[Congressional Record Volume 151, Number 95 (Thursday, July 14, 2005)]
[Senate]
[Pages S8304-S8326]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. ALLEN (for himself and Mr. Santorum):
S. 1396. A bill to amend the Investment Company Act of 1940 to
provide incentives for small business investment, and for other
purposes; to the Committee on Banking, Housing, and Urban Affairs.
Mr. ALLEN. Mr. President, I am pleased to join with my distinguished
colleague, Senator Santorum, in introducing the Increased Capital
Access for Growing Businesses Act. The legislation would help many
small businesses address the challenge of accessing capital as they
look to grow, develop and create more jobs.
I would like to share with colleagues in the Senate why this
legislation is necessary and desirable to update our securities laws
for entrepreneurial small business owners. In 1980, Congress passed
legislation, the Small Business Investment Incentive Act, which
authorized business development companies, or BDCs, to provide
financing to small, developing or financially troubled companies.
Congress recognized the importance of small businesses to the U.S.
economy and that such businesses may have a more difficult time
obtaining needed capital to grow and develop.
BDCs are publicly traded companies that are required to have 70
percent of their assets invested in eligible assets, or eligible
portfolio companies, which are generally to be securities of small
developing or financially troubled businesses. In 1980, the definition
of a small company for the purposes of a BDC's 70 percent of asset
category was tied to the Federal Reserve's rules defining marginable
securities. At the time, about two-thirds or 8,000 publicly traded
companies were not marginable and were therefore eligible investments
for BDCs.
However, there was an unintended consequence of tying the definition
of small company to those issuers that do not have marginable
securities--the margin rules have been changed several times, which
significantly reduced the number of public companies in which BDCs
could invest. This was obviously not the original intent of Congress,
but the practical impact was that many small, public companies became
ineligible to receive BDC financing, even if they could not receive
more traditional sources of financing.
Recently, the disqualification of any private company that had issued
any debt security has significantly narrowed even further the number of
companies that qualify as eligible portfolio companies. Thus, for the
first time many companies with no access to the public equity markets
cannot access capital through a BDC. These companies are either denied
capital access altogether, or are forced to turn to various unregulated
sources to meet capital needs. This situation is unfair to the
shareholders of BDCs, and unfair to the shareholders of businesses that
could grow if only offered capital access opportunities.
That is why this legislation is so important. It will allow more
small private and public companies to receive BDC financing and restore
the original intent of Congress.
Specifically, the legislation would use a market capitalization
standard of $250 million or less to define what is an eligible
portfolio company for BDCs. The $250 million market capitalization
level approximates the number of public companies that Congress
originally intended to qualify as eligible BDC assets. I would note
that it is also much lower than the market capitalization levels of
small cap indexes, such as the S&P SmallCap 600, which uses a market
cap of $300 million to $1 billion for a definition of a small company.
This legislation adds no costs or risks to the government or
taxpayers. It will simply correct the unintended consequences of
current rules and update the securities laws to allow more small
businesses to access capital. This will in turn encourage small
business growth, job creation and economic expansion.
That is why, earlier this year the House of Representatives
unanimously passed similar legislation to modernize U.S. securities
laws and allow more small businesses to be eligible for such financing.
I urge my colleagues in the Senate to join me in supporting this
common-sense legislation for small businesses in America.
______
By Mr. LIEBERMAN (for himself, Mrs. Clinton, Mr. Nelson of
Florida, Mr. Reed, and Mr. Salazar):
S. 1397. A bill to amend title 10, United States Code, to provide for
an increase in the minimum end-strength level for active duty personnel
for the United States Army, and for other purposes; to the Committee on
Armed Services.
Mr. LIEBERMAN. Mr. President, I ask unanimous consent that the text
of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
[[Page S8305]]
S. 1397
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 ``United States Army Relief
Act of 2005''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The 2004 National Military Strategy of the United
States assigns the Army the task of operating with the other
Armed Forces to provide for homeland defense, deter
aggression forward from and in four different regions around
the world, conduct military operations in two overlapping but
geographically disparate major campaigns, and win decisively
in one of those campaigns before shifting focus to the next
one.
(2) The Chairman of the Joint Chiefs of Staff, General
Richard Myers, has directed that the Army must be able to
``win decisively'' in one theater, even when it is committed
to a number of other contingencies.
(3) While Congress lauds the current efforts by the
Administration to reduce demands upon ground forces by
continuing to pursue the transformation of the United States
military as a whole, the recent experiences of the Army in
Iraq serve to underscore the fact that there is, as of yet,
no substitute for having sufficient troops to conduct
personnel-intensive post-conflict missions.
(4) The current force requirements posed by the ongoing
operations in Iraq, Afghanistan, and elsewhere as part of the
Global War on Terror are unsustainable for the long term and
undermine the ability of the United States military to
successfully execute the National Military Strategy.
(5) Although the burden may be a heavy one, we as a nation
and as a people must not, will not, shy away from our
engagement in world affairs to defend our interests and to
defend those who are themselves defenseless.
(6) Our engagement in Afghanistan, Iraq, and the greater
Middle East is, as Secretary of State Condoleezza Rice
stated, a ``generational'' one.
(7) Although our commitments in this region--and around the
world--are vital, the Army has been ``overused'' according to
the Chief of the United States Army Reserve.
(8) The Army currently has approximately 499,000 active
duty troops, and these are backed up by nearly 700,000
members of the Army National Guard and the Army Reserve.
(9) This number is a third less than the force level on
hand when the first Persian Gulf War was fought in 1991.
(10) Approximately 150,000 of these troops are in Iraq.
Nearly 10,000 troops are in Afghanistan. 1,700 serve in
Kosovo. 37,000 serve on the Korean peninsula.
(11) As of 2005 the relationship between the total number
of troops and the number of operationally deployed troops has
resulted, as the commanding general of the 18th Corps of the
Army at Fort Bragg remarked in 2004, in an active-duty force
that is ``stretched extraordinarily thin.''
(12) A former Army Deputy Chief of Staff has stated that in
light of the growing operational demands upon it in the
strategic environment after September 11, 2001, that the Army
``is too small to do its current missions''.
(13) That former Army Deputy Chief of Staff further stated
that the current size of the Army, coupled with the current
demands upon it, has resulted in a loss of ``the resiliency
to provide either strategic balance--what you need if some
other thing flares up--or to be able to give a respite as the
troops rotate back from overseas areas where they've been in
combat.''
(14) In its attempts to fulfill its missions with too few
troops, the Army has risked ``damaging'' the force
significantly or ``even breaking it in the next five years'',
according to a division commander during Operation Desert
Storm.
(15) In a December 2004 letter to the Chief of Staff,
United States Army, the Chief of the United States Army
Reserve wrote that ``the current demands'' of operations in
the Middle East were ``spreading the Reserve force too thin''
and that his command ``was in grave danger'' of being unable
to meet other missions abroad or domestically, and that the
Army Reserve was ``rapidly degenerating into a `broken force'
''.
(16) The letter referred to in paragraph (15) was intended,
the Chief of the United States Army Reserve wrote, not ``to
sound alarmist . . . [but] . . . to send a clear,
distinctive, signal of deepening concern'' to his superiors.
(17) In addition to hampering the ability of the Army to
successfully complete the missions assigned to it, this
``overuse'' has significant consequences for domestic
homeland security operations.
(18) A disproportionate number of Federal, State, and local
first responders are also members of the National Guard or
Reserve.
(19) At a time of strain for large municipalities
struggling to secure their infrastructure against the threat
of terrorism, the drain on available personnel as well as
budgets is unacceptable.
(20) An increase of the end-strength of the Army is in the
best interests of the people of the United States and their
interests abroad, and is consistent with the duties and
obligations of Congress as set forth in the Constitution.
(21) An increase of 100,000 troops over the permanently
authorized level for the Army for fiscal year 2004 of 482,000
troops will provide a long-term, lasting solution to the
current operational constraints and future mission
requirements of the Army.
(22) Progress was made toward that solution when Congress
authorized an increase of 20,000 troops in the end-strength
of the Army for fiscal year 2005 in the Ronald W. Reagan
National Defense Authorization Act for Fiscal Year 2005
(Public Law 108-375).
(23) An increase in the permanent authorized end-strength
for the Army of 80,000 troops is required to meet the
100,000-troop increase level that will provide a lasting,
long-term solution to personnel problems currently being
experienced by the Army.
(24) This number will equip the Army with sufficient
personnel so that it may not only engage in a stabilization
operation like Iraq, but so that it may do so while
maintaining optimal troop rotation schedules.
(25) This conclusion is supported by the November 2003
testimony of the Director of the Congressional Budget Office,
Douglas Holtz-Eakin, before the Committee on Armed Services
of the House of Representatives.
SEC. 3. INCREASE IN END-STRENGTH FOR THE ARMY.
Section 691 of title 10, United States Code, is amended by
adding at the end the following new subsection:
``(e) Notwithstanding subsection (b)(1), the authorization
for the number of members of the Army at the end of each
fiscal year as follows shall be not less than the number
specified for such fiscal year:
``(1) Fiscal year 2006, 522,400.
``(2) Fiscal year 2007, 542,400.
``(3) Fiscal year 2008, 562,400.
``(4) Fiscal year 2009, 582,400.
``(5) Any fiscal year after fiscal year 2009, 582,400.''.
______
By Mr. FEINGOLD:
S. 1398. A bill to provide more rigorous requirements with respect to
ethics and lobbying; to the Committee on Homeland Security and
Government Affairs.
Title I--Enhancing Lobbying Disclosure
Section 101: Requires lobbying disclosure reports to be
filed quarterly rather than semiannually and adjusts monetary
thresholds accordingly.
Section 102: Requires lobbying disclosure reports to be
filed in electronic form.
Section 103: Directs the Secretary of the Senate and the
Clerk of the House of Representatives to create a searchable,
sortable, and downloadable public database that contains the
information disclosed in lobbying disclosure reports.
Section 104: Requires registered lobbyists to provide, in
the section of their quarterly reports in which the issues or
bills on which they lobbied are listed, the names of all
senior executive branch officials and Members of Congress who
they communicated with orally and the dates on which such
communications occurred.
Section 105: Mandates that registered lobbyists must
disclose all past executive and congressional employment, not
just such employment during the two years prior to making a
lobbying contact.
Section 106: Requires lobbyists to disclose in their
quarterly reports how much they spent on grassroots lobbying
efforts.
Section 107: Provides more transparency for lobbying
coalitions, by requiring such organizations to disclose those
individuals or entities whose total contribution to the
association in connection with lobbying activities exceeds
$10,000. Certain tax-exempt associations are not covered by
this new requirement.
Section 108: Doubles the penalty for failing to comply with
lobbying disclosure requirements from $50,000 to $100,000.
Title II--Slowing the Revolving Door
Section 201: Amends 18 U.S.C. Sec. 207, the section of the
criminal code that provides restrictions on lobbying by
former executive and legislative branch employees, to
establish the following restrictions:
1. Senior executive employees, those paid at 86.5 percent
of level II of the Executive Schedule are prohibited from
making communications or appearances with the intent to
influence any employee of their former agencies for two
years. The current ``cooling off period'' is one year.
2. Very senior executive employees, the Vice President and
those paid at level I of the Executive Schedule, such as
cabinet officers and heads of agencies, are prohibited from
engaging in ``lobbying activities,'' as defined in section 3,
subsection 7 of the Lobbying Disclosure Act of 1995, for a
two-year period; with respect to their former agency or to
any employee currently paid under the Executive Schedule.
Under the LDA, lobbying activities include not only direct
lobbying contacts, but activities such as providing advice,
strategy, or preparation in connection with such contacts.
3. Members of Congress are prohibited from engaging in
lobbying activities relating to either House of Congress for
two years. This will prevent a former member from directing
or managing a lobbying campaign while avoiding personal
lobbying contacts.
4. Senior congressional staff, those making 75 percent of a
Member's salary, are prohibited from making appearances or
communications with the intent to influence any employee of
the House of Congress that formerly employed them for two
years. Current law prohibits contacts with the former
employing office or committee for only one year.
Section 202: Requires the establishment of uniform
regulations regarding the standards
[[Page S8306]]
by which waivers on seeking employment by executive branch
officials are granted and requires the Executive branch to
publish waivers that have been granted within three business
days.
Section 203: Requires Members to publicly disclose within
three days any negotiations with prospective employers in
which a conflict of interest or the appearance of a conflict
of interest exists.
Section 204: Establishes stiffer penalties for an employee
of either House of Congress who uses his or her official
capacity to influence an employment decision or practice of
any private or public entity, except for the Congress itself.
Section 205: Reaffirms that any employee of either House
may not take official action on the basis of a prospect for
personal gain.
Section 206: Eliminates any benefits or privileges
generally granted by the House or Senate to former Members,
such as gym membership or floor privileges, for those former
Members who are registered lobbyists.
Title III--Curbing Excesses in Privately Funded Travel and Lobbyist
Gifts
Section 301: Amends the ethics rules to require all
congressional employees to obtain a certification from any
party that pays for transportation or lodging permitted by
the gift rules that the trip was not planned, organized,
arranged, or financed by a registered lobbyist and that no
registered lobbyists will participate in or attend the trip
Section 302: Amends the gift rule to require Senators and
staff to publicly disclose information on any flight on a
corporate jet and requires Senators to reimburse the owner of
a corporate jet at the charter rate, instead of first class
airfare as is currently permitted. Also requires campaigns to
pay for the use of corporate jets at the charter rate.
Current FEC regulations allow campaigns to pay first class
airfare if the flight is between cities where commercial
service is available.
Section 303: Establishes maximum civil fines of $100,000,
$300,000, and $500,000 for the first, second, and third false
travel certifications, respectively
Section 304: Amends the ethics rules to require Members to
provide more detailed descriptions of all meetings, tours,
events, and outings during travel paid for by private
entities under the gift rules.
Section 305: Directs House and Senate Ethics Committees to
develop and revise guidelines on what constitute ``reasonable
expenses'' or ``reasonable expenditures'' during privately
funded travel.
Section 306: Prohibits registered lobbyists from giving
gifts to Members of Congress or congressional employees.
Exceptions are provided for gifts from relatives and personal
friends, campaign contributions, informational materials, and
items of nominal value.
Section 307: Amends the House and Senate ethics rules to
prohibit Members from accepting gifts from registered
lobbyists not permitted by Section 306.
Title IV--Oversight of Ethics and Lobbying
Section 401: Requires the Comptroller General to review the
effectiveness of lobbying oversight and to issue semiannual
reports on the topic.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1398
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 ``Lobbying
and Ethics Reform 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--ENHANCING LOBBYING DISCLOSURE
Sec. 101. Quarterly filing of lobbying disclosure reports.
Sec. 102. Electronic filing of lobbying disclosure reports.
Sec. 103. Public database of lobbying disclosure information.
Sec. 104. Identification of officials with whom lobbying contacts are
made.
Sec. 105. Disclosure by registered lobbyists of all past executive and
congressional employment.
Sec. 106. Disclosure of grassroots activities by paid lobbyists.
Sec. 107. Disclosure of lobbying activities by certain coalitions and
associations.
Sec. 108. Increased penalty for failure to comply with lobbying
disclosure requirements.
TITLE II--SLOWING THE REVOLVING DOOR
Sec. 201. Amendments to restrictions on former officers, employees, and
elected officials of the executive and legislative
branches.
Sec. 202. Reform of waiver process for acts affecting a personal
financial interest.
Sec. 203. Public disclosure by Members of Congress of employment
negotiations.
Sec. 204. Wrongfully influencing, on a partisan basis, an entity's
employment decisions or practices.
Sec. 205. Amendment to Code of Official Conduct to prohibit favoritism.
Sec. 206. Elimination of floor privileges and other perks for former
Member lobbyists.
TITLE III--CURBING EXCESSES IN PRIVATELY FUNDED TRAVEL AND LOBBYIST
GIFTS
Sec. 301. Required certification that congressional travel meets
certain conditions.
Sec. 302. Requirement of full payment and disclosure of charter
flights.
Sec. 303. False certification in connection with congressional travel.
Sec. 304. Increased disclosure of travel by Members.
Sec. 305. Guidelines respecting travel expenses.
Sec. 306. Prohibition on gifts by registered lobbyists to Members of
Congress and to congressional employees.
Sec. 307. Prohibition on members accepting gifts from lobbyists.
TITLE IV--OVERSIGHT OF ETHICS AND LOBBYING
Sec. 401. Comptroller General review and semiannual report on
activities carried out by Clerk of the House and
Secretary of the Senate under Lobbying Disclosure Act of
1995.
TITLE I--ENHANCING LOBBYING DISCLOSURE
SEC. 101. QUARTERLY FILING OF LOBBYING DISCLOSURE REPORTS.
(a) Quarterly Filing Required.--Section 5 of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1604) is amended--
(1) in subsection (a)--
(A) by striking ``Semiannual'' and inserting ``Quarterly'';
(B) by striking ``the semiannual period'' and all that
follows through ``July of each year'' and insert ``the
quarterly period beginning on the first days of January,
April, July, and October of each year''; and
(C) by striking ``such semiannual period'' and insert
``such quarterly period''; and
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking
``semiannual report'' and inserting ``quarterly report'';
(B) in paragraph (2), by striking ``semiannual filing
period'' and inserting ``quarterly period'';
(C) in paragraph (3), by striking ``semiannual period'' and
inserting ``quarterly period''; and
(D) in paragraph (4), by striking ``semiannual filing
period'' and inserting ``quarterly period''.
(b) Conforming Amendments.--
(1) Definition.--Section 3 of such Act (2 U.S.C. 1602) is
amended in paragraph (10) by striking ``six month period''
and inserting ``three-month period''.
(2) Registration.--Section 4 of such Act (2 U.S.C. 1603) is
amended--
(A) in subsection (a)(3)(A), by striking ``semiannual
period'' and inserting ``quarterly period''; and
(B) in subsection (b)(3)(A), by striking ``semiannual
period'' and inserting ``quarterly period''.
(3) Enforcement.--Section 6 of such Act (2 U.S.C. 1605) is
amended in paragraph (6) by striking ``semiannual period''
and inserting ``quarterly period''.
(4) Estimates.--Section 15 of such Act (2 U.S.C. 1610) is
amended--
(A) in subsection (a)(1), by striking ``semiannual period''
and inserting ``quarterly period''; and
(B) in subsection (b)(1), by striking ``semiannual period''
and inserting ``quarterly period''.
(5) Dollar amounts.--
(A) Section 4 of such Act (2 U.S.C. 1603) is further
amended--
(i) in subsection (a)(3)(A)(i), by striking ``$5,000'' and
inserting ``$2,500'';
(ii) in subsection (a)(3)(A)(ii), by striking ``$20,000''
and inserting ``$10,000'';
(iii) in subsection (b)(3)(A), by striking ``$10,000'' and
inserting ``$5,000''; and
(iv) in subsection (b)(4), by striking ``$10,000'' and
inserting ``$5,000''.
(B) Section 5 of such Act (2 U.S.C. 1604) is further
amended--
(i) in subsection (c)(1), by striking ``$10,000'' and
``$20,000'' and inserting ``$5,000'' and ``$10,000'',
respectively; and
(ii) in subsection (c)(2), by striking ``$10,000'' both
places such term appears and inserting ``$5,000''.
SEC. 102. ELECTRONIC FILING OF LOBBYING DISCLOSURE REPORTS.
Section 5 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1604) is further amended by adding at the end the following
new subsection:
``(d) Electronic Filing Required.--A report required to be
filed under this section shall be filed in electronic form,
in addition to any other form that may be required by the
Secretary of the Senate or the Clerk of the House of
Representatives.''.
SEC. 103. PUBLIC DATABASE OF LOBBYING DISCLOSURE INFORMATION.
(a) Database Required.--Section 6 of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1605) is further amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(9) maintain, and make available to the public over the
Internet, without a fee or
[[Page S8307]]
other access charge, in a searchable, sortable, and
downloadable manner, an electronic database that--
``(A) includes the information contained in registrations
and reports filed under this Act;
``(B) directly links the information it contains to the
information disclosed in reports filed with the Federal
Election Commission under section 304 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434); and
``(C) is searchable and sortable, at a minimum, by each of
the categories of information described in section 4(b) or
5(b).''.
(b) Availability of Reports.--Section 6 of such Act is
further amended in paragraph (4) by inserting before the
semicolon at the end the following: ``and, in the case of a
report filed in electronic form pursuant to section 5(d),
shall make such report available for public inspection over
the Internet not more than 48 hours after the report is so
filed''.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
paragraph (9) of section 6 of such Act, as added by
subsection (a).
SEC. 104. IDENTIFICATION OF OFFICIALS WITH WHOM LOBBYING
CONTACTS ARE MADE.
Section 5 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1604) is further amended in subsection (b)(2)--
(1) by redesignating subparagraphs (B) through (D) as
subparagraphs (C) through (E), respectively; and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) for each specific issue listed pursuant to
subparagraph (A), a list identifying each covered executive
branch official and each Member of Congress with whom a
lobbyist employed by the registrant engaged in a lobbying
contact through oral communication with respect to that issue
and the date on which each such contact occurred.''.
