[Congressional Record Volume 151, Number 25 (Monday, March 7, 2005)]
[Senate]
[Pages S2149-S2171]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. FEINGOLD:
S. 534. A bill to amend the Internal Revenue Code of 1986 to repeal
the percentage depletion allowance for certain hard rock mines, and for
other purposes; to the Committee on Finance.
Mr. FEINGOLD. Mr. President, today I am reintroducing legislation to
eliminate from the Federal tax code percentage depletion allowances for
hardrock minerals mined on Federal public lands. I thank Senator
Cantwell for joining me as a cosponsor on this legislation.
President Clinton proposed the elimination of the percentage
depletion allowance on public lands in his fiscal year 2001 budget.
President Clinton's fiscal year 2001 budget estimated that, under this
legislation, income to the Federal treasury from the elimination of
percentage depletion allowances for hardrock mining on public lands
would total $487 million over 5 years and $1.20 billion over 10 years.
The Joint Committee on Taxation estimated that it would save $410
million over 5 years and $823 million over 10 years. Percentage
depletion allowances are contained in the tax code for extracted fuel,
minerals, metal and other mined commodities. These allowances have a
combined value, according to estimates by the Joint Committee on
Taxation, of $4.8 billion.
These percentage depletion allowances were initiated by the
Corporation Excise Act of 1909. That's right, these allowances were
initiated nearly one hundred years ago. Provisions for a depletion
allowance based on the value of the mine were made under a 1912
Treasury Department regulation, but difficulty in applying this
accounting principle to mineral production led to the initial
codification of the mineral depletion allowance in the Tariff Act of
1913. The Revenue Act of 1926 established percentage depletion much in
its present form for oil and gas. The percentage depletion allowance
was then extended to metal mines, coal, and other hardrock minerals by
the Revenue Act of 1932, and has been adjusted several times since.
Percentage depletion allowances were historically placed in the tax
code to reduce the effective tax rates in the mineral and extraction
industries far below tax rates on other industries, providing
incentives to increase investment, exploration and output. Percentage
depletion also makes it possible, however, to recover many times the
amount of the original investment.
There are two methods of calculating a deduction to allow a firm to
recover the costs of its capital investment: cost depletion and
percentage depletion. Cost depletion allows for the recovery of the
actual capital investment--the costs of discovering, purchasing, and
developing a mineral reserve--over the period during which the reserve
produces income. Under the cost depletion method, the total deductions
cannot exceed the original capital investment.
Under percentage depletion, however, the deduction for recovery of a
company's investment is a fixed percentage of ``gross income,'' namely,
sales revenue from the sale of the mineral. Under this method, total
deductions typically exceed the capital that the company invested.
The rates for percentage depletion are quite significant. Section 613
of the
[[Page S2150]]
U.S. Code contains depletion allowances for more than 70 metals and
minerals, at rates ranging from 10 to 22 percent.
In addition to repealing the percentage depletion allowances for
minerals mined on public lands, my bill would also create a new fund,
called the Abandoned Mine Reclamation Fund. One-fourth of the revenue
raised by the bill, or approximately $120 million, would be deposited
into an interest-bearing fund in the Treasury to be used to clean up
abandoned hardrock mines in States that are subject to the 1872 Mining
Law. The Mineral Policy Center estimates that there are 557,650
abandoned hardrock mine sites nationwide and the cost of clearing them
up will range from $32.7 billion to $71.5 billion.
There are currently no comprehensive Federal or State programs to
address the need to clean up old mine sites. Reclaiming these sites
requires the enactment of a program with explicit authority to clean up
abandoned mine sites and the resources to do it. My legislation is a
first step toward providing the needed authority and resources.
In today's budget climate, we are faced with the question of who
should bear the costs of exploration, development, and production of
natural resources: all taxpayers, or the users and producers of the
resource? For more than a century, the mining industry has been paying
next to nothing for the privilege of extracting minerals from public
lands and then abandoning its mines. Now those mines are adding to the
Nation's environmental and financial burdens. We face serious budget
choices this fiscal year, and one of those choices is whether to
continue the special tax breaks provided to the mining industry.
The measure I am introducing is straightforward. It eliminates the
percentage depletion allowance for hardrock minerals mined on public
lands while continuing to allow companies to recover reasonable cost
depletion.
Though at one time there may have been an appropriate role for a
government-driven incentive for enhanced mineral production, there is
now sufficient reason to adopt a more reasonable depletion allowance
that is consistent with depreciation rates given to other businesses.
This corporate subsidy is simply not justified.
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. 534
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 ``Elimination of Double
Subsidies for the Hardrock Mining Industry Act of 2005''.
SEC. 2. REPEAL OF PERCENTAGE DEPLETION ALLOWANCE FOR CERTAIN
HARDROCK MINES.
(a) In General.--Section 613(a) of the Internal Revenue
Code of 1986 (relating to percentage depletion) is amended by
inserting ``(other than hardrock mines located on lands
subject to the general mining laws or on land patented under
the general mining laws)'' after ``In the case of the
mines''.
(b) General Mining Laws Defined.--Section 613 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following:
``(f) General Mining Laws.--For purposes of subsection (a),
the term `general mining laws' means those Acts which
generally comprise chapters 2, 12A, and 16, and sections 161
and 162 of title 30 of the United States Code.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.
SEC. 3. ABANDONED MINE RECLAMATION FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 (relating to establishment of trust
funds) is amended by adding at the end the following:
``SEC. 9511. ABANDONED MINE RECLAMATION FUND.
``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Abandoned Mine Reclamation Trust Fund' (in this section
referred to as `Trust Fund'), consisting of such amounts as
may be appropriated or credited to the Trust Fund as provided
in this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby
appropriated to the Trust Fund amounts equivalent to 25
percent of the additional revenues received in the Treasury
by reason of the amendments made by section 2 of the
Elimination of Double Subsidies for the Hardrock Mining
Industry Act of 2005.
``(c) Expenditures From Trust Fund.--
``(1) In general.--Amounts in the Trust Fund shall be
available, as provided in appropriation Acts, to the
Secretary of the Interior for--
``(A) the reclamation and restoration of lands and water
resources described in paragraph (2) adversely affected by
mineral (other than coal and fluid minerals) and mineral
material mining, including--
``(i) reclamation and restoration of abandoned surface mine
areas and abandoned milling and processing areas,
``(ii) sealing, filling, and grading abandoned deep mine
entries,
``(iii) planting on lands adversely affected by mining to
prevent erosion and sedimentation,
``(iv) prevention, abatement, treatment, and control of
water pollution created by abandoned mine drainage, and
``(v) control of surface subsidence due to abandoned deep
mines, and
``(B) the expenses necessary to accomplish the purposes of
this section.
``(2) Lands and water resources.--
``(A) In general.--The lands and water resources described
in this paragraph are lands within States that have land and
water resources subject to the general mining laws or lands
patented under the general mining laws--
``(i) which were mined or processed for minerals and
mineral materials or which were affected by such mining or
processing, and abandoned or left in an inadequate
reclamation status before the date of the enactment of this
section,
``(ii) for which the Secretary of the Interior makes a
determination that there is no continuing reclamation
responsibility under State or Federal law, and
``(iii) for which it can be established to the satisfaction
of the Secretary of the Interior that such lands or resources
do not contain minerals which could economically be extracted
through remining of such lands or resources.
``(B) Certain sites and areas excluded.--The lands and
water resources described in this paragraph shall not include
sites and areas which are designated for remedial action
under the Uranium Mill Tailings Radiation Control Act of 1978
(42 U.S.C. 7901 et seq.) or which are listed for remedial
action under the Comprehensive Environmental Response
Compensation and Liability Act of 1980 (42 U.S.C. 9601 et
seq.).
``(3) General mining laws.--For purposes of paragraph (2),
the term `general mining laws' means those Acts which
generally comprise chapters 2, 12A, and 16, and sections 161
and 162 of title 30 of the United States Code.''.
(b) Conforming Amendment.--The table of sections for
subchapter A of chapter 98 of the Internal Revenue Code of
1986 is amended by adding at the end the following:
``Sec. 9511. Abandoned Mined Reclamation Trust Fund.''.
______
By Mr. INOUYE (for himself and Ms. Cantwell):
S. 535. A bill to establish grant programs for the development of
telecommunications capacities in Indian country; to the Committee on
Indian Affairs.
Mr. INOUYE. Mr. President, I rise today to introduce the Native
American Connectivity Act. Senator Cantwell joins me in sponsoring this
measure.
Over 70 years ago, we passed the Communications Act of 1934 and
committed ``to make available . . . to all the people of the United
States . . . a rapid, efficient, Nationwide, and world-wide wire and
radio communication service with adequate facilities at reasonable
charges. . . .'' It is now 2005, and the Federal Government has yet to
fulfill this commitment in Indian country.
Relying on 2000 Census data, the Federal Communications Commission,
FCC, estimates that, on average, only 67.9 percent of Indian households
located on Indian reservations have telephone service compared to a
national average of 95 percent. Even more alarming is that household
telephone rates for some tribes, such as the Kickapoo Reservation in
Texas and the Navajo Nation, are as low as 33 percent and 38 percent,
respectively. Available data also shows that many Native Americans lack
access not only to basic telephone service but also to advanced
telecommunications services and information technology.
As a result, many Native Americans lack access to emergency 911
services, are unable to secure employment because they do not have
telephone service or Internet, and cannot otherwise participate in many
daily activities that non-Native Americans take for granted. Moreover,
the lack of telecommunications infrastructure impedes the economic
development of tribal communities, educational opportunities, language
retention and preservation, and access to adequate health care.
[[Page S2151]]
Tribal governments and their citizens must have access to the
necessary resources to develop their telecommunications capacities. A
recent report by the Harvard Project on American Indian Economic
Development credited tribal self-governance for improvements in
socioeconomic growth at rates that far exceed progress being made
nationally. This bill will provide the resources necessary to enhance
and strengthen tribal self-determination to address telecommunications
needs. As a result, tribal governments should be able to make further
gains in socioeconomic conditions.
I urge my colleagues to give their favorable consideration to this
measure.
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. 535
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Native American Connectivity
Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1)(A) disparities exist in the areas of education, health
care, workforce training, commerce, and economic activity of
Indians due to the rural nature of most Indian reservations;
and
(B) access to basic and advanced telecommunications
infrastructure is critical in eliminating those disparities;
(2) currently, only 67.9 percent of Indian homes have
telephone service, compared with the national average of 95.1
percent;
(3) the telephone service penetration rate on some
reservations is as low as 39 percent;
(4) even on reservations and trust land, non-Indian homes
are more likely to have telephone service than Indian homes;
(5) only 10 percent of Indian households on tribal land
have Internet access;
(6) only 17 percent of Indian tribes have developed
comprehensive technology plans;
(7) training and technical assistance have been identified
as the most significant needs for the development and
effective use of telecommunications and information
technology in Indian country;
(8) funding for telecommunications and information
technology projects in Indian country remains inadequate to
address the needs of Indian communities;
(9) many Indian tribes are located on or adjacent to Indian
land in which unemployment rates exceed 50 percent;
(10) the lack of telecommunications infrastructure and low
telephone and Internet penetration rates adversely affects
the ability of Indian tribes to pursue economic development
opportunities; and
(11) primary, secondary, and postsecondary education, job
training, health care, disease prevention education, and
cultural preservation are greatly enhanced with access to and
use of telecommunications technology and electronic
information.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to promote affordable and universal access among Indian
tribal governments, tribal entities, reservation-based
schools, tribal colleges and universities, and Indian
households to telecommunications and information technology
in Indian country;
(2) to encourage and promote tribal economic development,
self-sufficiency, and strong tribal governments;
(3) to enhance the health of Indian tribal members through
the availability and use of telemedicine and telehealth;
(4) to improve the quality of kindergarten, primary,
secondary, postsecondary, and job-related training, through
enhanced and sustained information technology infrastructure;
and
(5) to assist in the retention and preservation of native
languages and cultural traditions.
SEC. 4. DEFINITIONS.
In this Act:
(1) Block grant.--The term ``block grant'' means a grant
provided under section 5.
(2) Eligible activity.--The term ``eligible activity''
means an activity carried out--
(A) to acquire or lease real property (including licensed
spectrum, water rights, dark fiber, exchanges, and other
related interests) to provide telecommunications services,
facilities, and improvements;
(B) to acquire, construct, reconstruct, or install
telecommunications facilities, sites, improvements (including
design features), or utilities;
(C) to retain any real property acquired under this Act for
tribal communications purposes;
(D) to pay the non-Federal share required by a Federal
grant program undertaken as part of activities funded under
this Act;
(E) to carry out activities necessary--
(i) to develop a comprehensive telecommunications
development plan; and
(ii) to develop a policy, planning, and management capacity
so that an eligible entity can more rationally and
effectively--
(I) determine the needs of the entity;
(II) set long term and short term goals;
(III) devise programs and activities to meet the goals of
the entity, including, if appropriate, telehealth;
(IV) evaluate the progress of the programs and activities
in meeting the goals of the entity; and
(V) carry out management, coordination, and monitoring of
activities necessary for effective planning implementation;
(F) to pay reasonable administrative costs and carrying
charges related to the planning and execution of
telecommunications development activities, including the
provision of information and resources about the planning and
execution of the activities to residents of areas in which
telecommunications development activities are to be
concentrated;
(G) to increase the capacity of an eligible entity to carry
out telecommunications activities, including the development
of telecommunications regulations and related regulatory
matters;
(H) to provide assistance to institutions of higher
education (including tribal colleges and universities) that
have a demonstrated capacity to carry out eligible
activities;
(I) to enable an eligible entity to facilitate
telecommunications development by--
(i) providing technical assistance, advice, and business
support services (including services for developing business
plans, securing funding, and conducting marketing); and
(ii) providing general support (including peer support
programs and mentoring programs) to Indian tribes in
developing telecommunications projects;
(J) to evaluate eligible activities to ascertain and
promote effective telecommunications and information
technology deployment practices and usages among Indian
tribes; or
(K) to provide research, analysis, data collection, data
organization, and dissemination of information relevant to
telecommunications and information technology in Indian
country for the purpose of promoting effective
telecommunications and information technology deployment
practices and usages among tribes.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) an Indian tribe or consortium of Indian tribes;
(B) a tribally chartered organization; or
(C) an Indian organization, intertribal organization,
tribal college or university, or a private or public
institution of higher education acting under an agreement
with an Indian tribe.
(4) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(5) Information technology.--
(A) In general.--The term ``information technology'' means
any equipment or interconnected system or subsystem of
equipment that is used in the automatic acquisition, storage,
analysis, evaluation, manipulation, management, movement,
control, display, switching, interchange, transmission, or
reception of data or information.
(B) Inclusions.--The term ``information technology''
includes computers, ancillary equipment (including imaging
peripherals, input, output, and storage devices necessary for
security and surveillance), peripheral equipment designed to
be controlled by the central processing unit of a computer,
software, firmware and similar procedures, services
(including support services), and related resources.
(6) Planning.--The term ``planning'' means community-based
planning developed in consultation with the local community
based on the needs of the local community.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(8) Technical assistance.--The term ``technical
assistance'' means the facilitation of skills and knowledge
in planning, developing, assessing, and administering
eligible activities.
(9) Training and technical assistance grant.--The term
``training and technical assistance grant'' means a grant
provided under section 6.
(10) Tribal college or university.--The term ``tribal
college or university'' has the meaning given the term
``tribally controlled college or university'' in section 2 of
the Tribally Controlled Community College Assistance Act of
1978 (25 U.S.C. 1801), except that the term includes an
institution listed in the Equity in Educational Land-Grant
Status Act of 1994 (7 U.S.C. 301 note).
(11) Telehealth.--The term ``telehealth'' means the use of
electronic information and telecommunications technologies to
support long-distance clinical health care, patient and
professional health-related education, public health, and
health administration.
SEC. 5. BLOCK GRANT PROGRAM.
(a) Establishment.--There is established within the
National Telecommunications and Information Administration a
Native American telecommunications block grant program to
provide grants on a competitive basis to eligible entities to
carry out activities under subsection (c).
(b) Block Grants.--The Secretary may provide a block grant
to an eligible entity that submits a block grant application
to the Secretary for approval.
(c) Eligible Activities.--A grant under this section may
only be used for an eligible activity.
(d) Regulations.--Not later than 180 days after the date of
enactment of this Act, the
[[Page S2152]]
Secretary shall promulgate regulations establishing specific
criteria for the competition conducted to select eligible
entities to receive grants under this section for each fiscal
year.
SEC. 6. TRAINING AND TECHNICAL ASSISTANCE GRANTS.
(a) Notification and Criteria.--The Secretary--
(1) shall provide notice of the availability of training
and technical assistance grants; and
(2) publish criteria for selecting recipients.
(b) Grants.--The Secretary may provide training and
technical assistance grants to eligible entities with a
demonstrated capacity to carry out eligible activities.
(c) Use of Funds.--A training and technical assistance
grant shall be used--
(1) to develop a training program to facilitate local use
and maintenance of new telecommunications technologies;
(2) to develop and implement--
(A) telecommunications and information technology work
study programs; and
(B) postsecondary telecommunications and information
technology-related education, development, planning, and
management programs;
(3) to develop a training program for telecommunications
employees; or
(4) to provide assistance to students who--
(A) participate in telecommunications or information
technology work study programs; and
(B) are enrolled in a full-time graduate or undergraduate
program in telecommunications-related education, development,
planning, or management.
(d) Setaside.--
(1) In general.--For each fiscal year, the Secretary shall
set aside 10 percent of the amount made available under
section 12 for training and technical assistance grants, to
remain available until expended.
(2) Treatment.--A training and technical assistance grant
to an entity shall be in addition to any block grant provided
to the entity.
(e) Provision of Technical Assistance by the Secretary.--
The Secretary may provide technical assistance, directly or
through contracts, to--
(1) eligible entities; and
(2) persons or entities that assist tribal governments.
SEC. 7. COMPLIANCE.
(a) Audit by the Comptroller General.--
(1) In general.--The Comptroller General of the United
States may audit any financial transaction involving grant
funds that is carried out by a block grant recipient or
training and technical assistance grant recipient.
(2) Scope of authority.--In conducting an audit under
paragraph (1), the Comptroller General shall have access to
all books, accounts, records, reports, files, and other
papers, things, or property belonging to or in use by the
grant recipient that relate to the financial transaction and
are necessary to facilitate the audit.
(b) Environmental Protection.--
(1) In general.--After consultation with Indian tribes, the
Secretary may promulgate regulations to carry out this
subsection that--
(A) ensure that the policies of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other laws
that further the purposes of that Act (as specified by the
regulations), are most effectively implemented in connection
with the expenditure of funds under this Act; and
(B) assure the public of undiminished protection of the
environment.
(2) Substitute measures.--Subject to paragraph (3), the
Secretary may provide for the release of funds under this Act
for eligible activities to grant recipients that assume all
of the responsibilities for environmental review,
decisionmaking, and related action under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.),
and other laws that further the purposes of that Act (as
specified by the regulations promulgated under paragraph
(1)), that would apply to the Secretary if the Secretary
carried out the eligible activities as Federal projects.
(3) Release.--
(A) In general.--The Secretary shall approve the release of
funds under paragraph (2) if, at least 15 days prior to
approval, the grant recipient submits to the Secretary a
request for release accompanied by a certification that meets
the requirements of paragraph (4).
(B) Approval.--The approval by the Secretary of a
certification shall be deemed to satisfy the responsibilities
of the Secretary under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) and the laws specified by
the regulations promulgated under paragraph (1), to the
extent that those responsibilities relate to the release of
funds for projects described in the certification.
(4) Certification.--A certification shall--
(A) be in a form acceptable to the Secretary;
(B) be executed by the tribal government;
(C) specify that the grant recipient has fully assumed the
responsibilities described in paragraph (2); and
(D) specify that the tribal officer--
(i) assumes the status of a responsible Federal official
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) and each law specified by the
regulations promulgated under paragraph (1), to the extent
that the provisions of that Act or law apply; and
(ii) is authorized to consent, and consents, on behalf of
the grant recipient and on behalf of the tribal officer to
accept the jurisdiction of the Federal courts for enforcement
of the responsibilities of the tribal officer as a
responsible Federal official.
SEC. 8. REMEDIES FOR NONCOMPLIANCE.
(a) Failure to Comply.--If the Secretary finds, on the
record after opportunity for an agency hearing, that a block
grant recipient or training and technical assistance grant
recipient has failed to comply substantially with any
provision of this Act, the Secretary, until satisfied that
there is no longer a failure to comply, shall--
(1) terminate payments to the grant recipient;
(2) reduce payments to the grant recipient by an amount
equal to the amount of payments that were not expended in
accordance with this Act;
(3) limit the availability of payments under this Act to
programs, projects, or activities not affected by the failure
to comply; or
(4) refer the matter to the Attorney General with a
recommendation that the Attorney General bring an appropriate
civil action.
