[Congressional Record Volume 151, Number 124 (Thursday, September 29, 2005)]
[Senate]
[Pages S10725-S10759]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SPECTER (for himself, Mr. Leahy, Mrs. Feinstein, and Mr. 
        Feingold):
  S. 1789. A bill to prevent and mitigate identity theft, to ensure 
privacy to provide notice of security breaches, and to enhance criminal 
penalties, law enforcement assistance, and other protections against 
security breaches, fraudulent access, and misuse of personally 
identifiable information; to the Committee on the Judiciary.
  Mr. SPECTER. 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. 1789

       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 ``Personal 
     Data Privacy and Security Act of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

 TITLE I--ENHANCING PUNISHMENT FOR IDENTITY THEFT AND OTHER VIOLATIONS 
                      OF DATA PRIVACY AND SECURITY

Sec. 101. Fraud and related criminal activity in connection with 
              unauthorized access to personally identifiable 
              information.
Sec. 102. Organized criminal activity in connection with unauthorized 
              access to personally identifiable information.
Sec. 103. Concealment of security breaches involving sensitive 
              personally identifiable information.
Sec. 104. Aggravated fraud in connection with computers.
Sec. 105. Review and amendment of Federal sentencing guidelines related 
              to fraudulent access to or misuse of digitized or 
              electronic personally identifiable information.

  TITLE II--ASSISTANCE FOR STATE AND LOCAL LAW ENFORCEMENT COMBATING 
 CRIMES RELATED TO FRAUDULENT, UNAUTHORIZED, OR OTHER CRIMINAL USE OF 
                  PERSONALLY IDENTIFIABLE INFORMATION

Sec. 201. Grants for State and local enforcement.
Sec. 202. Authorization of appropriations.

                        TITLE III--DATA BROKERS

Sec. 301. Transparency and accuracy of data collection.

[[Page S10726]]

Sec. 302. Enforcement.
Sec. 303. Relation to State laws.
Sec. 304. Effective date.

 TITLE IV--PRIVACY AND SECURITY OF PERSONALLY IDENTIFIABLE INFORMATION

             Subtitle A--Data Privacy and Security Program

Sec. 401. Purpose and applicability of data privacy and security 
              program.
Sec. 402. Requirements for a personal data privacy and security 
              program.
Sec. 403. Enforcement.
Sec. 404. Relation to State laws.

                Subtitle B--Security Breach Notification

Sec. 421. Right to notice of security breach.
Sec. 422. Notice procedures.
Sec. 423. Content of notice.
Sec. 424. Risk assessment and fraud prevention notice exemptions.
Sec. 425. Victim protection assistance.
Sec. 426. Enforcement.
Sec. 427. Relation to State laws.
Sec. 428. Study on securing personally identifiable information in the 
              digital era.
Sec. 429. Reporting on risk assessment exemption.
Sec. 430. Authorization of appropriations.
Sec. 431. Reporting on risk assessment exemption.
Sec. 432. Effective date.

        TITLE V--GOVERNMENT ACCESS TO AND USE OF COMMERCIAL DATA

Sec. 501. General Services Administration review of contracts.
Sec. 502. Requirement to audit information security practices of 
              contractors and third party business entities.
Sec. 503. Privacy impact assessment of government use of commercial 
              information services containing personally identifiable 
              information.
Sec. 504. Implementation of Chief Privacy Officer requirements.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) databases of personally identifiable information are 
     increasingly prime targets of hackers, identity thieves, 
     rogue employees, and other criminals, including organized and 
     sophisticated criminal operations;
       (2) identity theft is a serious threat to the nation's 
     economic stability, homeland security, the development of e-
     commerce, and the privacy rights of Americans;
       (3) over 9,300,000 individuals were victims of identity 
     theft in America last year;
       (4) security breaches are a serious threat to consumer 
     confidence, homeland security, e-commerce, and economic 
     stability;
       (5) it is important for business entities that own, use, or 
     license personally identifiable information to adopt 
     reasonable procedures to ensure the security, privacy, and 
     confidentially of that personally identifiable information;
       (6) individuals whose personal information has been 
     compromised or who have been victims of identity theft should 
     receive the necessary information and assistance to mitigate 
     their damages and to restore the integrity of their personal 
     information and identities;
       (7) data brokers have assumed a significant role in 
     providing identification, authentication, and screening 
     services, and related data collection and analyses for 
     commercial, nonprofit, and government operations;
       (8) data misuse and use of inaccurate data have the 
     potential to cause serious or irreparable harm to an 
     individual's livelihood, privacy, and liberty and undermine 
     efficient and effective business and government operations;
       (9) there is a need to insure that data brokers conduct 
     their operations in a manner that prioritizes fairness, 
     transparency, accuracy, and respect for the privacy of 
     consumers;
       (10) government access to commercial data can potentially 
     improve safety, law enforcement, and national security; and
       (11) because government use of commercial data containing 
     personal information potentially affects individual privacy, 
     and law enforcement and national security operations, there 
     is a need for Congress to exercise oversight over government 
     use of commercial data.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Agency.--The term ``agency'' has the same meaning given 
     such term in section 551 of title 5, United States Code.
       (2) Affiliate.--The term ``affiliate'' means persons 
     related by common ownership or by corporate control.
       (3) Business entity.--The term ``business entity'' means 
     any organization, corporation, trust, partnership, sole 
     proprietorship, unincorporated association, venture 
     established to make a profit, or nonprofit, and any 
     contractor, subcontractor, affiliate, or licensee thereof 
     engaged in interstate commerce.
       (4) Identity theft.--The term ``identity theft'' means a 
     violation of section 1028 of title 18, United States Code, or 
     any other similar provision of applicable State law.
       (5) Data broker.--The term ``data broker'' means a business 
     entity which for monetary fees, dues, or on a cooperative 
     nonprofit basis, currently or regularly engages, in whole or 
     in part, in the practice of collecting, transmitting, or 
     providing access to sensitive personally identifiable 
     information primarily for the purposes of providing such 
     information to nonaffiliated third parties on a nationwide 
     basis on more than 5,000 individuals who are not the 
     customers or employees of the business entity or affiliate.
       (6) Data furnisher.--The term ``data furnisher'' means any 
     agency, governmental entity, organization, corporation, 
     trust, partnership, sole proprietorship, unincorporated 
     association, venture established to make a profit, or 
     nonprofit, and any contractor, subcontractor, affiliate, or 
     licensee thereof, that serves as a source of information for 
     a data broker.
       (7) Personal electronic record.--The term ``personal 
     electronic record'' means data associated with an individual 
     contained in a database, networked or integrated databases, 
     or other data system that holds sensitive personally 
     identifiable information of that individual and is provided 
     to non-affiliated third parties.
       (8) Personally identifiable information.--The term 
     ``personally identifiable information'' means any 
     information, or compilation of information, in electronic or 
     digital form serving as a means of identification, as defined 
     by section 1028(d)(7) of title 18, United State Code.
       (9) Public record source.--The term ``public record 
     source'' means any agency, Federal court, or State court that 
     maintains personally identifiable information in records 
     available to the public.
       (10) Security breach.--
       (A) In general.--The term ``security breach'' means 
     compromise of the security, confidentiality, or integrity of 
     computerized data through misrepresentation or actions that 
     result in, or there is a reasonable basis to conclude has 
     resulted in, the unauthorized acquisition of and access to 
     sensitive personally identifiable information.
       (B) Exclusion.--The term ``security breach'' does not 
     include--
       (i) a good faith acquisition of sensitive personally 
     identifiable information by a business entity or agency, or 
     an employee or agent of a business entity or agency, if the 
     sensitive personally identifiable information is not subject 
     to further unauthorized disclosure; or
       (ii) the release of a public record not otherwise subject 
     to confidentiality or nondisclosure requirements.
       (11) Sensitive personally identifiable information.--The 
     term ``sensitive personally identifiable information'' means 
     any information or compilation of information, in electronic 
     or digital form that includes:
       (A) An individual's name in combination with any 1 of the 
     following data elements:
       (i) A non-truncated social security number, driver's 
     license number, passport number, or alien registration 
     number.
       (ii) Any 2 of the following:

       (I) Information that relates to--

       (aa) the past, present, or future physical or mental health 
     or condition of an individual;
       (bb) the provision of health care to an individual; or
       (cc) the past, present, or future payment for the provision 
     of health care to an individual.

       (II) Home address or telephone number.
       (III) Mother's maiden name, if identified as such.
       (IV) Month, day, and year of birth.

       (iii) Unique biometric data such as a finger print, voice 
     print, a retina or iris image, or any other unique physical 
     representation.
       (iv) A unique electronic identification number, user name, 
     or routing code in combination with the associated security 
     code, access code, or password.
       (v) Any other information regarding an individual 
     determined appropriate by the Federal Trade Commission.
       (B) A financial account number or credit or debit card 
     number in combination with the required security code, access 
     code, or password.

 TITLE I--ENHANCING PUNISHMENT FOR IDENTITY THEFT AND OTHER VIOLATIONS 
                      OF DATA PRIVACY AND SECURITY

     SEC. 101. FRAUD AND RELATED CRIMINAL ACTIVITY IN CONNECTION 
                   WITH UNAUTHORIZED ACCESS TO PERSONALLY 
                   IDENTIFIABLE INFORMATION.

       Section 1030(a)(2) of title 18, United States Code, is 
     amended--
       (1) in subparagraph (B), by striking ``or'' after the 
     semicolon;
       (2) in subparagraph (C), by inserting ``or'' after the 
     semicolon; and
       (3) by adding at the end the following:
       ``(D) information contained in the databases or systems of 
     a data broker, or in other personal electronic records, as 
     such terms are defined in section 3 of the Personal Data 
     Privacy and Security Act of 2005;''.

     SEC. 102. ORGANIZED CRIMINAL ACTIVITY IN CONNECTION WITH 
                   UNAUTHORIZED ACCESS TO PERSONALLY IDENTIFIABLE 
                   INFORMATION.

       Section 1961(1) of title 18, United States Code, is amended 
     by inserting ``section 1030(a)(2)(D)(relating to fraud and 
     related activity in connection with unauthorized access to 
     personally identifiable information,'' before ``section 
     1084''.

     SEC. 103. CONCEALMENT OF SECURITY BREACHES INVOLVING 
                   SENSITIVE PERSONALLY IDENTIFIABLE INFORMATION.

       (a) In General.--Chapter 47 of title 18, United States 
     Code, is amended by adding at the end the following:

[[Page S10727]]

     ``Sec. 1039. Concealment of security breaches involving 
       sensitive personally identifiable information

       ``(a) Whoever, having knowledge of a security breach and 
     the obligation to provide notice of such breach to 
     individuals under title IV of the Personal Data Privacy and 
     Security Act of 2005, and having not otherwise qualified for 
     an exemption from providing notice under section 422 of such 
     Act, intentionally and willfully conceals the fact of such 
     security breach which causes economic damages to 1 or more 
     persons, shall be fined under this title or imprisoned not 
     more than 5 years, or both.
       ``(b) For purposes of subsection (a), the term `person' 
     means any individual, corporation, company, association, 
     firm, partnership, society, or joint stock company.''.
       (b) Conforming and Technical Amendments.--The table of 
     sections for chapter 47 of title 18, United States Code, is 
     amended by adding at the end the following:

``1039. Concealment of security breaches involving personally 
              identifiable information.''.

       (c) Enforcement Authority.--The United States Secret 
     Service shall have the authority to investigate offenses 
     under this section.

     SEC. 104. AGGRAVATED FRAUD IN CONNECTION WITH COMPUTERS.

       (a) In General.--Chapter 47 of title 18, United States 
     Code, is amended by adding after section 1030 the following:

     ``Sec. 1030A. Aggravated fraud in connection with computers

       ``(a) In General.--Whoever, during and in relation to any 
     felony violation enumerated in subsection (c), knowingly 
     obtains, accesses, or transmits, without lawful authority, a 
     means of identification of another person may, in addition to 
     the punishment provided for such felony, be sentenced to a 
     term of imprisonment of up to 2 years.
       ``(b) Consecutive Sentences.--Notwithstanding any other 
     provision of law, should a court in its discretion impose an 
     additional sentence under subsection (a)--
       ``(1) no term of imprisonment imposed on a person under 
     this section shall run concurrently, except as provided in 
     paragraph (3), with any other term of imprisonment imposed on 
     such person under any other provision of law, including any 
     term of imprisonment imposed for the felony during which the 
     means of identifications was obtained, accessed, or 
     transmitted;
       ``(2) in determining any term of imprisonment to be imposed 
     for the felony during which the means of identification was 
     obtained, accessed, or transmitted, a court shall not in any 
     way reduce the term to be imposed for such crime so as to 
     compensate for, or otherwise take into account, any separate 
     term of imprisonment imposed or to be imposed for a violation 
     of this section; and
       ``(3) a term of imprisonment imposed on a person for a 
     violation of this section may, in the discretion of the 
     court, run concurrently, in whole or in part, only with 
     another term of imprisonment that is imposed by the court at 
     the same time on that person for an additional violation of 
     this section.
       ``(c) Definition.--For purposes of this section, the term 
     `felony violation enumerated in subsection (c)' means any 
     offense that is a felony violation of paragraphs (2) through 
     (7) of section 1030(a).''.
       (b) Conforming and Technical Amendments.--The table of 
     sections for chapter 47 of title 18, United States Code, is 
     amended by inserting after the item relating to section 1030 
     the following new item:

``1030A. Aggravated fraud in connection with computers.''.

     SEC. 105. REVIEW AND AMENDMENT OF FEDERAL SENTENCING 
                   GUIDELINES RELATED TO FRAUDULENT ACCESS TO OR 
                   MISUSE OF DIGITIZED OR ELECTRONIC PERSONALLY 
                   IDENTIFIABLE INFORMATION.

       (a) Review and Amendment.--Not later than 180 days after 
     the date of enactment of this Act, the United States 
     Sentencing Commission, pursuant to its authority under 
     section 994 of title 28, United States Code, and in 
     accordance with this section, shall review and, if 
     appropriate, amend the Federal sentencing guidelines 
     (including its policy statements) applicable to persons 
     convicted of using fraud to access, or misuse of, digitized 
     or electronic personally identifiable information, including 
     identity theft or any offense under--
       (1) sections 1028, 1028A, 1030, 1030A, 2511, and 2701 of 
     title 18, United States Code; or
       (2) any other relevant provision.
       (b) Requirements.--In carrying out the requirements of this 
     section, the United States Sentencing Commission shall--
       (1) ensure that the Federal sentencing guidelines 
     (including its policy statements) reflect--
       (A) the serious nature of the offenses and penalties 
     referred to in this Act;
       (B) the growing incidences of theft and misuse of digitized 
     or electronic personally identifiable information, including 
     identity theft; and
       (C) the need to deter, prevent, and punish such offenses;
       (2) consider the extent to which the Federal sentencing 
     guidelines (including its policy statements) adequately 
     address violations of the sections amended by this Act to--
       (A) sufficiently deter and punish such offenses; and
       (B) adequately reflect the enhanced penalties established 
     under this Act;
       (3) maintain reasonable consistency with other relevant 
     directives and sentencing guidelines;
       (4) account for any additional aggravating or mitigating 
     circumstances that might justify exceptions to the generally 
     applicable sentencing ranges;
       (5) consider whether to provide a sentencing enhancement 
     for those convicted of the offenses described in subsection 
     (a), if the conduct involves--
       (A) the online sale of fraudulently obtained or stolen 
     personally identifiable information;
       (B) the sale of fraudulently obtained or stolen personally 
     identifiable information to an individual who is engaged in 
     terrorist activity or aiding other individuals engaged in 
     terrorist activity; or
       (C) the sale of fraudulently obtained or stolen personally 
     identifiable information to finance terrorist activity or 
     other criminal activities;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines to ensure that such guidelines 
     (including its policy statements) as described in subsection 
     (a) are sufficiently stringent to deter, and adequately 
     reflect crimes related to fraudulent access to, or misuse of, 
     personally identifiable information; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing under section 
     3553(a)(2) of title 18, United States Code.
       (c) Emergency Authority to Sentencing Commission.--The 
     United States Sentencing Commission may, as soon as 
     practicable, promulgate amendments under this section in 
     accordance with procedures established in section 21(a) of 
     the Sentencing Act of 1987 (28 U.S.C. 994 note) as though the 
     authority under that Act had not expired.

  TITLE II--ASSISTANCE FOR STATE AND LOCAL LAW ENFORCEMENT COMBATING 
 CRIMES RELATED TO FRAUDULENT, UNAUTHORIZED, OR OTHER CRIMINAL USE OF 
                  PERSONALLY IDENTIFIABLE INFORMATION

     SEC. 201. GRANTS FOR STATE AND LOCAL ENFORCEMENT.

       (a) In General.--Subject to the availability of amounts 
     provided in advance in appropriations Acts, the Assistant 
     Attorney General for the Office of Justice Programs of the 
     Department of Justice may award a grant to a State to 
     establish and develop programs to increase and enhance 
     enforcement against crimes related to fraudulent, 
     unauthorized, or other criminal use of personally 
     identifiable information.
       (b) Application.--A State seeking a grant under subsection 
     (a) shall submit an application to the Assistant Attorney 
     General for the Office of Justice Programs of the Department 
     of Justice at such time, in such manner, and containing such 
     information as the Assistant Attorney General may require.
       (c) Use of Grant Amounts.--A grant awarded to a State under 
     subsection (a) shall be used by a State, in conjunction with 
     units of local government within that State, State and local 
     courts, other States, or combinations thereof, to establish 
     and develop programs to--
       (1) assist State and local law enforcement agencies in 
     enforcing State and local criminal laws relating to crimes 
     involving the fraudulent, unauthorized, or other criminal use 
     of personally identifiable information;
       (2) assist State and local law enforcement agencies in 
     educating the public to prevent and identify crimes involving 
     the fraudulent, unauthorized, or other criminal use of 
     personally identifiable information;
       (3) educate and train State and local law enforcement 
     officers and prosecutors to conduct investigations and 
     forensic analyses of evidence and prosecutions of crimes 
     involving the fraudulent, unauthorized, or other criminal use 
     of personally identifiable information;
       (4) assist State and local law enforcement officers and 
     prosecutors in acquiring computer and other equipment to 
     conduct investigations and forensic analysis of evidence of 
     crimes involving the fraudulent, unauthorized, or other 
     criminal use of personally identifiable information; and
       (5) facilitate and promote the sharing of Federal law 
     enforcement expertise and information about the 
     investigation, analysis, and prosecution of crimes involving 
     the fraudulent, unauthorized, or other criminal use of 
     personally identifiable information with State and local law 
     enforcement officers and prosecutors, including the use of 
     multi-jurisdictional task forces.
       (d) Assurances and Eligibility.--To be eligible to receive 
     a grant under subsection (a), a State shall provide 
     assurances to the Attorney General that the State--
       (1) has in effect laws that penalize crimes involving the 
     fraudulent, unauthorized, or other criminal use of personally 
     identifiable information, such as penal laws prohibiting--
       (A) fraudulent schemes executed to obtain personally 
     identifiable information;
       (B) schemes executed to sell or use fraudulently obtained 
     personally identifiable information; and
       (C) online sales of personally identifiable information 
     obtained fraudulently or by other illegal means;
       (2) will provide an assessment of the resource needs of the 
     State and units of local government within that State, 
     including criminal justice resources being devoted to the 
     investigation and enforcement of laws

[[Page S10728]]

     related to crimes involving the fraudulent, unauthorized, or 
     other criminal use of personally identifiable information; 
     and
       (3) will develop a plan for coordinating the programs 
     funded under this section with other federally funded 
     technical assistant and training programs, including directly 
     funded local programs such as the Local Law Enforcement Block 
     Grant program (described under the heading ``Violent Crime 
     Reduction Programs, State and Local Law Enforcement 
     Assistance'' of the Departments of Commerce, Justice, and 
     State, the Judiciary, and Related Agencies Appropriations 
     Act, 1998 (Public Law 105-119)).
       (e) Matching Funds.--The Federal share of a grant received 
     under this section may not exceed 90 percent of the total 
     cost of a program or proposal funded under this section 
     unless the Attorney General waives, wholly or in part, the 
     requirements of this subsection.

     SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this title $25,000,000 for each of fiscal years 
     2006 through 2009.
       (b) Limitations.--Of the amount made available to carry out 
     this title in any fiscal year not more than 3 percent may be 
     used by the Attorney General for salaries and administrative 
     expenses.
       (c) Minimum Amount.--Unless all eligible applications 
     submitted by a State or units of local government within a 
     State for a grant under this title have been funded, the 
     State, together with grantees within the State (other than 
     Indian tribes), shall be allocated in each fiscal year under 
     this title not less than 0.75 percent of the total amount 
     appropriated in the fiscal year for grants pursuant to this 
     title, except that the United States Virgin Islands, American 
     Samoa, Guam, and the Northern Mariana Islands each shall be 
     allocated 0.25 percent.
       (d) Grants to Indian Tribes.--Notwithstanding any other 
     provision of this title, the Attorney General may use amounts 
     made available under this title to make grants to Indian 
     tribes for use in accordance with this title.

                        TITLE III--DATA BROKERS

     SEC. 301. TRANSPARENCY AND ACCURACY OF DATA COLLECTION.

       (a) In General.--Data brokers engaging in interstate 
     commerce are subject to the requirements of this title for 
     any product or service offered to third parties that allows 
     access, use, compilation, distribution, processing, 
     analyzing, or evaluation of sensitive personally identifiable 
     information.
       (b) Limitation.--Notwithstanding any other paragraph of 
     this title, this section shall not apply to--
       (1) brokers engaging in interstate commerce for any offered 
     product or service currently subject to, and in compliance 
     with, access and accuracy protections similar to those under 
     subsections (c) through (f) of this section under the Fair 
     Credit Reporting Act (Public Law 91-508), or the Gramm-Leach 
     Bliley Act (Public Law 106-102);
       (2) data brokers engaging in interstate commerce for any 
     offered product or service currently in compliance with the 
     requirements for such entities under the Health Insurance 
     Portability and Accountability Act (Public Law 104-191), and 
     implementing regulations;
       (3) information in a personal electronic record held by a 
     data broker if--
       (A) the data broker maintains such information solely 
     pursuant to a license agreement with another business entity; 
     and
       (B) the business entity providing such information to the 
     data broker pursuant to a license agreement either complies 
     with the provisions of this section or qualifies for this 
     exemption; and
       (4) information in a personal record that--
       (A) the data broker has identified as inaccurate, but 
     maintains for the purpose of aiding the data broker in 
     preventing inaccurate information from entering an 
     individual's personal electronic record; and
       (B) is not maintained primarily for the purpose of 
     transmitting or otherwise providing that information, or 
     assessments based on that information, to non-affiliated 
     third parties.
       (c) Disclosures to Individuals.--
       (1) In general.--A data broker shall, upon the request of 
     an individual, clearly and accurately disclose to such 
     individual for a reasonable fee all personal electronic 
     records pertaining to that individual maintained for 
     disclosure to third parties in the ordinary course of 
     business in the databases or systems of the data broker at 
     the time of the request.
       (2) Information on how to correct inaccuracies.--The 
     disclosures required under paragraph (1) shall also include 
     guidance to individuals on the processes and procedures for 
     demonstrating and correcting any inaccuracies.
       (d) Creation of an Accuracy Resolution Process.--A data 
     broker shall develop and publish on its website timely and 
     fair processes and procedures for responding to claims of 
     inaccuracies, including procedures for correcting inaccurate 
     information in the personal electronic records it maintains 
     on individuals.
       (e) Accuracy Resolution Process.--
       (1) Information from a public record source.--
       (A) In general.--If an individual notifies a data broker of 
     a dispute as to the completeness or accuracy of information, 
     and the data broker determines that such information is 
     derived from a public record source, the data broker shall 
     determine within 30 days whether the information in its 
     system accurately and completely records the information 
     offered by the public record source.
       (B) Data broker actions.--If a data broker determines under 
     subparagraph (A) that the information in its systems--
       (i) does not accurately and completely record the 
     information offered by a public record source, the data 
     broker shall correct any inaccuracies or incompleteness, and 
     provide to such individual written notice of such changes; 
     and
       (ii) does accurately and completely record the information 
     offered by a public record source, the data broker shall--

       (I) provide such individual with the name, address, and 
     telephone contact information of the public record source; 
     and
       (II) notify such individual of the right to add for a 
     period of 90 days to the personal electronic record of the 
     individual maintained by the data broker notice of the 
     dispute under subsection (f).

       (2) Investigation of disputed information not from a public 
     record source.--If the completeness or accuracy of any 
     nonpublic record source disclosed to an individual under 
     subsection (c) is disputed by the individual and such 
     individual notifies the data broker directly of such dispute, 
     the data broker shall, before the end of the 30-day period 
     beginning on the date on which the data broker receives the 
     notice of the dispute--
       (A) investigate free of charge and record the current 
     status of the disputed information; or
       (B) delete the item from the individuals data file in 
     accordance with paragraph (8).
       (3) Extension of period to investigate.--Except as provided 
     in paragraph (4), the 30-day period described in paragraph 
     (1) may be extended for not more than 15 additional days if a 
     data broker receives information from the individual during 
     that 30-day period that is relevant to the investigation.
       (4) Limitations on extension of period to investigate.--
     Paragraph (3) shall not apply to any investigation in which, 
     during the 30-day period described in paragraph (1), the 
     information that is the subject of the investigation is found 
     to be inaccurate or incomplete or a data broker determines 
     that the information cannot be verified.
       (5) Notice identifying the data furnisher.--If the 
     completeness or accuracy of any information disclosed to an 
     individual under subsection (c) is disputed by the 
     individual, a data broker shall provide upon the request of 
     the individual, the name, business address, and telephone 
     contact information of any data furnisher who provided an 
     item of information in dispute.
       (6) Determination that dispute is frivolous or 
     irrelevant.--
       (A) In general.--Notwithstanding paragraphs (1) through 
     (4), a data broker may decline to investigate or terminate an 
     investigation of information disputed by an individual under 
     those paragraphs if the data broker reasonably determines 
     that the dispute by the individual is frivolous or 
     irrelevant, including by reason of a failure by the 
     individual to provide sufficient information to investigate 
     the disputed information.
       (B) Notice.--Not later than 5 business days after making 
     any determination in accordance with subparagraph (A) that a 
     dispute is frivolous or irrelevant, a data broker shall 
     notify the individual of such determination by mail, or if 
     authorized by the individual, by any other means available to 
     the data broker.
       (C) Contents of notice.--A notice under subparagraph (B) 
     shall include--
       (i) the reasons for the determination under subparagraph 
     (A); and
       (ii) identification of any information required to 
     investigate the disputed information, which may consist of a 
     standardized form describing the general nature of such 
     information.
       (7) Consideration of individual information.--In conducting 
     any investigation with respect to disputed information in the 
     personal electronic record of any individual, a data broker 
     shall review and consider all relevant information submitted 
     by the individual in the period described in paragraph (2) 
     with respect to such disputed information.
       (8) Treatment of inaccurate or unverifiable information.--
       (A) In general.--If, after any review of public record 
     information under paragraph (1) or any investigation of any 
     information disputed by an individual under paragraphs (2) 
     through (4), an item of information is found to be inaccurate 
     or incomplete or cannot be verified, a data broker shall 
     promptly delete that item of information from the 
     individual's personal electronic record or modify that item 
     of information, as appropriate, based on the results of the 
     investigation.
       (B) Notice to individuals of reinsertion of previously 
     deleted information.--If any information that has been 
     deleted from an individual's personal electronic record 
     pursuant to subparagraph (A) is reinserted in the personal 
     electronic record of the individual, a data broker shall, not 
     later than 5 days after reinsertion, notify the individual of 
     the reinsertion and identify any data furnisher not 
     previously disclosed in writing, or if authorized by the 
     individual for that purpose, by any other means available to 
     the data broker, unless such notification has been previously 
     given under this subsection.
       (C) Notice of results of investigation of disputed 
     information from a nonpublic record source.--

[[Page S10729]]

       (i) In general.--Not later than 5 business days after the 
     completion of an investigation under paragraph (2), a data 
     broker shall provide written notice to an individual of the 
     results of the investigation, by mail or, if authorized by 
     the individual for that purpose, by other means available to 
     the data broker.
       (ii) Additional requirement.--Before the expiration of the 
     5-day period, as part of, or in addition to such notice, a 
     data broker shall, in writing, provide to an individual--

       (I) a statement that the investigation is completed;
       (II) a report that is based upon the personal electronic 
     record of such individual as that personal electronic record 
     is revised as a result of the investigation;
       (III) a notice that, if requested by the individual, a 
     description of the procedures used to determine the accuracy 
     and completeness of the information shall be provided to the 
     individual by the data broker, including the business name, 
     address, and telephone number of any data furnisher of 
     information contacted in connection with such information; 
     and
       (IV) a notice that the individual has the right to request 
     notifications under subsection (f).

       (D) Description of investigation procedures.--Not later 
     than 15 days after receiving a request from an individual for 
     a description referred to in subparagraph (C)(ii)(III), a 
     data broker shall provide to the individual such a 
     description.
       (E) Expedited dispute resolution.--If by no later than 3 
     business days after the date on which a data broker receives 
     notice of a dispute from an individual of information in the 
     personal electronic record of such individual in accordance 
     with paragraph (2), a data broker resolves such dispute in 
     accordance with subparagraph (A) by the deletion of the 
     disputed information, then the data broker shall not be 
     required to comply with subsections (e) and (f) with respect 
     to that dispute if the data broker provides to the 
     individual, by telephone or other means authorized by the 
     individual, prompt notice of the deletion.
       (f) Notice of Dispute.--
       (1) In general.--If the completeness or accuracy of any 
     information disclosed to an individual under subsection (c) 
     is disputed and unless there is a reasonable ground to 
     believe that such dispute is frivolous or irrelevant, an 
     individual may request that the data broker indicate notice 
     of the dispute for a period of--
       (A) 30 days for information from a nonpublic record source; 
     and
       (B) 90 days for information from a public record source.
       (2) Compliance.--A data broker shall be deemed in 
     compliance with the requirements under paragraph (1) by 
     either--
       (A) allowing the individual to file a brief statement 
     setting forth the nature of the dispute under paragraph (3); 
     or
       (B) using an alternative notice method that--
       (i) clearly flags the disputed information for third 
     parties accessing the information; and
       (ii) provides a means for third parties to obtain further 
     information regarding the nature of the dispute.
       (3) Contents of statement.--A data broker may limit 
     statements made under paragraph (2)(A) to not more than 100 
     words if it provides an individual with assistance in writing 
     a clear summary of the dispute or until the dispute is 
     resolved.
       (g) Additional Requirements.--The Federal Trade Commission 
     may exempt certain classes of data brokers from this title in 
     a rulemaking process pursuant to section 553 of title 5, 
     United States Code.

     SEC. 302. ENFORCEMENT.

       (a) Civil Penalties.--
       (1) Penalties.--Any data broker that violates the 
     provisions of section 301 shall be subject to civil penalties 
     of not more than $1,000 per violation per day, with a maximum 
     of $15,000 per day, while such violations persist.
       (2) Intentional or willful violation.--A data broker that 
     intentionally or willfully violates the provisions of section 
     301 shall be subject to additional penalties in the amount of 
     $1,000 per violation per day, with a maximum of an additional 
     $15,000 per day, while such violations persist.
       (3) Equitable relief.--A data broker engaged in interstate 
     commerce that violates this section may be enjoined from 
     further violations by a court of competent jurisdiction.
       (4) Other rights and remedies.--The rights and remedies 
     available under this subsection are cumulative and shall not 
     affect any other rights and remedies available under law.
       (b) Injunctive Actions by the Attorney General.--
       (1) In general.--Whenever it appears that a data broker to 
     which this title applies has engaged, is engaged, or is about 
     to engage, in any act or practice constituting a violation of 
     this title, the Attorney General may bring a civil action in 
     an appropriate district court of the United States to--
       (A) enjoin such act or practice;
       (B) enforce compliance with this title;
       (C) obtain damages--
       (i) in the sum of actual damages, restitution, and other 
     compensation on behalf of the affected residents of a State; 
     and
       (ii) punitive damages, if the violation is willful or 
     intentional; and
       (D) obtain such other relief as the court determines to be 
     appropriate.
       (2) Other injunctive relief.--Upon a proper showing in the 
     action under paragraph (1), the court shall grant a permanent 
     injunction or a temporary restraining order without bond.
       (c) State Enforcement.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by an act or practice that violates this 
     title, the State may bring a civil action on behalf of the 
     residents of that State in a district court of the United 
     States of appropriate jurisdiction, or any other court of 
     competent jurisdiction, to--
       (A) enjoin that act or practice;
       (B) enforce compliance with this title;
       (C) obtain--
       (i) damages in the sum of actual damages, restitution, or 
     other compensation on behalf of affected residents of the 
     State; and
       (ii) punitive damages, if the violation is willful or 
     intentional; or
       (D) obtain such other legal and equitable relief as the 
     court may consider to be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under this 
     subsection, the attorney general of the State involved shall 
     provide to the Attorney General--
       (i) a written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exception.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general of a 
     State determines that it is not feasible to provide the 
     notice described in this subparagraph before the filing of 
     the action.
       (C) Notification when practicable.--In an action described 
     under subparagraph (B), the attorney general of a State shall 
     provide the written notice and the copy of the complaint to 
     the Attorney General as soon after the filing of the 
     complaint as practicable.
       (3) Attorney general authority.--Upon receiving notice 
     under paragraph (2), the Attorney General shall have the 
     right to--
       (A) move to stay the action, pending the final disposition 
     of a pending Federal proceeding or action as described in 
     paragraph (4);
       (B) intervene in an action brought under paragraph (1); and
       (C) file petitions for appeal.
       (4) Pending proceedings.--If the Attorney General has 
     instituted a proceeding or action for a violation of this 
     title or any regulations thereunder, no attorney general of a 
     State may, during the pendency of such proceeding or action, 
     bring an action under this subsection against any defendant 
     named in such criminal proceeding or civil action for any 
     violation that is alleged in that proceeding or action.
       (5) Rule of construction.--For purposes of bringing any 
     civil action under paragraph (1), nothing in this title shall 
     be construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (A) conduct investigations;
       (B) administer oaths and affirmations; or
       (C) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (6) Venue; service of process.--
       (A) Venue.--Any action brought under this subsection may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1931 
     of title 28, United States Code.
       (B) Service of process.--In an action brought under this 
     subsection process may be served in any district in which the 
     defendant--
       (i) is an inhabitant; or
       (ii) may be found.
       (d) No Private Cause of Action.--Nothing in this title 
     establishes a private cause of action against a data broker 
     for violation of any provision of this title.

     SEC. 303. RELATION TO STATE LAWS.

       No requirement or prohibition may be imposed under the laws 
     of any State with respect to any subject matter regulated 
     under section 301, relating to individual access to, and 
     correction of, personal electronic records held by 
     databrokers.

     SEC. 304. EFFECTIVE DATE.

       This title shall take effect 180 days after the date of 
     enactment of this Act and shall be implemented pursuant to a 
     State by State rollout schedule set by the Federal Trade 
     Commission, but in no case shall full implementation and 
     effect of this title occur later than 1 year and 180 days 
     after the date of enactment of this Act.

 TITLE IV--PRIVACY AND SECURITY OF PERSONALLY IDENTIFIABLE INFORMATION

             Subtitle A--Data Privacy and Security Program

     SEC. 401. PURPOSE AND APPLICABILITY OF DATA PRIVACY AND 
                   SECURITY PROGRAM.

