[Congressional Record Volume 152, Number 129 (Wednesday, November 15, 2006)]
[Senate]
[Pages S10965-S10973]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. FRIST:
S. 4052. A bill to authorize refugee relief and reconstruction
assistance for North Korea; to the Committee on Foreign Relations.
Mr. FRIST. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 4052
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 Refugee Relief
and Reconstruction Act of 2006''.
SEC. 2. PURPOSE.
The purpose of this Act is to help the people of North
Korea gain freedom from political oppression.
SEC. 3. NORTH KOREA REFUGEE RELIEF AND RECONSTRUCTION FUND.
(a) Establishment.--There is established in the Treasury of
the United States a fund to be known as the ``North Korea
Refugee Relief and Reconstruction Fund'' (in this Act
referred to as the ``Fund''), consisting of such amounts as
may be appropriated to the Fund pursuant to subsection (b)
and such articles and services as may be made available to
the Fund pursuant to subsection (c). The resources of the
Fund shall be available to carry out the programs and
activities identified in section 4.
(b) Authorization of Appropriations.--There are authorized
to be appropriated for
[[Page S10966]]
contributions to the Fund such sums as may be necessary, not
to exceed $10,000,000,000. Amounts appropriated for the Fund
shall remain available until expended.
(c) Drawdown Authority.--
(1) In general.--The President may, pursuant to section
506(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C.
2318(a)(2)), draw down articles and services from the
inventory and resources of any agency of the United States
Government for the Fund to carry out the programs and
activities identified in section 4.
(2) Authority to acquire by contract or otherwise.--The
assistance authorized under paragraph (1) may include the
supply of articles and services that are acquired by contract
or otherwise.
(3) Amount of assistance.--
(A) Limit.--The aggregate value of assistance provided
under this subsection, as defined under section 644(m) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2403(m)), may not
exceed $1,000,000,000.
(B) Assistance not counted toward special authority
limit.--Assistance provided under this subsection shall not
count toward any limitation under section 506 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2318).
(4) Reimbursement.--
(A) In general.--Articles and services provided under this
subsection shall be made available to the Fund without
reimbursement to the applicable appropriation, fund, or
account except to the extent that funds are appropriated
pursuant to subparagraph (B).
(B) Authorization of appropriations.--
(i) In general.--There are authorized to be appropriated to
the President such sums as may be necessary to reimburse the
applicable appropriation, fund, or account for the value of
articles and services provided under this subsection, as
defined under section 644(m) of the Foreign Assistance Act of
1961 (22 U.S.C. 2403(m)).
(ii) Offset.--The maximum amount authorized to be
appropriated for the Fund under subsection (b) shall be
reduced by an amount equal to the aggregate value of the
articles and services made available under paragraph (1).
SEC. 4. PROGRAMS AND ACTIVITIES OF THE FUND.
(a) Refugee Relief, Relocation and Resettlement
Assistance.--The President may use amounts in the Fund to
provide relief to refugees that have escaped from North
Korea, to relocate such refugees to South Korea or other
countries prepared to accept them, and to assist in the
resettlement of such refugees in any country willing to
accept their resettlement. These activities may be carried
out pursuant to the authorities provided in the Migration and
Refugee Assistance Act of 1962 (22 U.S.C. 2601 et seq.).
(b) Reunification and Reconstruction Assistance.--The
President may use amounts in the Fund to provide for the
benefit of persons living in the territory of North Korea the
types of assistance authorized for the Independent States of
the former Soviet Union under section 498 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2295) and for the countries
of the South Caucasus and Central Asia under sections 499A,
499B, 499C, and 499D of such Act (22 U.S.C. 2296a, 2296b,
2296c, and 2296d) in the event of--
(1) the reunification of North Korea with South Korea; or
(2) the emergence in North Korea of a new national
government committed to respect for human rights,
nonproliferation, and peaceful relations with the United
States and the other countries of the region.
SEC. 5. SENSE OF CONGRESS ON INTERNATIONAL EFFORTS.
It is the sense of Congress that the Governments of South
Korea, Japan, China, and Russia and other concerned
governments should make commitments commensurate to those
that the United States is offering under this Act--
(1) to assist refugees fleeing political oppression in
North Korea; and
(2) to meet humanitarian and reconstruction needs arising
in connection with--
(A) the reunification of North Korea with South Korea; or
(B) the emergence in North Korea of a new national
government committed to respect for human rights,
nonproliferation, and peaceful relations with the United
States and the other countries in the region.
______
By Mr. DODD (for himself, Mr. Cochran, Mr. Kennedy, Mr. Baucus,
Mr. Salazar, Mr. Rockefeller, Mrs. Boxer, and Mr. Kerry):
S. 4053. A bill to amend the National and Community Service Act of
1990 to establish a Summer of Service State grant program, a Summer of
Service national direct grant program, and related national activities,
and for other purposes; to the Committee on Health, Education, Labor,
and Pensions.
Mr. DODD. Mr. President, I rise to introduce, along with Senators
Cochran, Kennedy, Baucus, Rockefeller, Salazar, Boxer and Kerry, the
Summer of Service Act of 2006. This bill offers middle school students
the chance to spend a summer in service to their communities as they
transition into high school.
Summer of Service creates a competitive grant program that enables
States and localities to offer middle school students an opportunity to
participate in a structured community service program over the summer
months. It employs service-learning to teach civic participation
skills, help young people see themselves as resources to their
communities, expand educational opportunities and discourage ``summer
academic slide.'' Providing tangible benefits to their communities,
Summer of Service projects direct grantees to work on unmet human,
educational, environmental and public safety needs and encourage all
youth, regardless of age, income, or disability, to engage in community
service. The program also grants participants with an educational award
of up to $500 which can later be used to pay for college.
Volunteerism not only brings support and services to communities in
need, it also provides significant benefits to the students who
participate. When young people participate in service activities they
feel better able to control their lives in a positive way, avoiding
risk behaviors, strengthening their community connections and become
more engaged in their studies. When service is tied to what students
are learning in school, they make gains on achievement tests, complete
their homework more often, and increase their grade point average.
Students who engage in service learning also improve their
communication skills, gain increased awareness of career possibilities,
and develop more positive workplace attitudes, setting the foundation
for their place as America's future leaders. Studies also show that
students who participate in community service are more likely to
graduate high school and demonstrate interest in going to college.
We often hear today of the tremendous pressures our young people face
at home, in school and in the afterschool hours. Summer of Service
provides young people with the chance to be a positive change in their
communities. For this reason, I urge my colleagues to join me in
supporting the Summer of Service Act of 2006. I ask unanimous consent
that the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 4053
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 ``Summer of Service Act of
2006''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) Throughout the United States, there are pressing unmet
human, educational, environmental and public safety needs.
(2) Americans desire to affirm common responsibilities and
shared values, and join together in positive experiences,
that transcend race, religion, gender, age, disability,
region, income, and education.
