.--Section 37(a) of title 18, United States
Code, is amended, in the matter following paragraph (2), by
striking ``punished by death or''.
(5) Civil rights offenses resulting in death.--Chapter 13
of title 18, United States Code, is amended--
(A) in section 241, by striking ``, or may be sentenced to
death'';
(B) in section 242, by striking ``, or may be sentenced to
death'';
(C) in section 245(b), by striking ``, or may be sentenced
to death''; and
(D) in section 247(d)(1), by striking ``, or may be
sentenced to death''.
(6) Murder of a member of congress, an important executive
official, or a supreme court justice.--Section 351 of title
18, United States Code, is amended--
(A) in subsection (b)(2), by striking ``death or''; and
(B) in subsection (d)(2), by striking ``death or''.
(7) Death resulting from offenses involving transportation
of explosives, destruction of government property, or
destruction of property related to foreign or interstate
commerce.--Section 844 of title 18, United States Code, is
amended--
(A) in subsection (d), by striking ``or to the death
penalty'';
(B) in subsection (f)(3), by striking ``subject to the
death penalty, or'';
(C) in subsection (i), by striking ``or to the death
penalty''; and
(D) in subsection (n), by striking ``(other than the
penalty of death)''.
(8) Murder committed by use of a firearm during commission
of a crime of violence or a drug trafficking crime.--Section
924(j)(1) of title 18, United States Code, is amended by
striking ``by death or''.
(9) Genocide.--Section 1091(b)(1) of title 18, United
States Code, is amended by striking ``death or''.
(10) First degree murder.--Section 1111(b) of title 18,
United States Code, is amended by striking ``by death or''.

[[Page S315]]

(11) Murder by a federal prisoner.--Section 1118 of title
18, United States Code, is amended--
(A) in subsection (a), by striking ``by death or''; and
(B) in subsection (b), in the third undesignated
paragraph--
(i) by inserting ``or'' before ``an indeterminate''; and
(ii) by striking ``, or an unexecuted sentence of death''.
(12) Murder of a state or local law enforcement official or
other person aiding in a federal investigation; murder of a
state correctional officer.--Section 1121 of title 18, United
States Code, is amended--
(A) in subsection (a), by striking ``by sentence of death
or''; and
(B) in subsection (b)(1), by striking ``or death''.
(13) Murder during a kidnaping.--Section 1201(a) of title
18, United States Code, is amended by striking ``death or''.
(14) Murder during a hostage-taking.--Section 1203(a) of
title 18, United States Code, is amended by striking ``death
or''.
(15) Murder with the intent of preventing testimony by a
witness, victim, or informant.--Section 1512(a)(2)(A) of
title 18, United States Code, is amended by striking ``the
death penalty or''.
(16) Mailing of injurious articles with intent to kill or
resulting in death.--Section 1716(i) of title 18, United
States Code, is amended by striking ``to the death penalty
or''.
(17) Assassination or kidnaping resulting in the death of
the president or vice president.--Section 1751 of title 18,
United States Code, is amended--
(A) in subsection (b)(2), by striking ``death or''; and
(B) in subsection (d)(2), by striking ``death or''.
(18) Murder for hire.--Section 1958(a) of title 18, United
States Code, is amended by striking ``death or''.
(19) Murder involved in a racketeering offense.--Section
1959(a)(1) of title 18, United States Code, is amended by
striking ``death or''.
(20) Willful wrecking of a train resulting in death.--
Section 1992(b) of title 18, United States Code, is amended
by striking ``to the death penalty or''.
(21) Bank robbery-related murder or kidnaping.--Section
2113(e) of title 18, United States Code, is amended by
striking ``death or''.
(22) Murder related to a carjacking.--Section 2119(3) of
title 18, United States Code, is amended by striking ``, or
sentenced to death''.
(23) Murder related to aggravated child sexual abuse.--
Section 2241(c) of title 18, United States Code, is amended
by striking ``unless the death penalty is imposed,''.
(24) Murder related to sexual abuse.--Section 2245 of title
18, United States Code, is amended by striking ``punished by
death or''.
(25) Murder related to sexual exploitation of children.--
Section 2251(d) of title 18, United States Code, is amended
by striking ``punished by death or''.
(26) Murder committed during an offense against maritime
navigation.--Section 2280(a)(1) of title 18, United States
Code, is amended by striking ``punished by death or''.
(27) Murder committed during an offense against a maritime
fixed platform.--Section 2281(a)(1) of title 18, United
States Code, is amended by striking ``punished by death or''.
(28) Terrorist murder of a united states national in
another country.--Section 2332(a)(1) of title 18, United
States Code, is amended by striking ``death or''.
(29) Murder by the use of a weapon of mass destruction.--
Section 2332a of title 18, United States Code, is amended--
(A) in subsection (a), by striking ``punished by death
or''; and
(B) in subsection (b), by striking ``by death, or''.
(30) Murder by act of terrorism transcending national
boundaries.--Section 2332b(c)(1)(A) of title 18, United
States Code, is amended by striking ``by death, or''.
(31) Murder involving torture.--Section 2340A(a) of title
18, United States Code, is amended by striking ``punished by
death or''.
(32) Murder related to a continuing criminal enterprise or
related murder of a federal, state, or local law enforcement
officer.--Section 408 of the Controlled Substances Act (21
U.S.C. 848) is amended--
(A) in each of subparagraphs (A) and (B) of subsection
(e)(1), by striking ``, or may be sentenced to death'';
(B) by striking subsections (g) and (h) and inserting the
following:
``(g) [Reserved.]
``(h) [Reserved.]'';
(C) in subsection (j), by striking ``and as to
appropriateness in that case of imposing a sentence of
death'';
(D) in subsection (k), by striking ``, other than death,''
and all that follows before the period at the end and
inserting ``authorized by law''; and
(E) by striking subsections (l) and (m) and inserting the
following:
``(l) [Reserved.]
``(m) [Reserved.]''.
(33) Death resulting from aircraft hijacking.--Section
46502 of title 49, United States Code, is amended--
(A) in subsection (a)(2), by striking ``put to death or'';
and
(B) in subsection (b)(1)(B), by striking ``put to death
or''.
(b) Non-Homicide Related Offenses.--
(1) Espionage.--Section 794(a) of title 18, United States
Code, is amended by striking ``punished by death or'' and all
that follows before the period and inserting ``imprisoned for
any term of years or for life''.
(2) Treason.--Section 2381 of title 18, United States Code,
is amended by striking ``shall suffer death, or''.
(c) Repeal of Criminal Procedures Relating to Imposition of
Death Sentence.--
(1) In general.--Chapter 228 of title 18, United States
Code, is repealed.
(2) Technical and conforming amendment.--The table of
chapters for part II of title 18, United States Code, is
amended by striking the item relating to chapter 228.

SEC. 3. PROHIBITION ON IMPOSITION OF DEATH SENTENCE.

(a) In General.--Notwithstanding any other provision of
law, no person may be sentenced to death or put to death on
or after the date of enactment of this Act for any violation
of Federal law .
(b) Persons Sentenced Before Date of Enactment.--
Notwithstanding any other provision of law, any person
sentenced to death before the date of enactment of this Act
for any violation of Federal law shall serve a sentence of
life imprisonment without the possibility of parole.
______

By Mr. FEINGOLD:
S. 123. A bill to amend part D of title XVIII of the Social Security
Act to provide for negotiation of fair prices for Medicare prescription
drugs; to the Committee on Finance.
Mr. FEINGOLD. Mr. President, today I am introducing a bill that will
fix one of the fundamental flaws of the Medicare prescription drug
benefit signed into law last Congress. The ``Efficiency in Government
Health Care Spending Act'' will remove language included in the
Medicare Modernization Act that prohibits the Medicare program from
negotiating prescription drug prices with manufacturers. I believe that
the Medicare prescription drug benefit does far too little to bring
down the prices of prescription drugs, and that there are not enough
measures to keep the skyrocketing cost of the program in check. In
fact, it actually takes away one of the best tools the Medicare program
could use in bringing down prescription drug prices by denying the
government the ability to negotiate price discounts on behalf of
Medicare beneficiaries.
My bill will allow the Federal Government to take advantage of the
purchasing power of the Medicare program, saving taxpayers' dollars
while reducing the costs of prescription drugs for Medicare
beneficiaries. We need to act now to fix the flaws included in the
Medicare prescription drug benefit, before the benefit begins next
year.
Mr. President, I ask unanimous consent that the bill be printed in
the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 123

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Efficiency in Government
Health Care Spending Act''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) Prohibiting the Federal Government from negotiating
prescription drug prices with manufacturers fails to take
advantage of the purchasing power of the Medicare program.
(2) Negotiating prescription drug prices can reduce the
costs of prescription drugs for both the Medicare program and
taxpayers.
(3) A 2002 study by the inspector general of the Department
of Health and Human Services found that--
(A) both the Medicare program and the beneficiaries of the
Medicare program continually pay too much for medical
equipment and medical supplies; and
(B) if the Medicare program paid the same prices for 16
health care supplies as the Department of Veterans Affairs,
which directly negotiates prices with manufacturers, pays for
those supplies, the Federal Government could save
$958,000,000 each year.

SEC. 3. SENSE OF THE SENATE REGARDING THE USE OF AUTHORITY TO
NEGOTIATE PRICES FOR MEDICARE PRESCRIPTION
DRUGS.

It is the sense of the Senate that the Secretary of Health
and Human Services should exercise the authority under
section 1860D-11(i)(1) of the Social Security Act (42 U.S.C.
1395w-111(i)(1)), as amended by section 4, so as to assure an
affordable medicare drug benefit for medicare beneficiaries
and taxpayers.

SEC. 4. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION
DRUGS.

(a) Negotiation.--Section 1860D-11 of the Social Security
Act (42 U.S.C. 1395w-111) is amended by striking subsection
(i) (relating to noninterference) and by inserting the
following:

[[Page S316]]

``(i) Authority To Negotiate; No National Formulary.--
``(1) Authority to negotiate prices with manufacturers.--In
order to ensure that beneficiaries enrolled under
prescription drug plans and MA-PD plans pay the lowest
possible price, the Secretary shall have authority similar to
that of other Federal entities that purchase prescription
drugs in bulk to negotiate contracts with manufacturers of
covered part D drugs, consistent with the requirements and in
furtherance of the goals of providing quality care and
containing costs under this part.
``(2) No national formulary.--In order to promote
competition under this part and in carrying out this part,
the Secretary may not require a particular formulary for
covered part D drugs.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of section
101(a) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (Public Law 108-173; 117 Stat.
2071).
______

By Mr. FEINGOLD:
S. 124. A bill to amend title XVIII of the Social Security Act to
repeal the MA Regional Plan Stabilization Fund; to the Committee on
Finance.
Mr. FEINGOLD. Mr. President, today I am introducing a bill that will
remove the multi-billion dollar ``stabilization fund'' from the new
Medicare prescription drug benefit. This stabilization fund is in
essence a slush fund that gives billions of dollars to private
insurance companies. This is not an efficient use of taxpayers'
dollars. In fact, it's not clear why it's even necessary. If private
managed care plans are successful in bringing costs down, as backers of
the new Medicare bill expect, and if seniors supposedly want to choose
private plans, as backers of the new Medicare bill believe, then why
should American taxpayers pay private companies more money to get more
people to enroll in them?
We should not be subsidizing private health insurance companies in
the name of Medicare reform. It is fiscally irresponsible, in a time of
record deficits, to use taxpayers' dollars as a giveaway to private
insurance companies. By removing this multi-billion slush fund, my bill
will save the American taxpayers $10 billion. Many analysts, including
the Administration's analysts, predict that the new Medicare
prescription drug benefit will far surpass the $400 billion budgeted
for it. We need to look carefully at how we spend Medicare dollars, so
that we can ensure that the program remains solvent for future
generations.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 124

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. REPEAL OF MA REGIONAL PLAN STABILIZATION FUND.

(a) Purpose of Section.--The purpose of this section is to
reduce the Federal budget deficit and to more efficiently use
taxpayer dollars in health care spending.
(b) Repeal of MA Regional Plan Stabilization Fund.--Section
1858 of the Social Security Act (42 U.S.C. 1395w-27a) is
amended--
(1) by striking subsection (e);
(2) by redesignating subsections (f), (g), and (h) as
subsections (e), (f), and (g), respectively; and
(3) in subsection (e), as so redesignated, by striking
``subject to subsection (e),''.
(c) Conforming Amendment.--Section 1851(i)(2) of the Social
Security Act (42 U.S.C. 1395w-21(i)(2)), as amended by
section 221(d)(5) of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003, is amended by
striking ``1858(h)'' and inserting ``1858(g)''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Medicare Prescription Drug, Improvement, and Modernization
Act of 2003 (Public Law 108-173).
______

By Mrs. BOXER (for herself, Mrs. Feinstein and Mr. Durbin):
S. 125. A bill to designate the United States courthouse located at
501 I Street in Sacramento, California, as the ``Robert T. Matsui
United States Courthouse''; to the Committee on Environment and Public
Works.
Mrs. BOXER. Mr. President, I am introducing legislation today to name
the courthouse in Sacramento, California, as the ``Robert T. Matsui
United States Courthouse.'' I am pleased to be joined in this effort by
Senators Feinstein and Durbin.
Congressman Matsui's death on January 1, 2005 was shocking to all of
us. Naming the Federal Courthouse in Sacramento in his honor would be a
very appropriate memorial to his continual efforts toward a just and
fair society.
After his childhood internment, Bob Matsui could have chosen to dwell
on the sadness of his early years. Instead, he chose to give his life
to public service, working to improve the lives of those in his
congressional district and all Americans. He was a true patriot.
He was first elected to Congress in 1978, and spent the past 26 years
representing the citizens of Sacramento with distinction and pride. He
served as a senior member of the Committee on Ways and Means, and took
a particular interest in complex public policy issues including tax,
international trade, social security, healthcare, and welfare reform.
Congressman Matsui's dedication to the well-being of America's
children earned him the Congressional Advocate of the Year award from
The Child Welfare League of America in 1992 and 1994. The Congressman
was also honored with the Anti Defamation League's Lifetime Achievement
Award for his commitment to human rights.
Included in Congressman Matsui's long list of legislative
achievements were his accomplishments to benefit the people of his
district including flood control, transportation, and his success in
obtaining $142 million in federal funding for the courthouse in
Sacramento.
A graduate of the University of California at Berkeley and Hastings
College of Law, he founded his own law practice in 1967, and was
elected to the Sacramento City Council in 1971. After winning
reelection in 1975 he became vice mayor of Sacramento in 1977.
Congressman Matsui is survived by his wife, Doris Matsui, their son
Brian and his wife Amy, and granddaughter, Anna.
______

By Mr. INOUYE:
S. 127. A bill to amend chapter 81 of title 5, United States Code, to
authorize the use of clinical social workers to conduct evaluations to
determine work-related emotional and mental illnesses; to the Committee
on Homeland Security and Governmental Affairs.
Mr. INOUYE. Mr. President, today I introduce the Clinical Social
Workers' Recognition Act to correct a continuing problem in the Federal
Employees Compensation Act. This bill will also provide clinical social
workers the recognition they deserve as independent providers of
quality mental health care services.
Clinical social workers are authorized to independently diagnose and
treat mental illnesses through public and private health insurance
plans across the nation. However, Title V of the United States Code,
does not permit the use of mental health evaluations conducted by
clinical social workers for use as evidence in determining workers'
compensation claims brought by federal employees. The bill I am
introducing corrects this problem.
It is a sad irony that Federal employees may select a clinical social
worker through their health plans to provide mental health services,
but may not go to this same professional for workers' compensation
evaluations. The failure to recognize the validity of evaluations
provided by clinical social workers unnecessarily limits federal
employees' selection of a provider to conduct the workers' compensation
mental health evaluations. Lack of this recognition may well impose an
undue burden on federal employees where clinical social workers are the
only available providers of mental health care.
I ask unanimous consent that the text of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 127

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Clinical Social Workers'
Recognition Act of 2005''.

SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL WORKERS FOR FEDERAL
WORKER COMPENSATION CLAIMS.

Section 8101 of title 5, United States Code, is amended--
(1) in paragraph (2), by striking ``and osteopathic
practitioners'' and inserting ``osteopathic practitioners,
and clinical social workers''; and
(2) in paragraph (3), by striking ``osteopathic
practitioners'' and inserting ``osteopathic practitioners,
clinical social workers,''.

[[Page S317]]

______

By Mrs. BOXER (for herself and Mrs. Feinstein):
S. 128. A bill to designate certain public land in Humboldt, Del
Norte, Mendocino, Lake, and Napa Counties in the State of California as
wilderness, to designate certain segments of the Black Butte River in
Mendocino County, California as a wild or scenic river, and for other
purposes; to the Committee on Energy and Natural Resources.
Mrs. BOXER. Mr. President, I am introducing a bill today that will
protect hundreds of thousands of acres of wilderness in Northern
California. The Northern California Coastal Wild Heritage Wilderness
Act would designate over 300,000 acres in 14 areas as wilderness and
would protect 21 miles of the Black Butte Creek as wild and scenic. The
Senate passed this legislation during the 108th Congress, and I am
hopeful this year that the bill will become law.
California's natural treasures have always been one of the things
that make California unique, drawing millions of people to them over
the years to revel in their wild beauty. But that beauty must not be
taken for granted. It is important that we move now to designate these
special places in California as wilderness to protect them for the
enjoyment of future generations.
That is why I introduced the statewide California Wild Heritage Act
during the 107th Congress and the 108th Congress, and I will soon be
reintroducing it. The California Wild Heritage Act would protect more
than 2.5 million acres of public land throughout the state of
California, as well as the free-flowing portions of 23 rivers. Every
acre of wild land is a treasure, but the areas protected in this bill
are some of California's most precious.
I am pleased to join Representative Mike Thompson of California in
introducing this legislation, which protect those portions of my
statewide bill that are located in California's First Congressional
District. The areas protected under this legislation are some of the
most magnificent wild places in our state. For example, in southwestern
Humboldt and northwestern Mendocino counties, over 42,000 acres of the
King Range will be protected as wilderness. This is the wildest portion
of the California coast, boasting the longest stretch of undeveloped
coastline in the United States outside of Alaska.
This bill will protect watersheds that provide clean water to our
cities and farms. This bill would also protect the precious plant and
animal species that make their homes in these areas. Endangered and
threatened species whose habitats will be protected by this bill
include the bald eagle, California brown pelican, steelhead trout, coho
salmon, bald eagle, peregrine falcon, northern spotted owl, and
Roosevelt elk.
During the last 20 years, 675,000 acres of unprotected wilderness
lost their wilderness character due to activities such as logging and
mining. As our population increases, and California becomes home to
almost 50 million people by the middle of the century, development
pressures threaten our remaining wild places. We must protect our
precious wild lands and wild rivers before they are lost forever.
Mr. President, those of us who live in the United States have a very
special responsibility to protect our natural heritage. With this
legislation, we are one step closer to protecting this legacy for our
children's children, and their children.
______

By Mr. TALENT:
S. 129. A bill to amend title 23, United States Code, to provide for
HOV facilities; to the Committee on Environment and Public Works.
Mr. TALENT. Mr. President, I am pleased to be introducing this bill,
which will allow more owners of hybrid electric vehicles, or HEVs, to
have access to HOV lanes on Federal highways. For all of us who have a
desire to lessen our dependence on foreign oil and encourage the use of
renewable energy, this bill represents a step forward towards achieving
those goals.
The language that is currently in the highway bills passed by the
House and the Senate allows hybrid vehicles that achieve a 45 mile-per-
gallon fuel economy highway rating to use HOV lanes. Any hybrid that
achieves that kind of fuel economy certainly deserves to get that
status, because it is a very impressive fuel economy rating and
represents a substantial improvement over non-hybrid vehicles. What the
45 mile-per-gallon standard fails to take into account, however, is
that many larger hybrid vehicles achieve a much larger fuel economy
improvement over their internal combustion engine counterparts, and
thus save more energy, than smaller vehicles which manage to meet the
standard but are a less drastic improvement over their non-hybrid
counterparts.
To illustrate this, take the 2005 model Honda Civic HEV, which gets
just over 45 miles-per-gallon. This represents less than a 40 percent
improvement over the comparable internal combustion model. The 2005
Ford Escape HEV, on the other hand, is a truck, so it gets fewer miles
per gallon than a Civic, between 35 and 40. However, this is a 75
percent improvement over its internal combustion engine counterpart,
and in addition, the Escape HEV emits 3-4 tons fewer greenhouse gases
every year than the non-hybrid.
There is no reason to discriminate against these larger, American-
made hybrids like the Ford Escape. They are truly engineering marvels
and are so clearly beneficial for the environment. The bill that I have
sponsored will give States the discretion to open up their HOV lanes to
hybrid vehicles that achieve a substantial increase in fuel economy
relative to comparable gasoline vehicles, or achieve a substantial
increase in lifetime fuel savings relative to comparable gasoline
vehicles. It creates a minimum standard of improvement necessary for
hybrids, but gives States the option of increasing the requirements.
This bill also allows States to open HOV lanes to single occupancy
advanced lean burn vehicles that achieve at least a 25 percent increase
in fuel economy relative to comparable gasoline vehicles and that are
certified to Clean Air Act Tier 2 standards.
I am hopeful that my colleagues on both sides of the aisle can agree
that we should do all we can to encourage the use of renewable energy
in our country, and hybrid vehicles are an important part of that. The
people who drive these vehicles are doing their part to help clean up
the air and increase energy conservation, and we should give more
people an incentive to buy these vehicles by giving them access to HOV
lanes.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 129

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. HOV FACILITIES.

(a) In General.--Subchapter I of chapter 1 of title 23,
United States Code, is amended by adding at the end the
following:

``Sec. 165. HOV facilities

``(a) Definitions.--In this section:
``(1) Dedicated alternative fuel vehicle.--The term
`dedicated alternative fuel vehicle' means a vehicle that
operates solely on--
``(A) methanol, denatured ethanol, or other alcohols;
``(B) a mixture containing at least 85 percent of methanol,
denatured ethanol, or other alcohols by volume with gasoline
or other fuels;
``(C) natural gas;
``(D) liquefied petroleum gas;
``(E) hydrogen;
``(F) coal derived liquid fuels;
``(G) fuels (except alcohol) derived from biological
materials;
``(H) electricity, including electricity from solar energy;
or
``(I) any other fuel that the Secretary prescribes by
regulation that is not substantially petroleum and that would
yield substantial energy security and environmental benefits.
``(2) HOV facility.--The term `HOV facility' means a high
occupancy vehicle facility.
``(3) Low-emission and energy-efficient vehicle.--The term
`low-emission and energy-efficient vehicle' means a vehicle
that--
``(A) has been certified by the Administrator of the
Environmental Protection Agency as meeting the Tier II
emission level established in regulations prescribed by the
Administrator under section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)) for that make and model year vehicle; and
``(B)(i) has propulsion energy drawn from onboard hybrid
sources of stored energy that are--
``(I) an internal combustion or heat engine using
consumable fuel;

[[Page S318]]

``(II) a rechargeable energy storage system; and
``(III) certified by the manufacturer to have achieved
either a 10 percent or more increase in city fuel economy
relative to a comparable vehicle that is an internal
combustion gasoline fueled vehicle (other than a vehicle that
has propulsion energy from such onboard hybrid sources), or a
10 percent or more vehicle increase in lifetime fuel savings
relative to a comparable vehicle, determined in accordance
with guidelines prescribed by the Administrator of the
Environmental Protection Agency not later than 180 days after
the date of enactment of this section, specifying procedures
and methods for calculating either increase and making the
comparison, except that the State agency referred to in this
section may, subject to the guidelines, increase in
combination the percentage under this subclause in
furtherance of its responsibilities with respect to a HOV
facility specified in subsection (e); or
``(ii) is a dedicated alternative fuel vehicle.
``(4) Public transportation vehicle.--The term `public
transportation vehicle' means a vehicle that provides public
transportation (as defined in section 5302(a) of title 49).
``(5) State agency.--The term `State agency', as used with
respect to a HOV facility, means an agency of a State or
local government (including a State transportation
department) having jurisdiction over the operation of the
facility.
``(6) Advanced lean burn technology vehicle.--The term
`advanced lean burn technology vehicle' means a vehicle with
an internal combustion engine that--
``(A) is designed to operate primarily using more air than
is necessary for complete combustion of fuel;
``(B) incorporates direct injection;
``(C) achieves at least 125 percent of city fuel economy of
a comparable vehicle; and
``(D) has received a certificate that the vehicle meets or
exceeds--
``(i) in the case of a vehicle having a gross vehicle
weight rating of 6000 pounds or less, the Bin 5 II emission
standard established by regulations under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)); and
``(ii) in the case of a vehicle having a gross vehicle
weight rating of more than 6,000 pounds but not more than
8,500 pounds, the Bin 8 Tier II emission standard established
by regulations under section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)).
``(b) In General.--
``(1) Authority of state agencies.--A State agency that has
jurisdiction over the operation of a HOV facility shall
establish the occupancy requirements of vehicles operating on
the facility.
``(2) Occupancy requirement.--Except as otherwise provided
by this section, not fewer than 2 occupants per vehicle may
be required for use of a HOV facility.
``(c) Exceptions to Occupancy Requirement.--Notwithstanding
the occupancy requirements of subsection (b)(2), the
following exceptions shall apply with respect to a State
agency operating a HOV facility:
``(1) Motorcycles and bicycles.--
``(A) In general.--Subject to subparagraph (B), the State
agency shall allow motorcycles and bicycles to use the HOV
facility.
``(B) Safety exception.--
``(i) In general.--A State agency may restrict use of the
HOV facility by motorcycles or bicycles if the agency
certifies to the Secretary that such use would create a
safety hazard and the Secretary accepts the certification.
``(ii) Notice.--The Secretary may accept a certification
under clause (i) only after the Secretary publishes notice of
the certification in the Federal Register and provides an
opportunity for public comment.
``(2) Public transportation vehicles.--The State agency may
allow public transportation vehicles to use the HOV facility
if the agency--
``(A) establishes requirements for clearly identifying the
vehicles; and
``(B) establishes procedures for enforcing the restrictions
on the use of the facility by the vehicles.
``(3) High occupancy toll vehicles.--The State agency may
allow vehicles that are not otherwise exempt under this
subsection to use the HOV facility if--
``(A) the operators of the vehicles pay a toll charged by
the agency for use of the facility; and
``(B) the agency--
``(i) establishes a program that addresses how motorists
can enroll and participate in the toll program;
``(ii) develops, manages, and maintains a system that will
automatically collect the toll; and
``(iii) establishes policies and procedures to--

``(I) manage the demand to use the facility by varying the
toll amount that is charged;
``(II) enforce violations of use of the facility; and
``(III) permit low-income individuals to pay reduced tolls.

``(4) Low-emission and energy-efficient vehicles.--
``(A) Inherently low-emission vehicles.--Before September
30, 2009, the State agency may allow vehicles that are
certified and labeled as inherently low-emission vehicles
under section 88.311-93 of title 40, Code of Federal
Regulations, to use the HOV facility if the agency
establishes procedures for enforcing restrictions on the use
of the facility by the vehicles.
``(B) Other low-emission and energy-efficient vehicles.--
Before September 30, 2009, the State agency may allow
vehicles that are certified as and labeled low-emission and
energy-efficient vehicles under subsection (f) to use the HOV
facility if the agency--
``(i) establishes a program that addresses how the vehicles
are selected and certified;
``(ii) establishes requirements for labeling the vehicles
and procedures for enforcing those requirements;
``(iii) continuously monitors, evaluates, and reports to
the Secretary on the performance of the vehicles; and
``(iv) imposes on the use of the HOV facility by vehicles
that do not satisfy established occupancy requirements any
restrictions that are necessary to ensure that neither the
performance of an individual HOV facility nor the HOV
facility system are seriously degraded.
``(5) Advanced lean burn technology vehicles.--Before
September 30, 2009, the State agency may allow vehicles that
are certified and labeled as advanced lean burn technology
vehicles under subsection (f) to use the HOV facility if the
agency--
``(A) establishes a program that address how the vehicles
are selected and certified;
``(B) establishes requirements for labeling the vehicles
and procedures for enforcing those requirements;
``(C) continuously monitors, evaluates, and reports to the
Secretary on the performance of the vehicles; and
``(D) imposes on the use of HOV facilities by vehicles that
do not satisfy established occupancy requirements any
restrictions that are necessary to ensure that neither the
performance of individual HOV facilities nor the HOV facility
system are seriously degraded.
``(d) Requirements Applicable to Tolls.--
``(1) In general.--Notwithstanding section 301, tolls may
be charged under paragraphs (3) and (4) of subsection (c),
subject to the requirements of section 129.
``(2) HOV facilities on the interstate system.--
Notwithstanding section 129, tolls may be charged under
paragraphs (3) and (4) of subsection (c) on a HOV facility on
the Interstate System.
``(3) Excess toll revenues.--If a State agency makes a
certification under the last sentence of section 129(a)(3)
concerning toll revenues collected under paragraphs (3) and
(4) of subsection (c), the State shall give priority
consideration to projects that develop alternatives to single
occupancy vehicle travel or improve highway safety in the use
of toll revenues under that sentence.
``(e) HOV Facility Management, Operation, Monitoring, and
Enforcement.--
``(1) In general.--A State agency that allows low-emission
and energy-efficient vehicles to use a HOV facility under
subsection (c)(4) in a fiscal year shall certify to the
Secretary that the agency will carry out the following
responsibilities with respect to the facility in the fiscal
year:
``(A) Establish, manage, and support a performance-
monitoring, evaluation, and reporting program for the
facility that provides for continuous monitoring, assessment,
and reporting on the effects that low-emission and energy-
efficient vehicles may have on the operation of the facility
and adjacent highways.
``(B) Establish, manage, and support an enforcement program
that ensures that the facility is operated in accordance with
this section.
``(C) Limit or discontinue the use of the facility by low-
emission and energy-efficient vehicles if the presence of the
vehicles has degraded the operation of the facility.
``(2) Minimum average operating speed; degraded facility.--
``(A) Minimum average operating speed defined.--In this
paragraph, the term `minimum average operating speed' means--
``(i) 45 miles per hour, in the case of a HOV facility with
a speed limit of 50 miles per hour or greater; and
``(ii) not more than 10 miles per hour below the speed
limit, in the case of a HOV facility with a speed limit of
less than 50 miles per hour.
``(B) Standard for determining degradation.--For purposes
of paragraph (1), the operation of a HOV facility shall be
considered to be degraded if vehicles operating on the
facility fail to maintain a minimum average operating speed
90 percent of the time over a consecutive 180-day period
during morning or evening weekday peak hour periods.
``(f) Certification and Labeling of Low-Emission and
Energy-Efficient Vehicles and Advanced Lean Burn Technology
Vehicles.--Not later than 180 days after the date of
enactment of this section, the Administrator of the
Environmental Protection Agency shall promulgate a final rule
establishing requirements for--
``(1) certification of vehicles--
``(A) as low-emission and energy-efficient vehicles; and
``(B) as advance lean burn technology vehicles; and
``(2) labeling of the vehicles certified under paragraph
(1).''.
(b) Technical Amendment.--Section 102(c) of title 23,
United States Code, is amended by striking from ``10 years''
through ``after'' and inserting ``10 years (or any longer
period that the State requests and the Secretary determines
to be reasonable) after''.
(c) Conforming Amendments.--
(1) Program efficiencies.--Section 102 of title 23, United
States Code, is amended by striking subsection (a) and
redesignating subsections (b) and (c) as subsections (a) and
(b), respectively.

[[Page S319]]

(2) Chapter analysis.--The analysis for subchapter I of
chapter 1 of title 23, United States Code, is amended by
adding at the end the following:

``165. HOV facilities.''.
______

By Mr. HAGEL (for himself and Mr. Nelson of Nebraska):
S. 130. A bill to authorize an additional district judgeship for the
district of Nebraska; to the Committee on the Judiciary.
Mr. HAGEL. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 130

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. DISTRICT JUDGESHIP FOR THE DISTRICT OF NEBRASKA.

(a) In General.--The President shall appoint, by and with
the advice and consent of the Senate, 1 additional district
judge for the district of Nebraska.
(b) Technical and Conforming Amendment.--The table under
section 133(a) of title 28, United States Code, is amended by
striking the item relating to Nebraska and inserting the
following:

``Nebraska...................................................4''.....

______

By Mr. INHOFE (for himself and Mr. Voinovich):
S. 131. A bill to amend the Clean Air Act to reduce air pollution
through expansion of cap and trade programs, to provide an alternative
regulatory classification for units subject to the cap and trade
program; to the Committee on Environment and Public Works.
Mr. INHOFE. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 131

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Clear
Skies Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Emission reduction programs.

``TITLE IV--EMISSION REDUCTION PROGRAMS

``Part A--General Provisions

``Sec. 401. (reserved)
``Sec. 402. Definitions.
``Sec. 403. Allowance system.
``Sec. 404. Permits and compliance plans.
``Sec. 405. Monitoring, reporting, and recordkeeping requirements.
``Sec. 406. Excess emissions penalty; general compliance with other
provisions; enforcement.
``Sec. 407. Election for additional units.
``Sec. 408. Clean coal technology regulatory incentives.
``Sec. 409. Electricity reliability.

``Part B--Sulfur Dioxide Emission Reductions

``SUBPART 1--ACID RAIN PROGRAM

``Sec. 411. Definitions.
``Sec. 412. Allowance allocation.
``Sec. 413. Phase I sulfur dioxide requirements.
``Sec. 414. Phase II sulfur dioxide requirements.
``Sec. 415. Allowances for States with emissions rates at or below 0.80
lbs/mmBtu.
``Sec. 416. Election for additional sources.
``Sec. 417. Auctions, reserve.
``Sec. 418. Industrial sulfur dioxide emissions.
``Sec. 419. Termination.

``SUBPART 2--CLEAR SKIES SULFUR DIOXIDE ALLOWANCE PROGRAM

``Sec. 421. Definitions.
``Sec. 422. Applicability.
``Sec. 423. Limitations on total emissions.
``Sec. 424. Egu allocations.
``Sec. 425. Disposition of sulfur dioxide allowances allocated under
subpart 1.
``Sec. 426. Incentives for sulfur dioxide emission control technology.

``SUBPART 3--WESTERN REGIONAL AIR PARTNERSHIP

``Sec. 431. Definitions.
``Sec. 432. Applicability.
``Sec. 433. Limitations on total emissions.
``Sec. 434. EGU allocations.

``Part C--Nitrogen Oxides Clear Skies Emission Reductions

``SUBPART 1--ACID RAIN PROGRAM

``Sec. 441. Nitrogen oxides emission reduction program.
``Sec. 442. Termination.

``SUBPART 2--CLEAR SKIES NITROGEN OXIDES ALLOWANCE PROGRAM

``Sec. 451. Definitions.
``Sec. 452. Applicability.
``Sec. 453. Limitations on total emissions.
``Sec. 454. EGU allocations.
``Sec. 455. Nitrogen oxides early action reduction credits.

``SUBPART 3--OZONE SEASON NOx BUDGET PROGRAM

``Sec. 461. Definitions.
``Sec. 462. General provisions.
``Sec. 463. Applicable implementation plan.
``Sec. 464. Termination of Federal administration of NOx trading
program for EGUs.
``Sec. 465. Carryforward of pre-2008 nitrogen oxides allowances.
``Sec. 466. Non-ozone season voluntary action credits.

``Part D--Mercury Emissions Reductions

``Sec. 471. Definitions.
``Sec. 472. Applicability.
``Sec. 473. Limitations on total emissions.
``Sec. 474. EGU allocations.
``Sec. 475. Mercury early action reduction credits.

``Part E--National Emission Standards; Research, Environmental
Accountability; Major Source Preconstruction Review and Best Available
Retrofit Control Technology Requirements

``Sec. 481. National emission standards for affected units.
``Sec. 482. Research, environmental monitoring, and assessment.
``Sec. 483. Major source preconstruction review requirements and best
available retrofit control technology requirements;
applicability to affected units.
Sec. 3. Other amendments.

SEC. 2. EMISSION REDUCTION PROGRAMS.

Title IV of the Clean Air Act (relating to acid deposition
control) (42 U.S.C. 7651, et seq.) is amended to read as
follows:

``TITLE IV--EMISSION REDUCTION PROGRAMS

``PART A--GENERAL PROVISIONS

``SEC. 401. (RESERVED)

``SEC. 402. DEFINITIONS.

``In this title:
``(1) Affected EGU.--The term `affected EGU' shall have the
meaning set forth in section 421, 430, 451, or 471, as
appropriate.
``(2) Affected facility.--The term `affected facility' or
`affected source' means a facility or source that includes
one or more affected units.
``(3) Affected unit.--The term `affected unit' means--
``(A) under this part, a unit that is subject to emission
reduction requirements or limitations under part B, C, or D
or, if applicable, under a specified part or subpart; or
``(B) under subpart 1 of part B or subpart 1 of part C, a
unit that is subject to emission reduction requirements or
limitations under that subpart.
``(4) Allowance.--The term `allowance' means--
``(A) an authorization, by the Administrator under this
title, to emit one ton of sulfur dioxide, one ton of nitrogen
oxides, or one ounce of mercury; or
``(B) under subpart 1 of part B, an authorization by the
Administrator under this title, to emit one ton of sulfur
dioxide.
``(5) Baseline heat input.--
``(A) In general.--The term `baseline heat input' means,
except under subpart 1 of part B and section 407, the average
annual heat input used by a unit during the three years in
which the unit had the highest heat input for the period 1998
through 2002.
``(B) Commencement of operation after january 1, 2001.--
Notwithstanding subparagraph (A), if a unit commenced or
commences operation after January 1, 2001, then `baseline
heat input' means the manufacturer's design heat input
capacity for the unit multiplied by 80 percent for coal-fired
units, 50 percent for boilers that are not coal-fired, 80
percent for combustion turbine cogeneration units elected
under section 407, 50 percent for combustion turbines other
than simple cycle turbines, and 5 percent for simple cycle
combustion turbines.
``(C) Heat input determination.--A unit's heat input for a
year shall be the heat input--
``(i) required to be reported under section 405 for the
unit, if the unit was required to report heat input during
the year under that section;
``(ii) reported to the Energy Information Administration
for the unit, if the unit was not required to report heat
input under section 405;
``(iii) based on data for the unit reported to the State
where the unit is located as required by State law, if the
unit was not required to report heat input during the year
under section 405 and did not report to the Energy
Information Administration; or
``(iv) based on fuel use and fuel heat content data for the
unit from fuel purchase or use records, if the unit was not
required to report heat input during the year under section
405 and did not report to the Energy Information
Administration and the State.
``(D) Regulations.--Not later than three months after the
enactment of the Clear Skies Act of 2005, the Administrator
shall promulgate regulations, without notice and opportunity
for comment, specifying the format in which the information
under subparagraphs (B)(ii) and (C)(ii), (iii), or (iv) shall
be submitted. Not later than nine months after the enactment
of the Clear Skies Act of 2005, the owner or operator of any
unit under subparagraph (B)(ii) or (C)(ii), (iii), or (iv) to
which allowances may be allocated under

[[Page S320]]

section 424, 434, 454, or 474 shall submit to the
Administrator such information. The Administrator is not
required to allocate allowances under such sections to a unit
for which the owner or operator fails to submit information
in accordance with the regulations promulgated under this
subparagraph.
``(6) Coal.--The term `coal' means any solid fuel
classified as anthracite, bituminous, subbituminous, or
lignite.
``(7) Coal-derived fuel.--The term `coal-derived fuel'
means any fuel (whether in a solid, liquid, or gaseous state)
produced by the mechanical, thermal, or chemical processing
of coal.
``(8) Coal-fired.--The term `coal-fired' with regard to a
unit means, except under subpart 1 of part B, subpart 1 of
part C, and sections 424 and 434, combusting coal or any
coal-derived fuel alone or in combination with any amount of
any other fuel in any year.
``(9) Cogeneration unit.--The term `cogeneration unit'
means, except under subpart 1 of part B and subpart 1 of part
C, a unit that produces through the sequential use of
energy--
``(A) electricity; and
``(B) useful thermal energy (such as heat or steam) for
industrial, commercial, heating, or cooling purposes.
``(10) Combustion turbine.--
``(A) In general.--The term `combustion turbine' means any
combustion turbine that is not self-propelled.
``(B) Inclusion.--The term `combustion turbine' includes a
simple cycle combustion turbine, a combined cycle combustion
turbine and any duct burner or heat recovery device used to
extract heat from the combustion turbine exhaust, and a
regenerative combustion turbine.
``(C) Exclusions.--The term `combustion turbine' does not
include a combined turbine in an integrated gasification
combined cycle plant.
``(11) Commence commercial operation.--The term `commence
commercial operation' with regard to a unit means the start
up of the unit's combustion chamber and the commencement of
the generation of electricity for sale.
``(12) Compliance plan.--The term `compliance plan' means
either--
``(A) a statement that the facility will comply with all
applicable requirements under this title; or
``(B) under subpart 1 of part B or subpart 1 of part C,
where applicable, a schedule and description of the method or
methods for compliance and certification by the owner or
operator that the facility is in compliance with the
requirements of that subpart.
``(13) Continuous emission monitoring system.--The term
`continuous emission monitoring system' (CEMS) means the
equipment as required by section 405, used to sample,
analyze, measure, and provide on a continuous basis a
permanent record of emissions and flow (expressed in pounds
per million British thermal units (lbs/mmBtu), pounds per
hour (lbs/hr) or such other form as the Administrator may
prescribe by regulations under section 405.
``(14) Designated representative.--The term `designated
representative' means a responsible person or official
authorized by the owner or operator of a unit and the
facility that includes the unit to represent the owner or
operator in matters pertaining to the holding, transfer, or
disposition of allowances, and the submission of and
compliance with permits, permit applications, and compliance
plans.
``(15) Duct burner.--The term `duct burner' means a
combustion device that uses the exhaust from a combustion
turbine to burn fuel for heat recovery.
``(16) Facility.--The term `facility' means all buildings,
structures, or installations located on 1 or more contiguous
or adjacent properties under common control of the same
person or persons.
``(17) Fossil fuel.--The term `fossil fuel' means natural
gas, petroleum, coal, or any form of solid, liquid, or
gaseous fuel derived from such material.
``(18) Fossil fuel-fired.--The term `fossil fuel-fired',
with regard to a unit, means the combustion of fuel that is
composed of at least 10 percent fossil fuel.
``(19) Fuel oil.--The term `fuel oil' means a petroleum-
based fuel, including diesel fuel or petroleum derivatives.
``(20) Gas-fired.--The term `gas-fired', with regard to a
unit, means, except under subpart 1 of part B and subpart 1
of part C, combusting only natural gas or fuel oil, with
natural gas comprising at least 90 percent, and fuel oil
comprising no more than 10 percent, of the unit's total heat
input in any year.
``(21) Gasify.--The term `gasify' means to convert carbon-
containing material into a gas consisting primarily of carbon
monoxide and hydrogen.
``(22) Generator.--The term `generator' means a device that
produces electricity and, under subpart 1 of part B and
subpart 1 of part C, that is reported as a generating unit
pursuant to Department of Energy Form 860.
``(23) Heat input.--
``(A) In general.--The term `heat input', with regard to a
specific period of time, means the product (in mmBtu/time)
obtained by multiplying--
``(i) the gross calorific value of the fuel (in mmBtu/lb);
and
``(ii) the fuel feed rate into a unit (in lb of fuel/time).
``(B) Exclusions.--The term `heat input' does not include
the heat derived from preheated combustion air, recirculated
flue gases, or exhaust.
``(24) Integrated gasification combined cycle plant.--The
term `integrated gasification combined cycle plant' means any
combination of equipment used to gasify fossil fuels (with or
without other material) and then burn the gas in a combined
cycle combustion turbine.
``(25) Oil-fired.--The term `oil-fired', with regard to a
unit, means, except under sections 424 and 434, combusting
fuel oil for more than 10 percent the unit's total heat
input, and combusting no coal or coal-derived fuel, in any
year.
``(26) Owner or operator.--The term `owner or operator'
with regard to a unit or facility means, except for subpart 1
of part B and subpart 1 of part C, any person who owns,
leases, operates, controls, or supervises the unit or the
facility.
``(27) Permitting authority.--The term `permitting
authority' means the Administrator, or the State or local air
pollution control agency, with an approved permitting program
under title V of the Act.
``(28) Potential electrical output.--The term `potential
electrical output' with regard to a generator means the
nameplate capacity of the generator multiplied by 8,760
hours.
``(29) Simple cycle combustion turbine.--The term `simple
cycle combustion turbine' means a combustion turbine that
does not extract heat from the combustion turbine exhaust
gases.
``(30) Stationary source.--The term `stationary source'
means any building, structure, facility, or installation
located on one or more contiguous or adjacent properties
under common control or ownership of the same person or
persons which emits or may emit any air pollutant subject to
regulations under the Clear Skies Act of 2005.
``(31) State.--The term `State' means--
``(A) 1 of the 48 contiguous States, Alaska, Hawaii, the
District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, or the Commonwealth of
the Northern Mariana Islands; or
``(B) under subpart 1 of part B and subpart 1 of part C, 1
of the 48 contiguous States or the District of Columbia.
``(32) Unit.--The term `unit' means--
``(A) a fossil fuel-fired boiler, combustion turbine, or
integrated gasification combined cycle plant;
``(B) under subpart 1 of part B and subpart 1 of part C, a
fossil fuel-fired combustion device; and
``(C) a stationary source that--
``(i) emits nitrogen oxides, sulfur dioxide, mercury, or
any combination of those substances; and
``(ii) is elected under section 407.
``(33) Utility unit.--The term `utility unit' shall have
the meaning set forth in section 411.
``(34) Year.--The term `year' means a calendar year.

``SEC. 403. ALLOWANCE SYSTEM.

``(a) Allocations.--
``(1) In general.--For the emission limitation programs
under this title, the Administrator shall allocate annual
allowances for an affected unit, to be held or distributed by
the designated representative of the owner or operator in
accordance with this title as follows--
``(A) sulfur dioxide allowances in an amount equal to the
annual tonnage emission limitation calculated under section
413, 414, 415, or 416, except as otherwise specifically
provided elsewhere in subpart 1 of part B, or in an amount
calculated under section 424 or 434;
``(B) nitrogen oxides allowances in an amount calculated
under section 454; and
``(C) mercury allowances in an amount calculated under
section 474.
``(2) No judicial review.--Notwithstanding any other
provision of law to the contrary, the calculation of the
allocation for any unit or facility, and the determination of
any values used in such calculation, under sections 424, 434,
454, and 474 shall not be subject to judicial review.
``(3) Allocation without cost.--Allowances shall be
allocated by the Administrator without cost to the recipient,
in accordance with this title.
``(b) Allowance Transfer System.--Allowances allocated or
sold by the Administrator under this title may be transferred
among designated representatives of the owners or operators
of affected facilities under this title and any other person,
as provided by the allowance system regulations promulgated
by the Administrator. With regard to sulfur dioxide
allowances, the Administrator shall implement this subsection
under 40 CFR part 73 (2002), amended as appropriate by the
Administrator. With regard to nitrogen oxides allowances and
mercury allowances, the Administrator shall implement this
subsection by promulgating regulations not later than twenty-
four months after the date of enactment of the Clear Skies
Act of 2005. The regulations under this subsection shall
establish the allowance system prescribed under this section,
including, but not limited to, requirements for the
allocation, transfer, and use of allowances under this title.
Such regulations shall prohibit the use of any allowance
prior to the calendar year for which the allowance was
allocated and shall provide, consistent with the purposes of
this title, for the identification of

[[Page S321]]

unused allowances, and for such unused allowances to be
carried forward and added to allowances allocated in
subsequent years. Such regulations shall provide, or shall be
amended to provide, that transfers of allowances shall not be
effective until certification of the transfer, signed by a
responsible official of the transferor, is received and
recorded by the Administrator.
``(c) Allowance Tracking System.--The Administrator shall
promulgate regulations establishing a system for issuing,
recording, and tracking allowances, which shall specify all
necessary procedures and requirements for an orderly and
competitive functioning of the allowance system. Such system
shall provide, by twenty-four months prior to the compliance
year, for one or more facility-wide accounts for holding
sulfur dioxide allowances, nitrogen oxides allowances, and,
if applicable, mercury allowances for all affected units at
an affected facility. With regard to sulfur dioxide
allowances, the Administrator shall implement this subsection
under 40 CFR part 73 (2002), amended as appropriate by the
Administrator. With regard to nitrogen oxides allowances and
mercury allowances, the Administrator shall implement this
subsection by promulgating regulations not later than twenty-
four months after the date of enactment of the Clear Skies
Act of 2005. All allowance allocations and transfers shall,
upon recording by the Administrator, be deemed a part of each
unit's or facility's permit requirements pursuant to section
404, without any further permit review and revision.
``(d) Nature of Allowances.--A sulfur dioxide allowance,
nitrogen oxides allowance, or mercury allowance allocated or
sold by the Administrator under this title is a limited
authorization to emit one ton of sulfur dioxide, one ton of
nitrogen oxides, or one ounce of mercury, as the case may be,
in accordance with the provisions of this title. Such
allowance does not constitute a property right. Nothing in
this title or in any other provision of law shall be
construed to limit the authority of the United States to
terminate or limit such authorization. Nothing in this
section relating to allowances shall be construed as
affecting the application of, or compliance with, any other
provision of this Act to an affected unit or facility,
including the provisions related to applicable National
Ambient Air Quality Standards and State implementation plans.
Nothing in this section shall be construed as requiring a
change of any kind in any State law regulating electric
utility rates and charges or affecting any State law
regarding such State regulation or as limiting State
regulation (including any prudency review) under such a State
law. Nothing in this section shall be construed as modifying
the Federal Power Act or as affecting the authority of the
Federal Energy Regulatory Commission under that Act. Nothing
in this title shall be construed to interfere with or impair
any program for competitive bidding for power supply in a
State in which such program is established. Allowances, once
allocated or sold to a person by the Administrator, may be
received, held, and temporarily or permanently transferred in
accordance with this title and the regulations of the
Administrator without regard to whether or not a permit is in
effect under title V of the Clean Air Act or section 404 of
the Clear Skies Act of 2005 with respect to the unit for
which such allowance was originally allocated and recorded.
``(e) Prohibitions.--
``(1) In general.--It shall be unlawful for any person to
hold, use, or transfer any allowance allocated or sold by the
Administrator under this title, except in accordance with
regulations promulgated by the Administrator.
``(2) Emissions.--It shall be unlawful for any affected
unit or for the affected units at a facility to emit sulfur
dioxide, nitrogen oxides, and mercury, as the case may be,
during a year in excess of the number of allowances held for
that unit or facility for that year by the designated
representative as provided in sections 412(c), 422, 432, 452,
and 472.
``(3) Purchase of allowances.--The owner or operator of a
facility may purchase allowances directly from the
Administrator to be used only to meet the requirements of
sections 422, 432, 452, and 472, as the case may be, for the
year in which the purchase is made or the prior year. Not
later than thirty-six months after the date of enactment of
the Clear Skies Act of 2005, the Administrator shall
promulgate regulations providing for direct sales of sulfur
dioxide allowances, nitrogen oxides allowances, and mercury
allowances to an owner or operator of a facility. The
regulations shall provide that--
``(A) such allowances may be used only to meet the
requirements of section 422, 432, 452, and 472, as the case
may be, for such facility and for the year in which the
purchase is made or the prior year;
``(B) each such sulfur dioxide allowance shall be sold for
$2,000, each such nitrogen oxides allowance shall be sold for
$4,000, and each such mercury allowance shall be sold for
$2,187.50, with such prices adjusted for inflation based on
the Consumer Price Index on the date of enactment of the
Clear Skies Act of 2005 and annually thereafter;
``(C) the proceeds from any sales of allowances under
subparagraph (B) shall be, in accordance with paragraph (j),
deposited in the Compliance Assistance Account;
``(D) except for allowances subject to (E), the allowances
directly purchased for use for the year specified in
subparagraph (A) shall be, on a pro rata basis, taken from,
and reduce, the amount of sulfur dioxide allowances, nitrogen
oxides allowances, or mercury allowances, as the case may be,
that would otherwise be allocated under section 423, 453, or
473 starting for the second year after the specified year and
continuing for each subsequent year as necessary; and
``(E) if the designated representative does not use any
such allowance in accordance with paragraph (A) the
designated representative shall hold the allowance for
deduction by the Administrator. The Administrator shall
deduct the allowance without refund or other form of
recompense.
``(4) Use of allowances.--Allowances may not be used prior
to the calendar year for which they are allocated but may be
used in succeeding years. Nothing in this section or in the
allowance system regulations shall relieve the Administrator
of the Administrator's permitting, monitoring and enforcement
obligations under this Act, nor relieve affected facilities
of their requirements and liabilities under the Act.
``(f) Competitive Bidding for Power Supply.--Nothing in
this title shall be construed to interfere with or impair any
program for competitive bidding for power supply in a State
in which such program is established.
``(g) Applicability of the Antitrust Laws.--
``(1) In general.--Nothing in this section affects--
``(A) the applicability of the antitrust laws to the
transfer, use, or sale of allowances; or
``(B) the authority of the Federal Energy Regulatory
Commission under any provision of law respecting unfair
methods of competition or anticompetitive acts or practices.
``(2) Definition of antitrust laws.--In this section, the
term `antitrust laws' means those Acts set forth in section 1
of the Clayton Act (15 U.S.C. 12).
``(h) Public Utility Holding Company Act.--The acquisition
or disposition of allowances pursuant to this title including
the issuance of securities or the undertaking of any other
financing transaction in connection with such allowances
shall not be subject to the provisions of the Public Utility
Holding Company Act of 1935.
``(i) Interpollutant Trading.--Not later than July 1, 2009,
the Administrator shall furnish to the Congress a study
evaluating the environmental and economic consequences of
amending this title to permit trading sulfur dioxide
allowances for nitrogen oxides allowances and nitrogen oxides
allowances for sulfur dioxide allowances.
``(j) Compliance Assistance Account.--An account shall be
established by the Secretary of Energy in consultation with
the Administrator:
``(1) Use of amounts.--Payments or monies deposited in this
account in accordance with this title shall be used for the
purpose of developing emission control technologies through
direct grants to affected units that demonstrate new control
technologies regulated under this title.
``(2) Regulations.--The Secretary of Energy in consultation
with the Administrator shall promulgate regulations with
notice and opportunity for comment to establish criteria for
affected units to qualify for this subsection.