SEC. 105. DISCLOSURE BY REGISTERED LOBBYISTS OF ALL PAST
EXECUTIVE AND CONGRESSIONAL EMPLOYMENT.
Section 4 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1603) is further amended in subsection (b)(6) by striking
``or a covered legislative branch official'' and all that
follows through ``as a lobbyist on behalf of the client,''
and inserting ``or a covered legislative branch official,''.
SEC. 106. DISCLOSURE OF GRASSROOTS ACTIVITIES BY PAID
LOBBYISTS.
(a) Disclosure of Grassroots Activities.--Section 3 of the
Lobbying Disclosure Act of 1995 (2 U.S.C. 1602) is further
amended by adding at the end the following new paragraph:
``(17) Grassroots lobbying communication.--The term
`grassroots lobbying communication' means an attempt to
influence legislation or executive action through the use of
mass communications directed to the general public and
designed to encourage recipients to take specific action with
respect to legislation or executive action, except that such
term does not include any communications by an entity
directed to its members, employees, officers, or
shareholders. For purposes of this paragraph, a communication
is designed to encourage a recipient if any of the following
applies:
``(A) The communication states that the recipient should
contact a legislator, or should contact an officer or
employee of an executive agency.
``(B) The communication provides the address, phone number,
and contact information of a legislator or of an officer or
employee of an executive agency.
``(C) The communication provides a petition, tear-off
postcard, or similar material for the recipient to send to a
legislator or to an officer or employee of an executive
agency.
``(D)(i) Subject to clause (ii), the communication
specifically identifies an individual who--
``(I) is in a position to consider or vote on the
legislation;
``(II) represents the recipient in Congress; or
``(III) is an officer or employee of the executive agency
to which the legislation or executive action relates.
``(ii) A communication described in clause (i) is a
grassroots lobbying communication only if it is a
communication that cannot meet the `full and fair exposition'
test as nonpartisan analysis, study, or research.''.
(b) Separate Itemization of Grassroots Expenses.--Section 5
of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1604) is
further amended in subsection (b)--
(1) in paragraph (3), by inserting after ``total amount of
all income'' the following: ``(including an itemization of
the total amount relating specifically to grassroots lobbying
communications and, within that amount, an itemization of the
total amount specifically relating to broadcast media
grassroots lobbying communications)''; and
(2) in paragraph (4), by inserting after ``total expenses''
the following: ``(including an itemization of the total
amount relating specifically to grassroots lobbying
communications and, within that total amount, an itemization
of the total amount specifically relating to broadcast media
grassroots lobbying communications)''.
SEC. 107. DISCLOSURE OF LOBBYING ACTIVITIES BY CERTAIN
COALITIONS AND ASSOCIATIONS.
(a) In General.--Paragraph (2) of section 3 of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1602) is amended to read as
follows:
``(2) Client.--
``(A) In general.--The term `client' means any person or
entity that employs or retains another person for financial
or other compensation to conduct lobbying activities on
behalf of that person or entity. A person or entity whose
employees act as lobbyists on its own behalf is both a client
and an employer of such employees.
``(B) Treatment of coalitions and associations.--
``(i) In general.--Except as provided in clause (ii), in
the case of a coalition or association that employs or
retains persons to conduct lobbying activities, each person,
other than an individual who is a member of the coalition or
association, whose total contribution to the coalition or
association in connection with the lobbying activities
exceeds the $10,000 registration threshold described in
section 4(a)(3)(A)(ii) of this Act, is the client along with
the coalition or association.
``(ii) Exception for certain tax-exempt associations.--In
case of an association--
``(I) which is described in paragraph (3) of section 501(c)
of the Internal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code, or
``(II) which is described in any other paragraph of section
501(c) of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code and which has
substantial exempt activities other than lobbying,
the association (and not its members) shall be treated as the
client.
``(iii) Look-thru rules.--A coalition or association and
its members, which would otherwise be treated as a client,
shall not avoid the registration and reporting requirements
of this Act by employing or retaining another coalition or
association to conduct lobbying activities.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to--
(A) coalitions and associations listed on registration
statements filed under section 4 of the Lobbying Disclosure
Act of 1995 (2 U.S.C. 1603) after the date of the enactment
of this Act, and
(B) coalitions and associations for whom any lobbying
contact is made after the date of the enactment of this Act.
(2) Special rule.--In the case of any coalition or
association to which the amendments made by this Act apply by
reason of paragraph (1)(B), the person required by such
section 4 to file a registration statement with respect to
such coalition or association shall file a new registration
statement within 30 days after the date of the enactment of
this Act.
SEC. 108. INCREASED PENALTY FOR FAILURE TO COMPLY WITH
LOBBYING DISCLOSURE REQUIREMENTS.
Section 7 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1606) is amended by striking ``$50,000'' and inserting
``$100,000''.
TITLE II--SLOWING THE REVOLVING DOOR
SEC. 201. AMENDMENTS TO RESTRICTIONS ON FORMER OFFICERS,
EMPLOYEES, AND ELECTED OFFICIALS OF THE
EXECUTIVE AND LEGISLATIVE BRANCHES.
(a) Very Senior Executive Personnel.--
(1) In general.--The matter after subparagraph (C) in
section 207(d)(1) of title 18, United States Code, is amended
to read as follows:
``and who, within 2 years after the termination of that
person's service in that position, engages in lobbying
activities directed at any person described in paragraph (2),
on behalf of any other person (except the United States),
shall be punished as provided in section 216 of this
title.''.
(2) Conforming amendment.--The first sentence of section
207(h)(1) of title 18, United States Code, is amended by
inserting after ``subsection (c)'' the following: ``and
subsection (d)''.
(b) Senior Executive Personnel.--Section 207(c)(1) of title
18, United States Code, is amended by striking ``within 1
year after'' and inserting ``within 2 years after''.
(c) Former Members of Congress and Officers and Employees
of the Legislative Branch.--
(1) In general.--Section 207(e) of title 18, United States
Code, is amended--
(A) by striking paragraphs (1), (2), (3), and (4) and
inserting the following:
``(1) Members of congress and elected officers.--Any person
who is a Member of Congress or an elected officer of either
House of Congress and who, within 2 years after that person
leaves office, knowingly engages in lobbying activities on
behalf of any other person (except the United States) in
connection with any matter on which such former Member of
Congress or elected officer seeks action by a Member,
officer, or employee of either House of Congress shall be
punished as provided in section 216 of this title.
``(2) Congressional employees.--
``(A) In general.--Any person who is an employee of the
Senate or an employee of the House of Representatives, who,
for at least 60 days, in the aggregate, during the 1-year
period before the termination of employment of that person
with the Senate or House of Representatives, was paid a rate
of basic pay equal to or greater than an amount which is 75
percent of the basic rate of pay payable for a Member of the
House of Congress in which such employee was employed,
[[Page S8308]]
within 2 years after termination of such employment,
knowingly makes, with the intent to influence, any
communication to or appearance before any of the persons
described in subparagraph (B), on behalf of any other person
(except the United States) in connection with any matter on
which such former employee seeks action by a Member, officer,
or employee of either House of Congress, in his or her
official capacity, shall be punished as provided in section
216 of this title.
``(B) Persons referred to.--The persons referred to under
subparagraph (A) with respect to appearances or
communications by a former employee are any Member, officer,
or employee of the House of Congress in which such former
employee served.''; and
(B) in paragraph (6)--
(i) in subparagraph (A), by striking ``paragraphs (2), (3),
and (4)'' and inserting ``paragraph (2)''; and
(ii) in subparagraph (B), by striking ``paragraph (5)'' and
inserting ``paragraph (3)'';
(C) in paragraph (7)(G), by striking ``, (2), (3), or (4)''
and inserting ``or (2)''; and
(D) by redesignating paragraphs (5), (6), and (7) as
paragraphs (3), (4), and (5), respectively.
(2) Definition.--Section 207(i) of title 18, United States
Code, is amended--
(A) in paragraph (2), by striking ``and'' after the
semicolon;
(B) in paragraph (3), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(4) the term `lobbying activities' has the same meaning
given such term in section 3(7) of the Lobbying Disclosure
Act (2 U.S.C. 1602(7)).''.
SEC. 202. REFORM OF WAIVER PROCESS FOR ACTS AFFECTING A
PERSONAL FINANCIAL INTEREST.
Section 208 of title 18, United States Code, is amended--
(1) in subsection (b)(1)--
(A) by inserting after ``the Government official
responsible for appointment to his or her position'' the
following: ``and the Office of Government Ethics''; and
(B) by striking ``a written determination made by such
official'' and inserting ``a written determination made by
the Office of Government Ethics, after consultation with such
official,''; and
(2) in subsection (b)(3), by striking ``the official
responsible for the employee's appointment, after review of''
and inserting ``the Office of Government Ethics, after
consultation with the official responsible for the employee's
appointment and after review of''; and
(3) in subsection (d)(1)--
(A) by striking ``Upon request'' and all that follows
through ``Ethics in Government Act of 1978.'' and inserting
``In each case in which the Office of Government Ethics makes
a determination granting an exemption under subsection (b)(1)
or (b)(3) to a person, the Office shall, not later than 3
business days after making such determination, make available
to the public pursuant to the procedures set forth in section
105 of the Ethics in Government Act of 1978, and publish in
the Federal Register, such determination and the materials
submitted by such person in requesting such exemption.''; and
(B) by striking ``the agency may withhold'' and inserting
``the Office of Government Ethics may withhold''.
SEC. 203. PUBLIC DISCLOSURE BY MEMBERS OF CONGRESS OF
EMPLOYMENT NEGOTIATIONS.
(a) House of Representatives.--The Code of Official Conduct
set forth in rule XXIII of the Rules of the House of
Representatives is amended by redesignating clause 14 as
clause 15 and by inserting after clause 13 the following new
clause:
``14. A Member, Delegate, or Resident Commissioner shall
publicly disclose the fact that he or she is negotiating or
has any arrangement concerning prospective employment if a
conflict of interest or the appearance of a conflict of
interest may exist. Such disclosure shall be made within 3
days after the commencement of such negotiation or
arrangement.''.
(b) Senate.--Rule XXXVII of the Standing Rules of the
Senate is amended by adding at the end the following:
``13. A Member, or former employee of Congress who, for at
least 60 days, in the aggregate, during the 1-year period
before the former employer's service as such employee
terminated, was paid a rate of basic pay equal to or greater
than an amount which is 75 percent of the basic rate of pay
payable for a Member of the House of Congress in which such
employee was employed, shall publicly disclose the fact that
he or she is negotiating or has any arrangement concerning
prospective employment if a conflict of interest or the
appearance of a conflict of interest may exist. Such
disclosure shall be made within 3 days after the commencement
of such negotiation or arrangement.''.
SEC. 204. WRONGFULLY INFLUENCING, ON A PARTISAN BASIS, AN
ENTITY'S EMPLOYMENT DECISIONS OR PRACTICES.
Whoever, being a Senator or Representative in, or a
Delegate or Resident Commissioner to, the Congress or an
employee of either House of Congress, with the intent to
influence on the basis of political party affiliation an
employment decision or employment practice of any private or
public entity (except for the Congress)--
(1) takes or withholds, or offers or threatens to take or
withhold, an official act; or
(2) influences, or offers or threatens to influence, the
official act of another,
shall be fined under title 18, United States Code, or
imprisoned for not more than 15 years, or both, and may be
disqualified from holding any office of honor, trust, or
profit under the United States.
SEC. 205. AMENDMENT TO CODE OF OFFICIAL CONDUCT TO PROHIBIT
FAVORITISM.
(a) House of Representatives.--Rule XXIII of the Rules of
the House of Representatives (known as the Code of Official
Conduct) is amended by redesignating clause 14 as clause 15
and by inserting after clause 13 the following new clause:
``14. A Member, Delegate, Resident Commissioner, officer,
or employee of the House may not take or withhold, or
threaten to take or withhold, any official action on the
basis of partisan affiliation (except as permitted by clause
9) or the campaign contributions or support of any person or
the prospect of personal gain either for oneself or any other
person.''.
(b) Senate.--Rule XXXVII of the Standing Rules of the
Senate is amended by adding at the end the following:
``14. A Member, officer, or employee may not take or
withhold, or threaten to take or withhold, any official
action on the basis of partisan affiliation or the campaign
contributions or support of any person or the prospect of
personal gain either for oneself or any other person.''.
SEC. 206. ELIMINATION OF FLOOR PRIVILEGES AND OTHER PERKS FOR
FORMER MEMBER LOBBYISTS.
Notwithstanding any other rule of the House of
Representatives or Senate, any benefit or privilege granted
by the House of Representatives or the Senate to all former
Members of that body, including floor privileges, may not be
received or exercised by a former Member who is a registered
lobbyist.
TITLE III--CURBING EXCESSES IN PRIVATELY FUNDED TRAVEL AND LOBBYIST
GIFTS
SEC. 301. REQUIRED CERTIFICATION THAT CONGRESSIONAL TRAVEL
MEETS CERTAIN CONDITIONS.
(a) House of Representatives.--Clause 5 of rule XXV of the
Rules of the House of Representatives is amended by
redesignating paragraphs (e) and (f) as paragraphs (f) and
(g), respectively, and by inserting after paragraph (d) the
following new paragraph:
``(e)(1) Except as provided by subparagraph (2), before a
Member, Delegate, Resident Commissioner, officer, or employee
of the House may accept a gift of transportation or lodging
otherwise permissible under this clause from any person, such
Member, Delegate, Resident Commissioner, officer, or employee
of the House, as applicable, shall obtain a written
certification from such person (and provide a copy of such
certification to the Clerk) that--
``(A) the trip was not planned, organized, arranged, or
financed by a registered lobbyist or foreign agent and was
not organized at the request of a registered lobbyist or
foreign agent; and
``(B) the person did not accept, from any source, funds
specifically earmarked for the purpose of financing the
travel expenses.
The Clerk shall make public information received under this
subparagraph as soon as possible after it is received.
``(2) A Member, Delegate, or Resident Commissioner is not
required to obtain a written certification for a gift or
transportation or lodging described in subdivision (A), (B),
(C), (D), (F), or (G) of paragraph (a)(1).''.
(b) Senate.--Paragraph 1 of rule XXXV of the Standing Rules
of the Senate is amended by adding at the end the following:
``(g) Before a Member, officer, or employee may accept a
gift of transportation or lodging otherwise permissible under
this rule from any person, such Member, officer, or employee
shall obtain a written certification from such person (and
provide a copy of such certification to the Select Committee
on Ethics) that--
``(1) the trip was not planned, organized, arranged, or
financed by a registered lobbyist or foreign agent and was
not organized at the request of a registered lobbyist or
foreign agent;
``(2) registered lobbyists will not participate in or
attend the trip; and
``(3) the person did not accept, from any source, funds
specifically earmarked for the purpose of financing the
travel expenses.
The Select Committee on Ethics shall make public information
received under this subparagraph as soon as possible after it
is received.''.
SEC. 302. REQUIREMENT OF FULL PAYMENT AND DISCLOSURE OF
CHARTER FLIGHTS.
(a) House of Representatives.--To be provided.
(b) Senate.--
(1) In general.--Paragraph 1(c)(1) of rule XXXV of the
Standing Rules of the Senate is amended by--
(A) inserting ``(A)'' after ``(1)''; and
(B) adding at the end the following:
``(B) Market value for a jet flight on an airplane that is
not licensed by the Federal Aviation Administration to
operate for compensation or hire shall be the fair market
value of a charter flight. The Select Committee on Ethics
shall make public information received under this
subparagraph as soon as possible after it is received.''.
(2) Disclosure.--Paragraph 1 of rule XXXV of the Standing
Rules of the Senate is amended by adding at the end the
following:
``(h) A Member, officer, or employee who takes a flight
described in subparagraph
[[Page S8309]]
(c)(1)(B) shall, with respect to the flight, cause to be
published in the Congressional Record within 10 days after
the flight--
``(1) the date of the flight;
``(2) the destination of the flight;
``(3) who else was on the flight, other than those
operating the plane;
``(4) the purpose of the trip; and
``(5) the reason that a commercial airline was not used.''.
(c) Candidates.--Subparagraph (B) of section 301(8) of the
Federal Election Campaign Act of 1971 (42 U.S.C. 431(8)(B))
is amended by striking ``and'' at the end of clause (xiii),
by striking the period at the end of clause (xiv) and
inserting ``; and'', and by adding at the end the following
new clause:
``(xv) any travel expense for a flight on an airplane that
is not licensed by the Federal Aviation Administration to
operate for compensation or hire, but only if the candidate
or the candidate's authorized committee or other political
committee pays within 7 days after the date of the flight to
the owner, lessee, or other person who provides the use of
the airplane an amount not less than the normal and usual
charter fare or rental charge for a comparable commercial
airplane of appropriate size.''.
SEC. 303. FALSE CERTIFICATION IN CONNECTION WITH
CONGRESSIONAL TRAVEL.
(a) In General.--Whoever makes a false certification in
connection with the travel of a Member, officer, or employee
of either House of Congress (within the meaning given those
terms in section 207 of title 18, United States Code) shall,
upon proof of such offense by a preponderance of the
evidence, be subject to a civil fine depending on the extent
and gravity of the violation.
(b) Maximum Fine.--The maximum fine per offense under this
section depends on the number of separate trips in connection
with which the person committed an offense under this
section, as follows:
(1) First trip.--For each offense committed in connection
with the first such trip, the amount of the fine shall be not
more than $100,000 per offense.
(2) Second trip.--For each offense committed in connection
with the second such trip, the amount of the fine shall be
not more than $300,000 per offense.
(3) Any other trips.--For each offense committed in
connection with any such trip after the second, the amount of
the fine shall be not more than $500,000 per offense.
SEC. 304. INCREASED DISCLOSURE OF TRAVEL BY MEMBERS.
(a) House of Representatives.--Clause 5(b)(1)(A)(ii) of
rule XXV of the Rules of the House of Representatives is
amended by--
(1) inserting ``a detailed description of each of'' before
``the expenses''; and
(2) inserting ``, including a description of all meetings,
tours, events, and outings during such travel'' before the
period at the end thereof.
(b) Senate.--Paragraph 2(c) of rule XXXV of the Standing
Rules of the Senate is amended--
(1) in subclause (5), by striking ``and'' after the
semicolon;
(2) by redesignating subclause (6) as subclause (7); and
(3) by adding after subclause (5) the following:
``(6) a detailed description of all meetings, tours,
events, and outings during such travel; and''.
SEC. 305. GUIDELINES RESPECTING TRAVEL EXPENSES.
(a) House of Representatives.--Clause 5(f) of rule XXV of
the Rules of the House of Representatives is amended by
inserting ``(1)'' after ``(f)'' and by adding at the end the
following new subparagraph:
``(2) Within 90 days after the date of adoption of this
subparagraph and at annual intervals thereafter, the
Committee on Standards of official Conduct shall develop and
revise, as necessary, guidelines on what constitutes
`reasonable expenses' or `reasonable expenditures' for
purposes of paragraph (b)(4). In developing and revising the
guidelines, the committee shall take into account the maximum
per diem rates for official Government travel published
annually by the General Services Administration, the
Department of State, and the Department of Defense.''.
(b) Senate.--Rule XXXV of the Standing Rules of the Senate
is amended by adding at the end the following:
``(7) Not later than 90 days after the date of adoption of
this paragraph and at annual intervals thereafter, the Select
Committee on Ethics shall develop and revise, as necessary,
guidelines on what constitutes `reasonable expenses' or
`reasonable expenditures' for purposes of this rule. In
developing and revising the guidelines, the committee shall
take into account the maximum per diem rates for official
Government travel published annually by the General Services
Administration, the Department of State, and the Department
of Defense.''.
SEC. 306. PROHIBITION ON GIFTS BY REGISTERED LOBBYISTS TO
MEMBERS OF CONGRESS AND TO CONGRESSIONAL
EMPLOYEES.
(a) Prohibition.--
(1) In general.--A registered lobbyist may not knowingly
make a gift to a Member, Delegate, Resident Commissioner,
officer, or employee of Congress except as provided in this
section.
(2) Gift defined.--In this section, the term ``gift'' means
a gratuity, favor, discount, entertainment, hospitality,
loan, forbearance, or other item having monetary value. The
term includes gifts of services, training, transportation,
lodging, and meals, whether provided in kind, by purchase of
a ticket, payment in advance, or reimbursement after the
expense has been incurred.
(3) Registered lobbyist defined.--In this section, the term
``registered lobbyist'' means--
(A) a lobbyist registered under the Lobbying Disclosure Act
of 1995 (2 U.S.C. 1601 et seq.);
(B) a lobbyist who, as an employee of an organization, is
covered by the registration of that organization under that
Act; and
(C) an organization registered under that Act.
(4) Gifts to family members and other individuals.--For the
purposes of this section, a gift to a family member of a
Member, Delegate, Resident Commissioner, officer, or employee
of Congress, or a gift to any other individual based on that
individual's relationship with the Member, Delegate, Resident
Commissioner, officer, or employee, shall be considered a
gift to the Member, Delegate, Resident Commissioner, officer,
or employee if the gift was given because of the official
position of the Member, Delegate, Resident Commissioner,
officer, or employee.
