[Congressional Record Volume 152, Number 95 (Wednesday, July 19, 2006)]
[Senate]
[Pages S7922-S7928]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BOND:
S. 3685. A bill to establish a grant program to provide vision care
to children, and for other purposes; to the Committee on Health,
Education, Labor, and Pensions.
Mr. BOND. Mr. President, children endure a lot. They cannot always
tell us what is wrong. Often they do not know themselves. So it takes a
special person to work with young people and help identify their
problems. Every child deserves the opportunity to reach their full
potential, but it takes more than a bookbag full of pencils, paper,
books and rulers to equip children with the tools necessary to succeed
in school.
The most important tool kids will take to school is their eyes. Good
vision is critical to learning. Eighty percent of what kids learn in
their early school years is visual. Unfortunately, we overlook that
fact sometimes. According to the CDC only one in three children receive
any form of preventive vision care before entering school. That means
many kids are in school right now with an undetected vision problem.
One in four children has a vision problem that can interfere with
learning. Some children are even labeled ``disruptive'' or thought to
have a learning disability when the real reason for their difficulty is
an undetected vision problem.
Without any vision care, some of our children will continue to fall
through the cracks. I sympathize with these kids because I suffer from
permanent vision loss in one eye as a result of undiagnosed Amblyopia
in childhood. Amblyopia is the No. 1 cause of vision loss in young
Americans. If discovered and treated early, vision loss from Amblyopia
can be largely prevented. Had I been identified and treated before I
entered school, I could have avoided a lifetime of vision loss. Parents
are not always aware that their child may suffer from a vision problem.
By educating parents on the importance of vision care and recognizing
signs of visual impairment we can help children avoid unnecessary
vision loss.
To ensure that children get the vital vision care that they need to
succeed, today I am introducing the Vision Care for Kids Act of 2006
which will establish a grant program to complement and encourage
existing state efforts to improve children's vision care. More
specifically, grant funds will be used to: (1) provide comprehensive
eye exams to children that have been previously identified as needing
such services; (2) provide treatment or services necessary to correct
vision problems identified in that eye exam; and (3) develop and
disseminate educational materials to recognize the signs of visual
impairment in children for parents, teachers, and health care
practitioners.
We need to do this. We must improve vision care for children to
better equip them to succeed in school and in life. The Vision Care for
Kids Act, endorsed by the American Academy of Ophthalmology, American
Optometric Association, and Vision Council of America, will make a
difference in the lives of children across the country.
______
By Mr. McCAIN (for himself and Mr. Graham):
S. 3688. A bill to preserve the Mount Soledad Veterans Memorial in
San Diego, California, by providing for the immediate acquisition of
the memorial by the United States; to the Committee on Energy and
Natural Resources.
Mr. McCAIN. Mr President, today I am introducing legislation to
preserve the Mount Soledad Veterans Memorial in San Diego, CA. I am
pleased to be joined in this effort by Senator Graham.
Since 1913, a series of crosses have stood on top of Mount Soledad,
property owned by the city of San Diego. In April of 1954, the site was
designated to commemorate the sacrifices made by members of the Armed
Forces who served in World War II, as well as the Korean war.
In 1989, one individual filed suit against the city claiming that the
display of the cross by he city was unconstitutional and, therefore,
violated his civil rights. In 1991, a Federal judge issued an
injunction prohibiting the permanent display of the cross on city
property. Since that time, the city has repeatedly tried to divest
itself of the property through sale or donation. But the plaintiff
continued to mount legal challenges to every attempted property
transfer--revealing that his true objection is not to the city's
display of the cross, but to the cross itself. The legal wrangling over
this memorial continues today.
The Mount Soledad Memorial is a remarkably popular landmark. On two
different occasions, the voters of San Diego passed, by votes of 76
percent, ballot measures designed to transfer the property to entities
that could maintain it.
I do not believe that the Mount Soledad cross violates the
Constitution. Consequently, I do not believe there is just cause for
removing it from its position as the centerpiece of the
[[Page S7923]]
Soledad Veterans Memorial. Therefore, given the many years of legal
disputes regarding this issue, I believe it is past time it is
resolved.
The bill I am introducing would bring the Mount Soledad cross under
the control of the Federal Government, and specifically the Department
of Defense. The process set forth in the bill is consistent with
analysis provided by the Department of Justice's Office of Legislative
Affairs in a recent letter to the chairman of the House Armed Services
Committee. In that letter, the OLA stated, ``we would . . . point out
that Congress could enact the necessary authority [to acquire the Mount
Soledad Memorial] through an immediate legislative taking. . .''
This bill would allow for the just compensation for the property in
question. It also would address the required maintenance for the
memorial and the surrounding property through a memorandum of
understanding between the Secretary of Defense and the Mount Soledad
Memorial Association. The minimal financial commitment required in this
legislation will ensure the endurance of this memorial which serves as
a reminder of the hundreds of thousands of men and women who made
enormous sacrifices when our country called upon them.
I encourage my colleagues to join me in supporting this legislation,
which will ensure the preservation of an important tribute to our men
and women of the Armed Forces.
______
By Mr. JEFFORDS:
S. 3689. A bill to establish a national historic country store
preservation and revitalization program; to the Committee on
Environment and Public Works.
Mr. JEFFORDS. Mr. President, I have long been a proponent of measures
that support historic preservation and economic development. In keeping
with that tradition, I rise today to introduce the National Historic
Country Store Preservation and Revitalization Act of 2006.