``SEC. 404. PERMITS AND COMPLIANCE PLANS.

``(a) Permit Program.--The provisions of this title shall
be implemented, subject to section 403, by permits issued to
units and facilities subject to this title and enforced in
accordance with the provisions of title V, as modified by
this title. Any such permit issued by the Administrator, or
by a State with an approved permit program, shall prohibit--
``(1) annual emissions of sulfur dioxide, nitrogen oxides,
and mercury in excess of the number of allowances required to
be held in accordance with sections 412(c), 422, 432, 452,
and 472;
``(2) exceeding applicable emissions rates under section
441;
``(3) the use of any allowance prior to the year for which
it was allocated; and
``(4) contravention of any other provision of the permit.

No permit shall be issued that is inconsistent with the
requirements of this title, and title V as applicable.
``(b) Compliance Plan.--
``(1) In general.--Each initial permit application shall be
accompanied by a compliance plan for the facility to comply
with its requirements under this title. Where an affected
facility consists of more than one affected unit, such plan
shall cover all such units, and such facility shall be
considered a `facility' under section 502(c). Nothing in this
section regarding compliance plans or in title V shall be
construed as affecting allowances.
``(2) Statements.--
``(A) In general.--Submission of a statement by the owner
or operator, or the designated representative of the owners
and operators, of a unit subject to the emissions limitation
requirements of sections 412(c), 413, 414, and 441, that the
unit will meet the applicable emissions limitation
requirements of such sections in a timely manner or that, in
the case of the emissions limitation requirements of sections
412(c), 413, and 414, the owners and operators will hold
sulfur dioxide allowances in the amount required by section
412(c), shall be deemed to meet the proposed and approved
compliance planning requirements of this section and title V,
except that, for any unit that will meet the requirements of
this title by means of an alternative method of compliance
authorized

[[Page S322]]

under section 413 (b), (c), (d), or (f), section 416, and
section 441 (d) or (e), the proposed and approved compliance
plan, permit application and permit shall include, pursuant
to regulations promulgated by the Administrator, for each
alternative method of compliance a comprehensive description
of the schedule and means by which the unit will rely on one
or more alternative methods of compliance in the manner and
time authorized under subpart 1 of part B or subpart 1 of
part C.
``(B) Other statements.--Submission of a statement by the
owner or operator, or the designated representative, of a
facility that includes a unit subject to the emissions
limitation requirements of sections 422, 432, 452, and 472
that the owner or operator will hold sulfur dioxide
allowances, nitrogen oxide allowances, and mercury
allowances, as the case may be, in the amount required by
such sections shall be deemed to meet the proposed and
approved compliance planning requirements of this section and
title V with regard to subparts A through D.
``(3) Recording of transfers.--Recording by the
Administrator of transfers of allowances shall amend
automatically, and will not reopen or require reopening of,
any or all applicable proposed or approved permit
applications, compliance plans, and permits.
``(c) Permits.--The owner or operator of each facility
under this title that includes an affected unit subject to
title V shall submit a permit application and compliance plan
with regard to the applicable requirements under sections
412(c), 422, 432, 441, 452, and 472 for sulfur dioxide
emissions, nitrogen oxide emissions, and mercury emissions
from such unit to the permitting authority in accordance with
the deadline for submission of permit applications and
compliance plans under title V. The permitting authority
shall issue a permit to such owner or operator, or the
designated representative of such owner or operator, that
satisfies the requirements of title V and this title.
``(d) Amendment of Application and Compliance Plan.--At any
time after the submission of an application and compliance
plan under this section, the applicant may submit a revised
application and compliance plan, in accordance with the
requirements of this section.
``(e) Prohibition.--
``(1) In general.--It shall be unlawful for any person to
operate any facility subject to this title except in
compliance with the terms and requirements of a permit
application and compliance plan (including amendments
thereto) or permit issued by the Administrator or a State
with an approved permit program. For purposes of this
subsection, compliance, as provided in section 504(f), with a
permit issued under title V which complies with this title
for facilities subject to this title shall be deemed
compliance with this subsection as well as section 502(a).
``(2) No termination of operations.--In order to ensure
reliability of electric power, nothing in this title or title
V shall be construed as requiring termination of operations
of a unit serving a generator for failure to have an approved
permit or compliance plan under this section.
``(f) Certificate of Representation.--No permit shall be
issued under this section to an affected unit or facility
until the designated representative of the owners or
operators has filed a certificate of representation with
regard to matters under this title, including the holding and
distribution of allowances and the proceeds of transactions
involving allowances.
``(g) Multiple Owners.--
``(1) In general.--No permit shall be issued under this
section to an affected unit until the designated
representative of the owners or operators has filed a
certificate of representation with regard to matters under
this title, including the holding and distribution of
allowances and the proceeds of transactions involving
allowances. Where there are multiple holders of a legal or
equitable title to, or a leasehold interest in, such a unit,
or where a utility or industrial customer purchases power
from an affected unit (or units) under life-of-the-unit, firm
power contractual arrangements, the certificate shall state--
``(A) that allowances and the proceeds or transactions
involving allowance will be deemed to be held or distributed
in proportion to each holder's legal, equitable, leasehold,
or contractual reservation or entitlement, or
``(B) if such multiple holders have expressly provided for
a different distribution of allowances by contract, that
allowances and the proceeds of transactions involving
allowances will be deemed to be held or distributed in
accordance with the contract.
``(2) Passive lessor.--A passive lessor, of a person who
has an equitable interest through such lessor, whose rental
payments are not based, either directly or indirectly, upon
the revenues or income from the affected unit shall not be
deemed to be a holder of a legal, equitable, leasehold, or
contractual interest for the purposes of holding or
distributing allowances as provided in this subsection,
unless expressly provided for in the leasehold agreement.
Except as otherwise provided in this subsection, where all
legal or equitable title to or interest in an affected unit
is held by a single person, the certification shall state
that all allowances received by the unit are deemed to be
held for that person.

``SEC. 405. MONITORING, REPORTING, AND RECORDKEEPING
REQUIREMENTS.

``(a) Requirements.--
``(1) Applicability.--
``(A) In general.--The owner and operator of any facility
subject to this title shall be required to install and
operate CEMS on each affected unit subject to subpart 1 of
part B or subpart 1 of part C at the facility, and to quality
assure the data, for sulfur dioxide, nitrogen oxides,
opacity, and volumetric flow at each such unit.
``(B) Specification of requirements.--The Administrator
shall, by regulation, specify the requirements for CEMS under
subparagraph (A), for any alternative monitoring system that
is demonstrated as providing information with the same
precision, reliability, accessibility, and time lines as that
provided by CEMS, and for recordkeeping and reporting of
information from such systems. Such regulations may include
limitations on the use of alternative compliance methods by
units equipped with an alternative monitoring system as may
be necessary to preserve the orderly functioning of the
allowance system, and which will ensure the emissions
reductions contemplated by this title. Where 2 or more units
utilize a single stack, a separate CEMS shall not be required
for each unit, and for such units the regulations shall
require that the owner or operator collect sufficient
information to permit reliable compliance determinations for
each such unit.
``(2) Installation and operation.--
``(A) In general.--The owner and operator of any facility
subject to this title shall be required to install and
operate CEMS to monitor the emissions from each affected unit
at the facility, and to quality assure the data for--
``(i) sulfur dioxide, opacity, and volumetric flow for all
affected units subject to subpart 2 of part B at the
facility,
``(ii) nitrogen oxides for all affected units subject to
subpart 2 of part C at the facility, and
``(iii) mercury for all affected units subject to part D at
the facility.
``(B) Alternative monitoring.--
``(i) In general.--The Administrator may specify an
alternative monitoring or compliance system for determining
mercury emissions. In specifying such alternative monitoring
or compliance systems, the lack of commercially available
appropriate and reasonable vendor guarantees shall constitute
a reasonable and permissible basis for specifying alternative
monitoring or compliance systems for mercury.
``(ii) Limitations.--The regulations under clause (iv) may
include limitations on the use of alternative compliance
methods by units equipped with an alternative monitoring
system as may be necessary to preserve the orderly
functioning of the allowance system, and which will ensure to
a reasonable extent the emissions reductions contemplated by
this title.
``(iii) No separate monitoring system.--The regulations
under clause (iv) shall not require a separate CEMS or other
monitoring system for each unit where two or more units
utilize a single stack and shall require that the owner or
operator collect sufficient information to permit reliable
compliance determinations for such units.
``(iv) Specification of requirements.--The Administrator
shall, by regulation, specify the requirements for CEMS under
subparagraph (A), for any alternative monitoring or
compliance system that is demonstrated as providing
information which is reasonably of the same precision,
reliability, accessibility, and timeliness as that provided
by CEMS, and for recordkeeping and reporting of information
from such systems. Such regulations may include limitations
on the use of alternative compliance methods by units
equipped with an alternative monitoring system as may be
necessary to preserve the orderly functioning of the
allowance system, and which will ensure to a reasonable
extent the emissions reductions contemplated by this title.
Where two or more units utilize a single stack, a separate
CEMS shall not be required for each unit, and for such units
the regulations shall require that the owner or operator
collect sufficient information to permit reliable compliance
determinations for each such unit.
``(b) Deadlines.--
``(1) New utility units.--Upon commencement of commercial
operation of each new utility unit under subpart I of part B,
the unit shall comply with the requirements of subsection
(a)(1).
``(2) Deadline for affected units under subpart 2 of part b
for installation and operation of cems.--By the later of the
date that is 1 year before the commencement date of the
sulfur dioxide allowance requirement of section 422, or the
date on which the unit commences operation, the owner or
operator of each affected unit under subpart 2 of part B
shall install and operate CEMS, quality assure the data, and
keep records and reports in accordance with the regulations
issued under paragraph (a)(2) with regard to sulfur dioxide,
opacity, and volumetric flow.
``(3) Deadline for affected units under subpart 3 of part b
for installation and operation of cems.--By the later of the
date that is 1 year before the first covered year, or the
date on which the unit commences commercial operation, the
owner or operator of each affected unit under subpart 3 of
part B shall install and operate CEMS, quality assure the
data, and keep records and reports in accordance with the
regulations issued under paragraph (a)(2) with regard to
sulfur dioxide and volumetric flow.

[[Page S323]]

``(4) Deadline for affected units under subpart 2 of part c
for installation and operation of cems.--By the later of the
date that is 1 year before the commencement date of the
nitrogen oxides allowance requirement under section 452, or
the date on which the unit commences operation, the owner or
operator of each affected unit under subpart 2 of part C
shall install and operate CEMS, quality assure the data, and
keep records and reports in accordance with the regulations
issued under paragraph (a)(2) with regard to nitrogen oxides.
``(5) Deadline for affected units under part d for
installation and operation of cems.--By the later of the date
that is 1 year before the commencement date of the mercury
allowance requirement of section 472 applies to such unit and
commences commercial operation, or the date on which the unit
commences operation, the owner or operator of each affected
unit under part D shall install and operate CEMS, quality
assure the data, and keep records and reports in accordance
with the regulations issued under paragraph (a)(2) with
regard to mercury.
``(c) Unavailability of Emissions Data.--
``(1) Sulfur dioxide and nitrogen oxides.--With respect to
sulfur dioxide and nitrogen oxides, if CEMS data or data from
an alternative monitoring system approved by the
Administrator under subsection (a) is not available for any
affected unit during any period of a calendar year in which
such data is required under this title, and the owner or
operator cannot provide information, reasonably satisfactory
to the Administrator, on emissions during that period, the
Administrator, in coordination with the owner, shall
calculate emissions for that period pursuant to regulations
promulgated for such purpose. The owner or operator shall be
liable for excess emissions fees and offsets under section
406 in accordance with such regulations. Any fee due and
payable under this subsection shall not diminish the
liability of the unit's owner or operator for any fine,
penalty, fee, or assessment against the unit for the same
violation under any other section of this Act.
``(2) Mercury.--With respect to mercury, if CEMS data or
data from an alternative monitoring system approved by the
Administrator under subsection (a) is not available for any
affected unit during any period of a calendar year in which
such data is required under this title, and the owner or
operator cannot provide information, reasonably satisfactory
to the Administrator, on emissions during that period, the
Administrator in coordination with the owner, shall calculate
emissions for that period pursuant to regulations promulgated
for such purpose. The owner or operator shall be liable for
excess emissions fees and offsets under section 406 in
accordance with such regulations. Any fee due and payable
under this subsection shall not diminish the liability of the
unit's owner or operator for any fine, penalty, fee, or
assessment against the unit for the same violation under any
other section of this Act.
``(d) Implementation.--With regard to sulfur dioxide,
nitrogen oxides, opacity, and volumetric flow, the
Administrator shall implement subsections (a) and (c) under
40 CFR part 75 (2002), amended, as appropriate by the
Administrator. With regard to mercury, the Administrator
shall implement subsections (a) and (c) by issuing proposed
regulations not later than 36 months before the commencement
date of the mercury allowance requirement under section 472
and final regulations not later than 24 months before that
commencement date.
``(e) Prohibition.--It shall be unlawful for the owner or
operator of any facility subject to this title to operate a
facility without complying with the requirements of this
section, and any regulations implementing this section.

``SEC. 406. EXCESS EMISSIONS PENALTY; GENERAL COMPLIANCE WITH
OTHER PROVISIONS; ENFORCEMENT.

``(a) Excess Emissions Penalty.--
``(1) Amount for oxides of nitrogen.--The owner or operator
of any unit subject to the requirements of section 441 that
emits nitrogen oxides for any calendar year in excess of the
unit's emissions limitation requirement shall be liable for
the payment of an excess emissions penalty, except where such
emissions were authorized pursuant to section 110(f). That
penalty shall be calculated on the basis of the number of
tons emitted in excess of the unit's emissions limitation
requirement multiplied by $2,000.
``(2) Amount for sulfur dioxide before 2008.--The owner or
operator of any unit subject to the requirements of section
412(c) that emits sulfur dioxide for any calendar year before
2008 in excess of the sulfur dioxide allowances the owner or
operator holds for use for the unit for that calendar year
shall be liable for the payment of an excess emissions
penalty, except where such emissions were authorized pursuant
to section 110(f) or (g). That penalty shall be calculated as
follows:
``(A) The product of the unit's excess emissions (in tons)
multiplied by $2,000, if within 30 days after the date on
which the owner or operator was required to hold sulfur
dioxide allowances--
``(i) the owner or operator offsets the excess emissions in
accordance with paragraph (b)(1); and
``(ii) the Administrator receives the penalty payment
required under this subparagraph.
``(B) If the requirements of clause (A)(i) or (A)(ii) are
not met, the product of the unit's excess emissions (in tons)
multiplied by $3,000.
``(3) Amount for sulfur dioxide after 2007.--If the units
at a facility that are subject to the requirements of section
412(c) emit sulfur dioxide for any calendar year after 2007
in excess of the sulfur dioxide allowances that the owner or
operator of the facility holds for use for the facility for
that calendar year, the owner or operator shall be liable for
the payment of an excess emissions penalty, except where such
emissions were authorized pursuant to section 110(f). That
penalty shall be calculated under paragraph (4)(A) or (4)(B).
``(4) Units subject to sections 422, 432, 452, or 472.--If
the units at a facility that are subject to the requirements
of section 422, 432, 452, or 472 emit sulfur dioxide,
nitrogen oxides, or mercury for any calendar year in excess
of the sulfur dioxide allowances, nitrogen oxides allowances,
or mercury allowances, as the case may be, that the owner or
operator of the facility holds for use for the facility or
units for that calendar year, the owner or operator shall be
liable for the payment of an excess emissions penalty, except
where such emissions were authorized pursuant to section
110(f). That penalty shall be equal to--
``(A) the quantity of the units' excess emissions in tons
(or, for mercury emissions, in ounces) multiplied by $2,000
(in the case of sulfur dioxide), $4,000 (in the case of
nitrogen oxides), or $2187.50 (in the case of mercury) if, on
or before the date that is 30 days after the date on which
the owner or operator was required to hold sulfur dioxide,
nitrogen oxides allowance, or mercury allowances, as the case
may be--
``(i) the owner or operator offsets the excess emissions in
accordance with paragraph (2) or (3) of subsection (b), as
applicable; and
``(ii) the Administrator receives the penalty required
under this subparagraph; or
``(B) if a requirement under subparagraph (A) is not met,
the quantity of the units' excess emissions in tons (or, for
mercury emissions, in ounces) multiplied by the product
obtained by multiplying--
``(i) 1.5; and
``(ii) the respective amount for sulfur dioxide, nitrogen
oxides, or mercury specified in subparagraph (A).
``(5) Payment.--Any penalty under paragraph (1), (2), (3),
or (4) shall be due and payable without demand to the
Administrator as provided in regulations issued by the
Administrator. With regard to the penalty under paragraph 1,
the Administrator shall implement this paragraph under 40 CFR
part 77 (2002), amended as appropriate by the Administrator.
With regard to the penalty under paragraphs 2, 3, and 4, the
Administrator shall implement this paragraph by issuing
regulations no later than 24 months after the date of
enactment of the Clear Skies Act of 2005. Any such payment
shall be deposited in the Compliance Assistance Account.
``(b) Excess Emissions Offset.--
``(1) In general.--The owner or operator of any unit
subject to the requirements of section 412(c) that emits
sulfur dioxide during any calendar year before 2008 in excess
of the sulfur dioxide allowances held for the unit for the
calendar year shall be liable to offset the excess emissions
by an equal tonnage amount in the following calendar year, or
such longer period as the Administrator may prescribe. The
Administrator shall deduct sulfur dioxide allowances equal to
the excess tonnage from those held for the facility for the
calendar year, or succeeding years during which offsets are
required, following the year in which the excess emissions
occurred.
``(2) Excess emissions of sulfur dioxide.--If the units at
a facility that are subject to the requirements of section
412(c) emit sulfur dioxide for a year after 2007 in excess of
the sulfur dioxide allowances that the owner or operator of
the facility holds for use for the facility for that calendar
year, the owner or operator shall be liable to offset the
excess emissions by an equal amount of tons in the following
calendar year, or such longer period as the Administrator may
prescribe. The Administrator shall deduct sulfur dioxide
allowances equal to the excess emissions in tons from those
held for the facility for the year, or succeeding years
during which offsets are required, following the year in
which the excess emissions occurred.
``(3) Excess emissions of sulfur dioxide, nitrogen oxides,
or mercury.--If the units at a facility that are subject to
the requirements of section 422, 432, 452, or 472 emit sulfur
dioxide, nitrogen oxides, or mercury for any calendar year in
excess of the sulfur dioxide allowances, nitrogen oxides
allowances, or mercury allowances, as the case may be, that
the owner or operator of the facility holds for use for the
facility for that calendar year, the owner or operator shall
be liable to offset the excess emissions by an equal amount
of tons or, for mercury, ounces in the following calendar
year, or such longer period as the Administrator may
prescribe. The Administrator shall deduct sulfur dioxide
allowances, nitrogen oxide allowances, or mercury allowances,
as the case may be, equal to the excess emissions in tons or,
for mercury, ounces from those held for the facility for the
year, or succeeding years during which offsets are required,
following the year in which the excess emissions occurred.
``(c) Penalty Adjustment.--The Administrator shall, by
regulation, adjust the penalty specified in subsection (a)(1)
and (a)(2) for inflation, based on the Consumer Price

[[Page S324]]

Index, on November 15, 1990, and annually thereafter.
``(d) Prohibition.--It shall be unlawful for the owner or
operator of any unit or facility liable for a penalty and
offset under this section to fail--
``(1) to pay the penalty under subsection (a); or
``(2) to offset excess emissions as required by subsection
(b).
``(e) Savings Provision.--Nothing in this title shall limit
or otherwise affect the application of section 113, 114, 120,
or 304 except as otherwise explicitly provided in this title.
``(f) Other Requirements.--Except as expressly provided,
compliance with the requirements of this title shall not
exempt or exclude the owner or operator of any facility
subject to this title from compliance with any other
applicable requirements of this Act. Notwithstanding any
other provision of this Act, no State or political
subdivision thereof shall restrict or interfere with the
transfer, sale, or purchase of allowances under this title.
``(g) Violations.--Violation by any person subject to this
title of any prohibition of, requirement of, or regulation
promulgated pursuant to this title shall be a violation of
this Act. In addition to the other requirements and
prohibitions provided for in this title, the operation of any
affected unit or the affected units at a facility to emit
sulfur dioxide, nitrogen oxides, or mercury in violation of
section 412(c), 422, 432, 452, and 472, as the case may be,
shall be deemed a violation, with each ton or, in the case of
mercury, each ounce emitted in excess of allowances held
constituting a separate violation.

``SEC. 407. ELECTION FOR ADDITIONAL UNITS.

``(a) Applicability.--
``(1) In general.--The owner or operator of any unit that
is not an affected EGU under subpart 2 of part B and subpart
2 of part C and whose emissions of sulfur dioxide and
nitrogen oxides are vented only through a stack or duct may
elect to designate the unit as an affected unit under subpart
2 of part B and subpart 2 of part C.
``(2) Effect of designation.--If the owner or operator
elects to designate a unit that is solid fuel-fired and emits
mercury vented only through a stack or duct, the owner or
operator shall also designate the unit as an affected unit
under part D. If an elected unit fires only gaseous fuels,
the unit may be designated under subpart 2 of part C only.
``(b) Application.--An owner or operator making an election
under subsection (a) shall submit an application for the
election to the Administrator for approval.
``(c) Approval.--Subject to subsections (d) through (m), if
the Administrator determines that an application for an
election under subsection (b) meets the requirements of
subsection (a), the Administrator shall approve the
designation as an affected unit under subpart 2 of part B and
subpart 2 of part C and, if applicable, under part D.
``(d) Establishment of Baseline.--
``(1) In general.--After approval of a designation under
subsection (c), an owner or operator shall install and
operate monitoring on the designated unit required under
paragraph (5), except that, in a case in which 2 or more
units use a single stack, separate monitoring shall be
required for each unit unless all units using the same stack
are designated as affected units.
``(2) Baselines.--
``(A) In general.--Units shall have baselines established
using heat input unless the unit qualifies for a product
output baseline under paragraph (4).
``(B) Heat input or product output.--The baselines for heat
input or product output and sulfur dioxide and nitrogen
oxides emission rates, as the case may be, for the unit shall
be the unit's heat input or product output and the emission
rates of sulfur dioxide and nitrogen oxides in accordance
with paragraphs (3) and (4).
``(C) Regulations.--The Administrator shall promulgate
regulations requiring the unit's baselines for heat input or
product output and for sulfur dioxide and nitrogen oxides
emission rates to be based on the same year and specifying
minimum data requirements consistent with paragraph (5) for
baseline determination.
``(3) Heat input and emissions baselines.--For the purposes
of this subsection, heat input and emissions baselines shall
be calculated, at the election of the owner or operator of
the relevant unit, as--
``(A)(i) for heat input, the average of the unit's highest
heat input for 3 of the 5 years before the year for which the
Administrator is determining the allocations; and
``(ii) for emissions baselines, the average of the relevant
emissions during those same 3 years; or
``(B)(i) for heat input, the average of any period of 24
consecutive months during the 10-year period immediately
prior to the date of submission of an application under
subsection (b), on the condition that the heat input does not
exceed 1.2 times the average of the 10-year period; and
``(ii) for emissions baselines, the average of the relevant
emissions for the 4-year period prior to the date of
enactment of the Clear Skies Act of 2005 (for units that
submit an application on or before January 1, 2009), or the
average of the relevant emissions for the 4 years before the
date of submission of the application under that Act (for
units that submit an application after January 1, 2009).
``(4) Designation for product output basis.--
``(A) In general.--The owner or operator of a unit that is
subject to new source performance standards or other measures
imposed by this Act on a product output basis rather than a
heat input basis may elect to designate the unit as an
affected unit under subpart 2 of part B and subpart 2 of part
C.
``(B) Baseline product output and emissions baselines.--For
the purposes of this paragraph, for those units using a
product output basis, the baseline product output and
emissions baselines in this subparagraph shall be calculated,
at the election of the owner or operator of the relevant
unit, as--
``(i)(I) for product input, the average of the unit's
highest product output for 3 of the 5 years preceding the
year for which the Administrator is determining the
allocations; and
``(II) for emissions baselines, the average of the relevant
emissions for the same years used to determine product
output; or
``(B)(i) for product input, the average of any period of 24
consecutive months during the 10-year period immediately
prior to the date of submission of an application under
subsection (b), on the condition that the product input does
not exceed 1.2 times the average of the 10-year period; and
``(ii) for emissions baselines, the average of the relevant
emissions for the 4-year period prior to the date of
enactment of the Clear Skies Act of 2005 (for units that
submit an application on or before January 1, 2009), or the
average of the relevant emissions for the 4 years before the
date of submission of the application under that Act (for
units that submit an application after January 1, 2009).
``(5) Baseline determinations.--
``(A) In general.--In making baseline determinations under
this section, the Administrator may accept any reliable data
on emissions of sulfur dioxide and nitrogen oxides in
addition to, and other than, data collected from CEMS.
``(B) Types of data.--Reliable data described in
subparagraph (A) includes--
``(i) alternative data that has been used to determine
compliance with a regulatory or monitoring requirement under
this Act or a comparable State law, if the data establishes a
reliable measure of heat input or product output and sulfur
dioxide and nitrogen oxides emissions over a simultaneous
period of time; or
``(ii) if that data is not available, such other
alternative reliable data as the Administrator may prescribe.
``(C) Use of cems for compliance monitoring.--The
Administrator--
``(i) shall not require the use of CEMS for compliance
monitoring by units of less than 250 mmBtu heat input or
equivalent product output capacity subject to this section
unless the Administrator concludes that a CEMS requirement is
necessary to generate reliable data for compliance
determinations;
``(ii) shall require the use of CEMS for compliance
monitoring by units of between 250 mmBtu and 750 mmBtu heat
input or equivalent product output capacity unless the
Administrator determines that a CEMS requirement is not
necessary to generate reliable data for compliance
determinations; and
``(iii) shall require the use of CEMS for compliance
monitoring for all units greater than 750 mmBtu heat input or
equivalent product output capacity.
``(D) Reliability.--In determining the reliability of data
for purposes of this subsection, the Administrator shall
consider the cost of generating more reliable data compared
to the quantitative importance of the resulting gain in
quantifying emissions.
``(e) Emission Limitations.--After approval of the
designation of the unit under subsection (c), the unit shall
become--
``(1) an affected unit under subpart 2 of part B, and shall
be allocated sulfur dioxide allowances under subsection (f),
beginning on the later of January 1, 2010, or January 1 of
the year after approval of the designation;
``(2) an affected unit under subpart 2 of part C, and shall
be allocated nitrogen oxides allowances under subsection (f),
beginning on the later of January 1, 2010, or January 1 of
the year after approval of the designation; and
``(3) if applicable, an affected unit under part D, and
shall be allocated mercury allowances, beginning on the later
of January l, 2010, or January 1 of the year after approval
of designation.
``(f) Allocations.--
``(1) Sulfur dioxide and nitrogen oxides.--
``(A) In general.--The Administrator shall promulgate
regulations determining the allocations of sulfur dioxide
allowances and nitrogen oxides allowances for each year
during which a unit is an affected unit under subsection (e).
``(B) Allocations.--The regulations shall provide for
allocations equal to 70 percent (beginning January 1, 2010)
and 50 percent (beginning January 1, 2018) of the unit's
baseline heat input or product output under subsection (d)
multiplied by the lesser of--
``(i) the unit's baseline sulfur dioxide emission rate or
nitrogen oxides emission rate, as the case may be; or
``(ii) the unit's most stringent Federal or State emission
limitation for sulfur dioxide or nitrogen oxides applicable
to the year on which the unit's baseline heat input or
product output is based under subsection (d).
``(2) Mercury.--
``(A) In general.--The Administrator shall promulgate
regulations providing for the allocation of mercury
allowances to solid fuel-fired units designated under this
section for each year after January 1, 2010, during which

[[Page S325]]

a unit is a designated unit under this section.
``(B) Allocations.--The regulations shall provide for
allocations equal to the lesser of--
``(i) the product obtained by multiplying--

``(I) the unit's allowable emissions rate for mercury under
the national emissions standards for hazardous air pollutants
for boilers and process heaters, industrial furnaces, kilns,
or other stationary source; by
``(II) the unit's baseline heat input or product output;
and

``(i) the product obtained by multiplying--

``(I) the unit's most stringent Federal or State emission
limitation for mercury emissions rate; by
``(II) the unit's baseline heat input or product output.

``(3) Limitation.--Allowances allocated to electing units
under paragraphs (1) and (2) shall comprise a separate
limitation on emissions from sections 423, 433, 453, 473, and
other provisions of this Act. These allowances for sulfur
dioxide, nitrogen oxides, or mercury, as the case may be,
shall be tradable with allowances allocated under sections
414, 424, 454, 474, as applicable, on the conditions that--
``(A) electing units may only trade nitrogen oxides within
the respective zones established under section 452 within
which the electing unit is located; and
``(B) affected units within the WRAP States may only
purchase sulfur dioxide allowances allocated or otherwise
distributed by the Administrator to electing units within the
WRAP States, and will not be counted for purposes of the
affected unit's emissions within the meaning of the WRAP
Annex.
``(4) Incentives for early reductions.--
``(A) In general.--Not later than 180 months after the date
of enactment of this section, the Administrator shall
promulgate regulations authorizing the allocation of sulfur
dioxide, nitrogen oxides, and mercury allowances to units
designated under this section that install or modify
pollution control equipment or combustion technology
improvements identified in such regulations after the date of
enactment of this section and prior to January 1, 2010.
``(B) Prohibition on certain allocations.--No allowances
shall be allocated under this paragraph for emissions
reductions attributable to--
``(i) pollution control equipment or combustion technology
improvements that were operational or under construction at
any time prior to the date of enactment of this section;
``(ii) fuel switching; or
``(iii) compliance with any Federal regulation.
``(C) Allowances.--The allowances allocated to any unit
under this paragraph shall--
``(i) be in addition to the allowances allocated under
paragraphs (1) and (2) and sections 414, 424, 434, 454, and
474; and
``(ii) be allocated in an amount equal to 1 allowance of
sulfur dioxide and nitrogen oxides for each 1.05 tons of
reduction in emissions of sulfur dioxide and nitrogen oxides,
respectively, and 1.05 ounces of reduction in the emissions
of mercury, achieved by the pollution control equipment or
combustion technology improvements starting with the year in
which the equipment or improvement is implemented.
``(g) Withdrawal.--The Administrator shall promulgate
regulations withdrawing from the approved designation under
subsection (c) any unit that qualifies as an affected EGU
under subpart 2 of part B or subpart 2 of part C, or part D
after the approval of the designation of the unit under
subsection (c).
``(h) Regulations.--Not later than 18 months after the date
of enactment of the Clear Skies Act of 2005, the
Administrator shall promulgate regulations implementing this
section.
``(i) Application Period.--
``(1) In general.--Applications for designation of units
under this section shall be accepted by the Administrator
beginning not later than 180 days after the date of enactment
of this section.
``(2) Approval and disapproval.--Except as provided in
paragraph (30, not later than 270 days after accepting an
application under paragraph (1), the Administrator shall
approve or disapprove the application.
``(3) Determination of completion.--
``(A) In general.--Not later than 90 days after accepting
an application under paragraph (1), the Administrator shall
determine whether the application is complete.
``(B) Determination of completion.--Unless an application
accepted under paragraph (1) is determined to be incomplete
under subparagraph (A), the application shall be subject to
paragraph (2).
``(4) Stay of deadlines.--During the period beginning on
the date of acceptance by the Administrator of an application
under paragraph (1) and ending on the date on which the
Administrator acts on the petition, the applicable compliance
deadlines for NESHAPs under subsection (j) shall not apply to
the applicable unit that is the subject of the application.
``(j) NESHAP Applicability.--
``(1) Applicability.--
``(A) In general.--Except as provided in subparagraph (B),
a unit that is designated as an affected unit under this
section shall not be subject to the national emissions
standards for hazardous air pollutants (NESHAP) promulgated
under section 112(d) for--
``(i) Industrial, Commercial, and Institutional Boilers and
Process Heaters (Fed. Reg. 69-55217);
``(ii) Plywood and Composite Wood Panel (Fed. Reg. 69-
45943);
``(iii) Reciprocating Internal Combustion Engines (Fed.
Reg. 69-33473); or
``(iv) Stationary Combustion Turbines (Fed. Reg. 69-10511).
``(B) Exception.--Units that are boilers or process
heaters, industrial furnaces, kilns, or other stationary
sources shall be subject on and after January 1, 2010, to the
emissions limitation for mercury or the equivalent mercury
allocation under subsection (f)(2), along with associated
monitoring and compliance requirements, that would be
applicable to such units under the NESHAP for those sources
promulgated pursuant to section 112(d).
``(2) Reports.--
``(A) Preliminary report.--Not later than 18 months after
the date of enactment of this section, the Administrator
shall publish and make available for public comment a peer
reviewed preliminary report characterizing the emissions and
public health effects that may reasonably be anticipated to
occur from the implementation of subsection (j)(1) and
subsection (f).
``(B) Final report.--Not later than 30 months after the
date on which the preliminary report is published under
subparagraph (A), in accordance with section 112(n)(1)(A),
the Administrator shall publish a final report, including
responses to the comments received.
``(C) Requirements.--The requirements of section
112(n)(1)(A), for purposes of this paragraph, shall be
considered to be modified to ensure that the final report
under subparagraph (B) includes--
``(i) an estimate of the numbers and types of sources that
are expected to be designated under this section;
``(ii) an estimate of any increase or decrease in the
annual emissions of criteria pollutants and of those
hazardous air pollutants subject to emission limitations
under the NESHAPs identified in subsection (j)(1) from such
sources that may reasonably be expected to occur for each
year from 2010 through 2018;
``(iii) an estimate of any increase or decrease in the
annual emissions of criteria pollutants and of those
hazardous air pollutants subject to emission limitations
under the NESHAPs identified in subsection (j)(1) from such
sources that might reasonably be expected to occur for each
year from 2010 through 2018, if such sources estimated in
clause (i) are not designated under this section; and
``(iv) a description of the public health and environmental
impacts associated with the emissions increases and decreases
described in clauses (ii) and (iii).
``(D) Additional authority.--
``(i) In general.--Notwithstanding subsection (j)(1), the
Administrator may regulate emissions of hazardous air
pollutants listed under section 112(b), other than mercury
compounds, from sources designated under this section in
accordance with section 112(f)(2).
``(ii) Determination.--Not later than 2 years after the
date on which the final report under subparagraph (B) is
published, the Administrator shall make a determination based
on the study and other information satisfying the criteria of
the Data Quality Act whether to establish emissions
limitations under section 112(f) for sources designated under
this section.
``(iii) Treatment of determination.--The determination
shall be a final agency action subject to judicial review
under section 307 and the Administrative Procedures Act.
``(k) Exemption From Major Source Preconstruction Review
Requirements and Best Available Retrofit Control Technology
Requirements.--
``(1) Major source exemption.--
``(A) In general.--Subject to subparagraph (B), a unit
designated as an affected unit under this section shall not
be considered to be a major source, or a part of a major
emitting facility or major stationary source for purposes of
compliance with the requirements of parts C and D of title I,
for the 20-year period beginning on the date of enactment of
the Clear Skies Act of 2005.
``(B) Applicability.--Subparagraph (A) applies only if,
beginning on the date that is 8 years after the date of
enactment of this section or designation of a unit as an
affected unit--
``(i)(I) the designated unit either achieves in fact, or is
subject to a regulatory requirement to achieve, a limit on
the emissions of particulate matter from the affected unit to
the level not greater than the level applicable to the unit
either pursuant to subpart D of part 60 of title 40, Code of
Federal Regulations, or the national emissions standards for
hazardous air pollutants for industrial boilers and process
heaters issued pursuant to section 112; or
``(II) the owner or operator of the affected unit properly
operates, maintains, and repairs pollution control equipment
to limit emissions of particulate matter; and
``(ii) the owner or operator of the designated unit uses
good combustion practices to minimize emissions of carbon
monoxide.
``(2) Class i area protections.--Notwithstanding the
exemption in paragraph (1), an affected unit located within
50 kilometers of a Class I area on which construction
commences after the date of enactment of this

[[Page S326]]

section is subject to those provisions under part C of title
I to the review of a new or modified major stationary
source's impact on a Class I area.
``(l) Limitation.--
``(1) In general.--No unit designated under this section
shall transfer or bank allowances produced as a result of
reduced utilization or shutdown, except that such allowances
may be transferred or carried forward for use in subsequent
years to the extent that--
``(A) reduced utilization or shutdown results from the
replacement of the unit designated under this section, with
any other unit or units subject to the requirements of this
subpart; and
``(B) the designated unit's allowances are transferred or
carried forward for use at such other replacement unit or
units.
``(2) No greater allocation.--In no case may the
Administrator allocate to a source designated under this
section allowances in an amount greater than the emissions
resulting from operation of the source in full compliance
with the requirements of this Act.
``(3) No violation.--No allowances allocated under this Act
shall authorize operation of a unit in violation of any other
requirements of this Act.
``(m) Definition of Product Output.--In this section, the
term `product output' means the output of a stationary source
that produces a commercial product other than electricity,
heat, or steam which may be used to determine a baseline for
units for which heat input is not an appropriate baseline.''.

``SEC. 408. CLEAN COAL TECHNOLOGY REGULATORY INCENTIVES.

``(a) Definition.--For purposes of this section, the term
`clean coal technology' means any technology, including
technologies applied at the precombustion, combustion, or
post combustion stage, at a new or existing facility which
will achieve significant reductions in air emissions of
sulfur dioxide or oxides of nitrogen associated with the
utilization of coal in the generation of electricity, process
steam, or industrial products, which is not in widespread use
as of November 15, 1990.
``(b) Revised Regulations for Clean Coal Technology
Demonstrations.--
``(1) Applicability.--This subsection applies to physical
or operational changes to existing facilities for the sole
purpose of installation, operation, cessation, or removal of
a temporary or permanent clean coal technology demonstration
project. For the purposes of this section, a clean coal
technology demonstration project shall mean a project using
funds appropriated under the heading `Department of Energy--
Clean Coal Technology', up to a total amount of
$2,500,000,000 for commercial demonstration of clean coal
technology, or similar projects funded through appropriations
for the Environmental Protection Agency. The Federal
contribution for qualifying project shall be at least twenty
percent of the total cost of the demonstration project.
``(2) Temporary projects.--Installation, operation,
cessation, or removal of a temporary clean coal technology
demonstration project that is operated for a period of 5
years or less, and which complies with the State
implementation plans for the State in which the project is
located and other requirements necessary to attain and
maintain the national ambient air quality standards during
and after the project is terminated, shall not subject such
facility to the requirements of section 111 or part C or D of
title I.
``(3) Permanent projects.--For permanent clean coal
technology demonstration projects that constitute repowering
as defined in section 411, any qualifying project shall not
be subject to standards of performance under section 111 or
to the review and permitting requirements of part C for any
pollutant the potential emissions of which will not increase
as a result of the demonstration project.
``(4) EPA regulations.--Not later than twelve months after
November 15, 1990, the Administrator shall promulgate
regulations or interpretive rulings to revise requirements
under section 111 and parts C and D, as appropriate, to
facilitate projects consistent in this subsection. With
respect to parts C and D, such regulations or rulings shall
apply to all areas in which EPA is the permitting authority.
In those instances in which the State is the permitting
authority under part C or D, any State may adopt and submit
to the Administrator for approval revisions to its
implementation plan to apply the regulations or rulings
promulgated under this subsection.
``(c) Exemption for Reactivation of Very Clean Units.--
Physical changes or changes in the method of operation
associated with the commencement of commercial operations by
a coal-fired utility unit after a period of discontinued
operation shall not subject the unit to the requirements of
section 111 or part C of the Act where the unit--
``(1) has not been in operation for the two-year period
prior to November 15, 1990, and the emissions from such unit
continue to be carried in the permitting authority's
emissions inventory on November 15, 1990;
``(2) was equipped prior to shut-down with a continuous
system of emissions control that achieves a removal
efficiency for sulfur dioxide of no less than 85 percent and
a removal efficiency for particulates of no less than 98
percent;
``(3) is equipped with low-NOX burners prior to
the time of commencement; and
``(4) is otherwise in compliance with the requirements of
this Act.

``SEC. 409. ELECTRICITY RELIABILITY.

``(a) Reliability.--
``(1) Applicability.--At any time prior the applicability
of this Act under sections 422, 432, 452, and 472, in order
to ensure the reliability of an electric utility company or
system, including a system cooperatively or municipally
owned, for a specified geographic area or service territory,
as determined by the Department of Energy in consultation
with the Administrator, during the installation of sulfur
dioxide pollution control technology or scrubbers, nitrogen
oxides, mercury or particulate matter control technology, or
any combination thereof, the owner or operator of an affected
unit may meet the requirements of sections 422, 432, 452, and
472 by means of the compliance procedures of this subsection
(a).
``(2) Petition.--The owner or operator of an affected unit
that believes it may experience an adverse impact on the
reliability of the company or system as a result, in
substantial part, of the need to construct sulfur dioxide
pollution control equipment or scrubbers, nitrogen oxides,
mercury or particulate matter control technology, or any
combination thereof, may petition the Secretary of Energy, in
consultation with the Administrator, for a determination
that, to a reasonable degree of certainty, reliability will
likely be threatened. Upon such a determination, the owner or
operator may elect to adopt a compliance method meeting the
requirements of this subsection, as follows:
``(A) Regulations.--Within 12 months of enactment the
Secretary of Energy shall promulgate regulations describing
the requirements for a petition and the petition process,
which will include notice and public comment. The Secretary
of Energy, in consultation with the Administrator, shall make
a final determination on a petition within 180 days of the
submittal of a reasonably complete petition. Failure to act
within the 180-day period will extend the applicability by 12
months for all units subject to the petition.
``(B) Contents of petition.--The petition must contain--
``(i) a description of each affected unit, the estimated
outage time and a construction schedule;
``(ii) an estimate of demand from date of applicability
until 2018;
``(iii) the impacts on reliability associated with
constructing all of the pollution control projects, including
those for sulfur dioxide, nitrogen oxides, mercury, or
particulate matter, by the respective deadlines; and
``(iv) how the proposed compliance schedule would alleviate
detrimental impacts.
``(C) Failure to promulgate regulations.--If the Secretary
of Energy fails to promulgate final regulations or such
regulations are not effective for any reason, within the
prescribed time, petitions containing reasonably sufficient
information for a final determination may be submitted to the
Secretary of Energy and will be deemed complete.
``(3) Final determination.--In making a final determination
the Secretary of Energy, in consultation with the
Administrator, shall consider the following factors, provided
that not all factors need be present to make a determination
that, to a reasonable degree, reliability will be threatened:
``(A) Supply.--The ability of vendors to supply scrubbers;
scrubber system equipment, materials and scrubber affected
balance of plant equipment including fans, pumps, electric
motors, motor drives, dampers, electrical power supply
equipment; at fair prices with meaningful guarantees or
warranties as to availability, delivery dates and meeting
contracted pollution control reduction requirements or
emissions limitations; with similar considerations for
nitrogen oxides, mercury or particulate matter control
technology, or any combination thereof.
``(B) Design and construction resources.--The availability
and limitations of key sulfur dioxide, nitrogen oxides or
mercury controls design resources and North American
construction resources. The design resources shall include
Architect Engineering companies experienced in the design of
sulfur dioxide, nitrogen oxides, mercury or particulate
matter control technology. The construction resources shall
include construction companies with experience in the
construction of sulfur dioxide, nitrogen oxides, mercury, or
particulate matter control technology and trained and
experienced labor resources including but not limited to
boilermakers, iron workers, electricians, mechanics;
``(C) Feasibility of construction.--The feasibility to
complete the construction of all pollution control technology
projects by the relevant applicability compliance deadline;
``(D) Impact.--The impact in terms of unit outages and
construction schedules on a company or systems reliability
and whether such impact is unreasonable, which term shall be
presumed to be--
``(i) an increase in the price of purchase power of (10)
percent over the estimated cost in cents per kilowatt for the
company, system or State, utilized in the latest submissions
to a relevant State or Federal agency;
``(ii) a projected reduction in available generating
capacity such that adequate reserve margins for a company,
system or State do not exist, as determined by the Secretary
of Energy in coordination with the relevant

[[Page S327]]

Federal or State utility agency or reliability council; or
``(iii) a supply shortage of coal needed to meet emissions
control expectations for any proposed emissions control
device.
``(E) Positive determination.--A company or system which
submits a petition to install sulfur dioxide, nitrogen
oxides, mercury, or particulate matter control technology, or
any combination thereof, on affected units equaling 25
percent or more of its coal-fired capacity shall be presumed
to meet the requirements of a positive determination from the
Secretary of Energy.
``(4) Compliance.--Upon a positive determination by the
Secretary of Energy in accordance with paragraph (3)(E), such
affected units will be granted a 1-year extension from the
relevant applicability date under this title.
``(b) Submission of Petition.--During any year covered by
this title, an affected unit may submit a petition in
accordance with paragraph (a)(2) to allow use of sulfur
dioxide allowances, nitrogen oxides allowances, and mercury
allowances, as the case may be, allocated for the immediate
next year to meet the applicable requirement to hold such
allowances equal to the petitioned year's emissions.
``(c) Presidential Waiver.--Notwithstanding subsection (a)
or any other provision of this Act, The President of the
United States shall have authority to temporarily grant
waivers from emission limitations under sections 412, 422,
432, 452, and 472, as the case may be, if the President
determines that the reliability of any portion of national
electricity supply or national security is imperiled.

``PART B--SULFUR DIOXIDE EMISSION REDUCTIONS

``Subpart 1--Acid Rain Program

``SEC. 411. DEFINITIONS.

