Congressional Record, Volume 151 Issue 22 (Wednesday, March 2, 2005)

[Congressional Record Volume 151, Number 22 (Wednesday, March 2, 2005)]
[Senate]
[Pages S1932-S1952]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. SPECTER (for himself, Mr. Santorum, and Mr. Leahy):
S. 491. A bill to amend the Omnibus Crime Control and Safe Streets
Act of 1968 to expand the definition of firefighter to include
apprentices and trainees, regardless of age or duty limitations; to the
Committee on the Judiciary.
Mr. SPECTER. Mr. President, I seek recognition today to introduce the
Christopher Kangas Fallen Firefighter Apprentice Act, a bill designed
to correct a flaw in the current definition of ``firefighter'' under
the Public Safety Officer Benefits Act.
On May 4, 2002, 14-year-old Christopher Kangas was struck by a car
and killed while he was riding his bicycle in Brookhaven, PA. The local
authorities later confirmed that Christopher was out on his bike that
day for an important reason: Chris Kangas was a junior firefighter, and
he was responding to a fire emergency.
Under Pennsylvania law, 14- and 15-year-olds such as Christopher are
permitted to serve as volunteer junior firefighters. While they are not
allowed to operate heavy machinery or enter burning buildings, the law
permits them to fill a number of important support roles, such as
providing first aid. In addition, the junior firefighter program is an
important recruitment tool for fire stations throughout the
Commonwealth. In fact, prior to his death Christopher had received 58
hours of training that would have served him well when he graduated
from the junior program.
It is clear to me that Christopher Kangas was a firefighter killed in
the line of duty. Were it not for his status as a junior firefighter
and his prompt response to a fire alarm, Christopher would still be
alive today. Indeed, the Brookhaven Fire Department, Brookhaven
Borough, and the Commonwealth of Pennsylvania have all recognized
Christopher as a fallen public safety officer and provided the
appropriate death benefits to his family.
Yet, while those closest to the tragedy have recognized Christopher
as a fallen firefighter, the Federal Government has not. The U.S.
Department of Justice (DOJ) determined that Christopher Kangas was not
eligible for benefits because he was not acting within a narrow range
of duties at the time of his death that are the measured criteria to be
considered a ``firefighter,'' and therefore, was not a ``public safety
officer'' for purposes of the Public Safety Officer Benefits Act. In
order to be eligible for benefits under the Public Safety Officer
Benefits Act, an officer's death must be considered the ``direct and
proximate result of a personal injury sustained in the line of duty.''
Although the United States Code includes firefighters in the definition
of ``public safety officer'' and specifies a firefighter as ``an
individual serving as an officially-recognized or designated member of
a legally-organized volunteer fire department;'' it offers no
definition of ``line of duty''. DOJ had to defer to an arbitrarily
narrow definition of ``line of duty,'' as described in the Code of
Federal Regulations that restricts activities to the ``suppression of
fires.'' DOJ decided that the only people who qualify as firefighters
are those who play the starring role of operating a hose on a ladder or
entering a burning building. According to this interpretation, those,
such as junior firefighters, who play the essential supporting roles of
directing traffic, performing first aid, or dispatching fire vehicles
do not contribute to the act of suppressing the fire.
Any firefighter will tell you that there are many important roles to
play in fighting a fire beyond operating the hoses and ladders.
Firefighting is a team effort, and everyone in the Brookhaven Fire
Department viewed young Christopher as a full member of their team.
As a result of this DOJ determination, Christopher's family will not
receive a $267,000 Federal line-of-duty benefit. In addition,
Christopher will be barred from taking his rightful place on the
National Fallen Firefighters Memorial in Emmitsburg, MD. For a young
man who dreamed of being a firefighter and gave his life rushing to a
fire, keeping him off of the memorial is a grave injustice.
The bill I introduce today will ensure that the Federal Government
will recognize Christopher Kangas and others like him as firefighters.
The bill clarifies that all firefighters will he recognized as such
``regardless of age, status as an apprentice or trainee, or duty
restrictions imposed because of age or status as an apprentice or
trainee.'' The bill applies retroactively back to May 4, 2002 so that
Christopher, as well as three others, can benefit from it.
I urge my colleagues to support this important legislation.
______

By Mr. FRIST (for himself, Mr. Reid, and Mr. Lugar):
S. 492. A bill to make access to safe water and sanitation for
developing countries a specific policy objective of the United States
foreign assistance programs, and for other purposes; to the Committee
on Foreign Relations.
Mr. FRIST. 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. 492

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 ``Safe Water: Currency for
Peace Act of 2005''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) Water-related diseases are a human tragedy, killing and
debilitating millions of people annually, preventing millions
of people from leading healthy lives, and undermining
development efforts.
(2) Providing safe supplies of water, and sanitation and
hygiene improvements would save millions of lives by reducing
the prevalence of water-borne diseases, water-based diseases,
water-privation diseases, and water-related vector diseases.

[[Page S1933]]

(3) An estimated 1,800,000 people die of diarrhoeal
diseases every year. Ninety percent of these people are
children under the age of five who live in developing
countries. Simple household and personal hygiene measures,
such as household water treatment and safe storage and
effective hand washing with soap, reduce the burden of
diarrhoeal disease by more than 40 percent.
(4) According to the World Health Organization, 88 percent
of diarrhoeal disease can be attributed to unsafe water
supply, and inadequate sanitation and hygiene.
(5) Around the world, more than 150,000,000 people are
threatened by blindness caused by trachoma, a disease that is
spread through poor hygiene and sanitation, and aggravated by
inadequate water supply.
(6) Chronic intestinal helminth infections are a leading
source of global morbidity, including cognitive impairment
and anemia for hundred of millions of children and adults.
Access to safe water and sanitation and better hygiene
practices can greatly reduce the number of these infections.
(7) Schistosomiasis is a disease that affects 200,000,000
people, 20,000,000 of whom suffer serious consequences,
including liver and intestinal damage. Improved water
resource management to reduce infestation of surface water,
improved sanitation and hygiene, and deworming treatment can
dramatically reduce this burden.
(8) In 2002, 2,600,000,000 people lacked access to improved
sanitation. In sub-Saharan Africa, only 36 percent of the
population has access to improved sanitation. In developing
countries, only 31 percent of the population in rural areas
has access to improved sanitation.
(9) Improved management of water resources can contribute
to comprehensive strategies for controlling mosquito
populations associated with life-threatening vector-borne
diseases in developing countries, especially malaria, which
kills more than 1,000,000 people each year, most of whom are
children.
(10) Natural disasters such as floods and droughts threaten
people's health. Floods contaminate drinking-water systems
with industrial waste refuse, sewage, and human and animal
excreta. Droughts exacerbate malnutrition and limit access to
drinking water supplies. Sound water resource management can
mitigate the impact of such natural disasters.
(11) The United Nations Population Fund report entitled
``Water: A Critical Resource'' stated that ``Nearly 500
million people [suffer from] water stress or serious water
scarcity. Under current trends, two-thirds of the world's
population may be subject to moderate to high water stress by
2025''. Effective water management and equitable allocation
of scarce water supplies for all uses will become
increasingly important for meeting both human and ecosystem
water needs in the future.
(12) The participants in the World Summit on Sustainable
Development, held in Johannesburg, South Africa, in 2002,
agreed to the Plan of Implementation of the World Summit on
Sustainable Development which included an agreement to work
to reduce by one-half ``the proportion of people who are
unable to reach or afford safe drinking water,'' and ``the
proportion of people without access to basic sanitation'' by
2015.
(13) At the World Summit on Sustainable Development,
building on the U.S.-Japan Partnership for Security and
Prosperity announced in June 2001 by President Bush and Prime
Minister Koizumi, the United States and Japan announced a
Clean Water for People Initiative to cooperate in providing
safe water and sanitation to the world's poor, improve
watershed management, and increase the productivity of water.
(14) At the World Summit on Sustainable Development, the
United States announced the Water for the Poor Initiative
which committed the United States to provide $970,000,000
over 3 years to increase access to safe water and sanitation
services, improve watershed management, and increase the
productivity of water. During fiscal year 2004, the United
States provided an estimated $817,000,000 in assistance to
the Water for the Poor Initiative, including funds made
available for reconstruction activities in Iraq, of which
$388,000,000 was made available for safe drinking water and
sanitation programs.
(15) During fiscal year 2004, the United States provided
$49,000,000 in assistance for activities to provide safe
drinking water and sanitation in sub-Saharan Africa, an
amount that is equal to 6.5 percent of total United States
foreign assistance provided for all water activities in the
Water for the Poor Initiative.
(16) At the 2003 Summit of the Group of Eight in Evian,
France, the members of the Group of Eight produced a plan
entitled ``Water: A G8 Action Plan'' that stated that a lack
of water can undermine human security. The Action Plan
committed the members of the Group of Eight to playing a more
active role in international efforts to provide safe water
and sanitation to the world's poor by mobilizing domestic
resources in developing countries for water infrastructure
financing through the development and strengthening of local
capital markets and financial institutions, particularly by
establishing, where appropriate, at the national and local
levels, revolving funds that offer local currency financings,
which allow communities to finance capital-intensive water
infrastructure projects over an affordable period of time at
competitive rates.
(17) The G8 Action Plan also committed members of the Group
of Eight to provide risk mitigation mechanisms for such
revolving funds and to provide technical assistance for the
development of efficient local financial markets and building
municipal government capacity to design and implement
financially viable projects and provide, as appropriate,
targeted subsidies for the poorest communities that cannot
fully service market rate debt.
(18) The United Nations General Assembly Resolution 58/217
of February 9, 2004, proclaimed ``the period from 2005 to
2015 the International Decade for Action, `Water for Life',
to commence on World Water Day, 22 March 2005'' for the
purpose of increasing the focus of the international
community on water-related issues at all levels and on the
implementation of water-related programs and projects.

SEC. 3. WATER FOR HEALTH AND DEVELOPMENT.

(a) In General.--Part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) is amended by inserting after
section 104C the following new section:

``SEC. 104D. WATER FOR HEALTH AND DEVELOPMENT.

``(a) Finding.--Congress makes the following findings:
``(1) Access to safe water and sanitation and improved
hygiene are significant factors in controlling the spread of
disease in the developing world and positively affecting
economic development.
``(2) The health of children and other vulnerable rural and
urban populations in developing countries, especially sub-
Saharan Africa and South Asia, is threatened by a lack of
adequate safe water, sanitation, and hygiene.
``(3) Efforts to meet United States foreign assistance
objectives, including those related to agriculture, the human
immunodeficiency virus (HIV) and acquired immune deficiency
syndrome (AIDS), and the environment will be advanced by
improving access to safe water and sanitation and promoting
sound water management throughout the world.
``(4) Developing sustainable financing mechanisms,
including private sector financing, is critical to the long-
term sustainability of improved water supply, sanitation, and
hygiene.
``(5) The annual level of investment needed to meet the
water and sanitation needs of developing countries far
exceeds the amount of Official Development Assistance (ODA)
and spending by governments of developing countries, so
attracting greater public and private investment is
essential.
``(6) Long-term sustainability in the provision of access
to safe water and sanitation and in the maintenance of water
and sanitation facilities requires a legal and regulatory
environment conducive to private sector investment and
private sector participation in the delivery of water and
sanitation services.
``(7) The absence of robust domestic financial markets and
sources for long-term financing are a major impediment to the
development of water and sanitation projects in developing
countries.
``(8) At the 2003 Summit of the Group of Eight in Evian,
France, the members of the Group of Eight produced a plan
entitled `Water: A G8 Action Plan' that contemplated the
promotion of domestic revolving funds to provide local
currency financing for capital-intensive water infrastructure
projects. Innovative financing mechanisms such as revolving
funds and pooled-financings have been effective vehicles for
mobilizing domestic savings for investments in water and
sanitation both in the United States and in some developing
countries. These mechanisms can serve as a catalyst for
greater investment in water and sanitation projects by
villages, small towns, and municipalities.
``(9) The G8 Action Plan also committed members of the
Group of Eight to improving coordination and cooperation
between donors, and such improved coordination and
cooperation is essential for enlarging the beneficial impact
of donor initiatives.
``(b) Policy.--It is a major objective of United States
foreign assistance--
``(1) to promote good health and economic development by
providing assistance to expand access to safe water and
sanitation, promote sound water management, and improve
hygiene for people around the world; and
``(2) to promote, to the maximum extent practicable and
appropriate, long-term sustainability in the provision of
access to safe water and sanitation by encouraging private
investment in water and sanitation infrastructure and
services.
``(c) Authorization.--
``(1) In general.--To carry out the policy set out in
subsection (b), the President is authorized to furnish
assistance, including health information and education, to
advance good health and promote economic development by
improving the safety of water supplies, expanding access to
safe water and sanitation, promoting sound water management,
and promoting better hygiene.
``(2) Local currency.--The President may use payments made
in local currencies under an agreement made under title I of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1701 et seq.) to provide assistance under this
section, including assistance for activities related to
drilling or maintaining wells.''.
(b) Conforming Amendment.--Section 104(c) of the
Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1704(c)) is

[[Page S1934]]

amended by adding at the end the following new paragraph:
``(9) Safe water.--To provide assistance under section 104D
of the Foreign Assistance Act of 1961 to advance good health
and promote economic development by improving the safety of
water supplies, including programs related to drilling or
maintaining wells.''.

SEC. 4. PILOT PROGRAM FOR WATER SUSTAINABILITY INFRASTRUCTURE
DEVELOPMENT AND CAPACITY BUILDING.

(a) In General.--Section 104D of the Foreign Assistance Act
of 1961, as added by section 3, is amended by adding at the
end the following new subsection:
``(d) Pilot Clean Water Sustainability Infrastructure
Development Program.--
``(1) Authority for pilot program.--In order to study the
feasibility and desirability of a program to assist countries
that have a high proportion of the population that is
susceptible to water-borne illnesses as a result of a lack of
basic infrastructure for clean water and sanitation, the
President, in close coordination with the Administrator of
the United States Agency for International Development and
the Director of the Overseas Private Investment Corporation,
is authorized to establish a 5-year pilot program under which
the President may--
``(A) provide for the issuance of investment insurance,
investment guarantees, or loan guarantees, provide for direct
investment or investment encouragement, or carry out special
projects and programs for eligible investors to assist such
countries in the development of safe drinking water and
sanitation infrastructure programs; and
``(B) provide assistance to support the activities
described in subparagraphs (A) through (D) of paragraph (2)
for the purposes of--
``(i) carrying out the policy set out in subsection (b);
and
``(ii) maximizing the effectiveness of assistance provided
under subparagraph (A).
``(2) Activities supported.--Assistance provided to a
country under paragraph (1)(B) shall be used to--
``(A) assess the water development needs of such country;
``(B) design projects to address such water development
needs;
``(C) develop the capacity of individuals and institutions
in such country to carry out and maintain water development
programs through training, joint work projects, and
educational programs; and
``(D) provide long-term monitoring of water development
programs.
``(3) Geographic limitation.--The President may only
provide assistance under the pilot program under paragraph
(1) to a country based on consultation with Congress.
``(4) Additional criteria.--In making determinations of
eligibility under this subsection, the President should give
preferential consideration to projects sponsored by or
significantly involving United States small businesses or
cooperatives.
``(5) Implementation.--To the extent provided for in
advance in appropriations Acts, the President is authorized
to create such legal mechanisms as may be necessary for the
implementation of its authorities under this subsection. Such
legal mechanisms may be deemed non-Federal borrowers for
purposes of the Federal Credit Reform Act of 1990 (2 U.S.C.
661 et seq.).
``(6) Loan guarantees.--Notwithstanding any other provision
of law, the President is authorized to provide assistance
under the pilot program under paragraph (1) in the form of
partial loan guarantees, provided that such a loan guarantee
may not exceed 75 percent of the total amount of the loan.
``(7) Coordination.--The President is authorized to
coordinate the activities of each agency or department of the
United States to provide to a country assistance for an
activity described in subparagraphs (A) through (D) of
paragraph (2).
``(8) Federal agency responsibilities.--Under the direction
of the President, the head of each agency or department of
the United States is authorized to assign, detail, or
otherwise make available to the Department of State any
officer or employee of such agency or department who
possesses expertise related to an activity described in
subparagraphs (A) through (D) of paragraph (2).
``(9) Report to congress.--The President shall annually
prepare and submit to the Committee on Appropriations, the
Committee on Foreign Relations, and the Committee on Health,
Education, Labor, and Pensions of the Senate and the
Committee on Appropriations, the Committee on International
Relations, and the Committee on Energy and Commerce of the
House of Representatives a report concerning the
implementation of the pilot program under this subsection.''.
(b) Effective Date.--The amendment made by subsection (a)
shall be effective during the 5-year period beginning on the
date of enactment of this Act.

SEC. 5. SAFE WATER STRATEGY.

(a) Requirement for Strategy.--The Secretary of State, in
close coordination with the Administrator of the United
States Agency for International Development and in
consultation with other appropriate Federal agencies,
appropriate international organizations, foreign governments,
United States nongovernmental organizations, and other
appropriate entities, shall develop and implement a strategy
to further the United States foreign assistance objective to
promote economic development by promoting good health through
the provision of assistance to expand access to safe water
and sanitation, to promote sound water management, and to
improve hygiene for people around the world.
(b) Content.--The strategy required by subsection (a) shall
include--
(1) an assessment of the activities that have been carried
out, or that are planned to be carried out, by the United
States to improve hygiene or access to safe water and
sanitation by underserved rural or urban poor populations,
the countries of sub-Saharan Africa, or in countries that
receive assistance from the United States Agency for
International Development;
(2) methods to achieve long-term sustainability in the
provision of access to safe water and sanitation, the
maintenance of water and sanitation facilities, and effective
promotion of improved hygiene, in the context of appropriate
financial, municipal, health, and water management systems;
(3) methods to use United States assistance to promote
community-based approaches, including the involvement of
civil society, to further the objectives described in
subsection (a);
(4) methods to mobilize and leverage the financial,
technical, and managerial expertise of businesses,
governments, nongovernmental, and civil society in the form
of public-private alliances such as the Global Development
Alliances of the Agency which encourage innovation and
effective solutions for improving sustainable access to safe
water and sanitation;
(5) goals to further the objectives described in subsection
(a) and methods to measure whether progress is being made to
meet such goals, including indicators to measure progress and
procedures to regularly evaluate and monitor progress;
(6) assessments of the challenges and obstacles that impede
the provision of access to safe water and sanitation, as well
as the improvement of hygiene practices, critical in
developing countries;
(7) assessments of how access to safe water, sanitation,
and hygiene programs, as well as water resource programs,
effectively support the goal of combating the human
immunodeficiency virus (HIV) and the acquired immune
deficiency syndrome (AIDS);
(8) assessments of the roles that other countries or
entities, including international organizations, could play
in furthering such objective and mechanisms to establish
coordination among the United States, foreign countries, and
other entities;
(9) assessments of the level of resources that are needed
each year to further such objective; and
(10) methods to coordinate and integrate programs of the
United States to further such objective with other United
States foreign assistance programs.
(c) Reports to Congress.--
(1) Initial report.--Not later than 180 days after the date
of enactment of this Act, the President shall submit to
Congress a report that describes the strategy required by
subsection (a).
(2) Report.--Not less than once every 2 years after the
submission of the initial report under paragraph (1), the
President shall submit to Congress a report on the status of
the implementation of the strategy and progress made in
achieving the objective described in subsection (a).