       (a) Purpose.--The purpose of this subtitle is to ensure 
     standards for developing and implementing administrative, 
     technical, and physical safeguards to protect the privacy, 
     security, confidentiality, integrity, storage, and disposal 
     of sensitive personally identifiable information.
       (b) In General.--A business entity engaging in interstate 
     commerce that involves collecting, accessing, transmitting, 
     using, storing, or disposing of sensitive personally 
     identifiable information in electronic or digital form on 
     10,000 or more United States

[[Page S10730]]

     persons is subject to the requirements for a data privacy and 
     security program under section 402 for protecting sensitive 
     personally identifiable information.
       (c) Limitations.--Notwithstanding any other obligation 
     under this subtitle, this subtitle does not apply to--
       (1) financial institutions--
       (A) subject to the data security requirements and 
     implementing regulations under the Gramm-Leach-Bliley Act (15 
     U.S.C. 6801 et seq.); and
       (B) subject to--
       (i) examinations for compliance with the requirements of 
     this Act by 1 or more Federal or State functional regulators 
     (as defined in section 509 of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6809)); or
       (ii) compliance with part 314 of title 16, Code of Federal 
     Regulations; or
       (2) ``covered entities'' subject to the Health Insurance 
     Portability and Accountability Act of 1996 (42 U.S.C. 1301 et 
     seq.), including the data security requirements and 
     implementing regulations of that Act.
       (d) Safe Harbor.--A business entity shall be deemed in 
     compliance with the privacy and security program requirements 
     under section 402 if the business entity complies with or 
     provides protection equal to industry standards, as 
     identified by the Federal Trade Commission, that are 
     applicable to the type of sensitive personally identifiable 
     information involved in the ordinary course of business of 
     such business entity.

     SEC. 402. REQUIREMENTS FOR A PERSONAL DATA PRIVACY AND 
                   SECURITY PROGRAM.

       (a) Personal Data Privacy and Security Program.--Unless 
     otherwise limited under section 401(c), a business entity 
     subject to this subtitle shall comply with the following 
     safeguards and any others identified by the Federal Trade 
     Commission in a rulemaking process pursuant to section 553 of 
     title 5, United States Code, to protect the privacy and 
     security of sensitive personally identifiable information:
       (1) Scope.--A business entity shall implement a 
     comprehensive personal data privacy and security program that 
     includes administrative, technical, and physical safeguards 
     appropriate to the size and complexity of the business entity 
     and the nature and scope of its activities.
       (2) Design.--The personal data privacy and security program 
     shall be designed to--
       (A) ensure the privacy, security, and confidentiality of 
     personal electronic records;
       (B) protect against any anticipated vulnerabilities to the 
     privacy, security, or integrity of personal electronic 
     records; and
       (C) protect against unauthorized access to use of personal 
     electronic records that could result in substantial harm or 
     inconvenience to any individual.
       (3) Risk assessment.--A business entity shall--
       (A) identify reasonably foreseeable internal and external 
     vulnerabilities that could result in unauthorized access, 
     disclosure, use, or alteration of sensitive personally 
     identifiable information or systems containing sensitive 
     personally identifiable information;
       (B) assess the likelihood of and potential damage from 
     unauthorized access, disclosure, use, or alteration of 
     sensitive personally identifiable information; and
       (C) assess the sufficiency of its policies, technologies, 
     and safeguards in place to control and minimize risks from 
     unauthorized access, disclosure, use, or alteration of 
     sensitive personally identifiable information.
       (4) Risk management and control.--Each business entity 
     shall--
       (A) design its personal data privacy and security program 
     to control the risks identified under paragraph (3); and
       (B) adopt measures commensurate with the sensitivity of the 
     data as well as the size, complexity, and scope of the 
     activities of the business entity that--
       (i) control access to systems and facilities containing 
     sensitive personally identifiable information, including 
     controls to authenticate and permit access only to authorized 
     individuals;
       (ii) detect actual and attempted fraudulent, unlawful, or 
     unauthorized access, disclosure, use, or alteration of 
     sensitive personally identifiable information, including by 
     employees and other individuals otherwise authorized to have 
     access; and
       (iii) protect sensitive personally identifiable information 
     during use, transmission, storage, and disposal by encryption 
     or other reasonable means (including as directed for disposal 
     of records under section 628 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681w) and the implementing regulations of such 
     Act as set forth in section 682 of title 16, Code of Federal 
     Regulations).
       (b) Training.--Each business entity subject to this 
     subtitle shall take steps to ensure employee training and 
     supervision for implementation of the data security program 
     of the business entity.
       (c) Vulnerability Testing.--
       (1) In general.--Each business entity subject to this 
     subtitle shall take steps to ensure regular testing of key 
     controls, systems, and procedures of the personal data 
     privacy and security program to detect, prevent, and respond 
     to attacks or intrusions, or other system failures.
       (2) Frequency.--The frequency and nature of the tests 
     required under paragraph (1) shall be determined by the risk 
     assessment of the business entity under subsection (a)(3).
       (d) Relationship to Service Providers.--In the event a 
     business entity subject to this subtitle engages service 
     providers not subject to this subtitle, such business entity 
     shall--
       (1) exercise appropriate due diligence in selecting those 
     service providers for responsibilities related to sensitive 
     personally identifiable information, and take reasonable 
     steps to select and retain service providers that are capable 
     of maintaining appropriate safeguards for the security, 
     privacy, and integrity of the sensitive personally 
     identifiable information at issue; and
       (2) require those service providers by contract to 
     implement and maintain appropriate measures designed to meet 
     the objectives and requirements governing entities subject to 
     this section, section 401, and subtitle B.
       (e) Periodic Assessment and Personal Data Privacy and 
     Security Modernization.--Each business entity subject to this 
     subtitle shall on a regular basis monitor, evaluate, and 
     adjust, as appropriate its data privacy and security program 
     in light of any relevant changes in--
       (1) technology;
       (2) the sensitivity of personally identifiable information;
       (3) internal or external threats to personally identifiable 
     information; and
       (4) the changing business arrangements of the business 
     entity, such as--
       (A) mergers and acquisitions;
       (B) alliances and joint ventures;
       (C) outsourcing arrangements;
       (D) bankruptcy; and
       (E) changes to sensitive personally identifiable 
     information systems.
       (f) Implementation Time Line.--Not later than 1 year after 
     the date of enactment of this Act, a business entity subject 
     to the provisions of this subtitle shall implement a data 
     privacy and security program pursuant to this subtitle.

     SEC. 403. ENFORCEMENT.

       (a) Civil Penalties.--
       (1) In general.--Any business entity that violates the 
     provisions of sections 401 or 402 shall be subject to civil 
     penalties of not more than $5,000 per violation per day, with 
     a maximum of $35,000 per day, while such violations persist.
       (2) Intentional or willful violation.--A business entity 
     that intentionally or willfully violates the provisions of 
     sections 401 or 402 shall be subject to additional penalties 
     in the amount of $5,000 per violation per day, with a maximum 
     of an additional $35,000 per day, while such violations 
     persist.
       (3) Equitable relief.--A business entity engaged in 
     interstate commerce that violates this section may be 
     enjoined from further violations by a court of competent 
     jurisdiction.
       (4) Other rights and remedies.--The rights and remedies 
     available under this section are cumulative and shall not 
     affect any other rights and remedies available under law
       (b) Injunctive Actions by the Attorney General.--
       (1) In general.--Whenever it appears that a business entity 
     or agency to which this subtitle applies has engaged, is 
     engaged, or is about to engage, in any act or practice 
     constituting a violation of this subtitle, the Attorney 
     General may bring a civil action in an appropriate district 
     court of the United States to--
       (A) enjoin such act or practice;
       (B) enforce compliance with this subtitle; and
       (C) obtain damages--
       (i) in the sum of actual damages, restitution, and other 
     compensation on behalf of the affected residents of a State; 
     and
       (ii) punitive damages, if the violation is willful or 
     intentional; and
       (D) obtain such other relief as the court determines to be 
     appropriate.
       (2) Other injunctive relief.--Upon a proper showing in the 
     action under paragraph (1), the court shall grant a permanent 
     injunction or a temporary restraining order without bond.
       (c) State Enforcement.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by an act or practice that violates this 
     subtitle, the State may bring a civil action on behalf of the 
     residents of that State in a district court of the United 
     States of appropriate jurisdiction, or any other court of 
     competent jurisdiction, to--
       (A) enjoin that act or practice;
       (B) enforce compliance with this subtitle;
       (C) obtain--
       (i) damages in the sum of actual damages, restitution, or 
     other compensation on behalf of affected residents of the 
     State; and
       (ii) punitive damages, if the violation is willful or 
     intentional; or
       (D) obtain such other legal and equitable relief as the 
     court may consider to be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under this 
     subsection, the attorney general of the State involved shall 
     provide to the Attorney General--
       (i) a written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exception.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general of a

[[Page S10731]]

     State determines that it is not feasible to provide the 
     notice described in this subparagraph before the filing of 
     the action.
       (C) Notification when practicable.--In an action described 
     under subparagraph (B), the attorney general of a State shall 
     provide the written notice and the copy of the complaint to 
     the Attorney General as soon after the filing of the 
     complaint as practicable.
       (3) Attorney general authority.--Upon receiving notice 
     under paragraph (2), the Attorney General shall have the 
     right to--
       (A) move to stay the action, pending the final disposition 
     of a pending Federal proceeding or action as described in 
     paragraph (4);
       (B) intervene in an action brought under paragraph (1); and
       (C) file petitions for appeal.
       (4) Pending proceedings.--If the Attorney General has 
     instituted a proceeding or action for a violation of this 
     title or any regulations thereunder, no attorney general of a 
     State may, during the pendency of such proceeding or action, 
     bring an action under this subsection against any defendant 
     named in such criminal proceeding or civil action for any 
     violation that is alleged in that proceeding or action.
       (5) Rule of construction.--For purposes of bringing any 
     civil action under paragraph (1) nothing in this title shall 
     be construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (A) conduct investigations;
       (B) administer oaths and affirmations; or
       (C) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (6) Venue; service of process.--
       (A) Venue.--Any action brought under this subsection may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1931 
     of title 28, United States Code.
       (B) Service of process.--In an action brought under this 
     subsection process may be served in any district in which the 
     defendant--
       (i) is an inhabitant; or
       (ii) may be found.
       (d) No Private Cause of Action.--Nothing in this title 
     establishes a private cause of action against a business 
     entity for violation of any provision of this subtitle.

     SEC. 404. RELATION TO STATE LAWS.

       (a) In General.--No State may--
       (1) require an entity described in section 401(c) to comply 
     with this subtitle or any regulation promulgated thereunder; 
     and
       (2) require an entity in compliance with the safe harbor 
     established under section 401(d), to comply with any other 
     provision of this subtitle.
       (b) Effect of Subtitle A.--Except as provided in subsection 
     (a), this subtitle does not annul, alter, affect, or exempt 
     any person subject to the provisions of this subtitle from 
     complying with the laws of any State with respect to security 
     programs for sensitive personally identifiable information, 
     except to the extent that those laws are inconsistent with 
     any provisions of this subtitle, and then only to the extent 
     of such inconsistency.

                Subtitle B--Security Breach Notification

     SEC. 421. NOTICE TO INDIVIDUALS.

       (a) In General.--Any agency, or business entity engaged in 
     interstate commerce, that uses, accesses, transmits, stores, 
     disposes of or collects sensitive personally identifiable 
     information shall, following the discovery of a security 
     breach maintained by the agency or business entity that 
     contains such information, notify any resident of the United 
     States whose sensitive personally identifiable information 
     was subject to the security breach.
       (b) Obligation of Owner or Licensee.--
       (1) Notice to owner or licensee.--Any agency, or business 
     entity engaged in interstate commerce, that uses, accesses, 
     transmits, stores, disposes of, or collects sensitive 
     personally identifiable information that the agency or 
     business entity does not own or license shall notify the 
     owner or licensee of the information following the discovery 
     of a security breach containing such information.
       (2) Notice by owner, licensee or other designated third 
     party.--Noting in this subtitle shall prevent or abrogate an 
     agreement between an agency or business entity required to 
     give notice under this section and a designated third party, 
     including an owner or licensee of the sensitive personally 
     identifiable information subject to the security breach, to 
     provide the notifications required under subsection (a).
       (3) Business entity relieved from giving notice.--A 
     business entity obligated to give notice under subsection (a) 
     shall be relieved of such obligation if an owner or licensee 
     of the sensitive personally identifiable information subject 
     to the security breach, or other designated third party, 
     provides such notification.
       (c) Timeliness of Notification.--
       (1) In general.--All notifications required under this 
     section shall be made without unreasonable delay following--
       (A) the discovery by the agency or business entity of a 
     security breach; and
       (B) any measures necessary to determine the scope of the 
     breach, prevent further disclosures, and restore the 
     reasonable integrity of the data system.
       (2) Burden of proof.--The agency, business entity, owner, 
     or licensee required to provide notification under this 
     section shall have the burden of demonstrating that all 
     notifications were made as required under this subtitle, 
     including evidence demonstrating the necessity of any delay.
       (d) Delay of Notification Authorized for Law Enforcement 
     Purposes.--
       (1) In general.--If a law enforcement agency determines 
     that the notification required under this section would 
     impede a criminal investigation, such notification may be 
     delayed upon the written request of the law enforcement 
     agency.
       (2) Extended delay of notification.--If the notification 
     required under subsection (a) is delayed pursuant to 
     paragraph (1), an agency or business entity shall give notice 
     30 days after the day such law enforcement delay was invoked 
     unless a law enforcement agency provides written notification 
     that further delay is necessary.

     SEC. 422. EXEMPTIONS.

       (a) Exemption for National Security and Law Enforcement.--
       (1) In general.--Section 421 shall not apply to an agency 
     if the head of the agency certifies, in writing, that 
     notification of the security breach as required by section 
     421 reasonably could be expected to--
       (A) cause damage to the national security; or
       (B) hinder a law enforcement investigation or the ability 
     of the agency to conduct law enforcement investigations.
       (2) Limits on certifications.--The head of an agency may 
     not execute a certification under paragraph (1) to--
       (A) conceal violations of law, inefficiency, or 
     administrative error;
       (B) prevent embarrassment to a business entity, 
     organization, or agency; or
       (C) restrain competition.
       (3) Notice.--In every case in which a head of an agency 
     issues a certification under paragraph (1), the 
     certification, accompanied by a concise description of the 
     factual basis for the certification, shall be immediately 
     provided to the Congress.
       (b) Risk Assessment Exemption.--An agency or business 
     entity will be exempt from the notice requirements under 
     section 421, if--
       (1) a risk assessment concludes that there is no 
     significant risk that the security breach has resulted in, or 
     will result in, harm to the individuals whose sensitive 
     personally identifiable information was subject to the 
     security breach;
       (2) without unreasonable delay, but not later than 45 days 
     after the discovery of a security breach, unless extended by 
     the United States Secret Service, the business entity 
     notifies the United States Secret Service, in writing, of--
       (A) the results of the risk assessment;
       (B) its decision to invoke the risk assessment exemption; 
     and
       (3) the United States Secret Service does not indicate, in 
     writing, within 10 days from receipt of the decision, that 
     notice should be given.
       (c) Financial Fraud Prevention Exemption.--
       (1) In general.--A business entity will be exempt from the 
     notice requirement under section 421 if the business entity 
     utilizes or participates in a security program that--
       (A) is designed to block the use of the sensitive 
     personally identifiable information to initiate unauthorized 
     financial transactions before they are charged to the account 
     of the individual; and
       (B) provides for notice after a security breach that has 
     resulted in fraud or unauthorized transactions.
       (2) Limitation.--The exemption by this subsection does not 
     apply if the information subject to the security breach 
     includes, in addition to an account number, sensitive 
     personally identifiable information.

     SEC. 423. METHODS OF NOTICE.

       An agency, or business entity shall be in compliance with 
     section 421 if it provides:
       (1) Individual notice.--
       (A) Written notification to the last known home mailing 
     address of the individual in the records of the agency or 
     business entity; or
       (B) E-mail notice, if the individual has consented to 
     receive such notice and the notice is consistent with the 
     provisions permitting electronic transmission of notices 
     under section 101 of the Electronic Signatures in Global and 
     National Commerce Act (15 U.S.C. 7001).
       (2) Media notice.--If more than 5,000 residents of a State 
     or jurisdiction are impacted, notice to major media outlets 
     serving that State or jurisdiction.

     SEC. 424. CONTENT OF NOTIFICATION.

       (a) In General.--Regardless of the method by which notice 
     is provided to individuals under section 423, such notice 
     shall include, to the extent possible--
       (1) a description of the categories of sensitive personally 
     identifiable information that was, or is reasonably believed 
     to have been, acquired by an unauthorized person;
       (2) a toll-free number--
       (A) that the individual may use to contact the agency or 
     business entity, or the agent of the agency or business 
     entity; and
       (B) from which the individual may learn--
       (i) what types of sensitive personally identifiable 
     information the agency or business entity maintained about 
     that individual or about individuals in general; and
       (ii) whether or not the agency or business entity 
     maintained sensitive personally identifiable information 
     about that individual; and

[[Page S10732]]

       (3) the toll-free contact telephone numbers and addresses 
     for the major credit reporting agencies.
       (b) Additional Content.--Notwithstanding section 429, a 
     State may require that a notice under subsection (a) shall 
     also include information regarding victim protection 
     assistance provided for by that State.

     SEC. 425. COORDINATION OF NOTIFICATION WITH CREDIT REPORTING 
                   AGENCIES.

       If an agency or business entity is required to provide 
     notification to more than 1,000 individuals under section 
     421(a), the agency or business entity shall also notify, 
     without unreasonable delay, all consumer reporting agencies 
     that compile and maintain files on consumers on a nationwide 
     basis (as defined in section 603(p) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a(p)) of the timing and 
     distribution of the notices.

     SEC. 426. NOTICE TO LAW ENFORCEMENT.

       (a) Secret Service.--Any business entity or agency required 
     to give notice under section 421 shall also give notice to 
     the United States Secret Service if the security breach 
     impacts--
       (1) more than 10,000 individuals nationwide;
       (2) a database, networked or integrated databases, or other 
     data system associated with the sensitive personally 
     identifiable information on more than 1,000,000 individuals 
     nationwide;
       (3) databases owned by the Federal Government; or
       (4) primarily sensitive personally identifiable information 
     of employees and contractors of the Federal Government 
     involved in national security or law enforcement.
       (b) Notice to Other Law Enforcement Agencies.--The United 
     States Secret Service shall be responsible for notifying--
       (1)(A) the Federal Bureau of Investigation, if the security 
     breach involves espionage, foreign counterintelligence, 
     information protected against unauthorized disclosure for 
     reasons of national defense or foreign relations, or 
     Restricted Data (as that term is defined in section 11y of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)), except for 
     offenses affecting the duties of the United States Secret 
     Service under section 3056(a) of title 18, United States 
     Code; and
       (B) the United States Postal Inspection Service, if the 
     security breach involves mail fraud; and
       (2) the attorney general of each State affected by the 
     security breach.
       (c) 30-Day Rule.--The notices to Federal law enforcement 
     and the attorney general of each State affected by a security 
     breach required under this section shall be delivered without 
     unreasonable delay, but not later than 30 days after 
     discovery of the events requiring notice.

     SEC. 427. CIVIL REMEDIES.

       (a) Penalties.--Any agency, or business entity engaged in 
     interstate commerce, that violates this subtitle shall be 
     subject to a fine of--
       (1) not more than $1,000 per individual per day whose 
     sensitive personally identity information was, or is 
     reasonably believed to have been, acquired by an unauthorized 
     person; or
       (2) not more than $50,000 per day while the failure to give 
     notice under this subtitle persists.
       (b) Equitable Relief.--Any agency or business entity that 
     violates, proposes to violate, or has violated this subtitle 
     may be enjoined from further violations by a court of 
     competent jurisdiction.
       (c) Other Rights and Remedies.--The rights and remedies 
     available under this subtitle are cumulative and shall not 
     affect any other rights and remedies available under law.
       (d) Fraud Alert.--Section 605A(b)(1) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c-1(b)(1)) is amended by 
     inserting ``, or evidence that the consumer has received 
     notice that the consumer's financial information has or may 
     have been compromised,'' after ``identity theft report''.
       (e) Injunctive Actions by the Attorney General.--Whenever 
     it appears that a business entity or agency to which this 
     subtitle applies has engaged, is engaged, or is about to 
     engage, in any act or practice constituting a violation of 
     this subtitle, the Attorney General may bring a civil action 
     in an appropriate district court of the United States to--
       (1) enjoin such act or practice;
       (2) enforce compliance with this subtitle;
       (3) obtain damages--
       (A) in the sum of actual damages, restitution, and other 
     compensation on behalf of the affected residents of a State; 
     and
       (B) punitive damages, if the violation is willful or 
     intentional; and
       (4) obtain such other relief as the court determines to be 
     appropriate.

     SEC. 428. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State, or any State or local law enforcement 
     agency authorized by the State attorney general or by State 
     statute to prosecute violations of consumer protection law, 
     has reason to believe that an interest of the residents of 
     that State has been or is threatened or adversely affected by 
     the engagement of any agency or business entity in a practice 
     that is prohibited under this subtitle, the State, as parens 
     patriae on behalf of the residents of the State, or the State 
     or local law enforcement agency on behalf of the residents of 
     the agency's jurisdiction, may bring a civil action on behalf 
     of the residents of the State or jurisdiction in a district 
     court of the United States of appropriate jurisdiction or any 
     other court of competent jurisdiction, including a State 
     court, to--
       (A) enjoin that practice;
       (B) enforce compliance with this subtitle;
       (C) obtain damages, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Attorney General of the United States--
       (i) written notice of the action; and
       (ii) a copy of the complaint for the action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subtitle, if the State attorney general 
     determines that it is not feasible to provide the notice 
     described in such subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Attorney General at the time the 
     State attorney general files the action.
       (b) Federal Proceedings.--Upon receiving notice under 
     subsection (a)(2), the Attorney General shall have the right 
     to--
       (1) move to stay the action, pending the final disposition 
     of a pending Federal proceeding or action;
       (2) intervene in an action brought under subsection (a)(2); 
     and
       (3) file petitions for appeal.
       (c) Pending Proceedings.--If the Attorney General has 
     instituted a proceeding or action for a violation of this 
     subtitle or any regulations thereunder, no attorney general 
     of a State may, during the pendency of such proceeding or 
     action, bring an action under this subtitle against any 
     defendant named in such criminal proceeding or civil action 
     for any violation that is alleged in that proceeding or 
     action.
       (d) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this subtitle 
     regarding notification shall be construed to prevent an 
     attorney general of a State from exercising the powers 
     conferred on such attorney general by the laws of that State 
     to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in--
       (A) the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code; or
       (B) another court of competent jurisdiction.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.
       (f) No Private Cause of Action.--Nothing in this subtitle 
     establishes a private cause of action against a data broker 
     for violation of any provision of this subtitle.

     SEC. 429. EFFECT ON FEDERAL AND STATE LAW.

       The provisions of this subtitle shall supersede any other 
     provision of Federal law or any provision of law of any State 
     relating to notification of a security breach, except as 
     provided in section 424(b).

     SEC. 430. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to cover the costs incurred by the United States 
     Secret Service to carry out investigations and risk 
     assessments of security breaches as required under this 
     subtitle.

     SEC. 431. REPORTING ON RISK ASSESSMENT EXEMPTION.

       The United States Secret Service shall report to Congress 
     not later than 18 months after the date of enactment of this 
     Act, and upon the request by Congress thereafter, on the 
     number and nature of the security breaches described in the 
     notices filed by those business entities invoking the risk 
     assessment exemption under section 422(b) and the response of 
     the United States Secret Service to those notices.

     SEC. 432. EFFECTIVE DATE.

       This subtitle shall take effect on the expiration of the 
     date which is 90 days after the date of enactment of this 
     Act.

        TITLE V--GOVERNMENT ACCESS TO AND USE OF COMMERCIAL DATA

     SEC. 501. GENERAL SERVICES ADMINISTRATION REVIEW OF 
                   CONTRACTS.

       (a) In General.--In considering contract awards totaling 
     more than $500,000 and entered into after the date of 
     enactment of this Act with data brokers, the Administrator of 
     the General Services Administration shall evaluate--
       (1) the data privacy and security program of a data broker 
     to ensure the privacy and security of data containing 
     personally identifiable information, including whether such 
     program adequately addresses privacy and security threats 
     created by malicious software or code, or the use of peer-to-
     peer file sharing software;
       (2) the compliance of a data broker with such program;

[[Page S10733]]

       (3) the extent to which the databases and systems 
     containing personally identifiable information of a data 
     broker have been compromised by security breaches; and
       (4) the response by a data broker to such breaches, 
     including the efforts by such data broker to mitigate the 
     impact of such breaches.
       (b) Compliance Safe Harbor.--The data privacy and security 
     program of a data broker shall be deemed sufficient for the 
     purposes of subsection (a), if the data broker complies with 
     or provides protection equal to industry standards, as 
     identified by the Federal Trade Commission, that are 
     applicable to the type of personally identifiable information 
     involved in the ordinary course of business of such data 
     broker.
       (c) Penalties.--In awarding contracts with data brokers for 
     products or services related to access, use, compilation, 
     distribution, processing, analyzing, or evaluating personally 
     identifiable information, the Administrator of the General 
     Services Administration shall--
       (1) include monetary or other penalties--
       (A) for failure to comply with subtitles A and B of title 
     IV of this Act; or
       (B) if a contractor knows or has reason to know that the 
     personally identifiable information being provided is 
     inaccurate, and provides such inaccurate information; and
       (2) require a data broker that engages service providers 
     not subject to subtitle A of title IV for responsibilities 
     related to sensitive personally identifiable information to--
       (A) exercise appropriate due diligence in selecting those 
     service providers for responsibilities related to personally 
     identifiable information;
       (B) take reasonable steps to select and retain service 
     providers that are capable of maintaining appropriate 
     safeguards for the security, privacy, and integrity of the 
     personally identifiable information at issue; and
       (C) require such service providers, by contract, to 
     implement ad maintain appropriate measures designed to meet 
     the objectives and requirements in title IV.
       (d) Limitation.--The penalties under subsection (c) shall 
     not apply to a data broker providing information that is 
     accurately and completely recorded from a public record 
     source.

     SEC. 502. REQUIREMENT TO AUDIT INFORMATION SECURITY PRACTICES 
                   OF CONTRACTORS AND THIRD PARTY BUSINESS 
                   ENTITIES.

       Section 3544(b) of title 44, United States Code, is 
     amended--
       (1) in paragraph (7)(C)(iii), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (8), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(9) procedures for evaluating and auditing the 
     information security practices of contractors or third party 
     business entities supporting the information systems or 
     operations of the agency involving personally identifiable 
     information (as that term is defined in section 3 of the 
     Personal Data Privacy and Security Act of 2005) and ensuring 
     remedial action to address any significant deficiencies.''.

     SEC. 503. PRIVACY IMPACT ASSESSMENT OF GOVERNMENT USE OF 
                   COMMERCIAL INFORMATION SERVICES CONTAINING 
                   PERSONALLY IDENTIFIABLE INFORMATION.

       (a) In General.--Section 208(b)(1) of the E-Government Act 
     of 2002 (44 U.S.C. 3501 note) is amended--
       (1) in subparagraph (A)(i), by striking ``or''; and
       (2) in subparagraph (A)(ii), by striking the period and 
     inserting ``; or''; and
       (3) by inserting after clause (ii) the following:
       ``(iii) purchasing or subscribing for a fee to personally 
     identifiable information from a data broker (as such terms 
     are defined in section 3 of the Personal Data Privacy and 
     Security Act of 2005).''.
       (b) Limitation.--Notwithstanding any other provision of 
     law, commencing 1 year after the date of enactment of this 
     Act, no Federal department or agency may enter into a 
     contract with a data broker to access for a fee any database 
     consisting primarily of personally identifiable information 
     concerning United States persons (other than news reporting 
     or telephone directories) unless the head of such department 
     or agency--
       (1) completes a privacy impact assessment under section 208 
     of the E-Government Act of 2002 (44 U.S.C. 3501 note), which 
     shall subject to the provision in that Act pertaining to 
     sensitive information, include a description of--
       (A) such database;
       (B) the name of the data broker from whom it is obtained; 
     and
       (C) the amount of the contract for use;
       (2) adopts regulations that specify--
       (A) the personnel permitted to access, analyze, or 
     otherwise use such databases;
       (B) standards governing the access, analysis, or use of 
     such databases;
       (C) any standards used to ensure that the personally 
     identifiable information accessed, analyzed, or used is the 
     minimum necessary to accomplish the intended legitimate 
     purpose of the Federal department or agency;
       (D) standards limiting the retention and redisclosure of 
     personally identifiable information obtained from such 
     databases;
       (E) procedures ensuring that such data meet standards of 
     accuracy, relevance, completeness, and timeliness;
       (F) the auditing and security measures to protect against 
     unauthorized access, analysis, use, or modification of data 
     in such databases;
       (G) applicable mechanisms by which individuals may secure 
     timely redress for any adverse consequences wrongly incurred 
     due to the access, analysis, or use of such databases;
       (H) mechanisms, if any, for the enforcement and independent 
     oversight of existing or planned procedures, policies, or 
     guidelines; and
       (I) an outline of enforcement mechanisms for accountability 
     to protect individuals and the public against unlawful or 
     illegitimate access or use of databases; and
       (3) incorporates into the contract or other agreement 
     totaling more than $500,000, provisions--
       (A) providing for penalties--
       (i) for failure to comply with title IV of this Act; or
       (ii) if the entity knows or has reason to know that the 
     personally identifiable information being provided to the 
     Federal department or agency is inaccurate, and provides such 
     inaccurate information.
       (B) requiring a data broker that engages service providers 
     not subject to subtitle A of title IV for responsibilities 
     related to sensitive personally identifiable information to--
       (i) exercise appropriate due diligence in selecting those 
     service providers for responsibilities related to personally 
     identifiable information;
       (ii) take reasonable steps to select and retain service 
     providers that are capable of maintaining appropriate 
     safeguards for the security, privacy, and integrity of the 
     personally identifiable information at issue; and
       (iii) require such service providers, by contract, to 
     implement ad maintain appropriate measures designed to meet 
     the objectives and requirements in title IV.
       (c) Limitation on Penalties.--The penalties under paragraph 
     (3)(A) shall not apply to a data broker providing information 
     that is accurately and completely recorded from a public 
     record source.
       (d) Individual Screening Programs.--
       (1) In general.--Notwithstanding any other provision of 
     law, commencing one year after the date of enactment of this 
     Act, no Federal department or agency may use commercial 
     databases or contract with a data broker to implement an 
     individual screening program unless such program is--
       (A) congressionally authorized; and
       (B) subject to regulations developed by notice and comment 
     that--
       (i) establish a procedure to enable individuals, who suffer 
     an adverse consequence because the screening system 
     determined that they might pose a security threat, to appeal 
     such determination and correct information contained in the 
     system;
       (ii) ensure that Federal and commercial databases that will 
     be used to establish the identity of individuals or otherwise 
     make assessments of individuals under the system will not 
     produce a large number of false positives or unjustified 
     adverse consequences;
       (iii) ensure the efficacy and accuracy of all of the search 
     tools that will be used and ensure that the department or 
     agency can make an accurate predictive assessment of those 
     who may constitute a threat;
       (iv) establish an internal oversight board to oversee and 
     monitor the manner in which the system is being implemented;
       (v) establish sufficient operational safeguards to reduce 
     the opportunities for abuse;
       (vi) implement substantial security measures to protect the 
     system from unauthorized access;
       (vii) adopt policies establishing the effective oversight 
     of the use and operation of the system; and
       (viii) ensure that there are no specific privacy concerns 
     with the technological architecture of the system; and
       (C) coordinated with the Terrorist Screening Center or any 
     such successor organization.
       (2) Definition.--As used in this subsection, the term 
     ``individual screening program''--
       (A) means a system that relies on personally identifiable 
     information from commercial databases to--
       (i) evaluate all or most individuals seeking to exercise a 
     particular right or privilege under Federal law; and
       (ii) determine whether such individuals are on a terrorist 
     watch list or otherwise pose a security threat; and
       (B) does not include any program or system to grant 
     security clearances.
       (e) Study of Government Use.--
       (1) Scope of study.--Not later than 180 days after the date 
     of enactment of this Act, the Comptroller General of the 
     United States shall conduct a study and audit and prepare a 
     report on Federal agency use of data brokers or commercial 
     databases containing personally identifiable information, 
     including the impact on privacy and security, and the extent 
     to which Federal contracts include sufficient provisions to 
     ensure privacy and security protections, and penalties for 
     failures in privacy and security practices.
       (2) Report.--A copy of the report required under paragraph 
     (1) shall be submitted to Congress.

     SEC. 504. IMPLEMENTATION OF CHIEF PRIVACY OFFICER 
                   REQUIREMENTS.

       (a) Designation of the Chief Privacy Officer.--Pursuant to 
     the requirements under section 522 of the Transportation, 
     Treasury,

[[Page S10734]]

     Independent Agencies, and General Government Appropriations 
     Act, 2005 (Division H of Public Law 108-447; 118 Stat. 3199) 
     that each agency designate a Chief Privacy Officer, the 
     Department of Justice shall implement such requirements by 
     designating a department-wide Chief Privacy Officer, whose 
     primary role shall be to fulfill the duties and 
     responsibilities of Chief Privacy Officer and who shall 
     report directly to the Deputy Attorney General.
       (b) Duties and Responsibilities of Chief Privacy Officer.--
     In addition to the duties and responsibilities outlined under 
     section 522 of the Transportation, Treasury, Independent 
     Agencies, and General Government Appropriations Act, 2005 
     (Division H of Public Law 108-447; 118 Stat. 3199), the 
     Department of Justice Chief Privacy Officer shall--
       (1) oversee the Department of Justice's implementation of 
     the requirements under section 603 to conduct privacy impact 
     assessments of the use of commercial data containing 
     personally identifiable information by the Department;
       (2) promote the use of law enforcement technologies that 
     sustain privacy protections, and assure that the 
     implementation of such technologies relating to the use, 
     collection, and disclosure of personally identifiable 
     information preserve the privacy and security of such 
     information; and
       (3) coordinate with the Privacy and Civil Liberties 
     Oversight Board, established in the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458), in 
     implementing paragraphs (1) and (2) of this subsection.
  Mr. LEAHY. Mr. President, today we reintroduce the Specter-Leahy 
Personal Data Privacy and Security Act of 2005.
  Earlier this year, Senator Specter and I introduced a comprehensive 
bill to bring urgently needed reforms to protect Americans' privacy and 
to secure their personal data. Chairman Specter has shown great 
leadership on this issue, and I appreciate his dedication to solving 
these challenging problems through his willingness to work together to 
enhance this legislation as we have deemed appropriate. Since initial 
introduction of our bill, we have worked with Senator Feinstein and 
other members of the Judiciary Committee to address areas of concern 
and to perfect the bill. We have also worked closely with a wide 
variety of stakeholders and experts in these issues, which has also 
improved the bill.
  I especially thank Senator Feinstein for her dedication and resolve 
to address these difficult data security and privacy concerns. I 
commend her input and leadership, and I am pleased that she is joining 
as an original cosponsor of this revised bill. I also thank Senator 
Feingold for his commitment to ensuring that the government also acts 
responsibly in its use of our personal information and appreciate his 
support as an original cosponsor. This is a good bill--carefully 
calibrated to help remedy the problems we set out to address--and I 
look forward to continuing our efforts to pass effective legislation.
  We have teamed together and applied our collective wisdom to sort 
through these issues with care and precision. We took the time needed 
to develop well-balanced, focused legislation that provides strong 
protections where necessary, and that offers strong penalties and 
consequences as disincentives for those who fail to protect Americans' 
most personal information.
  Reforms like these are long overdue. As we look toward the end of the 
year, these necessary reforms should be included in our domestic 
priorities so that we can achieve some positive changes in areas that 
affect the everyday lives of Americans.
  First our bill requires data brokers to let people know what 
sensitive personal information they have about them, and to allow 
people to correct inaccurate information. These principles have 
precedent from the credit report context, and we have adapted them in a 
way that makes sense for the data brokering industry. This is a simple 
matter of fairness.
  Second, we would require companies that have databases with sensitive 
personal information on Americans to establish and implement data 
privacy and security programs. In the digital age, any company that 
wants to be trusted by the public must earn that trust by vigilantly 
protecting the databases they use and maintain which contain Americans' 
private data. They also have a responsibility in the next link in the 
security chain, to make sure that contractors hired to process data are 
adequately vetted to keep the personal information in these databases 
secure. This is increasingly important as Americans' personal 
information more and more is outsourced for processing overseas and 
beyond U.S. laws.

