[Congressional Record Volume 153, Number 20 (Thursday, February 1, 2007)]
[Senate]
[Pages S1523-S1537]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. ALLARD (for himself and Mr. Salazar):
S. 472. A bill to authorize a major medical facility project for the
Department of Veterans Affairs at Denver, Colorado; to the Committee on
Veterans' Affairs.
Mr. ALLARD. Mr. President, today I am introducing a bill to fully
authorize the necessary funds needed to complete the construction of a
new VA medical facility near Denver, CO. I am joined by my colleague
Senator Salazar on this important legislation. Thankfully, Congress
authorized approximately 16 percent of the needed funds for this
project last year in order to finalize planning and site acquisition.
That is a promising start that enables the project planners to begin
the serious business of building this hospital. Although this was a
tremendous step forward, there is still a great deal more that needs to
be accomplished in order for this hospital to become a reality.
The current Denver VA hospital was built ``more than 50 years ago and
as we are all well aware, medical technology has far surpassed what the
builders of the Denver VA originally envisioned. This facility, which
hosted the first liver transplant in 1963, has provided tremendous care
over the years, but simply does not have the infrastructure to continue
to provide our veterans the care they need in the 21st century. While I
cannot say enough about the care and service our veterans receive at
the current facility, many changes and improvements can and should be
made, and a new facility is the only way to accomplish these goals.
This new VA hospital to be located at Fitzsimons campus and the
former home of the Fitzsimons Army Medical Center will carry on a
strong tradition of providing exceptional medical care for our Nation's
best and bravest citizens. The current Fitzsimons campus first began
treating wounded veterans in 1918, specializing in assisting those who
had been victims of chemical weapons in world War I. The facility
continued to grow through the 20th century and became one of the
premiere Veterans hospitals through World War II. Fitzsimons was even
unofficially deemed the ``White House of the West'' when President
Eisenhower spent 7 weeks in the facility while recovering from a heart
condition in 1955. Fitzsimons Hospital was even the birthplace of my
colleague, Senator Kerry.
The new facility will provide an example of successful collaboration
between numerous parties and will be the culmination of years of hard
work. The Denver VA, the University of Colorado Health Sciences Center
and the University of Colorado Hospital already have a complex and
rewarding partnership in meeting veterans' healthcare needs in the
region, and all are partnered together on this unique project. The
University of Colorado, who currently owns the land for the new
hospital, strongly supports the move of the existing Denver VA medical
facility to the Fitzsimons Campus in Aurora, CO, and looks forward to
strengthening their partnership with the Veterans Administration,
allowing each entity to focus on its strengths.
Of course, the biggest endorsement of this new facility comes
ultimately from the end-users: our veterans. The United Veterans
Committee of Colorado, a coalition of 45 federally chartered veterans'
service organizations, strongly supports the relocation of the Denver
VA medical center to the Fitzsimons campus and has worked closely with
my office and the Colorado congressional delegation over the years to
ensure its success.
Of course, not too long ago it looked like this project was in peril.
Thankfully, in 2005 Secretary Nicholson brought a much-needed, fresh
perspective to this project. He made it a priority and made it clear to
the entire Colorado delegation that he would pursue every opportunity
to make the project a reality. I commend his efforts and thank him for
his support. It is also important to mention the hard work and
diligence of those in Colorado who have also worked to ensure the
success of this new hospital. Without the extraordinary efforts put
forth by the Fitzsimons Redevelopment Authority and its chairman, city
of Aurora Mayor Ed Tauer, an agreement would not have been reached on
the ultimate location of the Hospital.
I strongly support authorization of this hospital and look forward to
seeing the completion of the new VA medical facility which undoubtedly
will serve as a regional beacon for modern veteran medical care science
not only for veterans in Colorado but throughout the entire Rocky
Mountain region as well.
Mr. SALAZAR. Mr. President, today Senator Allard and I are
introducing a bill that will authorize full funding for a state-of-the-
art veterans' hospital at the Fitzsimons campus in Aurora, CO.
This crown jewel of our veterans' health system will serve more than
424,000 veterans who live in Colorado, and many more who live in nearby
States, with the best available health care. Our veterans deserve the
best, and Fitzsimons will be the best.
Since the VA identified the Fitzsimons VA Hospital as one of its top
medical construction projects in 2004, I have fought to move this
project forward, although we've encountered some hurdles along the way.
But we are making progress. I helped bring all the stakeholders
together in 2005 so that supporters of the project, and advocates for
veterans' health care, could speak with one voice on Fitzsimons. Thanks
in part to this dialogue, in February of 2006 the VA finally reached
agreement with the Fitzsimons Authority on the purchase price of 24
acres at the site.
And just 2 months ago, in December, I was pleased that the omnibus
veterans' bill we passed, S. 3421, included a $98 million authorization
for Fitzsimons that was so desperately needed to keep the project on
track. Senator Allard and I fought hard for that authorization because
it allowed the VA to use unspent project funds from previous years, and
to begin spending more on the critical initial phases of the project.
Today, Senator Allard and I are introducing a bill that will complete
the authorization for Fitzsimons VA Hospital. Our bill authorizes the
remaining $523 million necessary to complete the project. It is a
straightforward bill that we should pass as soon as possible to ensure
we don't run into any costly construction delays down the road.
I spoke with Secretary Nicholson about this project just last week,
and he reiterated his commitment to getting this project done as soon
as possible. Just as the VA must keep Fitzsimons at the top of its
priority list, so too should Congress do its part by completing the
authorization for the project.
I look forward to the day when our veterans can enjoy the benefits of
a new state-of-the-art facility at Fitzsimons. They have more than
earned the high quality care they will receive there, and I urge this
body to keep the project on track by passing this bill as soon as
possible.
______
By Mr. GRASSLEY:
S. 473. A bill to improve the prohibitions on money laundering, and
for other purposes; to the Committee on the Judiciary.
Mr. GRASSLEY. Mr. President, I rise to speak in support of a bill
that I am introducing today, the Combating Money Laundering and
Terrorist Financing Act of 2007.
The life-blood of any criminal organization or enterprise is money.
Whether engaged in drug dealing or terrorism, criminals cannot operate
without money. The targeting of efforts by criminals to hide
illegitimate funds in legitimate financial institutions has long been a
focus of law enforcement.
[[Page S1524]]
Yet like all other aspects of criminal activity, money laundering
continues to evolve into newer and more complex forms. This is
particularly true in the funding of terrorist organizations and
operations. Therefore, money laundering remains not only a criminal
racket but also poses a grave threat to our national security.
Tracking how terrorists obtain, store, and move illicit funds is
among the most critical aspects of stopping their efforts. Among its
recommendations, the 9/11 Commission report stated that, ``Vigorous
efforts to track terrorist financing must remain front and center in
the U.S. counterterrorism efforts.'' We have made some significant
strides in identifying how terrorists accumulate and move money, but
more remains to be done. Terrorists and criminal networks continually
evolve new ways of using legitimate means to launder illegally obtained
funds. We must not underestimate the intelligence or resolve of these
groups. Many have already utilized loopholes in current law to hide
funds or circumvent required reporting to U.S. Customs officials.
Work must continue so that terrorists and other criminals are left
without the ability to hide illegally obtained funds inside or in
concert with legitimate means. We should commit to increasing pressure
on these organizations to make money laundering as difficult and
unprofitable as possible. And ultimately, we must give law enforcement
and prosecutors the ability to effectively deal with criminals' ever-
changing tactics.
The legislation that I am introducing today will strengthen our
current money laundering statutes by streamlining those laws, closing
those loopholes in the laws exploited by criminal organizations, and
creating more efficient means for dealing with violators of money
laundering laws. My bill goes about doing this in several ways.
First, my bill deals with the problem of ``specified unlawful
activities'' or ``SUAs.'' SUAs are predicate offenses required for
current money laundering statutes to apply, and there are currently
over 200 of them. As criminals continue to change methods of laundering
money, the list of SUAs will continue to grow. This legislation will
prevent criminals from turning to other means not designated as an SUA,
and will consolidate the ever growing list of SUAs by including all
federal and state offenses punishable by imprisonment for more than one
year. Also, criminals will no longer be able to hide behind borders, as
this legislation would subject violations in foreign countries that
have an effect on the U.S. to the same penalties as if they had
occurred in the United States.
Currently, most circuit courts must charge each violation of money
laundering statutes separately. My bill will allow, at the election of
the government, prosecutors to charge multiple acts under one count in
an indictment. This will significantly reduce the time and expense
incurred by the courts in these cases, versus the current method of
charging each and every violation separately.
Criminals have realized that the movement of large sums of money
through traditional financial institutions will result in increased
scrutiny and investigation. Therefore, many have turned to smuggling
large quantities of money via a courier or bulk cash smuggling. They
have developed techniques to avoid having to declare property with a
value greater than $10,000 and to protect those couriers who are
caught. My legislation will remove the criminal's ability to get around
current laws, and remove protections for the smuggler.
For example, current law requires that couriers know specifics about
the illegal activities that produced the monies they carry before they
may be prosecuted under money laundering statutes. As a result, many
claim ignorance about the illegal origins of the money and are
released. With my bill, couriers will now be held responsible for their
actions, even if they try to claim ignorance. Therefore, law
enforcement can get both the courier and the money off the street. This
bill also would stiffen the penalty for bulk cash smuggling to 10
years.
Another tactic now being used by criminals is to have couriers carry
blank checks in bearer form. The couriers argue that the check has no
amount, so it is not subject to declaration. Once the courier arrives
at his destination, he merely has to fill in the amount, whatever it
may be. My legislation would remove this loophole by setting the value
of any blank check in bearer form equal to the highest amount in that
account during the time period it was being transported, or when it is
cashed.
My bill also seeks to mitigate the tactics of ``commingling funds''
and ``structured transactions.'' The ``commingling funds'' tactic
involves depositing illegal money in an account with legitimate funds.
Under current law, criminals can argue that money withdrawn from the
account was from the legitimate sources. The language in this bill
would clarify that transactions on accounts containing more than
$10,000 in illegally obtained funds will be considered a transaction
involving more than $10,000 in criminally derived property, regardless
of how the other money in the account was obtained. Nor will criminals
be allowed to avoid the law by structuring smaller transactions below
the $10,000 reporting requirement. Under my bill, individual but
related transactions will be considered at their aggregate value.
Finally, this bill will provide the United States Secret Service with
the legislative and financial resources it needs to combat
counterfeiters and other criminals seeking to harm our financial
systems. The U.S. Federal Reserve Note is the most identifiable
currency in the world and the backbone of many other nations'
economies. To help ensure continued stability of the Greenback
worldwide, my bill will make illegal the possession of any materials
used to make counterfeit currency. This is necessary because technology
has evolved far beyond the old days of printing plates, stones, and
digital images. Like the evolving tactics used by those in money
laundering operations, the counterfeiter constantly changes his tactics
and technologies. Furthermore, the crime of counterfeiting is becoming
more and more international in scope every day. The Secret Service has
identified counterfeiting operations in Colombia, Nigeria, Italy, Iraq,
and North Korea. This is apparent in the use of bleached notes.
Bleached notes are simply bills with low denominations being bleached
with chemicals. This produces a blank canvas of genuine currency paper
for counterfeiters to work with, to which they can add higher
denominations. My bill will make it illegal to possess these bleached
or otherwise altered notes, and give the Secret Service the
authorization it needs to pursue these criminals outside the United
States.
Additionally, this bill gives the Secret Service the authorization to
use funds seized from criminals to pay for ongoing undercover
investigations. This seems like common sense, and indeed, every other
federal investigative agency has this authority. Tasked with protecting
our financial systems, the Secret Service should be provided with all
the resources necessary to fund its undercover operations. This makes
even more sense, considering it's the criminals themselves who would be
paying those bills. My bill provides that authority to the Secret
Service and will allow them to continue the important work of
protecting our financial infrastructure.
As I said, money is essential for the operation of any criminal or
terrorist organization. The ability to get, move, and hide these funds
is critical to the operations of both. We have had some success in
thwarting this ability, as is evident by the constantly changing
techniques for laundering money. We must continue to apply pressure on
these groups, and do everything we can to identify and stop their
financing operations. This bill is designed to do just that, and put
these organizations out of business for good. I urge my colleagues to
join me and my cosponsors, Senators Kyl, Cornyn, and Graham, in
supporting this legislation to combat the financing of criminal and
terrorist activities.
Mr. President, I ask unanimous consent that the text of this 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. 473
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
[[Page S1525]]
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Combating
Money Laundering and Terrorist Financing Act of 2007''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--MONEY LAUNDERING
Sec. 101. Specified unlawful activity.
Sec. 102. Making the domestic money laundering statute apply to
``reverse money laundering'' and interstate
transportation.