``For purposes of this subpart and subpart 1 of part B:
``(1) Actual 1985 emission rate.--The term `actual 1985
emission rate', for electric utility units means the annual
sulfur dioxide or nitrogen oxides emission rate in pounds per
million Btu as reported in the 1985 National Acid
Precipitation Assessment Program (NAPAP) Emissions Inventory,
Version 2, National Utility Reference File (NURF). For
nonutility units, the term `actual 1985 emission rate' means
the annual sulfur dioxide or nitrogen oxides emission rate in
pounds per million Btu as reported in the NAPAP Emission
Inventory, Version 2.
``(2) Allowable 1985 emissions rate.--The term `allowable
1985 emissions rate' means a federally enforceable emissions
limitation for sulfur dioxide or oxides of nitrogen,
applicable to the unit in 1985 or the limitation applicable
in such other subsequent year as determined by the
Administrator if such a limitation for 1985 does not exist.
Where the emissions limitation for a unit is not expressed in
pounds of emissions per million Btu, or the averaging period
of that emissions limitation is not expressed on an annual
basis, the Administrator shall calculate the annual
equivalent of that emissions limitation.
``(3) Alternative method of compliance.--The term
`alternative method of compliance' means a method of
compliance in accordance with one or more of the following
authorities--
``(A) a substitution plan submitted and approved in
accordance with subsections 413(b) and (c); or
``(B) a phase I extension plan approved by the
Administrator under section 413(d), using qualifying phase I
technology as determined by the Administrator in accordance
with that section.
``(4) Baseline.--The term `baseline' means the annual
quantity of fossil fuel consumed by an affected unit,
measured in millions of British Thermal Units (`mmBtu's'),
calculated as follows:
``(A) For each utility unit that was in commercial
operation prior to January 1, 1985, the baseline shall be the
annual average quantity of mmBtu's consumed in fuel during
calendar years 1985, 1986, and 1987, as recorded by the
Department of Energy pursuant to Form 767. For any utility
unit for which such form was not filed, the baseline shall be
the level specified for such unit in the 1985 (NAPAP)
Emissions Inventory, Version 2 (NURF), or in a corrected data
base as established by the Administrator pursuant to
paragraph (3). For nonutility units, the baseline in the
NAPAP Emissions Inventory, Version 2. The Administrator, in
the Administrator's sole discretion, may exclude periods
during which a unit is shutdown for a continuous period of 4
calendar months or longer, and make appropriate adjustments
under this paragraph. Upon petition of the owner or operator
of any unit, the Administrator may make appropriate baseline
adjustments for accidents, strikes, disruptions of fuel
supplies, failure of equipment, other causes beyond the
reasonable control of the owner or operator of the unit that
caused prolonged outages.
``(B) For any other nonutility unit that is not included in
the NAPAP Emissions Inventory, Version 2, or a corrected data
base as established by the Administrator pursuant to
paragraph (3), the baseline shall be the annual average
quantity, in mmBtu consumed in fuel by that unit, as
calculated pursuant to a method which the Administrator shall
prescribe by regulation to be promulgated not later than 18
months after November 15, 1990.
``(C) The Administrator shall, upon application or on his
own motion, by December 31, 1991, supplement data needed in
support of this subpart and correct any factual errors in
data from which affected phase II units' baselines or actual
1985 emission rates have been calculated. Corrected data
shall be used for purposes of issuing allowances under this
subpart. Such corrections shall not be subject to judicial
review, nor shall the failure of the Administrator to correct
an alleged factual error in such reports be subject to
judicial review.
``(5) Basic phase II allowance allocations.--The term
`basic phase II allowance allocations' means:
``(A) For calendar years 2000 through 2009 inclusive,
allocations of allowances made by the Administrator pursuant
to section 412 and subsections (b)(1), (3), and (4); (c)(1),
(2), (3), and (5); (d)(1), (2), (4), and (5); (e); (f);
(g)(1), (2), (3), (4), and (5); (h)(1); (i); and (j) of
section 414.
``(B) For each calendar year beginning in 2010, allocations
of allowances made by the Administrator pursuant to section
412 and subsections (b)(1), (3), and (4); (c)(1), (2), (3),
and (5); (d)(1), (2), (4), and (5); (e); (f); (g)(1), (2),
(3), (4), and (5); (h)(1) and (3); (i); and (j) of section
414.
``(6) Capacity factor.--The term `capacity factor' means
the ratio between the actual electric output from a unit and
the potential electric output from that unit.
``(7) Commenced.--The term `commenced' as applied to
construction of any new electric utility unit means that an
owner or operator has undertaken a continuous program of
construction or that an owner or operator has entered into a
contractual obligation to undertake and complete, within a
reasonable time, a continuous program of construction.
``(8) Commenced commercial operation.--The term `commenced
commercial operation' with regard to a unit means the start
up of the unit's combustion chamber and commencement of the
generation of electricity for sale.
``(9) Construction.--The term `construction' means
fabrication, erection, or installation of an affected unit.
``(10) Existing unit.--The term `existing unit' means a
unit (including units subject to section 111) that commenced
commercial operation before November 15, 1990. Any unit that
commenced commercial operation before November 15, 1990,
which is modified, reconstructed, or repowered after November
15, 1990, shall continue to be an existing unit for the
purposes of this subpart. For the purposes of this subpart,
existing units shall not include simple combustion turbines,
or units which serve a generator with a nameplate capacity of
25 MWe or less.
``(11) Independent power producer.--The term `independent
power producer' means any person who owns or operates, in
whole or in part, one or more new independent power
production facilities.
``(12) New independent power production facility.--The term
`new independent power production facility' means a facility
that--
``(A) is used for the generation of electric energy, 80
percent or more of which is sold at wholesale;
``(B) in nonrecourse project-financed (as such term is
defined by the Secretary of Energy within 3 months of the
date of the enactment of the Clean Air Act Amendments of
1990); and
``(C) is a new unit required to hold allowances under this
subpart.
``(13) Industrial source.--The term `industrial source'
means a unit that does not serve a generator that produces
electricity, a `nonutility unit' as defined in this section,
or a process source.
``(14) Life-of-the-unit, firm power contractual
arrangement.--The term `life-of-the-unit, firm power
contractual arrangement' means a unit participation power
sales agreement under which a utility or industrial customer
reserves, or is entitled to receive, a specified amount or
percentage of capacity and associated energy generated by a
specified generating unit (or units) and pays its
proportional amount of such unit's total costs, pursuant to a
contract either--
``(A) for the life of the unit;
``(B) for a cumulative term of no less than 30 years,
including contracts that permit an election for early
termination; or
``(C) for a period equal to or greater than 25 years or 70
percent of the economic useful life of the unit determined as
of the time the unit was built, with option rights to
purchase or release some portion of the capacity and
associated energy generated by the unit (or units) at the end
of the period.
``(15) New unit.--The term `new unit' means a unit that
commences commercial operation on or after November 15, 1990.
``(16) Nonutility unit.--The term `nonutility unit' means a
unit other than a utility unit.
``(17) Phase II bonus allowance allocations.--The term
`phase II bonus allowance allocations' means, for calendar
year 2000 through 2009, inclusive, and only for such years,
allocations made by the Administrator pursuant to section
412, subsections (a)(2), (b)(2), (c)(4), (d)(3) (except as
otherwise provided therein), and (h)(2) of section 414, and
section 415.
``(18) Qualifying phase I technology.--The term `qualifying
phase I technology' means a technological system of
continuous emission reduction which achieves a 90 percent
reduction in emissions of sulfur dioxide from the emissions
that would have resulted from the use of fuels which were not
subject to treatment prior to combustion.

[[Page S328]]

``(19) Repowering.--The term `repowering' means replacement
of an existing coal-fired boiler with one of the following
clean coal technologies: atmospheric or pressurized fluidized
bed combustion, integrated gasification combined cycle,
magneto-hydrodynamics, direct and indirect coal-fired
turbines, integrated gasification fuel cells, or as
determined by the Administrator, in consultation with the
Secretary of Energy, a derivative of one or more of these
technologies, and any other technology capable of controlling
multiple combustion emissions simultaneously with improved
boiler or generation efficiency and with significantly
greater waste reduction relative to the performance of
technology in widespread commercial use as of November 15,
1990.
``(20) Reserve.--The term `reserve' means any bank of
allowances established by the Administrator under this
subpart.
``(21) Utility unit.--
``(A) In general.--The term `utility unit' means--
``(i) a unit that serves a generator located in any State
and that produces electricity for sale; or
``(ii) a unit that, during 1985, served a generator located
in any State and that produced electricity for sale.
``(B) Exclusions.--
``(i) In general.--Notwithstanding subparagraph (A), a unit
described in subparagraph (A) that--

``(I) was in commercial operation during 1985; but
``(II) did not during 1985, serve a generator in any State
that produced electricity for sale

shall not be a utility unit for purposes of this subpart.
``(i) Units that cogenerate steam and electricity.--A unit
that cogenerates steam and electricity is not a `utility
unit' for purposes of this subpart unless the unit is
constructed for the purpose of supplying, or commences
construction after November 15, 1990 and supplies more than
one-third of its potential electric output capacity of more
than 25 megawatts electrical output to any utility power
distribution system for sale.

``SEC. 412. ALLOWANCE ALLOCATION.

``(a) In General.--Except as provided in sections
414(a)(2), 415(a)(3), and 416, beginning January 1, 2000, the
Administrator shall not allocate annual emission allowances
for sulfur dioxide from utility units in excess of 8.90
million tons except that the Administrator shall not take
into account unused allowances carried forward by owners and
operators of affected units or by other persons holding such
allowances, following the year for which they were allocated.
If necessary to meeting the restrictions imposed in the
preceding sentence, the Administrator shall reduce, pro rata,
the basic phase II allowance allocations for each unit
subject to the requirements of section 414. Subject to the
provisions of section 417, the Administrator shall allocate
allowances for each affected until at an affected source
annually, as provided in paragraphs (2) and (3) and section
404. Except as provided in sections 416, the removal of an
existing affected unit or source from commercial operation at
any time after November 15, 1990 (whether before or after
January 1, 1995, or January 1, 2000), shall not terminate or
otherwise affect the allocation of allowances pursuant to
section 413 or 414 to which the unit is entitled. Prior to
June 1, 1998, the Administrator shall publish a revised final
statement of allowance allocations, subject to the provisions
of section 414(a)(2).
``(b) New Utility Units.--
``(1) Prohibition of exceeding unit allowances.--After
January 1, 2000 and through December 31, 2007, it shall be
unlawful for a new utility unit to emit an annual tonnage of
sulfur dioxide in excess of the number of allowances to emit
held for the unit by the unit's owner or operator.
``(2) Prohibition of exceeding source allowances.--Starting
January 1, 2008, a new utility unit shall be subject to the
prohibition in subsection (c)(3).
``(3) Eligibility for allocation of sulfur dioxide
allowances.--New utility units shall not be eligible for an
allocation of sulfur dioxide allowances under subsection
(a)(1), unless the unit is subject to the provisions of
subsection (g)(2) or (3) of section 414. New utility units
may obtain allowances from any person, in accordance with
this title. The owner or operator of any new utility unit in
violation of subsection (b)(1) or subsection(c)(3) shall be
liable for fulfilling the obligations specified in section
406.
``(c) Prohibitions.--
``(1) In general.--It shall be unlawful for any person to
hold, use, or transfer any allowance allocated under this
subpart, except in accordance with regulations promulgated by
the Administrator.
``(2) Prohibition of exceeding unit allowances.--For any
year 1995 through 2007, it shall be unlawful for any affected
unit to emit sulfur dioxide in excess of the number of
allowances held for that unit for that year by the owner or
operator of the unit.
``(3) Prohibition of exceeding source allowances.--Starting
January 1, 2008, it shall be unlawful for the affected units
at a source to emit a total amount of sulfur dioxide during
the year in excess of the number of allowances held for the
source for that year by the owner or operator of the source.
``(4) Effect on other emission limitations.--Upon the
allocation of allowances under this subpart, the prohibition
in paragraphs (2) and (3) shall supersede any other emission
limitation applicable under this subpart to the units for
which such allowances are allocated.
``(d) Limitation on Regulations.--In order to ensure
electricity reliability, regulations establishing a system
for issuing, recording, and tracking allowances under section
403(b) and this subpart shall not prohibit or affect
temporary increases and decreases in emissions within utility
systems, power pools, or utilities entering into allowance
pool agreements, that result from their operations, including
emergencies and central dispatch, and such temporary
emissions increases and decreases shall not require transfer
of allowances among units nor shall it require recording. The
owners or operators of such units shall act through a
designated representative. Notwithstanding the preceding
sentence, the total tonnage of emissions in any calendar year
(calculated at the end thereof) from all units in such a
utility system, power pool, or allowance pool agreements
shall not exceed the total allowances for such units for the
calendar year concerned, including for calendar years after
2007, allowances held for such units by the owner or operator
of the sources where the units are located.
``(e) Interest in Affected Units.--Where there are multiple
holders of a legal or equitable title to, or a leasehold
interest in, an affected unit, or where a utility or
industrial customer purchases power from an affected unit (or
units) under life-of-the-unit, firm power contractual
arrangements, the certificate of representation required
under section 404(f) shall state--
``(1) that allowances under this subpart and the proceeds
of transactions involving such allowances will be deemed to
be held or distributed in proportion to each holder's legal,
equitable, leasehold, or contractual reservation or
entitlement; or
``(2) if such multiple holders have expressly provided for
a different distribution of allowances by contract, that
allowances under this subpart and the proceeds of
transactions involving such allowances will be deemed to be
held or distributed in accordance with the contract.

A passive lessor, or a person who has an equitable interest
through such lessor, whose rental payments are not based,
either directly or indirectly, upon the revenues or income
from the affected unit shall not be deemed to be a holder of
a legal, equitable, leasehold, or contractual interest for
the purpose of holding or distributing allowances as provided
in this subsection, during either the term of such leasehold
or thereafter, unless expressly provided for in the leasehold
agreement. Except as otherwise provided in this subsection,
where all legal or equitable title to or interest in an
affected unit is held by a single person, the certification
shall state that all allowances under this subpart received
by the unit are deemed to be held for that person.

``SEC. 413. PHASE I SULFUR DIOXIDE REQUIREMENTS.

``(a) Emission Limitations.--
``(1) Allocation.--After January 1, 1995, each source that
includes one or more affected units listed in table A is an
affected source under this section. After January 1, 1995, it
shall be unlawful for any affected unit (other than an
eligible phase I unit under section 413(d)(2)) to emit sulfur
dioxide in excess of the tonnage limitation stated as a total
number of allowances in table A for phase 1; unless--
``(A) the emissions reduction requirements applicable to
such unit have been achieved pursuant to subsection (b) or
(d); or
``(B) the owner or operator of such unit holds allowances
to emit not less than the unit's total annual emissions,
except that, after January 1, 2000, the emissions limitations
established in this section shall be superseded by those
established in section 414. The owner or operator of any unit
in violation of this section be fully liable for such
violation including, but not limited to, liability for
fulfilling the obligations specified in section 406.
``(2) Determination.--Not later than December 31, 1991, the
Administrator shall determine the total tonnage of reductions
in the emissions of sulfur dioxide from all utility units in
calendar year 1995 that will occur as a result of compliance
with the emissions limitation requirements of this section,
and shall establish a reserve of allowances equal in amount
to the number of tons determined thereby not to exceed a
total of 3.50 million tons. In making such a determination,
the Administrator shall compute for each unit subject to the
emissions limitation requirements of this section the
difference between--
``(A) the product of its baseline multiplied by the lesser
of each unit's allowable 1985 emissions rate and its actual
1985 emissions rate, divided by 2,000; and
``(B) the product of each unit's baseline multiplied by
2.50 lbs/mmBtu divided by 2,000, and sum the computations.
The Administrator shall adjust the foregoing calculation to
reflect projected calendar year 1995 utilization of the units
subject to the emissions limitations of this subpart that the
Administrator finds would have occurred in the absence of the
imposition of such requirements. Pursuant to subsection (d),
the Administrator shall allocate allowances from the reserve
established hereunder until the earlier of such time as all
such allowances in the reserve are allocated or December 31,
1999.

[[Page S329]]

``(3) Additional allocations.--In addition to allowances
allocated pursuant to paragraph (1), in each calendar year
beginning in 1995 and ending in 1999, inclusive, the
Administrator shall allocate for each unit on table A that is
located in the States of Illinois, Indiana, or Ohio (other
than units at Kyger Creek, Clifty Creek and Joppa Steam),
allowances in an amount equal to 200,000 multiplied by the
unit's pro rata share of the total number of allowances
allocated for all units on table A in the 3 States (other
than units at Kyger Creek, Clifty Creek, and Joppa Steam)
pursuant to paragraph (1). Such allowances shall be excluded
from the calculation of the reserve under paragraph (2).
``(b) Substitutions.--The owner or operator of an affected
unit under subsection (a) may include in its section 404
permit application and proposed compliance plan a proposal to
reassign, in whole or in part, the affected unit's sulfur
dioxide reduction requirements to any other unit(s) under the
control of such owner or operator. Such proposal shall
specify--
``(1) the designation of the substitute unit or units to
which any part of the reduction obligations of subsection (a)
shall be required, in addition to, or in lieu of, any
original affected units designated under such subsection;
``(2) the original affected unit's baseline, the actual and
allowable 1985 emissions rate for sulfur dioxide, and the
authorized annual allowance allocation stated in table A;
``(3) calculation of the annual average tonnage for
calendar years 1985, 1986, and 1987, emitted by the
substitute unit or units, based on the baseline for each
unit, as defined in section 411(4), multiplied by the lesser
of the unit's actual or allowable 1985 emissions rate;
``(4) the emissions rates and tonnage limitations that
would be applicable to the original and substitute affected
units under the substitution proposal;
``(5) documentation, to the satisfaction of the
Administrator, that the reassigned tonnage limits will, in
total, achieve the same or greater emissions reduction than
would have been achieved by the original affected unit and
the substitute unit or units without such substitution; and
``(6) such other information as the Administrator may
require.
``(c) Administrator's Action on Substitution Proposals.--
``(1) In general.--The Administrator shall take final
action on such substitution proposal in accordance with
section 404(c) if the substitution proposal fulfills the
requirements of this subsection. The Administrator may
approve a substitution proposal in whole or in part and with
such modifications or conditions as may be consistent with
the orderly functioning of the allowance system and which
will ensure the emissions reductions contemplated by this
title. If a proposal does not meet the requirements of
subsection (b), the Administrator shall disapprove it. The
owner or operator of a unit listed in table A shall not
substitute another unit or units without the prior approval
of the Administrator.
``(2) Issuance of permits.--Upon approval of a substitution
proposal, each substitute unit, and each source with such
unit, shall be deemed affected under this title, and the
Administrator shall issue a permit to the original and
substitute affected source and unit in accordance with the
approved substitution plan and section 404. The Administrator
shall allocate allowances for the original and substitute
affected units in accordance with the approved substitution
proposal pursuant to section 412. It shall be unlawful for
any source or unit that is allocated allowances pursuant to
this section to emit sulfur dioxide in excess of the
emissions limitation provided for in the approved
substitution permit and plan unless the owner or operator of
each unit governed by the permit and approved substitution
plan holds allowances to emit not less than the unit's total
annual emissions. The owner or operator of any original or
substitute affected unit operated in violation of this
subsection shall be fully liable for such violation,
including liability for fulfilling the obligations specified
in section 406. If a substitution proposal is disapproved,
the Administrator shall allocate allowances to the original
affected unit or units in accordance with subsection (a).
``(d) Eligible Phase I Extension Units.--
``(1) In general.--The owner or operator of any affected
unit subject to an emissions limitation requirement under
this section may petition the Administrator in its permit
application under section 404 for an extension of 2 years of
the deadline for meeting such requirement, provided that the
owner or operator of any such unit holds allowances to emit
not less than the unit's total annual emissions for each of
the 2 years of the period of extension. To qualify for such
an extension, the affected unit must either employ a
qualifying phase I technology, or transfer its phase I
emissions reduction obligation to a unit employing a
qualifying phase I technology. Such transfer shall be
accomplished in accordance with a compliance plan, submitted
and approved under section 404, that shall govern operations
at all units included in the transfer, and that specifies the
emissions reduction requirements imposed pursuant to this
title.
``(2) Requirements for extension proposals.--Such extension
proposal shall--
``(A) specify the unit or units proposed for designation as
an eligible phase I extension unit;
``(B) provide a copy of an executed contract, which may be
contingent upon the Administrator approving the proposal, for
the design engineering, and construction of the qualifying
phase I technology for the extension unit, or for the unit or
units to which the extension unit's emission reduction
obligation is to be transferred;
``(C) specify the unit's or units' baselines, actual 1985
emissions rates, allowable 1985 emissions rates, and
projected utilizations for calendar years 1995 through 1999;
``(D) require CEMS on both the eligible phase I extension
unit or units and the transfer unit or units beginning no
later than January 1, 1995; and
``(E) specify the emission limitation and number of
allowances expected to be necessary for annual operation
after the qualifying phase I technology has been installed.
``(3) Approval or disapproval.--The Administrator shall
review and take final action on each extension proposal in
order of receipt, consistent with section 404, and for an
approved proposal shall designate the unit or units as an
eligible phase I extension unit. The Administrator may
approve an extension proposal in whole or in part, and with
such modifications or conditions as may be necessary,
consistent with the orderly functioning of the allowance
system, and to ensure the emissions reductions contemplated
by the subpart.
``(4) Determining the availability of allocations.--In
order to determine the number of proposals eligible for
allocations from the reserve under subsection (a)(2) and the
number of the allowances remaining available after each
proposal is acted upon, the Administrator shall reduce the
total number of allowances remaining available in the reserve
by the number of allowances calculated according to
subparagraph (A), (B), and (C) until either no allowances
remain available in the reserve for further allocation or all
approved proposals have been acted upon. If no allowances
remain available in the reserve for further allocation before
all proposals have been acted upon by the Administrator, any
pending proposals shall be disapproved. The Administrator
shall calculate allowances equal to--
``(A) the difference between the lesser of the average
annual emissions in calendar years 1988 and 1989 or the
projected emissions tonnage for calendar year 1995 of each
eligible phase I extension unit, as designated under
paragraph (3), and the product of the unit's baseline
multiplied by an emission rate of 2.50 lbs/mmBtu, divided by
2,000;
``(B) the difference between the lesser of the average
annual emissions in calendar years 1988 and 1989 or the
projected emissions tonnage for calendar year 1996 of each
eligible phase I extension unit, as designated under
paragraph (3), and the product of the unit's baseline
multiplied by an emission rate of 2.50 lbs/mmBtu, divided by
2,000; and
``(C) the amount by which (i) the product of each unit's
baseline multiplied by an emission rate of 1.20 lbs/mmBtu,
divided by 2,000, exceeds (ii) the tonnage level specified
under subparagraph (E) of paragraph (2) of this subsection
multiplied by a factor of 3.
``(5) Allocation of initial allowances.--Each eligible
phase I extension unit shall receive allowances determined
under subsection (a)(1) or (c) of this section. In addition,
for calendar year 1995, the Administrator shall allocate to
each eligible phase I extension unit, from the allowance
reserve created pursuant to subsection (a)(2), allowances
equal to the difference between the lesser of the average
annual emissions in calendar years 1988 and 1989 or its
projected emission tonnage for calendar year 1995 and the
product of the unit's baseline multiplied by an emission rate
of 2.50 lbs/mmBtu, divided by 2,000. In calendar year 1996,
the Administrator shall allocate for each eligible unit, from
the allowance reserve created pursuant to subsection (a)(2),
allowances equal to the difference between the lesser of the
average annual emissions in calendar years 1988 and 1989 or
its projected emissions tonnage for calendar year 1996 and
the product of the unit's baseline multiplied by an emission
rate of 2.50 lbs/mmBtu, divided by 2,000. It shall be
unlawful for any source or unit subject to an approved
extension plan under this subsection to emit sulfur dioxide
in excess of the emissions limitations provided for in the
permit and approved extension plan, unless the owner or
operator of each unit governed by the permit and approved
plan holds allowances to emit not less than the unit's total
annual emissions.
``(6) Allocation of additional allowances.--In addition to
allowances specified in paragraph (4), the Administrator
shall allocate for each eligible phase I extension unit
employing qualifying phase I technology, for calendar years
1997, 1998, and 1999, additional allowances, from any
remaining allowances in the reserve created pursuant to
subsection (a)(2), following the reduction in the reserve
provided for in paragraph (4), not to exceed the amount by
which (A) the product of each eligible unit's baseline times
an emission rate of 1.20 lbs/mmBtu, divided by 2,000 exceeds
(B) the tonnage level specified under subparagraph (E) of
paragraph (2) of this subsection.
``(7) Deduction from annual allowance allocations.--After
January 1, 1997, in addition to any liability under this Act,
including under section 406, if any eligible phase I
extension unit employing qualifying phase I technology or any
transfer unit under this subsection emits sulfur dioxide in
excess of the annual tonnage limitation specified in the
extension plan, as approved in paragraph (2) of this
subsection, the Administrator

[[Page S330]]

shall, in the calendar year following such excess, deduct
allowances equal to the amount of such excess from such
unit's annual allowance allocation.
``(e) Early Reductions.--
``(1) In general.--In the case of a unit that receives
authorization from the Governor of the State in which such
unit is located to make reductions in the emissions of sulfur
dioxide prior to calendar year 1995 and that is part of a
utility system that meets the following requirements--
``(A) the total coal-fired generation within the utility
system as a percentage of total system generation decreased
by more than 20 percent between January 1, 1980, and December
31, 1985; and
``(B) the weighted capacity factor of all coal-fired units
within the utility system averaged over the period from
January 1, 1985, through December 31, 1987, was below 50
percent, the Administrator shall allocate allowances under
this paragraph for the unit pursuant to this subsection. The
Administrator shall allocate allowances for a unit that is an
affected unit pursuant to section 414 (but is not also an
affected unit under this section) and part of a utility
system that includes one or more affected units under section
414 for reductions in the emissions of sulfur dioxide made
during the period 1995-1999 if the unit meets the
requirements of this subsection and the requirements of the
preceding sentence, except that for the purposes of applying
this subsection to any such unit, the prior year concerned as
specified below, shall be any year after January 1, 1995 but
prior to January 1, 2000.
``(2) Limitations.--In the case of an affected unit under
this section described in subparagraph (A), the allowances
allocated under this subsection for early reductions in any
prior year may not exceed the amount which (A) the product of
the unit's baseline multiplied by the unit's 1985 actual
sulfur dioxide emission rate (in lbs per mmBtu), divided by
2,000 exceeds (B) the allowances specified for such unit in
table A. In the case of an affected unit under section 414,
the allowances awarded under this subsection for early
reductions in any prior year may not exceed the amount by
which--
``(A) the product of--
``(i) the quantity of fossil fuel consumed by the unit (in
mmBtu) in the prior year multiplied by--
``(ii) the lesser of--

``(I) 2.50, or
``(II) the most stringent emission rate (in lbs per mmBtu)
applicable to the unit under the applicable implementation
plan--

divided by 2,000 exceeds
``(B) the unit's actual tonnage of sulfur dioxide emission
for the prior year concerned.
Allowances allocated under this subsection for units may be
allocated only for emission reductions achieved as a result
of physical changes or changes in the method of operation
made after November 15, 1990, including changes in the type
or quantity of fossil fuel consumed.
``(3) No basis for excused nonperformance.--In no event
shall the provisions of this paragraph be interpreted as an
event of force majeure or a commercial impracticability or in
any other way as a basis for excused nonperformance by a
utility system under a coal sales contract in effect before
November 15, 1990.

``TABLE A--AFFECTED SOURCES AND UNITS IN PHASE I AND THEIR SULFUR DIOXIDE ALLOWANCES (TONS)
----------------------------------------------------------------------------------------------------------------
Phase I
State Plant name Generator allowances
----------------------------------------------------------------------------------------------------------------
Alabama........................................ Colbert................................ 1 13,570
2 15,310
3 15,400
4 15,410
5 37,180
E.C. Gaston............................ 1 18,100
2 18,540
3 18,310
4 19,280
5 59,840
Florida........................................ Big Bend............................... 1 28,410
2 27,100
3 26,740
Crist.................................. 6 19,200
7 31,680
Georgia........................................ Bowen.................................. 1 56,320
2 54,770
3 71,750
4 71,740
Hammond................................ 1 8,780
2 9,220
3 8,910
4 37,640
J. McDonough........................... 1 19,910
2 20,600
Wansley................................ 1 70,770
2 65,430
Yates.................................. 1 7,210
2 7,040
3 6,950
4 8,910
5 9,410
6 24,760
7 21,480
Illinois....................................... Baldwin................................ 1 42,010
2 44,420
3 42,550
Coffeen................................ 1 11,790
2 35,670
Grand Tower............................ 4 5,910
Hennepin............................... 2 18,410
Joppa Steam............................ 1 12,590
2 10,770
3 12,270
4 11,360
5 11,420
6 10,620
Kincaid................................ 1 31,530
2 33,810
Meredosia.............................. 3 13,890
Vermilion.............................. 2 8,880
Indiana........................................ Bailly................................. 7 11,180
8 15,630
Breed.................................. 1 18,500
Cayuga................................. 1 33,370
2 34,130
Clifty Creek........................... 1 20,150
2 19,810
3 20,410
4 20,080
5 19,360
6 20,380
E.W. Stout............................. 5 3,880
6 4,770
7 23,610
F.B. Culley............................ 2 4,290
3 16,970
F.E. Ratts............................. 1 8,330
2 8,480
Gibson................................. 1 40,400
2 41,010
3 41,080
4 40,320
H.T. Pritchard......................... 6 5,770

[[Page S331]]

Michigan City.......................... 12 23,310
Petersburg............................. 1 16,430
2 32,380
R. Gallagher........................... 1 6,490
2 7,280
3 6,530
4 7,650
Tanners Creek.......................... 4 24,820
Wabash River........................... 1 4,000
2 2,860
3 3,750
5 3,670
6 12,280
Warrick................................ 4 26,980
Iowa........................................... Burlington............................. 1 10,710
Des Moines............................. 7 2,320
George Neal............................ 1 1,290
M.L. Kapp.............................. 2 13,800
Prairie Creek.......................... 4 8,180
Riverside.............................. 5 3,990
Kansas......................................... Quindaro............................... 2 4,220
Kentucky....................................... Coleman................................ 1 11,250
2 12,840
3 12,340
Cooper................................. 1 7,450
2 15,320
E.W. Brown............................. 1 7,110
2 10,910
3 26,100
Elmer Smith............................ 1 6,520
2 14,410
Ghent.................................. 1 28,410
Green River............................ 4 7,820
H.L. Spurlock.......................... 1 22,780
Henderson II........................... 1 13,340
2 12,310
Paradise............................... 3 59,170
Shawnee................................ 10 10,170
Maryland....................................... Chalk Point............................ 1 21,910
2 24,330
C.P. Crane............................. 1 10,330
2 9,230
Morgantown............................. 1 35,260
2 38,480
Michigan....................................... J.H. Campbell.......................... 1 19,280
2 23,060
Minnesota...................................... High Bridge............................ 6 4,270
Mississippi.................................... Jack Watson............................ 4 17,910
5 36,700
Missouri....................................... Asbury................................. 1 16,190
James River............................ 5 4,850
Labadie................................ 1 40,110
2 37,710
3 40,310
4 35,940
Montrose............................... 1 7,390
2 8,200
3 10,090
New Madrid............................. 1 28,240
2 32,480
Sibley................................. 3 15,580
Sioux.................................. 1 22,570
2 23,690
Thomas Hill............................ 1 10,250
2 19,390
New Hampshire.................................. Merrimack.............................. 1 10,190
2 22,000
New Jersey..................................... B.L. England........................... 1 9,060
2 11,720
New York....................................... Dunkirk................................ 3 12,600
4 14,060
Greenidge.............................. 4 7,540
Milliken............................... 1 11,170
2 12,410
Northport.............................. 1 19,810
2 24,110
3 26,480
Port Jefferson......................... 3 10,470
4 12,330
Ohio........................................... Ashtabula.............................. 5 16,740
Avon Lake.............................. 8 11,650
9 30,480
Cardinal............................... 1 34,270
2 38,320
Conesville............................. 1 4,210
2 4,890
3 5,500
4 48,770
Eastlake............................... 1 7,800
2 8,640
3 10,020
4 14,510
5 34,070
Edgewater.............................. 4 5,050
Gen. J.M. Gavin........................ 1 79,080
2 80,560
Kyger Creek............................ 1 19,280
2 18,560
3 17,910
4 18,710
5 18,740
Miami Fort............................. 5 760
6 11,380
7 38,510
Muskingum River........................ 1 14,880
2 14,170
3 13,950
4 11,780
5 40,470
Niles.................................. 1 6,940
2 9,100

[[Page S332]]

Picway................................. 5 4,930
R.E. Burger............................ 3 6,150
4 10,780
5 12,430
W.H. Sammis............................ 5 24,170
6 39,930
7 43,220
W.C. Beckjord.......................... 5 8,950
6 23,020
Pennsylvania................................... Armstrong.............................. 1 14,410
2 15,430
Brunner Island......................... 1 27,760
2 31,100
3 53,820
Cheswick............................... 1 39,170
Conemaugh.............................. 1 59,790
2 66,450
Hatfield's Ferry....................... 1 37,830
2 37,320
3 40,270
Martins Creek.......................... 1 12,660
2 12,820
Portland............................... 1 5,940
2 10,230
Shawville.............................. 1 10,320
2 10,320
3 14,220
4 14,070
Sunbury................................ 3 8,760
4 11,450
Tennessee...................................... Allen.................................. 1 15,320
2 16,770
3 15,670
Cumberland............................. 1 86,700
2 94,840
Gallatin............................... 1 17,870
2 17,310
3 20,020
4 21,260
Johnsonville........................... 1 7,790
2 8,040
3 8,410
4 7,990
5 8,240
6 7,890
7 8,980
8 8,700
9 7,080
10 7,550
West Virginia.................................. Albright............................... 3 12,000
Fort Martin............................ 1 41,590
2 41,200
Harrison............................... 1 48,620
2 46,150
3 41,500
Kammer................................. 1 18,740
2 19,460
3 17,390
Mitchell............................... 1 43,980
2 45,510
Mount Storm............................ 1 43,720
2 35,580
3 42,430
Wisconsin...................................... Edgewater.............................. 4 24,750
La Crosse/Genoa........................ 3 22,700
Nelson Dewey........................... 1 6,010
2 6,680
N. Oak Creek........................... 1 5,220
2 5,140
3 5,370
4 6,320
Pulliam................................ 8 7,510
S. Oak Creek........................... 5 9,670
6 12,040
7 16,180
8 15,790
----------------------------------------------------------------------------------------------------------------

``(f) Energy Conservation and Renewable Energy.--
``(1) Definitions.--As used in this subsection:
``(A) Qualified energy conservation measure.--The term
`qualified energy conservation measure' means a cost
effective measure, as identified by the Administrator in
consultation with the Secretary of Energy, that increases the
efficiency of the use of electricity provided by an electric
utility to its customers.
``(B) Qualified renewable energy.--The term `qualified
renewable energy' means energy derived from biomass, solar,
geothermal, or wind as identified by the Administrator in
consultation with the Secretary of Energy.
``(C) Electric utility.--The term `electric utility' means
any person, State agency, or Federal agency, which sells
electric energy.
``(2) Allowances for emissions avoided through energy
conservation and renewable energy.--
``(A) In general.--The regulations under paragraph (4) of
this subsection shall provide that for each ton of sulfur
dioxide emissions avoided by an electric utility, during the
applicable period, through the use of qualified energy
conservation measures or qualified renewable energy, the
Administrator shall allocate a single allowance to such
electric utility, on a first-come-first-served basis from the
Conservation and Renewable Energy Reserve established under
subsection (g), up to a total of 300,000 allowances for
allocation from such Reserve.
``(B) Requirements for issuance.--The Administrator shall
allocate allowances to an electric utility under this
subsection only if all of the following requirements are met:
``(i) Such electric utility is paying for or participating
in the qualified energy conservation measures or qualified
renewable energy.
``(ii) The emissions of sulfur dioxide avoided through the
use of qualified energy conservation measures or qualified
renewable energy are quantified in accordance with
regulations promulgated by the Administrator under this
subsection.
``(iii)(I) Such electric utility has adopted and is
implementing a least cost energy conservation and electric
power plan which evaluates a range of resources, including
new power supplies, energy conservation, and renewable energy
resources, in order to meet expected future demand at the
lowest system cost.
``(II) The qualified energy conservation measures or
qualified renewable energy, or both, are consistent with that
plan.
``(III) In the case of electric utilities subject to the
jurisdiction of a State regulatory authority such plan shall
have been approved by such authority. For electric utilities
not subject to the jurisdiction of a State regulatory
authority such plan shall have been approved by the
Administrator.
``(iv) In the case of qualified energy conservation
measures undertaken by a State regulated electric utility,
the Secretary of

[[Page S333]]

Energy has certified that the State regulatory authority with
jurisdiction over the electric rates of such electric utility
has established rates and charges which ensure that the net
income of such electric utility after implementation of
specific cost effective energy conservation measures is at
least as high as such net income would have been if the
energy conservation measures had not been implemented. Upon
the date of any such certification by the Secretary of
Energy, all allowances which, but for this paragraph, would
have been allocated under subparagraph (B) before such date,
shall be allocated to the electric utility. This clause is
not a requirement for qualified renewable energy.
``(v) Such utility or any subsidiary of the utility's
holding company owns or operates at least one affected unit.
``(C) Period of applicability.--Allowances under this
subsection shall be allocated only with respect to kilowatt
hours of electric energy saved by qualified energy
conservation measures or generated by qualified renewable
energy after January 1, 1992, and before the earlier of (i)
December 31, 2000, or (ii) the date on which any electric
utility steam generating unit owned or operated by the
electric utility to which the allowances are allocated
becomes subject to this subpart (including those sources that
elect to become affected by this title, pursuant to section
417).
``(D) Determination of avoided emissions.--
``(i) Application.--In order to receive allowances under
this subsection, an electric utility shall make an
application which--

``(I) designates the qualified energy conservation measures
implemented and the qualified renewable energy sources used
for purposes of avoiding emissions;
``(II) calculates, in accordance with subparagraphs (F) and
(G), the number of tons of emissions avoided by reason of the
implementation of such measures or the use of such renewable
energy sources; and
``(III) demonstrates that the requirements of subparagraph
(B) have been met.

``(ii) Approval.--Such application for allowances by a
State-regulated electric utility shall require approval by
the State regulatory authority with jurisdiction over such
electric utility. The authority shall review the application
for accuracy and compliance with this subsection and the
rules under this subsection. Electric utilities whose retail
rates are not subject to the jurisdiction of a State
regulatory authority shall apply directly to the
Administrator for such approval.
``(E) Avoided emissions from qualified energy conservation
measures.--For the purposes of this subsection, the emission
tonnage deemed avoided by reason of the implementation of
qualified energy conservation measures for any calendar year
shall be a tonnage equal to the product of multiplying--
``(i) the kilowatt hours that would otherwise have been
supplied by the utility during such year in the absence of
such qualified energy conservation measures; by
``(ii) 0.004, and dividing the product so derived by 2,000.
``(F) Avoided emissions from the use of qualified renewable
energy.--The emissions tonnage deemed avoided by reason of
the use of qualified renewable energy by an electric utility
for any calendar year shall be a tonnage equal to the product
of multiplying--
``(i) the actual kilowatt hours generated by, or purchased
from, qualified renewable energy; by
``(ii) 0.004, and dividing the product so derived by 2,000.
``(G) Prohibitions.--
``(i) No allowances shall be allocated under this
subsection for the implementation of programs that are
exclusively informational or educational in nature.
``(ii) No allowances shall be allocated for energy
conservation measures or renewable energy that were
operational before January 1, 1992.
``(3) Savings provision.--Nothing in this subsection
precludes a State or State regulatory authority from
providing additional incentives to utilities to encourage
investment in demand-side resources.
``(4) Regulations.--The Administrator shall implement this
subsection under 40 CFR part 73 (2002), amended as
appropriate by the Administrator. Such regulations shall list
energy conservation measures and renewable energy sources
which may be treated as qualified energy conservation
measures and qualified renewable energy for purposes of this
subsection. Allowances shall only be allocated if all
requirements of this subsection and the rules promulgated to
implement this subsection are complied with. The
Administrator shall review the determinations of each State
regulatory authority under this subsection to encourage
consistency from electric utility and from State-to-State in
accordance with the Administrator's rules. The Administrator
shall publish and make available to the public the findings
of this review no less than annually.
``(g) Conservation and Renewable Energy Reserve.--The
Administrator shall establish a Conservation and Renewable
Energy Reserve under this subsection. Beginning on January 1,
1995, the Administrator may allocate from the Conservation
and Renewable Energy Reserve an amount equal to a total of
300,000 allowances for emissions of sulfur dioxide pursuant
to section 411. In order to provide 300,000 allowances for
such reserve, in each year beginning in calendar year 2000
and until calendar year 2009, inclusive, the Administrator
shall reduce each unit's basic phase II allowance allocation
on the basis of its pro rata share of 30,000 allowances.
Notwithstanding the prior sentence, if allowances remain in
the reserve on January 1, 2010, the Administrator shall
allocate such allowances for affected units under section 414
on a pro rata basis. For purposes of this subsection, for any
unit subject to the emissions limitation requirements of
section 414, the term `pro rata basis' refers to the ratio
which the reductions made in such unit's allowances in order
to establish the reserve under this subsection bears to the
total of such reductions for all such units.
``(h) Alternative Allowance Allocation for Units in Certain
Utility Systems With Optional Baseline.--
``(1) Optional baseline for units in certain systems.--In
the case of a unit subject to the emissions limitation
requirements of this section which (as of November 15,
1990)--
``(A) has an emission rate below 1.0 lbs/mmBtu,
``(B) has decreased its sulfur dioxide emissions rate by 60
percent or greater since 1980, and
``(C) is part of a utility system which has a weighted
average sulfur dioxide emissions rate for all fossil fueled-
fired units below 1.0 lbs/mmBtu, at the election to the owner
or operator of such unit, the unit's baseline may be
calculated--
``(i) as provided under section 411, or
``(ii) by utilizing the unit's average annual fuel
consumption at a 60 percent capacity factor. Such election
shall be made no later than March 1, 1991.
``(2) Allowance allocation.--Whenever a unit referred to in
paragraph (1) elects to calculate its baseline as provided in
clause (ii) of paragraph (1), the Administrator shall
allocate allowances for the unit pursuant to section 412(a),
this section, and section 414 (as basic phase II allowance
allocations) in an amount equal to the baseline selected
multiplied by the lower of the average annual emission rate
for such unit in 1989, or 1.0 lbs/mmBtu. Such allowance
allocation shall be in lieu of any allocation of allowances
under this section and section 414.

``SEC. 414. PHASE II SULFUR DIOXIDE REQUIREMENTS.

``(a) Applicability.--
``(1) Basic phase ii allowance allocations.--After January
l, 2000, each existing utility unit as provided below is
subject to the limitations or requirements of this section.
Each utility unit subject to an annual sulfur dioxide tonnage
emission limitation under this section is an affected unit
under this subpart. Each source that includes one or more
affected units is an affected source. In the case of an
existing unit that was not in operation during calendar year
1985, the emission rate for a calendar year after 1985, as
determined by the Administrator, shall be used in lieu of the
1985 rate.
``(2) Basic phase ii bonus allowance allocations.--In
addition to basic phase II allowance allocations, in each
year beginning in calendar year 2000 and ending in calendar
year 2009, inclusive, the Administrator shall allocate up to
530,000 phase II bonus allowances pursuant to subsections
(b)(2), (c)(4), (d)(3) (A) and (B), and (h)(2) of this
section and section 415.
``(3) Additional allowance allocations for certain affected
sources and units.--In addition to basic phase II allowances
allocations and phase II bonus allowance allocations,
beginning January 1, 2000, the Administrator shall allocate
for each unit listed on table A in section 413 (other than
units at Kyger Creek, Clifty Creek, and Joppa Stream) and
located in the States of Illinois, Indiana, Ohio, Georgia,
Alabama, Missouri, Pennsylvania, West Virginia, Kentucky, or
Tennessee allowances in an amount equal to 50,000 multiplied
by the unit's pro rata share of the total number of basic
allowances allocated for all units listed on table A (other
than units at Kyger Creek, Clifty Creek, and Joppa Stream).
Allowances allocated pursuant to this paragraph shall not be
subject to the 8,900,000 ton limitation in section 412(a).
``(b) Units Equal to, or Above, 75 MWe and 1.20 lbs/
mmBtu.--
``(1) Basic phase ii allowance allocations.--Except as
otherwise provided in paragraph (3), after January 1, 2000,
it shall be unlawful for any existing utility unit that
serves a generator with nameplate capacity equal to, or
greater, than 75 MWe and an actual 1985 emission rate equal
to or greater than 1.20 lbs/mmBtu to exceed an annual sulfur
dioxide tonnage emission limitation equal to the product of
the unit's baseline multiplied by an emission rate equal to
1.20 lbs/mmBtu, divided by 2,000, unless the owner or
operator of such unit holds allowances to emit not less than
the unit's total annual emissions or, for a year after 2007,
unless the owner or operator of the source that includes such
unit holds allowances to emit not less than the total annual
emissions of all affected units at the source.
``(2) Reserve allowances.--In addition to allowances
allocated pursuant to paragraph (1) and section 412(a) as
basic phase II allowance allocations, beginning January 1,
2000, and for each calendar year thereafter until and
including 2009, the Administrator shall allocate annually for
each unit subject to the emissions limitation requirements of
paragraph (1) with an actual 1985 emissions rate greater than
1.20 lbs/mmBtu and less than 2.50 lbs/mmBtu and a baseline
capacity factor of less than 60 percent, allowances

[[Page S334]]

from the reserve created pursuant to subsection (a)(2) in an
amount equal to 1.20 lbs/mmBtu multiplied by 50 percent of
the difference, on a Btu basis, between the unit's baseline
and the unit's fuel consumption at a 60 percent capacity
factor.
``(3) Prohibition.--After January 1, 2000, it shall be
unlawful for any existing utility unit with an actual 1985
emissions rate equal to or greater than 1.20 lbs/mmBtu whose
annual average fuel consumption during 1985, 1986, and 1987
on a Btu basis exceeded 90 percent in the form of lignite
coal which is located in a State in which, as of July 1,
1989, no county or portion of a county was designated
nonattainment under section 107 of this Act for any pollutant
subject to the requirements of section 109 of this Act to
exceed an annual sulfur dioxide tonnage limitation equal to
the product of the unit's baseline multiplied by the lesser
of the unit's actual 1985 emissions rate or its allowable
1985 emissions rate, divided by 2,000, unless the owner or
operator of such unit holds allowances to emit not less than
the unit's total annual emissions or, for a year after 2007,
unless the owner or operator of the source that includes such
unit holds allowances to emit not less than the total annual
emissions of all affected units at the source.
``(4) Annual allowance allocations.--After January 1, 2000,
the Administrator shall allocate annually for each unit,
subject to the emissions limitation requirements of paragraph
(1), which is located in a State with an installed electrical
generating capacity of more than 30,000,000 kw in 1988 and
for which was issued a prohibition order or a proposed
prohibition order (from burning oil), which unit subsequently
converted to coal between January 1, 1980, and December 31,
1985, allowances equal to the difference between (A) the
product of the unit's annual fuel consumption, on a Btu
basis, at a 65 percent capacity factor multiplied by the
lesser of its actual or allowable emissions rate during the
first full calendar year after conversion, divided by 2,000,
and (B) the number of allowances allocated for the unit
pursuant to paragraph (1): Provided, That the number of
allowances allocated pursuant to this paragraph shall not
exceed an annual total of five thousand. If necessary to
meeting the restriction imposed in the preceding sentence the
Administrator shall reduce, pro rata, the annual allowances
allocated for each unit under this paragraph.
``(c) Coal or Oil-Fired Units Below 75 MWe and Above 1.20
lbs/mmBtu.--
``(1) Steam-electric capacity equal to or greater than
250mwe.--Except as otherwise provided in paragraph (3), after
January 1, 2000, it shall be unlawful for a coal or oil-fired
existing utility unit that serves a generator with nameplate
capacity of less than 75 MWe and an actual 1985 emission rate
equal to, or greater than, 1.20 lbs/mmBtu and which is a unit
owned by a utility operating company whose aggregate
nameplate fossil fuel steam-electric capacity is, as of
December 31, 1989, equal to, or greater than, 250 MWe to
exceed an annual sulfur dioxide emissions limitation equal to
the product of the unit's baseline multiplied by an emission
rate equal to 1.20 lbs/mmBtu, divided by 2,000 unless the
owner or operator of such unit holds allowances to emit not
less than the unit's total annual emissions for a year after
2007, or the owner or operator of the source that includes
such unit holds allowances to emit not less than the total
annual emissions of all affected units at the source.
``(2) Steam-electric capacity less than 250mwe.--After
January 1, 2000, it shall be unlawful for a coal or oil-fired
existing utility unit that serves a generator with nameplate
capacity of less than 75 MWe and an actual 1985 emission rate
equal to, or greater than, 1.20 lbs/mmBtu (excluding units
subject to section 111 of the Act or to a federally
enforceable emissions limitation for sulfur dioxide
equivalent to an annual rate of less than 1.20 lbs/mmBtu) and
which is a unit owned by a utility operating company whose
aggregate nameplate fossil fuel steam-electric capacity is,
as of December 31, 1989, less than 250 MWe, to exceed an
annual sulfur dioxide tonnage emissions limitation equal to
the product of the unit's baseline multiplied by the lesser
of its actual 1985 emissions rate or its allowable 1985
emissions rate, divided by 2,000, unless the owner or
operator of such unit holds allowances to emit not less than
the unit's total annual emissions, for a year after 2007, or
the owner or operator of the source that includes such unit
holds allowances to emit not less than the total annual
emissions of all affected units at the source.
``(3) Steam-electric capacity between 250 and 450 mwe.--
After January 1, 2000 it shall be unlawful for any existing
utility unit with a nameplate capacity below 75 MWe and an
actual 1985 emissions rate equal to, or greater than, 1.20
lbs/mmBtu which became operational on or before December 31,
1965, which is owned by a utility operating company with, as
of December 31, 1989, a total fossil fuel steam-electric
generating capacity greater than 250 MWe, and less than 450
MWe which serves fewer than 78,000 electrical customers as of
November 15, 1990, to exceed an annual sulfur dioxide
emissions tonnage limitation equal to the product of its
baseline multiplied by the lesser of its actual or allowable
1985 emission rate, divided by 2,000, unless the owner or
operator holds allowances to emit not less than the units
total annual emissions or, for a year after 2007, unless the
owner or operator of the source that includes such unit holds
allowances to emit not less than the total annual emissions
of all affected units at the source. After January 1, 2010,
it shall be unlawful for each unit subject to the emissions
limitation requirements of this paragraph to exceed an annual
emissions tonnage limitation equal to the product of its
baseline multiplied by an emissions rate of 1.20 lbs/mmBtu,
divided by 2,000, unless the owner or operator holds
allowances to emit not less than the unit's total annual
emissions for a year after 2007, or the owner or operator of
the source that includes such unit holds allowances to emit
not less than the total annual emissions of all affected
units at the source.
``(4) Reserve allowances.--In addition to allowances
allocated pursuant to paragraph (1) and section 412(a) as
basic phase II allowance allocations, beginning January 1,
2000, and for each calendar year thereafter until and
including 2009, inclusive, the Administrator shall allocate
annually for each unit subject to the emissions limitation
requirements of paragraph (1) with an actual 1985 emissions
rate equal to, or greater than, 1.20 lbs/mmBtu and less than
2.50 lbs/mmBtu and a baseline capacity factor of less than 60
percent, allowances from the reserve created pursuant to
subsection (a)(2) in an amount equal to 1.20 lbs/mmBtu
multiplied by 50 percent of the difference, on a Btu basis,
between the unit's baseline and the unit's fuel consumption
at a 60 percent capacity factor.
``(5) Certain electric utility systems.--After January 1,
2000, it shall be unlawful for any existing unit with a
nameplate capacity below 75 MWe and an actual 1985 emissions
rate equal to, or greater than, 1.20 lbs/mmBtu which is part
of an electric utility system which, as of November 15,
1990--
``(A) has at least 20 percent of its fossil-fuel capacity
controlled by flue gas desulfurization devices;
``(B) has more than 10 percent of its fossil-fuel capacity
consisting of coal-fired units of less than 75 MWe; and
``(C) has large units (greater than 400 MWe) all of which
have difficult or very difficult FGD Retrofit Cost Factors
(according to the Emissions and the FGD Retrofit Feasibility
at the 200 Top Emitting Generating Stations, prepared for the
United States Environmental Protection Agency on January 10,
1986) to exceed an annual sulfur dioxide emissions tonnage
limitation equal to the product of its baseline multiplied by
an emissions rate of 2.5 lbs/mmBtu, divided by 2,000, unless
the owner or operator holds allowances to emit not less than
the unit's total annual emissions, for a year after 2007, or
the owner or operator of the source that includes such unit
holds allowances to emit not less than the total annual
emissions of all affected units at the source. After January
1, 2010, it shall be unlawful for each unit subject to the
emissions limitation requirements of this paragraph to exceed
an annual emissions tonnage limitation equal to the project
of its baseline multiplied by an emissions rate of 1.20 lbs/
mmBtu, divided by 2,000, unless the owner or operator holds
for use allowances to emit not less than the unit's total
annual emissions for a year after 2007, or the owner or
operator of the source that includes such unit holds
allowances to emit not less than the total annual emissions
of all affected units at the source.
``(d) Coal-Fired Units Below 1.20 lbs/mmBtu.--
``(1) Rate less than 0.60 lbs/mmbtu.--After January 1,
2000, it shall be unlawful for any existing coal-fired
utility unit the lesser of whose actual or allowable 1985
sulfur dioxide emissions rate is less than 0.60 lbs/mmBtu to
exceed an annual sulfur dioxide tonnage emission limitation
equal to the product of the unit's baseline multiplied by--
``(A) the lesser of 0.60 lbs/mmBtu or the unit's allowable
1985 emissions rate; and
``(B) a numerical factor of 120 percent, divided by 2,000,
unless the owner or operator of such unit holds allowances to
emit not less than the unit's total annual emissions for a
year after 2007, or the owner or operator of the source that
includes such unit holds allowances to emit not less than the
total annual emissions of all affected units at the source.
``(2) Rate between 0.60 and 1.20 lbs/mmbtu.--After January
1, 2000, it shall be unlawful for any existing coal-fired
utility unit the lesser of whose actual or allowable 1985
sulfur dioxide emissions rate is equal to, or greater than,
0.60 lbs/mmBtu and less than 1.20 lbs/mmBtu to exceed an
annual sulfur dioxide tonnage emissions limitation equal to
the product of the unit's baseline multiplied by (A) the
lesser of its actual 1985 emissions rate or its allowable
1985 emissions rate, and (B) a numerical factor of 120
percent, divided by 2,000, unless the owner or operator of
such unit holds allowances to emit not less than the unit's
total annual emissions for a year after 2007, or the owner or
operator of the source that includes such unit holds
allowances to emit not less than the total annual emissions
of all affected units at the source.
``(3) Reserve allowance.--
``(A) In general.--In addition to allowances allocated
pursuant to paragraph (1) and section 412(a) as basic phase
II allowance allocations, at the election of the designated
representative of the operating company, beginning January 1,
2000, and for each calendar year thereafter until and
including 2009, the Administrator shall allocate annually for
each unit subject to the emissions limitation requirements of
paragraph (1) allowances from the reserve created pursuant to
subsection (a)(2) in an amount equal to the amount by which--
``(i) the product of the lesser of 0.60 lbs/mmBtu or the
unit's allowable 1985 emissions rate multiplied by the unit's
baseline