  Third, our bill requires notice when sensitive personal information 
has been compromised. The American people have a right to know when 
they are at risk because of corporate failures to protect their data, 
or when a criminal has infiltrated data systems. The notice rules in 
our bill were carefully crafted to ensure that the trigger for notice 
is tied to ``significant risk of harm'' with appropriate checks-and-
balances, in order to make sure that companies do not underreport. We 
also recognize important fraud prevention techniques that already 
exist. But our priority has been to make sure that victims have 
critical information as a roadmap that offers the assistance necessary 
to protect themselves, their families and their financial well-being.
  Finally, our bill addresses the government's use of personal data. We 
are living in a world in which our government increasingly is turning 
to the private sector to get personal data the government could not 
legally collect on its own without oversight and appropriate 
protections. This bill would place privacy and security front and 
center in evaluating whether data brokers can be trusted with 
government contracts that involve sensitive information about the 
American people. It would require contract reviews that include these 
considerations, audits to ensure good practice, and contract penalties 
for failure to protect data privacy and security.
  This legislation meets other key goals. It provides tough monetary 
and criminal penalties for compromising personal data or failing to 
provide necessary protections. This creates an incentive for companies 
to protect personal information, especially when there is no commercial 
relationship between individuals and companies using their data. We 
also would authorize an additional $100 million over four years to help 
state law enforcement agencies fight misuse of personal information.
  This is a solid bill--a comprehensive bill--that not only deals with 
the need to provide Americans notice when they have already been hurt, 
but that also deals with the underlying problem of lax security and 
lack of accountability in dealing with the public's most personal and 
private information.
  I commend Senator Specter for his leadership on this emerging 
problem. Senator Feinstein and Senator Feingold have long recognized 
the importance of data privacy and security, and I appreciate their 
support in this effort and on this bill. Other members on the Commerce 
Committee, such as Senator Nelson and Senator Cantwell, and on the 
Banking Committee, have also taken great strides in these areas as 
well, and we look forward to working closely with them to pass 
legislation this year.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Specter, Mr. Nelson of 
        Nebraska, Mr. Harkin and Mr. Rockefeller):
  S. 1793. A bill to extend certain apportionments to primary airports; 
to the Committee on Commerce, Science, and Transportation.
  Mr. BINGAMAN. Mr. President, I rise today with my colleague Senator 
Specter to introduce legislation that is important to a number of rural 
communities located in over half of the States. Our legislation will 
ensure that over 50 mostly rural airports will not see an 85 percent 
reduction in their annual grant from the Federal Aviation 
Administration's Airport Improvement Program.
  I think all Senators are well aware of the wide-ranging impact the 
tragic events of September 11, 2001, have had throughout our economy. 
One of the hardest hit industries has been commercial aviation, which 
is continuing to feel the effects in terms of higher costs and loss of 
passengers. Nowhere has the decline in commercial aviation been felt 
more than in small and rural communities.
  All across America, small communities already face growing hurdles to 
promoting their economic growth and development. Today, many rural 
areas lack access to interstate or even four-lane highways, railroads 
or broadband telecommunications. Business development in rural areas 
frequently depends on the quality of their airports and the

[[Page S10735]]

availability of scheduled air service. For small communities, airports 
often provide the critical link to the national and international 
transportation system.
  Ensuring small communities have the resources they need to preserve 
this vital airport infrastructure in rural areas is the purpose of our 
bill.
  Under current formulae for distributing Federal funds, every airport 
that has more than 10,000 annual passenger boardings is guaranteed an 
entitlement grant from the FAA's AIP of at least $1 million per year. 
These are called ``primary'' airports. Airports with less than 10,000 
annual boardings receive $150,000. Unfortunately, there are a handful 
of primary airports that have had their annual boardings drop below 
10,000 as a result of the effects of 9/11. One of these airports is the 
Roswell International Air Center in my State of New Mexico.
  For the passed two years, Congress has permitted these so called 
``virtual primary'' airports to retain their full $1 million 
entitlement, even though their annual boardings had dropped below the 
10,000 threshold as a direct result of 9/11. This two-year waiver was 
included in section 146 of the Vision 100 aviation reauthorization act. 
(P.L. 108-176).
  Unfortunately, based on preliminary boarding data for 2004, there are 
still about 50 primary airports that have not yet regained their 
previous boarding levels. As a result, these airports will face a cut 
in their annual entitlement in FY2006 from $1 million to $150,000.
  I ask unanimous consent that a list of these likely virtual primary 
airports for fiscal year 2006 be printed in the Record.

               Likely Virtual Primary Airports for FY2006

       Alaska--Fort Yukon, Gustavus, Haines, Iliamna, Kodiak, 
     Metlakatla, Skagway, Merrill Field* and Manokotak*.
       California--Imperial, Santa Rosa, Visalia.
       Connecticut--Groton-New London.
       Florida--Naples.
       Georgia--Athens.
       Iowa--Burlington, Fort Dodge.
       Illinois--Belleville, Quincy.
       Indiana--Lafayette.
       Kansas--Garden City, Salina.
       Kentucky--Owensboro.
       Maine--Rockland*.
       Massachusetts--Worcester.
       Michigan--Alpena, Escanaba.
       Minnesota--Grand Rapids, Hibbing.
       Montana--Sidney-Richland*.
       North Carolina--Hickory, Pinehurst/Southern Pines.
       Nebraska--Grand Island, Kearney, Scottsbluff.
       New Hampshire--Lebanon.
       New Mexico--Roswell.
       Ohio--Youngstown/Warren.
       Oregon--Pendleton.
       Pennsylvania--Altoona, Bradford, Brookville, Lancaster, and 
     Reading*.
       Rhode Island--Block Island, Westerly.
       Tennessee--Jackson.
       Utah--Cedar City.
       Virginia--Weyers Cave.
       Washington--Anacortes, Moses Lake, and Port Angeles*.
       West Virginia--Clarksburg*.
       Wyoming--Laramie.
       *These primary airports where above 10,000 boardings in 
     CY2003 but could lose their $1 million AIP entitlement based 
     on the preliminary CY2004 enplanements.
       List compiled from preliminary FAA data.

  The good news is a number of airports that were virtual primary 
airports in fiscal year 2005 have seen their annual boardings increase 
back above 10,000 per year. However, for this handful of airports that 
were still below 10,000 boardings in 2004, I believe it is appropriate 
that they have another year to regain their status as primary airports 
and not suffer the loss of 85 percent of their fiscal year 2006 annual 
entitlement grant for airport improvement projects.
  Thus, our bill provides a simple one year extension of the existing 
law to preserve the airports' current level of federal funding and give 
these mostly rural communities a little breathing room while the 
airline industry recovers from the effects of 9/11.
  I ask unanimous consent that a letter and resolution from the City of 
Roswell and the text of the bill be printed in the Record.
  There being no objection, the material; were ordered to be printed in 
the Record, as follows:


                                              City of Roswell,

                                  Roswell, NM, September 21, 2005.
     Hon. Jeff Bingaman,
     U.S. Senate,
     Washington, DC.
       Dear Senator Bingaman: The purpose of this correspondence 
     is to, on behalf of the City of Roswell, request your 
     assistance on an extremely important matter. Your time, as 
     well as that of your staff, particularly Dan Alpert, has been 
     and will continue to be most appreciated.
       Attached is a resolution passed by our City Council on 
     Thursday, September 8th pertaining to the pending loss of our 
     annual $1 mil entitlement funds. Unless there is action 
     involving extending the passenger boarding enplanement waiver 
     as suggested, the City will only be eligible for $150,000 to 
     use for airport improvements beginning with the FY 06 Budget. 
     As far as we know we are the only Airport affected in the 
     State of New Mexico, a fact that may have been mentioned to 
     you by Councilor Judy Stubbs when she visited with you 
     recently.
       Our request of you is that if you can influence, beginning 
     with the Senate Commerce and Transportation Committee, an 
     amendment to the FY 06 Budget to extend the enplanement 
     waiver through the FY 07 Budget, we would be most grateful. 
     Suffice is to say, the loss of almost $900,000 each year will 
     be devastating to our Airport and our economy
       As is the case every time we approach you for assistance, 
     we are grateful for your concern and whatever assistance you 
     feel you can provide us.
       Thank you again.
           Sincerely,
                                                     Bill B. Owen,
     Mayor.
                                  ____


                          Resolution No. 05-27


      A RESOLUTION SUPPORTING AN EXTENSION FOR PASSENGER BOARDING 
                              ENPLANEMENTS

       Whereas, annual Federal entitlements under the Airport 
     Improvemnt Program are based on passenger boarding; and
       Whereas, in the wake of 9/11, a number of airports, 
     including the Roswell International Air Center, saw a 
     dramatic drop in passenger boardings; and
       Whereas, current Federal legislation provides airports that 
     have over 10,000 annual boardings $1 million per year, and 
     airports with boardings less than 10,000 annually $150,000; 
     and
       Whereas, in November 2001, the President signed P.L. 107-71 
     which allowed airports that had suffered declines in 
     passenger boardings to use the greater of either the 2000 or 
     2001 boardings in calculating their FY2003 entitlements; and
       Whereas, the Roswell International Air Center is one of 
     over 50 airports in the United States that benefitted from 
     P.L. 107-71, retaining its annual $1 million entitlement, 
     even when passenger boardings dropped below 10,000; and
       Whereas, Congress extended the exception for two additional 
     years, FY2004 and FY2005 (P.L. 108-176, sec. 146); and
       Whereas, Roswell International Air Center enplanements are 
     increasing and coming close to 1O,OOO and Now, Therefore be 
     it
       Resolved, The City of Roswell seeks the continued support 
     from the New Mexico Congressional Delegation to persuade the 
     Senate Commerce and Transportation Committee to extend the 
     exception through FY2007 and encourages the citizens of 
     Roswell and Eastern New Mexico to support the local air 
     service. Further be it
       Resolved by the governing body of the City of RosweIl, New 
     Mexico, the Roswell City Council, to support whatever means 
     and energy is necessary to extend the passenger boarding 
     enplanement waiver through FY2007.
                                  ____


                                S. 1793

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

     SECTION 1. EXTENSION OF APPORTIONMENTS.

       Section 47114(c)(1)(F) of title 49, United States Code, is 
     amended by striking ``and 2005'' each place it appears in the 
     heading and inserting ``, 2005, and 2006''.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Obama):
  S. 1794. A bill to establish a Strategic Gasoline and Fuel Reserve; 
to the Committee on Energy and Natural Resources.
  Mr. DURBIN. 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. 1794

       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 ``Strategic Gasoline and Fuel 
     Reserve Act of 2005''.

     SEC. 2. STRATEGIC GASOLINE AND FUEL RESERVE.

       (a) In General.--Title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 et seq.) is amended--
       (1) by redesignating part E (42 U.S.C. 6251 et seq.) as 
     part F;
       (2) by redesignating section 191 (42 U.S.C. 6251) as 
     section 199; and
       (3) by inserting after part D (42 U.S.C. 6250 et seq.) the 
     following:

             ``PART E--STRATEGIC GASOLINE AND FUEL RESERVE

     ``SEC. 191. DEFINITIONS.

       ``In this part:
       ``(1) Gasoline.--The term `gasoline' means regular unleaded 
     gasoline.

[[Page S10736]]

       ``(2) Reserve.--The term `Reserve' means the Strategic 
     Gasoline and Fuel Reserve established under section 192(a).

     ``SEC. 192. ESTABLISHMENT.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary shall establish, maintain, and 
     operate a Strategic Gasoline and Fuel Reserve.
       ``(b) Not Component of Strategic Petroleum Reserve.--The 
     Reserve is not a component of the Strategic Petroleum Reserve 
     established under part B.
       ``(c) Capacity.--The Reserve shall contain not more than--
       ``(1) 40,000,000 barrels of gasoline; and
       ``(2) 7,500,000 barrels of jet fuel.
       ``(d) Reserve Sites.--
       ``(1) Siting.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall determine not less 
     than 3 Reserve sites, and not more than 5 Reserve sites, 
     throughout the United States that are regionally 
     strategic.
       ``(2) Operation.--The Reserve sites described in paragraph 
     (1) shall be operational not later than 2 years after the 
     date of enactment of this Act.
       ``(e) Security.--In establishing the Reserve under this 
     section, the Secretary shall obtain the concurrence of the 
     Secretary of Homeland Security with respect to physical 
     design security and operational security.
       ``(f) Authority.--In carrying out this part, the Secretary 
     may--
       ``(1) purchase, contract for, lease, or otherwise acquire, 
     in whole or in part, storage and related facilities and 
     storage services;
       ``(2) use, lease, maintain, sell, or otherwise dispose of 
     storage and related facilities acquired under this part;
       ``(3) acquire by purchase, exchange, lease, or other means 
     gasoline and fuel for storage in the Reserve;
       ``(4) store gasoline and fuel in facilities not owned by 
     the United States; and
       ``(5) sell, exchange, or otherwise dispose of gasoline and 
     fuel from the Reserve, including to maintain--
       ``(A) the quality or quantity of the gasoline or fuel in 
     the Reserve; or
       ``(B) the operational capacity of the Reserve.
       ``(g) Fill Date.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall complete the process of filling the Reserve 
     under this section by March 1, 2008.
       ``(2) Extensions.--The President may extend the deadline 
     established under paragraph (1) if--
       ``(A) the President determines that filling the Reserve 
     within that deadline would cause an undue economic burden on 
     the United States; and
       ``(B) the President receives approval from Congress.

     ``SEC. 193. RELEASE OF GASOLINE AND FUEL.

       ``(a) In General.--The Secretary shall release gasoline or 
     fuel from the Reserve only if--
       ``(1) the President finds that there is a severe fuel 
     supply disruption by finding that--
       ``(A) a regional or national supply shortage of gasoline or 
     fuel of significant scope and duration has occurred;
       ``(B) a substantial increase in the price of gasoline or 
     fuel has resulted from the shortage;
       ``(C) the price increase is likely to cause a significant 
     adverse impact on the national economy; and
       ``(D) releasing gasoline or fuel from the Reserve would 
     assist directly and significantly in reducing the adverse 
     impact of the shortage; or
       ``(2)(A) the Governor of a State submits to the Secretary a 
     written request for a release from the Reserve that contains 
     a finding that--
       ``(i) a regional or statewide supply shortage of gasoline 
     or fuel of significant scope and duration has occurred;
       ``(ii) a substantial increase in the price of gasoline or 
     fuel has resulted from the shortage; and
       ``(iii) the price increase is likely to cause a significant 
     adverse impact on the economy of the State; and
       ``(B) the Secretary concurs with the findings of the 
     Governor under subparagraph (A) and determines that--
       ``(i) a release from the Reserve would mitigate gasoline or 
     fuel price volatility in the State;
       ``(ii) a release from the Reserve would not have an adverse 
     effect on the long-term economic viability of retail gasoline 
     or fuel markets in the State and adjacent States; and
       ``(iii) a release from the Reserve would not suppress 
     prices below long-term market trend levels.
       ``(b) Procedure.--
       ``(1) Response of secretary.--The Secretary shall respond 
     to a request submitted under subsection (a)(2) not later than 
     5 days after receipt of the request by--
       ``(A) approving the request;
       ``(B) denying the request; or
       ``(C) requesting additional supporting information.
       ``(2) Release.--The Secretary shall establish procedures 
     governing the release of gasoline or fuel from the Reserve in 
     accordance with this subsection.
       ``(3) Requirements.--
       ``(A) Eligible entity.--In this paragraph, the term 
     `eligible entity' means an entity that is customarily engaged 
     in the sale or distribution of gasoline or fuel.
       ``(B) Sale or disposal from reserve.--The procedures 
     established under this subsection shall provide that the 
     Secretary may--
       ``(i) sell gasoline or fuel from the Reserve to an eligible 
     entity through a competitive process; or
       ``(ii) enter into an exchange agreement with an eligible 
     entity under which the Secretary receives a greater volume of 
     gasoline or fuel as repayment from the eligible entity than 
     the volume provided to the eligible entity.
       ``(c) Continuing Evaluation.--The Secretary shall conduct a 
     continuing evaluation of the drawdown and sales procedures 
     established under this section.

     ``SEC. 194. REPORTS.

       ``(a) Gasoline and Fuel.--Not later than 45 days after the 
     date of enactment of this section, the Secretary shall submit 
     to Congress and the President a plan describing--
       ``(1) the acquisition of storage and related facilities or 
     storage services for the Reserve, including the use of 
     storage facilities not currently in use or not currently used 
     to capacity;
       ``(2) the acquisition of gasoline and fuel for storage in 
     the Reserve;
       ``(3) the anticipated methods of disposition of gasoline 
     and fuel from the Reserve;
       ``(4) the estimated costs of establishment, maintenance, 
     and operation of the Reserve;
       ``(5) efforts that the Department will take to minimize any 
     potential need for future drawdowns from the Reserve; and
       ``(6) actions to ensure the quality of the gasoline and 
     fuel in the Reserve are maintained.
       ``(b) Natural Gas and Diesel.--Not later than 90 days after 
     the date of enactment of this section, the Secretary shall 
     submit to Congress a report describing the feasibility of 
     creating a natural gas and diesel reserve similar to the 
     Reserve under this part.

     ``SEC. 195. STRATEGIC GASOLINE AND FUEL RESERVE FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States a revolving fund, to be known as the 
     `Strategic Gasoline and Fuel Reserve Fund' (referred to in 
     this section as the `Fund'), consisting of--
       ``(1) such amounts as are appropriated to the Fund under 
     subsection (b);
       ``(2) such amounts as are appropriated to the Fund under 
     section 196; and
       ``(3) any interest earned on investment of amounts in the 
     Fund under subsection (d).
       ``(b) Transfers to Fund.--There are appropriated to the 
     Fund amounts equivalent to amounts collected as receipts and 
     received in the Treasury from the sale, exchange, or other 
     disposition of gasoline or fuel from the Reserve.
       ``(c) Expenditures From Fund.--On request by the Secretary 
     and without the need for further appropriation, the Secretary 
     of the Treasury shall transfer from the Fund to the Secretary 
     such amounts as the Secretary determines are necessary to 
     carry out activities under this part, to remain available 
     until expended.
       ``(d) Investment of Amounts.--
       ``(1) In general.--The Secretary of the Treasury shall 
     invest such portion of the Fund as is not, in the judgment of 
     the Secretary of the Treasury, required to meet current 
     withdrawals.
       ``(2) Interest-bearing obligations.--Investments may be 
     made only in interest-bearing obligations of the United 
     States.
       ``(3) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       ``(A) on original issue at the issue price; or
       ``(B) by purchase of outstanding obligations at the market 
     price.
       ``(4) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       ``(5) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       ``(e) Transfers of Amounts.--
       ``(1) In general.--The amounts required to be transferred 
     to the Fund under this section shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       ``(2) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.

     ``SEC. 196. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this part, to remain available until 
     expended.''.

     SEC. 3. CONFORMING AMENDMENTS.

       The table of contents for title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 note) is amended by striking 
     the matter relating to part D and inserting the following:

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast home heating oil reserve account.
``Sec. 185. Exemptions.
``Sec. 186. Authorization of appropriations.

             ``Part E--Strategic Gasoline and Fuel Reserve

``Sec. 191. Definitions.
``Sec. 192. Establishment.

[[Page S10737]]

``Sec. 193. Release of gasoline and fuel.
``Sec. 194. Reports.
``Sec. 195. Strategic Gasoline and Fuel Reserve Fund.
``Sec. 196. Authorization of appropriations.

                          ``Part F--Expiration

``Sec. 199. Expiration.''.
                                 ______
                                 
      By Mr. JOHNSON (for himself, Ms. Cantwell, Mr. Leahy, Mr. 
        Corzine, Mrs. Murray, Mr. Salazar, Mr. Reed, and Ms. Mikulski):
  S. 1795. A bill to amend the Social Security Act to protect Social 
Security cost-of-living adjustments (COLA); to the Committee on 
Finance.
  Mr. JOHNSON. Mr. President, today I am joined by several of my 
colleagues in the Senate to introduce the Social Security COLA 
Protection Act of 2005. This legislation will provide some relief to 
seniors from rising Medicare premiums, and ensure that their Social 
Security cost-of-living-adjustments or COLAs are made available for 
other essential needs such as food and housing.
  I first thank Senators Cantwell, Leahy, Corzine, Murray, Salazar, 
Reed and Mikulski in joining me in this effort. Last Congress several 
colleagues joined Senator Daschle and myself to introduce a similar 
bill. Representative Herseth in the House has introduced the companion 
bill today, and I thank her as well for her leadership on this and 
other important issues to seniors in South Dakota.
  In my home State, 1 in 6 people are Medicare beneficiaries. That 
represents 16 percent of our total State population. Many of these 
individuals live on modest fixed incomes and have to pay close 
attention to the checks they write and the groceries they buy every 
month. The seniors of my State are people that worked very hard all of 
their lives, as farmers, small business owners, teachers and parents. 
In old age, all they are hoping for is an opportunity to live out their 
years with a basic level of comfort and certainty.
  Unfortunately, as the cost of health care continues to rise at 
alarming rates, it becomes more and more difficult for seniors to have 
a sense of security during their retirement years. According to the 
Kaiser Family Foundation, U.S. spending on health care was 
approximately $1.7 trillion in 2003, almost two and a half times the 
$696 billion spent in 1990. That $1.7 trillion represents over 15 
percent of the gross domestic product. While spending did level off in 
2004, according to an analysis by the Center for Health System Change, 
overall health spending growth outpaced overall economic growth by 2.6 
percent in 2004.
  Increases in health care costs hit the pocketbooks of every American. 
Recently the Centers for Medicare and Medicaid Services or CMS 
announced that the Medicare Part B premiums, which pay for seniors' 
doctor visits and other nonhospital services, will rise 13 percent in 
2006. The 2006 increase will mark the third year in a row that 
beneficiaries will be subjected to a rise in their premiums of more 
than 10 percent.
  These premium increases will come at the same time that many Medicare 
beneficiaries will start to pay an additional premium for the Part D 
prescription drug program. Those premiums will range, averaging from 
$20 to $35 a month. Both Part D and Part B premiums will be taken from 
a senior's Social Security check.
  While seniors can expect a modest increase in their Social Security 
COLA every year, that increase has not kept up with the pace of 
increased health care costs and specifically Medicare premium costs. 
This is unfortunate, and does force many seniors to have to face the 
harsh reality every year that their fixed income is shrinking as their 
health costs go up. This October we should learn the Social Security 
COLA for 2006, and I fear that the combination of a modest increase and 
increased costs for participating in Medicare Part D are going to be 
difficult to adjust to for many seniors in South Dakota.
  This is why I have introduced the Social Security COLA Protection Act 
of 2005, which will mandate that no more than 25 percent of a senior's 
COLA be absorbed by the increase in Medicare premiums. This is 
important legislation that will protect the financial security of many 
retirees in my home State and across the country. I thank all of the 
Members who have introduced this bill with me today and urge the rest 
of my colleagues to join me in this effort.
                                 ______
                                 
      By Mrs. MURRAY (for herself, Mr. Leahy, Mr. Dayton, Mr. Dodd, and 
        Mr. Corzine):
  S. 1796. A bill to promote the economic security and safety of 
victims of domestic violence, dating violence, sexual assault, or 
stalking, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mrs. MURRAY. Mr. President, along with my colleagues, Senators Leahy, 
Dayton, Dodd and Corzine, I am introducing legislation that, if 
adopted, will protect and even save the lives of victims of domestic or 
sexual violence and their families. This bill, the Security and 
Financial Empowerment (SAFE) Act, addresses the impact of domestic and 
sexual violence that extends far beyond the moment the abuse occurs.
  I am introducing this legislation today as a tribute to Paul and 
Sheila Wellstone, who were such champions for victims of domestic 
violence. Senator Wellstone and I first introduced this legislation 
together in 1998. Paul's desk was just behind me here on the Senate 
floor. I can still see him behind me waving his arms and making the 
case for people who have no voice.
  Not long ago, domestic violence was considered a family problem, and 
many victims had nowhere to turn for help.
  Today, thanks to the Violence Against Women Act (VAWA) we have made 
great progress in fighting these violent crimes. I worked to help pass 
this landmark legislation in 1994 and I am proud to be a part of 
reauthorizing it this year. But although VAWA has been a great success 
in coordinating victims' advocates, social service providers and law 
enforcement professionals to meet immediate challenges, there is still 
work to be done.
  As someone who has spent my entire public life working with victims 
and experts to fight domestic violence, I am offering this bill based 
on what these courageous individuals have told me they need. Financial 
insecurity is a major factor in ongoing domestic violence. Too often, 
victims who are not economically self sufficient are forced to choose 
between protecting themselves and their children and keeping a roof 
over their heads. It is critical that we help guarantee the economic 
security of victims of domestic or sexual violence so that they can 
provide permanent safety for themselves and their families and so that 
they are not forced, because of economic dependence, to stay in an 
abusive relationship.
  In order to do this, we must ensure that victims of domestic or 
sexual violence can seek the help they need without the fear of losing 
their jobs. Too many victims have been fired for missing work in order 
to find shelter or get a court restraining order, even after receiving 
permission from their employers. Today, a woman can use the Family and 
Medical Leave Act to care for a sick or injured spouse, but she cannot 
use that act to seek protection from her abuser. The SAFE Act will 
allow victims to take time off from work without penalty in order to 
make court appearances, seek legal assistance, and get help with safety 
planning. For too many victims, access to these essential services can 
mean the difference between life and death.
  Unfortunately, some victims of domestic or sexual violence are forced 
to leave their jobs and relocate to protect themselves and their 
families. We must ensure the continued financial security of these 
victims through the use of unemployment benefits. Currently, a woman 
can receive unemployment benefits if she leaves her job because her 
husband must relocate. But if that same woman is fleeing her husband's 
abuse, in many States she cannot receive the same benefits. Currently, 
28 States and the District of Columbia provide some type of 
unemployment assistance to victims of domestic or sexual violence. Our 
bill will ensure that assistance is available in every State, so that 
no woman has to make the tragic choice of risking her safety to protect 
her livelihood.
  Moreover, victims must not be made silent by the fear of 
discrimination in employment and insurance. Punishing victims for 
circumstances beyond their control is wrong and only helps abusers in 
their efforts to control their victims. Denying a woman employment

[[Page S10738]]

because she is a victim of domestic violence robs her of the economic 
security she needs to escape a dangerous relationship. Making insurance 
coverage decisions based on a history of abuse only encourages women to 
lie about their victimization and avoid seeking help until it is too 
late. The SAFE Act prohibits discrimination in employment and insurance 
based on domestic or sexual violence, to ensure that victims are never 
punished for their abusers' crimes.
  Sadly, domestic violence and poverty are inextricably linked, and 
many victims of domestic or sexual violence are also recipients of 
Temporary Aid to Needy Families (TANF). Work requirements in this 
program often punish victims who must take time off to protect 
themselves and their children. In 1996, Senator Paul Wellstone and I 
offered an amendment to TANF called the Family Violence Option, which 
allows States to adjust TANF work requirements for victims of domestic 
violence. The SAFE act will strengthen the Family Violence Option, in 
order to protect some of the most economically vulnerable victims.
  Despite the great progress that has been made, domestic violence is 
still a serious problem in our country. Domestic violence is the 
leading cause of injury to women, and over 5.3 million incidents occur 
every year. Domestic or sexual violence also continues to have severe 
economic consequences, costing businesses between 3 and 5 billion 
dollars each year in lost productivity. The SAFE Act will help victims 
to escape dangerous situations and prevent abuse from occurring. This 
will not only protect the lives of countless victims, it will allow 
them to be more productive members of the economy.
  I am proud of the guidance we've received from advocates in crafting 
this legislation. I want to thank them for their efforts and their 
commitment to breaking the cycle of violence. I want to particularly 
acknowledge the efforts of the advocates in Washington State who have 
provided invaluable input in drafting this legislation. The support and 
leadership of our communities will help us take this critical next step 
in passing SAFE.
  For victims of domestic violence, an abusive relationship can seem 
like a hopeless situation. Through VAWA, we have already provided new 
hope to millions of these victims. The SAFE Act is the crucial next 
step in ending the cycle of abuse. I urge my colleagues to support this 
bill and provide victims and their families with the tools they need 
for productive, independent and most importantly, safe futures.
  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. 1796

       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 ``Security 
     and Financial Empowerment Act'' or the ``SAFE Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

    TITLE I--ENTITLEMENT TO EMERGENCY LEAVE FOR ADDRESSING DOMESTIC 
         VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING

Sec. 101. Purposes.
Sec. 102. Entitlement to emergency leave for addressing domestic 
              violence, dating violence, sexual assault, or stalking.
Sec. 103. Existing leave usable for addressing domestic violence, 
              dating violence, sexual assault, or stalking.
Sec. 104. Emergency benefits.
Sec. 105. Effect on other laws and employment benefits.
Sec. 107. Conforming amendment.
Sec. 108. Effective date.

   TITLE II--ENTITLEMENT TO UNEMPLOYMENT COMPENSATION FOR VICTIMS OF 
    DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING

Sec. 201. Purposes.
Sec. 202. Unemployment compensation and training provisions.

             TITLE III--VICTIMS' EMPLOYMENT SUSTAINABILITY

Sec. 301. Short title.
Sec. 302. Purposes.
Sec. 303. Prohibited discriminatory acts.
Sec. 304. Enforcement.
Sec. 305. Attorney's fees.

            TITLE IV--VICTIMS OF ABUSE INSURANCE PROTECTION

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Discriminatory acts prohibited.
Sec. 404. Insurance protocols for subjects of abuse.
Sec. 405. Reasons for adverse actions.
Sec. 406. Life insurance.
Sec. 407. Subrogation without consent prohibited.
Sec. 408. Enforcement.
Sec. 409. Effective date.

  TITLE V--NATIONAL CLEARINGHOUSE AND RESOURCE CENTER ON DOMESTIC AND 
                 SEXUAL VIOLENCE IN THE WORKPLACE GRANT

Sec. 501. National clearinghouse and resource center on domestic and 
              sexual violence in the workplace grant.

