Congressional Record, Volume 153 Issue 22 (Tuesday, February 6, 2007)

[Congressional Record Volume 153, Number 22 (Tuesday, February 6, 2007)]
[Senate]
[Pages S1628-S1651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

______

By Mr. LUGAR:
S. 494. A bill to endorse further enlargement of the North Atlantic
Treaty Organization (NATO) and to facilitate the timely admission of
new members to NATO, and for other purposes; to the Committee on
Foreign Relations.
Mr. LUGAR. Mr. President, I rise today to introduce the ``NATO
Freedom Consolidation Act of 2007''. Last year this legislation passed
the Senate by unanimous consent. Unfortunately, the House was unable to
act prior to adjournment last year.
I was pleased that thirteen of my colleagues, including Senators
Biden, Chambliss, Coleman, Dodd, Hagel, Hutchison, Martinez, McCain,
Smith, and Sununu, joined me in proposing this important legislation.
The goal of this bill is to reaffirm United States support for
continued enlargement of NATO to democracies that are able and willing
to meet the responsibilities of membership. In particular, the
legislation calls for the timely admission of Albania, Croatia,
Georgia, Macedonia, and Ukraine to NATO and authorizes security
assistance for these countries in Fiscal Year 2008. Each of these
countries has clearly stated its desire to join NATO and is working
hard to meet the specified requirements for membership.
I believe that eventual NATO membership for these five countries
would be a success for Europe, NATO, and the United States by
continuing to extend the zone of peace and security. Albania, Croatia,
and Macedonia have been making progress on reforms through their
participation in the NATO Membership Action Plan since 2002.
Unfortunately, Georgia and Ukraine have not yet been granted a
Membership Action Plan but nevertheless have made remarkable progress.
This legislation will provide important incentives and assistance to
the countries to continue the implementation of democratic, defense,
and economic reforms.
Since the end of the Cold War, NATO has been evolving to meet the new
security needs of the 21st century. In this era, the threats to NATO
members are transnational and far from its geographic borders. There is
strong support among members for NATO's operation in Afghanistan, and
for its training mission in Iraq. NATO's viability as an effective
defense and security alliance depends on flexible, creative leadership,
as well as the willingness of members to improve capabilities and
address common threats.
If NATO is to continue to be the preeminent security Alliance and
serve the defense interests of its membership, it must continue to
evolve and that evolution must include enlargement. Potential NATO
membership motivates emerging democracies to make important advances in
areas such as the rule of law and civil society. A closer relationship
with NATO will promote these values and contribute to our mutual
security. Georgia is a young democracy that has made tremendous
progress since the ``Rose Revolution.'' It is situated in a critical
geo-strategic location and is host to a large portion of the Baku-
Tbilisi-Ceyhan pipeline that carries important energy resources to the
West from Azerbaijan and, in the future, Kazakhstan. Georgia is
resisting pressure from breakaway republics backed by Moscow. In the
past, border disputes have been identified as reasons a country may not
be invited to join NATO. But in this case, Russia's action, not
Georgia's, are frustrating Tbilisi's NATO aspirations.
Three years ago, the United States Senate unanimously voted to invite
seven countries to join NATO. Today, Bulgaria, Estonia, Latvia,
Lithuania, Romania, Slovakia, and Slovenia are making significant
contributions to NATO and are among our closest allies in the global
war on terrorism. It is time again for the United States to take the
lead in urging its allies to bring in new members, and to offer timely
admission of Albania, Croatia, Georgia, Macedonia, and Ukraine to NATO.
______

By Mr. LEAHY (for himself, Mr. Specter, Mr. Feingold, Mr.
Schumer, and Mr. Sanders):
S. 495. A bill to prevent and mitigate identity theft, to ensure
privacy, to provide notice of security breaches, and to enhance
criminal penalties, law enforcement assistance, and other protections
against security breaches, fraudulent access, and misuse of personally
identifiable information; to the Committee on the Judiciary.
Mr. LEAHY. Mr. President, today I am pleased to join Senator Specter
in reintroducing the Leahy-Specter Personal Data Privacy and Security
Act. This is a comprehensive data privacy package aimed at better
protecting Americans' privacy. Senator Specter has been a valuable
partner on this, and I also thank Majority Leader Reid for his
leadership and commitment to enacting data privacy legislation this
year.
When Senator Specter and I introduced this bill in 2005, we had high
hopes of bringing urgently needed data privacy reforms to the American
people. The Judiciary Committee reported this bill favorably in
November of 2005, but with the last Congress, it simply sat on the
calendar. The leadership would not bring it forward.
The irony is while they refused to bring it forward, the problems of
data breaches remained a persistent and pernicious threat to Americans'
privacy. Yesterday we learned that the Department of Veterans Affairs
has lost a portable hard drive containing the sensitive personal
information on as many as 48,000 veterans. I can imagine what the
veterans in my State feel about that. I can imagine what the veterans
in Montana feel about that.
Last week, there was a major data breach involving a State computer
server in my home State of Vermont. It jeopardized the financial data
of at least 69,000 Vermonters whose personal financial information had
been stored on the computer used by the Vermont Agency of Human
Services. Can you imagine 69,000 people, in a State of barely over
600,000 people.
This is not unique to Vermont. Last month mega retailer TJX disclosed
that it suffered a major computer breach involving credit and debt card
purchases involving possibly hundreds of thousands of American
consumers. And, even as disturbing as that is, while they knew about
the breach in mid-December, none of those customers were told about it
until a month later. It is as if a thief had gone to each one of their
houses and stolen their data.
Of course, all of this comes on the heels of the theft of the
personal data of 26.5 million of our veterans and active-duty personnel
at the VA last year. Think about this: You are a man or a woman serving
your country in Afghanistan or Iraq, and this information is stolen--
with data about where you live and what family members are left at home
while you are overseas. How do you think that makes you feel?
According to the Privacy Rights Clearinghouse, more than 100 million
records containing sensitive personal information have been involved in
data security breaches since 2005. We need strong Federal data privacy
and security laws to protect Americans' personal data, and to address
the ills of lax data security.
Our bill requires that data brokers let consumers know what sensitive
personal information they have about them and to allow individuals to
correct this. It is a simple matter of fairness. There is a clear
precedent for our approach in the credit reporting context. Our bill
also requires that companies who have databases with sensitive personal
information about Americans establish and implement data privacy and
security programs. In the information age, any company that wants to be
trusted by the public must earn that trust by vigilantly protecting the
databases that they use and maintain. In addition, our bill requires
notice when sensitive personal information has been compromised. The
American people need to know when they may be exposed to a data breach.
Whether it is a government agency or a private company, if they lose
your sensitive information, your Social Security number, your address,
or anything about you,

[[Page S1629]]

you have a right to know. If they are holding that information about
you, and they lose it, you have the right to know it has been lost.
We also have tough criminal penalties for anyone who would
intentionally or willfully conceal the fact that a data breach has
occurred when that breach causes economic damage to consumers.
Then finally, we address the important issue of the Government's use
of personal data. This would require Federal agencies to notify
affected individuals when Government data breaches occur.
We should never have to worry about our Government having this
information on us and losing it, but certainly in the last 2 or 3
years, we have seen so many millions of files that have been lost or
put in jeopardy. We live in a world in which our Government also is
increasingly turning to the private sector to get personal data that
they, in some instances, couldn't legally get on their own. To address
this, our bill puts protecting Americans' privacy first and foremost:
Government data has to be protected and we have to know if the
Government falls down on the job.
This is a comprehensive bill. It not only deals with the need to
provide Americans notice when they have been victims of a data breach,
it also deals with the underlying problems of lack of security and lack
of accountability to prevent data breaches from occurring in the first
place.
Today, Americans live in a world where their most sensitive personal
information can be accessed and sold to the highest bidder with a few
keystrokes on their computer. Our privacy laws greatly lag behind both
the capabilities of our technology and the cunning of identity thieves.
This legislation closes that gap. I commend the leadership for being
willing to bring up our data privacy bill. I wish that the leadership
in the last Congress had brought this bill up last year. But, I am glad
that the new leadership will do so this year.
For the sake of all Americans, I urge all Senators to support this
legislation and to act now to pass comprehensive data privacy and
security legislation.
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. 495

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Personal
Data Privacy and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

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

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

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

TITLE II--DATA BROKERS

Sec. 201. Transparency and accuracy of data collection.
Sec. 202. Enforcement.
Sec. 203. Relation to State laws.
Sec. 204. Effective date.

TITLE III--PRIVACY AND SECURITY OF PERSONALLY IDENTIFIABLE INFORMATION

Subtitle A--A Data Privacy and Security Program

Sec. 301. Purpose and applicability of data privacy and security
program.
Sec. 302. Requirements for a personal data privacy and security
program.
Sec. 303. Enforcement.
Sec. 304. Relation to other laws.

Subtitle B--Security Breach Notification

Sec. 311. Notice to individuals.
Sec. 312. Exemptions.
Sec. 313. Methods of notice.
Sec. 314. Content of notification.
Sec. 315. Coordination of notification with credit reporting agencies.
Sec. 316. Notice to law enforcement.
Sec. 317. Enforcement.
Sec. 318. Enforcement by State attorneys general.
Sec. 319. Effect on Federal and State law.
Sec. 320. Authorization of appropriations.
Sec. 321. Reporting on risk assessment exemptions.
Sec. 322. Effective date.

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

Sec. 401. General Services Administration review of contracts.
Sec. 402. Requirement to audit information security practices of
contractors and third party business entities.
Sec. 403. Privacy impact assessment of government use of commercial
information services containing personally identifiable
information.
Sec. 404. Implementation of chief privacy officer requirements.

SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

In this Act:
(1) Agency.--The term ``agency'' has the same meaning given
such term in section 551 of title 5, United States Code.
(2) Affiliate.--The term ``affiliate'' means persons
related by common ownership or by corporate control.
(3) Business entity.--The term ``business entity'' means
any organization, corporation, trust, partnership, sole
proprietorship, unincorporated association, venture
established to make a profit, or nonprofit, and any
contractor, subcontractor, affiliate, or licensee thereof
engaged in interstate commerce.
(4) Identity theft.--The term ``identity theft'' means a
violation of section 1028 of title 18, United States Code.
(5) Data broker.--The term ``data broker'' means a business
entity which for monetary fees or dues regularly engages in
the practice of collecting, transmitting, or providing access
to sensitive personally identifiable information on more than
5,000 individuals who are not the customers or employees of
that business entity or affiliate primarily for the purposes
of providing such information to nonaffiliated third parties
on an interstate basis.
(6) Data furnisher.--The term ``data furnisher'' means any
agency, organization, corporation, trust, partnership, sole
proprietorship, unincorporated association, or nonprofit that
serves as a source of information for a data broker.
(7) Personal electronic record.--
(A) In general.--The term ``personal electronic record''
means data associated with an individual contained in a
database, networked or integrated databases, or other data
system that holds sensitive personally identifiable
information of that individual and is provided to
nonaffiliated third parties.
(B) Exclusions.--The term ``personal electronic record''
does not include--
(i) any data related to an individual's past purchases of
consumer goods; or
(ii) any proprietary assessment or evaluation of an
individual or any proprietary assessment or evaluation of
information about an individual.

[[Page S1630]]

(8) Personally identifiable information.--The term
``personally identifiable information'' means any
information, or compilation of information, in electronic or
digital form serving as a means of identification, as defined
by section 1028(d)(7) of title 18, United State Code.
(9) Public record source.--The term ``public record
source'' means the Congress, any agency, any State or local
government agency, the government of the District of Columbia
and governments of the territories or possessions of the
United States, and Federal, State or local courts, courts
martial and military commissions, that maintain personally
identifiable information in records available to the public.
(10) Security breach.--
(A) In general.--The term ``security breach'' means
compromise of the security, confidentiality, or integrity of
computerized data through misrepresentation or actions that
result in, or there is a reasonable basis to conclude has
resulted in, acquisition of or access to sensitive personally
identifiable information that is unauthorized or in excess of
authorization.
(B) Exclusion.--The term ``security breach'' does not
include--
(i) a good faith acquisition of sensitive personally
identifiable information by a business entity or agency, or
an employee or agent of a business entity or agency, if the
sensitive personally identifiable information is not subject
to further unauthorized disclosure; or
(ii) the release of a public record, or information derived
from a single public record, not otherwise subject to
confidentiality or nondisclosure requirement, or information
obtained from a news report or periodical.
(11) Sensitive personally identifiable information.--The
term ``sensitive personally identifiable information'' means
any information or compilation of information, in electronic
or digital form that includes--
(A) an individual's first and last name or first initial
and last name in combination with any 1 of the following data
elements:
(i) A non-truncated social security number, driver's
license number, passport number, or alien registration
number.
(ii) Any 2 of the following:

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

(iii) Unique biometric data such as a finger print, voice
print, a retina or iris image, or any other unique physical
representation.
(iv) A unique account identifier, electronic identification
number, user name, or routing code in combination with any
associated security code, access code, or password that is
required for an individual to obtain money, goods, services,
or any other thing of value; or
(B) a financial account number or credit or debit card
number in combination with any security code, access code or
password that is required for an individual to obtain credit,
withdraw funds, or engage in a financial transaction.

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

SEC. 101. ORGANIZED CRIMINAL ACTIVITY IN CONNECTION WITH
UNAUTHORIZED ACCESS TO PERSONALLY IDENTIFIABLE
INFORMATION.

Section 1961(1) of title 18, United States Code, is amended
by inserting ``section 1030(a)(2)(D) (relating to fraud and
related activity in connection with unauthorized access to
sensitive personally identifiable information as defined in
the Personal Data Privacy and Security Act of 2007,'' before
``section 1084''.

SEC. 102. CONCEALMENT OF SECURITY BREACHES INVOLVING
SENSITIVE PERSONALLY IDENTIFIABLE INFORMATION.

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

``Sec. 1040. Concealment of security breaches involving
sensitive personally identifiable information

``(a) Whoever, having knowledge of a security breach and of
the obligation to provide notice of such breach to
individuals under title III of the Personal Data Privacy and
Security Act of 2007, and having not otherwise qualified for
an exemption from providing notice under section 312 of such
Act, intentionally and willfully conceals the fact of such
security breach and which breach causes economic damage to 1
or more persons, shall be fined under this title or
imprisoned not more than 5 years, or both.
``(b) For purposes of subsection (a), the term `person' has
the same meaning as in section 1030(e)(12) of title 18,
United States Code.
``(c) Any person seeking an exemption under section 312(b)
of the Personal Data Privacy and Security Act of 2007 shall
be immune from prosecution under this section if the United
States Secret Service does not indicate, in writing, that
such notice be given under section 312(b)(3) of such Act''.
(b) Conforming and Technical Amendments.--The table of
sections for chapter 47 of title 18, United States Code, is
amended by adding at the end the following:

``1040. Concealment of security breaches involving personally
identifiable information.''.
(c) Enforcement Authority.--
(1) In general.--The United States Secret Service shall
have the authority to investigate offenses under this
section.
(2) Non-exclusivity.--The authority granted in paragraph
(1) shall not be exclusive of any existing authority held by
any other Federal agency.

SEC. 103. REVIEW AND AMENDMENT OF FEDERAL SENTENCING
GUIDELINES RELATED TO FRAUDULENT ACCESS TO OR
MISUSE OF DIGITIZED OR ELECTRONIC PERSONALLY
IDENTIFIABLE INFORMATION.