(b) Action by the Attorney General.--After a referral by
the Secretary under subsection (a)(4), the Attorney General
may bring a civil action in United States district court for
appropriate relief (including mandatory relief, injunctive
relief, and recovery of the amount of the assistance provided
under this Act that was not expended in accordance with this
Act).
SEC. 9. REPORTING REQUIREMENTS.
(a) Annual Report to Congress.--Not later than 180 days
after the end of each fiscal year in which assistance under
this Act is provided, the Secretary shall submit to Congress
a report that includes--
(1) a description of the progress made in accomplishing the
objectives of this Act;
(2) a summary of the use of funds under this Act during the
preceding fiscal year; and
(3) an evaluation of the status of telephone, Internet, and
personal computer penetration rates, by type of technology,
among Indian households throughout Indian country on a tribe-
by-tribe basis.
(b) Reports to Secretary.--The Secretary may require grant
recipients under this Act to submit reports and other
information necessary for the Secretary to prepare the report
under subsection (a).
SEC. 10. CONSULTATION.
In carrying out this Act, the Secretary shall consult
with--
(1) other Federal agencies administering Federal grant
programs relating to the development of telecommunications
capacities or infrastructure; and
(2) the Government Accountability Office and Indian tribes
to determine the proportion of grant funds necessary to
address training and technical assistance and eligible
activity needs.
SEC. 11. HISTORIC PRESERVATION REQUIREMENTS.
A telecommunications project funded under this Act shall
comply with the National Historic Preservation Act (16 U.S.C.
470 et seq.) and the Native American Graves Protection and
Repatriation Act (25 U.S.C. 3001 et seq.).
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
carry out this Act--
(1) $20,000,000 for fiscal year 2006; and
(2) such sums as are necessary for each subsequent fiscal
year.
(b) Availability.--Funds made available under subsection
(a) shall remain available until expended.
______
By Mr. McCAIN:
S. 536. A bill to make technical corrections to laws relating to
Native Americans, and for other purposes; to the Committee on Indian
Affairs.
Mr. McCAIN. Mr. President, I am pleased to introduce the Native
American Omnibus Act of 2005 to amend a variety of Federal statutes
affecting Indian tribes and Indian people. This Act contains nineteen
provisions, including technical amendments to several laws, extensions
of expiring authorizations, and provisions relating to particular
Indian tribes, and certain Native American programs.
Section 101, amends the Indian finance act of 1974 to clarify that
non-profit tribal entities are eligible for the BIA Loan Guaranty
program. It also raises the limit on the amount of loans to $1.5
billion from $500 million.
Section 102 extends the authorization for the Indian Tribal Justice
Technical and Legal Assistance Act to through fiscal year 2010.
Section 103 extends the Indian Tribal Justice Act for three more
years.
Section 104 cures a problem specific to New Mexico and the 1924
Indian Pueblo Lands Act. Recently, the New Mexico State Court of
Appeals ruled that a change from Indian to non-Indian title for a
parcel of land within a Pueblo land grant area eliminated that parcel's
status as ``Indian Country.'' This ruling created a jurisdictional void
for criminal acts occurring on
[[Page S2153]]
land within the original Pueblo land grant once its' title has changed.
Consistent with existing law, this amendment clarifies that the state
maintains jurisdiction over non-Indians, the tribe has jurisdiction
over Indians and its members, and the federal government has
jurisdiction pursuant to the Major Crimes Act. This amendment does not
expand Indian civil jurisdiction and only applies to criminal
jurisdiction. I understand that it is uniformly support by all affected
parties.
Section 105, conveys approximately 1290 acres of the Lock and Dam #3
lands to the Prairie Island Tribe. The provision prohibits gaming or
structures for human habitation on the conveyed lands.
Section 106 is a technical amendment to allow binding arbitration in
all contracts and not just leases on the Gila River Indian Community
reservation.
Section 107 conveys several parcels of land in the State of
Washington to be held in trust for Puyallup Indian Tribes.
Section 108 amends Native American graves Protection and Repatriation
Act by clarifying that the term ``Native American'' refers to a member
of a tribe, a people, or a culture that is or was indigenous to the
United States.
Section 109, the amends the Fallon Paiute Shoshone Tribe's water
rights settlement act to permit the expenditure of six percent of the
average market value of the Fund over three years.
Section 110, the Washoe Tribes Lake Tahoe Access Act, corrects the
1990 settlement and includes 24.3 acres of land near Lake Tahoe for the
Tribes. The amendment does not affect the number of acres conveyed to
the Tribe in the original settlement.
Section 111 amends the Indian Arts and Crafts Act. A major source of
tribal and individual income comes from the sale of handmade Indian
arts and crafts, but millions of dollars are diverted each year from
these artists and tribes by those who reproduce and sell counterfeit
Indian goods. Enforcing the criminal law that prohibits the sale of
Indian arts and crafts misrepresented as an Indian product is often
stalled by the other responsibilities of the FBI including
investigating terrorism activity and violent crimes on Indian lands.
This amendment supplements the existing federal investigative authority
by authorizing other federal investigative bodies, such as the BIA, in
addition to the FBI, to investigate these offenses.
Section 112, the Colorado River Indian Reservation Boundary
Correction Act, corrects the south boundary of the Reservation by
reestablishing the boundary as it was delineated in the original
survey.
Section 113, reauthorizes the Native American Programs Act of 1974
and establishes the Inter-Departmental Council of Native American
Affairs.
Section 114 amends the Native Hawaiian Education Act to include
research and education activities relating to Native Hawaiian law.
Section 121 amends the Carl D. Perkins Vocational Act to include the
registration of Indian students in the Spring semester.
Section 122, the Native Nations Leadership, Management and Policy Act
of 2005 authorizes funding for leadership training, strategic and
organizational development, and research and policy analysis to assist
American Indian nations to achieve effective self-governance and
sustainable economic development. This provision renews authorized
funding for NNI's programs for a period of 10 years, beginning in
fiscal year 2007. Dedicated funding for NNI is necessary to ensure the
continuation of these important programs without further draining funds
from the Udall Foundation's other educational activities.
Section 132 authorizes the Secretary of Homeland Security, to
establish a pilot program to enhance an Indian tribe's response to
border activity. Some Indian tribes that inhabit land on or easily
accessible to the United States and Canada or Mexico, bear
extraordinary costs in responding to illegal immigration crossing and
drug smuggling and almost always divert funds intended for local
services to do so. While Federal and State law enforcement resources
may supplement tribal efforts, tribal police, fire and emergency
services provide the first and often only response because of their
access to the border. A tribe's proximity to the border and its
responsibility to the community for public safety and welfare, requires
that they respond. This program would enhance tribal first responder
capabilities, provide assistance for aerial and ground surveillance
technologies, and communication capabilities, and facilitate
coordination and cooperation with Federal, State, local and tribal
governments in protecting the border. The Secretary may establish the
selection criteria for participation in the program including the
tribes' proximity to the border and the extent to which border crossing
activity impacts existing tribal resources.
Section 201, Authorization of 99 year leases, amends Title 25 USC
Section 415 providing for leases of restricted lands by adding several
additional tribes to the list of tribes that have requested 99-year
lease authority.
Section 202, Certification of rental proceeds, amends Title 25 USC
Section 488 to permit actual rental proceeds from a lease to constitute
the rental value of that land, and to satisfy the requirement for
appraisal of that land.
Section 211, will permit the Navajo Nation's Sage Memorial Hospital
to be considered a tribal contractor under the Indian Self-
Determination Act, which will allow the hospital to obtain the benefits
of coverage under the Federal Tort Claims Act and secure VA drug
discounts.
Section 221, amends the American Indian Probate Reform Act of 2004 by
correcting provisions relating to non-testamentary disposition,
partition of highly fractionated Indian land, and Tribal probate codes.
I look forward to working with my colleagues on both sides of the
aisle to enact this important legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record as follows:
S. 536
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 ``Native
American Omnibus 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. Definition of Secretary.
TITLE I--TECHNICAL AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS
Subtitle A--General Provisions
Sec. 101. Indian Financing Act amendments.
Sec. 102. Indian tribal justice technical and legal assistance.
Sec. 103. Tribal justice systems.
Sec. 104. Indian Pueblo Land Act amendments.
Sec. 105. Prairie Island land conveyance.
Sec. 106. Binding arbitration for Gila River Indian Community
reservation contracts.
Sec. 107. Puyallup Indian Tribe land claims settlement amendments.
Sec. 108. Definition of Native American.
Sec. 109. Fallon Paiute Shoshone Tribes settlement.
Sec. 110. Washoe tribe of Nevada and California land conveyance.
Sec. 111. Indian arts and crafts.
Sec. 112. Colorado River Indian Reservation boundary correction.
Sec. 113. Native American Programs Act of 1974.
Sec. 114. Research and educational activities.
Subtitle B--Indian Education Provisions
Sec. 121. Definition of Indian student count.
Sec. 122. Native Nations leadership, management, and policy.
Subtitle C--Border Preparedness
Sec. 132. Border preparedness on Indian land.
TITLE II--OTHER AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS
Subtitle A--Indian Land Leasing
Sec. 201. Authorization of 99-year leases.
Sec. 202. Certification of rental proceeds.
Subtitle B--Navajo Health Contracting
Sec. 211. Navajo health contracting.
Subtitle C--Probate Technical Correction
Sec. 221. Probate reform.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of
the Interior.
TITLE I--TECHNICAL AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS
Subtitle A--General Provisions
SEC. 101. INDIAN FINANCING ACT AMENDMENTS.
(a) Loan Guaranties and Insurance.--Section 201 of the
Indian Financing Act of 1974 (25 U.S.C. 1481) is amended--
(1) by striking ``the Secretary is authorized (a) to
guarantee'' and inserting ``the Secretary may--
``(1) guarantee'';
(2) by striking ``members; and (b) in lieu of such
guaranty, to insure'' and inserting ``members; or
[[Page S2154]]
``(2) to insure'';
(3) by striking ``Sec. 201. In order'' and inserting the
following:
``SEC. 201. LOAN GUARANTIES AND INSURANCE.
``(a) In General.--In order''; and
(4) by adding at the end the following:
``(b) Eligible Borrowers.--The Secretary may guarantee or
insure loans under subsection (a) to both for-profit and
nonprofit borrowers.''.
(b) Loan Approval.--Section 204 of the Indian Financing Act
of 1974 (25 U.S.C. 1484) is amended by striking ``Sec. 204.''
and inserting the following:
``SEC. 204. LOAN APPROVAL.''.
(c) Sale or Assignment of Loans and Underlying Security.--
Section 205 of the Indian Financing Act of 1974 (25 U.S.C.
1485) is amended--
(1) by striking ``Sec. 205.'' and all that follows through
subsection (b) and inserting the following:
``SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDERLYING
SECURITY.
``(a) In General.--All or any portion of a loan guaranteed
or insured under this title, including the security given for
the loan--
``(1) may be transferred by the lender by sale or
assignment to any person; and
``(2) may be retransferred by the transferee.
``(b) Transfers of Loans.--With respect to a transfer
described in subsection (a)--
``(1) the transfer shall be consistent with such
regulations as the Secretary shall promulgate under
subsection (h); and
``(2) the transferee shall give notice of the transfer to
the Secretary.'';
(2) by striking subsection (c);
(3) by redesignating subsections (d), (e), (f), (g), (h),
and (i) as subsections (c), (d), (e), (f), (g), and (h),
respectively;
(4) in subsection (c) (as redesignated by paragraph (3))--
(A) by striking ``Validity.--'' and all that follows
through ``subparagraph (B),'' and inserting ``Validity.--
Except as provided by regulations in effect on the date on
which a loan is made,''; and
(B) by striking ``incontestable'' and all that follows and
inserting ``incontestable.'';
(5) in subsection (e) (as redesignated by paragraph (3))--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(B) by adding at the end the following:
``(2) Compensation of fiscal transfer agent.--A fiscal
transfer agent designated under subsection (f) may be
compensated through any of the fees assessed under this
section and any interest earned on any funds or fees
collected by the fiscal transfer agent while the funds or
fees are in the control of the fiscal transfer agent and
before the time at which the fiscal transfer agent is
contractually required to transfer such funds to the
Secretary or to transferees or other holders.''; and
(6) in subsection (f) (as redesignated by paragraph (3))--
(A) by striking ``subsection (i)'' and inserting
``subsection (h)''; and
(B) in paragraph (2)(B), by striking ``, and issuance of
acknowledgments,''.
(d) Loans Ineligible for Guaranty or Insurance.--Section
206 of the Indian Financing Act of 1974 (25 U.S.C. 1486) is
amended by inserting ``(not including an eligible Native
American owned or operated Community Development Finance
Institution)'' after ``Government''.
(e) Aggregate Loans or Surety Bonds Limitation.--Section
217(b) of the Indian Financing Act of 1974 (25 U.S.C.
1497(b)) is amended by striking ``$500,000,000'' and
inserting ``$1,500,000,000''.
SEC. 102. INDIAN TRIBAL JUSTICE TECHNICAL AND LEGAL
ASSISTANCE.
Sections 106 and 201(d) of the Indian Tribal Justice
Technical and Legal Assistance Act (25 U.S.C. 3666, 3681(d))
are amended by striking ``for fiscal years 2000 through
2004'' and inserting ``for fiscal years 2004 through 2010''.
SEC. 103. TRIBAL JUSTICE SYSTEMS.
Subsections (a), (b), (c), and (d) of section 201 of the
Indian Tribal Justice Act (25 U.S.C. 3621) are amended by
striking ``2007'' and inserting ``2010''.
SEC. 104. INDIAN PUEBLO LAND ACT AMENDMENTS.
(a) In General.--The Act of June 7, 1924 (43 Stat. 636,
chapter 331), is amended by adding at the end the following:
``SEC. 20. CRIMINAL JURISDICTION.
``(a) In General.--Except as otherwise provided by
Congress, jurisdiction over offenses committed anywhere
within the exterior boundaries of any grant from a prior
sovereign, as confirmed by Congress or the Court of Private
Land Claims to a Pueblo Indian tribe of New Mexico, shall be
as provided in this section.
``(b) Jurisdiction of the Pueblo.--The Pueblo has
jurisdiction, as an act of the Pueblos' inherent power as an
Indian tribe, over any offense committed by a member of the
Pueblo or of another Indian tribe, or by any other Indian-
owned entity.
``(c) Jurisdiction of the United States.--The United States
has jurisdiction over any offense described in chapter 53 of
title 18, United States Code, committed by or against an
Indian or any Indian-owned entity, or that involves any
Indian property or interest.
``(d) Jurisdiction of the State of New Mexico.--The State
of New Mexico shall have jurisdiction over any offense
committed by a person who is not a member of an Indian tribe,
which offense is not subject to the jurisdiction of the
United States.''.
SEC. 105. PRAIRIE ISLAND LAND CONVEYANCE.
(a) In General.--The Secretary of the Army shall convey all
right, title, and interest of the United States in and to the
land described in subsection (b), including all improvements,
cultural resources, and sites on the land, subject to the
flowage and sloughing easement described in subsection (d)
and to the conditions stated in subsection (f), to the
Secretary, to be--
(1) held in trust by the United States for the benefit of
the Prairie Island Indian Community in Minnesota; and
(2) included in the Prairie Island Indian Community
Reservation in Goodhue County, Minnesota.
(b) Land Description.--The land to be conveyed under
subsection (a) is the approximately 1290 acres of land
associated with the Lock and Dam #3 on the Mississippi River
in Goodhue County, Minnesota, located in tracts identified as
GO-251, GO-252, GO-271, GO-277, GO-278, GO-284, GO-301
through GO-313, GO-314A, GO-314B, GO-329, GO-330A, GO-330B,
GO-331A, GO-331B, GO-331C, GO-332, GO-333, GO-334, GO-335A,
GO-335B, GO-336 through GO-338, GO-339A, GO-339B, GO-339C,
GO-339D, GO-339E, GO-340A, GO-340B, GO-358, GO-359A, GO-359B,
GO-359C, GO-359D, and GO-360, as depicted on the map entitled
``United States Army Corps of Engineers survey map of the
Upper Mississippi River 9-Foot Project, Lock & Dam No. 3 (Red
Wing), Land & Flowage Rights'' and dated December 1936.
(c) Boundary Survey.--Not later than 5 years after the date
of conveyance under subsection (a), the boundaries of the
land conveyed shall be surveyed as provided in section 2115
of the Revised Statutes (25 U.S.C. 176).
(d) Easement.--
(1) In general.--The Corps of Engineers shall retain a
flowage and sloughing easement for the purpose of navigation
and purposes relating to the Lock and Dam No. 3 project over
the portion of the land described in subsection (b) that lies
below the elevation of 676.0.
(2) Inclusions.--The easement retained under paragraph (1)
includes--
(A) the perpetual right to overflow, flood, and submerge
property as the District Engineer determines to be necessary
in connection with the operation and maintenance of the
Mississippi River Navigation Project; and
(B) the continuing right to clear and remove any brush,
debris, or natural obstructions that, in the opinion of the
District Engineer, may be detrimental to the project.
(e) Ownership of Sturgeon Lake Bed Unaffected.--Nothing in
this section diminishes or otherwise affects the title of the
State of Minnesota to the bed of Sturgeon Lake located within
the tracts of land described in subsection (b).
(f) Conditions.--The conveyance under subsection (a) is
subject to the conditions that the Prairie Island Indian
Community shall not--
(1) use the conveyed land for human habitation;
(2) construct any structure on the land without the written
approval of the District Engineer; or
(3) conduct gaming (within the meaning of section 4 of the
Indian Gaming Regulatory Act (25 U.S.C. 2703)) on the land.
(g) No Effect on Eligibility for Certain Projects.--
Notwithstanding the conveyance under subsection (a), the land
shall continue to be eligible for environmental management
planning and other recreational or natural resource
development projects on the same basis as before the
conveyance.
(h) Effect of Section.--Nothing in this section diminishes
or otherwise affects the rights granted to the United States
pursuant to letters of July 23, 1937, and November 20, 1937,
from the Secretary to the Secretary of War and the letters of
the Secretary of War in response to the Secretary dated
August 18, 1937, and November 27, 1937, under which the
Secretary granted certain rights to the Corps of Engineers to
overflow the portions of Tracts A, B, and C that lie within
the Mississippi River 9-Foot Channel Project boundary and as
more particularly shown and depicted on the map entitled
``United States Army Corps of Engineers survey map of the
Upper Mississippi River 9-Foot Project, Lock & Dam No. 3 (Red
Wing), Land & Flowage Rights'' and dated December 1936.
SEC. 106. BINDING ARBITRATION FOR GILA RIVER INDIAN COMMUNITY
RESERVATION CONTRACTS.
(a) Amendments.--Subsection (f) of the first section of the
Act of August 9, 1955 (25 U.S.C. 415(f)), is amended--
(1) in the first sentence--
(A) by striking ``Any lease'' and all that follows through
``affecting land'' and inserting ``Any contract, including a
lease, affecting land''; and
(B) by striking ``such lease or contract'' and inserting
``such contract''; and
(2) in the second sentence, by striking ``such leases or
contracts entered into pursuant to such Acts'' and inserting
``Such contracts''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect as if included in the Act of August 9, 1955
(69 Stat. 539, chapter 615) and Public 107-159 (116 Stat.
122).
SEC. 107. PUYALLUP INDIAN TRIBE LAND CLAIMS SETTLEMENT
AMENDMENTS.
(a) In General.--The Secretary shall--
[[Page S2155]]
(1) accept the conveyance of the parcels of land within the
Puyallup Reservation described in subsection (b); and
(2) hold the land in trust for the benefit of the Puyallup
Indian Tribe.
(b) Land Description.--The parcels of land referred to in
subsection (a) are as follows:
(1) Parcel a.--Lot B, boundary line adjustment 9508150496:
according to the map thereof recorded August 15, 1995,
records of Pierce County Auditor, situate in the city of
Fife, county of Pierce, State of Washington.
(2) Parcel b.--Lots 3 and 4, Pierce County Short Plat No.
8908020412: according to the map thereof recorded August 2,
1989, records of Pierce County Auditor, together with portion
of SR 5 abutting lot 4, conveyed by deed recorded under
recording number 9309070433, described as follows:
That portion of Government lot 1, sec. 07, T. 20 N., R. 4
E., of the Willamette Meridian, described as commencing at
Highway Engineer's Station (hereinafter referred to as HES)
AL 26 6+38.0 P.O.T. on the AL26 line survey of SR 5, Tacoma
to King County line: Thence S88 deg.54'30" E., along the
north line of said lot 1 a distance of 95 feet to the true
point of beginning: Thence S01 deg.05'30" W87.4' feet: Thence
westerly to a point opposite HES AL26 5+50.6 P.O.T. on said
AL26 line survey and 75 feet easterly therefrom; Thence
northwesterly to a point opposite AL26 5+80.6 on said AL26
line survey and 55 feet easterly therefrom: Thence northerly
parallel with said line survey to the north line of said lot
1: Thence N88 deg.54'30" E., to the true point of beginning.