                         TITLE VI--SEVERABILITY

Sec. 601. Severability.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Domestic violence crimes account for approximately 15 
     percent of total crime costs in the United States each year.
       (2) Violence against women has been reported to be the 
     leading cause of physical injury to women. Such violence has 
     a devastating impact on women's physical and emotional health 
     and financial security.
       (3) According to a recent study by the National Institutes 
     of Health and Centers for Disease Control and Prevention, 
     each year there are 5,300,000 non-fatal violent 
     victimizations committed by intimate partners against women. 
     Female murder victims were substantially more likely than 
     male murder victims to have been killed by an intimate 
     partner. About \1/3\ of female murder victims, and about 4 
     percent of male murder victims, were killed by an intimate 
     partner.
       (4) According to recent government estimates, approximately 
     987,400 rapes occur annually in the United States, 89 percent 
     of the rapes perpetrated against female victims. Since 2001, 
     rapes have actually increased by 4 percent.
       (5) Approximately 10,200,000 people have been stalked at 
     some time in their lives. Four out of every 5 stalking 
     victims are women. Stalkers harass and terrorize their 
     victims by spying on the victims, standing outside their 
     places of work or homes, making unwanted phone calls, sending 
     or leaving unwanted letters or items, or vandalizing 
     property.
       (6) Employees in the United States who have been victims of 
     domestic violence, dating violence, sexual assault, or 
     stalking too often suffer adverse consequences in the 
     workplace as a result of their victimization.
       (7) Victims of domestic violence, dating violence, sexual 
     assault, and stalking are particularly vulnerable to changes 
     in employment, pay, and benefits as a result of their 
     victimizations, and are, therefore, in need of legal 
     protection.
       (8) The prevalence of domestic violence, dating violence, 
     sexual assault, stalking, and other violence against women at 
     work is dramatic. About 36,500 individuals, 80 percent of 
     whom are women, were raped or sexually assaulted in the 
     workplace each year from 1993 through 1999. Half of all 
     female victims of violent workplace crimes know their 
     attackers. Nearly 1 out of 10 violent workplace incidents are 
     committed by partners or spouses. Women who work for State 
     and local governments suffer a higher incidence of workplace 
     assaults, including rapes, than women who work in the private 
     sector.
       (9) Homicide is the leading cause of death for women on the 
     job. Husbands, boyfriends, and ex-partners commit 15 percent 
     of workplace homicides against women.
       (10) Studies indicate that between 35 and 56 percent of 
     employed battered women surveyed were harassed at work by 
     their abusive partners.
       (11) According to a 1998 report of the Government 
     Accountability Office, between \1/4\ and \1/2\ of domestic 
     violence victims surveyed in 3 studies reported that the 
     victims lost a job due, at least in part, to domestic 
     violence.
       (12) Women who have experienced domestic violence or dating 
     violence are more likely than other women to be unemployed, 
     to suffer from health problems that can affect employability 
     and job performance, to report lower personal income, and to 
     rely on welfare.
       (13) Abusers frequently seek to control their partners by 
     actively interfering with their ability to work, including 
     preventing their partners from going to work, harassing their 
     partners at work, limiting the access of their partners to 
     cash or transportation, and sabotaging the child care 
     arrangements of their partners.
       (14) More than \1/2\ of women receiving welfare have been 
     victims of domestic violence as adults and between \1/4\ and 
     \1/3\ reported being abused in the last year.
       (15) Victims of intimate partner violence lose 8,000,000 
     days of paid work each year, the equivalent of over 32,000 
     full-time jobs and 5,600,000 days of household productivity.
       (16) Sexual assault, whether occurring in or out of the 
     workplace, can impair an employee's work performance, require 
     time

[[Page S10739]]

     away from work, and undermine the employee's ability to 
     maintain a job. Almost 50 percent of sexual assault survivors 
     lose their jobs or are forced to quit in the aftermath of the 
     assaults.
       (17) More than 35 percent of stalking victims report losing 
     time from work due to the stalking and 7 percent never return 
     to work.
       (18)(A) According to the National Institute of Justice, 
     crime costs an estimated $450,000,000,000 annually in medical 
     expenses, lost earnings, social service costs, pain, 
     suffering, and reduced quality of life for victims, which 
     harms the Nation's productivity and drains the Nation's 
     resources.
       (B) Violent crime accounts for $426,000,000,000 per year of 
     this amount.
       (C) Rape exacts the highest costs per victim of any 
     criminal offense, and accounts for $127,000,000,000 per year 
     of the amount described in subparagraph (A).
       (19) Violent crime results in wage losses equivalent to 1 
     percent of all United States earnings, and causes 3 percent 
     of the Nation's medical spending and 14 percent of the 
     Nation's injury-related medical spending.
       (20) The Bureau of National Affairs has estimated that 
     domestic violence costs United States employers between 
     $3,000,000,000 and $5,000,000,000 annually in lost time and 
     productivity. Other reports have estimated that domestic 
     violence costs those employers between $5,800,000,000 and 
     $13,000,000,000 annually.
       (21) United States medical costs for domestic violence have 
     been estimated to be $31,000,000,000 per year.
       (22) Surveys of business executives and corporate security 
     directors also underscore the heavy toll that workplace 
     violence takes on women, businesses, and interstate commerce 
     in the United States.
       (23) Ninety-four percent of corporate security and safety 
     directors at companies nationwide rank domestic violence as a 
     high security concern.
       (24) Forty-nine percent of senior executives recently 
     surveyed said domestic violence has a harmful effect on their 
     company's productivity, 47 percent said domestic violence 
     negatively affects attendance, and 44 percent said domestic 
     violence increases health care costs.
       (25) Only 28 States have laws that explicitly provide 
     unemployment insurance to domestic violence victims in 
     certain circumstances, and none of the laws explicitly cover 
     victims of sexual assault or stalking.
       (26) Only 6 States provide domestic violence victims with 
     leave from work to go to court, to the doctor, or to take 
     other steps to address the domestic violence in their lives, 
     and only Maine provides such leave to victims of sexual 
     assault and stalking.
       (27) No States prohibit employment discrimination against 
     all victims of domestic violence, sexual assault, or 
     stalking. Five States have limited protections against such 
     discrimination for some victims under certain circumstances.
       (28) Employees, including individuals participating in 
     welfare to work programs, may need to take time during 
     business hours to--
       (A) obtain orders of protection;
       (B) seek medical or legal assistance, counseling, or other 
     services; or
       (C) look for housing in order to escape from domestic 
     violence.
       (29) Victims of domestic violence, dating violence, sexual 
     assault, or stalking have been subjected to discrimination by 
     private and State employers, including discrimination 
     motivated by stereotypic notions about women and other 
     discrimination on the basis of sex.
       (30) Domestic violence victims and third parties who help 
     them have been subjected to discriminatory practices by 
     health, life, disability, and property and casualty insurers, 
     and employers who self-insure employee benefits, who have 
     denied or canceled coverage, rejected claims, and raised 
     rates based on domestic violence. Although some State 
     legislatures have tried to address those practices, the scope 
     of protection afforded by the laws adopted varies from State 
     to State, with many failing to address the problem 
     comprehensively. Moreover, Federal law prevents States from 
     protecting the almost 40 percent of employees whose employers 
     self-insure employee benefits.
       (31) Existing Federal law does not explicitly--
       (A) authorize victims of domestic violence, dating 
     violence, sexual assault, or stalking to take leave from work 
     to seek legal assistance and redress, counseling, or 
     assistance with safety planning activities;
       (B) address the eligibility of victims of domestic 
     violence, dating violence, sexual assault, or stalking for 
     unemployment compensation;
       (C) prohibit employment discrimination against actual or 
     perceived victims of domestic violence, dating violence, 
     sexual assault, or stalking; or
       (D) prohibit insurers and employers who self-insure 
     employee benefits from--
       (i) discriminating against domestic violence victims and 
     those who help them in determining eligibility for coverage, 
     rates charged, and standards for payment of claims; or
       (ii) disclosing information about abuse and the location of 
     the victims through insurance databases and other means.

     SEC. 3. DEFINITIONS.

       In this Act, except as otherwise expressly provided:
       (1) Commerce.--The terms ``commerce'' and ``industry or 
     activity affecting commerce'' have the meanings given the 
     terms in section 101 of the Family and Medical Leave Act of 
     1993 (29 U.S.C. 2611).
       (2) Course of conduct.--The term ``course of conduct'' 
     means a course of repeatedly maintaining a visual or physical 
     proximity to a person or conveying verbal or written threats, 
     including threats conveyed through electronic communications, 
     or threats implied by conduct.
       (3) Dating violence.--The term ``dating violence'' has the 
     meaning given the term in section 826 of the Higher Education 
     Amendments of 1998 (20 U.S.C. 1152).
       (4) Domestic violence.--The term ``domestic violence'' has 
     the meaning given the term in section 826 of the Higher 
     Education Amendments of 1998 (20 U.S.C. 1152).
       (5) Domestic violence coalition.--The term ``domestic 
     violence coalition'' means a nonprofit, nongovernmental 
     membership organization that--
       (A) consists of the entities carrying out a majority of the 
     domestic violence programs carried out within a State;
       (B) collaborates and coordinates activities with Federal, 
     State, and local entities to further the purposes of domestic 
     violence intervention and prevention; and
       (C) among other activities, provides training and technical 
     assistance to entities carrying out domestic violence 
     programs within a State, territory, political subdivision, or 
     area under Federal authority.
       (6) Electronic communications.--The term ``electronic 
     communications'' includes communications via telephone 
     (including mobile phone), computer, e-mail, video recorder, 
     fax machine, telex, or pager.
       (7) Employ; state.--The terms ``employ'' and ``State'' have 
     the meanings given the terms in section 3 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203).
       (8) Employee.--
       (A) In general.--The term ``employee'' means any person 
     employed by an employer. In the case of an individual 
     employed by a public agency, such term means an individual 
     employed as described in section 3(e)(2) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(e)(2)).
       (B) Basis.--The term includes a person employed as 
     described in subparagraph (A) on a full- or part-time basis, 
     for a fixed time period, on a temporary basis, pursuant to a 
     detail, as an independent contractor, or as a participant in 
     a work assignment as a condition of receipt of Federal or 
     State income-based public assistance.
       (9) Employer.--The term ``employer''--
       (A) means any person engaged in commerce or in any industry 
     or activity affecting commerce who employs 15 or more 
     individuals; and
       (B) includes any person acting directly or indirectly in 
     the interest of an employer in relation to an employee, and 
     includes a public agency that employs individuals as 
     described in section 3(e)(2) of the Fair Labor Standards Act 
     of 1938, but does not include any labor organization (other 
     than when acting as an employer) or anyone acting in the 
     capacity of officer or agent of such labor organization.
       (10) Employment benefits.--The term ``employment benefits'' 
     means all benefits provided or made available to employees by 
     an employer, including group life insurance, health 
     insurance, disability insurance, sick leave, annual leave, 
     educational benefits, and pensions, regardless of whether 
     such benefits are provided by a practice or written policy of 
     an employer or through an ``employee benefit plan'', as 
     defined in section 3(3) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1002(3)).
       (11) Family or household member.--The term ``family or 
     household member'', used with respect to a person, means a 
     spouse, former spouse, parent, son or daughter, or person 
     residing or formerly residing in the same dwelling unit as 
     the person.
       (12) Parent; son or daughter.--The terms ``parent'' and 
     ``son or daughter'' have the meanings given the terms in 
     section 101 of the Family and Medical Leave Act of 1993 (29 
     U.S.C. 2611).
       (13) Person.--The term ``person'' has the meaning given the 
     term in section 3 of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203).
       (14) Public agency.--The term ``public agency'' has the 
     meaning given the term in section 3 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203).
       (15) Public assistance.--The term ``public assistance'' 
     includes cash, food stamps, medical assistance, housing 
     assistance, and other benefits provided on the basis of 
     income by a public agency.
       (16) Reduced leave schedule.--The term ``reduced leave 
     schedule'' means a leave schedule that reduces the usual 
     number of hours per workweek, or hours per workday, of an 
     employee.
       (17) Repeatedly.--The term ``repeatedly'' means on 2 or 
     more occasions.
       (18) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (19) Sexual assault.--The term ``sexual assault'' has the 
     meaning given the term in section 826 of the Higher Education 
     Amendments of 1998 (20 U.S.C. 1152).
       (20) Sexual assault coalition.--The term ``sexual assault 
     coalition'' means a nonprofit, nongovernmental membership 
     organization that--
       (A) consists of the entities carrying out a majority of the 
     sexual assault programs carried out within a State;

[[Page S10740]]

       (B) collaborates and coordinates activities with Federal, 
     State, and local entities to further the purposes of sexual 
     assault intervention and prevention; and
       (C) among other activities, provides training and technical 
     assistance to entities carrying out sexual assault programs 
     within a State, territory, political subdivision, or area 
     under Federal authority.
       (21) Stalking.--The term ``stalking'' means engaging in a 
     course of conduct directed at a specific person that would 
     cause a reasonable person to suffer substantial emotional 
     distress or to fear bodily injury, sexual assault, or death 
     to the person, or the person's spouse, parent, or son or 
     daughter, or any other person who regularly resides in the 
     person's household, if the conduct causes the specific person 
     to have such distress or fear.
       (22) Victim of domestic violence, dating violence, sexual 
     assault, or stalking.--The term ``victim of domestic 
     violence, dating violence, sexual assault, or stalking'' 
     includes a person who has been a victim of domestic violence, 
     dating violence, sexual assault, or stalking and a person 
     whose family or household member has been a victim of 
     domestic violence, dating violence, sexual assault, or 
     stalking.
       (23) Victim services organization.--The term ``victim 
     services organization'' means a nonprofit, nongovernmental 
     organization that provides assistance to victims of domestic 
     violence, dating violence, sexual assault, or stalking, or to 
     advocates for such victims, including a rape crisis center, 
     an organization carrying out a domestic violence program, an 
     organization operating a shelter or providing counseling 
     services, or an organization providing assistance through the 
     legal process.

    TITLE I--ENTITLEMENT TO EMERGENCY LEAVE FOR ADDRESSING DOMESTIC 
         VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING

     SEC. 101. PURPOSES.

       The purposes of this title are, pursuant to the affirmative 
     power of Congress to enact legislation under the portions of 
     section 8 of article I of the Constitution relating to 
     providing for the general welfare and to regulation of 
     commerce among the several States, and under section 5 of the 
     14th amendment to the Constitution--
       (1) to promote the national interest in reducing domestic 
     violence, dating violence, sexual assault, and stalking by 
     enabling victims of domestic violence, dating violence, 
     sexual assault, or stalking to maintain the financial 
     independence necessary to leave abusive situations, achieve 
     safety, and minimize the physical and emotional injuries from 
     domestic violence, dating violence, sexual assault, or 
     stalking, and to reduce the devastating economic consequences 
     of domestic violence, dating violence, sexual assault, or 
     stalking to employers and employees;
       (2) to promote the national interest in ensuring that 
     victims of domestic violence, dating violence, sexual 
     assault, or stalking can recover from and cope with the 
     effects of domestic violence, dating violence, sexual 
     assault, or stalking, and participate in criminal and civil 
     justice processes, without fear of adverse economic 
     consequences from their employers;
       (3) to ensure that victims of domestic violence, dating 
     violence, sexual assault, or stalking can recover from and 
     cope with the effects of domestic violence, dating violence, 
     sexual assault, or stalking, and participate in criminal and 
     civil justice processes, without fear of adverse economic 
     consequences with respect to public benefits;
       (4) to promote the purposes of the 14th amendment by 
     preventing sex-based discrimination and discrimination 
     against victims of domestic violence, dating violence, sexual 
     assault, or stalking in employment leave, by addressing the 
     failure of existing laws to protect the employment rights of 
     victims of domestic violence, dating violence, sexual 
     assault, or stalking, by protecting their civil and economic 
     rights, and by furthering the equal opportunity of women for 
     economic self-sufficiency and employment free from 
     discrimination;
       (5) to minimize the negative impact on interstate commerce 
     from dislocations of employees and harmful effects on 
     productivity, employment, health care costs, and employer 
     costs, caused by domestic violence, dating violence, sexual 
     assault, or stalking, including intentional efforts to 
     frustrate women's ability to participate in employment and 
     interstate commerce;
       (6) to further the goals of human rights and dignity 
     reflected in instruments such as the Charter of the United 
     Nations, the Universal Declaration of Human Rights, and the 
     International Covenant on Civil and Political Rights; and
       (7) to accomplish the purposes described in paragraphs (1) 
     through (6) by--
       (A) entitling employed victims of domestic violence, dating 
     violence, sexual assault, or stalking to take leave to seek 
     medical help, legal assistance, counseling, safety planning, 
     and other assistance without penalty from their employers; 
     and
       (B) prohibiting employers from discriminating against 
     actual or perceived victims of domestic violence, dating 
     violence, sexual assault, or stalking, in a manner that 
     accommodates the legitimate interests of employers and 
     protects the safety of all persons in the workplace.

     SEC. 102. ENTITLEMENT TO EMERGENCY LEAVE FOR ADDRESSING 
                   DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL 
                   ASSAULT, OR STALKING.

       (a) Leave Requirement.--
       (1) Basis.--An employee who is a victim of domestic 
     violence, dating violence, sexual assault, or stalking may 
     take leave from work to address domestic violence, dating 
     violence, sexual assault, or stalking, by--
       (A) seeking medical attention for, or recovering from, 
     physical or psychological injuries caused by domestic 
     violence, dating violence, sexual assault, or stalking to the 
     employee or the employee's family or household member;
       (B) obtaining services from a victim services organization 
     for the employee or the employee's family or household 
     member;
       (C) obtaining psychological or other counseling for the 
     employee or the employee's family or household member;
       (D) participating in safety planning, temporarily or 
     permanently relocating, or taking other actions to increase 
     the safety of the employee or the employee's family or 
     household member from future domestic violence, dating 
     violence, sexual assault, or stalking or ensure economic 
     security; or
       (E) seeking legal assistance or remedies to ensure the 
     health and safety of the employee or the employee's family or 
     household member, including preparing for or participating in 
     any civil or criminal legal proceeding related to or derived 
     from domestic violence, dating violence, sexual assault, or 
     stalking.
       (2) Period.--An employee may take not more than 30 days of 
     leave, as described in paragraph (1), in any 12-month period.
       (3) Schedule.--Leave described in paragraph (1) may be 
     taken intermittently or on a reduced leave schedule.
       (b) Notice.--The employee shall provide the employer with 
     reasonable notice of the employee's intention to take the 
     leave, unless providing such notice is not practicable.
       (c) Certification.--
       (1) In general.--The employer may require the employee to 
     provide certification to the employer, within a reasonable 
     period after the employer requests the certification, that--
       (A) the employee or the employee's family or household 
     member is a victim of domestic violence, dating violence, 
     sexual assault, or stalking; and
       (B) the leave is for 1 of the purposes enumerated in 
     subsection (a)(1).
       (2) Contents.--An employee may satisfy the certification 
     requirement of paragraph (1) by providing to the employer--
       (A) a sworn statement of the employee;
       (B) documentation from an employee, agent, or volunteer of 
     a victim services organization, an attorney, a member of the 
     clergy, or a medical or other professional, from whom the 
     employee or the employee's family or household member has 
     sought assistance in addressing domestic violence, dating 
     violence, sexual assault, or stalking and the effects of 
     domestic violence, dating violence, sexual assault, or 
     stalking;
       (C) a police or court record; or
       (D) other corroborating evidence.
       (d) Confidentiality.--All information provided to the 
     employer pursuant to subsection (b) or (c), including a 
     statement of the employee or any other documentation, record, 
     or corroborating evidence, and the fact that the employee has 
     requested or obtained leave pursuant to this section, shall 
     be retained in the strictest confidence by the employer, 
     except to the extent that disclosure is--
       (1) requested or consented to by the employee in writing; 
     or
       (2) otherwise required by applicable Federal or State law.
       (e) Employment and Benefits.--
       (1) Restoration to position.--
       (A) In general.--Except as provided in paragraph (2), any 
     employee who takes leave under this section for the intended 
     purpose of the leave shall be entitled, on return from such 
     leave--
       (i) to be restored by the employer to the position of 
     employment held by the employee when the leave commenced; or
       (ii) to be restored to an equivalent position with 
     equivalent employment benefits, pay, and other terms and 
     conditions of employment.
       (B) Loss of benefits.--The taking of leave under this 
     section shall not result in the loss of any employment 
     benefit accrued prior to the date on which the leave 
     commenced.
       (C) Limitations.--Nothing in this subsection shall be 
     construed to entitle any restored employee to--
       (i) the accrual of any seniority or employment benefits 
     during any period of leave; or
       (ii) any right, benefit, or position of employment other 
     than any right, benefit, or position to which the employee 
     would have been entitled had the employee not taken the 
     leave.
       (D) Construction.--Nothing in this paragraph shall be 
     construed to prohibit an employer from requiring an employee 
     on leave under this section to report periodically to the 
     employer on the status and intention of the employee to 
     return to work.
       (2) Exemption concerning certain highly compensated 
     employees.--
       (A) Denial of restoration.--An employer may deny 
     restoration under paragraph (1) to any employee described in 
     subparagraph (B) if--
       (i) such denial is necessary to prevent substantial and 
     grievous economic injury to the operations of the employer;
       (ii) the employer notifies the employee of the intent of 
     the employer to deny restoration on such basis at the time 
     the employer

[[Page S10741]]

     determines that such injury would occur; and
       (iii) in any case in which the leave has commenced, the 
     employee elects not to return to employment after receiving 
     such notice.
       (B) Affected employees.--An employee referred to in 
     subparagraph (A) is a salaried employee who is among the 
     highest paid 10 percent of the employees employed by the 
     employer within 75 miles of the facility at which the 
     employee is employed.
       (3) Maintenance of health benefits.--
       (A) Coverage.--Except as provided in subparagraph (B), 
     during any period that an employee takes leave under this 
     section, the employer shall maintain coverage under any group 
     health plan (as defined in section 5000(b)(1) of the Internal 
     Revenue Code of 1986) for the duration of such leave at the 
     level and under the conditions coverage would have been 
     provided if the employee had continued in employment 
     continuously for the duration of such leave.
       (B) Failure to return from leave.--The employer may recover 
     the premium that the employer paid for maintaining coverage 
     for the employee under such group health plan during any 
     period of leave under this section if--
       (i) the employee fails to return from leave under this 
     section after the period of leave to which the employee is 
     entitled has expired; and
       (ii) the employee fails to return to work for a reason 
     other than--

       (I) the continuation of, recurrence of, or onset of an 
     episode of domestic violence, dating violence, sexual 
     assault, or stalking, that entitles the employee to leave 
     pursuant to this section; or
       (II) other circumstances beyond the control of the 
     employee.

       (C) Certification.--
       (i) Issuance.--An employer may require an employee who 
     claims that the employee is unable to return to work because 
     of a reason described in subclause (I) or (II) of 
     subparagraph (B)(ii) to provide, within a reasonable period 
     after making the claim, certification to the employer that 
     the employee is unable to return to work because of that 
     reason.
       (ii) Contents.--An employee may satisfy the certification 
     requirement of clause (i) by providing to the employer--

       (I) a sworn statement of the employee;
       (II) documentation from an employee, agent, or volunteer of 
     a victim services organization, an attorney, a member of the 
     clergy, or a medical or other professional, from whom the 
     employee or the employee's family or household member has 
     sought assistance in addressing domestic violence, dating 
     violence, sexual assault, or stalking and the effects of 
     domestic violence, dating violence, sexual assault, or 
     stalking;
       (III) a police or court record; or
       (IV) other corroborating evidence.

       (D) Confidentiality.--All information provided to the 
     employer pursuant to subparagraph (C), including a statement 
     of the employee or any other documentation, record, or 
     corroborating evidence, and the fact that the employee is not 
     returning to work because of a reason described in subclause 
     (I) or (II) of subparagraph (B)(ii), shall be retained in the 
     strictest confidence by the employer, except to the extent 
     that disclosure is--
       (i) requested or consented to by the employee; or
       (ii) otherwise required by applicable Federal or State law.
       (f) Prohibited Acts.--
       (1) Interference with rights.--
       (A) Exercise of rights.--It shall be unlawful for any 
     employer to interfere with, restrain, or deny the exercise of 
     or the attempt to exercise, any right provided under this 
     section.
       (B) Employer discrimination.--It shall be unlawful for any 
     employer to discharge or harass any individual, or otherwise 
     discriminate against any individual with respect to 
     compensation, terms, conditions, or privileges of employment 
     of the individual (including retaliation in any form or 
     manner) because the individual--
       (i) exercised any right provided under this section; or
       (ii) opposed any practice made unlawful by this section.
       (C) Public agency sanctions.--It shall be unlawful for any 
     public agency to deny, reduce, or terminate the benefits of, 
     otherwise sanction, or harass any individual, or otherwise 
     discriminate against any individual (including retaliation in 
     any form or manner) with respect to the amount, terms, or 
     conditions of public assistance of the individual because the 
     individual--
       (i) exercised any right provided under this section; or
       (ii) opposed any practice made unlawful by this section.
       (2) Interference with proceedings or inquiries.--It shall 
     be unlawful for any person to discharge or in any other 
     manner discriminate (as described in subparagraph (B) or (C) 
     of paragraph (1)) against any individual because such 
     individual--
       (A) has filed any charge, or has instituted or caused to be 
     instituted any proceeding, under or related to this section;
       (B) has given, or is about to give, any information in 
     connection with any inquiry or proceeding relating to any 
     right provided under this section; or
       (C) has testified, or is about to testify, in any inquiry 
     or proceeding relating to any right provided under this 
     section.
       (g) Enforcement.--
       (1) Civil action by affected individuals.--
       (A) Liability.--Any employer that violates subsection (f) 
     shall be liable to any individual affected--
       (i) for damages equal to--

       (I) the amount of--

       (aa) any wages, salary, employment benefits, or other 
     compensation denied or lost to such individual by reason of 
     the violation; or
       (bb) in a case in which wages, salary, employment benefits, 
     or other compensation has not been denied or lost to the 
     individual, any actual monetary losses sustained by the 
     individual as a direct result of the violation;

       (II) the interest on the amount described in subclause (I) 
     calculated at the prevailing rate; and
       (III) an additional amount as liquidated damages equal to 
     the sum of the amount described in subclause (I) and the 
     interest described in subclause (II), except that if an 
     employer that has violated subsection (f) proves to the 
     satisfaction of the court that the act or omission that 
     violated subsection (f) was in good faith and that the 
     employer had reasonable grounds for believing that the act or 
     omission was not a violation of subsection (f), such court 
     may, in the discretion of the court, reduce the amount of the 
     liability to the amount and interest determined under 
     subclauses (I) and (II), respectively; and

       (ii) for such equitable relief as may be appropriate, 
     including employment, reinstatement, and promotion.
       (B) Right of action.--An action to recover the damages or 
     equitable relief prescribed in subparagraph (A) may be 
     maintained against any employer in any Federal or State court 
     of competent jurisdiction by any 1 or more affected 
     individuals for and on behalf of--
       (i) the individuals; or
       (ii) the individuals and other individuals similarly 
     situated.
       (C) Fees and costs.--The court in such an action shall, in 
     addition to any judgment awarded to the plaintiff, allow a 
     reasonable attorney's fee, reasonable expert witness fees, 
     and other costs of the action to be paid by the defendant.
       (D) Limitations.--The right provided by subparagraph (B) to 
     bring an action by or on behalf of any affected individual 
     shall terminate--
       (i) on the filing of a complaint by the Secretary in an 
     action under paragraph (4) in which restraint is sought of 
     any further delay in the payment of the amount described in 
     subparagraph (A)(i) to such individual by an employer 
     responsible under subparagraph (A) for the payment; or
       (ii) on the filing of a complaint by the Secretary in an 
     action under paragraph (2) in which a recovery is sought of 
     the damages described in subparagraph (A)(i) owing to an 
     affected individual by an employer liable under subparagraph 
     (A),
     unless the action described in clause (i) or (ii) is 
     dismissed without prejudice on motion of the Secretary.
       (2) Action by the secretary.--
       (A) Administrative action.--The Secretary shall receive, 
     investigate, and attempt to resolve complaints of violations 
     of subsection (f) in the same manner as the Secretary 
     receives, investigates, and attempts to resolve complaints of 
     violations of sections 6 and 7 of the Fair Labor Standards 
     Act of 1938 (29 U.S.C. 206 and 207).
       (B) Civil action.--The Secretary may bring an action in any 
     court of competent jurisdiction to recover the damages 
     described in paragraph (1)(A)(i).
       (C) Sums recovered.--Any sums recovered by the Secretary 
     pursuant to subparagraph (B) shall be held in a special 
     deposit account and shall be paid, on order of the Secretary, 
     directly to each individual affected. Any such sums not paid 
     to such an individual because of inability to do so within a 
     period of 3 years shall be deposited into the Treasury of the 
     United States as miscellaneous receipts.
       (3) Limitation.--
       (A) In general.--Except as provided in subparagraph (B), an 
     action may be brought under this subsection not later than 2 
     years after the date of the last event constituting the 
     alleged violation for which the action is brought.
       (B) Willful violation.--In the case of such action brought 
     for a willful violation of subsection (f), such action may be 
     brought within 3 years after the date of the last event 
     constituting the alleged violation for which such action is 
     brought.
       (C) Commencement.--In determining when an action is 
     commenced by the Secretary under this subsection for the 
     purposes of this paragraph, it shall be considered to be 
     commenced on the date when the complaint is filed.
       (4) Action for injunction by secretary.--The district 
     courts of the United States shall have jurisdiction, for 
     cause shown, in an action brought by the Secretary--
       (A) to restrain violations of subsection (f), including the 
     restraint of any withholding of payment of wages, salary, 
     employment benefits, or other compensation, plus interest, 
     found by the court to be due to affected individuals; or
       (B) to award such other equitable relief as may be 
     appropriate, including employment, reinstatement, and 
     promotion.
       (5) Solicitor of labor.--The Solicitor of Labor may appear 
     for and represent the Secretary on any litigation brought 
     under this subsection.

[[Page S10742]]

       (6) Employer liability under other laws.--Nothing in this 
     section shall be construed to limit the liability of an 
     employer or public agency to an individual, for harm suffered 
     relating to the individual's experience of domestic violence, 
     dating violence, sexual assault, or stalking, pursuant to any 
     other Federal or State law, including a law providing for a 
     legal remedy.
       (7) Library of congress.--Notwithstanding any other 
     provision of this subsection, in the case of the Library of 
     Congress, the authority of the Secretary under this 
     subsection shall be exercised by the Librarian of Congress.
       (8) Certain public agency employers.--
       (A) Agencies.--Notwithstanding any other provision of this 
     subsection, in the case of a public agency that employs 
     individuals as described in subparagraph (A) or (B) of 
     section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203(e)(2)) (other than an entity of the legislative 
     branch of the Federal Government), subparagraph (B) shall 
     apply.
       (B) Authority.--In the case described in subparagraph (A), 
     the powers, remedies, and procedures provided in the case of 
     a violation of chapter 63 of title 5, United States Code, in 
     that title to an employing agency, in chapter 12 of that 
     title to the Merit Systems Protection Board, or in that title 
     to any person alleging a violation of chapter 63 of that 
     title, shall be the powers, remedies, and procedures this 
     subsection provides in the case of a violation of subsection 
     (f) to that agency, that Board, or any person alleging a 
     violation of subsection (f), respectively, against an 
     employee who is such an individual.
       (9) Public agencies providing public assistance.--
     Consistent with regulations prescribed under section 106(d), 
     the President shall ensure that any public agency that 
     violates subsection (f)(1)(C), or subsection (f)(2) by 
     discriminating as described in subsection (f)(1)(C), shall 
     provide to any individual who receives a less favorable 
     amount, term, or condition of public assistance as a result 
     of the violation--
       (A)(i) the amount of any public assistance denied or lost 
     to such individual by reason of the violation; and
       (ii) the interest on the amount described in clause (i); 
     and
       (B) such equitable relief as may be appropriate.

     SEC. 103. EXISTING LEAVE USABLE FOR ADDRESSING DOMESTIC 
                   VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR 
                   STALKING.

       An employee who is entitled to take paid or unpaid leave 
     (including family, medical, sick, annual, personal, or 
     similar leave) from employment, pursuant to State or local 
     law, a collective bargaining agreement, or an employment 
     benefits program or plan, may elect to substitute any period 
     of such leave for an equivalent period of leave provided 
     under section 102.

     SEC. 104. EMERGENCY BENEFITS.

       (a) In General.--A State may use funds provided to the 
     State under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) to provide nonrecurrent short-term 
     emergency benefits to an individual for any period of leave 
     the individual takes pursuant to section 102.
       (b) Eligibility.--In calculating the eligibility of an 
     individual for such emergency benefits, the State shall count 
     only the cash available or accessible to the individual.
       (c) Timing.--
       (1) Applications.--An individual seeking emergency benefits 
     under subsection (a) from a State shall submit an application 
     to the State.
       (2) Benefits.--The State shall provide benefits to an 
     eligible applicant under paragraph (1) on an expedited basis, 
     and not later than 7 days after the applicant submits an 
     application under paragraph (1).
       (d) Conforming Amendment.--Section 404 of the Social 
     Security Act (42 U.S.C. 604) is amended by adding at the end 
     the following:
       ``(l) Authority To Provide Emergency Benefits.--A State 
     that receives a grant under section 403 may use the grant to 
     provide nonrecurrent short-term emergency benefits, in 
     accordance with section 104 of the Security and Financial 
     Empowerment Act, to individuals who take leave pursuant to 
     section 102 of that Act, without regard to whether the 
     individuals receive assistance under the State program funded 
     under this part.''.

     SEC. 105. EFFECT ON OTHER LAWS AND EMPLOYMENT BENEFITS.

       (a) More Protective Laws, Agreements, Programs, and 
     Plans.--Nothing in this title shall be construed to supersede 
     any provision of any Federal, State, or local law, collective 
     bargaining agreement, or employment benefits program or plan 
     that provides--
       (1) greater leave benefits for victims of domestic 
     violence, dating violence, sexual assault, or stalking than 
     the rights established under this title; or
       (2) leave benefits for a larger population of victims of 
     domestic violence, dating violence, sexual assault, or 
     stalking (as defined in such law, agreement, program, or 
     plan) than the victims of domestic violence, dating violence, 
     sexual assault, or stalking covered under this title.
       (b) Less Protective Laws, Agreements, Programs, and 
     Plans.--The rights established for victims of domestic 
     violence, dating violence, sexual assault, or stalking under 
     this title shall not be diminished by any State or local law, 
     collective bargaining agreement, or employment benefits 
     program or plan.

     SEC. 106. REGULATIONS.

       (a) In General.--Except as provided in subsections (b), 
     (c), and (d), the Secretary shall issue regulations to carry 
     out this title.
       (b) Library of Congress.--The Librarian of Congress shall 
     prescribe the regulations described in subsection (a) with 
     respect to employees of the Library of Congress. The 
     regulations prescribed under this subsection shall, to the 
     extent appropriate, be consistent with the regulations 
     prescribed by the Secretary under subsection (a).
       (c) Certain Public Agency Employers.--The Office of 
     Personnel Management shall prescribe the regulations 
     described in subsection (a) with respect to individuals 
     described in subparagraph (A) or (B) of section 3(e)(2) of 
     the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)(2)) 
     (other than an individual employed by an entity of the 
     legislative branch of the Federal Government). The 
     regulations prescribed under this subsection shall, to the 
     extent appropriate, be consistent with the regulations 
     prescribed by the Secretary under subsection (a).
       (d) Public Agencies Providing Public Assistance.--The 
     President shall prescribe the regulations described in 
     subsection (a) with respect to applicants for and recipients 
     of public assistance, in the case of violations of section 
     102(f)(1)(C), or section 102(f)(2) due to discrimination 
     described in section 102(f)(1)(C). The regulations prescribed 
     under this subsection shall, to the extent appropriate, be 
     consistent with the regulations prescribed by the Secretary 
     under subsection (a).

     SEC. 107. CONFORMING AMENDMENT.

       Section 1003(a)(1) of the Rehabilitation Act Amendments of 
     1986 (42 U.S.C. 2000d-7(a)(1)) is amended by inserting 
     ``title I or III of the Security and Financial Empowerment 
     Act,'' before ``or the provisions''.

     SEC. 108. EFFECTIVE DATE.

       This title and the amendment made by this title take effect 
     180 days after the date of enactment of this Act.

   TITLE II--ENTITLEMENT TO UNEMPLOYMENT COMPENSATION FOR VICTIMS OF 
    DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING

     SEC. 201. PURPOSES.

       The purposes of this title are, pursuant to the affirmative 
     power of Congress to enact legislation under the portions of 
     section 8 of article I of the Constitution relating to laying 
     and collecting taxes, providing for the general welfare, and 
     regulation of commerce among the several States, and under 
     section 5 of the 14th amendment to the Constitution--
       (1) to promote the national interest in reducing domestic 
     violence, dating violence, sexual assault, and stalking by 
     enabling victims of domestic violence, dating violence, 
     sexual assault, or stalking to maintain the financial 
     independence necessary to leave abusive situations, achieve 
     safety, and minimize the physical and emotional injuries from 
     domestic violence, dating violence, sexual assault, or 
     stalking, and to reduce the devastating economic consequences 
     of domestic violence, dating violence, sexual assault, or 
     stalking to employers and employees;
       (2) to promote the national interest in ensuring that 
     victims of domestic violence, dating violence, sexual 
     assault, or stalking can recover from and cope with the 
     effects of such victimization and participate in the criminal 
     and civil justice processes without fear of adverse economic 
     consequences;
       (3) to minimize the negative impact on interstate commerce 
     from dislocations of employees and harmful effects on 
     productivity, loss of employment, health care costs, and 
     employer costs, caused by domestic violence, dating violence, 
     sexual assault, or stalking, including intentional efforts to 
     frustrate the ability of women to participate in employment 
     and interstate commerce;
       (4) to promote the purposes of the 14th amendment to the 
     Constitution by preventing sex-based discrimination and 
     discrimination against victims of domestic violence, dating 
     violence, sexual assault, or stalking in unemployment 
     insurance, by addressing the failure of existing laws to 
     protect the employment rights of victims of domestic 
     violence, dating violence, sexual assault, or stalking, by 
     protecting their civil and economic rights, and by furthering 
     the equal opportunity of women for economic self-sufficiency 
     and employment free from discrimination; and
       (5) to accomplish the purposes described in paragraphs (1) 
     through (4) by providing unemployment insurance to those who 
     are separated from their employment as a result of domestic 
     violence, dating violence, sexual assault, or stalking, in a 
     manner that accommodates the legitimate interests of 
     employers and protects the safety of all persons in the 
     workplace.

     SEC. 202. UNEMPLOYMENT COMPENSATION AND TRAINING PROVISIONS.