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

TITLE II--DATA BROKERS

SEC. 201. TRANSPARENCY AND ACCURACY OF DATA COLLECTION.

(a) In General.--Data brokers engaging in interstate
commerce are subject to the requirements of this title for
any product or service offered to third parties that allows
access or use of sensitive personally identifiable
information.
(b) Limitation.--Notwithstanding any other provision of
this title, this section shall not apply to--
(1) any product or service offered by a data broker
engaging in interstate commerce where such product or service
is currently subject to, and in compliance with, access and
accuracy protections similar to those under subsections (c)
through (f) of this section under the Fair Credit Reporting
Act (Public Law 91-508);
(2) any data broker that is subject to regulation under the
Gramm-Leach-Bliley Act (Public Law 106-102);
(3) any data broker currently subject to and in compliance
with the data security requirements for such entities under
the Health Insurance Portability and Accountability Act
(Public Law 104-191), and its implementing regulations;
(4) information in a personal electronic record that--
(A) the data broker has identified as inaccurate, but
maintains for the purpose of aiding the data broker in
preventing inaccurate information from entering an
individual's personal electronic record; and
(B) is not maintained primarily for the purpose of
transmitting or otherwise providing that information, or
assessments based on that information, to non-affiliated
third parties; and

[[Page S1631]]

(5) information concerning proprietary methodologies,
techniques, scores, or algorithms relating to fraud
prevention not normally provided to third parties in the
ordinary course of business.
(c) Disclosures to Individuals.--
(1) In general.--A data broker shall, upon the request of
an individual, disclose to such individual for a reasonable
fee all personal electronic records pertaining to that
individual maintained specifically for disclosure to third
parties that request information on that individual in the
ordinary course of business in the databases or systems of
the data broker at the time of such request.
(2) Information on how to correct inaccuracies.--The
disclosures required under paragraph (1) shall also include
guidance to individuals on procedures for correcting
inaccuracies.
(d) Accuracy Resolution Process.--
(1) Information from a public record or licensor.--
(A) In general.--If an individual notifies a data broker of
a dispute as to the completeness or accuracy of information
disclosed to such individual under subsection (c) that is
obtained from a public record source or a license agreement,
such data broker shall determine within 30 days whether the
information in its system accurately and completely records
the information available from the public record source or
licensor.
(B) Data broker actions.--If a data broker determines under
subparagraph (A) that the information in its systems does not
accurately and completely record the information available
from a public record source or licensor, the data broker
shall--
(i) correct any inaccuracies or incompleteness, and provide
to such individual written notice of such changes; and
(ii) provide such individual with the contact information
of the public record or licensor.
(2) Information not from a public record source or
licensor.--If an individual notifies a data broker of a
dispute as to the completeness or accuracy of information not
from a public record or licensor that was disclosed to the
individual under subsection (c), the data broker shall,
within 30 days of receiving notice of such dispute--
(A) review and consider free of charge any information
submitted by such individual that is relevant to the
completeness or accuracy of the disputed information; and
(B) correct any information found to be incomplete or
inaccurate and provide notice to such individual of whether
and what information was corrected, if any.
(3) Extension of review period.--The 30-day period
described in paragraph (1) may be extended for not more than
30 additional days if a data broker receives information from
the individual during the initial 30-day period that is
relevant to the completeness or accuracy of any disputed
information.
(4) Notice identifying the data furnisher.--If the
completeness or accuracy of any information not from a public
record source or licensor that was disclosed to an individual
under subsection (c) is disputed by such individual, the data
broker shall provide, upon the request of such individual,
the contact information of any data furnisher that provided
the disputed information.
(5) Determination that dispute is frivolous or
irrelevant.--
(A) In general.--Notwithstanding paragraphs (1) through
(3), a data broker may decline to investigate or terminate a
review of information disputed by an individual under those
paragraphs if the data broker reasonably determines that the
dispute by the individual is frivolous or intended to
perpetrate fraud.
(B) Notice.--A data broker shall notify an individual of a
determination under subparagraph (A) within a reasonable time
by any means available to such data broker.

SEC. 202. ENFORCEMENT.

(a) Civil Penalties.--
(1) Penalties.--Any data broker that violates the
provisions of section 201 shall be subject to civil penalties
of not more than $1,000 per violation per day while such
violations persist, up to a maximum of $250,000 per
violation.
(2) Intentional or willful violation.--A data broker that
intentionally or willfully violates the provisions of section
201 shall be subject to additional penalties in the amount of
$1,000 per violation per day, to a maximum of an additional
$250,000 per violation, while such violations persist.
(3) Equitable relief.--A data broker engaged in interstate
commerce that violates this section may be enjoined from
further violations by a court of competent jurisdiction.
(4) Other rights and remedies.--The rights and remedies
available under this subsection are cumulative and shall not
affect any other rights and remedies available under law.
(b) Federal Trade Commission Authority.--Any data broker
shall have the provisions of this title enforced against it
by the Federal Trade Commission.
(c) State Enforcement.--
(1) Civil actions.--In any case in which the attorney
general of a State or any State or local law enforcement
agency authorized by the State attorney general or by State
statute to prosecute violations of consumer protection law,
has reason to believe that an interest of the residents of
that State has been or is threatened or adversely affected by
the acts or practices of a data broker that violate this
title, the State may bring a civil action on behalf of the
residents of that State in a district court of the United
States of appropriate jurisdiction, or any other court of
competent jurisdiction, to--
(A) enjoin that act or practice;
(B) enforce compliance with this title; or
(C) obtain civil penalties of not more than $1,000 per
violation per day while such violations persist, up to a
maximum of $250,000 per violation.
(2) Notice.--
(A) In general.--Before filing an action under this
subsection, the attorney general of the State involved shall
provide to the Federal Trade Commission--
(i) a written notice of that action; and
(ii) a copy of the complaint for that action.
(B) Exception.--Subparagraph (A) shall not apply with
respect to the filing of an action by an attorney general of
a State under this subsection, if the attorney general of a
State determines that it is not feasible to provide the
notice described in subparagraph (A) before the filing of the
action.
(C) Notification when practicable.--In an action described
under subparagraph (B), the attorney general of a State shall
provide the written notice and the copy of the complaint to
the Federal Trade Commission as soon after the filing of the
complaint as practicable.
(3) Federal trade commission authority.--Upon receiving
notice under paragraph (2), the Federal Trade Commission
shall have the right to--
(A) move to stay the action, pending the final disposition
of a pending Federal proceeding or action as described in
paragraph (4);
(B) intervene in an action brought under paragraph (1); and
(C) file petitions for appeal.
(4) Pending proceedings.--If the Federal Trade Commission
has instituted a proceeding or civil action for a violation
of this title, no attorney general of a State may, during the
pendency of such proceeding or civil action, bring an action
under this subsection against any defendant named in such
civil action for any violation that is alleged in that civil
action.
(5) Rule of construction.--For purposes of bringing any
civil action under paragraph (1), nothing in this title shall
be construed to prevent an attorney general of a State from
exercising the powers conferred on the attorney general by
the laws of that State to--
(A) conduct investigations;
(B) administer oaths and affirmations; or
(C) compel the attendance of witnesses or the production of
documentary and other evidence.
(6) Venue; service of process.--
(A) Venue.--Any action brought under this subsection may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
(B) Service of process.--In an action brought under this
subsection process may be served in any district in which the
defendant--
(i) is an inhabitant; or
(ii) may be found.
(d) No Private Cause of Action.--Nothing in this title
establishes a private cause of action against a data broker
for violation of any provision of this title.

SEC. 203. RELATION TO STATE LAWS.

No requirement or prohibition may be imposed under the laws
of any State with respect to any subject matter regulated
under section 201, relating to individual access to, and
correction of, personal electronic records held by data
brokers.

SEC. 204. EFFECTIVE DATE.

This title shall take effect 180 days after the date of
enactment of this Act.

TITLE III--PRIVACY AND SECURITY OF PERSONALLY IDENTIFIABLE INFORMATION

Subtitle A--A Data Privacy and Security Program

SEC. 301. PURPOSE AND APPLICABILITY OF DATA PRIVACY AND
SECURITY PROGRAM.

(a) Purpose.--The purpose of this subtitle is to ensure
standards for developing and implementing administrative,
technical, and physical safeguards to protect the security of
sensitive personally identifiable information.
(b) In General.--A business entity engaging in interstate
commerce that involves collecting, accessing, transmitting,
using, storing, or disposing of sensitive personally
identifiable information in electronic or digital form on
10,000 or more United States persons is subject to the
requirements for a data privacy and security program under
section 302 for protecting sensitive personally identifiable
information.
(c) Limitations.--Notwithstanding any other obligation
under this subtitle, this subtitle does not apply to:
(1) Financial institutions.--Financial institutions--
(A) subject to the data security requirements and
implementing regulations under the Gramm-Leach-Bliley Act (15
U.S.C. 6801 et seq.); and
(B) subject to--
(i) examinations for compliance with the requirements of
this Act by a Federal Functional Regulator or State Insurance
Authority (as those terms are defined in section 509 of the
Gramm-Leach-Bliley Act (15 U.S.C. 6809)); or
(ii) compliance with part 314 of title 16, Code of Federal
Regulations.
(2) HIPPA regulated entities.--

[[Page S1632]]

(A) Covered entities.--Covered entities subject to the
Health Insurance Portability and Accountability Act of 1996
(42 U.S.C. 1301 et seq.), including the data security
requirements and implementing regulations of that Act.
(B) Business entities.--A business entity shall be deemed
in compliance with the privacy and security program
requirements under section 302 if the business entity is
acting as a ``business associate'' as that term is defined in
the Health Insurance Portability and Accountability Act of
1996 (42 U.S.C. 1301 et. seq.) and is in compliance with
requirements imposed under that Act and its implementing
regulations.
(3) Public records.--Public records not otherwise subject
to a confidentiality or nondisclosure requirement, or
information obtained from a news report or periodical.
(d) Safe Harbors.--
(1) In general.--A business entity shall be deemed in
compliance with the privacy and security program requirements
under section 302 if the business entity complies with or
provides protection equal to industry standards, as
identified by the Federal Trade Commission, that are
applicable to the type of sensitive personally identifiable
information involved in the ordinary course of business of
such business entity.
(2) Limitation.--Nothing in this subsection shall be
construed to permit, and nothing does permit, the Federal
Trade Commission to issue regulations requiring, or according
greater legal status to, the implementation of or application
of a specific technology or technological specifications for
meeting the requirements of this title.

SEC. 302. REQUIREMENTS FOR A PERSONAL DATA PRIVACY AND
SECURITY PROGRAM.

(a) Personal Data Privacy and Security Program.--A business
entity subject to this subtitle shall comply with the
following safeguards and any other administrative, technical,
or physical safeguards identified by the Federal Trade
Commission in a rulemaking process pursuant to section 553 of
title 5, United States Code, for the protection of sensitive
personally identifiable information:
(1) Scope.--A business entity shall implement a
comprehensive personal data privacy and security program that
includes administrative, technical, and physical safeguards
appropriate to the size and complexity of the business entity
and the nature and scope of its activities.
(2) Design.--The personal data privacy and security program
shall be designed to--
(A) ensure the privacy, security, and confidentiality of
sensitive personally identifying information;
(B) protect against any anticipated vulnerabilities to the
privacy, security, or integrity of sensitive personally
identifying information; and
(C) protect against unauthorized access to use of sensitive
personally identifying information that could result in
substantial harm or inconvenience to any individual.
(3) Risk assessment.--A business entity shall--
(A) identify reasonably foreseeable internal and external
vulnerabilities that could result in unauthorized access,
disclosure, use, or alteration of sensitive personally
identifiable information or systems containing sensitive
personally identifiable information;
(B) assess the likelihood of and potential damage from
unauthorized access, disclosure, use, or alteration of
sensitive personally identifiable information;
(C) assess the sufficiency of its policies, technologies,
and safeguards in place to control and minimize risks from
unauthorized access, disclosure, use, or alteration of
sensitive personally identifiable information; and
(D) assess the vulnerability of sensitive personally
identifiable information during destruction and disposal of
such information, including through the disposal or
retirement of hardware.
(4) Risk management and control.--Each business entity
shall--
(A) design its personal data privacy and security program
to control the risks identified under paragraph (3); and
(B) adopt measures commensurate with the sensitivity of the
data as well as the size, complexity, and scope of the
activities of the business entity that--
(i) control access to systems and facilities containing
sensitive personally identifiable information, including
controls to authenticate and permit access only to authorized
individuals;
(ii) detect actual and attempted fraudulent, unlawful, or
unauthorized access, disclosure, use, or alteration of
sensitive personally identifiable information, including by
employees and other individuals otherwise authorized to have
access;
(iii) protect sensitive personally identifiable information
during use, transmission, storage, and disposal by encryption
or other reasonable means (including as directed for disposal
of records under section 628 of the Fair Credit Reporting Act
(15 U.S.C. 1681w) and the implementing regulations of such
Act as set forth in section 682 of title 16, Code of Federal
Regulations); and
(iv) ensure that sensitive personally identifiable
information is properly destroyed and disposed of, including
during the destruction of computers, diskettes, and other
electronic media that contain sensitive personally
identifiable information.
(b) Training.--Each business entity subject to this
subtitle shall take steps to ensure employee training and
supervision for implementation of the data security program
of the business entity.
(c) Vulnerability Testing.--
(1) In general.--Each business entity subject to this
subtitle shall take steps to ensure regular testing of key
controls, systems, and procedures of the personal data
privacy and security program to detect, prevent, and respond
to attacks or intrusions, or other system failures.
(2) Frequency.--The frequency and nature of the tests
required under paragraph (1) shall be determined by the risk
assessment of the business entity under subsection (a)(3).
(d) Relationship to Service Providers.--In the event a
business entity subject to this subtitle engages service
providers not subject to this subtitle, such business entity
shall--
(1) exercise appropriate due diligence in selecting those
service providers for responsibilities related to sensitive
personally identifiable information, and take reasonable
steps to select and retain service providers that are capable
of maintaining appropriate safeguards for the security,
privacy, and integrity of the sensitive personally
identifiable information at issue; and
(2) require those service providers by contract to
implement and maintain appropriate measures designed to meet
the objectives and requirements governing entities subject to
section 301, this section, and subtitle B.
(e) Periodic Assessment and Personal Data Privacy and
Security Modernization.--Each business entity subject to this
subtitle shall on a regular basis monitor, evaluate, and
adjust, as appropriate its data privacy and security program
in light of any relevant changes in--
(1) technology;
(2) the sensitivity of personally identifiable information;
(3) internal or external threats to personally identifiable
information; and
(4) the changing business arrangements of the business
entity, such as--
(A) mergers and acquisitions;
(B) alliances and joint ventures;
(C) outsourcing arrangements;
(D) bankruptcy; and
(E) changes to sensitive personally identifiable
information systems.
(f) Implementation Time Line.--Not later than 1 year after
the date of enactment of this Act, a business entity subject
to the provisions of this subtitle shall implement a data
privacy and security program pursuant to this subtitle.

SEC. 303. ENFORCEMENT.

