[Congressional Record Volume 152, Number 92 (Friday, July 14, 2006)]
[Senate]
[Pages S7555-S7562]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Ms. LANDRIEU (for herself, Mr. Kerry, Mr. Bayh, and Mr. Pryor):
S. 3663. A bill to amend the Small Business Act to increase the
maximum amount for international trade loans, to direct the
Administrator of the Small Business Administration to assign an
international finance specialist, and for other purposes; to the
Committee on Small Business and Entrepreneurship.
Ms. LANDRIEU. Mr. President, the gulf coast has made good progress in
rebuilding after last year's hurricanes. Our small businesses and
entrepreneurs have led the way in this recovery. As all of my
colleagues know small businesses are the engines of our economy driving
innovation and growth.
Following Katrina and Rita, one problem for our business owners in
the gulf was that their customer bases were dispersed around the
country by the storms and were slow to return. Without this revenue
from their customers, many businesses struggled to make ends meet and
relied upon U.S. Small Business Administration, SBA, disaster loans,
insurance payouts, and in some cases, State-administered bridge loan
funding to keep going.
We also have businesses that export goods and services to foreign
countries. The 2,000 exporters in Louisiana, in addition to the other
help available, were also able to rely on their international partners
to stay in business. Their international customers showed great faith
and commitment to our exporters by placing new orders after the storms.
I am introducing the Small Business International Trade Enhancements
Act of 2006 to give all small businesses the opportunity to expand
their operations into international markets. I am pleased to have
Senator Kerry, the ranking member of the Senate Small Business
Committee, as well as Senators Pryor and Bayh, as cosponsors.
As I mentioned we have 2,000 exporters in Louisiana. However, there
are many other businesses who are exporters, but they do not even
realize it. They may have overseas Internet sales, or they focus
operations on domestic sales, but have some international buyers as
well. In fact, the Small Business Administration has stated that over
96 percent of all exporters of goods and services are small businesses.
Given the importance of these exporters to my State and to the rest
of the gulf coast, I would like to improve their competitive edge in
the international market and give them every resource they need to
succeed. As they continue to recover, one of the main issues being
faced by our small business is accessing capital. Our exporters are no
different. They need help accessing export financing to cover export-
related costs such as purchasing equipment, purchasing inventory, or
financing production costs.
To help our small businesses access export financing, my legislation
will create a gulf coast international finance specialist within SBA
located in New Orleans to focus on the needs of businesses affected by
Katrina and Rita. New Orleans had a finance specialist from 1998 until
mid-2003, when that individual retired from the agency. SBA left the
post vacant due to lack of funding. I believe it is important to locate
this finance specialist in New Orleans because that is where the
majority of Louisiana's exporters and export financing institutions are
located. In New Orleans, this finance specialist also is in a prime
location, within easy travel distance to the gulf coast sections of
Mississippi and Alabama--where a majority of the exporters and export
financing institutions in these States are located as well.
Fifteen SBA finance specialists operate out of 100 U.S. export
assistance centers administered by the Department of Commerce around
the country. That is a record staffing low for this program, down from
a peak of 22 finance specialists in 2000. To ensure that all smaller
exporters nationwide will continue to have access to export financing,
this bill establishes a floor of 16 international finance specialists.
I believe this will send a signal to our exporters that, despite
current budget deficits, we are committed to our exporters and want to
provide them with the necessary resources to compete internationally.
Mr. President, I realize that the need for export financing is not
just limited to the gulf coast. There are small businesses nationwide
that are looking to find markets overseas. One tool that they can use
is the SBA's international trade loan, ITL, program. International
trade loans can help exporters develop and expand overseas markets;
upgrade equipment or facilities; and assist exporters that are being
hurt by import competition. Exporters can borrow up to $2 million, with
$1,750,000 guaranteed by SBA.
However, as currently structured these loans are not user-friendly to
lenders or borrowers and, as a result, are underutilized. Let me
explain what I mean. First, the $250,000 difference between the loan
cap and the guarantee requires borrowers to take out a second SBA loan
to take full advantage of the $2 million guarantee. ITLs can only be
used to acquire fixed assets and not working capital, a common need for
exporters. Furthermore, ITLs do not have the same collateral or
refinancing requirements as SBA 7(a) loans. Because of these issues,
lenders do not use these loans.
My legislation will reduce the paperwork by increasing the maximum
loan guarantee to $2,750,000 and the loan cap to $3,670,000 to bring it
more in line with the 7(a) program. This bill also creates a more
flexible ITL by setting out that working capital is an eligible use for
loan proceeds, in addition to making the ITL consistent with regular
7(a) loans by allowing the same collateral and refinancing terms as
with 7(a).
The SBA international trade and export loans are valuable tools for
exporters but they are useless if there is no one to assist borrowers
with identifying which loans are right for them. Local lending
institutions that specialize in export financing can help but at a cost
over less than $2 million per year, the current group of finance
specialists has obtained bank financing for more than $10 billion in
U.S. exports since 1999. The $10 billion in export sales financed by
these specialists helped to create over 140,000 new, high-paying U.S.
jobs.
The Small Business International Trade Enhancements Act of 2006 is an
[[Page S7556]]
important first step, not just for exporters in the gulf coast, but
also for small businesses nationwide who are looking to open markets
overseas. I urge my colleagues to support this legislation since it
will help our exporters in the gulf coast recover and also give small
businesses nationwide more options when they are seeking export
financing.
I thank the Chair and ask unanimous consent that a copy of the bill
be printed in the Record, along with the accompanying material.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3663
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business International
Trade Enhancements Act of 2006''.
SEC. 2. DEFINITIONS.
In this Act, the terms ``Administration'' and
``Administrator'' mean the Small Business Administration and
the Administrator thereof, respectively.
SEC. 3. INTERNATIONAL TRADE LOANS.
(a) In General.--Section 7(a)(3)(B) of the Small Business
Act (15 U.S.C. 636(a)(3)(B)) is amended by striking
``$1,750,000, of which not more than $1,250,000'' and
inserting ``$2,750,000 (or if the gross loan amount would
exceed $3,670,000), of which not more than $2,000,000''.
(b) Working Capital.--Section 7(a)(16)(A) of the Small
Business Act (15 U.S.C. 636(a)(16)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``in--
'' and inserting ``--'';
(2) in clause (i)--
(A) by inserting ``in'' after ``(i)''; and
(B) by striking ``or'' at the end;
(3) in clause (ii)--
(A) by inserting ``in'' after ``(ii)''; and
(B) by striking the period and inserting ``; or''; and
(4) by adding at the end the following:
``(iii) by providing working capital.''.