[[Page S335]]

adjusted to reflect operation at a 60 percent capacity
factor, divided by 2,000, exceeds
``(ii) the number of allowances allocated for the unit
pursuant to paragraph (1) and section 403(a)(1) as basic
phase II allowance allocations.
``(B) Units subject to certain limitations.--In addition to
allowances allocated pursuant to paragraph (2) and section
412(a) as basic phase II allowance allocations, at the
election of the designated representative of the operating
company, beginning January 1, 2000, and for each calendar
year thereafter until and including 2009, the Administrator
shall allocate annually for each unit subject to the
emissions limitation requirements of paragraph (2) allowances
from the reserve created pursuant to subsection (a)(2) in an
amount equal to the amount by which--
``(i) the product of the lesser of the unit's actual 1985
emissions rate or its allowable 1985 emissions rate
multiplied by the unit's baseline adjusted to reflect
operation at a 60 percent capacity factor, divided by 2,000;
exceeds
``(ii) the number of allowances allocated for the unit
pursuant to paragraph (2) and section 412(a) as basic phase
II allowance allocations.
``(C) Election by operating company.--An operating company
with units subject to the emissions limitation requirements
of this subsection may elect the allocation of allowances as
provided under subparagraphs (A) and (B). Such election shall
apply to the annual allowance allocation for each and every
unit in the operating company subject to the emissions
limitation requirements of this subsection. The Administrator
shall allocate allowances pursuant to subparagraphs (A) and
(B) only in accordance with this subparagraph.
``(4) Alternative allocation.--Notwithstanding any other
provision of this section, at the election of the owner or
operator, after January l, 2000, the Administrator shall
allocate in lieu of allocation, pursuant to paragraph (1),
(2), (3), (5), or (6), allowances for a unit subject to the
emissions limitation requirements of this subsection which
commenced commercial operation on or after January 1, 1981
and before December 31, 1985, which was subject to, and in
compliance with, section 111 of the Act in an amount equal to
the unit's annual fuel consumption, on a Btu basis, at a 65-
percent-capacity factor multiplied by the unit's allowable
1985 emissions rate, divided by 2,000.
``(5) Clean coal technology demonstration grant.--For the
purposes of this section, in the case of an oil- and gas-
fired unit which has been awarded a clean coal technology
demonstration grant as of January 1, 1991, by the United
States Department of Energy, beginning January 1, 2002, the
Administrator shall allocate for the unit allowances in an
amount equal to the unit's baseline multiplied by 1.20 lbs/
mmBtu, divided by 2,000.
``(e) Oil and Gas-Fired Units Equal to or Greater Than 0.60
lbs/mmBtu and Less Than 1.20 lbs/mmBtu.--After January 1,
2000, it shall be unlawful for any existing oil and gas-fired
utility unit the lesser of whose actual or allowable 1985
sulfur dioxide emission rate is equal to, or greater than,
0.60 lbs/mmBtu, but less than 1.20 lbs/mmBtu to exceed an
annual sulfur dioxide tonnage limitation equal to the product
of the unit's baseline multiplied by (A) the lesser of the
unit's allowable 1985 emissions rate or its actual 1985
emissions rate and (B) a numerical factor of 120 percent
divided by 2,000, unless the owner or operator of such unit
holds allowances to emit not less than the unit's total
annual emissions for a year after 2007, or the owner or
operator of the source that includes such unit holds
allowances to emit not less than the total annual emissions
of all affected units at the source.
``(f) Oil and Gas-Fired Units Less Than 0.60 lbs/mmBtu.--
``(1) In general.--After January 1, 2000, it shall be
unlawful for any oil and gas-fired existing utility unit the
lesser of whose actual or allowance 1985 emission rate is
less than 0.60 lbs/mmBtu and whose average annual fuel
consumption during the period 1980 through 1989 on a Btu
basis was 90 percent or less in the form of natural gas to
exceed an annual sulfur dioxide tonnage emissions limitation
equal to the product of the unit's baseline multiplied by--
``(A) the lesser of 0.60 lbs/mmBtu or the unit's allowance
1985 emissions, and
``(B) a numerical factor of 120 percent, divided by 2,000,
unless the owner or operator of such unit holds allowances to
emit not less than the unit's total annual emissions, for a
year after 2007, or the owner or operator of the source that
includes such unit holds allowances to emit not less than the
total annual emissions of all affected units at the source.
``(2) Additional allocation.--In addition to allowances
allocated pursuant to paragraph (1) as basic phase II
allowance allocations and section 412(a), beginning January
1, 2000, the Administrator shall, in the case of any unit
operated by a utility that furnishes electricity, electric
energy, steam, and natural gas within an area consisting of a
city and 1 contiguous county, and in the case of any unit
owned by a State authority, the output of which unit is
furnished within that same area consisting of a city and 1
contiguous county, the Administrator shall allocate for each
unit in the utility its pro rata share of 7,000 allowances
and for each unit in the State authority its pro rata share
of 2,000 allowances.
``(g) Units That Commence Commercial Operation Between 1986
and December 31, 1995.--
``(1) In general.--After January 1, 2000, it shall be
unlawful for any utility unit that has commenced commercial
operation on or after January 1, 1986, but not later than
September 30, 1990 to exceed an annual tonnage emission
limitation equal to the product of the unit's annual fuel
consumption, on a Btu basis, at a 65-percent-capacity factor
multiplied by the unit's allowance 1985 sulfur dioxide
emission rate (converted, if necessary, to pounds per mmBtu),
divided by 2,000 unless the owner or operator of such unit
holds allowances to emit not less than the unit's total
annual emissions for a year after 2007, or the owner or
operator of the source that includes such unit holds
allowances to emit not less than the total annual emissions
of all affected units at the source.
``(2) Unit allowances.--After January 1, 2000, the
Administrator shall allocate allowances pursuant to section
411 to each unit which is listed in table B of this paragraph
in an annual amount equal to the amount specified in table B.

``TABLE B

Unit Allowances

Brandon Shores............................................. 8,907
Miller 4................................................... 9,197
TNP One 2.................................................. 4,000
Zimmer 1................................................... 18,458
Spruce 1................................................... 7,647
Clover 1................................................... 2,796
Clover 2................................................... 2,796
Twin Oak 2................................................. 1,760
Twin Oak 1................................................. 9,158
Cross 1.................................................... 6,401
Malakoff 1................................................. 1,759

Notwithstanding any other paragraph of this subsection, for
units subject to this paragraph, the Administrator shall not
allocate allowances pursuant to any other paragraph of this
subsection, provided that the owner or operator of a unit
listed on table B may elect an allocation of allowances under
another paragraph of this subsection in lieu of an allocation
under this paragraph.
``(3) Units that commenced commercial operation between
october 1, 1990, and december 31, 1992.--Beginning January 1,
2000, the Administrator shall allocate to the owner or
operator of any utility unit that commences commercial
operation, or has commenced commercial operation, on or after
October 1, 1990, but not later than December 31, 1992,
allowances in an amount equal to the product of the unit's
annual fuel consumption, on a Btu basis, at a 65 percent
capacity factor multiplied by the lesser of 0.30 lbs/mmBtu or
the unit's allowable sulfur dioxide emission rate (converted,
if necessary, to pounds per mmBtu), divided by 2,000.
``(4) Units that commenced commercial operation between
january 1, 1993, and december 31, 1995.--Beginning January 1,
2000, the Administrator shall allocate to the owner or
operator of any utility unit that has commenced construction
before December 31, 1990 and that commences commercial
operation between January 1, 1993, and December 31, 1995,
allowances in an amount equal to the product of the unit's
annual fuel consumption, on a Btu basis, at a 65 percent
capacity factor multiplied by the lesser of 0.30 lbs/mmBtu or
the unit's allowable sulfur dioxide emission rate (converted,
if necessary, to pounds per mmBtu), divided by 2,000.
``(5) Units that converted to coal fired operation between
january 1, 1985, and december 31, 1987.--After January 1,
2000, it shall be unlawful for any existing utility unit that
has completed conversion from predominantly gas fired
existing operation to coal fired operation between January 1,
1985, and December 31, 1987, for which there has been
allocated a proposed or final prohibition order pursuant to
section 301(b) of the Powerplant and Industrial Fuel Use Act
of 1978 (42 U.S.C. 8301 et seq., repealed 1987) to exceed an
annual sulfur dioxide tonnage emissions limitation equal to
the product of the unit's annual fuel consumption, on a Btu
basis, at a 65 percent capacity factor multiplied by the
lesser of 1.20 lbs/mmBtu or the unit's allowable 1987 sulfur
dioxide emissions rate, divided by 2,000, unless the owner or
operator of such unit has obtained allowances equal to its
actual emissions for a year after 2007, or the owner or
operator of the source that includes such unit holds
allowances to emit not less than the total annual emissions
of all affected units at the source.
``(6) Applicability to qualifying small power production
facilities, qualifying cogeneration facilities, and new
independent power production facilities.--Unless the
Administrator has approved a designation of such facility
under section 417, the provisions of this subpart shall not
apply to a `qualifying small power production facility' or
`qualifying cogeneration facility' (within the meaning of
section 3(17)(C) or 3(18)(B) of the Federal Power Act) or to
a `new independent power production facility' if, as of
November 15, 1990--
``(A) an applicable power sales agreement has been
executed;
``(B) the facility is the subject of a State regulatory
authority order requiring an electric utility to enter into a
power sales agreement with, purchase capacity from, or (for
purposes of establishing terms and conditions of the electric
utility's purchase of power) enter into arbitration
concerning, the facility;
``(C) an electric utility has issued a letter of intent or
similar instrument committing

[[Page S336]]

to purchase power from the facility at a previously offered
or lower price and a power sales agreement is executed within
a reasonable period of time; or
``(D) the facility has been selected as a winning bidder in
a utility competitive bid solicitation.
``(h) Oil- and Gas-Fired Units Less Than 10 Percent Oil
Consumed.--
``(1) In general.--After January 1, 2000, it shall be
unlawful for any oil- and gas-fired utility unit whose
average annual fuel consumption during the period 1980
through 1989 on a Btu basis exceeded 90 percent in the form
of natural gas to exceed an annual sulfur dioxide tonnage
limitation equal to the product of the unit's baseline
multiplied by the unit's actual 1985 emissions rate divided
by 2,000 unless the owner or operator of such unit holds
allowances to emit not less than the unit's total annual
emissions for a year after 2007, or the owner or operator of
the source that includes such unit holds allowances to emit
not less than the total annual emissions of all affected
units at the source.
``(2) Reserve allowances.--In addition to allowances
allocated pursuant to paragraph (1) and section 412(a) as
basic phase II allowance allocations, beginning January 1,
2000, and for each calendar year thereafter until and
including 2009, the Administrator shall allocate annually for
each unit subject to the emissions limitation requirements of
paragraph (1) allowances from the reserve created pursuant to
subsection (a)(2) in an amount equal to the unit's baseline
multiplied by 0.050 lbs/mmBtu, divided by 2,000.
``(3) Additional allowances.--In addition to allowances
allocated pursuant to paragraph (1) and section 412(a),
beginning January 1, 2010, the Administrator shall allocate
annually for each unit subject to the emissions limitation
requirements of paragraph (1) allowances in an amount equal
to the unit's baseline multiplied by 0.050 lbs/mmBtu, divided
by 2,000.
``(i) Units in High Growth States.--
``(1) Annual allocations.--In addition to allowances
allocated pursuant to this section and section 412(a) as
basic phase II allowance allocations, beginning January 1,
2000, the Administrator shall allocate annually allowances
for each unit, subject to an emissions limitation requirement
under this section, and located in a State that--
``(A) has experienced a growth in population in excess of
25 percent between 1980 and 1988 according to State
Population and Household Estimates, With Age, Sex, and
Components of Change: 1981-1988 allocated by the United
States Department of Commerce, and
``(B) had an installed electrical generating capacity of
more than 30,000,000 kw in 1988, in an amount equal to the
difference between--
``(i) the number of allowances that would be allocated for
the unit pursuant to the emissions limitation requirements of
this section applicable to the unit adjusted to reflect the
unit's annual average fuel consumption on a Btu basis of any
three consecutive calendar years between 1980 and 1989
(inclusive) as elected by the owner or operator; and

``(ii) the number of allowances allocated for the unit
pursuant to the emissions limitation requirements of this
section:

Provided, That the number of allowances allocated pursuant to
this subsection shall not exceed an annual total of 40,000.
If necessary to meeting the 40,000 allowance restriction
imposed under this subsection the Administrator shall reduce,
pro rata, the additional annual allowances allocated to each
unit under this subsection.
``(2) Additional allocations.--Beginning January 1, 2000,
in addition to allowances allocated pursuant to this section
and section 403(a)(1) as basic phase II allowance
allocations, the Administrator shall allocate annually for
each unit subject to the emissions limitation requirements of
subsection (b)(1)--
``(A) the lesser of whose actual or allowable 1980
emissions rate has declined by 50 percent or more as of
November 15, 1990;
``(B) whose actual emissions rate is less than 1.2 lbs/
mmBtu as of January 1, 2000;
``(C) which commenced operation after January 1, 1970;
``(D) which is owned by a utility company whose combined
commercial and industrial kilowatt-hour sales have increased
by more than 20 percent between calendar year 1980 and
November 15, 1990; and
``(E) whose company-wide fossil-fuel sulfur dioxide
emissions rate has declined 40 percent or more from 1980 to
1988, allowances in an amount equal to the difference
between--
``(i) the number of allowances that would be allocated for
the unit pursuant to the emissions limitation requirements of
subsection (b)(1) adjusted to reflect the unit's annual
average fuel consumption on a Btu basis for any three
consecutive years between 1980 and 1989 (inclusive) as
elected by the owner or operator; and
``(ii) the number of allowances allocated for the unit
pursuant to the emissions limitation requirements of
subsection (b)(1):
Provided, That the number of allowances allocated pursuant to
this paragraph shall not exceed an annual total of 5,000. If
necessary to meeting the 5,000 allowance restriction imposed
in the last clause of the preceding sentence the
Administrator shall reduce, pro rata, the additional
allowances allocated to each unit pursuant to this paragraph.
``(j) Certain Municipally Owned Power Plants.--Beginning
January 1, 2000, in addition to allowances allocated pursuant
to this section and section 412(a) as basic phase II
allowance allocations, the Administrator shall allocate
annually for each existing municipally owned oil and gas-
fired utility unit with nameplate capacity equal to, or less
than, 40 MWe, the lesser of whose actual or allowable 1985
sulfur dioxide emission rate is less than 1.20 lbs/mmBtu,
allowances in an amount equal to the product of the unit's
annual fuel consumption on a Btu basis at a 60 percent
capacity factor multiplied by the lesser of its allowable
1985 emission rate or its actual 1985 emission rate, divided
by 2,000.

``SEC. 415. ALLOWANCES FOR STATES WITH EMISSIONS RATES AT OR
BELOW 0.80 LBS/MMBTU.

``(a) Election of Governor.--In addition to basic phase II
allowance allocations, upon the election of the Governor of
any State, with a 1985 statewide annual sulfur dioxide
emissions rate equal to or less than, 0.80 lbs/mmBtu,
averaged over all fossil fuel-fired utility steam generating
units, beginning January 1, 2000, and for each calendar year
thereafter until and including 2009, the Administrator shall
allocate, in lieu of other phase 11 bonus allowance
allocations, allowances from the reserve created pursuant to
section 414(a)(2) to all such units in the State in an amount
equal to 125,000 multiplied by the unit's pro rata share of
electricity generated in calendar year 1985 at fossil fuel-
fired utility steam units in all States eligible for the
election.
``(b) Notification of Administrator.--Pursuant to section
412(a), each Governor of a State eligible to make an election
under paragraph (a) shall notify the Administrator of such
election. In the event that the Governor of any such State
fails to notify the Administrator of the Governor's
elections, the Administrator shall allocate allowances
pursuant to section 414.
``(c) Allowances After January 1, 2010.--After January 1,
2010, the Administrator shall allocate allowances to units
subject to the provisions of this section pursuant to section
414.

``SEC. 416. ELECTION FOR ADDITIONAL SOURCES.

``(a) Applicability.--The owner or operator of any unit
that is not, nor will become, an affected unit under section
412(b), 413, or 414, that emits sulfur dioxide, may elect to
designate that unit or source to become an affected unit and
to receive allowances under this subpart. An election shall
be submitted to the Administrator for approval, along with a
permit application and proposed compliance plan in accordance
with section 404. The Administrator shall approve a
designation that meets the requirements of this section, and
such designated unit shall be allocated allowances, and be an
affected unit for purposes of this subpart.
``(b) Establishment of Baseline.--The baseline for a unit
designated under this section shall be established by the
Administrator by regulation, based on fuel consumption and
operating data for the unit for calendar years 1985, 1986,
and 1987, or if such data is not available, the Administrator
may prescribe a baseline based on alternative representative
data.
``(c) Emission Limitations.--
``(1) Elections submitted before january 1, 2002.--For a
unit for which an election, along with a permit application
and compliance plan, is submitted to the Administrator under
paragraph (a) before January 1, 2002, annual emissions
limitations for sulfur dioxide shall be equal to the product
of the baseline multiplied by the lesser of the unit's 1985
actual or allowable emission rate in lbs/mmBtu, or, if the
unit did not operate in 1985, by the lesser of the unit's
actual or allowable emission rate for a calendar year after
1985 (as determined by the Administrator); divided by 2,000.
``(2) Elections submitted after january 1, 2002.--For a
unit for which an election, along with a permit application
and compliance plan, is submitted to the Administrator under
paragraph (a) on or after January 1, 2002, annual emissions
limitations for sulfur dioxide shall be equal to the product
of the baseline multiplied by the lesser of the unit's 1985
actual or allowable emission rate in lbs/mmBtu, or, if the
unit did not operate in 1985, by the lesser of the unit's
actual or allowable emission rate for a calendar year after
1985 (as determined by the Administrator); divided by 4,000.
``(d) Allowances and Permits.--The Administrator shall
issue allowances to an affected unit under this section in an
amount equal to the emissions limitation calculated under
subsection (c), in accordance with section 412. Such
allowance may be used in accordance with, and shall be
subject to, the provisions of section 412. Affected sources
under this section shall be subject to the requirements of
sections 404, 405, 406, and 412.
``(e) Limitation.--Any unit designated under this section
shall not transfer or bank allowances produced as a result of
reduced utilization or shutdown, except that, such allowances
may be transferred or carried forward for use in subsequent
years to the extent that the reduced utilization or shutdown
results from the replacement of thermal energy from the unit
designated under this section, with thermal energy generated
by any other unit or units subject to the requirements of
this subpart, and the designated unit's allowances are
transferred or carried forward for use at such other
replacement unit or units. In no case may the Administrator
allocate to a source designated under this section allowances
in an amount greater than the emissions resulting from
operation of the source in full compliance with the
requirements of this Act. No such

[[Page S337]]

allowances shall authorize operation of a unit in violation
of any other requirements of this Act.
``(f) Implementation.--The Administrator shall implement
this section under 40 CFR part 74 (2002), amended as
appropriate by the Administrator.

``SEC. 417. AUCTIONS, RESERVE.

``(a) Special Reserve of Allowances.--For purposes of
establishing the Special Allowance Reserve, the Administrator
shall withhold--
``(1) 2.8 percent of the allocation of allowances for each
year from 1995 through 1999 inclusive; and
``(2) 2.8 percent of the basic phase 11 allowance
allocation of allowances for each year beginning in the year
2000;

which would (but for this subsection) be issued for each
affected unit at an affected source. The Administrator shall
record such withholding for purposes of transferring the
proceeds of the allowance sales under this subsection. The
allowances so withheld shall be deposited in the Reserve
under this section.
``(b) Auction Sales.--
``(1) Subaccount for auctions.--The Administrator shall
establish an Auction Subaccount in the Special Reserve
established under this section. The Auction Subaccount shall
contain allowances to be sold at auction under this section
in the amount of 150,000 tons per year for each year from
1995 through 1999, inclusive and 250,000 tons per year for
each year from 2000 through 2009, inclusive.
``(2) Annual auctions.--Commencing in 1993 and in each year
thereafter until 2010, the Administrator shall conduct
auctions at which the allowances referred to in paragraph (1)
shall be offered for sale in accordance with regulations
promulgated by the Administrator. The allowances referred to
in paragraph (1) shall be offered for sale at auction in the
amounts specified in table C. The auction shall be open to
any person. A person wishing to bid for such allowances shall
submit (by a date set by the Administrator) to the
Administrator (on a sealed bid schedule provided by the
Administrator) offers to purchase specified numbers of
allowances at specified prices. Such regulations shall
specify that the auctioned allowances shall be allocated and
sold on the basis of bid price, starting with the highest-
priced bid and continuing until all allowances for sale at
such auction have been allocated. The regulations shall not
permit that a minimum price be set for the purchase of
withheld allowances. Allowances purchased at the auction may
be used for any purpose and at any time after the auction,
subject to the provisions of this subpart and subpart 2.

TABLE C--NUMBER OF ALLOWANCES AVAILABLE FOR AUCTION
------------------------------------------------------------------------
Spot
Year of sale auction Advance
(same year) auction
------------------------------------------------------------------------
1993.......................................... 50,000 100,000
1994.......................................... 50,000 100,000
1995.......................................... 50,000 100,000
1996.......................................... 150,000 100,000
1997.......................................... 150,000 100,000
1998.......................................... 150,000 100,000
1999.......................................... 150,000 100,000
2000.......................................... 125,000 125,000
2001.......................................... 125,000 125,000
2002.......................................... 125,000 125,000
2003.......................................... 125,000 0
2004-2009..................................... 125,000 0
------------------------------------------------------------------------

``(3) Proceeds.--
``(A) Transfer.--Notwithstanding section 3302 of title 31
of the United States Code or any other provision of law,
within 90 days of receipt, the Administrator shall transfer
the proceeds from the auction under this section, on a pro
rata basis, to the owners or operators of the affected units
at an affected source from whom allowances were withheld
under subsection (b). No funds transferred from a purchaser
to a seller of allowances under this paragraph shall be held
by any officer or employee of the United States or treated
for any purpose as revenue to the United States or the
Administrator.
``(B) Return.--At the end of each year, any allowances
offered for sale but not sold at the auction shall be
returned without charge, on a pro rata basis, to the owner or
operator of the affected units from whose allocation the
allowances were withheld. With 170 days after the date of
enactment of the Clear Skies Act of 2005, any allowance
withheld under paragraph (a)(2) but not offered for sale at
an auction shall be returned without charge, on a pro rata
basis, to the owner or operator of the affected units from
whose allocation the allowances were withheld.
``(4) Recording by EPA.--The Administrator shall record and
publicly report the nature, prices and results of each
auction under this subsection, including the prices of
successful bids, and shall record the transfers of allowances
as a result of each auction in accordance with the
requirements of this section. The transfer of allowances at
such auction shall be recorded in accordance with the
regulations promulgated by the Administrator under this
subpart.
``(c) Changes in Auctions and Withholding.--Pursuant to
rulemaking after public notice and comment the Administrator
may at any time after the year 1998 (in the case of advance
auctions) and 2005 (in the case of spot auctions) decrease
the number of allowances withheld and sold under this
section.
``(d) Termination of Auctions.--Not later than the
commencement date of the sulfur dioxide allowance requirement
under section 422, the Administrator shall terminate the
withholding of allowances and the auction sales under this
section. Pursuant to regulations under this section, the
Administrator may by delegation or contract provide for the
conduct of sales or auctions under the Administrator's
supervision by other departments or agencies of the United
States Government or by nongovernmental agencies, groups, or
organizations.
``(e) Applicable Law.--The Administrator shall implement
this section under 40 CFR part 73 (2002), amended as
appropriate by the Administrator.

``SEC. 418. INDUSTRIAL SULFUR DIOXIDE EMISSIONS.

``(a) Report.--Not later than January 1, 1995 and every 5
years thereafter, the Administrator shall transmit to the
Congress a report containing an inventory of national annual
sulfur dioxide emissions from industrial sources (as defined
in section 411(11)), including units subject to section
414(g)(2), for all years for which data are available, as
well as the likely trend in such emission over the following
twenty-year period. The reports shall also contain estimates
of the actual emission reduction in each year resulting from
promulgation of the diesel fuel desulfurization regulations
under section 214.
``(b) 5.60 Million Ton Cap.--Whenever the inventory
required by this section indicates that sulfur dioxide
emissions from industrial sources, including units subject to
section 414(g)(2), and may reasonably be expected to reach
levels greater than 5.60 million tons per year, the
Administrator shall take such actions under the Act as may be
appropriate to ensure that such emissions do not exceed 5.60
million tons per year. Such actions may include the
promulgation of new and revised standards of performance for
new sources, including units subject to section 414(g)(2),
under section 111(b), as well as promulgation of standards of
performance for existing sources, including units subject to
section 414(g)(2), under authority of this section. For an
existing source regulated under this section, `standard of
performance' means a standard which the Administrator
determines is applicable to that source and which reflects
the degree of emission reduction achievable through the
application of the best system of continuous emission
reduction which (taking into consideration the cost of
achieving such emission reduction, and any nonair quality
health and environmental impact and energy requirements) the
Administrator determines has been adequately demonstrated for
that category of sources.
``(c) Election.--Regulations promulgated under section
414(b) shall not prohibit a source from electing to become an
affected unit under section 417.

``SEC. 419. TERMINATION.

``Starting January l, 2010, the owners or operators of
affected units and affected facilities under sections 412(b)
and (c) and 416 and shall no longer be subject to the
requirements of sections 412 through 417.

``Subpart 2--Clear Skies Sulfur Dioxide Allowance Program

``SEC. 421. DEFINITIONS.

``For purposes of this subpart--
``(1) Affected EGU.--The term `affected EGU' means--
``(A) for a unit serving a generator before the date of
enactment of the Clear Skies Act of 2005, a unit in a State
serving a generator with a nameplate capacity of greater than
twenty-five megawatts that produced or produces electricity
for sale during 2002 or any year thereafter, except for a
cogeneration unit that meets the criteria for qualifying
cogeneration facilities codified in section 292.205 of title
18 of the Code of Federal Regulations as issued on April 1,
2002 during 2002 and each year thereafter; and
``(B) for a unit commencing service of a generator on or
after the date of enactment of the Clear Skies Act of 2005, a
unit in a State serving a generator that produces electricity
for sale during any year starting with the year the unit
commences service of a generator, except for a unit serving
one or more generators with total nameplate capacity of
twenty-five megawatts or less, or a cogeneration unit that
meets the criteria for qualifying cogeneration facilities
codified in section 292.205 of title 18 of the Code of
Federal Regulations as issued on April 1, 2002, during each
year starting with the year the unit commences services of a
generator.

Notwithstanding paragraphs (A) and (B), the term `affected
EGU' does not include a solid waste incineration unit subject
to section 129 or a unit for the treatment, storage, or
disposal of hazardous waste subject to section 3005 of the
Solid Waste Disposal Act.
``(2) Coal-fired.--The term `coal-fired' with regard to a
unit means, for purposes of section 424, combusting coal or
any coal-derived fuel alone or in combination with any amount
of any other fuel in any year during 1998 through 2002 or,
for a unit that commenced operation on or after January 1,
2003, a unit designed to combust coal or any coal derived
fuel alone or in combination with any other fuel.
``(3) Eastern bituminous.--The term `Eastern bituminous'
means bituminous that is from a mine located in a State east
of the Mississippi River.
``(4) General account.--The term `general account' means an
account in the Allowance Tracking System under section 403(c)
established by the Administrator for any person under 40 CFR
part 73.31(c) (2002), amended as appropriate by the
Administrator.
``(5) Oil-fired.--The term `oil-fired' with regard to a
unit means, for purposes of section 424, combusting fuel oil
for more than 10

[[Page S338]]

percent of the unit's total heat input, and combusting no
coal or coal-derived fuel, in any year during 1998 through
2002 or, for a unit that commenced operation on or after
January 1, 2003, a unit designed to combust oil for more than
10 percent of the unit's total heat input and not to combust
any coal or coal-derived fuel.
``(6) Unit account.--The term `unit account' means an
account in the Allowance Tracking System under section 403(c)
established by the Administrator for any unit under 40 CFR
section 73.31 (a) and (b) (2002), amended as appropriate by
the Administrator.

``SEC. 422. APPLICABILITY.

``(a) Prohibition.--Starting January 1, 2010, it shall be
unlawful for the affected EGUs at a facility to emit a total
amount of sulfur dioxide during the year in excess of the
number of sulfur dioxide allowances held for such facility
for that year by the owner or operator of the facility.
``(b) Allowances Held.--Only sulfur dioxide allowances
under section 423 shall be held in order to meet the
requirements of subsection (a).

``SEC. 423. LIMITATIONS ON TOTAL EMISSIONS.

``For affected EGUs for 2010 and each year thereafter, the
Administrator shall allocate sulfur dioxide allowances under
section 424.

``TABLE A--TOTAL SO2 ALLOWANCES ALLOCATED FOR EGUs

Year SO2 allowances allocated
2010.......................................................4,416,666
2011-2012..................................................4,416,667
2013-2017..................................................4,500,000
2018 and thereafter........................................3,000,000.

``SEC. 424. EGU ALLOCATIONS.

``(a) In General.--Not later than 3 years before the
commencement date of the sulfur dioxide allowance requirement
of section 422, the Administrator shall promulgate
regulations determining allocations of sulfur dioxide
allowances for affected EGUs for each year during 2010 and
thereafter. The regulations shall provide that:
``(1) 93 percent of the total amount of sulfur dioxide
allowances shall be allocated to fossil-fuel-fired affected
EGUs under section 424 shall be allocated by the
Administrator to individual EGUs as follows:
``(A) For each unit account and each general account in the
Allowance Tracking System, the Administrator shall determine
the total amount of sulfur dioxide allowances allocated under
subpart 1 for 2010 and thereafter that are recorded, as of
12:00 noon, Eastern Standard time, on the date 180 days after
enactment of the Clear Skies Act of 2005. The Administrator
shall determine this amount in accordance with 40 CFR part 73
(2002), amended as appropriate by the Administrator, except
that the Administrator shall apply a discount rate of 7
percent for each year after 2010 to the amounts of sulfur
dioxide allowances allocated for 2011 or later.
``(B) For each unit account and each general account in the
Allowance Tracking System, the Administrator shall determine
an amount of sulfur dioxide allowances equal to the
allocation amount under subparagraph (A) multiplied by the
ratio of the amount of sulfur dioxide allowances determined
to be recorded in that account under clause (i) to the total
amount of sulfur dioxide allowances determined to be recorded
in all unit accounts and general accounts in the Allowance
Tracking System under clause (i).
``(C) The Administrator shall allocate to each facility's
account in the Allowance Tracking System an amount of sulfur
dioxide allowances equal to the total amount of sulfur
dioxide allowances determined under clause (ii) for the unit
accounts of the units at the facility and shall allocate to
each general account in the Allowance Tracking System the
amount of sulfur dioxide allowances determined under clause
(ii) for that general account.
``(2)(A) 7 percent of the total amount of sulfur dioxide
allowances allocated each year under section 423 shall be
allocated for units at a facility that are affected EGUs, but
did not receive sulfur dioxide allocations under subpart 1 of
this title.
``(B) The Administrator shall allocate each year for the
units under subparagraph (A) that commenced operation before
January 1, 2001, an amount of sulfur dioxide allowances
determined by:
``(i) For such units at the facility that are coal-fired,
multiplying 0.40 lb/mmBtu by the total baseline heat input of
such units and converting to tons.
``(ii) For such units at the facility that are oil-fired,
multiplying 0.20 lb/mmBtu by the total baseline heat input of
such units and converting to tons.
``(iii) For all such other units at the facility that are
not covered by clause (i) or (ii), multiplying 0.05 lb/mmBtu
by the total baseline heat input of such units and converting
to tons.
``(iv) If the total of the amounts for all facilities under
clauses (i), (ii), and (iii) exceeds the allocation amount
under subparagraph (A), multiplying the allocation amount
under subparagraph (A) by the ratio of the total of the
amounts for the facility under clauses (i), (ii), and (iii)
to the total of the amounts for all facilities under clause
(i), (ii), and (iii).
``(v) Allocating to each facility the lesser of the total
of the amounts for the facility under clauses (i), (ii), and
(iii) or, if the total of the amounts for all facilities
under clauses (i), (ii), and (iii) exceeds the allocation
amount under subparagraph (A), the amount under clause (iv).
``(C) The Administrator shall allocate each year for units
under subparagraph (A) that commence commercial operation on
or after January l, 2001 and before January 1, 2005, an
amount of sulfur dioxide allowances determined by:
``(i) For such units at the facility that are coal-fired or
oil-fired, multiplying 0.19 lb/mmBtu by the total baseline
heat input of such units and converting to tons.
``(ii) For all such other units at the facility that are
not covered by clause (i), multiplying .005 lb/mmBtu by the
total baseline heat input of such units and converting to
tons.
``(iii) If the total of the amounts for all facilities
under clauses (i) and (ii) exceeds the allocation amount
under subparagraph (A), multiplying the allocation amount
under subparagraph (A) by the ratio of the total of the
amounts for the facility under clauses (i) and (ii) to the
total of the amounts for all facilities under clauses (i) and
(ii).
``(iv) Allocating to each facility the lesser of the total
of the amounts for the facility under clauses (i) and (ii)
or, if the total of the amounts for all facilities under
clauses (i) and (ii) exceeds the allocation amount under
subparagraph (A), the amount under clause (iv). The
Administrator shall allocate to the facilities under
paragraph (1) and this paragraph on a pro rata basis (based
on the allocations under those paragraphs) any allowances not
allocated under this paragraph.
``(D) The Administrator shall allocate each year for units
under subparagraph (A) that commence commercial operation on
or after January 1, 2005, an amount of sulfur dioxide
allowances determined for each such unit at the facility by
multiplying the applicable National Emissions Standard under
section 481 by the applicable ``baseline heat input,''
considering fuel and combustion type, as defined in section
402(5)(B) and converting to tons.
``(E) In the event that allocation demand exceeds supply,
the Administrator shall allocate allowances under
subparagraph (A) giving first priority to units qualifying
under subparagraph (B), second priority to units qualifying
under subparagraph (C), and third priority to units
qualifying under subparagraph (D). Allowances allocated under
subparagraph (D) shall be allocated to units on a first come
basis determined by date of unit commencement of
construction, provided that such unit actually commences
operation. As such, allocations to units under sub-paragraph
(D) will not be reduced as a result of new units commencing
commercial operation.
``(b) Failure To Promulgate.--
``(1) Annual notice.--For each year 2010 and thereafter, if
the Administrator has not promulgated regulations,
determining allocations under subsection (a), each affected
EGU shall comply with section 422 by providing annual notice
to the permitting authority. Such notice shall indicate the
amount of allowances the affected EGU believes it has for the
relevant year and the amount of sulfur dioxide emissions for
such year. The amount of sulfur dioxide emissions shall be
determined using reasonable industry accepted methods unless
the Administrator has promulgated applicable monitoring and
alternative monitoring requirements.
``(2) Reconciliation.--Upon promulgation of regulations
under subsection (a) determining the allocations for 2010 and
thereafter, and promulgating regulations under section 403(b)
providing for the transfer of sulfur dioxides and section
403(c) establishing an Allowance Transfer System for sulfur
dioxide allowances, each unit's emissions shall be compared
to and reconciled to its actual allocations under the
promulgated regulations. Each unit will have nine (9) months
to purchase any allowance shortfall through allowances
purchased from other allowance holders or through direct
sale.

``SEC. 425. DISPOSITION OF SULFUR DIOXIDE ALLOWANCES
ALLOCATED UNDER SUBPART 1.

``(a) Removal From Accounts.--After allocating allowances
under section 424(a)(1), the Administrator shall remove from
the unit accounts and general accounts in the Allowance
Tracking System under section 403(c) and from the Special
Allowances Reserve under section 418 all sulfur dioxide
allowances allocated or deposited under subpart 1 for 2010 or
later.
``(b) Regulations.--The Administrator shall promulgate
regulations as necessary to assure that the requirement to
hold allowances under section 422 may be met using sulfur
dioxide allowances allocated under subpart 1 for 1995 through
2009. No part of this Act shall be construed to prevent use
of unused pre-2010 allowances to meet the requirements of
section 422.

``SEC. 426. INCENTIVES FOR SULFUR DIOXIDE EMISSION CONTROL
TECHNOLOGY.

``(a) Reserve.--The Administrator shall establish a reserve
of 250,000 sulfur dioxide allowances comprising 83,334 sulfur
dioxide allowances for 2010, 83,333 sulfur dioxide allowances
for 2011, and 83,333 sulfur dioxide allowances for 2012.
``(b) Application.--Not later than 18 months after the
enactment of the Clear Skies Act of 2005, an owner or
operator of an affected EGU that commenced operation before
2001 and that during 2001 combusted Eastern bituminous may
submit an application to the Administrator for sulfur dioxide
allowances from the reserve under subsection (a). The
application shall include each of the following:

[[Page S339]]

``(1) A statement that the owner or operator will install
and commence commercial operation of specified sulfur dioxide
control technology at the unit within 24 months after
approval of the application under subsection (c) if the unit
is allocated the sulfur dioxide allowances requested under
paragraph (4). The owner or operator shall provide
description of the control technology.
``(2) A statement that, during the period starting with the
commencement of operation of sulfur dioxide technology under
paragraph (1) through 2009, the unit will combust Eastern
bituminous at a percentage of the unit's total heat input
equal to or exceeding the percentage of total heat input
combusted by the unit in 2001 if the unit is allocated the
sulfur dioxide allowances requested under paragraph (4).
``(3) A demonstration that the unit will achieve, while
combusting fuel in accordance with paragraph (2) and
operating the sulfur dioxide control technology specified in
paragraph (1), a specified tonnage of sulfur dioxide emission
reductions during the period starting with the commencement
of operation of sulfur dioxide control technology under
subparagraph (1) through 2009. The tonnage of emission
reductions shall be the difference between emissions
monitored at a location at the unit upstream of the control
technology described in paragraph (1) and emissions monitored
at a location at the unit downstream of such control
technology, while the unit is combusting fuel in accordance
with paragraph (2).
``(4) A request that the Administrator allocate for the
unit a specified number of sulfur dioxide allowances from the
reserve under subsection (a) for the period starting with the
commencement of operation of the sulfur dioxide technology
under paragraph (1) through 2009.
``(5) A statement of the ratio of the number of sulfur
dioxide allowances requested under paragraph (4) to the
tonnage of sulfur dioxide emissions reductions under
paragraph (3).
``(c) Approval or Disapproval.--By order subject to notice
and opportunity for comment, the Administrator shall--
``(1) determine whether each application meets the
requirements of subsection (b);
``(2) list the applications meeting the requirements of
subsection (b) and their respective allowance-to-emission-
reduction ratios under paragraph (b)(5) in order, from lowest
to highest, of such ratios;
``(3) for each application listed under paragraph (2),
multiply the amount of sulfur dioxide emission reductions
requested by each allowance-to-emission-reduction ratio on
the list that equals or is less than the ratio for the
application;
``(4) sum, for each allowance-to-emission-reduction ratio
in the list under paragraph (2), the amounts of sulfur
dioxide allowances determined under paragraph (3);
``(5) based on the calculations in paragraph (4), determine
which allowance-to-emission-reduction ratio on the list under
paragraph (2) results in the highest total amount of
allowances that does not exceed 250,000 allowances; and
``(6) approve each application listed under paragraph (2)
with a ratio equal to or less than the allowance-to-emission-
reduction ratio determined under paragraph (5) and disapprove
all the other applications.
``(d) Monitoring.--An owner or operator whose application
is approved under subsection (c) shall install and operate a
CEMS for monitoring sulfur dioxide and to quality assure the
data. The installation of the CEMS and the quality assurance
of data shall be in accordance with subparagraph (a)(2)(B)
and subsections (c) through (e) of section 405, except that,
where two or more units utilize a single stack, and one or
more units are not subject to such standards, separate
monitoring shall be required for each unit.
``(e) Allocations.--Not later than 6 months after the
commencement date of the sulfur dioxide allowance requirement
of section 422, for the units for which applications are
approved under subsection (c), the Administrator shall
allocate sulfur dioxide allowances as follows:
``(1) For each unit, the Administrator shall multiply the
allowance-to-emission-reduction ratio of the last application
that the Administrator approved under subsection (c) by the
lesser of--
``(A) the total tonnage of sulfur dioxide emissions
reductions achieved by the unit, during the period starting
with the commencement of operation of the sulfur dioxide
control technology under subparagraph (b)(1) through 2009,
through use of such control technology; or
``(B) the tonnage of sulfur dioxide emission reductions
under paragraph (b)(3).
``(2) If the total amount of sulfur dioxide allowances
determined for all units under paragraph (1) exceeds 250,000
sulfur dioxide allowances, the Administrator shall multiply
250,000 sulfur dioxide allowances by the ratio of the amount
of sulfur dioxide allowances determined for each unit under
paragraph (1) to the total amount of sulfur dioxide
allowances determined for all units under paragraph (1).
``(3) The Administrator shall allocate to each unit the
lesser of the amount determined for that unit under paragraph
(1) or, if the total amount of sulfur dioxide allowances
determined for all units under paragraph (1) exceeds 250,000
sulfur dioxide allowances, under paragraph (2). The
Administrator shall allocate to the facilities under section
424 paragraphs (1) and (2) on a pro rata basis (based on the
allocations under those paragraphs) any unallocated
allowances under this paragraph.

``Subpart 3--Western Regional Air Partnership

``SEC. 431. DEFINITIONS.

``For purposes of this subpart--
``(1) Adjusted baseline heat input.--The term `adjusted
baseline heat input' means the average annual heat input used
by a unit during the three years in which the unit had the
highest heat input for the period from the eighth through the
fourth year before the first covered year.
``(A) Notwithstanding paragraph (1), if a unit commences
operation during such period and--
``(i) on or after January 1 of the fifth year before the
first covered year, then `adjusted baseline heat input' shall
mean the average annual heat input used by the unit during
the fifth and fourth years before the first covered year; and
``(ii) on or after January 1 of the fourth year before the
first covered year, then `adjusted baseline heat input' shall
mean the annual heat input used by the unit during the fourth
year before the first covered year.
``(B) A unit's heat input for a year shall be the heat
input--
``(i) required to be reported under section 405 for the
unit, if the unit was required to report heat input during
the year under that section;
``(ii) reported to the Energy Information Administrator for
the unit, if the unit was not required to report heat input
under section 405;
``(iii) based on data for the unit reported to the WRAP
State where the unit is located as required by State law, if
the unit was not required to report heat input during the
year under section 405 and did not report to the Energy
Information Administration; or
``(iv) based on fuel use and fuel heat content data for the
unit from fuel purchase or use records, if the unit was not
required to report heat input during the year under section
405 and did not report to the Energy Information
Administration and the WRAP State.
``(2) Affected EGU.--The term `affected EGU' means an
affected EGU under subpart 2 that is in a WRAP State and
that--
``(A) in 2000, emitted 100 tons or more of sulfur dioxide
and was used to produce electricity for sale; or
``(B) in any year after 2000, emits 100 tons or more of
sulfur dioxide and is used to produce electricity for sale.
``(3) Coal-fired.--The term `coal-fired' with regard to a
unit means, for purposes of section 434, a unit combusting
coal or any coal-derived fuel alone or in combination with
any amount of any other fuel in any year during the period
from the eighth through the fourth year before the first
covered year.
``(4) Covered year.--The term `covered year' means--
``(A)(i) the third year after the year 2018 or later when
the total annual sulfur dioxide emissions of all affected
EGUs in the WRAP States first exceed 271,000 tons; or
``(ii) the third year after the year 2013 or later when the
Administrator determines by regulation that the total annual
sulfur dioxide emissions of all affected EGUs in the WRAP
States are reasonably projected to exceed 271,000 tons in
2018 or any year thereafter. The Administrator may make such
determination only if all the WRAP States submit to the
Administrator a petition requesting that the Administrator
issue such determination and make all affected EGUs in the
WRAP States subject to the requirements of sections 432
through 434; and
``(B) each year after the `covered year' under subparagraph
(A).
``(5) Oil-fired.--The term `oil-fired' with regard to a
unit means, for purposes of section 434, a unit combusting
fuel oil for more than 10 percent of the unit's total heat
input, and combusting no coal or coal-derived fuel, and any
year during the period from the eighth through the fourth
year before the first covered year.
``(6) WRAP state.--The term `WRAP State' means Arizona,
California, Colorado, Idaho, Nevada, New Mexico, Oregon,
Utah, and Wyoming.

``SEC. 432. APPLICABILITY.

``(a) Prohibition.--Starting January 1 of the first covered
year, it shall be unlawful for the affected EGUs at a
facility to emit a total amount of sulfur dioxide during the
year in excess of the number of sulfur dioxide allowances
held for such facility for that year by the owner or operator
of the facility.
``(b) Allowances Held.--Only sulfur dioxide allowances
under section 433 shall be held in order to meet the
requirements of subsection (a).

``SEC. 433. LIMITATIONS ON TOTAL EMISSIONS.

For affected EGUs, the total amount of sulfur dioxide
allowances that the Administrator shall allocate for each
covered year under section 434 shall equal 271,000 tons.

``SEC. 434. EGU ALLOCATIONS.

``(a) In General.--By January 1 of the year before the
first covered year, the Administrator shall promulgate
regulations determining, for each covered year, the
allocations of sulfur dioxide allowances for the units at a
facility that are affected EGUs as of December 31 of the
fourth year before the covered year by--
``(1) for such units at the facility that are coal-fired,
multiplying 0.40 lb/mmBtu by the total adjusted baseline heat
input of such units and converting to tons;

[[Page S340]]

``(2) for such units at the facility that are oil-fired,
multiplying 0.20 lb/mmBtu by the total adjusted baseline heat
input of such units and converting to tons;
``(3) for all such other units at the facility that are not
covered by paragraph (1) or (2) multiplying 0.05 lb/mmBtu by
the total adjusted baseline heat input of such units and
converting to tons; and
``(4) multiplying by 0.95 the allocation amount under
section 433 by the ratio of the total of the amounts for the
facility under paragraphs (1), (2), and (3) to the total of
the amounts for all facilities under paragraphs (1), (2), and
(3); and
``(5)(A) 5 percent of the total amount of sulfur dioxide
allowances allocated each year under section 433 shall be
allocated for units at a facility that are affected EGUs, but
did not receive sulfur dioxide allocations under paragraph
(4). These units shall be allocated allowances in accordance
with paragraphs (1), (2), and (3).
``(B) Allowances allocated under subparagraph (A) shall be
allocated to units on a first come basis determined by date
of unit commencement of construction, provided that such unit
actually commences operation. As such, allocations to units
under paragraph (A) will not be reduced as a result of new
units commencing commercial operation.
``(C) Allowances not allocated under subparagraph (B) shall
be allocated to units in paragraphs (A) and (B) on a pro rata
basis.
``(b) Failure To Promulgate.--
``(1) In general.--For each year 2010 and thereafter, if
the Administrator has not promulgated regulations,
determining allocations under paragraph (a), each affected
EGU shall comply with section 422 by provided annual notice
to the permitting authority. Such notice shall indicate the
amount of allowances the affected EGU believes it has for the
relevant year and the amount of sulfur dioxide emissions for
such year. The amount of sulfur dioxide emissions shall be
determined using reasonable industry accepted methods unless
the Administrator has promulgated applicable monitoring and
alternative monitoring requirements.
``(2) Reconciliation.--Upon promulgation of regulations
under subsection (a) determining the allocations for 2010 and
thereafter, and promulgating regulations under section 403(b)
providing for the transfer of sulfur dioxides and section
403(c) establishing an Allowance Transfer System for sulfur
dioxide allowances, each unit's emissions shall be compared
to and reconciled to its actual allocations under the
promulgated regulations. Each unit will have nine (9) months
to purchase any allowance shortfall through allowances
purchased from other allowance holders or through direct
sale.

``PART C--NITROGEN OXIDES CLEAR SKIES EMISSION REDUCTIONS

``Subpart 1--Acid Rain Program

``SEC. 441. NITROGEN OXIDES EMISSION REDUCTION PROGRAM.