(a) Civil Penalties.--
(1) In general.--Any business entity that violates the
provisions of sections 301 or 302 shall be subject to civil
penalties of not more than $5,000 per violation per day while
such a violation exists, with a maximum of $500,000 per
violation.
(2) Intentional or willful violation.--A business entity
that intentionally or willfully violates the provisions of
sections 301 or 302 shall be subject to additional penalties
in the amount of $5,000 per violation per day while such a
violation exists, with a maximum of an additional $500,000
per violation.
(3) Equitable relief.--A business entity engaged in
interstate commerce that violates this section may be
enjoined from further violations by a court of competent
jurisdiction.
(4) Other rights and remedies.--The rights and remedies
available under this section are cumulative and shall not
affect any other rights and remedies available under law.
(b) Federal Trade Commission Authority.--Any data broker
shall have the provisions of this subtitle enforced against
it by the Federal Trade Commission.
(c) State Enforcement.--
(1) Civil actions.--In any case in which the attorney
general of a State or any State or local law enforcement
agency authorized by the State attorney general or by State
statute to prosecute violations of consumer protection law,
has reason to believe that an interest of the residents of
that State has been or is threatened or adversely affected by
the acts or practices of a data broker that violate this
subtitle, the State may bring a civil action on behalf of the
residents of that State in a district court of the United
States of appropriate jurisdiction, or any other court of
competent jurisdiction, to--
(A) enjoin that act or practice;
(B) enforce compliance with this subtitle; or
(C) obtain civil penalties of not more than $5,000 per
violation per day while such violations persist, up to a
maximum of $500,000 per violation.
(2) Notice.--
(A) In general.--Before filing an action under this
subsection, the attorney general of the State involved shall
provide to the Federal Trade Commission--
(i) a written notice of that action; and
(ii) a copy of the complaint for that action.
(B) Exception.--Subparagraph (A) shall not apply with
respect to the filing of an action by an attorney general of
a State under this subsection, if the attorney general of a
State determines that it is not feasible to provide the
notice described in this subparagraph before the filing of
the action.
(C) Notification when practicable.--In an action described
under subparagraph (B), the attorney general of a State shall
provide the

[[Page S1633]]

written notice and the copy of the complaint to the Federal
Trade Commission as soon after the filing of the complaint as
practicable.
(3) Federal trade commission authority.--Upon receiving
notice under paragraph (2), the Federal Trade Commission
shall have the right to--
(A) move to stay the action, pending the final disposition
of a pending Federal proceeding or action as described in
paragraph (4);
(B) intervene in an action brought under paragraph (1); and
(C) file petitions for appeal.
(4) Pending proceedings.--If the Federal Trade Commission
has instituted a proceeding or action for a violation of this
subtitle or any regulations thereunder, no attorney general
of a State may, during the pendency of such proceeding or
action, bring an action under this subsection against any
defendant named in such criminal proceeding or civil action
for any violation that is alleged in that proceeding or
action.
(5) Rule of construction.--For purposes of bringing any
civil action under paragraph (1) nothing in this subtitle
shall be construed to prevent an attorney general of a State
from exercising the powers conferred on the attorney general
by the laws of that State to--
(A) conduct investigations;
(B) administer oaths and affirmations; or
(C) compel the attendance of witnesses or the production of
documentary and other evidence.
(6) Venue; service of process.--
(A) Venue.--Any action brought under this subsection may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code.
(B) Service of process.--In an action brought under this
subsection process may be served in any district in which the
defendant--
(i) is an inhabitant; or
(ii) may be found.
(d) No Private Cause of Action.--Nothing in this subtitle
establishes a private cause of action against a business
entity for violation of any provision of this subtitle.

SEC. 304. RELATION TO OTHER LAWS.

(a) In General.--No State may require any business entity
subject to this subtitle to comply with any requirements with
respect to administrative, technical, and physical safeguards
for the protection of sensitive personally identifying
information.
(b) Limitations.--Nothing in this subtitle shall be
construed to modify, limit, or supersede the operation of the
Gramm-Leach-Bliley Act or its implementing regulations,
including those adopted or enforced by States.

Subtitle B--Security Breach Notification

SEC. 311. NOTICE TO INDIVIDUALS.

(a) In General.--Any agency, or business entity engaged in
interstate commerce, that uses, accesses, transmits, stores,
disposes of or collects sensitive personally identifiable
information shall, following the discovery of a security
breach of the systems or databases of such agency or business
entity notify any resident of the United States whose
sensitive personally identifiable information has been, or is
reasonably believed to have been, accessed, or acquired.
(b) Obligation of Owner or Licensee.--
(1) Notice to owner or licensee.--Any agency, or business
entity engaged in interstate commerce, that uses, accesses,
transmits, stores, disposes of, or collects sensitive
personally identifiable information that the agency or
business entity does not own or license shall notify the
owner or licensee of the information following the discovery
of a security breach involving such information.
(2) Notice by owner, licensee or other designated third
party.--Nothing in this subtitle shall prevent or abrogate an
agreement between an agency or business entity required to
give notice under this section and a designated third party,
including an owner or licensee of the sensitive personally
identifiable information subject to the security breach, to
provide the notifications required under subsection (a).
(3) Business entity relieved from giving notice.--A
business entity obligated to give notice under subsection (a)
shall be relieved of such obligation if an owner or licensee
of the sensitive personally identifiable information subject
to the security breach, or other designated third party,
provides such notification.
(c) Timeliness of Notification.--
(1) In general.--All notifications required under this
section shall be made without unreasonable delay following
the discovery by the agency or business entity of a security
breach.
(2) Reasonable delay.--Reasonable delay under this
subsection may include any time necessary to determine the
scope of the security breach, prevent further disclosures,
and restore the reasonable integrity of the data system and
provide notice to law enforcement when required.
(3) Burden of proof.--The agency, business entity, owner,
or licensee required to provide notification under this
section shall have the burden of demonstrating that all
notifications were made as required under this subtitle,
including evidence demonstrating the reasons for any delay.
(d) Delay of Notification Authorized for Law Enforcement
Purposes.--
(1) In general.--If a Federal law enforcement agency
determines that the notification required under this section
would impede a criminal investigation, such notification
shall be delayed upon written notice from such Federal law
enforcement agency to the agency or business entity that
experienced the breach.
(2) Extended delay of notification.--If the notification
required under subsection (a) is delayed pursuant to
paragraph (1), an agency or business entity shall give notice
30 days after the day such law enforcement delay was invoked
unless a Federal law enforcement agency provides written
notification that further delay is necessary.
(3) Law enforcement immunity.--No cause of action shall lie
in any court against any law enforcement agency for acts
relating to the delay of notification for law enforcement
purposes under this subtitle.

SEC. 312. EXEMPTIONS.

(a) Exemption for National Security and Law Enforcement.--
(1) In general.--Section 311 shall not apply to an agency
or business entity if the agency or business entity
certifies, in writing, that notification of the security
breach as required by section 311 reasonably could be
expected to--
(A) cause damage to the national security; or
(B) hinder a law enforcement investigation or the ability
of the agency to conduct law enforcement investigations.
(2) Limits on certifications.--An agency may not execute a
certification under paragraph (1) to--
(A) conceal violations of law, inefficiency, or
administrative error;
(B) prevent embarrassment to a business entity,
organization, or agency; or
(C) restrain competition.
(3) Notice.--In every case in which an agency issues a
certification under paragraph (1), the certification,
accompanied by a description of the factual basis for the
certification, shall be immediately provided to the United
States Secret Service.
(b) Safe Harbor.--An agency or business entity will be
exempt from the notice requirements under section 311, if--
(1) a risk assessment concludes that there is no
significant risk that the security breach has resulted in, or
will result in, harm to the individuals whose sensitive
personally identifiable information was subject to the
security breach;
(2) without unreasonable delay, but not later than 45 days
after the discovery of a security breach, unless extended by
the United States Secret Service, the agency or business
entity notifies the United States Secret Service, in writing,
of--
(A) the results of the risk assessment; and
(B) its decision to invoke the risk assessment exemption;
and
(3) the United States Secret Service does not indicate, in
writing, within 10 days from receipt of the decision, that
notice should be given.
(c) Financial Fraud Prevention Exemption.--
(1) In general.--A business entity will be exempt from the
notice requirement under section 311 if the business entity
utilizes or participates in a security program that--
(A) is designed to block the use of the sensitive
personally identifiable information to initiate unauthorized
financial transactions before they are charged to the account
of the individual; and
(B) provides for notice to affected individuals after a
security breach that has resulted in fraud or unauthorized
transactions.
(2) Limitation.--The exemption by this subsection does not
apply if the information subject to the security breach
includes sensitive personally identifiable information in
addition to the sensitive personally identifiable information
identified in section 3.

SEC. 313. METHODS OF NOTICE.

An agency, or business entity shall be in compliance with
section 311 if it provides both:
(1) Individual notice.--
(A) Written notification to the last known home mailing
address of the individual in the records of the agency or
business entity;
(B) Telephone notice to the individual personally; or
(C) Electronic notice, if the primary method used by the
agency or business entity to communicate with the individual
is by electronic means, or the individual has consented to
receive such notice and the notice is consistent with the
provisions permitting electronic transmission of notices
under section 101 of the Electronic Signatures in Global and
National Commerce Act (15 U.S.C. 7001).
(2) Media notice.--Notice to major media outlets serving a
State or jurisdiction, if the number of residents of such
State whose sensitive personally identifiable information
was, or is reasonably believed to have been, acquired by an
unauthorized person exceeds 5,000.

SEC. 314. CONTENT OF NOTIFICATION.

(a) In General.--Regardless of the method by which notice
is provided to individuals under section 313, such notice
shall include, to the extent possible--
(1) a description of the categories of sensitive personally
identifiable information that was, or is reasonably believed
to have been, acquired by an unauthorized person;
(2) a toll-free number or, if the primary method used by
the agency or business entity to communicate with the
individual is by electronic means, an electronic mail
address--
(A) that the individual may use to contact the agency or
business entity, or the agent of the agency or business
entity; and

[[Page S1634]]

(B) from which the individual may learn what types of
sensitive personally identifiable information the agency or
business entity maintained about that individual; and
(3) the toll-free contact telephone numbers and addresses
for the major credit reporting agencies.
(b) Additional Content.--Notwithstanding section 319, a
State may require that a notice under subsection (a) shall
also include information regarding victim protection
assistance provided for by that State.

SEC. 315. COORDINATION OF NOTIFICATION WITH CREDIT REPORTING
AGENCIES.

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

SEC. 316. NOTICE TO LAW ENFORCEMENT.

(a) Secret Service.--Any business entity or agency shall
give notice of a security breach to the United States Secret
Service if--
(1) the number of individuals whose sensitive personally
identifying information was, or is reasonably believed to
have been acquired by an unauthorized person exceeds 10,000;
(2) the security breach involves a database, networked or
integrated databases, or other data system containing the
sensitive personally identifiable information of more than
1,000,000 individuals nationwide;
(3) the security breach involves databases owned by the
Federal Government; or
(4) the security breach involves primarily sensitive
personally identifiable information of individuals known to
the agency or business entity to be employees and contractors
of the Federal Government involved in national security or
law enforcement.
(b) Notice to Other Law Enforcement Agencies.--The United
States Secret Service shall be responsible for notifying--
(1) the Federal Bureau of Investigation, if the security
breach involves espionage, foreign counterintelligence,
information protected against unauthorized disclosure for
reasons of national defense or foreign relations, or
Restricted Data (as that term is defined in section 11y of
the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)), except for
offenses affecting the duties of the United States Secret
Service under section 3056(a) of title 18, United States
Code;
(2) the United States Postal Inspection Service, if the
security breach involves mail fraud; and
(3) the attorney general of each State affected by the
security breach.
(c) 14-Day Rule.--The notices to Federal law enforcement
and the attorney general of each State affected by a security
breach required under this section shall be delivered as
promptly as possible, but not later than 14 days after
discovery of the events requiring notice.

SEC. 317. ENFORCEMENT.

(a) Civil Actions by the Attorney General.--The Attorney
General may bring a civil action in the appropriate United
States district court against any business entity that
engages in conduct constituting a violation of this subtitle
and, upon proof of such conduct by a preponderance of the
evidence, such business entity shall be subject to a civil
penalty of not more than $1,000 per day per individual whose
sensitive personally identifiable information was, or is
reasonably believed to have been, accessed or acquired by an
unauthorized person, up to a maximum of $1,000,000 per
violation, unless such conduct is found to be willful or
intentional.
(b) Injunctive Actions by the Attorney General.--
(1) In general.--If it appears that a business entity has
engaged, or is engaged, in any act or practice constituting a
violation of this subtitle, the Attorney General may petition
an appropriate district court of the United States for an
order--
(A) enjoining such act or practice; or
(B) enforcing compliance with this subtitle.
(2) Issuance of order.--A court may issue an order under
paragraph (1), if the court finds that the conduct in
question constitutes a violation of this subtitle.
(c) Other Rights and Remedies.--The rights and remedies
available under this subtitle are cumulative and shall not
affect any other rights and remedies available under law.
(d) Fraud Alert.--Section 605A(b)(1) of the Fair Credit
Reporting Act (15 U.S.C. 1681c-1(b)(1)) is amended by
inserting ``, or evidence that the consumer has received
notice that the consumer's financial information has or may
have been compromised,'' after ``identity theft report''.

SEC. 318. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

(a) In General.--
(1) Civil actions.--In any case in which the attorney
general of a State or any State or local law enforcement
agency authorized by the State attorney general or by State
statute to prosecute violations of consumer protection law,
has reason to believe that an interest of the residents of
that State has been or is threatened or adversely affected by
the engagement of a business entity in a practice that is
prohibited under this subtitle, the State or the State or
local law enforcement agency on behalf of the residents of
the agency's jurisdiction, may bring a civil action on behalf
of the residents of the State or jurisdiction in a district
court of the United States of appropriate jurisdiction or any
other court of competent jurisdiction, including a State
court, to--
(A) enjoin that practice;
(B) enforce compliance with this subtitle; or
(C) civil penalties of not more than $1,000 per day per
individual whose sensitive personally identifiable
information was, or is reasonably believed to have been,
accessed or acquired by an unauthorized person, up to a
maximum of $1,000,000 per violation, unless such conduct is
found to be willful or intentional.
(2) Notice.--
(A) In general.--Before filing an action under paragraph
(1), the attorney general of the State involved shall provide
to the Attorney General of the United States--
(i) written notice of the action; and
(ii) a copy of the complaint for the action.
(B) Exemption.--
(i) In general.--Subparagraph (A) shall not apply with
respect to the filing of an action by an attorney general of
a State under this subtitle, if the State attorney general
determines that it is not feasible to provide the notice
described in such subparagraph before the filing of the
action.
(ii) Notification.--In an action described in clause (i),
the attorney general of a State shall provide notice and a
copy of the complaint to the Attorney General at the time the
State attorney general files the action.
(b) Federal Proceedings.--Upon receiving notice under
subsection (a)(2), the Attorney General shall have the right
to--
(1) move to stay the action, pending the final disposition
of a pending Federal proceeding or action;
(2) initiate an action in the appropriate United States
district court under section 317 and move to consolidate all
pending actions, including State actions, in such court;
(3) intervene in an action brought under subsection (a)(2);
and
(4) file petitions for appeal.
(c) Pending Proceedings.--If the Attorney General has
instituted a proceeding or action for a violation of this
subtitle or any regulations thereunder, no attorney general
of a State may, during the pendency of such proceeding or
action, bring an action under this subtitle against any
defendant named in such criminal proceeding or civil action
for any violation that is alleged in that proceeding or
action.
(d) Construction.--For purposes of bringing any civil
action under subsection (a), nothing in this subtitle
regarding notification shall be construed to prevent an
attorney general of a State from exercising the powers
conferred on such attorney general by the laws of that State
to--
(1) conduct investigations;
(2) administer oaths or affirmations; or
(3) compel the attendance of witnesses or the production of
documentary and other evidence.
(e) Venue; Service of Process.--
(1) Venue.--Any action brought under subsection (a) may be
brought in--
(A) the district court of the United States that meets
applicable requirements relating to venue under section 1391
of title 28, United States Code; or
(B) another court of competent jurisdiction.
(2) Service of process.--In an action brought under
subsection (a), process may be served in any district in
which the defendant--
(A) is an inhabitant; or
(B) may be found.
(f) No Private Cause of Action.--Nothing in this subtitle
establishes a private cause of action against a business
entity for violation of any provision of this subtitle.