(5) Exceptions.--The restrictions in paragraph (1) do not
apply to the following:
(A) Certain lawful political fundraising activities.--A
contribution, as defined in section 301(8) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431) that is lawfully
made under that Act, a lawful contribution for election to a
State or local government office, or attendance at a
fundraising event sponsored by a political organization
described in section 527(e) of the Internal Revenue Code of
1986.
(B) Gift from a relative.--A gift from a relative as
described in section 109(16) of title I of the Ethics in
Government Act of 1978 (2 U.S.C. App. 109(16)).
(C) Employee benefits.--Pension and other benefits
resulting from continued participation in an employee welfare
and benefits plan maintained by a former employer.
(D) Informational materials.--Informational materials that
are sent to the office of the Member, Delegate, Resident
Commissioner, officer, or employee in the form of books,
articles, periodicals, other written materials, audiotapes,
videotapes, or other forms of communication.
(E) Items of nominal value.--An item of nominal value such
as a greeting card, baseball cap, or a T-shirt.
(F) Personal friendship.--
(i) In general.--Anything provided by an individual on the
basis of a personal friendship unless the gift was given
because of the official position of the Member, Delegate,
Resident Commissioner, officer, or employee.
(ii) Circumstances.--In determining whether a gift is
provided on the basis of personal friendship, the following
shall be considered:
(I) The history of the relationship between the Member,
Delegate, Resident Commissioner, officer, or employer and the
individual giving the gift, including any previous exchange
of gifts between them.
(II) Whether the individual who gave the gift personally
paid for the gift or sought a tax deduction or business
reimbursement for the gift.
(III) Whether the individual who gave the gift also gave
the same or similar gifts to other Members, Delegates, the
Resident Commissioners, officers, or employees of Congress.
(G) Certain outside business or employment activities
provided to spouse.--Food, refreshments, lodging,
transportation, and other benefits provided to the spouse of
the Member, Delegate, Resident Commissioner, officer, or
employee, resulting from the outside business or employment
activities of the spouse or in connection with bona fide
employment discussions with respect to the spouse, if such
benefits have not been offered or enhanced because of the
official position of the Member, Delegate, Resident
Commissioner, officer, or employee and are customarily
provided to others in similar circumstances.
(H) Opportunities and benefits unrelated to congressional
employment.--Opportunities and benefits that are offered to
members of a group or class in which membership is unrelated
to congressional employment.
(I) Certain foods or refreshments.--Food or refreshments of
a nominal value offered other than as a part of a meal.
(b) Penalty.--Any registered lobbyist who violates this
section shall be subject to a civil fine of not more than
$50,000, depending on the extent and gravity of the
violation.
SEC. 307. PROHIBITION ON MEMBERS ACCEPTING GIFTS FROM
LOBBYISTS.
(a) House of Representatives.--Clause 5(a)(1)(A) of rule
XXV of the Rules of the House of Representatives is amended
by adding at the end the following new sentence:
``Notwithstanding any other provision of this clause, in no
event may a Member, Delegate, or Resident Commissioner accept
a gift from a registered lobbyist prohibited by section 306
of the Lobbying and Ethics Reform Act of 2005.''.
(b) Senate.--Paragraph 1 of rule XXXV of the Standing Rules
of the Senate is amended by adding at the end the following:
``(g) Notwithstanding any other provision of this rule, in
no event may a Member accept a gift from a registered
lobbyist prohibited by section 306 of the Lobbying and Ethics
Reform Act of 2005.''.
[[Page S8310]]
TITLE IV--OVERSIGHT OF ETHICS AND LOBBYING
SEC. 401. COMPTROLLER GENERAL REVIEW AND SEMIANNUAL REPORT ON
ACTIVITIES CARRIED OUT BY CLERK OF THE HOUSE
AND SECRETARY OF THE SENATE UNDER LOBBYING
DISCLOSURE ACT OF 1995.
(a) Ongoing Review Required.--The Comptroller General shall
review on an ongoing basis the activities carried out by the
Clerk of the House of Representatives and the Secretary of
the Senate under section 6 of the Lobbying Disclosure Act of
1995 (2 U.S.C. 1605). The review shall emphasize--
(1) the effectiveness of those activities in securing the
compliance by lobbyists with the requirements of that Act;
and
(2) whether the Clerk and the Secretary have the resources
and authorities needed for effective oversight and
enforcement of that Act.
(b) Semiannual Reports.--Twice yearly, not later than
January 1 and not later than July 1 of each year, the
Comptroller General shall submit to Congress a report on the
review required by subsection (a). The report shall include
the Comptroller General's assessment of the matters required
to be emphasized by that subsection and any recommendations
of the Comptroller General to--
(1) improve the compliance by lobbyists with the
requirements of that Act; and
(2) provide the Clerk and the Secretary with the resources
and authorities needed for effective oversight and
enforcement of that Act.
Mr FEINGOLD. Mr. President, today I will introduce the Lobbying and
Ethics Reform Act of 2005. This bill builds on similar legislation that
was introduced in the House by Representatives Marty Meehan and Rahm
Emmanuel.
I have long believed that to truly serve our constituents well, we
must reduce the impact of big money on the legislative process. I have
devoted a great deal of time over the years to reforming our campaign
finance laws. With the enactment of the Bipartisan Campaign Reform Act
in 2002, we took several important, and I believe successful, steps to
reduce the influence of special interests and return some measure of
power to the American people.
But campaign contributions are only part of the story. In fact,
during recent election cycles, the amount spent on lobbying members of
Congress once they are elected has been more than double the amount
spent on getting them elected in the first place. Yet lobbyists and the
lobbying industry remain partly in the shadows, even after the
significant improvements to the disclosure laws enacted in 1995. Ten
years later, the weaknesses of that law have become apparent, as have
the weaknesses in the congressional gift rules that we passed around
the same time. Recent scandals involving lobbyists have made very clear
that if this body is to be responsive to the people, not just a narrow
set of special interests, we must strengthen the disclosure rules
governing the lobbying industry and close loopholes in the gift rules.
The lobbying industry continues to grow at a startling rate.
According to the Center for Public Integrity, over three billion
dollars were spent on lobbying in 2004, nearly double the amount spent
just six years earlier. This dramatic increase in lobbying expenditures
has led to an equally dramatic growth in the number of registered
lobbyists. A story in the Washington Post from June of this year
reports that there are currently more than 34,750 registered lobbyists,
which represents a 100% increase from 2000. Not surprisingly, a few
powerful industries account for much of this growth. In the last six
years, the pharmaceutical industry alone has spent over three quarters
of a billion dollars on lobbying, enough to finance over 3,000
professional lobbyists. The insurance industry is not far behind.
During this same period, insurance companies spent over 600 million
dollars and employed over 2,000 lobbyists.
Despite the growing presence of lobbyists on Capitol Hill, and
despite the improvements made in the 1995 law, regulation of the
lobbying industry remains inadequate. The Senate office in charge of
overseeing lobbying disclosure reports employs fewer than 20 people,
and the equivalent House office employs fewer than 35. Compare these
numbers to the Federal Election Commission, which many people believe
is itself understaffed, but which has a staff of nearly 400 to oversee
and enforce campaign finance laws.
Given these numbers, it should not come as a shock that oversight of
the booming lobbying industry is not what we would like it to be. In
the past six years alone, over 300 individuals and companies lobbied
without registering first. One in five lobbying companies failed to
file required disclosure forms. And the Center for Public Integrity
reports that over 14,000 disclosure documents that should have been
filed are not available, including documents relating to 49 of the top
50 lobbying firms.
When the disclosure requirements are not enforced, it can only be
expected that they and other rules relating to lobbying will not be
followed. In the last six months, we have seen a number of stories in
the press detailing the increasingly cozy relationship between
lobbyists and certain members of Congress. We have seen stories of
lobbyists funding international junkets for members, their families,
and their staff, which include days on famous golf courses and nights
in luxurious resorts. We have seen stories of members and their staff
accepting lavish gifts and expensive meals from lobbyists. And we haves
seen stories of lobbyists providing members with free access to their
companies' or clients' corporate jets so that they can fly in comfort
from fundraiser to fundraiser.
But the enticements offered by lobbyists are not all quite so exotic
indeed, many lobbyists merely offer plum positions in their K Street
offices. According to a 2005 report, more than 2200 former federal
government employees were registered as federal lobbyists between 1998
and 2004. Of those, more then 200 were former members of Congress. In
fact, Public Citizen reports that nearly half of all members returning
to the private sector accept positions in the lobbying industry. For
congressional employees, the prospect of receiving lobbying positions,
which often pay several times more than their current jobs, can easily
create conflicts of interest and may affect the decisions they make in
their official capacity.
The problems with oversight of the lobbying industry are systemic and
they are troubling. Even the minimal disclosure requirements of the
Lobbying Disclosure Act are often ignored because lobbyists know they
will not be penalized. The revolving door between the Hill and K Street
spins faster than ever. And flaws in the gift rules are allowing
handouts from lobbyists to rapidly increase the influence of special
interests at the expense of the average citizen. I am told that it is
not uncommon for lobbyists to perch themselves at the end of a bar and
buy drinks for any congressional staffer who comes by. This is
permissible under the Senate's current gift rules, and it shouldn't be.
Lobbyists complain about pressure--if not outright blatant requests--
from Members and congressional staff to pay for their food and drinks.
Clearly, there is plenty of blame to go around.
My bill addresses these concerns in four ways. First, my bill makes
the lobbying process more transparent by enhancing the specificity,
frequency, and accessibility of lobbying disclosure reports. The bill
would require these periodic reports filed by lobbyists to identify the
members of Congress with whom they met, divulge all past senior-level
legislative or executive branch employment, and separate out and report
the amount of money spent on grassroots lobbying efforts. Lobbyists
would have to file these reports on a quarterly, rather than a
semiannual, basis. And the bill would require the Secretary of the
Senate and the Clerk of the House to make these reports available in a
searchable database that would allow the public to gather information
on lobbyists quickly and efficiently. The bill also requires the
disclosure of entities that contribute large sums of money to lobbying
coalitions. And it doubles the civil penalty for knowingly failing to
file lobbying reports or filing false information.
Second, this bill should slow the revolving door between Congress and
the lobbying industry. It establishes a two-year waiting period for
members, senior staff, and senior executive personnel to participate in
lobbying. During this cooling-off period, members and senior executive
personnel would be prohibited from engaging in all lobbying activities,
including developing strategy for or directing a lobbying campaign.
Staff would be forbidden from making direct contact with any members or
staff who work in the
[[Page S8311]]
House of Congress that used to employ them, rather than just the former
employing office, as the law now requires.
The revolving door provisions in my bill would also require members
of Congress to publicly disclose their intent to seek outside
employment if a conflict of interest exists. They prohibit members of
Congress from taking official actions to influence the employment
decisions of outside entities on the basis of partisan affiliation. And
they affirm that no member should take official action based on the
prospect for personal gain. The bill also prohibits registered
lobbyists from taking advantage of special advantages such as gym
membership, floor privileges, or access to certain areas of the Capitol
that are offered to former Members of Congress.
Third, my bill addresses the growing problem of privately funded
travel and lobbyist gifts. Before sponsoring a trip for a member or
staff, an organization must certify that the trip was not financed or
organized by a registered lobbyist and that lobbyists will not
participate in or attend the trip. After returning from the trip, the
Member or staff must provide a detailed itinerary and description of
expenses. My bill also creates a complete ban on lobbyists providing
gifts to members and staff and on members accepting gifts from
registered lobbyists. Those who file false certifications or fail to
observe these rules will be subject to stiff penalties.
Finally, the bill seeks to strengthen oversight of lobbying
disclosure. A GAO report showing the old lobbying law passed in the
1940s was largely ignored and rarely enforced was an important impetus
to passing the Lobbying Disclosure Act in 1995. The bill requires the
Comptroller General to report to Congress twice annually on the state
of the enforcement of the rules. These reports will help us determine
if further improvements in the laws are necessary.
These measures are not crafted as a knee-jerk response to the recent
spate of troubling revelations about the relationships between certain
members of Congress and the lobbying industry. Instead, this bill
addresses systemic problems with the rules governing lobbyists. It has
been a decade since the Lobbying Disclosure Act and new gift rules were
passed and we now know that some of these rules are no longer
sufficient to regulate a growing and evolving lobbying industry. It is
now time for us to act again. I urge my colleagues to support this
bill.
I ask unanimous consent that the text of the bill and a section by
section analysis be printed in the Record.
______
By Mr. CHAFEE (for himself, Mrs. Clinton, Mr. Inhofe, and Mr.
Jeffords):
S. 1400. A bill to amend the Federal Water Pollution Control Act and
the Safe Drinking Water Act to improve water and wastewater
infrastructure in the United States; to the Committee on Environment
and Public Works.
Mr. CHAFEE. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1400
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 ``Water
Infrastructure Financing Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--WATER POLLUTION INFRASTRUCTURE
Sec. 101. Technical assistance for rural and small treatment works.
Sec. 102. Projects eligible for assistance.
Sec. 103. Water pollution control revolving loan funds.
Sec. 104. Affordability.
Sec. 105. Transferability of funds.
Sec. 106. Costs of administering water pollution control revolving loan
funds.
Sec. 107. Water pollution control revolving loan funds.
Sec. 108. Noncompliance.
Sec. 109. Authorization of appropriations.
Sec. 110. Critical water infrastructure projects.
TITLE II--SAFE DRINKING WATER INFRASTRUCTURE
Sec. 201. Preconstruction work.
Sec. 202. Affordability.
Sec. 203. Safe drinking water revolving loan funds.
Sec. 204. Other authorized activities.
Sec. 205. Priority system requirements.
Sec. 206. Authorization of appropriations.
Sec. 207. Critical drinking water infrastructure projects.
Sec. 208. Small system revolving loan funds.
Sec. 209. Study on lead contamination in drinking water.
Sec. 210. District of Columbia lead service line replacement.
TITLE III--MISCELLANEOUS
Sec. 301. Definitions.
Sec. 302. Demonstration grant program for water quality enhancement and
management.
Sec. 303. Agricultural pollution control technology grant program.
Sec. 304. State revolving fund review process.
Sec. 305. Cost of service study.
Sec. 306. Water resources study.
TITLE I--WATER POLLUTION INFRASTRUCTURE
SEC. 101. TECHNICAL ASSISTANCE FOR RURAL AND SMALL TREATMENT
WORKS.
(a) In General.--Title II of the Federal Water Pollution
Control Act (33 U.S.C. 1281 et seq.) is amended by adding at
the end the following:
``SEC. 222. TECHNICAL ASSISTANCE FOR RURAL AND SMALL
TREATMENT WORKS.
``(a) Definition of Qualified Nonprofit Technical
Assistance Provider.--In this section, the term `qualified
nonprofit technical assistance provider' means a qualified
nonprofit technical assistance provider of water and
wastewater services to small rural communities that provide
technical assistance to treatment works (including circuit
rider programs and training and preliminary engineering
evaluations) that--
``(1) serve not more than 10,000 users; and
``(2) may include a State agency.
``(b) Grant Program.--
``(1) In general.--The Administrator may make grants to
qualified nonprofit technical assistance providers that are
qualified to provide assistance on a broad range of
wastewater and stormwater approaches--
``(A) to assist small treatment works to plan, develop, and
obtain financing for eligible projects described in section
603(c);
``(B) to capitalize revolving loan funds to provide loans,
in consultation with the State in which the assistance is
provided, to rural and small municipalities for
predevelopment costs (including costs for planning, design,
associated preconstruction, and necessary activities for
siting the facility and related elements) associated with
wastewater infrastructure projects or short-term costs
incurred for equipment replacement that is not part of
regular operation and maintenance activities for existing
wastewater systems, if--
``(i) any loan from the fund is made at or below the market
interest rate, for a term not to exceed 10 years;
``(ii) the amount of any single loan does not exceed
$100,000; and
``(iii) all loan repayments are credited to the fund;
``(C) to provide technical assistance and training for
rural and small publicly owned treatment works and
decentralized wastewater treatment systems to enable those
treatment works and systems to protect water quality and
achieve and maintain compliance with this Act; and
``(D) to disseminate information to rural and small
municipalities with respect to planning, design,
construction, and operation of publicly owned treatment works
and decentralized wastewater treatment systems.
``(2) Distribution of grant.--In carrying out this
subsection, the Administrator shall ensure, to the maximum
extent practicable, that technical assistance provided using
funds from a grant under paragraph (1) is made available in
each State.
``(3) Consultation.--As a condition of receiving a grant
under this subsection, a qualified nonprofit technical
assistance provider shall consult with each State in which
grant funds are to be expended or otherwise made available
before the grant funds are expended or made available in the
State.
``(4) Annual report.--For each fiscal year, a qualified
nonprofit technical assistance provider that receives a grant
under this subsection shall submit to the Administrator a
report that--
``(A) describes the activities of the qualified nonprofit
technical assistance provider using grant funds received
under this subsection for the fiscal year; and
``(B) specifies--
``(i) the number of communities served;
``(ii) the sizes of those communities; and
``(iii) the type of financing provided by the qualified
nonprofit technical assistance provider.
``(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $25,000,000 for
each of fiscal years 2006 through 2010.''.
(b) Guidance for Small Systems.--Section 602 of the Federal
Water Pollution Control Act (33 U.S.C. 1382) is amended by
adding at the end the following:
``(c) Guidance for Small Systems.--
``(1) Definition of small system.--In this subsection, the
term `small system' means a system--
``(A) for which a municipality or intermunicipal,
interstate, or State agency seeks assistance under this
title; and
``(B) that serves a population of 10,000 or fewer
households.
[[Page S8312]]
``(2) Simplified procedures.--Not later than 1 year after
the date of enactment of this subsection, the Administrator
shall assist the States in establishing simplified procedures
for small systems to obtain assistance under this title.
``(3) Publication of manual.--Not later than 1 year after
the date of enactment of this subsection, after providing
notice and opportunity for public comment, the Administrator
shall publish--
``(A) a manual to assist small systems in obtaining
assistance under this title; and
``(B) in the Federal Register, notice of the availability
of the manual.''.
SEC. 102. PROJECTS ELIGIBLE FOR ASSISTANCE.
Section 603 of the Federal Water Pollution Control Act (33
U.S.C. 1383) is amended by striking subsection (c) and
inserting the following:
``(c) Projects Eligible for Assistance.--Funds in each
State water pollution control revolving fund shall be used
only for--
``(1) providing financial assistance to any municipality or
an intermunicipal, interstate, or State agency that
principally treats municipal wastewater or domestic sewage
for construction (including planning, design, associated
preconstruction, and activities relating to the siting of a
facility) of a treatment works (as defined in section 212);
``(2) implementation of a management program established
under section 319;
``(3) development and implementation of a conservation and
management plan under section 320;
``(4) providing financial assistance to a municipality or
an intermunicipal, interstate, or State agency for projects
to increase the security of wastewater treatment works
(excluding any expenditure for operations or maintenance);
``(5) providing financial assistance to a municipality or
an intermunicipal, interstate, or State agency for measures
to control municipal stormwater, the primary purpose of which
is the preservation, protection, or enhancement of water
quality;
``(6) water conservation projects, the primary purpose of
which is the protection, preservation, and enhancement of
water quality; or
``(7) reuse, reclamation, and recycling projects, the
primary purpose of which is the protection, preservation, and
enhancement of water quality.''.
SEC. 103. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.
Section 603(d) of the Federal Water Pollution Control Act
(33 U.S.C. 1383(d)) is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(8) to carry out a project under paragraph (2) or (3) of
section 601(a), which may be--
``(A) operated by a municipal, intermunicipal, or
interstate entity, State, public or private utility,
corporation, partnership, association, or nonprofit agency;
and
``(B) used to make loans that will be fully amortized not
later than 30 years after the date of the completion of the
project.''.
SEC. 104. AFFORDABILITY.
(a) In General.--Section 603 of the Federal Water Pollution
Control Act (33 U.S.C. 1383) is amended--
(1) by redesignating subsections (e) through (h) as
subsections (f) through (i), respectively; and
(2) by inserting after subsection (d) the following:
``(e) Types of Assistance for Disadvantaged Communities.--
``(1) Definition of disadvantaged community.--In this
subsection, the term `disadvantaged community' means the
service area, or portion of a service area, of a treatment
works that meets affordability criteria established after
public review and comment by the State in which the treatment
works is located.
``(2) Loan subsidy.--Notwithstanding any other provision of
this section, in a case in which the State makes a loan from
the water pollution control revolving loan fund in accordance
with subsection (c) to a disadvantaged community or a
community that the State expects to become a disadvantaged
community as the result of a proposed project, the State may
provide additional subsidization, including--
``(A) the forgiveness of the principal of the loan; and
``(B) an interest rate on the loan of zero percent.
``(3) Total amount of subsidies.--For each fiscal year, the
total amount of loan subsidies made by the State pursuant to
this subsection may not exceed 30 percent of the amount of
the capitalization grant received by the State for the fiscal
year.
``(4) Extended term.--A State may provide an extended term
for a loan if the extended term--
``(A) terminates not later than the date that is 30 years
after the date of completion of the project; and
``(B) does not exceed the expected design life of the
project.
``(5) Information.--The Administrator may publish
information to assist States in establishing affordability
criteria described in paragraph (1).''.