Sec. 103. Procedure for issuing subpoenas in money laundering cases.
Sec. 104. Transportation or transhipment of blank checks in bearer
form.
Sec. 105. Bulk cash smuggling.
Sec. 106. Violations involving commingled funds and structured
transactions.
Sec. 107. Charging money laundering as a course of conduct.
Sec. 108. Illegal money transmitting businesses.
Sec. 109. Knowledge that the property is the proceeds of a specific
felony.
Sec. 110. Extraterritorial jurisdiction.
Sec. 111. Conduct in aid of counterfeiting.
Sec. 112. Use of proceeds derived from criminal investigations.
TITLE II--TECHNICAL AMENDMENTS
Sec. 201. Technical amendments to sections 1956 and 1957 of title 18.
TITLE I--MONEY LAUNDERING
SEC. 101. SPECIFIED UNLAWFUL ACTIVITY.
Section 1956(c)(7) of title 18, United States Code, is
amended to read as follows:
``(7) the term `specified unlawful activity' means--
``(A) any act or activity constituting an offense in
violation of the laws of the United States or any State
punishable by imprisonment for a term exceeding 1 year; and
``(B) any act or activity occurring outside of the United
States that would constitute an offense covered under
subparagraph (A) if the act or activity had occurred within
the jurisdiction of the United States or any State;''.
SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING STATUTE APPLY
TO ``REVERSE MONEY LAUNDERING'' AND INTERSTATE
TRANSPORTATION.
(a) In General.--Section 1957 of title 18, United States
Code, is amended--
(1) in the heading, by inserting ``or in support of
criminal activity'' after ``specified unlawful activity'';
(2) in subsection (a), by striking ``Whoever'' and
inserting the following:
``(1) Whoever''; and
(3) by adding at the end the following:
``(2) Whoever--
``(A) in any of the circumstances set forth in subsection
(d)--
``(i) conducts or attempts to conduct a monetary
transaction involving property of a value that is greater
than $10,000; or
``(ii) transports, attempts to transport, or conspires to
transport property of a value that is greater than $10,000;
``(B) in or affecting interstate commerce; and
``(C) either--
``(i) knowing that the property was derived from some form
of unlawful activity; or
``(ii) with the intent to promote the carrying on of
specified unlawful activity;
shall be fined under this title, imprisoned for a term of
years not to exceed the statutory maximum for the unlawful
activity from which the property was derived or the unlawful
activity being promoted, or both.''.
(b) Chapter Analysis.--The item relating to section 1957 in
the table of sections for chapter 95 of title 18, United
States Code, is amended to read as follows:
``1957. Engaging in monetary transactions in property derived from
specified unlawful activity or in support of criminal
activity.''.
SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY LAUNDERING
CASES.
(a) In General.--Section 986 of title 18, United States
Code, is amended by adding at the end the following:
``(e) Procedure for Issuing Subpoenas.--The Attorney
General, the Secretary of the Treasury, or the Secretary of
Homeland Security may issue a subpoena in any investigation
of a violation of sections 1956, 1957 or 1960, or sections
5316, 5324, 5331 or 5332 of title 31, United States Code, in
the manner set forth under section 3486.''.
(b) Grand Jury and Trial Subpoenas.--Section
5318(k)(3)(A)(i) of title 31, United States Code, is
amended--
(1) by striking ``related to such correspondent account'';
(2) by striking ``or the Attorney General'' and inserting
``, the Attorney General, or the Secretary of Homeland
Security''; and
(3) by adding at the end the following:
``(iii) Grand jury or trial subpoena.--In addition to a
subpoena issued by the Attorney General, Secretary of the
Treasury, or the Secretary of Homeland Security under clause
(i), a subpoena under clause (i) includes a grand jury or
trial subpoena requested by the Government.''.
(c) Fair Credit Reporting Act Amendment.--Section 604(a)(1)
of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is
amended--
(1) by striking ``or''; and
(2) by inserting before the period the following: ``, or an
investigative subpoena issued under section 5318 of title 31,
United States Code''.
(d) Obstruction of Justice.--Section 1510(b) of title 18,
United States Code, is amended--
(1) in paragraph (2)(A), by inserting ``or an investigative
subpoena issued under section 5318 of title 31, United States
Code'' after ``grand jury subpoena''; and
(2) in paragraph (3)(B), by inserting ``, an investigative
subpoena issued under section 5318 of title 31, United States
Code,'' after ``grand jury subpoena''.
(e) Right to Financial Privacy Act.--Section 1120 of the
Right to Financial Privacy Act of 1978 (12 U.S.C. 3420) is
amended--
(1) in subsection (a)(1), by inserting ``or to the
Government'' after ``to the grand jury''; and
(2) in subsection (b)(1), by inserting ``, or an
investigative subpoena issued pursuant to section 5318 of
title 31, United States Code,'' after ``grand jury
subpoena''.
SEC. 104. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN
BEARER FORM.
Section 5316 of title 31, United States Code, is amended by
adding at the end the following:
``(e) Monetary Instruments With Amount Left Blank.--For
purposes of this section, a monetary instrument in bearer
form that has the amount left blank, such that the amount
could be filled in by the bearer, shall be considered to have
a value equal to the highest value of the funds in the
account on which the monetary instrument is drawn during the
time period the monetary instrument was being transported or
the time period it was negotiated or was intended to be
negotiated.''.
SEC. 105. BULK CASH SMUGGLING.
Section 5332 of title 31, United States Code, is amended--
(1) in subsection (b)(1), by striking ``5 years'' and
inserting ``10 years''; and
(2) by adding the end the following:
``(d) Investigative Authority.--Violations of this section
may be investigated by the Attorney General, the Secretary of
the Treasury, the Secretary of Homeland Security, and the
Postal Service.''.
SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS AND
STRUCTURED TRANSACTIONS.
Section 1957(f) of title 18, United States Code, is
amended--
(1) in paragraph (2) by striking ``and'' at the end;
(2) in paragraph (3), by striking the period and inserting
a semicolon; and
(3) by adding at the end the following:
``(4) the term `monetary transaction in criminally derived
property that is of a value greater than $10,000' includes--
``(A) a monetary transaction involving the transfer,
withdrawal, encumbrance or other disposition of more than
$10,000 from a bank account in which more than $10,000 in
proceeds of specified unlawful activity have been commingled
with other funds;
``(B) a series of monetary transactions in amounts under
$10,000 that exceed $10,000 in the aggregate and that are
closely related to each other in terms of such factors as
time, the identity of the parties involved, the nature and
purpose of the transactions, and the manner in which they are
conducted; and
``(C) any financial transaction covered under section
1956(j) that involves more than $10,000 in proceeds of
specified unlawful activity; and
``(5) the term `monetary transaction involving property of
a value that is greater than $10,000' includes a series of
monetary transactions in amounts under $10,000 that exceed
$10,000 in the aggregate and that are closely related to each
other in terms of such factors as time, the identity of the
parties involved, the nature and purpose of the transactions,
and the manner in which they are conducted.''.
SEC. 107. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.
(a) In General.--Section 1956 of title 18, United States
Code, is amended by adding at the end the following:
``(j) Multiple Violations.--Multiple violations of this
section that are part of the same scheme or continuing course
of conduct may be charged, at the election of the Government,
in a single count in an indictment or information.''.
(b) Conspiracies.--Section 1956(h) of title 18, United
States Code, is amended by striking ``or section 1957'' and
inserting ``, section 1957, or section 1960''.
SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) Technical Amendments.--
(1) In general.--Section 1960 of title 18, United States
Code, is amended--
(A) in the heading by striking ``unlicensed'' and inserting
``illegal'';
(B) in subsection (a), by striking ``unlicensed'' and
inserting ``illegal''; and
(C) in subsection (b)(1), by striking ``unlicensed'' and
inserting ``illegal''.
(2) Chapter analysis.--The item relating to section 1960 in
the table of sections for chapter 95 of title 18, United
States Code, is amended to read as follows:
``1960. Prohibition of illegal money transmitting businesses.''.
(b) Definition of Business To Include Informal Value
Transfer Systems and Money Brokers for Drug Cartels.--Section
1960(b) of title 18, United States Code, is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period and inserting
``; and''; and
[[Page S1526]]
(3) by adding at the end the following:
``(4) the term `business' includes any person or
association of persons, formal or informal, licensed or
unlicenced, that provides money transmitting services on
behalf of any third party in return for remuneration or other
consideration.''.
(c) Prohibition of Unlicensed Money Transmitting
Businesses.--Section 1960(b)(1)(B) of title 18, United States
Code, is amended by inserting the following before the
semicolon: ``, whether or not the defendant knew that the
operation was required to comply with such registration
requirements''.
(d) Authority To Investigate.--Section 1960 of title 18,
United States Code, is amended by adding at the end the
following:
``(c) Authority To Investigate.--Violations of this section
may be investigated by the Attorney General, the Secretary of
the Treasury, and the Secretary of Homeland Security.''.
SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A
SPECIFIC FELONY.
(a) Proceeds of a Felony.--Section 1956(c)(1) of title 18,
United States Code, is amended by inserting ``, and
regardless of whether or not the person knew that the
activity constituted a felony'' before the semicolon at the
end.
(b) Intent To Conceal or Disguise.--Section 1956(a) of
title 18, United States Code, is amended--
(1) in paragraph (1)(B)(i), by striking ``specified
unlawful activity'' and inserting ``some form of unlawful
activity''; and
(2) in paragraph (2)(B)(i), by striking ``specified
unlawful activity'' and inserting ``some form of unlawful
activity''.
SEC. 110. EXTRATERRITORIAL JURISDICTION.
Section 1956(f)(1) of title 18, United States Code, is
amended by inserting ``or has an effect in the United
States'' after ``conduct occurs in part in the United
States''.
SEC. 111. CONDUCT IN AID OF COUNTERFEITING.
(a) In General.--Section 474(a) of title 18, United States
Code, is amended by inserting after the paragraph beginning
``Whoever has in his control, custody, or possession any
plate'' the following:
``Whoever, with intent to defraud, has custody, control, or
possession of any material that can be used to make, alter,
forge, or counterfeit any obligation or other security of the
United States or any part of such obligation or security,
except under the authority of the Secretary of the Treasury;
or''.
(b) Foreign Obligations and Securities.--Section 481 of
title 18, United States Code, is amended by inserting after
the paragraph beginning ``Whoever, with intent to defraud''
the following:
``Whoever, with intent to defraud, has custody, control, or
possession of any material that can be used to make, alter,
forge, or counterfeit any obligation or other security of any
foreign government, bank, or corporation; or''.
(c) Counterfeit Acts.--Section 470 of title 18, United
States Code, is amended by striking ``or 474'' and inserting
``474, or 474A''.
(d) Strengthening Deterrents to Counterfeiting.--Section
474A of title 18, United States Code is amended--
(1) in subsection (a)--
(A) by inserting ``, custody,'' after ``control'';
(B) by inserting ``, forging, or counterfeiting'' after
``to the making'';
(C) by striking ``such obligation'' and inserting
``obligation''; and
(D) by inserting ``of the United States'' after ``or other
security'';
(2) in subsection (b)--
(A) by inserting ``, custody,'' after ``control'';
(B) striking ``any essentially identical feature or
device'' and inserting ``any material or other thing made
after or in the similitude of any such deterrent''; and
(C) by inserting ``, forging, or counterfeiting'' after
``to the making'';
(3) by redesignating subsection (c) as subsection (d); and
(4) by inserting after subsection (b) the following:
``(c) Whoever has in his control, custody, or possession
any altered obligation or security of the United States or
any foreign government adapted to the making, forging, or
counterfeiting of any obligation or security of the United
States or any foreign government, except under the authority
of the Secretary of the Treasury, is guilty of a class B
felony.''.
SEC. 112. USE OF PROCEEDS DERIVED FROM CRIMINAL
INVESTIGATIONS.