SEC. 319. EFFECT ON FEDERAL AND STATE LAW.

The provisions of this subtitle shall supersede any other
provision of Federal law or any provision of law of any State
relating to notification of a security breach, except as
provided in section 314(b).

SEC. 320. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 321. REPORTING ON RISK ASSESSMENT EXEMPTIONS.

The United States Secret Service shall report to Congress
not later than 18 months after the date of enactment of this
Act, and upon the request by Congress thereafter, on--
(1) the number and nature of the security breaches
described in the notices filed by those business entities
invoking the risk assessment exemption under section 312(b)
and the response of the United States Secret Service to such
notices; and
(2) the number and nature of security breaches subject to
the national security and law enforcement exemptions under
section 312(a), provided that such report may not disclose
the contents of any risk assessment provided to the United
States Secret Service pursuant to this subtitle.

SEC. 322. EFFECTIVE DATE.

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

[[Page S1635]]

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

SEC. 401. GENERAL SERVICES ADMINISTRATION REVIEW OF
CONTRACTS.

(a) In General.--In considering contract awards totaling
more than $500,000 and entered into after the date of
enactment of this Act with data brokers, the Administrator of
the General Services Administration shall evaluate--
(1) the data privacy and security program of a data broker
to ensure the privacy and security of data containing
personally identifiable information, including whether such
program adequately addresses privacy and security threats
created by malicious software or code, or the use of peer-to-
peer file sharing software;
(2) the compliance of a data broker with such program;
(3) the extent to which the databases and systems
containing personally identifiable information of a data
broker have been compromised by security breaches; and
(4) the response by a data broker to such breaches,
including the efforts by such data broker to mitigate the
impact of such security breaches.
(b) Compliance Safe Harbor.--The data privacy and security
program of a data broker shall be deemed sufficient for the
purposes of subsection (a), if the data broker complies with
or provides protection equal to industry standards, as
identified by the Federal Trade Commission, that are
applicable to the type of personally identifiable information
involved in the ordinary course of business of such data
broker.
(c) Penalties.--In awarding contracts with data brokers for
products or services related to access, use, compilation,
distribution, processing, analyzing, or evaluating personally
identifiable information, the Administrator of the General
Services Administration shall--
(1) include monetary or other penalties--
(A) for failure to comply with subtitles A and B of title
III; or
(B) if a contractor knows or has reason to know that the
personally identifiable information being provided is
inaccurate, and provides such inaccurate information; and
(2) require a data broker that engages service providers
not subject to subtitle A of title III for responsibilities
related to sensitive personally identifiable information to--
(A) exercise appropriate due diligence in selecting those
service providers for responsibilities related to personally
identifiable information;
(B) take reasonable steps to select and retain service
providers that are capable of maintaining appropriate
safeguards for the security, privacy, and integrity of the
personally identifiable information at issue; and
(C) require such service providers, by contract, to
implement and maintain appropriate measures designed to meet
the objectives and requirements in title III.
(d) Limitation.--The penalties under subsection (c) shall
not apply to a data broker providing information that is
accurately and completely recorded from a public record
source or licensor.

SEC. 402. REQUIREMENT TO AUDIT INFORMATION SECURITY PRACTICES
OF CONTRACTORS AND THIRD PARTY BUSINESS
ENTITIES.

Section 3544(b) of title 44, United States Code, is
amended--
(1) in paragraph (7)(C)(iii), by striking ``and'' after the
semicolon;
(2) in paragraph (8), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(9) procedures for evaluating and auditing the
information security practices of contractors or third party
business entities supporting the information systems or
operations of the agency involving personally identifiable
information (as that term is defined in section 3 of the
Personal Data Privacy and Security Act of 2007) and ensuring
remedial action to address any significant deficiencies.''.

SEC. 403. PRIVACY IMPACT ASSESSMENT OF GOVERNMENT USE OF
COMMERCIAL INFORMATION SERVICES CONTAINING
PERSONALLY IDENTIFIABLE INFORMATION.

(a) In General.--Section 208(b)(1) of the E-Government Act
of 2002 (44 U.S.C. 3501 note) is amended--
(1) in subparagraph (A)(i), by striking ``or''; and
(2) in subparagraph (A)(ii), by striking the period and
inserting ``; or''; and
(3) by inserting after clause (ii) the following:
``(iii) purchasing or subscribing for a fee to personally
identifiable information from a data broker (as such terms
are defined in section 3 of the Personal Data Privacy and
Security Act of 2007).''.
(b) Limitation.--Notwithstanding any other provision of
law, commencing 1 year after the date of enactment of this
Act, no Federal agency may enter into a contract with a data
broker to access for a fee any database consisting primarily
of personally identifiable information concerning United
States persons (other than news reporting or telephone
directories) unless the head of such department or agency--
(1) completes a privacy impact assessment under section 208
of the E-Government Act of 2002 (44 U.S.C. 3501 note), which
shall subject to the provision in that Act pertaining to
sensitive information, include a description of--
(A) such database;
(B) the name of the data broker from whom it is obtained;
and
(C) the amount of the contract for use;
(2) adopts regulations that specify--
(A) the personnel permitted to access, analyze, or
otherwise use such databases;
(B) standards governing the access, analysis, or use of
such databases;
(C) any standards used to ensure that the personally
identifiable information accessed, analyzed, or used is the
minimum necessary to accomplish the intended legitimate
purpose of the Federal agency;
(D) standards limiting the retention and redisclosure of
personally identifiable information obtained from such
databases;
(E) procedures ensuring that such data meet standards of
accuracy, relevance, completeness, and timeliness;
(F) the auditing and security measures to protect against
unauthorized access, analysis, use, or modification of data
in such databases;
(G) applicable mechanisms by which individuals may secure
timely redress for any adverse consequences wrongly incurred
due to the access, analysis, or use of such databases;
(H) mechanisms, if any, for the enforcement and independent
oversight of existing or planned procedures, policies, or
guidelines; and
(I) an outline of enforcement mechanisms for accountability
to protect individuals and the public against unlawful or
illegitimate access or use of databases; and
(3) incorporates into the contract or other agreement
totaling more than $500,000, provisions--
(A) providing for penalties--
(i) for failure to comply with title III of this Act; or
(ii) if the entity knows or has reason to know that the
personally identifiable information being provided to the
Federal department or agency is inaccurate, and provides such
inaccurate information; and
(B) requiring a data broker that engages service providers
not subject to subtitle A of title III for responsibilities
related to sensitive personally identifiable information to--
(i) exercise appropriate due diligence in selecting those
service providers for responsibilities related to personally
identifiable information;
(ii) take reasonable steps to select and retain service
providers that are capable of maintaining appropriate
safeguards for the security, privacy, and integrity of the
personally identifiable information at issue; and
(iii) require such service providers, by contract, to
implement and maintain appropriate measures designed to meet
the objectives and requirements in title III.
(c) Limitation on Penalties.--The penalties under
subsection (b)(3)(A) shall not apply to a data broker
providing information that is accurately and completely
recorded from a public record source.
(d) Study of Government Use.--
(1) Scope of study.--Not later than 180 days after the date
of enactment of this Act, the Comptroller General of the
United States shall conduct a study and audit and prepare a
report on Federal agency use of data brokers or commercial
databases containing personally identifiable information,
including the impact on privacy and security, and the extent
to which Federal contracts include sufficient provisions to
ensure privacy and security protections, and penalties for
failures in privacy and security practices.
(2) Report.--A copy of the report required under paragraph
(1) shall be submitted to Congress.

SEC. 404. IMPLEMENTATION OF CHIEF PRIVACY OFFICER
REQUIREMENTS.

(a) Designation of the Chief Privacy Officer.--Pursuant to
the requirements under section 522 of the Transportation,
Treasury, Independent Agencies, and General Government
Appropriations Act, 2005 (division H of Public Law 108-447;
118 Stat. 3199) that each agency designate a Chief Privacy
Officer, the Department of Justice shall implement such
requirements by designating a department-wide Chief Privacy
Officer, whose primary role shall be to fulfill the duties
and responsibilities of Chief Privacy Officer and who shall
report directly to the Deputy Attorney General.
(b) Duties and Responsibilities of Chief Privacy Officer.--
In addition to the duties and responsibilities outlined under
section 522 of the Transportation, Treasury, Independent
Agencies, and General Government Appropriations Act, 2005
(division H of Public Law 108-447; 118 Stat. 3199), the
Department of Justice Chief Privacy Officer shall--
(1) oversee the Department of Justice's implementation of
the requirements under section 403 to conduct privacy impact
assessments of the use of commercial data containing
personally identifiable information by the Department; and
(2) coordinate with the Privacy and Civil Liberties
Oversight Board, established in the Intelligence Reform and
Terrorism Prevention Act of 2004 (Public Law 108-458), in
implementing this section.

Mr. SPECTER. Mr. President, I seek recognition today to discuss the
Personal Data Privacy and Security Act of 2007, which I am introducing
with Senator Leahy. Not long ago, personal information--Social Security
numbers, birthdates, mothers' maiden names, addresses--all remained
relatively private. Some information--for example,

[[Page S1636]]

whether you had a mortgage on your home--might have been publicly
available, but finding that information required a trip to the local
courthouse. For the most part, the sheer difficulty of obtaining
personal information kept it private. This privacy--what Justice
Brandeis called the freedom to be left alone--has been a cherished
value throughout American history.
As everyday transactions increasingly occur electronically, personal
information can be stored, transmitted and accessed much more easily.
Most Americans have benefited from this change. Because personal
information is available electronically, Americans enjoy the
convenience of purchasing goods over the phone or on the Internet. They
can obtain a home mortgage in a matter of hours. They can apply for a
credit card while they wait at the store. The availability of such
information also helps law enforcement agencies conduct investigations
and apprehend criminals.
In electronic form, personal information is both more valuable and
more vulnerable. As the multitude of security breaches that have
occurred over the past 2 years demonstrate, electronic information is
more vulnerable because it can be accessed anonymously from afar and
can be stolen in a split second. According to the Privacy Rights
Clearing House, since February 2005, over 100 million records
containing personal information have been subject to some sort of
security breach. The first of these incidents to come to light involved
commercial data broker ChoicePoint, which in February 2005 reported
that identity thieves had gained access to personal information of
163,000 people. The identity thieves had obtained the information by
setting up sham accounts with ChoicePoint. ChoicePoint eventually
settled with the FTC for $15 million, including $5 million for consumer
redress. However, consumers might never have found out about the
breach. The incident only came to light because of a law California had
recently adopted requiring ChoicePoint and others to provide notice of
security breaches involving personal information to California
residents who were affected by the breach. As a result of the
California law, Americans for the first time began learning that data
brokers and others were routinely collecting and selling their personal
information, and in so doing, they were not always keeping the
information secure.
After the ChoicePoint incident came a long series of security
breaches involving major American companies. In March of 2005, Designer
Shoe Warehouse reported that hackers had gained access to personal
information, including credit card numbers, on over 100,000 of its
customers. Weeks later, Lexis Nexis reported that hackers had gained
access to the personal information of over 300,000 individuals. Other
blue-chip companies where unauthorized persons have gained access to
personal information include Wal-Mart, General Motors, Wachovia Bank,
H&R Block, Honeywell, AT&T, Lloyd's of London, ARCO, Visa, MasterCard,
Bank of America, FedEx, OfficeMax, Blue Cross Blue Shield and Ralph
Lauren. The largest incident came in June 2005, when Card Systems,
which processes payments for the country's largest banks and credit
card companies, reported that hackers had accessed 40 million records
containing personal information. Most recently, TJ Maxx Stores and
MoneyGram both had the personal information of their customers stolen
from their computer systems. This list only includes security breaches
involving wrong-doers who were trying to obtain personal information.
The list would be much longer had it included inadvertent disclosure of
personal information or incidents involving stolen computers or other
equipment that happened to contain personal information.
A large number of colleges and universities have also suffered
significant breaches, including the University of Southern California,
which in July of 2005 reported that hackers has accessed 270,000
records containing personal data. Other educational institutions that
have been hacked include Boston College, Northwestern University, Tufts
University, UCLA, Michigan State, Carnegie Mellon, Perdue, Stanford,
Duke, the University of Iowa, the University of Colorado, and the
University of Utah.
Governments also have not been immune from attempts by identity
thieves to obtain personal information. Hackers have accessed personal
data at the Department of Defense, Department of Energy, the Air Force
and the Department of Agriculture. Hackers obtained over half a million
records containing personal data from a State agency in Georgia. The
San Diego County Employees Retirement Association, the California
Department of Corrections, the Nebraska Treasurers office, the city of
Lubbock, TX, and a Women, Infants and Children (WIC) program in Hawaii
have all been the victims of similar thefts.
Electronic personal data is more valuable because identity thieves
can steal a large volume of data and use it before anyone even knows
their personal information has been compromised. For the last 5 years,
identity theft has topped the FTC's list of consumer complaints. From
2002 to 2004, the number of complaints rose 52 percent, to 246,570. Put
another way, that's one complaint every 2 minutes. But this is only the
tip of the iceberg. Not all consumers report identity theft to the FTC.
Not all victims report identity theft to their local police. Sixty
percent of those who did file a report with the FTC did not call their
local police department. It stands to reason that many did not call the
FTC.