Except that portion of lot 4 conveyed to the State of
Washington by deed recorded under recording number 9308100165
and more particularly described as follows:
Commencing at the northeast corner of said lot 4: Thence
N89 deg.53'30" W., along the north line of said lot 4 a
distance of 147.44 feet to the true point of beginning and a
point of curvature; thence southwesterly along a curve to the
left, the center of which bears S0 deg.06'30" W., 55.00 feet
distance, through a central angle of 89 deg.01'00", an arc
distance of 85.45 feet; Thence S01 deg.05'30" W., 59.43 feet;
Thence N88 deg.54'30" W., 20.00 feet to a point on the
westerly line of said lot 4; Thence N0 deg.57'10" E., along
said westerly line 113.15 feet to the northwest corner of
said lot 4; Thence S89 deg.53'30" east along said north line,
a distance of 74.34 feet to the true point of beginning.
Chicago Title Insurance Company Order No. 4293514 Lot A
boundary line adjustment recorded under Recording No.
9508150496. According to the map thereof recorded August 15,
1995, records of Pierce County Auditor.
Situate in the city of Fife, county of Pierce, State of
Washington.
(3) Additional lots.--Any lots acquired by the Tribe
located in block 7846, 7850, 7945, 7946, 7949, 7950, 8045, or
8049 in the Indian Addition to the city of Tacoma, State of
Washington.
SEC. 108. DEFINITION OF NATIVE AMERICAN.
Section 2(9) of the Native American Graves Protection and
Repatriation Act (25 U.S.C. 3001(9)) is amended--
(1) by inserting ``or was'' after ``is''; and
(2) by inserting after ``indigenous to'' the following:
``any geographic area that is now located within the
boundaries of''.
SEC. 109. FALLON PAIUTE SHOSHONE TRIBES SETTLEMENT.
(a) Settlement Fund.--Section 102 of the Fallon Paiute
Shoshone Indian Tribes Water Rights Settlement Act of 1990
(104 Stat. 3289) is amended--
(1) in subsection (C)--
(A) in paragraph (1)--
(i) by striking ``The income of the Fund may be obligated
and expended only for the following purposes:'' and inserting
the following: ``Notwithstanding any conflicting provision in
the original Fund plan during Fund fiscal year 2004 and
during each subsequent Fund fiscal year, 6 percent of the
average quarterly market value of the Fund during the
immediately preceding 3 Fund fiscal years (referred to in
this title as the `Annual 6 percent Amount'), plus any
unexpended and unobligated portion of the Annual 6 percent
Amount from any of the 3 immediately preceding Fund fiscal
years that are subsequent to Fund fiscal year 2003, less any
negative income that may accrue on that portion, may be
expended or obligated only for the following purposes:''; and
(ii) by adding at the end the following:
``(g) Fees and expenses incurred in connection with the
investment of the Fund, for investment management, investment
consulting, custodianship, and other transactional services
or matters.''; and
(B) by striking paragraph (4) and inserting the following:
``(4) No monies from the Fund other than the amounts
authorized under paragraphs (1) and (3) may be expended or
obligated for any purpose.
``(5) Notwithstanding any conflicting provision in the
original Fund plan, during Fund fiscal year 2004 and during
each subsequent Fund fiscal year, not more than 20 percent of
the Annual 6 percent Amount for the Fund fiscal year
(referred to in this title as the `Annual 1.2 percent
Amount') may be expended or obligated under paragraph (1)(c)
for per capita distributions to tribal members, except that
during each Fund fiscal year subsequent to Fund fiscal year
2004, any unexpended and unobligated portion of the Annual
1.2 percent Amount from any of the 3 immediately preceding
Fund fiscal years that are subsequent to Fund fiscal year
2003, less any negative income that may accrue on that
portion, may also be expended or obligated for such per
capita payments.''; and
(2) in subsection (D), by adding at the end the following:
``Notwithstanding any conflicting provision in the original
Fund plan, the Fallon Business Council, in consultation with
the Secretary, shall promptly amend the original Fund plan
for purposes of conforming the Fund plan to this title and
making nonsubstantive updates, improvements, or corrections
to the original Fund plan.''.
(b) Definitions.--Section 107 of the Fallon Paiute Shoshone
Indian Tribes Water Rights Settlement Act of 1990 (104 Stat.
3293) is amended--
(1) by redesignating subsections (D), (E), (F), and (G) as
subsections (F), (G), (H), and (I), respectively; and
(2) by striking subsections (B) and (C) and inserting the
following:
``(B) the term `Fund fiscal year' means a fiscal year of
the Fund (as defined in the Fund plan);
``(C) the term `Fund plan' means the plan established under
section 102(F), including the original Fund plan (the `Plan
for Investment, Management, Administration and Expenditure
dated December 20, 1991') and all amendments of the Fund plan
under subsection (D) or (F)(1) of section 102;
``(D) the term `income' means the total net return from the
investment of the Fund, consisting of all interest,
dividends, realized and unrealized gains and losses, and
other earnings, less all related fees and expenses incurred
for investment management, investment consulting,
custodianship and transactional services or matters;
``(E) the term `principal' means the total amount
appropriated to the Fallon Paiute Shoshone Tribal Settlement
Fund under section 102(B);''.
SEC. 110. WASHOE TRIBE OF NEVADA AND CALIFORNIA LAND
CONVEYANCE.
Section 2 of Public Law 108-67 (117 Stat. 880) is amended
by striking ``the parcel'' and all that follows and inserting
``a portion of Lots 3 and 4, as shown on the United States
and Encumbrance Map revised January 10, 1991, for the Toiyabe
National Forest, Ranger District Carson -1, located in the
S\1/2\ of NW\1/4\ and N\1/2\ of SW\1/4\ of the SE\1/4\ of
sec. 27, T. 15N, R. 18E, Mt. Diablo Base and Meridian,
comprising 24.3 acres.''.
SEC. 111. INDIAN ARTS AND CRAFTS.
(a) Criminal Proceedings; Civil Actions;
Misrepresentations.--Section 5 of the Indian Arts and Crafts
Act of 1990 (25 U.S.C. 305d) is amended to read as follows:
``SEC. 5. CRIMINAL PROCEEDINGS; CIVIL ACTIONS.
``(a) Definition of Federal Law Enforcement Officer.--In
this section, the term `Federal law enforcement officer' has
the meaning given the term in section 115(c) of title 18,
United States Code.
``(b) Criminal Proceedings.--
``(1) Referral.--On receiving a complaint of a violation of
section 1159 of title 18, United States Code, the Board may
refer the complaint to any Federal law enforcement officer
for appropriate investigation.
``(2) Findings.--The findings of an investigation under
paragraph (1) shall be submitted to--
``(A) the Attorney General; and
``(B) the Board.
``(3) Recommendations.--On receiving the findings of an
investigation in accordance with paragraph (2), the Board
may--
``(A) recommend to the Attorney General that criminal
proceedings be initiated under section 1159 of that title;
and
``(B) provide such support to the Attorney General relating
to the criminal proceedings as the Attorney General
determines appropriate.
``(c) Civil actions.--In lieu of, or in addition to, any
criminal proceeding under subsection (a), the Board may
recommend that the Attorney General initiate a civil action
pursuant to section 6.''.
(b) Section 6 of the Indian Arts and Crafts Act of 1990 (25
U.S.C. 305e) is amended--
(1) by striking subsection (d);
(2) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(3) by inserting before subsection (b) (as redesignated by
paragraph (2)) the following:
``(a) Definitions.--In this section:
``(1) Indian.--The term `Indian' means an individual that--
``(A) is a member of an Indian tribe; or
``(B) is certified as an Indian artisan by an Indian tribe.
``(2) Indian product.--The term `Indian product' has the
meaning given the term in any regulation promulgated by the
Secretary.
``(3) Indian tribe.--
``(A) In general.--The term `Indian tribe' has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
``(B) Inclusion.--The term `Indian tribe' includes an
Indian group that has been formally recognized as an Indian
tribe by--
``(i) a State legislature;
``(ii) a State commission; or
``(iii) another similar organization vested with State
legislative tribal recognition authority.
``(4) Secretary.--The term `Secretary' means the Secretary
of the Interior.'';
(4) in subsection (c) (as redesignated by paragraph (2))--
(A) by striking ``of this section''; and
(B) by striking ``suit'' and inserting ``the civil
action'';
[[Page S2156]]
(5) by striking subsection (d) (as redesignated by
paragraph (2)) and inserting the following:
``(d) Persons That May Initiate Civil Actions.--
``(1) In general.--A civil action under subsection (b) may
be initiated by--
``(A) the Attorney General, at the request of the Secretary
acting on behalf of--
``(i) an Indian tribe;
``(ii) an Indian; or
``(iii) an Indian arts and crafts organization;
``(B) an Indian tribe, acting on behalf of--
``(i) the tribe;
``(ii) a member of that tribe; or
``(iii) an Indian arts and crafts organization;
``(C) an Indian; or
``(D) an Indian arts and crafts organizaion.
``(2) Disposition of amounts recovered.--
``(A) In general.--Except as provided in subparagraph (B),
an amount recovered in a civil action under this section
shall be paid to the Indian tribe, the Indian, or the Indian
arts and crafts organization on the behalf of which the civil
action was initiated.
``(B) Exceptions.--
``(i) Attorney general.--In the case of a civil action
initiated under paragraph (1)(A), the Attorney General may
deduct from the amount--
``(I) the amount of the cost of the civil action and
reasonable attorney's fees awarded under subsection (c), to
be deposited in the Treasury and credited to appropriations
available to the Attorney General on the date on which the
amount is recovered; and
``(II) the amount of the costs of investigation awarded
under subsection (c), to reimburse the Board for the
activities of the Board relating to the civil action.
``(ii) Indian tribe.--In the case of a civil action
intitated under paragraph (1)(B), the Indian tribe may deduct
from the amount--
``(I) the amount of the cost of the civil action; and
``(II) reasonable attorney's fees.'';
(6) in subsection (e), by striking ``(e) In the event
that'' and inserting the following:
``(e) Savings Provision.--If''; and
(7) by striking subsection (f) and inserting the following:
``(f) Regulations.--Not later than 180 days after the date
of enactment of the Native American Omnibus Act of 2005, the
Board shall promulgate regulations to include in the
definition of the term `Indian product' examples of each
Indian product to provide guidance and notice to Indian
artisans, suppliers of the artisans, and consumers of Indian
arts and crafts.''.
(c) Conforming Amendment.--Section 1159(c) of title 18,
United States Code, is amended by striking paragraph (3) and
inserting the following:
``(3) the term `Indian tribe'--
``(A) has the meaning given the term in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b); and
``(B) includes an Indian group that has been formally
recognized as an Indian tribe by--
``(i) a State legislature;
``(ii) a State commission; or
``(iii) another similar organization vested with State
legislative tribal recognition authority; and''.
SEC. 112. COLORADO RIVER INDIAN RESERVATION BOUNDARY
CORRECTION.
(a) Findings.--Congress finds that--
(1) the Act of March 3, 1865, created the Colorado River
Indian Reservation along the Colorado River in Arizona and
California for the ``Indians of said river and its
tributaries'';
(2) in 1873 and 1874, President Grant issued Executive
orders to expand the Reservation southward and to secure the
southern boundary of the Reservation at a clearly
recognizable geographic location in order to forestall
encroachment by non-Indians and conflicts with the Indians of
the Reservation;
(3) in 1875, Chandler Robbins conducted the Robbins Survey,
delineating the new southern boundary of the Reservation,
which included the La Paz land as part of the Reservation;
(4) on May 15, 1876, President Grant issued an Executive
order establishing the boundaries of the Reservation as the
boundaries delineated by the Robbins Survey;
(5) in 1907, as a result of increasingly frequent
trespasses by miners and cattle and at the request of the
Bureau of Indian Affairs, the General Land Office provided
for a resurvey of the southern and southeastern areas of the
Reservation;
(6) in 1914, the General Land Office accepted and approved
the Harrington Survey, which confirmed the boundaries that
were delineated by the Robbins Survey and established by
Executive order in 1876;
(7) on November 19, 1915, the Secretary of the Interior
reversed the decision of the General Land Office to accept
the Harrington Survey, and, on the recommendation of the
Secretary on November 22, 1915, President Wilson issued
Executive Order 2273 to correct the error in location of the
southern boundary line of the Reservation, effectively
excluding the La Paz land from the Reservation;
(8) historical evidence compiled by the Department of the
Interior supports the conclusion that--
(A) the recommendation of the Secretary in 1915 that the
President issue an Executive order to correct an error in
locating the southern boundary was in error; and
(B) the La Paz land should not have been excluded from the
Reservation; and
(9) the La Paz land continues to hold cultural and
historical significance, as well as economic development
potential, for the Tribe, which has consistently sought to
have the La Paz land restored to the Reservation.
(b) Purposes.--The purposes of this section are--
(1) to correct the south boundary of the Reservation by
reestablishing the boundary as the boundary was delineated by
the Robbins Survey and affirmed by the Harrington Survey;
(2) to restore the La Paz land to the Reservation, subject
to Federal law;
(3) to provide for continued public access to the La Paz
land for recreational purposes; and
(4) to require the Secretary to ensure that the Reservation
boundary, as corrected by this section, is resurveyed and
marked in accordance with the public system of surveys
extended over the land.
(c) Definitions.--In this section:
(1) Harrington survey.--The term ``Harrington Survey''
means the survey of the Reservation conducted by Guy
Harrington in 1912.
(2) La Paz land.--The term ``La Paz land'' means the
approximately 16,000 acres attributed to the Reservation by
the Robbins Survey.
(3) Map.--The term ``Map'' means the map prepared by the
Secretary, acting through the Bureau of Land Management,
entitled ``Colorado River Indian Reservation Boundary
Correction'' and dated January 4, 2005.
(4) Reservation.--The term ``Reservation'' means the
Colorado River Indian Reservation.
(5) Robbins Survey.--The term ``Robbins Survey'' means the
survey of the Reservation conducted by Chandler Robbins in
1875.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(7) Tribe.--The term ``Tribe'' includes any tribe a member
of which resides on the Reservation.
(d) Boundary correction.--
(1) In general.--The boundaries of the Reservation shall
include the boundaries that were delineated by the Robbins
Survey, affirmed by the Harrington Survey, including the
approximately 15,375 acres of Federal land described as
``Land Identified for Transfer to Colorado River Indian
Tribes'' on the Map.
(2) Review.--The Map shall be available for review at the
Bureau of Land Management.
(3) Resurvey and Marking.--The Secretary shall ensure that
the boundary described in paragraph (1) is surveyed and
clearly marked in accordance with the public system of
surveys extended over the land.
(e) Restoration of Rights, Title, and Interest.--
(1) In general.--Subject to paragraph (2) and other
provisions of Federal law, all right, title, and interest of
the United States to the land in the boundaries described in
subsection (d)(1) that were excluded from the Reservation
pursuant to Executive Order 2273 (relating to the southern
boundary line of the Reservation)--
(A) are restored to the Reservation; and
(B) shall be held in trust by the United States on behalf
of the Tribe.
(2) Exclusions.--
(A) State land.--The 2 parcels of land belonging to the
State of Arizona (totaling 320 acres and 520 acres,
respectively) that are identified on the Map as ``State
Land'' shall be excluded from the land described in paragraph
(1).
(B) Water Rights.--The land described in subsection (d)(1)
shall not include any Federal reserve water right to surface
water or ground water from any source.
(C) Public Access.--The public shall have continued access
to the land described in subsection (d)(1) for hunting and
other recreational purposes in existence on the date of
enactment of this Act, in accordance with any rule or
regulation promulgated by the Tribe.
(D) Economic Activity.--
(i) In General.--The land described in subsection (d)(1)
shall be subject to any right-of-way, easement, lease, or
mining claim in existence on the date of enactment of this
Act.
(ii) Reclamation projects.--The United States reserves the
right to continue any reclamation project relating to the
land described in subsection (d)(1) in existence on the date
of enactment of this Act, including the right to access and
remove mineral materials for maintenance of the Colorado
River.
(iii) Additional Rights-of-Way.--Notwithstanding any other
provision of law, the Secretary, in consultation with the
Tribe, shall grant any additional right-of-way (including an
expansion or renewal of an existing right-of-way) for a road,
utility, or another accommodation to an adjoining landowner
or holder of a right-of-way (or their successors and assigns)
if the Secretary determines that--
(I) the proposed right-of-way is necessary to the
applicant;
(II) the acquisition of the proposed right-of-way will not
cause significant harm to the Tribe; and
(III) the proposed right-of-way--
(aa) complies with part 169 of title 25, Code of Federal
Regulations; and
(bb) is consistent with this subsection and other generally
applicable Federal laws unrelated to the acquisition of
interests on trust land.
[[Page S2157]]
(iv) Exception for roads and utilities.--Section 169.3 of
title 25, Code of Federal Regulations, shall not apply to the
expansion or renewal of a right-of-way in existence on the
date of enactment of this Act for a road or utility.
(v) Fees.--If the holder of a lease, easement, or right-of-
way substantially complies with all terms of the lease,
easement, or right-of-way, the fees charged for the renewal
of the lease, easement, or right-of-way under this section
shall be not greater than the applicable Federal rate for
such a lease, easement, or right-of-way at the time of the
renewal.
(e) Gaming.--Land taken into trust under this section shall
not--
(1) be considered to have been taken into trust for gaming;
or
(2) be used for gaming (as that term is used in the Indian
Gaming Regulatory Act (25 U.S.C. 2701 et seq.)).
SEC. 113. NATIVE AMERICAN PROGRAMS ACT OF 1974.
(a) Intra-Departmental Council on Native American
Affairs.--Section 803B(d)(1) of the Native American Programs
Act of 1974 (42 U.S.C. 2991b-2(d)(1)) is amended by striking
``There'' and all that follows and inserting the following:
``There is established in the Office of the Secretary the
Intra-Departmental Council on Native American Affairs. The
Commissioner and the Director of the Indian Health Service
shall serve as co-chairpersons of the Council. The co-
chairpersons shall advise the Secretary on all matters
affecting Native Americans that involve the Department.''.
(b) Authorization of Appropriations.--Section 816 of the
Native American Programs Act of 1974 (42 U.S.C. 2992d) is
amended--
(1) by striking subsections (a) through (c) and inserting
the following:
``(a) In General.--There are authorized to be
appropriated--
``(1) to carry out section 803(d), $8,000,000 for each of
fiscal years 2006 through 2010; and
``(2) to carry out provisions of this title other than
section 803(d) and any other provision having an express
authorization of appropriations, such sums as are necessary
for each of fiscal years 2006 through 2010.
``(b) Limitation.--Not less than 90 percent of the funds
made available to carry out this title for a fiscal year
(other than funds made available to carry out sections
803(d), 803A, 803C, and 804, and any other provision of this
title having an express authorization of appropriations)
shall be expended to carry out section 803(a).'';
(2) by redesignating subsection (d) as subsection (c); and
(3) by striking subsection (e).
(c) Reports.--Section 811A of the Native American Programs
Act of 1974 (42 U.S.C. 2992-1) is amended--
(1) by striking the section heading and all that follows
through ``each year,'' and inserting the following:
``SEC. 811A. REPORTS.
``Every 5 years, the Secretary shall''; and
(2) by striking ``an annual report'' and inserting ``a
report''.
SEC. 114. RESEARCH AND EDUCATIONAL ACTIVITIES.
Section 7205(a)(3) of the Native Hawaiian Education Act (20
U.S.C. 7515(a)(3)) is amended--
(1) by redesignating subparagraphs (K) and (L) as
subparagraphs (L) and (M), respectively; and
(2) by inserting after subparagraph (J) the following:
``(K) research and educational activities relating to
Native Hawaiian law;''.
Subtitle B--Indian Education Provisions
SEC. 121. DEFINITION OF INDIAN STUDENT COUNT.
Section 117(h) of the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2327(h)) is
amended by striking paragraph (2) and inserting the
following:
``(2) Indian student count.--
``(A) In general.--The term `Indian student count' means a
number equal to the total number of Indian students enrolled
in each tribally-controlled postsecondary vocational and
technical institution, as determined in accordance with
subparagraph (B).
``(B) Determination.--
``(i) Enrollment.--For each academic year, the Indian
student count shall be determined on the basis of the
enrollments of Indian students as in effect at the conclusion
of--
``(I) in the case of the fall term, the third week of the
fall term; and
``(II) in the case of the spring term, the third week of
the spring term.
``(ii) Calculation.--For each academic year, the Indian
student count for a tribally-controlled postsecondary
vocational and technical institution shall be the quotient
obtained by dividing--
``(I) the sum of the credit-hours of all Indian students
enrolled in the tribally-controlled postsecondary vocational
and technical institution (as determined under clause (i));
divided by
``(II) 12.
``(iii) Summer term.--Any credit earned in a class offered
during a summer term shall be counted in the determination of
the Indian student count for the succeeding fall term.