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated
for each of the fiscal years 2006 through 2011 such sums as
may be necessary to carry out this Act and the amendments
made by this Act.
(b) Other Amounts.--Amounts appropriated pursuant to the
authorization of appropriations in subsection (a) shall be in
addition to the amounts otherwise available to carry out this
Act and the amendments made by this Act.
______

By Mr. GRASSLEY (for himself, Mr. Cochran, Mr. Lott, and Mr.
Bunning):
S. 493. A bill to amend title II of the Higher Education Act of 1965
to increase teacher familiarity with the educational needs of gifted
and talented students, and for other purposes; to the Committee on
Health, Education, Labor, and Pensions.
Mr. GRASSLEY. Mr. President, I am reintroducing a bill I proposed in
the last Congress to help prepare new teachers to recognize and meet
the needs of gifted and talented students. According to the federally
funded National Research Center on the Gifted and Talented, the large
majority of gifted and talented students spend at least 80 percent of
their time in a regular education classroom. Of course, gifted students
are not gifted only 20 percent of the time. They are gifted all the
time. Unfortunately, the lack of teacher preparation means that gifted
students are not being challenged during much of the time they spend in
the classroom. Their educational needs are not being met.
Unfortunately, there are many misconceptions about the needs of
gifted children. You might say, ``Why should we worry about these
children? They

[[Page S1935]]

are the smart ones that the teacher doesn't have to spend so much time
on.'' First of all, I'm not talking about your average straight A
student who maybe learns the material easily, but much the same way as
other students in the classroom. What makes a child gifted and talented
is not how well the child does in school, but how he or she learns. A
straight A student may or may not be gifted and a gifted student may
not always get good grades in school. Gifted and talented children
actually have a different way of looking at the world. They tend to
have distinct approaches to learning and interacting socially, and they
frequently learn at a different pace, and to different depths, than
others their age. The bottom line is that gifted and talented children
have unique learning needs that need to be met in order for them to
achieve to their potential.
To illustrate this point, I would like to remind the Senate of an
example I first cited two years ago while speaking on another piece of
legislation related to gifted and talented students. It concerns a
young elementary school student from Iowa City named Jose. Jose was not
putting much effort into his schoolwork and was getting bad grades. He
was a good kid but he also had a tendency to act up in class. He got
along with his classmates, but didn't have many friends. Jose's teacher
was frustrated and couldn't figure out what to do with him. Still,
Jose's parents saw in him a real hunger for learning and had his IQ
tested over the summer. It turns out that what the teacher saw as
behavior problems or a lack of work ethic were really symptoms of a
gifted student who was not being properly challenged. Jose started
leaving his regular classroom a couple of times a week to work with a
teacher who was trained in meeting the needs of gifted students. As a
result of the added stimulation he received, Jose started to enjoy
school more, made friends with his gifted peers, and began to succeed
with his regular school work.
Jose was fortunate that his parents were so perceptive and were able
to have him assessed privately. However, not all parents are in a
position to recognize the signs of giftedness or to advocate for their
child's needs. Even in schools where there are active gifted and
talented programs, many students go unidentified. Moreover, even with
pull-out programs like the one I described that supplement the
classroom experience and other strategies like grade skipping, it is
inevitable that many gifted students will spend much of their time in a
regular classroom with non-gifted students of the same age but far
different ability levels. This is not necessarily a bad thing, but it
means that all classroom teachers should have at least a basic
knowledge about how to recognize and meet the needs of gifted and
talented students in their classrooms. However, a national survey of
third and fourth grade teachers by the National Research Center on the
Gifted and Talented found that 61 percent of teachers had no training
whatsoever in teaching highly able students.
Only one State currently requires regular classroom teachers to have
coursework in gifted education. Some of the techniques used in
classrooms to accommodate gifted kids include differentiated
curriculum, cluster grouping, and accelerated learning. The time to
make sure teachers have the necessary knowledge is when prospective
teachers are in their pre-service teacher training programs. If
teachers aren't exposed to information and strategies to meet the needs
of gifted students in their pre-service training, they may never
acquire the necessary knowledge and skills. With the Higher Education
Act due for reauthorization, this is the perfect opportunity to
encourage schools of education and States to take a greater look at how
they can improve teacher preparation programs to integrate instruction
on the unique needs of gifted learners.
Title II of the Higher Education Act already contains grants designed
to enhance the quality of teacher preparation programs. My bill would
simply add allowable uses to these existing grants to provide an
incentive for states and teacher training programs to incorporate the
needs of gifted and talented students into teacher preparation and
licensure requirements. I should point out that this change would not
cost the taxpayers any additional money.
Under current law, Title II State grants are awarded directly to
States and are to be used to reform State teacher preparation
requirements. The law lists seven potential reforms under the allowable
uses for grant funds. The first three allowable uses include:
strengthening state requirements for teacher preparation programs to
ensure teachers are highly competent in their respective academic
content areas, reforming certification and licensure requirements with
respect to competency in content areas, and providing alternatives to
traditional teacher preparation programs. My legislation would add
another allowable use, referencing these three reforms, to encourage
states to incorporate a focus on the learning needs of gifted and
talented students into reforms of state requirements for teacher
preparation programs, reforms of state certification and licensure
requirements, or new alternative teacher preparation programs. In
addition, my bill would add a new allowable use so that States could
use grant funds to create or expand new-teacher mentoring programs on
the needs of gifted and talented students. This way, new teachers could
learn from veteran teachers about how to identify classroom indicators
of giftedness and provide appropriate instruction to gifted students.
My bill would also add language to the Partnership Grants, which
provide funds to partnerships among teacher preparation institutions,
school of arts and sciences, and high-need school districts to
strengthen new teacher education. These grants come with three required
uses, including reforming teacher preparation programs to ensure
teachers are highly competent in academic content areas, providing pre-
service clinical experience, and creating opportunities for enhanced
and ongoing professional development. One allowable use for which a
partnership may use funds is preparing teachers to work with diverse
populations, including individuals with disabilities and limited
English proficient individuals. To this section, my legislation would
add gifted and talented students. Recognizing that every teacher could
have gifted students in his or her classroom, my bill would also add a
new allowable use so that teacher preparation programs could use the
funds to infuse teacher coursework with units on the characteristics of
high-ability learners. In other words, the idea is not to require
additional courses, but rather to discuss how to accommodate for the
needs of gifted students throughout the teacher preparation curriculum
when new teachers are learning how to present lessons.
Again, my bill does not create a new grant program and doesn't cost
any more money. It simply provides an incentive through existing grant
programs to encourage States and teacher preparation programs to make
sure that new teachers have the skills they will need to identify and
meet the unique needs of the gifted and talented students who will be
in their classrooms. I think we all recognize how important a quality
teacher can be in helping a student achieve. This is no less true with
gifted and talented students. Having a teacher that is equipped to meet
the unique needs of gifted students can mean the difference between a
child hating school and a child loving school; a child falling behind,
and a child succeeding beyond all expectations. When a gifted child is
left behind, the loss of human potential is doubly tragic. Gifted and
talented children are a national resource that we must nurture now for
our nation's future. This modest step could reap rewards for
generations to come. I urge my colleagues to join me in this investment
in our future.
______

By Mr. AKAKA (for himself, Ms. Collins, Mr. Grassley, Mr. Levin,
Mr. Leahy, Mr. Voinovich, Mr. Lieberman, Mr. Coleman, Mr.
Durbin, Mr. Dayton, Mr. Pryor, Mr. Johnson, Mr. Lautenberg, and
Mr. Carper):
S. 494. A bill to amend chapter 23 of title 5, United States Code, to
clarify the disclosures of information protected from prohibited
personnel practices, require a statement in nondisclosure policies,
forms, and agreements that such policies, forms, and agreements conform
with certain disclosure

[[Page S1936]]

protections, provide certain authority for the Special Counsel, and for
other purposes; to the Committee on Homeland Security and Governmental
Affairs.
Mr. AKAKA. Mr. President. Today I rise to reintroduce the Federal
Employee Protection of Disclosures Act, which was unanimously reported
out of the Senate Homeland Security and Governmental Affairs Committee
last year with strong bipartisan support. I am joined again in this
effort by Senator Collins, chairman of the committee, whose focus on
this issue and willingness to work with me in developing this
legislation demonstrates how important it is to ensure that Federal
employees are protected when they disclose government waste, fraud, and
abuse. I am pleased to be joined by our committee's ranking member,
Senator Lieberman.
Once again, I am proud to have the support of Senator Charles
Grassley and Senator Carl Levin, both of whom are longstanding
advocates of Federal whistleblowers. My colleagues from Iowa and
Michigan championed the 1989 Whistleblower Protection Act and have
supported my legislation since 2001. Their support, along with the
strong bipartisan support of Senators Leahy, Voinovich, Coleman,
Durbin, Dayton, Pryor, Johnson, Lautenberg, and Carper demonstrates the
importance of this good government legislation.
Our legislation will strengthen the protections given to Federal
whistleblowers and encourage employees to come forward to disclose
government waste, fraud, and abuse. Providing meaningful protection to
whistleblowers fosters an environment that promotes the disclosure of
government wrongdoing and mismanagement that may adversely affect the
American public. If Federal employees fear reprisal for blowing the
whistle, we fail to protect the whistleblower, taxpayers, and, in
notable instances, national security and our public health.
The most recent example is the disclosure by Dr. David Graham of the
Food and Drug Administration, FDA, who exposed problems at the FDA
regarding the safety of new pharmaceuticals. By revealing the threat
posed to public health and the safety of pharmaceuticals currently on
the market, as well as the organizational structure of the Center for
Drug Evaluation and Research, CDER, and CDER's internal conflict of
interest in evaluating the safety of drugs both pre- and post-
marketing, Dr. Graham risked his career to report hazards to our public
health.
As a direct result of Dr. Graham's decision to speak publicly,
Americans are now more aware of the potential risks of various
pharmaceuticals and government leaders are seeking ways to increase
transparency of the oversight of new medications. Two weeks ago, the
FDA announced the creation of a new Drug Safety Oversight Board to
monitor the safety of prescription and over-the-counter drugs on the
market more effectively. This new board is aimed at eliminating the
conflict of interest found under the current CDER structure as
disclosed by Dr. Graham.
Other examples of whistle blowers who uncovered government
mismanagement and threats to public safety include: Ms. Colleen Rowley
who disclosed institutional problems at the Federal Bureau of
Investigation prior to 2001 which affected national security, Mr.
Richard Foster, who sought to disclose the actual cost of pending
Medicare legislation to Congress, and Border Patrol Agents Mark Hall
and Bob Lindemann, who revealed security lapses at our northern border
immediately after September 11, 2001.
In spite of the positive changes resulting from their disclosures, we
are concerned that the very public struggles these individuals have
endured after alerting Americans to waste, fraud, abuse, and security
and health violations in the Federal Government may discourage others
from coming forward. The root of these struggles lies in part with
problems with the current legal structure and interpretation of the
Whistleblower Protection Act. As a result of recent court decisions,
legitimate whistleblowers have been denied adequate protection from
retaliatory I practices. In fact, Federal whistleblowers have prevailed
on the merits of their claims before the Federal Circuit Court of
Appeals, which has sole jurisdiction over Federal employee
whistleblower appeals, only once since 1994.
To address these issues, our legislation would clarify congressional
intent regarding the scope of protection provided to whistleblowers;
provide for an independent determination as to whether a whistleblower
was retaliated against by the revocation of his or her security
clearance; establish a pilot program to suspend the Federal Circuit
Court of Appeals' monopoly on Federal employee whistleblower cases for
a period of five years; and provide the Office of Special Counsel,
which is charged with representing the interests of Federal
whistleblowers, the authority to file amicus briefs with federal courts
in support of whistleblowers.
Several of the provisions in the legislation reflect our efforts to
address concerns raised by the Justice Department. While the Department
still has objections to the intent of the legislation, partially
because of its role in representing the interests of the alleged
retaliatory agencies, I will continue to work with the Department. I am
optimistic that we can reach an agreement on this good government
measure in the near future.
Congress has a duty to provide strong and meaningful protections for
Federal whistleblowers. Only when Federal employees are confident that
they will not face retaliation will they feel comfortable coming
forward to disclose information that can be used to improve government
operations, our national security, and the health of our citizens. I
look forward to working with my colleagues to make this goal a reality.
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. 494

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

SECTION 1. PROTECTION OF CERTAIN DISCLOSURES OF INFORMATION
BY FEDERAL EMPLOYEES.

(a) Short Title.--This Act may be cited as the ``Federal
Employee Protection of Disclosures Act''.
(b) Clarification of Disclosures Covered.--Section
2302(b)(8) of title 5, United States Code, is amended--
(1) in subparagraph (A)--
(A) by striking ``which the employee or applicant
reasonably believes evidences'' and inserting ``, without
restriction to time, place, form, motive, context, or prior
disclosure made to any person by an employee or applicant,
including a disclosure made in the ordinary course of an
employee's duties, that the employee or applicant reasonably
believes is evidence of''; and
(B) in clause (i), by striking ``a violation'' and
inserting ``any violation'';
(2) in subparagraph (B)--
(A) by striking ``which the employee or applicant
reasonably believes evidences'' and inserting ``, without
restriction to time, place, form, motive, context, or prior
disclosure made to any person by an employee or applicant,
including a disclosure made in the ordinary course of an
employee's duties, of information that the employee or
applicant reasonably believes is evidence of''; and
(B) in clause (i), by striking ``a violation'' and
inserting ``any violation (other than a violation of this
section)''; and
(3) by adding at the end the following:
``(C) any disclosure that--
``(i) is made by an employee or applicant of information
required by law or Executive order to be kept secret in the
interest of national defense or the conduct of foreign
affairs that the employee or applicant reasonably believes is
direct and specific evidence of--

``(I) any violation of any law, rule, or regulation;
``(II) gross mismanagement, a gross waste of funds, an
abuse of authority, or a substantial and specific danger to
public health or safety; or
``(III) a false statement to Congress on an issue of
material fact; and

``(ii) is made to--

``(I) a member of a committee of Congress having a primary
responsibility for oversight of a department, agency, or
element of the Federal Government to which the disclosed
information relates and who is authorized to receive
information of the type disclosed;
``(II) any other Member of Congress who is authorized to
receive information of the type disclosed; or
``(III) an employee of Congress who has the appropriate
security clearance and is authorized to receive information
of the type disclosed.''.

(c) Covered Disclosures.--Section 2302(a)(2) of title 5,
United States Code, is amended--
(1) in subparagraph (B)(ii), by striking ``and'' at the
end;
(2) in subparagraph (C)(iii), by striking the period at the
end and inserting ``; and''; and

[[Page S1937]]

(3) by adding at the end the following:
``(D) `disclosure' means a formal or informal communication
or transmission, but does not include a communication
concerning policy decisions that lawfully exercise
discretionary authority unless the employee providing the
disclosure reasonably believes that the disclosure
evidences--
``(i) any violation of any law, rule, or regulation; or
``(ii) gross management, a gross waste of funds, an abuse
of authority, or a substantial and specific danger to public
health or safety.''.
(d) Rebuttable Presumption.--Section 2302(b) of title 5,
United States Code, is amended by amending the matter
following paragraph (12) to read as follows:

``This subsection shall not be construed to authorize the
withholding of information from Congress or the taking of any
personnel action against an employee who discloses
information to Congress, except that an employee or applicant
may be disciplined for the disclosure of information
described in paragraph (8)(C)(i) to a Member or employee of
Congress who is not authorized to receive such information.
For purposes of paragraph (8), any presumption relating to
the performance of a duty by an employee who has authority to
take, direct others to take, recommend, or approve any
personnel action may be rebutted by substantial evidence. For
purposes of paragraph (8), a determination as to whether an
employee or applicant reasonably believes that they have
disclosed information that evidences any violation of law,
rule, regulation, gross mismanagement, a gross waste of
funds, an abuse of authority, or a substantial and specific
danger to public health or safety shall be made by
determining whether a disinterested observer with knowledge
of the essential facts known to and readily ascertainable by
the employee would reasonably conclude that the actions of
the Government evidence such violations, mismanagement,
waste, abuse, or danger.''.
(e) Nondisclosure Policies, Forms, and Agreements; Security
Clearances; and Retaliatory Investigations.--
(1) Personnel action.--Section 2302(a)(2)(A) of title 5,
United States Code, is amended--
(A) in clause (x), by striking ``and'' after the semicolon;
and
(B) by redesignating clause (xi) as clause (xiv) and
inserting after clause (x) the following:
``(xi) the implementation or enforcement of any
nondisclosure policy, form, or agreement;''.
``(xii) a suspension, revocation, or other determination
relating to a security clearance or any other access
determination by a covered agency;
``(xiii) an investigation, other than any ministerial or
nondiscretionary fact finding activities necessary for the
agency to perform its mission, of an employee or applicant
for employment because of any activity protected under this
section; and''.
(2) Prohibited personnel practice.--Section 2302(b) of
title 5, United States Code, is amended--
(A) in paragraph (11), by striking ``or'' at the end;
(B) in paragraph (12), by striking the period and inserting
a semicolon; and
(C) by inserting after paragraph (12) the following:
``(13) implement or enforce any nondisclosure policy, form,
or agreement, if such policy, form, or agreement does not
contain the following statement: `These provisions are
consistent with and do not supersede, conflict with, or
otherwise alter the employee obligations, rights, or
liabilities created by Executive Order No. 12958; section
7211 of title 5, United States Code (governing disclosures to
Congress); section 1034 of title 10, United States Code
(governing disclosure to Congress by members of the
military); section 2302(b)(8) of title 5, United States Code
(governing disclosures of illegality, waste, fraud, abuse, or
public health or safety threats); the Intelligence Identities
Protection Act of 1982 (50 U.S.C. 421 et seq.) (governing
disclosures that could expose confidential Government
agents); and the statutes which protect against disclosures
that could compromise national security, including sections
641, 793, 794, 798, and 952 of title 18, United States Code,
and section 4(b) of the Subversive Activities Control Act of
1950 (50 U.S.C. 783(b)). The definitions, requirements,
obligations, rights, sanctions, and liabilities created by
such Executive order and such statutory provisions are
incorporated into this agreement and are controlling'; or
``(14) conduct, or cause to be conducted, an investigation,
other than any ministerial or nondiscretionary fact finding
activities necessary for the agency to perform its mission,
of an employee or applicant for employment because of any
activity protected under this section.''.
(3) Board and court review of actions relating to security
clearances.--
(A) In general.--Chapter 77 of title 5, United States Code,
is amended by inserting after section 7702 the following:

``Sec. 7702a. Actions relating to security clearances

``(a) In any appeal relating to the suspension, revocation,
or other determination relating to a security clearance or
access determination, the Merit Systems Protection Board or
any reviewing court--
``(1) shall determine whether paragraph (8) or (9) of
section 2302(b) was violated;
``(2) may not order the President or the designee of the
President to restore a security clearance or otherwise
reverse a determination of clearance status or reverse an
access determination; and
``(3) subject to paragraph (2), may issue declaratory
relief and any other appropriate relief.
``(b)(1) If, in any final judgment, the Board or court
declares that any suspension, revocation, or other
determination with regards to a security clearance or access
determination was made in violation of paragraph (8) or (9)
of section 2302(b), the affected agency shall conduct a
review of that suspension, revocation, access determination,
or other determination, giving great weight to the Board or
court judgment.
``(2) Not later than 30 days after any Board or court
judgment declaring that a security clearance suspension,
revocation, access determination, or other determination was
made in violation of paragraph (8) or (9) of section 2302(b),
the affected agency shall issue an unclassified report to the
congressional committees of jurisdiction (with a classified
annex if necessary), detailing the circumstances of the
agency's security clearance suspension, revocation, other
determination, or access determination. A report under this
paragraph shall include any proposed agency action with
regards to the security clearance or access determination.
``(c) An allegation that a security clearance or access
determination was revoked or suspended in retaliation for a
protected disclosure shall receive expedited review by the
Office of Special Counsel, the Merit Systems Protection
Board, and any reviewing court.
``(d) For purposes of this section, corrective action may
not be ordered if the agency demonstrates by a preponderance
of the evidence that it would have taken the same personnel
action in the absence of such disclosure.''.
(B) Technical and conforming amendment.--The table of
sections for chapter 77 of title 5, United States Code, is
amended by inserting after the item relating to section 7702
the following:

``7702a. Actions relating to security clearances.''.