(3) Americans of all ages can improve their communities and
become better citizens through service to their communities.
(4) When youth participate in service activities and see
that they are able to improve the lives of others, the youth
feel better able to control their own lives in a positive
way, avoiding risky behaviors, strengthening their community
connections, and becoming more engaged in their own
education.
(5) When youth service is tied to learning objectives, that
service is shown to decrease alienation and behavior
problems, and increase knowledge of community needs,
commitment to an ethic of service, and understanding of
politics and morality.
(6) When service is tied to what students are learning in
school, the students make gains on achievement tests,
complete their homework more often, and increase their grade
point averages.
(7) Students who engage in service-learning improve their
communication skills, increase their awareness of career
possibilities, have a deeper understanding of social and
economic issues that face the United States, and develop more
positive workplace attitudes, preparing them to take their
places as future leaders of the United States.
(8) In a national poll, more than 80 percent of parents
said that their child would benefit from an after school
program that offered community service and 95 percent of
teens agreed that is important to volunteer time to community
efforts.
(b) Purpose.--The purposes of this Act are to--
(1) offer youth the chance to spend a summer in service to
their communities as a rite of passage before high school;
[[Page S10967]]
(2) teach civic participation skills to youth and help
youth see themselves as resources and leaders for their
communities;
(3) expand educational opportunities and discourage
``summer slide'' by engaging youth in summer service-learning
opportunities;
(4) encourage youth, regardless of age, income, or
disability, to engage in community service;
(5) provide tangible benefits to the communities in which
Summer of Service programs are performed; and
(6) enhance the social-emotional development of youth of
all backgrounds.
SEC. 3. SUMMER OF SERVICE PROGRAMS.
Title I of the National and Community Service Act of 1990
(42 U.S.C. 12511 et seq.) is amended--
(1) by redesignating subtitles F, G, H, and I as subtitles
G, H, I, and J, respectively;
(2) by redesignating sections 160 through 166 as sections
159A through 159G, respectively; and
(3) by inserting after subtitle E the following:
``Subtitle F--Summer of Service Programs
``SEC. 161. DEFINITIONS.
``In this subtitle:
``(1) Educational award.--The term `educational award'
means an award disbursed under section 162B(d) or 163B(d).
``(2) Eligible entity.--The term `eligible entity' means a
public or private nonprofit organization, an institution of
higher education, a local educational agency, a public
elementary school or public secondary school, or a consortium
of 2 or more of the entities described in this paragraph.
``(3) Eligible youth.--The term `eligible youth' means a
youth who will be enrolled in the sixth, seventh, eighth, or
ninth grade at the end of the summer for which the youth
would participate in community service under this subtitle.
``PART I--SUMMER OF SERVICE STATE GRANT PROGRAM
``SEC. 162. GRANTS TO STATES.
``(a) Grants.--
``(1) In general.--The Chief Executive Officer shall award
grants on a competitive basis to States, to enable the State
Commissions--
``(A) to carry out State-level activities under subsection
(d); and
``(B) to award subgrants on a competitive basis under
section 162A to eligible entities to pay for the Federal
share of the cost of carrying out community service projects.
``(2) Funds for educational awards.--The Chief Executive
Officer shall decide whether funds appropriated to carry out
this part and available for educational awards (referred to
in this part as `educational award funds') shall be--
``(A) included in the funds for such grants to States and
subgrants to eligible entities; or
``(B) reserved by the Chief Executive Officer, deposited in
the National Service Trust for educational awards, and
disbursed according to paragraphs (1) and (3) of section
162B(d).
``(3) Periods of grants.--The Chief Executive Officer shall
award the grants for periods of 3 years.
``(4) Amounts of grants.--The Chief Executive Officer shall
award such a grant to a State for a program in a sum equal
to--
``(A) the amount obtained by multiplying $500 and the
number of youth who will participate in the program (to be
used for program expenses);
``(B) unless the Chief Executive Officer decides to deposit
funds for educational awards in the National Service Trust,
as described in paragraph (2)(B), an additional amount equal
to the amount described in subparagraph (A) (to be used for
educational awards); and
``(C) an amount sufficient to provide for the reservation
for State-level activities described in subsection (d).
``(b) State Application.--To be eligible to receive a grant
under this section, a State shall submit an application to
the Chief Executive Officer at such time, in such manner, and
containing such information as the Chief Executive Officer
may require, including information that--
``(1) designates the State Commission as the agency
responsible for the administration and supervision of the
community service program carried out under this part in the
State;
``(2) describes how the State Commission will use funds
received under this part, including funds reserved for State-
level activities under subsection (d);
``(3) describes the procedures and criteria the State
Commission will use for reviewing applications and awarding
subgrants on a competitive basis under section 162A to
eligible entities for projects, including how the State
Commission will give priority to an entity that--
``(A) offers a quality plan for or has an established track
record of carrying out the activities described in the
entity's application;
``(B) has a leadership position in the community from which
the youth participating in the project described in the
application will be drawn;
``(C) proposes a project that focuses on service by the
participants during the transition year before high school;
``(D) plans to ensure that at least 50 percent of the
participants are low-income eligible youth;
``(E) proposes a project that encourages or enables youth
to continue participating in community service throughout the
school year;
``(F) plans to involve the participants in the design and
operation of the project, including involving the
participants in conducting a needs-based assessment of
community needs;
``(G) proposes a project that involves youth of different
ages, races, sexes, ethnic groups, religions, disability
categories, or economic backgrounds serving together; and
``(H) proposes a project that provides high quality
service-learning experiences;
``(4) describes the steps the State Commission will take,
including the provision of ongoing technical assistance
described in subsection (d)(2) and training, to ensure that
projects funded under section 162A will implement effective
strategies; and
``(5) describes how the State Commission will evaluate the
projects, which shall include, at a minimum--
``(A) a description of the objectives and benchmarks that
will be used to evaluate the projects; and
``(B) a description of how the State Commission will
disseminate the results of the evaluations, as described in
subsection (d)(4)(C).
``(c) Applicant Review.--
``(1) Selection criteria.--The Chief Executive Officer
shall evaluate applications for grants under this section
based on the quality, innovation, replicability, and
sustainability of the State programs proposed by the
applicants.
``(2) Review panels.--The Chief Executive Officer shall
employ the review panels established under section 165A in
reviewing the applications.
``(3) Notification of applicants.--If the Chief Executive
Officer rejects an application submitted under this section,
the Chief Executive Officer shall promptly notify the
applicant of the reasons for the rejection of the
application.
``(4) Resubmission and reconsideration.--The Chief
Executive Officer shall provide an applicant notified of
rejection with a reasonable opportunity to revise and
resubmit the application. At the request of the applicant,
the Chief Executive Officer shall provide technical
assistance to the applicant as part of the resubmission
process. The Chief Executive Officer shall promptly
reconsider an application resubmitted under this paragraph.