(a) Authority of Secret Service.--During fiscal years 2008
through 2010, with respect to any undercover investigative
operation of the United States Secret Service (in this
section referred to as the ``Secret Service'') which is
necessary for the detection and prosecution of crimes against
the United States--
(1) sums authorized in any such fiscal year to be
appropriated for the Secret Service, including any
unobligated balances available from prior fiscal years, may
be used to purchase property, buildings, and other
facilities, and to lease space, within the United States, the
District of Columbia, and the territories and possessions of
the United States, without regard to--
(A) sections 1341 and 3324 of title 31 of the United States
Code;
(B) section 8141 of title 40 of the United States Code;
(C) sections 3732(a) and 3741 of the Revised Statutes of
the United States (41 U.S.C. 11(a) and 22); and
(D) sections 304(a) and 305 of the Federal Property and
Administrative Services Act of 1949 ( 41 U.S.C. 254(a) and
255);
(2) sums authorized in any such fiscal year to be
appropriated for the Secret Service, including any
unobligated balances available from prior fiscal years, may
be used--
(A) to establish or to acquire proprietary corporations or
business entities as part of an undercover investigative
operation; and
(B) to operate such corporations or business entities on a
commercial basis, without regard to sections 9102 and 9103 of
title 31 of the United States Code;
(3) sums authorized in any such fiscal year to be
appropriated for the Secret Service, including any
unobligated balances available from prior fiscal years, and
the proceeds seized, earned, or otherwise accrued from any
such undercover investigative operation, may be deposited in
banks or other financial institutions, without regard to--
(A) section 648 of title 18 of the United States Code; and
(B) section 3302 of title 31 of the United States Code; and
(4) proceeds seized, earned, or otherwise accrued from any
such undercover investigative operation may be used to offset
the necessary and reasonable expenses incurred in such
operation, without regard to section 3302 of title 31 of the
United States Code.
(b) Written Certification of Director Required.--
(1) In general.--The authority granted under subsection (a)
may be exercised only upon the written certification of the
Director of the Secret Service or the Director's designee.
(2) Content of certification.--Each certification issued
under paragraph (1) shall state that any action authorized
under paragraph (1), (2), (3), or (4) of subsection (a) is
necessary to conduct the undercover investigative operation.
(3) Duration of certification.--Each certification issued
under paragraph (1) shall continue in effect for the duration
of the undercover investigative operation, without regard to
fiscal years.
(c) Transfer of Proceeds to Treasury.--As soon as
practicable after the proceeds from an undercover
investigative operation with respect to which an action is
authorized and carried out under paragraphs (3) and (4) of
subsection (a) are no longer necessary for the conduct of
such operation, such proceeds, or the balance of such
proceeds, remaining at the time shall be deposited in the
Treasury of the United States as miscellaneous receipts.
(d) Corporations With a High Net Value.--
(1) In general.--If a corporation or business entity
established or acquired as part of an undercover
investigative operation under subsection (a)(2) having a net
value of over $50,000 is to be liquidated, sold, or otherwise
disposed of, the Secret Service, as much in advance as the
Director of the Secret Service or the Director's designee
determines is practicable, shall report the circumstances of
such liquidation, sale, or other disposition to the Secretary
of Homeland Security.
(2) Transfer of proceeds to treasury.--The proceeds of any
liquidation, sale, or other disposition of any corporation or
business entity under paragraph (1) shall, after all other
obligations are met, be deposited in the Treasury of the
United States as miscellaneous receipts.
(e) Audits.--The Secret Service shall--
(1) conduct, on a quarterly basis, a detailed financial
audit of each completed undercover investigative operation
where a written certification was issued pursuant to this
section; and
(2) report the results of each such audit in writing to the
Secretary of Homeland Security.
TITLE II--TECHNICAL AMENDMENTS
SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 1957 OF
TITLE 18.
(a) Unlawful Activity.--Section 1956(c) of title 18, United
States Code, is amended--
(1) in paragraph (2), by striking `` `conducts' '' and
inserting `` `conduct' ''; and
(2) in paragraph (7)(F), by inserting ``, as defined in
section 24(a)'' before the semicolon.
(b) Property From Unlawful Activity.--Section 1957 of title
18, United States Code, is amended--
(1) in subsection (a), by striking ``engages or attempts to
engage in'' and inserting ``conducts or attempts to
conduct''; and
(2) in subsection (f)--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(4) the term `conduct' has the meaning given such term
under section 1956(c)(2).''.
______
By Mrs. HUTCHISON (for herself and Mr. Cornyn):
S. 474. A bill to award a congressional gold medal to Michael Ellis
DeBakey, M.D.; to the Committee on Banking, Housing, and Urban Affairs.
Mrs. HUTCHISON. Mr. President, I rise today to acknowledge the
lifetime achievements of my dear friend Dr. Michael Ellis DeBakey, a
public servant and world-renowned cardiologist, by re-introducing
legislation to award him the Congressional Gold Medal.
Throughout his life, Dr. DeBakey has made numerous advances in the
field of
[[Page S1527]]
medicine. When he was only 23 years of age and still attending medical
school, Dr. DeBakey developed a roller pump for blood transfusions--the
precursor and major component of the heart-lung machine used in the
first open-heart operation. This device later led to national
recognition for his expertise in vascular disease. His service to our
country did not stop there.
Dr. DeBakey put his practice on hold and volunteered for military
service during World War II with the Surgeon General's staff. During
this time, he received the rank of Colonel and Chief of Surgical
Consultants Division.
As a result of his military and medical experience, Dr. DeBakey made
numerous recommendations to improve the military's medical procedures.
His efforts led to the development of mobile army surgical hospitals,
better known as MASH units, which earned him the Legion of Merit in
1945.
After WWII, Dr. DeBakey continued his hard work by proposing national
and specialized medical centers for those soldiers who were wounded or
needed follow-up treatment. This recommendation evolved into the
Veterans Affairs Medical Center System and the establishment of the
commission on Veterans Medical Problems of the National Research
Council.
In 1948, Dr. DeBakey joined the Baylor University College of
Medicine, where he started its first surgical residency program and was
later elected the first President of Baylor College of Medicine.
Adding to his list of accomplishments, Dr. DeBakey performed the
first successful procedure to treat patients with aneurysms. In 1964,
Dr. DeBakey performed the first successful coronary bypass surgery,
opening the doors for surgeons to perform preventative procedures to
save the lives of many people with heart disease. He was also the first
to successfully use a partial artificial heart. Later that same year,
President Lyndon B. Johnson appointed Dr. DeBakey as Chairman of the
President's Commission on Heart Disease, Cancer and Stroke, which led
to the creation of Regional Medical Programs. These programs coordinate
medical schools, research institutions and hospitals to enhance
research and training.
Dr. DeBakey continued to amaze the medical world when he pioneered
the field of telemedicine by performing the first open-heart surgery
transmitted over satellite and then supervised the first successful
multi-organ transplant, where a heart, both kidneys and a lung were
transplanted from a single donor into four separate recipients.
These accomplishments have led to national recognition. Dr. DeBakey
has received both the Presidential Medal of Freedom with Distinction
from President Johnson and the National Medal of Science from President
Ronald Reagan.
Recently, Dr. DeBakey worked with NASA engineers to develop the
DeBakey Ventricular Assist Device, which may eliminate the need for
some patients to receive heart transplants.
I stand here today to acknowledge Dr. DeBakey's invaluable work and
significant contribution to medicine by offering a bill to award him
the Congressional Gold Medal. His efforts and innovative surgical
techniques have since saved the lives of thousands, if not millions, of
people. I ask my Senate colleagues to join me in recognizing the
profound impact this man has had on medical advances, the delivery of
medicine and how we care for our Veterans. Although, Dr. DeBakey is not
a native of Texas, he has made Texas proud. He has guided the Baylor
College of Medicine and the city of Houston into becoming a world
leader in medical advancement. On behalf of all Texans, I thank Dr.
DeBakey for his lifetime of commitment and service, not only to the
medical community, but to the world.
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. 474
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. FINDINGS.
The Congress makes the following findings:
(1) Michael Ellis DeBakey, M.D., was born on September 7,
1908, in Lake Charles, Louisiana, to Shaker and Raheeja
DeBakey.
(2) Dr. DeBakey, at the age of 23 and still a medical
student, reported a major invention, a roller pump for blood
transfusions, which later became a major component of the
heart-lung machine used in the first successful open-heart
operation.
(3) Even though Dr. DeBakey had already achieved a national
reputation as an authority on vascular disease and had a
promising career as a surgeon and teacher, he volunteered for
military service during World War II, joining the Surgeon
General's staff and rising to the rank of Colonel and Chief
of the Surgical Consultants Division.
(4) As a result of this first-hand knowledge of military
service, Dr. DeBakey made numerous recommendations for the
proper staged management of war wounds, which led to the
development of mobile army surgical hospitals or ``MASH''
units, and earned Dr. DeBakey the Legion of Merit in 1945.
(5) After the war, Dr. DeBakey proposed the systematic
medical follow-up of veterans and recommended the creation of
specialized medical centers in different areas of the United
States to treat wounded military personnel returning from
war, and from this recommendation evolved the Veterans
Affairs Medical Center System and the establishment of the
Commission on Veterans Medical Problems of the National
Research Council.
(6) In 1948, Dr. DeBakey joined the Baylor University
College of Medicine, where he developed the first surgical
residency program in the city of Houston, and today, guided
by Dr. DeBakey's vision, the College is one of the most
respected health science centers in the Nation.
(7) In 1953, Dr. DeBakey performed the first successful
procedures to treat patients who suffered aneurysms leading
to severe strokes, and he later developed a series of
innovative surgical techniques for the treatment of aneurysms
enabling thousands of lives to be saved in the years ahead.
(8) In 1964, Dr. DeBakey triggered the most explosive era
in modern cardiac surgery, when he performed the first
successful coronary bypass, once again paving the way for
surgeons world-wide to offer hope to thousands of patients
who might otherwise succumb to heart disease.
(9) Two years later, Dr. DeBakey made medical history
again, when he was the first to successfully use a partial
artificial heart to solve the problems of a patient who could
not be weaned from a heart-lung machine following open-heart
surgery.
(10) In 1968, Dr. DeBakey supervised the first successful
multi-organ transplant, in which a heart, both kidneys, and
lung were transplanted from a single donor into 4 separate
recipients.
(11) In 1964, President Lyndon B. Johnson appointed Dr.
DeBakey to the position of Chairman of the President's
Commission on Heart Disease, Cancer and Stroke, leading to
the creation of Regional Medical Programs established ``to
encourage and assist in the establishment of regional
cooperative arrangements among medical schools, research
institutions, and hospitals, for research and training''.
(12) In the mid-1960's, Dr. DeBakey pioneered the field of
telemedicine with the first demonstration of open-heart
surgery to be transmitted overseas by satellite.
(13) In 1969, Dr. DeBakey was elected the first President
of Baylor College of Medicine.
(14) In 1969, President Lyndon B. Johnson bestowed on Dr.
DeBakey the Presidential Medal of Freedom with Distinction,
and in 1985, President Ronald Reagan conferred on him the
National Medal of Science.
(15) Working with NASA engineers, he refined existing
technology to create the DeBakey Ventricular Assist Device,
one-tenth the size of current versions, which may eliminate
the need for heart transplantation in some patients.
SEC. 2. CONGRESSIONAL GOLD MEDAL.
(a) Presentation Authorized.--The Speaker of the House of
Representatives and the President Pro Tempore of the Senate
shall make appropriate arrangements for the presentation, on
behalf of the Congress, of a gold medal of appropriate
design, to Michael Ellis DeBakey, M.D., in recognition of his
many outstanding contributions to the Nation.
(b) Design and Striking.--For purposes of the presentation
referred to in subsection (a), the Secretary of the Treasury
(referred to in this Act as the ``Secretary'') shall strike a
gold medal with suitable emblems, devices, and inscriptions
to be determined by the Secretary.
SEC. 3. DUPLICATE MEDALS.
The Secretary may strike and sell duplicates in bronze of
the gold medal struck pursuant to section 2 under such
regulations as the Secretary may prescribe, at a price
sufficient to cover the cost thereof, including labor,
materials, dies, use of machinery, and overhead expenses, and
the cost of the gold medal.
SEC. 4. STATUS OF MEDALS.
(a) National Medals.--The medals struck pursuant to this
Act are national medals for purposes of chapter 51 of title
31, United States Code.
(b) Numismatic Items.--For purposes of sections 5134 and
5136 of title 31, United States Code, all medals struck under
this Act shall be considered to be numismatic items.
SEC. 5. AUTHORITY TO USE FUND AMOUNTS; PROCEEDS OF SALE.
(a) Authority To Use Fund Amounts.--There is authorized to
be charged against the
[[Page S1528]]
United States Mint Public Enterprise Fund such amounts as may
be necessary to pay for the costs of the medals struck
pursuant to this Act.
(b) Proceeds of Sale.--Amounts received from the sale of
duplicate bronze medals authorized under section 3 shall be
deposited into the United States Mint Public Enterprise Fund.
______
By Mr. DOMENICI (for himself and Mr. Bingaman):
S. 475. A bill to increase the number of Deputy United States
Marshals that investigate immigration crimes; to the Committee on the
Judiciary.
Mr. DOMENICI. Mr. President, I rise today to with Senator Bingaman to
introduce legislation that provides resources that the U.S. Marshals
Service desperately needs for their role in improving the security of
our borders and enforcing our immigration laws.
Our U.S. Marshals are involved in several aspects of immigration
matters, including helping to transport criminal immigrants and
guarding them in federal courthouses. As we improve border security and
interior enforcement, our Marshals need increased staff to handle the
increased caseload that will be associated with those improvements.