(f) Exclusion of Agencies by the President.--Section
2302(a)(2)(C) of title 5, United States Code, is amended by
striking clause (ii) and inserting the following:
``(ii)(I) the Federal Bureau of Investigation, the Central
Intelligence Agency, the Defense Intelligence Agency, the
National Imagery and Mapping Agency, the National Security
Agency; and
``(II) as determined by the President, any executive agency
or unit thereof the principal function of which is the
conduct of foreign intelligence or counterintelligence
activities, if the determination (as that determination
relates to a personnel action) is made before that personnel
action; or''.
(g) Attorney Fees.--Section 1204(m)(1) of title 5, United
States Code, is amended by striking ``agency involved'' and
inserting ``agency where the prevailing party is employed or
has applied for employment''.
(h) Disciplinary Action.--Section 1215(a)(3) of title 5,
United States Code, is amended to read as follows:
``(3)(A) A final order of the Board may impose--
``(i) disciplinary action consisting of removal, reduction
in grade, debarment from Federal employment for a period not
to exceed 5 years, suspension, or reprimand;
``(ii) an assessment of a civil penalty not to exceed
$1,000; or
``(iii) any combination of disciplinary actions described
under clause (i) and an assessment described under clause
(ii).
``(B) In any case in which the Board finds that an employee
has committed a prohibited personnel practice under paragraph
(8) or (9) of section 2302(b), the Board shall impose
disciplinary action if the Board finds that the activity
protected under paragraph (8) or (9) of section 2302(b) was a
significant motivating factor, even if other factors also
motivated the decision, for the employee's decision to take,
fail to take, or threaten to take or fail to take a personnel
action, unless that employee demonstrates, by preponderance
of evidence, that the employee would have taken, failed to
take, or threatened to take or fail to take the same
personnel action, in the absence of such protected
activity.''.
(i) Special Counsel Amicus Curiae Appearance.--Section 1212
of title 5, United States Code, is amended by adding at the
end the following:
``(h)(1) The Special Counsel is authorized to appear as
amicus curiae in any action brought in a court of the United
States related to any civil action brought in connection with
section 2302(b) (8) or (9), or subchapter III of chapter 73,
or as otherwise authorized by law. In any such action, the
Special Counsel is authorized to present the views of the
Special Counsel with respect to compliance with section
2302(b) (8) or (9) or subchapter III of chapter 77 and the
impact court decisions would have on the enforcement of such
provisions of law.
``(2) A court of the United States shall grant the
application of the Special Counsel to appear in any such
action for the purposes described in subsection (a).''.
(j) Judicial Review.--
(1) In general.--Section 7703(b)(1) of title 5, United
States Code, is amended to read as follows:
``(b)(1)(A) Except as provided in subparagraph (B) and
paragraph (2), a petition to review a final order or final
decision of the

[[Page S1938]]

Board shall be filed in the United States Court of Appeals
for the Federal Circuit. Notwithstanding any other provision
of law, any petition for review must be filed within 60 days
after the date the petitioner received notice of the final
order or decision of the Board.
``(B) During the 5-year period beginning on the effective
date of the Federal Employee Protection of Disclosures Act, a
petition to review a final order or final decision of the
Board in a case alleging a violation of paragraph (8) or (9)
of section 2302(b) shall be filed in the United States Court
of Appeals for the Federal Circuit or any court of appeals of
competent jurisdiction as provided under subsection
(b)(2).''.
(2) Review obtained by office of personnel management.--
Section 7703(d) of title 5, United States Code, is amended to
read as follows:
``(d)(1) Except as provided under paragraph (2), this
paragraph shall apply to any review obtained by the Director
of the Office of Personnel Management. The Director of the
Office of Personnel Management may obtain review of any final
order or decision of the Board by filing, within 60 days
after the date the Director received notice of the final
order or decision of the Board, a petition for judicial
review in the United States Court of Appeals for the Federal
Circuit if the Director determines, in his discretion, that
the Board erred in interpreting a civil service law, rule, or
regulation affecting personnel management and that the
Board's decision will have a substantial impact on a civil
service law, rule, regulation, or policy directive. If the
Director did not intervene in a matter before the Board, the
Director may not petition for review of a Board decision
under this section unless the Director first petitions the
Board for a reconsideration of its decision, and such
petition is denied. In addition to the named respondent, the
Board and all other parties to the proceedings before the
Board shall have the right to appear in the proceeding before
the Court of Appeals. The granting of the petition for
judicial review shall be at the discretion of the Court of
Appeals.
``(2) During the 5-year period beginning on the effective
date of the Federal Employee Protection of Disclosures Act,
this paragraph shall apply to any review relating to
paragraph (8) or (9) of section 2302(b) obtained by the
Director of the Office of Personnel Management. The Director
of the Office of Personnel Management may obtain review of
any final order or decision of the Board by filing, within 60
days after the date the Director received notice of the final
order or decision of the Board, a petition for judicial
review in the United States Court of Appeals for the Federal
Circuit or any court of appeals of competent jurisdiction as
provided under subsection (b)(2) if the Director determines,
in his discretion, that the Board erred in interpreting
paragraph (8) or (9) of section 2302(b). If the Director did
not intervene in a matter before the Board, the Director may
not petition for review of a Board decision under this
section unless the Director first petitions the Board for a
reconsideration of its decision, and such petition is denied.
In addition to the named respondent, the Board and all other
parties to the proceedings before the Board shall have the
right to appear in the proceeding before the court of
appeals. The granting of the petition for judicial review
shall be at the discretion of the Court of Appeals.''.
(k) Nondisclosure Policies, Forms, and Agreements.--
(1) In general.--
(A) Requirement.--Each agreement in Standard Forms 312 and
4414 of the Government and any other nondisclosure policy,
form, or agreement of the Government shall contain the
following statement: ``These restrictions are consistent with
and do not supersede, conflict with, or otherwise alter the
employee obligations, rights, or liabilities created by
Executive Order No. 12958; section 7211 of title 5, United
States Code (governing disclosures to Congress); section 1034
of title 10, United States Code (governing disclosure to
Congress by members of the military); section 2302(b)(8) of
title 5, United States Code (governing disclosures of
illegality, waste, fraud, abuse or public health or safety
threats); the Intelligence Identities Protection Act of 1982
(50 U.S.C. 421 et seq.) (governing disclosures that could
expose confidential Government agents); and the statutes
which protect against disclosure that may compromise the
national security, including sections 641, 793, 794, 798, and
952 of title 18, United States Code, and section 4(b) of the
Subversive Activities Act of 1950 (50 U.S.C. 783(b)). The
definitions, requirements, obligations, rights, sanctions,
and liabilities created by such Executive order and such
statutory provisions are incorporated into this agreement and
are controlling.''.
(B) Enforceability.--Any nondisclosure policy, form, or
agreement described under subparagraph (A) that does not
contain the statement required under subparagraph (A) may not
be implemented or enforced to the extent such policy, form,
or agreement is inconsistent with that statement.
(2) Persons other than government employees.--
Notwithstanding paragraph (1), a nondisclosure policy, form,
or agreement that is to be executed by a person connected
with the conduct of an intelligence or intelligence-related
activity, other than an employee or officer of the United
States Government, may contain provisions appropriate to the
particular activity for which such document is to be used.
Such form or agreement shall, at a minimum, require that the
person will not disclose any classified information received
in the course of such activity unless specifically authorized
to do so by the United States Government. Such nondisclosure
forms shall also make it clear that such forms do not bar
disclosures to Congress or to an authorized official of an
executive agency or the Department of Justice that are
essential to reporting a substantial violation of law.
(l) Clarification of Whistleblower Rights for Critical
Infrastructure Information.--Section 214(c) of the Homeland
Security Act of 2002 (6 U.S.C. 133(c)) is amended by adding
at the end the following: ``For purposes of this section a
permissible use of independently obtained information
includes the disclosure of such information under section
2302(b)(8) of title 5, United States Code.''.
(m) Advising Employees of Rights.--Section 2302(c) of title
5, United States Code, is amended by inserting ``, including
how to make a lawful disclosure of information that is
specifically required by law or Executive order to be kept
secret in the interest of national defense or the conduct of
foreign affairs to the Special Counsel, the Inspector General
of an agency, Congress, or other agency employee designated
to receive such disclosures'' after ``chapter 12 of this
title''.
(n) Scope of Due Process.--
(1) Special counsel.--Section 1214(b)(4)(B)(ii) of title 5,
United States Code, is amended by inserting ``, after a
finding that a protected disclosure was a contributing
factor,'' after ``ordered if''.
(2) Individual action.--Section 1221(e)(2) of title 5,
United States Code, is amended by inserting ``, after a
finding that a protected disclosure was a contributing
factor,'' after ``ordered if''.
(o) Effective Date.--This Act shall take effect 30 days
after the date of enactment of this Act.
______

By Mr. CORZINE (for himself, Mr. Brownback, Mr. Dodd, Mr. Durbin,
Mr. Feingold, Mr. Lieberman, Mr. Talent, Mr. DeWine, and Mr.
Coburn):
S. 495. A bill to impose sanctions against perpetrators of crimes
against humanity in Darfur, Sudan, and for other purposes; to the
Committee on Foreign Relations.
Mr. CORZINE. Mr. President, I rise to talk about the Darfur
Accountability Act. This is an issue that I and a number of my
colleagues have as much passion about and as much conviction and
concern as anything that we could speak about on this floor. As we
stand here today, 225,000, maybe more, Darfurians in the Sudan have
died over the last 2 years. A million and three quarters are displaced,
living in camps. Senator Brownback is a cosponsor of the Darfur
Accountability Act, along with Senators DeWine, Talent, Dodd, Durbin,
Feingold, and Lieberman--a bipartisan basis. All believe strongly and
passionately that we need to act now.
This bill, which we will be introducing today, provides the tools,
the authorities to confront the crisis of humanity that is taking place
in Darfur. It can be a reflection of our Nation's commitment to live up
to the most solemn promise of our time and our Nation's values--to
never stand by quietly while genocide goes forth, while genocide rages
in a part of the world. ``Never again'' is the rallying cry we have all
heard from the tragedy of World War II, from the response and
understanding of the tragedy of Rwanda and genocides across history.
Man's horrific treatment of his fellow man in genocide must be stood up
against, must be pushed back against. We must say no.
It has been more than 7 months since the resolution introduced by
Senator Brownback and myself declaring the atrocities in Darfur to be
declared genocide passed the Senate. It has been more than 7 months
since the House of Representatives passed a similar resolution. And it
has been 6 months since Secretary of State Colin Powell made the same
declaration.
Genocide continues. Just 1 month ago a U.N. commission confirmed a
litany of atrocities that have become all too familiar in this
situation:

Government forces and militias conducted indiscriminate
attacks, including killing of civilians, torture, enforced
disappearances, destruction of villages, rape and other forms
of sexual violence, pillaging and forced displacement
throughout Darfur.

It has been going on for 2 years. The report stated that the
atrocities were ``conducted on a widespread and systematic basis,'' and
that the ``magnitude and large-scale nature of some crimes against
humanity, as well as their consistency over a long period of time,
necessarily imply that these

[[Page S1939]]

crimes result from a central planning operation.''
This is public policy in the Sudan--public policy. Maybe more
compelling is a series of articles, two of which I will put into the
Record, that are reflective of the public and transparent and dogged
coverage by a New York Times columnist, Nicholas Kristof, which
document completely the nature of the atrocities going on, including,
unfortunately, some of the pictorial efforts that bring forth the
certainty that genocide is taking place.
I will submit a column written on February 23, ``The Secret Genocide
Archive,'' which carries pictures in the New York Times of some of the
outcomes of our failure to act. Then there is a second column which I
will put into the Record. It is in today's paper, March 2, 2005, ``The
American Witness,'' where a U.S. marine on the ground, a captain in the
Marine Corps, is citing and stating and documenting the continuation of
this tragedy in the lives of these people in Darfur.
I ask unanimous consent that these articles be printed in the Record.
There being no objection, the article was ordered to be printed in
the Record, as follows:

[From the New York Times, Mar. 2, 2005]

The American Witness

(By Nicholas D. Kristof)

American soldiers are trained to shoot at the enemy.
They're prepared to be shot at. But what young men like Brian
Steidle are not equipped for is witnessing a genocide but
being unable to protect the civilians pleading for help.
If President Bush wants to figure out whether the U.S.
should stand more firmly against the genocide in Darfur, I
suggest that he invite Mr. Steidle to the White House to give
a briefing. Mr. Steidle, a 28-year-old former Marine captain,
was one of just three American military advisers for the
African Union monitoring team in Darfur--and he is bursting
with frustration.
``Every single day you go out to see another burned
village, and more dead bodies,'' he said. ``And the
children--you see 6-month-old babies that have been shot, and
3-year-old kids with their faces smashed in with rifle butts.
And you just have to stand there and write your reports.''
While journalists and aid workers are sharply limited in
their movements in Darfur, Mr. Steidle and the monitors
traveled around by truck and helicopter to investigate
massacres by the Sudanese government and the janjaweed
militia it sponsors. They have sometimes been shot at, and
once his group was held hostage, but they have persisted and
become witnesses to systematic crimes against humanity.
So is it really genocide?
``I have no doubt about that,'' Mr. Steidle said. ``It's a
systematic cleansing of peoples by the Arab chiefs there. And
when you talk to them, that's what they tell you. They're
very blunt about it. One day we met a janjaweed leader and he
said, `Unless you get back four camels that were stolen in
2003, then we're going to go to these four villages and burn
the villages, rape the women, kill everyone.' And they did.''
The African Union doesn't have the troops, firepower or
mandate to actually stop the slaughter, just to monitor it.
Mr. Steidle said his single most frustrating moment came in
December when the Sudanese government and the janjaweed
attacked the village of Labado, which had 25,000 inhabitants.
Mr. Steidle and his unit flew to the area in helicopters, but
a Sudanese general refused to let them enter the village--and
also refused to stop the attack.
``It was extremely frustrating--seeing the village burn,
hearing gunshots, not being able to do anything,'' Mr.
Steidle said. ``The entire village is now gone. It's a big
black spot on the earth.''
When Sudan's government is preparing to send bombers or
helicopter gunships to attack an African village, it shuts
down the cell phone system so no one can send out warnings.
Thus the international monitors know when a massacre is about
to unfold. But there's usually nothing they can do.
The West, led by the Bush administration, is providing food
and medical care that is keeping hundreds of thousands of
people alive. But we're managing the genocide, not halting
it.
``The world is failing Darfur,'' said Jan Egeland, the U.N.
under secretary general for humanitarian affairs. ``We're
only playing the humanitarian card, and we're just witnessing
the massacres.''
President Bush is pushing for sanctions, but European
countries like France are disgracefully cool to the idea--and
China is downright hostile, playing the same supportive role
for the Darfur genocide that it did for the Khmer Rouge
genocide.
Mr. Steidle has just quit his job with the African Union,
but he plans to continue working in Darfur to do his part to
stand up to the killers. Most of us don't have to go to that
extreme of risking our lives in Darfur--we just need to get
off the fence and push our government off, too.
At one level, I blame President Bush--and, even more, the
leaders of European, Arab and African nations--for their
passivity. But if our leaders are acquiescing in genocide,
that's because we citizens are passive, too. If American
voters cared about Darfur's genocide as much as about, say,
the Michael Jackson trial, then our political system would
respond. One useful step would be the passage of the Darfur
Accountability Act, to be introduced today by Senators Jon
Corzine and Sam Brownback. The legislation calls for such
desperately needed actions as expanding the African Union
force and establishing a military no-fly zone to stop Sudan
from bombing civilians.
As Martin Luther King Jr. put it: ``Man's inhumanity to man
is not only perpetrated by the vitriolic actions of those who
are bad. It is also perpetrated by the vitiating inaction of
those who are good.''