This bill establishes a national program to support historic country
store preservation and will aid in the revitalization of rural villages
and community centers nationwide.
For many Americans, the country store brings to mind days that have
since passed, before much of this country became stamped with shopping
malls and the ``big-box'' store. But for thousands of people living in
Vermont and for millions more living in rural communities across the
United States, a visit to the local country store is a regular part of
one's daily life.
In my hometown of Shrewsbury, VT, the Pierce Store was the hub of our
small community when my wife Liz and I settled there in 1963. Run by
the four Pierce siblings--Marjorie, Glendon, Marion and Gordon--the
store was the place to go for a neighborly chat as much as for your
milk and butter. Unfortunately, the Pierce Store closed its doors some
years back and Shrewsbury lost a vital part of its identity.
Yet while some country stores have been forced to close their doors,
others have shown incredible resiliency.
They have survived floods and fires, overcome economic downturns, and
reformulated their inventories to meet modern needs. According to the
Vermont Grocers' Association, country stores account for an estimated
$55 million annually in retail sales in Vermont alone.
But with increased competition and additional costs to maintain aging
structures, today's remaining country store owners are hard-pressed to
overcome these unprecedented challenges.
My legislation authorizes the U.S. Economic Development
Administration to make grants to national, state and local agencies and
non-profit organizations to support historic country store preservation
efforts. In addition, the bill establishes a revolving loan fund. The
fund will be used for research, restoration work that will improve our
understanding of existing needs and provide the assistance required to
address them. The bill promotes the study of best practices for
preserving structures, improving profitability and promoting
collaboration among country store owners.
My legislation unites small business development and historic
preservation principles to sustain these invaluable community
institutions. I encourage my colleagues to join me in my efforts to
protect our rural heritage by preventing the further loss of our
Nation's historic country stores.
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. 3689
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 ``National Historic Country
Store Preservation and Revitalization Act of 2006''.
SEC. 2. FINDINGS.
Congress finds that--
(1) historic country stores are lasting icons of rural
tradition in the United States;
(2) historic country stores are valuable contributors to
the civic and economic vitality of their local communities;
(3) historic country stores demonstrate innovative
approaches to historic preservation and small business
practices;
(4) historic country stores are threatened by larger
competitors and the costs associated with maintaining older
structures; and
(5) the United States should--
(A) collect and disseminate information concerning the
number, condition, and variety of historic country stores;
(B) develop opportunities for cooperation among proprietors
of historic country stores; and
(C) promote the long-term economic viability of historic
country stores through the provision of financial assistance
to historic country stores.
SEC. 3. DEFINITIONS.
In this Act:
(1) Country store.--
(A) In general.--The term ``country store'' means a
structure independently owned and formerly or currently
operated as a business that--
(i) sells or sold grocery items and other small retail
goods; and
(ii) is located in--
(I) an economically distressed area; or
(II) a nonmetropolitan area, as defined by the Secretary.
(B) Inclusion.--The term ``country store'' includes a
cooperative.
(2) Economically distressed area.--The term ``economically
distressed area'' means an area that meets 1 or more of the
criteria described in section 301(a) of the Public Works and
Economic Development Act of 1965 (42 U.S.C. 3161(a)).
(3) Eligible applicant.--The term ``eligible applicant''
means--
(A) a State department of commerce or economic development;
(B) a national or State nonprofit organization that--
(i) is described in section 501(c)(3), and exempt from
Federal tax under section 501(a), of the Internal Revenue
Code of 1986; and
(ii)(I) has experience or expertise, as determined by the
Secretary, in the identification, evaluation, rehabilitation,
or preservation of historic country stores; or
(II) is undertaking economic and community development
activities;
(C) a national or State nonprofit trade organization that--
(i) is described in section 501(c)(3), and exempt from
Federal tax under section 501(a), of the Internal Revenue
Code of 1986; and
(ii) acts as a cooperative to promote and enhance country
stores; and
(D) a State historic preservation office.
(4) Fund.--The term ``Fund'' means the Historic Country
Store Revolving Loan Fund established under section 5(a).
(5) Historic country store.--The term ``historic country
store'' means a country store that--
(A) has operated at the same location for at least 50
years; and
(B) retains sufficient integrity of design, materials, and
construction to clearly identify the structure as a country
store.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Commerce, acting through the Assistant Secretary for
Economic Development.
SEC. 4. HISTORIC COUNTRY STORE PRESERVATION AND
REVITALIZATION PROGRAM.
(a) Establishment.--The Secretary shall establish a
historic country store preservation and revitalization
program--
(1) to collect and disseminate information on historic
country stores;
(2) to promote State and regional partnerships among
proprietors of historic country stores; and
(3) to sponsor and conduct research on--
(A) the economic impact of historic country stores in rural
areas, including the impact on unemployment rates and
community vitality;
(B) best practices to--
(i) improve the profitability of historic country stores;
and
(ii) protect historic country stores from foreclosure or
seizure; and
(C) best practices for developing cooperative organizations
that address the economic and historic preservation needs
of--
(i) historic country stores; and
(ii) the communities served by the historic country stores.
(b) Grants.--
[[Page S7924]]
(1) In general.--The Secretary may make grants to, or enter
into contracts or cooperative agreements with, eligible
applicants to carry out an eligible project under paragraph
(2).