Therefore, my legislation calls for hiring 50 new deputies each year
for five years. Increasing the number of Deputy U.S. Marshals by 250
new law enforcers will make a great impact on this service that is
stretched thin in their role relating to border security and
immigration enforcement. Without such legislation, we will only be
adding to the workload of our already thinly-stretched Marshals
Service.
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. 475
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DEPUTY UNITED STATES MARSHALS.
(a) Increase Positions.--In each of the fiscal years 2008
through 2012, the Attorney General, subject to the
availability of appropriations, shall increase by not less
than 50 the number of positions for full-time active duty
Deputy United States Marshals that investigate criminal
matters related to immigration.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Attorney General such sums as may
be necessary for each of the fiscal years 2008 through 2012
to carry out subsection (a).
______
By Mr. CRAPO (for himself and Mr. Craig):
S. 477. A bill to authorize the Secretary of the Interior to convey
certain land and improvements of the Gooding Division of the Minidoka
Project, Idaho; to the Committee on Energy and Natural Resources.
Mr. CRAPO. Mr. President, I am pleased to reintroduce a bill today
with my colleague, Senator Craig to formally convey title a portion of
the American Falls Reservoir District from the Bureau of Reclamation to
the National Park Service in our home State of Idaho.
The Minidoka Internment National Monument Draft General Management
Plan and Environment Impact Statement proposes, the transfer of these
two publicly owned parcels of land, which are both within and adjacent
to the existing 73-acre NPS boundary, and have been identified as
important for inclusion as part of the Monument. The sites were both
within the original 33,000-acre Minidoka Relocation Center that was
operated by the War Relocation Authority, where approximately 13,500
Japanese and Japanese Americans were held from 1942 through 1945.
The smaller 2.31-acre parcel is located in the center of the monument
in the old warehouse area and includes three historical buildings and
other important cultural features. The Draft General Management Plan
proposes to use this site for visitor services, including a Visitor
Contact Station within an original warehouse to greet visitors and
provide orientation for the monument. The other, a 7.87-acre parcel, is
on the east end of the monument and was undeveloped during WWII. The
NPS proposes to use this area for special events and to provide a site
for the development of a memorial for the Issei, first-generation
Japanese immigrants. These two publicly-owned properties are critical
for long-term development, visitor services, and protection and
preservation of historical structures and features at Minidoka
Internment National Monument.
I would like to add that this legislation was developed with and is
strongly supported by both the agencies involved and the local
communities. I ask my colleagues to join me in enacting this small land
transfer that we might move a step closer toward properly memorializing
an important, but often forgotten, chapter of our Nation's history.
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 printed
in the Record, as follows:
S. 477
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 ``American Falls Reservoir
District Number 2 Conveyance Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means Agreement No.
5-07-10-L1688 between the United States and the District,
entitled ``Agreement Between the United States and the
American Falls Reservoir District No. 2 to Transfer Title to
the Federally Owned Milner-Gooding Canal and Certain Property
Rights, Title and Interest to the American Falls Reservoir
District No. 2''.
(2) District.--The term ``District'' means the American
Falls Reservoir District No. 2, located in Jerome, Lincoln,
and Gooding Counties, Idaho.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 3. AUTHORITY TO CONVEY TITLE.
(a) In General.--In accordance with all applicable law and
the terms and conditions set forth in the Agreement, the
Secretary may convey--
(1) to the District all right, title, and interest in and
to the land and improvements described in Appendix A of the
Agreement, subject to valid existing rights;
(2) to the city of Gooding, located in Gooding County,
Idaho, all right, title, and interest in and to the 5.0 acres
of land and improvements described in Appendix D of the
Agreement; and
(3) to the Idaho Department of Fish and Game all right,
title, and interest in and to the 39.72 acres of land and
improvements described in Appendix D of the Agreement.
(b) Compliance With Agreement.--All parties to the
conveyance under subsection (a) shall comply with the terms
and conditions of the Agreement, to the extent consistent
with this Act.
SEC. 4. TRANSFER.
As soon as practicable after the date of enactment of this
Act, the Secretary shall direct the Director of the National
Park Service to include in and manage as a part of the
Minidoka Internment National Monument the 10.18 acres of land
and improvements described in Appendix D of the Agreement.
SEC. 5. COMPLIANCE WITH OTHER LAWS.
(a) In General.--On conveyance of the land and improvements
under section 3(a)(1), the District shall comply with all
applicable Federal, State, and local laws (including
regulations) in the operation of each facility transferred.
(b) Applicable Authority.--Nothing in this Act modifies or
otherwise affects the applicability of Federal reclamation
law (the Act of June 17, 1902 (32 Stat. 388, chapter 1093),
and Acts supplemental to and amendatory of that Act (43
U.S.C. 371 et seq.)) to project water provided to the
District.
SEC. 6. REVOCATION OF WITHDRAWALS.
(a) In General.--The portions of the Secretarial Orders
dated March 18, 1908, October 7, 1908, September 29, 1919,
October 22, 1925, March 29, 1927, July 23, 1927, and May 7,
1963, withdrawing the approximately 6,900 acres described in
Appendix E of the Agreement for the purpose of the Gooding
Division of the Minidoka Project, are revoked.
(b) Management of Withdrawn Land.--The Secretary, acting
through the Director of the Bureau of Land Management, shall
manage the withdrawn land described in subsection (a) subject
to valid existing rights.
SEC. 7. LIABILITY.
(a) In General.--Subject to subsection (b), upon completion
of a conveyance under section 3, the United States shall not
be liable for damages of any kind for any injury arising out
of an act, omission, or occurrence relating to the land
(including any improvements to the land) conveyed under the
conveyance.
(b) Exception.--Subsection (a) shall not apply to liability
for damages resulting from an injury caused by any act of
negligence committed by the United States (or by any officer,
employee, or agent of the United States) before the date of
completion of the conveyance.
(c) Federal Tort Claims Act.--Nothing in this section
increases the liability of the United States beyond that
provided in chapter 171 of title 28, United States Code.
SEC. 8. FUTURE BENEFITS.
(a) Responsibility of the District.--After completion of
the conveyance of land and
[[Page S1529]]
improvements to the District under section 3(a)(1), and
consistent with the Agreement, the District shall assume
responsibility for all duties and costs associated with the
operation, replacement, maintenance, enhancement, and
betterment of the transferred land (including any
improvements to the land).
(b) Eligibility for Federal Funding.--
(1) In General.--Except as provided in paragraph (2), the
District shall not be eligible to receive Federal funding to
assist in any activity described in subsection (a) relating
to land and improvements transferred under section 3(a)(1).
(2) Exception.--Paragraph (1) shall not apply to any
funding that would be available to a similarly situated
nonreclamation district, as determined by the Secretary.
SEC. 9. NATIONAL ENVIRONMENTAL POLICY ACT.
Before completing any conveyance under this Act, the
Secretary shall complete all actions required under--
(1) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.);
(3) the National Historic Preservation Act (16 U.S.C. 470
et seq.); and
(4) all other applicable laws (including regulations).
SEC. 10. PAYMENT.
(a) Fair Market Value Requirement.--As a condition of the
conveyance under section 3(a)(1), the District shall pay the
fair market value for the withdrawn lands to be acquired by
them, in accordance with the terms of the Agreement.
(b) Grant for Building Replacement.--As soon as practicable
after the date of enactment of this Act, and in full
satisfaction of the Federal obligation to the District for
the replacement of the structure in existence on that date of
enactment that is to be transferred to the National Park
Service for inclusion in the Minidoka Internment National
Monument, the Secretary, acting through the Commission of
Reclamation, shall provide to the District a grant in the
amount of $52,996, in accordance with the terms of the
Agreement.
______
By Mr. McCAIN (for himself and Mr. Feingold):
S. 478. A bill to amend the Federal Election Campaign Act of 1971 to
replace the Federal Election Commission with Federal Election
Administration, and for other purposes; to the Committee on Rules and
Administration.
Mr. McCAIN. Mr. President, I am pleased to be joined by my good
friend and colleague from Wisconsin, Senator Feingold in once again
introducing legislation to replace the Federal Election Commission
(FEC) with the Federal Election Administration (FEA). The FEA would
serve as an independent body to enforce Federal campaign laws--
something the FEC has been unable, and often unwilling, to do.
This legislation would terminate the FEC and establish a new
regulatory entity. Using a new organizational structure and
administrative law judges, we hope to avoid the routine partisan
deadlocks that are now so prevalent at the FEC.
This bill would authorize the new FEA to impose civil penalties,
issue cease and desist orders, report apparent criminal violations to
the appropriate law enforcement authorities, and conduct audits and
field examinations of campaign committees. Finally, this bill would
direct the Comptroller General to examine and report to Congress on the
enforcement of the criminal provisions of the Federal campaign finance
laws.
I urge my colleagues to support this common sense reform proposal.
______
By Mr. HARKIN (for himself, Mr. Grassley, Mr. Rockefeller, Ms.
Snowe, Mr. Durbin, Mr. Smith, Mr. Lautenberg, Mr. Thune, Mr.
Kerry, Mr. Brownback, and Mr. Schumer):
S. 479. A bill to reduce the incidence of suicide among veterans; to
the Committee on Veterans' Affairs.
Mr. HARKIN. Mr. President, I am honored to join with the
distinguished senior Senator from my State, Senator Grassley, to
introduce the Joshua Omvig Veterans Suicide Prevention Act.
During my years in the Navy, I learned one of the most important
lessons of my entire life: Never leave a buddy behind. That's true on
the battlefield--and it's also true after our servicemembers return
home. Taking care of our veterans is a continuing cost of national
defense, and we need to make sure we don't abandon them once they
return home.
Our service men and women endure tremendous stress during combat.
Almost all of our soldiers reported being under fire while serving in
Iraq and knowing someone seriously injured or killed. Returning home
and rejoining their families and friends can be a time of hope and joy,
but it can also be a time of enormous stress. In particular, the
traumas and memories of combat service can cause profound problems.
Army studies show that around 25 percent of soldiers who have served in
Iraq display symptoms of serious mental-health problems, including
depression, substance abuse and post-traumatic stress disorder (PTSD).
Tragically, suicide disproportionately affects veterans. In 2004,
veterans accounted for more than 20 percent of deaths by suicide, yet
they make up only 10 percent of the general population. We should be
addressing this shocking rate of suicide among our veterans. But the
Department of Veterans Affairs (VA) currently does not have appropriate
suicide prevention, early detection, and treatment programs available
to meet the needs of our veterans. This is unacceptable! The aim of our
bill is to improve early detection and intervention; provide access to
services for veterans in crisis; and, thereby, prevent the unnecessary
deaths of the men and women who have put their lives on the line to
defend our nation.
Joshua Omvig was one such veteran. Josh was a member of the United
States Army Reserve 339th MP Company, based in Davenport, IA. Before
leaving for Iraq, he was a member of the Grundy Center Volunteer Fire
Department and the Grundy Center Police Reserves. He felt honored to
serve his country in the Reserves and hoped to return to serve his
community as a police officer. Unfortunately, when he returned from his
11-month deployment in Iraq, he brought the traumas of war with him. He
committed suicide a few days before Christmas in 2005. He was just 22
years old.
This was a preventable death. If Josh and his family had had better
access to mental health services; if they had been trained to recognize
the symptoms of PTSD; and if they had known where to turn for help;
then the tragedy of his death might well have been avoided.
In his honor, Senator Grassley and I offer this legislation to
improve the services offered by the VA, and to bring down the appalling
rate of suicide among veterans.
First, this bill focuses on reducing the stigma associated with
seeking treatment for mental health problems. Almost 80 percent of
soldiers serving in Iraq and Afghanistan who exhibited signs of mental
health problems were not referred for mental health services. More than
two-thirds of the servicemembers who screened positive for a mental
health problem reported that they were concerned about the stigma
associated with seeking treatment.
Given these statistics, our bill calls for the creation of a mental
health campaign to increase awareness of mental illness and the risk
factors for suicide. Veterans need to hear from members of the chain of
command, leadership within the VA, and from their peers that seeking
mental health services is important for their health, their families,
and no different than seeking treatment for a physical health issue,
such as chronic pain or a broken leg.
Second, this bill ensures that VA staff and medical personnel will
receive suicide prevention and education training so that they can
recognize when and where to refer veterans for assistance.
Additionally, the legislation ensures 24-hour access to mental health
care for those who are at risk for suicide, including those in rural or
remote areas. Veterans who do not have easy access to VA hospitals and
veterans centers must be assured of access to services during periods
of crisis.