Mr. CORZINE. Mr. President, we are truly at a historic moment. The
U.N. Commission confirmed that these atrocities were continuing even as
it was doing its investigation. By the way, we just released from the
U.S. State Department a report on human rights practices in countries
around the world. The February 28 report reconfirmed our own
Government's view that what is taking place is genocide.
We bear the responsibility that came out of the Holocaust to remember
the horrors that lead to genocide. That is why we passed the genocide
convention, and it is time to act. That is what this accountability act
is all about. It has a lot of detail in it. But the fact is, it is to
get us up and moving. I could use a little more graphic language. We
have no right to stand by while human life is being taken day after day
and displacement is taking place day after day. All over this country,
people of faith of all denominations, student groups, and people from
all walks of life are speaking out about this in our churches, our
community centers, everywhere. They expect our Government and the
international community to act. The time to act is now.
Let me describe the legislation, if I may. First, it reconfirms that
genocide continues in Darfur. Last week, Human Rights reported new
accounts of rapes, tortures, and mutilations from eyewitnesses. This
needs to be dealt with. There is little doubt whatsoever that this
continues. Again, I refer to the Kristof articles, which are very
graphic in their explanation. Reflecting on time, I will not go through
the details. There are many of these accounts.
There is no reason to turn our backs on this issue. Remember the
imperative: Never again. This legislation offers specifics about how
the genocide should be stopped. It calls for a military no-fly zone in
Darfur. This discussion about no-fly zones has been going on for the
better part of a year. It is time to make sure that we as an
international community, as a nation, stand up and say, let's implement
that.
Recent reports state that as recently as January, the Government of
Sudan used aircraft and helicopters to impose its desire in
implementing its genocide on the people of Darfur along with the
jingaweit militia, which are notorious about implementing this.
The legislation also lays out the report for the African Union
mission in Darfur. In September of last year, the Senate passed an
amendment by Senator DeWine and myself that sets aside $75 million in
aid to the African Union so they could accelerate their monitoring and
assistance on the ground in Darfur. So far, we have begun to use some
of those resources. I think at this point it is about $20 million.
Unfortunately, the authorization was for 3,300 African Union troops on
the ground, but there are about 1,800 there today. This is 7 months
after our efforts to get this done. We need to stop the killing now.
That means we need to get the troops on the ground now; we have to
spend the money now. It is absolutely time that we stand up and take
notice and move on this issue.
The legislation also provides specifics about what should be done in
a new U.N. Security Council resolution, including sanctions that have
previously been threatened by the council but never imposed. For
instance, we have an arms embargo against the government in Darfur. We
don't have an arms embargo against the Government of Sudan. We have one
in Darfur. So they can get the guns and military equipment into
Khartoum, and I guess we think somehow they are not going to use it
where they are actually taking the lives of the people in Darfur. It is
crazy that we have such a limited and ineffectual arms embargo on
Sudan. We need to act. It is clear that

[[Page S1940]]

we needed it last summer, and it is clear that we need it today.
I was offered the opportunity to visit Darfur last August during that
30-day period when the U.N. Security Council was examining whether
Sudan was moving to correct some of the problems, get control of the
jingaweit, and actually respond to the international community's
imperative that they change their actions. It was clear then that the
only thing that was moving the Sudanese Government was the transparency
that both journalists and the international community were providing
the people who were on the ground, but they had no real interest in
stopping the jingaweit or the tragedy on the ground in Darfur. None. It
was only pressure from the outside that was going to have any impact on
moving forward.
Unfortunately, from that moment on, we have stepped back. We said we
were going to do things, and we did not. Guess what. The tragedy
continues and has accelerated in many places, particularly south
Darfur. It is time to act.
I will save going through the rest of the pieces of legislation, but
I hope my colleagues will keep in mind that we have had over 200,000
deaths and one and three-quarter million people displaced, more or
less. Nobody is certain of the numbers. Estimates are that 10,000
people die a month in Darfur. Do we have to wake up and understand that
we have ``Rwanda 2'' on our hands to act? Do we have to have some
incredible tragedy at a single point in time for us to act? It is time
to put down serious accountability requirements on the Government of
Sudan and to act to stop the killing in Darfur. I can only say that
there is nothing that reflects our moral values in this country more
than standing up to genocide. Our humanity is being challenged, the
very essence of who we are as human beings. Genocide is evil. It should
be stopped, and we should remember the imperative: Never again.
I yield the floor.
The PRESIDING OFFICER. The Senator from Illinois is recognized.
Mr. DURBIN. Mr. President, let me salute the Senator from New Jersey,
Mr. Corzine, as well as Senator Brownback, a Democrat and a Republican,
one from the east coast and another from the Midwest, for bringing to
the Senate floor today the issue of Darfur. They have been leaders in
this issue. I can recall Senator Corzine as the first Member of the
Senate standing up and making a point many months ago about the
senseless killing going on in the Sudan and the fact that the United
States could not turn a blind eye to this issue. He returned to the
floor today with the same message. I commend him for his humanitarian
commitment to the poor people who are losing their lives in this
conflict.
A little over a week ago in Chicago, IL, we had the visit of a rather
famous man. He was a man who none of us knew and, frankly, could not
even pronounce his name. He came to tell a story. His name is Paul
Rusesabagina. He is the manager of the hotel in Hotel Rwanda, which has
become a very famous film. He had a luxury hotel in Rwanda in the midst
of the terrible genocide. Because of his personal courage and the fact
that he was willing to stand up, he saved over 1,200 lives of people
who sought refuge in the hotel, who otherwise would have been hacked to
death by machete during the Rwanda genocide. He came to Chicago, to St.
Sabinas Church on the South Side, where Father Michael Flager was his
host. He told the story of Rwanda. It wasn't just a reminiscence of
history; he told us that we needed to look today to the genocides we
face in the world. He pointed specifically to Darfur in Sudan.
He asked us what was asked of many during the Rwanda genocide: What
will you do now that you know that innocent people are being killed by
the hundreds of thousands? What will you do? Will you ignore it because
it is so far away? Will you ignore it because it is Africa? Will you
ignore it because it may call for sacrifice on the part of U.S.
leadership?
It is a challenge he made to us, an interesting challenge from a man
who literally risked his life to save others during a genocide. He
asked us, in our comfort in America, whether we were willing to risk
anything to save these victims in Darfur. He touched my soul, and I
told him that when I get back to Washington, I will take to the floor
of the Senate and raise this issue as often as I can. I will try
everything I can find to move the United States into a stronger
position of leadership.
Yesterday, President Bush invited about 20 leaders in Congress to the
White House for a briefing on his trip to Europe. It was an excellent
briefing. We were allowed to ask questions at the end. I asked the
President, with Steven Hadley close at hand: What are we going to do
about Darfur? Sadly, the response was what I have heard over and over
again from so many different sources: We are going to count on the
African Union, a group of soldiers from Africa who are moving into the
region. How many soldiers are moving into this region where helpless
people are being killed? Their best estimates are 3,000 soldiers. How
big is this region? It is about the size of the State of Texas. How in
the world can we expect to have an impact on this senseless killing?
That is why I am supporting this Darfur Accountability Act. This bill
we are pushing seeks to prod the world to do what it needs to do to
stop the genocide in Sudan. ``Genocide'' is a word this is rarely used
in human history. There have been genocides against the Armenian people
and the Jewish people during the Holocaust, perhaps in Pol Pot's times
in Cambodia, and other times we can point to. Rarely do we use the
word. It is a word that is freighted with responsibility. You cannot
just say there is genocide in some part of the world and isn't that a
shame. We signed a genocide treaty that said once we detect a genocide,
we go to international organizations--the United States does--and
demand action. So using the word ``genocide,'' as the Bush
administration has done, is a good thing because it prods us to do
something, but it is a challenge that we must meet on something this
timely and important.
This act calls for the United States to call on the United Nations to
immediately take action in Darfur. Some will say, well, that is
pointless; Russia and China will veto that action in the Security
Council. Regardless, we should force the issue to a vote. We should
confront the Russians and the Chinese and ask them what they would do
in light of this senseless killing.
The horrific stories keep piling up. The jingaweit, the armed
militias, running amok in Darfur are killing innocent people right and
left. Sudanese aircraft strafed a village in southern Darfur, killing
more than 100 men, women, and children, in January, according to Human
Rights Watch. The world has witnessed this in Darfur. We know it has
happened. We must do something about it. That is why I join my
colleague in this request that we take action now, move this Darfur
Accountability Act, join Senator Corzine, join Senator Brownback, and
make this happen.
Let me also say this. My closest friend in politics was Paul Simon,
who preceded me in the Senate. He spoke out on the Rwandan genocide
when very few did. He called on the Clinton administration to do
something, and they did not. They look back now with sorrow and some
shame that they did not. President Clinton has said that. We do not
want to be in that same situation.
The United States should not be a guilty bystander in this genocide.
We will be guilty if we do not act. We will be bystanders if we come up
with excuses to do nothing. We need to take the risk to save these
people, as Paul Rusesabagina did in Rwanda. We can step in today and
save and protect innocent lives, call on the United Nations to act, and
if they fail to act, take the next step, even if it involves
commitments from the United States which may not be immediately
popular.
I think the American people will understand. We are a compassionate,
caring people who will not stand idly by in the face of a genocide as
we did during Rwanda.
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. 495

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

[[Page S1941]]

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Darfur Accountability Act of
2005''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Foreign Relations of the Senate and the Committee on
International Relations of the House of Representatives.
(2) Government of sudan.--The term ``Government of Sudan''
means the National Congress Party-led government in Khartoum,
Sudan, or any successor government formed on or after the
date of the enactment of this Act.
(3) Member states.--The term ``member states'' means the
member states of the United Nations.
(4) Sudan north-south peace agreement.--The term ``Sudan
North-South Peace Agreement'' means the comprehensive peace
agreement signed by the Government of Sudan and the Sudan
People's Liberation Army/Movement on January 9, 2005.
(5) Those named by the un commission.--The term ``those
named by the UN Commission'' means those individuals whose
names appear in the sealed file delivered to the Secretary
General of the United Nations by the International Commission
of Inquiry on Darfur to the United Nations Secretary General.
(6) UN commission.--The term ``UN Commission'' means the
International Commission of Inquiry on Darfur to the United
Nations Secretary General.

SEC. 3. FINDINGS.

Congress makes the following findings:
(1) On July 22, 2004, the House of Representatives and the
Senate declared that the atrocities occurring in Darfur,
Sudan are genocide.
(2) On September 9, 2004, Secretary of State Colin L.
Powell stated before the Committee on Foreign Relations of
the Senate, ``[w]hen we reviewed the evidence compiled by our
team, along with other information available to the State
Department, we concluded that genocide has been committed in
Darfur and that the Government of Sudan and the [Janjaweed]
bear responsibility--and genocide may still be occurring''.
(3) President George W. Bush, in an address before the
United Nations General Assembly on September 21, 2004,
stated, ``[a]t this hour, the world is witnessing terrible
suffering and horrible crimes in the Darfur region of Sudan,
crimes my government has concluded are genocide''.
(4) On July 30, 2004, the United Nations Security Council
passed Security Council Resolution 1556, calling upon the
Government of Sudan to disarm the Janjaweed militias and to
apprehend and bring to justice Janjaweed leaders and their
associates who have incited and carried out violations of
human rights and international humanitarian law and carried
out other atrocities in the Darfur region.
(5) On September 18, 2004, the United Nations Security
Council passed Security Council Resolution 1564, determining
that the Government of Sudan had failed to meet its
obligations under Security Council Resolution 1556, calling
for a military flight ban in and over the Darfur region,
demanding the names of Janjaweed militiamen disarmed and
arrested for verification, establishing an International
Commission of Inquiry into violations of international
humanitarian and human rights laws, and threatening sanctions
should the Government of Sudan fail to fully comply with
Security Council Resolutions 1556 and 1564.
(6) United Nations Security Council Resolution 1564
declares that if the Government of Sudan ``fails to comply
fully'' with Security Council Resolutions 1556 and 1564, the
Security Council shall consider taking ``additional
measures'' against the Government of Sudan ``as contemplated
in Article 41 of the Charter of the United Nations, such as
actions to affect Sudan's petroleum sector or individual
members of the Government of Sudan, in order to take
effective action to obtain such full compliance and
cooperation''.
(7) United Nations Security Council Resolution 1564 also
``welcomes and supports the intention of the African Union to
enhance and augment its monitoring mission in Darfur'' and
``urges member states to support the African Union in these
efforts, including by providing all equipment, logistical,
financial, material, and other resources necessary to support
the rapid expansion of the African Union Mission''.
(8) On February 1, 2005, the United Nations released the
Report of the International Commission of Inquiry on Darfur
to the United Nations Secretary-General, dated January 25,
2005, which stated that, ``[g]overnment forces and militias
conducted indiscriminate attacks, including killing of
civilians, torture, enforced disappearances, destruction of
villages, rape and other forms of sexual violence, pillaging
and forced displacement throughout Darfur'', that such ``acts
were conducted on a widespread and systematic basis, and
therefore may amount to crimes against humanity'', and that
the ``magnitude and large-scale nature of some crimes against
humanity as well as their consistency over a long period of
time, necessarily imply that these crimes result from a
central planning operation''.
(9) The Report of the International Commission of Inquiry
on Darfur to the United Nations Secretary-General notes that,
pursuant to its mandate and in the course of its work, the UN
Commission collected information relating to individual
perpetrators of acts constituting ``violations of
international human rights law and international humanitarian
law, including crimes against humanity and war crimes'' and
that the UN Commission has delivered to the Secretary-General
of the United Nations a sealed file of those named by the UN
Commission with the recommendation that the ``file be handed
over to a competent Prosecutor''.

SEC. 4. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) the atrocities unfolding in Darfur, Sudan, have been
and continue to be genocide;
(2) the United States should immediately seek passage at
the United Nations Security Council of a resolution that--
(A) requires member states to freeze the property and
assets of, deny visas to, and deny entry to--
(i) those named by the UN Commission;
(ii) family members of those named by the UN Commission;
and
(iii) any associates of those named by the UN Commission to
whom assets or property of those named by the UN Commission
were transferred on or after June 11, 2004;
(B) urges member states to submit to the Security Council
the name of any individual that the government of any such
member state believes is or has been planning, carrying out,
responsible for, or otherwise involved in genocide, war
crimes, or crimes against humanity in Darfur, along with
evidence supporting such belief so that the Security Council
may consider imposing sanctions described in subparagraph (A)
against those individuals described in such subparagraph;
(C) imposes sanctions or additional measures against the
Government of Sudan, including sanctions that will affect the
petroleum sector in Sudan, individual members of the
Government of Sudan, and entities controlled or owned by
officials of the government of Sudan or the National Congress
Party in Sudan, that will remain in effect until such time
as--
(i) humanitarian organizations are granted full, unimpeded
access to Darfur;
(ii) the Government of Sudan cooperates with humanitarian
relief efforts, carries out activities to demobilize and
disarm Janjaweed militias and any other militias supported or
created by the Government of Sudan, and cooperates fully with
efforts to bring to justice the individuals responsible for
genocide, war crimes, or crimes against humanity in Darfur;
(iii) the Government of Sudan cooperates fully with the
African Union, the United Nations, and all other observer,
monitoring, and protection missions mandated to operate in
Sudan;
(iv) the Government of Sudan permits the safe and voluntary
return of displaced persons and refugees to their homes and
rebuilds the communities destroyed in the violence in Darfur;
and
(v) the Sudan North-South Peace Agreement is fully
implemented and a new coalition government is created under
such Agreement;
(D) establishes a military no-fly zone in Darfur;
(E) supports the expansion of the African Union force in
Darfur so that such force achieves the size and strength
needed to prevent ongoing fighting and violence in Darfur;
(F) urges member states to accelerate assistance to the
African Union force in Darfur;
(G) calls on the Government of Sudan to cooperate with, and
allow unrestricted movement in Darfur by, the African Union
force in the region, international humanitarian
organizations, and United Nations monitors;
(H) extends the embargo of military equipment established
by paragraphs 7 through 9 of Security Council Resolution 1556
to include the prohibition of sale or supply to the
Government of Sudan; and
(I) supports African Union efforts to negotiate peace talks
between the Government of Sudan and rebels in Darfur, calls
on the Government of Sudan and rebels in Darfur to abide by
their obligations under the N'Djamena Ceasefire Agreement of
April 8, 2004 and subsequent agreements, and urges parties to
engage in peace talks without preconditions and seek to
resolve the conflict;
(3) the United States should work with other nations to
ensure effective efforts to freeze the property and assets of
and deny visas and entry to--
(A) those named by the UN Commission;
(B) any individuals the United States believes is or has
been planning, carrying out, responsible for, or otherwise
involved in genocide, war crimes, and crimes against humanity
in Darfur;
(C) family members of any person described in subparagraphs
(A) or (B); and
(D) any associates of any such person to whom assets or
property of such person were transferred on or after June 11,
2004;
(4) the United States should support accountability through
action by the United Nations Security Council, pursuant to
Chapter VII of the Charter of the United Nations, to ensure
the prompt prosecution and adjudication in a competent
international court of justice of those named by the UN
Commission;
(5) the United States should not provide assistance to the
Government of Sudan, other than assistance necessary for the
implementation of the Sudan North-South Peace

[[Page S1942]]

Agreement, the support of the southern regional government in
Sudan, or for humanitarian purposes in Sudan, unless the
President certifies and reports to Congress that--
(A) humanitarian organizations are being granted full,
unimpeded access to Darfur and the Government of Sudan is
providing full cooperation with humanitarian efforts;
(B) concrete, sustained steps are being taken toward
demobilizing and disarming Janjaweed militias and any other
militias supported or created by the Government of Sudan;
(C) the Government of Sudan is cooperating fully with
efforts to bring to justice those responsible for genocide,
war crimes, or crimes against humanity in Darfur;
(D) the Government of Sudan cooperates fully with the
African Union, the United Nations, and all other observer,
monitoring, and protection missions mandated to operate in
Sudan;
(E) the Government of Sudan permits the safe and voluntary
return of displaced persons and refugees to their homes and
rebuilds the communities destroyed in the violence in Darfur;
and
(F) the Sudan North-South Peace Agreement is fully
implemented and a new coalition government is created under
such Agreement;
(6) the President should work with the African Union and
other international organizations and nations to establish
mechanisms for the enforcement of a no-fly zone in Darfur;
(7) the African Union should extend its mandate in Darfur
to include the protection of civilians and proactive efforts
to prevent violence, and member states should support fully
this extension;
(8) the President should accelerate assistance to the
African Union force in Darfur and discussions with the
African Union and the European Union and other supporters of
the African Union force on the needs of such force, including
assistance for housing, transportation, communications,
equipment, technical assistance such as training and command
and control assistance, and intelligence;
(9) the President should appoint a Presidential Envoy for
Sudan--
(A) to support the implementation of the Sudan North-South
Peace Agreement;
(B) to seek ways to bring stability and peace to Darfur;
(C) to address instability elsewhere in Sudan; and
(D) to seek a comprehensive peace throughout Sudan;
(10) United States officials, including the President, the
Secretary of State, and the Secretary of Defense, should
raise the issue of Darfur in bilateral meetings with
officials from other members of the United Nations Security
Council and relevant countries, with the aim of passing a
United Nations Security Council resolution described in
paragraph (2) and mobilizing maximum support for political,
financial, and military efforts to stop the genocide in
Darfur;
(11) the Secretary of State should immediately engage in a
concerted, sustained campaign with other members of the
United Nations Security Council and relevant countries with
the aim of achieving the goals described in paragraph (10);
(12) the United States fully supports the Sudan North-South
Peace Agreement and urges the rapid implementation of its
terms; and
(13) the United States condemns attacks on humanitarian
workers and calls on all forces in Darfur, including forces
of the Government of Sudan, all militia, and forces of the
Sudan People's Liberation Army/Movement and the Justice and
Equality Movement, to refrain from such attacks.

SEC. 5. IMPOSITION OF SANCTIONS.