(c) Collateral.--Section 7(a)(16)(B) of the Small Business
Act (15 U.S.C. 636(a)(16)(B)) is amended--
(1) by striking ``Each loan'' and inserting the following:
``(i) In general.--Except as provided in clause (ii), each
loan''; and
(2) by adding at the end the following:
``(ii) Exception.--A loan under this paragraph may be
secured by a second lien position on the property or
equipment financed by the loan or on other assets of the
small business concern, if the Administrator determines such
lien provides adequate assurance of the payment of such
loan.''.
(d) Refinancing.--Section 7(a)(16)(A)(ii) of the Small
Business Act (15 U.S.C. 636(a)(16)(A)(ii)) is amended by
inserting ``, including any debt that qualifies for
refinancing under any other provision of this subsection''
before the period.
SEC. 4. GULF COAST EXPORT ASSISTANCE.
(a) Increase in Small Business International Trade Staff.--
The Administrator shall assign 1 additional full-time
international finance specialist to the Office of
International Trade of the Administration.
(b) Location and Service Area.--The international finance
specialist assigned under subsection (a) shall--
(1) be located in the New Orleans, Louisiana United States
Export Assistance Center;
(2) help to carry out the export promotion efforts
described in section 22 of the Small Business Act (15 U.S.C.
649); and
(3) provide such services in the States of Louisiana,
Mississippi, and Alabama.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Administration such sums as are necessary to carry out
this section.
(2) Availability of funds.--Amounts made available under
this subsection shall remain available until expended.
SEC. 5. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF
INTERNATIONAL TRADE.
Section 22 of the Small Business Act (15 U.S.C. 649) is
amended by adding at the end the following:
``(h) In carrying out this section, the Administrator shall
ensure that the number of full-time equivalent employees of
the Office assigned to the one-stop shops referred to in
section 2301(b) of the Omnibus Trade and Competitiveness Act
of 1988 (15 U.S.C. 4721(b)) is not less than the number of
such employees so assigned on January 1, 2006.''.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Small Business International Trade Enhancements Act of 2006
Exports and international trade are important to the U.S.
economy and will be key to the long-term recovery of the Gulf
Coast. To take advantage of increased demand for products
from the Gulf Coast, particularly Louisiana and Mississippi,
small businesses in the Gulf require access to export
financing through the Export-Import Bank, the U.S. Small
Business Administration (SBA), and in some cases, the U.S.
Department of Agriculture.
The SBA employs International Finance Specialists which
work with borrowers and lenders to navigate the various
Federal government export financing programs.
Problem #1: Gulf Coast Export Financing Needs. Despite the
increased need for export financing in the Gulf Coast, there
is currently no International Finance Specialist located in
any of the hardest hit states of Mississippi, Alabama and
Louisiana. Instead there is one specialist in Texas with
responsibility for Texas, Oklahoma, Arkansas and Louisiana
and one specialist in Georgia responsible for Georgia,
Alabama, Kentucky, Tennessee, and Mississippi. Due to the
extensive territories they cover and limited travel budgets
of the staff, these specialists must divide their time and
cannot focus on the needs of Gulf Coast small businesses.
It is essential to have a Finance Specialist located on the
Gulf Coast with a responsibility for the Gulf Coast.
Problem #2: Staff Reductions for SBA International Finance
Specialists. At a cost of less than $2 million per year, the
current group of Finance Specialists has obtained bank
financing for more than $10 billion in U.S. exports since
1999. The $10 billion in export sales financed by these
specialists helped to create over 140,000 new, high-paying
U.S. jobs. Despite these figures, this program is
experiencing record staffing lows.
In particular, there are over 100 U.S. Export Assistance
Centers nationwide, however as of July 10, 2006 there were
only 15 Finance Specialists nationwide. This figure is the
lowest staff levels ever for the program and is down from a
peak of 22 Finance Specialists in January 2000.
Problem #3: International Trade Loan Program. The SBA's
International Trade Loan (ITL) program is used by exporters
to expand or develop markets, upgrade equipment or facilities
to improve competitive position, or to assist exporters
currently hurt by import competition. As currently
structured, however, ITLs are not user friendly or relevant.
This is because, with a maximum guarantee amount of $1.75
million and loan cap of $2 million, ITLs require the SBA to
make a second loan to the borrower to make use of the maximum
guarantee. These loans are also restricted for use for only
fixed assets and not working capital, which is a common need
for exporters.
The Landrieu Small Business International Trade
Enhancements Act of 2006 addresses these problems:
Gulf Coast International Finance Specialist: To help our
small businesses access export financing, this bill provides
for an International Finance Specialist in the New Orleans
who would be responsible for Louisiana, Mississippi, and
Alabama.
International Trade Loans: To make this loan program more
responsive, this bill increases the maximum loan guarantee
amount to $2.75 million and specifies that the loan cap for
ITLs is $3.67 million, as well as sets out that working
capital is an eligible use for loan proceeds.The bill also
makes ITLs consistent with regular SBA 7(a) loans in terms of
allowing the same collateral and refinancing terms as with
regular 7(a) loans.
Stop International Finance Specialist Downsizing: To ensure
that all smaller exporters nationwide will continue to have
access to export financing, this bill establishes a floor of
16 International Finance Specialists.
______
By Ms. LANDRIEU (for herself, Mr. Kerry, Mr. Bayh, and Mr.
Pryor):
S. 3664. A bill to amend the Small Business Act to improve assistance
after a major disaster, to authorize emergency bridge loans, bridge
loan guarantees, and recovery grants, and for other purposes; to the
Committee on Small Business and Entrepreneurship.
Ms. LANDRIEU. Mr. President, as we all know, there was a tremendous
amount of criticism of the Federal Government's response to Hurricanes
Katrina and Rita last year. Things are better now and the region is
slowly recovering. But we are in the second month of another hurricane
season and we must be sure that if we have another disaster, the
Federal Government's response will be better this time around. Disaster
response agencies have to be better organized, more efficient, and more
responsive in order to avoid the problems, the delays, mismanagement,
and the seeming incompetence that occurred last year.