(2) Eligible projects.--A grant under this subsection may
be made to an eligible applicant for a project--
(A)(i) to rehabilitate or repair a historic country store;
and
(ii) to enhance the economic benefit of the historic
country store to the communities served by the historic
country store;
(B) to identify, document, and conduct research on historic
country stores; and
(C) to develop and evaluate appropriate techniques or best
practices for protecting historic country stores.
(3) Requirements.--An eligible applicant that receives a
grant for an eligible project under paragraph (1) shall
comply with all applicable requirements for historic
preservation projects under Federal, State, and local law.
(4) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Environment and Public Works of the Senate and
the Committee on Transportation and Infrastructure of the
House of Representatives a report that--
(A) identifies the number of grants made under subsection
(b);
(B) describes the type of grants made under subsection (b);
and
(C) includes any other information that the Secretary
determines to be appropriate.
(c) Country Store Alliance Pilot Project.--
(1) In general.--The Secretary shall carry out a pilot
project in the State of Vermont under which the Secretary
shall conduct demonstration activities to preserve historic
country stores and the communities served by the historic
country stores, including--
(A) the collection and dissemination of information on
historic country stores in the State;
(B) the development of collaborative country store
marketing and purchasing techniques; and
(C) the development of best practices for historic country
store proprietors and communities facing transitions involved
in the sale or closure of a historic country store.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Environment and Public Works of the Senate and
the Committee on Transportation and Infrastructure of the
House of Representatives a report that--
(A) describes the results of the pilot project; and
(B) includes any recommended changes of the Secretary to
the program established under subsection (a), based on the
results of the pilot project.
SEC. 5. HISTORIC COUNTRY STORE REVOLVING LOAN FUND.
(a) Establishment.--Not later than 120 days after the date
of enactment of this Act, the Secretary of the Treasury shall
establish in the Treasury of the United States a revolving
fund, to be known as the ``Historic Country Store Revolving
Loan Fund'', consisting of--
(1) such amounts as are appropriated to the Fund under
subsection (b);
(2) \1/3\ of the amounts appropriated under section 8(a);
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--
(1) the amounts repaid on loans under section 6; and
(2) the amounts of the proceeds from the sales of notes,
bonds, obligations, liens, mortgages and property delivered
or assigned to the Secretary pursuant to loans made under
section 6.
(c) Expenditures From Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to provide loans under section 6.
(2) Administrative expenses.--An amount not exceeding 10
percent of the amounts in the Fund shall be available for
each fiscal year to pay the administrative expenses necessary
to carry out this Act.
(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. 6. LOANS FOR HISTORIC COUNTRY STORE REHABILITATION OR
REPAIR PROJECTS.
(a) In General.--Using amounts in the Fund, the Secretary
may make direct loans to eligible applicants for projects--
(1) to purchase, rehabilitate, or repair historic country
stores; or
(2) to establish microloan funds to make short-term, fixed-
interest rate loans to proprietors of historic country
stores.
(b) Applications.--
(1) In general.--To be eligible for a loan under this
section, an eligible applicant shall submit to the Secretary
a complete application for a loan that addresses the criteria
described in paragraph (2).
(2) Considerations for approval or disapproval.--In
determining whether to approve or disapprove an application
for a loan submitted under paragraph (1), the Secretary shall
consider--
(A) the demonstrated need for the purchase, construction,
reconstruction, or renovation of the historic country store
based on the condition of the historic country store;
(B) the age of the historic country store;
(C) the extent to which the project to purchase,
rehabilitate, or repair the historic country store includes
collaboration among historic country store proprietors and
other eligible applicants; and
(D) any other criteria that the Secretary determines to be
appropriate.
(c) Requirements.--An eligible applicant that receives a
loan for a project under this section shall comply with all
applicable standards for historic preservation projects under
Federal, State, and local law.
(d) Report.--Not later than 1 year after the date on which
the Fund is established under subsection (a), and every 2
years thereafter, the Secretary shall submit to the Committee
on Environment and Public Works of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives a report that--
(1) identifies--
(A) the number of loans provided under this section;
(B) the repayment rate of the loans; and
(C) the default rate of the loans; and
(2) includes any other information that the Secretary
determines to be appropriate.
SEC. 7. PERFORMANCE REPORT.
Any eligible applicant that receives financial assistance
under this Act shall, for each fiscal year for which the
eligible applicant receives the financial assistance, submit
to the Secretary a performance report that--
(1) describes--
(A) the allocation of the amount of financial assistance
received under this Act;
(B) the economic benefit of the financial assistance,
including a description of--
(i) the number of jobs retained or created; and
(ii) the tax revenues generated; and
(2) addresses any other reporting requirements established
by the Secretary.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to
carry out this Act, $50,000,000 for the period of fiscal
years 2006 through 2011, to remain available until expended.
(b) Country Store Alliance Pilot Project.--Of the amount
made available under subsection (a), not less than $250,000
shall be made available to carry out section 4(c).
______
By Mr. KERRY (for himself, Ms. Snowe, Mr. Akaka, and Mr. Talent):
S. 3691. A bill to amend the Small Business Act, to reform and
reauthorize the National Veterans Business Development Corporation, and
for other purposes; to the Committee on Small Business and
Entrepreneurship.
Mr. KERRY. Mr. President, as the ranking member of the Committee on
Small Business and Entrepreneurship, I am joined today by my colleagues
Senators Snowe, Akaka, and Talent to introduce the Veterans Corporation
Reauthorization Act of 2006.