A recent study by the Better Business Bureau concluded that 8.9
million Americans were victims of identity fraud in 2006, and that each
victim lost approximately $6,300. Ultimately, it has been predicted
that nearly 20 percent of Americans will become victims of identity
theft. Worse, according to the study, it took victims an average of 40
hours on the phone with creditors and credit bureaus to clear their
names. I use the term ``clear'' loosely, because in many cases the
damage caused by identity theft is irreversible. Victims will have
fraud alerts on their credit reports for years to come, making it more
difficult for them to open new accounts or make major purchases. Some
will be erroneously contacted by collection agencies. Many will not
even know they have been victimized until they try to get a car loan or
a mortgage on a home.
Individuals who have not yet been victims also suffer. Businesses
lose nearly $50 billion a year from identity thieves posing as
customers. These losses translate into increased prices for every
consumer. All Americans are victims of identify theft, even if their
own information remains secure.
In some cases, the availability of electronic personal data can lead
to tragedy. In 1999, a former high school classmate of Amy Lynn Boyer
obtained her former work address and Social Security number from an on-
line data broker. Using this information, he called Amy's mother and
posed as the former employer, convincing Amy's mom to give him Amy's
new work address. He then drove to Amy's workplace and fatally shot
her.
In an effort to protect the privacy and security of our personal
information, and prevent future tragedies, small and large, last
Congress, Senator Leahy and I introduced the Personal Data Privacy and
Security Act. The problem is one of large proportions and many have
views on how to go about tackling it. Six committees, three on the
House side and three on the Senate side, introduced legislation last
Congress addressing data security. At least two other Senate committees
became involved in the issue. It is my hope that the differences among
committees and members can be bridged this Congress. The problem is
simply too large to ignore.
In an effort to start that process, Senator Leahy and I are again
introducing the Personal Data Privacy and Security Act. We are
reintroducing the bill in largely the same form that it was approved by
the Judiciary Committee last Congress. The bill takes a comprehensive
approach to the problem, an approach I believe is necessary. First, the
legislation goes after identity thieves by increasing penalties for
crimes involving electronic personal information. It also contains
criminal penalties for those who intentionally conceal a security
breach involving personal data. Those who actively conceal breaches
attempt to protect themselves by gambling with the reputations and
finances of innocent Americans. They deserve to be punished.

[[Page S1637]]

The bill also empowers Americans to look after the privacy of their
own information. The bill will allow individuals to gain access to
their personal information when it is in the hands of commercial data
brokers. For individuals who believe their information is wrong--
possibly because the activities of identity thieves--data brokers must
provide assistance with correcting their information.
The legislation also places some of the burden of protecting privacy
on those that collect personal information. It will require the
companies, government agencies, universities and others that deal with
personal information to identify and remedy any weaknesses in their
computer systems.
Such measures will not always be enough. As I've already noted, the
nature of electronic information makes it vulnerable even when
reasonable steps are taken to protect it. Currently, over 30 States
have adopted legislation requiring companies, agencies, universities
and others to give notice when they experience a security breach that
involves personal information. However, no Federal law imposes such a
requirement. As a result, companies are forced to comply with over 30
different State laws, an expensive and time-consuming endeavor.
The Personal Data Privacy and Security Act requires that both
affected individuals and law enforcement receive notice. Knowledge is
power. Once individuals learn that their personal information is
exposed, they can take steps to protect themselves. And, the company,
school or agency that experienced the breach must help. They must
provide individuals whose data was lost with credit monitoring. For
large breaches, the media must be notified. Media reports over the 2
years have made Americans far more aware of the problem of security
breaches. Hopefully, we can raise awareness by continuing the practice
of making public announcements. Notice will also give law enforcement a
head start in catching those who steal personal information.
Finally, this legislation will protect the privacy of all Americans
by providing a check on the government's use of commercial databases.
Federal law enforcement agencies use commercial databases to track
criminals and criminal activity. Correctly used, these databases can be
very useful tools in the fight against crime. However, there should be
some check on their use. The bill makes it clear that protections
similar to those provided by the Privacy Act are applied to the
government's use of commercial databases. The legislation also aims at
making sure the government's use of such data is secure.
This bill represents a comprehensive effort to protect the privacy
and security of the personal information of all Americans. The lives of
most Americans have been made easier because our personal information
is readily available to those who have a legitimate need for it. This
legislation aims to keep such information out of the hands of those who
have no legitimate need for it. I want to take a moment to thank my
colleague, Senator Leahy, who has been tireless in his efforts to
promote individual privacy. He has long fought these issues on the
Senate floor and has been a leader in securing the privacy rights of
all Americans. I urge my colleagues to join us in supporting this
important legislation.
Mr. FEINGOLD. Mr. President, I am proud to be an original cosponsor
of the Personal Data Privacy and Security Act of 2007. This bill is a
much-needed solution to the daunting problem of ensuring the privacy
and the security of our personal data, which has become such a precious
commodity.
Several forces are converging to make our personal information more
valuable--and more vulnerable--than ever. The world is digital and so
is our personal data. In this day and age, almost everything we do
results in a third party creating a digital record about us--digital
records that we may not even realize exist. We seek the convenience of
opening bank accounts, managing our credit cards, and making major
purchases over the Internet. And we often complete these transactions
without ever speaking to another person face-to-face or over the
telephone. Businesses, nonprofits, and political parties are
personalizing their messages, products, and services to a degree we've
never seen before, and they are willing to invest significant amounts
of money in collecting personal information about potential customers
or donors. And we are living in an age where identity-based screening
and security programs can be vitally important, resulting in more
information being collected about individuals in an attempt to identify
them accurately.
As a result, personal information has become a hot commodity that is
bought, sold, and--as so often happens when something becomes
valuable--stolen.
We are at a crossroads. We all know about the security breaches that
have been on the front pages of newspapers. They have placed the
identities of hundreds of thousands of Americans at risk. The fear
among the American public is so widespread that it has become the basis
of an entire ad campaign by a credit card company.
But this is about much more than information security. Until
California law required a company named ChoicePoint to notify
individuals in 2005 that their information was compromised and that
they might be vulnerable to identity theft, many Americans had never
heard of ChoicePoint. As news stories focused on the data broker
business, many Americans were surprised to discover that companies are
creating digital dossiers about them that contain massive amounts of
information, and that these companies sell that information to
commercial and government entities. The revelations about these
security breaches highlighted the fact that Americans need a better
understanding of what happens to their information in a digital world--
and what kind of consequences they can face as a result.
When I am back home in Wisconsin, I hear from people who do not
understand why companies have the right to sell their sensitive
personal information. I hear from people who are shocked to discover
that personal information about them is available for free on the
Internet.
There is no question that data aggregators facilitate societal
benefits, allowing consumers to obtain instant credit and personalized
services, and allowing police officers to locate suspects. But these
companies also gather a great deal of potentially sensitive information
about individuals, and in many instances they go largely unregulated.
Too many of my constituents feel that they have lost control over
their own information. Congress must return some power to individual
Americans so that we can all better understand and manage what happens
to our own personal data.
The Personal Data Privacy and Security Act takes a comprehensive
approach to the privacy and security problems we face. It gives
consumers back some control over their own information. The bill
requires data brokers to allow consumers to access their own
information and to investigate when consumers tell them that
corrections are necessary. And it requires companies to give notice to
affected consumers and to law enforcement if there is a serious
security breach, so that individuals know their identity may be at risk
and can take steps to protect themselves.
In addition, the bill extends existing criminal law to ensure that it
covers unauthorized access of data broker systems, as well as
concealment of security breaches. It requires companies that buy and
sell information to have appropriate data security systems in place.
These protections will help safeguard against future privacy violations
and security breaches in the commercial data industry. But that is not
all this bill accomplishes.
The bill also contains some critically important privacy and security
provisions to govern the government's use of commercial data. This is
an aspect of the data broker business that has not yet gotten as much
attention in the wake of the security breaches over the past few years.
The information gathered by these companies is not just sold to
individuals and businesses; government agencies of all stripes also buy
or subscribe to information from commercial sources. We all remember
the discovery in 2005 that the Pentagon had a contract with a marketing
firm to analyze commercial and other data about high school and college
students.

[[Page S1638]]

Although the government should be able to access commercial databases
in appropriate circumstances, there are few existing rules or
guidelines to ensure this information is used responsibly. Nor are
there restrictions on the use of commercial data for powerful,
intrusive data mining programs. The Privacy Act, which governs when
government agencies themselves are collecting data, likely does not
apply because the information is held outside the government and is not
gathered solely at government direction.
As a result, there is a great deal we do not know about government
use of commercial data, even in clearly appropriate circumstances such
as when the agency's goal is simply to locate an individual already
suspected of a crime.
We don't know under what circumstances government employees can
obtain access to these databases or for what purposes. We don't know
how government agencies evaluate the accuracy of the databases to which
they subscribe. We don't know how the accuracy level of the data
affects government use of the data. We don't know how employees are
monitored to ensure they do not abuse their access to these databases.
We don't know how those who misuse the information are punished. And we
don't know how government agencies, particularly those engaged in
sensitive national security investigations, ensure that the data
brokers cannot keep records of who the government is investigating,
records which themselves could create a huge security risk in light of
the vulnerabilities that have come to the forefront in recent months.
That is why I am so pleased that this bill includes provisions to
address the government's use of commercial data. A comprehensive
approach to data privacy and security would be incomplete without
taking on this piece of the puzzle. The bill recognizes there are many
legitimate reasons for government agencies to obtain commercially
available data, but that they need to be subject to privacy and
security protections. It takes a common sense approach, pushing
government agencies to take basic steps to ensure that individuals'
personal information is secure and only used for legitimate purposes,
and that the commercial information the government is paying for and
relying on is accurate and complete.
Specifically, the bill would require that federal agencies that
subscribe to commercial data adopt standards governing its use. These
standards would reflect long-standing basic privacy principles. The
bill would ensure that government agencies consider and determine which
personnel will be permitted to access the information and under what
circumstances; develop retention policies for this personal data and
get rid of data they no longer need, minimizing the opportunity for
abuse or theft; rely only on accurate and complete data, and penalize
vendors who knowingly provide inaccurate information to the Federal
Government; provide individuals who suffer adverse consequences as a
result of the agency's reliance on commercial data with a redress
mechanism; and establish enforcement mechanisms for those privacy
policies.
The bill also directs the General Services Administration to review
government contracts for commercial data to make sure that vendors have
appropriate security programs in place, and that they do not provide
information to the government that they know to be inaccurate. And it
requires agencies to audit the information security practices of their
vendors.
These are basic good government measures. They guarantee that the
Federal Government is not wasting money on inaccurate data and that
vendors are undertaking the security programs that they have promised
and for which the government is paying.
We live in a new digital world. The law may never fully keep up with
technology, but we must make every effort we can. I am proud to be
involved in this comprehensive, reasoned approach to privacy and
security, and I hope it will move forward in this Congress. I
congratulate Senators Leahy and Specter for their excellent work on
this bill. This bill is important and it deserves serious
consideration.
______

By Mrs. BOXER:
S. 497. A bill to repeal a prohibition on the use of certain funds
for tunneling in certain areas with respect to the Los Angeles to San
Fernando Valley Metro Rail project, California; to the Committee on
Banking, Housing, and Urban Affairs.
Mrs. BOXER. Mr. Pesident, today I rise to introduce a bill for myself
and Senator Feinstein to allow for subway tunneling in parts of Los
Angeles.
In 1985, in response to a methane gas explosion that destroyed a Ross
Dress for Less Store in Los Angeles, Representative Waxman worked to
enact a law that prohibits subway tunneling in his district.
In 2004, the Los Angeles City Council passed a motion in support of
reversing the laws banning tunneling. In February 2005, the Los Angeles
Metropolitan Transportation Authority board also voted to begin
discussions of subway expansion.
As a result, a panel of scientific experts was created to conduct an
independent safety review that determined that subway tunneling could
move forward safely with new technology.
Representative Waxman introduced a bill to lift the Federal tunneling
prohibition in the last Congress--where it passed the House--and again
in this Congress. Senator Feinstein and I are introducing the same bill
in the Senate.
This legislation has the support of Los Angeles Mayor Antonio
Villaraigosa and the Los Angeles Metropolitan Transportation Authority.
This bill is necessary to expand the subway, which is extremely
important in Los Angeles--a city that ranks time and time again as the
most congested region in the country. The Wilshire corridor is densely
populated and is a large commercial area. The freeways and streets are
filled--we need transit in this area.
______

By Mr. FEINGOLD (for himself and Ms. Collins):
S. 498. A bill to amend title XVIII of the Social Security Act to
improve the Medicare program for beneficiaries residing in rural areas;
to the Committee on Finance.
Mr. FEINGOLD. Mr. President, today, along with my colleague Senator
Collins from Maine, I am introducing legislation to address the needs
of the nearly one-quarter of all Medicare beneficiaries who live in
rural America. These beneficiaries are systematically disadvantaged in
the Medicare program. The beauty of Medicare is its equity, its
universality, and its accessibility. But we have compromised these
values by stratifying payments, by under-representing rural voices on
the Medicare Payment Advisory Commission, and by continuing to use
obsolete payment data that hurts rural America.
First, we must stop indexing physician payments for work based on
geographic differences. Rural areas already have a hard enough time
recruiting and retaining the Nation's top talent. Currently, even
though 25 percent of Medicare beneficiaries live in rural areas, only
10 percent of the Nation's physicians serve them. Lower payments to
doctors in these areas only perpetuate this dangerous shortage of
medical expertise. We should not be discouraging medical school
graduates from moving to underserved rural areas by continuing to offer
sub-par pay--in fact, we should be providing incentives to encourage
them to work in underserved areas. My legislation proposes a project to
help rural facilities to host educators and clinical practitioners in
clinical rotations.
Lack of dollars to rural health facilities has also prevented
communities from investing in vital information technology. The
Institute of Medicine published a report in 2005 detailing the ways in
which health IT could assist isolated communities. For example, since
rural physicians tend to be generalists rather than specialists,
virtual libraries within physician offices would provide both doctors
and patients with a wider and deeper source of information at their
fingertips. Rural residents can also be quite far from health
facilities, so technology that allows emergency room physicians to
communicate with EMS workers in an ambulance can help patients receive
life-saving treatment before they physically reach the hospital. These
kinds of technologies will improve both the quality and efficiency of
care given in rural areas. My legislation offers funding for

[[Page S1639]]

quality improvement demonstration projects, to allow isolated
communities to invest in this otherwise out of reach technology.
Lastly, this legislation will end the disproportionately low
representation of rural interests on the Medicare Payment Advisory
Commission. This lack of representation has resulted in policies that
hurt rural communities. Those policies have hurt--and continue to
hurt--the people of my State of Wisconsin, and they hurt my colleague
Senator Collins' constituents as well. For every dollar that Medicare
spends on the average beneficiary in the average State in this country,
Medicare spends only 82 cents on a beneficiary in Wisconsin. In Maine,
Medicare spends only 80 cents per dollar it spends on the average
beneficiary.
How is this the case, if beneficiaries in Wisconsin and in Maine pay
the same payroll taxes as beneficiaries in other States? Because the
distribution of Medicare dollars among the 50 States is grossly unfair
to Wisconsin, and to much of the Upper Midwest. Wisconsinites pay
payroll taxes just like every American taxpayer, but the Medicare funds
we get in return are lower than those received in many other States.
With the guidance and support of people across my State who are
fighting for Medicare fairness, I am introducing this legislation to
address Medicare's discrimination against Wisconsin's seniors and
health care providers. My bill will decrease some of the inequitable
payments that harm rural areas. It will provide rural areas the help
they need to grow crucial health information technology infrastructure.
It will offer the necessary incentives to help attract the Nation's top
medical talent to underserved rural areas. And it will mandate rural
representation on the Medicare Payment Advisory Commission. Rural
seniors are already underserved in their communities; they should not
be underrepresented in Washington as well.
Rural Americans have worked hard and paid into the Medicare program
all their lives. In return, they deserve full access to the same
benefits as seniors throughout the country: their choice of highly
skilled physicians, use of the latest technologies, and a strong voice
representing their needs in Medicare policy.
I ask unanimous consent that the text of my 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. 498

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Rural
Medicare Equity Act of 2007''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Elimination of geographic physician work adjustment factor from
geographic indices used to adjust payments under the
physician fee schedule.
Sec. 3. Clinical rotation demonstration project.
Sec. 4. Medicare rural health care quality improvement demonstration
projects.
Sec. 5. Ensuring proportional representation of interests of rural
areas on the Medicare Payment Advisory Commission.
Sec. 6. Implementation of GAO recommendations regarding geographic
adjustment indices under the Medicare physician fee
schedule.