Finally, this bill recognizes the importance of family and peer
support. It trains peer counselors to understand the risk factors for
suicide, provide support during readjustment, and to assist veterans in
seeking help. This bill also engages family members by helping them to
understand the readjustment process; to recognize the signs and
symptoms of mental illness; and let them know where to turn for
assistance. By enlisting the aid and support of family members and
peers, we will reduce the likelihood that our veterans suffer in
isolation.
The stresses that our service men and women endure in combat are
strong and can trigger severe mental
[[Page S1530]]
health issues. Although our men and women may come home safely, the war
isn't over for them. Often, the physical wounds of combat are repaired,
but the mental damage--the psychological scars of combat--can haunt a
person for a lifetime. The Federal Government has a moral contract with
those who have fought for our country and sacrificed so much. Together,
we can work to make good on that contract. Our service men and women
deserve to know that we will not forget about their service--and we
will not leave them behind.
______
By Mr. KOHL (for himself, Mr. Hatch, and Mr. Specter):
S. 480. A bill to amend the Antitrust Modernization Commission Act of
2002, to extend the term of the Antitrust Modernization Commission and
to make a technical correction; to the Committee on the Judiciary.
Mr. KOHL. Mr. President, I rise today to introduce the Antitrust
Modernization Commission Extension Act of 2007. This legislation will
ensure that the Commission is able to finalize its report examining the
state of the Nation's antitrust laws in a timely manner by granting it
a brief 30 day extension to close out its operations. I thank my co-
sponsors Senators Hatch and Specter for joining me in introducing this
measure.
Congress established the Antitrust Modernization Commission through
the passage of the Antitrust Modernization Act of 2002. The
Commission's purpose was to ``examine whether the need exists to
modernize the antitrust laws'' of our Nation. In fulfillment of this
purpose the Commission is now finalizing a comprehensive report due to
both Congress and the President by April 2, 2007. Currently, the
Commission expects the report to be submitted in a timely manner. The
Commission is concerned, however, with the sufficiency of the
statutorily required 30 day deadline to dismantle itself following the
submission of the report.
In order to comply with the current statutory framework and shut down
operations within 30 days of the report's submission date, the
Commission will need to begin archiving its records prior to its
completion of the report. This large administrative undertaking will
interfere with the Commission's final efforts on the report given the
Commission's very limited staff resources. In view of the importance of
the report, it is imperative that no aspect of this report be
jeopardized by administrative deadlines. To alleviate this burden on
the closing operations of the Commission, I am introducing this
legislation to extend the Commission's administrative shutdown period
from 30 days to 60 days.
Granting an additional 30 days to the Commission will provide it with
time to archive Commission records and work product, while allowing it
to perform other necessary close-out tasks, including the transfer of
its acquired property to other government agencies, without interfering
with the completion of its report. Furthermore, the time extension
requested does not contemplate the appropriation of any additional
funding to the Commission. In fact, the Commission expects that it will
likely return at least $500,000 to the Treasury of the $4 million
allocated to it upon fulfillment of its purpose. This 30 day extension
is merely directed at the administrative process of wrapping up
operations.
I urge my colleagues to support this legislation that will
effectively and efficiently allow the Antitrust Modernization
Commission to complete its designated tasks.
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. 480
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 ``Antitrust Modernization
Commission Extension Act of 2007''.
SEC. 2. EXTENSION OF TERMINATION.
Section 11059 of the Antitrust Modernization Commission Act
of 2002 (15 U.S.C. 1 note) is amended--
(1) by striking ``30 days'' and inserting ``60 days''; and
(2) by striking ``section 8'' and inserting ``section
11058''.
______
By Mr. CONRAD (for himself, Mr. Domenici, Mr. Dorgan, Mr. McCain,
Mr. Bingaman, Mr. Kohl, and Mr. Thune):
S. 481. A bill to recruit and retain more qualified individuals to
teach in Tribal Colleges or Universities; to the Committee on Indian
Affairs.
Mr. CONRAD. Mr. President, 5 years ago, I formed the bipartisan Task
Force on Tribal Colleges and Universities to raise awareness of the
important role that the tribal colleges and universities play in their
respective communities as educational, economic, and cultural centers.
The Task Force seeks to advance initiatives that help improve the
quality education the colleges provide.
For more than 3 decades, tribal colleges have been providing a
quality education to help Native Americans of all ages reach their
fullest potential. More than 30,000 students from 250 tribes nationwide
attend tribal colleges. Tribal colleges serve young people preparing to
enter the job market, dislocated workers learning new skills, and
people seeking to move off welfare. I am a strong supporter of our
Nation's tribal colleges because, more than any other factor, they are
bringing hope and opportunity to America's Indian communities.
Over the years, I have met with many tribal college students, and I
am always impressed by their commitment to their education, their
families and their communities. Tribal colleges and universities have
been highly successful in helping Native Americans obtain a higher
education. Congress has recognized the importance of these institutions
and the significant gains they have achieved in helping more
individuals obtain their education. While Congress has steadily
increased its financial support of these institutions, many challenges
still remain.
One of the challenges that the tribal college presidents have
expressed to me is the frustration and difficulty they have in
attracting qualified individuals to teach at the colleges. Recruitment
and retention are difficult for many of the colleges because of their
geographic isolation and low faculty salaries.
To help tackle the challenges of recruiting and retaining qualified
faculty, I am introducing the Tribal Colleges and Universities Faculty
Loan Forgiveness Act. This legislation will provide student loan
forgiveness to individuals who commit to teach for up to five years in
one of the tribal colleges nationwide. Individuals who have Perkins,
Direct, or Guaranteed loans may qualify to receive up to $15,000 in
loan forgiveness. This will provide these institutions with extra help
in attracting qualified faculty, and thus help ensure that deserving
students receive a quality education. Finally, the bill also includes
loan forgiveness for nursing instructors at the few tribal colleges
with accredited nursing programs. Nursing instructors currently receive
loans through the Department of Health and Human Services for their
training. As a result, without the added provision in this bill, they
would not qualify for assistance.
I would be remiss if I did not recognize that former Senator Daschle
was responsible for spearheading this initiative for a number of years.
The tribal colleges lost a true champion, but I am pleased to carry
forward his vision and support for the colleges.
I am pleased that Senators Domenici, Dorgan, McCain, Bingaman, Kohl
and Thune are original cosponsors of this bill, and I look forward to
working with my colleagues to pass this important legislation.
______
By Mr. ENZI (for himself and Mr. Kennedy):
S. 484. A bill to amend the Public Health Service Act and the Federal
Food, Drug, and Cosmetic Act to improve drug safety and oversight, and
for other purposes; to the Committee on Health, Education, Labor, and
Pensions.
Mr. ENZI. Mr. President, I rise today to introduce a very important
bill, one that my colleague Senator Kennedy and I have been working on
for some time.
For decades, the United States has been the standard bearer in
bringing new drugs and medications to the world market. Like it or not,
the FDA
[[Page S1531]]
has a very important role in all of our daily lives. The FDA is
involved in ensuring the safety of the meals we are eating today, the
pills we are taking, and even the cell phones in our pockets and
briefcases. The FDA's role in our health and in our economy is broad.
Nearly half of all Americans take a prescription drug daily. Anyone
who prescribes, provides or takes a prescription drug could benefit
from enhanced safety and risk communication about these life-saving
products. Over the last few years, a spate of safety issues, such as
the withdrawal of the arthritis drug Vioxx and the labeling of
antidepressants for suicidality in adolescents, has caused a crisis of
public confidence in the FDA. I believe the American people are losing
confidence in the FDA and its ability to evaluate and weigh the
benefits and risks of prescription drugs. In addition, staff at the
agency feel like they are under heavy fire, with little or no
protection from the prevailing political winds, due to the lack of a
confirmed Commissioner of Food and Drugs for most of the last six
years. I believe that only Congress can restore the public's confidence
in FDA and morale at the agency.
In 2005, the HELP Committee held two hearings on the issue of drug
safety. We received over 50 recommendations from witnesses at those
hearings. At that time, Senator Kennedy and I pledged to develop a
comprehensive response to the drug safety issues raised. Last August,
we introduced the Enhancing Drug Safety and Innovation Act. That bill,
S. 3807, was the product of working across party lines, and created a
structured framework for resolving safety concerns. Careful and
comprehensive pre-approval planning of how drugmakers and FDA will
identify, assess and manage serious risks post-approval is a better way
to obtain safety information without compromising patient access.
In September 2006, the Institute of Medicine released its report
titled ``The Future of Drug Safety: Promoting and Protecting the Health
of the Public.'' The recommendations in this report had much in common
with S. 3807. The Senate HELP Committee held a hearing in November 2006
at which representatives of the IOM, a physician and drug safety
expert, patient groups, a consumer group, and a pharmaceutical company
testified about the IOM report, the bill, and the relationship between
them. In addition, other stakeholder groups made additional comments on
the bill. Yesterday, FDA released their response to the IOM report.
Newly confirmed Commissioner Dr. Andrew von Eschenbach has put forward
a number of promising ideas to improve the internal processes and
culture at FDA. His leadership is outstanding and his ideas are
helpful, but internal change is not enough to alter public perception.
FDA needs new drug safety authorities, and this bill provides those
authorities.
While the bill we are introducing today reflects numerous refinements
to clarify ambiguities or to address issues that S. 3807 had not
addressed, we realize that there are thoughtful differences of opinion
and ideas on how best to move forward with drug safety. I welcome any
and all suggestions on improving this bill, and I look forward to
working with my colleagues and other stakeholders to understand those
concerns more fully and incorporate any necessary changes in the bill
which will be considered in front of the HELP Committee in the next few
weeks. I hope that all of my colleagues will take another look at this
legislation and its goals and work with me to change the status quo.
Everyone agrees: We must do more for drug safety.
Under the Enhancing Drug Safety and Innovation Act, FDA would begin
to approve drugs and biologics, and new indications for these products,
with risk evaluation and mitigation strategies (REMS). The REMS is
designed to be an integrated, flexible mechanism to acquire and adapt
to new safety information about a drug. The sponsor and FDA will assess
and review an approved REMS at least annually for the first three
years, as well as in applications for a new indication, when the
sponsor suggests changes, or when FDA requests a review based on new
safety information.
The development of tools to evaluate medical products has not kept
pace with discoveries in basic science. New tools are needed to better
predict safety and efficacy, which in turn would increase the speed and
efficiency of applied biomedical research. The Enhancing Drug Safety
and Innovation Act would spur innovation by establishing a new public-
private partnership between the FDA, industry and academia to advance
the Critical Path Initiative and improve the sciences of developing,
manufacturing, and evaluating the safety and effectiveness of drugs,
devices, biologics and diagnostics.
The Enhancing Drug Safety and Innovation Act also establishes a
central clearinghouse for information about clinical trials and their
results to help patients, providers and researchers learn new
information and make more informed health care decisions.
Finally, the Enhancing Drug Safety and Innovation Act would make
improvements to FDA's process for screening advisory committee members
for financial conflicts of interest. FDA relies on its 30 advisory
committees to provide independent expert advice, lend credibility to
the product review process, and inform consumers of trends in product
development. The bill would clarify and streamline FDA's processes for
evaluating candidates for service on an advisory committee, and address
the key challenge of identifying a sufficient number of people with the
necessary expertise and the fewest potential conflicts of interest to
serve on advisory committees.
I want to thank the dozens of stakeholders, including the Food and
Drug Administration, patient and consumer groups, industry
associations, individual companies, and scientific experts who have
taken the time and effort to give us their comments and input on the
bill. Their assistance has been invaluable, and I look forward to
continuing to work with them as we go through this legislative process.
Senator Kennedy and I believe that this bipartisan effort will bring
more consistency, transparency, and accountability to the process of
assuring a drug's safety after it is approved. The 110th Congress will
hold an exceptionally full agenda with respect to the FDA. In addition
to updating the FDA's authorities as we are proposing today, Congress
must renew the drug and device user fee programs, as well as the Best
Pharmaceuticals for Children and Pediatric Research Equity Acts. The
introduction of this bill today is the beginning, not the end, of the
process, and I look forward to working with my colleagues to advance
these important pieces of legislation.
Mr. KENNEDY. Mr. President, it is a privilege to join Senator Enzi in
introducing the Enhancing Drug Safety and Innovation Act of 2007. The
goals of the legislation are to strengthen the Food and Drug
Administration's authority over the safety of prescription drugs after
they are approved; to encourage innovation in medical products; to
increase access to clinical trials for patients and ensure that doctors
and patients are aware of the results of clinical trials involving the
drugs they prescribe and use; and to improve the screening of members
of FDA's scientific advisory committees to avoid conflicts of interest.
The withdrawal of the drug Vioxx from the market 2 years ago
demonstrated again that all prescription drugs have risks, many of
which are unknown when a drug is approved, or even for years after
approval. We need a more effective system to identify and assess the
serious risks of drugs, inform health care providers and patients about
such risks, and manage and mitigate these risks as soon as they are
detected.