Today, I am introducing legislation to improve the disaster response
of one agency that had a great deal of problems last year, the Small
Business Administration, SBA. While it did improve during the course of
the months after the storm, it became clear to me that SBA needs
additional tools for future disasters. SBA approached Katrina and the
massive floods after the storm, using the same tools that it uses for
much smaller, much less damaging disasters. I do not blame all of the
people who work at this agency for the problems we saw in the gulf.
They found themselves in a system that was insufficient to address this
disaster.
My legislation, the Small Business Disaster Recovery Assistance
Improvements Act of 2006, offers new tools to
[[Page S7557]]
enhance SBA's disaster assistance programs. In every disaster, the SBA
Disaster Loan program is a lifeline for businesses and homeowners who
want to rebuild their lives after a catastrophe. When Katrina hit, our
businesses and homeowners had to wait months for loan approvals. I do
not know how many businesses we lost because help did not come in time.
Because of the scale of this disaster, what these businesses needed was
immediate, short-term bridge loans to hold them over until SBA was
ready to process the tens of thousands of loan applications it
received.
That is why this legislation provides the SBA Administrator with the
ability to make emergency bridge loans of up to $150,000 to affected
small businesses in a declared disaster area. These bridge loans will
allow businesses to make payroll, begin making repairs, and address
other immediate needs while they are awaiting insurance payouts or
regular SBA disaster loans. However, I realize that every disaster is
different and could range from a disaster on the scale of Hurricane
Katrina or 9/11, to an ice storm or drought. My legislation gives the
SBA additional options and flexibility in the kinds of relief they can
offer a community. When a tornado destroys 20 businesses in a small
town in the Midwest, SBA can get the regular disaster program up and
running fairly quickly. You may not need bridge loans in this instance.
But if you know that SBA's resources would be overwhelmed by a storm--
just as they were initially with Katrina--bridge loans would be very
helpful.
My legislation also would expedite disaster loans for those
businesses in a disaster area that have a good, solid track record with
the SBA or can provide vital recovery efforts. We had many businesses
in the gulf coast that had paid off previous SBA loans, were major
sources of employment in their communities, but had to wait months
for decisions on their disaster loan applications. I do not want to get
rid of the SBA's current practice of reviewing applications on a first-
come-first-served basis, but there should be some mechanism in place
for major disasters to get expedited loans out the door to specific
businesses that has a positive record with SBA or those that could
serve a vital role in the recovery efforts. Expedited loans would jump-
start impacted economies, get vital capital out to businesses, and
retain essential jobs following future disasters.
We had a lot of small business owners in the gulf coast who did not
qualify for SBA disaster loans, or may not have had enough insurance to
cover their losses. These people usually have to expend their personal
finances or seek out small grants from non-profits to keep going. My
legislation authorizes a small business disaster grant program to
provide small grants of up to $25,000 to businesses that are not able
to get access to get other assistance. These grants will only go to
business owners that certify their intent to reopen in the disaster
area and pursue technical assistance to continue their operations.
Following Katrina, it is clear that disaster loan amounts need to be
updated to reflect current business needs and the average cost of
housing today. The bill raises the cap on SBA disaster loans for
businesses from $1.5 million to $2.25 million; the cap on SBA personal
property loans from $40,000 to $50,000; and the cap on real property
homeowner loans from $200,000 to $250,000.
This bill also makes an important modification to the collateral
requirements for disaster loans. The SBA cannot disburse more than
$10,000 for an approved loan without showing collateral. This is to
limit the loss to the SBA in the event that a loan defaults. However,
this disbursement amount has not been increased since 1998 and these
days, $10,000 is not enough to get a business up and running.
I was surprised to learn that the SBA did not have a full-time
disaster planner on board before Katrina, nor did it have a
comprehensive disaster response plan in place. While SBA is not a
first-responder disaster agency like FEMA, they do hit the ground
within days of a disaster strike. As the only Federal nonagricultural
disaster lender, SBA should have an analytical, proactive plan in place
to respond to disasters.
I pushed to get language in the recent hurricane supplemental
appropriations bill to require SBA to develop a disaster plan and
report to Congress on its contents by July 15, 2006. I look forward to
this report. But writing a plan and making it work are two different
things. SBA needs a full-time staff in place to ensure that this plan
is implemented properly. My legislation directs the SBA to hire a full-
time disaster planner to maintain this disaster response plan and to
assist the SBA with its overall disaster preparedness, including
coordination with other disaster response agencies like FEMA.
As we reflect next month on the 1-year anniversary of the worst
natural disaster to hit our nation, now is the time for action--not
words or empty promises. I want to be able to go back to my
constituents and reassure them that if, God forbid, another natural
disaster should hit my state or another part of the country, that the
Small Business Administration is better prepared and more responsive to
the needs of those impacted.
The Small Business Disaster Recovery Assistance Improvements Act will
provide essential tools to make the SBA more proactive, flexible, and
most important, more efficient during future disasters. In the coming
weeks, I look forward to working with both Chairwoman Snowe and Ranking
Member Kerry on the Senate Small Business Committee to ensure that the
SBA has everything it needs to meet these goals.
Mr. President, I am pleased to be joined on this legislation by the
ranking member of the Small Business Committee, Senator Kerry, as well
as my colleagues from the Small Business Committee, Senators Pryor and
Bayh. We urge our other colleagues to support this important
legislation.
I thank the Chair and ask unanimous consent that a copy of the bill
be printed in the Record, along with the accompanying materials.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 3664
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Disaster
Recovery Assistance Improvements Act of 2006''.
SEC. 2. FINDINGS.