This legislation is the product of lengthy bipartisan discussions
about how we might be able to restore and revitalize the mission of The
Veterans Corporation. Established in 1999 through Public Law 106-50,
The National Veterans Business Development Corporation, commonly known
as The Veterans Corporation, TVC, is charged with the task of assisting
the men and women who have served this country in the military by
helping them create and expand their own businesses. There are over 5
million veteran entrepreneurs across the country--over 550,000 in the
Commonwealth of Massachusetts alone--and approximately 200,000 veterans
are expected to retire in 2006. Additionally, 2004 data from the Small
Business Administration, SBA, shows that approximately 22 percent of
veterans in the U.S. household
[[Page S7925]]
population purchased or started a new business, or were considering
doing so. This legislation ensures that necessary steps are taken to
continue fostering entrepreneurship and business ownership among a
veterans population that can clearly benefit from such assistance
nationwide.
My distinguished colleagues and I feel that TVC is an organization
worth reinvigorating. In fiscal year 2005, TVC reached out to over
18,000 current and potential veteran entrepreneurs, and opened three
Veteran Business Resource Centers in Boston, MA; Flint, MI; and San
Diego, CA, in addition to the flagship location in St. Louis, MO. In my
home State of Massachusetts, TVC has close to 100 business owners and
over 400 registered members.
Yet, in recent years, TVC has come under criticism for its overall
performance. Many within the veterans community, and indeed some of my
colleagues in Congress, do not believe TVC has produced results that
warrant the millions of dollars in funding the organization has
received. I understand this sentiment, and share in the desire to
ensure taxpayer dollars are well-spent. This was among my primary
concerns as we approached reauthorizing TVC. However, my colleagues and
I came to the conclusion that by reauthorizing the organization,
Congress could ensure greater oversight and accountability on the part
of TVC and its use of Federal dollars--ultimately resulting in better
service for our veterans. This is exactly what the Veterans Corporation
Reauthorization Act of 2006 aims to do.
This legislation builds on the preexisting TVC program in order to
expand its reach nationwide, so that more veterans can have the tools
they need to realize their entrepreneurial aspirations. Through a
series of provisions that target the weaknesses of TVC and develop
sound policies to strengthen them and clarify the organization's
mission within the veterans community it serves, this bill makes
several key improvements to the corporation.
In its inception, we envisioned that TVC would establish centers
across the country to help assist veteran entrepreneurs with their
small business needs. Unfortunately, the organization has shifted its
primary focus toward the development of online programs in recent
years. Although it is a good thing that TVC has four centers across the
country, clearly more needs to be done to build upon these and develop
a substantial number of new centers and networking opportunities for
veterans nationwide. That is why this bill clarifies the role TVC
should have in local communities. In rewriting the purpose of TVC in
this capacity, our legislation explicitly states that the organization
should be actively working to form more centers in order to build and
create a national network linking veterans to the information,
counseling, and assistance they need in starting and maintaining their
businesses.
A recurring frustration that echoes from many veterans nationwide is
that they are often unable to gain access to the Federal contracting
and procurement realm. It is downright shameful that so many servicemen
and women feel as though a government they fought so hard to protect
all but abandons them--continuing to award myriad contracts to big
businesses. By law, the Federal Government has a 3-percent contracting
goal for service-disabled veterans. However, in 2004 only 0.38 percent
of government contracts were awarded to service-disabled veterans.
Patterns such as this are all too common--replaying themselves year in
and year out. Clearly, more ought to be done to help those veterans who
are looking to gain access to Federal contracts. Given this, our
legislation directs TVC to assist veterans, particularly service-
disabled veterans, with Federal contracting opportunities.
We received numerous complaints from veterans about the way the
administration has chosen to interpret the current law such that it
severely limits Congress's role in appointing board members. In this,
TVC had experienced significant staffing changes on its Board of
Directors since 1999. Our legislation ensures that the President works
with the chair and ranking members of the Senate Committee on Small
Business and Entrepreneurship and/or the Senate Committee on Veterans
Affairs, and their House counterparts, to appoint nine members of the
board with 4-year terms. Additionally, our legislation dictates that in
this nomination process, the President and Congress consult with
veterans groups nationwide. Furthermore, the Veterans Corporation
Reauthorization Act of 2006 stipulates that no more than five of the
nine board members be from the same political party and that all have
business experience, knowledge of veterans issues, as well as the
wherewithal to raise private funds for TVC. I firmly believe that this
provision will ensure that TVC has top-notch board members, who can
offer the best service to those who have already served our country.
This legislation authorizes $2 million in Federal funds annually from
fiscal years 2007 through 2009. Additionally, because TVC was
originally to become a self-sustaining entity, our bill requires that
for all Federal dollars received, the organization match those dollar
amounts with private funds. Since its authorization expired in 2004,
TVC's original matching requirement vanished, and the organization
instead received Federal funding without any private fundraising
requirement. We felt that this matching requirement needed to be
reinstated to better enable TVC to become fully self-sustaining. Thus,
our legislation forces TVC to function in a way similar to the SBA's
Women's Business Centers and Small Business Development Centers. The
leveraging of Federal dollars enables TVC to expand its donor base so
that it can achieve the goal of self-sustainability. Additionally, it
has come to our attention through conversations with the veterans
community, that servicemen and women are being charged high fees for
using TVC services. That was never the intention when this program was
conceptualized, and it is wrong for TVC to earn its private funds on
the backs of veterans. We fix that in this bill by limiting the amount
of non-Federal funds that TVC can raise in the form of fees to veterans
to no more than 33 percent of the organization's total revenue.