SEC. 2. ELIMINATION OF GEOGRAPHIC PHYSICIAN WORK ADJUSTMENT
FACTOR FROM GEOGRAPHIC INDICES USED TO ADJUST
PAYMENTS UNDER THE PHYSICIAN FEE SCHEDULE.

(a) Findings.--Congress finds the following:
(1) Variations in the geographic physician work adjustment
factors under section 1848(e) of the Social Security Act (42
U.S.C. 1395w-4(e)) result in inequity between localities in
payments under the Medicare physician fee schedule.
(2) Beneficiaries under the Medicare program that reside in
areas where such adjustment factors are high have relatively
more access to services that are paid based on such fee
schedule.
(3) There are a number of studies indicating that the
market for health care professionals has become nationalized
and historically low labor costs in rural and small urban
areas have disappeared.
(4) Elimination of the adjustment factors described in
paragraph (1) would equalize the reimbursement rate for
services reimbursed under the Medicare physician fee schedule
while remaining budget-neutral.
(b) Elimination.--Section 1848(e) of the Social Security
Act (42 U.S.C. 1395w-4(e)) is amended--
(1) in paragraph (1)(A)(iii), by striking ``an index'' and
inserting ``for services provided before January 1, 2008, an
index''; and
(2) in paragraph (2), by inserting ``, for services
provided before January 1, 2008,'' after ``paragraph (4)),
and''.
(c) Budget Neutrality Adjustment for Elimination of
Geographic Physician Work Adjustment Factor.--Section 1848(d)
of the Social Security Act (42 U.S.C. 1395w-4(d)), as amended
by section 101 of the Medicare Improvement and Extension Act
of 2006, is amended--
(1) in paragraph (1)(A), by striking ``The conversion'' and
inserting ``Subject to paragraph (8), the conversion''; and
(2) by adding at the end the following new paragraph:
``(8) Budget neutrality adjustment for elimination of
geographic physician work adjustment factor.--Before applying
an update for a year under this subsection, the Secretary
shall (if necessary) provide for an adjustment to the
conversion factor for that year to ensure that the aggregate
payments under this part in that year shall be equal to
aggregate payments that would have been made under such part
in that year if the amendments made by section 2(b) of the
Rural Medicare Equity Act of 2007 had not been enacted.''.

SEC. 3. CLINICAL ROTATION DEMONSTRATION PROJECT.

(a) Establishment.--Not later than 6 months after the date
of enactment of this Act, the Secretary shall establish a
demonstration project that provides for demonstration grants
designed to provide financial or other incentives to
hospitals to attract educators and clinical practitioners so
that hospitals that serve beneficiaries under the Medicare
program under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) who are residents of underserved areas
may host clinical rotations.
(b) Duration of Project.--The demonstration project shall
be conducted over a 5-year period.
(c) Waiver.--The Secretary shall waive such provisions of
titles XI and XVIII of the Social Security Act (42 U.S.C.
1301 et seq. and 1395 et seq.) as may be necessary to conduct
the demonstration project under this section.
(d) Reports.--The Secretary shall submit to the appropriate
committees of Congress interim reports on the demonstration
project and a final report on such project within 6 months
after the conclusion of the project together with
recommendations for such legislative or administrative action
as the Secretary determines appropriate.
(e) Funding.--There are appropriated to the Secretary
$20,000,000 to carry out this section.
(f) Definitions.--In this section:
(1) Hospital.--The term ``hospital'' means any subsection
(d) hospital (as defined in section 1886(d)(1)(B) of the
Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) that had
indirect or direct costs of medical education during the most
recent cost reporting period preceding the date of enactment
of this Act.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(3) Underserved area.--The term ``underserved area'' means
such medically underserved urban areas and medically
underserved rural areas as the Secretary may specify.

SEC. 4. MEDICARE RURAL HEALTH CARE QUALITY IMPROVEMENT
DEMONSTRATION PROJECTS.

(a) Establishment.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Secretary of Health and Human
Services (in this section referred to as the ``Secretary'')
shall establish not more that 10 demonstration projects to
provide for improvements, as recommended by the Institute of
Medicine, in the quality of health care provided to
individuals residing in rural areas.
(2) Activities.--Activities under the projects may include
public health surveillance, emergency room videoconferencing,
virtual libraries, telemedicine, electronic health records,
data exchange networks, and any other activities determined
appropriate by the Secretary.
(3) Consultation.--The Secretary shall consult with the
Rural Health Quality Advisory Commission, the Office of Rural
Health Policy of the Health Resources and Services
Administration, the Agency for Healthcare Research and
Quality, and the Centers for Medicare & Medicaid Services in
carrying out the provisions of this section.
(b) Duration.--Each demonstration project under this
section shall be conducted over a 4-year period.
(c) Demonstration Project Sites.--The Secretary shall
ensure that the demonstration projects under this section are
conducted at a variety of sites representing the diversity of
rural communities in the Nation.
(d) Waiver.--The Secretary shall waive such provisions of
titles XI and XVIII of the Social Security Act (42 U.S.C.
1301 et seq. and 1395 et seq.) as may be necessary to conduct
the demonstration projects under this section.
(e) Independent Evaluation.--The Secretary shall enter into
an arrangement with

[[Page S1640]]

an entity that has experience working directly with rural
health systems for the conduct of an independent evaluation
of the projects conducted under this section.
(f) Reports.--The Secretary shall submit to the appropriate
committees of Congress interim reports on each demonstration
project and a final report on such project within 6 months
after the conclusion of the project. Such reports shall
include recommendations regarding the expansion of the
project to other areas and recommendations for such other
legislative or administrative action as the Secretary
determines appropriate.
(g) Funding.--There are appropriated to the Secretary
$50,000,000 to carry out this section.

SEC. 5. ENSURING PROPORTIONAL REPRESENTATION OF INTERESTS OF
RURAL AREAS ON THE MEDICARE PAYMENT ADVISORY
COMMISSION.

(a) In General.--Section 1805(c)(2) of the Social Security
Act (42 U.S.C. 1395b-6(c)(2)) is amended--
(1) in subparagraph (A), by inserting ``consistent with
subparagraph (E)'' after ``rural representatives''; and
(2) by adding at the end the following new subparagraph:
``(E) Proportional representation of interests of rural
areas.--In order to provide a balance between urban and rural
representatives under subparagraph (A), the proportion of
members who represent the interests of health care providers
and Medicare beneficiaries located in rural areas shall be no
less than the proportion, of the total number of Medicare
beneficiaries, who reside in rural areas.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply with respect to appointments made to the Medicare
Payment Advisory Commission after the date of the enactment
of this Act.

SEC. 6. IMPLEMENTATION OF GAO RECOMMENDATIONS REGARDING
GEOGRAPHIC ADJUSTMENT INDICES UNDER THE
MEDICARE PHYSICIAN FEE SCHEDULE.

Not later than 180 days after the date of enactment of this
Act, the Secretary of Health and Human Services shall
implement the recommendations contained in the March 2005 GAO
report 05-119 entitled ``Medicare Physician Fees: Geographic
Adjustment Indices are Valid in Design, but Data and Methods
Need Refinement.''.
______

By Mr. SALAZAR (for himself, Mr. Martinez, Mr. Menendez, Mr.
Bayh, Mr. Biden, Mr. Bingaman, Mrs. Boxer, Mr. Domenici, Mr.
Durbin, Mrs. Feinstein, Mrs. Hutchison, Mr. Kennedy, Mr. Kerry,
Mr. Lautenberg, Mr. Lieberman, Mr. Lugar, Mr. McCain, Mr.
Nelson of Florida, Mr. Obama, Mr. Reid, Mr. Schumer, Mr. Brown,
Mr. Feingold, and Mrs. Clinton):
S. 500. A bill to establish the Commission to Study the Potential
Creation of the National Museum of the American Latino to develop a
plan of action for the establishment and maintenance of a National
Museum of the American Latino in Washington, DC, and for other
purposes; to the Committee on Energy and Natural Resources.
Mr. SALAZAR. Mr. President, I rise to speak about bi-partisan
legislation I am introducing today. I am proud to be joined by Senator
Mel Martinez, Senator Bob Menendez, and 20 additional Senators from
both sides of the aisle.
The National Museum of the American Latino Community Commission Act
will establish a Commission to study the potential creation of a
National Museum of the American Latino Community. The Commission
members, selected by the President and Members of Congress, will be
tasked with studying the impact of such a Museum and the cost of
constructing and maintaining a museum, developing a plan of action and
a fundraising plan, and proposing recommendations to make the Museum a
reality.
As we begin our efforts to pass this significant legislation, the
U.S. House of Representatives is set to complete their consideration of
H.R. 512, the House companion bill, and will pass the bill on the House
floor today. It has been a pleasure to working with Representative
Xavier Becerra and Representative Ileana Ros-Lehtinen, who have
championed this legislation for several years. I hope to work with the
Senate Energy and Natural Resource Committee to quickly advance the
Senate bill, so that we can, at last, move forward.
If we are successful in our efforts, I believe we will have done our
part to enhance the experience of the millions who visit our Nation's
capital every year. By passing this legislation, we will contribute to
the ongoing, deeply rewarding, and profoundly important process of
national self-discovery.
Washington, DC is the symbolic heart of our country. When Americans
travel to their capital, they expect the museums, monuments, and
national parks they visit to reflect the complete American experience.
I celebrate the opening of the National Museum of the America Indian
and efforts underway to establish the National Museum of African
American History and Culture because I believe we must celebrate our
rich, diverse national heritage.
Hispanics have long been a part of our country's history and my own
family's story illustrates this truth.
Over 400 years ago, in 1598, my family helped found the oldest city
in what is now these United States. They named the city Santa Fe--the
City of Holy Faith--because they knew the hand of God would guide them
through the struggles of survival in the ages ahead. In Hispanic
Pioneers in Colorado and New Mexico, a new book by Colorado Society of
Hispanic Genealogy, their triumph over extreme adversity is documented.
The time has come for the story of these pioneers to be told in our
Nation's capital.
As a proud American, I want to ensure that every individual who
visits Washington has a chance to learn the full history of who we are
as Americans. It is my hope that the Senate can work to pass this
important bill. In doing so, we will preserve our shared America
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 be
printed in the Record, as follows:

S. 500

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 ``Commission to Study the
Potential Creation of the National Museum of the American
Latino Act of 2007''.

SEC. 2. ESTABLISHMENT OF COMMISSION.

(a) In General.--There is established the Commission to
Study the Potential Creation of a National Museum of the
American Latino (in this Act referred to as the
``Commission'').
(b) Membership.--The Commission shall consist of 23 members
appointed not later than 6 months after the date of enactment
of this Act as follows:
(1) The President shall appoint 7 voting members.
(2) The Speaker of the House of Representatives, the
minority leader of the House of Representatives, the majority
leader of the Senate, and the minority leader of the Senate
shall each appoint 3 voting members.
(3) In addition to the members appointed under paragraph
(2), the Speaker of the House of Representatives, the
minority leader of the House of Representatives, the majority
leader of the Senate, and the minority leader of the Senate
shall each appoint 1 nonvoting member.
(c) Qualifications.--Members of the Commission shall be
chosen from among individuals, or representatives of
institutions or entities, who possess either--
(1) a demonstrated commitment to the research, study, or
promotion of American Latino life, art, history, political or
economic status, or culture, together with--
(A) expertise in museum administration;
(B) expertise in fundraising for nonprofit or cultural
institutions;
(C) experience in the study and teaching of Latino culture
and history at the post-secondary level;
(D) experience in studying the issue of the Smithsonian
Institution's representation of American Latino art, life,
history, and culture; or
(E) extensive experience in public or elected service; or
(2) experience in the administration of, or the planning
for the establishment of, museums devoted to the study and
promotion of the role of ethnic, racial, or cultural groups
in American history.

SEC. 3. FUNCTIONS OF THE COMMISSION.

(a) Plan of Action for Establishment and Maintenance of
Museum.--The Commission shall submit a report to the
President and Congress containing its recommendations with
respect to a plan of action for the establishment and
maintenance of a National Museum of the American Latino in
Washington, DC (in this Act referred to as the ``Museum'').
(b) Fundraising Plan.--The Commission shall develop a
fundraising plan for supporting the creation and maintenance
of the Museum through contributions by the American people,
and a separate plan on fundraising by the American Latino
community.
(c) Report on Issues.--The Commission shall examine (in
consultation with the Secretary of the Smithsonian
Institution), and submit a report to the President and
Congress on, the following issues:
(1) The availability and cost of collections to be acquired
and housed in the Museum.

[[Page S1641]]

(2) The impact of the Museum on regional Hispanic- and
Latino-related museums.
(3) Possible locations for the Museum in Washington, DC and
its environs, to be considered in consultation with the
National Capital Planning Commission and the Commission of
Fine Arts, the Department of the Interior and Smithsonian
Institution.
(4) Whether the Museum should be located within the
Smithsonian Institution.
(5) The governance and organizational structure from which
the Museum should operate.
(6) How to engage the American Latino community in the
development and design of the Museum.
(7) The cost of constructing, operating, and maintaining
the Museum.
(d) Legislation to Carry Out Plan of Action.--Based on the
recommendations contained in the report submitted under
subsection (a) and the report submitted under subsection (c),
the Commission shall submit for consideration to the
Committee on Transportation and Infrastructure of the House
of Representatives, the Committee on House Administration of
the House of Representatives, the Committee on Rules and
Administration of the Senate, the Committees on Natural
Resources of the House of Representatives and the Senate, and
the Committees on Appropriations of the House of
Representatives and the Senate recommendations for a
legislative plan of action to create and construct the
Museum.
(e) National Conference.--In carrying out its functions
under this section, the Commission may convene a national
conference on the Museum, comprised of individuals committed
to the advancement of American Latino life, art, history, and
culture, not later than 18 months after the commission
members are selected.

SEC. 4. ADMINISTRATIVE PROVISIONS.

(a) Facilities and Support of Department of the Interior.--
The Department of the Interior shall provide from funds
appropriated for this purpose administrative services,
facilities, and funds necessary for the performance of the
Commission's functions. These funds shall be made available
prior to any meetings of the Commission.
(b) Compensation.--Each member of the Commission who is not
an officer or employee of the Federal Government may receive
compensation for each day on which the member is engaged in
the work of the Commission, at a daily rate to be determined
by the Secretary of the Interior.
(c) Travel Expenses.--Each member shall be entitled to
travel expenses, including per diem in lieu of subsistence,
in accordance with applicable provisions under subchapter I
of chapter 57 of title 5, United States Code.
(d) Federal Advisory Committee Act.--The Commission is not
subject to the provisions of the Federal Advisory Committee
Act.