``(d) State-Level Activities.--A State that receives a
grant under this section may reserve up to 5 percent of the
grant funds for State-level activities, which may include--
``(1) hiring staff to administer the program carried out
under this part in the State;
``(2) providing technical assistance, including technical
assistance concerning the professional development and
training of personnel, to eligible entities that receive
subgrants under section 162A;
``(3) conducting outreach and dissemination of program-
related information to ensure the broadest possible
involvement of eligible entities and local eligible youth in
the program carried out under this part; and
``(4)(A) conducting an evaluation of the projects carried
out by eligible entities under this part;
``(B) using the results of the evaluation to collect and
compile information on best practices and models for such
projects; and
``(C) disseminating widely the results of the evaluation.
``SEC. 162A. SUBGRANTS TO ELIGIBLE ENTITIES.
``(a) Subgrants.--
``(1) In general.--A State that receives a grant under
section 162 shall use the grant funds to award subgrants on a
competitive basis to eligible entities to pay for the Federal
share of the cost of carrying out community service projects.
``(2) Periods of subgrants.--The State shall award the
subgrants for periods of 3 years.
``(3) Amounts of subgrants.--The State shall award such a
subgrant to an eligible entity for a project in a sum equal
to--
``(A) the amount obtained by multiplying $500 and the
number of youth who will participate in the project (to be
used for project expenses); and
``(B) unless the Chief Executive Officer decides to deposit
funds for educational awards in the National Service Trust,
as described in section 162(a)(2)(B), an additional amount
equal to the amount described in subparagraph (A) (to be used
for educational awards).
``(b) Applications.--To be eligible to receive a subgrant
under this section for a project, an entity shall submit an
application to the State Commission at such time, in such
manner, and containing such information as the State
Commission may require, including information that--
``(1) designates the community in which the entity will
carry out the project, which community may be the service
area of an elementary school or secondary school, a school
district, a city, town, village, or other locality, a county,
the area in which a public housing project is located, a
neighborhood, or another geographically or politically
designated area;
``(2) describes the manner in which the entity will--
``(A) engage a substantial portion of the youth in the
designated community;
``(B) engage a variety of entities and individuals, such as
youth organizations, elementary schools or secondary schools,
elected officials, organizations offering summer
[[Page S10968]]
camps, civic groups, nonprofit organizations, and other
entities within the designated community to offer a variety
of summer service opportunities as part of the project;
``(C) ensure that the youth participating in the project
engage in service-learning;
``(D) engage as volunteers in the project business, civic,
or community organizations or individuals, which may include
older individuals, volunteers in the National Senior
Volunteer Corps established under title II of the Domestic
Volunteer Service Act of 1973 (42 U.S.C. 5000 et seq.),
participants in the school-based and community-based service-
learning programs carried out under parts I and II of
subtitle B, participants in the AmeriCorps program carried
out under subtitle C, or students enrolled in secondary
schools or institutions of higher education;
``(E) ensure that youth participating in the project
provide at least 100 hours of community service for the
project;
``(F) recruit eligible youth to participate in the project;
``(G) recruit service sponsors for community service
activities carried out through the project, if the eligible
entity intends to enter into an arrangement with such
sponsors to provide project placements for the youth;
``(H) promote leadership development and build an ethic of
civic responsibility among the youth;
``(I) provide team-oriented, adult-supervised experiences
through the project;
``(J) conduct opening and closing ceremonies honoring
participants in the project;
``(K) involve youth who are participating in the project in
the design and planning of the project; and
``(L) provide training, which may include life skills,
financial education, and employment training, in addition to
training concerning the specific community service to be
provided through the project, for the youth; and
``(3)(A) specifies project outcome objectives relating to
youth development or education achievement, community
strengthening, and community improvement;
``(B) describes how the eligible entity will establish
annual benchmarks for the objectives, and annually conduct an
evaluation to measure progress toward the benchmarks; and
``(C) provides an assurance that the eligible entity will
annually make the results of such evaluation available to the
State.
``(c) Continued Eligibility.--To be eligible to receive
funds under this section for a second or subsequent year of a
subgrant period, an entity shall demonstrate that the entity
has met the annual benchmarks for the objectives described in
subsection (b)(3).
``(d) Selection of Subgrant Recipients.--In awarding
subgrants under this section, the State shall ensure that
projects are funded in a variety of geographic areas,
including urban and rural areas.
``SEC. 162B. SUMMER OF SERVICE PROJECTS.
``(a) Use of Funds.--
``(1) In general.--An eligible entity that receives a
subgrant under section 162A shall use the subgrant funds to
carry out a community service project.
``(2) Specific uses.--The eligible entity may use the
subgrant funds to pay for--
``(A) hiring staff to administer the project;
``(B) developing or acquiring service-learning curricula
for the project, to be integrated into academic programs,
including making modifications for students who are
individuals with disabilities and students with limited
English proficiency;
``(C) forming local partnerships to develop and offer a
variety of service-learning programs for local youth
participating in the project;
``(D) establishing benchmarks, conducting evaluations, and
making evaluation results available, as described in
subparagraphs (B) and (C) of section 162A(b)(3);
``(E) conducting outreach and dissemination of program-
related information to ensure the broadest possible
involvement of local eligible youth and community partners in
the project;
``(F) conducting ceremonies as described in section
162A(b)(2)(J);
``(G) carrying out basic implementation of the community
service project; and
``(H) carrying out planning activities, during an initial 6
to 9 months of the subgrant period.
``(3) Non-federal share.--An eligible entity that receives
a subgrant under section 162A shall provide the non-Federal
share of the costs described in section 162A(a)(1) from
private or public sources other than the subgrant funds. The
sources may include fees charged to the parents of the youth
participating in the community service project involved and
determined on a sliding scale based on income.
``(b) Service Projects.--
``(1) Eligible service categories.--The eligible entity may
use the subgrant funds to carry out a community service
project to meet unmet human, educational, environmental, or
public safety needs.
``(2) Ineligible service categories.--The eligible entity
may not use the subgrant funds to carry out a service project
in which participants perform service described in section
132(a).
``(c) Period of Service Projects.--The eligible entity--
``(1) shall carry out the community service project funded
under section 162A during a period, the majority of which
occurs in the months of June, July, and August; and
``(2) may carry out the project in conjunction with a
related after school or in-school service-learning project
operated during the remaining months of the year.
``(d) Educational Award.--
``(1) Eligibility.--Each eligible youth who provides at
least 100 hours of community service for a project carried
out under this part shall be eligible to receive an
educational award of not more than $500. An eligible youth
may participate in more than 1 such project but shall not
receive in excess of $1,000 in total for such participation.