In addition to the matching-fund requirement within our bill, it also
requires that TVC develop a comprehensive plan for privatization within
6 months of the enactment of the Veterans Corporation Reauthorization
Act of 2006. To ensure that TVC is in full compliance with the
provisions in our bill, and that its self-sustaining plan demonstrates
a certain degree of feasibility, we have asked the Government
Accountability Office to conduct an audit of the organization no later
than one year after date of enactment.
Finally, this bill extends the SBA's Veterans Advisory Committee,
which the administration planned on terminating as of this year.
Originally established through Public Law 106-50, this committee was to
advise and counsel the SBA Administrator and the agency's Associate
Administrator for Veterans' Business Development on the entrepreneurial
needs and concerns of veteran small business owners and to monitor
public and private plans that have the potential to impact veteran
entrepreneurs from obtaining capital, credit, and to access markets.
Additionally, it was to roll into TVC by September 30, 2004. However,
when this date came around, it was clear that TVC was in no position to
take on more responsibilities. Thus, Congress reauthorized the Veterans
Advisory Committee and postponed the transfer date until this year. As
the deadline closes in, we thought it best to reauthorize Veterans
Advisory Committee and again postpone the transfer.
America's veterans and service-disabled veteran communities deserve a
resource to assist them in bringing their entrepreneurial ideas into
fruition. Nationwide, more and more veterans are turning to small
businesses as a means of carving out their piece of the American dream,
despite the many barriers they face upon reentering civilian life. The
strengthening and revitalization of TVC that this legislation proposes,
is one way that Congress can help in this effort and ensure greater
effectiveness and accountability within the organization in the years
ahead.
I urge my colleagues to join in support of this bipartisan Veterans
Corporation Reauthorization Act of 2006--because in helping TVC
succeed, we are ultimately helping veterans succeed and prosper.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
[[Page S7926]]
S. 3691
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 ``Veterans Corporation
Reauthorization Act of 2006''.
SEC. 2. PURPOSES OF THE CORPORATION.
(a) Purposes.--Section 33(b) of the Small Business Act (15
U.S.C. 657c(b)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) to establish and maintain a national network of
information and assistance centers for use by veterans and
the public by--
``(A) providing information regarding small business
oriented employment or development programs;
``(B) providing access to studies and research concerning
the management, financing, and operation of small business
enterprises, small business participation in international
markets, export promotion, and technology transfer;
``(C) providing referrals to business analysts who can
provide direct counseling to veteran small business owners
regarding the subjects described in this section;
``(D) serving as an information clearinghouse for business
development and entrepreneurial assistance materials, as well
as other veteran assistance materials, as deemed necessary,
that are provided by Federal, State and local governments;
and
``(E) providing assistance to veterans and service-disabled
veterans in efforts to gain access to Federal prime contracts
and subcontracts; and''; and
(2) in paragraph (2), by striking ``including service-
disabled veterans'' and inserting ``particularly service-
disabled veterans''.
SEC. 3. MANAGEMENT OF THE CORPORATION.
(a) Appointments to the Board.--Section 33(c)(2) of the
Small Business Act (15 U.S.C. 657c(c)(2)) is amended to read
as follows:
``(2) Appointment of voting members.--
``(A) In general.--The President shall, after considering
recommendations proposed under subparagraph (B), appoint the
9 voting members of the Board, all of whom shall be United
States citizens, and not more than 5 of whom shall be members
of the same political party.
``(B) Recommendations.--Recommendations shall be submitted
to the President for appointments under this paragraph by the
chairman or ranking member (or both) of the Committee on
Small Business and Entrepreneurship or the Committee on
Veterans Affairs (or both) of the Senate or the Committee on
Small Business or the Committee on Veterans Affairs (or both)
of the House of Representatives.
``(C) Consultation with veteran organizations.--
Recommendations under subparagraph (B) shall be made after
consultation with such veteran service organizations as are
determined appropriate by the member of Congress making the
recommendation.
``(D) Considerations.--Consideration for eligibility for
membership on the Board shall include business experience,
knowledge of veterans' issues, and ability to raise funds for
the Corporation.
``(E) Limitation on internal recommendations.--No member of
the Board may recommend an individual for appointment to
another position on the Board.''.
(b) Terms.--Section 33(c)(6) of the Small Business Act (15
U.S.C. 657c(c)(6)) is amended to read as follows:
``(6) Terms of appointed members.--
``(A) In general.--Each member of the Board of Directors
appointed under paragraph (2) shall serve for a term of 4
years.
``(B) Unexpired terms.--Any member of the Board of
Directors appointed to fill a vacancy occurring before the
expiration of the term for which the member's predecessor was
appointed shall be appointed only for the remainder of the
term. A member of the Board of Directors may not serve beyond
the expiration of the term for which the member is
appointed.''.
(c) Removal of Board Members.--Section 33(c) of the Small
Business Act (15 U.S.C. 657c(c)) is amended by adding at the
end the following:
``(12) Removal of members.--With the approval of a majority
of the Board of Directors and the approval of the chairmen
and ranking members of the Committee on Small Business and
Entrepreneurship and the Committee on Veterans Affairs of the
Senate, the Corporation may remove a member of the Board of
Directors that is deemed unable to fulfill his or her duties,
as established under this section.''.