Congress finds that--
(1) 43 percent of businesses that close following a natural
disaster never reopen;
(2) an additional 29 percent of businesses close down
permanently within 2 years of a natural disaster;
(3) businesses affected by a natural disaster require,
within the first 60 days following the disaster, immediate
access to capital and technical assistance to fully recover
and prosper;
(4) in the aftermath of Hurricanes Katrina and Rita of
2005, due to initial Administration response issues, as well
as extensive destruction in the region and wide distribution
of affected business owners around the country--
(A) Administration loan approvals took longer than 3
months, on average, for homeowner disaster loans, and longer
than 2 months, on average, for business disaster loans; and
(B) closings on disaster loans added an additional month to
the process;
(5) the Administration requires new tools and authority to
be more effective in responding to major disasters and to be
responsive to the needs of affected small business concerns
and homeowners;
(6) for major disasters, State-administered bridge loan
programs can serve as an effective means of providing
immediate capital, to allow businesses to make repairs, make
payroll, and continue operations, as demonstrated by the fact
that--
(A) following the 2004 hurricanes in Florida, the Florida
State Bridge Loan Program was a successful program in
providing immediate capital to struggling businesses,
providing 1,679 small business concerns with $35,400,000 in
bridge loans;
(B) following the 2005 impacts of Hurricanes Katrina and
Rita on the Louisiana Gulf Coast, the Louisiana Bridge Loan
Program was a successful program in providing immediate
capital to struggling businesses, providing 407 small
business concerns with $9,750,000 in bridge loans;
(C) following the 2005 impact of Hurricane Katrina on the
Mississippi Gulf Coast, the Mississippi Bridge Loan Program
was a successful program in providing immediate capital to
struggling businesses, providing 464 small business concerns
with $11,233,850 in bridge loans; and
(D) following the 2005 impact of Hurricane Wilma on the
Florida Gulf Coast, the Florida State Bridge Loan Program was
a successful program in providing immediate capital to
struggling businesses, providing 593 small business concerns
with $12,900,000 in bridge loans;
[[Page S7558]]
(7) in the aftermath of Hurricane Katrina of 2005 and
Hurricane Rita of 2005, small business development centers
had difficulties entering and utilizing disaster recovery
centers of the Administration, resulting in delays of
technical assistance service to affected businesses; and
(8) there is a need for greater cooperation between the
Federal Government and State governments on bridge loans
programs to respond to major disasters.
SEC. 3. DEFINITIONS.
In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``approved State Bridge Loan Program'' means a
State Bridge Loan Program approved under section 5(b);
(3) the term ``major disaster'' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122);
(4) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act; and
(5) the term ``State'' means any State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Northern Mariana Islands, the Virgin Islands, Guam,
American Samoa, and any territory or possession of the United
States.
SEC. 4. EMERGENCY BRIDGE LOANS AND GRANTS AFTER MAJOR
DISASTERS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (3) the
following:
``(4) Emergency bridge loans and business recovery grants
after major disasters.--
``(A) Definitions.--In this paragraph--
``(i) the term `disaster area' means an area for which a
major disaster was declared, during the period of such
declaration; and
``(ii) the term `major disaster' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122).
``(B) Bridge loans.--
``(i) Definition.--In this subparagraph, the term
`qualified small business concern' means a small business
concern--
``(I) located in a disaster area; and
``(II) that is directly adversely affected by the major
disaster for which such disaster area was declared.
``(ii) Loan authority.--The Administrator shall make such
loans under this subparagraph (either directly (including
through a district office of the Administration located in a
disaster area) or in cooperation with banks or other lending
institutions through agreements to participate on an
immediate or deferred basis) as the Administrator determines
appropriate to a qualified small business concern, to provide
assistance until such small business concern is able to
obtain funding through insurance claims, other Federal
assistance programs, or other sources, based on such criteria
as the Administrator may set by rule, regulation, or order.
``(iii) Loan terms.--
``(I) Prepayment.--A loan under this subparagraph may have
no prepayment penalty.
``(II) Interest.--For not more than 6 months after the date
on which a loan is made under this subparagraph, the interest
rate on such a loan may be the same as for a loan under
paragraph (2).
``(III) Transfer.--A loan under this subparagraph may
include as a term that such loan may be transferred to a
local bank or other financial institution in a disaster area.
``(IV) Technical assistance.--The borrower for a loan under
this subparagraph shall certify the intent of such borrower
to participate in technical assistance consultation (either
with a local small business development center or other
technical assistance group approved by the Administrator)
before the borrower may utilize funds received under the
loan.
``(iv) Use of funds.--A loan under this subparagraph may be
used for--
``(I) paying salaries, bills, and other existing financial
obligations;
``(II) making minor repairs;
``(III) purchasing inventory; or
``(IV) paying other costs.
``(v) Maximum amount.--Notwithstanding any other provision
of law, the Administrator may make a loan under this
subparagraph of not more than $150,000 to a qualified small
business concern.
``(vi) Deferred payment.--
``(I) In general.--The Administrator, or a bank or other
lending institution, may defer payments of principal and
interest on a loan under this subparagraph for not more than
180 days after the date on which the loan is made.
``(II) Capitalization of interest.--If payments are
deferred under subclause (I), any interest accrued during the
period for which such payments are deferred shall be
capitalized.
``(vii) Notice to borrowers.--In making any loan under this
subparagraph--
``(I) the borrower shall be made aware that such loans are
for those directly adversely affected by the major disaster;
and
``(II) if such loans are made in cooperation with a bank or
other lending institution, the lender shall document for the
Administrator how the borrower was directly adversely
affected by the major disaster.
``(viii) Reports.--
``(I) Inspector general.--For any major disaster, not later
than 6 months after the date on which such disaster is
declared, and every 6 months thereafter until the date that
is 18 months after the date on which such disaster is
declared, the Inspector General of the Administration shall
submit a report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding loans
described in clause (vii)(II), including verification that
the program is being administered appropriately and that such
loans are being used for purposes authorized by this
subparagraph.
``(II) GAO.--Not later than 12 months after the date on
which a final report for a major disaster is submitted by the
Inspector General under subclause (I), the Comptroller
General of the United States shall conduct a review of the
loan program authorized under this subparagraph and submit a
report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives containing the
findings of the review and any recommendations.
``(C) Business recovery grants.--
``(i) Definition.--In this subparagraph, the term `eligible
small business concern' means a small business concern--
``(I) directly adversely affected by a major disaster;
``(II) that has been declined for other assistance under
this subsection and from private lending institutions and
State-provided bridge loans;
``(III) that certifies that it intends--
``(aa) to reopen in the disaster area for which the major
disaster described in subclause (I) was declared; and
``(bb) to participate in technical assistance consultation
(either with a local small business development center or
other technical assistance group approved by the
Administrator).
``(ii) Authorization.--The Administrator shall make such
grants under this subparagraph as the Administrator
determines appropriate to an eligible small business concern,
to assist such small business concern in recovery from a
major disaster.
``(iii) Maximum amount.--The Administrator may make a grant
in an amount not more than $25,000 under this subparagraph.
``(iv) Documentation of technical assistance.--An eligible
small business concern receiving a grant under this
subparagraph shall submit to the Administrator documentation
indicating that such small business concern received
technical assistance support through a small business
development center or other technical assistance provider
determined appropriate by the Administrator.