SEC. 5. DEADLINE FOR SUBMISSION OF REPORTS; TERMINATION.

(a) Deadline.--The Commission shall submit final versions
of the reports and plans required under section 3 not later
than 24 months after the date of the Commission's first
meeting.
(b) Termination.--The Commission shall terminate not later
than 30 days after submitting the final versions of reports
and plans pursuant to subsection (a).

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated for carrying out
the activities of the Commission $2,100,000 for the first
fiscal year beginning after the date of enactment of this Act
and $1,100,000 for the second fiscal year beginning after the
date of enactment of this Act.
______

By Mr. SMITH:
S. 504. A bill to amend the Internal Revenue Code of 1986 to
establish long-term care trust accounts and allow a refundable tax
credit for contributions to such accounts, and for other purposes; to
the Committee on Finance.
Mr. SMITH. Mr. President, I rise today to introduce the Long-Term
Care Trust Account Act of 2007. I am pleased to be joined by my
colleague Senator Blanche Lincoln who has been a tireless leader on
issues of importance to the health of our Nation. I look forward to
continuing to work with Senator Lincoln on this legislation as well as
other opportunities to improve health care in America.
We are an aging Nation. With babyboomers rapidly retiring, the need
for long-term care planning is becoming even more critical. However, we
know all too well that planning for the likelihood of disability in
young or old age is not done as actively as we would like it to be.
Currently, only about 7 percent of all money spent on long-term care
comes from private insurance. Too often, insurance is not being
purchased, funds are not being saved and persons with disabilities are
forced to rely on Medicaid for their daily care.
As a Nation, we need to do better. Senator Lincoln and I believe that
our bill will encourage Americans to invest in their futures and in
their care, which is an important first step.
Specifically, our legislation will create a new type of savings
mechanism for the purpose of preparing for the costs associated with
long-term care services and purchasing long-term care insurance. An
individual who establishes a long-term care trust account can
contribute up to $5,000 per year to their account and receive a
refundable 10 percent tax credit on that contribution. Interest accrued
on these accounts will be tax free, and funds could be withdrawn for
the purchase of long-term care insurance or to pay for long-term care
services. Our bill also will allow an individual to make contributions
to another person's Long-Term Care Trust Account. This will allow
relatives to help their parents or a loved one prepare for their future
health care needs.
The Centers for Medicare and Medicaid Services estimates that
national spending for long-term care was more than $190 billion in
2004, representing about 12.5 percent of all personal health care
expenditures. While those numbers already are staggering, we also know
that the need for long-term care is expected to grow significantly in
coming decades. Almost two-thirds of people receiving long-term care
are over age 65, with this number expected to double by 2030. We also
know that the population over age 85, those most likely to need long-
term services and supports, is expected to increase more than 250
percent by 2040 from 4.3 million to 15.4 million.
Today, millions of Americans are receiving or are in need of long-
term care services and supports. Surprisingly, more than 40 percent of
persons receiving long-term care are between the ages of 18 and 64.
Some were born with disabilities; others came to be disabled through
accident or illness. No one can predict their long-term health care
needs. Therefore, everyone needs to be prepared.
Currently, long-term care insurance is the main way to prepare for
possible future care and support needs. Long-term care insurance helps
protect assets and income from the devastating financial consequences
of long-term health care costs. Today's comprehensive long-term care
insurance policies allow consumers to choose from a variety of benefits
and offer a wide range of coverage choices. They allow individuals to
receive care in a variety of settings including nursing homes, home
care, assisted living facilities and adult day care. Some of the most
recent policies also provide a cash-benefit that a consumer can spend
in the manner he or she chooses. When we buy long-term care insurance,
we are also working to ensure that we can make more independent long-
term care decisions and reduce the strain on state Medicaid budgets.
Unfortunately, for too many, the struggle to pay the immediate costs
of long-term care insurance sometimes outweighs the security these
products would provide. As Americans are spending more and saving less,
I fear the American middle class is woefully unprepared to meet the
coming challenges of their long-term care needs. Moving forward in our
effort to help individuals prepare for life in their later years, we
must encourage them to purchase long-term care insurance and save for
long-term care services. The Long-Term Care Trust Account Act of 2007
is designed to achieve both goals.
It is my hope that this legislation will help all Americans save for
their future and their independence during times of vulnerability. I
urge my colleagues on both sides of the aisle to support this important
bill.
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. 504

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 ``Long-Term Care Trust Account
Act of 2007''.

SEC. 2. LONG-TERM CARE TRUST ACCOUNTS.

(a) In General.--Subchapter F of chapter 1 of the Internal
Revenue Code of 1986 (relating to exempt organizations) is
amended by adding at the end the following new part:

``PART IX--LONG-TERM CARE TRUST ACCOUNTS

``SEC. 530A. LONG-TERM CARE TRUST ACCOUNTS.

``(a) General Rule.--A Long-Term Care Trust Account shall
be exempt from taxation

[[Page S1642]]

under this subtitle. Notwithstanding the preceding sentence,
such account shall be subject to the taxes imposed by section
511 (relating to imposition of tax on unrelated business
income of charitable organizations).
``(b) Long-Term Care Trust Account.--For purposes of this
section, the term `Long-Term Care Trust Account' means a
trust created or organized in the United States for the
exclusive benefit of an individual who is the designated
beneficiary of the trust and which is designated (in such
manner as the Secretary shall prescribe) at the time of the
establishment of the trust as a Long-Term Care Trust Account,
but only if the written governing instrument creating the
trust meets the following requirements:
``(1) Except in the case of a qualified rollover
contribution described in subsection (d)--
``(A) no contribution will be accepted unless it is in
cash, and
``(B) contributions will not be accepted for the calendar
year in excess of the contribution limit specified in
subsection (c)(1).
``(2) The trustee is a bank (as defined in section 408(n)),
an insurance company (as defined in section 816), or another
person who demonstrates to the satisfaction of the Secretary
that the manner in which that person will administer the
trust will be consistent with the requirements of this
section or who has so demonstrated with respect to any
individual retirement plan.
``(3) No part of the trust assets will be invested in life
insurance contracts.
``(4) The interest of an individual in the balance of his
account is nonforfeitable.
``(5) The assets of the trust shall not be commingled with
other property except in a common trust fund or common
investment fund.
``(6) Except as provided in subsection (e)(2), no
distribution will be allowed if at the time of such
distribution the designated beneficiary is not a chronically
ill individual (as defined in section 7702B(c)(2)).
``(c) Tax Treatment of Contributions.--
``(1) Contribution limit.--
``(A) In general.--The aggregate amount of contributions
(other than qualified rollover contributions described in
subsection (d)) for any taxable year to all Long-Term Care
Trust Accounts maintained for the benefit of the designated
beneficiary shall not exceed $5,000.
``(B) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2007, the dollar
amount under subparagraph (A) shall be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the medical care cost adjustment determined under
section 213(d)(10)(B)(ii) for the calendar year in which the
taxable year begins, determined by substituting `2006' for
`1996' in subclause (II) thereof.

If any amount as adjusted under the preceding sentence is not
a multiple of $10, such amount shall be rounded to the next
lowest multiple of $10.
``(2) Gift tax treatment of contributions.--For purposes of
chapters 12 and 13--
``(A) In general.--Any contribution to a Long-Term Care
Trust Account on behalf of any designated beneficiary--
``(i) shall be treated as a completed gift to such
beneficiary which is not a future interest in property, and
``(ii) shall not be treated as a qualified transfer under
section 2503(e).
``(B) Treatment of excess contributions.--If the aggregate
amount of contributions described in subparagraph (A) during
the calendar year by a donor exceeds the limitation for such
year under section 2503(b), such aggregate amount shall, at
the election of the donor, be taken into account for purposes
of such section ratably over the 5-year period beginning with
such calendar year.
``(d) Qualified Rollover Contribution.--For purposes of
this section, the term `qualified rollover contribution'
means a contribution to a Long-Term Care Trust Account--
``(1) from another such account of the same beneficiary,
but only if such amount is contributed not later than the
60th day after the distribution from such other account, and
``(2) from a Long-Term Care Trust Account of a spouse of
the beneficiary of the account to which the contribution is
made, but only if such amount is contributed not later than
the 60th day after the distribution from such other account.
``(e) Tax Treatment of Distributions.--
``(1) In general.--Any distribution from a Long-Term Care
Trust Account shall be includible in the gross income of the
distributee in the manner as provided under section 72 to the
extent not excluded from gross income under any other
provision of this subsection.
``(2) Long-term care insurance premiums.--If at the time of
any distribution, the designated beneficiary is not a
chronically ill individual (as defined in section
7702B(c)(2)), no amount shall be includible in gross income
under paragraph (1) if the aggregate premiums for any
qualified long-term care insurance contract for such
beneficiary during the taxable year are not less than the
aggregate distributions during the taxable year.
``(3) Distributions for qualified long-term care
services.--For purposes of this subsection, if at the time of
any distribution, the designated beneficiary is a chronically
ill individual (as so defined)--
``(A) In-kind distributions.--No amount shall be includible
in gross income under paragraph (1) by reason of a
distribution which consists of providing a benefit to the
distributee which, if paid for by the distributee, would
constitute expenses for any qualified long-term care services
(as defined in section 7702B(c)).
``(B) Cash distributions.--In the case of distributions not
described in subparagraph (A), if--
``(i) such distributions do not exceed the expenses for
qualified long-term care services (as so defined), reduced by
expenses described in subparagraph (A), no amount shall be
includible in gross income, and
``(ii) in any other case, the amount otherwise includible
in gross income shall be reduced by an amount which bears the
same ratio to such amount as such expenses bear to such
distributions.
``(4) Change in beneficiaries or accounts.--Paragraph (1)
shall not apply to that portion of any distribution which,
within 60 days of such distribution, is transferred--
``(A) to another Long-Term Care Trust Account for the
benefit of the designated beneficiary, or
``(B) to the credit of another designated beneficiary under
a Long-Term Care Trust Account who is a spouse of the
designated beneficiary with respect to which the distribution
was made.
``(5) Operating rules.--For purposes of applying section
72--
``(A) to the extent provided by the Secretary, all Long-
Term Care Trust Accounts of which an individual is a
designated beneficiary shall be treated as one account,
``(B) except to the extent provided by the Secretary, all
distributions during a taxable year shall be treated as one
distribution, and
``(C) except to the extent provided by the Secretary, the
value of the contract, income on the contract, and investment
in the contract shall be computed as of the close of the
calendar year in which the taxable year begins.
``(6) Special rules for death and divorce.--
``(A) In general.--Rules similar to the rules of paragraphs
(7) and (8) of section 220(f) shall apply.
``(B) Amounts includible in estate of donor making excess
contributions.--In the case of a donor who makes the election
described in subsection (c)(2)(B) and who dies before the
close of the 5-year period referred to in such subsection,
the gross estate of the donor shall include the portion of
such contributions properly allocable to periods after the
date of death of the donor.
``(7) Additional tax.--The tax imposed by this chapter for
any taxable year on any taxpayer who receives a payment or
distribution from a Long-Term Care Trust Account which is
includible in gross income shall be increased by 25 percent
of the amount which is so includible under rules similar to
the rules of section 530(d)(4).
``(8) Denial of double benefit.--For purposes of
determining the amount of any deduction under this chapter,
any payment or distribution out of a Long-Term Care Trust
Account shall not be treated as an expense paid for medical
care.
``(f) Designated Beneficiary.--For purposes of this
section, the term `designated beneficiary' means the
individual designated at the commencement of participation in
the Long-Term Care Trust Account as the beneficiary of
amounts paid (or to be paid) to the account.
``(g) Loss of Taxation Exemption of Account Where
Beneficiary Engages in Prohibited Transaction.--Rules similar
to the rules of paragraph (2) of section 408(e) shall apply
to any Long-Term Care Trust Account.
``(h) Custodial Accounts.--For purposes of this section, a
custodial account or an annuity contract issued by an
insurance company qualified to do business in a State shall
be treated as a trust under this section if--
``(1) the custodial account or annuity contract would,
except for the fact that it is not a trust, constitute a
trust which meets the requirements of subsection (b), and
``(2) in the case of a custodial account, the assets of
such account are held by a bank (as defined in section
408(n)) or another person who demonstrates, to the
satisfaction of the Secretary, that the manner in which he
will administer the account will be consistent with the
requirements of this section.

For purposes of this title, in the case of a custodial
account or annuity contract treated as a trust by reason of
the preceding sentence, the person holding the assets of such
account or holding such annuity contract shall be treated as
the trustee thereof.
``(i) Reports.--The trustee of a Long-Term Care Trust
Account shall make such reports regarding such account to the
Secretary and to the beneficiary of the account with respect
to contributions, distributions, and such other matters as
the Secretary may require. The reports required by this
subsection shall be filed at such time and in such manner and
furnished to such individuals at such time and in such manner
as may be required.''.
(b) Tax on Excess Contributions.--
(1) In general.--Subsection (a) of section 4973 of the
Internal Revenue Code of 1986 (relating to tax on excess
contributions to certain tax-favored accounts and annuities)
is amended by striking ``or'' at the end of paragraph (4), by
inserting ``or'' at the end of paragraph (5), and by
inserting after paragraph (5) the following new paragraph:
``(6) a Long-Term Care Trust Account (as defined in section
530A),''.

[[Page S1643]]

(2) Excess contribution.--Section 4973 of such Code is
amended by adding at the end the following new subsection:
``(h) Excess Contributions to Long-Term Care Trust
Accounts.--For purposes of this section--
``(1) In general.--In the case of Long-Term Care Trust
Accounts (within the meaning of section 530A), the term
`excess contributions' means the sum of--
``(A) the amount by which the amount contributed for the
calendar year to such accounts (other than qualified rollover
contributions (as defined in section 530A(d))) exceeds the
contribution limit under section 530A(c)(1), and
``(B) the amount determined under this subsection for the
preceding calendar year, reduced by the excess (if any) of
the maximum amount allowable as a contribution under section
530A(c)(1) for the calendar year over the amount contributed
to the accounts for the calendar year.
``(2) Special rule.--A contribution shall not be taken into
account under paragraph (1) if such contribution (together
with the amount of net income attributable to such
contribution) is returned to the beneficiary before June 1 of
the year following the year in which the contribution is
made.''.
(c) Failure To Provide Reports on Long-Term Care Trust
Accounts.--Paragraph (2) of section 6693(a) of the Internal
Revenue Code of 1986 (relating to failure to provide reports
on individual retirement accounts or annuities) is amended by
striking ``and'' at the end of subparagraph (D), by striking
the period at the end of subparagraph (E) and inserting ``,
and'', and by inserting after subparagraph (E) the following
new subparagraph:
``(F) section 530A(i) (relating to Long-Term Care Trust
Accounts).''.
(d) Conforming Amendment.--The table of parts for
subchapter F of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:

``Part IX. Long-Term Care Trust Accounts''.

(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 3. REFUNDABLE CREDIT FOR CONTRIBUTIONS TO LONG-TERM CARE
TRUST ACCOUNTS.

(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by inserting after section 35
the following new section:

``SEC. 35A. CONTRIBUTIONS TO LONG-TERM CARE TRUST ACCOUNTS.