``(iv) Students without secondary school degrees.--
``(I) In general.--A credit earned at a tribally-controlled
postsecondary vocational and technical institution by any
Indian student that has not obtained a secondary school
degree (or the recognized equivalent of such a degree) shall
be counted toward the determination of the Indian student
count if the institution at which the student is enrolled has
established criteria for the admission of the student on the
basis of the ability of the student to benefit from the
education or training of the institution.
``(II) Presumption.--The institution shall be presumed to
have established the criteria described in subclause (I) if
the admission procedures for the institution include
counseling or testing that measures the aptitude of a student
to successfully complete a course in which the student is
enrolled.
``(III) Credits toward secondary school degree.--No credit
earned by an Indian student for the purpose of obtaining a
secondary school degree (or the recognized equivalent of such
a degree) shall be counted toward the determination of the
Indian student count under this clause.
``(v) Continuing education programs.--Any credit earned by
an Indian student in a continuing education program of a
tribally-controlled postsecondary vocational and technical
institution shall be included in the determination of the sum
of all credit hours of the student if the credit is converted
to a credit-hour basis in accordance with the system of the
institution for providing credit for participation in the
program.''.
SEC. 122. NATIVE NATIONS LEADERSHIP, MANAGEMENT, AND POLICY.
(a) Findings.--Congress finds that--
(1) the policy of the United States favors self-
determination for Indian tribes;
(2) consistent with the policy described in paragraph (1),
Indian tribes are increasingly taking control of the affairs
of the tribes in order to realize in practice most of the
status afforded the tribes in treaties, court decisions, and
legislation;
(3) as a result of the increasing control of the tribes,
tribes require enhanced leadership preparation and greater
access to information relating to research and analysis of
successful models for tribal government and business
operations, similar to the information regularly available to
Federal, State, and local government agencies;
(4) enabling Indian tribes to develop strong leadership and
governing policy is consistent with Federal policy supporting
tribal self-determination and increases the likelihood that
tribal governments will achieve political and economic self-
determination; and
(5) during the last 5 years, the Morris K. Udall
Scholarship and Excellence in National Environmental Policy
Foundation, in cooperation with the Native Nations Institute
at the University of Arizona, pursuant to section 6(7) of the
Morris K. Udall Scholarship and Excellence in National
Environmental and Native American Public Policy Act of 1992
(20 U.S.C. 5604(7)), has provided to Indian tribes the
leadership and management training, policy analysis, and
research of the quality and type required to assist Indian
tribes to achieve self-determination.
(b) Definitions.--Section 4 of the Morris K. Udall
Scholarship and Excellence in National Environmental and
Native American Public Policy Act of 1992 (20 U.S.C. 5602) is
amended--
(1) by redesignating paragraphs (6) through (9) as
paragraphs (7) through (10), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) the terms `Indian tribe' and `tribe' have the meaning
given the term `Indian tribe' in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b);''.
(c) Authority of Foundation.--Section 7(a)(1) of the Morris
K. Udall Scholarship and Excellence in National Environmental
and Native American Public Policy Act of 1992 (20 U.S.C.
5605(a)(1)) is amended by striking subparagraph (C) and
inserting the following:
``(C) Fields of study.--
``(i) In general.--The Foundation may award scholarships,
fellowships, internships, and grants to eligible individuals
in accordance with this Act for study in fields relating to
the environment and Native American and Alaska Native health
care and tribal public policy.
``(ii) Minimum criteria.--A scholarship, fellowship,
internship, or grant awarded under this section shall be
awarded to an eligible individual that meets the minimum
criteria established by the Foundation.
``(iii) State-recognized tribes, bands, nations, and
groups.--Notwithstanding the definition of `Indian tribe'
under section 4, the Foundation may make an award under this
section to an individual that is a member of a Native
American tribe, band, nation, or other organized group or
community that is recognized by a State.''.
(d) Authorization of Appropriations.--Section 13 of the
Morris K. Udall Scholarship and Excellence in National
Environmental and Native American Public Policy Act of 1992
(20 U.S.C. 5609) is amended by striking subsection (c) and
inserting the following:
``(c) Training in Tribal Leadership, Management, and
Policy.--
``(1) In general.--There is authorized to be appropriated
to carry out section 6(7)--
``(A) $2,500,000 for each of fiscal years 2007 and 2008;
``(B) $4,000,000 for each of fiscal years 2009 and 2010;
and
``(C) $13,500,000 for each of fiscal years 2011 through
2016.
[[Page S2158]]
``(2) Limitations.--An appropriation made pursuant to this
subsection shall not be subject to section 7(c).''.
Subtitle C--Border Preparedness
SEC. 132. BORDER PREPAREDNESS ON INDIAN LAND.
Subtitle D of title IV of the Homeland Security Act of 2002
(6 U.S.C. 251 et seq.) is amended by adding at the end the
following:
``SEC. 447. BORDER PREPAREDNESS PILOT PROGRAM ON INDIAN LAND.
``(a) Definitions.--In this section:
``(1) Indian land.--The term `Indian land' means--
``(A) all land within the boundaries of any Indian
reservation; and
``(B) any land the title to which is--
``(i) held in trust by the United States for the benefit of
an Indian tribe or individual; or
``(ii) held by any Indian tribe or individual--
``(I) subject to a restriction by the United States against
alienation; and
``(II) over which an Indian tribe exercises governmental
authority.
``(2) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community that is recognized by the Secretary as--
``(A) eligible for the special programs and services
provided by the United States to Indians because of their
status as Indians; and
``(B) possessing powers of self-government.
``(3) Tribal government.--The term `tribal government'
means the governing body of an Indian tribe.
``(b) Purpose.--The purpose of this section is to require
the Secretary, acting through the Under Secretary for Border
and Transportation Security, to establish a pilot program for
tribal governments on Indian land located on or near the
border of the United States with Canada or Mexico in order
to--
``(1) facilitate the coordination of the response of an
Indian tribe to a threat to the security of an international
border of the United States with the responses of Federal,
State, and local governments;
``(2) enhance the capability of an Indian tribe as a first
responder to an illegal crossing of an immigrant over an
international border of the United States; and
``(3) provide assistance to Indian tribes in the use by the
tribes of effective aerial and ground surveillance
technologies, integrated communication systems and equipment,
and personnel training.
``(c) Pilot Program.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, acting through
the Undersecretary for Border and Transportation Security,
shall provide funds and other assistance to tribal
governments in accordance with the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450 et seq.).
``(2) Use of funds and assistance.--
``(A) In general.--A tribal government shall use any funds
or assistance provided under paragraph (1) consistent with
the purposes of this section.
``(B) Administration by tribal governments.--A tribal
government that receives any funds or assistance under
paragraph (1) shall administer the funds or assistance in
accordance with the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.).
``(3) Selection criteria.--In selecting a tribal government
to receive funds or assistance under paragraph (1), the
Secretary may take into consideration--
``(A) the distance between the Indian land in the
jurisdiction of the tribal government and an international
border of the United States;
``(B) the extent to which a border enforcement effort
effects the resources of the Indian tribe; and
``(C) the interests of the Indian tribe.
``(d) Reports.--
``(1) Tribal governments.--
``(A) In general.--Not later than 1 year after receiving
funds or assistance under subsection (c), a tribal government
shall submit to the Secretary a report in such a manner and
containing such information as the Secretary may require.
``(B) Inclusion.--A report under subparagraph (A) shall
include a description of--
``(i) any funds or assistance received by the tribal
government under this section;
``(ii) the use of the funds or assistance by the tribal
government; and
``(iii) any obstacle encountered by the tribal government
in administering the funds or assistance.
``(2) Secretary.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Congress
a report describing--
``(A) the information contained in the reports under
paragraph (1);
``(B) the degree of success of the Secretary in
implementing the pilot program; and
``(C) any recommendation, including a legislative
recommendation, of the Secretary relating to the pilot
program.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2006 through
2008.''.
TITLE II--OTHER AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS
Subtitle A--Indian Land Leasing
SEC. 201. AUTHORIZATION OF 99-YEAR LEASES.
(a) In General.--Subsection (a) of the first section of the
Act of August 9, 1955 (25 U.S.C. 415(a)), is amended in the
second sentence--
(1) by striking ``Moapa Indian reservation'' and inserting
``Moapa Indian Reservation,'';
(2) by inserting ``the reservation of the Confederated
Tribes of the Umatilla Indian Reservation,'' before ``the
Burns Paiute Reservation,'';
(3) by inserting ``the'' before ``Yavapai-Prescott'';
(4) by inserting ``the Muckleshoot Indian Reservation and
land held in trust for the Muckleshoot Indian Tribe,'' after
``the Cabazon Indian reservation,'';
(5) by striking ``Washington,,'' and inserting
``Washington,'';
(6) by inserting ``land held in trust for the Prairie Band
Potawatomi Nation,'' before ``land held in trust for the
Cherokee Nation of Oklahoma'';
(7) by inserting ``land held in trust for the Fallon Paiute
Shoshone Tribes,'' before ``land held in trust for the Pueblo
of Santa Clara''; and
(8) by inserting ``land held in trust for the Yurok Tribe,
land held in trust for the Hopland Band of Pomo Indians of
the Hopland Rancheria,'' after ``Pueblo of Santa Clara,''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to any lease entered into or renewed after the
date of enactment of this Act.
SEC. 202. CERTIFICATION OF RENTAL PROCEEDS.
Notwithstanding any other provision of law, any actual
rental proceeds from the lease of land acquired under section
1 of Public Law 91-229 (25 U.S.C. 488) certified by the
Secretary of the Interior shall be deemed--
(1) to constitute the rental value of that land; and
(2) to satisfy the requirement for appraisal of that land.
Subtitle B--Navajo Health Contracting
SEC. 211. NAVAJO HEALTH CONTRACTING.
The Navajo Health Foundation/Sage Memorial Hospital in
Ganado, Arizona, shall be considered to be a tribal
contractor under the Indian Self-Determination and Education
Assistance Act for the purposes of section 102(d) and
subsections (k) and (o) of section 105 of that Act (25 U.S.C.
450f(d), 450j) provided that the Hospital remains the
authorized tribal organization (as defined in section 4 of
that Act (25 U.S.C. 450b)) of the Navajo Nation.
Subtitle C--Probate Technical Correction
SEC. 221. PROBATE REFORM.
(a) Nontestamentary Disposition.--Subsection
(a)(2)(D)(iv)(I)(aa) of section 207 of the Indian Land
Consolidation Act (25 U.S.C. 2206) (as amended by section
3(a) of the American Indian Probate Reform Act of 2004
(Public Law 108-374)) is amended--
(1) by striking ``clause (iii)'' and inserting ``this
subparagraph''; and
(2) in subitem (BB), by striking ``any co-owner'' and
inserting ``not more than 1 co-owner''.
(b) Applicable Federal Law.--Subsection (h)(2) of section
207 of the Indian Land Consolidation Act (25 U.S.C. 2206) (as
amended by section 3(d) of the American Indian Probate Reform
Act of 2004 (Public Law 108-374)) is amended--
(1) by inserting ``specifically'' after ``pertains''; and
(2) in subparagraph (B), by striking ``allotted lands'' and
inserting ``trust or restricted allotments''.
(c) Partition of Highly Fractionated Indian Land.--
Subsection (d) of section 205 of the Indian Land
Consolidation Act (25 U.S.C. 2204) (as amended by section 4
of the American Indian Probate Reform Act of 2004 (Public Law
108-374)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (G)(ii)(I), by striking ``a higher
value of the land'' and inserting ``a value of the land that
is equal to or greater than that of the earlier appraisal'';
and
(B) in subparagraph (I)(iii)--
(i) in subclause (III), by inserting ``(if any)'' after
``this section''; and
(ii) in subclause (IV)(bb), by striking ``to implement this
section'' and inserting ``under paragraph (5)''; and
(2) in the second sentence of paragraph (5), by striking
``shall'' and inserting ``may''.
(d) Purchase Option at Probate.--Subsection (p)(6) of
section 207 of the Indian Land Consolidation Act (25 U.S.C.
2206) (as added by section 6(a)(2) of the American Indian
Probate Reform Act of 2004 (Public Law 108-374)) is amended--
(1) in the first sentence, by striking ``Proceeds'' and
inserting the following:
``(A) In general.--Proceeds''; and
(2) by striking the second sentence and inserting the
following:
``(B) Holding in trust.--Proceeds described in subparagraph
(A) shall be deposited and held in an account as trust
personalty if the interest sold would otherwise pass to--
``(i) the heir, by intestate succession under subsection
(a); or
``(ii) the devisee in trust or restricted status under
subsection (b)(1).''.
(e) Tribal Probate Codes.--Section 206 of the Indian Land
Consolidation Act (25 U.S.C. 2205) is amended--
(1) in subsection (b)(3), by striking subparagraph (A) and
inserting the following:
``(A) the date that is 1 year after the date on which the
Secretary makes the certification required under section
8(a)(4) of the American Indian Probate Reform Act of 2004;
or''; and
(2) in paragraph (2)(A)(i)(II)(bb) of subsection (c) (as
amended by section 6(a)(3) of
[[Page S2159]]
the American Indian Probate Reform Act of 2004 (Public Law
108-374)), by inserting ``in writing'' after ``agrees''.
(f) Effective Date.--The amendments made by this section
take effect as if included in the American Indian Probate
Reform Act of 2004 (Public Law 108-374).
______
By Mr. BINGAMAN:
S. 537. A bill to increase the number of well-trained mental health
service professionals (including those based in schools) providing
clinical mental health care to children and adolescents, and for other
purposes; to the Committee on Health, Education, Labor, and Pensions.
Mr. BINGAMAN. Mr. President, the landmark report Mental Health: A
Report of the Surgeon General brought the hidden mental health crisis
to the attention of the U.S. public. According to that report, 13.7
million of the Nation's children and adolescents, twenty percent, have
a diagnosable mental disorder, the most common of which include Anxiety
Disorder, Attention Deficit/Hyperactivity Disorder (ADHD) and
Depression. Unfortunately, only one out of five of those in need will
receive mental health care. One of the primary reasons for this across
the Nation is that mental health services to help treat children are in
short supply. Long waiting lists for children seeking care, even those
in crisis, are not uncommon. In New Mexico, it's estimated that 56,000
children and adolescents have a mental or emotional disorder. Of these,
almost 20,000 have serious emotional disorders. As of June 2003, there
were only 13 licensed child and adolescent psychiatrists to serve the
entire State of New Mexico. In addition, there are fewer trained
psychologists and social workers per 100,000 population in New Mexico
than the country as a whole. Children with untreated mental disorders
are at a higher risk for school failure and dropping out, violence,
drug abuse, suicide, and criminal activity. A 2002 report documented
that approximately one in seven youth in New Mexico detention centers
incarcerated because mental health care is not available. From January
to December 2001, 718 New Mexico youth were collectively incarcerated
for 31.3 years just to wait for a mental health treatment opening.
Clearly, something needs to be done to address this growing shortage of
these important health professionals.
The Surgeon General states that there is a dearth of child
psychiatrists, appropriately trained clinical child psychologists, or
social workers. Nationwide, 3,543 urban, suburban, and rural localities
have been designated Mental Health Professional Shortage Areas by the
Federal Government due to their severe lack of psychiatrists,
psychologists, social workers and other professionals to serve children
and adults. According to the U.S. Bureau of Health Professions, the
demand for the services of child and adolescent psychiatrists is
projected to increase by 100 percent by 2020, while the number of these
professionals is expected to increase by only 30 percent resulting in a
shortage of over 4,000 child and adolescent psychiatrists by that year.
The National Center for Education Statistics within the U.S. Department
of Education reports that the national average student-to-school
counselor ratio in U.S. schools is 513:1, more than double the
recommended ratio of 250:1.
In the United States, there are approximately 7,000 child and
adolescent psychiatrists and only 300 new child and adolescent
psychiatrists are trained each year. In 2000, the Bureau of Health
Professions projected that between 1995 and 2020, the use of child and
adolescent psychiatrists will increase by 100 percent.
While the Nation as a whole is experiencing a shortage of mental
health professionals, the problem is most acute in the rural areas. In
NM for example, 4/5 of the psychiatrists in NM are located in
Bernalillo and Santa Fe Counties. This area is also home to 70 percent
of the psychologists, 53 percent of counselors and 47 percent of the
social workers--leaving the rest of the State at a severe disadvantage.
It is in response to the mental health workforce crisis that I rise
with my colleagues Senator Collins of Maine, Senator Harkin of Iowa,
Senator Dodd of Connecticut, Senator Kennedy from Massachusetts,
Senator Reed from Rhode Island and Senator Sarbanes of Maryland, to
offer The Child Healthcare Crisis Relief Act. This bill creates
incentives to help recruit and retain child mental health professionals
providing direct clinical care, and to improve, expand, or help create
programs to train child mental health professionals. It provides loan
repayment and scholarships for child mental health and school-based
service professionals as well as internships and field placements in
child mental health services and training for paraprofessionals who
work in children's mental health clinical settings. This bill also
provides grants to graduate schools to help develop and expand child
and adolescent mental health programs. It allows for an increase in the
number of Child and Adolescent Psychiatrists permitted under the
Medicare Graduate Medical Education Program and, extends the Board
Eligibility period for residents and fellows from four years to six
years.
Finally, this bill asks the Secretary to prepare a report on the
distribution and need for child mental health and school-based
professionals with respect to specialty certifications, practice
characteristics, professional licensure, practice types, locations,
education, and training, broken down by State so that we may better
comprehend the mental health workforce needs that are facing our
Nation.
I ask unanimous consent that the text of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 537
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 ``Child Health Care Crisis
Relief Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The Center for Mental Health Services estimates that 20
percent or 13,700,000 of the Nation's children and
adolescents have a diagnosable mental health disorder, and
about \2/3\ of these children and adolescents do not receive
mental health care.
(2) According to ``Mental Health: A Report of the Surgeon
General'' in 1999, there are approximately 6,000,000 to
9,000,000 children and adolescents in the United States
(accounting for 9 to 13 percent of all children and
adolescents in the United States) who meet the definition for
having a serious emotional disturbance.
(3) According to the Center for Mental Health Services,
approximately 5 to 9 percent of children and adolescents in
the United States meet the definition for extreme functional
impairment.
(4) According to the Surgeon General's Report, there are
particularly acute shortages in the numbers of mental health
service professionals serving children and adolescents with
serious emotional disorders.
(5) According to the National Center for Education
Statistics in the Department of Education, there are
approximately 513 students for each school counselor in
United States schools, which ratio is more than double the
recommended ratio of 250 students for each school counselor.
(6) According to a year 2000 estimate of the Bureau of
Health Professions, the demand for the services of child and
adolescent psychiatry is projected to increase by 100 percent
by 2020.
(7) The development and application of knowledge about the
impact of disasters on children, adolescents, and their
families has been impeded by critical shortages of qualified
researchers and practitioners specializing in this work.
(8) According to the Bureau of the Census, the population
of children and adolescents in the United States under the
age of 18 is projected to grow by more than 40 percent, from
70,000,000 to more than 100,000,000 by 2050.
SEC. 3. LOAN REPAYMENTS, SCHOLARSHIPS, AND GRANTS TO IMPROVE
CHILD AND ADOLESCENT MENTAL HEALTH CARE.
Subpart 2 of part E of title VII of the Public Health
Service Act (42 U.S.C. 295 et seq.) is amended by adding at
the end the following:
``SEC. 771. LOAN REPAYMENTS, SCHOLARSHIPS, AND GRANTS TO
IMPROVE CHILD AND ADOLESCENT MENTAL HEALTH
CARE.
``(a) Loan Repayments for Child and Adolescent Mental
Health Service Professionals.--
``(1) Establishment.--The Secretary, acting through the
Administrator of the Health Resources and Services
Administration, may establish a program of entering into
contracts on a competitive basis with eligible individuals
(as defined in paragraph (2)) under which--
``(A) the eligible individual agrees to be employed full-
time for a specified period of at least 2 years in providing
mental health services to children and adolescents; and
``(B) the Secretary agrees to make, during the period of
employment described in subparagraph (A), partial or total
payments on behalf of the individual on the principal and
[[Page S2160]]
interest due on the undergraduate and graduate educational
loans of the eligible individual.
``(2) Eligible individual.--For purposes of this section,
the term `eligible individual' means an individual who--
``(A) is receiving specialized training or clinical
experience in child and adolescent mental health in
psychiatry, psychology, school psychology, psychiatric
nursing, social work, school social work, marriage and family
therapy, school counseling, or professional counseling and
has less than 1 year remaining before completion of such
training or clinical experience; or
``(B)(i) has a license in a State to practice allopathic
medicine, osteopathic medicine, psychology, school
psychology, psychiatric nursing, social work, school social
work, marriage and family therapy, school counseling, or
professional counseling; and
``(ii)(I) is a mental health service professional who
completed (but not before the end of the calendar year in
which this section is enacted) specialized training or
clinical experience in child and adolescent mental health
services described in subparagraph (A); or
``(II) is a physician who graduated from (but not before
the end of the calendar year in which this section is
enacted) an accredited child and adolescent psychiatry
residency or fellowship program in the United States.