(b) Conforming Amendment.--Section 221(d) of the Federal
Water Pollution Control Act (33 U.S.C. 1301(d)) is amended in
the second sentence by striking ``603(h)'' and inserting
``603(i)''.
SEC. 105. TRANSFERABILITY OF FUNDS.
Section 603 of the Federal Water Pollution Control Act (33
U.S.C. 1383) (as amended by section 104(a)(1)) is amended by
adding at the end the following:
``(j) Transfer of Funds.--
``(1) In general.--The Governor of a State may--
``(A)(i) reserve not more than 33 percent of a
capitalization grant made under this title; and
``(ii) add the funds reserved to any funds provided to the
State under section 1452 of the Safe Drinking Water Act (42
U.S.C. 300j-12); and
``(B)(i) reserve for any year an amount that does not
exceed the amount that may be reserved under subparagraph (A)
for that year from capitalization grants made under section
1452 of that Act (42 U.S.C. 300j-12); and
``(ii) add the reserved funds to any funds provided to the
State under this title.
``(2) State match.--Funds reserved under this subsection
shall not be considered to be a State contribution for a
capitalization grant required under this title or section
1452(b) of the Safe Drinking Water Act (42 U.S.C. 300j-
12(b)).''.
SEC. 106. COSTS OF ADMINISTERING WATER POLLUTION CONTROL
REVOLVING LOAN FUNDS.
Section 603(d)(7) of the Federal Water Pollution Control
Act (33 U.S.C. 1383(d)(7)) is amended by striking ``4
percent'' and inserting ``6 percent''.
SEC. 107. WATER POLLUTION CONTROL REVOLVING LOAN FUNDS.
Section 603 of the Federal Water Pollution Control Act (33
U.S.C. 1383) is amended by striking subsection (h) (as
redesignated by section 104) and inserting the following:
``(h) Priority System Requirement.--
``(1) Definitions.--In this subsection:
``(A) Restructuring.--The term `restructuring' means--
``(i) the consolidation of management functions or
ownership with another facility; or
``(ii) the formation of cooperative partnerships.
``(B) Traditional wastewater approach.--The term
`traditional wastewater approach' means a managed system used
to collect and treat wastewater from an entire service area
consisting of--
``(i) collection sewers;
``(ii) a centralized treatment plant using biological,
physical, or chemical treatment processes; and
``(iii) a direct point source discharge to surface water.
``(2) Priority system.--In providing financial assistance
from the water pollution control revolving fund of the State,
the State shall--
``(A) give greater weight to an application for assistance
by a treatment works if the application includes such other
information as the State determines to be appropriate and--
``(i) an inventory of assets, including a description of
the condition of those assets;
``(ii) a schedule for replacement of the assets;
``(iii) a financing plan indicating sources of revenue from
ratepayers, grants, bonds, other loans, and other sources;
``(iv) a review of options for restructuring the treatment
works;
``(v) a review of options for approaches other than a
traditional wastewater approach that may include actions or
projects that treat or minimize sewage or urban stormwater
discharges using--
``(I) decentralized or distributed stormwater controls;
``(II) decentralized wastewater treatment;
``(III) low impact development technologies;
``(IV) stream buffers;
``(V) wetland restoration; or
``(VI) actions to minimize the quantity of and direct
connections to impervious surfaces;
``(vi) demonstration of consistency with State, regional,
and municipal watershed plans;
``(vii) a review of options for urban waterfront
development or brownfields revitalization to be completed in
conjunction with the project; or
``(viii) provides the applicant the flexibility through
alternative means to carry out responsibilities under Federal
regulations, that may include watershed permitting and other
innovative management approaches, while achieving results
that--
``(I) the State, with the delegated authority under section
402(a)(5), determines meet permit requirements for permits
that have been issued in accordance with the national
pollution discharge elimination system under section 402; or
``(II) the Administrator determines are measurably superior
when compared to regulatory standards;
``(B) take into consideration appropriate chemical,
physical, and biological data that the State considers
reasonably available and of sufficient quality;
``(C) provide for public notice and opportunity to comment
on the establishment of the system and the summary under
subparagraph (D);
``(D) publish not less than biennially in summary form a
description of projects in the State that are eligible for
assistance under this title that indicates--
``(i) the priority assigned to each project under the
priority system of the State; and
``(ii) the funding schedule for each project, to that
extent the information is available; and
[[Page S8313]]
``(E) ensure that projects undertaken with assistance under
this title are designed to achieve, as determined by the
State, the optimum water quality management, consistent with
the public health and water quality goals and requirements of
this title.
``(3) Savings clause.--Nothing in paragraph (2)(A)(viii)
affects the authority of the Administrator under section
402(a)(5).''.
SEC. 108. NONCOMPLIANCE.
Section 603 of the Federal Water Pollution Control Act (33
U.S.C. 1383) (as amended by section 105) is amended by adding
at the end the following:
``(k) Noncompliance.--
``(1) In general.--Except as provided in paragraph (2), no
assistance (other than assistance that is to be used by a
treatment works solely for planning, design, or security
purposes) shall be provided under this title to a treatment
works that has been in significant noncompliance with any
requirement of this Act for any of the 4 quarters in the
previous 8 quarters, unless the treatment works is in
compliance with, or has entered into, an enforceable
administrative order to effect compliance with the
requirement.
``(2) Exception.--A treatment works that is determined
under paragraph (1) to be in significant noncompliance with a
requirement described in that paragraph may receive
assistance under this title if the Administrator and the
State providing the assistance determine that--
``(A) the entity conducting the enforcement action on which
the determination of significant noncompliance is based has
determined that the use of assistance would enable the
treatment works to take corrective action toward resolving
the violations; or
``(B) the entity conducting the enforcement action on which
the determination of significant noncompliance is based has
determined that the assistance would be used on a portion of
the treatment works that is not directly related to the cause
of finding significant noncompliance.''.
SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
The Federal Water Pollution Control Act is amended by
striking section 607 (33 U.S.C. 1387) and inserting the
following:
``SEC. 607. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
to carry out this title--
``(1) $3,200,000,000 for each of fiscal years 2006 and
2007;
``(2) $3,600,000,000 for fiscal year 2008;
``(3) $4,000,000,000 for fiscal year 2009; and
``(4) $6,000,000,000 for fiscal year 2010.
``(b) Availability.--Amounts made available under this
section shall remain available until expended.
``(c) Reservation for Needs Surveys.--Of the amount made
available under subsection (a) to carry out this title for a
fiscal year, the Administrator may reserve not more than
$1,000,000 per year to pay the costs of conducting needs
surveys under section 516(2).''.
SEC. 110. CRITICAL WATER INFRASTRUCTURE PROJECTS.
(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall establish a
program under which grants are provided to eligible entities
for use in carrying out projects and activities the primary
purpose of which is watershed restoration through the
protection or improvement of water quality.
(b) Project Selection.--
(1) In general.--The Administrator may provide funds under
this section to an eligible entity to carry out an eligible
project described in paragraph (2).
(2) Equitable distribution.--The Administrator shall ensure
an equitable distribution of projects under this section,
taking into account cost and number of requests for each
category listed in paragraph (3).
(3) Eligible projects.--A project that is eligible to be
carried out using funds provided under this section may
include projects that--
(A) are listed on the priority list of a State under
section 216 of the Federal Water Pollution Control Act (33
U.S.C. 1296);
(B) mitigate wet weather flows, including combined sewer
overflows, sanitary sewer overflows, and stormwater
discharges;
(C) upgrade publicly owned treatment works with a permitted
design capacity to treat an annual average of at least
500,000 gallons of wastewater per day, the upgrade of which
would produce the greatest nutrient load reductions at points
of discharge, or result in the greatest environmental
benefits, with nutrient removal technologies that are
designed to reduce total nitrogen in discharged wastewater to
an average annual concentration of 3 milligrams per liter;
(D) implement locally based watershed protection plans
created by local nonprofit organizations that--
(i) provide a coordinating framework for management that
focuses public and private efforts to address the highest
priority water-related problems within a geographic area,
considering both ground and surface water flow; and
(ii) includes representatives from both point source and
nonpoint source contributors;
(E) are contained in a State plan developed in accordance
with section 319 or 320 of the Federal Water Pollution
Control Act (33 U.S.C. 1329, 1330); or
(F) include means to develop alternative water supplies.
(c) Local Participation.--In prioritizing projects for
implementation under this section, the Administrator shall
consult with, and consider the priorities of--
(1) affected State and local governments; and
(2) public and private entities that are active in
watershed planning and restoration.
(d) Cost Sharing.--Before carrying out any project under
this section, the Administrator shall enter into a binding
agreement with 1 or more non-Federal interests that shall
require the non-Federal interests--
(1) to pay 45 percent of the total costs of the project,
which may include services, materials, supplies, or other in-
kind contributions;
(2) to provide any land, easements, rights-of-way, and
relocations necessary to carry out the project; and
(3) to pay 100 percent of any operation, maintenance,
repair, replacement, and rehabilitation costs associated with
the project.
(e) Waiver.--The Administrator may waive the requirement to
pay the non-Federal share of the cost of carrying out an
eligible activity using funds from a grant provided under
this section if the Administrator determines that an eligible
entity is unable to pay, or would experience significant
financial hardship if required to pay, the non-Federal share.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $300,000,000 for
each of fiscal years 2006 through 2010.
TITLE II--SAFE DRINKING WATER INFRASTRUCTURE
SEC. 201. PRECONSTRUCTION WORK.
Section 1452(a)(2) of the Safe Drinking Water Act (42
U.S.C. 300j-12(a)(2)) is amended in the second sentence--
(1) by striking ``(not'' and inserting ``(including
expenditures for planning, design, and associated
preconstruction and for recovery for siting of the facility
and related elements but not''; and
(2) by inserting before the period at the end the
following: ``or to replace or rehabilitate aging collection,
treatment, storage (including reservoirs), or distribution
facilities of public water systems or provide for capital
projects to upgrade the security of public water systems''.
SEC. 202. AFFORDABILITY.
Section 1452(d)(3) of the Safe Drinking Water Act (42
U.S.C. 300j-12(d)(3)) is amended in the first sentence by
inserting ``, or portion of a service area,'' after ``service
area''.
SEC. 203. SAFE DRINKING WATER REVOLVING LOAN FUNDS.
Section 1452(g) of the Safe Drinking Water Act (42 U.S.C.
300j-12(g)) is amended--
(1) paragraph (2)--
(A) in the first sentence, by striking ``4'' and inserting
``6''; and
(B) by striking ``1419,'' and all that follows through
``1933.'' and inserting ``1419.''; and
(2) by adding at the end the following:
``(5) Transfer of funds.--
``(A) In general.--The Governor of a State may--
``(i)(I) reserve not more than 33 percent of a
capitalization grant made under this section; and
``(II) add the funds reserved to any funds provided to the
State under section 601 of the Federal Water Pollution
Control Act (33 U.S.C. 1381); and
``(ii)(I) reserve for any fiscal year an amount that does
not exceed the amount that may be reserved under clause
(i)(I) for that year from capitalization grants made under
section 601 of that Act (33 U.S.C. 1381); and
``(II) add the reserved funds to any funds provided to the
State under this section.
``(B) State match.--Funds reserved under this paragraph
shall not be considered to be a State match of a
capitalization grant required under this section or section
602(b) of the Federal Water Pollution Control Act (33 U.S.C.
1382(b)).''.
SEC. 204. OTHER AUTHORIZED ACTIVITIES.
Section 1452(k)(2)(D) of the Safe Drinking Water Act (42
U.S.C. 300j-12(k)(2)(D)) is amended by inserting before the
period at the end the following: ``(including implementation
of source water protection plans)''.
SEC. 205. PRIORITY SYSTEM REQUIREMENTS.
Section 1452(b)(3) of the Safe Drinking Water Act (42
U.S.C. 300j-12(b)(3)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (D);
(2) by striking subparagraph (A) and inserting the
following:
``(A) Definition of restructuring.--In this paragraph, the
term `restructuring' means changes in operations (including
ownership, accounting, rates, maintenance, consolidation, and
alternative water supply).
``(B) Priority system.--An intended use plan shall provide,
to the maximum extent practicable, that priority for the use
of funds be given to projects that--
``(i) address the most serious risk to human health;
``(ii) are necessary to ensure compliance with this title
(including requirements for filtration); and
``(iii) assist systems most in need on a per-household
basis according to State affordability criteria.
``(C) Weight given to applications.--After determining
project priorities under subparagraph (B), an intended use
plan shall further provide that the State shall give greater
weight to an application for assistance by a community water
system if the application includes such other information as
the State determines to be necessary and--
[[Page S8314]]
``(i) an inventory of assets, including a description of
the condition of the assets;
``(ii) a schedule for replacement of assets;
``(iii) a financing plan indicating sources of revenue from
ratepayers, grants, bonds, other loans, and other sources;
``(iv) a review of options for restructuring the public
water system;
``(v) demonstration of consistency with State, regional,
and municipal watershed plans; or
``(vi) a review of options for urban waterfront development
or brownfields revitalization to be completed in conjunction
with the project;''; and
(3) in subparagraph (D) (as redesignated by paragraph (1)),
by striking ``periodically'' and inserting ``at least
biennially''.
SEC. 206. AUTHORIZATION OF APPROPRIATIONS.
Section 1452 of the Safe Drinking Water Act (42 U.S.C.
300j-12) is amended by striking subsection (m) and inserting
the following:
``(m) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section--
``(A) $1,500,000,000 for fiscal year 2006;
``(B) $2,000,000,000 for each of fiscal years 2007 and
2008;
``(C) $3,500,000,000 for fiscal year 2009; and
``(D) $6,000,000,000 for fiscal year 2010.
``(2) Availability.--Amounts made available under this
subsection shall remain available until expended.
``(3) Reservation for needs surveys.--Of the amount made
available under paragraph (1) to carry out this section for a
fiscal year, the Administrator may reserve not more than
$1,000,000 per year to pay the costs of conducting needs
surveys under subsection (h).''.
SEC. 207. CRITICAL DRINKING WATER INFRASTRUCTURE PROJECTS.
(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Administrator of the
Environmental Protection Agency shall establish a program
under which grants are provided to eligible entities for use
in carrying out projects and activities the primary purpose
of which is to assist community water systems in meeting the
requirements of the Safe Drinking Water Act (42 U.S.C. 300f
et seq.).
(b) Project Selection.--A project that is eligible to be
carried out using funds provided under this section may
include projects that--
(1) develop alternative water sources;
(2) provide assistance to small systems; or
(3) assist a community water system--
(A) to comply with a national primary drinking water
regulation; or
(B) to mitigate groundwater contamination.
(c) Eligible Entities.--An entity eligible to receive a
grant under this section is--
(1) a community water system as defined in section 1401 of
the Safe Drinking Water Act (42 U.S.C. 300f); or
(2) a system that is located in an area governed by an
Indian Tribe, as defined in section 1401 of the Safe Drinking
Water Act (42 U.S.C. 300f);
(d) Priority.--In prioritizing projects for implementation
under this section, the Administrator shall give priority to
community water systems that--
(1) serve a community that, under affordability criteria
established by the State under section 1452(d)(3) of the Safe
Drinking Water Act (42 U.S.C. 300j-12), is determined by the
State to be--
(A) a disadvantaged community; or
(B) a community that may become a disadvantaged community
as a result of carrying out an eligible activity; or
(2) serve a community with a population of less than 10,000
households.
(e) Local Participation.--In prioritizing projects for
implementation under this section, the Administrator shall
consult with, and consider the priorities of, affected
States, Tribes, and local governments.
(f) Cost Sharing.--Before carrying out any project under
this section, the Administrator shall enter into a binding
agreement with 1 or more non-Federal interests that shall
require the non-Federal interests--
(1) to pay 45 percent of the total costs of the project,
which may include services, materials, supplies, or other in-
kind contributions;
(2) to provide any land, easements, rights-of-way, and
relocations necessary to carry out the project; and
(3) to pay 100 percent of any operation, maintenance,
repair, replacement, and rehabilitation costs associated with
the project.
(g) Waiver.--The Administrator may waive the requirement to
pay the non-Federal share of the cost of carrying out an
eligible activity using funds from a grant provided under
this section if the Administrator determines that an eligible
entity is unable to pay, or would experience significant
financial hardship if required to pay, the non-Federal share.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $300,000,000 for
each of fiscal years 2006 through 2010.
SEC. 208. SMALL SYSTEM REVOLVING LOAN FUNDS.
Section 1442(e) of the Safe Drinking Water Act (42 U.S.C.
300j091(e)) is amended--
(1) in the first sentence, by striking ``The Administrator
may provide'' and inserting the following:
``(1) In general.--The Administrator may provide''; and
(2) by adding at the end the following:
``(2) Small system revolving loan fund.--
``(A) In general.--In addition to amounts provided under
this section, the Administrator may provide grants to
qualified private, nonprofit entities to capitalize revolving
funds to provide financing to eligible entities described in
subparagraph (B) for--
``(i) predevelopment costs (including costs for planning,
design, associated preconstruction, and necessary activities
for siting the facility and related elements) associated with
proposed water projects or with existing water systems; and
``(ii) short-term costs incurred for replacement equipment,
small-scale extension services, or other small capital
projects that are not part of the regular operations and
maintenance activities of existing water systems.
``(B) Eligible entities.--To be eligible for assistance
under this paragraph, an entity shall be a small water system
(as described in section 1412(b)(4)(E)(ii)).
``(C) Maximum amount of loans.--The amount of financing
made to an eligible entity under this paragraph shall not
exceed--
``(i) $100,000 for costs described in subparagraph (A)(i);
and
``(ii) $100,000 for costs described in subparagraph
(A)(ii).
``(D) Term.--The term of a loan made to an eligible entity
under this paragraph shall not exceed 10 years.
``(E) Annual report.--For each fiscal year, a qualified
private, nonprofit entity that receives a grant under
subparagraph (A) shall submit to the Administrator a report
that--
``(i) describes the activities of the qualified private,
nonprofit entity under this paragraph for the fiscal year;
and
``(ii) specifies--
``(I) the number of communities served;
``(II) the sizes of those communities; and
``(III) the type of financing provided by the qualified
private, nonprofit entity.
``(F) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $25,000,000
for each of fiscal years 2006 through 2010.''.
SEC. 209. STUDY ON LEAD CONTAMINATION IN DRINKING WATER.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall enter into a cooperative agreement
with the National Academy of Sciences to carry out a study to
analyze existing market conditions for plumbing components,
including pipes, faucets, water meters, valves, household
valves, and any other plumbing components that come into
contact with water commonly used for human consumption.
(b) Components.--In conducting the study under subsection
(a), the National Academy of Sciences shall evaluate for each
category of plumbing components described in subsection (a)--
(1) the availability of plumbing components in each
category with lead content below 8 percent, including those
between 0 percent and 4 percent and those between 4 percent
and 8 percent;
(2) the relative market share of the plumbing components;
(3) the relative cost of the plumbing components;
(4) the issues surrounding transition from current market
to plumbing components with not more than 0.2 percent lead;
(5) the feasibility of manufacturing plumbing components
with lead levels below 8 percent; and
(6) the use of lead alternatives in plumbing components
with lead levels below 8 percent.
(c) Report.--Not late than 1 year after the date of
enactment of this Act, the National Academy of Sciences shall
submit to the Committee on Environment and Public Works of
the Senate and the Committee on Energy and Commerce of the
House of Representatives a report describing the findings of
the study under this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $500,000.
SEC. 210. DISTRICT OF COLUMBIA LEAD SERVICE LINE REPLACEMENT.
(a) Authorization of Appropriations.--There is authorized
to be appropriated to carry out lead service line replacement
in the District of Columbia $30,000,000 for each of fiscal
years 2007 through 2011.
(b) Lead Service Line Replacement Assistance Fund.--
(1) In general.--Of the funds provided under subsection
(a), not more than $2,000,000 per year may be allocated for
water service line replacement grants to provide assistance
to low-income residents to replace the privately-owned
portion of lead service lines.
(2) Limitation.--Individual grants shall be limited to not
more than $5,000.
(3) Definition of low income.--For the purpose of this
subsection, the term ``low-income'' shall be defined by the
District of Columbia.
TITLE III--MISCELLANEOUS
SEC. 301. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of the United
States Geological Survey.
SEC. 302. DEMONSTRATION GRANT PROGRAM FOR WATER QUALITY
ENHANCEMENT AND MANAGEMENT.
(a) Establishment.--
[[Page S8315]]
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Administrator shall establish a
nationwide demonstration grant program to--
(A) promote innovations in technology and alternative
approaches to water quality management or water supply; or
(B) reduce costs to municipalities incurred in complying
with--
(i) the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.); and
(ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.).
(2) Scope.--The demonstration grant program shall consist
of 10 projects each year, to be carried out in municipalities
selected by the Administrator under subsection (b).