Our bill will require drugs to have a risk evaluation and mitigation
strategy when it is approved. For many drugs, the strategy will include
only the drug labeling, reports of adverse events, a justification for
why only such reporting is needed, and a timetable for assessing how
the REMS is working.
The FDA will be able to include additional requirements for drugs
that pose serious risks, such as by requiring that the drug be
dispensed with labels that patients can understand, that the drug
company have a plan to inform health care providers about how to use
the drug safely, and that a drug should not be advertised directly to
consumers for up to 2 years after approval. If a serious safety concern
needs to be understood, FDA can require further studies
[[Page S1532]]
or even clinical trials after the drug is approved. Enhanced data
collection and data mining techniques will help identify risk signals
earlier and more thoroughly.
For drugs with the most serious side effects, FDA will be able to
require that its risk evaluation and mitigation strategy include the
restrictions on distribution or use needed to assure its safe use.
The FDA will be able to impose any of these requirements at the time
a drug is approved. The agency can also modify the labeling or
otherwise alter a drug's availability after the approval. The drug's
manufacturer will propose the overall strategy, or modifications to it,
and the FDA and the company will try to work out an adequate
compromise. If the agency and the company cannot agree, the agency's
Drug Safety Oversight Board can review the dispute and recommend a
resolution to senior FDA officials, who will make the final decision.
Civil monetary penalties are added to FDA's traditional enforcement
authority to ensure compliance. Drug user fees will also be used to
review and implement the program.
The bill formalizes and makes mandatory what is now only informal and
voluntary. Our intent is not to change the standards for approving
drugs, but to see that the FDA has the ability to identify, assess, and
manage risks as they become known. Better risk management will mean
that drugs with special benefits for some patients will remain
available, despite serious risks for other patients, because FDA can
better identify the risks and manage them.
The bill helps to improve drug safety in other ways as well. The
Reagan-Udall Institute for Applied Biomedical Research will be a new
public-private partnership at the FDA to advance the agency's critical
path initiative. The initiative is intended to improve the science of
developing, manufacturing, and evaluating the safety and effectiveness
of drugs, biologics, medical devices, and diagnostics.
The Institute will be supported by Federal funds and by contributions
from the pharmaceutical and device industries. Philanthropic
organizations will be able to supplement Federal support. The institute
will have a board of directors and an executive director, and will
report to Congress annually on its operations.
The bill will also expand the public database at NIH to encourage
more patients to enroll in clinical trials of drugs. The database will
build on the current systems and would include late phase II, phase
III, and all phase IV clinical trials for all drugs.
A second, publicly available database would include the results of
phase III and phase IV clinical trials of drugs, with the possibility
that late phase II trials would be added later. Posting of results
could be delayed for up to 2 years, pending the approval of the drug or
the publication of trial results in a peer- reviewed journal.
The public needs to know about the results of clinical trials on
drugs. Tragically, such information was not adequately available for
the clinical studies of antidepressants in children.
Posting information in the clinical trials registry and the clinical
trials results database will be requirements for federal research
funding and for drug review and approval by the FDA. Both the FDA and
other appropriate offices in the Department of Health and Human
Services will review the content of submissions to the results database
to ensure they are truthful and nonpromotional. These Federal
requirements will preempt State requirements for clinical trial
databases.
Finally, the bill will improve FDA's process for screening advisory
committee members for financial conflicts of interest. The agency
relies on advisory committees to provide independent, expert,
nonbinding recommendations on significant issues. Ideally, committee
members should be free of any financial ties to the companies affected
by an issue before a committee. But at times, there may be no
individual without financial ties to such companies--for example, when
the issue involves a rare disease or a cutting edge medical technology.
In these cases, the FDA must be able to grant a waiver to allow an
individual with essential expertise to serve on the committee. The bill
will require the agency to seek qualified experts with minimal
conflicts, clarify how it makes waiver decisions, and disclose those
decisions at least 15 days before a committee meeting.
Our bill is a comprehensive response to drug safety and other
important issues involving prescription drugs and other medical
technologies. I commend Chairman Enzi and his dedicated staff--
especially Amy Muhlberg--for working closely with us on this proposal,
and I urge our colleagues to support it.
______
By Mr. KERRY (for himself and Ms. Snowe):
S. 485. A bill to amend the Clean Air Act to establish an economy-
wide global warming pollution emission cap-and-trade program to assist
the economy in transitioning to new clean energy technologies, to
protect employees and affected communities, to protect companies and
consumers from significant increases in energy costs, and for other
purposes; to the Committee on Finance.
Ms. SNOWE. Mr. President, I rise today to support the Global Warming
Reduction Act of 2007. Senator Kerry and I are here today offering this
legislation because the issue of global warming is no longer seriously
open to skepticism. The preponderance of peer-reviewed scientific
evidence is irrefutable and the cost of inaction incalculable. It is no
longer a question of science--it is now a question of political will.
I believe our bill offers a means by which anyone who is honestly
committed to addressing global warming can vote to improve our
environmental future while preserving our economy. We call for 65
percent reductions of greenhouse gas emissions by 2050 for all major
sectors of our society, and starting in 2010, we put these called-for
emissions reductions on a downward glide path to make the reductions
realistic yet aggressive. It takes a forward-looking, comprehensive,
science-based approach to tackling this issue without putting a
stranglehold on our economy. This is the right course at the right
cost.
While Congress fiddles, alpine glaciers and polar ice caps millions
of years old are melting. Sea levels are rising globally. Manmade
carbon dioxide levels and the average global temperature have increased
at unprecedented levels over the past century--and are projected to
increase up to 8.1 degrees Fahrenheit in the next 100 years. Meanwhile,
the CO2 we continue to release today while we await
meaningful action will remain in the atmosphere for at least a
century--with concentrations rising in the coming decades. Just think--
CO2 emissions from Henry Ford's very first car are still in
the atmosphere. Clearly, we can't afford to wait any longer.
And it's not as though we aren't literally catapulting toward a
consensus on at least the existence of the problem. We have a Federal
agency, NOAA, reporting that 2006 was the warmest year since regular
temperature records began in 1895 and the past nine years have been
among the 25 warmest years on record for the contiguous U.S. Even
though the President announced no new direct climate policy changes, he
did state in his most recent State of the Union Address that we must
confront the serious challenge of global climate change.
Just last week, a coalition of ten major U.S. companies came together
to form the U.S. Climate Action Partnership--Alcoa, BP America,
Caterpillar, Duke Energy, DuPont, General Electric, FPL Group, Lehman
Brothers, PG&E, and PNM Resources all have advocated for a mandatory
carbon cap-and-trade system--as our bill provides. Even ExxonMobil,
long skeptical on anthropogenic global warming, recently saw its CEO
state that ``the risk [of climate change] is so great that it justifies
taking action.''
Two years ago, I became co-chair of the International Climate Change
Taskforce, comprised of respected scientists, business leaders, and
elected officials from eight industrialized and developing nations. The
first and significant recommendation we published was to prevent global
temperatures from rising above 3.6 degrees Fahrenheit in the next
century--because science suggests that beyond this temperature increase
there is a tipping point--a possible abrupt climate change that would
have a catastrophic
[[Page S1533]]
effect on our ecosystems and our society.
This bill would prevent us from reaching that tipping point with a
required 65 percent reduction in CO2 emissions by 2050--a
figure that is both rigorous and realistic. And it does so by both
instituting the successful California emissions standards that have
already been embraced by other States--including seven northeastern
States like my home State of Maine--and that provide industry with
predictability and uniformity . . . and also putting in place a
flexible but mandatory carbon ``cap and trade'' system that uses the
power of the ``invisible hand'' to reduce emissions more cost-
effectively for businesses.
And to encourage greater investment in renewable energy, we also call
for 20 percent of America's electricity to come from renewable sources
by 2020. But at the same time we provide incentives for advanced
technologies so that existing industries can actually make investments
into cleaner infrastructure.
Moreover, with the U.S. comprising only four percent of the world's
population yet emitting 20 percent of the world's carbon dioxide, we
think it's time our response to this crisis become proportional to our
nation's contribution to the problem. And that's why our bill also
urges the U.S. to return to the international negotiating table.
Global warming is a comprehensive problem that demands the kind of
comprehensive approach our bill provides--with measures to minimize the
effects on our communities and our ecosystems that other bills
acknowledge are inevitable but do not address. Ours is the only climate
bill to be introduced that calls for research to assess the
vulnerability of coral reefs to increased CO2 deposits, and
of marine organisms throughout the marine food web. Our bill also calls
for the creation of a ``vulnerability scorecard'' to provide
communities with a yardstick for them to measure the potential impact
of climate change and make informed decisions to minimize the impact.
In the end, government leaders should make no mistake--the public
understands the severity of the risk of inaction on this crucial issue,
with half of voters reporting in a recent Zogby poll that concerns
about global warming made a difference in who they voted for and 58
percent said that combating global warming should be a high priority.
So the truth is that elected officials ignore the public's concerns
with global warming at their own peril--just as we ignore the danger to
the detriment of our children and future generations.
The opportunity to stop, and ultimately reverse, global climate
change is not open-ended. The clock is ticking . . . and the cost of
inaction continues to escalate. We recognize the major cause of global
warming and we understand what a solution requires. Now we are
compelled to muster the political will to make it happen--and the
Kerry-Snowe bill provides a reasonable yet vigorous path to follow.
Thank you.
______
By Mr. KENNEDY (for himself, Mr. Durbin, Mrs. Clinton, Mr.
Harkin, Mr. Rockefeller, Mr. Kerry, and Mr. Schumer):
S. 486. A bill to establish requirements for lenders and institutions
of higher education in order to protect students and other borrowers
receiving educational loans; to the Committee on Health, Education,
Labor, and Pensions.
Mr. KENNEDY. Mr. President, it's a privilege to join my colleague,
Senator Durbin, in introducing the Student Loan Sunshine Act, to
provide greater support for students and families across America who
are struggling with great difficulty to pay for college.
Over the past 20 years, the cost of attending college has doubled.
Today, the average cost of attendance at a 4-year public college is
almost $13,000. As a result, students and families are going deeper and
deeper into debt to finance the cost of higher education. In 1993,
fewer than a third of students at four-year colleges graduated with
debt to pay on their student loans. Today that number has doubled. Two-
thirds of students now graduate with student loan debt.
The average debt load has soared as well. In the past decade, it has
increased by 57 percent at public colleges and 38 percent at private
colleges. Today, the typical graduate leaves college saddled with
$17,000 in student loans.
Nowhere has this growth been more pronounced than in private student
loans. Until recently, most students who borrowed for college took out
loans under the Direct Loan program and the Federal Family Education
Loan program--the two main student loan programs subsidized by the
Federal Government.
With the cost of college rising rapidly and grant aid stagnating,
however, more and more students are turning to the private loan sector
and are taking out so-called ``alternative loans''--private loans that
lenders offer through colleges and universities. Students are also
borrowing increasingly from direct-to-consumer education lenders, which
include giant lenders such as Sallie Mae that also participate in the
FFEL program, as well as other companies that just offer private-market
loans, such as Loan to Learn.
A decade ago, private loans accounted for only 3 percent of all funds
used to finance students' post-secondary education. Since then, the
volume of private loans has grown by an astronomical 1200 percent.
Today, private loans now total $17 billion, and represent 20 percent of
all borrowing for higher education.
Many lenders making these private loans claim they're providing an
important service. They say that at a time when college prices are
rising rapidly, they provide needed funds to help students pay for
college.
What they won't tell you is the exorbitant cost that countless
students are paying for these loans. Unlike loans offered through the
federal programs, private loans frequently carry much higher interest
rates, especially for students without credit histories and families
without strong credit ratings. In some cases, the interest rates on
private loans may be as high as 19 percent a year, compared to 6.8
percent for loans offered through the FFEL and Direct Loan programs.
The lenders also don't tell you about the aggressive tactics they use
to persuade colleges to offer private loans to their students--and to
persuade students to borrow directly as well.
The private company Student Loan Xpress has offered 100 percent loan
approval at colleges if the college agrees to ``brand'' the private
loan with the college's name and emblem--making the loan appear to be
offered by the college, not the private lender.
Other private loan companies encourage borrowers not to fill out the
Free Application for Federal Student Aid, which allows borrowers to
obtain loans at lower interest rates. They don't prominently disclose
the fact that their interest rates are typically much higher.
Some lenders make gifts to college and university employees. Loan to
Learn invited college officials and their spouses to an all-expenses
paid ``education conference'' in the West Indies. Many lenders who
participate in the FFEL program offer similar ``educational
conferences'' at fancy hotels, and offer free entertainment and tickets
to sporting events to college officials. The Attorney General in New
York State has opened an investigation into such practices and is
looking into the practices of six lenders, including Sallie Mae,
Nelnet, and Educap, the corporate name of Loan to Learn.