``(D) Authorization of appropriations.--There are
authorized to be appropriated to the Administration such sums
as are necessary to carry out this paragraph.''.
SEC. 5. STATE BRIDGE LOAN GUARANTEE.
(a) Authorization.--After issuing guidelines under
subsection (c), the Administrator may guarantee loans made
under an approved State Bridge Loan Program.
(b) Approval.--
(1) Application.--A State desiring approval of a State
Bridge Loan Program shall submit an application to the
Administrator at such time, in such manner, and accompanied
by such information as the Administrator may require.
(2) Criteria.--The Administrator may approve an application
submitted under paragraph (1) based on such criteria as the
Administrator may establish under this section.
(c) Guidelines.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall issue to the
appropriate economic development officials in each State, the
Committee on Small Business and Entrepreneurship of the
Senate, and the Committee on Small Business of the House of
Representatives, guidelines regarding approved State Bridge
Loan Programs.
(2) Contents.--The guidelines issued under paragraph (1)
shall--
(A) identify appropriate uses of funds under an approved
State Bridge loan Program;
(B) set terms and conditions for loans under an approved
State Bridge loan Program;
(C) address whether--
(i) an approved State Bridge Loan Program may charge
administrative fees; and
(ii) loans under an approved State Bridge Loan Program
shall be disbursed through local banks and other financial
institutions; and
(D) establish the percentage of a loan the Administrator
will guarantee under an approved State Bridge Loan Program.
SEC. 6. AUTHORITY TO MAKE EXPEDITED 7(A) DISASTER LOANS TO
SMALL BUSINESS CONCERNS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended by adding at the end the following:
``(32) Expedited loans.--
``(A) Definitions.--In this paragraph--
``(i) the term `disaster area' means an area for which a
major disaster was declared, during the period of such
declaration;
``(ii) the term `major disaster' has the meaning given the
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); and
``(iii) the term `essential small business concern in good
standing' means a small
[[Page S7559]]
business concern that the Administrator, in consultation with
appropriate officials in district offices of the
Administration determines has the ability to repay the
subject loan, and--
``(I) is in good standing and has a history of compliance
with the terms of a program of the Administration (including
having repaid, or being in the process of repaying, a loan
under a program of the Administration, as required under the
terms of such loan); or
``(II) has a bona fide reason for receiving an expedited
loan under this paragraph (including being a major source of
employment in a disaster area or essential to economic
recovery of the area, such as by supplying building
materials, housing, or debris removal services).
``(B) Loan authorization.--Notwithstanding any other
provision of law, the Administrator may make a loan under
this subsection to an essential small business concern in
good standing under expedited procedures, including expedited
loss verification, loan processing, and approval.
``(C) Authorization of appropriations.--There are
authorized to be appropriated to the Administrator, such sums
as are necessary to carry out this paragraph.''.
SEC. 7. MAXIMUM LOAN AMOUNTS.
(a) In General.--Section 7(a)(3)(A) of the Small Business
Act is amended by striking ``$1,500,000 (or if the gross loan
amount would exceed $2,000,000'' and inserting ``$2,250,000
(or if the gross loan amount would exceed $3,000,000''.
(b) Disaster Loans.--Section 7(c)(6) of the Small Business
Act (15 U.S.C. 636(c)(6)) is amended--
(1) by striking ``$500,000'' each place such term appears
and inserting ``$2,250,000'';
(2) by striking ``$100,000'' and inserting ``$250,000'';
and
(3) by striking ``$20,000'' and inserting ``$50,000''.
(c) Conforming Amendment.--Chapter I of the Emergency
Supplemental Appropriations for Relief From the Major,
Widespread Flooding in the Midwest Act of 1993 (Public Law
103-75; 107 Stat. 740) is amended by striking ``: Provided
further, That notwithstanding any other provision of law, the
$500,000 limitation on the amounts outstanding and committed
to a borrower provided in paragraph 7(c)(6) of the Small
Business Act shall be increased to $1,500,000 for disasters
commencing on or after April 1, 1993''.
SEC. 8. INCREASING COLLATERAL REQUIREMENTS.
Section 7(c)(6) of the Small Business Act (15 U.S.C.
636(c)(6)) is amended by striking ``$10,000'' and inserting
``$20,000''.
SEC. 9. CATASTROPHIC REGIONAL OR NATIONAL DISASTERS.
Section 7(b)(2) of the Small Business Act (15 U.S.C.
636(b)(2)) is amended--
(1) by redesignating subparagraphs (A), (B), (C), and (D)
as clauses (i), (ii), (iii), and (v), respectively;
(2) by striking ``(2) to make such loans'' and inserting
``(2)(A) to make such loans'';
(3) in subparagraph (A), as so designated by this section--
(A) by striking ``or'' at the end of each of clauses (i),
(ii), and (iii), as so redesignated by paragraph (1) of this
section;
(B) by inserting after clause (iii), as so redesignated by
paragraph (1) of this section, the following:
``(iv) a catastrophic regional or national disaster, as
declared by the Secretary of Homeland Security, that is an
actual or potential high-impact event that requires a
coordinated and effective response by an appropriate
combination of Federal, State, local, tribal,
nongovernmental, or private-sector entities in order to save
lives and minimize damage and provide the basis for long-term
community recovery and mitigation activities; or''; and
(C) in clause (v), as so redesignated by paragraph (1) of
this section, by striking ``subparagraph (A), (B), or (C)''
and inserting ``clause (i), (ii), (iii), or (iv)''; and
(4) by adding at the end the following:
``(B) Notwithstanding subsection (c)(6), in the case of a
catastrophic regional or national disaster declared under
subparagraph (A)(iv) of this paragraph, the Administrator may
increase the maximum amount that may be outstanding and
committed to borrower under this paragraph to $10,000,000.''.
SEC. 10. FULL-TIME DISASTER PLANNING STAFF.
(a) Increase in Small Business Administration Full-Time
Disaster Planning Staff.--The Administrator shall hire a
full-time disaster planning specialist in the Office of
Disaster Assistance of the Administration.
(b) Responsibilities.--The disaster planning specialist
hired under subsection (a) shall be responsible for--
(1) creating and maintaining the comprehensive disaster
response plan of the Administration;
(2) ensuring in-service and pre-service training procedures
for the disaster response staff of the Administration;
(3) coordinating Administration training exercises,
including mock disaster responses, with other Federal
agencies; and
(4) other responsibilities, as determined by the
Administrator.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Administration such sums as are necessary to carry out
this section.