       (a) Unemployment Compensation.--Section 3304 of the 
     Internal Revenue Code of 1986 (relating to approval of State 
     unemployment compensation laws) is amended--
       (1) in subsection (a)--
       (A) in paragraph (18), by striking ``and'' at the end;
       (B) by redesignating paragraph (19) as paragraph (20); and
       (C) by inserting after paragraph (18) the following new 
     paragraph:
       ``(19) compensation shall not be denied where an individual 
     is separated from employment due to circumstances resulting

[[Page S10743]]

     from the individual's experience of domestic violence, dating 
     violence, sexual assault, or stalking, nor shall States 
     impose additional conditions that restrict the individual's 
     eligibility for or receipt of benefits beyond those required 
     of other individuals who are forced to leave their jobs or 
     are deemed to have good cause for voluntarily separating from 
     a job in the State; and''; and
       (2) by adding at the end the following new subsection:
       ``(g) Construction.--For purposes of subsection (a)(19)--
       ``(1) Documentation.--In determining eligibility for 
     compensation due to circumstances resulting from an 
     individual's experience of domestic violence, dating 
     violence, sexual assault, or stalking--
       ``(A) States shall adopt, or have adopted, by statute, 
     regulation, or policy a list of forms of documentation that 
     may be presented to demonstrate eligibility; and
       ``(B) presentation of any one of such forms of 
     documentation shall be sufficient to demonstrate eligibility, 
     except that a State may require the presentation of a form of 
     identification in addition to the written statement of 
     claimant described in paragraph (2)(G).
       ``(2) List of forms of documentation.--The list referred to 
     in paragraph (1)(A) shall include not less than 3 of the 
     following forms of documentation:
       ``(A) An order of protection or other documentation issued 
     by a court.
       ``(B) A police report or criminal charges documenting the 
     domestic violence, dating violence, sexual assault, or 
     stalking.
       ``(C) Documentation that the perpetrator has been convicted 
     of the offense of domestic violence, dating violence, sexual 
     assault, or stalking.
       ``(D) Medical documentation of the domestic violence, 
     dating violence, sexual assault, or stalking.
       ``(E) Evidence of domestic violence, dating violence, 
     sexual assault, or stalking from a counselor, social worker, 
     health worker, or domestic violence shelter worker.
       ``(F) A written statement that the applicant or the 
     applicant's minor child is a victim of domestic violence, 
     dating violence, sexual assault, or stalking, provided by a 
     social worker, member of the clergy, shelter worker, attorney 
     at law, or other professional who has assisted the applicant 
     in dealing with the domestic violence, dating violence, 
     sexual assault, or stalking.
       ``(G) A written statement of the claimant.
       ``(3) Domestic violence, dating violence, sexual assault, 
     and stalking defined.--The terms `domestic violence', `dating 
     violence', `sexual assault', and `stalking' have the meanings 
     given such terms in section 3 of the Security and Financial 
     Empowerment Act.''.
       (b) Unemployment Compensation Personnel Training.--Section 
     303(a) of the Social Security Act (42 U.S.C. 503(a)) is 
     amended--
       (1) by redesignating paragraphs (4) through (10) as 
     paragraphs (5) through (11), respectively; and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Such methods of administration as will ensure that--
       ``(A) applicants for unemployment compensation and 
     individuals inquiring about such compensation are adequately 
     notified of the provisions of subsections (a)(19) and (g) of 
     section 3304 of the Internal Revenue Code of 1986 (relating 
     to the availability of unemployment compensation for victims 
     of domestic violence, dating violence, sexual assault, or 
     stalking); and
       ``(B) claims reviewers and hearing personnel are adequately 
     trained in--
       ``(i) the nature and dynamics of domestic violence, dating 
     violence, sexual assault, or stalking (as such terms are 
     defined in section 3 of the Security and Financial 
     Empowerment Act); and
       ``(ii) methods of ascertaining and keeping confidential 
     information about possible experiences of domestic violence, 
     dating violence, sexual assault, or stalking (as so defined) 
     to ensure that--

       ``(I) requests for unemployment compensation based on 
     separations stemming from domestic violence, dating violence, 
     sexual assault, or stalking (as so defined) are reliably 
     screened, identified, and adjudicated; and
       ``(II) full confidentiality is provided for the 
     individual's claim and submitted evidence; and''.

       (c) TANF Personnel Training.--Section 402(a) of the Social 
     Security Act (42 U.S.C. 602(a)) is amended by adding at the 
     end the following new paragraph:
       ``(8) Certification that the state will provide information 
     to victims of domestic violence, dating violence, sexual 
     assault, or stalking.--A certification by the chief officer 
     of the State that the State has established and is enforcing 
     standards and procedures to--
       ``(A) ensure that applicants for assistance under the 
     program and individuals inquiring about such assistance are 
     adequately notified of--
       ``(i) the provisions of subsections (a)(19) and (g) of 
     section 3304 of the Internal Revenue Code of 1986 (relating 
     to the availability of unemployment compensation for victims 
     of domestic violence, dating violence, sexual assault, or 
     stalking); and
       ``(ii) assistance made available by the State to victims of 
     domestic violence, dating violence, sexual assault, or 
     stalking (as such terms are defined in section 3 of the 
     Security and Financial Empowerment Act);
       ``(B) ensure that case workers and other agency personnel 
     responsible for administering the State program funded under 
     this part are adequately trained in--
       ``(i) the nature and dynamics of domestic violence, dating 
     violence, sexual assault, or stalking (as so defined);
       ``(ii) State standards and procedures relating to the 
     prevention of, and assistance for individuals who experience, 
     domestic violence, dating violence, sexual assault, or 
     stalking (as so defined); and
       ``(iii) methods of ascertaining and keeping confidential 
     information about possible experiences of domestic violence, 
     dating violence, sexual assault, or stalking (as so defined);
       ``(C) if a State has elected to establish and enforce 
     standards and procedures regarding the screening for and 
     identification of domestic violence pursuant to paragraph 
     (7), ensure that--
       ``(i) applicants for assistance under the program and 
     individuals inquiring about such assistance are adequately 
     notified of options available under such standards and 
     procedures; and
       ``(ii) case workers and other agency personnel responsible 
     for administering the State program funded under this part 
     are provided with adequate training regarding such standards 
     and procedures and options available under such standards and 
     procedures; and
       ``(D) ensure that the training required under subparagraphs 
     (B) and, if applicable, (C)(ii) is provided through a 
     training program operated by an eligible entity (as defined 
     in section 202(d)(2) of the Security and Financial 
     Empowerment Act).''.
       (d) Domestic Violence, Dating Violence, Sexual Assault, or 
     Stalking Training Grant Program.--
       (1) Grants authorized.--The Secretary of Health and Human 
     Services (in this subsection referred to as the 
     ``Secretary'') is authorized to award--
       (A) a grant to a national victim services organization in 
     order for such organization to--
       (i) develop and disseminate a model training program (and 
     related materials) for the training required under section 
     303(a)(4)(B) of the Social Security Act, as added by 
     subsection (b), and under subparagraphs (B) and, if 
     applicable, (C)(ii) of section 402(a)(8) of the such Act, as 
     added by subsection (c); and
       (ii) provide technical assistance with respect to such 
     model training program; and
       (B) grants to State, tribal, or local agencies in order for 
     such agencies to contract with eligible entities to provide 
     State, tribal, or local case workers and other State, tribal, 
     or local agency personnel responsible for administering the 
     temporary assistance to needy families program established 
     under part A of title IV of the Social Security Act in a 
     State or Indian reservation with the training required under 
     subparagraphs (B) and, if applicable, (C)(ii) of such section 
     402(a)(8).
       (2) Eligible entity defined.--For purposes of paragraph 
     (1)(B), the term ``eligible entity'' means an entity--
       (A) that is--
       (i) a State or tribal domestic violence coalition or sexual 
     assault coalition;
       (ii) a State or local victim services organization with 
     recognized expertise in the dynamics of domestic violence, 
     dating violence, sexual assault, or stalking whose primary 
     mission is to provide services to victims of domestic 
     violence, dating violence, sexual assault, or stalking, such 
     as a rape crisis center or domestic violence program; or
       (iii) an organization with demonstrated expertise in State 
     or county welfare laws and implementation of such laws and 
     experience with disseminating information on such laws and 
     implementation, but only if such organization will provide 
     the required training in partnership with an entity described 
     in clause (i) or (ii); and
       (B) that--
       (i) has demonstrated expertise in both domestic violence 
     and sexual assault, such as a joint domestic violence and 
     sexual assault coalition; or
       (ii) will provide the required training in partnership with 
     an entity described in clause (i) or (ii) of subparagraph (A) 
     in order to comply with the dual domestic violence and sexual 
     assault expertise requirement under clause (i).
       (3) Application.--An entity seeking a grant under this 
     subsection shall submit an application to the Secretary at 
     such time, in such form and manner, and containing such 
     information as the Secretary specifies.
       (4) Reports.--
       (A) Reports to congress.--The Secretary shall annually 
     submit a report to Congress on the grant program established 
     under this subsection.
       (B) Reports available to public.--The Secretary shall 
     establish procedures for the dissemination to the public of 
     each report submitted under subparagraph (A). Such procedures 
     shall include the use of the Internet to disseminate such 
     reports.
       (5) Authorization of appropriations.--
       (A) Authorization.--There are authorized to be 
     appropriated--
       (i) $1,000,000 for fiscal year 2007 to carry out the 
     provisions of paragraph (1)(A); and
       (ii) $12,000,000 for each of fiscal years 2008 through 2010 
     to carry out the provisions of paragraph (1)(B).
       (B) Three-year availability of grant funds.--Each recipient 
     of a grant under this subsection shall return to the 
     Secretary any

[[Page S10744]]

     unused portion of such grant not later than 3 years after the 
     date the grant was awarded, together with any earnings on 
     such unused portion.
       (C) Amounts returned.--Any amounts returned pursuant to 
     subparagraph (B) shall be available without further 
     appropriation to the Secretary for the purpose of carrying 
     out the provisions of paragraph (1)(B).
       (e) Effect on Existing Laws, Etc.--
       (1) More protective laws, agreements, programs, and 
     plans.--Nothing in this title shall be construed to supersede 
     any provision of any Federal, State, or local law, collective 
     bargaining agreement, or employment benefits program or plan 
     that provides greater unemployment insurance benefits for 
     victims of domestic violence, dating violence, sexual 
     assault, or stalking than the rights established under this 
     title.
       (2) Less protective laws, agreements, programs, and 
     plans.--The rights established for victims of domestic 
     violence, dating violence, sexual assault, or stalking under 
     this title shall not be diminished by any more restrictive 
     State or local law, collective bargaining agreement, or 
     employment benefits program or plan.
       (f) Effective Date.--
       (1) Unemployment amendments.--
       (A) In general.--Except as provided in subparagraph (B) and 
     paragraph (2), the amendments made by this section shall 
     apply in the case of compensation paid for weeks beginning on 
     or after the expiration of 180 days from the date of 
     enactment of this Act.
       (B) Extension of effective date for state law amendment.--
       (i) In general.--If the Secretary of Labor identifies a 
     State as requiring a change to its statutes, regulations, or 
     policies in order to comply with the amendments made by this 
     section (excluding the amendment made by subsection (c)), 
     such amendments shall apply in the case of compensation paid 
     for weeks beginning after the earlier of--

       (I) the date the State changes its statutes, regulations, 
     or policies in order to comply with such amendments; or
       (II) the end of the first session of the State legislature 
     which begins after the date of enactment of this Act or which 
     began prior to such date and remained in session for at least 
     25 calendar days after such date;

     except that in no case shall such amendments apply before the 
     date that is 180 days after the date of enactment of this 
     Act.
       (ii) Session defined.--In this subparagraph, the term 
     ``session'' means a regular, special, budget, or other 
     session of a State legislature.
       (2) TANF amendment.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendment made by subsection (c) shall take effect on the 
     date of enactment of this Act.
       (B) Extension of effective date for state law amendment.--
     In the case of a State plan under part A of title IV of the 
     Social Security Act which the Secretary of Health and Human 
     Services determines requires State legislation in order for 
     the plan to meet the additional requirements imposed by the 
     amendment made by subsection (c), the State plan shall not be 
     regarded as failing to comply with the requirements of such 
     amendment on the basis of its failure to meet these 
     additional requirements before the first day of the first 
     calendar quarter beginning after the close of the first 
     regular session of the State legislature that begins after 
     the date of enactment of this Act. For purposes of the 
     previous sentence, in the case of a State that has a 2-year 
     legislative session, each year of the session is considered 
     to be a separate regular session of the State legislature.

             TITLE III--VICTIMS' EMPLOYMENT SUSTAINABILITY

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Victims' Employment 
     Sustainability Act''.

     SEC. 302. PURPOSES.

       The purposes of this title are, pursuant to the affirmative 
     power of Congress to enact legislation under the portions of 
     section 8 of article I of the Constitution relating to 
     providing for the general welfare and to regulation of 
     commerce among the several States, and under section 5 of the 
     14th amendment to the Constitution--
       (1) to promote the national interest in reducing domestic 
     violence, dating violence, sexual assault, and stalking by 
     enabling victims of domestic violence, dating violence, 
     sexual assault, or stalking to maintain the financial 
     independence necessary to leave abusive situations, achieve 
     safety, and minimize the physical and emotional injuries from 
     domestic violence, dating violence, sexual assault, or 
     stalking, and to reduce the devastating economic consequences 
     of domestic violence, dating violence, sexual assault, or 
     stalking to employers and employees;
       (2) to promote the national interest in ensuring that 
     victims of domestic violence, dating violence, sexual 
     assault, or stalking can recover from and cope with the 
     effects of domestic violence, dating violence, sexual 
     assault, or stalking, and participate in criminal and civil 
     justice processes, without fear of adverse economic 
     consequences from their employers;
       (3) to ensure that victims of domestic violence, dating 
     violence, sexual assault, or stalking can recover from and 
     cope with the effects of domestic violence, dating violence, 
     sexual assault, or stalking, and participate in criminal and 
     civil justice processes, without fear of adverse economic 
     consequences with respect to public benefits;
       (4) to promote the purposes of the 14th amendment to the 
     Constitution by preventing sex-based discrimination and 
     discrimination against victims of domestic violence, dating 
     violence, sexual assault, or stalking in employment, by 
     addressing the failure of existing laws to protect the 
     employment rights of victims of domestic violence, dating 
     violence, sexual assault, or stalking, by protecting the 
     civil and economic rights of victims of domestic violence, 
     dating violence, sexual assault, or stalking, and by 
     furthering the equal opportunity of women for economic self-
     sufficiency and employment free from discrimination;
       (5) to minimize the negative impact on interstate commerce 
     from dislocations of employees and harmful effects on 
     productivity, employment, health care costs, and employer 
     costs, caused by domestic violence, dating violence, sexual 
     assault, or stalking, including intentional efforts to 
     frustrate women's ability to participate in employment and 
     interstate commerce; and
       (6) to accomplish the purposes described in paragraphs (1) 
     through (5) by prohibiting employers from discriminating 
     against actual or perceived victims of domestic violence, 
     dating violence, sexual assault, or stalking, in a manner 
     that accommodates the legitimate interests of employers and 
     protects the safety of all persons in the workplace.

     SEC. 303. PROHIBITED DISCRIMINATORY ACTS.

       (a) In General.--An employer shall not fail to hire, refuse 
     to hire, discharge, or harass any individual, or otherwise 
     discriminate against any individual with respect to the 
     compensation, terms, conditions, or privileges of employment 
     of the individual (including retaliation in any form or 
     manner), and a public agency shall not deny, reduce, or 
     terminate the benefits of, otherwise sanction, or harass any 
     individual, or otherwise discriminate against any individual 
     with respect to the amount, terms, or conditions of public 
     assistance of the individual (including retaliation in any 
     form or manner), because--
       (1) the individual involved--
       (A) is or is perceived to be a victim of domestic violence, 
     dating violence, sexual assault, or stalking;
       (B) attended, participated in, prepared for, or requested 
     leave to attend, participate in, or prepare for, a criminal 
     or civil court proceeding relating to an incident of domestic 
     violence, dating violence, sexual assault, or stalking of 
     which the individual, or the family or household member of 
     the individual, was a victim; or
       (C) requested an adjustment to a job structure, workplace 
     facility, or work requirement, including a transfer, 
     reassignment, or modified schedule, leave, a changed 
     telephone number or seating assignment, installation of a 
     lock, or implementation of a safety procedure, in response to 
     actual or threatened domestic violence, dating violence, 
     sexual assault, or stalking, regardless of whether the 
     request was granted; or
       (2) the workplace is disrupted or threatened by the action 
     of a person whom the individual states has committed or 
     threatened to commit domestic violence, dating violence, 
     sexual assault, or stalking against the individual, or the 
     individual's family or household member.
       (b) Definitions.--In this section:
       (1) Discriminate.--The term ``discriminate'', used with 
     respect to the terms, conditions, or privileges of employment 
     or with respect to the terms or conditions of public 
     assistance, includes not making a reasonable accommodation to 
     the known limitations of an otherwise qualified individual--
       (A) who is a victim of domestic violence, dating violence, 
     sexual assault, or stalking;
       (B) who is--
       (i) an applicant or employee of the employer (including a 
     public agency) that employs individuals as described in 
     section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 603(e)(2)); or
       (ii) an applicant for or recipient of public assistance 
     from a public agency; and
       (C) whose limitations resulted from circumstances relating 
     to being a victim of domestic violence, dating violence, 
     sexual assault, or stalking;
     unless the employer or public agency can demonstrate that the 
     accommodation would impose an undue hardship on the operation 
     of the employer or public agency.
       (2) Qualified individual.--The term ``qualified 
     individual'' means--
       (A) in the case of an applicant or employee described in 
     paragraph (1)(B)(i), an individual who, with or without 
     reasonable accommodation, can perform the essential functions 
     of the employment position that such individual holds or 
     desires; or
       (B) in the case of an applicant or recipient described in 
     paragraph (1)(B)(ii), an individual who, with or without 
     reasonable accommodation, can satisfy the essential 
     requirements of the program providing the public assistance 
     that the individual receives or desires.
       (3) Reasonable accommodation.--The term ``reasonable 
     accommodation'' may include an adjustment to a job structure, 
     workplace facility, or work requirement, including a 
     transfer, reassignment, or modified schedule, leave, a 
     changed telephone number or seating assignment, installation 
     of a lock, or implementation of a safety procedure, in 
     response to actual or threatened domestic violence, dating 
     violence, sexual assault, or stalking.
       (4) Undue hardship.--

[[Page S10745]]

       (A) In general.--The term ``undue hardship'' means an 
     action requiring significant difficulty or expense, when 
     considered in light of the factors set forth in subparagraph 
     (B).
       (B) Factors to be considered.--In determining whether a 
     reasonable accommodation would impose an undue hardship on 
     the operation of an employer or public agency, factors to be 
     considered include--
       (i) the nature and cost of the reasonable accommodation 
     needed under this section;
       (ii) the overall financial resources of the facility 
     involved in the provision of the reasonable accommodation, 
     the number of persons employed at such facility, the effect 
     on expenses and resources, or the impact otherwise of such 
     accommodation on the operation of the facility;
       (iii) the overall financial resources of the employer or 
     public agency, the overall size of the business of an 
     employer or public agency with respect to the number of 
     employees of the employer or public agency, and the number, 
     type, and location of the facilities of an employer or public 
     agency; and
       (iv) the type of operation of the employer or public 
     agency, including the composition, structure, and functions 
     of the workforce of the employer or public agency, the 
     geographic separateness of the facility from the employer or 
     public agency, and the administrative or fiscal relationship 
     of the facility to the employer or public agency.

     SEC. 304. ENFORCEMENT.

       (a) Civil Action by Individuals.--
       (1) Liability.--Any employer that violates section 303 
     shall be liable to any individual affected for--
       (A) damages equal to the amount of wages, salary, 
     employment benefits, or other compensation denied or lost to 
     such individual by reason of the violation, and the interest 
     on that amount calculated at the prevailing rate;
       (B) compensatory damages, including damages for future 
     pecuniary losses, emotional pain, suffering, inconvenience, 
     mental anguish, loss of enjoyment or life, and other 
     nonpecuniary losses;
       (C) such punitive damages, up to 3 times the amount of 
     actual damages sustained, as the court described in paragraph 
     (2) shall determine to be appropriate; and
       (D) such equitable relief as may be appropriate, including 
     employment, reinstatement, and promotion.
       (2) Right of action.--An action to recover the damages or 
     equitable relief prescribed in paragraph (1) may be 
     maintained against any employer in any Federal or State court 
     of competent jurisdiction by any 1 or more individuals 
     described in section 303.
       (b) Action by Department of Justice.--The Attorney General 
     may bring a civil action in any Federal or State court of 
     competent jurisdiction to recover the damages or equitable 
     relief described in subsection (a)(1).
       (c) Library of Congress.--Notwithstanding any other 
     provision of this section, in the case of the Library of 
     Congress, the authority of the Secretary under this section 
     shall be exercised by the Librarian of Congress.
       (d) Certain Public Agency Employers.--
       (1) Agencies.--Notwithstanding any other provision of this 
     subsection, in the case of a public agency that employs 
     individuals as described in subparagraph (A) or (B) of 
     section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203(e)(2)) (other than an entity of the legislative 
     branch of the Federal Government), paragraph (2) shall apply.
       (2) Authority.--In the case described in subparagraph (A), 
     the powers, remedies, and procedures provided (in the case of 
     a violation of section 2302(b)(1)(A) of title 5, United 
     States Code) in title 5, United States Code, to an employing 
     agency, the Office of Special Counsel, the Merit Systems 
     Protection Board, or any person alleging a violation of such 
     section 2302(b)(1)(A), shall be the powers, remedies, and 
     procedures this section provides in the case of a violation 
     of section 303 to that agency, that Office, that Board, or 
     any person alleging a violation of section 303, respectively, 
     against an employee who is such an individual.
       (e) Public Agencies Providing Public Assistance.--
     Consistent with regulations prescribed under section 306(d), 
     the President shall ensure that any public agency that 
     violates section 303(a) by taking an action prohibited under 
     section 303(a) against any individual with respect to the 
     amount, terms, or conditions of public assistance, shall 
     provide to any individual who receives a less favorable 
     amount, term, or condition of public assistance as a result 
     of the violation--
       (1)(A) the amount of any public assistance denied or lost 
     to such individual by reason of the violation; and
       (B) the interest on the amount described in clause (i) 
     calculated at the prevailing rate; and
       (2) such equitable relief as may be appropriate.

     SEC. 305. ATTORNEY'S FEES.

       Section 722(b) of the Revised Statutes (42 U.S.C. 1988(b)) 
     is amended by inserting ``the Victims' Employment 
     Sustainability Act,'' after ``title VI of the Civil Rights 
     Act of 1964,''.

     SEC. 306. REGULATIONS.

       (a) In General.--Except as provided in subsections (b), 
     (c), and (d), the Secretary shall issue regulations to carry 
     out this title.
       (b) Library of Congress.--The Librarian of Congress shall 
     prescribe the regulations described in subsection (a) with 
     respect to employees of the Library of Congress. The 
     regulations prescribed under this subsection shall, to the 
     extent appropriate, be consistent with the regulations 
     prescribed by the Secretary under subsection (a).
       (c) Certain Public Agency Employers.--The Office of 
     Personnel Management, after consultation under the Office of 
     Special Counsel and the Merit Systems Protection Board, shall 
     prescribe the regulations described in subsection (a) with 
     respect to individuals described in subparagraph (A) or (B) 
     of section 3(e)(2) of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 203(e)(2)) (other than an individual employed by 
     an entity of the legislative branch of the Federal 
     Government). The regulations prescribed under this subsection 
     shall, to the extent appropriate, be consistent with the 
     regulations prescribed by the Secretary under subsection (a).
       (d) Public Agencies Providing Public Assistance.--The 
     President shall prescribe the regulations described in 
     subsection (a) with respect to applicants for and recipients 
     of public assistance, in the case of violations of section 
     303(a) by taking an action prohibited under section 303(a) 
     against any individual with respect to the amount, terms, or 
     conditions of public assistance. The regulations prescribed 
     under this subsection shall, to the extent appropriate, be 
     consistent with the regulations prescribed by the Secretary 
     under subsection (a).

            TITLE IV--VICTIMS OF ABUSE INSURANCE PROTECTION

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Victims of Abuse Insurance 
     Protection Act''.

     SEC. 402. DEFINITIONS.

       In this title:
       (1) Abuse.--The term ``abuse'' means the occurrence of 1 or 
     more of the following acts by a current or former household 
     or family member, intimate partner, or caretaker:
       (A) Attempting to cause or causing another person bodily 
     injury, physical harm, substantial emotional distress, or 
     psychological trauma.
       (B) Attempting to engage in or engaging in rape, sexual 
     assault, or involuntary sexual intercourse.
       (C) Engaging in a course of conduct or repeatedly 
     committing acts toward another person, including following 
     the person without proper authority and under circumstances 
     that place the person in reasonable fear of bodily injury or 
     physical harm.
       (D) Subjecting another person to false imprisonment or 
     kidnapping.
       (E) Attempting to cause or causing damage to property so as 
     to intimidate or attempt to control the behavior of another 
     person.
       (2) Health carrier.--The term ``health carrier'' means a 
     person that contracts or offers to contract on a risk-
     assuming basis to provide, deliver, arrange for, pay for, or 
     reimburse any of the cost of health care services, including 
     a sickness and accident insurance company, a health 
     maintenance organization, a nonprofit hospital and health 
     service corporation, or any other entity providing a plan of 
     health insurance, health benefits, or health services.
       (3) Insured.--The term ``insured'' means a party named on a 
     policy, certificate, or health benefit plan, including an 
     individual, corporation, partnership, association, 
     unincorporated organization, or any similar entity, as the 
     person with legal rights to the benefits provided by the 
     policy, certificate, or health benefit plan. For group 
     insurance, the term includes a person who is a beneficiary 
     covered by a group policy, certificate, or health benefit 
     plan. For life insurance, the term refers to the person whose 
     life is covered under an insurance policy.
       (4) Insurer.--The term ``insurer'' means any person, 
     reciprocal exchange, inter insurer, Lloyds insurer, fraternal 
     benefit society, or other legal entity engaged in the 
     business of insurance, including agents, brokers, adjusters, 
     and third-party administrators. The term includes employers 
     who provide or make available employment benefits through an 
     employee benefit plan, as defined in section 3(3) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     102(3)). The term also includes health carriers, health 
     benefit plans, and life, disability, and property and 
     casualty insurers.
       (5) Policy.--The term ``policy'' means a contract of 
     insurance, certificate, indemnity, suretyship, or annuity 
     issued, proposed for issuance, or intended for issuance by an 
     insurer, including endorsements or riders to an insurance 
     policy or contract.
       (6) Subject of abuse.--The term ``subject of abuse'' 
     means--
       (A) a person against whom an act of abuse has been 
     directed;
       (B) a person who has prior or current injuries, illnesses, 
     or disorders that resulted from abuse; or
       (C) a person who seeks, may have sought, or had reason to 
     seek medical or psychological treatment for abuse, 
     protection, court-ordered protection, or shelter from abuse.

     SEC. 403. DISCRIMINATORY ACTS PROHIBITED.

       (a) In General.--No insurer may, directly or indirectly, 
     engage in any of the following acts or practices on the basis 
     that the applicant or insured, or any person employed by the 
     applicant or insured or with whom the applicant or insured is 
     known to have a relationship or association, is, has been, or 
     may be the subject of abuse or has incurred or may incur 
     abuse-related claims:

[[Page S10746]]

       (1) Denying, refusing to issue, renew, or reissue, or 
     canceling or otherwise terminating an insurance policy or 
     health benefit plan.
       (2) Restricting, excluding, or limiting insurance coverage 
     for losses or denying a claim, except as otherwise permitted 
     or required by State laws relating to life insurance 
     beneficiaries.
       (3) Adding a premium differential to any insurance policy 
     or health benefit plan.
       (b) Prohibition on Limitation of Claims.--No insurer may, 
     directly or indirectly, deny or limit payment to an insured 
     who is a subject of abuse if the claim for payment is a 
     result of the abuse.
       (c) Prohibition on Termination.--
       (1) In general.--No insurer or health carrier may terminate 
     health coverage for a subject of abuse because coverage was 
     originally issued in the name of the abuser and the abuser 
     has divorced, separated from, or lost custody of the subject 
     of abuse or the abuser's coverage has terminated voluntarily 
     or involuntarily and the subject of abuse does not qualify 
     for an extension of coverage under part 6 of subtitle B of 
     title I of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1161 et seq.) or section 4980B of the 
     Internal Revenue Code of 1986.
       (2) Payment of premiums.--Nothing in paragraph (1) shall be 
     construed to prohibit the insurer from requiring that the 
     subject of abuse pay the full premium for the subject's 
     coverage under the health plan if the requirements are 
     applied to all insured of the health carrier.
       (3) Exception.--An insurer may terminate group coverage to 
     which this subsection applies after the continuation coverage 
     period required by this subsection has been in force for 18 
     months if it offers conversion to an equivalent individual 
     plan.
       (4) Continuation coverage.--The continuation of health 
     coverage required by this subsection shall be satisfied by 
     any extension of coverage under part 6 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1161 et seq.) or section 4980B of the Internal Revenue 
     Code of 1986 provided to a subject of abuse and is not 
     intended to be in addition to any extension of coverage 
     otherwise provided for under such part 6 or section 4980B.
       (d) Use of Information.--
       (1) Limitation.--
       (A) In general.--In order to protect the safety and privacy 
     of subjects of abuse, no person employed by or contracting 
     with an insurer or health benefit plan may (without the 
     consent of the subject)--
       (i) use, disclose, or transfer information relating to 
     abuse status, acts of abuse, abuse-related medical 
     conditions, or the applicant's or insured's status as a 
     family member, employer, associate, or person in a 
     relationship with a subject of abuse for any purpose 
     unrelated to the direct provision of health care services 
     unless such use, disclosure, or transfer is required by an 
     order of an entity with authority to regulate insurance or an 
     order of a court of competent jurisdiction; or
       (ii) disclose or transfer information relating to an 
     applicant's or insured's mailing address or telephone number 
     or the mailing address and telephone number of a shelter for 
     subjects of abuse, unless such disclosure or transfer--

       (I) is required in order to provide insurance coverage; and
       (II) does not have the potential to endanger the safety of 
     a subject of abuse.

       (B) Rule of construction.--Nothing in this paragraph may be 
     construed to limit or preclude a subject of abuse from 
     obtaining the subject's own insurance records from an 
     insurer.
       (2) Authority of subject of abuse.--A subject of abuse, at 
     the absolute discretion of the subject of abuse, may provide 
     evidence of abuse to an insurer for the limited purpose of 
     facilitating treatment of an abuse-related condition or 
     demonstrating that a condition is abuse-related. Nothing in 
     this paragraph shall be construed as authorizing an insurer 
     or health carrier to disregard such provided evidence.

     SEC. 404. INSURANCE PROTOCOLS FOR SUBJECTS OF ABUSE.

       Insurers shall develop and adhere to written policies 
     specifying procedures to be followed by employees, 
     contractors, producers, agents, and brokers for the purpose 
     of protecting the safety and privacy of a subject of abuse 
     and otherwise implementing this title when taking an 
     application, investigating a claim, or taking any other 
     action relating to a policy or claim involving a subject of 
     abuse.

     SEC. 405. REASONS FOR ADVERSE ACTIONS.

       An insurer that takes an action that adversely affects a 
     subject of abuse, shall advise the applicant or insured who 
     is the subject of abuse of the specific reasons for the 
     action in writing. For purposes of this section, reference to 
     general underwriting practices or guidelines shall not 
     constitute a specific reason.

     SEC. 406. LIFE INSURANCE.

       Nothing in this title shall be construed to prohibit a life 
     insurer from declining to issue a life insurance policy if 
     the applicant or prospective owner of the policy is or would 
     be designated as a beneficiary of the policy, and if--
       (1) the applicant or prospective owner of the policy lacks 
     an insurable interest in the insured; or
       (2) the applicant or prospective owner of the policy is 
     known, on the basis of police or court records, to have 
     committed an act of abuse against the proposed insured.

     SEC. 407. SUBROGATION WITHOUT CONSENT PROHIBITED.

       Subrogation of claims resulting from abuse is prohibited 
     without the informed consent of the subject of abuse.

     SEC. 408. ENFORCEMENT.

       (a) Federal Trade Commission.--Any act or practice 
     prohibited by this title shall be treated as an unfair and 
     deceptive act or practice pursuant to section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45) and the Federal 
     Trade Commission shall enforce this title in the same manner, 
     by the same means, and with the same jurisdiction, powers, 
     and duties as though all applicable terms and provisions of 
     the Federal Trade Commission Act were incorporated into and 
     made a part of this title, including issuing a cease and 
     desist order granting any individual relief warranted under 
     the circumstances, including temporary, preliminary, and 
     permanent injunctive relief and compensatory damages.
       (b) Private Cause of Action.--
       (1) In general.--An applicant or insured who believes that 
     the applicant or insured has been adversely affected by an 
     act or practice of an insurer in violation of this title may 
     maintain an action against the insurer in a Federal or State 
     court of original jurisdiction.
       (2) Relief.--Upon proof of such conduct by a preponderance 
     of the evidence in an action described in paragraph (1), the 
     court may award appropriate relief, including temporary, 
     preliminary, and permanent injunctive relief and compensatory 
     and punitive damages, as well as the costs of suit and 
     reasonable fees for the aggrieved individual's attorneys and 
     expert witnesses.
       (3) Statutory damages.--With respect to compensatory 
     damages in an action described in paragraph (1), the 
     aggrieved individual may elect, at any time prior to the 
     rendering of final judgment, to recover in lieu of actual 
     damages, an award of statutory damages in the amount of 
     $5,000 for each violation.

     SEC. 409. EFFECTIVE DATE.

       This title shall apply with respect to any action taken on 
     or after the date of enactment of this Act.

  TITLE V--NATIONAL CLEARINGHOUSE AND RESOURCE CENTER ON DOMESTIC AND 
                 SEXUAL VIOLENCE IN THE WORKPLACE GRANT

     SEC. 501. NATIONAL CLEARINGHOUSE AND RESOURCE CENTER ON 
                   DOMESTIC AND SEXUAL VIOLENCE IN THE WORKPLACE 
                   GRANT.