``(a) Applicability.--On the date that a coal-fired utility
unit becomes an affected unit pursuant to sections 413 or
414, or on the date a unit subject to the provisions of
section 413(d), must meet the NOX reduction
requirements, each such unit shall become an affected unit
for purposes of this section and shall be subject to the
emission limitations for nitrogen oxides set forth herein.
``(b) Emission Limitations.--
(1) In general.--The Administrator shall by regulation
establish annual allowable emission limitations for nitrogen
oxides for the types of utility boilers listed below, which
limitations shall not exceed the rates listed below:
Provided, That the Administrator may set a rate higher than
that listed for any type of utility boiler if the
Administrator finds that the maximum listed rate for that
boiler type cannot be achieved using low NOX
burner technology. The Administrator shall implement this
paragraph under 40 CFR part 76.5 (2002). The maximum
allowable emission rates are as follows:
``(A) for tangentially fired boilers, 0.45 lb/mmBtu; and
``(B) for dry bottom wall-fired boilers (other than units
applying cell burner technology), 0.50 lb/mmBtu. After
January 1, 1995, it shall be unlawful for any unit that is an
affected unit on that date and is of the type listed in this
paragraph to emit nitrogen oxides in excess of the emission
rates set by the Administrator pursuant to this paragraph.
``(2) Utility boilers.--The Administrator shall, by
regulation, establish allowable emission limitations on a lb/
mmBtu, annual average basis, for nitrogen oxides for the
following types of utility boilers:
``(A) wet bottom wall-fired boilers;
``(B) cyclones;
``(C) units applying cell burner technology; and
``(D) all other types of utility boilers.
``(3) Basis of rates.--The Administrator shall base such
rates on the degree of reduction achievable through the
retrofit application of the best system of continuous
emission reduction, taking into account available technology,
costs and energy and environmental impacts; and which is
comparable to the costs of nitrogen oxides controls set
pursuant to subsection (b)(1). The Administrator may revise
the applicable emission limitations for tangentially fired
and dry bottom, wall-fired boilers (other than cell burners)
to be more stringent if the Administrator determines that
more effective low NOX burned technology is
available: Provided, That, no unit that is an affected unit
pursuant to section 413 and that is subject to the
requirements of subsection (b)(1), shall be subject to the
revised emission limitations, if any. The Administrator shall
implement that paragraph under 40 CFR parts 76.6 and 76.7
(2002).
``(c) Alternative Emission Limitations.--(1) The permitting
authority shall, upon request of an owner or operator of a
unit subject to this section, authorize an emission
limitation less stringent than the applicable limitation
established under subsection (b)(1) or (b)(2) upon a
determination that--
``(A) a unit subject to subsection (b)(1) cannot meet the
applicable limitation using low NOX burner
technology; or
``(B) a unit subject to subsection (b)(2) cannot meet the
applicable rate using the technology on which the
Administrator based the applicable emission limitation.
``(2) Eligibility for alternative emission limitations.--
The permitting authority shall base such determination upon a
reasonable showing satisfactory to the permitting authority,
in accordance with regulations established by the
Administrator, that the owner or operator--
``(A) has properly installed appropriate control equipment
designed to meet the applicable emission rate;
``(B) has properly operated such equipment for a period of
15 months (or such other period of time as the Administrator
determines through the regulations), and provides operating
and monitoring data for such period demonstrating that the
unit cannot meet the applicable emission rate; and
``(C) has specified an emission rate that such unit can
meet on an annual average basis. The permitting authority
shall issue an operating permit for the unit in question, in
accordance with section 404 and title V--
``(i) that permits the unit during the demonstration period
referred to in subparagraph (B), to emit at a rate in excess
of the applicable emission rate;
``(ii) at the conclusion of the demonstration period to
revise the operating permit to reflect the alternative
emission rate demonstrated in subparagraphs (B) and (C).
``(3) Additional control technology.--Units subject to
subsection (b)(1) for which an alternative emission
limitation is established shall not be required to install
any additional control technology beyond low NOX
burners. Nothing in this section shall preclude an owner or
operator from installing and operating an alternative
NOX control technology capable of achieving the
applicable emission limitation. The Administrator shall
implement this subsection under 40 CFR part 76 (2002),
amended as appropriate by the Administrator.
``(d) Emissions Averaging.--
``(1) Alernative contemporaneous emission limitations.--In
lieu of complying with the applicable emission limitations
under subsection (b)(1), (2), or (c), the owner or operator
of two or more units subject to one or more of the applicable
emission limitations set pursuant to these sections, may
petition the permitting authority for alternative
contemporaneous annual emission limitations for such units
that ensure that--
``(A) the actual annual emission rate in pounds of nitrogen
oxides per million Btu averaged over the units in question is
a rate that is less than; or equal to
``(B) the Btu-weighted average annual emission rate for the
same units if they had been operated, during the same period
of time, in compliance with limitations set in accordance
with the applicable emission rates set pursuant to
subsections (b)(1) and (2).
``(2) Operating permits.--If the permitting authority
determines, in accordance with regulations issued by the
Administrator that the conditions in paragraph (1) can be
met, the permitting authority shall issue operating permits
for such units, in accordance with section 404 and title V,
that allow alternative contemporaneous annual emission
limitations. Such emission limitations shall only remain in
effect while both units continue operation under the
conditions specified in their respective operating permits.
The Administrator shall implement this subsection under 40
CFR part 76 (2002), amended as appropriate by the
Administrator.

``SEC. 442. TERMINATION.

``Starting January 1, 2008, the owner or operator of
affected units and affected facilities under section 441
shall no longer be subject to the requirements of that
section.

``Subpart 2--Clear Skies Nitrogen Oxides Allowance Program

``SEC. 451. DEFINITIONS.

``For purposes of this subpart:
``(1) Affected egu.--The term `affected EGU' means--
``(A) for a unit serving a generator before the date of
enactment of the Clear Skies Act of 2005, a unit in a State
serving a generator with a nameplate capacity of greater than
25 megawatts that produced or produces electricity for sale
during 2002 or any year thereafter, except for a cogeneration
unit that meets the criteria for qualifying for a
cogeneration facilities codified in section 292.205 of title
18 of the Code of Federal Regulations as issued on April 1,
2002 during 2002 and each year thereafter; and
``(B) for a unit commencing service of a generator on or
after the date of enactment of the Clear Skies Act of 2005, a
unit in a State serving a generator that produces electricity
for sale during any year starting with the year the unit
commences service of a generator, except for a gas-fired unit
serving one or more generators with total nameplate

[[Page S341]]

capacity of 25 megawatts or less, or a cogeneration unit that
meets the criteria for qualifying for a cogeneration
facilities codified in section 292.205 of title 18 of the
Code of Federal Regulations as issued on April 1, 2002,
during each year starting with the unit commences service of
a generator.
``(C) Exclusion.--Notwithstanding paragraphs (A) and (B),
the term `affected EGU' does not include a solid waste
incineration unit subject to section 129 or a unit for the
treatment, storage, or disposal of hazardous waste subject to
section 3005 of the Solid Waste Disposal Act.
``(2) Adjusted baseline heat input.--The term `adjusted
baseline heat input' with regard to a unit means, for
purposes of allocating nitrogen oxides allowances in a
particular year under this subpart, the units baseline
multiplied by--
``(A) 1.0 for affected coal-fired units for 2008 and each
year thereafter;
``(B) 0.55 for affected oil- and gas-fired units located in
a Zone 1 State for years 2008 through 2017 inclusive;
``(C) 0.8 for affected oil- and gas-fired units located in
a Zone 1 State for 2018 and each year thereafter; and
``(D) 0.4 for affected oil- and gas-fired units located in
a Zone 2 State for 2008 and each year thereafter.
``(3) Allowable nitrogen oxides emissions rate.--The term
`allowable nitrogen oxides emissions rate' means the most
stringent Federal or State emissions limitation for nitrogen
oxides that applies to the unit as of date of enactment of
this subpart. If the emissions limitation for a unit is not
expressed in pounds of emissions per million Btu, or the
averaging period of that emissions limitation is not
expressed on an annual basis, the Administrator shall
calculate the annual equivalent of that emissions limitation
to establish the allowable rate. Such limitation shall not
include any requirement to hold nitrogen oxides allowances
under the Federal NOX Budget Trading Program as
codified at 40 CFR part 97 (2002), or any State program
adopted to meet the requirements of the NOX SIP
Call as codified at 40 CFR 51.121 (2002).
``(4) Zone 1 state.--The term `Zone 1 State' means Alabama,
Arkansas, Connecticut, Delaware, the District of Columbia,
Florida, Georgia, Illinois, Indiana, Iowa, Kentucky,
Louisiana, Maine, Maryland, Massachusetts, Michigan,
Mississippi, the fine grid portion (as defined in section
51.121 of title 40, Code of Federal Regulations (as in effect
for 2002)) of Missouri, New Hampshire, New Jersey, New York,
North Carolina, Ohio, Pennsylvania, Rhode Island, South
Carolina, Tennessee, Texas east of Interstate 35, Vermont,
Virginia, West Virginia, and Wisconsin.
``(5) Zone 2 state.--The term `Zone 2 State' means Alaska,
American Samoa, Arizona, California, Colorado, the
Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, Guam, Hawaii, Idaho, Kansas,
Minnesota, the coarse grid portion (as defined in section
51.121 of title 40, Code of Federal Regulations (as in effect
for 2002)) of Missouri, Montana, Nebraska, North Dakota, New
Mexico, Nevada, Oklahoma, Oregon, South Dakota, Texas west of
Interstate 35, Utah, the Virgin Islands, Washington, and
Wyoming.

``SEC. 452. APPLICABILITY.

``(a) Zone 1 Prohibition.--
(1) In general.--Starting January 1, 2008, it shall be
unlawful for the affected EGUs at a facility in a Zone 1
State to emit a total amount of nitrogen oxides during a year
in excess of the number of nitrogen oxides allowances held
for such facility for that year by the owner or operator of
the facility.
``(2) Limitation.--Only nitrogen oxides allowances under
section 453(a) shall be held in order to meet the
requirements of paragraph (1), except as provided under
section 465.
``(b) Zone 2 Prohibition.--
(1) In general.--Starting January 1, 2008, it shall be
unlawful for the affected EGUs at a facility in a Zone 2
State to emit a total amount of nitrogen oxides during a year
in excess of the number of nitrogen oxides allowances held
for such facility for that year by the owner or operator of
the facility.
``(2) Limitation.--Only nitrogen oxides allowances under
section 453(b) shall be held in order to meet the
requirements of paragraph (1).

``SEC. 453. LIMITATIONS ON TOTAL EMISSIONS.

``(a) Zone 1 Allocations.--For affected EGUs in the Zone 1
States for 2008 and each year thereafter, the Administrator
shall allocate nitrogen oxides allowances under section
454(a) as specified in table A.

``TABLE A--TOTAL NOX ALLOWANCES ALLOCATED FOR EGUS IN ZONE 1

Year NOX allowances allocated
2008-2017...................................................1,473,603
2018 and thereafter.........................................1,073,603
``(b) Zone 2 Allocations.--For affected EGUs in the Zone 2
States for 2008 and each year thereafter, the Administrator
shall allocate nitrogen oxides allowances under section
454(b) as specified in table B.

``TABLE B--TOTAL NOX ALLOWANCES ALLOCATED FOR EGUS IN ZONE 2

Year NOX allowance allocated
2008 and thereafter...........................................714,794

``SEC. 454. EGU ALLOCATIONS.

``(a) EGU Allocations in the Zone 1 States.--
``(1) EPA regulations.--Not later than 18 months before the
date on which the nitrogen oxides allowance requirement under
section 452 takes effect, the Administrator shall promulgate
regulations determining the allocation of nitrogen oxide
allowances for 2008 and each subsequent year for units at a
facility in a Zone 1 State that are affected EGUs as of the
date of enactment of this section.
``(2) Formula for allocation.--
``(A) In general.--Subject to subparagraph (B) and
paragraph (3), the regulations shall specify that the
allocation of nitrogen oxide allowances for each unit
referred to in paragraph (1) for each year shall be the
product obtained by multiplying--
``(i) the product of 0.95 and the allocation amount under
section 453(a); and
``(ii) the ratio that--

``(I) the total quantity of the adjusted baseline heat
input of the units at the facility; bears to
``(II) the total quantity of adjusted baseline heat input
to all affected EGUs in the Zone 1 States; and

``(B) Maximum allocation.--Notwithstanding subparagraph (A)
and paragraph (3), no unit shall receive an allocation in
excess of the product obtained by multiplying--
``(i) the baseline heat input of the unit; and
``(ii) the quotient obtained by dividing the allowable
nitrogen oxides emissions rate of the unit by 2000.
``(3) Distribution of remaining allowances.--
``(A) In general.--Subject to paragraph (2)(B), any
nitrogen oxide allowances remaining after the allocation of
allowances under paragraph (2) shall be distributed on a pro
rata basis among the units that received nitrogen oxide
allowances under that paragraph.
``(B) Additional remaining allowances.--Allowances
remaining after each iteration of the calculation under
subparagraph (A) as a result of the limitation under
paragraph (2)(B) shall be allocated in accordance with
subparagraph (A).
``(4) Set-aside for new units.--
``(A) In general.--5 percent of the total amount of
nitrogen oxide allowances allocated each year under section
453 shall be allocated for units at a facility that are
affected EGUs, but did not receive nitrogen oxide allocations
under paragraph (2).
``(B) Formula for allocation.--
``(i) In general.--Subject to clause (ii) and subparagraph
(E), the regulations promulgated under paragraph (1) shall
specify that the allocation of nitrogen oxide allowances for
each unit referred to in subparagraph (A) for each year shall
be the product obtained by multiplying--

``(I) the product of 0.05 and the allocation amount under
section 453(a); and
``(II) the ratio that--

``(aa) the total quantity of the adjusted baseline heat
input of the units at the facility; bears to
``(bb) the total quantity of adjusted baseline heat input
to all affected EGUs in the Zone 1 States, including those
affected EGUs that receive allowances under paragraph (2).
``(ii) Additional allowances.--Notwithstanding clause (i)
and subparagraph (E), no unit shall receive an allocation
under this paragraph in excess of the product obtained by
multiplying--

``(I) the baseline heat input of the unit; and
``(II) the quotient obtained by dividing the allowable
nitrogen oxides emissions rate of the unit by 2000.

``(C) Method of allocation.--Allowances allocated under
this paragraph shall be allocated to each unit on a first-
come basis determined by the date on which the unit commences
operation.
``(D) No reduction in allocations.--Allocations to units
under this paragraph shall not be reduced as a result of new
units commencing commercial operation.
``(E) Distribution of remaining allowances.--Any nitrogen
oxide allowances remaining after the allocation of allowances
under subparagraph (B) shall be distributed on a pro rata
basis among the units that received nitrogen oxide allowances
under that subparagraph and paragraphs (2) and (3).
``(5) Failure to promulgate regulations.--For calendar year
2008 and each calendar year thereafter, if the Administrator
has not promulgated the regulations determining the
allocations under this subsection--
``(A) each affected unit shall comply with section 452 by
providing an annual notice to the permitting authority that
indicates the amount of allowances the affected unit believes
the affected unit has for the relevant year (including the
quantity of nitrogen oxide emissions of the affected unit for
that year);
``(B) the amount of nitrogen oxide emissions of an affected
unit described in subparagraph (A) shall be determined using
reasonable industry accepted methods unless the Administrator
has promulgated applicable monitoring and alternative
monitoring requirements; and
``(C) upon promulgation of regulations under this
subsection for Zone 1 determining the allocations for 2008
and each year thereafter, and promulgation of regulations
under section 403(b) providing for the transfer of nitrogen
oxides and regulations under section 403(c) establishing an
Allowance Transfer System for nitrogen oxide allowances--
``(i) the emissions of each unit shall be compared to and
reconciled with actual allocations to the unit under the
regulations; and
``(ii) each unit shall have not more than 270 days to
submit allowances to the Administrator, without recompense,
for any allowance shortfall (including submitted allowances
obtained and held by any mechanism

[[Page S342]]

consistent with this Act, including direct sale).
``(b) EGU Allocations in the Zone 2 States.--
``(1) EPA regulations.--Not later than 18 months before the
date on which the nitrogen oxides allowance requirement under
section 452 takes effect, the Administrator shall promulgate
regulations determining the allocation of nitrogen oxide
allowances for 2008 and each subsequent year for units at a
facility in a Zone 2 State that are affected EGUs as of the
date of enactment of this section.
``(2) Formula for allocation.--
``(A) In general.--Subject to subparagraph (B) and
paragraph (3), the regulations shall specify that the
allocation of nitrogen oxide allowances for each unit
referred to in paragraph (1) for each year shall be the
product obtained by multiplying--
``(i) the product of 0.95 and the allocation amount under
section 453(b); and
``(ii) the ratio that--

``(I) the product of 0.05 and the allocation amount under
section 453(a); and
``(II) the ratio that--

``(aa) the total quantity of the adjusted baseline heat
input of the units at the facility; bears to
``(bb) the total quantity of adjusted baseline heat input
to all affected EGUs in the Zone 2 States, including those
affected EGUs that receive allowances under paragraph (2).
``(ii) Additional allowances.--Notwithstanding clause (i)
and subparagraph (E), no unit shall receive an allocation
under this paragraph in excess of the product obtained by
multiplying--

``(I) the baseline heat input of the unit; and
``(II) the quotient obtained by dividing the allowable
nitrogen oxides emissions rate of the unit by 2000.

``(C) Method of allocation.--Allowances allocated under
this paragraph shall be allocated to each unit on a first-
come basis determined by the date on which the unit commences
operation.
``(D) No reduction in allocations.--Allocations to units
under this paragraph shall not be reduced as a result of new
units commencing commercial operation.
``(E) Distribution of remaining allowances.--Any nitrogen
oxide allowances remaining after the allocation of allowances
under subparagraph (B) shall be distributed on a pro rata
basis among the units that received nitrogen oxide allowances
under that subparagraph and paragraphs (2) and (3).
``(5) Failure to promulgate regulations.--For calendar year
2008 and each calendar year thereafter, if the Administrator
has not promulgated the regulations determining the
allocations under this subsection--
``(A) each affected unit shall comply with section 452 by
providing an annual notice to the permitting authority that
indicates the amount of allowances the affected unit believes
the affected unit has for the relevant year (including the
quantity of nitrogen oxide emissions of the affected unit for
that year);
``(B) the amount of nitrogen oxide emissions of an affected
unit described in subparagraph (A) shall be determined using
reasonable industry accepted methods unless the Administrator
has promulgated applicable monitoring and alternative
monitoring requirements; and
``(C) upon promulgation of regulations under this
subsection for Zone 2 determining the allocations for 2008
and each year thereafter, and promulgation of regulations
under section 403(b) providing for the transfer of nitrogen
oxides and regulations under section 403(c) establishing an
Allowance Transfer System for nitrogen oxide allowances--
``(i) the emissions of each unit shall be compared to and
reconciled with actual allocations to the unit under the
regulations; and
``(ii) each unit shall have not more than 270 days to
submit allowances to the Administrator, without recompense,
for any allowance shortfall (including submitted allowances
obtained and held by any mechanism consistent with this Act,
including direct sale).

``SEC. 455 NITROGEN OXIDES EARLY ACTION REDUCTION CREDITS.

``(a) Credits.--Except as provided in subsection (e), the
Administrator shall promulgate regulations within 18 months
authorizing the allocation of nitrogen oxides allowances to
units designated under this section that install or modify
pollution control equipment or combustion technology
improvements identified in such regulations after the date of
enactment of this section and prior to January 1, 2008.
``(b) Emissions reductions.--No allowances shall be
allocated under this section for emissions reductions that
are--
``(1) attributable to pollution control equipment or
combustion technology improvements that were operational at
any time prior to the date of enactment of this section;
``(2) attributable to fuel switching;
``(3) required under any Federal or State regulation for
the applicable year; or
``(4) made by a unit, subject to--
``(A) subpart 1 of part C, that are necessary for
compliance with the limitation on the Btu-weighted average
annual emission rate of the unit and 1 or more other units
under section 441(d); or
``(B) the requirements in the applicable implementation
plan of a NOX SIP Call State (as defined in
section 461(3)) that meet the requirements under sections
51.121 and 51.122 of title 40, Code of Federal Regulations
(as in effect for calendar year 2004) during the period
beginning on May 1 and ending on September 30.
``(c) Allocation.--The allowances allocated to any unit
under this section shall be in addition to the allowances
allocated under section 454 and shall be allocated in an
amount equal to one allowance of nitrogen oxides for each
1.05 tons of reduction in emissions of nitrogen oxides
achieved by the pollution control equipment or combustion
technology improvements starting with the year in which the
equipment or improvement is implemented. The early compliance
reduction allowances available under this section shall be
used and tradable in the same manner as allowances under
section 454.
``(d) Early compliance allowance credit.--The Administrator
shall promulgate regulations as necessary to ensure affected
units receive early compliance allowance credit. Early
compliance allowances shall be allocated at the end of an
early compliance year. Should the Administrator fail to
promulgate allocation regulations by the end of a given year,
early compliance allowances for each year shall be allocated
at the earliest possible time after allocation regulations
are promulgated.
``(e) Exception.--This section shall not apply to
reductions that are--
``(1) made during the period beginning on May 1 and ending
on September 30 of a year by units that are subject to an
applicable implementation plan for a NOX SIP Call
State (as defined in section 461(3)) required under section
51.121 of title 40, Code of Federal Regulations (as in effect
for calendar year 2004); or
``(2) necessary to comply with subpart 1 of part C for the
applicable year.

``Subpart 3--Ozone Season NOX Budget Program

``SEC. 461. DEFINITIONS.

``For purposes of this subpart:
``(1) Ozone season.--The term `ozone season' means--
``(A) with regard to Connecticut, Delaware, the District of
Columbia, Maryland, Massachusetts, New Jersey, New York,
Pennsylvania, and Rhode Island, the period May 1 through
September 30 for each year starting in 2003; and
``(B) with regard to all other States, the period May 1
through September 30, for each year starting in 2004 and
thereafter.
``(2) Non-ozone season.--The term `non-ozone season'
means--
``(A) with regard to Connecticut, Delaware, the District of
Columbia, Maryland, Massachusetts, New Jersey, New York,
Pennsylvania, and Rhode Island, the period October 1 through
April 30; and
``(B) with regard to all other States, the period October
1, 2003, through May 29, 2004 and the period October 1
through April 30 beginning in the year 2004 and for each year
thereafter.
``(3) NOX sip call state.--The term
`NOX SIP Call State' means Connecticut, Delaware,
the District of Columbia, Illinois, Indiana, Kentucky,
Maryland, Massachusetts, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina,
Tennessee, Virginia, and West Virginia and the fine grid
portions of Alabama, Georgia, Michigan, and Missouri.
``(4) Fine grid portions of Alabama, Georgia, Michigan, and
Missouri.--The term `fine grid portions of Alabama, Georgia,
Michigan, and Missouri' means the areas in Alabama, Georgia,
Michigan, and Missouri subject to 40 CFR part 51.121 (2001).

``SEC. 462. GENERAL PROVISIONS.

``The provisions of sections 402 through 406 shall not
apply to this subpart.

[[Page S343]]

``SEC. 463. APPLICABLE IMPLEMENTATION PLAN.

``(a) SIPS.--Except as provided in subsection (b), the
applicable implementation plan for each NOX SIP
Call State shall be consistent with the requirements,
including the NOX SIP Call State's nitrogen oxides
budget and compliance supplement pool, in sections 51.121 and
51.122 of title 40, Code of Federal Regulations (as in effect
for calendar year 2004).
``(b) Requirements.--Notwithstanding any provision to the
contrary in section 51.121 or 51.122 of title 40, Code of
Federal Regulations (as in effect for calendar year 2004):
``(1) Implementation plan.--The applicable implementation
plan for each NOX SIP Call State shall require
full implementation of the required emission control measures
starting no later than the first ozone season.
``(2) Exemption.--Starting January 1, 2008--
``(A) the owners and operators of a boiler, combustion
turbine, or integrated gasification combined cycle plant
subject to emission reduction requirements or limitations
under part B, C, or D shall no longer be subject to the
requirements in a NOX SIP Call State's applicable
implementation plan that meet the requirements of subsection
(a) and paragraph (1); and
``(B) notwithstanding subparagraph (A), if the
Administrator determines, by December 31, 2007, that a
NOX SIP Call State's applicable implementation
plan meets the requirements of subsection (a) and paragraph
(1), such applicable implementation plan shall be deemed to
continue to meet such requirements.
``(c) Savings Provision.--Nothing in this section or
section 464 shall preclude or deny the right of any State or
political subdivision thereof to adopt or enforce any
regulation, requirement, limitation, or standard, relating to
a boiler, combustion turbine, or integrated gasification
combined cycle plant subject to emission reduction
requirements or limitations under part B, C, or D, that is
more stringent than a regulation, requirement, limitation, or
standard in effect under this section or under any other
provision of this Act.

``SEC. 464. TERMINATION OF FEDERAL ADMINISTRATION OF
NOX TRADING PROGRAM FOR EGUS.

``Starting January 1, 2008, with regard to any boiler,
combustion turbine, or integrated gasification combined cycle
plant subject to emission reduction requirements or
limitations under part B, C, or D, the Administrator shall
not administer any nitrogen oxides trading program included
in any NOX SIP Call State's applicable
implementation plan and meeting the requirements of section
463(a) and (b)(1).

``SEC. 465. CARRYFORWARD OF PRE-2008 NITROGEN OXIDES
ALLOWANCES.

``The Administrator shall promulgate regulations as
necessary to assure that the requirement to hold allowances
under section 452(a)(1) may be met using nitrogen oxides
allowances allocated for an ozone season before 2008 under a
nitrogen oxides trading program that the Administrator
administers, is included in a NOX SIP Call State's
applicable implementation plan, and meets the requirements of
section 463 (a) and (b)(1).

``SEC. 466. NON-OZONE SEASON VOLUNTARY ACTION CREDITS.

``An affected facility that voluntarily elects to operate
selective catalytic reduction (SCR) units, installed prior to
enactment of this title, during the non-ozone season under
section 461(2) shall be credited 0.5 allowances per ton of
NOX emissions avoided as a result of operating
these controls. The amount avoided will equal every ton of
nitrogen oxides reduction below the allowable emission rate.
The Administrator shall determine if any other existing
NOX emission control devices are generally
uneconomic to operate unless EGUs are provided incentives to
control NOX emissions during the non-ozone season.
If the Administrator finds that incentives using different
control equipment are necessary to make the operation of
these devices economic, the Administrator shall specify these
types of control devices and, for an affected facility with
these specified devices, installed prior to enactment of this
title, that voluntarily elects to operate these devices
during the nonozone season under section 461(2) shall be
credited 0.5 allowances per ton of emissions avoided as a
result of operating these controls. The Administrator shall
promulgate regulations as necessary to establish this
NOX allowance credit program. Failure of the
Administrator to promulgate implementing regulations prior to
voluntary reductions being undertaken by affected facilities
shall not in any manner reduce the number of allowances an
otherwise qualifying facility shall be credited upon
promulgation of the regulations.

``PART D--MERCURY EMISSIONS REDUCTIONS

``SEC. 471. DEFINITIONS.

``For purposes of this part:
``(1) Adjusted baseline heat input.--The term `adjusted
baseline heat input' with regard to a unit means the unit's
baseline heat input multiplied by--
``(A) 1.0, for the portion of the baseline heat input that
is the unit's average annual combustion of bituminous during
the years on which the unit's baseline heat input is based;
``(B) 3.0, for the portion of the baseline heat input that
is the unit's average annual combustion of lignite during the
years on which the unit's baseline heat input is based;
``(C) 1.25, for the portion of the baseline heat input that
is the unit's average annual combustion of subbituminous
during the years on which the unit's baseline heat input is
based; and
``(D) 1.0, for the portion of the baseline heat input that
is not covered by subparagraph (A), (B), or (C) or for the
entire baseline heat input if such baseline heat input is not
based on the unit's heat input in specified years.
``(2) Affected EGU.--The term `affected EGU' means--
``(A) for a unit serving a generator before the date of
enactment of the Clear Skies Act of 2005, a coal-fired unit
in a State serving a generator with a nameplate capacity of
greater than 25 megawatts that produced or produces
electricity for sale during 2002 or any year thereafter,
except for a cogeneration unit meets the criteria for
qualifying for a cogeneration facilities codified in section
292.205 of title 18 of the Code of Federal Regulations as
issued on April 1, 2002, during 2002 and each year
thereafter; and
``(B) for a unit commencing service of a generator on or
after the date of enactment of the Clear Skies Act of 2005, a
coal-fired unit in a State serving a generator that produces
electricity for sale during any year starting with the year
the unit commences service of a generator, except for a
cogeneration unit that meets the criteria for qualifying for
a cogeneration facilities codified in section 292.205 of
title 18 of the Code of Federal Regulations as issued on
April 1, 2002, during each year starting with the year the
unit commences service of a generator.
``(C) Exclusion.--Notwithstanding paragraphs (A) and (B),
the term `affected EGU' does not include--
``(i) a solid waste incineration unit subject to section
129;
``(ii) a unit for the treatment, storage, or disposal of
hazardous waste subject to section 3005 of the Solid Waste
Disposal Act; or
``(iii) a unit with de minimis emissions equal to or less
than 50 pounds on an average annual basis, as calculated by
the Administrator for a 3-year period using--

``(I) for calendar year 2010, the emissions data for a
facility for calendar years 2006 through 2009; and
``(II) for calendar year 2011 and subsequent calendar
years, the 3 most recent calendar years for which emissions
data are available.

``SEC. 472. APPLICABILITY.

``Starting January 1, 2010, it shall be unlawful for the
affected EGUs at a facility in a State to emit a total amount
of mercury during the year in excess of the number of mercury
allowances held for such facility for that year by the owner
or operator of the facility.

``SEC. 473. LIMITATIONS ON TOTAL EMISSIONS.

``For affected EGUs for 2010 and each year thereafter, the
Administrator shall allocate mercury allowances pursuant to
section 474.

TABLE A.--TOTAL MERCURY ALLOWANCES ALLOCATED FOR EGUS
------------------------------------------------------------------------
Mercury
Year allowances
allocated
------------------------------------------------------------------------
2010-2017.................................................. 1,088,000
2018 and thereafter........................................ 480,000
------------------------------------------------------------------------

``SEC. 474. EGU ALLOCATIONS.

``(a) In General.--Not later than 24 months before the
commencement date of the mercury allowance requirement of
section 472, the Administrator shall promulgate regulations
determining allocations of mercury allowances for 2010 and
thereafter for units at a facility that commence commercial
operation by and are affected EGUs as of date of enactment.
The regulations shall provide that the Administrator shall
allocate each year for such units an amount determined by
multiplying by 0.95 the allocation amount in section 473 by
the ratio of the total amount of the adjusted baseline heat
input of such units at the facility to the total amount of
adjusted baseline heat input of all affected EGUs.
``(b) New Facilities.--5 percent of the total amount of
nitrogen oxides allowances allocated each year under section
473 shall be allocated for units at a facility that commence
commercial operation and are affected EGUs after the date of
enactment. These units shall be allocated allowances for each
year by multiplying the allocation amount under section 473
by the ratio of the total amount of the adjusted baseline
heat input of such units at the facility to the total amount
of adjusted baseline heat input to all affected EGUs,
including those covered in subsection (a). However, the
regulations shall not allocate allowances to any affected
unit in excess of the product of the unit's baseline heat
input multiplied by the unit's allowable mercury emissions
rate, divided by 2000.
``(c) Allocation.--Allowances allocated under subsection
(b) shall be allocated to units on a first come basis
determined by date of unit commencement of construction,
provided that such unit actually commences commercial
operation. As such, allocations to units under subsection (b)
will not be reduced as a result of new units commencing
commercial operation.
``(d) Unallocated Allowances.--Allowances not allocated
under paragraph (2) shall be allocated to units in
subsections (a) and (b) on a pro rata basis.
``(e) Amount of Allowances.--For each year 2010 and
thereafter, if the Administrator has not promulgated the
regulations

[[Page S344]]

determining allocation under subsection (a)--
``(1) each affected unit shall comply with section 472 by
providing annual notice to the permitting authority. Such
notice shall indicate the amount of allowances the affected
unit believes it has for the relevant year and the amount of
mercury emissions for such year. The amount of mercury
emissions shall be determined using reasonable industry
accepted methods unless the Administrator has promulgated
applicable monitoring and alternative monitoring
requirements; and
``(2) upon promulgation of regulations under subsection (a)
determining the allocations for 2010 and thereafter, and
promulgating regulations under section 403(b) providing for
the transfer of mercury allowances and section 403(c)
establishing an Allowance Transfer System for mercury
allowances, each unit's emissions shall be compared to and
reconcile with its actual allocations under the promulgated
regulation. Each unit will have nine (9) months to submit
allowances to the Administrator, without recompense, for any
allowances shortfall. The submitted allowances may have been
obtained and held by any mechanism consistent with the Act
including, but not limited to, direct sale.

``SEC. 475. MERCURY EARLY ACTION REDUCTION CREDITS.

``(a) In General.--The Administrator shall promulgate
regulations within 18 months authorizing the allocation of
mercury allowances to units designated under this section
that install or modify pollution control equipment or
combustion technology improvements identified in such
regulations after the date of enactment of this section and
prior to January 1, 2010.
``(b) Nonallocation of Allowances.--No allowances shall be
allocated under this paragraph for emissions reductions:
attributable to pollution control equipment or combustion
technology improvements that were operational or under
construction at any time prior to the date of enactment of
this section; attributable to fuel switching; or required
under any Federal regulation.
``(c) Amount of Allowances.--The allowances allocated to
any unit under this paragraph shall be in addition to the
allowances allocated under section 474 and shall be allocated
in an amount equal to 1 allowance of mercury for each 1.05
ounces of reduction in emissions of mercury achieved by the
pollution control equipment or combustion technology
improvements starting with the year in which the equipment or
improvement is implemented. The early compliance reduction
allowances available under this section shall be used and
tradable in the same manner as allowances under section 474.
``(d) Early Compliance Allowance Credit.--The Administrator
shall promulgate regulations as necessary to ensure affected
units receive early compliance allowance credit. Early
compliance allowances shall be allocated at the end of an
early compliance year. Should the Administrator fail to
promulgate allocation regulations by the end of a given year,
early compliance allowances for each year shall be allocated
at the earliest possible time after allocation regulations
are promulgated.

``PART E--NATIONAL EMISSION STANDARDS; RESEARCH, ENVIRONMENTAL
ACCOUNTABILITY; MAJOR SOURCE PRECONSTRUCTION REVIEW AND BEST AVAILABLE
RETROFIT CONTROL TECHNOLOGY REQUIREMENTS

``SEC. 481. NATIONAL EMISSION STANDARDS FOR AFFECTED UNITS.

``(a) Definitions.--For purposes of this section:
``(1) Commenced.--The term `commenced', with regard to
construction, means that an owner or operator has either
undertaken a continuous program of construction or has
entered into a contractual obligation to undertake and
complete, within a reasonable time, a continuous program of
construction. For boilers and integrated gasification
combined cycle plants, this term does not include undertaking
such a program or entering into such an obligation more than
36 months prior to the date on which the unit begins
operation. For combustion turbines, this term does not
include undertaking such a program or entering into such an
obligation more than 18 months prior to the date on which the
unit begins operation.
``(2) Construction.--The term `construction' means
fabrication, erection, or installation of an affected unit.
``(3) Affected unit.--The term `affected unit' means any
unit that is subject to emission limitations under subpart 2
of part B, subpart 2 of part C, or part D.
``(4) Existing affected unit.--The term `existing affected
unit' means any affected unit that is not a new affected
unit.
``(5) New affected unit.--The term `new affected unit;'
means any affected unit, the construction or reconstruction
of which is commenced after the date of enactment of the
Clear Skies Act of 2005, except that for the purpose of any
revision of a standard pursuant to subsection (e), `new
affected unit' means any affected unit, the construction or
reconstruction of which is commenced after the publication of
regulations (or, if earlier, proposed regulations)
prescribing a standard under this section that will apply to
such unit.
``(6) Reconstruction.--The term `reconstruction' means the
replacement of components of a unit to such an extent that--
``(A) the fixed capital cost of the new components exceeds
50 percent of the fixed capital cost that would be required
to construct a comparable entirely new unit; and
``(B) it is technologically and economically feasible to
meet the applicable standards set forth in this section.
``(b) Emission Standards.--
``(1) In general.--No later than 12 months after the date
of enactment of the Clear Skies Act of 2005, the
Administrator shall promulgate regulations prescribing the
standards in subsections (c) through (d) for the specified
affected units and establishing requirements to ensure
compliance with these standards, including monitoring,
recordkeeping, and reporting requirements.
``(2) Monitoring.--
``(A) In general.--The owner or operator of any affected
unit subject to the standards for sulfur dioxide, nitrogen
oxides, or mercury under this section shall meet the
requirements of section 405, except that, where two or more
units utilize a single stack, separate monitoring shall be
required for each affected unit for the pollutants for which
the unit is subject to such standards.
``(B) Requirements.--The Administrator shall, by
regulation, require--
``(i) the owner or operator of any affected unit subject to
the standards for sulfur dioxide, nitrogen oxides, or mercury
under this section to--

``(I) install and operate CEMS for monitoring output,
including electricity and useful thermal energy, on the
affected unit and to quality assure the data; and
``(II) comply with recordkeeping and reporting
requirements, including provisions for reporting output data
in megawatt hours.

``(ii) the owner or operator of any affected unit subject
to the standards for particulate matter under this section
to--

``(I) install and operate CEMS for monitoring particulate
matter on the affected unit and to quality assure the data;
``(II) comply with recordkeeping and reporting
requirements; and
``(III) comply with alternative monitoring, quality
assurance, recordkeeping, and reporting requirements for any
period of time for which the Administrator determines that
CEMS with appropriate vendor guarantees are not commercially
available for particulate matter.

``(3) Compliance.--For boilers, integrated gasification
combined cycle plants, and coal fired or gas-fired combustion
turbines the Administrator shall require that the owner or
operator demonstrate compliance with the standards daily,
using a 30-day rolling average, except that in the case of
mercury, the compliance period shall be the calendar year.
For combustion turbines that are oil-fired the Administrator
shall require that the owner or operator demonstrate
compliance with the standards hourly, using a 4-hour rolling
average.
``(c) Boilers and Integrated Gasification Combined Cycle
Plants.--
``(1) In general.--After the effective date of standards
promulgated under subsection (b), no owner or operator shall
cause any boiler or integrated gasification combined cycle
plant that is a new affected unit to discharge into the
atmosphere any gases which contain--
``(A) sulfur dioxide in excess of 2.0 lb/MWh;
``(B) nitrogen oxides in excess of 1.0 lb/MWh;
``(C) particulate matter in excess of 0.20 lb/MWh; or
``(D) if the unit is coal-fired, mercury in excess of 0.015
lb/GWh, unless--
``(i) mercury emissions from the unit, determined assuming
no use of on-site or off-site pre-combustion treatment of
coal and no use of technology that captures mercury, are
reduced by 80 percent;
``(ii) flue gas desulfurization (FGD) and selective
catalytic reduction (SCR) are applied to the unit; or
``(iii) a technology is applied to the unit and the
permitting authority determines that the technology is
equivalent in terms of mercury capture to the application of
FGD and SCR.
``(2) Exemption.--Notwithstanding subparagraph (1)(D),
integrated gasification combined cycle plants with a combined
capacity of less than 5 GW are exempt from the mercury
requirement under subparagraph (1)(D) if they are constructed
as part of a demonstration project under the Secretary of
Energy that will include a demonstration of removal of
significant amounts of mercury as determined by the Secretary
of Energy in conjunction with the Administrator as part of
the solicitation process.
``(3) Discharges.--After the effective date of standards
promulgated under subsection (b), no owner or operator shall
cause any oil-fired boiler that is an existing affected unit
to discharge into the atmosphere any gases which contain
particulate matter in excess of 0.30 lb/MWh.
``(d) Combustion Turbines.--
``(1) Gas-fired combustion turbines.--After the effective
date of standards promulgated under subsection (b), no owner
or operator shall cause any gas-fired combustion turbine that
is a new affected unit to discharge into the atmosphere any
gases which contain nitrogen oxides in excess of--
``(A) 0.56 lb/MWh (15 ppm at 15 percent oxygen), if the
unit is a simple cycle combustion turbine;
``(B) 0.084 lb/MWh (3.5 ppm at 15 percent oxygen), if the
unit is not a simple cycle combustion turbine and either uses
add-on controls or is located within 50 km of a class I area;
or
``(C) 0.21 lb/MWh (9 ppm at 15 percent oxygen), if the unit
is not a simple cycle turbine

[[Page S345]]

and neither uses add-on controls nor is located within 50 km
of a class I area.
``(2) Coal-fired combustion turbines.--After the effective
date of standards promulgated under subsection (b), no owner
or operator shall cause any coal-fired combustion turbine
that is a new affected unit to discharge into the atmosphere
any gases which contain sulfur dioxide, nitrogen oxides,
particulate matter, or mercury in excess of the emission
limits under subparagraphs (c)(1) (A) through (D).
``(3) Combustion turbines that are not gas-fired or coal-
fired.--After the effective date of standards promulgated
under subsection (b), no owner or operator shall cause any
combustion turbine that is not gas-fired or coal-fired and
that is a new affected unit to discharge into the atmosphere
any gases which contain--
``(A) sulfur dioxide in excess of 2.0 lb/MWh;
``(B) nitrogen oxides in excess of--
``(i) 0.289 lb/MWh (12 ppm at 15 percent oxygen), if the
unit is not a simple cycle combustion turbine, is dual-fuel
capable, and uses add-on controls; or is not a simple cycle
combustion turbine and is located within 50 km of a class I
area; and
``(ii) 1.01 lb/MWh (42 ppm at 15 percent oxygen), if the
unit is a simple cycle combustion turbine; is not a simple
cycle combustion turbine and is not dual-fuel capable; or is
not a simple cycle combustion turbine, is dual-fuel capable,
and does not use add-on controls.
``(C) particulate matter in excess of 0.20 lb/MWh.
``(e) Periodic Review and Revision.--
``(1) In general.--The Administrator shall, at least every
eight years following the promulgation of standards under
subsection (b), review and, if appropriate, revise such
standards to reflect the degree of emission limitation
demonstrated by substantial evidence to be achievable through
the application of the best system of emission reduction
which (taking into account the cost of achieving such
reduction and any nonair quality health and environmental
impacts and energy requirements). When implementation and
enforcement of any requirement of this Act indicate that
emission limitations and percent reductions beyond those
required by the standards promulgated under this section are
achieved in practice, the Administrator shall, when revising
standards promulgated under this section, consider the
emission limitations and percent reductions achieved in
practice.
``(2) Exception.--Notwithstanding the requirements of
paragraph (1) the Administrator need not review any standard
promulgated under subsection (b) if the Administrator
determines that such review is not appropriate in light of
readily available information on the efficacy of such
standard.
``(f) Effective Date.--The standard promulgated pursuant to
this section shall become effective upon promulgation.
``(g) Delegation.--
``(1) In general.--Each State may develop and submit to the
Administration a procedure for implementing and enforcing
standards promulgated under this section for affected units
located in such State. If the Administrator finds the State
procedure is adequate, the Administrator shall delegate to
such State any authority the Administrator has under this Act
to implement and enforce such standards.
``(2) Enforcement.--Nothing in this subsection shall
prohibit the Administrator from enforcing any applicable
standard under this section.
``(h) Violations.--After the effective date of standards
promulgated under this section, it shall be unlawful for any
owner or operator of any affected unit to operate such unit
in violation of any standard, established by this section
applicable to such unit.
``(i) Coordination With Other Authorities.--For purposes of
sections III(e), 113, 114, 116, 120, 303, 304, 307, and other
provisions for the enforcement of this Act, each standard
established pursuant to this section shall be treated in the
same manner as a standard of performance under section 111,
and each affected unit subject to standards under this
section shall be treated in the same manner as a stationary
source under section 111.
``(j) State Authority.--Nothing in this section shall
preclude or deny the right of any State or political
subdivision thereof to adopt or enforce any regulation,
requirement, limitation, or standard relating to affected
units, or other EGUs, that is more stringent than a
regulation, requirement, limitation, or standard in effect
under this section or under any other provision of this Act.
``(k) Other Authority Under This Act.--Nothing in this
section shall diminish the authority of the Administrator or
a State to establish any other requirements applicable to
affected units under any other authority of law, including
the authority to establish for any air pollutant a national
ambient air quality standard, except that no new affected
unit subject to standards under this section shall be subject
to standards under section 111 of this Act.

``SEC. 482. RESEARCH, ENVIRONMENTAL MONITORING, AND
ASSESSMENT.

``(a) Purposes.--The Administrator, in collaboration with
the Secretary of Energy and the Secretary of the Interior,
shall conduct a comprehensive program of research,
environmental monitoring, and assessment to enhance
scientific understanding of the human health and
environmental effects of particulate matter and mercury and
to demonstrate the efficacy of emission reductions under this
title for purposes of reporting to Congress under (e)(2). The
purposes of such a program are to--
``(1) expand current research and knowledge of the
contribution of emissions from electricity generation to
exposure and health effects associated with particulate
matter and mercury;
``(2) enhance current research and development of promising
multi-pollutant control strategies and CEMS for mercury;
``(3) produce peer-reviewed scientific and technology
information;
``(4) improve environmental monitoring and assessment of
sulfur dioxide, nitrogen oxides and mercury, and their
transformation products, to track changes in human health and
the environment attributable to emission reductions under
this title; and
``(5) periodically provide peer-reviewed reports on the
costs, benefits, and effectiveness of emission reductions
achieved under this title.
``(b) Research.--The Administrator shall enhance planned
and ongoing laboratory and field research and modeling
analyses, and conduct new research and analyses to produce
peer-reviewed information concerning the human health and
environmental effects of mercury and particulate matter and
the contribution of United States electrical generating units
to those effects. Such information shall be included in the
report under subsection (d). In addition, such research and
analyses shall--
``(1) improve understanding of the rates and processes
governing chemical and physical transformations of mercury in
the atmosphere, including speciation of emissions from
electricity generation and the transport of these species;
``(2) improve understanding of the contribution of mercury
emissions from electricity generation to mercury in fish and
other biota, including--
``(A) the response of and contribution to mercury in the
biota owing to atmospheric deposition of mercury from U.S.
electricity generation on both local and regional scales;
``(B) long-term contributions of mercury from U.S.
electricity generation on mercury accumulations in
ecosystems, and the effects of mercury reductions in that
sector on the environment and public health;
``(C) the role and contribution of mercury, from U.S.
electricity generating facilities and anthropogenic and
natural sources to fish contamination and to human exposure,
particularly with respect to sensitive populations;
``(D) the contribution of U.S. electricity generation to
population exposure to mercury in freshwater fish and seafood
and quantification of linkages between U.S. mercury emissions
and domestic mercury exposure and its health effects; and
``(E) the contribution of mercury from U.S. electricity
generation in the context of other domestic and international
sources of mercury, including transport of global
anthropogenic and natural background levels;
``(3) improve understanding of the health effects of fine
particulate matter components related to electricity
generation emissions (as distinct from other fine particle
fractions and indoor air exposures) and the contribution of
U.S. electrical generating units to those effects including--
``(A) the chronic effects of fine particulate matter from
electricity generation in sensitive population groups; and
``(B) personal exposure to fine particulate matter from
electricity generation; and
``(4) improve understanding, by way of a review of the
literature, of methods for valuing human health and
environmental benefits associated with fine particulate
matter and mercury.
``(c) Innovative Control Technologies.--The Administrator
shall collaborate with the Secretary of Energy to enhance
research and development, and conduct new research that
facilitates research into and development of innovative
technologies to control sulfur dioxide, nitrogen oxides,
mercury, and particulate matter at a lower cost than existing
technologies. Such research and development shall provide
updated information on the cost and feasibility of
technologies. Such information shall be included in the
report under subsection (d). In addition, the research and
development shall--
``(1) upgrade cost and performance models to include
results from ongoing and future electricity generation and
pollution control demonstrations by the Administrator and the
Secretary of Energy;
``(2) evaluate the overall environmental implications of
the various technologies tested including the impact on the
characteristics of coal combustion residues;
``(3) evaluate the impact of the use of selective catalytic
reduction on mercury emissions from the combustion of all
coal types;
``(4) evaluate the potential of integrated gasification
combined cycle to adequately control mercury;
``(5) expand current programs by the Administrator to
conduct research and promote, lower cost CEMS capable of
providing real-time measurements of both speciated and total
mercury and integrated compact CEMS that provide cost-
effective real-time measurements of sulfur dioxide, nitrogen
oxides, and mercury;
``(6) expand lab- and pilot-scale mercury and multi-
pollutant control programs by the Secretary of Energy and the
Administrator, including development of enhanced sorbents and
scrubbers for use on all coal types;

[[Page S346]]

``(7) characterize mercury emissions from low-rank coals,
for a range of traditional control technologies, like
scrubbers and selective catalytic reduction; and
``(8) improve low cost combustion modifications and
controls for dry-bottom boilers.
``(d) Environmental Accountability.--
``(1) Monitoring and assessment.--The Administrator shall
conduct a program of environmental monitoring and assessment
to track on a continuing basis, changes in human health and
the environment attributable to the emission reductions
required under this title. Such a program shall--
``(A) develop and employ methods to routinely monitor,
collect, and compile data on the status and trends of mercury
and its transformation products in emissions from affected
facilities, atmospheric deposition, surface water quality,
and biological systems. Emphasis shall be placed on those
methods that--
``(i) improve the ability to routinely measure mercury in
dry deposition processes;
``(ii) improve understanding of the spatial and temporal
distribution of mercury deposition in order to determine
source-receptor relationships and patterns of long-range,
regional, and local deposition;
``(iii) improve understanding of aggregate exposures and
additive effects of methylmercury and other pollutants; and
``(iv) improve understanding of the effectiveness and cost
of mercury emissions controls;
``(B) modernize and enhance the national air quality and
atmospheric deposition monitoring networks in order to cost-
effectively expand and integrate, where appropriate,
monitoring capabilities for sulfur, nitrogen, and mercury to
meet the assessment and reporting requirements of this
section;
``(C) perform and enhance long-term monitoring of sulfur,
nitrogen, and mercury, and parameters related to
acidification, nutrient enrichment, and mercury
bioaccumulation in freshwater and marine biota;
``(D) maintain and upgrade models that describe the
interactions of emissions with the atmosphere and resulting
air quality implications and models that describe the
response of ecosystems to atmospheric deposition; and
``(E) assess indicators of ecosystems health related to
sulfur, nitrogen, and mercury, including characterization of
the causes and effects of episodic exposure to air pollutants
and evaluation of recovery.
``(2) Reporting requirements.--Not later than January 1,
2008, and not later than every 4 years thereafter, the
Administrator shall provide a peer reviewed report to the
Congress on the costs, benefits, and effectiveness of
emission reduction programs under this title.
``(A) The report under this subparagraph shall address the
relative contribution of emission reductions from U.S.
electricity generation under this title compared to the
emission reductions achieved under other titles of the Clean
Air Act with respect to--
``(i) actual and projected emissions of sulfur dioxide,
nitrogen oxides, and mercury;
``(ii) average ambient concentrations of sulfur dioxide and
nitrogen oxides transformation products, related air quality
parameters, and indicators of reductions in human exposure;
``(iii) status and trends in total atmospheric deposition
of sulfur, nitrogen, and mercury, including regional
estimates of total atmospheric deposition;
``(iv) status and trends in visibility;
``(v) status of terrestrial and aquatic ecosystems
(including forests and forested watersheds, streams, lakes,
rivers, estuaries, and nearcoastal waters);
``(vi) status of mercury and its transformation products in
fish;
``(vii) causes and effects of atmospheric deposition,
including changes in surface water quality, forest and soil
conditions;
``(viii) occurrence and effects of coastal eutrophication
and episodic acidification, particularly with respect to high
elevation watersheds; and
``(ix) reduction in atmospheric deposition rates that
should be achieved to prevent or reduce adverse ecological
effects.
``(B) The report under this subparagraph shall address the
relative contribution of the United States to world-wide
emissions as well as a comparison of the stringency of fossil
fuel-fired requirements under the Act to other countries.