SEC. 4. TIMING OF TRANSFER OF ADVISORY COMMITTEE DUTIES.
Section 33(h) of the Small Business Act (15 U.S.C. 657c(h))
is amended by striking ``October 1, 2006'' and inserting
``October 1, 2009''.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
Section 33(k) of the Small Business Act (15 U.S.C.
657c(k)(1)) is amended--
(1) in paragraph (1)--
(A) by inserting ``, through the Office of Veteran's
Business Development of the Administration,'' after ``to the
Corporation''; and
(B) by striking subparagraphs (A) through (D) and inserting
the following:
``(A) $2,000,000 for fiscal year 2007;
``(B) $2,000,000 for fiscal year 2008; and
``(C) $2,000,000 for fiscal year 2009.'';
(2) by striking paragraph (2) and inserting the following:
``(2) Matching requirements.--
``(A) In general.--The Administration shall require, as a
condition of any grant (or amendment or modification thereto)
made to the Corporation under this section, that a matching
amount (excluding any fees collected from recipients of such
assistance) equal to the amount of such grant be provided
from sources other than the Federal Government.
``(B) Limitation.--Not more than 33 percent of the total
revenue of the Corporation, including the funds raised for
use at the Veteran's Business Resource Centers, may be
acquired from fee-for-service tools or direct charge to the
veteran receiving services, as described in this section,
except that the amount of any such fee or charge may not
exceed the amount of such fee or charge in effect on the date
of enactment of the Veterans Corporation Reauthorization Act
of 2006.
``(C) Mission-related limitation.--The Corporation may not
engage in revenue producing programs, services, or related
business ventures that are not intended to carry out the
mission and activities described in section (b).
``(D) Return to treasury.--Funds appropriated under this
section that have not been expended at the end of the fiscal
year for which they were appropriated shall revert back to
the Treasury.''; and
(3) by striking paragraph (3).
SEC. 6. PRIVATIZATION.
Section 33 of the Small Business Act (15 U.S.C. 657c) is
amended--
(1) by striking subsections (f) and (i); and
(2) by redesignating subsections (g), (h), (j), and (k) as
subsections (f) through (i), respectively; and
(3) by adding at the end the following:
``(j) Privatization.--
``(1) Development of plan.--Not later than 6 months after
the date of enactment of the Veterans Corporation
Reauthorization Act of 2006, the Corporation shall develop,
institute, and implement a plan to raise private funds and
become a self-sustaining corporation.
``(2) GAO audit and report.--
``(A) Audit.--The Comptroller General of the United States
shall conduct an audit of the Corporation, in accordance with
generally accepted accounting principles and generally
accepted audit standards.
``(B) Inclusions.--The audit required by this paragraph
shall include--
``(i) an evaluation of the efficacy of the Corporation in
carrying out the purposes under section (b); and
``(ii) an analysis of the feasibility of the sustainability
plan developed by the Corporation.
``(C) Report.--Not later than 1 year after the date of
enactment of the Veterans Corporation Reauthorization Act of
2006, the Comptroller General shall submit a report on the
audit conducted under this paragraph to the Committee on
Small Business and Entrepreneurship and the Committee on
Veterans Affairs of the Senate and to the Committee on Small
Business and the Committee on Veterans Affairs of the House
of Representatives.''.
______
By Mr. OBAMA (for himself, Mr. Lugar, Mr. Biden, Mr. Smith, Mr.
Bingaman, Mr. Harkin, Mr. Coleman, and Mr. Durbin):
S. 3694. A bill to increase fuel economy standards for automobiles,
and for other purposes; to the Committee on Finance.
Mr. OBAMA. Mr. President, 33 years ago, this Nation faced a crisis
that touched every American. In 1973, in the shadow of a war against
Israel, the Arab nations of OPEC decided to embargo shipments of crude
oil to the West.
The economic effects were devastating. For American drivers, the
price at the gas pump rose from a national average of 38.5 cents per
gallon in May 1973 to 55.1 cents per gallon in June 1974. The stock
market fell, and countries across the world faced terrible cycles of
inflation and recession that lasted well into the 1980s.
Lawmakers in Washington reacted by calling for a nationwide daylight
savings time and a national speed limit. They established a new
Department of Energy that eventually created a strategic petroleum
reserve. Perhaps most important, Congress enacted the Corporate Average
Fuel Economy standards, or CAFE, the first-ever requirements for
automakers to improve gas mileage on the vehicles we drive.
At the time, auto executives protested, saying there was no way to
increase fuel economy without making cars smaller. One company
predicted that Americans would all be driving sub-compacts as a result
of CAFE. But CAFE did work, and under the direction of Congress, the
National Highway Traffic Safety Administration, NHSTA, nearly doubled
the average gas mileage of cars from 14 miles per gallon in 1976 to
27.5 mpg for cars in 1985. Today, CAFE standards save us about 3
million barrels of oil per day, making it the most successful energy-
saving measure ever adopted.
[[Page S7927]]
Now 30 years later, Americans again are feeling the pain at the pump.
The price of oil has reached $78 a barrel, and Americans are paying
more than $3.00 a gallon for gas. America's 20-million-barrel-a-day
habit costs our economy $800 million a day, or $300 billion annually.
Because we import 60 percent of our oil, much of it from the Middle
East, our dependence on oil is also a national security issue as well.
Al-Qaida knows that oil is America's Achilles heel. Osama bin Laden has
urged his supporters to ``Focus your operations on oil, especially in
Iraq and the gulf area, since this will cause them to die off.''