       (a) Authority.--The Attorney General may award a grant in 
     accordance with this section to a private, nonprofit entity 
     or tribal organization that meets the requirements of 
     subsection (b), in order to provide for the establishment and 
     operation of a national clearinghouse and resource center to 
     provide information and assistance to employers, labor 
     organizations, and advocates on behalf of victims of domestic 
     violence, dating violence, sexual assault, or stalking, to 
     aid in their efforts to develop and implement appropriate 
     responses to domestic violence, dating violence, sexual 
     assault, or stalking to assist those victims.
       (b) Applications.--To be eligible to receive a grant under 
     this section, an entity or organization shall submit an 
     application to the Attorney General at such time, in such 
     manner, and containing such information as the Attorney 
     General may require, including--
       (1) information that demonstrates that the applicant--
       (A) has nationally recognized expertise in the area of 
     domestic violence, dating violence, sexual assault, or 
     stalking and a record of commitment to reducing, and quality 
     responses to reduce, domestic violence, dating violence, 
     sexual assault, or stalking; and
       (B) will provide matching funds from non-Federal sources in 
     an amount equal to not less than 10 percent of the total 
     amount of the grant awarded under this section; and
       (2) a plan to maximize, to the extent practicable, 
     outreach--
       (A) to employers (including private companies, and public 
     entities such as public institutions of higher education and 
     State and local governments) and labor organizations in 
     developing and implementing appropriate responses to assist 
     employees who are victims of domestic violence, dating 
     violence, sexual assault, or stalking; and
       (B) to advocates described in subsection (a), in developing 
     and implementing appropriate responses to assist victims of 
     domestic violence, dating violence, sexual assault, or 
     stalking.
       (c) Use of Grant Amount.--
       (1) In general.--An entity or organization that receives a 
     grant under this section may use the funds made available 
     through the grant for staff salaries, travel expenses, 
     equipment, printing, and other reasonable expenses necessary 
     to develop, maintain, and disseminate to employers, labor 
     organizations, and advocates described in subsection (a), 
     information on and assistance concerning appropriate 
     responses to assist victims of domestic violence, dating 
     violence, sexual assault, or stalking.
       (2) Responses.--Responses referred to in paragraph (1) may 
     include--
       (A) providing training to promote a better understanding of 
     appropriate assistance to victims of domestic violence, 
     dating violence, sexual assault, or stalking;

[[Page S10747]]

                                 ______
                                 
      By Mr. CORZINE (for himself, Mr. Johnson, Mr. Lautenberg, and Ms. 
        Stabenow):
  S. 1798. A bill to amend titles XI and XVIII of the Social Security 
Act to prohibit outbound call telemarketing to individuals eligible to 
receive benefits under title XVIII of such Act; to the Committee on 
Finance.
  Mr. CORZINE. Mr. President, I rise today to introduce legislation, 
the Medicare Do Not Call Act, to prohibit private insurance companies 
from telemarketing their Medicare prescription drug and Medicare 
Advantage plans to Medicare beneficiaries. I am very pleased to be 
introducing this bill along with my colleagues, Senators Johnson and 
Lautenberg. I thank my colleagues for their support of this important 
legislation.
  Beginning this Saturday, October 1, private insurance plans offering 
Medicare prescription drug coverage will begin marketing their products 
to Medicare beneficiaries.
  Depending on which Medicare region they live in, beneficiaries will 
be confronted with selecting from as many as 20 stand-alone 
prescription different plans. In New Jersey, beneficiaries will choose 
among 17 different plans. Under current law, these plans can both send 
mail to and call seniors and people with disabilities who are eligible 
to enroll in the Medicare Part D benefit. As a result, in addition to 
being flooded with mail, our seniors and disabled will be flooded with 
phone calls.
  I am extremely concerned that permitting plans to telemarket creates 
great potential for unscrupulous individuals and businesses to defraud 
this vulnerable population. Even if the plans themselves are honest 
brokers, it may be difficult for a senior or disabled beneficiary to 
distinguish between who is honest and who is not.
  I am very concerned that such individuals may seize the opportunity 
to take advantage of this vulnerable population. Unless we act now, 
there will be an endless potential for fraud and identity theft within 
the Medicare Part D plan.
  Beneficiaries are already confused about what their rights are with 
respect to the new prescription drug benefit. A senior who is told that 
she must provide her Social Security or credit card number to a 
telemarketer in order to obtain Medicare prescription drug coverage may 
feel compelled to do so, lest she forgo her opportunity to obtain 
prescription drug coverage.
  Concerns about telemarketing fraud against seniors are very real. The 
Department of Justice estimates that telemarketing crooks cheat one out 
of six consumers every year, resulting in costs to Americans of $40 
billion a year. Americans over 65, our Nation's seniors, are the 
primary target of these scams.
  At a time when identity theft is at an all time high, the Federal 
government should take every precaution available to protect the 
American public. We should not permit government-sponsored programs, 
such as the Medicare prescription drug program, to engage in 
telemarketing. The best way to prevent such fraud from occurring is to 
prohibit telemarketing of any and all Medicare sponsored prescription 
drug products. The Medicare Do Not Call Act will do just that. My 
legislation imposes serious criminal penalties on unscrupulous 
individuals and companies that seek to defraud Medicare beneficiaries 
through telemarketing appeals. We must do everything we can to protect 
this vulnerable population.
  The bottom line is that telemarketing simply is not necessary to 
educate seniors about their prescription drug options. My legislation 
permits insurance companies who are contacted by beneficiaries to 
discuss plan options with them. As beneficiaries talk to trusted 
friends and organizations and read over the literature about the 
different drugs plans, they can then contact plans to discuss their 
options further. My legislation does not stop beneficiaries from 
speaking to these companies; it simply prohibits these companies from 
making the initial `cold call' to beneficiaries.
  I deeply believe that the Federal government has a responsibility to 
do everything in its power to prevent telemarketing fraud. Permitting 
drug plans to telemarket to seniors and people with disabilities may 
provide a source of information to these individuals; however, because 
each plan wants to sell their own products, telemarketers may not 
provide the most objective information about a beneficiary's options.
  There are better ways to educate seniors and disabled about the 
prescription drug benefit. The Medicare Do Not Call Act provides 
additional resources--$2 per Medicare beneficiary--to the State Health 
Insurance Counseling and Assistance Programs (SHIPs) to provide 
counseling and enrollment assistance services to Medicare 
beneficiaries. SHIPs provide valuable objective information to 
beneficiaries and can provide tremendous assistance in helping 
beneficiaries select the plan that best suits their needs.
  I urge all of my colleagues to join me in supporting this 
legislation. By prohibiting these un-invited calls we can protect 
seniors and other Medicare beneficiaries from fraudulent intentions and 
ensure that this complicated transition within the Medicare program be 
as straightforward, and safe, as possible.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1798

       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 Do Not Call Act''.

     SEC. 2. TELEMARKETING PROHIBITED.

       (a) Prescription Drug Plans.--Section 1860D-4(a) of the 
     Social Security Act (42 U.S.C. 1395w-l04(a)) is amended by 
     adding at the end the following new paragraph:
       ``(5) Prohibition on telemarketing.--
       ``(A) In general.--A PDP sponsor offering a prescription 
     drug plan shall be prohibited from conducting outbound call 
     telemarketing (as defined in subparagraph (B)) for the 
     purpose of soliciting enrollment into such a plan under this 
     part.
       ``(B) Outbound call telemarketing defined.--
       ``(i) In general.--Except as provided in clause (ii), for 
     purposes of this paragraph, the term `outbound call 
     telemarketing' means a telephone call initiated by a 
     telemarketer--
       ``(I) to induce the purchase of goods or services; or
       ``(II) to solicit a charitable contribution.
       ``(ii) Catalog mailings not included in definition of 
     outbound call telemarketing.--Such term does not include--
       ``(I) the mailing of a catalog; or
       ``(II) the receipt or return of a telephone call initiated 
     by a customer in response to such mailing.''.
       (b) Medicare Advantage Organizations.--Section 1851(h) of 
     the Social Security Act (42 U.S.C. 1395w-21(h)) is amended by 
     adding at the end the following new paragraph:
       ``(6) Prohibition on telemarketing.--A Medicare Advantage 
     organization offering a Medicare Advantage plan shall be 
     prohibited from conducting outbound call telemarketing (as 
     defined in section 1860D-4(a)(5)(B)) for the purpose of 
     soliciting enrollment into such a plan under this part.''.
       (c) Criminal Penalties for Fraudulent Telemarketing.--
     Section 1128B of the Social Security Act (42 U.S.C. 1320a-7b) 
     is amended by adding at the end the following new subsection:
       ``(g) Whoever knowingly and willfully engages in deceptive 
     or abusive telemarketing acts or practices (as defined in 
     part 310.3 and part 310.4, respectively, of title 16, Code of 
     Federal Regulations), or makes any false statement or 
     representation of a material fact while conducting outbound 
     call telemarketing (as defined in section 1860D-4(a)(5)(B)) 
     with respect to a prescription drug plan offered by a PDP 
     sponsor under part D of title XVIII, a Medicare Advantage 
     plan offered by a Medicare Advantage organization under part 
     C of such title, or who falsely alleges to be conducting 
     outbound call telemarketing (as so defined) with respect to 
     either such a plan, shall be guilty of a felony and upon 
     conviction thereof shall be fined not more than $25,000 or 
     imprisoned for not more than five years, or both.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act.

     SEC. 3. INCREASED FUNDING FOR STATE HEALTH INSURANCE 
                   COUNSELING AND ASSISTANCE PROGRAMS.

       (a) In General.--There are hereby appropriated to the 
     Secretary of Health and Human Services (in this Act referred 
     to as the ``Secretary'') an amount equal to $2 multiplied by 
     the total number of individuals eligible for benefits under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.). Such funds shall--
       (1) be used by the Secretary to award grants to States 
     under section 4360 of the Omnibus Budget Reconciliation Act 
     of 1990 (42 U.S.C. 1395b-4); and
       (2) remain available until expended.
       (b) Allocation of Grant Funds.--The Secretary shall ensure 
     that funds appropriated under this section are allocated to 
     States in an amount equal to the proportion of the number of 
     residents in the State that are eligible for benefits under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.) in

[[Page S10748]]

     relation to the total number of individuals eligible for such 
     benefits under such title.

     SEC. 4. INFORMING BENEFICIARIES OF THE HHS TIPS HOT-LINE.

       The Secretary shall take appropriate measures to inform 
     individuals eligible for benefits under title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) of the 
     availability and confidentiality of the hotline maintained , 
     by the Inspector General of the Department of Health and 
     Human Services for the reporting of fraud, waste, and I abuse 
     in the medicare program.
                                 ______
                                 
      By Ms. MIKULSKI (for herself, Mr. Voinovich, Mr. Akaka, Mr. 
        Biden, Mr. Dorgan, Mr. Durbin, Mr. Harkin, Mrs. Murray, Mr. 
        Sarbanes, Mr. Schumer, and Mr. Warner):
  S. 1799. A bill to amend title II of the Social Security Act to 
provide that the reductions in Social Security benefits which are 
required in the case of spouses and surviving spouses who are also 
receiving certain government pensions shall be equal to the amount by 
which two-thirds of the total amount of the combined monthly benefit 
(before reduction) and monthly pension exceeds $1,200, adjusted for 
inflation; to the Committee on Finance.
  Ms. MIKULSKI. Mr. President, I rise today to talk about an issue that 
is very important to me, very important to my constituents in Maryland 
and very important to government workers and retirees across the 
Nation. I am reintroducing a bill to modify a cruel rule of government 
that is unfair and prevents current workers from enjoying the benefits 
of their hard work during retirement. My bill has bipartisan support 
and had 29 cosponsors last year. With this strong bipartisan support, I 
hope that we can correct this cruel rule of government this year.
  Under current law, a Social Security spousal benefit is reduced or 
entirely eliminated if the surviving spouse is eligible for a pension 
from a local, State or Federal Government job that was not covered by 
Social Security. This policy is known as the Government Pension Offset.
  This is how the current law works. Consider a surviving spouse who 
retires from government service and receives a government pension of 
$600 a month. She also qualifies for a Social Security spousal benefit 
of $645 a month. Because of the Pension Offset law, which reduces her 
Social Security benefit by 2/3 of her government pension, her spousal 
benefit is reduced to $245 a month. So instead of $1,245, she will 
receive only $845 a month. That is $400 a month less to pay the rent, 
purchase a prescription medication, or buy groceries. I think that is 
wrong.
  My bill does not repeal the government pension offset entirely, but 
it will allow retirees to keep more of what they deserve. It guarantees 
that those subject to the offset can keep at least $1,200 a month in 
combined retirement income. With my modification, the 2/3 offset would 
apply only to the combined benefit that exceeds $1,200 a month. So, in 
the example above, the surviving spouse would face only a $30 offset, 
allowing her to keep $1,215 in monthly income.
  Unfortunately, the current law disproportionately affects women. 
Women are more likely to receive Social Security spousal benefits and 
to have worked in low-paying or short-term government positions while 
they were raising families. It is also true that women receive smaller 
government pensions because of their lower earnings, and rely on Social 
Security benefits to a greater degree. My modification will allow these 
women who have contributed years of important government service and 
family service to rely on a larger amount of retirement income.
  Why do we punish people who have committed a significant portion of 
their lives to government service? We are talking about workers who 
provide some of the most important services to our community--teachers, 
firefighters, and many others. Some have already retired. Others are 
currently working and looking forward to a deserved retirement. These 
individuals deserve better than the reduced monthly benefits that the 
Pension Offset currently requires.
  Government employees work hard in service to our Nation, and I work 
hard for them. I do not want to see them penalized simply because they 
have chosen to work in the public sector, rather than for a private 
employer, and often at lower salaries and sometimes fewer benefits. If 
a retired worker in the private sector received a pension, and also 
received a spousal Social Security benefit, they would not be subject 
to the Offset. I think we should be looking for ways to reward 
government service, not the other way around. I believe that people who 
work hard and play by the rules should not be penalized by arcane, 
legislative technicalities.
  Frankly, I would like to repeal the offset altogether. But, I realize 
that budget considerations make that unlikely. As a compromise, I hope 
we can agree that retirees who have worked hard all their lives should 
not have this offset applied until their combined monthly benefit, both 
government pension and Social Security spousal benefit, exceeds $1,200.
  I also strongly believe that we should ensure that retirees buying 
power keeps up with the cost of living. That's why I have also included 
a provision in this legislation to index the $1,200 amount to inflation 
so retirees will see their minimum benefits increase along with the 
cost of living.
  The Social Security Administration recently estimated that enacting 
the provisions contained in my bill will have a minimal long-term 
impact on the Social Security Trust Fund--about 0.01 percent of taxable 
payroll.
  I urge my colleagues to join me in this effort and support my 
legislation to modify the Government Pension Offset. I ask unanimous 
consent that the text of my bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1799

       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 ``Government Pension Offset 
     Reform Act''.

     SEC. 2. LIMITATION ON REDUCTIONS IN BENEFITS FOR SPOUSES AND 
                   SURVIVING SPOUSES RECEIVING GOVERNMENT 
                   PENSIONS.

       (a) Insurance Benefits.--Section 202(k)(5)(A) of the Social 
     Security Act (42 U.S.C. 402(k)(5)(A)) is amended--
       (1) by inserting ``the amount (if any) by which the sum of 
     such benefit (before reduction under this paragraph) and'' 
     after ``two-thirds of ''; and
       (2) by inserting ``exceeds the amount described in 
     paragraph (6) for such month,'' before ``if ''.
       (b) Amount Described.--Section 202(k) of the Social 
     Security Act (42 U.S.C. 402(k)) is amended by adding at the 
     end the following:
       ``(6) The amount described in this paragraph is, for months 
     in each 12-month period beginning in December of 2005, and 
     each succeeding calendar year, the greater of--
       ``(A) $1,200; or
       ``(B) the amount applicable for months in the preceding 12-
     month period, increased by the cost-of-living adjustment for 
     such period determined for an annuity under section 8340 of 
     title 5, United States Code (without regard to any other 
     provision of law).''.
       (c) Limitations on Reductions in Benefits.--Section 202(k) 
     of the Social Security Act (42 U.S.C. 402(k)), as amended by 
     subsection (b), is amended by adding at the end the 
     following:
       ``(7) For any month after December 2005, in no event shall 
     an individual receive a reduction in a benefit under 
     paragraph (5)(A) for the month that is more than the 
     reduction in such benefit that would have applied for such 
     month under such paragraph as in effect on December 1, 
     2005.''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by section 2 shall apply with respect 
     to monthly insurance benefits payable under title II of the 
     Social Security Act for months after December 2005.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Rockefeller, and Mr. Bunning):
  S. 1800. A bill to amend the Internal Revenue Code of 1986 to extend 
the new markets tax credit; to the Committee on Finance.
  Ms. SNOWE. Mr. President, today I rise to introduce legislation that 
would re-authorize the New Markets Tax Credit for five additional 
years. I'd like to thank the Senator from West Virginia, Jay 
Rockefeller, for cosponsoring this legislation, as well as Senator Jim 
Bunning. Their strong support is appreciated, and this program will 
help revitalize many communities all across America.
  The New Markets Tax Credit was enacted in December 2000 as part of 
the Community Renewal Tax Relief Act and offers a seven-year, 39 
percent Federal credit made through investment vehicles known as 
Community Development Entities (CDEs). CDEs combine private investment 
dollars with capital

[[Page S10749]]

raised through the incentive to make loans to or investments in 
businesses in low-income communities.
  In its brief period of existence, the New Markets Tax Credit has had 
a tremendous success in strengthening and revitalizing communities. In 
Maine, Coastal Enterprises, Inc. issued a $31.5 million long-term NMTC 
loan to Katahdin Forest Management, which provided additional working 
capital for two large pulp and paper mills. These investments resulted 
in the direct employment of 650 people and potential jobs for another 
200. The Katahdin Project has helped to diversify the area economy 
through the development of new, high-value wood processing enterprises 
and recreational tourism.
  CDEs have also invested in a new child care facility on Chicago's 
west side, the first new supermarket and shopping center in inner-city 
Cleveland in 30 years and a new aerospace facility in rural Oklahoma.
  All of these projects demonstrate the revitalization and 
strengthening of communities that the Credit is helping to make 
possible. In only 3 years, CDEs have raised $2 billion of capital for 
direct investment in economically distressed communities across the 
Nation. This impressive activity over a short period of time points to 
the need and opportunity for such investment in low-income communities.
  Unfortunately, as effective as the New Markets Tax Credit has been, 
demand for the incentive has far exceeded supply. In fact, the average 
demand in the first three rounds was a staggering 10 times the amount 
of available credits. The Treasury Department awarded the first round 
of $2.5 billion in tax credits in March 2003, a second round of $3.5 
billion in May 2004, and a third round worth $2 billion in May 2005.
  Despite the track record of the New Markets Tax Credit and continued 
demand for the incentive, it will expire at the end of 2007. Congress 
must reauthorize this Credit to ensure investment capital continues to 
flow to our most disadvantaged communities. Our bill renews this 
valuable incentive for 5 additional years, through 2012, with an annual 
credit volume of $3.5 billion per year, adjusted for inflation.
  It is critical that Congress act to renew the New Markets Tax Credit. 
It is a modest incentive that clearly works for our most vulnerable 
communities. I look forward to working with Finance Committee Chairman 
Grassley to re-authorize the Credit and to ensure that it includes all 
areas of the country, including rural areas underserved by traditional 
investments.
  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. 1800

       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 ``New Markets Tax Credit 
     Reauthorization Act of 2005''.

     SEC. 2. EXTENSION OF NEW MARKETS TAX CREDIT.

       (a) Extension.--
       (1) In general.--Paragraph (1) of section 45D(f) of the 
     Internal Revenue Code of 1986 (relating to new markets tax 
     credit) is amended to read as follows:
       ``(1) In general.--There is a new markets tax credit 
     limitation of $3,500,000,000 for each of calendar years 2008 
     through 2012.''.
       (2) Conforming amendment.--Paragraph (3) of section 45D(f) 
     of such Code is amended by striking ``2014'' and inserting 
     ``2019''.
       (b) Inflation Adjustment.--Subsection (f) of section 45D of 
     such Code is amended by inserting at the end the following 
     new paragraph:
       ``(4) Inflation adjustment.--
       ``(A) In general.--In the case of any calendar year 
     beginning after 2008, the dollar amount in paragraph (1) 
     shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2007' for `calendar year 1992' in 
     subparagraph (B) thereof.
       ``(B) Rounding rule.--If a dollar amount in paragraph (1), 
     as increased under subparagraph (A), is not a multiple of 
     $1,000,000, such amount shall be rounded to the nearest 
     multiple of $1,000,000.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Allard, Ms. Collins, Mr. Sarbanes, 
        Mr. Bond, Mrs. Murray, Mr. Chafee, Ms. Mikulski, Mr. Dodd, Mr. 
        Akaka, Mr. Schumer, Mr. Corzine, Mrs. Clinton, and Ms. 
        Landrieu):
  S. 1801. A bill to amend the McKinney-Vento Homeless Assistance Act 
to reauthorize the Act, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, I introduce, along with Senators Allard, 
Collins, Sarbanes, Bond, Murray, Chafee, Mikulski, Dodd, Akaka, 
Schumer, Corzine, Landrieu, and Clinton, the Community Partnership to 
End Homelessness Act of 2005 (CPEHA). This legislation would 
reauthorize and amend the housing titles of the McKinney-Vento Homeless 
Assistance Act of 1987. Specifically, our bill would realign the 
incentives behind the Department of Housing and Urban Development's 
homelessness assistance programs to accomplish the goals of preventing 
and ending long-term homelessness.
  During the past several weeks, stark pictures of the reality faced by 
many in the wake of Hurricane Katrina have made more of the country 
aware of the day-to-day pressures faced by those who are homeless. 
Unfortunately, as many as 3.5 million Americans experience homelessness 
each year. Ten to 20 percent are homeless for long periods of time. 
Many of these Americans have severe disabilities. Many have worn a 
uniform for our country, with the Veterans Administration estimating 
that at least 500,000 veterans experience homelessness over the course 
of a year. Statistics regarding the number of children who experience 
homelessness are especially troubling. More than one million children 
experience homelessness each year; that is one in ten poor children in 
the United States. We have learned that children who are homeless are 
in poorer health, have developmental delays, and achieve less in school 
than children who have homes.
  Many of those who are homeless have a simple problem--they cannot 
afford housing. Using the most recent census data, 56 percent of 
extremely low-income families are paying more than half their income 
for housing. Between 1990 and 2000, shortages of affordable housing for 
these families worsened in 44 of the 50 States. In 2000, it was 
estimated that 4.6 million units of low-income housing would need to be 
created in order to take care of this problem. As rents have soared and 
affordable housing units have disappeared from the market during the 
past five years, even more working Americans have been left unable to 
afford housing.
  So why should the Federal Government work to help prevent and end 
homelessness? Simply put, we cannot afford not to solve this problem. 
Homelessness leads to untold costs, including expenses for emergency 
rooms, jails and shelters, foster care, detoxification, and emergency 
mental health treatment. It has been almost twenty years since the 
passage of the McKinney-Vento Homeless Assistance Act of 1987, and we 
have learned a lot about the problem of homelessness since then.
  There is a growing consensus on ways to help communities break the 
cycle of repeated and prolonged homelessness. If we combine Federal 
dollars with the right incentives to local communities, we can end 
long-term homelessness. This bipartisan legislation will do just that. 
It will reward communities for initiatives that prevent homelessness, 
promote the development of permanent supportive housing, and optimize 
self-sufficiency.
  The Community Partnership to Help End Homelessness Act of 2005 will 
set us on the path to meeting an important national goal. I hope my 
colleagues will join us in supporting this bill and other homelessness 
prevention efforts.
  Mr. President, I ask unanimous consent that the text of the Community 
Partnership to Help End Homelessness Act of 2005 be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1801

       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 ``Community Partnership to End 
     Homelessness Act of 2005''.

[[Page S10750]]

     SEC. 2. FINDINGS AND PURPOSE.

       Section 102 of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11301) is amended to read as follows:

     ``SEC. 102. FINDINGS AND PURPOSE.

       ``(a) Findings.--Congress finds that--
       ``(1) the United States faces a crisis of individuals and 
     families who lack basic affordable housing and appropriate 
     shelter;
       ``(2) assistance from the Federal Government is an 
     important factor in the success of efforts by State and local 
     governments and the private sector to address the problem of 
     homelessness in a comprehensive manner;
       ``(3) there are several Federal Government programs to 
     assist persons experiencing homelessness, including programs 
     for individuals with disabilities, veterans, children, and 
     youth;
       ``(4) homeless assistance programs must be evaluated on the 
     basis of their effectiveness in reducing homelessness, 
     transitioning individuals and families to permanent housing 
     and stability, and optimizing their self-sufficiency;
       ``(5) States and units of general local government 
     receiving Federal block grant and other Federal grant funds 
     must be evaluated on the basis of their effectiveness in--
       ``(A) implementing plans to appropriately discharge 
     individuals to and from mainstream service systems; and
       ``(B) reducing barriers to participation in mainstream 
     programs, as identified in--
       ``(i) a report by the Government Accountability Office 
     entitled `Homelessness: Coordination and Evaluation of 
     Programs Are Essential', issued February 26, 1999; or
       ``(ii) a report by the Government Accountability Office 
     entitled `Homelessness: Barriers to Using Mainstream 
     Programs', issued July 6, 2000;
       ``(6) an effective plan for reducing homelessness should 
     provide a comprehensive housing system (including permanent 
     housing and, as needed, transitional housing) that recognizes 
     that, while some individuals and families experiencing 
     homelessness attain economic viability and independence 
     utilizing transitional housing and then permanent housing, 
     others can reenter society directly and optimize self-
     sufficiency through acquiring permanent housing;
       ``(7) supportive housing activities include the provision 
     of permanent housing or transitional housing, and appropriate 
     supportive services, in an environment that can meet the 
     short-term or long-term needs of persons experiencing 
     homelessness as they reintegrate into mainstream society;
       ``(8) homeless housing and supportive services programs 
     within a community are most effective when they are developed 
     and operated as part of an inclusive, collaborative, locally 
     driven homeless planning process that involves as decision 
     makers persons experiencing homelessness, advocates for 
     persons experiencing homelessness, service organizations, 
     government officials, business persons, neighborhood 
     advocates, and other community members;
       ``(9) homelessness should be treated as a symptom of many 
     neighborhood, community, and system problems, whose remedies 
     require a comprehensive approach integrating all available 
     resources;
       ``(10) there are many private sector entities, particularly 
     nonprofit organizations, that have successfully operated 
     outcome-effective homeless programs;
       ``(11) Federal homeless assistance should supplement other 
     public and private funding provided by communities for 
     housing and supportive services for low-income households;
       ``(12) the Federal Government has a responsibility to 
     establish partnerships with State and local governments and 
     private sector entities to address comprehensively the 
     problems of homelessness; and
       ``(13) the results of Federal programs targeted for persons 
     experiencing homelessness have been positive.
       ``(b) Purpose.--It is the purpose of this Act--
       ``(1) to create a unified and performance-based process for 
     allocating and administering funds under title IV;
       ``(2) to encourage comprehensive, collaborative local 
     planning of housing and services programs for persons 
     experiencing homelessness;
       ``(3) to focus the resources and efforts of the public and 
     private sectors on ending and preventing homelessness;
       ``(4) to provide funds for programs to assist individuals 
     and families in the transition from homelessness, and to 
     prevent homelessness for those vulnerable to homelessness;
       ``(5) to consolidate the separate homeless assistance 
     programs carried out under title IV (consisting of the 
     supportive housing program and related innovative programs, 
     the safe havens program, the section 8 assistance program for 
     single-room occupancy dwellings, the shelter plus care 
     program, and the rural homeless housing assistance program) 
     into a single program with specific eligible activities;
       ``(6) to allow flexibility and creativity in re-thinking 
     solutions to homelessness, including alternative housing 
     strategies, outcome-effective service delivery, and the 
     involvement of persons experiencing homelessness in decision 
     making regarding opportunities for their long-term stability, 
     growth, well-being, and optimum self-sufficiency; and
       ``(7) to ensure that multiple Federal agencies are involved 
     in the provision of housing, health care, human services, 
     employment, and education assistance, as appropriate for the 
     missions of the agencies, to persons experiencing 
     homelessness, through the funding provided for implementation 
     of programs carried out under this Act and other programs 
     targeted for persons experiencing homelessness, and 
     mainstream funding, and to promote coordination among those 
     Federal agencies, including providing funding for a United 
     States Interagency Council on Homelessness to advance such 
     coordination.''.

     SEC. 3. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

       Title II of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11311 et seq.) is amended--
       (1) in section 201 (42 U.S.C. 11311), by striking the 
     period at the end and inserting the following: ``whose 
     mission shall be to develop and coordinate the implementation 
     of a national strategy to prevent and end homelessness while 
     maximizing the effectiveness of the Federal Government in 
     contributing to an end to homelessness in the United 
     States.'';
       (2) in section 202 (42 U.S.C. 11312)--
       (A) in subsection (a)--
       (i) by striking ``(16)'' and inserting ``(19)''; and
       (ii) by inserting after paragraph (15) the following:
       ``(16) The Commissioner of Social Security, or the designee 
     of the Commissioner.
       ``(17) The Attorney General of the United States, or the 
     designee of the Attorney General.
       ``(18) The Director of the Office of Management and Budget, 
     or the designee of the Director.'';
       (B) in subsection (c), by striking ``annually'' and 
     inserting ``2 times each year''; and
       (C) by adding at the end the following:
       ``(e) Administration.--The Assistant to the President for 
     Domestic Policy within the Executive Office of the President 
     shall oversee the functioning of the United States 
     Interagency Council on Homelessness to ensure Federal 
     interagency collaboration and program coordination to focus 
     on preventing and ending homelessness, to increase access to 
     mainstream programs (as identified in a report by the 
     Government Accountability Office entitled `Homelessness: 
     Barriers to Using Mainstream Programs', issued July 6, 2000) 
     by persons experiencing homelessness, to eliminate the 
     barriers to participation in those programs, to implement a 
     Federal plan to prevent and end homelessness, and to identify 
     Federal resources that can be expended to prevent and end 
     homelessness.'';
       (3) in section 203(a) (42 U.S.C. 11313(a))--
       (A) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as paragraphs (2), (3), (4), (5), (8), (9), and 
     (10), respectively;
       (B) by inserting before paragraph (2), as redesignated by 
     subparagraph (A), the following:
       ``(1) not later than 1 year after the date of enactment of 
     the Community Partnership to End Homelessness Act of 2005, 
     develop and submit to the President and to Congress a 
     National Strategic Plan to End Homelessness;'';
       (C) in paragraph (5), as redesignated by subparagraph (A), 
     by striking ``at least 2, but in no case more than 5'' and 
     inserting ``not less than 5, but in no case more than 10''; 
     and
       (D) by inserting after paragraph (5), as redesignated by 
     subparagraph (A), the following:
       ``(6) encourage the creation of State Interagency Councils 
     on Homelessness and the formulation of multi-year plans to 
     end homelessness at State, city, and county levels;
       ``(7) develop mechanisms to ensure access by persons 
     experiencing homelessness to all Federal, State, and local 
     programs for which the persons are eligible, and to verify 
     collaboration among entities within a community that receive 
     Federal funding under programs targeted for persons 
     experiencing homelessness, and other programs for which 
     persons experiencing homelessness are eligible, including 
     mainstream programs identified by the Government 
     Accountability Office in the 2 reports described in section 
     102(a)(5)(B);''; and
       (4) by striking section 208 (42 U.S.C. 11318) and inserting 
     the following:

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       ``Of any amounts made available for any fiscal year to 
     carry out subtitles B and C of title IV, $3,000,000 shall be 
     allocated to the Assistant to the President for Domestic 
     Policy within the Executive Office of the President to carry 
     out this title.''.

     SEC. 4. HOUSING ASSISTANCE GENERAL PROVISIONS.

       Subtitle A of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11361 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

                  ``Subtitle A--General Provisions'';

       (2)(A) by redesignating section 401 (42 U.S.C. 11361) as 
     section 403; and
       (B) by redesignating section 402 (42 U.S.C. 11362) as 
     section 406;
       (3) by inserting before section 403 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 401. DEFINITIONS.

       ``In this title:
       ``(1) Chronically homeless.--
       ``(A) In general.--The term `chronically homeless', used 
     with respect to an individual or family, means an individual 
     or family who--
       ``(i) is homeless;

[[Page S10751]]

       ``(ii) has been homeless continuously for at least 1 year 
     or has been homeless on at least 4 separate occasions in the 
     last 3 years; and
       ``(iii) in the case of a family, has an adult head of 
     household with a disabling condition.
       ``(B) Disabling condition.--As used in this paragraph, the 
     term `disabling condition' means a condition that is a 
     diagnosable substance use disorder, serious mental illness, 
     developmental disability (as defined in section 102 of the 
     Developmental Disabilities Assistance and Bill of Rights Act 
     of 2000 (42 U.S.C. 15002)), or chronic physical illness or 
     disability, including the co-occurrence of 2 or more of those 
     conditions.
       ``(2) Collaborative applicant.--
       ``(A) In general.--The term `collaborative applicant' means 
     an entity that--
       ``(i) is a representative community homeless assistance 
     planning body established or designed in accordance with 
     section 402;
       ``(ii) serves as the applicant for project sponsors who 
     jointly submit a single application for a grant under 
     subtitle C in accordance with a collaborative process; and
       ``(iii) if the entity is a legal entity and is awarded such 
     grant, receives such grant directly from the Secretary.
       ``(B) State and local governments.--Notwithstanding the 
     requirements of subparagraph (A), the term `collaborative 
     applicant' includes a State or local government, or a 
     consortium of State or local governments, engaged in 
     activities to end homelessness.
       ``(3) Collaborative application.--The term `collaborative 
     application' means an application for a grant under subtitle 
     C that--
       ``(A) satisfies section 422 (including containing the 
     information described in subsections (a) and (c) of section 
     426); and
       ``(B) is submitted to the Secretary by a collaborative 
     applicant.
       ``(4) Consolidated plan.--The term `Consolidated Plan' 
     means a comprehensive housing affordability strategy and 
     community development plan required in part 91 of title 24, 
     Code of Federal Regulations.
       ``(5) Eligible entity.--The term `eligible entity' means, 
     with respect to a subtitle, a public entity, a private 
     entity, or an entity that is a combination of public and 
     private entities, that is eligible to receive directly grant 
     amounts under that subtitle.
       ``(6) Geographic area.--The term `geographic area' means a 
     State, metropolitan city, urban county, town, village, or 
     other nonentitlement area, or a combination or consortia of 
     such, in the United States, as described in section 106 of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     5306).
       ``(7) Homeless individual with a disability.--
       ``(A) In general.--The term `homeless individual with a 
     disability' means an individual who is homeless, as defined 
     in section 103, and has a disability that--
       ``(i)(I) is expected to be long-continuing or of indefinite 
     duration;
       ``(II) substantially impedes the individual's ability to 
     live independently;
       ``(III) could be improved by the provision of more suitable 
     housing conditions; and
       ``(IV) is a physical, mental, or emotional impairment, 
     including an impairment caused by alcohol or drug abuse;
       ``(ii) is a developmental disability, as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act of 2000 (42 U.S.C. 15002); or
       ``(iii) is the disease of acquired immunodeficiency 
     syndrome or any condition arising from the etiologic agency 
     for acquired immunodeficiency syndrome.
       ``(B) Rule.--Nothing in clause (iii) of subparagraph (A) 
     shall be construed to limit eligibility under clause (i) or 
     (ii) of subparagraph (A).
       ``(8) Legal entity.--The term `legal entity' means--
       ``(A) an entity described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 and exempt from tax under 
     section 501(a) of that Code;
       ``(B) an instrumentality of State or local government; or
       ``(C) a consortium of instrumentalities of State or local 
     governments that has constituted itself as an entity.
       ``(9) Metropolitan city; urban county; nonentitlement 
     area.--The terms `metropolitan city', `urban county', and 
     `nonentitlement area' have the meanings given such terms in 
     section 102(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5302(a)).
       ``(10) New.--The term `new', used with respect to housing, 
     means housing for which no assistance has been provided under 
     this title.
       ``(11) Operating costs.--The term `operating costs' means 
     expenses incurred by a project sponsor operating--
       ``(A) transitional housing or permanent housing under this 
     title with respect to--
       ``(i) the administration, maintenance, repair, and security 
     of such housing;
       ``(ii) utilities, fuel, furnishings, and equipment for such 
     housing; or
       ``(iii) conducting an assessment under section 426(c)(2); 
     and
       ``(B) supportive housing, for homeless individuals with 
     disabilities or homeless families that include such an 
     individual, under this title with respect to--
       ``(i) the matters described in clauses (i), (ii), and (iii) 
     of subparagraph (A); and
       ``(ii) coordination of services as needed to ensure long-
     term housing stability.
       ``(12) Outpatient health services.--The term `outpatient 
     health services' means outpatient health care services, 
     mental health services, and outpatient substance abuse 
     treatment services.
       ``(13) Permanent housing.--The term `permanent housing' 
     means community-based housing without a designated length of 
     stay, and includes permanent supportive housing for homeless 
     individuals with disabilities and homeless families that 
     include such an individual who is an adult.
       ``(14) Permanent housing development activities.--The term 
     `permanent housing development activities' means activities--
       ``(A) to construct, lease, rehabilitate, or acquire 
     structures to provide permanent housing;
       ``(B) involving tenant-based and project-based flexible 
     rental assistance for permanent housing;
       ``(C) described in paragraphs (1) through (4) of section 
     423(a) as they relate to permanent housing; or
       ``(D) involving the capitalization of a dedicated project 
     account from which payments are allocated for rental 
     assistance and operating costs of permanent housing.
       ``(15) Private nonprofit organization.--The term `private 
     nonprofit organization' means an organization--
       ``(A) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board;
       ``(C) that has an accounting system, or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       ``(D) that practices nondiscrimination in the provision of 
     assistance.
       ``(16) Project.--The term `project', used with respect to 
     activities carried out under subtitle C, means eligible 
     activities described in section 423(a), undertaken pursuant 
     to a specific endeavor, such as serving a particular 
     population or providing a particular resource.
       ``(17) Project-based.--The term `project-based', used with 
     respect to rental assistance, means assistance provided 
     pursuant to a contract that--
       ``(A) is between--
       ``(i) a project sponsor; and
       ``(ii) an owner of a structure that exists as of the date 
     the contract is entered into; and
       ``(B) provides that rental assistance payments shall be 
     made to the owner and that the units in the structure shall 
     be occupied by eligible persons for not less than the term of 
     the contract.
       ``(18) Project sponsor.--The term `project sponsor', used 
     with respect to proposed eligible activities, means the 
     organization directly responsible for the proposed eligible 
     activities.
       ``(19) Recipient.--Except as used in subtitle B, the term 
     `recipient' means an eligible entity who--
       ``(A) submits an application for a grant under section 422 
     that is approved by the Secretary;
       ``(B) receives the grant directly from the Secretary to 
     support approved projects described in the application; and
       ``(C)(i) serves as a project sponsor for the projects; or
       ``(ii) awards the funds to project sponsors to carry out 
     the projects.
       ``(20) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(21) Seriously mentally ill.--The term `seriously 
     mentally ill' means having a severe and persistent mental 
     illness or emotional impairment that seriously limits a 
     person's ability to live independently.
       ``(22) State.--Except as used in subtitle B, the term 
     `State' means each of the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands.
       ``(23) Supportive housing.--The term `supportive housing' 
     means housing that--
       ``(A) helps individuals experiencing homelessness and 
     families experiencing homelessness to transition from 
     homelessness to living in safe, decent, and affordable 
     housing as independently as possible; and
       ``(B) provides supportive services and housing assistance 
     on either a temporary or permanent basis, as determined by 
     the identified abilities and needs of the program 
     participants.
       ``(24) Supportive services.--The term `supportive 
     services'--
       ``(A) through the end of the final determination year (as 
     described in section 423(a)(6)(C)(iii)), means the services 
     described in section 423(a)(6)(A), for both new projects and 
     projects receiving renewal funding; and
       ``(B) after that final determination year, means the 
     services described in section 423(a)(6)(B), as permitted 
     under section 423(a)(6)(C), for both new projects and 
     projects receiving renewal funding.
       ``(25) Tenant-based.--The term `tenant-based', used with 
     respect to rental assistance, means assistance that allows an 
     eligible person to select a housing unit in which such person 
     will live using rental assistance provided under subtitle C, 
     except that if necessary to assure that the provision of 
     supportive services to a person participating in a program is 
     feasible, a recipient or project sponsor may require that the 
     person live--
       ``(A) in a particular structure or unit for not more than 
     the first year of the participation; and
       ``(B) within a particular geographic area for the full 
     period of the participation, or the

[[Page S10752]]

     period remaining after the period referred to in subparagraph 
     (A).
       ``(26) Transitional housing.--The term `transitional 
     housing' means housing, the purpose of which is to facilitate 
     the movement of individuals and families experiencing 
     homelessness to permanent housing within 24 months or such 
     longer period as the Secretary determines necessary.