(a) Freezing Assets.--At such time as the United States has
access to the names of those named by the UN Commission, the
President shall take such action as may be necessary to
immediately freeze the funds and other assets belonging to
anyone so named, their family members, and any associates of
those so named to whom assets or property of those so named
were transferred on or after June 11, 2004, including
requiring that any United States financial institution
holding such funds and assets promptly report those funds and
assets to the Office of Foreign Assets Control.
(b) Visa Ban.--Beginning at such times as the United States
has access to the names of those named by the UN Commission,
the President shall deny visas and entry to--
(1) those named by the UN Commission;
(2) the family members of those named by the UN Commission;
and
(3) anyone the President determines has been, is, or may be
planning, carrying out, responsible for, or otherwise
involved in crimes against humanity, war crimes, or genocide
in Darfur, Sudan.
(c) Asset Reporting Requirement.--Not later than 14 days
after a decision to freeze the property or assets of, or deny
a visa or entry to, any person under this section, the
President shall report the name of such person to the
appropriate congressional committees.
(d) Notification of Waivers of Sanctions.--Not later than
30 days before waiving the provisions of any sanctions
currently in force with regard to Sudan, the President shall
submit to the appropriate congressional committees a report
describing the waiver and the reasons therefor.

SEC. 6. REPORTS TO CONGRESS.

(a) Reports on Stabilization in Sudan.--
(1) Initial report.--Not later than 30 days after the date
of enactment of this Act, the Secretary of State, in
conjunction with the Secretary of Defense, shall report to
the appropriate congressional committees on efforts to deploy
an African Union force in Darfur, the capacity of such force
to stabilize Darfur and protect civilians, the needs of such
force to succeed at such mission including housing,
transportation, communications, equipment, technical
assistance, including training and command and control, and
intelligence, current status of United States and other
assistance to the African Union force, and additional United
States assistance needed.
(2) Subsequent reports.--The Secretary of State, in
conjunction with the Secretary of Defense, shall submit not
less than every 60 days until such time as the President
certifies that the situation in Darfur is stable and that
civilians are no longer in danger and that the African Union
is no longer needed to prevent a resumption of violence and
attacks against civilians.
(b) Report on Those Named by the UN Commission.--At such
time as the United States has access to the names of those
named by the UN Commission, the President shall submit to the
appropriate congressional committees a report listing such
names.
(c) Reports on Accountability.--
(1) In general.--No later than 30 days after the date of
enactment of this Act and every 30 days thereafter, the
President shall submit to the appropriate congressional
committees a report on the status of efforts in the United
Nations Security Council to ensure prompt prosecution and
adjudication of those named by the UN Commission in a
competent international court of justice.
(2) Content.--The reports required under paragraph (1)
shall describe--
(A) the status of any relevant resolution introduced in the
United Nations Security Council;
(B) the policy of the United States with regard to such
resolutions;
(C) the status of all possible venues for prosecution and
adjudication of those named by the UN Commission, including
whether such venues have the jurisdiction, personnel and
assets necessary to promptly prosecute and adjudicate cases
involving such persons; and
(D) any ongoing or planned United States or other
assistance related to the prosecution and adjudication of
cases involving those named by the UN Commission.

Mr. BROWNBACK. Mr. President, today with several bipartisan
colleagues, Senator Corzine and I introduced the Darfur Accountability
Act of 2005. For nearly a year, this body has been aware of the ongoing
genocide in Sudan. Last July we declared genocide in Darfur, followed
shortly thereafter by the same declaration by former Secretary of State
Colin Powell. Yet no punitive measure has been taken by the
international community against the Government of Sudan for these
egregious human rights violations. Some sources estimate that as many
as 400,000 people have died as a result, and nearly 2 million have been
displaced from their homes.
Yesterday I spoke on the Senate floor in an attempt to display the
face of genocide. Photographs of scorched bodies, castrated men, dead
children, and burned villages were provided to me by Nicholas Kristof
of the New York Times. These photos do nothing less than display the
cruel impunity of those committing genocide. The haunting reality is
that the international community has failed on their promise of ``never
again.''
The United Nations should take immediate steps to end this genocide
and Kofi Annan should lead the Security Council to pass a strong,
meaningful resolution that will immediately change the situation on the
ground. There is no longer an excuse; we must call this what this is,
and we must immediately act to prevent further pillaging and death. I
have called on Annan several times to lead or leave. He should pass a
resolution with mechanisms to see that the impunity ends and if he
fails to do so, resign in moral protest at the international
community's inaction and complacency.
Our bill, the Darfur Accountability Act of 2005, calls for several
key measures to be taken, including: a multilateral arms embargo to
include the government of Sudan; a no fly zone; multilateral sanctions;
targeted sanctions including travel bans and the freezing of assets of
criminals; accelerated assistance to AU monitoring troops, and several
other items that will secure a peaceful Darfur.
I encourage my colleagues to join us in moving this bill through
Congress. We do not have days or weeks to spare when millions of lives
are in jeopardy. We cannot grant the government of

[[Page S1943]]

Sudan and the janjaweed more time to execute the African tribes in
Darfur. I look forward to working with Senator Corzine and other
colleagues to see passage of this bill immediately.
______

By Mr. SALAZAR:
S. 496. A bill to provide permanent funding for the payment in lieu
of taxes program, and for other purposes; to the Committee on Homeland
Security and Governmental Affairs.
______

By Mr. SALAZAR:
S. 497. A bill to revitalize our nation's rural communities by
expanding broadband services; to the Committee on Finance.
Mr. SALAZAR. Mr. President, I rise to speak about two bills I am
introducing today and to speak out in support of rural Colorado and
rural America. The two bills--one to increase investment in broadband
technology in rural areas, and another to permanently fund the payment
in lieu of taxes program--are the first bills I am introducing as a
Senator. I am proud they are both targeted at rural Colorado.
Over 400 years ago, in 1598, my family helped found the oldest city
in what is now these United States. They named the city Santa Fe--the
City of Holy Faith--because they knew the hand of God would guide them
through the struggles of survival in the ages ahead.
For the next four centuries, that faith in their future guided them
to overcome extremely painful and challenging times. As humble and poor
farmers, the circumstances of their lives forged the priceless and
tireless values of my father Henry and mother Emma. And they instilled
those values in their children.
My family has now farmed the same lands in southern Colorado, 110
miles north of Santa Fe, for almost 150 years. On that ranch, we did
not have a telephone, and the power lines did not reach us until 1981.
Although we were poor in material goods, we were rich in spirit. My
parents were part of the World's ``greatest generation''--my father a
proud veteran of World War II and my mother a proud servant in the War
Department. Although neither had a college degree, they taught us about
the values and the promise of America. All eight of their children
became first-generation college graduates, inspired by their dedication
to God, family, community, and country.
As Colorado's U.S. Senator, I am proud of my values and roots in
rural Colorado. Rural America is the heart of our great Nation.
The values my parents taught me are the fundamental values that make
this country the place I am privileged to call home.
Unfortunately, the America where I grew up is vanishing, left behind
by a Washington DC that has lost touch with what is important to the
people of the heartland. I fear that rural Colorado, like the rest of
rural America, has become ``the forgotten America.''
Rural America has given up its sons and daughters to the cause of
freedom without hesitation and in numbers that far exceed its
proportion of the country's population. It has worked quietly to put
food on our tables, and remains humbly grounded, seeking neither praise
nor thanks.
Yet when the President reported on the State of the Union, there was
not a word on the state of the more than 3,000 counties that make up
rural America--not a word. And in the administration's budget, the
programs and investments vital to those communities--PILT, block
grants, conservation programs, investments in animal and food safety,
and investments in technology, schools and law enforcement--were
drastically cut.
Last week, I traveled nearly 2,000 miles to every corner of Colorado
and convened 17 meetings with elected officials representing Colorado's
64 counties.
In those meetings, I heard the state of rural America in the words of
the people who are fighting for their families everyday.
The state of rural America is sadly the state of the forgotten
America.
In rural Colorado, residents face lower incomes and are far more
likely to be unemployed than people in urban and suburban areas.
In Crowley County, east of Pueblo, there is only one nurse
practitioner to serve a county of nearly 6,000 people. If you get sick
in Crowley County, you have three choices: wait, go to the emergency
room, or hope you get better.
In Routt County, veterans have to travel nearly 200 miles to Grand
Junction to see a doctor in the VA clinic. A few months ago, there was
no waiting list to see a doctor. Now, there's a waiting list of 400,
which means veterans in western Colorado wait 5 months to see a doctor.
The Dolores County Sheriff, Jerry Martin, has to make hiring
decisions based not on public security demands but on the ability of
his department to provide health care to the prospective employee.
Health care premiums have risen 20 percent every year the last 3 years
in Dolores County.
Across the State, people told me that their health care premiums
dwarf their mortgage payments because in many cases they pay over
$1,000 per month for health insurance for their families.
Between 1996 and 2000, one in three of our rural schools saw its
enrollment drop more than 10 percent.
Though they continue to excel on State tests, too many of our rural
schools have been forced to divert valuable resources to fulfill the
unfunded mandates of No Child Left Behind.
In Kiowa, Moffat, and Custer Counties, our teachers are paid much
less than teachers in the big cities. In Kit Carson County, where
teachers sometimes teach two and three subjects, only half of our
teachers right now would meet new Federal standards requiring them to
be certified for each subject.
And in the town of Rico, half of Main Street is boarded up: there's a
liquor store, but not much else. According to the Kansas City Federal
Reserve Bank, that may be part of a larger trend: Main Street in rural
Colorado is losing its storefronts at an alarming rate.
Compare those needs to the budget the Administration recently
proposed.
While we are facing a shortage of qualified and trained health care
employees, the administration budget this year cut health professions
training by almost two thirds, $290 million.
While our State tries to deal with a devastating budget crisis, the
Administration dramatically reduced funding for the Community
Development Block Grants on which towns, from Greeley to Grand Junction
to Denver, depend.
For the fifth year in a row, the Administration's budget fails to
fulfill the funding promises made in the No Child Left Behind law, but
still heaps mandates on local schools.
Moreover, the proposed budget eliminates low-interest loans for
students who have the grades but can't afford to go to college and
eliminates funding for vocational training that many rural Colorado
students use.
The proposed budget cuts $250 million from one of the most successful
small business investment programs and decimates USDA investments in
rural economic development.
While we combat methamphetamine production and invest precious
resources in meth lab clean up, the budget cuts Safe and Drug Free
School grants, the COPS program by nearly $500 million, and State and
local homeland security training programs by 60 percent.
I want to propose two small steps in my effort to reinvest in rural
America. In coming months I intend to introduce measures to strengthen
rural law enforcement, revitalize rural health care, invest in Main
Street, strengthen rural education, help ensure efficient and equitable
sharing of water resources and underscore the values that shape every
rural community in Colorado.
The first bill is on the PILT program. I know that education in rural
America is funded through a variety of means, including through
resources passed to rural counties through the Payment in Lieu of Taxes
program.
The idea behind the PILT program is simple. It makes sure that local
communities in States like Colorado--States that have seen large parts
of land set aside by the Federal Government for public use--do not lose
valuable resources from foregone property taxes. Those resources fund
programs from education to law enforcement.
Unfortunately, this year the administration's budget is again
proposing to cut that funding. Thanks to the efforts of my Democratic
and Republican colleagues, such as Senator Bingaman, some of that
funding has been won back over the last several years, and I

[[Page S1944]]

am hopeful we will do so again this year.
But our local communities should not have to wait and wonder every
year whether their resources for schools, roads and law enforcement
will make it into the budget, and that is why I am introducing a bill
to make permanent the funding for the payment in lieu of taxes program.
I am also introducing a bill to increase investment in broadband
technology in rural communities. Bringing broadband to our rural
schools will give our students there access to technology that millions
of other students take for granted. With broadband will come world
class research and access to AP courses at Colorado's universities. And
with broadband we will see the economic development for which rural
Colorado has been waiting.
The benefits of this investment do not stop in education and
business. Telehealth is increasingly vital in rural Colorado, held back
in some cases by the lack of investment in infrastructure. That same
infrastructure limits investment opportunities in rural communities.
With this bill I am building on the hard work of others and saying
that it is long past time for us to invest in the world class broadband
that rural communities need and are right to expect. My bill does that
in three ways.
First, it will establish our Nation's first Rural Broadband Office to
coordinate all Federal Government resources as they relate to
broadband.
Second, it will help broadband providers keep pace with our rapidly
changing technology.
And third, it calls on the Congress to live up to its responsibility
to fully fund rural utilities.
It has been a long road that has carried me from that ranch in the
San Luis Valley, growing up as one of eight siblings and proudly
attending college and law school before having the privilege to serve
in U.S. Senate.
In all of this, I have never forgotten where I come from. In my
office, I have a sign on my desk that reads ``No Farms, No Food.''
Every day I look at it, and I am reminded of just how dependent we are
on the people of rural Colorado, and in rural communities all across
America.
At a meeting with leaders from Colorado's farmer and rancher
community last month, a wheat farmer from southeastern Colorado told me
this: ``Senator, you'd never believe how many farmers refuse to go to
the doctor when they get sick. It's not that they aren't really sick.
It's that they can't afford the doctor.''
Unfortunately, Mr. President, I do believe that wheat farmer, and I
know rural America needs our help.
In America, the most powerful, prosperous, idealistic country the
world has ever known, we can do better.
And protecting that way of life--in our churches and town halls, Main
Streets and living rooms, ranches and independent drug stores--demands
it. Together, we can make sure that no one anywhere in this country
feels that he is part of a ``Forgotten America'' any longer.
I yield the floor.
The PRESIDING OFFICER. The Senator from New Jersey.
Mr. CORZINE. Mr. President, I congratulate my colleague from
Colorado. His maiden speech was as brilliant as his life has been. It
is an honor to serve with him, when I think about the story of his
family and its presence and contribution to this country and the power
with which he speaks for those he represents in rural America. This
will be one of many speeches that make a great impact on our country. I
am honored to serve with him and congratulate him on his initial
voyage.
Mr. SALAZAR. Mr. President, I appreciate the comments from the
Senator from New Jersey.
I ask unanimous consent that the text of the bills be printed in the
Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:

S. 496

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 ``PILT and Refuge Revenue
Sharing Permanent Funding Act''.

SEC. 2. PERMANENT FUNDING.

(a) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:

``Sec. 6906. Funding

``For fiscal year 2006 and each fiscal year thereafter,
amounts authorized under this chapter shall be made available
to the Secretary of the Interior, out of any amounts in the
Treasury not otherwise appropriated and without further
appropriation, for obligation or expenditure in accordance
with this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:

``6906. Funding.''.

(b) Refuge Revenue Sharing.--Section 401(d) of the Act of
June 15, 1935 (16 U.S.C. 715s(d)) is amended--
(1) by striking ``If the net receipts'' and inserting the
following:
``(1) If the net receipts''; and
(2) by adding at the end the following:
``(2) For fiscal year 2006 and each fiscal year thereafter,
the amount made available under paragraph (1) shall be made
available to the Secretary, out of any funds in the Treasury
not otherwise appropriated and without further appropriation,
for obligation or expenditure in accordance with this
section.''.

S. 497

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 ``Broadband Rural
Revitalization Act of 2005''.

SEC. 2. RURAL BROADBAND OFFICE.

(a) Establishment.--There is established within the
Department of Commerce, the Rural Broadband Office.
(b) Duties.--The Office shall coordinate all Federal
Government resources as they relate to the expansion of
broadband technology into rural areas.
(c) Report.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter, the Rural
Broadband Office shall submit a report to the Congress that--
(1) assesses the availability of, and access to, broadband
technology in rural areas;
(2) estimates the number of individuals using broadband
technology in rural areas;
(3) estimates the unmet demand for broadband technology in
rural areas; and
(4) sets forth a strategic plan to meet the demand
described in paragraph (3).

SEC. 3. FULL FUNDING FOR RURAL BROADBAND SERVICES.

It is the sense of Congress that the loan program
established in section 4 of the Rural Electrification Act of
1936 (7 U.S.C. 901 et seq.), which is essential to the
economic well-being of small telecommunications providers and
to the quality of life for all rural residents, be funded
fully.

SEC. 4. EXPENSING OF BROADBAND INTERNET ACCESS EXPENDITURES
FOR RURAL COMMUNITIES.

(a) In General.--Part VI of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to itemized
deductions for individuals and corporations) is amended by
inserting after section 190 the following new section:

``SEC. 191. BROADBAND EXPENDITURES FOR RURAL COMMUNITIES.