``(3) Additional eligibility requirements.--The Secretary
may not enter into a contract under this subsection with an
eligible individual unless the individual--
``(A) is a United States citizen or a permanent legal
United States resident; and
``(B) if enrolled in a graduate program (including a
medical residency or fellowship), has an acceptable level of
academic standing as determined by the Secretary.
``(4) Priority.--In entering into contracts under this
subsection, the Secretary shall give priority to applicants
who--
``(A) are or will be working with high priority
populations;
``(B) have familiarity with evidence-based methods in child
and adolescent mental health services;
``(C) demonstrate financial need; and
``(D) are or will be--
``(i) working in the publicly funded sector;
``(ii) working in organizations that serve underserved
populations; or
``(iii) willing to provide patient services--
``(I) regardless of the ability of a patient to pay for
such services; or
``(II) on a sliding payment scale if a patient is unable to
pay the total cost of such services.
``(5) Meaningful loan repayment.--If the Secretary
determines that funds appropriated for a fiscal year to carry
out this subsection are not sufficient to allow a meaningful
loan repayment to all expected applicants, the Secretary
shall limit the number of contracts entered into under
paragraph (1) to ensure that each such contract provides for
a meaningful loan repayment.
``(6) Amount.--
``(A) Maximum.--For each year of the employment period
described in paragraph (1)(A), the Secretary shall not, under
a contract described in paragraph (1), pay more than $35,000
on behalf of an individual.
``(B) Consideration.--In determining the amount of payments
to be made on behalf of an eligible individual under a
contract described in paragraph (1), the Secretary shall
consider the income and debt load of the eligible individual.
``(7) Applicability of certain provisions.--The provisions
of sections 338E and 338F shall apply to the program
established under paragraph (1) to the same extent and in the
same manner as such provisions apply to the National Health
Service Corps Loan Repayment Program established in subpart
III of part D of title III.
``(8) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000
for each of fiscal years 2006 through 2010.
``(b) Scholarships for Students Studying to Become Child
and Adolescent Mental Health Service Professionals.--
``(1) Establishment.--The Secretary, acting through the
Administrator of the Health Resources and Services
Administration, may establish a program to award scholarships
on a competitive basis to eligible students who agree to
enter into full-time employment (as described in paragraph
(4)(C)) as a child and adolescent mental health service
professional after graduation or completion of a residency or
fellowship.
``(2) Eligible student.--For purposes of this subsection,
the term `eligible student' means a United States citizen or
a permanent legal United States resident who--
``(A) is enrolled or accepted to be enrolled in a graduate
program that includes specialized training or clinical
experience in child and adolescent mental health in
psychology, school psychology, psychiatric nursing, social
work, school social work, marriage and family therapy, school
counseling, or professional counseling; or
``(B) is enrolled or accepted to be enrolled in an
accredited graduate training program of allopathic or
osteopathic medicine in the United States and intends to
complete an accredited residency or fellowship in child and
adolescent psychiatry.
``(3) Priority.--In awarding scholarships under this
subsection, the Secretary shall give--
``(A) highest priority to applicants who previously
received a scholarship under this subsection and satisfy the
criteria described in subparagraph (B); and
``(B) second highest priority to applicants who--
``(i) demonstrate a commitment to working with high
priority populations;
``(ii) have familiarity with evidence-based methods in
child and adolescent mental health services;
``(iii) demonstrate financial need; and
``(iv) are or will be--
``(I) working in the publicly funded sector;
``(II) working in organizations that serve underserved
populations; or
``(III) willing to provide patient services--
``(aa) regardless of the ability of a patient to pay for
such services; or
``(bb) on a sliding payment scale if a patient is unable to
pay the total cost of such services.
``(4) Requirements.--The Secretary may award a scholarship
to an eligible student under this subsection only if the
eligible student agrees--
``(A) to complete any graduate training program,
internship, residency, or fellowship applicable to that
eligible student under paragraph (2);
``(B) to maintain an acceptable level of academic standing
(as determined by the Secretary) during the completion of
such graduate training program, internship, residency, or
fellowship; and
``(C) to be employed full-time after graduation or
completion of a residency or fellowship, for at least the
number of years for which a scholarship is received by the
eligible student under this subsection, in providing mental
health services to children and adolescents.
``(5) Use of scholarship funds.--A scholarship awarded to
an eligible student for a school year under this subsection
may be used to pay for only tuition expenses of the school
year, other reasonable educational expenses (including fees,
books, and laboratory expenses incurred by the eligible
student in the school year), and reasonable living expenses,
as such tuition expenses, reasonable educational expenses,
and reasonable living expenses are determined by the
Secretary.
``(6) Amount.--The amount of a scholarship under this
subsection shall not exceed the total amount of the tuition
expenses, reasonable educational expenses, and reasonable
living expenses described in paragraph (5).
``(7) Applicability of certain provisions.--The provisions
of sections 338E and 338F shall apply to the program
established under paragraph (1) to the same extent and in the
same manner as such provisions apply to the National Health
Service Corps Scholarship Program established in subpart III
of part D of title III.
``(8) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $5,000,000
for each of fiscal years 2006 through 2010.
``(c) Clinical Training Grants for Professionals.--
``(1) Establishment.--The Secretary, acting through the
Administrator of the Health Resources and Services
Administration, and in cooperation with the Administrator of
the Substance Abuse and Mental Health Services
Administration, may establish a program to award grants on a
competitive basis to accredited institutions of higher
education to establish or expand internships or other field
placement programs for students receiving specialized
training or clinical experience in child and adolescent
mental health in the fields of psychiatry, psychology, school
psychology, psychiatric nursing, social work, school social
work, marriage and family therapy, school counseling, or
professional counseling.
``(2) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to applicants that--
``(A) have demonstrated the ability to collect data on the
number of students trained in child and adolescent mental
health and the populations served by such students after
graduation;
``(B) have demonstrated familiarity with evidence-based
methods in child and adolescent mental health services; and
``(C) have programs designed to increase the number of
professionals serving high priority populations.
``(3) Requirements.--The Secretary may award a grant to an
applicant under this subsection only if the applicant agrees
that--
``(A) any internship or other field placement program
assisted under the grant will prioritize cultural competency;
``(B) students benefitting from any assistance under this
subsection will be United States citizens or permanent legal
United States residents;
``(C) the institution will provide to the Secretary such
data, assurances, and information as the Secretary may
require; and
``(D) with respect to any violation of the agreement
between the Secretary and the institution, the institution
will pay such liquidated damages as prescribed by the
Secretary by regulation.
``(4) Application.--Each institution of higher education
desiring a grant under this section shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require
including a description of the experience of such institution
in working with child and adolescent mental health issues.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000
for each of fiscal years 2006 through 2010.
[[Page S2161]]
``(d) Progressive Education Grants for Paraprofessionals.--
``(1) Establishment.--The Secretary, acting through the
Administrator of the Health Resources and Services
Administration, and in cooperation with the Administrator of
the Substance Abuse and Mental Health Services
Administration, may establish a program to award grants on a
competitive basis to State-licensed mental health nonprofit
and for-profit organizations, including accredited
institutions of higher education, (in this subsection
referred to as `organizations') to enable such organizations
to pay for programs for preservice or in-service training of
paraprofessional child and adolescent mental health workers.
``(2) Definition.--For purposes of this subsection, the
term `paraprofessional child and adolescent mental health
worker' means an individual who is not a mental health
service professional, but who works at the first stage of
contact with children and families who are seeking mental
health services.
``(3) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to organizations that--
``(A) have demonstrated the ability to collect data on the
number of paraprofessional child and adolescent mental health
workers trained by the applicant and the populations served
by these workers after the completion of the training;
``(B) have familiarity with evidence-based methods in child
and adolescent mental health services; and
``(C) have programs designed to increase the number of
paraprofessional child and adolescent mental health workers
serving high priority populations.
``(4) Requirements.--The Secretary may award a grant to an
organization under this subsection only if the organization
agrees that--
``(A) any training program assisted under the grant will
prioritize cultural competency;
``(B) the organization will provide to the Secretary such
data, assurances, and information as the Secretary may
require; and
``(C) with respect to any violation of the agreement
between the Secretary and the organization, the organization
will pay such liquidated damages as prescribed by the
Secretary by regulation.
``(5) Application.--Each organization desiring a grant
under this subsection shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require including a
description of the experience of the organization in working
with paraprofessional child and adolescent mental health
workers.
``(6) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $5,000,000
for each of fiscal years 2006 through 2010.
``(e) Child and Adolescent Mental Health Program
Development Grants.--
``(1) Establishment.--The Secretary, acting through the
Administrator of the Health Resources and Services
Administration, may establish a program to increase the
number of well-trained child and adolescent mental health
service professionals in the United States by awarding grants
on a competitive basis to accredited institutions of higher
education to enable such institutions to establish or expand
accredited graduate child and adolescent mental health
programs.
``(2) Priority.--In awarding grants under this subsection,
the Secretary shall give priority to applicants that--
``(A) demonstrate familiarity with the use of evidence-
based methods in child and adolescent mental health services;
``(B) provide experience in and collaboration with
community-based child and adolescent mental health services;
``(C) have included normal child development education in
their curricula; and
``(D) demonstrate commitment to working with high priority
populations.
``(3) Use of funds.--Funds awarded under this subsection
may be used to establish or expand any accredited graduate
child and adolescent mental health program in any manner
deemed appropriate by the Secretary, including improving the
coursework, related field placements, or faculty of such
program.
``(4) Requirements.--The Secretary may award a grant to an
accredited institution of higher education under this
subsection only if the institution agrees that--
``(A) any child and adolescent mental health program
assisted under the grant will prioritize cultural competency;
``(B) the institution will provide to the Secretary such
data, assurances, and information as the Secretary may
require; and
``(C) with respect to any violation of the agreement
between the Secretary and the institution, the institution
will pay such liquidated damages as prescribed by the
Secretary by regulation.
``(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $15,000,000
for each of fiscal years 2006 through 2010.
``(f) Definitions.--In this section:
``(1) High priority population.--The term `high priority
population' means a population that has a significantly
greater incidence than the national average of children who
have serious emotional disturbances, children who are racial
and ethnic minorities, or children who live in underserved
urban or rural areas.
``(2) Mental health service professional.--The term `mental
health service professional' means an individual with a
graduate or postgraduate degree from an accredited
institution of higher education in psychiatry, psychology,
school psychology, psychiatric nursing, social work, school
social work, marriage and family counseling, school
counseling, or professional counseling.
``(3) Specialized training or clinical experience in child
and adolescent mental health.--The term `specialized training
or clinical experience in child and adolescent mental health'
means training and clinical experience that--
``(A) is part of or occurs after completion of an
accredited graduate program in the United States for training
mental health service professionals;
``(B) consists of at least 500 hours of training or
clinical experience in treating children and adolescents; and
``(C) is comprehensive, coordinated, developmentally
appropriate, and of high quality to address the unique ethnic
and cultural diversity of the United States population.''.
SEC. 4. AMENDMENTS TO SOCIAL SECURITY ACT TO IMPROVE CHILD
AND ADOLESCENT MENTAL HEALTH CARE.
(a) Increasing Number of Child and Adolescent Psychiatry
Residents Permitted to Be Paid Under the Medicare Graduate
Medical Education Program.--Section 1886(h)(4)(F) of the
Social Security Act (42 U.S.C. 1395ww(h)(4)(F)) is amended by
adding at the end the following:
``(iii) Increase allowed for training in child and
adolescent psychiatry.--In applying clause (i), there shall
not be taken into account such additional number of full-time
equivalent residents in the field of allopathic or
osteopathic medicine who are residents or fellows in child
and adolescent psychiatry as the Secretary determines
reasonable to meet the need for such physicians as
demonstrated by the 1999 report of the Department of Health
and Human Services entitled `Mental Health: A Report of the
Surgeon General'.''.
(b) Extension of Medicare Board Eligibility Period for
Residents and Fellows in Child and Adolescent Psychiatry.--
(1) In general.--Section 1886(h)(5)(G) of the Social
Security Act (42 U.S.C. 1395ww(h)(5)(G)) is amended--
(A) in clause (i), by striking ``and (v)'' and inserting
``(v), and (vi)''; and
(B) by adding at the end the following:
``(vi) Child and adolescent psychiatry training programs.--
In the case of an individual enrolled in a child and
adolescent psychiatry residency or fellowship program
approved by the Secretary, the period of board eligibility
and the initial residency period shall be the period of board
eligibility for the specialty of general psychiatry, plus 2
years for the subspecialty of child and adolescent
psychiatry.''.
(2) Conforming amendment.--Section 1886(h)(5)(F) of the
Social Security Act (42 U.S.C. 1395ww(h)(5)(F)) is amended by
striking ``subparagraph (G)(v)'' and inserting ``clauses (v)
and (vi) of subparagraph (G)''.
(3) Effective date.--The amendments made by paragraph (1)
shall apply to residency training years beginning on or after
July 1, 2006.
SEC. 5. CHILD MENTAL HEALTH PROFESSIONAL REPORT.
(a) Study.--The Administrator of the Health Resources and
Services Administration (in this section referred to as the
``Administrator'') shall study and make findings and
recommendations on the distribution and need for child mental
health service professionals, including--
(1) the need for specialty certifications;
(2) the breadth of practice types;
(3) the adequacy of locations;
(4) the adequacy of education and training; and
(5) an evaluation of best practice characteristics.
(b) Disaggregation.--The results of the study required by
subsection (a) shall be disaggregated by State.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall submit to the
appropriate committees of Congress and make publicly
available a report on the study, findings, and
recommendations required by subsection (a).
SEC. 6. REPORTS.
(a) Transmission.--The Secretary of Health and Human
Services shall transmit a report described in subsection (b)
to Congress--
(1) not later than 3 years after the date of the enactment
of this Act; and
(2) not later than 5 years after the date of the enactment
of this Act.
(b) Contents.--The reports transmitted to Congress under
subsection (a) shall address each of the following:
(1) The effectiveness of the amendments made by, and the
programs carried out under, this Act in increasing the number
of child and adolescent mental health service professionals
and paraprofessional child and adolescent mental health
workers.
(2) The demographics of the individuals served by such
increased number of child and adolescent mental health
service professionals and paraprofessional child and
adolescent mental health workers.
______
By Mr. BIDEN:
S. 538. A bill to educate health professionals concerning substance
use disorders and addiction; to the Committee on Health, Education,
Labor, and Pensions.
[[Page S2162]]
Mr. BIDEN. Mr. President, I rise today to introduce legislation to
address the problem of substance abuse in our country.
The Robert Wood Johnson Foundation has called substance abuse
America's No. 1 health problem. I don't think that overstates it.
Most of us knows someone--a family member, maybe a neighbor, a
colleague, or a friend--who is addicted to drugs or alcohol. In fact,
nearly 15 million people in this country abuse alcohol or are
alcoholics. More than 19 million use drugs, and an estimated 4 million
are in need of treatment but not receiving it.
Drug and alcohol abuse has far-reaching consequences. It exacerbates
social ills. It is a public safety problem. It is a public health
problem. It is a public expenditure problem. There is an undeniable
correlation between substance abuse and crime. Eighty percent of the 2
million men and women behind bars today have a history of drug and
alcohol abuse or addiction or were arrested for a drug-related crime.
Illegal drugs are responsible for thousands of deaths each year. They
fuel the spread of AIDS and hepatitis C. They contribute to child
abuse, domestic violence, and sexual assault. And we all pay the price.
It costs this Nation almost $275 billion in law enforcement, criminal
justice expenses, medical bills, and lost earnings each year. That
means that preventing and treating substance abuse makes sense. It
makes good criminal justice sense. It makes public health sense. It
makes budgetary sense. Not to mention the fact that it is the right
thing to do.
Yet there remains a reluctance to recognize substance abuse as a
health issue. There is a reluctance to accept addiction as a disease.
It is a reluctance that has kept public policy from asserting that
addicts should be in treatment. Whether addicts are in prison or out,
it seems to me, treatment is the only legitimate choice.
But it is not only about increasing access to treatment. It is also
about moving treatment into the medical mainstream. Unless family
doctors, nurses, physician assistants, and social workers can identify
addiction when they see it, unless they know how to intervene, we will
never make any real progress.
That aspect of the challenge came into sharp focus for me when I read
a report a few years ago by the National Center on Addiction and
Substance Abuse at Columbia University, CASA.
That report said that fewer than 1 percent of doctors presented with
the classic profile of an alcoholic older woman could diagnose it
properly. Eighty-two percent misdiagnosed it as depression, some
treatments for which are dangerous when taken with alcohol. A follow-up
study showed that 94 percent of primary care physicians fail to
diagnose substance abuse when presented with the classic symptoms, and
41 percent of pediatricians fail to diagnose illegal drug use in
teenage patients.
No one recognizes this problem better than the doctors themselves.
Fewer than one in five--only 19 percent--feel confident about
diagnosing alcoholism. And only 17 percent feel qualified to identify
illegal drug use. Having said that, even if they diagnose it, most
doctors don't believe that treatment works.
Among practitioners, as well as policymakers, we need to get the
message out loud and clear: Addiction is a chronic relapsing disease,
and as with other such diseases, while there may not be a cure, medical
treatment can help control it.
The medical professionals have to be educated to recognize the signs
of substance abuse and to pursue the effective therapies that are
available. That is why I am introducing legislation to help train
medical professionals to prevent and recognize addiction and refer
patients to treatment if they need it. Representative Patrick Kennedy
will introduce companion legislation in the House of Representatives.
Like treatment, training works. According to a study published in the
Brown University Digest of Addiction Theory and Application, 91 percent
of health professionals who took part in training on addiction at
Boston University were using the techniques they learned 1 to 5 years
later.
Every family doctor does not need to be an addiction specialist, but
they do need to be able to recognize the signs. And they need to know
what help is available.
My legislation does the following three things: authorizes $9 million
in grants to train medical generalists to recognize substance abuse in
their patients and their families and know how to properly refer them
for treatment; authorizes $6 million to fund substance abuse faculty
fellows at educational institutions to teach courses on substance
abuse, incorporate substance abuse issues into to required courses at
the institution, and educate health professionals about issues related
to non-therapeutic uses of prescription medications; and establishes
centers of excellence at medical centers or universities across the
United States to (1) initiate, promote and implement training, research
and clinical activities related to special areas of substance abuse and
(2) provide opportunities for interdisciplinary collaboration in
curriculum development, clinical practice, research and policy
analysis. The bill authorizes $6 million for this purpose.
These are additional steps--and, in my view, crucial ones to help
bridge the divide between research and practice. They will help chip
away at the incredible substance abuse-related costs we face each year
in human as well as monetary terms.
I hope my colleagues will join me to support this important
legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 538
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 ``Health Professionals
Substance Abuse Education Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) Illegal drugs and alcohol are responsible for thousands
of deaths each year, and they fuel the spread of a number of
communicable diseases, including AIDS and Hepatitis C, as
well as some of the worst social problems in the United
States, including child abuse, domestic violence, and sexual
assault.
(2) There are an estimated 19,500,000 current drug users in
America, nearly 4,000,000 of whom are addicts. An estimated
14,800,000 Americans abuse alcohol or are alcoholic.
(3) There are nearly 27,000,000 children of alcoholics in
America, almost 11,000,000 of whom are under 18 years of age.
Countless other children are affected by substance abusing
parents or other caretakers. Health professionals are
uniquely positioned to help reduce or prevent alcohol and
other drug-related impairment by identifying affected
families and youth and by providing early intervention.
(5) Drug addiction is a chronic relapsing disease. As with
other chronic relapsing diseases (such as diabetes,
hypertension and asthma), there is no cure, although a number
of treatments can effectively control the disease. According
to an article published in the Journal of the American
Medical Association, treatment for addiction works as well as
treatment for other chronic relapsing diseases.
(6) Drug treatment is cost effective, even when compared
with residential treatment, the most expensive type of
treatment. Residential treatment for cocaine addiction costs
between $15,000 and $20,000 a year, a substantial savings
compared to incarceration (costing nearly $40,000 a year), or
untreated addiction (costing more than $43,000 a year). Also,
in 1998, substance abuse and addiction accounted for
approximately $10,000,000,000 in Federal, State, and local
government spending simply to maintain the child welfare
system. The economic costs associated with fetal alcohol
syndrome were estimated at $54,000,000,000 in 2003.
(7) Many doctors and other health professionals are
unprepared to recognize substance abuse in their patients or
their families and intervene in an appropriate manner. Only
56 percent of residency programs have a required curriculum
in preventing or treating substance abuse.
(8) Fewer than 1 in 5 doctors (only 19 percent) feel
confident about diagnosing alcoholism, and only 17 percent
feel qualified to identify illegal drug use.
(9) Most doctors who are in a position to make a diagnosis
of alcoholism or drug addiction do not believe that treatment
works (less than 4 percent for alcoholism and only 2 percent
for drugs).