``(2) Disbursements by eligible entity.--If the Chief
Executive Officer decides under section 162(a)(2)(A) to
include educational award funds in subgrants under this part,
the eligible entity carrying out the project shall--
``(A) disburse an educational award described in paragraph
(1) in accordance with regulations issued by the Chief
Executive Officer, which--
``(i) may permit disbursal of the award to the parents of
the youth that have established a qualified tuition program
account under section 529 of the Internal Revenue Code of
1986, for deposit into the account; but
``(ii) shall not otherwise permit disbursal of the award to
the parents; or
``(B) enter into a contract with a private sector
organization to hold the educational award funds and disburse
the educational award as described in subparagraph (A).
``(3) Disbursements by chief executive officer.--If the
Chief Executive Officer decides under section 162(a)(2)(B) to
reserve educational award funds, the Chief Executive Officer
shall disburse the educational award as described in
paragraph (2)(A).
``SEC. 162C. SUPPLEMENTAL GRANTS.
``(a) In General.--The Chief Executive Officer may award a
supplemental grant to an eligible entity that demonstates the
matters described in subsection (b), to assist the entity in
carrying out a community service project in accordance with
the requirements of this part, as determined appropriate by
the Chief Executive Officer.
``(b) Application.--To be eligible to receive a
supplemental grant under subsection (a), an entity shall
submit an application to the Chief Executive Officer, at such
time, in such manner, and containing such information as the
Chief Executive Officer may require, including information
demonstrating--
``(1) that the entity received a subgrant under section
162A for a community service project; and
``(2) that the entity would be unable to carry out the
project without substantial hardship unless the entity
received a supplemental grant under subsection (a).
``(c) Amount of Grant.--The Chief Executive Officer shall
award such a grant to an eligible entity for the project in
the amount obtained by multiplying $250 and the number of
youth who will participate in the project (to be used for
project expenses).
``SEC. 162D. INDIAN TRIBES AND TERRITORIES.
``From the funds made available to carry out this part
under section 165(b)(2)(A) for any fiscal year, the Chief
Executive Officer shall reserve an amount of not more than 3
percent for payments to Indian tribes, the United States
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, to be used in accordance with
the requirements of this part, as determined appropriate by
the Chief Executive Officer.
``PART II--SUMMER OF SERVICE NATIONAL DIRECT GRANT PROGRAM
``SEC. 163. NATIONAL DIRECT GRANTS.
``(a) Grants.--
``(1) In general.--The Chief Executive Officer shall award
grants on a competitive basis to public or private
organizations (referred to individually in this part as an
`organization')--
``(A) to carry out quality assurance activities under
subsection (d); and
``(B) to pay for the Federal share of the cost of carrying
out a community service program--
``(i) in a State where the State Commission does not apply
for funding under part I; or
``(ii) in multiple States.
``(2) Funds for educational awards.--The Chief Executive
Officer shall decide whether funds appropriated to carry out
this part and available for educational awards (referred to
in this part as `educational award funds') shall be--
``(A) included in the funds for such grants to
organizations and any subgrants to local providers; or
``(B) reserved by the Chief Executive Officer, deposited in
the National Service Trust for educational awards, and
disbursed according to paragraphs (1) and (3) of section
163B(d).
``(3) Periods of grants.--The Chief Executive Officer shall
award the grants for periods of 3 years.
``(4) Amounts of grants.--The Chief Executive Officer shall
award such a grant to an organization for a program in a sum
equal to--
``(A) the amount obtained by multiplying $500 and the
number of youth who will participate in the program (to be
used for program expenses);
``(B) unless the Chief Executive Officer decides to deposit
funds for educational awards in the National Service Trust,
as described in paragraph (2)(B), an additional amount equal
to the amount described in subparagraph (A) (to be used for
educational awards); and
[[Page S10969]]
``(C) an amount sufficient to provide for the reservation
for quality assurance activities described in subsection (d).
``(b) National Direct Applications.--To be eligible to
receive a grant under this section for a community service
program, an organization shall submit an application to the
Chief Executive Officer at such time, in such manner, and
containing such information as the Chief Executive Officer
may require, including information that--
``(1) describes how the organization will use funds
received under this part, including funds reserved for
quality assurance activities under subsection (d);
``(2)(A) describes the procedures and criteria the
organization will use for reviewing applications and awarding
subgrants on a competitive basis under section 163A to local
providers for projects, including how the organization will
give priority to a provider that, with respect to each
project described in the application--
``(i) offers a quality plan for or has an established track
record of carrying out the activities described in the
provider's application;
``(ii) has a leadership position in the community from
which the youth participating in the project will be drawn;
``(iii) proposes a project that focuses on service by the
participants during the transition year before high school;
``(iv) plans to ensure that at least 50 percent of the
participants are low-income eligible youth;
``(v) proposes a project that encourages or enables youth
to continue participating in community service throughout the
school year;
``(vi) plans to involve the participants in the design and
operation of the project, including involving the
participants in conducting a needs-based assessment of
community needs;
``(vii) proposes a project that involves youth of different
ages, races, sexes, ethnic groups, religions, disability
categories, or economic backgrounds serving together; and
``(viii) proposes a project that provides high quality
service-learning experiences; or
``(B) if the organization will carry out the community
service program directly, demonstrates that the organization
meets the requirements of clauses (i) through (viii) of
subparagraph (A) with respect to each project described in
the application;
``(3) describes the steps the organization will take,
including the provision of ongoing technical assistance
described in subsection (d)(2)) and training, to ensure that
projects funded under this part will implement effective
strategies; and
``(4) describes how the organization will evaluate the
projects funded under this part, which shall include, at a
minimum--
``(A) a description of the objectives and benchmarks that
will be used to evaluate the projects; and
``(B) a description of how the organization will
disseminate widely the results of the evaluations, as
described in subsection (d)(3)(C).
``(c) Applicant Review.--
``(1) Selection criteria.--The Chief Executive Officer
shall evaluate applications for grants under this section
based on the quality, innovation, replicability, and
sustainability of the programs proposed by the applicants.
``(2) Review panels.--The Chief Executive Officer shall
employ the review panels established under section 165A in
reviewing the applications.
``(3) Notification of applicants.--If the Chief Executive
Officer rejects an application submitted under this section,
the Chief Executive Officer shall promptly notify the
applicant of the reasons for the rejection of the
application.
``(4) Resubmission and reconsideration.--The Chief
Executive Officer shall provide an applicant notified of
rejection with a reasonable opportunity to revise and
resubmit the application. At the request of the applicant,
the Chief Executive Officer shall provide technical
assistance to the applicant as part of the resubmission
process. The Chief Executive Officer shall promptly
reconsider an application resubmitted under this paragraph.
``(d) Quality Assurance Activities.--An organization that
receives a grant under this section may reserve up to 5
percent of the grant funds for quality assurance activities,
which may include--
``(1) hiring staff to administer the program carried out
under this part by the organization;
``(2) providing technical assistance, including technical
assistance concerning the professional development and
training of personnel, to local providers that receive
subgrants under section 163A; and
``(3)(A) conducting an evaluation of the projects carried
out by local providers of the organization under this part;
``(B) using the results of the evaluation to collect and
compile information on best practices and models for such
projects; and
``(C) disseminating widely the results of the evaluation.