(b) Selection of Municipalities.--
(1) Application.--A municipality that seeks to participate
in the demonstration grant program shall submit to the
Administrator a plan that--
(A) is developed in coordination with--
(i) the agency of the State having jurisdiction over water
quality or water supply matters; and
(ii) interested stakeholders;
(B) describes water impacts specific to urban or rural
areas;
(C) includes a strategy under which the municipality,
through participation in the demonstration grant program,
could effectively--
(i) address water quality or water supply problems; and
(ii) achieve the water quality goals that--
(I) could be achieved using more traditional methods; and
(II) are required under--
(aa) the Federal Water Pollution Control Act (33 U.S.C.
1251 et seq.); or
(bb) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
and
(D) includes a schedule for achieving the water quality or
water supply goals of the municipality.
(2) Types of projects.--In carrying out the demonstration
grant program, the Administrator shall provide grants for
projects relating to water supply or water quality matters
such as--
(A) excessive nutrient growth;
(B) urban or rural population pressure;
(C) lack of an alternative water supply;
(D) difficulties in water conservation and efficiency;
(E) lack of support tools and technologies to rehabilitate
and replace water supplies;
(F) lack of monitoring and data analysis for water
distribution systems;
(G) nonpoint source water pollution (including stormwater);
(H) sanitary overflows;
(I) combined sewer overflows;
(J) problems with naturally occurring constituents of
concern;
(K) problems with erosion and excess sediment;
(L) new approaches to water treatment, distribution, and
collection systems; and
(M) new methods for collecting and treating wastewater
(including system design and nonstructural alternatives).
(3) Responsibilities of administrator.--In providing grants
for projects under this subsection, the Administrator shall--
(A) ensure, to the maximum extent practicable, that--
(i) the demonstration program includes a variety of
projects with respect to--
(I) geographic distribution;
(II) innovative technologies used for the projects; and
(III) nontraditional approaches (including low-impact
development technologies) used for the projects; and
(ii) each category of project described in paragraph (2) is
adequately represented;
(B) give higher priority to projects that--
(i) address multiple problems; and
(ii) are regionally applicable;
(C) ensure, to the maximum extent practicable, that at
least 1 community having a population of 10,000 or fewer
individuals receives a grant for each fiscal year; and
(D) ensure that, for each fiscal year, no municipality
receives more than 25 percent of the total amount of funds
made available for the fiscal year to provide grants under
this section.
(4) Cost sharing.--
(A) In general.--Except as provided in subparagraph (B),
the non-Federal share of the total cost of a project funded
by a grant under this section shall be not less than 20
percent.
(B) Waiver.--The Administrator may reduce or eliminate the
non-Federal share of the cost of a project for reasons of
affordability.
(c) Reports.--
(1) Reports from grant recipients.--A recipient of a grant
under this section shall submit to the Administrator, on the
date of completion of a project of the recipient and on each
of the dates that is 1, 2, and 3 years after that date, a
report that describes the effectiveness of the project.
(2) Reports to congress.--Not later than 2 years after the
date of enactment of this Act, and every 2 years thereafter,
the Administrator shall submit to the Committee on
Environment and Public Works of the Senate and the Committee
on Transportation and Infrastructure and the Committee on
Energy and Commerce of the House of Representatives a report
that describes the status and results of the demonstration
program.
(d) Incorporation of Results and Information.--To the
maximum extent practicable, the Administrator shall
incorporate the results of, and information obtained from,
successful projects under this section into programs
administered by the Administrator.
(e) Research and Development.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the Administrator shall, through a
competitive process, award grants and enter into contracts
and cooperative agreements with research institutions,
educational institutions, and other appropriate entities
(including consortia of such institutions and entities) for
research and development on the use of innovative and
alternative technologies to improve water quality or drinking
water supply.
(2) Types of projects.--In carrying out this subsection,
the Administrator may select projects relating to such
matters as innovative or alternative technologies,
approaches, practices, or methods--
(A) to increase the effectiveness and efficiency of public
water supply systems, including--
(i) source water protection;
(ii) water use reduction;
(iii) water reuse;
(iv) water treatment;
(v) water distribution and collection systems; and
(vi) water security;
(B) to encourage the use of innovative or alternative
technologies or approaches relating to water supply or
availability;
(C) to increase the effectiveness and efficiency of new and
existing treatment works, including--
(i) methods of collecting, treating, dispersing, reusing,
reclaiming, and recycling wastewater;
(ii) system design;
(iii) nonstructural alternatives;
(iv) decentralized approaches;
(v) assessment;
(vi) water efficiency; and
(vii) wastewater security;
(D) to increase the effectiveness and efficiency of
municipal separate storm sewer systems;
(E) to promote new water treatment technologies, including
commercialization and dissemination strategies for adoption
of innovative or alternative low impact development
technologies in the homebuilding industry; or
(F) to maintain a clearinghouse of technologies developed
under this subsection and subsection (a) at a research
consortium or institute.
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $20,000,000
for each of fiscal years 2006 through 2010.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section (other than
subsection (e)) $20,000,000 for each of fiscal years 2006
through 2010.
SEC. 303. AGRICULTURAL POLLUTION CONTROL TECHNOLOGY GRANT
PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Agricultural commodity.--The term ``agricultural
commodity'' means--
(A) agricultural, horticultural, viticultural, and dairy
products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee raising;
(D) the products of forestry;
(E) other commodities raised or produced on agricultural
sites, as determined to be appropriate by the Secretary; and
(F) products processed or manufactured from products
specified in subparagraphs (A) through (E), as determined by
the Secretary.
(3) Agricultural project.--The term ``agricultural
project'' means an agricultural pollution control technology
project that, as determined by the Administrator--
(A) is carried out at an agricultural site; and
(B) achieves demonstrable reductions in air and water
pollution.
(4) Agricultural site.--The term ``agricultural site''
means a farming or ranching operation of a producer.
(5) Producer.--The term ``producer'' means any person who
is engaged in the production and sale of an agricultural
commodity in the United States and who owns, or shares the
ownership and risk of loss of, the agricultural commodity.
(6) Revolving fund.--The term ``revolving fund'' means an
agricultural pollution control technology State revolving
fund established by a State using amounts provided under
subsection (b)(1).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Grants for Agricultural State Revolving Funds.--
(1) In general.--As soon as practicable after the date of
enactment of this section, the Administrator shall provide to
each eligible State described in paragraph (2) 1 or more
capitalization grants, that cumulatively equal no more than
$1,000,000 per State, for use in establishing, within an
agency of the State having jurisdiction over agriculture or
environmental quality, an agricultural pollution control
technology State revolving fund.
(2) Eligible states.--An eligible State referred to in
paragraph (1) is a State that agrees, prior to receipt of a
capitalization grant under paragraph (1)--
(A) to establish, and deposit the funds from the grant in,
a revolving fund;
[[Page S8316]]
(B) to provide, at a minimum, a State share in an amount
equal to 20 percent of the capitalization grant;
(C) to use amounts in the revolving fund to make loans to
producers in accordance with subsection (c); and
(D) to return amounts in the revolving fund if no loan
applications are granted within 2 years of the receipt of the
initial capitalization grant.
(c) Loans to Producers.--
(1) Use of funds.--A State that establishes a revolving
fund under subsection (b)(2) shall use amounts in the
revolving fund to provide loans to producers for use in
designing and constructing agricultural projects.
(2) Maximum amount of loan.--The amount of a loan made to a
producer using funds from a revolving fund shall not exceed
$250,000, in the aggregate, for all agricultural projects
serving an agricultural site of the producer.
(3) Conditions on loans.--A loan made to a producer using
funds from a revolving fund shall--
(A) have an interest rate that is not more than the market
interest rate, including an interest-free loan; and
(B) be repaid to the revolving fund not later than 10 years
after the date on which the loan is made.
(d) Requirements for Producers.--
(1) In general.--A producer that seeks to receive a loan
from a revolving fund shall--
(A) submit to the State in which the agricultural site of
the producer is located an application that--
(i) contains such information as the State may require; and
(ii) demonstrates, to the satisfaction of the State, that
each project proposed to be carried out with funds from the
loan is an agricultural project; and
(B) agree to expend all funds from a loan in an expeditious
and timely manner, as determined by the State.
(2) Maximum percentage of agricultural project cost.--
Subject to subsection (c)(2), a producer that receives a loan
from a revolving fund may use funds from the loan to pay up
to 100 percent of the cost of carrying out an agricultural
project.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000.
SEC. 304. STATE REVOLVING FUND REVIEW PROCESS.
As soon as practicable after the date of enactment of this
Act, the Administrator shall--
(1) consult with States, utilities, and other Federal
agencies providing financial assistance to identify ways to
expedite and improve the application and review process for
the provision of assistance from--
(A) the State water pollution control revolving funds
established under title VI of the Federal Water Pollution
Control Act (33 U.S.C. 1381 et seq.); and
(B) the State drinking water treatment revolving loan funds
established under section 1452 of the Safe Drinking Water Act
(42 U.S.C. 300-12);
(2) take such administrative action as is necessary to
expedite and improve the process as the Administrator has
authority to take under existing law;
(3) collect information relating to innovative approaches
taken by any State to simplify the application process of the
State, and provide the information to each State; and
(4) submit to Congress a report that, based on the
information identified under paragraph (1), contains
recommendations for legislation to facilitate further
streamlining and improvement of the process.
SEC. 305. COST OF SERVICE STUDY.
(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Administrator shall enter into a
contract with the National Academy of Sciences for, and the
National Academy of Sciences shall complete and provide to
the Administrator the results of, a study of the means by
which public water systems and treatment works selected by
the Academy in accordance with subsection (c) meet the costs
associated with operations, maintenance, capital replacement,
and regulatory requirements.
(b) Required Elements.--
(1) Affordability.--The study shall, at a minimum--
(A) determine whether the rates at public water systems and
treatment works for communities included in the study were
established using a full-cost pricing model;
(B) if a full-cost pricing model was not used, identify any
incentive rate systems that have been successful in
significantly reducing--
(i) per capita water demand;
(ii) the volume of wastewater flows;
(iii) the volume of stormwater runoff; or
(iv) the quantity of pollution generated by stormwater;
(C) identify a set of best industry practices that public
water systems and treatment works may use in establishing a
rate structure that--
(i) adequately addresses the true cost of services provided
to consumers by public water systems and treatment works,
including infrastructure replacement;
(ii) encourages water conservation; and
(iii) takes into consideration the needs of disadvantaged
individuals and communities, as identified by the
Administrator;
(D) identify existing standards for affordability;
(E) determine the manner in which those standards are
determined and defined;
(F) determine the manner in which affordability varies with
respect to communities of different sizes and in different
regions; and
(G) determine the extent to which affordability affects the
decision of a community to increase public water system and
treatment works rates (including the decision relating to the
percentage by which those rates should be increased).
(2) Disadvantaged communities.--The study shall, at a
minimum--
(A) survey a cross-section of States representing different
sizes, demographics, and geographical regions;
(B) describe, for each State described in subparagraph (A),
the definition of ``disadvantaged community'' used in the
State in carrying out projects and activities under the Safe
Drinking Water Act (42 U.S.C. 300f et seq.);
(C) review other means of identifying the meaning of the
term ``disadvantaged'', as that term applies to communities;
(D) determine which factors and characteristics are
required for a community to be considered ``disadvantaged'';
and
(E) evaluate the degree to which factors such as a
reduction in the tax base over a period of time, a reduction
in population, the loss of an industrial base, and the
existence of areas of concentrated poverty are taken into
account in determining whether a community is a disadvantaged
community.
(c) Selection of Communities.--The National Academy of
Sciences shall select communities, the public water system
and treatment works rate structures of which are to be
studied under this section, that include a cross-section of
communities representing various populations, income levels,
demographics, and geographical regions.
(d) Use of Results of Study.--On receipt of the results of
the study, the Administrator shall--
(1) submit to Congress a report that describes the results
of the study; and
(2) make the results available to treatment works and
public water systems for use by the publicly owned treatment
works and public water systems, on a voluntary basis, in
determining whether 1 or more new approaches may be
implemented at facilities of the publicly owned treatment
works and public water systems.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
each of fiscal years 2006 and 2007.
SEC. 306. WATER RESOURCES STUDY.
(a) Assessment.--
(1) In general .--The Secretary shall--
(A) not later than 2 years after the date of enactment of
this Act, conduct an assessment of water resources in the
United States; and
(B) update the assessment every 2 years thereafter.
(2) Components.--The assessment shall, at a minimum--
(A) measure the status and trends of--
(i) fresh water in rivers and reservoirs;
(ii) groundwater levels and volume of useable fresh water
stored in aquifers; and
(iii) fresh water withdrawn from streams and aquifers in
the United States; and
(B) provide those measurements for--
(i) watersheds defined by the 352 hydrologic accounting
units of the United States; and
(ii) major aquifers of the United States, as identified by
the Secretary.
(3) Report.--Not later than 1 year after the date of
completion of the assessment and every 2 years thereafter,
the Secretary shall submit to Congress a report--
(A) describing the results of the assessment; and
(B) containing any recommendations of the Secretary
relating to the assessment that--
(i) are consistent with existing laws, treaties, decrees,
and interstate compacts; and
(ii) respect the primary role of States in adjudicating,
administering, and regulating water rights and uses.
(b) Water Resource Research Priorities.--
(1) In general.--The Secretary shall coordinate a process
among Federal agencies and appropriate State agencies to
develop and publish, not later than 1 year after the date of
enactment of this Act, a list of water resource research
priorities that focuses on--
(A) water supply monitoring;
(B) means of capturing excess water and flood water for
conservation and use in the event of a drought;
(C) strategies to conserve existing water supplies,
including recommendations for repairing aging infrastructure;
(D) identifying incentives to ensure an adequate and
dependable supply of water;
(E) identifying available technologies and other methods to
optimize water supply reliability, availability, and quality,
while safeguarding the environment; and
(F) improving the quality of water resource information
available to State, tribal, and local water resource
managers.
(2) Use of list.--The list published under paragraph (1)
shall be used by Federal agencies as a guide in making
decisions on the allocation of water research funding.
(c) Information Delivery System.--
(1) In general.--The Secretary shall coordinate a process
to develop an effective information delivery system to
communicate information described in paragraph (2) to--
(A) decisionmakers at the Federal, regional, State, tribal,
and local levels;
[[Page S8317]]
(B) the private sector; and
(C) the general public.
(2) Types of information.--The information referred to in
paragraph (1) may include--
(A) the results of the national water resource assessments
under subsection (a);
(B) a summary of the Federal water research priorities
developed under subsection (b);
(C) near real-time data and other information on water
shortages and surpluses;
(D) planning models for water shortages or surpluses (at
various levels including State, river basin, and watershed
levels);
(E) streamlined procedures for States and localities to
interact with and obtain assistance from Federal agencies
that perform water resource functions; and
(F) other water resource materials, as the Secretary
determine appropriate.
(d) Report to Congress.--Not later than 2 years after the
date of enactment of this Act, and every 2 years thereafter
through fiscal year 2009, the Secretary shall submit to
Congress a report on the implementation of this section.
(e) Savings Clause.--Nothing in this section--
(1) modifies, supercedes, abrogates, impairs, or otherwise
affects in any way--
(A) any right or jurisdiction of any State with respect to
the water (including boundary water) of the State;
(B) the authority of any State to allocate quantities of
water within areas under the jurisdiction of the State; or
(C) any right or claim to any quantity or use of water that
has been adjudicated, allocated, or claimed--
(i) in accordance with State law;
(ii) in accordance with subsections (a) through (c) of
section 208 of the Department of Justice Appropriation Act,
1953 (43 U.S.C. 666);
(iii) by or pursuant to an interstate compact; or
(iv) by a decision of the United States Supreme Court;
(2) requires a change in the nature of use or the transfer
of any right to use water or creates a limitation on the
exercise of any right to use water; or
(3) requires modifying the delivery, diversion, non-
diversion, allocation, storage, or release from storage of
any water to be delivered by contract.
(f) Authorization of Appropriations.--There are authorized
to be appropriated--
(1) to carry out the report authorized by this section,
$3,000,000, to remain available until expended; and
(2) to carry out the updates authorized by subsection
(a)(1)(B), such sums as are necessary.
Mr. GREGG. Mr. President, sustained military operations in
Afghanistan and Iraq have brought to light another example of how
outdated and burdensome government policies can punish generous
employers. Employers that continue to pay their employees now on active
duty in the uniformed services are experiencing tax and pension
difficulties that are discouraging this pro-worker, patriotic gesture.
Apparently, when it comes to companies showing their respect for their
employees called to serve, there is special meaning to the old cliche
``no good deed goes unpunished.''
The National Committee for Employer Support for the Guard and
Reserve, a nationwide association, reports that thousands of employers
across the country have signed a pledge of support and have gone above
and beyond the requirements of the law in support of their National
Guard and Reserve employees. This includes many of our Nation's largest
and most reputable corporations, including 3M, McDonalds, Wal-Mart,
Home Depot, Liberty Mutual and many others. These commendable companies
provide reservist employees who are on active duty with ``differential
pay'' that makes up the difference between their military stipend and
civilian salary.
In New Hampshire, some of the most remarkable stories of corporate
patriotism can be found. BAE Systems of Nashua has 110 people serving
in the Guard and Reserves, 11 of whom are currently deployed overseas.
They provide differential pay to all their called-up employees and
continuing access to benefits to family members. The company even
provides a stipend to make up the lost pay of active duty spouses of
company employees when the spouse's employer is not able to provide
differential pay.
Consider also the account of Mr. Marian Noronha, Chairman and Founder
of Turbocam, a manufacturer based in Dover, New Hampshire. An immigrant
from India, Mr. Noronha has not only provided his employees with
differential pay and continued family health benefits, but has also
extended to each of his activated employees a $10,000 line of credit.
His active duty reservist and Guard employees have used this money to,
among other things, purchase personal computers so their families can
communicate with them while they are overseas. Several other New
Hampshire private-sector companies, including Hitchiner Manufacturing
Company in Milford, have exemplary records when it comes to dealing
with reservist employees.
Under current law, employers of reservists and guardsmen called up
for active duty are required to treat them as if they are on a leave of
absence under the Uniformed Services Employment and Reemployment Rights
Act of 1994 (USERRA). The Act does not require employers to pay
reservists who are on active duty. But as I have pointed out, many
employers pay the reservists the difference between their military
stipends and their regular salaries. Some employers provide this
``differential pay'' for up to three years. For employee convenience,
many of these companies also allow deductions from the differential
payment for contributions to their 401(k) retirement plans.
The conflict arises, however, because a 1969 IRS Revenue Ruling
considers the employment relationship terminated when active duty
begins. This ruling prevents employers from treating the differential
pay as wages for income tax purposes, resulting in unexpected tax bills
at the end of the year for these military personnel. Further, the
contributions made to the worker's retirement account potentially
invalidate, disqualify, the employer's entire retirement plan which
could make all amounts immediately taxable to plan participants and the
employer.
The Uniformed Services Differential Pay Protection Act that I am
introducing today clarifies that differential wage payments are to be
treated as wages to current employees for income tax purposes and that
retirement plan contributions are permissible. The bill does the
following:
Differential wage payments would be treated as wages for income tax
withholding purposes and reported on the worker's W-2 form. This means
that active duty personnel will not be hit with end-of-the-year tax
bills.
No New Taxes: The legislation does not change present law, and
deferential wage payments will not be subject to Social Security and
unemployment compensation taxes.
Definition: ``Differential wage payments'' are defined to mean any
payment which: 1. is made by an employer to an individual while he or
she is on active duty for a period of more than 30 days, and 2.
represents all or a portion of the wages the individual would have
received from the employer if he or she were performing service for the
employer.
An individual receiving differential wage payments would continue to
be treated as an employee for purposes of the rules applicable to
qualified retirement plans, removing the threat that contributions on
his or her behalf would invalidate the employer's entire plan.
Distributions Protected: Clarifying language is included to ensure
that individuals would continue to be permitted to take distributions
from their accounts when they leave their jobs for active duty. Thus,
the right to receive distributions will be preserved even though
individuals are treated as current employees for contribution purposes.
The bill includes a prohibition on making elective deferrals or
employee contributions for six months after receiving a distribution.
Satisfying Nondiscrimination Rules: In order to avoid disruptions in
retirement savings plans and to remove disincentives, employers could
disregard contributions to retirement savings accounts based on
differential wage payments for nondiscrimination testing purposes,
provided that such payments are available to all mobilized employees on
reasonably equivalent terms.
In summary, the Uniformed Services Differential Pay Protection Act
upholds the principle that employers should not be penalized for their
generosity towards our Nation's reservists and members of the National
Guard.
______
By Mr. WYDEN:
S. 1403. A bill to amend title XVIII of the Social Security Act to
extend reasonable cost contracts under medicare; to the Committee on
Finance.
Mr. WYDEN. Mr. President, when Congress passed the Medicare
Modernization Act, Medicare cost contracts
[[Page S8318]]
were kept as a health plan option for seniors. However, Congress also
limited the ability of cost contracts to operate in areas if a Medicare
Advantage plan decided to offer service in that area and stayed for a
year.
Medicare cost contracts are plans that offer more benefits than basic
Medicare and are often available in areas in which Medicare Advantage
plans are not offered. Many of the thousands of Oregonians who have
cost contract plans are in rural Oregon, where there are few options
for care. The legislation I am introducing today, ``The Medicare Cost
Contract Extension and Refinement Act of 2005'', would allow seniors to
keep their cost contracts longer even if a Medicare Advantage plan is
offered. The bill also adds more consumer protection provisions that
are similar to those already in law for Medicare Advantage plans. I
believe that it is not only important to ensure seniors have choices,
but that they can keep the choice that works best for them as well. 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. 1403
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 ``Medicare Cost Contract
Extension and Refinement Act of 2005''.