     ``SEC. 402. COLLABORATIVE APPLICANTS.

       ``(a) Establishment and Designation.--A collaborative 
     applicant shall be established for a geographic area by the 
     relevant parties in that geographic area, or designated for a 
     geographic area by the Secretary in accordance with 
     subsection (d), to lead a collaborative planning process to 
     design and evaluate programs, policies, and practices to 
     prevent and end homelessness.
       ``(b) Membership of Established Collaborative Applicant.--A 
     collaborative applicant established under subsection (a) 
     shall be composed of persons from a particular geographic 
     area who are--
       ``(1) persons who are experiencing or have experienced 
     homelessness (with not fewer than 2 persons being individuals 
     who are experiencing or have experienced homelessness);
       ``(2) persons who act as advocates for the diverse 
     subpopulations of persons experiencing homelessness;
       ``(3) persons or representatives of organizations who 
     provide assistance to the variety of individuals and families 
     experiencing homelessness; and
       ``(4) relatives of individuals experiencing homelessness;
       ``(5) government agency officials, particularly those 
     officials responsible for administering funding under 
     programs targeted for persons experiencing homelessness, and 
     other programs for which persons experiencing homelessness 
     are eligible, including mainstream programs identified by the 
     Government Accountability Office in the 2 reports described 
     in section 102(a)(5)(B);
       ``(6) 1 or more local educational agency liaisons 
     designated under section 722(g)(1)(J)(ii), or their 
     designees;
       ``(7) members of the business community;
       ``(8) members of neighborhood advocacy organizations; and
       ``(9) members of philanthropic organizations that 
     contribute to preventing and ending homelessness in the 
     geographic area of the collaborative applicant.
       ``(c) Rotation of Membership of Established or Designated 
     Collaborative Applicant.--The parties establishing or 
     designating a collaborative applicant under subsection (a) 
     shall ensure, to the extent practicable, that the 
     collaborative applicant rotates its membership to ensure that 
     representatives of all agencies, businesses, and 
     organizations who are described in paragraphs (1) through (9) 
     of subsection (b) and invested in developing and implementing 
     strategies to prevent and end homelessness are able to 
     participate as decisionmaking members of the collaborative 
     applicant.
       ``(d) Existing Planning Bodies.--The Secretary may 
     designate an entity to be a collaborative applicant if such 
     entity--
       ``(1) prior to the date of enactment of the Community 
     Partnership to End Homelessness Act of 2005, engaged in 
     coordinated, comprehensive local homeless housing and 
     services planning and applied for Federal funding to provide 
     homeless assistance; and
       ``(2) ensures that its membership includes persons 
     described in paragraphs (1) through (9) of subsection (b).
       ``(e) Tax Exempt Organizations.--An entity may be 
     established or designated to serve as a collaborative 
     applicant under this section without being a legal entity. If 
     a collaborative applicant is a legal entity, the 
     collaborative applicant may only receive funds directly from 
     the Secretary under this title, and may only apply for funds 
     to conduct the activities described in section 423(a)(7).
       ``(f) Remedial Action.--If the Secretary finds that a 
     collaborative applicant for a geographic area does not meet 
     the requirements of this section, the Secretary may take 
     remedial action to ensure fair distribution of grant amounts 
     under subtitle C to eligible entities within that area. Such 
     measures may include designating another body as a 
     collaborative applicant, or permitting other eligible 
     entities to apply directly for grants.
       ``(g) Construction.--Nothing in this section shall be 
     construed to displace conflict of interest or government fair 
     practices laws, or their equivalent, that govern applicants 
     for grant amounts under subtitles B and C.
       ``(h) Duties.--A collaborative applicant shall--
       ``(1)(A) design a collaborative process, established 
     jointly and complied with by its members, for evaluating, 
     reviewing, prioritizing, awarding, and monitoring projects 
     and applications submitted by project sponsors under subtitle 
     C, and for evaluating the outcomes of projects for which 
     funds are awarded under subtitle B, in such a manner as to 
     ensure that the entities involved further the goal of 
     preventing and ending homelessness, and optimizing self-
     sufficiency among individuals and families experiencing 
     homelessness, in the geographic area involved;
       ``(B)(i)(I) review relevant policies and practices (in 
     place and planned) of public and private entities in the 
     geographic area served by the collaborative applicant to 
     determine if the policies and practices further or impede the 
     goal described in subparagraph (A);
       ``(II) in conducting the review, give priority to the 
     review of--
       ``(aa) the discharge planning and service termination 
     policies and practices of publicly funded facilities or 
     institutions (such as health care or treatment facilities or 
     institutions, foster care or youth facilities, or juvenile or 
     adult correctional institutions), and entities carrying out 
     publicly funded programs and systems of care (such as health 
     care or treatment programs, the programs of block grants to 
     States for temporary assistance for needy families 
     established under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.), child welfare or youth programs, 
     or juvenile or adult correctional programs), to ensure that 
     such a discharge or termination does not result in immediate 
     homelessness for the persons involved;
       ``(bb) the access and utilization policies and practices of 
     the entities carrying out mainstream programs identified by 
     the Government Accountability Office in the 2 reports 
     described in section 102(a)(5)(B), to ensure that persons 
     experiencing homelessness are able to access and utilize the 
     programs;
       ``(cc) local policies and practices relating to zoning and 
     enforcement of local statutes, to ensure that the policies 
     and practices allow reasonable inclusion and distribution in 
     the geographic area of special needs populations and families 
     with children and the facilities that serve the populations 
     and families;
       ``(dd) policies and practices relating to the school 
     selection and enrollment of homeless children and youths (as 
     defined in section 725) to ensure that the homeless children 
     and youths, and their parents, are able to exercise their 
     educational rights under subtitle B of title VII; and
       ``(ee) local policies and practices relating to the 
     placement of families with homeless children and youths (as 
     so defined) in emergency or transitional shelters, to ensure 
     that the children and youths are placed as close as possible 
     to their school of origin in order to facilitate continuity 
     of, and prevent disruption of, educational services; and
       ``(III) in conducting the review, determine the 
     modifications and corrective actions that need to be taken, 
     and by whom, to ensure that the relevant policies and 
     practices do not stimulate, or prolong, homelessness in the 
     geographic area;
       ``(ii) inform the appropriate entities of the 
     determinations described in clause (i); and
       ``(iii) at least once every 3 years, prepare for inclusion 
     in any application reviewed by the collaborative applicant, 
     and submitted to the Secretary under section 422, the 
     determinations described in clause (i), in the form of an 
     exhibit entitled `Assessment of Relevant Policies and 
     Practices, and Needed Corrective Actions to End and Prevent 
     Homelessness'; and
       ``(C) if the collaborative applicant designs and carries 
     out the projects, design and carry out the projects in such a 
     manner as to further the goal described in subparagraph (A);
       ``(2)(A) require, consistent with the Government 
     Performance and Results Act of 1993 and amendments made by 
     that Act, that recipients and project sponsors who are funded 
     by grants received under subtitle C implement and maintain an 
     outcome-based evaluation of their projects that measures 
     effective and timely delivery of housing or services and 
     whether provision of such housing or services results in 
     preventing or ending homelessness for the persons that such 
     recipients and project sponsors serve; and
       ``(B) request that States and local governments who 
     distribute funds under subtitle B submit information and 
     comments on the administration of activities under subtitle 
     B, to enable the collaborative applicant to plan and design a 
     full continuum of care for persons experiencing homelessness;
       ``(3) require, consistent with the Government Performance 
     and Results Act of 1993 and amendments made by that Act, 
     outcome-based evaluation of the homeless assistance planning 
     process of the collaborative applicant to measure the 
     performance of the collaborative applicant in preventing or 
     ending the homelessness of persons in the geographic area of 
     the collaborative applicant;
       ``(4) participate in the Consolidated Plan for the 
     geographic area served by the collaborative applicant; and
       ``(5)(A) require each project sponsor who is funded by a 
     grant received under subtitle C to establish such fiscal 
     control and fund accounting procedures as may be necessary to 
     assure the proper disbursal of, and accounting for, Federal 
     funds awarded to the project sponsor under subtitle C in 
     order to ensure that all financial transactions carried out 
     under subtitle C are conducted, and records maintained, in 
     accordance with generally accepted accounting principles; and
       ``(B) arrange for an annual survey, audit, or evaluation of 
     the financial records of each project carried out by a 
     project sponsor funded by a grant received under subtitle C.
       ``(i) Conflict of Interest.--No member of a collaborative 
     applicant may participate in decisions of the collaborative 
     applicant concerning the award of a grant, or provision of 
     other financial benefits, to such member or the organization 
     that such member represents.
       ``(j) Homeless Management Information System.--
       ``(1) In general.--In accordance with standards established 
     by the Secretary, each collaborative applicant shall ensure 
     consistent participation by project sponsors in a

[[Page S10753]]

     community-wide homeless management information system. The 
     collaborative applicant shall ensure the participation for 
     purposes of collecting unduplicated counts of individuals and 
     families experiencing homelessness, analyzing patterns of use 
     of assistance provided under subtitles B and C for the 
     geographic area involved, implementing an effective 
     information and referral system, and providing information 
     for the needs analyses and funding priorities of 
     collaborative applicants.
       ``(2) Funds.--A collaborative applicant may apply for funds 
     under this title to establish, continue, carry out, or ensure 
     consistent participation by project sponsors in a homeless 
     management information system, if the applicant is a legal 
     entity.'';
       (4) by inserting after section 403 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 404. TECHNICAL ASSISTANCE.

       ``(a) Technical Assistance for Project Sponsors.--The 
     Secretary shall make effective technical assistance available 
     to private nonprofit organizations and other nongovernmental 
     entities, States, metropolitan cities, urban counties, and 
     counties that are not urban counties that are potential 
     project sponsors, in order to implement effective planning 
     processes for preventing and ending homelessness, to optimize 
     self-sufficiency among individuals experiencing homelessness 
     and to improve their capacity to become project sponsors.
       ``(b) Technical Assistance for Collaborative Applicants.--
     The Secretary shall make effective technical assistance 
     available to collaborative applicants to improve their 
     ability to carry out the provisions of this title, and to 
     design and execute outcome-effective strategies for 
     preventing and ending homelessness in their geographic areas 
     consistent with the provisions of this title.
       ``(c) Reservation.--The Secretary may reserve not more than 
     1 percent of the funds made available for any fiscal year for 
     carrying out subtitles B and C, to make available technical 
     assistance under subsections (a) and (b).

     ``SEC. 405. PERFORMANCE REPORTS AND MONITORING.

       ``(a) In General.--A collaborative applicant shall submit 
     to the Secretary an annual performance report regarding the 
     activities carried out with grant amounts received under 
     subtitles B and C in the geographic area served by the 
     collaborative applicant, at such time and in such manner as 
     the Secretary determines to be reasonable.
       ``(b) Content.--The performance report described in 
     subsection (a) shall--
       ``(1) describe the number of persons provided homelessness 
     prevention assistance (including the number of such persons 
     who were discharged or whose services were terminated as 
     described in section 422(c)(1)(B)(ii)(I)(bb)), and the number 
     of individuals and families experiencing homelessness who 
     were provided shelter, housing, or supportive services, with 
     the grant amounts awarded in the fiscal year prior to the 
     fiscal year in which the report was submitted, including 
     measurements of the number of persons experiencing 
     homelessness who--
       ``(A) entered permanent housing, and the length of time 
     such persons resided in that housing, if known;
       ``(B) entered transitional housing, and the length of time 
     such persons resided in that housing, if known;
       ``(C) obtained or retained jobs;
       ``(D) increased their income, including increasing income 
     through the receipt of government benefits;
       ``(E) received mental health or substance abuse treatment 
     in an institutional setting and now receive that assistance 
     in a less restrictive, community-based setting;
       ``(F) received additional education, vocational or job 
     training, or employment assistance services;
       ``(G) received additional physical, mental, or emotional 
     health care;
       ``(H) were children under the age of 18 during the year at 
     issue, including the number of--
       ``(i) children who were not younger than 2 and not older 
     than 4, or were infants or toddlers with disabilities (as 
     defined in section 632 of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1432));
       ``(ii) children described in clause (i) who were enrolled 
     in preschool or were receiving services under part C of such 
     Act (20 U.S.C. 1431 et seq.);
       ``(iii) children who were not younger than 5 and not older 
     than 17;
       ``(iv) children described in clause (iii) who are enrolled 
     in elementary school or secondary school (as such terms are 
     defined in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801)); and
       ``(v) children under the age of 18 who received child care, 
     health care, mental health care, or supplemental educational 
     services; and
       ``(I) were reunited with their families;
       ``(2) estimate the number of persons experiencing 
     homelessness, including children under the age of 18, in the 
     geographic area served by the collaborative applicant who are 
     eligible for, but did not receive, services, housing, or 
     other assistance through the programs funded under subtitles 
     B and C in the prior fiscal year;
       ``(3) indicate the accomplishments achieved within the 
     geographic area that involved the use of the grant amounts 
     awarded in the prior fiscal year, regarding efforts to 
     coordinate services and programs within the geographic area;
       ``(4) indicate the accomplishments achieved within the 
     geographic area to--
       ``(A) increase access by persons experiencing homelessness 
     to programs that are not targeted for persons experiencing 
     homelessness (but for which persons experiencing homelessness 
     are eligible), including mainstream programs identified by 
     the Government Accountability Office in the 2 reports 
     described in section 102(a)(5)(B); and
       ``(B) prevent the homelessness of persons discharged from 
     publicly funded institutions or systems of care (such as 
     health care facilities, child welfare or other youth 
     facilities or systems of care, institutions or systems of 
     care relating to the program of block grants to States for 
     temporary assistance for needy families established under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.), and juvenile or adult correctional programs and 
     institutions);
       ``(5) describe how the collaborative applicant and other 
     involved public and private entities within the geographic 
     area will incorporate their experiences in the prior fiscal 
     year into the programs and process that the collaborative 
     applicant and entities will implement during the next fiscal 
     year, including describing specific strategies to improve 
     their performance outcomes;
       ``(6) assess the consistency and coordination between the 
     programs funded under subtitles B and C in the prior fiscal 
     year and the Consolidated Plan;
       ``(7) include updates to the exhibits described in section 
     402(h)(1)(B)(iii) that were included in applications--
       ``(A) submitted under section 422 by collaborative 
     applicants; and
       ``(B) approved by the Secretary;
       ``(8) for each project sponsor funded by the collaborative 
     applicant through a grant under subtitle C--
       ``(A) include a performance evaluation (which may include 
     information from the reports described in subsection (a) and 
     section 422(c)(1)(B)(vii)) of each project carried out by the 
     project sponsor, based on the outcome-based evaluation 
     measures described in section 402(h)(2)(A), the measurements 
     described in section 423(a)(7), and the evaluation plan for 
     the project described in section 426(b)(8) and resulting from 
     the monitoring described in sections 402(h)(1)(A) and 
     426(c)(3); and
       ``(B) include a report, resulting from a survey, audit or 
     evaluation conducted under section 402(h)(5)(B), detailing 
     whether the project sponsor has carried out the recordkeeping 
     and reporting requirements of section 402(h)(5); and
       ``(9) provide such other information as the Secretary finds 
     relevant to assessing performance, including performance on 
     success measures that are risk-adjusted to factors related to 
     the circumstances of the population served.
       ``(c) Waiver.--The Secretary may grant a waiver to any 
     collaborative applicant that is unable to provide information 
     required by subsection (b). Such collaborative applicant 
     shall submit a plan to provide such information within a 
     reasonable period of time.
       ``(d) Monitoring by the Secretary.--
       ``(1) Collaborative applicants.--Each year, the Secretary 
     shall--
       ``(A) ensure that each collaborative applicant has complied 
     with the requirements of subsection (b)(8) and section 
     402(h)(5);
       ``(B) require each collaborative applicant receiving funds 
     under subtitle C to establish such fiscal control and fund 
     accounting procedures as may be necessary to assure the 
     proper disbursal of, and accounting for, Federal funds 
     awarded to the collaborative applicant under subtitle C in 
     order to ensure that all financial transactions carried out 
     under subtitle C are conducted, and records maintained, in 
     accordance with generally accepted accounting principles; and
       ``(C) for a selected sample of collaborative applicants 
     receiving funds under subtitle C--
       ``(i) ensure that each selected collaborative applicant has 
     satisfactorily carried out the recordkeeping and reporting 
     requirements of subsections (a) and (b), section 426(c)(3), 
     and, if applicable, section 426(c)(6); and
       ``(ii) survey, audit, or evaluate the financial records of 
     each selected collaborative applicant receiving funds under 
     subtitle C to carry out section 423(a)(7)(A), using Federal 
     auditors.
       ``(2) Project sponsors.--Each year, the Secretary shall 
     select a sample of project sponsors and shall conduct a 
     performance evaluation of each project of each selected 
     project sponsor funded under subtitle C, using the outcome-
     based evaluation measures developed by the appropriate 
     collaborative applicant in accordance with section 
     402(h)(2)(A) and including the measurements described in 
     section 423(a)(7).
       ``(e) Action by Secretary.--Based on the information 
     available to the Secretary, including information obtained 
     pursuant to subsections (b) and (d), the Secretary may 
     adjust, reduce, or withdraw amounts made available (or that 
     would otherwise be made available) to collaborative 
     applicants, or take other action as appropriate (including 
     designating another body as a collaborative applicant, or 
     permitting other collaborative entities to apply directly for 
     grants under subtitle C), except that amounts already 
     properly expended on eligible activities under this title may 
     not be recaptured by the Secretary.''; and

[[Page S10754]]

       (5) by inserting after section 406 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     title II and this title $1,600,000,000 for fiscal year 2006 
     and such sums as may be necessary for fiscal years 2007, 
     2008, 2009, and 2010.''.

     SEC. 5. EMERGENCY SHELTER GRANTS PROGRAM.

       Subtitle B of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11371 et seq.) is amended--
       (1) by striking section 412 (42 U.S.C. 11372) and inserting 
     the following:

     ``SEC. 412. GRANT ASSISTANCE.

       ``The Secretary shall make grants to States and local 
     governments (and to private nonprofit organizations providing 
     assistance to persons experiencing homelessness, in the case 
     of grants made with reallocated amounts) for the purpose of 
     carrying out activities described in section 414.

     ``SEC. 412A. AMOUNT AND ALLOCATION OF ASSISTANCE.

       ``(a) In General.--Of the amount made available to carry 
     out this subtitle and subtitle C for a fiscal year, the 
     Secretary shall allocate nationally not more than 15 percent 
     of such amount for activities described in section 414.
       ``(b) Allocation.--An entity that receives a grant under 
     section 412, and serves an area that includes 1 or more 
     geographic areas (or portions of such areas) served by 
     collaborative applicants that submit applications under 
     subtitle C, shall allocate the funds made available through 
     the grant to carry out activities described in section 414, 
     in consultation with the collaborative applicants.'';
       (2) in section 413(b) (42 U.S.C. 11373(b)), by striking 
     ``amounts appropriated'' and all that follows through ``for 
     any'' and inserting ``amounts appropriated under section 407 
     and made available to carry out this subtitle for any'';
       (3) by striking section 414 (42 U.S.C. 11374) and inserting 
     the following:

     ``SEC. 414. ELIGIBLE ACTIVITIES.

       ``(a) In General.--Assistance provided under section 412 
     may be used for the following activities:
       ``(1) The renovation, major rehabilitation, or conversion 
     of buildings to be used as emergency shelters.
       ``(2) The provision of essential services, including 
     services concerned with employment, health, or education, 
     family support services for homeless youth, alcohol or drug 
     abuse prevention or treatment, or mental health treatment, if 
     such essential services have not been provided by the local 
     government during any part of the immediately preceding 12-
     month period, or the use of assistance under this subtitle 
     would complement the provision of those essential services.
       ``(3) Maintenance, operation insurance, provision of 
     utilities, and provision of furnishings.
       ``(4) Efforts to prevent homelessness, such as the 
     provision of financial assistance to families who have 
     received eviction notices or notices of termination of 
     utility services, if--
       ``(A) the inability of such a family to make the required 
     payments is due to a sudden reduction in income;
       ``(B) the assistance is necessary to avoid the eviction or 
     termination of services;
       ``(C) there is a reasonable prospect that the family will 
     be able to resume the payments within a reasonable period of 
     time; and
       ``(D) funds appropriated for the assistance will not 
     supplant funding for homelessness prevention activities from 
     other sources (other funds made available under this Act).
       ``(b) Limitation.--Not more than 30 percent of the 
     aggregate amount of all assistance to a State or local 
     government under this subtitle may be used for activities 
     under subsection (a)(4).''; and
       (4) by repealing sections 417 and 418 (42 U.S.C. 11377, 
     11378).

     SEC. 6. HOMELESS ASSISTANCE PROGRAM.

       Subtitle C of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11381 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

              ``Subtitle C--Homeless Assistance Program'';

       (2) by striking sections 421 through 423 (42 U.S.C. 11381 
     et seq.) and inserting the following:

     ``SEC. 421. PURPOSES.

       ``The purposes of this subtitle are--
       ``(1) to promote the implementation of activities that can 
     prevent vulnerable individuals and families from becoming 
     homeless;
       ``(2) to promote the development of transitional and 
     permanent housing, including low-demand housing;
       ``(3) to promote access to and effective utilization of 
     mainstream programs identified by the Government 
     Accountability Office in the 2 reports described in section 
     102(a)(5)(B) and programs funded with State or local 
     resources; and
       ``(4) to optimize self-sufficiency among individuals 
     experiencing homelessness.

     ``SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

       ``(a) Projects.--The Secretary shall award grants to 
     collaborative applicants to carry out homeless assistance and 
     prevention projects, either directly or by awarding funds to 
     project sponsors to carry out the projects.
       ``(b) Notification of Funding Availability.--The Secretary 
     shall release a Notification of Funding Availability for 
     grants awarded under this subtitle for a fiscal year not 
     later than 3 months after the date of enactment of the 
     appropriate Act making appropriations for the Department of 
     Housing and Urban Development for the fiscal year.
       ``(c) Applications.--
       ``(1) Submission to the secretary.--To receive a grant 
     under subsection (a), a collaborative applicant shall submit 
     an application to the Secretary at such time and in such 
     manner as the Secretary may require, and containing--
       ``(A) the information described in subsections (a) and (c) 
     of section 426; and
       ``(B) other information that shall--
       ``(i) describe the establishment (or designation) and 
     function of the collaborative applicant, including--

       ``(I) the nomination and selection process, including the 
     names and affiliations of all members of the collaborative 
     applicant; or
       ``(II) all meetings held by the collaborative applicant in 
     preparing the application, including identification of those 
     meetings that were public; and
       ``(III) all meetings between representatives of the 
     collaborative applicant, and persons responsible for 
     administering the Consolidated Plan;

       ``(ii) outline the range of housing and service programs 
     available to persons experiencing homelessness or imminently 
     at risk of experiencing homelessness and describe the unmet 
     needs that remain in the geographic area for which the 
     collaborative applicant seeks funding regarding--

       ``(I) prevention activities, including providing assistance 
     in--

       ``(aa) making mortgage, rent, or utility payments; or
       ``(bb) accessing permanent housing and transitional housing 
     for individuals (and families that include the individuals) 
     who are being discharged from a publicly funded facility, 
     program, or system of care, or whose services (from such a 
     facility, program, or system of care) are being terminated;

       ``(II) outreach activities to assess the needs and 
     conditions of persons experiencing homelessness, including 
     significant subpopulations of such persons, including 
     individuals with disabilities, veterans, victims of domestic 
     violence, homeless children and youths (as defined in section 
     725), and chronically homeless individuals and families;
       ``(III) emergency shelters, including the supportive and 
     referral services the shelters provide;
       ``(IV) transitional housing with appropriate supportive 
     services to help persons experiencing homelessness who are 
     not yet able or prepared to make the transition to permanent 
     housing and independent living;
       ``(V) permanent housing to help meet the long-term needs of 
     individuals and families experiencing homelessness; and
       ``(VI) needed supportive services, including services for 
     children;

       ``(iii) prioritize the projects for which the collaborative 
     applicant seeks funding according to the unmet needs in the 
     fiscal year for which the applicant submits the application 
     as described in clause (ii);
       ``(iv) identify funds from private and public sources, 
     other than funds received under subtitles B and C, that the 
     State, units of general local government, recipients, project 
     sponsors, and others will use for homelessness prevention, 
     outreach, emergency shelter, supportive services, 
     transitional housing, and permanent housing, that will be 
     integrated with the assistance provided under subtitles B and 
     C;
       ``(v) identify funds provided by the State and units of 
     general local government under programs targeted for persons 
     experiencing homelessness, and other programs for which 
     persons experiencing homelessness are eligible, including 
     mainstream programs identified by the Government 
     Accountability Office in the 2 reports described in section 
     102(a)(5)(B);
       ``(vi) explain--

       ``(I) how the collaborative applicant will meet the housing 
     and service needs of individuals and families experiencing 
     homelessness in the applicant's community; and
       ``(II) how the collaborative applicant will integrate the 
     activities described in the application with the strategy of 
     the State, units of general local government, and private 
     entities in the geographic area over the next 5 years to 
     prevent and end homelessness, including, as part of that 
     strategy, a work plan for the applicable fiscal years;

       ``(vii) report on the outcome-based performance of the 
     homeless programs within the geographic area served by the 
     collaborative applicant that were funded under this title in 
     the fiscal year prior to the fiscal year in which the 
     application is submitted;
       ``(viii) include any relevant required agreements under 
     subtitle C;
       ``(ix) contain a certification of consistency with the 
     Consolidated Plan pursuant to section 403;
       ``(x) include an exhibit described in section 
     402(h)(1)(B)(iii) and prepared by the collaborative applicant 
     in accordance with that section; and
       ``(xi) contain a certification that project sponsors for 
     all projects for which the collaborative applicant seeks 
     funding through the grant will establish policies and 
     practices that are consistent with, and do not restrict the 
     exercise of rights provided by, subtitle B of title VII, and 
     other laws relating to the provision of educational and 
     related services to individuals experiencing homelessness.

[[Page S10755]]

       ``(2) Consideration.--In outlining the programs and 
     describing the needs referred to in paragraph (1)(A)(ii), the 
     collaborative applicant shall take into account the findings 
     and recommendations of the most recently completed annual 
     assessments, conducted pursuant to section 2034 of title 38, 
     United States Code, of the Department of Veterans Affairs 
     medical centers or regional benefits offices whose service 
     areas include the geographic area described in paragraph 
     (1)(A)(ii).
       ``(3) Announcement of awards.--The Secretary shall 
     announce, within 4 months after the last date for the 
     submission of applications described in this subsection for a 
     fiscal year, the grants conditionally awarded under 
     subsection (a) for that fiscal year.
       ``(4) Obligation, distribution, and utilization of funds.--
       ``(A) Requirements for obligation.--
       ``(i) In general.--Not later than 9 months after the 
     announcement referred to in paragraph (3), each recipient of 
     a grant announced under paragraph (3) shall, with respect to 
     a project to be funded through such grant, meet, or cause the 
     project sponsor to meet, all requirements for the obligation 
     of funds for such project, including site control, matching 
     funds, and environmental review requirements, except as 
     provided in clause (ii).
       ``(ii) Acquisition, rehabilitation, or construction.--Not 
     later than 15 months after the announcement referred to in 
     paragraph (3), each recipient or project sponsor seeking the 
     obligation of funds for acquisition of housing, 
     rehabilitation of housing, or construction of new housing for 
     a grant announced under paragraph (3) shall meet all 
     requirements for the obligation of those funds, including 
     site control, matching funds, and environmental review 
     requirements.
       ``(iii) Extensions.--At the discretion of the Secretary, 
     and in compelling circumstances, the Secretary may extend the 
     date by which a recipient shall meet or cause a project 
     sponsor to meet the requirements described in clause (i) if 
     the Secretary determines that compliance with the 
     requirements was delayed due to factors beyond the reasonable 
     control of the recipient or project sponsor. Such factors may 
     include difficulties in obtaining site control for a proposed 
     project, completing the process of obtaining secure financing 
     for the project, or completing the technical submission 
     requirements for the project.
       ``(B) Obligation.--Not later than 45 days after a recipient 
     meets or causes a project sponsor to meet the requirements 
     described in subparagraph (A), the Secretary shall obligate 
     the funds for the grant involved.
       ``(C) Distribution.--A recipient that receives funds 
     through such a grant--
       ``(i) shall distribute the funds to project sponsors (in 
     advance of expenditures by the project sponsors); and
       ``(ii) shall distribute the appropriate portion of the 
     funds to a project sponsor not later than 45 days after 
     receiving a request for such distribution from the project 
     sponsor.
       ``(D) Expenditure of funds.--The Secretary may establish a 
     date by which funds made available through a grant announced 
     under paragraph (3) for a homeless assistance and prevention 
     project shall be entirely expended by the recipient or 
     project sponsors involved. The Secretary shall recapture the 
     funds not expended by such date. The Secretary shall 
     reallocate the funds for another homeless assistance and 
     prevention project that meets the requirements of this 
     subtitle to be carried out, if possible and appropriate, in 
     the same geographic area as the area served through the 
     original grant.
       ``(d) Notification of Pro Rata Estimated Need Amounts.--
       ``(1) Notice.--The Secretary shall inform each 
     collaborative applicant, at a time concurrent with the 
     release of the Notice of Funding Availability for the grants, 
     of the pro rata estimated need amount under this subtitle for 
     the geographic area represented by the collaborative 
     applicant.
       ``(2) Amount.--
       ``(A) Basis.--Such estimated need amount shall be based on 
     a percentage of the total funds available, or estimated to be 
     available, to carry out this subtitle for any fiscal year 
     that is equal to the percentage of the total amount available 
     for section 106 of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5306) for the prior fiscal year that--
       ``(i) was allocated to all metropolitan cities and urban 
     counties within the geographic area represented by the 
     collaborative applicant; or
       ``(ii) would have been distributed to all counties within 
     such geographic area that are not urban counties, if the 30 
     percent portion of the allocation to the State involved (as 
     described in subsection (d)(1) of that section 106) for that 
     year had been distributed among the counties that are not 
     urban counties in the State in accordance with the formula 
     specified in that subsection (with references in that 
     subsection to nonentitlement areas considered to be 
     references to those counties).
       ``(B) Rule.--In computing the estimated need amount, the 
     Secretary shall adjust the estimated need amount determined 
     pursuant to subparagraph (A) to ensure that--
       ``(i) 75 percent of the total funds available, or estimated 
     to be available, to carry out this subtitle for any fiscal 
     year are allocated to the metropolitan cities and urban 
     counties that received a direct allocation of funds under 
     section 413 for the prior fiscal year; and
       ``(ii) 25 percent of the total funds available, or 
     estimated to be available, to carry out this subtitle for any 
     fiscal year are allocated--

       ``(I) to the metropolitan cities and urban counties that 
     did not receive a direct allocation of funds under section 
     413 for the prior fiscal year; and
       ``(II) to counties that are not urban counties.