``SEC. 163A. SUBGRANTS TO LOCAL PROVIDERS.
``(a) Subgrants.--
``(1) In general.--An organization that receives a grant
under section 163 may use the grant funds to award subgrants
on a competitive basis to local providers to pay for the
Federal share of the cost of carrying out community service
projects.
``(2) Periods of subgrants.--The organization shall award
the subgrants for periods of 3 years.
``(3) Amounts of subgrants.--The organization shall award
such a subgrant to a local provider for a project in a sum
equal to--
``(A) the amount obtained by multiplying $500 and the
number of youth who will participate in the project (to be
used for project expenses); and
``(B) unless the Chief Executive Officer decides to deposit
funds for educational awards in the National Service Trust,
as described in section 163(a)(2)(B), an additional amount
equal to the amount described in subparagraph (A) (to be used
for educational awards).
``(b) Local Provider Application.--To be eligible to
receive a subgrant under this section, a local provider shall
submit an application to the organization at such time, in
such manner, and containing such information as the
organization may require, including information that--
``(1) designates the communities in which the local
provider will carry out projects under the subgrant, each of
which communities may be the service area of an elementary
school or secondary school, a school district, a city, town,
village, or other locality, a county, the area in which a
public housing project is located, a neighborhood, or another
geographically or politically designated area;
``(2) for each project described in such application,
describes the manner in which the local provider will--
``(A) engage a substantial portion of the youth in the
designated community involved;
``(B) engage a variety of entities and individuals, such as
youth organizations, elementary schools or secondary schools,
elected officials, organizations offering summer camps, civic
groups, nonprofit organizations, and other entities within
the designated community to offer a variety of summer service
opportunities as part of the project;
``(C) ensure that the youth participating in the project
engage in service-learning;
``(D) engage as volunteers in the project business, civic,
or community organizations or individuals, which may include
older individuals, volunteers in the National Senior
Volunteer Corps established under title II of the Domestic
Volunteer Service Act of 1973 (42 U.S.C. 5000 et seq.),
participants in the school-based and community-based service-
learning programs carried out under parts I and II of
subtitle B, participants in the AmeriCorps program carried
out under subtitle C, or students enrolled in secondary
schools or institutions of higher education;
``(E) ensure that youth participating in the project
provide at least 100 hours of community service for the
project;
``(F) recruit eligible youth to participate in the project;
``(G) recruit service sponsors for community service
activities carried out through the project, if the local
provider intends to enter into an arrangement with such
sponsors to provide project placements for the youth;
``(H) promote leadership development and build an ethic of
civic responsibility among the youth;
``(I) provide team-oriented, adult-supervised experiences
through the project;
``(J) conduct opening and closing ceremonies honoring
participants in the project;
``(K) involve youth who are participating in the project in
the design and planning of the project; and
``(L) provide training, which may include life skills,
financial education, and employment training, in addition to
training concerning the specific community service to be
provided through the project, for the youth; and
``(3)(A) specifies project outcome objectives relating to
youth development or education achievement, community
strengthening, and community improvement;
``(B) describes how the local provider will establish
annual benchmarks for the objectives, and annually conduct an
evaluation to measure progress toward the benchmarks; and
``(C) provides an assurance that the local provider will
annually make the results of such evaluation available to the
organization.
``(c) Continued Eligibility.--To be eligible to receive
funds under this section for a second or subsequent year of a
subgrant period, a local provider shall demonstrate that all
the projects for which the subgrant was awarded met the
annual benchmarks for the objectives described in subsection
(b)(3).
``(d) Selection of Subgrant Recipients.--In awarding
subgrants under this section, the organization shall ensure
that projects are funded in a variety of geographic areas,
including urban and rural areas.
``SEC. 163B. SUMMER OF SERVICE PROJECTS.
``(a) Use of Funds.--
``(1) In general.--A local provider that receives a
subgrant under section 163A shall use the subgrant funds to
carry out a community service project.
``(2) Specific uses.--The local provider may use the
subgrant funds, to pay for--
``(A) hiring staff to administer the project;
``(B) developing or acquiring service-learning curricula
for the project, to be integrated into academic programs,
including making modifications for students who are
individuals with disabilities and students with limited
English proficiency;
[[Page S10970]]
``(C) forming local partnerships to develop and offer a
variety of service-learning programs for local youth
participating in the project;
``(D) establishing benchmarks, conducting evaluations, and
making evaluation results available, as described in
subparagraphs (B) and (C) of section 163A(b)(3);
``(E) conducting outreach and dissemination of program-
related information to ensure the broadest possible
involvement of local eligible youth and community partners in
the project;
``(F) conducting ceremonies as described in section
163A(b)(2)(J);
``(G) carrying out basic implementation of the community
service project; and
``(H) carrying out planning activities, during an initial 6
to 9 months of the grant period.
``(3) Non-federal share.--A local provider that receives a
subgrant under section 163A shall provide the non-Federal
share of the cost described in section 163A(a)(1) from
private or public sources other than the subgrant funds. The
sources may include fees charged to the parents of the youth
participating in the community service project involved and
determined on a sliding scale based on income.
``(b) Service Projects.--
``(1) Eligible service categories.--The local provider may
use the subgrant funds to carry out a community service
project to meet unmet human, educational, environmental, or
public safety needs.
``(2) Ineligible service categories.--The local provider
may not use the subgrant funds to carry out a service project
in which participants perform service described in section
132(a).
``(c) Period of Service Projects.--The local provider--
``(1) shall carry out the community service project funded
under section 163A during a period, the majority of which
occurs in the months of June, July, and August; and
``(2) may carry out the project in conjunction with a
related after school or in-school service-learning project
operated during the remaining months of the year.
``(d) Educational Award.--
``(1) Eligibility.--Each eligible youth who provides at
least 100 hours of community service for a project carried
out under this part shall be eligible to receive an
educational award of not more than $500. An eligible youth
may participate in more than 1 such project but shall not
receive in excess of $1,000 in total for such participation.
``(2) Disbursements by local provider.--If the Chief
Executive Officer decides under section 163(a)(2)(A) to
include educational award funds in subgrants under this part,
the local provider carrying out the project shall--
``(A) disburse an educational award described in paragraph
(1) in accordance with regulations issued by the Chief
Executive Officer, which--
``(i) may permit disbursal of the award to the parents of
the youth that have established a qualified tuition program
account under section 529 of the Internal Revenue Code of
1986, for deposit into the account; but
``(ii) shall not otherwise permit disbursal of the award to
the parents; or
``(B) enter into a contract with a private sector
organization to hold the educational award funds and disburse
the educational award as described in subparagraph (A).