We need to take immediate steps to stop actions that prevent students
from obtaining the best loan agreement possible. That is what the
Student Loan Sunshine Act does.
First and foremost, it is a consumer protection measure. It will
protect student and parent borrowers by ending the inappropriate lender
practices I've just mentioned.
It prohibits lenders from offering to a college employee any gift
worth more than $10, including free or discounted trips, meals,
invitations to entertainment events or other form of hospitality.
It prohibits lenders from offering services to financial aid offices
that create a conflict of interest, such as lending staff during peak
loan processing times. It also prohibits lenders from ``branding''
their loans with a college name, emblem, or logo.
The Sunshine Act also arms students and parents with the information
they need to make wise decisions when they borrow funds for higher
education.
[[Page S1534]]
The Act requires lenders to report any special arrangements they have
with colleges to make such loans, and it ensures that this information
is conveyed to borrowers.
It requires the Secretary of Education, together with members of the
higher education community and students, to develop a clear, easy-to-
use model format for reporting the terms and conditions of student
loans, similar to the APR disclosure required for other types of loans.
If a college creates a ``preferred lender'' list, the Act requires
the college to disclose clearly and fully why it has identified a
lender as a preferred lender. Schools must also include at least three
nonaffiliated lenders on the list, so that students have a real choice.
Finally, the Sunshine Act also addresses the fast-growing direct-to-
consumer educational loan market. It offers new protections for
students who take out direct-to-consumer loans, so they don't borrow
more than is necessary to pay for their college education.
The Act requires all lenders of direct-to-consumer private
educational loans to state clearly and prominently that borrowers may
qualify for low-interest loans through the Federal Government's loan
programs. It also requires lenders to clearly disclose the terms and
conditions of the loans they're offering, including any hidden fees, as
well as any complaints against the lender that have been filed by
consumer agencies such as the Better Business Bureau or the state
attorney general's office.
Before a direct-to-consumer lender can offer an education loan of
more than $1000, the Act requires the lender to notify the borrower's
college of the amount of the proposed loan, so that the school can
advise the borrower whether the loan exceeds what's necessary to cover
the student's cost of attendance after other aid sources are factored
in.
Students deserve the best loan advice possible from financial aid
officers and the best deal from lenders. They have the right to exhaust
their federal loan eligibility before turning to more expensive private
lenders for aid.
Going to college is a lifetime investment, but paying for college is
a heavy burden for too many families. As the private student loan
market continues to grow, it's our responsibility to protect students
from exploitation in that market.
I thank the bill's cosponsors, and I urge my colleagues to support
this bill as well. It's time we put students first, and the Student
Loan Sunshine Act takes important steps to do just that.
I ask unanimous consent that the text of this 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. 486
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 ``Student Loan Sunshine Act''.
SEC. 2. INSTITUTION AND LENDER REPORTING AND DISCLOSURE
REQUIREMENTS.
Title I of the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.) is amended by adding at the end the following:
``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATIONAL
LOANS
``SEC. 151. DEFINITIONS.
``In this part:
``(1) Covered institution.--The term `covered
institution'--
``(A) means any educational institution that offers a
postsecondary educational degree, certificate, or program of
study (including any institution of higher education, as such
term is defined in section 102) and receives any Federal
funding or assistance; and
``(B) includes an agent of the educational institution
(including an alumni association, booster club, or other
organization directly or indirectly associated with such
institution) or employee of such institution.
``(2) Educational loan.--The term `educational loan'
(except when used as part of the term `private educational
loan') means--
``(A) any loan made, insured, or guaranteed under title IV;
or
``(B) a private educational loan (as defined in paragraph
(5)).
``(3) Educational loan arrangement.--
``The term `educational loan arrangement' means an
arrangement or agreement between a lender and a covered
institution--
``(A) under which arrangement or agreement a lender
provides or otherwise issues educational loans to the
students attending the covered institution or the parents of
such students; and
``(B) which arrangement or agreement--
``(i) relates to the covered institution recommending,
promoting, endorsing, or using the loan product of the
lender; and
``(ii) involves the payment of any fee or provision of
other material benefit by the lender to the institution or to
groups of students who attend the institution.
``(4) Lender.--
``(A) In general.--The term `lender'--
``(i) means a creditor, except that such term shall not
include an issuer of credit under a residential mortgage
transaction; and
``(ii) includes an agent of a lender.
``(B) Incorporation of tila definitions.--The terms
`creditor' and `residential mortgage transaction' have the
meanings given such terms in section 103 of the Truth in
Lending Act (15 U.S.C. 1602).
``(5) Private educational loan.--The term `private
educational loan' means a private loan provided by a lender
that--
``(A) is not made, insured, or guaranteed under title IV;
and
``(B) is issued by a lender for postsecondary educational
expenses to a student, or the parent of the student,
regardless of whether the loan is provided through the
educational institution that the student attends or directly
to the student or parent from the lender.
``(6) Postsecondary educational expenses.--The term
`postsecondary educational expenses' means any of the
expenses that are included as part of a student's cost of
attendance, as defined under section 472.
``SEC. 152. REQUIREMENTS FOR LENDERS AND INSTITUTIONS
PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.
``(a) Reporting for Lenders.--In addition to any other
disclosure required under Federal law, each lender that
participates in 1 or more educational loan arrangements shall
prepare and submit to the Secretary (at a time to be
determined by the Secretary) an annual report that includes,
with respect to each educational loan arrangement, the
following:
``(1) The date on which the arrangement was entered into
and the period for which the arrangement applies.
``(2) A summary of the terms of the arrangement related to
the marketing, recommending, endorsing, or use of, the loans.
``(3) The full details of any aspect of the arrangement
relating to the covered institution issuing loans and the
lender (or a financial partner of the lender) servicing or
purchasing such loans.
``(4) A summary of any direct or indirect benefit provided
or paid to any party in connection with the arrangement.
``(b) Provision of Loan Information.--A lender may not
provide a private educational loan to a student attending a
covered institution with which the lender has an educational
loan arrangement, or the parent of such student, until the
covered institution has informed the student or parent of
their remaining options for borrowing under title IV,
including information on any terms and conditions of
available loans under such title that are more favorable to
the borrower.
``(c) Use of Institution Name.--
``(1) In general.--A covered institution that has entered
into an educational loan arrangement with a lender regarding
private educational loans shall not allow the lender to use
the name, emblem, mascot, or logo of the institution, or
other words, pictures, or symbols readily identified with the
institution, in the marketing of private educational loans to
the students attending the institution in any way that
implies that the institution endorses the private educational
loans offered by the lender.
``(2) Applicability.--Paragraph (1) shall apply to any
educational loan arrangement, or extension of such
arrangement, entered into or renewed after the date of
enactment of the Student Loan Sunshine Act.
``SEC. 153. INTEREST RATE REPORT FOR INSTITUTIONS AND LENDERS
PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.
``(a) Secretary Duties.--
``(1) Report and model format.--Not later than 180 days
after the date of enactment of the Student Loan Sunshine Act,
the Secretary shall--
``(A) prepare a report on the adequacy of the information
provided to students and the parents of such students about
educational loans (including loans made, insured, or
guaranteed under title IV and private educational loans),
after consulting with students, representatives of covered
institutions (including financial aid administrators,
registrars, and business officers), lenders (including
lenders of private educational loans), loan servicers, and
guaranty agencies;
``(B) include in the report a model format, based on the
report's findings, to be used by lenders and covered
institutions in carrying out subsections (b) and (c)--
``(i) that provides information on the applicable interest
rates and other terms and conditions of the educational loans
provided by a lender to students attending the institution,
or the parents of such students, disaggregated by each type
of educational loans provided to such students or parents by
the lender, including--
``(I) the interest rate and terms and conditions of the
loans offered by the lender for the upcoming academic year;
``(II) with respect to such loans, any benefits that are
contingent on the repayment behavior of the borrower;
``(III) the annual percentage rate for such loans, based on
the actual disbursed amount of the loan;
[[Page S1535]]
``(IV) the average amount borrowed from the lender by
students enrolled in the institution who obtain loans of such
type from the lender for the preceding academic year; and
``(V) the average interest rate on such loans provided to
such students for the preceding academic year; and
``(ii) which format shall be easily usable by lenders,
institutions, guaranty agencies, and loan servicers; and
``(C)(i) submit the report and model format to the
Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and Labor of the House
of Representatives; and
``(ii) make the report and model format available to
covered institutions, lenders, and the public.
``(2) Format update.--Not later than 1 year after the
submission of the report and model format described in
paragraph (1), the Secretary shall--
``(A) assess the adequacy of the model format included in
the report;
``(B) after consulting with students, representatives of
covered institutions (including financial aid administrators,
registrars, and business officers), lenders (including
lenders of private educational loans), loan servicers, and
guaranty agencies--
``(i) prepare a list of any improvements to the model
format that have been identified as beneficial to borrowers;
and
``(ii) update the model format after taking such
improvements into consideration; and
``(C)(i) submit the list of improvements and updated model
format to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and
Labor of the House of Representatives; and
``(ii) make the list of improvements and updated model
format available to covered institutions, lenders, and the
public.
``(3) Use of form.--The Secretary shall take such steps as
necessary to make the model format, and any updated model
format, available to covered institutions and to encourage--
``(A) lenders subject to subsection (b) to use the model
format or updated model format (if available) in providing
the information required under subsection (b); and
``(B) covered institutions to use such format in preparing
the information report under subsection (c).
``(b) Lender Duties.--Each lender that has an educational
loan arrangement with a covered institution shall annually,
by a date determined by the Secretary, provide to the covered
institution and to the Secretary the information included on
the model format or an updated model format (if available)
for each type of educational loan provided by the lender to
students attending the covered institution, or the parents of
such students, for the preceding academic year.
``(c) Covered Institution Duties.--Each covered institution
shall--
``(1) prepare and submit to the Secretary an annual report,
by a date determined by the Secretary, that includes, for
each lender that has an educational loan arrangement with the
covered institution and that has submitted to the institution
the information required under subsection (b)--
``(A) the information included on the model format or
updated model format (if available) for each type of
educational loan provided by the lender to students attending
the covered institution, or the parents of such students; and
``(B) a detailed explanation of why the covered institution
believes the terms and conditions of each type of educational
loan provided pursuant to the agreement are beneficial for
students attending the covered institution, or the parents of
such students; and
``(2) ensure that the report required under paragraph (1)
is made available to the public and provided to students
attending or planning to attend the covered institution, and
the parents of such students, in time for the student or
parent to take such information into account before applying
for or selecting an educational loan.
``SEC. 154. PRIVATE EDUCATIONAL LOAN DISCLOSURE REQUIREMENTS
FOR COVERED INSTITUTIONS.
``A covered institution that provides information to any
student, or the parent of such student, regarding a private
educational loan from a lender shall, prior to or concurrent
with such information--
``(1) inform the student or parent of--
``(A) the student or parent's eligibility for assistance
and loans under title IV; and
``(B) the terms and conditions of such private educational
loan that are less favorable than the terms and conditions of
educational loans for which the student or parent is
eligible, including interest rates, repayment options, and
loan forgiveness; and
``(2) ensure that information regarding such private
educational loans is presented in such a manner as to be
distinct from information regarding loans that are made,
insured, or guaranteed under title IV.
``SEC. 155. GIFT BAN FOR EMPLOYEES OF INSTITUTIONS.
``(a) Gift Ban.--A lender or guarantor of educational loans
shall not offer any gift to an employee or agent of a covered
institution.
``(b) Reports of Gift Ban Violations.--
``(1) Employee report.--Each employee or agent of a covered
institution shall report to the Inspector General of the
Department of Education any instance of a lender or guarantor
of educational loans (including an agent of the lender or
guarantor) that attempts to give a gift to the employee or
agent in violation of subsection (a).
``(2) Inspector general report.--The Inspector General of
the Department of Education shall investigate any reported
violation of this subsection and shall annually submit a
report to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and
Labor of the House of Representatives identifying all
reported violations of the gift ban under subsection (a),
including the lenders involved in each such violation, for
the preceding year.
``(c) Definition of Gift.--
``(1) In general.--In this section, the term `gift' means
any gratuity, favor, discount, entertainment, hospitality,
loan, or other item having a monetary value of more than $10.
The term includes a gift of services, transportation,
lodging, or meals, whether provided in kind, by purchase of a
ticket, payment in advance, or reimbursement after the
expense has been incurred.
``(2) Exceptions.--The term `gift' shall not include any of
the following:
``(A) Standard informational material related to a loan,
such as a brochure.