       ``(C) Combinations or consortia.--For a collaborative 
     applicant that represents a combination or consortium of 
     cities or counties, the estimated need amount shall be the 
     sum of the estimated need amounts for the cities or counties 
     represented by the collaborative applicant.
       ``(D) Authority of secretary.--The Secretary may increase 
     the estimated need amount for a geographic area if necessary 
     to provide 1 year of renewal funding for all expiring 
     contracts entered into under this subtitle for the geographic 
     area.
       ``(e) Appeals.--
       ``(1) In general.--Not later than 3 months after the date 
     of enactment of the Community Partnership to End Homelessness 
     Act of 2005, the Secretary shall establish a timely appeal 
     procedure for grant amounts awarded or denied under this 
     subtitle pursuant to an application for funding.
       ``(2) Process.--The Secretary shall ensure that the 
     procedure permits appeals submitted by collaborative 
     applicants, entities carrying out homeless housing and 
     services projects (including emergency shelters and 
     homelessness prevention programs), homeless planning bodies 
     not designated by the Secretary as collaborative applicants.
       ``(f) Renewal Funding for Unsuccessful Applicants.--The 
     Secretary may renew funding for a specific project previously 
     funded under this subtitle that the Secretary determines is 
     worthy, and was included as part of a total application that 
     met the criteria of subsection (c), even if the application 
     was not selected to receive grant assistance. The Secretary 
     may renew the funding for a period of not more than 1 year, 
     and under such conditions as the Secretary determines to be 
     appropriate.

     ``SEC. 423. ELIGIBLE ACTIVITIES.

       ``(a) In General.--The Secretary may award grants to 
     qualified collaborative applicants under section 422 to carry 
     out homeless assistance and prevention projects that consist 
     of 1 or more of the following eligible activities:
       ``(1) Construction of new housing units to provide 
     transitional or permanent housing.
       ``(2) Acquisition or rehabilitation of a structure to 
     provide supportive services or to provide transitional or 
     permanent housing, other than emergency shelter.
       ``(3) Leasing of property, or portions of property, not 
     owned by the recipient or project sponsor involved, for use 
     in providing transitional or permanent housing, or providing 
     supportive services.
       ``(4) Provision of rental assistance to provide 
     transitional or permanent housing to eligible persons. The 
     rental assistance may include tenant-based or project-based 
     rental assistance.
       ``(5) Payment of operating costs for housing units assisted 
     under this subtitle.
       ``(6)(A) Through the end of the final determination year 
     (as described in subparagraph (C)(iii)), the supportive 
     services described in section 425(c), for both new projects 
     and projects receiving renewal funding.
       ``(B) After that final determination year, for both new 
     projects and projects receiving renewal funding, services 
     providing job training, case management, outreach services, 
     life skills training, housing counseling services, and other 
     services determined by the Secretary (either at the 
     Secretary's initiative or on the basis of adequate 
     justification by an applicant) to be directly relevant to 
     allowing persons experiencing homelessness to access and 
     retain housing.
       ``(C)(i) Not later than 30 days after the end of the fiscal 
     year in which the date of enactment of the Community 
     Partnership to End Homelessness Act of 2005 occurs (referred 
     to in this paragraph as the `initial year'), the Government 
     Accountability Office, after consultation with the 
     congressional committees with jurisdiction over the services 
     referred to in this pararaph, shall determine--
       ``(I) the amount of Federal funds (other than funds made 
     available under this subtitle) that were made available to 
     fund the supportive services described in section 425(c), 
     other than the services described in subparagraph (B) 
     (referred to in this paragraph as the `outside supportive 
     services amount') for that initial year; and
       ``(II) the amount of Federal funds made available under 
     this subtitle to fund the supportive services described in 
     section 425(c), other than the services described in 
     subparagraph (B) (referred to in this paragraph as the 
     `subtitle B supportive services amount') for that initial 
     year.
       ``(ii) Not later than 30 days after the end of the third 
     full fiscal year after that date of enactment and of each 
     subsequent fiscal year (referred to in this paragraph as the 
     `determination year') until the final determination year 
     described in clause (iii), the Government Accountability 
     Office, after consultation with the committees described in 
     clause (i), shall--
       ``(I) determine the outside supportive services amount for 
     that determination year;
       ``(II) calculate the increase in the outside supportive 
     services amount, by subtracting

[[Page S10756]]

     the outside supportive services amount for the initial year 
     from the outside supportive services amount for that 
     determination year;
       ``(III) make--
       ``(aa) a positive determination that the increase is 
     greater than or equal to the subtitle B supportive services 
     amount for the initial year; or
       ``(bb) a negative determination that that increase is less 
     than that amount; and
       ``(IV) submit a report regarding that determination year, 
     and containing the positive or negative determination, to the 
     Secretary.
       ``(iii) On receipt of such a report regarding a 
     determination year that contains a positive determination, 
     the Secretary may publish a notice in the Federal Register, 
     containing a proposed order that subparagraph (B) shall apply 
     for subsequent fiscal years, and seeking public comment for a 
     period of not less than 60 days. At the end of the comment 
     period, the Secretary may issue a final order that 
     subparagraph (B) shall apply for subsequent fiscal years. If 
     the Secretary issues that final order, the determination year 
     shall be considered to be the final determination year for 
     purposes of this subparagraph.
       ``(iv) If the Secretary does not issue a final order under 
     clause (iii), subparagraph (A) shall apply for the fiscal 
     year following the determination year.
       ``(7)(A) In the case of a collaborative applicant that is a 
     legal entity, payment of administrative costs related to 
     planning, administering grand awards for, monitoring, and 
     evaluating projects, and ensuring compliance with homeless 
     management information system requirements described in 
     section 402(j)(2), for which the collaborative applicant may 
     use not more than 6 percent of the total funds made available 
     through the grant. A project sponsor receiving funds from the 
     collaborative applicant may use not more than an additional 5 
     percent of the total funds made available through the grant 
     for such administrative costs.
       ``(B) For purposes of this paragraph, monitoring and 
     evaluating shall include--
       ``(i) measuring the outcomes of the homeless assistance 
     planning process of a collaborative applicant for preventing 
     and ending homelessness;
       ``(ii) the effective and timely implementation of specific 
     projects funded under this subtitle, relative to projected 
     outcomes; and
       ``(iii) in the case of a housing project funded under this 
     subtitle, compliance with appropriate standards of housing 
     quality and habitability as determined by the Secretary.
       ``(8) Prevention activities (for which a collaborative 
     applicant may use not more than 5 percent of the funds made 
     available through the grant), including--
       ``(A) providing financial assistance to individuals or 
     families who have received eviction notices, foreclosure 
     notices, or notices of termination of utility services if, in 
     the case of such an individual or family--
       ``(i) the inability of the individual or family to make the 
     required payments is due to a sudden reduction in income;
       ``(ii) the assistance is necessary to avoid the eviction, 
     foreclosure, or termination of services; and
       ``(iii) there is a reasonable prospect that the individual 
     or family will be able to resume the payments within a 
     reasonable period of time;
       ``(B) carrying out relocation activities (including 
     providing security or utility deposits, rental assistance for 
     a final month at a location, assistance with moving costs, or 
     rental assistance for not more than 3 months) for moving into 
     transitional or permanent housing, individuals, and families 
     that include such individuals--
       ``(i) who lack housing;
       ``(ii) who are being discharged from a publicly funded 
     acute care or long-term care facility, program, or system of 
     care, or whose services (from such a facility, program, or 
     system of care) are being terminated; and
       ``(iii) who have plans, developed collaboratively by the 
     public entities involved and the individuals and families, 
     for securing or maintaining housing after any funding 
     provided under this subtitle is utilized; and
       ``(C) providing family support services that promote 
     reunification of--
       ``(i) youth experiencing homelessness, with their families; 
     and
       ``(ii) children or youth involved with the child welfare or 
     juvenile justice systems, with their parents or guardians.
       ``(b) Eligibility for Funds for Prevention Activities.--To 
     be eligible to receive grant funds under section 422 to carry 
     out the prevention activities described in subsection (a)(8), 
     an applicant shall submit an application to the Secretary 
     under section 422 that shall include a certification in 
     which--
       ``(1) the relevant public entities in the geographic area 
     involved certify compliance with subsection (c); and
       ``(2) the publicly funded institutions, facilities, and 
     systems of care in the geographic area certify that the 
     institutions, facilities, and systems of care will take, and 
     fund directly, all reasonable measures to ensure that the 
     institutions, facilities, and systems of care do not 
     discharge individuals into homelessness.
       ``(c) Supplement, Not Supplant.--Funds appropriated under 
     section 407 and made available for prevention activities 
     described in subsection (a)(8) shall be used to supplement 
     and not supplant other Federal, State, and local public funds 
     used for homelessness prevention.
       ``(d) Use Restrictions.--
       ``(1) Acquisition, rehabilitation, and new construction.--A 
     project that consists of activities described in paragraph 
     (1) or (2) of subsection (a) shall be operated for the 
     purpose specified in the application submitted for the 
     project under section 422 for not less than 15 years.
       ``(2) Other activities.--A project that consists of 
     activities described in any of paragraphs (3) through (8) of 
     subsection (a) shall be operated for the purpose specified in 
     the application submitted for the project under section 422 
     for the duration of the grant period involved.
       ``(3) Conversion.--If the recipient or project sponsor 
     carrying out a project that provides transitional or 
     permanent housing submits a request to the collaborative 
     applicant involved to carry out instead a project for the 
     direct benefit of low-income persons, and the collaborative 
     applicant determines that the initial project is no longer 
     needed to provide transitional or permanent housing, the 
     collaborative applicant may recommend that the Secretary 
     approve the project described in the request and authorize 
     the recipient or project sponsor to carry out that project. 
     If the collaborative applicant is the recipient or project 
     sponsor, it shall submit such a request directly to the 
     Secretary who shall determine if the conversion of the 
     project is appropriate.
       ``(e) Incentives To Create New Permanent Housing Stock.--
       ``(1) Awards.--
       ``(A) In general.--In making grants to collaborative 
     applicants under section 422, the Secretary shall make awards 
     that provide the incentives described in paragraph (2) to 
     promote the creation of new permanent housing units through 
     the construction, or acquisition and rehabilitation, of 
     permanent housing units, that are owned by a project sponsor 
     or other independent entity who entered into a contract with 
     a recipient or project sponsor, for--
       ``(i) chronically homeless individuals and chronically 
     homeless families; and
       ``(ii) nondisabled homeless families.
       ``(B) Limitation.--In awarding funds under this subsection, 
     the Secretary shall not award more than 10 percent of the 
     funds for project sponsors or independent entities that 
     propose to serve nondisabled homeless families.
       ``(2) Assistance.--
       ``(A) Individuals with disabilities.--A collaborative 
     applicant that receives assistance under section 422 to 
     implement a project that involves the construction, or 
     acquisition and rehabilitation, of new permanent housing 
     units described in paragraph (1), for individuals and 
     families described in paragraph (1)(A)(i), shall also 
     receive, as part of the grant, incentives consisting of--
       ``(i) funds sufficient to provide not more than 10 years of 
     rental assistance, renewable in accordance with section 428;
       ``(ii) a bonus in an amount to be determined by the 
     Secretary to carry out activities described in this section; 
     and
       ``(iii) the technical assistance needed to ensure the 
     financial viability and programmatic effectiveness of the 
     project.
       ``(B) Nondisabled homeless families.--A collaborative 
     applicant that receives assistance under section 422 to 
     implement a project that involves the construction, or 
     acquisition and rehabilitation, of new permanent housing 
     units described in paragraph (1), for nondisabled homeless 
     families, shall also receive incentives consisting of--
       ``(i) a bonus in an amount to be determined by the 
     Secretary to carry out activities described in this section; 
     and
       ``(ii) the technical assistance needed to ensure the 
     financial viability and programmatic effectiveness of the 
     project.
       ``(3) Eligible applicants.--To be eligible to receive a 
     grant under this subtitle to carry out activities to create 
     new permanent housing stock for individuals and families 
     described in paragraph (1), an applicant shall be a 
     collaborative applicant as described in this subtitle, a 
     private nonprofit or for profit organization, a public-
     private partnership, a public housing agency, or an 
     instrumentality of a State or local government.
       ``(4) Location.--To the extent practicable, a collaborative 
     applicant that receives a grant under this subtitle to create 
     new permanent housing stock shall ensure that the housing is 
     located in a mixed-income environment.
       ``(5) Definition.--In this subsection, the term 
     `nondisabled homeless family' means a homeless family that 
     does not have an adult head of household with a disabling 
     condition, as defined in section 401(1)(B).
       ``(f) Repayment of Assistance and Prevention of Undue 
     Benefits.--
       ``(1) Repayment.--If a recipient (or a project sponsor 
     receiving funds from the recipient) receives assistance under 
     section 422 to carry out a project that consists of 
     activities described in paragraph (1) or (2) of subsection 
     (a) and the project ceases to provide transitional or 
     permanent housing--
       ``(A) earlier than 10 years after operation of the project 
     begins, the Secretary shall require the recipient (or the 
     project sponsor receiving funds from the recipient) to repay 
     100 percent of the assistance; or
       ``(B) not earlier than 10 years, but earlier than 15 years, 
     after operation of the project begins, the Secretary shall 
     require the recipient (or the project sponsor receiving funds 
     from the recipient) to repay 20 percent of the assistance for 
     each of the years in the 15-year period for which the project 
     fails to provide that housing.

[[Page S10757]]

       ``(2) Prevention of undue benefits.--Except as provided in 
     paragraph (3), if any property is used for a project that 
     receives assistance under subsection (a) and consists of 
     activities described in paragraph (1) or (2) of subsection 
     (a), and the sale or other disposition of the property occurs 
     before the expiration of the 15-year period beginning on the 
     date that operation of the project begins, the recipient (or 
     the project sponsor receiving funds from the recipient) who 
     received the assistance shall comply with such terms and 
     conditions as the Secretary may prescribe to prevent the 
     recipient (or a project sponsor receiving funds from the 
     recipient) from unduly benefitting from such sale or 
     disposition.
       ``(3) Exception.--A recipient (or a project sponsor 
     receiving funds from the recipient) shall not be required to 
     make the repayments, and comply with the terms and 
     conditions, required under paragraph (1) or (2) if--
       ``(A) the sale or disposition of the property used for the 
     project results in the use of the property for the direct 
     benefit of very low-income persons; or
       ``(B) all of the proceeds of the sale or disposition are 
     used to provide transitional or permanent housing meeting the 
     requirements of this subtitle.'';
       (3) in section 425 (42 U.S.C. 11385), by striking 
     subsection (c) and inserting the following:
       ``(c) Services.--Subject to section 423(a)(6), supportive 
     services may include such services as--
       ``(1) establishing and operating a child care services 
     program for families experiencing homelessness;
       ``(2) establishing and operating an employment assistance 
     program, including providing job training;
       ``(3) providing outpatient health services, food, and case 
     management;
       ``(4) providing assistance in obtaining permanent housing, 
     employment counseling, and nutritional counseling;
       ``(5) providing outreach services, life skills training, 
     and housing search and counseling services;
       ``(6) providing assistance in obtaining other Federal, 
     State, and local assistance available for residents of 
     supportive housing (including mental health benefits, 
     employment counseling, and medical assistance, but not 
     including major medical equipment);
       ``(7) providing legal services for purposes including 
     requesting reconsiderations and appeals of veterans and 
     public benefit claim denials and resolving outstanding 
     warrants that interfere with an individual's ability to 
     obtain and retain housing;
       ``(8) providing--
       ``(A) transportation services that facilitate an 
     individual's ability to obtain and maintain employment;
       ``(B) income assistance;
       ``(C) health care; and
       ``(D) other supportive services necessary to obtain and 
     maintain housing; and
       ``(9) providing other services determined by the Secretary 
     (either at the Secretary's initiative or on the basis of 
     adequate justification by an applicant) to be directly 
     relevant to allowing persons experiencing homelessness to 
     access and retain housing.'';
       (4) in section 426 (42 U.S.C. 11386)--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``Applications'' and all 
     that follows through ``shall'' and inserting ``Applications 
     for assistance under section 422 shall'';
       (ii) in paragraph (2)--

       (I) by striking subparagraph (B) and inserting the 
     following:

       ``(B) a description of the size and characteristics of the 
     population that would occupy housing units or receive 
     supportive services assisted under this subtitle;''; and

       (II) in subparagraph (E), by striking ``in the case of 
     projects assisted under this title that do not receive 
     assistance under such sections,''; and

       (iii) in paragraph (3), in the last sentence, by striking 
     ``recipient'' and inserting ``recipient (or a project sponsor 
     receiving funds from the recipient)'';
       (B) by striking subsections (b) and (c) and inserting:
       ``(b) Selection Criteria.--The Secretary shall award funds 
     to collaborative applicants, and other eligible applicants 
     that have been approved by the Secretary, by a national 
     competition based on criteria established by the Secretary, 
     which shall include--
       ``(1) the capacity of the applicant based on the past 
     performance and management of the applicant;
       ``(2) if applicable, previous performance regarding 
     homelessness prevention, housing, and services programs 
     funded in any fiscal year prior to the date of submission of 
     the application;
       ``(3) the plan by which--
       ``(A) access to appropriate permanent housing will be 
     secured if the proposed project does not include permanent 
     housing; and
       ``(B) access to outcome-effective supportive services will 
     be secured for residents or consumers involved in the project 
     who are willing to use the services;
       ``(4) if applicable, the extent to which an evaluation for 
     the project will--
       ``(A) use periodically collected information and analysis 
     to determine whether the project has resulted in enhanced 
     stability and well-being of the residents or consumers served 
     by the project;
       ``(B) include evaluations obtained directly from the 
     individuals or families served by the project; and
       ``(C) be submitted by the project sponsors for the grant, 
     to the collaborative applicant, for review and use in 
     assessments, conducted by the collaborative applicant, 
     consistent with the duty of the collaborative applicant to 
     ensure effective outcomes that contribute to the goal of 
     preventing and ending homelessness in the geographic area 
     served by the collaborative applicant;
       ``(5) the need for the type of project proposed in the 
     geographic area to be served and the extent to which 
     prioritized programs meet unmet needs;
       ``(6) the extent to which the amount of assistance to be 
     provided under this subtitle will be supplemented with 
     resources from other public and private sources, including 
     mainstream programs identified by the Government 
     Accountability Office in the 2 reports described in section 
     102(a)(5)(B);
       ``(7) demonstrated coordination with the other Federal, 
     State, local, private, and other entities serving individuals 
     experiencing homelessness in the planning and operation of 
     projects, to the extent practicable;
       ``(8) the extent to which the membership of the 
     collaborative applicant involved represents the composition 
     described in section 402(b) and the extent of membership 
     involvement in the application process; and
       ``(9) such other factors as the Secretary determines to be 
     appropriate to carry out this subtitle in an effective and 
     efficient manner.
       ``(c) Required Agreements.--The Secretary may not provide 
     assistance for a proposed project under this subtitle unless 
     the collaborative applicant involved agrees--
       ``(1) to ensure the operation of the project in accordance 
     with the provisions of this subtitle;
       ``(2) to conduct an ongoing assessment of access to 
     mainstream programs referred to in subsection (b)(4);
       ``(3) to monitor and report to the Secretary the progress 
     of the project;
       ``(4) to develop and implement procedures to ensure--
       ``(A) the confidentiality of records pertaining to any 
     individual provided family violence prevention or treatment 
     services through the project; and
       ``(B) that the address or location of any family violence 
     shelter project assisted under this subtitle will not be made 
     public, except with written authorization of the person 
     responsible for the operation of such project;
       ``(5) to ensure, to the maximum extent practicable, that 
     individuals and families experiencing homelessness are 
     involved, through employment, provision of volunteer 
     services, or otherwise, in constructing, rehabilitating, 
     maintaining, and operating facilities for the project and in 
     providing supportive services for the project;
       ``(6) if a collaborative applicant receives funds under 
     subtitle C to carry out the payment of administrative costs 
     described in section 423(a)(7), to establish such fiscal 
     control and fund accounting procedures as may be necessary to 
     assure the proper disbursal of, and accounting for, such 
     funds in order to ensure that all financial transactions 
     carried out with such funds are conducted, and records 
     maintained, in accordance with generally accepted accounting 
     principles; and
       ``(7) to comply with such other terms and conditions as the 
     Secretary may establish to carry out this subtitle in an 
     effective and efficient manner.'';
       (C) in subsection (d), in the first sentence, by striking 
     ``recipient'' and inserting ``recipient or project sponsor'';
       (D) by striking subsection (e);
       (E) by redesignating subsections (f), (g), and (h), as 
     subsections (e), (f), and (g), respectively;
       (F) in subsection (f) (as redesignated in subparagraph 
     (E)), in the first sentence, by striking ``recipient'' each 
     place it appears and inserting ``recipient or project 
     sponsor'';
       (G) by striking subsection (i); and
       (H) by redesignating subsection (j) as subsection (h);
       (5)(A) by repealing section 429 (42 U.S.C. 11389); and
       (B) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
     11388) as sections 431 and 432, respectively; and
       (6) by inserting after section 426 the following:

     ``SEC. 427. ALLOCATION AMOUNTS AND INCENTIVES FOR SPECIFIC 
                   ELIGIBLE ACTIVITIES.

       ``(a) Purpose.--The Secretary shall promote--
       ``(1) permanent housing development activities for--
       ``(A) homeless individuals with disabilities and homeless 
     families that include such an individual; and
       ``(B) nondisabled homeless families; and
       ``(2) prevention activities described in section 423(a)(8).
       ``(b) Definition.--In this section, the term `nondisabled 
     homeless family' means a homeless family that does not 
     include a homeless individual with a disability.
       ``(c) Annual Portion of Appropriated Amount Available.--
       ``(1) Disabled homeless individuals and families.--
       ``(A) In general.--From the amount made available to carry 
     out this subtitle for a fiscal year, a portion equal to not 
     less than 30 percent of the sums made available to carry

[[Page S10758]]

     out subtitle B and this subtitle for that fiscal year shall 
     be used for activities to develop new permanent housing, in 
     order to help create affordable permanent housing for 
     homeless individuals with disabilities and homeless families 
     that include such an individual who is an adult.
       ``(B) Calculation.--In calculating the portion of the 
     amount described in subparagraph (A) that is used for 
     activities described in subparagraph (A), the Secretary shall 
     not count funds made available to renew contracts for 
     existing projects (in existence as of the date of the 
     renewal) under section 428.
       ``(2) Prevention activities.--From the amount made 
     available to carry out this subtitle for a fiscal year, a 
     portion equal to not more than 5 percent of the sums 
     described in paragraph (1) shall be used for prevention 
     activities described in section 423(a)(8).
       ``(d) Funding for Acquisition, Construction, and 
     Rehabilitation of Permanent or Transitional Housing.--Nothing 
     in this Act shall be construed to establish a limit on the 
     amount of funding that an applicant may request under this 
     subtitle for acquisition, construction, or rehabilitation 
     activities for the development of permanent housing or 
     transitional housing.

     ``SEC. 428. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR 
                   PERMANENT HOUSING.

       ``(a) In General.--Of the total amount available for use in 
     connection with this subtitle, such sums as may be necessary 
     shall be designated for the purpose of renewing expiring 
     contracts for permanent housing, within the account referred 
     to as the `Homeless Assistance Grants Account' on the date of 
     enactment of the Community Partnership to End Homelessness 
     Act of 2005.
       ``(b) Renewals.--Such sums shall be available for the 
     renewal of contracts for a 1-year term for rental assistance 
     and housing operation costs associated with permanent housing 
     projects funded under this subtitle, or under subtitle C or F 
     (as in effect on the day before the date of enactment of the 
     Community Partnership to End Homelessness Act of 2005). The 
     Secretary shall determine whether to renew a contract for 
     such a permanent housing project on the basis of demonstrated 
     need for the project and the compliance of the entity 
     carrying out the project with appropriate standards of 
     housing quality and habitability as determined by the 
     Secretary.
       ``(c) Construction.--Nothing in this section shall be 
     construed as prohibiting the Secretary from renewing 
     contracts under this subtitle in accordance with criteria set 
     forth in a provision of this subtitle other than this 
     section.

     ``SEC. 429. MATCHING FUNDING.

       ``(a) In General.--A recipient of a grant (including a 
     renewed grant) under this subtitle shall make available 
     contributions, in cash, in an amount equal to not less than 
     25 percent of the Federal funds provided under the grant.
       ``(b) Application.--Subsection (a) shall not apply in the 
     case of a grant for activities consisting of the payment of 
     operating costs associated with permanent housing renewal 
     grants described in section 428 that fund the operation of 
     permanent housing--
       ``(1) for individuals or families whose incomes are 50 
     percent or less of the median income for an individual or 
     family, respectively, in the geographic area involved; and
       ``(2) that receives no Federal or State funds from a source 
     other than this subtitle.

     ``SEC. 430. APPEAL PROCEDURE.

       ``(a) In General.--With respect to funding under this 
     subtitle, if certification of consistency with the 
     Consolidated Plan pursuant to section 403 is withheld from an 
     applicant who has submitted an application for that 
     certification, such applicant may appeal such decision to the 
     Secretary.
       ``(b) Procedure.--The Secretary shall establish a procedure 
     to process the appeals described in subsection (a).
       ``(c) Determination.--Not later than 45 days after the date 
     of receipt of an appeal described in subsection (a), the 
     Secretary shall determine if certification was unreasonably 
     withheld. If such certification was unreasonably withheld, 
     the Secretary shall review such application and determine if 
     such applicant shall receive funding under this subtitle.''.

     SEC. 7. REPEALS AND CONFORMING AMENDMENTS.

       (a) Repeals.--Subtitles D, E, F, and G of title IV of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11391 et 
     seq., 11401 et seq., 11403 et seq., and 11408 et seq.) are 
     repealed.
       (b) Conforming Amendments.--
       (1) United states interagency council on homelessness.--
     Section 2066(b)(3)(F) of title 38, United States Code and 
     section 506(a) of the Public Health Service Act (42 U.S.C. 
     290aa-5(a)) are amended by striking ``Interagency Council on 
     the Homeless'' and inserting ``United States Interagency 
     Council on Homelessness''.
       (2) Consolidated plan.--Section 403(1) of the McKinney-
     Vento Homeless Assistance Act, as redesignated in section 
     4(2), is amended--
       (A) by striking ``current housing affordability strategy'' 
     and inserting ``Consolidated Plan''; and
       (B) by inserting before the comma the following: 
     ``(referred to in that section as a `comprehensive housing 
     affordability strategy')''.
       (3) Persons experiencing homelessness.--Section 103 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) is 
     amended by adding at the end the following:
       ``(d) Persons Experiencing Homelessness.--References in 
     this Act to homeless individuals (including homeless persons) 
     or homeless groups (including the homeless) shall be 
     considered to include, and to refer to, individuals 
     experiencing homelessness or groups experiencing 
     homelessness, respectively.''.

     SEC. 8. EFFECTIVE DATE.

       This Act shall take effect 6 months after the date of 
     enactment of this Act.

  Mr. BOND. Mr. President, I rise today to express my support for the 
Community Partnership to End Homeless Act of 2005. I am proud to be an 
original co-sponsor of this legislation because I believe that this 
bill will greatly assist the Nation's efforts on ending the long-
standing tragedy of homelessness. I applaud the hard work of the 
chairman and ranking member of the Senate Banking Committee's Housing 
and Transportation Subcommittee, Senators Allard and Reed for 
developing this important legislation.
  As a former member of the Banking Committee, former chair of the VA-
HUD and Independent Agencies Appropriations Subcommittee, and now the 
current chair of the Transportation, Treasury, the Judiciary, HUD, and 
Related Agencies (TTHUD) Appropriations Subcommittee, the issue of 
homelessness has been one of my main priorities. During my tenure on 
those subcommittees, I have learned a great deal about the causes of 
homelessness. The causes are varied ranging from the lack of affordable 
housing to mental or physical ailments to unforeseen economic problems.
  The good news is that since the Congress first created the McKinney-
Vento Homeless Assistance Act in 1987, there has been a great deal of 
research on homelessness and new approaches have been developed to 
solve homelessness. The most significant finding is the importance of 
permanent housing in ending homelessness. Due to this finding, I 
included a provision in the fiscal year 1999 VA-HUD and Independent 
Agencies Appropriations Act that required HUD to spend at least 30 
percent of the homeless assistance grant funds on permanent housing.
  Re-focusing HUD on permanent housing was something that senators on 
both sides of the aisle strongly and rightfully support. The 30 percent 
permanent housing set-aside requirement was established because HUD was 
not producing enough housing for homeless people. This was a problem 
because HUD is the only federal agency that provides permanent housing.
  By 1998, just prior to the enactment of the 30 percent set-aside, 
only 13 percent of HUD homeless grant funds were being spent on 
permanent housing. Therefore, the 30 percent set-aside was created to 
re-balance HUD's homeless programs so that permanent housing was being 
provided. And, the set-aside has not hurt funding for supportive 
services since we have continually increased the HUD homeless account 
and the Administration has worked with other agencies, such as HHS and 
VA, to ensure that they are providing services to homeless people. In 
the Senate's fiscal year 2006 TTHUD bill, we have provided a $174 
million increase over fiscal year 2005 for the HUD homeless account.
  The focus on permanent housing was backed by sound research that 
demonstrated the cost-effectiveness of this approach. By focusing on 
permanent housing and especially those who were chronically homeless, 
HUD's programs became correctly focused on those most needy of this 
assistance, such as disabled homeless veterans. For those reasons, I am 
extremely pleased and supportive of the bill's provision that requires 
HUD to use at least 30 percent of funds for permanent housing 
activities. This provision is probably the most important piece of this 
legislation.
  In addition to the permanent housing requirement, I strongly support 
the bill's provisions that require outcome-based performance 
evaluations, promote access to mainstream resources for supportive 
services, and consolidate HUD's competitive grant programs. I 
especially support the bill's efforts to encourage localities and 
grantees to participate and use the Homeless Management Information 
System (HMIS), which was initiated by Senator Mikulski and me in the 
fiscal year 2001 VA-HUD and Independent Appropriations Act. I am proud 
that the vast majority

[[Page S10759]]

of continuum-of-care grantees have implemented the HMIS. This system is 
absolutely critical for developing an unduplicated count of homeless 
people and an analysis of their patterns of use of federal assistance 
programs.
  This is a strong bill supported by members on both sides of the 
aisle. I hope that the Senate and the Congress can pass important 
legislation because this bill will help eliminate the tragedy of 
homelessness. I urge my colleagues to support this bill.
                                 ______
                                 
      By Mr. ENZI:
  S. 1802. All to provide for appropriate waivers, suspensions, or 
exemptions from provisions of title I of the Employee Retirement Income 
Security Act of 1974 with respect to individual account plans affected 
by Hurricane Katrina or Rita; read the first time.
  Mr. ENZI. Mr. President I rise to introduce the Pension Flexibility 
in Natural Disasters Act of 2005. The bill provides appropriate 
waivers, suspensions or exemptions from the provisions of title I of 
the Employee Retirement Income Security Act of 1974, as amended, with 
respect to individual account plans affected by Hurricane Katrina or 
Rita.
  Hurricanes Katrina and Rita have brought terrible devastation in the 
gulf coast. Not only have so many homes in Louisiana, Mississippi, 
Alabama and Texas been destroyed but many businesses have been 
destroyed as well.
  Any business that maintains a pension or retirement plan for their 
workers is subject to certain reporting, disclosure and fiduciary 
provisions of ERISA as well as being subject to the pertinent 
provisions of the Internal Revenue Code. ERISA sets up many 
requirements and deadlines that businesses simply cannot meet due to 
the devastation of their businesses and the destruction of all of their 
records.
  This bill postpones reporting requirements for businesses that have 
been adversely affected by storms in these presidentially-declared 
disaster areas. It also will facilitate getting individuals access to 
their retirement savings in the form of hardship loans or distributions 
by allowing plan fiduciaries flexibility in making those distributions 
in view of these terrible disasters.
  I hope my colleague will join me in supporting this important bill.
  Mr. President, I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1802

       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 ``Pension Flexibility in 
     Natural Disasters Act of 2005''.

     SEC. 2. AUTHORITY TO THE SECRETARY OF LABOR, SECRETARY OF THE 
                   TREASURY, AND THE PENSION BENEFIT GUARANTY 
                   CORPORATION.

       The Secretary of Labor, the Secretary of the Treasury, and 
     the Executive Director of the Pension Benefit Guaranty 
     Corporation shall exercise their authority under section 518 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1148) and section 7508A of the Internal Revenue Code 
     of 1986 to postpone certain deadlines by reason of the 
     Presidentially declared disaster areas in Louisiana, 
     Mississippi, Alabama, Texas, and elsewhere, due to the effect 
     of Hurricane Katrina or Rita. The Secretaries and the 
     Executive Director of the Corporation shall issue guidance as 
     soon as is practicable to plan sponsors and participants 
     regarding extension of deadlines and rules applicable to 
     these extraordinary circumstances. Nothing in this section 
     shall be construed to relieve any plan sponsor from any 
     requirement to pay benefits or make contributions under the 
     plan of the sponsor.

     SEC. 3. AUTHORITY TO PRESCRIBE GUIDANCE BY REASON OF THE 
                   PRESIDENTIALLY DECLARED DISASTER CAUSED BY 
                   HURRICANE KATRINA OR RITA.

       (a) Waivers, Suspensions, or Exemptions.--In the case of 
     any pension plan which is an individual account plan, or any 
     participant or beneficiary, plan sponsor, administrator, 
     fiduciary, service provider, or other person with respect to 
     such plan, affected by Hurricane Katrina or Rita, or any 
     service provider or other person dealing with such plan, the 
     Secretary of Labor may, notwithstanding any provision of 
     title I of the Employee Retirement Income Security Act of 
     1974, prescribe, by notice or otherwise, a waiver, 
     suspension, or exemption from any provision of such title 
     which is under the regulatory authority of such Secretary, or 
     from regulations issued under any such provision, that such 
     Secretary determines appropriate to facilitate the 
     distribution or loan of assets from such plan to participants 
     and beneficiaries of such plan.
       (b) Exemption From Liability for Acts or Omissions Covered 
     by Waiver, Suspension, or Exemption.--No person shall be 
     liable for any violation of title I of the Employee 
     Retirement Income Security Act of 1974, or of any regulations 
     issued under such title, based upon any act or omission 
     covered by a waiver, suspension, or exemption issued under 
     subsection (a) if such act or omission is in compliance with 
     the terms of the waiver, suspension, or exemption.
       (c) Plan Terms Subject to Waiver, Suspension, or 
     Exemption.--Notwithstanding any provision of the plan to the 
     contrary and to the extent provided in any waiver, 
     suspension, or exemption issued by the Secretary of Labor 
     pursuant to subsection (a), no plan shall be treated as 
     failing to be operated in accordance with its terms solely as 
     a result of acts or omissions which are consistent with such 
     waiver, suspension, or exemption.
       (d) Expiration of Authority.--This section shall apply only 
     with respect to waivers, suspensions, or exemptions issued by 
     the Secretary of Labor during the 1-year period following the 
     date of the enactment of this Act.
       (e) Definitions.--Terms used in this section shall have the 
     meanings provided such terms in section 3 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1002).

     SEC. 4. AUTHORITY IN THE EVENT OF PRESIDENTIALLY DECLARED 
                   DISASTER OR TERRORISTIC OR MILITARY ACTIONS.

       Section 518 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1148) is amended by inserting ``, under 
     any regulation issued thereunder, or under any plan 
     provision'' after ``under this Act''.

                          ____________________