SEC. 2. EXTENSION OF REASONABLE COST CONTRACTS.
(a) Extension of Period Reasonable Cost Plans Can Remain in
the Market.--Section 1876(h)(5)(C)(ii) of the Social Security
Act (42 U.S.C. 1395mm(h)(5)(C)(ii) is amended--
(1) in the matter preceding subclause (I)--
(A) by striking ``January 1, 2008'' and inserting ``January
1, 2012'';
(B) by striking ``year'' and inserting ``two years''; and
(C) by inserting ``entirely'' after ``was'';
(2) in subclause (I), by inserting ``, provided that all
such plans are not offered by the same Medicare Advantage
organization'' before the semicolon at the end; and
(3) in subclause (II), by inserting ``, provided that all
such plans are not offered by the same Medicare Advantage
organization'' before the semicolon at the end.
(b) Extension of Period Reasonable Cost Plans Can Expand
Their Service Area.--Section 1876(h)(5)(B)(i) of the Social
Security Act (42 U.S.C. 1395mm(h)(5)(B)(i)) is amended to
read as follows:
``(i) the conditions for prohibiting an extension or
renewal of a contract under subparagraph (C)(ii) are not
applicable to such service area at the time of the
application.''.
SEC. 3. APPLICATION OF CERTAIN MEDICARE ADVANTAGE
REQUIREMENTS TO COST CONTRACTS EXTENDED OR
RENEWED AFTER 2003.
Section 1876(h) of the Social Security Act (42 U.S.C.
1395mm(h)), as amended by section (2), is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new
paragraph:
``(5)(A) Any reasonable cost reimbursement contract with an
eligible organization under this subsection that is extended
or renewed on or after the date of enactment of the Medicare
Cost Contract Extension and Refinement Act of 2005 shall
provide that the provisions of the Medicare Advantage program
under part C described in subparagraph (B) shall apply to
such organization and such contract in a substantially
similar manner as such provisions apply to Medicare Advantage
organizations and Medicare Advantage plans under such part.
``(B) The provisions described in this subparagraph are as
follows:
``(i) Section 1851(d) (relating to the provision of
information to promote informed choice).
``(ii) Section 1851(h) (relating to the approval of
marketing material and application forms).
``(iii) Section 1852(a)(3)(A) (regarding the authority of
organizations to include mandatory supplemental health care
benefits under the plan subject to the approval of the
Secretary).
``(iv) Section 1852(e) (relating to the requirement of
having an ongoing quality improvement program and treatment
of accreditation in the same manner as such provisions apply
to Medicare Advantage local plans that are preferred provider
organization plans).
``(v) Section 1852(j)(4) (relating to limitations on
physician incentive plans).
``(vi) Section 1854(c) (relating to the requirement of
uniform premiums among individuals enrolled in the plan).
``(vii) Section 1854(g) (relating to restrictions on
imposition of premium taxes with respect to payments to
organizations).
``(viii) Section 1856(b)(3) (relating to relation to State
laws).
``(ix) Section 1857(i) (relating to Medicare Advantage
program compatibility with employer or union group health
plans).
``(x) The provisions of part C relating to timelines for
contract renewal and beneficiary notification.''.
______
By Mr. BOND:
S. 1404. A bill to clarify that terminal development grants remain in
effect under certain conditions; to the Committee on Commerce, Science,
and Transportation.
Mr. BOND. Mr. President, I rise today to introduce legislation that
will allow for the continued expansion of non-primary hub airports
across the country.
The simple fact of the matter is that demand for commercial air
service in and out of many of these smaller non-primary hub airports is
far exceeding the current operational capacity at these airports.
Expanded airfield and terminal capacity at these airports are
desperately needed to meet the growing demand for air service in these
high growth communities.
The Springfield/Branson Metropolitan Area in Southwest Missouri is a
classic example of one of these high growth communities where demand
for air service is exceeding the current operational capacity of area's
primary regional airport.
The city of Springfield is the economic hub for 26 Missouri Counties
with a population of approximately 1 million people. Over the last 10
years, the population of the Springfield area has increased by more
than twice the annual growth rate experienced by the State of Missouri.
The Springfield metropolitan workforce has grown by more than 27
percent the past 10 years, and is projected to grow by 18 percent over
the next ten years. Annual regional tourism accounts for over 2.2
million visitors in Springfield and over 7 million annual visitors to
the booming Branson area.
Because of the tremendous growth in this region, demand for an air
service in and out of the Springfield/Branson Regional Airport is
soaring. The current airport is experiencing great difficulty in trying
to keep up with the growing demand for air service in this region. The
capacity at the current airport is virtually at its maximum.
The FAA has already approved the Springfield Regional Airport Master
Plan and completed an environmental assessment for this plan. So far,
the FAA has invested over $7 million in the planning and design for
this project. Further funding for this project will be needed to fund
the expansion of air-side apron, runways, taxiways and limited eligible
components of the terminal.
In order to ensure that this essential project goes forward and that
previous Federal tax dollars are not wasted, I am introducing
legislation that will clarify the status of the Springfield Regional
Airport as a non-hub primary airport.
This legislation states that if the status of a non-hub primary
airport changes to a small hub primary airport at a time when the
airport has already received FAA discretionary funds for a terminal
development project--and this project is not yet completed--then the
project shall remain eligible for funding from the discretionary fund
and the small airport fund to pay costs allowable under section
47110(d) of Title 49. Such an airport project will remain eligible for
these funds for three fiscal years after the start of construction of
the project, or, if the Secretary determines that a further extension
of eligibility is justified, until the project is completed.
This legislation will ensure that the ongoing expansion projects of
smaller airports across the country will continue in order to
accommodate the growing demand for additional airfield and terminal
capacity at these airports.
______
By Mr. NELSON of Nebraska (for himself, Mr. Santorum, and Mr.
Corzine):
S. 1405. A bill to extend the 50 percent compliance threshold used to
determine whether a hospital or unit of a hospital is an inpatient
rehabilitation facility and to establish the National Advisory Council
on Medical Rehabilitation; to the Committee on Finance.
Mr. NELSON of Nebraska. Mr. President, today I am introducing the
``Preserving Patient Access to Inpatient Rehabilitation Hospitals Act
of 2005'' to make changes to a rule issued by the Centers for Medicare
and Medicaid Services, (CMS) that would threaten the ability of
rehabilitation hospitals to continue to provide critical care.
[[Page S8319]]
In my home State of Nebraska, Madonna Rehabilitation Hospital in
Lincoln is a nationally-recognized premier rehabilitation facility that
offers specialized programs and services for those who have suffered
brain injuries, strokes, spinal cord injuries, and other rehabilitating
injuries. If this rule is not updated, Madonna would not be able to
offer the same critical care to its patients as it currently does.
When CMS first looked at whether facilities would qualify as an
inpatient rehabilitation facility (IRF), a list of criteria was created
to determine eligibility. The criteria, generally referred to as the
``75 Percent Rule,'' were first established in 1984. Initially ten
categories were given. When the Rule was revised last year, three
categories were added. To qualify as an IRF under the 75 Percent Rule,
75 percent of a facility's patients must be receiving treatment in one
of these specified conditions.
On its face, it appeared that CMS expanded the Rule last year by
increasing the number of conditions from 10 to 13 and giving facilities
a phase-in period to adjust to the changes. Initially the threshold for
compliance was set at 50 percent for the first year and continues to
rise until it reaches 75 percent in July 2007.
Facilities are struggling to even meet the 50 percent compliance rate
in part because the expansion of categories is illusory. The rule will,
by CMS' own estimate, shift thousands of patients--both Medicare and
non-Medicare--into alternative care settings that may be inappropriate.
CMS projected a patient loss of 1,170 admissions in FY 2005. A recent
Moran Company report showed that in the first year alone, hospitals
have been forced to deny care to between 25,000-40,000 patients to
maintain compliance with the new 75 Percent Rule. By the fourth year of
the Rule, IRFs will be forced to turn away one out of every three
patients in order to operate as a rehabilitation hospital or unit.
My legislation will ensure that patients across America will continue
to have access to the rehabilitative care they need, and that experts
in this community are organized to advise and make recommendations to
Congress and the appropriate Federal agencies based on the realities
and challenges facing the rehabilitative field today and in the future.
The legislation provides an additional two years at the 50 percent
threshold to give facilities additional time to adjust to the new
categories and sets up a commission to advise Federal agencies on
rehabilitative care and what categories are appropriate to be included
in the 75 Percent Rule.
I am pleased that many prestigious organizations have joined me in
supporting the legislation. The American Hospital Association, the
American Academy of Physical Medicine and Rehabilitation, the
Federation of American Hospitals, the American Medical Rehabilitation
Providers Association and numerous other associations and advocacy
groups have endorsed the legislation. Just as I have heard from
patients and medical providers who have experienced problems with this
Rule, the members of these associations are also witnessing the
devastating effect the Rule is having on those who need this critical
care. In addition, Senator Santorum is co-sponsoring this bipartisan
effort.
I urge my colleagues to support this legislation, and I look forward
to its passage.
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. 1405
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 ``Preserving Patient Access to
Inpatient Rehabilitation Hospitals Act of 2005''.
SEC. 2. EFFECT ON ENFORCEMENT OF REGULATIONS.
(a) In General.--Notwithstanding section 412.23(b)(2) of
title 42, Code of Federal Regulations, during the period
beginning on July 1, 2005, and ending on the date that is 2
years after the date of enactment of this Act, the Secretary
of Health and Human Services (referred to in this Act as the
``Secretary'') shall not--
(1) require a compliance rate, pursuant to the criterion
(commonly known as the ``75 percent rule'') that is used to
determine whether a hospital or unit of a hospital is an
inpatient rehabilitation facility (as defined in the rule
published in the Federal Register on May 7, 2004, entitled
``Medicare Program; Final Rule; Changes to the Criteria for
Being Classified as an Inpatient Rehabilitation Facility''
(69 Fed. Reg. 25752)), that is greater than the 50 percent
compliance threshold that became effective on July 1, 2004;
(2) change the designation of an inpatient rehabilitation
facility in compliance with the 50 percent threshold; or
(3) conduct medical necessity review of inpatient
rehabilitation facilities using any guidelines, such as
fiscal intermediary Local Coverage Determinations, other than
the national criteria established in chapter 1, section 110
of the Medicare Benefits Policy Manual.
(b) Retroactive Status as an Inpatient Rehabilitation
Facility; Payments; Expedited Review.--The Secretary shall
establish procedures for--
(1) making any necessary retroactive adjustment to restore
the status of a facility as an inpatient rehabilitation
facility as a result of subsection (a);
(2) making any necessary payments to inpatient
rehabilitation facilities based on such adjustment for
discharges occurring on or after July 1, 2005 and before the
date of enactment of this Act; and
(3) developing and implementing an appeals process that
provides for expedited review of any adjustment to the status
of a facility as an inpatient rehabilitation facility made
during the period beginning on July 1, 2005 and ending on the
date that is 2 years after the date of enactment of this Act.
SEC. 3. NATIONAL ADVISORY COUNCIL ON MEDICAL REHABILITATION.
(a) Definitions.--In this section:
(1) Advisory council.--The term ``Advisory Council'' means
the National Advisory Council on Medical Rehabilitation
established under subsection (b).
(2) Appropriate federal agencies.--The term ``appropriate
Federal agencies'' means--
(A) the Agency for Healthcare Research and Quality;
(B) the Centers for Medicare & Medicaid Services;
(C) the National Institute on Disability and Rehabilitation
Research; and
(D) the National Center for Medical Rehabilitation
Research.
(b) Establishment.--Pursuant to section 222 of the Public
Health Service Act (42 U.S.C. 217a), the Secretary shall
establish an advisory panel to be known as the ``National
Advisory Council on Medical Rehabilitation''.
(c) Membership.--
(1) Appointment.--The Advisory Council shall be composed of
17 members, of whom--
(A) 9 members shall be appointed by the Secretary, in
consultation with the medical rehabilitation community, from
a diversity of backgrounds, including--
(i) physicians;
(ii) medicare beneficiaries;
(iii) representatives of inpatient rehabilitation
facilities; and
(iv) other practitioners experienced in rehabilitative
care; and
(B) 8 members, not more than 4 of whom are members of the
same political party, shall be appointed jointly by--
(i) the Majority Leader of the Senate;
(ii) the Minority Leader of the Senate;
(iii) the Speaker of the House of Representatives;
(iv) the Minority Leader of the House of Representatives;
(v) the Chairman and the Ranking Member of the Committee on
Finance of the Senate; and
(vi) the Chairman and the Ranking Member of the Committee
on Ways and Means of the House of Representatives.
(2) Date.--Members of the Advisory Council shall be
appointed not later than 30 days after the date of enactment
of this Act.
(3) Period of appointment; vacancies.--Members shall be
appointed for the life of the Council. A vacancy on the
Advisory Council shall be filled not later than 30 days after
the date on which the Advisory Council is given notice of the
vacancy, in the same manner as the original appointment.
(4) Meetings.--
(A) Initial meeting.--The Advisory Council shall conduct an
initial meeting not later than 120 days after the date of
enactment of this Act.
(B) Meetings.--The Advisory Council shall conduct such
meetings as the Council determines to be necessary to carry
out its duties but shall meet not less frequently than 2
times during each calendar year.
(d) Duties.--The duties of the Advisory Council shall
include the following:
(1) Advice and recommendations.--Providing advice and
recommendations to--
(A) Congress and the Secretary concerning the coverage of
rehabilitation services under the medicare program,
including--
(i) policy issues related to rehabilitative treatment and
reimbursement for rehabilitative care, such as issues
relating to any rulemaking relating to, or impacting,
rehabilitation hospitals and units;
(ii) the appropriate criteria for--
(I) determining clinical appropriateness of inpatient
rehabilitation facility admissions; and
(II) distinguishing an inpatient rehabilitation facility
from an acute care hospital and
[[Page S8320]]
other providers of intensive medical rehabilitation;
(iii) the efficacy of inpatient rehabilitation services, as
opposed to other post-acute inpatient settings, through a
comparison of quality and cost, controlling for patient
characteristics (such as medical severity and motor and
cognitive function) and discharge destination;
(iv) the effect of any medicare regulations on access to
inpatient rehabilitation care by medicare beneficiaries and
the clinical effectiveness of care available to such
beneficiaries in other health care settings; and
(v) any other topic or issue that the Secretary or Congress
requests the Advisory Council to provide advice and
recommendations on; and
(B) appropriate Federal agencies (as defined in subsection
(a)(3)) on how to best utilize available research funds and
authorities focused on medical rehabilitation research,
including post-acute care site of service and outcomes
research.
(e) Periodic Reports.--The Advisory Council shall provide
the Secretary with periodic reports that summarize--
(1) the Council's activities; and
(2) any recommendations for legislation or administrative
action the Council considers to be appropriate.
(f) Termination.--The Advisory Council shall terminate on
September 30, 2010.
(g) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the purposes of this section.
(h) Effective Date.--This section shall take effect on the
date of enactment of this Act.
______
By Mr. CORNYN:
S. 1406. A bill to protect American workers and responders by
ensuring the continued commercial availability of respirators and to
establish rules governing product liability actions against
manufacturers and sellers of respirators; to the Committee on the
Judiciary.
Mr. CORNYN. Mr. President, I rise today to introduce the ``Respirator
Access Assurance Act of 2005.'' This legislation is not a complex or
lengthy proposal, but it is critically important for our men and women
in uniform, our first responders, and the American public as we
continue to wage the war on terror. It is designed to protect the
companies that manufacture respirators from abusive litigation--the
very respirators that we need for protection against life-threatening
environmental hazards and contaminates.
Even as we continue today to debate important appropriations
legislation for the Department of Homeland Security, the many American
manufacturers and sellers of one of the types of equipment necessary in
the war on terror and for our first responders generally--respirators--
are being forced by misdirected litigation to decide whether to abandon
that market.
Since the year 2000, American respirator manufacturers have
experienced an avalanche of mass lawsuits in which thousands of
plaintiffs claim they suffered lung damage from respirators because of
defective designs and/or failure to provide adequate warnings. Between
2000 and 2004, well over 300,000 individual claims have been filed
against major respirator manufacturers. Many of these people show no
symptoms of illness.
Respirator manufacturers are included among dozens of defendants in
these lawsuits, despite some very important facts. First, respirators
don't cause lung disease--employers are legally responsible for
providing the right respirator to an employee for the environment in
which the employee will be working. Respirator manufacturers have no
role in that decision. Second, respirators are 100 percent regulated by
the U.S. Government. The National Institute for Occupational Safety and
Health, or NIOSH, sets the design standards for respirators, tests
every product in its own labs, approves all warning labels, and
monitors the manufacturing process to be sure respirators meet the
standards for which they were designed.
Perhaps most troubling is the extent to which these claims track very
closely with the recent explosion of asbestos and silicosis claims.
Recently, a number of ethical questions surrounding many of these
claims have come to light.
In my home State of Texas, a Federal court in Corpus Christi under
the watch of Judge Janis Graham Jack, has been trying to sort out a few
thousand of these cases. That Multi-District Litigation has turned up
evidence of fraud--in Judge Jack's words--``great red flags of fraud,''
and highlights attempts by some to recycle plaintiffs who have already
recovered in asbestos litigation by claiming they also have silicosis,
which is a virtual medical impossibility.
Just today, the Wall Street Journal ran an editorial highlighting
this ``tort scam.'' As it points out, ``Judge Jack not only blasted
nearly everyone of the 10,000 silicosis claims in front of her court,
she documented the fraudulent means by which lawyers, doctors, and
screening companies had manufactured the claims.'' She said, ``These
diagnoses were about litigation rather than health care . . . these
diagnoses were manufactured for money.''
I ask unanimous consent that the Wall Street Journal editorial be
printed in the Record.
There being no objection, the editorial was ordered to be printed in
the Record, as follows:
[From the Wall Street Journal, July 14, 2005]
The Silicosis Sheriff
If the criminal investigation of class-action titan Milberg
Weiss is anything to go by, prosecutors may finally be
starting to hold the trial bar accountable for its legal
abuses. Another good sign is that a separate federal grand
jury, this one in New York, is investigating the ringleaders
of the latest tort scam, silicosis.
Much of the credit for pointing the grand jury toward this
corruption goes to Texas federal Judge Janis Graham Jack, who
last month put the brakes on the silicosis machine with an
extraordinary 249-page decision. Judge Jack not only blasted
nearly every one of the 10,000 silicosis claims in front of
her court, she documented the fraudulent means by which
lawyers, doctors and screening companies had manufactured the
claims. ``These diagnoses were about litigation rather than
health care,'' wrote Judge Jack. ``These diagnoses were
manufactured for money.''
Perfectly said, and we only wish the fearless, judge had
been around to render a similar verdict back when the
asbestos blob got rolling. It was that juggernaut, largely
blessed by the courts, that first allowed trial lawyers to
co-opt doctors to create millions of phony claims and extort
billions out of corporate defendants. Encouraged by this
success, the trial bar revved up the same machinery for
silicosis, an occupational lung disease that can be fatal but
has been in decline for decades.
It was the fact of this decline that got Judge Jack's
attention. A former nurse, she couldn't understand how a
disease that causes on average fewer than 200 deaths annually
in the U.S. had suddenly resulted in more than 20,000 claims
from Mississippi and surrounding states. To get to the bottom
of the suits against some 250 companies, the Clinton
appointee held 20 months of pretrial proceedings. What she
found was a gigantic attempted swindle.
Her first discovery was that, of the more than 9,000
plaintiffs who supplied more information about their
``disease,'' 99% had been diagnosed with silicosis by the
same nine doctors. These physicians had been retained by law
firms or by ``screening companies'' that do mass X-rays on
behalf of law firms searching for plaintiffs. When these
physicians were deposed, they all but admitted they took
their orders from the lawyers and screening firms.
Which explains why none of them took a medical history,
while others never even saw their patients. One doctor signed
blank forms for the screening company and let his secretary
fill out the diagnoses. Yet another performed 1,239
diagnostic evaluations in 72 hours--less than four minutes
apiece. Dr. George Martindale, who diagnosed 3,617 patients
with silicosis, admitted that he didn't even know the
criteria for diagnosing the disease and had simply included
in each of his reports a paragraph provided by the screening
company.
Another shocker was that more than 65% of the silica
plaintiffs had previously been plaintiffs in an asbestos
suit, even though it is close to clinically impossible to
have both asbestosis and silicosis. Digging deeper, the judge
found that many of the same doctors had ginned up the same
patients for both asbestos and silicosis cases. One doctor,
Ray Harron, received nearly $5 million from 1996-2004 from a
leading screening company, N&M, and has supplied thousands of
silicosis diagnoses, and at least 52,000 asbestos-related
diagnoses.