(2) Availability of funds.--Amounts made available under
this section shall remain available until expended.
SEC. 11. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES OF THE
ADMINISTRATION.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (4), as
added by this Act, the following:
``(5) Use of district offices.--In the event of a major
disaster (as that term is defined in section 102 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122)), the Administrator may authorize a
district office of the Administration to process loans under
paragraph (1) or (2).''.
SEC. 12. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.
(a) In General.--Section 7(b)(2)(A) of the Small Business
Act, as redesignated by this Act, is amended--
(1) in the matter preceding clause (i)--
(A) by inserting after ``small business concern'' the
following: ``, private nonprofit organization,''; and
(B) by inserting after ``the concern'' the following: ``,
organization,''; and
(2) in clause (v), by inserting after ``small business
concerns'' the following: ``, private nonprofit
organizations,''.
(b) Conforming Amendment.--Section 7(c) of the Small
Business Act (15 U.S.C. 636(c)) is amended in paragraph
(5)(C), by inserting ``, organization,'' after ``business''.
SEC. 13. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY
GRANTS.
Section 21(a)(4) of the Small Business Act (15 U.S.C.
648(a)(4), as amended by this Act, is amended by adding at
the end the following:
``(E) Waiver of maximum amount.--In the event of a major
disaster (as that term is defined in section 102 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122)), the Administrator may waive the
maximum amount of $100,000 for grants under subparagraph
(C)(viii), and such grants shall be made available for small
business development centers assisting small business
concerns adversely affected by such major disaster.''.
SEC. 14. DISASTER LOAN PROGRAM MONTHLY ACCOUNTING REPORT.
(a) Definition.--In this section, the term ``applicable
period'' means the period beginning on the date on which the
President declares a major disaster and ending on the date
that is 30 days after the later of the closing date for
applications for physical disaster loans for such disaster
and the closing date for applications for economic injury
disaster loans for such disaster.
(b) Report to Congress.--Not later than the 5th business
day of each month during the applicable period for a major
disaster, the Administrator shall provide to the Committee on
Small Business and Entrepreneurship and the Committee on
Appropriations of the Senate and to the Committee on Small
Business and the Committee on Appropriations of the House of
Representatives a report on the operation of the disaster
loan program authorized under section 7 of the Small Business
Act (15 U.S.C. 636) for such disaster during the preceding
month.
(c) Content of Reports.--Each report under subsection (b)
shall include--
(1) the daily average lending volume, in number of loans
and dollars, and the percent by which each category has
increased or decreased since the previous report under
subsection (b);
(2) the weekly average lending volume, in number of loans
and dollars, and the percent by which each category has
increased or decreased since the previous report under
subsection (b);
(3) the amount of funding spent over the month for loans,
both in appropriations and program level, and the percent by
which each category has increased or decreased since the
previous report under subsection (b);
(4) the amount of funding available for loans, both in
appropriations and program level, and the percent by which
each category has increased or decreased, noting the source
of any additional funding;
(5) an estimate of how long the available funding for such
loans will last, based on the spending rate;
(6) the amount of funding spent over the month for staff,
along with the number of staff, and the percent by which each
category has increased or decreased since the previous report
under subsection (b);
(7) the amount of funding spent over the month for
administrative costs, and the percent by which such spending
has increased or decreased since the previous report under
subsection (b);
(8) the amount of funding available for salaries and
expenses combined, and the percent by which such funding has
increased or decreased, noting the source of any additional
funding; and
(9) an estimate of how long the available funding for
salaries and expenses will last, based on the spending rate.
SEC. 15. DISASTER LOANS AFTER MAJOR DISASTERS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (5), as
added by this Act, the following:
``(6) Authority for lenders to process disaster loans.--The
Administrator may enter into an agreement with a qualified
lender, as determined by the Administrator, to process loans
under this section, under which the Administrator shall pay
the lender a fee for each loan processed.
[[Page S7560]]
``(7) Authority for the administrator to contract with
lenders for loan loss verification services.--The
Administrator may enter into an agreement with a qualified
lender or loss verification professional, as determined by
the Administrator, to verify losses for loans under this
section, under which the Administrator shall pay the lender
or verification professional a fee for each loan for which
such lender or verification professional verifies losses.''.
SEC. 16. WAIVER OF GEOGRAPHIC RESTRICTIONS ON SBDC
COUNSELORS.
Section 21(b) of the Small Business Act (15 U.S.C. 648(b))
is amended by adding at the end the following:
``(4) Waiver of Geographic Restrictions on SBDC
Counselors.--
``(A) In general.--The Administrator shall authorize any
small business development center, regardless of location, to
provide advice, information, and assistance, as described in
subsection (c), to a small business concern located in an
area in which the President declared a major disaster (as
defined in section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122)), during
the period of such declaration.
``(B) Continuity of services.--A small business development
center that provides counselors to an area described in
subparagraph (A) shall, to the maximum extent practicable,
ensure continuity of services in the State it currently
serves.
``(C) Access to disaster recovery facilities.--For purposes
of providing recovery assistance under this paragraph, the
Administrator shall permit small business development center
personnel to use any site or facility designated by the
Administration for use for such purpose.''.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Small Business Disaster Recovery Assistance Improvements Act of 2006
Bridge Loans and Grants: For future major disasters, the
bill provides the SBA Administrator the authority to make up
to $150,000 in emergency bridge loans or $25,000 in emergency
grants to affected small businesses in a declared disaster
area. The bridge loans and grants would allow businesses to
make payroll, begin making repairs, and address other
immediate needs while they are awaiting insurance payouts or
SBA disaster loans. As part of receiving these bridge loans
or grants, affected businesses would be required to seek
technical assistance.
State Bridge Loan Guarantee: This bill requires that the
SBA Administrator issue guidelines on an SBA-approved State
bridge loan program for future disasters. Once the guidelines
are issued, states may then submit their bridge loan programs
for approval to receive SBA guarantee assistance on bridge
loans in the event of a disaster. The program rewards states
that are prepared well-before future disasters strike and
could be in place before the end of the current Hurricane
season.
Expedited 7(a) Disaster Loans: Many affected businesses in
the Gulf Coast had repaid previous SBA loans yet despite
being in good standing with the SBA, were required to wait
months for disaster loan decisions. Other affected businesses
were major sources of employment in their areas or could
provide substantive assistance to recovery efforts but were
also made to wait months for SBA loans. This bill provides
expedited SBA disaster loans to businesses that are in good
standing with the SBA or those who can provide unique
assistance to recovery efforts. These expedited loans would
jump-start impacted economies, get vital capital to
businesses, and retain essential jobs following future
disasters.