``(a) Treatment of Expenditures.--
``(1) In general.--A taxpayer may elect to treat any
qualified broadband expenditure which is paid or incurred by
the taxpayer as an expense which is not chargeable to capital
account. Any expenditure which is so treated shall be allowed
as a deduction.
``(2) Election.--An election under paragraph (1) shall be
made at such time and in such manner as the Secretary may
prescribe by regulation.
``(b) Qualified Broadband Expenditures.--For purposes of
this section--
``(1) In general.--The term `qualified broadband
expenditure' means, with respect to any taxable year, any
direct or indirect costs incurred and properly taken into
account with respect to--
``(A) the purchase or installation of qualified equipment
(including any upgrades thereto), and
``(B) the connection of such qualified equipment to any
qualified subscriber.
``(2) Certain satellite expenditures excluded.--Such term
shall not include any costs incurred with respect to the
launching of any satellite equipment.
``(3) Leased equipment.--Such term shall include so much of
the purchase price paid by the lessor of qualified equipment
subject to a lease described in subsection (c)(2)(B) as is
attributable to expenditures incurred by the lessee which
would otherwise be described in paragraph (1).
``(c) When Expenditures Taken Into Account.--For purposes
of this section--
``(1) In general.--Qualified broadband expenditures with
respect to qualified equipment shall be taken into account
with respect to the first taxable year in which--
``(A) current generation broadband services are provided
through such equipment to qualified subscribers, or
``(B) next generation broadband services are provided
through such equipment to qualified subscribers.
``(2) Limitation.--
``(A) In general.--Qualified expenditures shall be taken
into account under paragraph (1) only with respect to
qualified equipment--

[[Page S1945]]

``(i) the original use of which commences with the
taxpayer, and
``(ii) which is placed in service, after the date of the
enactment of this Act.
``(B) Sale-leasebacks.--For purposes of subparagraph (A),
if property--
``(i) is originally placed in service after the date of the
enactment of this Act by any person, and
``(ii) sold and leased back by such person within 3 months
after the date such property was originally placed in
service, such property shall be treated as originally placed
in service not earlier than the date on which such property
is used under the leaseback referred to in clause (ii).
``(d) Special Allocation Rules.--
``(1) Current generation broadband services.--For purposes
of determining the amount of qualified broadband expenditures
under subsection (a)(1) with respect to qualified equipment
through which current generation broadband services are
provided, if the qualified equipment is capable of serving
both qualified subscribers and other subscribers, the
qualified broadband expenditures shall be multiplied by a
fraction--
``(A) the numerator of which is the sum of the number of
potential qualified subscribers within the rural areas which
the equipment is capable of serving with current generation
broadband services, and
``(B) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with current generation broadband
services.
``(2) Next generation broadband services.--For purposes of
determining the amount of qualified broadband expenditures
under subsection (a)(1) with respect to qualified equipment
through which next generation broadband services are
provided, if the qualified equipment is capable of serving
both qualified subscribers and other subscribers, the
qualified expenditures shall be multiplied by a fraction--
``(A) the numerator of which is the sum of--
``(i) the number of potential qualified subscribers within
the rural areas, plus
``(ii) the number of potential qualified subscribers within
the area consisting only of residential subscribers not
described in clause (i), which the equipment is capable of
serving with next generation broadband services, and
``(B) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with next generation broadband services.
``(e) Definitions.--For purposes of this section--
``(1) Antenna.--The term `antenna' means any device used to
transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.
``(2) Cable operator.--The term `cable operator' has the
meaning given such term by section 602(5) of the
Communications Act of 1934 (47 U.S.C. 522(5)).
``(3) Commercial mobile service carrier.--The term
`commercial mobile service carrier' means any person
authorized to provide commercial mobile radio service as
defined in section 20.3 of title 47, Code of Federal
Regulations.
``(4) Current generation broadband service.--The term
`current generation broadband service' means the transmission
of signals at a rate of at least 1,000,000 bits per second to
the subscriber and at least 128,000 bits per second from the
subscriber.
``(5) Multiplexing or demultiplexing.--The term
`multiplexing' means the transmission of 2 or more signals
over a single channel, and the term `demultiplexing' means
the separation of 2 or more signals previously combined by
compatible multiplexing equipment.
``(6) Next generation broadband service.--The term `next
generation broadband service' means the transmission of
signals at a rate of at least 22,000,000 bits per second to
the subscriber and at least 5,000,000 bits per second from
the subscriber.
``(7) Nonresidential subscriber.--The term `nonresidential
subscriber' means any person who purchases broadband services
which are delivered to the permanent place of business of
such person.
``(8) Open video system operator.--The term `open video
system operator' means any person authorized to provide
service under section 653 of the Communications Act of 1934
(47 U.S.C. 573).
``(9) Other wireless carrier.--The term `other wireless
carrier' means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator,
open video system operator, or satellite carrier) providing
current generation broadband services or next generation
broadband service to subscribers through the radio
transmission of energy.
``(10) Packet switching.--The term `packet switching' means
controlling or routing the path of any digitized transmission
signal which is assembled into packets or cells.
``(11) Provider.--The term `provider' means, with respect
to any qualified equipment--
``(A) a cable operator,
``(B) a commercial mobile service carrier,
``(C) an open video system operator,
``(D) a satellite carrier,
``(E) a telecommunications carrier,
``(F) any other wireless carrier, providing current
generation broadband services or next generation broadband
services to subscribers through such qualified equipment; or
``(G) any carrier or operator using any other technology.
``(12) Provision of services.--A provider shall be treated
as providing services to 1 or more subscribers if--
``(A) such a subscriber has been passed by the provider's
equipment and can be connected to such equipment for a
standard connection fee,
``(B) the provider is physically able to deliver current
generation broadband services or next generation broadband
services, as applicable, to such a subscriber without making
more than an insignificant investment with respect to such
subscriber,
``(C) the provider has made reasonable efforts to make such
subscribers aware of the availability of such services,
``(D) such services have been purchased by 1 or more such
subscribers, and
``(E) such services are made available to such subscribers
at average prices comparable to those at which the provider
makes available similar services in any areas in which the
provider makes available such services.
``(13) Qualified equipment.--
``(A) In general.--The term `qualified equipment' means
equipment which provides current generation broadband
services or next generation broadband services--
``(i) at least a majority of the time during periods of
maximum demand to each subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no deduction is allowed under
subsection (a)(1).
``(B) Only certain investment taken into account.--Except
as provided in subparagraph (C) or (D), equipment shall be
taken into account under subparagraph (A) only to the extent
it--
``(i) extends from the last point of switching to the
outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a telecommunications
carrier,
``(ii) extends from the customer side of the mobile
telephone switching office to a transmission/receive antenna
(including such antenna) owned or leased by a subscriber in
the case of a commercial mobile service carrier,
``(iii) extends from the customer side of the headend to
the outside of the unit, building, dwelling, or office owned
or leased by a subscriber in the case of a cable operator or
open video system operator, or
``(iv) extends from a transmission/receive antenna
(including such antenna) which transmits and receives signals
to or from multiple subscribers, to a transmission/receive
antenna (including such antenna) on the outside of the unit,
building, dwelling, or office owned or leased by a subscriber
in the case of a satellite carrier or other wireless carrier,
unless such other wireless carrier is also a
telecommunications carrier.
``(C) Packet switching equipment.--Packet switching
equipment, regardless of location, shall be taken into
account under subparagraph (A) only if it is deployed in
connection with equipment described in subparagraph (B) and
is uniquely designed to perform the function of packet
switching for current generation broadband services or next
generation broadband services, but only if such packet
switching is the last in a series of such functions performed
in the transmission of a signal to a subscriber or the first
in a series of such functions performed in the transmission
of a signal from a subscriber.
``(D) Multiplexing and demultiplexing equipment.--
Multiplexing and demultiplexing equipment shall be taken into
account under subparagraph (A) only to the extent it is
deployed in connection with equipment described in
subparagraph (B) and is uniquely designed to perform the
function of multiplexing and demultiplexing packets or cells
of data and making associated application adaptions, but only
if such multiplexing or demultiplexing equipment is located
between packet switching equipment described in subparagraph
(C) and the subscriber's premises.
``(14) Qualified subscriber.--The term `qualified
subscriber' means--
``(A) with respect to the provision of current generation
broadband services--
``(i) any nonresidential subscriber maintaining a permanent
place of business in a rural area, or
``(ii) any residential subscriber residing in a dwelling
located in a rural area which is not a saturated market, and
``(B) with respect to the provision of next generation
broadband services--
``(i) any nonresidential subscriber maintaining a permanent
place of business in a rural area, or
``(ii) any residential subscriber.
``(15) Residential subscriber.--The term `residential
subscriber' means any individual who purchases broadband
services which are delivered to such individual's dwelling.
``(16) Rural area.--The term `rural area' means any census
tract which--
``(A) is not within 5 miles of any incorporated or census
designated place containing more than 25,000 people, and
``(B) is not within a county or county equivalent which has
an overall population density of more than 500 people per
square mile of land.
``(17) Rural subscriber.--The term `rural subscriber' means
any residential subscriber residing in a dwelling located in
a rural area or nonresidential subscriber maintaining a

[[Page S1946]]

permanent place of business located in a rural area.
``(18) Satellite carrier.--The term `satellite carrier'
means any person using the facilities of a satellite or
satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under
part 25 of title 47 of the Code of Federal Regulations or the
Direct Broadcast Satellite Service under part 100 of title 47
of such Code to establish and operate a channel of
communications for distribution of signals, and owning or
leasing a capacity or service on a satellite in order to
provide such point-to-multipoint distribution.
``(19) Saturated market.--The term `saturated market' means
any census tract in which, as of the date of the enactment of
this section--
``(A) current generation broadband services have been
provided by a single provider to 85 percent or more of the
total number of potential residential subscribers residing in
dwellings located within such census tract, and
``(B) such services can be utilized--
``(i) at least a majority of the time during periods of
maximum demand by each such subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no deduction is allowed under
subsection (a)(1).
``(20) Subscriber.--The term `subscriber' means any person
who purchases current generation broadband services or next
generation broadband services.
``(21) Telecommunications carrier.--The term
`telecommunications carrier' has the meaning given such term
by section 3(44) of the Communications Act of 1934 (47 U.S.C.
153(44)), but--
``(A) includes all members of an affiliated group of which
a telecommunications carrier is a member, and
``(B) does not include a commercial mobile service carrier.
``(22) Total potential subscriber population.--The term
`total potential subscriber population' means, with respect
to any area and based on the most recent census data, the
total number of potential residential subscribers residing in
dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located
in such area.
``(f) Special Rules.--
``(1) Property used outside the united states, etc., not
qualified.--No expenditures shall be taken into account under
subsection (a)(1) with respect to the portion of the cost of
any property referred to in section 50(b) or with respect to
the portion of the cost of any property specified in an
election under section 179.
``(2) Basis reduction.--
``(A) In general.--For purposes of this title, the basis of
any property shall be reduced by the portion of the cost of
such property taken into account under subsection (a)(1).
``(B) Ordinary income recapture.--For purposes of section
1245, the amount of the deduction allowable under subsection
(a)(1) with respect to any property which is of a character
subject to the allowance for depreciation shall be treated as
a deduction allowed for depreciation under section 167.
``(3) Coordination with section 38.--No credit shall be
allowed under section 38 with respect to any amount for which
a deduction is allowed under subsection (a)(1).''.
(b) Special Rule for Mutual or Cooperative Telephone
Companies.--Section 512(b) (relating to modifications) is
amended by adding at the end the following new paragraph:
``(18) Special rule for mutual or cooperative telephone
companies.--A mutual or cooperative telephone company which
for the taxable year satisfies the requirements of section
501(c)(12)(A) may elect to reduce its unrelated business
taxable income for such year, if any, by an amount that does
not exceed the qualified broadband expenditures which would
be taken into account under section 191 for such year by such
company if such company was not exempt from taxation. Any
amount which is allowed as a deduction under this paragraph
shall not be allowed as a deduction under section 191 and the
basis of any property to which this paragraph applies shall
be reduced under section 1016(a)(32).''.
(c) Conforming Amendments.--
(1) Section 263(a)(1) of the Internal Revenue Code of 1986
(relating to capital expenditures) is amended by striking
``or'' at the end of subparagraph (H), by striking the period
at the end of subparagraph (I) and inserting ``, or'', and by
adding at the end the following new subparagraph:
``(J) expenditures for which a deduction is allowed under
section 191.''.
(2) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (30), by striking the period
at the end of paragraph (31) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(32) to the extent provided in section 191(f)(2).''.
(3) The table of sections for part VI of subchapter A of
chapter 1 of such Code is amended by inserting after the item
relating to section 190 the following new item:

``Sec. 191. Broadband expenditures for rural communities.''.

(d) Designation of Census Tracts.--
(1) In general.--The Secretary of the Treasury shall, not
later than 90 days after the date of the enactment of this
Act, designate and publish those census tracts meeting the
criteria described in paragraphs (16) and (22) of section
191(e) of the Internal Revenue Code of 1986 (as added by this
section). In making such designations, the Secretary of the
Treasury shall consult with such other departments and
agencies as the Secretary determines appropriate.
(2) Saturated market.--
(A) In general.--For purposes of designating and publishing
those census tracts meeting the criteria described in
subsection (e)(19) of such section 191--
(i) the Secretary of the Treasury shall prescribe not later
than 30 days after the date of the enactment of this Act the
form upon which any provider which takes the position that it
meets such criteria with respect to any census tract shall
submit a list of such census tracts (and any other
information required by the Secretary) not later than 60 days
after the date of the publication of such form, and
(ii) the Secretary of the Treasury shall publish an
aggregate list of such census tracts and the applicable
providers not later than 30 days after the last date such
submissions are allowed under clause (i).
(B) No subsequent lists required.--The Secretary of the
Treasury shall not be required to publish any list of census
tracts meeting such criteria subsequent to the list described
in subparagraph (A)(ii).
(e) Other Regulatory Matters.--
(1) Prohibition.--No Federal or State agency or
instrumentality shall adopt regulations or ratemaking
procedures that would have the effect of eliminating or
reducing any deduction or portion thereof allowed under
section 191 of the Internal Revenue Code of 1986 (as added by
this section) or otherwise subverting the purpose of this
section.
(2) Treasury regulatory authority.--It is the intent of
Congress in providing the election to deduct qualified
broadband expenditures under section 191 of the Internal
Revenue Code of 1986 (as added by this section) to provide
incentives for the purchase, installation, and connection of
equipment and facilities offering expanded broadband access
to the Internet for users in certain rural areas of the
United States, as well as to residential users nationwide, in
a manner that maintains competitive neutrality among the
various classes of providers of broadband services.
Accordingly, the Secretary of the Treasury shall prescribe
such regulations as may be necessary or appropriate to carry
out the purposes of section 191 of such Code, including--
(A) regulations to determine how and when a taxpayer that
incurs qualified broadband expenditures satisfies the
requirements of section 191 of such Code to provide broadband
services, and
(B) regulations describing the information, records, and
data taxpayers are required to provide the Secretary to
substantiate compliance with the requirements of section 191
of such Code.
(f) No Implication Regarding the Need for Next Generation
Incentive in Urban Areas.--Nothing in this section shall be
construed to imply that an incentive for next generation
broadband is not needed in urban areas.
(g) Effective Date.--The amendments made by this section
shall apply to expenditures incurred after the date of the
enactment of this Act and before the date which is 12 months
after the date of the enactment of this Act.
______

By Mr. BURR (for himself, Ms. Landrieu, and Mr. Lott):
S. 498. A bill to provide for expansion of electricity transmission
networks in order to support competitive electricity markets, to ensure
reliability of electric service, to modernize regulation and for other
purposes; to the Committee on Energy and Natural Resources.
Mr. BURR. 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. 498

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 ``Interstate
Transmission 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.

TITLE I--RELIABLE AND ECONOMIC TRANSMISSION INFRASTRUCTURE

Sec. 101. Transmission infrastructure investment.
Sec. 102. Open nondiscriminatory access.
Sec. 103. Electric transmission property treated as 15-year property.
Sec. 104. Disposition of property.
Sec. 105. Electric reliability standards.

TITLE II--PROTECTING RETAIL CONSUMERS

Sec. 201. Native load service obligation.
Sec. 202. Voluntary transmission pricing plans.

[[Page S1947]]

TITLE III--VOLUNTARY PARTICIPATION IN REGIONAL TRANSMISSION
ORGANIZATIONS

Sec. 301. Promotion of voluntary development of regional transmission
organizations, independent transmission providers, and
similar organizations.

SEC. 2. FINDINGS.

Congress finds that--
(1) transmission networks are the backbone of reliable
delivery of electric energy and competitive wholesale power
markets;
(2) the expansion, enhancement, and improvement of
transmission facilities, and rules of the road for using the
facilities, are necessary to maintain and improve the
reliability of electric service and to enhance competitive
wholesale markets across the United States and competitive
retail markets that have been adopted by nearly the States;
(3) to ensure reliable and efficient expansion,
enhancement, and improvement of transmission facilities, the
economics of the business of electric transmission and the
Federal regulatory structures applicable to the facilities
must be improved;
(4) Federal electricity regulatory policy should benefit
consumers by providing incentives for infrastructure
improvement and by removing barriers to efficient
competition, and not be dictated by the imposition of market
structures or costly mandates;
(5) slow, burdensome, or duplicative reviews of utility
mergers are a disincentive to the efficient disposition of
utility assets needed to ensure a reliable and efficient
infrastructure;
(6) since efficient competition requires accurate price
signals that reflect cost causation, parties that benefit
from transmission upgrades should be required to pay for the
upgrades;
(7) Federal regulation should not override the interests of
local consumers or State laws that ensure reliable service
and adequate transmission capacity to serve consumers;
(8) in regions where the formation of regional transmission
organizations or similar entities have been formed
voluntarily with oversight or approval by States, the Federal
Energy Regulatory Commission should have clear authority to
approve applications for the organizations that are
consistent with the Federal Power Act (16 U.S.C. 791a et
seq.);
(9) the States and electricity consumers in each region of
the United States, and not the Federal Government, are in the
best position to determine how the electric power systems
serving their regions should be structured, including whether
Regional Transmission Organization formation, traditional
vertical integration, or other structures are cost effective
for their region; and
(10) mandatory reliability rules, developed and enforced by
a self-regulating electric reliability organization, are a
vital component of a comprehensive policy to ensure a robust
and reliable electricity grid.

TITLE I--RELIABLE AND ECONOMIC TRANSMISSION INFRASTRUCTURE

SEC. 101. TRANSMISSION INFRASTRUCTURE INVESTMENT.

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. TRANSMISSION INFRASTRUCTURE INVESTMENT.

``(a) Rulemaking Requirement.--Within 1 year after the
enactment of this section, the Commission shall establish, by
rule, incentive-based (including, but not limited to
performance-based) rate treatments for the transmission of
electric energy in interstate commerce by any public utility
for the purpose of benefitting consumers by ensuring
reliability and reducing the cost of delivered power by
reducing transmission congestion. Such rule shall--
``(1) promote reliable and economically efficient
transmission and generation of electricity by promoting
capital investment in the enlargement, improvement,
maintenance and operation of facilities for the transmission
of electric energy in interstate commerce;
``(2) provide a return on equity, determined using a
variety of reasonable valuation methodologies, that attracts
new investment in transmission facilities (including related
transmission technologies);
``(3) encourage deployment of transmission technologies and
other measures to increase the capacity and efficiency of
existing transmission facilities and improve the operation of
such facilities;
``(4) allow recovery of all prudently incurred costs
necessary to comply with mandatory reliability standards
issued pursuant to section 216 of this Act;
``(5) allow a current return in rates for construction work
in progress for transmission facilities and full recovery of
prudently incurred costs for constructing transmission
facilities;
``(6) allow the use of formula transmission rates;
``(7) allow rates of return that do not vary with capital
structure; and
``(8) allow a maximum 15-year accelerated depreciation on
new transmission facilities for rate treatment purposes.
``(b) Additional Incentives for RTO Participation.--In the
rule issued under this section, the Commission shall, to the
extent within its jurisdiction, provide for incentives to
each transmitting utility or electric utility that joins a
Regional Transmission Organization or Independent System
Operator. Incentives provided by the Commission pursuant to
such rule shall include--
``(1) recovery of all prudently incurred costs to develop
and participate in any proposed or approved RTO, ISO, or
independent transmission company;
``(2) recovery of all costs previously approved by a State
commission which exercised jurisdiction over the transmission
facilities prior to the utility's participation in the RTO or
ISO, including costs necessary to honor preexisting
transmission service contracts, in a manner which does not
reduce the revenues the utility receives for transmission
services for a reasonable transition period after the utility
joins the RTO or ISO; and
``(3) recovery as an expense in rates of the costs
prudently incurred to conduct transmission planning and
reliability activities, including the costs of participating
in RTO, ISO and other regional planning activities and
design, study and other precertification costs involved in
seeking permits and approvals for proposed transmission
facilities.

The Commission shall ensure that any costs recoverable
pursuant to this subsection may be recovered by such utility
through the transmission rates charged by such utility or
through the transmission rates charged by the RTO or ISO that
provides transmission service to such utility.
``(c) Just and Reasonable Rates.--All rates approved under
the rules adopted pursuant to this section, including any
revisions to such rules, are subject to the requirement of
sections 205 and 206 that all rates, charges, terms, and
conditions be just and reasonable and not unduly
discriminatory or preferential.''.