Representatives from N&M admitted in court that they had no
medical training and that their company has never had a
medical director. They confirmed that law firms often set the
criteria for the silicosis screening process, and that the
screening companies were paid by the volume of people who
ultimately joined a lawsuit. As N&M owner Heath Mason
testified, his business depended on doing ``large numbers.''
Judge Jack reserved her most severe criticism for the
lawyers, noting that statistics alone should have shown that
their case defied ``all medical knowledge and logic,'' and
that by bringing it regardless they had exhibited a
``reckless disregard of the duty owed to the court.'' She
required the Houston firm of O'Quinn, Laminack & Pirtle to
pay the defendants' $825,000 in legal fees, and ordered
sanctions. She also made clear she was on to the tort bar's
tactics, noting that the ``clear motivation'' was ``to
inflate the
[[Page S8321]]
number of plaintiffs and overwhelm the defendants and the
judicial system.''
Judge Jack did not shy away from the word ``fraud'' in her
courtroom, and clearly someone at the Justice Department has
been paying attention. A Manhattan grand jury is now
investigating at least one of the screening companies, and
subpoenas have gone out to at least two of the doctors
involved.
Which shows how large a public service Judge Jack has
performed. She could easily have followed other judges and
accepted these mass claims at face value. Instead, she dug
into the individual claims and found the corruption
underneath. In doing so, she has not only stalled the entire
silicosis scam, she's opened the door to probing millions of
asbestos claims that have come before. The lawyers could
attempt to retry their dismissed claims in state court,
though amid a grand jury probe they might prefer that this
whole issue go away.
Over the years, too many judges have allowed tort lawyers
to hijack their courtrooms to perpetrate legal fraud. Judge
Jack is showing what good comes when judges truly care about
justice.
This level of fraud must be brought to the attention of the American
people. The extent to which this type of behavior is the norm rather
than the exception is troubling, to say the least. And the breadth of
this abuse extends so far now that it endangers the manufacturing of
masks for the American people--and people through the world for that
matter--who need to protect themselves from airborne contaminants.
Thousands of lawsuits have been directed toward these manufacturers--
largely indiscriminately.
Many of these cases might someday be dismissed or settled for a few
hundred dollars to avoid protracted litigation, but the costs of
getting to that point are enormous. Respirator companies have already
incurred millions of dollars in litigation and settlement costs, and
even after years of arguing in multiple State and local courts they
still face hundreds of thousands of individual claims. The costs of
this litigation burden are both unjustified and destructive.
Most of the net income these companies receive from respirator sales
is being eaten up in litigation costs. Some respirator companies have
already decided it is not worth it and have stopped selling in the
commercial market, and others are contemplating the same thing. If U.S.
manufacturers drop out of the market, those who need respirators will
have to use imports, which may be of lower quality and less reliable,
or use nothing at all. In either case we are letting this unfounded
litigation burden pose additional risk to millions of Americans who
need these devices to do their jobs and protect themselves, and all of
us, from untold harm.
That is why I am introducing this legislation today. The Act provides
respirator manufacturers with protection from the legal costs
associated with defending claims for which the manufacturers should
bear no liability. It provides that a respirator manufacturer may not
be subject to any claim for defective design or warning relating to a
respirator or any claim based on such an allegation if the respirator
has received NIOSH approval, and the respirator complied with the
NIOSH-approved design and labeling in effect on the date of
manufacture. This protection would continue notwithstanding a
subsequent action by NIOSH to modify, supercede, or withdraw the
approval. In addition, we have taken extra measures to clarify that
there are exceptions in the Act that would permit liability to be
imposed if the initial approval was obtained through fraud,
misrepresentation, or bribery.
This is a simple bill that will not cost the government a penny, will
not deprive any deserving plaintiff of the right to sue those who may
have caused him or her harm, and will assure that this vital industry
continues to be an American industry for a long time to come.
I look forward to working with my colleagues to move this proposal
forward.
Mr. President, I ask unanimous consent that an article from the
Houston Chronicle be printed in the Record.
There being no objection, the article was ordered to be printed in
the Record, as follows:
[From the Houston Chronicle, July 1, 2005]
Federal Judge Throws Out Thousands of Silica Diagnoses
Corpus Christi.--A federal judge has recommended throwing
out all but one of about 10,000 diagnoses of the lung ailment
silicosis that were used in lawsuits against industrial
companies, ruling that doctors ``manufactured'' findings of
the disease in hundreds of cases.
U.S. District Judge Janis Graham Jack's scathing 249-page
opinion, signed Thursday, finds that the diagnoses are
inadmissible in court. The bulk of the cases originate in
Mississippi, and Jack sent them back to the state courts
along with her report. She threw out the approximately 100
Texas cases that she felt she had jurisdiction over.
Jack's ruling also orders sanctions against Houston law
firm O'Quinn, Laminack & Pirtle, which brought roughly 2,000
of the suits. Lawyers from the firm did not immediately
return a call for comment today.
A doctor testifying before Jack in December withdrew
thousands of his diagnoses, saying he only briefly scanned X-
rays to give what he thought was a second opinion on the
degenerative diseases caused by inhaling quartz dust.
His withdrawal, made during consolidated pretrial
proceedings for lawsuits from several states, prompted Jack
to order every doctor and ``screening company'' to back up
the diagnoses in the lawsuits. More doctors withdrew their
diagnoses, and after hearings in February Jack said she
sensed ``red flags of fraud'' in the way plaintiffs were
recruited. ``These diagnoses were driven by neither health
nor justice,'' Jack wrote in her opinion Thursday. ``They
were manufactured for money.''
Danny Mulholland, a Mississippi-based defense attorney for
Ingersoll-Rand Co. and other companies, said the opinion was
``historic'' in an age where law firms recruit plaintiffs
with billboards and television ads.
``I think the way litigation has been done, and
particularly mass tort litigation, changed with the February
hearings which culminated in this order,'' he said. ``We'll
have to go back in state court and win there, but we expect
to, based on what Judge Jack has found.''
______
By Mr. NELSON of Florida (for himself and Mrs. Clinton):
S. 1407. A bill to provide grants to States and local governments to
assess the effectiveness of sexual predator electronic monitoring
programs; to the Committee on the Judiciary.
Mr. NELSON of Florida. Mr. President, I rise today on behalf of
myself and Senator Hillary Rodham Clinton of New York, to introduce the
Jessica Lunsford and Sarah Lunde Act. This bill will provide grants for
State and local governments to purchase the technology they need to
enhance monitoring of sexual predators.
This bill and the grants it provides are named after two young girls
from Florida, Jessica Lunsford and Sarah Lunde, who were both murdered
by convicted sex offenders. As the Lunsford and Lunde families mourned
these two beautiful girls, the Nation grieved with them. We are all
united in our desire to make sure that everything can be done to
prevent this from ever happening again. I hope this bill will serve as
a living memorial to Jessica Lunsford and Sarah Lunde, and serve as
some comfort to their families, as the grants in their names provided
in this bill will allow law enforcement to help prevent other families
from suffering similar tragedies.
Jessica Lunsford of Homosassa, FL, was a nine-year-old girl abducted
from her home, raped, and then buried alive by a convicted sex offender
who lived 150 feet from her home. Law enforcement had lost track of her
confessed murderer and did not know that he worked at the nearby school
that Jessica attended, despite his being a registered sex offender. A
few weeks following the news of this tragedy, 13-year-old Sarah Lunde
of Ruskin, FL, was murdered by her mother's ex-boyfriend. He is also a
convicted sex offender.
The Jessica Lunsford and Sarah Lunde grants provided for in this bill
will allow States and local government to purchase electronic
monitoring systems, like global positioning systems, that will provide
law enforcement with real time information on the whereabouts of sex
offenders released from prison to within 10 feet of their location. Law
enforcement will be able to restrict the movements of sex offenders by
programming these systems to alert authorities if a sex offender goes
to a park, amusement park, elementary school or other areas determined
to be off-limits. The ankle-bracelets used to monitor their movement
are tamper proof and will alert law enforcement in the event that an
offender has removed it so law enforcement can immediately act to
apprehend the offender.
In the United States there are an estimated 380,000 registered sex
offenders, although thousands have disappeared, according to
authorities. We have over
[[Page S8322]]
30,000 of these sex offenders in the State of Florida. In response to
the recent tragedies in Florida, Idaho, and North Dakota, several
States have enacted stronger laws to protect our children from sex
predators. In Florida, for example, the legislature passed a law that
will provide tougher sentences for child sex offenders, and aid law
enforcement in effectively monitoring those sex offenders. This law
will require sex offenders, released back into our communities, to wear
a bracelet that will have a global positioning system track them.
I applaud the initiative by Florida, and other States seeking to pass
similar laws, and I believe that it is important that there is an
appropriate Federal response that will be supportive of the States and
local governments that are addressing this problem. To be effective,
tough laws on these sexual predators of children must be properly
funded, and I believe these tough laws being passed by state
legislatures are worth properly funding when they will protect our
children.
The Jessica Lunsford and Sarah Lunde Act will support State and local
governments that, like Florida, are attempting to protect their
children by providing greater monitoring tools for law enforcement.
This bill will provide a total of $30 million in grants to States to
help implement State laws to get tougher on sex offenders released back
into their communities with electronic monitoring technology. The bill
will provide for $10 million in grants for fiscal years 2006 through
2008. The bill then directs the Attorney General to provide a report to
Congress assessing the effectiveness of the program and making
recommendations as to future funding levels.
There are no silver bullets to stop sexual predators from preying on
our children, but I believe that tough laws, such as the new Florida
statute, are going to go a long way in preventing sex offenders from
re-offending.
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. 1407
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 ``Jessica Lunsford and Sarah
Lunde Act''.
SEC. 2. SEXUAL PREDATOR MONITORING PROGRAM.
(a) Grants Authorized.--
(1) In general.--The Attorney General is authorized to
award grants (referred to as ``Jessica Lunsford and Sarah
Lunde Grants'') to State and local governments to assist such
States and local governments in--
(A) carrying out programs to outfit sexual offenders with
electronic monitoring units; and
(B) the employment of law enforcement officials necessary
to carry out such programs.
(2) Duration.--The Secretary shall award grants under this
Act for a period not to exceed 3 years.
(b) Application.--
(1) In general.--Each State or local government desiring a
grant under this Act shall submit an application to the
Attorney General at such time, in such manner, and
accompanied by such information as the Attorney General may
reasonably require.
(2) Contents.--Each application submitted pursuant to
paragraph (1) shall--
(A) describe the activities for which assistance under this
Act is sought; and
(B) provide such additional assurances as the Attorney
General determines to be essential to ensure compliance with
the requirements of this Act.
SEC. 3. INNOVATION.
In making grants under this Act, the Attorney General shall
ensure that different approaches to monitoring are funded to
allow an assessment of effectiveness.
SEC. 4. DEFINITION.
In this Act, the term ``sexual offender'' means an offender
18 years of age or older who commits a sexual offense against
a minor.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated
$10,000,000 for each of the fiscal years 2006 through 2008 to
carry out this Act.
(b) Report.--Not later than April 1, 2008, the Attorney
General shall report to Congress--
(1) assessing the effectiveness and value of programs
funded by this Act;
(2) comparing the cost-effectiveness of the electronic
monitoring to reduce sex offenses compared to other
alternatives; and
(3) making recommendations for continuing funding and the
appropriate levels for such funding.
______
By Mr. SMITH (for himself, Mr. Nelson of Florida, Mr. Stevens,
Mr. Inouye, Mr. McCain, and Mr. Pryor):
S. 1408. A bill to strengthen data protection and safeguards, require
data breach notification, and further prevent identity theft; to the
Committee on Commerce, Science, and Transportation.
Mr. SMITH. Mr. President, I rise today with Senators Bill Nelson,
Stevens, Inouye, McCain, and Pryor to introduce the Identity Theft
Protection Act of 2005. The introduction of this bill has been a
bipartisan effort and I thank my colleagues on the Senate Commerce
Committee for helping to negotiate a fair and balanced bill.
Identity theft is one of the fastest growing crimes in America. It is
estimated that over 10 million Americans are victims of some form of
identity theft each year. The total cost of this crime approaches $50
billion per year, with the average loss from the misuse of a victim's
personal information being almost $5,000. In 2004 alone, consumers who
were victims of ID theft spent a total of 297 million hours resolving
problems that arose from the crime.
Every year, the FTC compiles a list of the top 10 categories of
fraud-related complaints. Identity theft has topped that list of
complaints each of the past 5 years. My own State of Oregon ranks ninth
in the Nation for fraud complaints and identity theft.
Data breaches are becoming an increasingly common type of identity
theft that affects millions of consumers nationwide. Last year, there
were at least 43 known incidents of security breaches, potentially
affecting over 9 million individuals. These breaches range from sloppy
record keeping and security procedures by companies to extremely
sophisticated online thefts by computer hackers.
Our bipartisan bill ensures that businesses and organizations have
the proper security procedures in place to safeguard consumers'
sensitive and personal information. This legislation requires any
entity that acquires, maintains or utilizes sensitive personal
information to have a security program to safeguard such data.
Furthermore, we require these entities to verify the credentials of
third parties seeking personal and sensitive information and require
strict disposal and transfer procedures for such information.
It is imperative that consumers be notified of any potential breach
in the security of their personal information. The cost of an incident
of identity theft, both in terms of out-of-pocket expense and time
spent resolving problems, is significantly smaller if the misuse of the
victim's personal information is discovered quickly.
Our bill requires consumer notification if a data breach results in a
significant risk of identity theft. Individuals will be notified
immediately when any significant breach has occurred. Any breach
affecting a minimum of 1,000 individuals also requires the entity to
report the breach to the FTC and all the consumer reporting agencies.
We realize that an individual's Social Security Number deserves the
utmost security and protection against fraud, manipulation, and theft.
To that end, this bill restricts the collection of and access to Social
Security Numbers by limiting the solicitation of Social Security
Numbers and prohibiting their display on employee and student
identification cards.
In addition, our bill will allow consumers to place, lift, and
temporarily remove a security freeze on their credit, which would
prevent credit from being extended to third parties without
authorization from the consumer. We would also pre-empt state law to
create uniformity and compliance by businesses and organizations.
Protecting sensitive information is an issue of great importance for
all Americans so we are requiring the FTC to establish an Information
Working Group comprised of industry participants, consumer groups, and
other interested parties to develop best practices to protect sensitive
personal information.
Consumers should have confidence when they share their information
with others that their information will be protected. At the same time,
the ability of legitimate companies to access personal information
facilitates commerce and continues to have important benefits to
consumers.
We believe our legislation strikes the appropriate balance between
ensuring
[[Page S8323]]
the continued existence of these critical services and guaranteeing the
security of consumer's personal information. I urge my colleagues to
co-sponsor this important legislation to protect consumers from future
breaches of identity theft.
I ask unanimous consent that the text of legislation be printed in
the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1408
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 ``Identity
Theft Protection Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Protection of sensitive personal information.
Sec. 3. Notification of security breach risk.
Sec. 4. Security freeze.
Sec. 5. Enforcement.
Sec. 6. Enforcement by State attorneys general.
Sec. 7. Preemption of State law.
Sec. 8. Social security and driver's license number protection.
Sec. 9. Information security working group.
Sec. 10. Definitions.
Sec. 11. Authorization of appropriations.
Sec. 12. Effective dates.
SEC. 2. PROTECTION OF SENSITIVE PERSONAL INFORMATION.
(a) In General.--In accordance with regulations prescribed
by the Federal Trade Commission under subsection (b), a
covered entity shall take reasonable steps to protect against
security breaches and to prevent unauthorized access to
sensitive personal information the covered entity sells,
maintains, collects, or transfers.
(b) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Commission shall promulgate
regulations to implement subsection (a), including
regulations that--
(1) require covered entities to develop, implement, and
maintain an effective information security program that
contains administrative, technical, and physical safeguards
for sensitive personal information, taking into account the
use of technological safeguards, including encryption,
truncation, and other safeguards available or being developed
for such purposes;
(2) require procedures for verifying the credentials of any
third party seeking to obtain the sensitive personal
information of another person; and
(3) require disposal procedures to be followed by covered
entities that--
(A) dispose of sensitive personal information; or
(B) transfer sensitive personal information to third
parties for disposal.
SEC. 3. NOTIFICATION OF SECURITY BREACH RISK.
(a) Security Breaches Affecting 1,000 or More
Individuals.--
(1) In general.--If a covered entity discovers a breach of
security and determines that the breach of security affects
the sensitive personal information of 1,000 or more
individuals, then, before conducting the notification
required by subsection (b), it shall--
(A) report the breach to the Commission (or other
appropriate Federal regulator under section 5); and
(B) notify all consumer reporting agencies described in
section 603(p)(1) of the Fair Credit Reporting Act (15 U.S.C.
1681a(p)(1)) of the breach.
(2) FTC Website Publications.--Whenever the Commission
receives a report under paragraph (1)(A), it shall post a
report of the breach of security on its website without
disclosing any sensitive personal information or the names of
the individuals affected.
(b) Notification of Consumers.--Whenever a covered entity
discovers a breach of security and determines that the breach
of security has resulted in, or that there is a basis for
concluding that a reasonable risk of identity theft to 1 or
more individuals, the covered entity shall notify each such
individual.
(c) Methods of Notification; Notice Content.--Within 1 year
after the date of enactment of this Act, the Commission shall
promulgate regulations that establish methods of notification
to be followed by covered entities in complying with the
requirements of this section and the content of the notices
required. In promulgating those regulations, the Commission
shall take into consideration the types of sensitive personal
information involved, the nature and scope of the security
breach, other appropriate factors, and the most effective
means of notifying affected individuals.
(d) Timing of Notification.--
(1) In general.--Except as provided in paragraph (2),
notice required by subsection (a) shall be given--
(A) in the most expedient manner practicable;
(B) without unreasonable delay, but not later than 90 days
after the date on which the breach of security was discovered
by the covered entity; and
(C) in a manner that is consistent with any measures
necessary to determine the scope of the breach and restore
the security and integrity of the data system.
(2) Law enforcement and homeland security related delays.--
Notwithstanding paragraph (1), the giving of notice as
required by that paragraph may be delayed for a reasonable
period of time if--
(A) a Federal law enforcement agency determines that the
timely giving of notice under subsections (a) and (b), as
required by paragraph (1), would materially impede a civil or
criminal investigation; or
(B) a Federal national security or homeland security agency
determines that such timely giving of notice would threaten
national or homeland security.
SEC. 4. SECURITY FREEZE.
(a) In General.--
(1) Emplacement.--A consumer may place a security freeze on
his or her credit report by making a request to a consumer
credit reporting agency in writing or by telephone.
(2) Consumer disclosure.--If a consumer requests a security
freeze, the consumer credit reporting agency shall disclose
to the consumer the process of placing and removing the
security freeze and explain to the consumer the potential
consequences of the security freeze.
(b) Effect of Security Freeze.--
(1) Release of information blocked.--If a security freeze
is in place on a consumer's credit report, a consumer
reporting agency may not release information from the credit
report to a third party without prior express authorization
from the consumer.
(2) Information provided to third parties.--Paragraph (2)
does not prevent a consumer credit reporting agency from
advising a third party that a security freeze is in effect
with respect to the consumer's credit report. If a third
party, in connection with an application for credit, requests
access to a consumer credit report on which a security freeze
is in place, the third party may treat the application as
incomplete.
(c) Removal; Temporary Suspension.--
(1) In general.--Except as provided in paragraph (4), a
security freeze shall remain in place until the consumer
requests that the security freeze be removed. A consumer may
remove a security freeze on his or her credit report by
making a request to a consumer credit reporting agency in
writing or by telephone.
(2) Conditions.--A consumer credit reporting agency may
remove a security freeze placed on a consumer's credit report
only--
(A) upon the consumer's request, pursuant to paragraph (1);
or
(B) if the agency determines that the consumer's credit
report was frozen due to a material misrepresentation of fact
by the consumer.
(3) Notification to consumer.--If a consumer credit
reporting agency intends to remove a freeze upon a consumer's
credit report pursuant to paragraph (2)(B), the consumer
credit reporting agency shall notify the consumer in writing
prior to removing the freeze on the consumer's credit report.
(4) Temporary suspension.--A consumer may have a security
freeze on his or her credit report temporarily suspended by
making a request to a consumer credit reporting agency in
writing or by telephone and specifying beginning and ending
dates for the period during which the security freeze is not
to apply to that consumer's credit report.
(d) Response Times; Notification of Other Entities.--
(1) In general.--A consumer credit reporting agency shall--
(A) place a security freeze on a consumer's credit report
under subsection (a) no later than 5 business days after
receiving a request from the consumer under subsection
(a)(1); and
(B) remove, or temporarily suspend, a security freeze
within 3 business days after receiving a request for removal
or temporary suspension from the consumer under subsection
(c).
(2) Notification of other covered entities.--If the
consumer requests in writing or by telephone that other
covered entities be notified of the request, the consumer
reporting agency shall notify all other consumer reporting
agencies described in section 603(p)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681a(p)(1)) of the request within 3
days after placing, removing, or temporarily suspending a
security freeze on the consumer's credit report under
subsection (a), (c)(2)(A), or subsection (c)(4),
respectively.