``(3) Disbursements by chief executive officer.--If the
Chief Executive Officer decides under section 163(a)(2)(B) to
reserve educational award funds, the Chief Executive Officer
shall disburse the educational award as described in
paragraph (2)(A).
``(e) Application of Section.--References in this section
to local providers, with respect to the use of subgrant funds
received under section 163A, apply equally to organizations
that carry out community service projects directly, with
respect to the use of grant funds received under section 163.
``SEC. 163C. SUPPLEMENTAL GRANTS.
``(a) In General.--The Chief Executive Officer may award a
supplemental grant to a local provider that demonstates the
matters described in subsection (b), to assist the provider
in carrying out a community service project in accordance
with the requirements of this part, as determined appropriate
by the Chief Executive Officer.
``(b) Application.--To be eligible to receive a
supplemental grant under subsection (a), a provider shall
submit an application to the Chief Executive Officer, at such
time, in such manner, and containing such information as the
Chief Executive Officer may require, including information
demonstrating--
``(1) that the provider received a subgrant under section
163A for a community service project; and
``(2) that the provider would be unable to carry out the
project without substantial hardship unless the provider
received a supplemental grant under subsection (a).
``(c) Amount of Grant.--The Chief Executive Officer shall
award such a grant to a local provider for the project in the
amount obtained by multiplying $250 and the number of youth
who will participate in the project (to be used for project
expenses).
``PART III--SUMMER OF SERVICE NATIONAL ACTIVITIES
``SEC. 164. NATIONAL ACTIVITIES.
``(a) National Quality and Outreach Activities.--The Chief
Executive Officer may use funds reserved under section
165(b)(1), either directly or through grants and contracts,
to--
``(1) provide technical assistance and training to
recipients of grants and subgrants under parts I and II;
``(2) conduct outreach and dissemination of program-related
information to ensure the broadest possible involvement of
States, eligible entities, organizations, local providers,
and eligible youth in programs carried out under parts I and
II; and
``(3) to carry out other activities designed to improve the
quality of programs carried out under parts I and II.
``(b) National Evaluation.--
``(1) Reservation.--For each fiscal year, the Chief
Executive Officer shall reserve not more than the greater of
$500,000, or 1 percent, of the funds described in subsection
(a) for the purposes described in paragraph (2).
``(2) Evaluation.--The Chief Executive Officer shall use
the reserved funds--
``(A) to arrange for an independent evaluation of the
programs carried out under parts I and II, to be conducted in
the second and third years in which the programs are
implemented; and
``(B) using the results of the evaluation, to collect and
compile information on models and best practices for such
programs; and
``(C) to disseminate widely the results of the evaluation.
``(3) Report.--The Chief Executive Officer shall annually
submit to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and the
Workforce of the House of Representatives, a report
concerning the results of the evaluations conducted under
paragraph (2). Such reports shall also contain information on
models of best practices and any other findings or
recommendations developed by the Chief Executive Officer
based on such evaluations. Such reports shall be made
available to the general public.
``PART IV--GENERAL PROVISIONS
``SEC. 165. AUTHORIZATION OF APPROPRIATIONS AND AVAILABILITY.
``(a) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this subtitle
$100,000,000 for fiscal year 2007 and such sums as may be
necessary for each subsequent fiscal year.
``(b) Availability.--Of the funds appropriated under
subsection (a) for a fiscal year, the Chief Executive
Officer--
``(1) shall reserve not more than 4 percent to carry out
activities under part III (relating to national activities);
and
``(2) from the remainder of such funds, shall make
available--
``(A) a portion equal to 66\2/3\ percent of such funds for
programs carried out under part I (relating to the State
grant program), including programs carried out under section
162D; and
``(B) a portion equal to 33\1/3\ percent of such funds for
programs carried out under part II (relating to the national
direct grant program).
``(c) Reallocation.--If the Chief Executive Officer
determines that funds from the portion described in
subsection (b)(2)(A) will not be needed to carry out programs
under part I for a fiscal year, the Chief Executive Officer
shall make the funds available for programs under part II for
that fiscal year.
``SEC. 165A. REVIEW PANELS.
``The Chief Executive Officer shall establish panels of
experts for the purpose of reviewing applications submitted
under sections 162, 162C, 162D, and 163.
``SEC. 165B. CONSTRUCTION.
``An individual participating in service in a program
described in this subtitle shall not be considered to be an
employee engaged in employment for purposes of the Fair Labor
Standards Act of 1938 (29 U.S.C. 201 et seq.).''.
SEC. 4. CONFORMING AMENDMENTS.
(a) Redesignation of Subtitles.--
(1) Section 118(a) of the National and Community Service
Act of 1990 (42 U.S.C. 12551(a)) is amended by striking
``subtitle H'' and inserting ``subtitle I''.
(2) Section 122(a)(2) of such Act (42 U.S.C. 12572(a)(2))
is amended by striking ``subtitle I'' and inserting
``subtitle J''.
(3) Section 193A(f)(1) of such Act (42 U.S.C. 12651d(f)(1))
is amended by striking ``subtitles C and I'' and inserting
``subtitles C and J''.
(4) Section 501(a)(2) of such Act (42 U.S.C. 12681(a)(2))
is amended--
(A) in the paragraph heading, by striking ``Subtitles c, d,
and h'' and inserting ``Subtitles c, d, and i'';
(B) in subparagraph (A), by striking ``subtitles C and H''
and inserting ``subtitles C and I''; and
(C) in subparagraph (B), by striking ``subtitle H'' and
inserting ``subtitle I''.
(b) Redesignation of Sections.--
(1) Section 155(d)(3) of such Act (42 U.S.C. 12615(d)(3))
is amended by striking ``section 162(a)(3)'' and inserting
``section 159C(a)(3)''.
(2) Section 156(d) of such Act (42 U.S.C. 12616(d)) is
amended by striking ``section 162(a)(3)'' and inserting
``section 159C(a)(3)''.
(3) Section 159(c) of such Act (42 U.S.C. 12619(c)) is
amended--
(A) in paragraph (2)(C)(i), by striking ``section
162(a)(2)'' and inserting ``section 159C(a)(2)''; and
(B) in paragraph (3), by striking ``section 162(a)(2)(A)''
and inserting ``section 159C(a)(2)(A)''.
(4) Section 159B(b)(1)(B) of such Act (as redesignated by
section 3(2)) is amended by striking ``section 162(a)(3)''
and inserting ``section 159C(a)(3)''.
(c) Relationship to National Service Educational Award
Provisions.--
[[Page S10971]]
(1) National service trust.--Section 145 of the National
and Community Service Act of 1990 (42 U.S.C. 12601) is
amended--
(A) in subsection (a)--
(i) in paragraph (2), by striking ``and'' at the end;
(ii) in paragraph (3), by striking the period and inserting
``, other than interest or proceeds described in paragraph
(4)(B); and''; and
(iii) by adding at the end the following:
``(4)(A) any amounts deposited in the Trust under subtitle
F; and
``(B) the interest on, and proceeds from the sale or
redemption of, any obligations held by the Trust for a
program carried out under subtitle F.''; and
(B) in subsection (c), by inserting ``(other than any
amounts deposited in the Trust under subtitle F)'' after
``Amounts in the Trust''.