``(B) Food, refreshments, training, or informational
material furnished to an employee or agent of an institution
as an integral part of a training session or through
participation in an advisory council that is designed to
improve the lender's service to the covered institution, if
such training or participation contributes to the
professional development of the employee or agent of the
institution.
``(C) Favorable terms, conditions, and borrower benefits on
an educational loan provided to a student employed by the
covered institution.
``(3) Rule for gifts to family members.--For purposes of
this section, a gift to a family member of an employee or an
agent of a covered institution, or a gift to any other
individual based on that individual's relationship with the
employee or agent, shall be considered a gift to the employee
or agent if--
``(A) the gift is given with the knowledge and acquiescence
of the employee or agent; and
``(B) the employee or agent has reason to believe the gift
was given because of the official position of the employee or
agent.
``SEC. 156. COMPLIANCE AND ENFORCEMENT.
``(a) Condition of Any Federal Assistance.--Notwithstanding
any other provision of law, a covered institution or lender
shall comply with this part as a condition of receiving
Federal funds or assistance provided after the date of
enactment of the Student Loan Sunshine Act.
``(b) Penalties.--Notwithstanding any other provision of
law, if the Secretary determines, after providing notice and
an opportunity for a hearing for a covered institution or
lender, that the covered institution or lender has violated
subsection (a)--
``(1) in the case of a covered institution, or a lender
that does not participate in a loan program under title IV,
the Secretary may impose a civil penalty in an amount of not
more than $25,000; and
``(2) in the case of a lender that does participate in a
program under title IV, the Secretary may limit, terminate or
suspend the lender's participation in such program.
``(c) Considerations.--In taking any action against a
covered institution or lender under subsection (b), the
Secretary shall take into consideration the nature and
severity of the violation of subsection (a).
``SEC. 157. GAO STUDY AND REPORTS.
``(a) Study.--The Comptroller General of the United States
shall conduct a study on--
``(1) the gifts or financial or other material benefits
that are provided by lenders to covered institutions to
secure, or as part of an effort to secure, the covered
institutions' educational loan business;
``(2) the extent to which lenders issuing private
educational loans may be inappropriately using inducements to
secure, or as part of an effort to secure, educational loan
arrangements with covered institutions; and
``(3) whether educational loans made to students attending
a covered institution in connection with an educational loan
arrangement, and private educational loans made directly to
students, provide competitive interest rates, terms, and
conditions to students who obtain such loans.
``(b) Reports.--The Comptroller General of the United
States shall--
``(1) not later than 1 year after the date of enactment of
the Student Loan Sunshine Act, submit to Congress a
preliminary report regarding the findings of the study
described in subsection (a); and
``(2) not later than 2 years after such date of enactment,
submit to Congress a final report regarding such findings.''.
SEC. 3. PROGRAM PARTICIPATION AGREEMENTS.
Section 487(a) of the Higher Education Act of 1965 (20
U.S.C. 1094(a)) is amended by adding at the end the
following:
``(24)(A) In the case of an institution (including an
employee or agent of an institution) that maintains a
preferred lender list, in print or any other medium, through
which the institution recommends 1 or more specific lenders
for loans made under part B to the students attending the
institution (or the parents of such students), the
institution will--
``(i) clearly and fully disclose on the preferred lender
list--
[[Page S1536]]
``(I) why the institution has included each lender as a
preferred lender, especially with respect to terms and
conditions favorable to the borrower; and
``(II) that the students attending the institution (or the
parents of such students) do not have to borrow from a lender
on the preferred lender list;
``(ii) ensure, through the use of the list provided by the
Secretary under subparagraph (C), that--
``(I) there are not less than 3 lenders named on the
preferred lending list that are not affiliates of each other;
and
``(II) the preferred lender list--
``(aa) specifically indicates, for each lender on the list,
whether the lender is or is not an affiliate of each other
lender on the list; and
``(bb) if the lender is an affiliate of another lender on
the list, describes the specifics of such affiliation; and
``(iii) establish a process to ensure that lenders are
placed upon the preferred lender list on the basis of the
benefits provided to borrowers, including --
``(I) highly competitive interest rates, terms, or
conditions for loans made under part B;
``(II) high-quality servicing for such loans; or
``(III) additional benefits beyond the standard terms and
conditions for such loans.
``(B) For the purposes of subparagraph (A)(ii)--
``(i) the term `affiliate' means a person that controls, is
controlled by, or is under common control with another
person; and
``(ii) a person has control over another person if--
``(I) the person directly or indirectly, or acting through
1 or more others, owns, controls, or has the power to vote 5
percent or more of any class of voting securities of such
other person;
``(II) the person controls, in any manner, the election of
a majority of the directors or trustees of such other person;
or
``(III) the Secretary determines (after notice and
opportunity for a hearing) that the person directly or
indirectly exercises a controlling interest over the
management or policies of such other person.
``(C) The Secretary shall maintain and update a list of
lender affiliates of all eligible lenders, and shall provide
such list to the eligible institutions for use in carrying
out subparagraph (A).''.
SEC. 4. NOTICE OF AVAILABILITY OF FUNDS FROM FEDERAL SOURCES.
Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is
amended by adding at the end the following:
``(e) Disclosures Relating to Private Educational Loans.--
``(1) In general.--In the case of an extension of credit
that is a private educational loan, other than a residential
mortgage transaction, the creditor shall provide in every
application for such extensions of credit and together with
any solicitation, marketing, or advertisement of such
extensions of credit, written, electronic, or otherwise, the
disclosures described in paragraph (2).
``(2) Disclosures.--Disclosures required by this subsection
shall include a clear and prominent statement--
``(A) that the borrower may qualify for Federal financial
assistance through a program under title IV of the Higher
Education Act of 1965, in lieu of or in addition to a loan
from a non-Federal source;
``(B) of the interest rates available with respect to such
Federal financial assistance;
``(C) describing how the applicable interest rate is
determined, including whether it is based on the credit score
of the borrower;
``(D) showing sample loan costs, disaggregated by type;
``(E) of the types of repayment plans that are available;
``(F) of whether, and under what conditions, early
repayment may be made without penalty;
``(G) of when and how often the loan would be
recapitalized;
``(H) describing all fees, deferments, or forbearance;
``(I) describing all available repayment benefits, and the
percentage of all borrowers who qualify for such benefits;
``(J) describing collection practices in the case of
default;
``(K) describing late payment penalties and associated
fees;
``(L) of any complaints (and their resolution) filed with
any State or private consumer protection agency (including
the Better Business Bureau); and
``(M) such other information as the Board may require.
``(3) Provision of information.--Before a creditor may
issue any funds with respect to an extension of credit
described in paragraph (1) for an amount equal to more than
$1,000--
``(A) the creditor shall notify the relevant postsecondary
educational institution, in writing, of the proposed
extension of credit and the amount thereof; and
``(B) if such relevant institution is a covered
institution, the institution shall, in an expedient manner,
notify the prospective borrower, in accordance with
procedures established by rule of the Board, whether and to
what extent the proposed extension of credit exceeds the cost
of attendance (as defined in section 472 of the Higher
Education Act of 1965) for the student at that institution,
after consideration of the Federal and State grant and loan
aid and institutional aid that the student has or is eligible
to receive.
``(4) Regulatory authority.--The Board--
``(A) shall issue such rules and regulations as may be
necessary to implement this subsection; and
``(B) may, by rule, establish appropriate exceptions to the
disclosures required by this subsection.
``(5) Definitions.--As used in this subsection, the terms
`private educational loan' and `covered institution' have the
same meanings as in section 151 of the Higher Education Act
of 1965.''.
Mr. DURBIN. Mr. President, I rise today to urge my colleagues to
support the Kennedy-Durbin ``Student Loan Sunshine Act.''
There is no question that having a college education is essential in
today's job market. Over the course of a lifetime, a college graduate
will earn over $1 million more than those with only a high school
diploma.
In addition to the individual benefits of a college education,
investing in and producing more college-educated Americans is vital to
our nation's growth. Economists estimate that the increase in the
education level of the United States labor force between 1915 and 1999
directly resulted in at least 23 percent of the overall growth in U.S.
productivity.
However, paying for college is becoming increasingly difficult for
students and their families. Tuition at four-year public institutions
rose by 42 percent in the last five years, and more and more students
are leaving college saddled with ever increasing debt burdens.
According to the U.S. Department of Education, the average student debt
has increased by more than 50 percent over the last decade. In 2004,
college students graduated with an average of $17,400 in federal
student loan debt, almost 45 percent more than students who graduated
in 1993. When private loans are factored in, the average debt increases
to more than $19,000.
As students and their families struggle to find ways to pay for
higher education, more and more are forced to turn to private student
loans in order to close the gap. Because these loans are not guaranteed
or subsidized by the government, they often carry much higher interest
rates.
According to The College Board, private student loans are now a $17.3
billion industry. Between the 2000-2001 and 2005-2006 school years,
private student loans grew at an average annual rate of 27 percent,
after adjusting for inflation.
As more students begin to rely on private student loans to help pay
for college, some lenders and colleges are engaging in practices that
do not appear to be in the best interests of the students. An article
published in The New York Times revealed examples of incentives offered
to colleges by student loan companies in order to be placed on a
college's ``preferred lender'' list.
An example cited in the article included an all-expense paid trip to
the Caribbean for university officials and their spouses to attend an
education ``summit'' held at a luxury five-star beachfront resort.
Between symposiums, forums and roundtable discussions on the importance
of addressing the cost of higher education, guests could enjoy
complimentary water and beach sports such as snorkeling, sailing,
kayaking, sailboarding and volleyball as well as access to an 18-hole
championship golf course, a 10-court tennis complex, two beachfront
pools and a luxury spa. News of the trip garnered such a negative
response from the public that the sponsor of the trip, Loan to Learn,
ultimately cancelled the trip. Aside from all-expense paid trips, other
examples of incentives include iPods that were given away at a
financial aid administrators meeting and bonuses that are based on how
much students borrow.
Colleges and universities should not be enticed to select ``preferred
lenders'' or take other actions related to the student loan program on
the basis of factors that are irrelevant, or at best ancillary, to the
primary interests of the students.
The Student Loan Sunshine Act protects students and parents from
potential exploitation by private student loan lenders and lenders that
offer gifts to schools as a way to acquire the school's loan business.
It ensures that students and their families have all the facts and can
feel confident that they're receiving the best deal on their college
loan.
First, this bill puts a stop to inappropriate lender practices.
Lenders are
[[Page S1537]]
prohibited from offering any gift over $10 to employees of a
university, including free trips, meals, and tickets to entertainment
events. Lenders are no longer allowed to offer services to a financial
aid office that create a conflict of interest such as lending staff
during peak loan processing times, printing literature for the
financial aid office and e-mailing students on behalf of the financial
aid office.
Second, the Act provides students and their families access to
information about preferred lender lists, special arrangements between
lenders and colleges and terms and conditions of loans. A school's
preferred lender list must include at least three lenders that are
independent from each other, clearly disclose why a lender was
identified as a preferred lender, and clearly state that students and
parents may take out a student loan with a lender that is not on their
school's preferred lender list. This requirement is needed because in
some instances, a school's preferred lender list may include what
appear to be five different lenders; however, four of the five lenders
may turn out to be subsidiaries of a single company. Lenders are
required to report to the Secretary of Education any special
arrangement they have with colleges to make loans to the students at a
school including the terms of the arrangement and any benefit provided
to the school in connection with the loan arrangement. In addition, the
Act requires the Secretary of Education, along with the higher
education community and students, to develop an easy-to-understand form
for reporting the terms and conditions of student loans--similar to an
APR disclosure.
Finally, the Act encourages students to maximize their borrowing
options through the government's loan programs before obtaining private
loans with higher interest rates and discourages over-borrowing through
direct-to-consumer education loans. Some companies fail to clearly
disclose that their private educational loans typically carry a higher
interest rate and even encourage students not to complete the Free
Application for Federal Student Aid form, which allows students to
borrow low-interest educational loans. The Act requires all direct-to-
consumer lenders to clearly disclose to students certain information
such as: the fact that the student may be eligible for low-interest
student loans through the federal government, how the interest rate is
determined, any and all fees, and whether any complaints have been
filed against the lender. Additionally, the Act puts in place
provisions that will ensure that before a student obtains an
educational loan through a direct-to-consumer lender, the student is
informed of their loan options through the federal government and
whether the loan will cause the student to exceed what is necessary to
cover the student's cost of attendance.
These requirements are simply meant to ensure that as students are
about to sign on the dotted line and accept what will likely be one of
the largest debts they will incur in their lives, they have the
information they need to make an informed decision and some assurance
that their school has only their best interests in mind--not visions of
the Caribbean or the latest iPod. We must not look away and allow them
to be taken advantage of at one of the most critical points in their
lives. I urge my colleagues to support this important legislation.
____________________