(10) According to a survey by the National Center on
Addiction and Substance Abuse at Columbia University
(referred to in this section as ``CASA''), 94 percent of
primary care physicians and 40 percent of pediatricians
presented with a classic description of an alcoholic or drug
addict, respectively, failed to properly recognize the
problem.
[[Page S2163]]
(11) Another CASA report revealed that fewer than 1 percent
of doctors presented with the classic profile of an alcoholic
older woman could diagnose it properly. Eighty-two percent
misdiagnosed it as depression, some treatments for which are
dangerous when taken with alcohol.
(12) Training can greatly increase the degree to which
medical and other health professionals screen patients for
substance abuse. It can also increase the manner by which
such professionals screen children and youth who may be
impacted by the addiction of a parent or other primary
caretaker. Boston University Medical School researchers
designed and conducted a seminar on detection and brief
intervention of substance abuse for doctors, nurses,
physician's assistants, social workers and psychologists.
Follow-up studies reveal that 91 percent of those who
participated in the seminar report that they are still
using the techniques up to 5 years later.
(13) The total economic costs of untreated addiction is
estimated to be $274,800,000,000. Arming health care
professionals with the information they need in order to
intervene and prevent further substance abuse could lead to a
significant cost savings.
(14) A study conducted by doctors at the University of
Wisconsin found a $947 net savings per patient in health
care, accident, and criminal justice costs for each
individual screened and, if appropriate, for whom
intervention was made, with respect to alcohol problems.
(b) Purpose.--It is the purpose of this Act to--
(1) improve the ability of health care professionals to
identify and assist their patients in obtaining appropriate
treatment for substance abuse;
(2) improve the ability of health care professionals to
identify and refer children and youth affected by substance
abuse in their families for effective treatment; and
(3) help establish an infrastructure to train health care
professionals about substance abuse issues and the impact on
families.
SEC. 3. HEALTH PROFESSIONALS SUBSTANCE ABUSE EDUCATION.
Part D of title V of the Public Health Service Act (42
U.S.C. 290dd et seq.) is amended by adding at the end the
following:
``SEC. 544. SUBSTANCE ABUSE EDUCATION FOR GENERALIST HEALTH
PROFESSIONALS.
``(a) Secretary of Health and Human Services.--The
Secretary shall carry out activities to train health
professionals (who are generalists and not already
specialists in substance abuse) so that they are competent
to--
``(1) recognize substance abuse in their patients or the
family members of their patients;
``(2) intervene, treat, or refer for treatment those
individuals who are affected by substance abuse;
``(3) identify and assist children of substance abusing
parents;
``(4) serve as advocates and resources for community-based
substance abuse prevention programs; and
``(5) appropriately address the non-therapeutic use of
prescription medications.
``(b) Use of Funds.--Amounts received under this section
shall be used--
``(1) to continue grant support through cooperative
agreements to the Association for Medical Education and
Research in Substance Abuse (AMERSA) Interdisciplinary
Faculty Development Project;
``(2) to continue grants to the Association for Medical
Education and Research in Substance Abuse (AMERSA)
Interdisciplinary Faculty Development Project; and
``(3) to support the Addiction Technology Transfer Centers
counselor training programs to train substance abuse
counselors and other health professionals such as dental
assistants, allied health professionals including dietitians
and nutritionists, occupational therapists, physical
therapists, respiratory therapists, speech-language
pathologists and audiologists, and therapeutic recreation
specialists.
``(c) Collaboration.--The Secretary shall participate in
interdisciplinary collaboration and collaborate with other
nongovernmental organizations with respect to activities
carried out under this section.
``(d) Academic Credits.--The Secretary shall encourage
community colleges and other academic institutions determined
appropriate by the Secretary to recognize classes offered by
the Addiction Technology Transfer Centers for purposes of
academic credit.
``(e) Evaluations.--The Secretary shall conduct a process
and outcome evaluation of the programs and activities carried
out with funds received under this section, and shall provide
annual reports to the Secretary and the Director of the
Office of National Drug Control Policy.
``(f) Definitions.--In this section--
``(1) the term `health professional' means a allopathic or
osteopathic physician, advanced practice nurse, physician
assistant, social worker, psychologist, pharmacist, dental
health professional, psychiatrist, allied health
professional, drug and alcohol counselor, or other individual
who is licensed, accredited, or certified under State law to
provide specified health care services and who is operating
within the scope of such licensure, accreditation, or
certification; and
``(2) the terms `allopathic or osteopathic physician',
`nurse', `physician assistant', `advanced practice nurse',
`social worker', `psychologist', `pharmacist', `dental health
professional', and `allied health professional' shall have
the meanings given such terms for purposes of titles VII and
VIII of the Public Health Service Act (42 U.S.C. 292 et seq
and 296 et seq.).
``(g) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section, $9,000,000 for
each of fiscal years 2006 through 2010. Amounts made
available under this subsection shall be used to supplement
and not supplant amounts being used on the date of enactment
of this section for activities of the types described in this
section.
``SEC. 545. SUBSTANCE ABUSE INTERDISCIPLINARY EXPERT
EDUCATOR.
``(a) Establishment.--The Secretary shall establish and
administer a substance abuse faculty fellowship program
through grants and contacts under which the Secretary shall
provide assistance to eligible institutions to enable such
institutions to employ interdisciplinary faculty who will
serve as advanced level expert educators (referred to in this
section as `expert educators').
``(b) Eligibility.--
``(1) Institutions.--To be eligible to receive assistance
under this section, an institution shall--
``(A) be an accredited medical school or undergraduate or
graduate nursing school, or be an institution of higher
education that offers one or more of the following--
``(i) an accredited physician assistant program;
``(ii) an accredited dental health professional program;
``(iii) a graduate program in pharmacy;
``(iv) a graduate program in public health;
``(v) a graduate program in social work;
``(vi) a graduate program in psychology;
``(vii) a graduate program in marriage and family therapy;
or
``(viii) a graduate program in counseling; and
``(B) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require.
``(2) Qualifications for expert educators.--To be eligible
to receive an advanced level expert educator faculty
appointment from an eligible institution under this section,
an individual shall prepare and submit to the institution an
application at such time, in such manner, and containing such
information as the institution may require. Expert educators
should have advanced level training in education about
substance use disorders and expertise in such areas as
culturally competent and gender specific prevention and
treatment strategies for vulnerable populations (such as
adults and adolescents with dual diagnosis, older
individuals, children in families affected by substance
abuse, and individuals and families involved in the criminal
justice system) and will serve as resources and advisors for
health professional training institutions.
``(c) Use of Funds.--
``(1) In general.--An eligible institution shall utilize
assistance received under this section to provide one or more
fellowships to eligible individuals. Such assistance shall be
used to pay a sum of not to exceed 50 percent of the annual
salary of the individual under such a fellowship for a 5-year
period.
``(2) Fellowships.--Under a fellowship under paragraph (1),
an individual shall--
``(A) devote a substantial number of teaching hours to
substance abuse issues (as part of both required and elective
courses) at the institution involved during the period of the
fellowship;
``(B) incorporate substance abuse issues, including the
impact on children and families, into the required curriculum
of the institution in a manner that is likely to be sustained
after the period of the fellowship ends (courses described in
this subparagraph should be provided as part of several
different health care training programs at the institution
involved); and
``(C) educate health professionals about issues related to
the nontherapeutic use of prescription medications.
``(3) Evaluations.--The Secretary shall conduct a process
and outcome evaluation of the programs and activities carried
out with amounts appropriated under this section and shall
provide annual reports to the Director of the Office of
National Drug Control Policy and the appropriate committees
of Congress.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section, $6,000,000 for
each of the fiscal years 2006 through 2010. Amounts made
available under this subsection shall be used to supplement
and not supplant amounts being used on the date of enactment
of this section for activities of the types described in this
section.
``SEC. 546. CENTER OF EXCELLENCE.
``(a) In General.--The Secretary shall establish centers of
excellence at medical centers or universities throughout the
United States to--
``(1) initiate, promote, and implement training, research,
and clinical activities related to targeted issues or special
areas of focus such as brief intervention in general health
settings, children and families affected by substance abuse,
older individuals, maternal and child health issues,
individuals with dual diagnosis, prevention in the general
health setting, and clinical practice standards for primary
care providers; and
``(2) provide opportunities for interdisciplinary
collaboration in curriculum development, course development,
clinical practice,
[[Page S2164]]
research and translation of research into practice, and
policy analysis and formulation.
``(b) Use of Funds.--Centers of excellence established
under subsection (a) shall use funds provided under this
section to--
``(1) disseminate information on evidence-based approaches
concerning the prevention and treatment of substance use
disorders; and
``(2) assist health professionals and alcohol and drug
treatment counselors to incorporate the latest research into
their treatment practices.
``(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section, $6,000,000 for
each of the fiscal years 2006 through 2010.''.
______
By Mr. HAGEL:
S. 540. A bill to strengthen and permanently preserve social
security; to the Committee on Finance.
Mr. HAGEL. Mr. President, when I began my first campaign for the U.S.
Senate in 1995, I published a booklet entitled ``Where I Stand.'' I
wrote it because the first obligation of a candidate is to tell voters
what you believe. In that booklet, I wrote:
The Social Security system must be preserved, protected,
and improved. We have made this covenant with our senior
citizens. However, the long-term future of the Social
Security system is in peril. If we do not get this issue
resolved soon, this Nation faces an entitlement disaster,
eroding the trust between grandchildren and grandparents. We
must explore every option in order to fix and strengthen our
Social Security system. This will require bold leadership.
A decade later, those words still define my position on Social
Security. Social Security has been one of the most important and
successful Government programs in the history of America. Almost every
American family over the last 70 years has been touched by Social
Security. In signing the Social Security Act of 1935, Franklin
Roosevelt said:
None of the sums of money paid out to individuals in
assistance or insurance will spell anything approaching
abundance. But they will furnish that minimum necessity to
keep a foothold, and that is the kind of protection Americans
want.
A fundamental point that President Roosevelt made was that Social
Security was not intended to replace the personal responsibility of
individuals saving for and preparing for their own retirements. Social
Security was never intended to be a substitute for a retirement or
savings plan. It is a safety net for people. Social Security is an
insurance contract that protects the most vulnerable in our society
from falling into poverty. But Social Security is actuarially
unsustainable with its present commitments to future generations.
Today, I am introducing comprehensive Social Security reform
legislation. I began my day in Nebraska this morning with some of the
people who would be most affected by my bill--America's next
generation. It is their generation that will be asked to sustain the
future of Social Security.
My generation, the baby boom generation, has been the largest and
most productive workforce in the history of man. The impending
retirement of the 77 million-strong baby boom generation will impact
every aspect of our economy, Government, and society--Medicare and
Medicaid, health care, our workforce, and our competitive position in a
world filled with countries much younger than ours. The next generation
of Americans will respond to these challenges as every generation of
Americans has responded to challenges--with innovation and hard work.
However, my generation has a moral obligation to ensure that future
generations do not have to bear an increasingly heavy burden of
providing retirement resources for future generations. That is why we
must reform Social Security. It is a 1935 model trying to operate in a
21st century world. It will soon be incapable of delivering the
promises and resources that it was built to provide 70 years ago.
Last week, in testimony before the House Budget Committee, Federal
Reserve Chairman Alan Greenspan urged Congress to act on modernizing
entitlement programs sooner rather than later. He warned that, unless
we act now to meet the huge unfunded liabilities facing our entitlement
programs, there will be severe economic consequences for our Nation.
Chairman Greenspan is right.
America's largest entitlement programs--Social Security, Medicare,
and Medicaid--are on a trajectory that cannot be sustained. For fiscal
year 2006, the Congressional Budget Office tells us that 64 percent of
the $2.5 trillion Federal budget will be obligated to mandatory
spending, of which 42 percent is for Medicare, Medicaid, and Social
Security. Those are tax dollars that are committed--money that cannot
be used for anything else.
Each year, the percentage of the Federal budget obligated to funding
entitlement programs grows larger and larger. The current unfunded
liability for Social Security over the next 75 years--this is the
horizon that the Social Security Administration uses to calculate
benefits and expenditures--is $3.7 trillion. That means over the next
75 years, we are obligated to make the commitments of the retiree
benefits a reality. Yet we have $3.7 trillion of debt. We don't know
where and how we are going to get that $3.7 trillion. We are now $3.7
trillion in debt in the current obligations over the next 75 years for
Social Security. Medicare's unfunded liability is nearly $28 trillion.
These liabilities are in addition to America's current national debt of
$7.5 trillion.
Medicare costs are growing faster than any other Government or
entitlement program. As we see health care costs continue to rise,
coupled with the growing number of retirees, it will only continue to
put more and more pressure on our Federal budget and squeeze out money
for important discretionary Government programs such as education,
roads, parks, and housing.
Last Congress, we passed an enormous expansion of Medicare. I voted
against it. I thought it was bad policy and would add hundreds of
billions of dollars to an already unsustainable program. I am
supportive of efforts to reopen the Medicare reform bill and fix
it. But for political reasons, I doubt that will happen soon, although
we will be forced to deal with it in the future.
The Social Security system is not in crisis today, but there is
clearly a crisis on the horizon. In 2018, more money will be paid out
of Social Security than comes in. In 2042, the Social Security trust
fund will be insolvent. Beyond the next 75 years, there is only a black
hole of unfunded liability for future generations. The longer we do
nothing, the more difficult it will be to protect Social Security and
the promise our Government made to future generations of Americans.
This reality is daunting, but there is good news in all of this. The
system can be fixed. It is within our power to preserve the Social
Security net for this Nation. It has been done before. In 1983,
President Reagan worked with congressional Democrats and Republicans to
make tough choices and extend the life of Social Security. Dealing with
this problem now means less dramatic and difficult choices later. The
earlier we confront the reality of the coming crisis, the more options
we will have to come up with a wise and sustainable course of action.
Allow me to now lay out the main points of the Social Security reform
bill that I will introduce today.
My bill would ensure the vitality of Social Security for future
generations. There are no easy choices to fix the demographic
challenges and realities facing Social Security. Understanding this, we
must make choices that address the problem responsibly and fairly.
My bill would make changes to Social Security only--only--for those
Americans under the age of 45. No American age 45 or older will see a
change in Social Security or their benefits. For Americans under 45, my
bill would provide the option of voluntary personal accounts. Providing
personal accounts is good policy for both the long-term viability of
Social Security and for individuals. Government should be about
empowering individuals and enhancing personal freedoms and their
futures. Personal accounts help do this for those under 45.
My bill would continue to provide a guaranteed Social Security
benefit from the Social Security trust fund. Under my plan--under any
plan--Americans still need the security of knowing that the portion of
their Social Security benefits that comes from the traditional Social
Security system will be guaranteed. My bill will continue to guarantee
survivor and disability benefits as they currently are.
Social Security provides benefits for more than 6 million spouses and
children of breadwinners who have died
[[Page S2165]]
prematurely or have become disabled. For these families, their benefits
should not be touched.
I know something about this. When I was 16 years old, my father died.
The Social Security benefits my mother received were critical in
helping her raise four young boys in Nebraska. I well remember my
mother's relief when that Social Security check arrived each month.
We must remember that the first obligation of Social Security is to
the most needy Americans. My bill does not raise taxes. I believe we
can fix Social Security without raising taxes. We need to begin
reforming Government programs so they do not become so large and so
expensive that future taxpayers will be unable to pay for them. Young
wage earners and small businesses are the most vulnerable to tax
increases, and they would be the ones most adversely affected by higher
taxes to save Social Security.
Additionally, whenever we increase the cost of labor, we hurt our
competitive position in the world and make job creation more difficult.
This is not abstract economic theory; it is reality that has an impact
on every future American.
Those are the principles that form the foundation of the bill I will
introduce today. Here is how it would work.
Upon passage of the bill, Americans 44 and younger would be given two
voluntary options. One, they can invest 4 percent of their payroll tax
into a personal investment account modeled on the same accounts now
offered to all Federal Government employees. I participate and my staff
participates in this program. The remainder of their payroll tax
contribution would continue to go into the traditional Social Security
system. Option 2, individuals can continue to invest their entire
payroll tax in the traditional Social Security system.
If they choose the personal account option, then individuals will be
able to invest in the same five funds that collectively make up the
current Federal Thrift Savings Plan--again, the program that I am in,
Members of Congress are in, and Federal Government employees are in.
The first is the common stock index fund. Over the last 10 years,
this fund has earned an average annual rate of return of 11.99 percent.
The second fund is the fixed income index investment fund. Over the
last 10 years, this fund has earned an average annual rate of return of
7.72 percent.
The third is the Government securities investment fund, and over the
last 10 years, it has earned an average annual rate of return of 5.75
percent.
The fourth is the small capitalization index. Over the last 10 years,
it has earned an average annual rate of return of 11.84 percent.
Fifth is the international stock index fund. Over the last 10 years,
it has earned an average annual rate of return of 5.45 percent.
These five funds provide a range of excellent investment options.
My bill would also provide a default account for those Americans who,
for whatever reason, do not want to deal with choosing a fund or funds
for their accounts. This fund would invest differently in an
individual's early working years than in their later working years.
The Thrift Savings Plan has been a success for Government employees.
Last year, returns on the different accounts ranged from just over 4
percent to 20 percent, and in the last 10 years, the returns have been
between 5.5 and 12 percent. Compare this with the 3-percent return
provided by Treasury bonds that Social Security now invests in today.
These private accounts are in addition to the guaranteed Social
Security benefits and personal savings pensions and retirement account
programs individuals build up during their working years.
Under my bill, personal accounts would be administered by a board
within the Social Security Administration called the Social Security
investment board. The board would be composed of the Secretary of the
Treasury, the Chairman of the Federal Reserve Board, the Chairman of
the Securities and Exchange Commission, and two Senate-confirmed
appointments nominated by the President. One of the President's
appointments would serve as chairman of the board.
Upon retirement, those who choose to enroll in a personal account
will have two accounts: their personal account and their traditional
Social Security benefits account. They will be required to convert a
portion of their personal account to an annuity which, when added to
their guaranteed Social Security, would be at least 135 percent of
poverty. There is no such guarantee in our Social Security system
today. The remainder of the personal account will be theirs to spend as
they wish. It could be used to help with health care costs and
retirement living costs, or it could even help an account holder's
children or grandchildren put a downpayment on a home or pay college
tuition.
There are those who say that allowing individuals to invest through
personal accounts is too risky. Their concerns are serious, and they
deserve a serious response. Under my plan, no person is required to
have a personal account. An individual who does not want to invest can
keep all of their money in the traditional Social Security system.
I believe the policies which enhance personal freedom and
responsibility encourage the ethic of saving and limit the role of
Government in their lives. These are the policies which will be more
flexible and successful for America's future.
It is true that there is no guarantee with market-based investments;
however, the historic success of markets is not a theory, it is a fact.
Columnist George Will pointed out in a recent Washington Post column
that in no 15-year period over the past eight decades has the growth of
stocks ever been negative. In no 20-year period has the average growth
been less than 3 percent, which exceeds the rate of return on Social
Security assets today. This includes down times, significant down
periods in the stock market.
We are blessed in America. We are blessed in America because the vast
majority of Americans live healthier, longer lives than they did a few
decades ago. Continued advances in medicine, education, and personal
health will continue to increase not only the length of our lives, but
also the quality of our lives, providing opportunities for older
Americans to remain healthy, vital, and productive members of the
workforce.
When Social Security was created in 1935, there were too many workers
and not enough jobs. According to the Social Security Administration,
in 1950, there were 16.5 workers per retiree. Incentives were created
to move people out of the workforce. This dynamic is changing. Today
there are 3.3 workers for every retiree. In 25 years, there will be
about 2 workers for each retiree.
Why is this important? This is important because Social Security is a
transfer program. The money comes in and the payroll taxes from the
workers go out at the end of the month to the retirees.
So when there are less workers, there is less money coming into the
system. My bill makes three adjustments to Social Security that will
make it solvent for future generations. First, my bill would raise the
current full benefit retirement age by 1 year from 67 to 68. Second, my
bill would maintain the current earlier retirement age at 62 but would
adjust benefits for those who choose to retire early.
Currently, workers who retire early today receive 70 percent of their
full retirement benefits. My bill will provide these early retirees
with 63 percent of the traditional benefits.
Third, currently an individual's base Social Security benefit is
determined by two factors: their average income over 35 years and the
wage index. My bill adds a third component, life expectancy. We are
living longer. That means as we live longer, we will draw more from the
Social Security fund.
Over the life of the program Social Security benefit calculations
have never been adjusted to reflect increased life expectancy. By
factoring increased life expectancy into the base benefit calculation,
the rate of increase in benefit payments will be slow. No other changes
will be made to the annual consumer price indexing of benefit
increases.
In addition to making Social Security solvent, these adjustments can
help confront the challenges of increasing Medicare costs and shortages
in the workforce. It is important to protect
[[Page S2166]]
the option of early retirement, but our laws need to encourage
individuals to stay in the workforce, not leave it.