At a time when the energy and security stakes couldn't be higher,
CAFE standards have been stagnant. In fact, because of a long-standing
deadlock in Washington, CAFE standards that initially increased so
quickly have remained stagnant for the last 20 years.
Since 1985, efforts to raise the CAFE standard have been stymied by
opponents who have argued that Congress does not possess the expertise
to set specific benchmarks and that an inflexible congressional mandate
would result in the production of less safe cars and a loss of American
jobs. This has been a bureaucratic logjam that has ignored
technological innovations in the auto industry and crippled our ability
to increase fuel efficiency.
To attempt to break this two-decade-long deadlock and start the U.S.
on the path towards energy independence, I have joined with Senators
Lugar, Biden, Smith, Bingaman, Harkin, Coleman, and Durbin to introduce
the Fuel Economy Reform Act of 2006. This bill would set a new course
by establishing regular, continual, and incremental progress in miles
per gallon, targeting 4 percent annually, but preserving NHTSA
expertise and flexibility on how to meet those targets.
Over the past 20 years, NHTSA's efforts to improve fuel economy have
been encumbered with loopholes and resistance. With this bill, CAFE
standards would increase by 4 percent every year unless NHTSA can
justify a deviation in that rate by proving that the increase is
technologically unachievable, does not materially reduce the safety of
automobiles manufactured or sold in the U.S., or can prove it is not
cost-effective when comparing with the economic and geopolitical value
of a gallon of gasoline saved. We specifically define the grounds upon
which NHTSA can determine cost-effectiveness. By flipping the
presumption that has served as a barrier to action, we replace the
status quo of continued stagnation with steady, measured progress.
Under this system, if the 4 percent annualized improvement occurs
over ten years, this bill would save 1.3 million barrels of oil per
day--or 20 billion gallons of gasoline per year. If gasoline is just
$2.50 per gallon, consumers will save $50 billion at the pump in 2018.
By 2018, we would be cutting global warming pollution by 220 million
metric tons of carbon dioxide equivalent gases.
The Fuel Economy Reform Act also would provide fairness and
flexibility to domestic automakers by establishing different standards
for different types of cars. Currently, manufacturers have to meet
broad standards over their whole fleet of cars. This disadvantages
companies like Ford and General Motors that produce full lines of small
and large cars and trucks rather than manufacturers that only sell
small cars.
In order to enable domestic manufacturers to develop advanced-
technology vehicles, this legislation provides tax incentives to retool
parts and assembly plants. This will strengthen the U.S. auto industry
by allowing it to compete with foreign hybrid and other fuel efficient
vehicles. It is our expectation that NHTSA will use its enhanced
authority to bring greater market-based flexibility into CAFE
compliance by allowing the banking and trading of credits among all
vehicle types and between manufacturers.
Finally, the bill also would expand the tax incentives that encourage
consumers to buy advanced technology vehicles. The bill would lift the
current 60,000-per-manufacturer cap on buyer tax credits to allow more
Americans to buy ultra-efficient vehicles like hybrids.
By ending a 20-year stalemate on CAFE, the Fuel Economy Reform Act
will recapture the innovation that Congress and the auto industry
launched in response to the OPEC crisis. In the process, we will
safeguard our national security, protect our economy, reduce consumer
pain at the pump, and protect our climate, environment, and public
health. I urge my colleagues to join our bipartisan coalition and
support the Fuel Economy Reform Act.
______
By Mr. ROCKEFELLER (for himself, Mr. Schumer, and Mr. Leahy):
S. 3695. A bill to amend the Federal Food, Drug, and Cosmetic Ad to
prohibit the marketing of authorized generic drugs; to the Committee on
Health, Education, Labor, and Pensions.
Mr. ROCKEFELLER. Mr. President, I rise today with Senators Schumer
and Leahy to introduce an important piece of legislation for seniors,
individual with disabilities, children, and anyone who is taking a
brand name prescription drug with a generic equivalent. The bill we are
introducing today would outlaw the latest in a long line of loopholes
that brand name manufacturers have found to limit generic drug access
to the market.
Our legislation would prohibit brand name manufacturers from
introducing so-called ``authorized generics'' during the 180-day period
that Congress intended true generics to have exclusive market rights.
Some of my colleagues may be wondering what an ``authorized generic''
is.
An authorized generic drug is a brand name prescription drug produced
by the same brand manufacturer on the same manufacturing lines, yet
repackaged as a generic in order to confuse consumers and shut true
generics out of the market. This is a huge problem and one that is
becoming even more prevalent as patents on some of the best-selling
brand name pharmaceuticals start to expire.
Pravachol, Zocor and Zoloft have patents that have expired or will
expire this year. Together, these drugs account for approximately $9
billion in sales annually. In 2007, another top-selling brand name
drug, Norvasc, will lose its patent protection, followed by Advair the
following year.
When brand name drugs lose patent rights, this opens the door for
consumers, employers, third-party payers, and other purchasers to save
billions--between 50 and 80 percent on the costs of prescriptions--by
using generic versions of these drugs. Brand name drug companies are
expected to lose as much as $75 billion over the next 5 years as some
of their best sellers go off-patent and generic competition increases.
So, not surprisingly, these big pharmaceutical companies are
desperately trying to protect their market share and prevent consumers
from cashing in on savings from generic drugs.