``SEC. 483. MAJOR SOURCE PRECONSTRUCTION REVIEW REQUIREMENTS
AND BEST AVAILABLE RETROFIT CONTROL TECHNOLOGY
REQUIREMENTS; APPLICABILITY TO AFFECTED UNITS.

``(a) Major Source Exemption.--An affected unit shall be
considered neither a major emitting facility or major
stationary source nor a part of a major emitting facility or
major stationary source, for purposes of compliance with the
requirements of parts C and part D of title I, and shall not
otherwise be subject to the requirements of section 169A or
169B, for a period of 20 years after the date of enactment of
this section. This applicability provision only applies to
affected units that are either subject to the performance
standards of section 481 or meet the following requirements
within 3 years after the date of enactment of the Clear Skies
Act of 2005:
``(1) The owner or operator of the affected unit properly
operates, maintains and repairs pollution control equipment
to limit emissions of particulate matter, or the owner or
operator of the affected unit is subject to an enforceable
permit issued pursuant to title V or a permit program
approved or promulgated as part of an applicable
implementation plan to limit the emissions of particulate
matter from the affected unit to 0.03 lb/mmBtu within eight
years after the date of enactment of the Clear Skies Act of
2005, and
``(2) The owner or operator of the affected unit uses good
combustion practices to minimize emissions of carbon
monoxide. Good combustion practices may be accomplished
through control technology, combustion technology
improvements, or workplace practices.
``(b) Class I Area Protections.--Notwithstanding the
provisions of subsection (a), an affected unit located within
50 km of a Class I area on which construction commences after
the date of enactment of the Clear Skies Act of 2005 is
subject to those provisions under part C of title I
pertaining to the review of a new or reconstructed major
stationary source's impact on a Class I area.
``(c) Preconstruction Requirements.--Each State shall
include in its plan under section 110, as program to provide
for the regulation of the construction of an affected unit
that ensures that the following requirements are met prior to
the commencement of construction of an affected unit--
``(1) in an area designated as attainment or unclassifiable
under section 107(d), the owner or operator of the affected
unit must demonstrate to the State that the emissions
increase from the construction or operation of such unit will
not cause, or contribute to, air pollution in excess of any
national ambient air quality standard;
``(2) in an area designated as nonattainment under section
107(d), the State must determine that the emissions increase
from the construction or operation of such unit will not
interfere with any program to assure that the national
ambient air quality standards are achieved provided that
interference with any program will be deemed not to occur,
with respect to each nonattainment area located wholly or
partially within the State, if on the date of submission of a
complete permit application and throughout a continuous
period of three years immediately preceding such date, the
nonattainment area was in full compliance with all
requirements of this Act, including but not limited to
requirements for State Implementation Plans;
``(3) for a reconstructed unit, prior to beginning
operation, the unit must comply with either the performance
standards of section 481 or best available control technology
as defined in part C of title I for the pollutants whose
hourly emissions will increase at the unit's maximum
capacity; and
``(4) the State must provide for an opportunity for
interested persons to comment on the Class I area protections
and preconstruction requirements as set forth in this
section.
``(d) Definitions.--For purposes of this section:
``(1) Affected unit.--The term `affected unit' means any
unit that is subject to emission limitations under subpart 2
of part B, subpart 2 of part C, or part D.
``(2) Construction.--The term `construction' includes the
construction of a new affected unit and the modification of
any affected unit.
``(3) Modification.--The term `modification' means any
physical change in, or change in the method of operation of,
an affected unit that increases the maximum hourly emissions
of any pollutant regulated under this Act above the maximum
hourly emissions achievable at that unit during the five
years prior to the change or that results in the emission of
any pollutant regulated under this Act and not previously
emitted.
``(e) Savings Clause.--Nothing in this section shall
preclude or deny the right of any State or political
subdivision thereof to adopt to enforce any regulation,
requirement, limitation, or standard relating to affected
units that is more stringent than a regulation, requirement,
limitation, or standard in effect under this section or under
any other provision of this Act.''.

SEC. 3. OTHER AMENDMENTS.

(a) Title I.--Title I of the Clean Air Act is amended as
follows:
(1) In section 103 by repealing subparagraphs (E) and (F).
(2) In section 107(d)(1)(A)--
(i) by striking ``or'' at the end of clause (ii);
(ii) by striking the period at the end of clause (iii) and
inserting ``, or''; and
(iii) by adding at the end the following:
``(iv) notwithstanding clauses (i) through (iii) and
subsection (d)(3), if requested by a State, an area may be
redesignated as transitional for the PM 2.5 national primary
or secondary ambient air quality standards or the 8-hour
ozone national primary or secondary ambient air quality
standard if--

``(I) the Administrator has performed air quality modeling
and, in the case of an area that needs additional local
control measures, the State has performed supplemental air
quality modeling, demonstrating that the area will attain the
applicable standard or standards not later than December 31,
2015;
``(II) such modeling demonstration and all necessary local
controls have been approved into the State implementation
plan not later than 1 year after the date of enactment of the
Clear Skies Act of 2005; and
``(III) the redesignation is made not later than 180 days
after the date of that approval.''

[[Page S347]]

(3) In section 110 as follows:
(A) By amending clause (i) of subsection (a)(2)(D) by
inserting ``except as provided in subsection (q),'' before
the word ``prohibiting''.
(B) By adding the following new subsections at the end
thereof:
``(q) Review of Certain Plans.--
``(1) In general.--The Administrator shall, in reviewing,
under subsection (a)(2)(D)(i), any plan with respect to
affected units, within the meaning of section 126(d)(l)--
``(A) consider, among other relevant factors, emissions
reductions required to occur by the attainment date or dates
of any relevant nonattainment areas in the other State or
States;
``(B) not require submission of plan provisions mandating
emissions reductions from such affected units, unless the
Administrator determines that--
``(i) emissions from such units may be reduced at least as
cost-effectively as emissions reductions in the State or each
other State from each other principal category of sources of
the relevant pollutant, pollutants, or pre-cursors thereof,
including industrial boilers, on-road mobile sources, and
off-road mobile sources, and any other category of sources
that the Administrator may identify, and
``(ii) reductions in such emissions will improve air
quality in the other State's or States' nonattainment areas
at least as cost-effectively as reductions in emissions in
the State or each other State from each other principal
category of sources of the relevant pollutant, pollutants, or
pre-cursors thereof, to the maximum extent that a methodology
is reasonably available to make such a determination;
``(C) develop an appropriate peer reviewed methodology for
making determinations under subparagraph (B) by December 31,
2006; and
``(D) not require submission of plan provisions subjecting
affected units, within the meaning of section 126(d)(1), to
requirements with an effective date prior to December 31,
2014.
``(2) Proximity.--In making the determination under clause
(ii) of subparagraph (B) of paragraph (1), the Administrator
will use the best available peer-reviewed models and
methodology that consider the proximity of the source or
sources to the other State or States and incorporate other
source characteristics.
``(3) Effect on regulations.--Nothing in paragraph (1)
shall be interpreted to require revisions to the provisions
of 40 CFR parts 51.121 and 51.122 (2001).
``(r) Transitional Areas.--
``(1) Maintenance.--
``(A) Submission of inventory and analysis.--By December
31, 2011, each area designated as transitional pursuant to
section 107(d)(1) shall submit an updated emission inventory
and an analysis of whether growth in emissions, including
growth in vehicle miles traveled, will interfere with
attainment by December 31, 2014.
``(B) Review.--No later than December 31, 2011, the
Administrator shall review each transitional area's
maintenance analysis, and, if the Administrator determines
that growth in emissions will interfere with attainment by
December 31, 2014, the Administrator shall consult with the
State and determine what action, if any, is necessary to
assure that attainment will be achieved by December 31, 2014.
``(2) Prevention of significant deterioration.--Each area
designated as transitional pursuant to section 107(d)(1)
shall be treated as an attainment or unclassifiable area for
purposes of the prevention of significant deterioration
provisions of part C of this title.
``(3) Consequences of failure to attain by 2015.--No later
than June 30, 2016, the Administrator shall determine whether
each area designated as transitional for the 8-hour ozone
standard or for the PM 2.5 standard has attained that
standard. If the Administrator determines that a transitional
area has not attained the standard, the area shall be
redesignated as nonattainment within one year of the
determination and the State shall be required to submit a
State implementation plan revision satisfying the provisions
of section 172 within three years of redesignation as
nonattainment.''.
(4) In section 111(b)(1) by adding the following new
subparagraph (C) after subparagraph (B):
``(C) No standards of performance promulgated under this
section shall apply to units subject to regulations
promulgated pursuant to section 481.''.
(5) In section 112:
(A) By amending paragraph (1) of subsection (c) to read as
follows:
``(1) In general.--Not later than 12 months after November
15, 1990, the Administrator shall publish, and shall from
time to time, but not less often than every eight years,
revise, if appropriate, in response to public comment or new
information, a list of all categories and subcategories of
major sources and area sources (listed under paragraph (3))
of the air pollutants listed pursuant to subsection (b).
Electric utility steam generating units not subject to
section 3005 of the Solid Waste Disposal Act shall not be
included in any category or subcategory listed under this
subsection. The Administrator shall have the authority to
regulate the emission of hazardous air pollutants listed
under section 112(b), other than mercury compounds, by
electric utility steam generating units, provided that any
determination shall be based on public health concerns and,
on an individual source basis shall: consider the effects of
emissions controls installed or anticipated to be installed
in order to meet other emission reduction requirements under
this Act by 2018; and, be based on a peer reviewed study with
notice and opportunity to comment, to be completed not before
January 2015. Any such regulations shall be promulgated
within, and shall not take effect before, the date eight
years after the commencement date of the requirements set
forth in section 472. To the extent practicable, the
categories and subcategories listed under this subsection
shall be consistent with the list of source categories
established pursuant to section 111 and part C. Nothing in
the preceding sentence limits the Administrator's authority
to establish subcategories under this section, as
appropriate.''.
(B) By amending subparagraph (A) of subsection (n)(1) to
read as follows:
``(A) Study.--The Administrator shall perform a study of
the hazards to public health reasonably anticipated to occur
as a result of emissions by electric utility steam generating
units of pollutants listed under subsection (b) after
imposition of the requirements of this Act. The Administrator
shall report the results of this study to the Congress within
three years after November 15, 1990.''
(6) Section 126 is amended as follows:
(A) By replacing ``section 110(a)(2)(D)(ii) or this
section'' in subsection (b) with ``section 110(a)(2)(D)(i)''.
(B) In the language at end of subsection (c) by striking
``section 110(a)(2)(D)(ii)'' and inserting ``section
110(a)(2)(D)(i)'' and deleting the last sentence.
(D) By adding at the end the following:
``(d) Definition of Affected Unit.--
``(1) In general.--For purposes of this subsection, the
term `affected unit' means any unit that is subject to
emission limitations under subpart 2 of part B, subpart 2 of
part C, or part D, or is a designated unit under section 407.
``(2) Finding for affected units.--To the extent that any
petition submitted under subsection (b) after the date of
enactment of the Clear Skies Act of 2005 seeks a finding for
any affected unit, then, notwithstanding any provision in
subsections (a) through (c) to the contrary:
``(A) In determining whether to make a finding under
subsection (b) for any affected unit, the Administrator shall
consider, among other relevant factors, emissions reductions
required to occur by the attainment date or dates of any
relevant nonattainment areas in the petitioning State or
political subdivision.
``(B) The Administrator may not determine that affected
units emit, or would emit, any air pollutant in violation of
the prohibition of section 110(a)(2)(D)(i) unless that
Administrator determines that--
``(i) such emissions may be reduced at least as cost-
effectively as emissions from each other principal category
of sources of sulfur dioxide or nitrogen oxides, including
industrial boilers, on-road mobile sources, and off-road
mobile sources, and any other category of sources that the
Administrator may identify; and
``(ii) reductions in such emissions will improve air
quality in the petitioning State's nonattainment area or
areas at least as cost-effectively as reductions in emissions
from each other principal category of sources of sulfur
dioxide or nitrogen oxides to the maximum extent that a
methodology is reasonably available to make such a
determination.
In making the determination under clause (ii), the
Administrator shall use the best available peer-reviewed
models and methodology that consider the proximity of the
source or sources to the petitioning State or political
subdivision and incorporate other sources characteristics.
``(C) The Administrator shall develop an appropriate peer
reviewed methodology for making determinations under
subparagraph (B) by December 31, 2006.
``(D) The Administrator shall not make any findings with
respect to an affected unit under this section prior to
December 1, 2011. For any petition submitted prior to January
1, 2010, the Administrator shall make a finding or deny the
petition by the December 31, 2011.
``(E) The Administrator, by rulemaking, shall extend the
compliance and implementation deadlines in subsection (c) to
the extent necessary to assure that no affected unit shall be
subject to any such deadline prior to January 1, 2014.''.
(b) Title III.--Section 307(d)(1)(G) of title III of the
Clean Air Act is amended to read as follows:
``(G) the promulgation or revision of any regulation under
title IV,''.
(c) Noise Pollution.--Title IV of the Clean Air Act
(relating to noise pollution) (42 U.S.C. 7641 et seq.) is
redesignated as title VII and amended by renumbering sections
401 through 403 as sections 701 through 703, respectively,
and conforming all cross-references thereto accordingly.
(d) Section 406.--Title IV of the Clean Air Act Amendments
of 1990 (relating to acid deposition control) is amended by
repealing section 406 (industrial sulfur dioxide emissions).
(e) Monitoring.--Section 821 (a) of title VIII of the Clean
Air Act Amendments of 1990 (miscellaneous provisions) is
amended to read as follows:
``(a) Monitoring.--The Administrator shall promulgate
regulations within eighteen

[[Page S348]]

months after November 15, 1990, to require that all affected
sources subject to subpart 1 of part B of title IV of the
Clean Air Act as of December 31, 2009, shall also monitor
carbon dioxide emissions according to the same timetable as
in section 405(b). The regulations shall require that such
data be reported to the Administrator. The provisions of
section 405(e) of title IV of the Clean Air Act shall apply
for purposes of this section in the same manner and to the
same extent as such provision applies to the monitoring and
data referred to in section 405. The Administrator shall
implement this subsection under 40 CFR part 75 (2002),
amended as appropriate by the Administrator.''.
______

By Mr. SMITH (for himself and Mrs. Lincoln):
S. 132. A bill to amend the Internal Revenue Code of 1986 to allow a
deduction for premiums on mortgage insurance; to the Committee on
Finance.
Mr. SMITH. Mr. President, today, I am reintroducing important
legislation to help more Americans realize the dream of homeownership.
The Mortgage Insurance Fairness Act would make mortgage insurance
payment premiums tax deductible. In doing so, it will help more lower-
income Americans purchase homes for their families.
It is widely recognized that homeownership helps to create stable and
safe communities. As such, the Federal Government has long sought to
increase homeownership. President Bush has announced a goal of 5.5
million new homeowners by the year 2010. Achieving that goal requires
helping those that have typically had difficulty purchasing homes--
young people, low-income families, members of minority groups.
Government and private mortgage insurance programs help first-time,
low-income and veteran borrowers afford to purchase homes. The Veterans
Affairs (VA), Federal Housing Authority (FHA), Regional Housing
Authority (RHA) and Private Mortgage Insurance (PMI) programs allow
buyers to make a down payment of 3 percent or less of the appraised
value. For many lower- and middle-income families, mortgage insurance
makes it possible for them to buy their first home.
In Oregon, more than 137,000 families held mortgages with either FHA
or private mortgage insurance in 2002. In 2001, 62 percent of the
insured home purchases in Oregon were low-income borrowers, and insured
mortgages covered 25 percent of all home purchase loans that year.
Nationwide, mortgage insurance covers over half of home loans made to
African American and Hispanic borrowers. Similarly, over half of the
loans to borrowers with incomes below the median income were covered by
mortgage insurance. The people who use mortgage insurance are regular
working families who live in every community throughout the country. In
all, more than twelve million American families pay mortgage insurance.
Currently, these borrowers are not allowed to deduct the cost of
their mortgage insurance from their Federal taxes. If these payments
were made deductible, the cost of homeownership would go down and more
families would be able to buy homes. It is estimated that the Mortgage
Insurance Fairness Act would increase the number of homeowners by
300,000 per year.
Extending tax deductions to mortgage insurance will help to make the
dream of owning a home attainable for more Americans. We came very
close to enacting this legislation last year when it was included in
the Senate version of the JOBS Act. Unfortunately, in the end we were
not able to complete action on this bill. I look forward to again
working with my colleagues to see this legislation is passed and signed
into law. I thank you for the opportunity to speak today, and I urge my
colleagues to support this important bi-partisan legislation. I ask
unanimous consent that the text of this legislation be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 132

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Mortgage Insurance Fairness
Act''.

SEC. 2. PREMIUMS FOR MORTGAGE INSURANCE.

(a) In General.--Paragraph (3) of section 163(h) of the
Internal Revenue Code of 1986 (relating to qualified
residence interest) is amended by adding after subparagraph
(D) the following new subparagraph:
``(E) Mortgage insurance premiums treated as interest.--
``(i) In general.--Premiums paid or accrued for qualified
mortgage insurance by a taxpayer during the taxable year in
connection with acquisition indebtedness with respect to a
qualified residence of the taxpayer shall be treated for
purposes of this subsection as qualified residence interest.
``(ii) Phaseout.--The amount otherwise allowable as a
deduction under clause (i) shall be reduced (but not below
zero) by 10 percent of such amount for each $1,000 ($500 in
the case of a married individual filing a separate return)
(or fraction thereof) that the taxpayer's adjusted gross
income for the taxable year exceeds $100,000 ($50,000 in the
case of a married individual filing a separate return).''.
(b) Definition and Special Rules.--Paragraph (4) of section
163(h) of the Internal Revenue Code of 1986 (relating to
other definitions and special rules) is amended by adding at
the end the following new subparagraphs:
``(E) Qualified mortgage insurance.--The term `qualified
mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this subparagraph).
``(F) Special rules for prepaid qualified mortgage
insurance.--Any amount paid by the taxpayer for qualified
mortgage insurance that is properly allocable to any mortgage
the payment of which extends to periods that are after the
close of the taxable year in which such amount is paid shall
be chargeable to capital account and shall be treated as paid
in such periods to which so allocated. No deduction shall be
allowed for the unamortized balance of such account if such
mortgage is satisfied before the end of its term. The
preceding sentences shall not apply to amounts paid for
qualified mortgage insurance provided by the Veterans
Administration or the Rural Housing Administration.''.

SEC. 3. INFORMATION RETURNS RELATING TO MORTGAGE INSURANCE.

Section 6050H of the Internal Revenue Code of 1986
(relating to returns relating to mortgage interest received
in trade or business from individuals) is amended by adding
at the end the following new subsection:
``(h) Returns Relating to Mortgage Insurance Premiums.--
``(1) In general.--The Secretary may prescribe, by
regulations, that any person who, in the course of a trade or
business, receives from any individual premiums for mortgage
insurance aggregating $600 or more for any calendar year,
shall make a return with respect to each such individual.
Such return shall be in such form, shall be made at such
time, and shall contain such information as the Secretary may
prescribe.
``(2) Statement to be furnished to individuals with respect
to whom information is required.--Every person required to
make a return under paragraph (1) shall furnish to each
individual with respect to whom a return is made a written
statement showing such information as the Secretary may
prescribe. Such written statement shall be furnished on or
before January 31 of the year following the calendar year for
which the return under paragraph (1) was required to be made.
``(3) Special rules.--For purposes of this subsection--
``(A) rules similar to the rules of subsection (c) shall
apply, and
``(B) the term `mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this
subsection).''.

SEC. 4. EFFECTIVE DATE.

The amendments made by this Act shall apply to amounts paid
or accrued after the date of enactment of this Act in taxable
years ending after such date.
______

By Mr. TALENT (for himself and Mr. Feingold):
S. 133. A bill to amend section 302 of the PROTECT Act to modify the
standards for the issuance of alerts through the AMBER Alert
communications network; to the Committee on the Judiciary.
Mr. TALENT. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 133

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Tory Jo's AMBER Response
Act''.

[[Page S349]]

SEC. 2. MINIMUM STANDARDS FOR ISSUANCE AND DISSEMINATION OF
ALERTS THROUGH AMBER ALERT COMMUNICATIONS
NETWORK.

Section 302(b) of the PROTECT Act (42 U.S.C. 5791a(b)) is
amended by adding at the end the following:
``(5) The minimum standards shall, to the maximum extent
practicable (as determined by the Coordinator in consultation
with State and local law enforcement agencies), allow local
law enforcement officials to issue, and to provide for the
dissemination of, an alert through the AMBER Alert
communications network to facilitate the recovery of an
abducted newborn.''.

SEC. 3. DEFINITION.

Title III of the PROTECT Act (42 U.S.C. 5791 et seq.) is
amended by adding at the end the following:

``SEC. 306. DEFINITION.

``For purposes of this title, the term `child' means--
``(1) an individual under 18 years of age; or
``(2) a newborn.''.
______

By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
S. 134. A bill to adjust the boundary of Redwood National Park in the
State of California; to the Committee on Energy and Natural Resources.
Mrs. FEINSTEIN. Mr. President, I am pleased to introduce legislation
cosponsored by Senator Boxer to adjust the boundary of Redwood National
Park in the State of California to include the addition of the Mill
Creek property. This continues the effort initiated in the last
Congress with the leadership of Congressman Mike Thompson, to solidify
and expand the co-operative management relationship between the United
States Government and the State of California, working together to
protect forever the ancient majesty of the redwood forest.
In 2002, the California Department of Parks and Recreation acquired
from the Save-the-Redwoods League 25,000 acres of forest land known as
the Mill Creek property in Del Norte County, which is contiguous with
the Redwood National and State parks boundary. This bill would include
within the park boundary the Mill Creek acquisition and about 900 acres
of land acquired and added to the State redwood parks since the 1978
expansion of the Redwood National Park boundary. There would be no
Federal costs for land acquisition or development resulting from this
legislation.
Approval of the expansion of the boundary of Redwood National Park to
include the headwaters of Mill Creek will complete the vision of the
Redwood Park embraced by Senator Kuchel in S.1370 that he introduced in
1967, a vision dating back to the McLaughlin-Cook report issued by the
National Park Service in 1937. Protection of the headwaters of Mill
Creek will secure the long term viability of the ancient redwoods
already within Redwood National and State Park. It would permanently
safeguard the coho salmon who return to spawn in the clear, cold waters
of this forest.
These lands will be managed by the same cooperative management
agreement between the National Park Service and the California
Department of Parks and Recreation. This partnership is viewed as a
model of interagency cooperative management efforts and will provide
for more efficient and costeffective management of an ecologically
significant resource.
This bill enjoys strong support from local and Federal officials,
including Del Norte County and the Department of the Interior. Given
this support and lack of controversy, I believe this legislation to be
of great importance to ensure that our Redwood National Park is further
protected.
I have long held a deep interest in protecting California's
magnificent Redwoods. The coast redwood, the sequoia sempervirens, is
native only to the West Coast where it stands in a narrow band from the
tip of the Big Sur Coast to the Chetco River, just north of the
California-Oregon border. The redwood stands taller than any other tree
in the world and traces its lineage to among the oldest of living
things. The cathedrals formed by these ancient trees inspire the best
in us as a people. The redwood forests of California are a national and
worldwide treasure that is ours to protect and preserve.
In 1966, the Headwaters Agreement was negotiated in part in my
offices to protect approximately 7,500 acres of old growth redwoods,
which was the largest grove of redwoods held in private ownership at
the time. It is my great pleasure today to introduce this legislation
to extend our national commitment to collaboration in preservation of
the redwoods and the watersheds they anchor.
I applaud Congressman Mike Thompson's commitment to this issue and
urge my colleagues to support this legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 134

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Redwood National Park
Boundary Adjustment Act of 2005''.

SEC. 2. REDWOOD NATIONAL PARK BOUNDARY ADJUSTMENT.

Section 2(a) of the Act of Public Law 90-545 (16 U.S.C.
79b(a)) is amended--
(1) in the first sentence, by striking ``(a) The area'' and
all that follows through the period at the end and inserting
the following: ``(a)(1) The Redwood National Park consists of
the land generally depicted on the map entitled `Redwood
National Park, Revised Boundary', numbered 167/60502, and
dated February, 2003.'';
(2) by inserting after paragraph (1) (as designated by
paragraph (1)) the following:
``(2) The map referred to in paragraph (1) shall be--
``(A) on file and available for public inspection in the
appropriate offices of the National Park Service; and
``(B) provided by the Secretary of the Interior to the
appropriate officers of Del Norte and Humboldt Counties,
California.''; and
(3) in the second sentence--
(A) by striking ``The Secretary'' and inserting the
following:
``(3) The Secretary;'' and
(B) by striking ``one hundred and six thousand acres'' and
inserting ``133,000 acres''.
______

By Mrs. FEINSTEIN:
S. 136. A bill to authorize the Secretary of the Interior to provide
supplemental funding and other services that are necessary to assist
certain local school districts in the State of California in providing
education services for students attending schools located within
Yosemite National Park, to authorize the Secretary of the Interior to
adjust the boundaries of the Golden Gate National Recreation Area; to
the Committee on Energy and Natural Resources.
Mrs. FEINSTEIN. I rise today to introduce a bill that combines needed
help for small Yosemite schools, and an addition to the beautiful
Golden Gate National Recreation Area. Each of these bills individually
has passed both the House and Senate in previous Congresses.
The first title of this legislation provides critical funds to three
small schools nestled in the heart of Yosemite National Park and
authorizes the Yosemite Regional Transportation System to shuttle
visitors in and out of the park.
Approximately 130 children of park service employees are taught in
the three elementary small schools located in Yosemite National Park--
Wawona, El Portal, and Yosemite Valley elementary schools.
These schools represent a dying breed of education models; they are
small schools that teach children who live in remote communities and
are taught by one or a group of teachers. At El Portal, three teachers
instruct 53 students in seven grades. Wawona has 17 students in 7
grades who are taught by one teacher/principal.
And Yosemite Valley serves 60 students in 8 grades who are taught by
two teachers.
The remote location of these schools, their small sizes and
California's unique method for funding education, have all contributed
to the schools amassing a combined deficit of $290,000. In their
efforts to continue to provide basic educational services to students,
the schools have had to cut supplemental instruction that would
normally be available to students taught outside of the park.
Some have suggested that these schools consolidate into one to pool
their limited resources. While this may seem to solve the problem, you
must understand that many of these students already travel many miles
on treacherous mountainous roads to attend their current schools. If
the three schools were to consolidate, this problem would be
exacerbated, requiring many students to make a 2 hour commute to their
new schools.

[[Page S350]]

I do not believe this is a viable option and that is why I support
this legislation.
Last year, Senator Bingaman, Congressman Radanovich and I worked out
a compromise on this legislation that would help the schools while
protecting the National Park Service's budget. The compromise includes
the following terms:
For fiscal year 2006 through 2009, the Secretary of the Interior may
provide up to $400,000 in funds to the Bass Lake Union Elementary
School District and the Mariposa Unified School District for
educational services to students who are dependents of persons engaged
in the administration, operation, and maintenance of the Park or
students who live at or near the Park; the Secretary can only provide
the funds if the State of California and local agencies maintain 2005
per-student funding levels to the schools, and the Secretary also must
make sure that the assistance to the schools does not reduce the
remaining funding available to Yosemite National Park below fiscal year
2005 levels.
Furthermore, this legislation allows the Park Service to allot
federal funds for the continuing operation of a bus service that
shuttles visitors through Yosemite National Park--the Yosemite Area
Regional Transportation System.
The federally funded demonstration project that allowed YARTS to
offer services on a temporary basis expired in May 2002 and since then,
YARTS has leveraged local funds to ensure that services were not
discontinued.
Both the Park Service and YARTS are supportive of continuing their
mutually beneficial agreement. This legislation would do just that by
taking the burden off local entities and providing the necessary
assistance that this service needs.
I am also pleased to introduce today a second title in this
legislation to allow the National Park Service to extend the boundaries
of the Golden Gate National Recreation Area, GGNRA, by acquiring
critical natural landscapes and scenic vistas.
This bill meets several distinct needs in California and national
needs of all National Park System visitors by adding 4,600 acres of
pristine natural land to the boundary of the Golden Gate Recreation
Area. It will protect four major watersheds, preserve the home of
numerous threatened, rare and endangered plant and animal species in
the region, allow potential access to valuable future trail links to
contiguous State and county parks, and establish a dramatic and logical
southern entrance to the park.
A key component of this legislation is its three-way, local-state-
federal partnership. Half of the total purchase price of these lands
has already been donated by local and State sources. Additionally, this
legislation specifically provides that all land transactions involve a
willing seller and willing buyer.
Furthermore, this bill has the strong support of local community
groups, the former Golden Gate National Recreation Area Advisory
Commission, the San Mateo County Board of Supervisors, the National
Park Service, and the California State Farm Bureau. It also has the
endorsement of the San Francisco Chronicle and the San Jose Mercury
News. I know of no opposition to this bill.
Expanding the boundary of the Golden Gate National Recreation Area to
include Rancho Corral de Tierra through such a beneficial partnership
is an opportunity not to be missed. A vast land within a major
metropolitan area that offers extraordinary scenic views of the Pacific
coastline and the greater Bay Area, a place with plants found nowhere
else on earth find refuge, a home for rare and endangered animals, is
available now for protection and enjoyment. We have the chance to enjoy
this special land and to leave a lasting legacy for our children and
our grandchildren.
California's national parks are truly invaluable and the park that
this bill supports offers an opportunity for visitors and residents to
enjoy unique national habitats and offers a unique chance for the
National Park Service and the community to work together, not only to
protect the environment, but also the interests of the nearby
communities and national and international visitors.
This bill enjoys strong support from local and State officials and I
hope that it will have as much strong bipartisan support this Congress,
as it did last Congress. Congressman Tom Lantos plans to introduce
companion legislation for this bill in the House and I applaud his
leadership on this issue.
I urge my colleagues to support this bill. I ask unanimous consent
that the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 136

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

The table of contents of this Act is as follows:
Sec. 1. Table of contents.

TITLE I--YOSEMITE NATIONAL PARK AUTHORIZED PAYMENTS

Sec. 102. Payments for educational services.
Sec. 103. Authorization for park facilities to be located outside the
boundaries of Yosemite National Park.

TITLE II--RANCHO CORRAL DE TIERRA GOLDEN GATE NATIONAL RECREATION AREA
BOUNDARY ADJUSTMENT.

Sec. 201. Short title.
Sec. 202. Golden Gate National Recreation Area, California.

TITLE I--YOSEMITE NATIONAL PARK AUTHORIZED PAYMENTS

SEC. 101. PAYMENTS FOR EDUCATIONAL SERVICES.

(a) In General.--(1) For fiscal years 2006 through 2009,
the Secretary of the Interior may provide funds to the Bass
Lake Joint Union Elementary School District and the Mariposa
Unified School District in the State of California for
educational services to students--
(A) who are dependents of persons engaged in the
administration, operation, and maintenance of Yosemite
National Park; or
(B) who live within or near the park upon real property
owned by the United States.
(2) The Secretary's authority to make payments under this
section shall terminate if the State of California or local
education agencies do not continue to provide funding to the
schools referred to in subsection (a) at per student levels
that are no less than the amount provided in fiscal year
2005.
(b) Limitation on Use of Funds.--Payments made under this
section shall only be used to pay public employees for
educational services provided in accordance with subsection
(a). Payments may not be used for construction, construction
contracts, or major capital improvements.
(c) Limitation on Amount of Funds.--Payments made under
this section shall not exceed the lesser of--
(1) $400,000 in any fiscal year; or
(2) the amount necessary to provide students described in
subsection (a) with educational services that are normally
provided and generally available to students who attend
public schools elsewhere in the State of California.
(d) Source of Payments.--(1) Except as otherwise provided
in this subsection, the Secretary may use funds available to
the National Park Service from appropriations, donations, or
fees.
(2) Funds from the following sources shall not be used to
make payments under this section:
(A) Any law authorizing the collection or expenditure of
entrance or use fees at units of the National Park System,
including the Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l-4 et seq.); the recreational fee
demonstration program established under section 315 of the
Department of the Interior and Related Agencies
Appropriations Act, 1996 (16 U.S.C. 460l-6a note); and the
National Park Passport Program established under section 602
of the National Parks Omnibus Management Act of 1998 (16
U.S.C. 5992).
(B) Emergency appropriations for flood recovery at Yosemite
National Park.
(3)(A) The Secretary may use an authorized funding source
to make payments under this section only if the funding
available to Yosemite National Park from such source (after
subtracting any payments to the school districts authorized
under this section) is greater than or equal to the amount
made available to the park for the prior fiscal year, or in
fiscal year 2005, whichever is greater.
(B) It is the sense of Congress that any payments made
under this section should not result in a reduction of funds
to Yosemite National Park from any specific funding source,
and that with respect to appropriated funds, funding levels
should reflect annual increases in the park's operating base
funds that are generally made to units of the National Park
System.

SEC. 102. AUTHORIZATION FOR PARK FACILITIES TO BE LOCATED
OUTSIDE THE BOUNDARIES OF YOSEMITE NATIONAL
PARK.

(a) Funding Authority for Transportation Systems and
External Facilities.--Section 814(c) of the Omnibus Parks and
Public Lands Management Act of 1996 (16 U.S.C. 346e) is
amended--
(1) in the heading by inserting ``and Yosemite National
Park'' after ``Zion National Park'';
(2) in the first sentence--

[[Page S351]]

(A) by inserting ``and Yosemite National Park'' after
``Zion National Park''; and
(B) by inserting ``for transportation systems or'' after
``appropriated funds''; and
(3) in the second sentence by striking ``facilities'' and
inserting ``systems or facilities''.
(b) Clarifying Amendment for Transportation Fee
Authority.--Section 501 of the National Parks Omnibus
Management Act of 1998 (16 U.S.C. 5981) is amended in the
first sentence by striking ``service contract'' and inserting
``service contract, cooperative agreement, or other
contractual arrangement''.

TITLE II--RANCHO CORRAL DE TIERRA GOLDEN GATE NATIONAL RECREATION AREA
BOUNDARY ADJUSTMENT

SEC. 201. SHORT TITLE.

This title may be cited as the ``Rancho Corral de Tierra
Golden Gate National Recreation Area Boundary Adjustment
Act''.

SEC. 202. GOLDEN GATE NATIONAL RECREATION AREA, CALIFORNIA.

(a) Section 2(a) of Public Law 92-589 (16 U.S.C. 460bb-
1(a)) is amended--
(1) by striking ``The recreation area shall comprise'' and
inserting the following:
``(1) Initial lands.--The recreation area shall comprise'';
and
(2) by striking ``The following additional lands are also''
and all that follows through the period at the end of the
subsection and inserting the following new paragraphs:
``(2) Additional lands.--In addition to the lands described
in paragraph (1), the recreation area shall include the
following:
``(A) The parcels numbered by the Assessor of Marin County,
California, 119-040-04, 119-040-05, 119-040-18, 166-202-03,
166-010-06, 166-010-07, 166-010-24, 166-010-25, 119-240-19,
166-010-10, 166-010-22, 119-240-03, 119-240-51, 119-240-52,
119-240-54, 166-010-12, 166-010-13, and 119-235-10.
``(B) Lands and waters in San Mateo County generally
depicted on the map entitled `Sweeney Ridge Addition, Golden
Gate National Recreation Area', numbered NRA GG-80,000-A, and
dated May 1980.
``(C) Lands acquired under the Golden Gate National
Recreation Area Addition Act of 1992 (16 U.S.C. 460bb-1 note;
Public Law 102-299).
``(D) Lands generally depicted on the map entitled
`Additions to Golden Gate National Recreation Area', numbered
NPS-80-076, and dated July 2000/PWR-PLRPC.
``(E) Lands generally depicted on the map entitled `Rancho
Corral de Tierra Additions to the Golden Gate National
Recreation Area', numbered NPS-80,079E, and dated March 2004.
``(3) Acquisition limitation.--The Secretary may acquire
land described in paragraph (2)(E) only from a willing
seller.''.
______

By Mr. KERRY:
S. 137. A bill to modify the contract consolidation requirements in
the Small Business Act, and for other purposes; to the Committee on
Small Business and Entrepreneurship.
______

By Mr. KERRY (for himself and Mr. Bingaman):
S. 138. A bill to make improvements to the microenterprise programs
administered by the Small Business Administration; to the Committee on
Small Business and Entrepreneurship.
______

By Mr. KERRY:
S. 139. A bill to amend the Small Business Act to direct the
Administrator of the Small Business Administration to establish a
vocational and technical entrepreneurship development program; to the
Committee on Small Business and Entrepreneurship.
Mr. KERRY. Mr. President, as Ranking Member of the Small Business and
Entrepreneurship Committee, today I am introducing a package of bills
that will help small business owners with access to loans, business
counseling and Federal procurement opportunities. Each of the bills was
previously introduced on its own or as part of the Committee's
extensive Small Business Administration reauthorization proposal that
passed the Senate unanimously last Congress. These are provisions that
are necessary for enabling our nation's small businesses to continue to
have the resources and tools they need to compete with larger
companies. They will help America's budding entrepreneurs continue to
seek out business opportunities and continue to start businesses.
Enactment of this assistance will show that the Federal government is
not there to make the road to success more difficult for small
businesses, but to help them where the private sector will not.
Mr. President, the first bill of this package is the Small Business
Federal Contractor Safeguard Act. It includes essential contractor
protections that were a part of the Small Business Administration
reauthorization package that passed the Senate unanimously last
Congress but was stalled during negotiations in the House of
Representatives. These much-needed protections will help level the
playing field for small firms and create a procurement atmosphere that
fosters competition, fair access and equal opportunity for smaller
entities.
With Federal agencies awarding larger, more complex and more costly
contracts, and with less staff at the Small Business Administration and
within Agency contracting offices performing oversight, this nation's
small businesses and its taxpayers are the ones shouldering the burden
when small business goals continue to be unmet. In addition to helping
small businesses obtain access to procurement opportunities, these
goals are meant to help the government benefit from the cost-savings
and innovations small business contractors can often provide.
Significant steps were made during the last Congress to address the
challenges of contract bundling; however, it is my belief that passing
and implementing binding statutory requirements is the only long-term
solution to the on-going problem of contract bundling, also called
contract consolidation. The first section of the bill creates a two-
tiered approach to preventing unnecessary contract consolidation.
Civilian agencies will be required to meet specific standards if they
attempt to consolidate contracts above $2 million and additional
requirements for those contracts above $5 million. The Department of
Defense is required to meet two types of similar requirements for
contracts above $5 million and $7 million. The bill also eliminates the
use of the term ``contract bundling'' and expands the definition of
``contract consolidation,'' closing a loophole that has been widely
used to the detriment of many small businesses.
In addition to increasing opportunities for prime contracts by
eliminating unnecessary contract consolidation, this bill addresses
another serious problem: the dishonest treatment of small business
subcontractors by large business prime contractors. Small businesses
have been severely hamstrung by the dishonest practices of some large
business prime contracts that delay paying their subcontractors,
falsely report their subcontracting plans and use ``bait and switch''
tactics.
This bill holds prime contractors responsible for the validity of
subcontracting data, requiring the CEO to certify to the accuracy of
the subcontracting report under penalty of law. It also makes the
penalties for falsifying data included in subcontracting reports match
the current $500,000 penalty for businesses that falsify their status
as a small and disadvantaged business. Under this bill, if one
intentionally falsifies data as a part of a subcontracting report to a
federal Agency, he is defrauding the United States government and will
be punished to the full extent of the law.
Finally, the bill requires contracting officers to maintain a
database of contract performance that is made available to the small
business subcontractor upon completion of the contract. This report can
then be used as a record of past performance, building a history that
will help successful small firms bid on future Federal prime contracts
or subcontracts. Each contracting officer will be empowered to withhold
a portion of the payment to the prime contractor until he also receives
the completed and accurate performance report. Any material breach of
contract that is found will be immediately reported to the Inspector
General of that Agency for a complete investigation.
The second bill of this small business legislative package is the SBA
Microenterprise Improvements Act. It was also included as part of the
Small Business Administration reauthorization package and passed by the
Senate unanimously last Congress. I am reintroducing these provisions
because they are vital to the microenterprise programs administered by
the SBA: the Microloan Program and the Program for Investment in
Microentrepreneurs (PRIME).
As I have stated on numerous occasions, I disagree with the
Administration's proposals to cut back funding for microloans and
training assistance intended to encourage entrepreneurship and foster
America's smallest small businesses. And I wholeheartedly disagree with
the Administration's ill-

[[Page S352]]

founded argument that these borrowers are being, or will be, served
through the SBA's 7(a) loan guarantee program. SBA's loan programs are
not one-size fits all. The small borrower in the Microloan program is
different, and therefore has different needs, than the small business
borrower being served through the 7(a) loan program. Both lending
vehicles are important, but they are different, and one is not a
substitute for the other.
Who are these borrowers being served through the microloan program?
Thirty percent are African American; 11 percent are Hispanic; 37
percent are women; and, anywhere from 30 percent to 40 percent go to
small businesses in rural areas. Because of their size, the size of the
loan they need and their relative inexperience, small businesses
borrowers are turned away by banks, and yet the Administration proposed
cutting the Microloan program by 36 percent in its fiscal year 2004
budget, and cut all funding in its fiscal year 2005 budget. The SBA
needs to fully fund these programs and put more resources into the
office that manages the program. Four people are not enough to manage
1,400 loans and 180 grants. To make matters worse, the SBA's long-time
manager of micro-enterprise programs, Jody Raskind, is leaving the
Agency. All those who support the good work of fostering SBA's
Microloan program are sorry to see her go, not only because of her
dedication and hard work, but also because they are concerned that the
Administration will never really fill the job, letting the
programs languish. I urge the Administration to move quickly to fill
that position, just as the private sector would, by working with the
Microloan community to identify someone who is competent, resourceful
and dedicated to monitoring integrity of these programs and fostering
their success.

In addition, we need to finally enact some changes to the Microloan
program that have passed the Senate several times over the last four
years but have yet to pass the full Congress because of unrelated
political fights. I urge my colleagues to let us move forward with
making these provisions law, once and for all. The first part of the
SBA Microenterprise Improvements Act includes many of the provisions
passed as part of S. 174, a bill which Senator Snowe and I introduced
in 2001 and the Committee and the full Senate voted to pass by
unanimous consent in 2002. As I mentioned earlier, these provisions
were also included as part of S.1375, the SBA reauthorization bill that
passed the Senate unanimously in 2003. The updates and changes to the
Microloan program included in this bill will improve the program in
several ways.
First, it will allow intermediaries to make revolving-term loans or
longer fixed term loans to small businesses. Currently, intermediaries
may only make ``short-term'' loans with fixed terms, which restrict the
ability of microlenders to structure loans that meet the needs of
certain small enterprises. This will benefit small businesses, the
lenders, and the SBA because it will eliminate repeated paperwork and
unnecessary administrative burdens. It will help small businesses, such
as carpenters, who need revolving loans to finance the jobs as they
come in, rather than taking multiple little, fixed-term loans. Second,
this bill also contains a change to the Microlenders eligibility.
Rather than tying eligibility to the expertise of the entity, this bill
makes it possible for new entities to qualify as the SBA microlending
intermediaries if they have staffs who are experienced in this unique
or specialized lending and technical assistance. This bill also
adjusts, reflecting changes in the market, the average smaller size of
microloans from $7,500 to $10,000, to make it consistent with similar
changes enacted in December 2000. This is important because microloan
intermediaries that have a microloan portfolio with an average loan
size of not more than $10,000 will now be eligible to receive an
interest rate lower than the normal rate extended by the SBA to
intermediaries. This bill also changes, from 25 percent to 30 percent,
the amount of technical assistance (TA) funds an intermediary can
contract with an outside expert and the amount of grants a lender can
use to counsel prospective borrowers. In addition, the legislation
requires the SBA to report annually on the requirement that states that
Agency must contract out 7 percent of its loan dollars for intermediary
training.
Last, the SBA Microenterprise Improvements Act, like S.1375, requires
the SBA to develop an improved subsidy rate model to determine the cost
of microloans. The one the Agency has used since the program's
inception does not reflect the performance of the program. For example,
in Fiscal Year 2003, the administration's budget doubled the subsidy
rate (which is the government's cost of the program) from 6.78 percent
to 13.05 percent, even though the program had not experienced any loss
of federal funds since the first loan was made in 1992. This broken
method of calculating the cost of these loans is a waste of taxpayer
money because Congress has to appropriate unnecessary funds to run the
program. Now is the time to fix it.
The second part of the SBA Microenterprise Improvements Act also
comes from S.1375, but was not included in the small business
reauthorization bill that passed Congress last session. It begins by
reauthorizing the PRIME program through 2007 and transfers its
legislative language from the Riegle Community Development and
Regulatory Improvement Act of 1994 to section 37 of the Small Business
Act. Additionally, it includes a provision that Senator Bingaman and I
worked closely to develop that will expand PRIME with a separate $2
million authorization to provide direct, in-depth technical assistance
and counseling to disadvantaged Native American small business owners.
The rationale for amending the PRIME Act, rather than creating a
separate program, is that PRIME is currently operational and simply
needs additional targeted efforts and funding so it can better address
the needs of the Native American entrepreneurial community. The
Bingaman-Kerry approach uses an existing program structure to help find
a solution to the long-term economic handicap existing in Native
American communities nationwide. There are a number of microenterprise
organizations in states across the country that are willing and
prepared to take on the additional challenge of assisting disadvantaged
Native American entrepreneurs, and there are a number of Native
American communities that are eager to explore a different path to
economic development. However, there are currently a limited amount of
funds to allow that to happen. Again, I commend Senator Bingaman for
his continued attention to these needs, for his continued support of
small business legislation to address them, and for his foresight and
vision for Native Americans in New Mexico and across the country. The
Native American communities of our nation will be better off with the
assistance that this provision makes possible.
Again, it is time to move forward. Out of 66 pages of Small Business
Administration reauthorizations and improvements that were slipped into
the Omnibus Appropriations bill that passed at the end of the 108th
Congress, these non-controversial provisions were included. They should
have been.
The third part of the package that I'm introducing today is a
reintroduction of the Vocational and Technical Entrepreneurship
Development Act. Last Congress, I introduced this important piece of
legislation as a companion to H.R. 1387, which bears the same name and
was introduced in the House, in the 107th and 108th Congresses, by
Congressman Robert Brady of Pennsylvania.
Let me begin by reminding my colleagues that the Small Business
Administration's Office of Advocacy states that only half of all small
businesses survive past four years and that management and education
remain two of the most important ingredients to small business success.
We often think that small businesses only need money to succeed, but
while adequate financing is vital, so too is careful planning and
competent management. Often Americans who work in the trade sector--
construction, plumbing, electrical work, etc.--enter these professions
with the goal of one day starting their own business; however many of
these aspiring entrepreneurs who participate in career training or
vocational training in certain trades, unfortunately, fail to obtain
the necessary education and ``back room'' management skills to grow and
develop their fledgling business. This initiative would develop a

[[Page S353]]

program that allows workers within the trades industry to move toward
starting a new business by giving them the entrepreneurial skills to
successfully manage a small business. Many small businesses fail not
because they don't know the industry or make low-quality products or
have poor service, but because they don't know the ins and outs of
running a successful business.
The purpose of the Vocational and Technical Entrepreneurship
Development Act is to assist in the development of curricula that will
encourage the successful growth of small businesses. This legislation
passed the House in each of the last Congresses, but was not taken up
by the full Senate. I hope that the committee and full Senate will act
quickly on it now.
The bill, in a business-education partnership, establishes a
``vocational entrepreneurship development demonstration program,''
under which the SBA would provide grants, through the Small Business
Development Center network, to provide technical assistance to high
school and technical career institutes, vo-tech schools, to promote
small business ownership in their curriculum.
The SBDC program is designed to deliver such up-to-date counseling,
training and technical assistance in all aspects of small business
management and is the ideal vehicle to provide such a program. Each
grant awarded under this program will be worth at least $200,000--
which, in today's environment where vo-tech programs get shortchanged
in government education budgets, can do a great deal to help rebuild a
worker-strapped trades industry.
There has been some concern that this legislation will duplicate
programs such as those at the Department of Education's Office of
Vocational and Adult Education, OVAE, which does provide valuable
vocational education. The OVAE, and other such government programs,
however, focus on helping workers gain new and updated skills so that
they may find employment. In contrast, this legislation is targeted
toward turning workers, not into better employees, but into potential
employers. Traditional vocational education programs do not provide
entrepreneurial training. This is a fundamental difference between this
legislation's objective and that of the traditional vocation education
provided by the Department of Education. Giving our trades industry
professionals the skills to be successful business owners creates
better employers and better, long-lasting businesses. This, in turn,
will go a long way toward creating additional trade jobs across the
country.
I again want to commend Representative Brady for his years of hard
work on behalf of entrepreneurs not just from his home State but on
behalf of every trades industry worker who has ever thought of becoming
his or her own boss by starting a business.
Mr. President, I urge all of my colleagues to cosponsor and support
these three bills.
I ask unanimous consent that the text of the bills be printed in the
Record.

S. 137

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Small Business Federal
Contractor Safeguard Act of 2005''.

SEC. 2. CONTRACT CONSOLIDATION.