SEC. 102. OPEN NONDISCRIMINATORY ACCESS.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by inserting after section 211 the following new
section:

``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING
UTILITIES.

``(a) Transmission Services.--Subject to section 212(h),
the Commission may, by rule or order, require an unregulated
transmitting utility to provide transmission services--
``(1) at rates that are comparable to those that the
unregulated transmitting utility charges itself; and
``(2) on terms and conditions (not relating to rates) that
are comparable to those under which such unregulated
transmitting utility provides transmission services to itself
and that are not unduly discriminatory or preferential.
``(b) Exemption.--The Commission shall exempt from any rule
or order under this section any unregulated transmitting
utility that--
``(1) sells no more than 4,000,000 megawatt hours of
electricity per year; or
``(2) does not own or operate any transmission facilities
that are necessary for operating an interconnected
transmission system (or any portion thereof); or
``(3) meets other criteria the Commission determines to be
in the public interest.
``(c) Local Distribution Facilities.--The requirements of
subsection (a) shall not apply to facilities used in local
distribution.
``(d) Exemption Termination.--Whenever the Commission,
after an evidentiary hearing held upon a complaint and after
giving consideration to reliability standards established
under section 216, finds on the basis of a preponderance of
the evidence that any exemption granted pursuant to
subsection (b) unreasonably impairs the continued reliability
of an interconnected transmission system, it shall revoke the
exemption granted to that transmitting utility.
``(e) Application to Unregulated Transmitting Utilities.--
The rate changing procedures applicable to public utilities
under subsections (c) and (d) of section 205 are applicable
to unregulated transmitting utilities for purposes of this
section.
``(f) Remand.--In exercising its authority under paragraph
(1) of subsection (a), the Commission may remand transmission
rates to an unregulated transmitting utility for review and
revision where necessary to meet the requirements of
subsection (a).
``(g) Other Requests.--The provision of transmission
services under subsection (a) does not preclude a request for
transmission services under section 211.
``(h) Limitation.--The Commission may not require a State
or municipality to take action under this section that would
violate a private activity bond rule for purposes of section
141 of the Internal Revenue Code of 1986 (26 U.S.C. 141).
``(i) Transfer of Control of Transmitting Facilities.--
Nothing in this section authorizes the Commission to require
an unregulated transmitting utility to transfer control or
operational control of its transmitting facilities to an RTO
or any other Commission-approved independent transmission
organization designated to provide nondiscriminatory
transmission access.
``(j) Definition.--For purposes of this section, the term
`unregulated transmitting utility' means an entity that--
``(1) owns or operates facilities used for the transmission
of electric energy in interstate commerce; and
``(2) is an entity described in section 201(f).''.

SEC. 103. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR
PROPERTY.

(a) In General.--Subparagraph (E) of section 168(e)(3) of
the Internal Revenue Code of

[[Page S1948]]

1986 (relating to classification of certain property) is
amended by striking ``and'' at the end of clause (v), by
striking the period at the end of clause (vi) and by
inserting ``, and'', and by adding at the end the following
new clause:
``(vii) any section 1245 property (as defined in section
1245(a)(3)) used in the transmission at 69 or more kilovolts
of electricity for sale the original use of which commences
with the taxpayer after the date of the enactment of this
clause.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) of the Internal Revenue Code of 1986 (relating
to special rule for certain property assigned to classes) is
amended by inserting after the item relating to subparagraph
(E)(vi) the following:

``(E)(vii)........................................................30''.

(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.

SEC. 104. DISPOSITION OF PROPERTY.

Section 203 of the Federal Power Act (16 U.S.C. 824b) is
repealed.

SEC. 105. ELECTRIC RELIABILITY STANDARDS.

(a) In General.--Part II of the Federal Power Act (16 U.S.C
824 et seq.) (as amended by section 101) is amended by adding
at the end the following:

``SEC. 216. ELECTRIC RELIABILITY.

``(a) Definitions.--For purposes of this section:
``(1) The term `bulk-power system' means--
``(A) facilities and control systems necessary for
operating an interconnected electric energy transmission
network (or any portion thereof); and
``(B) electric energy from generation facilities needed to
maintain transmission system reliability.

The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and
`ERO' mean the organization certified by the Commission under
subsection (c) the purpose of which is to establish and
enforce reliability standards for the bulk-power system,
subject to Commission review.
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term
includes requirements for the operation of existing bulk-
power system facilities and the design of planned additions
or modifications to such facilities to the extent necessary
to provide for reliable operation of the bulk-power system,
but the term does not include any requirement to enlarge such
facilities or to construct new transmission capacity or
generation capacity.
``(4) The term `reliable operation' means operating the
elements of the bulk-power system within equipment and
electric system thermal, voltage, and stability limits so
that instability, uncontrolled separation, or cascading
failures of such system will not occur as a result of a
sudden disturbance or unanticipated failure of system
elements.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of 1 or more of such
components may adversely affect the ability of the operators
of other components within the system to maintain reliable
operation of the facilities within their control.
``(6) The term `transmission organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other transmission
organization finally approved by the Commission for the
operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(b) Jurisdiction and Applicability.--(1) The Commission
shall have jurisdiction, within the United States, over the
ERO certified by the Commission under subsection (c), any
regional entities, and all users, owners and operators of the
bulk-power system, including but not limited to the entities
described in section 201(f), for purposes of approving
reliability standards established under this section and
enforcing compliance with this section. All users, owners and
operators of the bulk-power system shall comply with
reliability standards that take effect under this section.
``(2) The Commission shall issue a final rule to implement
the requirements of this section not later than 180 days
after the date of enactment of this section.
``(c) Certification.--Following the issuance of a
Commission rule under subsection (b)(2), any person may
submit an application to the Commission for certification as
the Electric Reliability Organization. The Commission may
certify 1 such ERO if the Commission determines that such
ERO--
``(1) has the ability to develop and enforce, subject to
subsection (e)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and owners and
operators of the bulk-power system, while assuring fair
stakeholder representation in the selection of its directors
and balanced decisionmaking in any ERO committee or
subordinate organizational structure;
``(B) allocate equitably reasonable dues, fees, and other
charges among end users for all activities under this
section;
``(C) provide fair and impartial procedures for enforcement
of reliability standards through the imposition of penalties
in accordance with subsection (e) (including limitations on
activities, functions, or operations, or other appropriate
sanctions);
``(D) provide for reasonable notice and opportunity for
public comment, due process, openness, and balance of
interests in developing reliability standards and otherwise
exercising its duties; and
``(E) provide for taking, after certification, appropriate
steps to gain recognition in Canada and Mexico.
``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or
modification to a reliability standard that it proposes to be
made effective under this section with the Commission.
``(2) The Commission may approve, by rule or order, a
proposed reliability standard or modification to a
reliability standard if it determines that the standard is
just, reasonable, not unduly discriminatory or preferential,
and in the public interest. The Commission shall give due
weight to the technical expertise of the Electric Reliability
Organization with respect to the content of a proposed
standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability
standard to be applicable within that Interconnection, but
shall not defer with respect to the effect of a standard on
competition. A proposed standard or modification shall take
effect upon approval by the Commission.
``(3) The Electric Reliability Organization shall
rebuttably presume that a proposal from a regional entity
organized on an Interconnection-wide basis for a reliability
standard or modification to a reliability standard to be
applicable on an Interconnection-wide basis is just,
reasonable, and not unduly discriminatory or preferential,
and in the public interest.
``(4) The Commission shall remand to the Electric
Reliability Organization for further consideration a proposed
reliability standard or a modification to a reliability
standard that the Commission disapproves in whole or in part.
``(5) The Commission, upon its own motion or upon
complaint, may order the Electric Reliability Organization to
submit to the Commission a proposed reliability standard or a
modification to a reliability standard that addresses a
specific matter if the Commission considers such a new or
modified reliability standard appropriate to carry out this
section.
``(6) The final rule adopted under subsection (b)(2) shall
include fair processes for the identification and timely
resolution of any conflict between a reliability standard and
any function, rule, order, tariff, rate schedule, or
agreement accepted, approved, or ordered by the Commission
applicable to a transmission organization. Such transmission
organization shall continue to comply with such function,
rule, order, tariff, rate schedule or agreement accepted
approved, or ordered by the Commission until--
``(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
``(C) the ordered change becomes effective under this part.

If the Commission determines that a reliability standard
needs to be changed as a result of such a conflict, it shall
order the ERO to develop and file with the Commission a
modified reliability standard under paragraph (4) or (5) of
this subsection.
``(e) Enforcement.--(1) The ERO may impose, subject to
paragraph (2), a penalty on a user or owner or operator of
the bulk-power system for a violation of a reliability
standard approved by the Commission under subsection (d) if
the ERO, after notice and an opportunity for a hearing--
``(A) finds that the user or owner or operator has violated
a reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with
the Commission.
``(2) A penalty imposed under paragraph (1) may take effect
not earlier than the 31st day after the ERO files with the
Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the
Commission, on its own motion or upon application by the
user, owner or operator that is the subject of the penalty
filed within 30 days after the date such notice is filed with
the Commission. Application to the Commission for review, or
the initiation of review by the Commission on its own motion,
shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon
application by the user, owner or operator that is the
subject of such penalty. In any proceeding to review a
penalty imposed under paragraph (1), the Commission, after
notice and opportunity for hearing (which hearing may consist
solely of the record before the ERO and opportunity for the
presentation of supporting reasons to affirm, modify, or set
aside the penalty), shall by order affirm, set aside,
reinstate, or modify the penalty, and, if appropriate, remand
to the ERO for further proceedings. The Commission shall
implement expedited procedures for such hearings.

[[Page S1949]]

``(3) On its own motion or upon complaint, the Commission
may order compliance with a reliability standard and may
impose a penalty against a user or owner or operator of the
bulk-power system if the Commission finds, after notice and
opportunity for a hearing, that the user or owner or operator
of the bulk-power system has engaged or is about to engage in
any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall issue regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards
under paragraph (1) if--
``(A) the regional entity is governed by--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) a combination independent and balanced stakeholder
board.
``(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.

The Commission may modify such delegation. The ERO and the
Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an
Interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should be
approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards
under paragraph (1) directly to a regional entity consistent
with the requirements of this paragraph.
``(5) The Commission may take such action as is necessary
or appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission
order affecting the ERO or a regional entity.
``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and
shall take into consideration the efforts of such user,
owner, or operator to remedy the violation in a timely
manner.
``(f) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization shall file with the
Commission for approval any proposed rule or proposed rule
change, accompanied by an explanation of its basis and
purpose. The Commission, upon its own motion or complaint,
may propose a change to the rules of the ERO. A proposed rule
or proposed rule change shall take effect upon a finding by
the Commission, after notice and opportunity for comment,
that the change is just, reasonable, not unduly
discriminatory or preferential, is in the public interest,
and satisfies the requirements of subsection (c).
``(g) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
``(h) Coordination With Canada and Mexico.--The President
is urged to negotiate international agreements with the
governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness
of the ERO in the United States and Canada or Mexico.
``(i) Savings Provisions.--(1) The ERO shall have authority
to develop and enforce compliance with reliability standards
for only the bulk-power system.
``(2) This section does not authorize the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities
or services.
``(3) Nothing in this section shall be construed to preempt
any authority of any State to take action to ensure the
safety, adequacy, and reliability of electric service within
that State, as long as such action is not inconsistent with
any reliability standard.
``(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, and after
notice and opportunity for comment, the Commission shall
issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into
consideration any recommendation of the ERO.
``(5) The Commission, after consultation with the ERO and
the State taking action, may stay the effectiveness of any
State action, pending the Commission's issuance of a final
order.
``(j) Regional Advisory Bodies.--The Commission shall
establish a regional advisory body on the petition of at
least \2/3\ of the States within a region that have more than
\1/2\ of their electric load served within the region. A
regional advisory body shall be composed of 1 member from
each participating State in the region, appointed by the
Governor of each State, and may include representatives of
agencies, States, and provinces outside the United States. A
regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the
Commission regarding the governance of an existing or
proposed regional entity within the same region, whether a
standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and in
the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly
discriminatory or preferential, and in the public interest
and any other responsibilities requested by the Commission.
The Commission may give deference to the advice of any such
regional advisory body if that body is organized on an
Interconnection-wide basis.
``(k) Alaska and Hawaii.--The provisions of this section do
not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization
certified by the Federal Energy Regulatory Commission under
section 216(c) of the Federal Power Act and any regional
entity delegated enforcement authority pursuant to section
216(e)(4) of that Act are not departments, agencies, or
instrumentalities of the United States Government.

TITLE II--PROTECTING RETAIL CONSUMERS

SEC. 201. NATIVE LOAD SERVICE OBLIGATION.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.)
(as amended by section 105(a)) is amended by adding at the
end the following:

``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.

``(a) Meeting Service Obligations.--(1) Any load-serving
entity that, as of the date of enactment of this section--
``(A) owns generation facilities, markets the output of
Federal generation facilities, or holds rights under 1 or
more wholesale contracts to purchase electric energy, for the
purpose of meeting a service obligation, and
``(B) by reason of ownership of transmission facilities, or
1 or more contracts or service agreements for firm
transmission service, holds firm transmission rights for
delivery of the output of such generation facilities or such
purchased energy to meet such service obligation, is entitled
to use such firm transmission rights, or, equivalent tradable
or financial transmission rights, in order to deliver such
output or purchased energy, or the output of other generating
facilities or purchased energy to the extent deliverable
using such rights, to the extent required to meet its service
obligation.
``(2) To the extent that all or a portion of the service
obligation covered by such firm transmission rights or
equivalent tradable or financial transmission rights is
transferred to another load-serving entity, the successor
load-serving entity shall be entitled to use the firm
transmission rights or equivalent tradable or financial
transmission rights associated with the transferred service
obligation. Subsequent transfers to another load-serving
entity, or back to the original load-serving entity, shall be
entitled to the same rights.
``(3) The Commission shall exercise its authority under
this Act in a manner that facilitates the planning and
expansion of transmission facilities to meet the reasonable
needs of load-serving entities to satisfy their service
obligations.
``(b) Allocation of Transmission Rights.--Nothing in this
section shall affect any methodology approved by the
Commission prior to September 15, 2003, for the allocation of
transmission rights by an RTO or ISO that has been authorized
by the Commission to allocate transmission rights.
``(c) Certain Transmission Rights.--The Commission may
exercise authority under this Act to make transmission rights
not used to meet an obligation covered by subsection (a)
available to other entities in a manner determined by the
Commission to be just, reasonable, and not unduly
discriminatory or preferential.
``(d) Obligation To Build.--Nothing in this Act shall
relieve a load-serving entity from any obligation under State
or local law to build transmission or distribution facilities
adequate to meet its service obligations.
``(e) Contracts.--Nothing in this section shall provide a
basis for abrogating any contract or service agreement for
firm transmission service or rights in effect as of the date
of the enactment of this subsection.
``(f) Water Pumping Facilities.--The Commission shall
ensure that any entity described in section 201(f) that owns
transmission facilities used predominately to support its own
water pumping facilities shall have, with respect to such
facilities, protections for transmission service comparable
to those provided to load-serving entities pursuant to this
section.
``(g) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).
``(h) Jurisdiction.--This section does not authorize the
Commission to take any action not otherwise within its
jurisdiction.
``(i) Effect of Exercising Rights.--An entity that lawfully
exercises rights granted under subsection (a) shall not be
considered by such action as engaging in undue discrimination
or preference under this Act.
``(j) Definitions.--For purposes of this section:
``(1) The term `distribution utility' means an electric
utility that has a service obligation to end-users or to a
State utility or electric cooperative that, directly or
indirectly, through 1 or more additional State utilities or
electric cooperatives, provides electric service to end-
users.
``(2) The term `load-serving entity' means a distribution
utility or an electric utility that has a service obligation.
``(3) The term `service obligation' means a requirement
applicable to, or the exercise of authority granted to, an
electric utility under Federal, State or local law or under
long-term contracts to provide electric service to end-users
or to a distribution utility.
``(4) The term `State utility' means a State or any
political subdivision of a State, or

[[Page S1950]]

any agency, authority, or instrumentality of any 1 or more of
the foregoing, or a corporation which is wholly owned,
directly or indirectly, by any 1 or more of the foregoing,
competent to carry on the business of developing,
transmitting, utilizing or distributing power.''.

SEC. 202. VOLUNTARY TRANSMISSION PRICING PLANS.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.)
(as amended by section 201) is amended by adding at the end
the following:

``SEC. 218. VOLUNTARY TRANSMISSION PRICING PLANS.

``(a) In General.--Any transmission provider, including an
RTO or ISO, may submit to the Commission a plan or plans
under section 205 containing the criteria for determining the
person or persons that will be required to pay for any
construction of new transmission facilities or expansion,
modification or upgrade of transmission facilities (in this
section referred to as `transmission service related
expansion') or new generator interconnection.
``(b) Voluntary Transmission Pricing Plans.--(1) Any plan
or plans submitted under subsection (a) shall specify the
method or methods by which costs may be allocated or
assigned. Such methods may include, but are not limited to:
``(A) directly assigned;
``(B) participant funded; or
``(C) rolled into regional or sub-regional rates.
``(2) FERC shall approve a plan or plans submitted under
subparagraph (B) of paragraph (1) if such plan or plans--
``(A) result in rates that are just and reasonable and not
unduly discriminatory or preferential consistent with section
205; and
``(B) ensure that the costs of any transmission service
related expansion or new generator interconnection not
required to meet applicable reliability standards established
under section 216 are assigned in a fair manner, meaning that
those who benefit from the transmission service related
expansion or new generator interconnection pay an appropriate
share of the associated costs, provided that--
``(i) costs may not be assigned or allocated to an electric
utility if the native load customers of that utility would
not have required such transmission service related expansion
or new generator interconnection absent the request for
transmission service related expansion or new generator
interconnection that necessitated the investment;
``(ii) the party requesting such transmission service
related expansion or new generator interconnection shall not
be required to pay for both--
``(I) the assigned cost of the upgrade; and
``(II) the difference between--

``(aa) the embedded cost paid for transmission services
(including the cost of the requested upgrade); and
``(bb) the embedded cost that would have been paid absent
the upgrade; and

``(iii) the party or parties who pay for facilities
necessary for the transmission service related expansion or
new generator interconnection receives full compensation for
its costs for the participant funded facilities in the form
of--
``(I) monetary credit equal to the cost of the participant
funded facilities (accounting for the time value of money at
the Gross Domestic Product deflator), which credit shall be
pro-rated in equal installments over a period of not more
than 30 years and shall not exceed in total the amount of the
initial investment, against the transmission charges that the
funding entity or its assignee is otherwise assessed by the
transmission provider;
``(II) appropriate financial or physical rights; or
``(III) any other method of cost recovery or compensation
approved by the Commission.
``(3) A plan submitted under this section shall apply only
to--
``(A) a contract or interconnection agreement executed or
filed with the Commission after the date of enactment of this
section; or
``(B) an interconnection agreement pending rehearing as of
November 1, 2003.
``(4) Nothing in this section diminishes or alters the
rights of individual members of an RTO or ISO under this Act.
``(5) Nothing in this section shall affect the allocation
of costs or the cost methodology employed by an RTO or ISO
authorized by the Commission to allocate costs (including
costs for transmission service related expansion or new
generator interconnection) prior to the date of enactment of
this section.
``(6) This section shall not apply within the area referred
to in section 212(k)(2)(A).
``(7) The term `transmission provider' means a public
utility that owns or operates facilities that provide
interconnection or transmission service in interstate
commerce.''.