Increased Caps on Disaster Loans: The bill would raise the
cap on business Disaster Loans from $1.5 million to $2.25
million. It would also raise the cap on Personal Property
homeowner disaster loans from $40,000 to $50,000 and the cap
on Real Property homeowner disaster loans from $200,000 to
$250,000.
Lender Assistance for Loss Verification/Loan Processing:
The bill gives the Administrator permanent authority to enter
into agreements with local banks and other lenders to help
address the SBA loss verification and loan processing backlog
for future disasters.
Increased Collateral Requirements: Currently, the SBA
cannot disburse more than $10,000 on an approved loan before
requiring additional collateral. This is to limit the loss to
the SBA in the event that a loan defaults, but is an added
protection for the SBA because before loans are approved; the
SBA reviews the borrower's ability to repay the loan in
question. To help loan disbursement for future disasters, the
bill would increase this collateral requirement to $20,000 to
borrowers who have been approved for SBA disaster loans.
Increased Disaster Loan Caps for Catastrophic Regional or
National Disaster: The bill provides that, for a disaster
designated by the Secretary of Homeland Security as a
catastrophic regional or national disaster, that SBA
Administrator may increase the maximum Disaster Loan amount
to $10 million.
Additional Authority for SBA District Offices: Following
Hurricanes Katrina and Rita, the SBA struggled to handle
increased loan volume created by the disasters. Months after
Katrina first hit, the SBA authorized District Offices to
process disaster loans, which greatly reduced the existing
loan backlog in the span of a month. For major future
disasters, the bill authorizes the Administrator to allow
District Offices to process all business disaster loans.
Small Business Development Center Assistance: The bill
addresses many problems experienced by Gulf Coast Small
Business Development Centers (SBDCs) following Hurricanes
Katrina and Rita. First, these SBDCs had to apply for
multiple portability grants and then had to wait months for
this funding. This bill allows the Administrator to waive the
$100,000 cap on SBDC portability grants following a disaster
which would allow SBA to quickly provide more funds to SBDCs,
rather than requiring them to apply for multiple portability
grants. The bill also allows other SBDCs to provide
assistance in declared disaster areas by allowing them to
travel beyond their traditional geographic boundaries.
Lastly, since many Gulf Coast SBDCs had trouble accessing
Federal Disaster Recovery Centers to provide business
counseling, which caused extended delays in business
counseling services, the bill directs the SBA Administrator
to permit SBDC staff into these recovery centers for future
disasters.
Improved SBA Accountability: The bill directs the SBA, for
future major disasters, to provide a monthly report to
Congress on the disaster loan program (loan volume, loan
averages, funding available, etc.) to prevent the SBA
Disaster Loan program from running out of money.
Loans to Non-Profits: Allows SBA to make loans to non-
profits that are located or operating in a disaster area.
Full-Time Disaster Planning Staff: The SBA had neither a
comprehensive disaster response plan nor full-time planning
staff in place for Hurricane Katrina. As a result, the SBA's
disaster response was plagued by mismanagement, delays, and a
lack of flexibility which left borrowers waiting between two
to four months for initial loss inspections and four to eight
months for decisions on their loan applications. As part of
the recent Hurricane Supplemental Appropriations bill, SBA
was tasked with drafting up a comprehensive disaster response
plan but they still do not have a full-time planner on board
to ensure that this plan is implemented or that it is updated
following future disasters. This bill directs the SBA to hire
a full-time disaster planner to maintain this disaster
response plan and to assist with SBA disaster preparedness
for future disasters.
______
By Mr. NELSON of Florida:
S. 3666. A bill to amend the Florida National Forest Land Management
Act of 2003 to authorize the conveyance of an additional tract of
National Forest System land under that Act, and for other purposes; to
the Committee on Energy and Natural Resources.
Mr. NELSON of Florida. Mr. President, I rise today to introduce
legislation that helps the U.S. Forest Service protect sensitive and
precious forest by selling developed land in Leon County, FL, in order
to purchase at-risk land in the heart of our national forests.
Specifically, this bill allows for the sale of tract W-1979, which is
114 acres in Tallahassee, the proceeds of which are specifically
designated to purchase private inholdings in the Apalachicola National
Forest. The Forest Service believes that W-1979 has lost its national
forest character and is unmanageable. The land will be sold to Leon
County, where it will help the continued advancement of Blueprint 2000,
a series of community initiatives to improve Tallahassee and Leon
County. By selling this land on the outskirts of the Apalachicola
National Forest, the U.S. Forest Service can acquire precious land deep
in the forest that could be lost to development.
This legislation also gives the U.S. Forest Service in Florida the
same flexibility to manage lands and capital that it has in many other
states. Previously, whenever National Forest land was sold, the funds
could only be used to purchase more land, while many important
infrastructure projects went undone. With passage of this bill,
proceeds only from the sale of ``non-green'' lands can go towards
capital improvements, such as administrative facilities that help the
Forest Service manage the Ocala, Apalachicola and Osceola National
Forests. These non-green lands have already been developed with urban
improvements, and no longer align with the goals of the U.S. Forest
Service.
Congressmen Crenshaw and Boyd have introduced similar legislation in
the House of Representatives. I hope that we can quickly pass these
bills and help Leon County and the Forest Service.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3666
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
[[Page S7561]]
SECTION 1. CONVEYANCES UNDER FLORIDA NATIONAL FOREST LAND
MANAGEMENT ACT OF 2003.
(a) Additional Conveyance Authorized.--Subsection (b) of
section 3 of the Florida National Forest Land Management Act
of 2003 (Public Law 108-152; 117 Stat. 1919) is amended--
(1) by striking ``and'' at the end of paragraph (17);
(2) by redesignating paragraph (18) as paragraph (19);
(3) by inserting after paragraph (17) the following new
paragraph:
``(18) tract W-1979, located in Leon County consisting of
approximately 114 acres, within T. 1 S., R. 1 W., sec.25;
and''; and
(4) in paragraph (19), as so redesignated, by striking
``(17)'' and inserting ``(18)''.