(2) Availability of amounts in national service trust.--
Section 148(a) of the National and Community Service Act of
1990 (42 U.S.C. 12604(a)) is amended by inserting ``(other
than any amounts deposited in the Trust under subtitle F)''
after ``Amounts in the Trust''.
______
Mr. CRAlG (for himself and Mr. Akaka):
S. 4054. A bill to amend title 38, United States Code, to expand the
number of individuals qualifying for retroactive benefits from
traumatic injury protection coverage under Servicemembers' Group Life
Insurance; to the Committee on Veterans' Affairs.
Mr. CRAIG. Mr. President, I have sought recognition to comment on
legislation that the distinguished Senator from Hawaii, Senator Akaka,
and I are introducing today. This bill would expand the number of
eligible recipients of retroactive payments under the Traumatic Injury
Protection under Servicemembers' Group Life Insurance, or ``TSGLI'',
benefit. Most of my colleagues have perhaps heard the story of how this
important benefit became law and what its intended purpose is, but I
believe it is worth repeating.
In April of 2005 I was visited by three servicemembers who were
seriously injured during Operation Iraqi Freedom (OIF). They were
members of an organization called the Wounded Warrior Project, and they
told me of their lengthy recovery times at Walter Reed Army Medical
Center and the financial toll that that period of convalescence had on
them and their families. They talked about wives, parents, and other
relatives who had taken long absences from work, and some who had even
quit their work, in order to spend time with those recovering at Walter
Reed. And they told me that the Department of Veterans Affairs
compensation system was no help because, by law, those benefits do not
kick in until after separation from service.
Based on their experiences, these wounded warriors recommended that I
pursue legislation to create a new insurance benefit for those with
traumatic injuries such as theirs. The insurance would pay between
$25,000 and $100,000 as soon as possible after an injury occurred,
thereby bridging the gap in assistance needed during the time of a
wounded servicemember's recovery and the time of his or her separation
from service. They asked that I make the legislation prospective only,
meaning that they, and hundreds of others, would go without any TSGLI
payment. I honored that request and, together with Senator Akaka and
other Members of the Committee on Veterans' Affairs, introduced an
amendment to the 2005 Emergency Supplemental Appropriations bill then
pending before the Senate.
A second degree amendment was later unanimously agreed to which
authorized retroactive benefit payments to all of those injured in the
Operation Iraqi Freedom and Operation Enduring Freedom (OEF) theaters
of operation--providing for TSGLI payments to hundreds of
servicemembers who had been seriously injured since the start of the
wars in Afghanistan and Iraq. At the time, the retroactive TSGLI
provision was consistent with other retroactive benefits approved
within the Emergency Supplemental bill, such as $238,000 in combined
Servicemembers' Group Life Insurance (SGLI) and death gratuity benefits
that were provided retroactively to survivors of those killed in combat
operations since the start of the War on Terror. Needless to say, the
TSGLI amendments were approved by the Congress and enacted into law.
Fast forward to the present. TSGLI has been up and running since
December 1, 2005, and provides financial assistance of $25,000 to
$100,000 to traumatically injured servicemembers within, on average, 60
days of the date of the injury causing event. As of September 2006,
almost 2,300 wounded OIF/OEF servicemembers have benefited under the
retroactive portion of the program. For those with injuries post
December 1, 2005, it does not matter if an injury occurs as a result of
combat operations or training exercises--payment under TSGLI is
available in either situation.
The Senate Committee on Veterans' Affairs held a hearing on the TSGLI
benefit this past September. The Committee received testimony from the
Wounded Warrior Project, the organization largely responsible for
TSGLI's conception. While very pleased with the program overall, a
serious concern was raised regarding the equity of only extending
retroactive TSGLI payments to those injured during Operations Iraqi and
Enduring Freedom. Mr. Jeremy Chwat, testifying for the Wounded Warrior
Project that day, used the example of one servicemember as
representative of others who are not now eligible for benefits:
Brave men and women like Seaman Robert Roeder who was
injured on January 29, 2005 when an arresting wire on the
aircraft carrier, the USS Kitty Hawk, severed his left leg
below the knee. . . . Although the ship was on its way to the
Gulf and the training exercises being conducted were in
preparation for action in either Operation Enduring or Iraqi
Freedom, Robert's injury does not qualify for payment.
Furthermore, since enactment of the 2005 Emergency Supplemental,
retroactive SGLI and death gratuity benefits combining $238,000 have
been expanded to provide payments to survivors of all servicemembers
who died on active duty, whether in combat or not. The reason behind
the expansion of retroactive benefits was a recognition that military
service is universal in character; that each military man or woman, no
matter where they are serving, contributes in a unique way to make the
United States Armed Forces second to none.
The legislation I am introducing today, along with Senate Akaka, will
make the TSGLI retroactive payment eligibility criteria consistent with
the other benefit program retroactive payment criteria I just
mentioned. Thus, if this legislation is enacted, all traumatically
injured servicemembers who served between October 7, 2001, and December
1, 2005, will be eligible for TSGLI payments, irrespective of where
their injuries occurred. Unofficial estimates from the Department of
Veterans Affairs suggest that approximately 700 individuals would be
covered under this bill.
Both the Wounded Warrior Project and the National Military Families
Association have expressed their support for this bill. And I now ask
my colleagues for their support. This is the right thing to do for our
military men and women.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXPANSION OF INDIVIDUALS QUALIFYING FOR
RETROACTIVE BENEFITS FROM TRAUMATIC INJURY
PROTECTION COVERAGE UNDER SERVICEMEMBERS' GROUP
LIFE INSURANCE.
(a) In General.--Paragraph (1) of section 501(b) of the
Veterans' Housing Opportunity and Benefits Improvement Act of
2006 (120 Stat. 414; 38 U.S.C. 1980A note) is amended by
striking ``, if, as determined by the Secretary concerned,
that loss was a direct result of a traumatic injury incurred
in the theater of operations for Operation Enduring Freedom
or Operation Iraqi Freedom''.
(b) Conforming Amendment.--The heading of such section is
amended by striking ``in Operation Enduring Freedom and
Operation Iraqi Freedom''.
______
By Mrs. FEINSTEIN (for herself and Mr. Sessions):
S. 4055. A bill to address the effect of the death of a defendant in
Federal criminal proceedings; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, today I am pleased to introduce the
``Preserving Crime Victims' Restitution Act of 2006.'' The Act would
clarify the rule of law and procedures that should be applied when a
criminal defendant, such as former Enron CEO Kenneth Lay, dies after he
has been
[[Page S10972]]
duly convicted, but before his appeals are final.