(a) Definitions.--Section 3(o) of the Small Business Act
(15 U.S.C. 632(o)) is amended to read as follows:
``(o) Definitions Relating to Consolidation of Contract
Requirements.--For purposes of this Act--
``(1) the terms `consolidation of contract requirements'
and `consolidation', with respect to contract requirements of
a military department, Defense Agency, Department of Defense
Field Activity, or any other Federal department or agency
having contracting authority mean a use of a solicitation to
obtain offers for a single contract or a multiple award
contract to satisfy 2 or more requirements of that
department, agency, or activity for goods or services that--
``(A) have previously been provided to or performed for
that department, agency, or activity under 2 or more separate
contracts that are smaller in cost than the total cost of the
contract for which the offers are solicited; or
``(B) are of a type capable of being provided or performed
by a small business concern for that department, agency, or
activity under 2 or more separate contracts that are smaller
in cost than the total cost of the contract for which the
offers are solicited;
``(2) the term `multiple award contract' means--
``(A) a contract that is entered into by the Administrator
of General Services under the multiple award schedule program
referred to in section 2302(2)(C) of title 10, United States
Code;
``(B) a multiple award task order contract or delivery
order contract that is entered into under the authority of
sections 2304a through 2304d of title 10, United States Code,
or sections 303H through 303K of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253h through
253k); and
``(C) any other indeterminate delivery, indeterminate
quantity contract that is entered into by the head of a
Federal agency with 2 or more sources pursuant to the same
solicitation; and
``(3) the term `senior procurement executive' means--
``(A) with respect to a military department, the official
designated under section 16(3) of the Office of Federal
Procurement Policy Act (41 U.S.C. 414(3)) as the senior
procurement executive for the military department;
``(B) with respect to a Defense Agency or a Department of
Defense Field Activity, the official so designated for the
Department of Defense; and
``(C) with respect to a Federal department or agency other
than those referred to in subparagraphs (A) and (B), the
official so designated by that department or agency.''.
(b) Procurement Strategies.--Section 15(e) of the Small
Business Act (15 U.S.C. 644(e)) is amended--
(1) in paragraph (2)--
(A) by striking ``.--
``(A) In general ''; and
(B) by striking subparagraphs (B) and (C); and
(2) by amending paragraph (3) to read as follows:
``(3) Limitation on use of acquisition strategies involving
consolidation.--
``(A) Certain defense contract requirements.--An official
of a military department, defense agency, or Department of
Defense Field Activity shall not execute an acquisition
strategy that includes a consolidation of contract
requirements of the military department, agency, or activity
with a total value in excess of $5,000,000, unless the senior
procurement executive first--
``(i) conducts market research;
``(ii) identifies any alternative contracting approaches
that would involve a lesser degree of consolidation of
contract requirements; and
``(iii) determines that the consolidation is necessary and
justified.
``(B) Certain civilian agency contract requirements.--The
head of a Federal agency not described in subparagraph (A)
that has contracting authority shall not execute an
acquisition strategy that includes a consolidation of
contract requirements of the agency with a total value in
excess of $2,000,000, unless the senior procurement executive
of the agency first--
``(i) conducts market research;
``(ii) identifies any alternative contracting approaches
that would involve a lesser degree of consolidation of
contract requirements; and
``(iii) determines that the consolidation is necessary and
justified.
``(C) Additional requirements for higher value consolidated
contracts.--In addition to meeting the requirements under
subparagraph (A) or (B), a procurement strategy by a civilian
agency that includes a consolidated contract valued at more
than $5,000,000, or by a defense agency that includes a
consolidated contract valued at more than $7,000,000 shall
include--
``(i) an assessment of the specific impediments to
participation by small business concerns as prime contractors
that will result from the consolidation;
``(ii) the identification of the alternative strategies
that would reduce or minimize the scope of the consolidation
and the rationale for not choosing those alternatives;
``(iii) actions designed to maximize small business
participation as prime contractors, including provisions that
encourage small business teaming for the consolidated
requirement; and
``(iv) actions designed to maximize small business
participation as subcontractors (including suppliers) at any
tier under the contract or contracts that may be awarded to
meet the requirements.
``(D) Necessary and justified.--A senior procurement
executive may determine that an acquisition strategy
involving a consolidation of contract requirements is
necessary and justified for purposes of subparagraph (A),
(B), or (C), if the benefits of the acquisition strategy
substantially exceed the benefits of each of the possible
alternative contracting approaches identified under clause
(ii) of any of those subparagraphs, as applicable. Savings in
administrative or personnel costs alone shall not constitute,
for such purpose, a sufficient justification for a
consolidation of contract requirements in a procurement,
unless the total amount of the cost savings is expected to be
substantial in relation to the total cost of the procurement.
``(E) Benefits.--Benefits considered for purposes of this
paragraph may include cost and, regardless of whether
quantifiable in dollar amounts--
``(i) quality;
``(ii) acquisition cycle;
``(iii) terms and conditions; and

[[Page S354]]

``(iv) any other benefit directly related to national
security or homeland defense.''.
(c) Additional to Technical Advisers.--Section 15(k) of the
Small Business Act (15 U.S.C. 644(k)) is amended--
(1) in paragraph (5), by striking ``bundled contract'' and
inserting ``consolidated contract''; and
(2) in paragraph (8), by striking ``representative--'' and
inserting ``representative at each major procurement center
under subsection (l)(1)--''.
(d) Procurement Center Representatives.--Section 15(l) of
the Small Business Act (15 U.S.C. 644(l)) is amended--
(1) by redesignating paragraphs (2) through (7) as
paragraphs (3) through (8), respectively;
(2) by striking ``(l)(1)'' and inserting ``(2)'';
(3) by inserting before paragraph (2), as redesignated, the
following:
``(l)(1) The Administration shall assign not fewer than 1
procurement center representative at each major procurement
center, in addition to not fewer than 1 for each State.'';
(4) in paragraph (2), as redesignated, by striking ``to the
representative referred to in subsection (k)(6)'' and
inserting ``to the traditional procurement center
representative and the commercial market representative, with
each such position filled by a different individual, and each
such representative having separate and distinct duties and
responsibilities.''; and
(5) by striking ``paragraph (2)'' each place that term
appears and inserting ``paragraph (3)''.
(e) Report Requirements.--Section 15(p)(4)(B) of the Small
Business Act (15 U.S.C. 644(p)(4)(B)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting the following: ``; and''; and
(3) by adding at the end the following:
``(iii) a description of best practices for maximizing
small business prime and subcontracting opportunities.''.
(f) Conforming Amendments.--Section 15(p) of the Small
Business Act (15 U.S.C. 644(p)) is amended--
(1) in the subsection heading, by striking ``Bundled
Contracts'' and inserting ``Consolidated Contracts'';
(2) in the heading to paragraph (1), by striking ``Bundled
contract'' and inserting ``Consolidated contract'';
(3) in the heading to paragraph (4), by striking ``contract
bundling'' and inserting ``contract consolidation'';
(4) by striking ``bundled contracts'' each place that term
appears and inserting ``consolidated contracts'';
(5) by striking ``bundled contract'' each place that term
appears and inserting ``consolidated contract'';
(6) by striking ``bundling of contract requirements'' each
place that term appears and inserting ``consolidation of
contract requirements'';
(7) in paragraph (4)(B)(ii), by striking ``previously
bundled'' and inserting ``previously consolidated'';
(8) in paragraph (4)(B)(ii)(I), by striking ``were
bundled'' and inserting ``were consolidated'';
(9) in paragraph (4)(B)(ii)(II)(bb), by striking ``bundling
the contract requirements'' and inserting ``the consolidation
of contract requirements''; and
(10) in paragraph (4)(B)(ii)(II)(cc), by striking ``bundled
status'' and inserting ``consolidated status''.

SEC. 3. AGENCY ACCOUNTABILITY.

(a) In General.--Each procurement employee--
(1) shall communicate to their subordinates the importance
of achieving small business goals; and
(2) shall have as an annual performance evaluation factor,
if appropriate, the success of that procurement employee in
small business utilization, in accordance with the goals
established under this section.
(b) Definition.--As used in this section, the term
``procurement employee'' means a senior procurement
executive, senior program manager, or small and disadvantaged
business utilization manager of a Federal agency having
contracting authority.

SEC. 4. SMALL BUSINESS PARTICIPATION IN PRIME CONTRACTING.

(a) Reserved Contracts.--Section 15(j) of the Small
Business Act (15 U.S.C. 644(j)) is amended by adding at the
end the following:
``(4) Any adjustment to the simplified acquisition
threshold (as defined in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(11))), shall be
immediately matched by an identical adjustment to the small
business reserve for purposes of this subsection.''.
(b) Participation in Multiple Award Contracts.--Section
15(j) of the Small Business Act (15 U.S.C. 644(j)) is
amended--
(1) in paragraph (2), by striking ``(2) In carrying out
paragraph (1)'' and inserting ``(3) In carrying out
paragraphs (1) and (2)'';
(2) in paragraph (3), by striking ``(3) Nothing in
paragraph (1)'' and inserting ``(4) Nothing in this
subsection''; and
(3) by inserting after paragraph (1) the following:
``(2)(A) In the case of orders under multiple award
contracts, including Federal Supply Schedule contracts and
multi-agency contracts, that are subject to the small
business reserve, contracting officers shall consider not
fewer than 2 small business concerns if such small business
concerns can offer the items sought by the contracting
officer on competitive terms, with respect to price, quality,
and delivery schedule, with the goods or services available
in the market.
``(B) If only 1 small business concern can satisfy the
requirement, the contracting officer shall include such small
business concern in their evaluation.''.
(c) Report Requirement.--
(1) In general.--Not less than once every 180 days, the
Comptroller General of the United States shall submit a
report on the level of participation in multiple award
contracts, including the Federal Supply Schedule to--
(A) the Small Business Administration;
(B) the Committee on Small Business and Entrepreneurship of
the Senate; and
(C) the Committee on Small Business of the House of
Representatives.
(2) Contents.--Each report submitted under paragraph (1)
shall contain, for the 6-month reporting period--
(A) the total number of multiple award contracts;
(B) the total number of small business concerns that
received multiple award contracts;
(C) the total number of orders;
(D) the total value of orders;
(E) the number of orders received by small business
concerns;
(F) the value of orders received by small business
concerns;
(G) the number of small business concerns that received
orders; and
(H) such other information that the Comptroller General
considers relevant.

SEC. 5. SMALL BUSINESS PARTICIPATION IN SUBCONTRACTING.

(a) Certifications Required.--Section 8(d)(6) of the Small
Business Act (15 U.S.C. 637(d)(6)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) certification that the offeror or bidder will acquire
articles, equipment, supplies, services, or materials, or
obtain the performance of construction work from small
business concerns in the amount and quality used in preparing
the bid or proposal, unless such small business concerns are
no longer in business or can no longer meet the quality,
quantity, or delivery date.''.
(b) Penalties for False Certifications.--Section 16(f) of
the Small Business Act (15 U.S.C. 645(f)) is amended by
striking ``of this Act'' and inserting ``or the reporting
requirements of section 8(d)(11)''.

SEC. 6. EVALUATING SUBCONTRACT PARTICIPATION IN AWARDING
CONTRACTS.

(a) Significant Factors.--Section 8(d)(4)(G) of the Small
Business Act (15 U.S.C. 637(d)(4)(G)) is amended by striking
``a bundled'' and inserting ``any''.
(b) Evaluation Reports.--Section 8(d)(10) of the Small
Business Act (15 U.S.C. 637(d)(10)) is amended--
(1) by striking ``is authorized to'' and inserting
``shall'';
(2) in subparagraph (B), by striking ``and'' at the end;
(3) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(D) report the results of each evaluation under
subparagraph (C) to the appropriate contracting officers.''.
(c) Centralized Database; Payments Pending Reports.--
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is
amended--
(1) by redesignating paragraph (11) as paragraph (14); and
(2) by inserting after paragraph (10) the following:
``(11) Certification.--A report submitted by the prime
contractor pursuant to paragraph (6)(E) to determine the
attainment of a subcontract utilization goal under any
subcontracting plan entered into with a Federal agency under
this subsection shall contain the name and signature of the
president or chief executive officer of the contractor,
certifying that the subcontracting data provided in the
report are accurate and complete.
``(12) Centralized database.--The results of an evaluation
under paragraph (10)(C) shall be included in a national
centralized governmentwide database.
``(13) Payments pending reports.--Each Federal agency
having contracting authority shall ensure that the terms of
each contract for goods and services includes a provision
allowing the contracting officer of an agency to withhold an
appropriate amount of payment with respect to a contract
(depending on the size of the contract) until the date of
receipt of complete, accurate, and timely subcontracting
reports in accordance with paragraph (11).''.
(d) Referral of Material Breach to Inspectors General.--
Section 8(d)(8) of the Small Business Act (15 U.S.C.
637(d)(8)) is amended by adding at the end the following: ``A
material breach described in this paragraph shall be referred
for investigation to the Inspector General (or the
equivalent) of the affected agency.''.

SEC. 7. BUSINESSLINC REPORT TO CONGRESS.

Section 8(n) of the Small Business Act (15 U.S.C. 637(n))
is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by adding after paragraph (2) the following:
``(3) Annual report.--

[[Page S355]]

``(A) In general.--The Associate Administrator of Business
Development of the Administration shall collect data on the
BusinessLINC program and submit an annual report by April 30
of each year on the effectiveness of the program to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives.
``(B) Contents.--The report submitted under subparagraph
(A) shall include--
``(i) the number of programs administered in each State;
``(ii) the corresponding grant awards and the date of each
award;
``(iii) the dollar amount of the contracts in effect in
each State as a result of the BusinessLINC program; and
``(iv) the number of teaming arrangements or partnerships
created as a result of the BusinessLINC program.''.
______

S. 138

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``SBA Microenterprise
Improvements Act''.

SEC. 2. MICROLOAN PROGRAM IMPROVEMENTS.

(a) Intermediary Eligibility Requirements.--Section 7(m)(2)
of the Small Business Act (15 U.S.C. 636(m)(2)) is amended--
(1) in subparagraph (A), by striking ``in paragraph (10);
and'' and inserting ``of the term `intermediary' under
paragraph (11);''; and
(2) in subparagraph (B)--
(A) by striking ``(B) has at least'' and inserting the
following:
``(B) has--
``(i) at least''; and
(B) by striking the period at the end and inserting the
following: ``; or
``(ii) a full-time employee who has not less than 3 years
experience making microloans to startup, newly established,
or growing small business concerns; and
``(C) has at least 1 year experience providing, as an
integral part of its microloan program, intensive marketing,
management, and technical assistance to its borrowers.''.
(b) Conforming Change in Average Smaller Loan Size.--
Section 7(m)(3)(F)(iii) of the Small Business Act (15 U.S.C.
636(m)(3)(F)(iii)) is amended by striking ``$7,500'' and
inserting ``$10,000''.
(c) Limitation on Third Party Technical Assistance.--
Section 7(m)(4)(E)(ii) of the Small Business Act (15 U.S.C.
636(m)(4)(E)(ii)) is amended--
(1) by striking ``Technical assistance'' and inserting
``Third party technical assistance''; and
(2) by striking ``25 percent'' and inserting ``30
percent''.
(d) Loan Terms.--Section 7(m)(1)(B)(i) of the Small
Business Act (15 U.S.C. 636(m)(1)(B)(i)) is amended by
striking ``short-term''.
(e) Report on Transferred Amounts.--Section 7(m)(9)(B) of
the Small Business Act (15 U.S.C. 636(m)(9)(B)) is amended--
(1) by striking ``The Administration'' and inserting the
following:
``(i) In general.--The Administration'';
(2) by striking the period after ``financing''; and
(3) by adding at the end the following:
``(ii) Report.--The Administration shall report, in its
annual budget request and performance plan to Congress, on
the performance by the Administration of the requirements of
clause (i).''.
(f) Accurate Subsidy Model.--Section 7(m) of the Small
Business Act (15 U.S.C. 636(m)) is amended by adding at the
end the following:
``(14) Improved subsidy model.--The Administrator shall
develop a subsidy model for the microloan program under this
subsection, to be used in the fiscal year 2006 budget, that
is more accurate than the subsidy model in effect on the day
before the date of enactment of this paragraph.''.
(g) Increased Flexibility for Providing Technical
Assistance to Potential Borrowers.--Section 7(m)(4)(E)(i) of
the Small Business Act (15 U.S.C. 636(m)(4)(E)(i)) is amended
by striking ``25 percent'' and inserting ``30 percent''.

SEC. 3. PRIME REAUTHORIZATION AND TRANSFER TO THE SMALL
BUSINESS ACT.

(a) Program Reauthorization.--Subtitle C of title I of the
Riegle Community Development and Regulatory Improvement Act
of 1994 (15 U.S.C. 6901 note) is amended to read as follows:

``SEC. 37. PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS.

``(a) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Administration.--The term `Administration' means the
Small Business Administration.
``(2) Administrator.--The term `Administrator' means the
Administrator of the Small Business Administration.
``(3) Capacity building services.--The term `capacity
building services' means services provided to an organization
that is, or that is in the process of becoming, a
microenterprise development organization or program, for the
purpose of enhancing its ability to provide training and
services to disadvantaged entrepreneurs.
``(4) Collaborative.--The term `collaborative' means 2 or
more nonprofit entities that agree to act jointly as a
qualified organization under this section.
``(5) Disadvantaged entrepreneur.--The term `disadvantaged
entrepreneur' means a microentrepreneur that--
``(A) is a low-income person;
``(B) is a very low-income person; or
``(C) lacks adequate access to capital or other resources
essential for business success, or is economically
disadvantaged, as determined by the Administrator.
``(6) Disadvantaged native american entrepreneur.--The term
`disadvantaged Native American entrepreneur' means a
disadvantaged entrepreneur who is also a member of an Indian
Tribe.
``(7) Indian tribe.--The term `Indian tribe' has the same
meaning as in section 4(a) of the Indian Self-Determination
and Education Assistance Act.
``(8) Intermediary.--The term `intermediary' means a
private, nonprofit entity that seeks to serve microenterprise
development organizations and programs, as authorized under
subsection (d).
``(9) Low-income person.--The term `low-income person'
means having an income, adjusted for family size, of not more
than--
``(A) for metropolitan areas, 80 percent of the area median
income; and
``(B) for nonmetropolitan areas, the greater of--
``(i) 80 percent of the area median income; or
``(ii) 80 percent of the statewide nonmetropolitan area
median income.
``(10) Microentrepreneur.--The term `microentrepreneur'
means the owner or developer of a microenterprise.
``(11) Microenterprise.--The term `microenterprise' means a
sole proprietorship, partnership, or corporation that--
``(A) has fewer than 5 employees; and
``(B) generally lacks access to conventional loans, equity,
or other banking services.
``(12) Microenterprise development organization or
program.--The term `microenterprise development organization
or program' means a nonprofit entity, or a program
administered by such an entity, including community
development corporations or other nonprofit development
organizations and social service organizations, that provides
services to disadvantaged entrepreneurs.
``(13) Training and technical assistance.--The term
`training and technical assistance' means services and
support provided to disadvantaged entrepreneurs, such as
assistance for the purpose of enhancing business planning,
marketing, management, financial management skills, and
assistance for the purpose of accessing financial services.
``(14) Very low-income person.--The term `very low-income
person' means having an income, adjusted for family size, of
not more than 150 percent of the poverty line (as defined in
section 673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2)), including any revision required by that
section).
``(b) Establishment of Program.--The Administrator shall
establish a microenterprise technical assistance and capacity
building grant program to provide assistance from the
Administration in the form of grants to qualified
organizations in accordance with this section.
``(c) Uses of Assistance.--A qualified organization shall
use grants made under this section--
``(1) to provide training and technical assistance to
disadvantaged entrepreneurs;
``(2) to provide training and capacity building services to
microenterprise development organizations and programs and
groups of such organizations to assist such organizations and
programs in developing microenterprise training and services;
``(3) to aid in researching and developing the best
practices in the field of microenterprise and technical
assistance programs for disadvantaged entrepreneurs;
``(4) to provide training and technical assistance to
disadvantaged Native American entrepreneurs and prospective
entrepreneurs; and
``(5) for such other activities as the Administrator
determines are consistent with the purposes of this section.
``(d) Qualified Organizations.--For purposes of eligibility
for assistance under this section, a qualified organization
shall be--
``(1) a nonprofit microenterprise development organization
or program (or a group or collaborative thereof) that has a
demonstrated record of delivering microenterprise services to
disadvantaged entrepreneurs;
``(2) an intermediary;
``(3) a microenterprise development organization or program
that is accountable to a local community, working in
conjunction with a State or local government or Indian tribe;
or
``(4) an Indian tribe acting on its own, if the Indian
tribe can certify that no private organization or program
referred to in this subsection exists within its
jurisdiction.
``(e) Allocation of Assistance; Subgrants.--
``(1) Allocation of assistance.--
``(A) In general.--The Administrator shall allocate
assistance from the Administration under this section to
ensure that--
``(i) activities described in subsection (c)(1) are funded
using not less than 75 percent of amounts made available for
such assistance; and
``(ii) activities described in subsection (c)(2) are funded
using not less than 15 percent of amounts made available for
such assistance.

[[Page S356]]

``(B) Limit on individual assistance.--No single person may
receive more than 10 percent of the total funds appropriated
under this section in a single fiscal year.
``(2) Targeted assistance.--The Administrator shall ensure
that not less than 50 percent of the grants made under this
section are used to benefit very low-income persons,
including those residing on Indian reservations.
``(3) Subgrants authorized.--
``(A) In general.--A qualified organization receiving
assistance under this section may provide grants using that
assistance to qualified small and emerging microenterprise
organizations and programs, subject to such rules and
regulations as the Administrator determines to be
appropriate.
``(B) Limit on administrative expenses.--Not more than 7.5
percent of assistance received by a qualified organization
under this section may be used for administrative expenses in
connection with the making of subgrants under subparagraph
(A).
``(4) Diversity.--In making grants under this section, the
Administrator shall ensure that grant recipients include both
large and small microenterprise organizations, serving urban,
rural, and Indian tribal communities serving diverse
populations.
``(5) Prohibition on preferential consideration of certain
sba program participants.--In making grants under this
section, the Administrator shall ensure that any application
made by a qualified organization that is a participant in the
program established under section 7(m) of the Small Business
Act does not receive preferential consideration over
applications from other qualified organizations that are not
participants in such program.
``(f) Matching Requirements.--
``(1) In general.--Financial assistance under this section
shall be matched with funds from sources other than the
Federal Government on the basis of not less than 50 percent
of each dollar provided by the Administration.
``(2) Sources of matching funds.--Fees, grants, gifts,
funds from loan sources, and in-kind resources of a grant
recipient from public or private sources may be used to
comply with the matching requirement in paragraph (1).
``(3) Exception.--
``(A) In general.--In the case of an applicant for
assistance under this section with severe constraints on
available sources of matching funds, the Administrator may
reduce or eliminate the matching requirements of paragraph
(1).
``(B) Limitation.--Not more than 10 percent of the total
funds made available from the Administration in any fiscal
year to carry out this section may be excepted from the
matching requirements of paragraph (1), as authorized by
subparagraph (A) of this paragraph.
``(g) Applications for Assistance.--An application for
assistance under this section shall be submitted in such form
and in accordance with such procedures as the Administrator
shall establish.
``(h) Recordkeeping and Reporting.--
``(1) In general.--Each organization that receives
assistance from the Administration in accordance with this
section shall--
``(A) submit to the Administration not less than once in
every 18-month period, financial statements audited by an
independent certified public accountant;
``(B) submit an annual report to the Administration on its
activities; and
``(C) keep such records as may be necessary to disclose the
manner in which any assistance under this section is used.
``(2) Access.--The Administration shall have access upon
request, for the purposes of determining compliance with this
section, to any records of any organization that receives
assistance from the Administration in accordance with this
section.
``(3) Data collection.--Each organization that receives
assistance from the Administration in accordance with this
section shall collect information relating to, as
applicable--
``(A) the number of individuals counseled or trained;
``(B) the number of hours of counseling provided;
``(C) the number of startup small business concerns formed;
``(D) the number of small business concerns expanded;
``(E) the number of low-income individuals counseled or
trained; and
``(F) the number of very low-income individuals counseled
or trained.
``(i) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Administrator $15,000,000 for each of the fiscal years
2005 through 2007 to carry out the provisions of this
section, which shall remain available until expended.
``(2) Training for native american entrepreneurs.--In
addition to the amount authorized under subsection (i)(1),
there are authorized to be appropriated to the Administrator
$2,000,000 for each of the fiscal years 2005 through 2007 to
carry out the provisions of subsection (c)(4), which shall
remain available until expended.''.
(b) Transfer Provisions.--
(1) Small business act amendments.--The Small Business Act
(15 U.S.C. 631 et seq.) is amended by redesignating section
37 as section 38.
(2) Transfer.--Section 37 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (15 U.S.C.
6901 note), as so designated by subsection (a) of this
section, is transferred to, and inserted after, section 36 of
the Small Business Act.
(c) References.--All references in Federal law to the
``Program for Investment in Microentrepreneurs Act of 1999''
or the ``PRIME Act'' shall be deemed to be references to
section 37 of the Small Business Act, as added by this
section.
(d) Rule of Construction.--Nothing in this section or the
amendments made by this section shall affect any grant or
assistance provided under the Program for Investment in
Microentrepreneurs Act of 1999, before the date of enactment
of this Act, and any such grant or assistance shall be
subject to the Program for Investment in Microentrepreneurs
Act of 1999, as in effect on the day before the date of
enactment of this Act.
______

S. 139

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Vocational and Technical
Entrepreneurship Development Act of 2005''.

SEC. 2. VOCATIONAL AND TECHNICAL ENTREPRENEURSHIP DEVELOPMENT
PROGRAM.

The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 37 as section 38; and
(2) by inserting after section 36 the following:

``SEC. 37. VOCATIONAL AND TECHNICAL ENTREPRENEURSHIP
DEVELOPMENT PROGRAM.

``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Small Business Administration.
``(2) Association.--The term `Association' means the
association of small business development centers recognized
under section 21(a)(3)(A).
``(3) Program.--The term `program' means the program
established under subsection (b).
``(4) Small business development center.--The term `small
business development center' means a small business
development center described in section 21.
``(5) State small business development center.--The term
`State small business development center' means a small
business development center from each State selected by the
Administrator, in consultation with the Association and
giving substantial weight to the Association's
recommendations, to carry out the program on a statewide
basis in such State.
``(b) Establishment.--In accordance with this section, the
Administrator shall establish a program under which the
Administrator shall make grants to State small business
development centers to enable such centers to provide, on a
statewide basis, technical assistance to secondary schools,
or to postsecondary vocational or technical schools, for the
development and implementation of curricula designed to
promote vocational and technical entrepreneurship.
``(c) Minimum Grant.--Each grant awarded under the program
shall be in an amount equal to not less than $200,000.
``(d) Application.--Each State small business development
center seeking a grant under the program shall submit to the
Administrator an application in such form as the
Administrator may require. The application shall include
information regarding the goals and objectives of the
applicant for the educational programs to be assisted.
``(e) Report to Administrator.--The Administrator shall
make as a condition of each grant under the program, that not
later than 18 months after the date of receipt of the grant,
the recipient shall transmit to the Administrator a report
describing how the grant funds were used.
``(f) Cooperative Agreements and Contracts.--The
Administrator may enter into a cooperative agreement or
contract with any State small business development center
receiving a grant under this section to provide additional
assistance that furthers the purposes of this section.
``(g) Evaluation of Program.--Not later than March 31,
2008, the Administrator shall transmit to Congress a report
containing an evaluation of the program.
``(h) Clearinghouse.--The Association shall act as a
clearinghouse of information and expertise regarding
vocational and technical entrepreneurship education programs.
In each fiscal year in which grants are made under the
program, the Administrator shall provide additional
assistance to the Association to carry out the functions
described in this subsection.
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$7,000,000 for each of the fiscal years 2006 through 2008.
Such sums shall remain available until expended.''.
______

By Mrs. CLINTON (for herself and Mr. Schumer):
S. 140. A bill to provide for a domestic defense fund to improve the
Nation's homeland defense, and for other purposes; to the Committee on
Homeland Security and Governmental Affairs.
Mrs. CLINTON. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.

[[Page S357]]

There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 140

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Domestic
Defense Fund Act of 2005''.
(b) Table of Contents.--

Sec. 1. Short title; table of contents
Sec. 2. Findings
Sec. 3. Definitions
Sec. 4. Grants to States, units of general local government and Indian
tribes; authorizations
Sec. 5. Statement of activities and review
Sec. 6. Activities eligible for assistance
Sec. 7. Allocation and distribution of funds
Sec. 8. State and regional planning and communication systems
Sec. 9. Urban Area Security Initiative
Sec. 10. Flexible emergency assistance fund
Sec. 11. Federal preparedness, equipment, and training standards
Sec. 12. Nondiscrimination in programs and activities
Sec. 13. Remedies for noncompliance with requirements
Sec. 14. Reporting requirements
Sec. 15. Consultation by Attorney General
Sec. 16. Interstate agreements or compacts; purposes
Sec. 17. Matching requirements; suspension of requirements for
economically distressed areas

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) Since the September 11, 2001, terrorist attacks on our
country, communities all across America have been on the
front lines in the war against terrorism on United States
soil.
(2) Since September 11, 2001, communities have been forced
to bear a significant portion of the burden that goes along
with the war against terrorism, a burden that local
governments should not have to bear alone.
(3) Our homeland defense will only be as strong as the
weakest link at the State and local level. By providing our
communities with the resources and tools they need to bolster
emergency response efforts and provide for other emergency
response initiatives, we will have a better-prepared home
front and a stronger America.
(4) Homeland security experts have repeatedly called upon
Congress to allocate homeland security resources based on
threat- and risk-based factors. The National Commission on
Terrorist Attacks Upon the United States (referred to in this
Act as the ``9/11 Commission'') stated in its report: ``We
understand the contention that every State and city needs to
have some minimum infrastructure for emergency response. But
Federal homeland security assistance should not remain a
program for general revenue sharing. It should supplement
State and local resources based on the risks or vulnerability
that merit additional support. Congress should not use this
money as a pork barrel.'' The Commission made unequivocally
clear that the current method of allocating the majority of
Federal homeland security resources to states and local
communities, on a per capita basis alone, must be changed.
(5) Not only did the 9/11 Commission recommend that such
changes be made in how Federal homeland security funds are
allocated, but commissions before it, such as the Homeland
Security Independent Task Force of the Council on Foreign
Relations, chaired by former Senators Gary Hart and Warren
Rudman, have strongly recommended it as well.
(6) The Hart-Rudman Commission stated almost 2 years ago
that ``Congress should establish a system for allocating
scarce resources based less on dividing the spoils and more
on addressing identified threats and vulnerabilities. To do
this, the Federal Government should consider such factors as
population, population density, vulnerability assessment, and
presence of critical infrastructure within each State.''
(7) In addition to the need for threat and risk-based
funding, direct funding to our major cities and counties
across the country is necessary if we are to ensure that
these communities, who are on the front lines of our nation's
homeland defense, receive critical Federal homeland security
resources quickly and efficiently. Numerous reports by
organizations such as the United States Conference of Mayors,
have clearly demonstrated that the current method of
distributing Federal homeland security resources intended for
local communities has not worked. Too often, too many
communities receive resources, if at all, years after
Congress appropriated the subject funds.

SEC. 3. DEFINITIONS.

(a) Definitions.--As used in this Act, the following
definitions shall apply:
(1) City.--The term ``city'' means--
(A) any unit of general local government that is classified
as a municipality by the United States Bureau of the Census;
or
(B) any other unit of general local government that is a
town or township and which, in the determination of the
Secretary--
(i) possesses powers and performs functions comparable to
those associated with municipalities;
(ii) is closely settled; and
(iii) does not contain within its boundaries any
incorporated place, as defined by the United States Bureau of
the Census, that has not entered into cooperation agreements
with such town or township to undertake or to assist in the
performance of homeland security objectives.
(2) Federal grant-in-aid program.--The term ``Federal
grant-in-aid program'' means a program of Federal financial
assistance other than loans and other than the assistance
provided by this Act.
(3) Indian tribe.--The term ``Indian tribe'' means any
Indian tribe, band, group, and nation, including Alaska
Indians, Aleuts, and Eskimos, and any Alaskan Native Village,
of the United States, which is considered an eligible
recipient under the Indian Self-Determination and Education
Assistance Act (Public Law 93-638) or was considered an
eligible recipient under chapter 67 of title 31, United
States Code, prior to the repeal of such chapter.
(4) Metropolitan area.--The term ``metropolitan area''
means a standard metropolitan statistical area as established
by the Office of Management and Budget.
(5) Metropolitan city.--
(A) In general.--The term ``metropolitan city'' means--
(i) a city within a metropolitan area that is the central
city of such area, as defined and used by the Office of
Management and Budget; or
(ii) any other city, within a metropolitan area, which has
a population of not less than 50,000.
(B) Period of classification.--Any city that was classified
as a metropolitan city for at least 2 years pursuant to
subparagraph (A) shall remain classified as a metropolitan
city. Any unit of general local government that becomes
eligible to be classified as a metropolitan city, and was not
classified as a metropolitan city in the immediately
preceding fiscal year, may, upon submission of written
notification to the Secretary, defer its classification as a
metropolitan city for all purposes under this Act, if it
elects to have its population included in an urban county
under subsection (d).
(C) Election by a city.--Notwithstanding subparagraph (B),
a city may elect not to retain its classification as a
metropolitan city. Any unit of general local government that
was classified as a metropolitan city in any year, may, upon
submission of written notification to the Secretary,
relinquish such classification for all purposes under this
Act if it elects to have its population included with the
population of a county for purposes of qualifying for
assistance (for such following fiscal year) under section
5(e) as an urban county.
(6) Nonqualifying community.--The term ``nonqualifying
community'' means an area that is not a metropolitan city or
part of an urban county and does not include Indian tribes.
(7) Population.--The term ``population'' means total
resident population based on data compiled by the United
States Bureau of the Census and referable to the same point
or period of time.
(8) Secretary.--The term ``Secretary'' means the Secretary
of the Department of Homeland Security.
(9) State.--The term ``State'' means any State of the
United States, or any instrumentality thereof approved by the
Governor; and the Commonwealth of Puerto Rico, the United
States Virgin Islands, American Samoa, Guam, and the Northern
Mariana Islands.
(10) Unit of general local government.--The term ``unit of
general local government'' means any city, county, town,
township, parish, village, or other general purpose political
subdivision of a State; a combination of such political
subdivisions is recognized by the Secretary; and the District
of Columbia.
(11) Urban county.--The term ``urban county'' means any
county within a metropolitan area.
(b) Basis and Modification of Definitions.--
(1) Basis.--Where appropriate, the definitions listed in
subsection (a) shall be based, with respect to any fiscal
year, on the most recent data compiled by the United States
Bureau of the Census and the latest published reports of the
Office of Management and Budget available 90 days before the
beginning of such fiscal year.
(2) Modification.--The Secretary may by regulation change
or otherwise modify the meaning of the terms defined in
subsection (a) in order to reflect any technical change or
modification thereof made subsequent to such date by the
United States Bureau of the Census or the Office of
Management and Budget.
(c) Designation of Public Agencies.--The chief executive
officer of a State or a unit of general local government may
designate 1 or more public agencies, including existing local
public agencies, to undertake activities assisted under this
Act.
(d) Inclusion of Local Governments in Urban County
Population.--With respect to program years beginning with the
program year for which grants are made available from amounts
appropriated for fiscal year 2005 under section 4, the
population of any unit of general local government which is
included in that of an urban county shall be included in the
population of such urban county for 3 program years beginning
with the program year in which its population was first so
included and shall not otherwise be eligible for a grant as a
separate entity, unless the urban county does not receive a
grant for any year during such 3-year period.
(e) Exclusion of Local Governments From Urban County
Population.--

[[Page S358]]

(1) Notification by urban county.--Any county seeking
qualification as an urban county, including any urban county
seeking to continue such qualification, shall notify each
unit of general local government, located within its
geographical boundaries and eligible to elect to have its
population excluded from that of the urban county, of its
opportunity to make such an election. Such notification
shall, at a time and in a manner prescribed by the Secretary,
be provided so as to provide a reasonable period for response
prior to the period for which such qualification is sought.
(2) Failure of local government to elect to be excluded.--
The population of any unit of general local government which
is provided such notification and which does not inform, at a
time and in a manner prescribed by the Secretary, the county
of its election to exclude its population from that of the
county shall, if the county qualifies as an urban county, be
included in the population of such urban county as provided
under subsection (d).

SEC. 4. GRANTS TO STATES, UNITS OF GENERAL LOCAL GOVERNMENT
AND INDIAN TRIBES; AUTHORIZATIONS.

(a) Authorization.--The Secretary may award grants to
States, units of general local government, and Indian tribes
to carry out activities in accordance with this Act.
(b) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out section 7--
(A) $3,500,000 for each of the fiscal years 2006 through
2009; and
(B) such sums as may be necessary for fiscal year 2010 and
each fiscal year thereafter.
(2) State, regional, and local planning, training, and
communication systems.--There are authorized to be
appropriated to carry out section 8--
(A) $1,000,000,000 for each of the fiscal years 2006
through 2009; and
(B) such sums as may be necessary for fiscal year 2010 and
each fiscal year thereafter.
(3) Urban area security initiative (uasi).--There are
authorized to be appropriated to carry out section 9--
(A) $2,000,000,000 for each of the fiscal years 2006
through 2009; and
(B) such sums as may be necessary for fiscal year 2010 and
each fiscal year thereafter.
(4) Homeland security flexible emergency assistance.--There
are authorized to be appropriated to carry out section 10--
(A) $500,000,000 for each of the fiscal years 2006 through
2009; and
(B) such sums as may be necessary for fiscal year 2010 and
each fiscal year thereafter.
(c) Supplement Not Supplant.--Funds appropriated pursuant
to the authority of this section shall be used to supplement
and not supplant full Federal funding for other first
responder programs, including--
(1) the Community Oriented Policing Services Program, as
authorized under part Q of title I of the Omnibus Crime
Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd et
seq.);
(2) the Local Law Enforcement Block Grant Program, as
authorized under the Violent Crime Control and Law
Enforcement Act of 1994 (Public Law 103-322) and described in
H.R. 728, as passed by the House of Representatives on
February 14, 1995;
(3) the Edward Byrne Memorial State and Local Law
Enforcement Assistance Programs, as authorized under part E
of title I of the Omnibus Crime Control and Safe Streets Act
of 1968 (42 U.S.C. 3750 et seq.);
(4) the Assistance to Firefighters Grant Program, as
authorized under section 33 of the Federal Fire Prevention
and Control Act of 1974 (15 U.S.C. 2229); and
(5) section 34 of the Federal Fire Prevention and Control
Act of 1974 (15 U.S.C. 2229a).

SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW.

(a) Application.--
(1) In general.--A State, metropolitan city, urban county,
or unit of general local government desiring a grant under
subsection (b) or (i) of section 7 shall submit an
application to the Secretary that contains--
(A) a statement of homeland security objectives and
projected use of grant funds; and
(B) the certifications required under paragraph (2) and, if
appropriate, subsection (b).
(2) Grantee statement.--
(A) Contents.--
(i) Local government.--In the case of metropolitan cities
or urban counties receiving grants under section 7(b) and
units of general local government receiving grants under
section 7(i)(3), the statement of projected use of funds
shall consist of proposed homeland security activities.
(ii) States.--In the case of States receiving grants under
section 7, the statement of projected use of funds shall
consist of the method by which the States will distribute
funds to units of general local government.
(B) Consultation.--In preparing the statement required
under this subsection, the grantee shall consult with
appropriate law enforcement agencies and emergency response
authorities.
(C) Final statement.--A copy of the final statement and the
certifications required under paragraph (3) and, where
appropriate, subsection (b), shall be furnished to the
Secretary and the Attorney General.
(D) Modifications.--Any final statement of activities may
be modified or amended from time to time by the grantee in
accordance with the same procedures required under this
paragraph for the preparation and submission of such
statement.
(3) Certification of enumerated criteria by grantee to
secretary.--A grant under section 7 shall not be awarded
unless the grantee certifies to the satisfaction of the
Secretary that the grantee--
(A) has developed a homeland security plan that identifies
both short- and long-term homeland security needs that have
been developed in accordance with the primary objective and
requirements of this Act; and
(B) will comply with the other provisions of this Act and
with other applicable laws.
(b) Submission of Annual Performance Reports, Audits, and
Adjustments.--
(1) In general.--Each grantee shall submit to the
Secretary, at a time determined by the Secretary, a
performance and evaluation report concerning the use of funds
made available under section 7, together with an assessment
by the grantee of the relationship of such use to the
objectives identified in the grantee's statement under
subsection (a)(2).
(2) Uniform reporting requirements.--
(A) Recommendations by national associations.--The
Secretary shall encourage and assist national associations of
grantees eligible under section 7, national associations of
States, and national associations of units of general local
government in nonqualifying areas to develop and recommend to
the Secretary, not later than 1 year after the date of
enactment of this Act, uniform recordkeeping, performance
reporting, evaluation reporting, and auditing requirements
for such grantees, States, and units of general local
government, respectively.
(B) Establishment of uniform reporting requirements.--Based
on the Secretary's approval of the recommendations submitted
pursuant to subparagraph (A), the Secretary shall establish
uniform reporting requirements for grantees, States, and
units of general local government.
(3) Reviews and audits.--Not less than annually, the
Secretary shall make such reviews and audits as may be
necessary or appropriate to determine--
(A) in the case of grants awarded under section 7(b),
whether the grantee--
(i) has carried out its activities;
(ii) where applicable, has carried out its activities and
its certifications in accordance with the requirements and
the primary objectives of this Act and with other applicable
laws; and
(iii) has a continuing capacity to carry out those
activities in a timely manner; and
(B) in the case of grants to States made under section
7(i), whether the State--
(i) has distributed funds to units of general local
government in a timely manner and in conformance to the
method of distribution described in its statement;
(ii) has carried out its certifications in compliance with
the requirements of this Act and other applicable laws; and
(iii) has made such reviews and audits of the units of
general local government as may be necessary or appropriate
to determine whether they have satisfied the applicable
performance criteria described in subparagraph (A).
(4) Adjustments.--The Secretary may make appropriate
adjustments in the amount of the annual grants in accordance
with the Secretary's findings under this subsection. With
respect to assistance made available to units of general
local government under section 7(i)(3), the Secretary may
adjust, reduce, or withdraw such assistance, or take other
action as appropriate in accordance with the Secretary's
reviews and audits under this subsection, except that funds
already expended on eligible activities under this Act shall
not be recaptured or deducted from future assistance to such
units of general local government.
(c) Audits.--Insofar as they relate to funds provided under
this Act, the financial transactions of recipients of such
funds may be audited by the General Accounting Office under
such rules and regulations as may be prescribed by the
Comptroller General of the United States. The representatives
of the General Accounting Office shall have access to all
books, accounts, records, reports, files, and other papers,
things, or property belonging to or in use by such recipients
pertaining to such financial transactions and necessary to
facilitate the audit.
(d) Metropolitan City as Part of Urban County.--In any case
in which a metropolitan city is located, in whole or in part,
within an urban county, the Secretary may, upon the joint
request of such city and county, approve the inclusion of the
metropolitan city as part of the urban county for purposes of
submitting a statement under subsection (a) and carrying out
activities under this Act.

SEC. 6. ACTIVITIES ELIGIBLE FOR ASSISTANCE.

Activities assisted under this Act may include--
(1) funding additional law enforcement, fire, and emergency
resources, including covering overtime expenses;
(2) purchasing and refurbishing personal protective
equipment for fire, police, and emergency personnel and
acquire state-of-the-art technology to improve communication
and streamline efforts;
(3) improving cyber and infrastructure security by
improving--
(A) security for water treatment plants, distribution
systems, other water infrastructure, nuclear power plants,
electrical grids, and other energy infrastructure;
(B) security for tunnels, bridges, locks, canals, railway
systems, airports, land and water ports, and other
transportation infrastructure;
(C) security for oil and gas pipelines and storage
facilities;

[[Page S359]]

(D) security for chemical plants and transportation of
hazardous substances;
(E) security for agriculture infrastructure; and
(F) security for national icons and Federal facilities that
may be terrorist targets;
(4) assisting local emergency planning committees so that
local public agencies can design, review, and improve
disaster response systems;
(5) assisting communities in coordinating their efforts and
sharing information with all relevant agencies involved in
responding to terrorist attacks;
(6) establishing timely notification systems that enable
communities to communicate with each other when a threat
emerges;
(7) improving communication systems to provide information
to the public in a timely manner about the facts of any
threat and the precautions the public should take; and
(8) devising a homeland security plan, including
determining long-term goals and short-term objectives,
evaluating the progress of the plan, and carrying out the
management, coordination, and monitoring of activities
necessary for effective planning implementation.

SEC. 7. ALLOCATION AND DISTRIBUTION OF FUNDS.