(b) Additional Use of Proceeds.--Paragraph (2) of
subsection (i) of such section (117 Stat. 1921) is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) acquisition, construction, or maintenance of
administrative improvements for units of the National Forest
System in the State.''.
(c) Limitations on Use of Proceeds.--Subsection (i) of such
section is further amended by adding at the end the following
new paragraphs:
``(3) Geographical and use restriction for certain
conveyance.--Notwithstanding paragraph (2), proceeds from the
sale or exchange of the tract described in subsection (b)(18)
shall be used exclusively for the purchase of inholdings in
the Apalachicola National Forest.
``(4) Restriction on use of proceeds for administrative
improvements.--Proceeds from any sale or exchange of land
under this Act may be used for administrative improvements,
as authorized by paragraph (2)(C), only if the land
generating the proceeds was improved with infrastructure.''.
______
By Mr. FRIST (for himself, Mr. Lugar, Mr. Inouye, and Mr.
Brownback):
S. 3667. A bill to promote nuclear nonproliferation in North Korea;
to the Committee on Foreign Relations.
Mr. FRIST. Mr. President, last week, on the fourth of July, a day
when Americans across the Nation were outside barbecuing, watching
fireworks, and celebrating the 230th anniversary of our independence,
North Korea launched seven long- and medium-range missiles into the Sea
of Japan.
One of the missiles, the Taepodong-2, has a potential range of
approximately 9,000 miles--placing the United States well within reach
of attack by North Korea.
Kim Jong II's regime took this dangerous and provocative action
despite repeated warnings not to do so from the United States, its
close neighbors and participants in the six-party talks, and many
others in the international community.
Last week's missile launches reminded us yet again of the threat
posed by Kim Jong II's regime.
North Korea's pursuit of nuclear weapons and its possession of long-
range missiles that could potentially strike our Nation is a grave
threat to the security of the American people--and to peace and
stability in East Asia.
Since November 2005, North Korea has boycotted the six-party talks
aimed at ending the regime's illicit nuclear weapons program. The
combination of nuclear weapons and long-range missiles capable of
threatening the American people is a threat that the United States
should not tolerate.
For these reasons, I rise this morning to introduce the North Korea
Nonproliferation Act of 2006. This legislation will add North Korea to
the list of countries currently covered by the Iran and Syria
Nonproliferation Act.
Under this bill, the President would be required to submit a report
to Congress every 6 months listing all foreign persons believed to have
transferred to or acquired from North Korea materials that could
contribute to the production of missiles, nuclear weapons, and other
weapons of mass destruction.
This legislation also authorizes the President to impose sanctions on
all foreign persons identified on this list.
These sanctions include prohibitions on U.S. Government procurement
from such persons and on the issuance of U.S. Government export
licenses for exports to such persons.
Ultimately, the bill will lead to U.S. sanctions on foreign persons
and foreign companies that transfer missile- and WMD-related items to
North Korea, or that buy such items from North Korea.
The U.S. is already doing this with respect to transfers of these
items to and from Iran and Syria under the Iran and Syria
Nonproliferation Act. The time has come for us to treat transfers of
these items to North Korea no less seriously than we already treat
transfers of these same items to Iran and Syria.
We currently are working with our allies and partners at the U.N.
Security Council to send a strong and unified message to the North
Koreans that their latest provocations are unacceptable.
Japan has introduced a resolution that would prohibit the very same
transfers to North Korea that this bill would sanction.
However, some at the UN, particularly China, are opposing the
Japanese resolution. In fact, China and Russia have introduced a
competing resolution that does not prohibit the transfer to North Korea
of sensitive items that could contribute to that country's weapons
programs--which is the critical element of the resolution that has been
offered by Japan and supported by the U.S., the U.K., France, and
others.
This bill will reinforce the crucial elements of Japan's Security
Council resolution if that resolution is adopted. It will also serve as
an alternative to that resolution in the event that China vetoes or
otherwise sidetracks it.
The United States cannot allow Kim Jong II and the North Korean
regime to obtain additional materials for its WMD and missile programs.
If the U.N. Security Council fails to act, the United States must
fulfill its responsibility to protect the American homeland from the
North Korean threat.
These items in the hands of Kim Jong II pose a direct threat to the
American people, the people of the region, and peace and security in
East Asia.
If we are in earnest about protecting the American homeland, then it
is imperative that we prevent the North Korean regime from acquiring
these dangerous materials. I thank Chairman Lugar, as well as Senators
Inouye and Brownback, for cosponsoring this bill, and I urge the rest
of my Senate colleagues to support it.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3667
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 ``North Korea Nonproliferation
Act of 2006''.
SEC. 2. STATEMENT OF POLICY.
In view of North Korea's manifest determination to
proliferate missiles, nuclear weapons, and other weapons of
mass destruction in violation of international norms and
expectations, it should be the policy of the United States to
impose sanctions on persons who transfer such weapons, and
goods and technology related to such weapons, to and from
North Korea in the same manner as persons who transfer such
items to and from Iran and Syria currently are sanctioned
under United States law.
SEC. 3. AMENDMENTS TO IRAN AND SYRIA NONPROLIFERATION ACT.
(a) Reporting Requirements.--Section 2 of the Iran and
Syria Nonproliferation Act (Public Law 106-178; 50 U.S.C.
1701 note) is amended--
(1) in the heading, by inserting ``, NORTH KOREA,'' after
``IRAN''; and
(2) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``Iran, or'' and inserting ``Iran,''; and
(ii) by inserting after ``Syria'' the following: ``, or on
or after January 1, 2006, transferred to or acquired from
North Korea'' after ``Iran''; and
(B) in paragraph (2), by inserting ``, North Korea,'' after
``Iran''.
(b) Conforming Amendments.--Such Act is further amended--
(1) in section 1, by inserting ``, NORTH KOREA,'' after
``IRAN'';
(2) in section 5(a), by inserting ``, North Korea,'' after
``Iran'' both places it appears; and
(3) in section 6(b)--
(A) in the heading, by inserting ``, North Korea,'' after
``Iran''; and
(B) by inserting ``, North Korea,'' after ``Iran'' each
place it appears.
SEC. 4. SENSE OF CONGRESS ON INTERNATIONAL COOPERATION.
Congress urges all governments concerned about the threat
of proliferation involving North Korea to impose measures on
persons involved in such proliferation that are similar to
those imposed by the United States Government pursuant to the
Iran, North
[[Page S7562]]
Korea, and Syria Nonproliferation Act, as amended by this
Act.
____________________