(3) Implementation by other covered entities.--A consumer
reporting agency that is notified of a request under
paragraph (2) to place, remove, or temporarily suspend a
security freeze on a consumer's credit report shall place,
remove, or temporarily suspend the security freeze on that
credit report within 3 business days after receiving the
notification.
(e) Confirmation.--Whenever a consumer credit reporting
agency places, removes, or temporarily suspends a security
freeze on a consumer's credit report at the request of that
consumer under subsection (a) or (c), respectively, it shall
send a written confirmation thereof to the consumer within 10
business days after placing, removing, or temporarily
suspending the security freeze on the credit report. This
subsection does not apply to the placement, removal, or
temporary suspension of a security freeze by a consumer
reporting agency because of a notification received under
subsection (d)(2).
(f) ID Required.--A consumer credit reporting agency may
not place, remove, or temporarily suspend a security freeze
on a consumer's credit report at the consumer's request
unless the consumer provides proper identification (within
the meaning of section
[[Page S8324]]
610(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681h)
and the regulations thereunder.
(g) Exceptions.--This section does not apply to the use of
a consumer credit report by any of the following:
(1) A person or entity, or a subsidiary, affiliate, or
agent of that person or entity, or an assignee of a financial
obligation owing by the consumer to that person or entity, or
a prospective assignee of a financial obligation owing by the
consumer to that person or entity in conjunction with the
proposed purchase of the financial obligation, with which the
consumer has or had prior to assignment an account or
contract, including a demand deposit account, or to whom the
consumer issued a negotiable instrument, for the purposes of
reviewing the account or collecting the financial obligation
owing for the account, contract, or negotiable instrument.
(2) Any Federal, State or local agency, law enforcement
agency, trial court, or private collection agency acting
pursuant to a court order, warrant, or subpoena.
(3) A child support agency or its agents or assigns acting
pursuant to subtitle D of title IV of the Social Security Act
(42 U.S.C. et seq.) or similar State law.
(4) The Department of Health and Human Services, a similar
State agency, or the agents or assigns of the Federal or
State agency acting to investigate medicare or medicaid
fraud.
(5) The Internal Revenue Service or a State or municipal
taxing authority, or a State department of motor vehicles, or
any of the agents or assigns of these Federal, State, or
municipal agencies acting to investigate or collect
delinquent taxes or unpaid court orders or to fulfill any of
their other statutory responsibilities.
(6) The use of consumer credit information for the purposes
of prescreening as provided for by the Federal Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.).
(7) Any person or entity administering a credit file
monitoring subscription to which the consumer has subscribed.
(8) Any person or entity for the purpose of providing a
consumer with a copy of his or her credit report or credit
score upon the consumer's request.
(h) Fees.--
(1) In general.--Except as provided in paragraph (2), a
consumer credit reporting agency may charge a reasonable fee,
as determined by the Commission, for placing, removing, or
temporarily suspending a security freeze on a consumer's
credit report.
(2) ID theft victims.--A consumer credit reporting agency
may not charge a fee for placing, removing, or temporarily
suspending a security freeze on a consumer's credit report
if--
(A) the consumer is a victim of identity theft; and
(B) the consumer has filed a police report with respect to
the theft.
(i) Limitation on Information Changes in Frozen Reports.--
(1) In general.--If a security freeze is in place on a
consumer's credit report, a consumer credit reporting agency
may not change any of the following official information in
that credit report without sending a written confirmation of
the change to the consumer within 30 days after the change is
made:
(A) Name.
(B) Date of birth.
(C) Social Security number.
(D) Address.
(2) Confirmation.--Paragraph (1) does not require written
confirmation for technical modifications of a consumer's
official information, including name and street
abbreviations, complete spellings, or transposition of
numbers or letters. In the case of an address change, the
written confirmation shall be sent to both the new address
and to the former address.
(j) Certain Entity Exemptions.--
(1) Agregators and other agencies.--The provisions of
subsections (a) through (h) do not apply to a consumer credit
reporting agency that acts only as a reseller of credit
information by assembling and merging information contained
in the data base of another consumer credit reporting agency
or multiple consumer credit reporting agencies, and does not
maintain a permanent data base of credit information from
which new consumer credit reports are produced.
(2) Other exempted entities.--The following entities are
not required to place a security freeze in a credit report:
(A) A check services or fraud prevention services company,
which issues reports on incidents of fraud or authorizations
for the purpose of approving or processing negotiable
instruments, electronic funds transfers, or similar methods
of payments.
(B) A deposit account information service company, which
issues reports regarding account closures due to fraud,
substantial overdrafts, ATM abuse, or similar negative
information regarding a consumer, to inquiring banks or other
financial institutions for use only in reviewing a consumer
request for a deposit account at the inquiring bank or
financial institution.
SEC. 5. ENFORCEMENT.
(a) Enforcement by Commission.--Except as provided in
subsection (c), this Act shall be enforced by the Commission.
(b) Violation is Unfair or Deceptive Act or Practice.--The
violation of any provision of this Act shall be treated as an
unfair or deceptive act or practice proscribed under a rule
issued under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)).
(c) Enforcement by Certain Other Agencies.--Compliance with
this Act shall be enforced under--
(1) section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818), in the case of--
(A) national banks, and Federal branches and Federal
agencies of foreign banks, by the Office of the Comptroller
of the Currency;
(B) member banks of the Federal Reserve System (other than
national banks), branches and agencies of foreign banks
(other than Federal branches, Federal agencies, and insured
State branches of foreign banks), commercial lending
companies owned or controlled by foreign banks, and
organizations operating under section 25 or 25A of the
Federal Reserve Act (12 U.S.C. 601 and 611), by the Board;
and
(C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve
System) and insured State branches of foreign banks, by the
Board of Directors of the Federal Deposit Insurance
Corporation;
(2) section 8 of the Federal Deposit Insurance Act (12
U.S.C. 1818), by the Director of the Office of Thrift
Supervision, in the case of a savings association the
deposits of which are insured by the Federal Deposit
Insurance Corporation;
(3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.)
by the National Credit Union Administration Board with
respect to any Federal credit union; and
(4) the Securities and Exchange Act of 1934 (15 U.S.C. 78a
et seq.) by the Securities and Exchange Commission with
respect to--
(A) a broker or dealer subject to that Act;
(B) an investment company subject to the Investment Company
Act of 1940 (15 U.S.C. 80a-1 et seq.); and
(C) an investment advisor subject to the Investment
Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.).
(d) Exercise of Certain Powers.--For the purpose of the
exercise by any agency referred to in subsection (c) of its
powers under any Act referred to in that subsection, a
violation of this Act is deemed to be a violation of a
requirement imposed under that Act. In addition to its powers
under any provision of law specifically referred to in
subsection (c), each of the agencies referred to in that
subsection may exercise, for the purpose of enforcing
compliance with any requirement imposed under this Act, any
other authority conferred on it by law.
(e) Penalties.--
(1) In general.--Notwithstanding section 5(m) of the
Federal Trade Commission Act (15 U.S.C. 45(m)), the
Commission may not obtain a civil penalty under that section
for a violation of this Act in excess of--
(A) $11,000 for each such individual; and
(B) $11,000,000 in the aggregate for all such individuals
with respect to the same violation.
(2) Other authority not affected.--Nothing in this Act
shall be construed to limit or affect in any way the
Commission's authority to bring enforcement actions or take
any other measure under the Federal Trade Commission Act (15
U.S.C. 41 et seq.) or any other provision of law.
(f) No Private Cause of Action.--Nothing in this Act
establishes a private cause of action against a covered
entity for the violation of any provision of this Act.
(g) Compliance with Gramm-Leach-Bliley Act.--Any person to
which title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801
et seq.) applies shall be deemed to be in compliance with the
notification requirements of this Act with respect to a
breach of security if that person is in compliance with the
notification requirements of that title with respect to that
breach of security.
SEC. 6. ENFORCEMENT BY STATE ATTORNEYS GENERAL.
(a) In General.--A State, as parens patriae, may bring a
civil action on behalf of its residents in an appropriate
district court of the United States to enforce the provisions
of this Act, or to impose the civil penalties authorized by
section 5, whenever the attorney general of the State has
reason to believe that the interests of the residents of the
State have been or are being threatened or adversely affected
by a covered entity that violates this Act or a regulation
under this Act.
(b) Notice.--The State shall serve written notice to the
Commission (or other appropriate Federal regulator under
section 5) of any civil action under subsection (a) prior to
initiating such civil action. The notice shall include a copy
of the complaint to be filed to initiate such civil action,
except that if it is not feasible for the State to provide
such prior notice, the State shall provide such notice
immediately upon instituting such civil action.
(c) Authority To Intervene.--Upon receiving the notice
required by subsection (b), the Commission (or other
appropriate Federal regulator under section 5) may intervene
in such civil action and upon intervening--
(1) be heard on all matters arising in such civil action;
and
(2) file petitions for appeal of a decision in such civil
action.
(d) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this section shall
prevent the attorney general of a State from exercising the
powers conferred on the attorney general by the laws of such
State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence.
[[Page S8325]]
(e) Venue; Service of Process.--In a civil action brought
under subsection (a)--
(1) the venue shall be a judicial district in which--
(A) the covered entity operates;
(B) the covered entity was authorized to do business; or
(C) where the defendant in the civil action is found;
(2) process may be served without regard to the territorial
limits of the district or of the State in which the civil
action is instituted; and
(3) a person who participated with a covered entity in an
alleged violation that is being litigated in the civil action
may be joined in the civil action without regard to the
residence of the person.
(f) Limitation on State Action While Federal Action Is
Pending.--If the Commission (or other appropriate Federal
agency under section 5) has instituted a civil action or an
administrative action for violation of this Act, no State
attorney general, or official or agency of a State, may bring
an action under this subsection during the pendency of that
action against any defendant named in the complaint of the
Commission or the other agency for any violation of this Act
alleged in the complaint.
(g) Enforcement of State Law.--Nothing contained in this
section shall prohibit an authorized State official from
proceeding in State court to enforce a civil or criminal
statute of such State.
SEC. 7. PREEMPTION OF STATE LAW.
(a) In General.--This Act preempts any State or local law,
regulation, or rule that requires a covered entity--
(1) to develop, implement, or maintain information security
programs to which this Act applies; or
(2) to notify individuals of breaches of security regarding
their sensitive personal information.
(b) Liability.--This Act preempts any State or local law,
regulation, rule, administrative procedure, or judicial
precedent under which liability is imposed on a covered
entity for failure--
(1) to implement and maintain an adequate information
security program; or
(2) to notify an individual of any breach of security
pertaining to any sensitive personal information about that
individual.
(c) Security Freeze.--This Act preempts any State or local
law, regulation, or rule that requires consumer reporting
agencies to impose a security freeze on consumer credit
reports at the request of a consumer.
SEC. 8. SOCIAL SECURITY NUMBER PROTECTION.
(a) Prohibition of Unnecessary Solicitation of Social
Security Numbers.--No covered entity may solicit any social
security number from an individual unless there is a specific
use of the social security number for which no other
identifier reasonably can be used.
(b) Prohibition of the Display of Social Security Numbers
on Employee Identification Cards, Etc..--
(1) In general.--No covered entity may display the social
security number (or any derivative of such number) of an
individual on any card or tag that is commonly provided to
employees (or to their family members), faculty, staff, or
students for purposes of identification.
(2) Driver's Licenses.--A State may not display the social
security number of an individual on driver's licenses issued
by that State.
(c) Prohibition of Inmate Access to Social Security Account
Numbers.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)), as amended by
subsection (b), is amended by adding at the end the following
new clause:
``(xi) No executive, legislative, or judicial agency or
instrumentality of the Federal Government or of a State or
political subdivision thereof (or person acting as an agent
of such an agency or instrumentality) may employ, or enter
into a contract for the use or employment of, prisoners in
any capacity that would allow such prisoners access to the
social security account numbers of other individuals. For
purposes of this clause, the term `prisoner' means an
individual confined in a jail, prison, or other penal
institution or correctional facility.''.
(2) Treatment of current arrangements.--In the case of--
(i) prisoners employed as described in clause (xi) of
section 205(c)(2)(C) of the Social Security Act (42 U.S.C.
405(c)(2)(C)), as added by paragraph (1), on the date of
enactment of this Act, and
(ii) contracts described in such clause in effect on such
date,
the amendment made by this section shall take effect 90 days
after the date of enactment of this Act.
SEC. 9. INFORMATION SECURITY WORKING GROUP.
(a) Information Security Working Group.--The Chairman of
the Commission shall establish an Information Security
Working Group to develop best practices to protect sensitive
personal information stored and transferred. The Working
Group shall be composed of industry participants, consumer
groups, and other interested parties.
(b) Report.--Not later than 12 months after the date on
which the Working Group is established under subsection (a),
the Working Group shall submit to Congress a report on their
findings.
SEC. 10. DEFINITIONS.
In this Act:
(1) Breach of security.--The term ``breach of security''
means unauthorized access to and acquisition of data in any
form or format containing sensitive personal information that
compromises the security or confidentiality of such
information and establishes a basis to conclude that a
reasonable risk of identity theft to an individual exists.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Consumer credit reporting agency.--The term ``consumer
credit reporting agency'' means any person which, for
monetary fees, dues, or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing credit
reports to third parties, and which uses any means or
facility of interstate commerce for the purpose of preparing
or furnishing credit reports.
(4) Covered entity.--The term ``covered entity'' means a
sole proprietorship, partnership, corporation, trust, estate,
cooperative, association, or other commercial entity, and any
charitable, educational, or nonprofit organization, that
acquires, maintains, or utilizes sensitive personal
information.
(5) Credit report.--The term ``credit report'' means a
consumer report, as defined in section 603(d) of the Federal
Fair Credit Reporting Act (15 U.S.C. 1681a(p)), that is used
or expected to be used or collected in whole or in part for
the purpose of serving as a factor in establishing a
consumer's eligibility for credit for personal, family or
household purposes.
(6) Identity theft.--The term ``identity theft'' means the
unauthorized acquisition, purchase, sale, or use by any
person of an individual's sensitive personal information
that--
(A) violates section 1028 of title 18, United States Code,
or any provision of State law in pari materia; or
(B) results in economic loss to the individual whose
sensitive personal information was used.
(7) Reviewing the account.--The term ``reviewing the
account'' includes activities related to account maintenance,
monitoring, credit line increases, and account upgrades and
enhancements.
(8) Sensitive personal information.--
(A) In general.--Except as provided in subparagraphs (B)
and (C), the term ``sensitive personal information'' means an
individual's name, address, or telephone number combined with
1 or more of the following data elements related to that
individual:
(i) Social security number, taxpayer identification number,
or employer identification number.
(ii) Financial account number, or credit card or debit card
number of such individual, combined with any required
security code, access code, or password that would permit
access to such individual's account.
(iii) State driver's license identification number or State
resident identification number.
(iv) Consumer credit report.
(v) Employee, faculty, student, or United States armed
forces serial number.
(vi) Genetic or biometric information.
(vii) Mother's maiden name.
(B) FTC modifications.--The Commission may, through a
rulemaking proceeding, designate other identifying
information that may be used to effectuate identity theft as
sensitive personal information for purposes of this Act and
limit or exclude any information described in subparagraph
(A) from the definition of sensitive personal information for
purposes of this Act.
(C) Public records.--Nothing in this Act prohibits a
covered entity from obtaining, aggregating, or using
sensitive personal information it lawfully obtains from
public records in a manner that does not violate this Act.
SEC. 11. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission
$1,000,000 for each of fiscal years 2006 through 2010 to
carry out this Act.
SEC. 12. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), the
provisions of this Act take effect upon its enactment.
(b) Provisions Requiring Rulemaking.--The Commission shall
initiate 1 or more rulemaking proceedings under sections 2,
3, and 4 within 45 days after the date of enactment of this
Act. The Commission shall promulgate all final rules pursuant
to those rulemaking proceedings within 1 year after the date
of enactment of this Act. The provisions of sections 2, 3,
and 4 shall take effect on the same date 6 months after the
date on which the Commission promulgates the last final rule
under the proceeding or proceedings commenced under the
preceding sentence.
(c) Preemption.--Section 7 shall take effect at the same
time as sections 2, 3, and 4 take effect.
Mr. STEVENS. Mr. President, I am pleased to join Senators Inouye,
Smith, McCain, Nelson, and Pryor in introducing a bipartisan bill to
address the growing perpetration of identity theft against American
consumers. The bipartisan bill, the ``Identity Theft Protection Act,''
is the product of two Commerce Committee hearings that featured
testimony from businesses that aggregate and sell consumer information
as a commodity, and the full
[[Page S8326]]
Federal Trade Commission, FTC, which recommended much of what is
contained in this legislation.
The occurrence of identity theft in the United States has reached
epidemic proportions. The incidence of this crime rose 15 percent in
2002, and 80 percent in 2003. The FTC stated in February 2005 that each
year nearly 10 million Americans--or roughly 4.6 percent of the
domestic adult population--are victimized by identity thieves. The FTC
indicates that physical and online identity theft accounted for 39
percent of the more than 635,000 consumer fraud complaints filed last
year with the agency. The costs associated with identity theft are
enormous. In 2003, the FTC estimated that the losses to businesses and
financial institutions due to identity theft totaled $48 billion, and
the out-of-pocket losses to consumers totaled $5 billion, which does
not take into account the average 300 hours spent by victims restoring
their good names.
This year alone, there have been at least 43 reported information
breaches affecting potentially more than 9 million Americans. This
string of data theft has focused the attention of Congress, consumers,
and privacy proponents. It has raised questions concerning the business
practices of data brokers and whether consumers' personal information
is adequately protected from identity thieves. The difficulty of
finding solutions to this and other types of identity theft is striking
a balance between ensuring adequate security of sensitive personal
information while not inhibiting the legitimate free flow of
information that is vital to the domestic economy and law enforcement.
The bill that we introduce today will not end all identity theft. No
legislation can accomplish that objective. But this bill would require
bolstered information safeguards and ensure notification of consumers
whose sensitive personal information has been acquired without
authorization. More specifically, the bill, among other things, would
direct the FTC to develop rules that would require all covered entities
that handle sensitive personal information to develop, implement, and
maintain appropriate safeguards to protect such information, and
provide effective notice to consumers in the event of a breach. The
bill would limit the solicitation of Social Security numbers by covered
entities, and restrict employers, State agencies, or educational
institutions from displaying social security numbers on identification
tags for employees and students, and for drivers licenses. The bill
also would allow consumers to freeze their credit for a reasonable fee
to protect themselves from identity theft, and preempt similar State or
local law in an effort to provide a uniform Federal standard rather
than a patchwork of widely varying State or local laws.
I look forward to working with my colleagues on legislation that will
mitigate to the greatest extent possible the occurrence of identity
theft in this country, but without inhibiting an information sharing
system that yields extraordinary benefits to every American.
______
By Ms. MURKOWSKI:
S. 1409. A bill to amend the Safe Drinking Water Act Amendments of
1996 to modify the grant program to improve sanitation in rural and
Native villages in the State of Alaska; to the Committee on Environment
and Public Works.
Ms. MURKOWSKI. Mr. President, I rise to introduce a bill that will
allow the Environmental Protection Agency to continue to provide grant
funding and technical assistance to small, rural communities in Alaska
for critical water and sewer projects. These rural communities are only
accessible by either aircraft or boat.
This important funding was originally authorized as part of the Safe
Drinking Water Act Amendments of 1996 and was reauthorized in 2000. The
authorization for this program expires at the end of fiscal year 2005.
Every fiscal year, the EPA transfers funding authorized by this program
to the State of Alaska's Village Safe Water Program, which is managed
by the Alaska Department of Environmental Conservation.
The water and sewer conditions in the villages in Alaska that still
need this critical funding rival the conditions in rural communities in
third world countries. For example, residents in some villages in
Alaska have to go to a central source in the community to get fresh
water. This source is usually a well. Instead of flushing toilets,
residents have to use a device called a ``honeybucket.'' This device is
a large bucket with a toilet seat on top. When the honeybucket is full,
it is usually dumped in a lagoon or on land. Sometimes, these dump
locations are near sources of drinking water.
The Village Safe Water program has been a success over the years.
Many homes in Alaska's rural communities now have plumbing due to funds
authorized by this program. However, thirty-three percent of homes in
these communities still do not have in-house plumbing. It is
unacceptable that the residents of these communities still do not have
access to conventional plumbing in their homes in 2005.
Earlier this year, the Office of Management and Budget published a
Program Assessment Rating Tool report concerning this program. This
report found several deficiencies concerning the administration of this
program. However, I have been assured that the EPA and the Alaska
Department of Environmental Conservation are working closely together
to correct these deficiencies.
It is imperative that we reauthorize this critically important
program before the end of this fiscal year. The health and well-being
of rural Alaskans is at stake.
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. 1409
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. GRANTS TO ALASKA TO IMPROVE SANITATION IN RURAL
AND NATIVE VILLAGES.
Section 303 of the Safe Drinking Water Act Amendments of
1996 (33 U.S.C. 1263a) is amended--
(1) in subsection (b), by striking ``50 percent'' and
inserting ``75 percent''; and
(2) in subsection (e)--
(A) by striking ``$40,000,000'' and inserting
``$45,000,000''; and
(B) by striking ``2005'' and inserting ``2010''.
____________________