TITLE III--VOLUNTARY PARTICIPATION IN REGIONAL TRANSMISSION
ORGANIZATIONS

SEC. 301. PROMOTION OF VOLUNTARY DEVELOPMENT OF REGIONAL
TRANSMISSION ORGANIZATIONS, INDEPENDENT
TRANSMISSION PROVIDERS, AND SIMILAR
ORGANIZATIONS.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.)
(as amended by section 202) is amended by adding at the end
thereof the following new section:

``SEC. 219. PROMOTION OF VOLUNTARY DEVELOPMENT OF REGIONAL
TRANSMISSION ORGANIZATIONS, INDEPENDENT
TRANSMISSION PROVIDERS, AND SIMILAR
ORGANIZATIONS.

``(a) In General.--The Commission may approve and may
encourage the formation of regional transmission
organizations, independent transmission providers, and
similar organizations (referred to in this section as
`transmission organizations') for the purpose of enhancing
the transmission of electric energy in interstate commerce.
Among options for the formation of a transmission
organization, the Commission shall prefer those in which--
``(1) participation in the organization by transmitting
utilities is voluntary;
``(2) the form, structure, and operating entity of the
organization are approved of by participating transmitting
utilities; and
``(3) market incentives exist to promote investment for
expansion of transmission facilities and for the introduction
of new transmission technologies within the territory of the
organization.
``(b) Conditions.--No order issued under this Act shall be
conditioned upon or require a transmitting utility to
transfer operational control of jurisdictional facilities to
an independent system operator or other transmission
organization.
``(c) Complaint.--In addition to any other rights or
remedies it may have under this Act, any entity serving
electric load that is denied services by a transmission
organization that the transmission organization makes
available to other load serving entities shall be entitled to
file a complaint with the Commission concerning the denial of
such services. If the Commission shall find, after an
evidentiary hearing on the record, that the denial of
services complained of was unjust, unreasonable, unduly
discriminatory or preferential, or contrary to the public
interest, the Commission may order the provision of such
services at rates and on terms and conditions that shall be
in accordance with this Act.''.
______

By Mr. DODD:
S. 499. A bill to amend the Consumer Credit Protection Act to ban
abusive credit practices, enhance consumer disclosures, protect
underage consumers, and for other purposes; to the Committee on
Banking, Housing, and Urban Affairs.
Mr. DODD. Mr. President, I rise today to introduce legislation, the
Credit CARD Act of 2005 (the Credit Card Accountability Responsibility
and Disclosure Act of 2005), designed to protect our Nation's consumers
from the predatory practices of the credit card industry.
The Credit CARD Act is substantially the same as legislation I
previously introduced in the 108th Congress. As the Senate considers
bankruptcy reform legislation, which I believe will adversely impact
consumers and inappropriately reward the credit card industry, the
Credit CARD Act is needed now more than ever before.
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. 499

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 ``Credit Card Accountability
Responsibility and Disclosure Act of 2005'' or the ``Credit
CARD Act of 2005''.

SEC. 2. REGULATORY AUTHORITY.

The Board of Governors of the Federal Reserve System may
issue such rules or publish such model forms as it considers
necessary to carry out this Act and the amendments made by
this Act.

TITLE I--ABUSIVE PRACTICES

Subtitle A--Use of Default Clauses

SEC. 111. PRIOR NOTICE OF RATE INCREASES REQUIRED.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is
amended by adding at the end the following:
``(h) Advance Notice of Increase in Interest Rate
Required.--
``(1) In general.--In the case of any credit card account
under an open end consumer credit plan, no increase in any
annual percentage rate of interest (other than an increase
due to the expiration of any introductory percentage rate of
interest, or due solely to a change in another rate of
interest to which such rate is indexed)--
``(A) may take effect before the beginning of the billing
cycle which begins not less than 15 days after the obligor
receives notice of such increase; or
``(B) may apply to any outstanding balance of credit under
such plan as of the date of the notice of the increase
required under paragraph (1).
``(2) Notice of right to cancel.--The notice referred to in
paragraph (1) with respect to an increase in any annual
percentage rate of interest shall be made in a clear and
conspicuous manner and shall contain a brief statement of the
right of the obligor to cancel the account before the
effective date of the increase.''.

SEC. 112. FREEZE ON INTEREST RATE TERMS AND FEES ON CANCELED
CARDS.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637),
as amended by this Act, is amended by adding at the end the
following:

[[Page S1951]]

``(i) Freeze on Interest Rate Terms and Fees on Canceled
Cards.--If an obligor referred to in subsection (h) closes or
cancels a credit card account before the beginning of the
billing cycle referred to in subsection (h)(1)--
``(1) an annual percentage rate of interest applicable
after the cancellation with respect to the outstanding
balance on the account as of the date of cancellation may not
exceed any annual percentage rate of interest applicable with
respect to such balance under the terms and conditions in
effect before the date of the notice of any increase referred
to in subsection (h)(1); and
``(2) the repayment of the outstanding balance after the
cancellation shall be subject to all other terms and
conditions applicable with respect to such account before the
date of the notice of the increase referred to in subsection
(h).''.

SEC. 113. LIMITS ON FINANCE AND INTEREST CHARGES FOR ON-TIME
PAYMENTS.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637),
as amended by this Act, is amended by adding at the end the
following:
``(j) Prohibition on Penalties for On-Time Payments.--
``(1) Prohibition on finance charges for on-time
payments.--In the case of any credit card account under an
open end credit plan, where no other balance is owing on the
account, no finance or interest charge may be imposed with
regard to any amount of a new extension of credit that was
paid on or before the date on which it was due.
``(2) Prohibition on cancellation or additional fees for
on-time payments or payment in full.--In the case of any
credit card account under an open end consumer credit plan,
no fee or other penalty may be imposed on the consumer in
connection with the payment in full of an existing account
balance, or payment of more than the minimum required payment
of an existing account balance.''.

SEC. 114. PROHIBITION ON OVER-THE-LIMIT FEES FOR CREDITOR-
APPROVED TRANSACTIONS.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637),
as amended by this Act, is amended by adding at the end the
following:
``(k) Limitation on Imposition of Over-the-Limit Fees.--In
the case of any credit card account under an open end
consumer credit plan, a creditor may not impose any fees on
the obligor for any extension of credit in excess of the
amount of credit authorized to be extended with respect to
such account, if the extension of credit is made in
connection with a credit transaction which the creditor
approves in advance or at the time of the transaction.''.

TITLE II--ENHANCED CONSUMER DISCLOSURES

SEC. 211. DISCLOSURES RELATED TO ``TEASER RATES''.

Section 127(c) of the Truth in Lending Act (15 U.S.C.
1637(c)) is amended--
(1) by redesignating paragraph (5) as paragraph (7); and
(2) by inserting after paragraph (4) the following:
``(5) Additional notice concerning `teaser rates'.--
``(A) In general.--An application or solicitation for a
credit card for which a disclosure is required under this
subsection shall contain the disclosures referred to in
subparagraph (B) or (C), as applicable, if the application or
solicitation offers, for an introductory period of less than
1 year, an annual percentage rate of interest that--
``(i) is less than the annual percentage rate of interest
which will apply after the end of the introductory period; or
``(ii) in the case of an annual percentage rate which
varies in accordance with an index, is less than the current
annual percentage rate under the index which will apply after
the end of the introductory period.
``(B) Fixed annual percentage rate.--If the annual
percentage rate which will apply after the end of the
introductory period will be a fixed rate, the application or
solicitation shall include the following disclosure: `The
annual percentage rate of interest applicable during the
introductory period is not the annual percentage rate which
will apply after the end of the introductory period. The non-
introductory annual percentage rate will apply after [insert
applicable date] and will be [insert applicable percentage
rate].'.
``(C) Variable annual percentage rate.--If the annual
percentage rate which will apply after the end of the
introductory period will vary in accordance with an index,
the application or solicitation shall include the following
disclosure: `The annual percentage rate of interest
applicable during the introductory period is not the annual
percentage rate which will apply after the end of the
introductory period. The permanent annual percentage rate
will be determined by an index and will apply after [insert
applicable date]. If the index which will apply after such
date were applied to your account today, the annual
percentage rate would be [insert applicable percentage
rate].'.
``(D) Conditions for introductory rates.--If the annual
percentage rate of interest which will apply during the
introductory period described in subparagraph (A) is
revocable or otherwise conditioned upon any action by the
obligor, including any failure by the obligor to pay the
minimum payment amount or finance charge or to make any
payment by the stated monthly payment due date, the
application or solicitation shall include a disclosure of--
``(i) the conditions that the obligor must meet in order to
retain the annual percentage rate of interest during the
introductory period; and
``(ii) the annual percentage rate of interest that will
apply as a result of the failure of the obligor to meet such
conditions.
``(E) Form of disclosures.--The disclosures required under
this paragraph shall be made in a clear and conspicuous
manner, in a format that is at least as prominent as the
disclosure of the annual percentage rate of interest which
will apply during the introductory period.''.

SEC. 212. PAYOFF TIMING DISCLOSURES.

(a) In General.--Section 127(b) of the Truth in Lending Act
(15 U.S.C. 1637(b)) is amended by adding at the end the
following:
``(11)(A) Repayment information that would apply to the
outstanding balance of the consumer under the credit plan,
including--
``(i) the outstanding balance in the account at the
beginning of the statement period, as required by paragraph
(1) of this subsection;
``(ii) the required minimum monthly payment on that
balance, represented as both a dollar figure and as a
percentage of that balance;
``(iii) the due date, within which, payment must be made to
avoid addition charges, as required by paragraph (9) of this
subsection;
``(iv) the number of months (rounded to the nearest month)
that it would take to pay the entire amount of that balance,
if the consumer pays only the required minimum monthly
payments and if no further advances are made;
``(v) the total cost to the consumer, including interest
and principal payments, of paying that balance in full, if
the consumer pays only the required minimum monthly payments
and if no further advances are made; and
``(vi) the monthly payments amount that would be required
for the consumer to eliminate the outstanding balance in 36
months if no further advances are made.
``(B)(i) Subject to clause (ii), in making the disclosures
under subparagraph (A) the creditor shall apply the interest
rate in effect on the date on which the disclosure is made
until the date on which the balance would be paid in full.
``(ii) If the interest rate in effect on the date on which
the disclosure is made is a temporary rate that will change
under a contractual provision applying an index or formula
for subsequent interest rate adjustment, the creditor shall
apply the interest rate in effect on the date on which the
disclosure is made for as long as that interest rate will
apply under that contractual provision, and then apply an
interest rate based on the index or formula in effect on the
applicable billing date.
``(C) Form of disclosure.--
``(i) In general.--All of the information described in
subparagraph (A) shall--
``(I) be disclosed in the form and manner which the Board
shall prescribe by regulations; and
``(II) be placed in a conspicuous and prominent location on
the billing statement in typeface that is at least as large
as the largest type on the statement, but in no instance less
than 12-point in size.
``(D) Tabular format.--
``(i) Form of table to be prescribed.--In the regulations
prescribed under subparagraph (C), the Board shall require
that the disclosure of such information shall be in the form
of a table that--
``(I) contains clear and concise headings for each item of
such information; and
``(II) provides a clear and concise form stating each item
of information required to be disclosed under each such
heading.
``(E) Requirements regarding location and order of table.--
In prescribing the form of the table under subparagraph (D),
the Board shall require that--
``(i) all of the information in the table, and not just a
reference to the table, be placed on the billing statement,
as required by this subparagraph; and
``(ii) the items required to be included in the table shall
be listed in the order in which such items are set forth in
subparagraph (A).
``(F) Board discretion in prescribing order and wording of
table.--In prescribing the form of the table under
subparagraph (C), the Board shall--
``(i) employ terminology which is different than the
terminology which is employed in subparagraph (A), if such
terminology is easily understood and conveys substantially
the same meaning.''.
(b) Civil Liability.--Section 130(a) of the Truth in
Lending Act (15 U.S.C. 1640(a)) is amended, in the
undesignated paragraph following paragraph (4), by striking
the second sentence and inserting the following: ``In
connection with the disclosures referred to in subsections
(a) and (b) of section 127, a creditor shall have a liability
determined under paragraph (2) only for failing to comply
with the requirements of section 125, 127(a), or paragraph
(4), (5), (6), (7), (8), (9), (10), or (11) of section
127(b), or for failing to comply with disclosure requirements
under State law for any term or item that the Board has
determined to be substantially the same in meaning under
section 111(a)(2) as any of the terms or items referred to in
section 127(a), or paragraph (4), (5), (6), (7), (8), (9),
(10), or (11) of section 127(b).

[[Page S1952]]

SEC. 213. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND
PENALTIES.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637),
as amended by this Act, is amended by adding at the end the
following:
``(l) Requirements Relating to Late Payment Deadlines and
Penalties.--
``(1) Late payment deadline and postmark date required to
be disclosed.--In the case of a credit card account under an
open end consumer credit plan under which a late fee or
charge may be imposed due to the failure of the obligor to
make payment on or before the due date for such payment, the
periodic statement required under subsection (b) with respect
to the account shall include, in a conspicuous location on
the billing statement--
``(A) the date on which the payment is due or, if
different, the date on which a late payment fee will be
charged, together with the amount of the fee or charge to be
imposed if payment is made after that date;
``(B) the date by which the payment must be postmarked, if
paid by mail, in order to avoid the imposition of a late
payment fee with respect to the payment; and
``(C) a statement that no late fee may be imposed in
connection with a payment made by mail which was postmarked
on or before the postmark date.
``(2) Disclosure of increase in interest rates for late
payments.--If 1 or more late payments under an open end
consumer credit plan may result in an increase in the annual
percentage rate the account, the statement required under
subsection (b) with respect to the account shall include
conspicuous notice of such fact, together with the applicable
penalty annual percentage rate, in close proximity to the
disclosure required in paragraph (1) of the date on which
payment is due under the terms of the account.
``(3) Requirements relating to postmark date.--
``(A) In general.--The date included in a periodic
statement pursuant to paragraph (1)(B) with regard to the
postmark on a payment shall allow, in accordance with
regulations prescribed by the Board under subparagraph (B), a
reasonable time for the consumer to make the payment and a
reasonable time for the delivery of the payment by the due
date.
``(B) Board regulations.--The Board shall prescribe
guidelines for determining a reasonable period of time for
making a payment and delivery of a payment for purposes of
subparagraph (A), after consultation with the Postmaster
General and representatives of consumer and trade
organizations.
``(4) Payment at local branches.--If the creditor, in the
case of a credit card account referred to in paragraph (1),
is a financial institution which maintains branches or
offices at which payments on any such account are accepted
from the obliger in person, the date on which the obliger
makes a payment on the account at such branch or office shall
be considered as the date on which the payment is made for
purposes of determining whether a late fee or charge may be
imposed due to the failure of the obligor to make payment on
or before the due date for such payment, to the extent that
such payment is made before the close of business of the
branch or office on the business day immediately preceding
the due date for such payment.''.

TITLE III--RESPONSIBILITIES IN BANKRUPTCY

SEC. 311. AMENDMENTS TO THE BANKRUPTCY CODE.

Section 523(a)(2)(C) of title 11, United States Code, is
amended by adding at the end the following: ``However, this
subparagraph shall not apply for any portion of debt incurred
under an open end credit plan, as defined in section 103 of
the Truth in Lending Act, if the annual rate of interest
charged with respect to the account was more than 20
percentage points above the Federal prime lending rate on the
last day of month during which the interest was charged.''.

TITLE IV--PROTECTION OF YOUNG CONSUMERS

SEC. 411. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

Section 127(c) of the Truth in Lending Act (15 U.S.C.
1637(c)) is amended by inserting after paragraph (5), as
added by this Act, the following:
``(6) Applications from underage consumers.--
``(A) Prohibition on issuance.--No credit card may be
issued to, or open end credit plan established on behalf of,
a consumer who has not attained the age of 21, unless the
consumer has submitted a written application to the card
issuer that meets the requirements of subparagraph (B).
``(B) Application requirements.--An application to open a
credit card account by an individual who has not attained the
age of 21 as of the date of submission of the application
shall require--
``(i) the signature of the parent, legal guardian, or
spouse of the consumer, or any other individual having a
means to repay debts incurred by the consumer in connection
with the account, indicating joint liability for debts
incurred by the consumer in connection with the account
before the consumer has attained the age of 21;
``(ii) submission by the consumer of financial information
indicating an independent means of repaying any obligation
arising from the proposed extension of credit in connection
with the account; or
``(iii) proof by the consumer that the consumer has
completed a credit counseling course of instruction by a
nonprofit budget and credit counseling agency approved by the
Board for such purpose.
``(C) Minimum requirements for counseling agencies.--To be
approved by the Board under subparagraph (B)(iii), a credit
counseling agency shall, at a minimum--
``(i) be a nonprofit budget and credit counseling agency,
the majority of the board of directors of which--

``(I) is not employed by the agency; and

``(II) will not directly or indirectly benefit financially
from the outcome of a credit counseling session;

``(ii) if a fee is charged for counseling services, charge
a reasonable fee, and provide services without regard to
ability to pay the fee; and
``(iii) provide trained counselors who receive no
commissions or bonuses based on referrals, and demonstrate
adequate experience and background in providing credit
counseling.''.

SEC. 412. ENHANCED PENALTIES.

Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C.
1640 (a)(2)(A)(iii)) is amended by striking ``or (iii) in
the'' and inserting the following:
``(iii) in the case of an individual action relating to an
open end credit plan that is not secured by real property or
a dwelling, twice the amount of any finance charge in
connection with the transaction, with a minimum of $500 and a
maximum of $5,000 or such higher amount as may be appropriate
in the case of an established pattern or practice of such
failures; or
``(iv) in the''.

SEC. 413. RESTRICTIONS ON CERTAIN AFFINITY CARDS.

Section 127 of the Truth in Lending Act (15 U.S.C. 1637),
as amended by this Act, is amended by adding at the end the
following:
``(m) Restrictions on Issuance of Affinity Cards to
Students.--No credit card account under an open end credit
plan may be established by an individual who has not attained
the age of 21 as of the date of submission of the application
pursuant to any agreement relating to affinity cards, as
defined by the Board, between the creditor and an institution
of higher education, as defined in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)), unless the
requirements of section 127(c)(6) are met with respect to the
obliger.''.

____________________