Medicare costs, Medicaid costs, and labor shortages can be
significantly reduced by keeping people healthy, vital, happy, and
productive in the workforce. My bill pays for these changes in Social
Security by using the existing $3.7 trillion unfunded liability to
ensure the long-term health of the Social Security system. Doing
nothing will mean at the end of 75 years, Social Security will have
chewed up $3.7 trillion in taxpayer money to help keep Social Security
solvent, but it will not, and we will still have an insolvent program
with trillions of dollars more of unfunded liabilities staring us in
the face.
In recent testimony before the Senate, Alan Greenspan said Social
Security's total unfunded liability could be as high as $10 trillion
over the life of the program. I have introduced this bill because I
believe that leaders have a responsibility to deal with the great
challenges of their time, not defer them, not make excuses for them,
but to try to fix them and come up with solutions.
I do not hold my bill up as the only way to address the solvency of
Social Security. It is one way. There may be better ways. No
comprehensive bill will be immune from critical evaluation, nor should
it be. However, I think my bill is a commonsense, responsible, and
fiscally accountable place to start.
All Americans need to ask tough questions about the future of Social
Security. We need to begin the process of refining ideas to forge the
best, most responsible policy for the future of Social Security.
President Bush deserves great credit for making the modernization of
Social Security a central part of his second-term agenda. There is no
possibility for success in modernizing Social Security without strong
Presidential leadership.
As I said at the beginning of my speech, Social Security is one of
the most important and successful Government programs in American
history. Since 1935, it has provided a safety net for our society's
most vulnerable. We have a high moral obligation to ensure that future
generations continue to benefit from this safety net and social
contract we have with our citizens. But in order to do this, we must
fix the system.
This is a personal issue for me. Forty years from now a young mother
in Columbus, NE, may be left to raise four children on her own. I want
her family to have the same access to the same safety net that my
family had, and the promise that no matter where one starts in life,
with a little help they can finish where they want.
I am 58 years old. I am at the front of the baby boom generation. My
daughter is 14 years old. My son is 12 years old. I do not want to fail
their generation. That means addressing these entitlement program
issues now, while we have time to do it in a wise, careful, and
responsible way. This is a defining debate for today's leaders. Doing
nothing is irresponsible and cowardly. It is in America's interest to
deal with our challenge today. We have it in us to do what needs to be
done. We can preserve, protect, and improve Social Security for all
future generations of Americans.
I send my bill to the desk and ask that it be assigned to the
appropriate committee.
I yield the floor.
The PRESIDING OFFICER. The bill will be received and appropriately
dealt with.
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. 540
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 ``Saving
Social Security Act of 2005''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--INVESTMENT-BASED SOCIAL SECURITY
Sec. 101. Establishment of an investment-based option for social
security benefits.
``Part B--Investment-Based Social Security
``Sec. 250. Definitions.
``Sec. 251. Election to waive eligibility.
``Sec. 252. Social security savings accounts for employees (SAFE
accounts).
``Sec. 253. SAFE Investment Fund.
``Sec. 254. Distributions.
``Sec. 255. Social Security Investment Board.
Sec. 102. Adjustments to primary insurance amounts under part A of
title II of the Social Security Act for investing workers
with SAFE accounts.
Sec. 103. Tax treatment of investment-based social security.
Sec. 104. Study on use of private annuities for SAFE account
distributions.
Sec. 105. Study regarding financial literacy.
TITLE II--DEBT-BASED SOCIAL SECURITY
Subtitle A--Adjustments
Sec. 201. Modification to retirement age.
Sec. 202. Modification of PIA factors to reflect changes in life
expectancy.
Sec. 203. Actuarial adjustment for retirements.
Subtitle B--Maintenance of Social Security Trust Funds
Sec. 211. Maintenance of adequate balances in the social security trust
funds.
TITLE I--INVESTMENT-BASED SOCIAL SECURITY
SEC. 101. ESTABLISHMENT OF AN INVESTMENT-BASED OPTION FOR
SOCIAL SECURITY BENEFITS.
(a) In General.--Title II of the Social Security Act (42
U.S.C. 401 et seq.) is amended--
(1) by inserting before section 201 the following:
``PART A--DEBT-BASED SOCIAL SECURITY'';
and
(2) by adding at the end the following:
``PART B--INVESTMENT-BASED SOCIAL SECURITY
``SEC. 250. DEFINITIONS.
``For purposes of this part--
``(1) Investing worker.--The term `investing worker' means
any individual--
``(A) who after the date of enactment of this part--
``(i) receives wages on which there is imposed a tax under
section 3101(a) of the Internal Revenue Code of 1986; or
``(ii) derives self-employment income on which there is
imposed a tax under section 1401(a) of the Internal Revenue
Code of 1986; and
``(B) who was born on or after January 1, 1961, and does
not make an election to waive investment-based social
security under this part as provided under section 251(a).
``(2) Social security savings accounts for employees (safe
account).--The term `social security savings accounts for
employees' or `SAFE Account' means an account established for
an investing worker within the SAFE Investment Fund under
section 252.
``(3) SAFE investment fund.--The term `SAFE Investment
Fund' or `Fund' means the fund established under section 253.
``(4) Social security investment board.--The term `Social
Security Investment Board' or `Board' means the board
established under section 254.
``(5) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``SEC. 251. ELECTION TO WAIVE ELIGIBILITY.
``(a) Election to Waive Eligibility for SAFE Accounts.--
``(1) In general.--Any individual may elect to waive
eligibility under this part in such form and manner as
prescribed by the Board at any time after such individual
attains the age of 18 and before such individual attains the
age of 25. Such election shall be irrevocable.
``(2) Individual born before january 1, 1981.--
Notwithstanding paragraph (1), in the case of any individual
born after December 31, 1960, and before January 1, 1981,
such individual may elect to waive eligibility under this
part in such form and manner as prescribed by the Board at
any time before January 1, 2007. Such election shall be
irrevocable.
``(b) Disposition of SAFE Account.--In the case of any
individual who makes an election under paragraph (1), any
assets in such individual's SAFE Account shall be paid to the
Federal Old-Age and Survivors Insurance Trust Fund, and such
individual's eligibility for benefits under part A shall be
determined as if such Account had never been established.
``SEC. 252. SOCIAL SECURITY SAVINGS ACCOUNTS FOR EMPLOYEES
(SAFE ACCOUNTS).
``(a) Establishment of SAFE Accounts.--Not later than 30
days after the date on which an individual first becomes an
investing worker, the Social Security Investment Board shall
establish a SAFE Account for such individual in the SAFE
Investment Fund.
``(b) Contributions.--
``(1) In general.--The Secretary of the Treasury shall
transfer from the Federal Old-Age and Survivors Insurance
Trust Fund to the SAFE Investment Fund, for crediting by the
Social Security Investment Board to the SAFE Account of an
investing worker, an amount equal to the SAFE Account
contribution amount with respect to each investing worker.
[[Page S2167]]
``(2) SAFE account contribution amount.--For purposes of
paragraph (1), the term `SAFE Account contribution amount'
means, with respect to an investing worker for a calendar
year, the product derived by multiplying--
``(A) the sum of the total wages paid to, and self-
employment income derived by, such individual during such
calendar year; by
``(B) 4 percent.
``(c) Designation of Investments.--
``(1) Initial designation.--
``(A) In general.--Not later than 10 days after an account
is established for an investing worker under subsection (a),
the investing worker shall designate to which investment
funds within the SAFE Investment Fund contributions to such
account under subsection (b) shall be allocated.
``(B) Default allocation.--
``(i) In general.--If no designation is made pursuant to
paragraph (1), the Board shall allocate such contributions in
accordance with the life-span investment option.
``(ii) Life-span investment option.--For purposes of this
section, the life-span investment option shall provide for
the management and investment of funds within an investing
worker's SAFE account on the basis of the age of the
investing worker in accordance with regulations established
by the Board. In establishing regulations with respect to the
life-span investment option under this subparagraph, the
Board shall consider--
``(I) with respect to the youngest investing workers,
investing 80 percent of such funds in stocks and 20 percent
of such funds in bonds; and
``(II) with respect to the oldest investing workers,
investing 35 percent of such funds in stocks and 65 percent
of such funds in bonds.
``(2) Subsequent designations.--At least twice each year,
an investing worker may redesignate the allocation of
investments funds within the SAFE Investment Fund to which
contributions with respect to such investing worker are
allocated.
``(d) Time Designation Takes Effect.--A designation under
subsection (c) shall take effect with respect to
contributions made beginning more than 14 days after the date
of the designation.
``(e) Investing Worker's Property Right in the SAFE
Account.--Each SAFE Account designated by an investing worker
is the sole property of the worker.
``(f) Form of Designations.--Designations under this
section shall be made--
``(1) on W-4 forms (or any successor forms); or
``(2) in such other manner as the Social Security
Investment Board may prescribe in order to ensure ease of
administration.
``SEC. 253. SAFE INVESTMENT FUND.
``(a) In General.--There shall be established and
maintained in the Treasury of the United States a SAFE
Investment Fund in the same manner as the Thrift Savings Fund
under sections 8437 (excluding paragraphs (4) and (5) of
subsection (c) thereof), 8438, and 8439 of title 5, United
States Code, insofar as such sections are not inconsistent
with the provisions of this part.
``(b) Investment Earnings Report.--
``(1) In general.--At least annually, the SAFE Investment
Fund shall provide to each investing worker a SAFE Investment
Status Report. Such report may be transmitted electronically
upon the agreement of the investing worker under the terms
and conditions established by the Social Security Investment
Board.
``(2) Contents of report.--The SAFE Investment Status
Report, with respect to a SAFE Account, shall provide the
following information:
``(A) The total SAFE Account contributions made in the last
quarter, the last year, and since the Account was
established.
``(B) The amount and rate of return earned for each period
described in subparagraph (A).
``(C) A projection of how much the investing worker will
have available on the date the worker attains normal
retirement age if such contributions and earnings continue at
the same rate during the remaining period ending with such
date.
``(c) Maximum Administrative Fee.--The SAFE Investment Fund
shall charge each investing worker in the Fund a single,
uniform annual administrative fee not to exceed 0.57 percent
of the value of the assets invested in the worker's SAFE
Account.
``SEC. 254. DISTRIBUTIONS.
``(a) Date of Initial Distribution.--Except as provided in
subsection (b)(4), distributions may only be made from a SAFE
Account of an investing worker on and after the earliest of--
``(1) the date the investing worker attains normal
retirement age, as determined under section 216; or
``(2) the date on which funds in the investing worker's
SAFE Account are sufficient to transfer to the Federal Old-
Age and Survivors Insurance Trust Fund--
``(A) an amount equal to the old-age insurance amount (as
calculated under subsection (b)(1)(B)); and
``(B) an amount equal to the survivor's insurance amount
(as calculated under subsection (b)(2)(B)).
``(b) Form of Distribution.--
``(1) Federal annuity payment.--
``(A) In general.--On the date determined under subsection
(a), so much of the balance in an investing worker's SAFE
Account as does not exceed the old-age insurance amount shall
be transferred to the Federal Old-Age and Survivors Insurance
Trust Fund and the investing worker shall be entitled to a
Federal annuity payment.
``(B) Old-age insurance amount.--For purposes of this
section, the old-age insurance amount is an amount which is
sufficient to provide a Federal annuity payment which, when
added to the investing worker's monthly benefit under part A,
is equal to one-twelfth of 135 percent of the poverty line
(as defined in section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2))).
``(C) Federal annuity payment.--For purposes of this
section, the term `Federal annuity payment' means a monthly
payment from the Federal Old-Age and Survivors Insurance
Trust Fund in an amount determined by the Social Security
Investment Board based on the amount transferred to the
Federal Old-Age and Survivors Insurance Trust Fund under
subparagraph (A) and the life expectancy of the investing
worker (determined under reasonable actuarial assumptions).
``(2) Family or survivor benefits for related
individuals.--
``(A) In general.--On the date determined under subsection
(a), in the case of an investing worker whose SAFE Account
has funds in excess of the amount required to be transferred
under paragraph (1)(A), so much of such excess funds as does
not exceed the survivor's insurance amount shall be
transferred to the Federal Old-Age and Survivors Insurance
Trust Fund and any related individual shall be entitled to a
survivor's payment at the time such related individual meets
the applicable requirements for a monthly payment under
section 202.
``(B) Survivor's insurance amount.--For purposes of this
section, the survivor's insurance amount is an amount,
determined by the Social Security Investment Board under
rules established by such Board, which is sufficient to
provide survivor's payments to all related individuals.
``(C) Survivor's payment.--For purposes of this section,
the term `survivor's payment' means a monthly payment from
the Federal Old-Age and Survivors Insurance Trust Fund in an
amount which, when added to such related individual's monthly
benefit (or projected monthly benefit) under this title, is
equal to the benefit such related individual would be
entitled to under section 202 if the investing worker had
waived the application of this part.
``(D) Related individual.--For purposes of this section,
the term `related individual' means, with respect to an
investing worker, any individual entitled to benefits under
section 202 based on the wages or self-employment income of
such worker.
``(3) Payment of excess safe account funds.--To the extent
funds remain in an investing worker's SAFE Account after the
transfer required under paragraphs (1) and (2), such excess
assets shall be payable to the worker in such manner and in
such amounts as determined by the worker.
``(4) Distribution in the event of death.--If the investing
worker dies before the date determined under subsection (a),
the balance in the worker's SAFE Account shall be distributed
in the following manner:
``(A) Not more than an amount equal to the survivor's
insurance amount shall be transferred to the Federal Old-Age
and Survivors Insurance Trust Fund.
``(B) The remainder (if any) shall be distributed in a lump
sum, under rules established by the Social Security
Investment Board, to the investing worker's estate, subject
to applicable State laws.
``SEC. 255. SOCIAL SECURITY INVESTMENT BOARD.
``(a) Establishment.--There is established within the
Social Security Administration a Social Security Investment
Board (in this Act referred to as the `Board').
``(b) Composition.--The Board shall be composed of--
``(1) 2 members from the private sector appointed by the
President, of whom 1 shall be designated by the President as
Chairman;
``(2) the Secretary of the Treasury;
``(3) the Chairman of the Federal Reserve Board; and
``(4) the Chairman of the Securities and Exchange
Commission.
``(c) Advice and Consent.--Appointments under subsection
(b)(1) shall be made by and with the advice and consent of
the Senate.
``(d) Membership Requirements.--Members of the Board
appointed under subsection (b)(1) shall have substantial
experience, training, and expertise in finance, investments,
or insurance.
``(e) Length of Appointments.--
``(1) Terms.--A member of the Board appointed under
subsection (b)(1) shall be appointed for a term of 6 years,
except that of the members first appointed under subsection
(b)(1)--
``(A) the Chairman shall be appointed for a term of 6
years; and
``(B) the remaining member shall be appointed for a term of
3 years.
``(2) Vacancies.--
``(A) In general.--A vacancy on the Board shall be filled
in the manner in which the original appointment was made and
shall be subject to any conditions that applied with respect
to the original appointment.
``(B) Completion of term.--An individual chosen to fill a
vacancy shall be appointed for the unexpired term of the
member replaced.
[[Page S2168]]
``(3) Expiration.--The term of any member shall not expire
before the earlier of--
``(A) the date on which the member's successor takes
office; or
``(B) 1 year after the member's term is scheduled to
expire.
``(f) Duties.--The Board shall--
``(1) maintain SAFE Accounts and the SAFE Investment Fund
in the same manner as the Thrift Savings Accounts and the
Thrift Savings Fund are maintained by the Thrift Savings
Board;
``(2) review and approve the budget of the Board;
``(3) establish policies for the administration of this
part; and
``(4) carry out any other duties specified under this part.
``(g) Administrative Provisions.--
``(1) In general.--The Board may--
``(A) adopt, alter, and use a seal;
``(B) direct the Executive Director to take such action as
the Board considers appropriate to carry out the provisions
of this part and the policies of the Board;
``(C) upon the concurring votes of 4 members, remove the
Executive Director from office for good cause shown; and
``(D) take such other actions as may be necessary to carry
out the functions of the Board.
``(2) Meetings.--The Board shall meet--
``(A) not less than once each month; and
``(B) at additional times at the call of the Chairman.
``(3) Exercise of powers.--
``(A) In general.--Except as provided in paragraph (1)(C),
the Board shall perform the functions and exercise the powers
of the Board on a majority vote of a quorum of the Board.
Three members of the Board shall constitute a quorum for the
transaction of business.
``(B) Vacancies.--A vacancy on the Board shall not impair
the authority of a quorum of the Board to perform the
functions and exercise the powers of the Board.
``(h) Compensation.--
``(1) In general.--Each member of the Board who is not an
officer or employee of the Federal Government shall be
compensated at the daily rate of basic pay for level IV of
the Executive Schedule for each day during which such member
is engaged in performing a function of the Board.
``(2) Expenses.--A member of the Board shall be paid
travel, per diem, and other necessary expenses under
subchapter I of chapter 57 of title 5, United States Code,
while traveling away from such member's home or regular place
of business in the performance of the duties of the Board.
``(i) Appointment of Executive Director.--
``(1) In general.--The Board shall appoint, without regard
to the provisions of law governing appointments in the
competitive service, an Executive Director by action agreed
to by a majority of the members of the Board.
``(2) Requirements.--The Executive Director shall have
substantial experience, training, and expertise in finance,
investments, and insurance.
``(3) Duties.--The Executive Director shall--
``(A) carry out the policies established by the Board;
``(B) invest and manage the SAFE Investment Fund in
accordance with the investment policies established by the
Board;
``(C) administer the provisions this part; and
``(D) prescribe such regulations (other than regulations
relating to fiduciary responsibilities) as may be necessary
for the administration of this part.
``(4) Administrative authority.--The Executive Director
may--
``(A) appoint such personnel as may be necessary to carry
out the provisions of this part;
``(B) subject to approval by the Board, procure the
services of experts and consultants under section 3109 of
title 5, United States Code;
``(C) secure directly from an executive agency, the United
States Postal Service, or the Postal Rate Commission any
information necessary to carry out the provisions of such
part and the policies of the Board;
``(D) make such payments out of sums described in
subsection (l) as the Executive Director determines are
necessary to carry out the provisions of such part and the
policies of the Board;
``(E) accept and use the services of individuals employed
intermittently in the Government service and reimburse such
individuals for travel expenses, as authorized by section
5703 of title 5, United States Code, including per diem as
authorized by section 5702 of such title;
``(F) except as otherwise expressly prohibited by law or
the policies of the Board, delegate any of the Executive
Director's functions to such employees under the Board as the
Executive Director may designate and authorize such
successive redelegations of such functions to such employees
under the Board as the Executive Director may consider to be
necessary or appropriate; and
``(G) take such other actions as are appropriate to carry
out the functions of the Executive Director.
``(j) Discharge of Responsibilities.--The members of the
Board shall discharge their responsibilities solely in the
interest of SAFE Account holders and beneficiaries under this
part.
``(k) Annual Independent Audit.--The Board shall annually
engage an independent qualified public accountant to audit
the activities of the Board.
``(l) Source of Funds.--Payments authorized under this
section shall be paid from administrative fees charged in
accordance with section 253(c).
``(m) Submission of Budget to Congress.--The Board shall
prepare and submit to the President, and, at the same time,
to the appropriate committees of Congress, an annual budget
of the expenses and other items relating to the Board which
shall be included as a separate item in the budget required
to be transmitted to Congress under section 1105 of title 31,
United States Code.
``(n) Submission of Legislative Recommendations.--The Board
may submit to the President, and, at the same time, shall
submit to each House of Congress, any legislative
recommendations of the Board relating to any of its functions
under this part or any other provision of law.''.
(b) Effective Date and Notice Requirements.--
(1) Effective date.--The amendments made by this section
shall apply to designations of accounts made with respect to
payroll periods beginning on or after January 1, 2007.
(2) Notice requirements.--
(A) In general.--Not later than January 1, 2007, the
Commissioner of Social Security shall--
(i) send to the last known address of each eligible
individual a description of the program established by the
amendments made by this section, that shall be written in the
form of a pamphlet in language that may be readily understood
by the average worker;
(ii) provide for toll-free access by telephone from all
localities in the United States and access by the Internet to
the Social Security Administration through which individuals
may obtain information and answers to questions regarding
such program; and
(iii) provide information to the media in all localities of
the United States about such program and such toll-free
access by telephone and access by Internet.
(B) Eligible individual.--For purposes of this paragraph,
the term ``eligible individual'' means an individual who, as
of the date of the pamphlet sent pursuant to subparagraph
(A), is indicated within the records of the Social Security
Administration as being credited with 1 or more quarters of
coverage under section 213 of the Social Security Act (42
U.S.C. 413).
(C) Matters to be included.--The Commissioner of Social
Security shall include with the pamphlet sent to each
eligible individual pursuant to subparagraph (A)--
(i) a statement of the number of quarters of coverage
indicated in the records of the Social Security
Administration as of the date of the description as credited
to such individual under section 213 of such Act and the date
as of which such records may be considered accurate; and
(ii) the number for toll-free access by telephone
established by the Commissioner pursuant to subparagraph
(A)(ii).