We have addressed this issue before. In 1984, Congress passed the
Hatch-Waxman legislation to provide consumers greater access to lower
cost generic drugs. The intent of this law was to improve generic
competition, while preserving the ability of brand name manufacturers
to discover and market new and innovative products. As part of this
law, the first generic company on the market after challenging an
expiring brand name patent is granted 180-days of exclusive market
rights, which is just a fraction of the up to 20 years of exclusive
market rights afforded brand companies.
This 6-month incentive is crucial to maintaining the balance between
encouraging brand drug companies to make new drugs and encouraging
generic drug companies to make existing drugs more affordable.
Challenging a brand name drug's patent takes time, money, and involves
absorbing a great deal of risk. Generic drug companies rely on the
added revenue provided by the l80-day exclusivity period to recoup
their costs, fund new patent challenges where appropriate, and
ultimately pass savings onto consumers.
This latest attempt by big drug companies to protect their profits
puts billions of dollars in savings for consumers in jeopardy. The bill
we are introducing today eliminates the authorized generic loophole,
protects the integrity of the 180 days, and improves consumer access to
lower-cost generic drugs. I urge my colleagues to support this timely
and important piece of legislation.
[[Page S7928]]
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. 3695
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. PROHIBITION OF AUTHORIZED GENERICS.
Section 505 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 355) is amended by adding at the end the following:
``(o) Prohibition of Authorized Generic Drugs.--
``(1) In general.--Notwithstanding any other provision of
this Act, no holder of a new drug application approved under
subsection (c) shall manufacture, market, sell, or distribute
an authorized generic drug, direct or indirectly, or
authorize any other person to manufacture, market, sell, or
distribute an authorized generic drug.
``(2) Authorized generic drug.--For purposes of this
subsection, the term `authorized generic drug'--
``(A) means any version of a listed drug (as such term is
used in subsection (j)) that the holder of the new drug
application approved under subsection (c) for that listed
drug seeks to commence marketing, selling, or distributing,
directly or indirectly, after receipt of a notice sent
pursuant to subsection (j)(2)(B) with respect to that listed
drug; and
``(B) does not include any drug to be marketed, sold, or
distributed--
``(i) by an entity eligible for exclusivity with respect to
such drug under subsection (j)(5)(B)(iv); or
``(ii) after expiration or forfeiture of any exclusivity
with respect to such drug under such subsection
(j)(5)(B)(iv).''.
Mr. LEAHY. Mr. President, recently I was pleased to introduce with
Senators Kohl, Grassley and Schumer, the Preserve Access to Affordable
Generics Act of 2006, S. 3582. That bill was designed to improve the
timely and effective introduction of generic pharmaceuticals into the
marketplace.
It is no secret that prescription drug prices are rapidly increasing
and are a source of considerable concern to many Americans, especially
senior citizens and families. In a marketplace free of manipulation,
generic drug prices can be as much as 80 percent lower than the
comparable brand name version. Unfortunately, there are still some
companies driven by greed that may be keeping low-cost, life-saving
generic drugs off the marketplace, off pharmacy shelves, and out of the
hands of consumers by carefully crafted anticompetitive agreements
between drug manufacturers.
In 2001, and last Congress, I introduced a related bill, the
Competition Act. That bill, which is now law, is small in terms of
length but large in terms of impact. It ensured that law enforcement
agencies could take quick and decisive action against companies seeking
to cheat consumers by delaying availability of generic medicines. It
gave the Federal Trade Commission and the Justice Department access to
information about secret deals between drug companies that keep generic
drugs out of the market--a practice that not only hurts American
families, particularly senior citizens, by denying them access to low-
cost generic drugs, but also contributes to rising medical costs.
The Drug Competition Act, which was incorporated in the Medicare
Modernization Act, was a bipartisan effort to protect consumers in need
of patented medicines who were being forced to pay considerably higher
costs because of collusive secret deals designed. It is regrettable
that we must come to the floor again today and take additional action
to prevent drug companies from continuing to find and exploit
loopholes.
The bill I am introducing tonight with Senators Rockefeller and
Schumer is very important. It will provide incentives for generic
companies to make the investments needed to introduce low-cost generic
medicines for all our citizens.
The bill assures all Americans that the original intent of the Hatch-
Waxman law is carried out. That law was to provide incentives for
generic companies to challenge the validity of patents on medicines and
provide incentives for generic companies to manufacture low-cost
medicines. That incentive was simple.
Under Hatch-Waxman law, the first generic company, called the first-
filer, which successfully develops a generic version of a patented drug
and meets certain other requirements, can get a 180-day exclusivity
period to be the only generic company to have permission to make and
sell that generic drug.
That was called an exclusivity period because that is what the
Congress intended--that generic company would have the exclusive right
for 180 days to make the generic version of the patented medicine.
The problem is that recently brand-name companies have been labeling
their own patented drugs also as a generic version of itself, or
licensing others to make it, and selling both the brand-name version
and the so-called generic version. This undercuts the potential profits
of the ``real'' generic company and denies them what the Hatch-Waxman
law promised and for a long time delivered--an exclusivity period
lasting up to 180 days.
When the brand-name company offers a competing ``fake'' generic
version of the drug, that can cut the profits of the real generic
manufacturer greatly--thus making it less likely that a real generic
company will even want to make the product.
The Rockefeller bill prevents the brand-name company from doing that
for the 180-day exclusivity period. I hope my colleagues will join me
in supporting this effort.
____________________