I am pleased that Senator Sessions is joining me as a cosponsor in
introducing this bill. We have worked closely with the Department of
Justice in crafting this legislation, and have used much of DOJ's
transmitted language. DOJ fully supports the principles contained in
this bill, and has indicated its support for this bill's efforts to fix
this problem now to ensure that, despite a defendant's death, hard-won
convictions are preserved and restitution remains available for the
victims of crime.
This bill that I introduce today would do the following: Establish
that, if a defendant dies after being convicted of a Federal offense,
his conviction will not be vacated. Instead, the court will be directed
to issue a statement stating that the defendant was convicted (either
by a guilty plea or a verdict finding him guilty) but then died before
his case or appeal was final.
It would codify the current rule that no further punishments can be
imposed on a person who is convicted if they die before a sentence is
imposed or they have an opportunity to appeal their conviction.
It would clarify that, unlike punishment, all other relief, such as
restitution to the victims, that could have been sought against a
convicted defendant can continue to be pursued and collected after the
defendant's death.
It would establish a process to ensure that after a person dies, a
representative of his estate can stand in the shoes of the defendant
and challenge or appeal his conviction if they want, and can also
secure a lawyer--either on their own or by having one appointed, and
If the Government had filed a criminal forfeiture action--in which it
had sought to reach the defendant's assets that were linked to his
crimes--the Government would get an extra 2 years after the defendant's
death to file a parallel civil forfeiture lawsuit so that it could try
to recover those same assets in a different, and traditionally-accepted
manner.
The need for this legislation was vividly demonstrated last month. On
October 17, 2006, U.S. District Judge Sim Lake, of the Southern
District of Texas, wiped clean the criminal record of Enron founder
Kenneth Lay, even after a jury and judge had unanimously found him
guilty of 10 criminal charges, including securities fraud, wire fraud
involving false and misleading statements, bank fraud and conspiracy.
That decision was not based on an error in the trial or any
suggestion of unfairness in the proceedings. Instead, it was simply
based on the fact that Mr. Lay died before his conviction had been
affirmed on appeal, under a common law rule known as ``abatement.''
In other words, this order essentially means that Mr. Lay is
``convicted but not guilty''--``innocent by reason of his death.''
Judge Lake granted this dismissal even in the face of DOJ Enron Task
Force filings, which noted how Mr. Lay's conviction ``provided the
basis for the likely disgorgement of fraud proceeds totaling tens of
millions of dollars.'' In other words, the dismissal means that
millions dollars, that the jury found were obtained by Mr. Lay
illegally, will now remain untouched in the Lay estate. And everyone
agrees that former Enron employees and shareholders will now find it
much harder to lay claim to these ill-gotten gains held by Mr. Lay's
estate, because they will be unable to point to his criminal conviction
as proof of his wrongdoing.
I do not fault Judge Lake for issuing this order. He made it clear
that he was simply following the binding precedent issued in 2004 by
the full U.S. Court of Appeals for the 5th Circuit, in a case called
United States v. Estate of Parsons.
But as I noted in a letter I wrote to Attorney General Gonzales on
October 20, 2006, the Fifth Circuit's Parsons decision goes far beyond
the traditional rule of law in this area. While the common-law doctrine
of abatement has historically wiped out ``punishments'' following a
criminal defendant's death, the Supreme Court has never held that it
must also wipe out a victim's right to other forms of relief such as
restitution, which simply compensate third parties who were injured by
criminal misconduct.
As the six dissenters in Parsons noted, the majority's `` `finality
rationale' is a completely novel judicial creation which has not been
embraced or even suggested by . . . other courts.'' The Third and
Fourth Circuits, for example, have expressly refused to take this
position, and upheld a restitution order after a criminal defendant's
death.
The Parsons decision was remarkable in several other respects,
including the fact that (as the dissenters noted), its new rule of law
was apparently inspired by a single law review article. That academic
piece boldly claimed that a criminal defendant's right of appeal is
``evolving into a constitutional right,'' and suggested that a
conviction untested by appellate review is unreliable and illegitimate.
This notion runs contrary to the traditional rule applied in virtually
every other context--where a jury's findings are typically respected
under the law.
Of course a defendant is presumed innocent at the outset of his case.
After a jury has deliberated and unanimously issued a formal finding of
guilt, however, that presumption of innocence no longer stands.
The Parsons ``finality'' rationale raises the absurd possibility that
even a defendant who fully admitted his wrongdoing and pleaded guilty,
but who then died while an appeal of his sentence was pending, could
have his entire criminal conviction erased. In fact, this has already
occurred, in the 1994 case of United States v. Pogue, where the D.C.
Circuit ordered the dismissal of a conviction of a defendant whose
appeal was pending--even though the docketing statement had said that
the defendant intended to challenge only his sentence, and not his
underlying conviction.
I have urged the Attorney General to continue to fight for Enron
victims by appealing Judge Lake's dismissal to the Supreme Court.
There, he should ask for a resolution of this split in the law between
these Circuits, so that he can try to get the Parsons rule overturned.
Unfortunately, the Justice Department has been noncommittal--it refuses
to say if it will appeal the Ken Lay dismissal or not, even with the
filing deadline fast approaching.
In the meantime, rather than remaining silent on this issue, and
hoping that the Attorney General will appeal the Lay case as he should,
I believe the time has come for Congress to take action.
While I have no desire for our Government to punish a criminal
defendant who dies, the calculation should be different when we are
determining how to make up for harm suffered by other individuals.
There is surely a legal and moral basis for not punishing the dead.
But there is also, more importantly, a legal and moral basis for
defending the living. The legislation that I introduce today codifies
that distinction.
This legislation offers a fair solution and orderly process in the
event that a criminal defendant dies prior to his final appeal.
Enron's collapse in 2001 wiped out thousands of jobs, more than $60
billion in market value, and more than $2 billion in pension plans.
When America's seventh largest company crumbled into bankruptcy after
its accounting tricks could no longer hide its billions in debt,
countless former Enron employees and shareholders lost their entire
life savings after investing in Enron's 401(k) plan.
Many of these Enron victims have been following closely the years of
preparation by the Enron Task Force, and the four-month jury trial and
separate one-week bench trial, hoping to finally recover some
restitution in this criminal case. And despite Mr. Lay's vigorous
efforts to avoid being held accountable for his actions, a conviction
was finally secured.
Yet now these people have essentially been victimized again. They
will be forced to start all over in their efforts to get back some
portion of the pension funds on which they expected to subsist, and the
other hard-earned assets that will remain beyond their reach, despite
the unanimous, hard-fought verdicts finding Mr. Lay guilty of all ten
counts with which he had been charged.
The time has come for Congress to end this injustice--hopefully, by
acting quickly enough to assist these Enron victims, but in any event
in a way that
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will prevent this type of injustice from ever happening again in the
future.
I urge my colleagues to support this legislation.
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