SEC. 102. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNTS UNDER PART
A OF TITLE II OF THE SOCIAL SECURITY ACT FOR
INVESTING WORKERS WITH SAFE ACCOUNTS.
(a) In General.--Section 215 of the Social Security Act (42
U.S.C. 415) is amended by adding at the end the following:
``Adjustment of Primary Insurance Amount in Relation to Deposits Made
to SAFE Accounts
``(j)(1) Except as provided in paragraph (2), an
individual's primary insurance amount as determined in
accordance with this section (before adjustments made under
subsection (i)) shall be equal to--
``(A) the amount which would be so determined without the
application of this subsection, multiplied by
``(B) 1 minus the ratio of--
``(i) the sum of--
``(I) the total of all amounts which have been credited
pursuant to section 252(b) to the SAFE Account held by such
individual; plus
``(II) accrued interest on such amounts compounded annually
up to the date of initial benefit entitlement based on the
earning of the individual's SAFE Account, assuming an
interest rate equal to the projected interest rate of the
Federal Old-Age and Survivors Trust Fund; to
``(ii) the expected present value of all future benefits
paid based on the individual's earnings, as of the date of
initial benefit entitlement based on such earnings, assuming
future mortality and interest rates for the Federal Old-Age
and Survivors Trust Fund used in the intermediate projections
of the most recent Board of Trustees report under section
201.
``(2) In the case of an individual who becomes entitled to
disability insurance benefits under section 223, such
individual's primary insurance amount shall be determined
without regard to paragraph (1).''.
(b) Conforming Amendment to Railroad Retirement Act of
1974.--Section 1 of the Railroad Retirement Act of 1974 (45
U.S.C. 231) is amended by adding at the end the following:
``(s) In applying applicable provisions of the Social
Security Act for purposes of determining the amount of the
annuity to which an individual is entitled under this Act,
section 215(j) of the Social Security Act and part B of title
II of such Act shall be disregarded.''.
[[Page S2169]]
(c) Effective Date.--The amendments made by this section
shall apply with respect to computations and recomputations
of primary insurance amounts occurring after December 31,
2006.
SEC. 103. TAX TREATMENT OF INVESTMENT-BASED SOCIAL SECURITY.
(a) In General.--
(1) In general.--Subchapter F of chapter 1 of the Internal
Revenue Code of 1986 (relating to exempt organizations) is
amended by adding at the end the following new part:
``PART IX--INVESTMENT-BASED SOCIAL SECURITY
``Sec. 530A. Investment-based social security.
``SEC. 530A. INVESTMENT-BASED SOCIAL SECURITY.
``(a) General Rule.--The SAFE Investment Fund and each SAFE
Account are exempt from taxation under this subtitle.
Notwithstanding the preceding sentence, a personal social
security savings account is subject to the taxes imposed by
section 511 (relating to imposition of tax on unrelated
business income of charitable, etc. organizations).
``(b) Distributions.--
``(1) Federal annuity payment.--Any Federal annuity payment
(as defined under section 254(b)(1) of the Social Security
Act) shall be treated as a social security benefit for
purposes of section 86.
``(2) Distribution of excess assets.--Any distribution from
a SAFE Account under section 254(b)(3) of the Social Security
Act shall be includible in gross income under rules under
section 72.
``(c) Definitions.--For purposes of this section--
``(1) SAFE account.--The term `SAFE Account' means an
account established under section 252(a) of the Social
Security Act.
``(2) SAFE investment fund.--The term `SAFE Investment
Fund' means the fund established under section 253 of the
Social Security Act.''.
(2) Clerical amendment.--The table of parts for subchapter
F of chapter 1 of such Code is amended by adding after the
item relating to part VIII the following new item:
``Part IX. Investment-Based Social Security.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006
SEC. 104. STUDY ON USE OF PRIVATE ANNUITIES FOR SAFE ACCOUNT
DISTRIBUTIONS.
(a) In General.--The Social Security Investment Board shall
conduct a study on the use of annuities provided by private-
sector financial institutions for the distribution of SAFE
account funds under section 254 of the Social Security Act.
(b) Report.--Not later than 3 years after the date of the
enactment of this Act, the Social Security Investment Board
shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives a report describing the results of the study
under subsection (a).
SEC. 105. STUDY REGARDING FINANCIAL LITERACY.
(a) Study.--
(1) In general.--The Social Security Investment Board shall
conduct a thorough study of all matters relating to programs
to increase the financial literacy of Americans.
(2) Matters studied.--The matters studied by the Social
Security Investment Board shall include--
(A) existing Federal and non-Federal financial literacy
programs, including a review and performance evaluation of
such programs;
(B) the coordination of existing Federal and non-Federal
financial education efforts; and
(C) ideas for new public initiatives to increase the
financial literacy of all Americans.
(b) Recommendations.--The Social Security Investment Board
shall develop recommendations on--
(1) streamlining existing financial literacy programs;
(2) increasing financial literacy for all Americans; and
(3) new avenues for public-private partnerships in
financial literacy.
(c) Report.--Not later than 6 months after the date of the
enactment of this Act, the Social Security Investment Board
shall submit a report to the President and to Congress which
shall contain a detailed statement of the findings and
conclusions of the Social Security Investment Board, together
with its recommendations for such legislation and
administrative actions as it considers appropriate.
TITLE II--DEBT-BASED SOCIAL SECURITY
Subtitle A--Adjustments
SEC. 201. MODIFICATION TO RETIREMENT AGE.
Section 215(l)(1) of the Social Security Act (42 U.S.C.
416(l)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (D);
(2) by inserting ``and before January 1, 2023,'' after
``December 31, 2021,'' in subparagraph (E);
(3) by striking the period at the end of subparagraph (E)
and by inserting ``; and''; and
(4) by adding at the end the following:
``(F) with respect to an individual who attains early
retirement age after December 31, 2022, 68 years of age.''.
SEC. 202. MODIFICATION OF PIA FACTORS TO REFLECT CHANGES IN
LIFE EXPECTANCY.
Section 215(a)(1) of the Social Security Act (42 U.S.C.
415(a)(1)(B)) is amended by redesignating subparagraph (D) as
subparagraph (F) and by inserting after subparagraph (C) the
following:
``(D)(i) For individuals who initially become eligible for
old-age insurance benefits in any calendar year after 2023,
each of the percentages under clauses (i), (ii), and (iii) of
subparagraph (A) shall be multiplied by the applicable factor
for such year with respect to each year after 2023 and before
the year following the year of initial eligibility.
``(ii) For purposes of clause (i), the term `applicable
factor' means the actuarial number, expressed as a percentage
and determined by the Commissioner of Social Security after
taking into account the actuarial reduction under section
202(q) (without regard to the amendments made by section 203
of the Saving Social Security Act of 2005), representing the
historical increase in longevity of life for the most recent
year .
``(E) For any individual who initially becomes eligible for
disability insurance benefits in any calendar year after
2023, the primary insurance amount for such individual shall
be equal to the greater of--
``(i) such amount as determined under this paragraph, or
``(ii) such amount as determined under this paragraph
without regard to subparagraph (D) thereof.''.
SEC. 203. ACTUARIAL ADJUSTMENT FOR RETIREMENTS.
(a) In General.--Section 202(q) of the Social Security Act
(42 U.S.C. 402(q)) is amended--
(1) in paragraph (1)(A), by striking ``\5/9\'' and
inserting ``the applicable old-age benefit fraction
(determined under paragraph (12)(A))'', and by striking
``\25/36\'' and inserting ``the applicable spousal benefit
fraction (determined under paragraph (12)(B))''; and
(2) by adding at the end the following:
``(12) For purposes of paragraph (1)(A)--
``(A) the `applicable old-age benefit fraction' for an
individual who attains the age of 62 in--
``(i) any year before 2024, is \5/9\;
``(ii) 2024, is \7/12\;
``(iii) 2025, is \11/18\;
``(iv) 2026, is \23/36\;
``(v) 2027, is \2/3\; and
``(vi) 2028 or any succeeding year, is \25/36\; and
``(B) the `applicable spousal benefit fraction' for an
individual who becomes eligible for wife's or husband's
insurance benefits in--
``(i) any year before 2024, is \25/36\;
``(ii) 2024, is \13/18\;
``(iii) 2025, is \27/36\;
``(iv) 2026, is \7/9\;
``(v) 2027, is \29/36\; and
``(vi) 2028 or any succeeding year, is \5/6\.''.
(b) Months Beyond First 36 Months.--Section 202(q) of such
Act (42 U.S.C. 402(q)) (as amended by subsection (a)) is
amended--
(1) in paragraph (9)(A), by striking ``five-twelfths'' and
inserting ``the applicable fraction (determined under
paragraph (13))''; and
(2) by adding at the end the following:
``(13) For purposes of paragraph (9)(A), the `applicable
fraction' for an individual who becomes eligible for old-age,
wife's, or husband's insurance benefits in--
``(A) any year before 2024, is \5/12\;
``(B) 2024, is \16/36\;
``(C) 2025, is \16/36\;
``(D) 2026, is \17/36\;
``(E) 2027, is \17/36\; and
``(F) 2028 or any succeeding year, is \1/2\.''.
(c) Eligibility.--Section 202(q) of such Act (as amended by
the preceding provisions of this section) is amended further
by adding at the end the following new paragraph:
``(14) For purposes of this subsection, an individual shall
be deemed eligible for a benefit for a month if, upon filing
application therefor in such month, such individual would be
entitled to such benefit for such month.''.
(d) Effective Date.--The amendments made by this subsection
shall apply to individuals who, in connection with old-age,
wife's, and husband's insurance benefits under title II of
the Social Security Act, become eligible for such benefits
(within the meaning of section 202(q)(14) of such Act (as
amended by this subsection)) in years after 2023.
Subtitle B--Maintenance of Social Security Trust Funds
SEC. 211. MAINTENANCE OF ADEQUATE BALANCES IN THE SOCIAL
SECURITY TRUST FUNDS.
(a) In General.--Section 201 of the Social Security Act (42
U.S.C. 401) is amended by adding at the end the following new
subsection:
``(o) In addition to amounts otherwise appropriated under
the preceding provisions of this section to the Trust Funds
established under this section, there is hereby appropriated
for each fiscal year to each of such Trust Funds, from
amounts in the general fund of the Treasury not otherwise
appropriated, such sums as may be necessary from time to time
to maintain the balance ratio (as defined in section 709(b))
of such Trust Fund, for the calendar year commencing during
such fiscal year, at not less than 100 percent. The sums to
be appropriated under the preceding sentence shall be
determined by the Commissioner of Social Security and
certified by the Commissioner to each House of the Congress
not later than October 1 of such fiscal year. In making such
determination and certification, the Commissioner shall use
the intermediate actuarial assumptions used by the Board of
Trustees of the
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Trust Funds in its most recent annual report to the Congress
prepared pursuant to subsection (c)(2). The Commissioner
shall also transmit a copy of any such certification to the
Secretary of the Treasury, and upon receipt thereof, such
Secretary shall promptly take appropriate actions in
accordance with the certification.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to fiscal years beginning after the
date of the enactment of this Act.
______
By Mr. DORGAN (for himself, Mr. Smith, Mrs. Murray, Ms. Cantwell,
Mr. Johnson, and Mr. Harkin):
S. 542. A bill to amend the Internal Revenue code of 1986 to extend
for 5 years the credit for electricity produced from certain renewable
resources, and for other purposes; to the Committee on Finance.
Mr. DORGAN. Mr. President, today I am joined by Senator Smith of
Oregon and several of our colleagues in introducing legislation to
extend the soon-to-expire tax credits in Federal law that incentivize
the development and use of renewable energy.
Mr. President, as you know, Federal policymakers have been working
over the past couple of years to pass comprehensive energy reforms that
will encourage greater domestic energy production, increase energy
efficiency and improve the nation's overall energy security by reducing
our dependence on imported sources of energy.
This country imports more than 60 percent of its oil from abroad, and
Americans have watched as oil and gas prices--and their energy bills--
have skyrocketed, in large part due to the threat of disruptions to
energy supplies in volatile regions of the Middle East. The evidence
also suggests that the United States is ramping up its demand for
imported natural gas. At a recent Senate Energy Subcommittee hearing,
for example, we heard about plans to build thirty-one new liquefied
natural gas terminals in this country. The reason for this activity is
that the United States is projected to import about 28 percent of our
natural gas supply by the year 2025. Clearly, something must be done to
reduce our reliance on energy imports. I hope that we will complete
work on a comprehensive energy bill in this Congress that will help us
do so.
However, there are some fiscal policies already in place that will
help us move toward greater energy independence and diversity. Current
law's Federal income tax credit for facilities producing electricity
from wind and other renewable energy sources is among the most
important of these polices. In fact, we are told by energy developers
year after year that the renewable energy production tax credit, PTC,
is absolutely essential for bringing renewable energy-generated
electricity to the marketplace at a competitive rate. Today, for
example, our country has over 6,700 megawatts of wind energy capacity,
or enough electric capacity to serve about 1.6 million homes. And all
that electricity is generated on U.S. soil, producing U.S. jobs.
Last year, Congress extended the availability of the PTC and expanded
it to cover other forms of renewable energy--including geothermal and
solar. I supported this effort. However, I am frustrated that Congress
continues to undermine its own effort to develop domestic renewable
energy resources by failing to ensure that the PTC is available for a
longer term.
In North Dakota, we have abundant renewable energy resources
including wind. In fact, North Dakota's wind development potential is
so great that many energy experts call North Dakota the ``Saudi
Arabia'' of wind energy. And the PTC is critical for the continued
growth of this industry in North Dakota, Oregon, and elsewhere. But the
PTC, which is found in Section 45 of the Tax Code, is also scheduled to
expire at the end of this year.
That is why Senator Smith and I are introducing a bipartisan bill
today to extend the Section 45 tax credits for producers who place new
renewable energy facilities in service before January 1, 2011. Our
five-year extension bill also continues the indexing of the credits for
inflation and extends alternative minimum tax relief as provided under
current law. Finally, the bill includes provisions to ensure that tax-
exempt cooperatives, municipal utilities and Indian tribes can receive
the benefit of the tax credits for their investments in renewable
energy.
Billions of dollars of expected investments by the renewable energy
industry will, once again, be put on hold if we fail to extend the
credit. Inexplicably, Congress has allowed the PTC to expire three
times since its inception in 1992. When this happens, the industry
suffers a huge drop in investment and many good-paying jobs are lost.
Failing to promptly extend the credit this year will prevent new
renewable energy facilities from coming on line and lead to layoffs by
the businesses that support this industry, including wind tower and
turbine blade manufacturers.
The bottom line is that short-term extensions of the renewable energy
tax credit creates a boom and bust cycle of short-term planning,
painful layoffs and higher than necessary project costs. Financial
lenders stop providing the capital needed for wind energy projects
about 4 to 6 months before the credit is scheduled to expire because of
the uncertainty surrounding the future availability of the credit. This
uncertainty inevitably leads to a rush to complete projects at higher
costs, and those costs are passed along to consumers.
In conclusion, I will be working hard with Senator Smith and others
to get this legislation passed by the Senate as soon as possible.
Unless we act quickly, renewable energy developers will, once again, be
forced to suspend or cancel new projects that move us toward energy
independence and create significant economic opportunities for a rural
state like North Dakota.
Mr. President, I am pleased that this legislation has already been
endorsed by the American Wind Energy Association, the American Corn
Growers Association and others interested in renewable energy
development. I urge my colleagues to work with us to get this measure
enacted into law early in this session of the 109th Congress.
______
By Ms. SNOWE:
S. 543. A bill to amend the Internal Revenue Code of 1986 to expand
the availability of the cash method of accounting for small businesses,
and for other purposes; to the Committee on Finance.
Ms. SNOWE. Mr. President, I rise today to re-introduce a bill that I
offered last year that I hope will be the first in a series of
proposals to simplify the Tax Code for small business owners. Once
enacted, these provisions will reduce not only the amount of taxes that
small businesses pay, but I believe they also will reduce the
administrative burden that saddles small companies in trying to satisfy
their tax obligation.
Let me begin by saying how pleased I am that the President has made
simplifying the Tax Code one of his top priorities for his second term.
Clearly, a world-class economy such as that of the United States
requires a world-class revenue collection system, meaning we need a Tax
Code that is simple, consistent, and fair. For that reason, I look
forward to seeing the recommendations that the President's tax reform
panel will offer on how best we can reform the current Tax Code to
improve its efficiency and strengthen our overall economy.
In the interim, the proposal that I am re-introducing today will
simplify the code by permitting small business owners to use the cash
method of accounting for reporting their income if they generally earn
fewer than $10 million during the tax year. Currently, only those
taxpayers that earn less than $5 million per year are able to use the
cash method. By increasing this threshold to $10 million, more small
businesses will be relieved of the burdensome record-keeping
requirements that they must deal with currently in paying their income
taxes.
Before I talk about the specifics of this particular provision, let
me first explain why it is so critical that we simplify the Tax Code.
As you know, Mr. President, small businesses are the backbone of our
nation's economy. According to the Small Business Administration, small
businesses represent 99 percent of all employers, employ 51 percent of
the private-sector workforce, and contribute 51 percent of the private-
sector output.
Yet, the despite the fact that small businesses are the engine that
drives our improving economy, the current tax system imposes entirely
unreasonable burdens on them when they try to
[[Page S2171]]
satisfy their tax obligations. As you know, the current tax code
imposes a large, and expensive, burden on all taxpayers in terms of
satisfying their reporting and recordkeeping obligations. The problem,
though, is that small companies are disadvantaged most in terms of the
money and time spent in satisfying their tax obligation vis-a-vis
larger firms.
For example, according to the Small Business Administration's Office
of Advocacy, small businesses spend more than 8 billion hours each year
filling-out government reports, and they spend more than 80 percent of
this time on completing tax forms. What's even more troubling is that
companies that employ fewer than 20 employees spend nearly $6,975 per
employee in tax compliance costs, and this amount is nearly 60 percent
more than companies spend with more than 500 employees.
These statistics are disconcerting for several reasons. First, the
fact that small businesses are being required to spend so much money on
compliance costs means they have fewer earnings to reinvest into their
business. This, in turn, means that they have less money to spend on
new equipment or on worker training, which unfortunately has an adverse
effect on their overall production and the economy as a whole.
Second, the fact that small business owners are required to make such
a sizeable investment of their time into completing paperwork means
they have less time to spend on doing what they do best--namely running
their business and creating jobs.
Let me be clear, however, that I am in no way suggesting that small
business owners are unique in having to pay income taxes, and I am
certainly not expecting them to receive a free pass. In order to
benefit from the freedoms and protections that our great country
provides, individuals and businesses alike are required to pay taxes,
and this duty inevitably imposes some minimum administrative and
opportunity cost. What I am asking for, though, is a fairer, simpler
Tax Code that allows small companies to satisfy this obligation without
having to expend the amount of resources that they do currently.
For that reason, the package of proposals that I hope to introduce
will provide not only targeted, affordable tax relief to small business
owners, but they also will simplify the rules that exist currently. By
simplifying the Tax Code, small business owners will be able to satisfy
their tax obligation in a cheaper, more efficient manner, and they
consequently will be able to invest more time and resources into their
business.
As I mentioned earlier, the provision that I am introducing today
will permit more taxpayers to use the cash method of accounting rather
than the accrual method. Generally, current law permits only those
taxpayers that earn fewer than $5 million in gross receipts during the
tax year to use the cash method in reporting their income. In addition,
current law precludes taxpayers that have inventory from using the cash
method. This means that thousands of small businesses that should be
entitled to report their income and expenses under the cash method of
accounting are required to follow the accrual method, which tends to
impose additional financial and administrative costs that should be
eliminated.
My bill changes these existing rules so that more small businesses
will be able to use the cash method. In short, my bill increases the
gross receipts test under current law to $10 million and indexes this
higher threshold to account for inflation. As the current $5 million
threshold is clearly outdated, it makes little sense to have such an
obsolete standard for this most important provision.
My bill also changes current law to permit those taxpayers with
inventory to qualify for the cash method of accounting. Notably,
however, my bill will not give these taxpayers an opportunity to simply
recover costs associated with these otherwise inventoriable assets in
the year of purchase. Rather, my bill will require these taxpayers to
account for such costs as if they are a material or supply that is not
incidental. This standard already exists under current law, and it is
one with which many small businesses are already familiar. As such,
this less-burdensome standard should ease the existing compliance
burden for eligible taxpayers and allow them to devote more time and
resources to their business.
Importantly, these changes will not reduce the amount of taxes a
small business pays by even one dollar. Indeed, the overall amount of
taxes a qualifying small business pays will remain the same. Rather,
this bill simply permits more taxpayers to report income and account
for costs in the year of the receipt or expenditure. Clearly, this
method is much easier and simpler for small taxpayers, and it will
reduce both their time and monetary expenditures spent on complying
with the Tax Code.
____________________