(a) Set-Aside for Indian Tribes.--
(1) In general.--The Secretary shall reserve 1 percent of
the amount appropriated for each fiscal year for grants
pursuant to section 4(b)(1) (excluding the amounts for
activities described in section 6) for grants to Indian
tribes.
(2) Selection of indian tribes.--
(A) In general.--The Secretary shall distribute amounts
under this paragraph to Indian tribes on the basis of a
competition conducted pursuant to specific criteria for the
selection of Indian tribes to receive such amounts.
(B) Rulemaking.--The Secretary, after notice and public
comment, shall promulgate regulations, which establish the
criteria described in subparagraph (A).
(b) Allocation to Metropolitan Cities and Urban Counties.--
(1) Allocation percentage.--Of the amount remaining after
allocations have been made to Indian tribes under subsection
(a), the Secretary shall, not later than 60 days after the
date on which such funds are appropriated, allocate and
directly transfer 70 percent to metropolitan cities and urban
counties.
(2) Entitlement.--Except as otherwise specifically
authorized, each metropolitan city and urban county shall be
entitled to an annual grant, to the extent authorized beyond
fiscal year 2008, from such allocation in an amount not to
exceed its basic amount computed pursuant to subsections (c)
and (d).
(c) Computation of Amount Allocated to Metropolitan
Cities.--
(1) Vulnerability and threat factors.--The Secretary shall
calculate the amount to be allocated to each metropolitan
city, which shall bear the same ratio to the allocation for
all metropolitan cities as the weighted average of--
(A) the population (including tourist, military, and
commuting populations) of the metropolitan city divided by
the population of all metropolitan cities;
(B) the population density of the metropolitan city;
(C) the proximity of the metropolitan city to international
borders;
(D) the vulnerability of the metropolitan city as it
pertains to chemical security;
(E) the vulnerability of the metropolitan city as it
pertains to nuclear security;
(F) the vulnerability of the metropolitan city as it
pertains to land and water port security;
(G) the vulnerability of the metropolitan city as it
pertains to the security of energy infrastructure;
(H) the vulnerability of the metropolitan city as it
pertains to the security of inland waterway infrastructure;
(I) the vulnerability of the metropolitan city as it
pertains to the security of freight and passenger rail
transportation infrastructure;
(J) the vulnerability of the metropolitan city as it
pertains to the security of aviation infrastructure;
(K) the vulnerability of the metropolitan city as it
pertains to the security of agriculture infrastructure;
(L) the proximity of the metropolitan city to the nearest
national icons and Federal facilities that may be a terrorist
target, as determined by the Department of Homeland Security,
and the proximity of all metropolitan cities to the nearest
national icons and Federal buildings that may be a terrorist
target, as determined by the Department of Homeland Security;
and
(M) the threat to the metropolitan city based upon
intelligence information from the Department of Homeland
Security;
(2) Clarification of computation ratios.--
(A) Relative weight of factors.--In determining the
weighted average of the ratios under paragraph (1)--
(i) threat, as defined by paragraph (1)(M), shall
constitute 25 percent;
(ii) population, as defined by paragraph (1)(A), shall
constitute 20 percent;
(iii) population density, as defined by paragraph (1)(B),
shall constitute 15 percent; and
(iv) the remaining factors shall be equally weighted.
(B) Population density.--The metropolitan cities shall be
ranked according to the density of their populations in
calculating the weighted average of this factor. The
population density ratio shall be 1 divided by the total
number of metropolitan cities, not to exceed 100.
(C) Proximity to international borders.--If a metropolitan
city is located within 50 miles of an international border,
the ratio under paragraph (1)(C) shall be 1 divided by the
total number of metropolitan cities, not to exceed 100, which
are located within 50 miles of an international border.
(D) Vulnerability as it pertains to chemical security.--If
a metropolitan city is within the vulnerable zone of a worst-
case chemical release (as specified in the most recent risk
management plans filed with the Environmental Protection
Agency or another instrument development by the Environmental
Protection Agency or the Department of Homeland Security that
captures the same information for the same facilities), the
ratio under paragraph (1)(D) shall be 1 divided by the total
number of metropolitan cities that are within such a zone,
not to exceed 100.
(E) Vulnerability as it pertains to nuclear security.--If a
metropolitan city is located within 50 miles of an operating
nuclear power plant, as identified by the Nuclear Regulatory
Commission, the ratio under paragraph (1)(E) shall be 1
divided by the total number of metropolitan cities, not to
exceed 100, which are located within 50 miles of an operating
nuclear power plant.
(F) Vulnerability as it pertains to port security.--If a
metropolitan city is located within 50 miles of--
(i) one of the 75 largest United States ports, as stated by
the Department of Transportation, Bureau of Transportation
Statistics, United States Ports Report by All Land Modes; or
(ii) one of the 25 largest United States water ports by
metric tons and value, as stated by the Department of
Transportation, Maritime Administration, United States
Foreign Waterborne Transportation Statistics,

the ratio under paragraph (1)(F) shall be 1 divided by the
total number of metropolitan cities that are located within
50 miles of a United States land or water port, not to exceed
100.
(G) Vulnerability as it pertains to energy infrastructure
security.--If a metropolitan city is among the 100
metropolitan cities that are closest to, or within 50 miles
of, non-nuclear power generating plants, compressors, and
other significant components of critical energy
infrastructure as identified by the Department of Energy or
the Department of Homeland Security, the ratio under
paragraph (1)(G) shall be 1 divided by the total number of
metropolitan cities that are located within 50 miles of
critical energy infrastructure, not to exceed 100.
(H) Vulnerability as it pertains to inland waterway
infrastructure security.--If a metropolitan city is among the
100 metropolitan cities that are closest to, or within 50
miles of, the most significant locks, canals, and other
components of critical inland waterway system infrastructure
as identified by the Department of Transportation, the ratio
under paragraph (1)(H) shall be 1 divided by the total number
of metropolitan cities that are located within 50 miles of
critical inland water infrastructure, not to exceed 100.
(I) Vulnerability as it pertains to rail transportation
infrastructure security.--If a metropolitan city is among the
100 metropolitan cities that are closest to, or within 50
miles of, the largest railroad hubs and other significant
components of critical freight and passenger rail
infrastructure, as identified by the Department of
Transportation, the ratio under paragraph (1)(I) shall be 1
divided by the total number of metropolitan cities that are
located within 50 miles of critical inland water
infrastructure, not to exceed 100.
(J) Vulnerability as it pertains to aviation infrastructure
security.--If a metropolitan city is among the 100
metropolitan cities that are closest to, or within 50 miles
of, major passenger or cargo airports that are significant
components of the Nation's air transportation infrastructure
as identified by the Department of Transportation, the ratio
under paragraph (1)(J) shall be 1 divided by the total number
of metropolitan cities that are located within 50 miles of
critical aviation transportation infrastructure, not to
exceed 100.
(K) Vulnerability as it pertains to agriculture
infrastructure security.--If a metropolitan city is among the
100 metropolitan cities that are closest to, or within 50
miles of, major feed yards, food processing facilities, and
other significant components of the nation's agriculture
infrastructure, as defined and determined by the Department
of Agriculture and the Department of Homeland Security, the
ratio under paragraph (1)(K) shall be 1 divided by the total
number of metropolitan cities that are located within 50
miles of critical agriculture infrastructure, not to exceed
100.
(L) Proximity to national icons and federal buildings.--If
a metropolitan city is among the 100 metropolitan cities that
are closest to, or within 50 miles of, national icons and
Federal buildings that the Department of Homeland Security
determines are most vulnerable with respect to a terrorist

[[Page S360]]

attack, the ratio under paragraph (1)(L) shall be 1 divided
by the total number of metropolitan cities that are located
within 50 miles of such icons or Federal buildings, not to
exceed 100.
(M) Intelligence.--If a metropolitan city is among the 100
metropolitan cities that have been identified by the
Department of Homeland Security as being special alert or
heightened alert status for the longest periods of time, the
ratio under paragraph (1)(M) shall be 1 divided by the total
number of metropolitan cities that have been identified by
the Department of Homeland Security, not to exceed 100.
(d) Computation of Amount Allocated to Urban Counties.--
(1) Vulnerability and threat factors.--The Secretary shall
determine the amount to be allocated to each urban county,
which shall bear the same ratio to the allocation for all
urban counties as the weighted average of--
(A) the population (including tourist, military, and
commuting populations) of the urban county divided by the
population of all urban counties;
(B) the population density of the urban county;
(C) the proximity of the urban county to international
borders;
(D) the vulnerability of the urban county as it pertains to
chemical security;
(E) the vulnerability of the urban county as it pertains to
nuclear security;
(F) the vulnerability of the urban county as it pertains
land and water port security;
(G) the vulnerability of the urban county as it pertains to
the security of energy infrastructure;
(H) the vulnerability of the urban county as it pertains to
the security of inland waterway infrastructure;
(I) the vulnerability of the urban county as it pertains to
the security of freight and passenger rail transportation
infrastructure;
(J) the vulnerability of the urban county as it pertains to
the security of aviation infrastructure;
(K) the vulnerability of the urban county as it pertains to
the security of agriculture infrastructure;
(L) the proximity of the urban county to the nearest
national icons and Federal facilities that may be a terrorist
target, as determined by the Department of Homeland Security,
and the proximity of all urban counties to the nearest
national icons and Federal buildings that may be a terrorist
target, as determined by the Department of Homeland Security;
and
(M) the threat to the urban county based upon intelligence
information from the Department of Homeland Security;
(2) Clarification of computation ratios.--
(A) Relative weight of factors.--In determining the
weighted average of the ratios under paragraph (1)--
(i) threat, as defined in paragraph (1)(M), shall
constitute 25 percent;
(ii) population, as defined in paragraph (1)(A), shall
constitute 20 percent;
(iii) population density, as defined in paragraph (1)(B),
shall constitute 15 percent; and
(iv) the remaining factors shall be equally weighted.
(B) Population density.--The population density ratio shall
be 1 divided by the total number of urban counties, not to
exceed 100. The urban counties shall be ranked according to
the density of their populations in calculating the weighted
average of this factor.
(C) Proximity to international borders.--If an urban county
is located within 50 miles of an international border, the
ratio under paragraph (1)(C) shall be 1 divided by the total
number of urban counties, not to exceed 100, which are
located within 50 miles of an international border.
(D) Vulnerability as it pertains to chemical security.--If
an urban county is within the vulnerable zone of a worst-case
chemical release (as specified in the most recent risk
management plans filed with the Environmental Protection
Agency or another instrument development by the Environmental
Protection Agency or the Department of Homeland Security that
captures the same information for the same facilities), the
ratio under paragraph (1)(D) shall be 1 divided by the total
number of urban counties that are within such a zone, not to
exceed 100.
(E) Vulnerability as it pertains to nuclear security.--If
an urban county is located within 50 miles of an operating
nuclear power plant, as identified by the Nuclear Regulatory
Commission, the ratio under paragraph (1)(E) shall be 1
divided by the total number of urban counties, not to exceed
100, which are located within 50 miles of an operating
nuclear power plant.
(F) Vulnerability as it pertains to port security.--If an
urban county is located within 50 miles of--
(i) one of the 75 largest United States ports, as stated by
the Department of Transportation, Bureau of Transportation
Statistics, United States Ports Report by All Land Modes; or
(ii) one of the 25 largest United States water ports by
metric tons and value, as stated by the Department of
Transportation, Maritime Administration, United States
Foreign Waterborne Transportation Statistics, the ratio under
paragraph (1)(F) shall be 1 divided by the total number of
urban counties that are located within 50 miles of a United
States land or water port, not to exceed 100.
(G) Vulnerability as it pertains to energy infrastructure
security.--If an urban county is among the 100 urban counties
that are closest to, or within 50 miles of, non-nuclear power
generating plants, compressors, and other significant
components of critical energy infrastructure as identified by
the Department of Energy or the Department of Homeland
Security, the ratio under paragraph (1)(G) shall be 1 divided
by the total number of urban counties that are located within
50 miles of critical energy infrastructure, not to exceed
100.
(H) Vulnerability as it pertains to inland waterway
infrastructure security.--If an urban county is among the 100
urban counties that are closest to, or within 50 miles of,
the most significant locks, canals, and other components of
critical inland waterway system infrastructure as identified
by the Department of Transportation, the ratio under
paragraph (1)(H) shall be 1 divided by the total number of
urban counties that are located within 50 miles of critical
inland water infrastructure, not to exceed 100.
(I) Vulnerability as it pertains to rail transportation
infrastructure security.--If an urban county is among the 100
urban counties that are closest to, or within 50 miles of,
the largest railroad hubs and other significant components of
critical freight and passenger rail infrastructure, as
identified by the Department of Transportation, the ratio
under paragraph (1)(I) shall be 1 divided by the total number
of urban counties that are located within 50 miles of
critical inland water infrastructure, not to exceed 100.
(J) Vulnerability as it pertains to aviation infrastructure
security.--If an urban county is among the 100 urban counties
that are closest to, or within 50 miles of, major passenger
or cargo airports that are significant components of the
Nation's air transportation infrastructure as identified by
the Department of Transportation, the ratio under paragraph
(1)(J) shall be 1 divided by the total number of urban
counties that are located within 50 miles of critical
aviation transportation infrastructure, not to exceed 100.
(K) Vulnerability as it pertains to agriculture
infrastructure security.--If urban county is among the 100
urban counties that are closest to, or within 50 miles of,
major feed yards, food processing facilities, and other
significant components of the Nation's agriculture
infrastructure, as defined and determined by the Department
of Agriculture and the Department of Homeland Security, the
ratio under paragraph (1)(K) shall be 1 divided by the total
number of urban counties that are located within 50 miles of
critical agriculture infrastructure, not to exceed 100.
(L) Proximity to national icons and federal buildings.--If
an urban county is among the 100 urban counties that are
closest to, or within 50 miles of, national icons and Federal
buildings that the Department of Homeland Security determines
are most vulnerable with respect to a terrorist attack, the
ratio under paragraph (1)(L) shall be 1 divided by the total
number of urban counties that are located within 50 miles of
such icons or Federal buildings, not to exceed 100.
(M) Intelligence.--If an urban county is among the 100
urban counties that have been identified by the Department of
Homeland Security as being special alert or heightened alert
status for the longest periods of time, the ratio under
paragraph (1)(M) shall be 1 divided by the total number of
urban counties that have been identified by the Department of
Homeland Security, not to exceed 100.
(e) Exclusions.--
(1) In general.--In computing amounts or exclusions under
subsection (d) with respect to any urban county, units of
general local government located in the county that are not
included in the population of the county in determining the
eligibility of the county to receive a grant under this
subsection shall be excluded, except that any independent
city (as defined by the Bureau of the Census) shall be
included if it--
(A) is not part of any county;
(B) is not eligible for a grant;
(C) is contiguous to the urban county;
(D) has entered into cooperation agreements with the urban
county which provide that the urban county is to undertake or
to assist in the undertaking of essential community
development and housing assistance activities with respect to
such independent city; and
(E) is not included as a part of any other unit of general
local government for purposes of this section.
(2) Independent cities.--Any independent city that is
included in any fiscal year for purposes of computing amounts
pursuant to the preceding sentence shall not be eligible to
receive assistance under subsection (i) for that fiscal year.
(f) Inclusions.--
(1) Local government straddling county line.--In computing
amounts under subsection (d) with respect to any urban
county, there shall be included all of the area of any unit
of local government which is part of, but is not located
entirely within the boundaries of, such urban county if--
(A) the part of such unit of local government that is
within the boundaries of such urban county would otherwise be
included in computing the amount for such urban county under
this section; and
(B) the part of such unit of local government that is not
within the boundaries of such urban county is not included as
a part

[[Page S361]]

of any other unit of local government for the purpose of this
section.
(2) Use of grant funds outside urban county.--Any amount
received under this section by an urban county described
under paragraph (1) may be used with respect to the part of
such unit of local government that is outside the boundaries
of such urban county.
(g) Population.--
(1) Effect of consolidation.--Where data are available, the
amount to be allocated to a metropolitan city that has been
formed by the consolidation of 1 or more metropolitan cities
within an urban county shall be equal to the sum of the
amounts that would have been allocated to the urban county or
cities and the balance of the consolidated government, if
such consolidation had not occurred.
(2) Limitation.--Paragraph (1) shall apply only to a
consolidation that--
(A) included all metropolitan cities that received grants
under this section for the fiscal year preceding such
consolidation and that were located within the urban county;
(B) included the entire urban county that received a grant
under this section for the fiscal year preceding such
consolidation; and
(C) took place on or after January 1, 2005.
(3) Growth rate.--The population growth rate of all
metropolitan cities defined in section 3(a)(6) shall be based
on the population of--
(A) metropolitan cities other than consolidated governments
the grant for which is determined under this paragraph; and
(B) cities that were metropolitan cities before their
incorporation into consolidated governments.
(4) Entitlement share.--For purposes of calculating the
entitlement share for the balance of the consolidated
government under this subsection, the entire balance shall be
considered to have been an urban county.
(h) Reallocation.--
(1) In general.--Except as provided under paragraph (2),
any amounts allocated to a metropolitan city or an urban
county under this section that are not received by the city
or county for a fiscal year because of failure to meet the
requirements of subsection (a) or (b) of section 5, or that
otherwise became available, shall be reallocated in the
succeeding fiscal year to the other metropolitan cities and
urban counties in the same metropolitan area that certify to
the satisfaction of the Secretary that they would be
adversely affected by the loss of such amounts from the
metropolitan area.
(2) Ratio.--The amount of the share of funds reallocated
under this subsection for any metropolitan city or urban
county shall bear the same ratio to the total of such
reallocated funds in the metropolitan area as the amount of
funds awarded to the city or county for the fiscal year in
which the reallocated funds become available bears to the
total amount of funds awarded to all metropolitan cities and
urban counties in the same metropolitan area for that fiscal
year.
(3) Transfer.--Notwithstanding paragraphs (1) and (2), the
Secretary may, upon request, transfer to any metropolitan
city the responsibility for the administration of any amounts
received, but not obligated, by the urban county in which
such city is located if--
(A) such city was an included unit of general local
government in such county prior to the qualification of such
city as a metropolitan city;
(B) such amounts were designated and received by such
county for use in such city prior to the qualification of
such city as a metropolitan city; and
(C) such city and county agree to such transfer of
responsibility for the administration of such amounts.
(i) Allocation to States on Behalf of Non-qualifying
Communities.--
(1) In general.--Of the amount appropriated pursuant to
section 4 that remains after allocations under subsections
(a) and (b), the Secretary shall allocate 30 percent among
the States for use in nonqualifying communities.
(2) Allocation formula.--
(A) Factors.--The Secretary shall make the allocation for
each State based on factors such as threat, vulnerability,
population, population density, the presence of critical
infrastructure, and other factors considered appropriate by
the Secretary.
(B) Pro-rata reduction.--The Secretary shall make a pro
rata reduction of each amount allocated to the nonqualifying
communities in each State under subparagraph (A) so that the
nonqualifying communities in each State will receive the same
percentage of the total amount available under this
subsection as the percentage that such communities would have
received if the total amount available had equaled the total
amount allocated under subparagraph (A).
(3) Distribution.--
(A) States.--A State shall distribute amounts it receives
under this subsection to units of general local government
located in nonqualifying areas of the State in such manner
and at such time as the Secretary shall prescribe, consistent
with the statement submitted under section 5(a), and not
later than 45 days after the date on which the State receives
such amounts from the Federal Government.
(B) Certification.--Before a State may receive or
distribute amounts allocated under this subsection, the State
must certify that--
(i) with respect to units of general local government in
nonqualifying areas, the State--

(I) provides, or will provide, technical assistance to
units of general local government in connection with homeland
security initiatives;
(II) will not refuse to distribute such amounts to any unit
of general local government on the basis of the particular
eligible activity selected by such unit of general local
government to meet its homeland security objectives, except
that this clause may not be considered to prevent a State
from establishing priorities in distributing such amounts on
the basis of the activities selected; and
(III) has consulted with local elected officials from among
units of general local government located in nonqualifying
areas of that State in determining the method of distribution
of funds required by subparagraph (A); and

(ii) each unit of general local government to be
distributed funds will be required to identify its homeland
security objectives, and the activities to be undertaken to
meet such objectives.
(4) Minimum amount.--
(A) In general.--Except as provided under subparagraph (B),
each State shall be allocated, for each fiscal year
authorized under this Act and under this section, the greater
of--
(i) 0.25 percent of the total amount appropriated in the
fiscal year for grants to States that are not located on an
international border under this section;
(ii) 0.45 percent of the fatal amount appropriated in the
fiscal year for grants to States that are located on an
international border; or
(iii) the amount the State would otherwise be allocated
under the formula set forth in this section.
(B) Exception.--Notwithstanding subparagraph (A), the
United States Virgin Islands, American Samoa, Guam, and the
Northern Mariana Islands shall each be allocated 0.25 percent
of the total amount appropriated in each fiscal year for
grants to States under this section.
(5) Administration.--
(A) In general.--Each State shall be responsible for the
administration of all funds received and distributed under
paragraph (1). Except as provided under subparagraph (B), the
State shall pay for all administrative expenses incurred by
the State in carrying out its responsibilities under this
Act.
(B) Federal share.--From the amounts received by each State
for distribution in nonqualifying areas, the State may deduct
an amount to pay--
(i) the first $150,000 of its administrative expenses under
this subsection; and
(ii) 50 percent of any State administrative expenses under
this subsection in excess of $150,000, which amount shall not
exceed 2 percent of the amount received by the State under
paragraph (1).
(C) Distribution.--Any distribution by the Secretary under
paragraph (1) shall be made in accordance with--
(i) determinations of the Secretary;
(ii) statements submitted and the other requirements under
section 5 (except for subsection (c));
(iii) regulations and procedures prescribed by the
Secretary.
(D) Reallocation.--
(i) Failure to comply.--Any amounts allocated for use in a
State under paragraph (1) that are not received by the State
for any fiscal year because of failure to meet the
requirements of subsection (a) or (b) of section 5 shall be
added to amounts allocated to all States under paragraph (1)
for the succeeding fiscal year.
(ii) Closeout.--Any amounts allocated for use in a State
under paragraph (1) that become available as a result of the
closeout of a grant made by the Secretary under this section
in nonqualifying areas of the State shall be added to amounts
allocated to the State under paragraph (1) for the fiscal
year in which such amounts become available.
(6) Single unit.--Any combination of units of general local
governments may not be required to obtain recognition by the
Secretary to be treated as a single unit of general local
government for purposes of this subsection.
(7) Deduction.--From the amounts received under paragraph
(1) for distribution in nonqualifying areas, the State may
use not more than 1 percent to provide technical assistance
to local governments.
(8) Applicability.--Any activities conducted with amounts
received by a unit of general local government under this
subsection shall be subject to the applicable provisions of
this Act and other Federal law in the same manner and to the
same extent as activities conducted with amounts received by
a unit of general local government under subsection (a).
(j) Qualifications and Determinations.--The Secretary may
prescribe such qualification or submission dates as the
Secretary determines to be necessary to permit the
computations and determinations required by this section to
be made in a timely manner, and all such computations and
determinations shall be final and conclusive.
(k) Pro Rata Reduction and Increase.--
(1) Reduction.--If the total amount available for
distribution in any fiscal year to metropolitan cities and
urban counties under this section is insufficient to provide
the

[[Page S362]]

amounts to which metropolitan cities and urban counties would
be entitled under this section, and funds are not otherwise
appropriated to meet the deficiency, the Secretary shall meet
the deficiency through a pro rata reduction of all amounts
determined under this section.
(2) Increase.--If the total amount available for
distribution in any fiscal year to metropolitan cities and
urban counties under this section exceeds the amounts to
which metropolitan cities and urban counties would be
entitled under this section, the Secretary shall distribute
the excess through a pro rata increase of all amounts
determined under this section.

SEC. 8. STATE AND REGIONAL PLANNING AND COMMUNICATION
SYSTEMS.

(a) Allocations.--From the amounts appropriated pursuant to
section 4(b)(2), the Secretary shall allocate $1,000,000,000
to States, regional cooperations, and units of general local
government for--
(1) homeland defense planning within the States;
(2) providing increased security through additional first
responder personnel;
(3) purchasing and refurbishing personal protective
equipment for first responder personnel;
(4) homeland defense planning within the regions;
(5) the development and maintenance of Statewide training
facilities and homeland security best-practices
clearinghouses; and
(6) the development and maintenance of communications
systems that can be used between and among first responders,
including law enforcement, fire, and emergency medical
personnel.
(b) Use of Funds.--Of the amount allocated under subsection
(a)--
(1) $500,000,000 shall be used by the States for homeland
defense planning and coordination within each State;
(2) $50,000,000 shall be used by regional cooperations and
regional, multistate, or intrastate authorities for homeland
defense planning and coordination within each region;
(3) $50,000,000 shall be used by the States to develop and
maintain statewide training facilities and best-practices
clearinghouses; and
(4) $400,000,000 shall be used by the States and units of
general local government to develop and maintain
communications systems that can be used between and among
first responders at the State and local level, including law
enforcement, fire, and emergency personnel.
(c) Allocations to States.--
(1) In general.--Amounts allocated to States under this
section shall be allocated among the States based on factors
such as threat, vulnerability, population, population
density, the presence of critical infrastructure, and other
factors considered appropriate by the Secretary.
(2) Minimum amount provision.--The provision under section
7(i)(4) relating to a minimum amount shall apply to amounts
allocated to States under this section.
(3) Local communications systems.--
(A) In general.--Not less than 50 percent of the amounts
allocated under subsection (b)(4) shall be used for the
development and maintenance of local communications systems.
(B) Distribution of funds.--Each State shall distribute
amounts reserved for local communications systems in that
State under subparagraph (A) to units of general local
government not later than 45 days after the State receives
such amounts from the Federal Government.
(d) Allocations to Regional Cooperations.--Funds allocated
under subsection (b)(2) shall be allocated to regional
cooperations and regional, multistate, or intrastate
authorities, based upon the population of the areas covered
by each regional cooperative.

SEC. 9. URBAN AREA SECURITY INITIATIVE.

(a) Allocations.--
(1) In general.--From the amounts appropriated pursuant to
section 4(b)(3), the Secretary shall allocate $2,000,000 for
discretionary grants made under the Urban Area Security
Initiative to high-threat, high-risk urban areas, as
determined by the Secretary, for rail security, port
security, inter-city bus security, trucking industry
security, and high-threat non-profit organizations.
(2) Distribution.--Grant funds awarded under this section
shall be transferred directly to Urban Areas Security
Initiative recipients not later than 60 days after the date
on which funds are appropriated pursuant to section 4(b)(3).
(b) Selection Criteria.--In selecting high-threat, high-
risk urban area grantees under this section, the Secretary
shall consider--
(1) credible threat;
(2) vulnerability;
(3) the presence of critical infrastructure, including
infrastructure described in section 7;
(4) population;
(5) population density;
(6) identified needs of public agencies; and
(7) other factors considered appropriate by the Secretary.
(c) Homeland Security Plan.--Each grantee awarded a grant
under this section shall submit a homeland security plan to
the State in which it is located and to the Secretary that
describes the intended use of grant funds received under this
section.
(d) Minimum Amount.--Section 1014(c)(3) of the USA PATRIOT
ACT (42 U.S.C. 3711(c)(3)) and section 7(i)(4) of this Act
shall not apply to funds awarded under this section.

SEC. 10. FLEXIBLE EMERGENCY ASSISTANCE FUND.

(a) In General.--From the amounts appropriated pursuant to
section 4(b)(4), $500,000,000 shall be used to create a
flexible emergency assistance fund, from which the Secretary
shall provide funds directly to State and units of local
government that incur extraordinary homeland security costs.
(b) Release of Funds.--The Secretary may release emergency
assistance funds to a State or local community as the
Secretary determines to be appropriate, including--
(1) when the Secretary determines that a State or local
community may be the specific target of a terrorist threat;
(2) when a local community is the venue of a high profile
trial related to homeland security or terrorism;
(3) when the State or local community has been asked to
assist in a Federal investigation concerning homeland
security or terrorism; and
(4) when an agency of the Federal Government has requested
the State or local community to assist that agency in
performing homeland security functions.
(c) Reimbursements.--The Secretary may disburse flexible
emergency assistance funds to reimburse States and units of
general local government for increased personnel costs
associated with the activation of first responders who serve
in the Reserves or National Guard.
(d) Minimum Amount.--Section 1014(c)(3) of the USA PATRIOT
ACT (42 U.S.C. 3711(c)(3)) and section 7(i)(4) of this Act
shall not apply to funds awarded under this section.

SEC. 11. FEDERAL PREPAREDNESS, EQUIPMENT, AND TRAINING
STANDARDS.

(a) In General.--The Department of Homeland Security shall
develop national homeland security preparedness, first
responder training, and equipment standards, and best
practices to facilitate the most effective and efficient use
of funds authorized under this Act.
(b) Consultation.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall develop the
standards described in subsection (a) in consultation with
first responders, States, local communities, nongovernmental
homeland security experts, and such other persons and
organizations as the Secretary determines to be appropriate.
(c) Reports.--
(1) Development of standards and best practices.--The
Secretary shall submit a report to Congress on the progress
made in developing the standards and best practices described
in subsection (a)--
(A) not later than 90 days after the date of enactment of
this Act; and
(B) not later than 180 days after the date of enactment of
this Act.
(2) Allocation methods.--The Secretary shall submit a
report to Congress detailing the specific methods used to
make the allocations under section 9. The report shall be
submitted in unclassified form to the greatest extent
consistent with the protection of law enforcement-sensitive
information and classified information and the administration
of applicable law. The report may contain a classified annex,
if necessary.

SEC. 12. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

(a) In General.--No person in the United States shall on
the ground of race, color, national origin, religion, or sex
be excluded from participation in, be denied the benefits of,
or be subjected to discrimination under any program or
activity funded in whole or in part with funds made available
under this Act.
(b) Age or Handicap.--Any prohibition against
discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with
respect to an otherwise qualified handicapped individual as
provided in section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) shall also apply to any such program or activity.

SEC. 13. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS.

If the Secretary finds, after reasonable notice and
opportunity for a hearing, that a recipient of assistance
under this Act has failed to comply substantially with any
provision of this Act, the Secretary shall--
(1) terminate payments to the recipient under this Act;
(2) reduce payments to the recipient under this Act by an
amount equal to the amount of such payments which were not
expended in accordance with this Act; or
(3) limit the availability of payments under this Act to
programs, projects, or activities not affected by such
failure to comply.

SEC. 14. REPORTING REQUIREMENTS.

(a) In General.--Not later than 180 days after the end of
each fiscal year in which assistance is awarded under this
Act, the Secretary shall submit to Congress a report
containing--
(1) a description of the progress made in accomplishing the
objectives under this Act;
(2) a summary of the use of such funds during the preceding
fiscal year; and
(3) a description of the activities carried out under
section 7.
(b) Reports to Secretary.--The Secretary may require
recipients of assistance under this Act to submit such
reports and other information as may be necessary in order
for the Secretary to comply with subsection (a).

SEC. 15. CONSULTATION BY ATTORNEY GENERAL.

In carrying out the provisions of this Act including the
issuance of regulations, the Secretary shall consult with the
Attorney

[[Page S363]]

General and other Federal departments and agencies
administering Federal grant-in-aid programs.

SEC. 16. INTERSTATE AGREEMENTS OR COMPACTS; PURPOSES.

The consent of Congress is hereby given to any 2 or more
States to enter into agreements or compacts, not in conflict
with any law of the United States--
(1) for cooperative effort and mutual assistance in support
of homeland security planning and programs carried out under
this Act as they pertain to interstate areas and to
localities within such States; and
(2) to establish such agencies, joint or otherwise, that
the States consider desirable for making such agreements and
compacts effective.

SEC. 17. MATCHING REQUIREMENTS; SUSPENSION OF REQUIREMENTS
FOR ECONOMICALLY DISTRESSED AREAS.

(a) Matching Requirement.--Grant recipients shall
contribute, from funds other than those received under this
Act, an amount equal to 10 percent of the total funds
received under this Act, which shall be used in accordance
with the grantee's statement of homeland security objectives.
(b) Waiver for Economic Distress.--The Secretary shall
waive the matching requirement under subsection (a) for grant
recipients that the Secretary determines to be economically
distressed.
______

By Mr. LEVIN (for himself and Mr. Jeffords):
S. 141. A bill to amend part A of title IV of the Social Security Act
to allow up to 24 months of vocational educational training to be
counted as a work activity under the temporary assistance to needy
families program; to the Committee on Finance.
I am pleased to be joined by Senator Jeffords in reintroducing
legislation that seeks to add an important measure of flexibility to a
provision of the Temporary Assistance for Needy Families program, TANF,
under the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996. The legislation we are introducing increases the limit on
the amount of vocational education training that a State can count
towards meeting its work participation rate, from 12 to 24 months.
This legislation enjoys the support of the American Association of
University Women, with over 100,000 members; The Workforce Alliance, a
coalition of experienced leaders nationwide from the field of workforce
development, who know what works in preparing people for jobs; the
National Association of State Directors of Career Technical Education
Consortium; the Center for law and Social Policy and the American
Association of Community Colleges.
Under the pre-1996 Aid to Families with Dependent Children program,
recipients could participate in post-secondary vocational training or
community college programs for up to 24 months. While I support TANF's
emphasis on moving welfare recipients more quickly into jobs, I am
troubled by the restriction on post-secondary education training,
limiting it to 12 months. One year of vocational education is, under
current law, an approved work activity, but the second year of post-
secondary education study is not.
The limitation on post-secondary education and training raises a
number of concerns, not the least of which is whether individuals may
be forced into lower paying, short-term employment that will lead them
back onto public assistance because they are unable to support
themselves or their families. Well, according to recent studies, this
is exactly what has happened in far too many cases.
According to a findings of the Congressional Research Service,
although the majority of recipients who have left the welfare rolls
left because they became employed, most remained poor. The research
also revealed that the hourly wage for these former welfare recipients
ranged from $5.50 to $8.80 per hour.
Study after study indicates that short-term training programs raise
the income of workers only marginally, while completion of at least a
2-year associate degree has the greater potential of breaking the cycle
of poverty for welfare recipients. According to the U.S. Census Bureau,
the mean earnings of adults with an associate degree are 20 percent
higher than adults who have not achieved such a degree.
In June of 2003, we were very pleased that our proposal was included
in the Senate Finance Committee reported bill, which reauthorized TANF.
However, the reauthorization bill was not considered by the full
Senate. Rather the Temporary Assistance for Needy Families Act has been
twice extended. It is our hope that the Senate will again act favorably
and expeditiously on this legislation and that the House will support
this much-needed State flexibility. We must do what is necessary to
achieve TANF's intended goal of getting families permanently off of
welfare and onto self-sufficiency.
All citizens should have the opportunity to become productive and
successful members of the workforce. Again, I urge my colleagues to act
quickly on this legislation. This modification will give the States the
flexibility they need to improve the economic status of families across
America.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 141

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. INCREASE IN NUMBER OF MONTHS OF VOCATIONAL
EDUCATIONAL TRAINING COUNTED AS A WORK ACTIVITY
UNDER THE TANF PROGRAM.

Section 407(d)(8) of the Social Security Act (42 U.S.C.
607(d)(8)) is amended by striking ``12'' and inserting
``24''.
______

By Mr. DAYTON:
S. 143. A bill to ensure that Members of Congress do not receive
better prescription drug benefits than medicare beneficiaries; to the
Committee on Homeland Security and Governmental Affairs.
Mr. DAYTON. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 143

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Taste of Our Own Medicine
Act of 2005''.

SEC. 2. LIMITATION ON PRESCRIPTION DRUG BENEFITS OF MEMBERS
OF CONGRESS.

(a) Limitation on Benefits.--Notwithstanding any other
provision of law, the actuarial value of the prescription
drug benefits of any Member of Congress enrolled in a health
benefits plan under chapter 89 of title 5, United States
Code, may not exceed the actuarial value of basic
prescription drug coverage (as defined in section 1860D-
2(a)(3) of the Social Security Act (42 U.S.C. 1395w-
102(a)(3)), as added by section 101(a) of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003
(Public Law 108-173; 117 Stat. 2071)).
(b) Regulations.--The Director of the Office of Personnel
Management shall promulgate regulations to carry out this
section.
______

By Mr. KOHL (for himself and Mr. Corzine):
S. 144. A bill to change the date for regularly scheduled Federal
elections and establish polling place hours; to the Committee on Rules
and Administration.
Mr. KOHL. Mr. President, today I am introducing the Weekend Voting
Act. This legislation will change the day for Congressional and
Presidential elections from the first Tuesday in November to the first
weekend in November. This legislation is virtually identical to
legislation that I first proposed in 1997 in the 105th Congress and
most recently reintroduced in the 107th Congress.
The last two elections have revealed a glaring need for us to rethink
how we conduct elections in our Nation. The 2000 election galvanized
Congress into passing major election reform legislation. The Help
American Vote Act, which was enacted into law in 2002, was an important
step forward in establishing minimum standards for states in the
administration of federal elections and in providing funds to replace
outdated voting systems and improve election administration. The HAVA
legislation also created a new federal agency, the Election Assistance
Commission, to serve as a clearinghouse for election administration
information. That Commission is finally on its feet after a delayed
start.
However, as the 2004 election made clear, there is much that still
needs to be done.
With more and more voters needing to cast their ballots on Election
Day, we need to build on the movement

[[Page S364]]

which already exists to make it easier for Americans to cast their
ballots by providing alternatives to voting on just one election day.
Twenty-six States, including my own state of Wisconsin, now permit any
registered voter to vote by absentee ballot. These States constitute 45
percent of the voting age citizens of the United States. Twenty three
states permit in-person early voting at election offices or at other
satellite locations. The state of Oregon now conducts statewide
elections completely by mail. These innovations are critical if we are
to conduct fair elections for it has become unreasonable to expect that
a nation of 294 million people can line up at the same time and cast
their ballots at the same time. And if we continue to try to do so, we
will encounter even more reports of broken machines and long lines in
the rain and registration errors that create barriers to voting.
That is why I have been a long-time advocate of moving our Federal
election day from the first Tuesday after the first Monday in November
to the first weekend in November. Holding our federal elections on a
weekend will create more opportunities for voters to cast their ballots
and will help end the gridlock at the polling places which threaten to
undermine our elections.
Under this bill, polls would be open nationwide for a uniform period
of time from Saturday, 6 p.m. eastern time to Sunday, 6 p.m. eastern
time. Polls in other time zones would also open and close at this time.
Election officials would be permitted to close polls during the
overnight hours if they determine it would be inefficient to keep them
open. Because the polls are open from Saturday to Sunday, they also
would not interfere with religious observances.
Keeping polls open the same hours across the continental United
States, also addresses the challenge of keeping results on one side of
the country, or even a State, from influencing voting in places where
polls are still open. Moving elections to the weekend will expand the
pool of buildings available for polling stations and people available
to work at the polls, addressing the critical shortage of poll workers.
Most important, weekend voting has the potential to increase voter
turnout by giving all voters ample opportunity to get to the polls
without creating a national holiday. There is already evidence that
holding elections on a non-working day can increase voter turnout. In
one survey of 44 democracies, 29 held elections on holidays or weekends
and in all these cases voter turnout surpassed our country's voter
participation rates. Closer to home, weekend voting in some California
counties resulted in increased voter turnout compared to comparable
elections held on Tuesdays.
In 2001, the National Commission on Federal Election Reform
recommended that we move our federal election day to a national
holiday, in particular Veterans Day. As expected, the proposal was not
well received among veterans and I do not endorse such a move, but I
share the Commission's goal of moving election day to a non-working
day.
Since the mid-19th century, election day has been on the first
Tuesday of November. Ironically, this date was selected because it was
convenient for voters. Tuesdays were traditionally court day, and land-
owning voters were often coming to town anyway.
Just as the original selection of our national voting day was done
for voter convenience, we must adapt to the changes in our society to
make voting easier for the regular family. Sixty percent of all
households have two working adults. Since most polls in the United
States are open only 12 hours, from 7 a.m. to 7 p.m., voters often have
only one or two hours to vote. As we saw in this last election, long
lines in many polling places kept some waiting much longer than one or
two hours. If voters have children, and are dropping them off at day
care, or if they have a long work commute, there is just not enough
time in a workday to vote.
With long lines and chaotic polling places becoming the unacceptable
norm in many communities, we have an obligation to reexamine how our
Nation votes. In the last election, too many Americans had to confront
a variety of obstacles to cast their ballots at their local polling
places. We can do better by offering more flexible voting hours for
Americans, especially working families.
Serious allegations have been raised about voting irregularities in
Ohio during the 2004 presidential election. I agree with many of my
colleagues that these allegations must be investigated to the fullest
extent possible because every eligible citizen in this nation must have
an equal opportunity to exercise the constitutional right to cast a
vote in federal elections.
In the meantime, we have an obligation to do more than investigate.
If we are to grant all Americans an equal opportunity to participate in
the electoral process, and to elect our representatives in this great
democracy, then we must be willing to reexamine all aspects of voting
in America. Changing our election day to a weekend may seem like a
change of great magnitude. Given the stakes--the integrity of future
elections--I hope my colleagues will recognize it as a common sense
proposal whose time has come.
I ask unanimous consent that the text of the Weekend Voting Act be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 144

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Weekend Voting Act''.

SEC. 2. CHANGE IN CONGRESSIONAL ELECTION DAY TO SATURDAY AND
SUNDAY.

Section 25 of the Revised Statutes (2 U.S.C. 7) is amended
to read as follows:
``Sec. 25. The first Saturday and Sunday after the first
Friday in November, in every even numbered year, are
established as the days for the election, in each of the
States and Territories of the United States, of
Representatives and Delegates to the Congress commencing on
the 3d day of January thereafter.''.

SEC. 3. CHANGE IN PRESIDENTIAL ELECTION DAY TO SATURDAY AND
SUNDAY.

Section 1 of title 3, United States Code, is amended by
striking ``Tuesday next after the first Monday'' and
inserting ``first Saturday and Sunday after the first
Friday''.

SEC. 4. POLLING PLACE HOURS IN CONTINENTAL UNITED STATES.

(a) In General.--
(1) Presidential general election.--Chapter 1 of title 3,
United States Code, is amended--
(A) by redesignating section 1 as section 1A; and
(B) by inserting before section 1A the following:

``Sec. 1. Polling place hours in continental United States

``(a) Definitions.--In this section:
``(1) Continental united states.--The term `continental
United States' means a State (other than Alaska and Hawaii)
and the District of Columbia.
``(2) Presidential general election.--The term
`Presidential general election' means the election for
electors of President and Vice President.
``(b) Polling Place Hours.--
``(1) In general.--Each polling place in the continental
United States shall be open, with respect to a Presidential
general election, beginning on Saturday at 6:00 p.m. eastern
standard time and ending on Sunday at 6:00 p.m. eastern
standard time.
``(2) Early closing.--A polling place may close between the
hours of 12:00 p.m. (midnight) and 5:00 a.m. local time as
provided by the law of the State in which the polling place
is located.''.
(2) Congressional general election.--Section 25 of the
Revised Statutes of the United States (2 U.S.C. 7) is
amended--
(A) by redesignating section 25 as section 25A; and
(B) by inserting before section 25A the following:

``SEC. 25. POLLING PLACE HOURS IN THE CONTINENTAL UNITED
STATES.

``(a) Definitions.--In this section:
``(1) Continental united states.--The term `continental
United States' means a State (other than Alaska and Hawaii)
and the District of Columbia.
``(2) Congressional general election.--The term
`congressional general election' means the general election
for the office of Senator or Representative in, or Delegate
or Resident Commissioner to, the Congress.
``(b) Polling Place Hours.--
``(1) In general.--Each polling place in the continental
United States shall be open, with respect to a congressional
general election, beginning on Saturday at 6:00 p.m. eastern
standard time and ending on Sunday at 6:00 p.m. eastern
standard time.
``(2) Early closing.--A polling place may close between the
hours of 12:00 p.m. (midnight) and 5:00 a.m. local time as
provided by the law of the State in which the polling place
is located.''.
(b) Conforming Amendments.--
(1) The table of sections for chapter 1 of title 3, United
States Code, is amended by striking the item relating to
section 1 and inserting the following:

[[Page S365]]

``1. Polling place hours in continental United States.
``1A. Time of appointing electors.''.

(2) Sections 871(b) and 1751(f) of title 18, United States
Code, are each amended by striking ``title 3, United States
Code, sections 1 and 2'' and inserting ``sections 1A and 2 of
title 3''.
______

By Mr. ALLARD (for himself, Mr. Inhofe, Mr. Lott, Mr. Enzi, Mr.
DeMint, Mr. Santorum, Mr. Crapo, Mr. Sessions, Mr. Vitter, Mr.
Thune, Mr. Alexander, Mr. Frist, Mr. Talent, Mr. Burr, Mrs.
Hutchison, Mr. Kyl, Mrs. Dole, Mr. Martinez, Mr. Isakson, Mr.
McConnell, Mr. Hatch, Mr. Roberts, and Mr. Cornyn):
S.J. Res. 1. A joint resolution proposing an amendment to the
Constitution of the United States relating to marriage; to the
Committee on the Judiciary.
Mr. ALLARD. Mr. President, I would like to first express my gratitude
to the leadership for making the Marriage Protection Amendment a
priority in this Congress. The Marriage Protection Amendment is a
constitutional amendment that I have introduced today. It is S.J. Res.
1. In the press conference earlier today I indicated I hoped that the
designation of the number would reflect its priority with the
leadership. I realize that was an overly optimistic request, but I am
very pleased we have the support from leadership that we do and that it
is among their priority items. We have the complete support of the
leadership. They all signed as cosponsors on S.J. Res. 1.
As of this very moment, we have a quarter of the Senate who have
signed on as cosponsors. I think that is fabulous. It is certainly a
better start than we had in the last session. In the last session, if
my memory serves me correctly, I think we only had about 13 or so
cosponsors on it, even after we had the debate in the Senate. So even
before we have sent out a letter to our colleagues in the Senate, we
have 25 original cosponsors. I am excited about that.
So today we have reintroduced the Marriage Protection Amendment in
the Senate. The intent and policy goals remain the same as last year.
It is the same bill we debated on the floor of the Senate. What it does
is define marriage as a union between a man and a woman.
The amendment represents a democratic process: the voice of the
American people following recent and widespread efforts by activist
courts to change this ages-old definition of marriage.
People say, well, what about the rights of the State legislature?
What we are trying to do is protect the voice of the American people.
The right place for this to be determined is in the legislative bodies
of this country, in the Congress of the United States and each and
every legislature in every State, and not in the Federal courts. The
amendment does restrict the ability of the courts to define marriage.
The Marriage Protection Amendment does not override State and local
authority. Under the Marriage Protection Amendment, cities, States, and
private companies would still be free to determine for themselves civil
union, benefit, and partnership definitions.
The Marriage Protection Amendment would not permit the redefining of
marriage, a definition agreed upon by every civilization, culture,
ethnicity, and religion around the world.
The definition of marriage in itself is not discriminatory. Those who
have been opposed to the amendment tried to make that argument in the
last session. Even civil rights leaders, Hispanic and African
Americans, have said this is not a civil rights issue.
Congress does have a vital role to play in this debate. The policy
goals are widely agreed upon. Recent election results illustrate broad
support for the definition of marriage.
Mr. President, 14 million voters in 11 States voted for
constitutional amendments on November 2, 2004, with an average majority
of 67 percent. This reflects great support throughout the country. Some
13 States voted on the ballot issue in 2004.
Mr. President, I ask unanimous consent to have the information on
this chart printed in the Record, which illustrates what happened in
each one of those elections.
There being no objection, the material was ordered to be printed in
the Record, as follows:

2004 STATEWIDE BALLOT RESULTS ON MARRIAGE AMENDMENTS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Signatures turned
State Date of vote Referred by Vote in legislature Signatures required in Certified by SOS Outcome of vote Percentages
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1 Arkansas........... Nov. 2............. People's Initiative N/A................ 80,570............. 200,000............ Certified......... Passed............ Y: 75
N: 25
2 Georgia............ Nov. 2............. Legislature........ S: 40-14........... N/A................ N/A................ N/A............... Passed............ Y: 77
H: 122-52-3-3...... N: 23
3 Kentucky........... Nov. 2............. Legislature........ S: 33-4-1.......... N/A................ N/A................ N/A............... Passed............ Y: 75
H: 85-11........... N: 25
4 Louisiana.......... Sept. 18........... Legislature........ S: 31-6............ N/A................ N/A................ N/A............... Passed............ Y: 78
H: 88-13........... N: 22
5 Michigan........... Nov. 2............. People's Initiative N/A................ 317,757............ 500,000............ Certified......... Passed............ Y: 59
N: 41
6 Mississippi........ Nov. 2............. Legislature........ S: 51-0-1.......... N/A................ N/A................ N/A............... Passed............ Y: 86
H: 97-17........... N: 14
7 Missouri........... Aug. 3............. Legislature........ S: 26-6............ N/A................ N/A................ N/A............... Passed............ Y: 70.8
H: 90-63........... N: 29.2
8 Montana............ Nov. 2............. People's Initiative N/A................ 41,020............. 70,000............. Certified......... Passed............ Y: 66
N: 34
9 North Dakota....... Nov. 2............. People's Initiative N/A................ 25,688............. 52,000............. Certified......... Passed............ Y: 73
N: 27
10 Ohio............... Nov. 2............. People's Initiative N/A................ 322,899............ Waiting for........ Passed............ Y: 62.............
390,508............ N: 38.............
11 Oklahoma........... Nov. 2............. Legislature........ S: 38-7............ N/A................ N/A................ N/A............... Passed............ Y: 76
H: 92-4............ N: 24
12 Oregon............. Nov. 2............. People's Initiative N/A................ 100,840............ 204,360............ Certified......... Passed............ Y: 57
N: 43
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Mr. ALLARD. The emphasis here must be on the process, democratic,
deliberative, and responsive to the electorate, not to just appointed
judges and lawyers. We want the American public to have a say in this
debate. Courtrooms are not the place for this important decision about
the most fundamental institution of mankind, and that is the definition
of marriage. Courts should interpret the law, not write it.
So we are eager to begin to have hearings, to talk about the
research, to debate and have constructive dialog on this very important
issue. It is important to the American people. It is important we
continue to move forward with the momentum that has evolved as a result
of our debate last year and the momentum that has evolved as a result
of the elections of this past fall.
I am excited about introducing the Marriage Protection Amendment,
which is exactly the same amendment we debated on the floor of the
Senate last year.
Mr. President, before I wrap up, I ask unanimous consent that Senator
Coburn be added as an original cosponsor and Senator Stevens be added
as an original cosponsor.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. ALLARD. Again, in conclusion, I thank the leadership for their
support and my colleagues for their support on this particular
amendment. We had a number of elections for Senate seats where this was
a very important issue and critical to the election of many of our new
Members in the Senate. We have at least five votes that have switched
as a result of this election. I think that is the American people
having an opportunity to speak their mind.

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I can say, this amendment is to protect the voice of the American
people. The proper way to have this debate is in the legislative bodies
of America. That includes the Congress and each and every legislature.
Again, I thank the leader for his leadership on this particular
issue. I also thank my colleagues who showed up at the press conference
this morning to talk about this issue, particularly Senator Santorum,
Senator Hutchison, Senator Sessions, and Senator Thune who joined me in
the press conference. I thank them for their leadership this morning in
that press conference.
Mr. ALLARD. Mr. President, I ask unanimous consent that the text of
the joint resolution be printed in the Record.
There being no objection, the joint resolution was ordered to be
printed in the Record, as follows:

S.J. Res. 1

Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled (two-thirds of
each House concurring therein), That the following article is
proposed as an amendment to the Constitution of the United
States, which shall be valid to all intents and purposes as
part of the Constitution when ratified by the legislatures of
three-fourths of the several States:

``Article --

``Section 1. This article may be cited as the `Marriage
Protection Amendment'.
``Section 2. Marriage in the United States shall consist
only of the union of a man and a woman. Neither this
Constitution, nor the constitution of any State, shall be
construed to require that marriage or the legal incidents
thereof be conferred upon any union other than the union of a
man and a woman.''.
______

By Mr. CRAIG:
S.J. Res. 2. A joint resolution proposing an amendment to the
Constitution of the United States relative to require a balanced budget
and protect Social Security surpluses; to the Committee on the
Judiciary.
Mr. CRAIG. Mr. President, today I am reintroducing the Balanced
Budget Amendment to the Constitution of the United States. When we were
in deficit and when we were in surplus, I have always said, if we could
adopt one fundamental reform to the way the Federal Government does
business, this is it. The fiscal events of the last few years have
again demonstrated the need for this long-term, fundamental, permanent
reform.
For many Americans, one of the signs of our deep respect for the
Constitution is our acknowledgment that, in exceptional cases, a
problem rises to such a level that it can be adequately addressed only
in the Constitution--by way of a constitutional amendment.
From 1998 through 2001, Congress balanced the Federal budget. These
four budget surpluses in a row, for the first time since the 1920s, set
the modern record for balancing the Federal budget. The first
Republican Congresses in 40 years made balancing the budget our top
priority, and did what was necessary, reaching across the aisle and
working on a bipartisan basis. We ran surpluses and began the process
we needed to pay down the national debt. This in turn promised, among
other things, to help us safeguard the future of Social Security.
Then events intervened.
A return to budget deficits was caused by an economic recession and a
war begun by terrorist attacks. Even before taking office in 2001,
President Bush correctly foresaw the coming recession and prescribed
the right medicine--the tax relief that has bolstered the economy and
has saved and created jobs. The current economic recovery, in turn, has
prevented even worse Federal budget deficits.
The return to deficit spending can and should be a temporary
phenomenon. We are rebounding from the recession of 2001 and the body
blow to the economy caused by the war with terrorism.
We must do whatever it takes to win that war. Providing for the self-
defense and survival of our people and our Nation is the most
fundamental responsibility of the Federal Government. That principle
has been reflected in every significant version of the balanced budget
constitutional amendment, in exceptions for war and imminent military
threats. Historically, that principle was followed even when balancing
the budget was the norm, because the U.S. Government always has
borrowed when necessary to fight and win a war.
Beyond that, we must keep all other Federal spending under control,
so that we return, as soon as possible, to balancing the budget.
In other words, the return to deficit spending will be a temporary
problem only if we make a permanent commitment to the moral imperative
of fiscal responsibility.
We always did, and always will, need a balanced budget amendment to
our Constitution.
Even in the heady days of budget surpluses, I always maintained the
only way to guarantee that the Federal Government would stay fiscally
responsible was to add a balanced budget amendment to the Constitution.
Before we balanced the budget in 1998, the Government was deficit
spending for 28 years in a row and for 59 out of 67 years. The basic
law of political temptation--to just say ``yes''--was not repealed in
1998, but only restrained some, when we came together and briefly faced
up to the great threat to the future posed by decades of debt.
Now, the Government is back to borrowing. And for some, a return to
deficit spending seems to have been liberating, as the demands for new
spending only seem to be multiplying again.
That is why, today, I am again introducing a balanced budget
amendment to the Constitution and calling upon my colleagues to send it
to the States for ratification.
The amendment I introduce today is the same one I sponsored in the
108th Congress. This is essentially the same as the amendment that came
within a single vote of the two-thirds necessary for passage, twice in
two previous Senates. In addition, this amendment would not count the
Social Security surplus in its calculation of a balanced budget. Those
annual surpluses would be set aside exclusively to meet the future
needs of Social Security beneficiaries.
It's a new day, a new year, and a new Senate. We have the opportunity
of a fresh start and, hopefully, the wisdom of experience. Today, with
the first piece of legislation I am introducing in the 109th Congress,
I call on the Senate to safeguard the future, by considering and
passing a balanced budget amendment to the Constitution--a bill of
economic rights for our future and our children.
I ask unanimous consent that a copy of this joint resolution,
proposing a balanced budget amendment to the Constitution, be printed
in the Record.
There being no objection, the joint resolution was ordered to be
printed in the Record, as follows:

S. J. Res. 2

``Article --

``Section 1. Total outlays for any fiscal year shall not
exceed total receipts for that fiscal year, unless three-
fifths of the whole number of each House of Congress shall
provide by law for a specific excess of outlays over receipts
by a rollcall vote.
``Section 2. Total receipts shall include all receipts of
the United States Government except those derived from
borrowing. Total outlays shall include all outlays of the
United States Government except for those for repayment of
debt principal.
``Section 3. Any surplus of receipts (including
attributable interest) over outlays of the Federal Old-Age
and Survivors Insurance and the Federal Disability Insurance
Trust Funds shall not be counted for purposes of this
article. Any deficit of receipts (including attributable
interest) relative to outlays of the Federal Old-Age and
Survivors Insurance and the Federal Disability Insurance
Trust Funds shall be counted for purposes of this article,
and must be completely offset by a surplus of all other
receipts over all other outlays.
``Section 4. The limit on the debt of the United States
held by the public shall not be increased, unless three-
fifths of the whole number of each House shall provide by law
for such an increase by a rollcall vote.
``Section 5. Prior to each fiscal year, the President shall
transmit to the Congress a proposed budget for the United
States Government for that fiscal year, in which total
outlays do not exceed total receipts.
``Section 6. No bill to increase revenue shall become law
unless approved by a majority of the whole number of each
House by a rollcall vote.
``Section 7. The Congress may waive the provisions of this
article for any fiscal year

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in which a declaration of war is in effect. The provisions of
this article may be waived for any fiscal year in which the
United States is engaged in military conflict which causes an
imminent and serious military threat to national security and
is so declared by a joint resolution, adopted by a majority
of the whole number of each House, which becomes law.
``Section 8. The Congress shall enforce and implement this
article by appropriate legislation, which may rely on
estimates of outlays and receipts.
``Section 9. This article shall take effect the second
fiscal year beginning after its ratification.''.

____________________