``(a) General Rule.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
subtitle for the taxable year an amount equal to 10 percent
of the contributions to any Long-Term Care Trust Account
allowed under section 530A for such taxable year.
``(b) Reduction Based on Adjusted Gross Income.--
``(1) In general.--The percentage which would (but for this
subsection) be taken into account under subsection (a) for
the taxable year shall be reduced (but not below zero) by the
percentage determined under paragraph (2).
``(2) Amount of reduction.--The percentage determined under
this paragraph is the percentage which bears the same ratio
to the percentage which would be so taken into account as--
``(A) the excess of--
``(i) the taxpayer's adjusted gross income for such taxable
year, over
``(ii) $95,000 ($190,000 in the case of a joint return),
bears to
``(B) $10,000 ($20,000 in the case of a joint return).
``(3) Adjusted gross income.--For purposes of this
subsection, adjusted gross income shall be determined without
regard to sections 911, 931, and 933.
``(c) Denial of Double Benefit.--No deduction shall be
allowed under this chapter for any amount taken into account
in determining the credit under this section.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 35A of such Code''.
(2) The table of sections of subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 35 the following new item:

``Sec. 35A. Contributions to Long-Term Care Trust Accounts.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2005.
______

By Ms. COLLINS (for herself, Mr. Warner, Ms. Landrieu, Mr.
Coleman, Mr. Vitter, Mr. Smith, and Mr. Nelson of Nebraska).
S. 505. A bill to amend the Internal Revenue Code of 1986 to increase
the above-the-line deduction for teacher classroom supplies and to
expand such deduction to include qualified professional development
expenses; to the Committee on Finance.
Ms. COLLINS. Mr. President, the bill that I am introducing today,
along with Senators Warner, Landrieu, Vitter, Coleman, Smith, and
Nelson of Nebraska, would increase and expand the Teacher Tax deduction
provided in current law. The Teacher Tax deduction is available to
school teachers and other educators who incur out-of-pocket expenses in
order to purchase classroom supplies for their students. The bill we
are offering today would increase this above-the-line tax deduction to
$400, allow the deduction to be taken for expenses related to
professional development, and make the deduction permanent.
This bill builds upon a $250 tax deduction in current law authored by
Senator Warner and myself, which became law as part of the tax relief
package in 2001. This tax relief was later extended through the end of
this year, but we need to act to extend it further.
I would suggest that there is no reason why we should not make the
deduction permanent. Teachers who buy classroom supplies in order to
improve the educational experience of their students deserve more than
just our gratitude. They deserve this modest tax relief to thank them
for their hard work.
So often teachers in my State, and throughout the country, spend
their own money in order to improve the classroom experiences of their
students. Many of us are familiar with a survey of the National
Education Association that found that teachers spend, on average, $443
a year on classroom supplies. Other surveys show that they are spending
even more than that. In fact, the National School Supply and Equipment
Association found that educators spend an average of $826 to supplement
classroom supplies, plus $926 for instructional materials on top of
that--for a total of over $1,700 out of their own pockets.
In most States, including mine, teachers are very modestly paid for
their jobs. I think it is so impressive that despite challenging jobs
and modest salaries, teachers are willing to dig deep into their own
pockets to enrich the classroom experience, because they care so deeply
for their students.

Indeed, I have spoken to dozens of teachers in Maine who tell me they
routinely spend far in excess of the $250 deduction limit that is in
current law. I have made a practice of visiting schools all over Maine,
and so far, I have had the opportunity to visit more than 160 schools
in my State. At virtually every school I visit, I find teachers who are
spending their own money to benefit their students. Year after year,
these teachers spend hundreds of dollars on books, bulletin boards,
computer software, crayons, construction paper, stamps, inkpads--
everything you can think of. Let me just give you a couple of examples.
Anita Hopkins and Kathi Toothaker, who are elementary school teachers
from Augusta, ME, purchase books for their students to have as a
classroom library, as well as workbooks and sight cards. They have also
purchased special prizes for positive reinforcement for their students.
Mrs. Hopkins estimates that she spends $800 to $1,000 of her own money
on extra materials to make learning fun and to create a stimulating
classroom environment.
This bill would also expand the Teacher Tax deduction to make it
available to teachers who incur expenses for professional development.
Whenever the provisions of ``No Child Left Behind'' are being debated,
we hear a lot of discussion about the need for highly-qualified
teachers. One of the best ways for teachers to improve their
qualifications is through professional development. Yet, in towns in my
State, and I suspect throughout the country, school budgets are often
very tight, and money for professional development is either very
limited or non-existent. For that reason, I believe we should allow
this tax deduction to also apply when a teacher takes a course or
attends a workshop and has to pay for it out of his or her own pocket.
In my view, students are the ultimate beneficiaries when teachers
receive professional development to sharpen their skills or to learn a
new approach to presenting material to their students. Studies have
consistently shown that, other than involved parents, the single
greatest determinant of classroom success is the presence of a well-
qualified teacher. Educators themselves understand just how important
professional development is to their ability to make a positive impact
in the classroom.

[[Page S1644]]

The Teacher Tax relief that we have made available since 2001 is
certainly a positive step, and I was proud to have authored that law,
along with Senator Warner. This bill would increase that deduction from
$250 to $400, reflecting more accurately what teachers really spend,
and would make the deduction permanent. The National Education
Association has endorsed this bill, and I ask unanimous consent that a
copy of the NEA's letter be printed in the Record at the end of my
statement.
This bill is a small but appropriate means of recognizing the many
sacrifices that our teachers make every day to benefit the children of
America. I urge my colleagues to support it.
There being no objection, the letter was ordered to be printed in the
Record, as follows:

National Education Association,

Washington, DC, January 24, 2007.
Senator Susan Collins,
Senator John Warner,
U.S. Senate,
Washington, DC.
Dear Senators Collins and Warner: On behalf of the National
Education Association's, NEA, 3.2 million members, we would
like to express our strong support for your legislation that
would increase, expand, and make permanent the tax deduction
for educators' out-of-pocket classroom supply expenses. We
thank you for your continued leadership and advocacy on this
important issue.
As you know, the educator tax deduction helps recognize the
financial sacrifices made by teachers and paraprofessionals,
who often reach into their own pockets to purchase classroom
supplies such as books, pencils, paper, and art supplies.
Studies show that teachers are spending more of their own
funds each year to supply their classrooms, including
purchasing essential items such as pencils, glue, scissors,
and facial tissues. For example, NEA's 2003 report Status of
the American Public School Teacher, 2000-2001 found that
teachers spent an average of $443 a year on classroom
supplies. More recently, the National School Supply and
Equipment Association found that in 2005-2006, educators
spent out of their own pockets an average of $826.00 for
supplies and an additional $926 for instructional materials,
for a total of $1,752.
By increasing the current deduction and making it
permanent, your legislation will make a real difference for
many educators, who often must sacrifice other personal needs
in order to pay for classroom supplies.
NEA also strongly supports your proposal to extend the tax
deduction to cover out-of-pocket professional development
expenses. Teacher quality is the single most critical factor
in maximizing student achievement. Ongoing professional
development is essential to ensure that educators stay up-to-
date on the skills and knowledge necessary to prepare
students for the challenges of the 21 st century. Your bill
will make a critical difference in helping educators access
quality training.
We thank you again for your work on this important
legislation and look forward to continuing to work with you
to support our nation's educators.
Sincerely,
Diane Shust,
Director of Government Relations.
Randall Moody,
Manager, Policy and Politics.
Mr. WARNER. Mr. President, I rise today in support, once again, of
America's teachers by joining with Senator Collins in introducing
legislation regarding the Teacher Tax Relief Act.
Senator Collins and I have worked closely for some time now in
support of legislation to provide our teachers with tax relief in
recognition of the many out-of-pocket expenses they incur as part of
their profession. In the 107th Congress, we were successful in
providing much needed tax relief for our Nation's teachers with passage
of H.R. 3090, the ``Job Creation and Worker Assistance Act of 2002.''
This legislation, which was signed into law by President Bush,
included the Collins/Warner ``Teacher Tax Relief Act of 2001''
provisions that provided a $250 above the line deduction for educators
who incur out-of-pocket expenses for supplies they bring into the
classroom to better the education of their students. These important
provisions provided almost half a billion dollars worth of tax relief
to teachers all across America in 2002 and 2003.
In the 108th Congress we were able to successfully extend the
provisions of the Teacher Tax Relief Act for 2004 and 2005. In the
109th Congress we were able to successfully extend the provisions for
2006 and 2007.
While these provisions will provide substantial relief to America's
teachers, our work is not yet complete.
It is now estimated that the average teacher spends $826 out of their
own pocket each year on classroom materials--materials such as pens,
pencils and books. First year teachers spend even more.
Why do they do this? Simply because school budgets are not adequate
to meet the costs of education. Our teachers dip into their own pocket
to better the education of America's youth.
Moreover, in addition to spending substantial money on classroom
supplies, many teachers spend even more money out of their own pocket
on professional development. Such expenses include tuition, fees,
books, and supplies associated with courses that help our teachers
become even better instructors.
The fact is that these out-of-pocket costs place lasting financial
burdens on our teachers. This is one reason our teachers are leaving
the profession. Little wonder that our country is in the midst of a
teacher shortage.
Without a doubt the Teacher Tax Relief Act of 2001 took a step
forward in helping to alleviate the Nation's teaching shortage by
providing a $250 above the line deduction for classroom expenses.
However, it is clear that our teachers are spending much more than
$250 a year out of their own pocket to better the education of our
children.
Accordingly, Senator Collins and I have joined together to take
another step forward by introducing this legislation.
This proposed legislation will build upon current law in three ways.
The legislation will: One, increase the above-the-line deduction, as
President Bush has called for, from $250 allowed under current law to
$400; two, allow educators to include professional development costs
within that $400 deduction. Under current law, up to $250 is deductible
but only for classroom expenses; and three, make the Teacher Tax Relief
provisions in the law permanent. Current law sunsets the Collins/Warner
provisions after 2007.
Our teachers have made a personal commitment to educate the next
generation and to strengthen America. And, in my view, the Federal
Government should recognize the many sacrifices our teachers make in
their career.
This Teacher Tax Relief Act is another step forward in providing our
educators with the recognition they deserve.
______

By Mr. LAUTENBERG (for himself, Ms. Snowe, and Mrs. Boxer):
S. 506. A bill to improve efficiency in the Federal Government
through the use of high-performance green buildings, and for other
purposes; to the committee on Environment and Public Works.
Mr. LAUTENBERG. Mr. President, I am pleased to be joined by my
colleagues, Senators Snowe and Boxer, to introduce the High Performance
Green Buildings Act. This legislation encourages the government to
improve the energy efficiency, indoor air quality, and environmental
impacts of our Nation's Federal buildings, and will reenergize and
focus the Federal Government's leadership and commitment on this issue.
Buildings in the United States have an enormous impact on the
environment and also on our overall energy situation. According to the
Department of Energy, buildings in the United States use almost 40
percent of the total energy consumed in this country. That figure is
expected to rise to 53 percent by 2030, meaning that over half of the
energy consumed in this country will be used by buildings alone. In
addition, buildings are the source of 35 percent of national carbon
dioxide emissions, 49 percent of sulfur dioxide emissions, and 25
percent of nitrogen oxide emissions.
However, the impact of buildings is even broader than that. Americans
spend approximately 90 percent of their time indoors and the quality of
the air they breathe can have an impact on their health, as well as
work productivity and absenteeism. The U.S. Green Buildings Council, a
national non-profit, indicates that on average, installing high
performance lighting enhances worker productivity by 6.7 percent. There
are also numerous sources of indoor air pollutants, ranging from mold
to radon, and strong building design that considers ventilation can
help to remedy these potential health problems.

[[Page S1645]]

It is important that we confront these issues, and our legislation
does just that. High Performance Green Buildings are designed with the
impact on occupants, surroundings and energy consumption in mind.
Buildings designed or renovated on these merits save money, have
healthier occupants, and have a more positive impact on their
communities.
While the initial investment cost of green buildings may be higher
than a traditional building, many of these costs are recouped over
time. For instance, the Federal government spends about $170 million
per year on the lighting of federal buildings; using new lighting
technology can reduce energy use by 50 to 75 percent. Some estimates
show that the payback time for energy efficient lighting is as little
as four months.
The High Performance Green Buildings Act focuses the Federal
Government's efforts on promoting sustainable design in federal
buildings, and realizing the economic benefits associated with reduced
energy use and increased occupant health. It creates an Office of High
Performance Green Buildings within the General Services Administration
(GSA), which manages buildings owned or leased by the Federal
Government. GSA is the largest ``landlord'' in the country the
government owns or leases nearly 500,000 buildings in the United
States, covering 3.1 billion square feet. The new Office will promote
public outreach, focus ongoing research and development, and create an
Advisory Committee consisting of Agency representatives and experts
from various sectors, to improve coordination across Federal Government
agencies and bring best practices to the Federal government.
Additionally, the High Performance Green Buildings Act provides
grants to schools, in consultation with the Environmental Protection
Agency and the Department of Education, to provide technical assistance
to address environmental and health concerns. The health of our
children is our primary concern and this legislation takes important
steps to ensure their well-being.
It is clear that having sustainable design in our buildings is smart
public policy and a wise financial investment, and this bill will allow
the Federal Government to increase its leadership role on the promotion
of green buildings. I urge my colleagues to support this bill.
I ask unanimous consent that the full 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. 506

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``High-
Performance Green Buildings Act of 2007''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

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

TITLE I--OFFICE OF HIGH-PERFORMANCE GREEN BUILDINGS

Sec. 101. Oversight.
Sec. 102. Office of High-Performance Green Buildings.
Sec. 103. Green Building Advisory Committee.
Sec. 104. Public outreach.
Sec. 105. Research and development.
Sec. 106. Budget and life-cycle costing and contracting.
Sec. 107. Authorization of appropriations.

TITLE II--HEALTHY HIGH-PERFORMANCE SCHOOLS

Sec. 201. Definition of high-performance school.
Sec. 202. Grants for healthy school environments.
Sec. 203. Model guidelines for siting of school facilities.
Sec. 204. Public outreach.
Sec. 205. Environmental health program.
Sec. 206. Authorization of appropriations.

TITLE III--STRENGTHENING FEDERAL LEADERSHIP

Sec. 301. Incentives.
Sec. 302. Federal procurement.
Sec. 303. Federal green building performance.

TITLE IV--DEMONSTRATION PROJECT

Sec. 401. Coordination of goals.
Sec. 402. Authorization of appropriations.

SEC. 2. DEFINITIONS.

In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Committee.--The term ``Committee'' means the Green
Building Advisory Committee established under section 103(a).
(3) Director.--The term ``Director'' means the individual
appointed to the position established under section 101(a).
(4) Federal facility.--
(A) In general.--The term ``Federal facility'' means any
building or facility the intended use of which requires the
building or facility to be--
(i) accessible to the public; and
(ii) constructed or altered by or on behalf of the United
States.
(B) Exclusions.--The term ``Federal facility'' does not
include a privately-owned residential or commercial structure
that is not leased by the Federal Government.
(5) High-performance green building.--The term ``high-
performance green building'' means a building--
(A) that, during its life-cycle--
(i) reduces energy, water, and material resource use and
the generation of waste;
(ii) improves indoor environmental quality, including
protecting indoor air quality during construction, using low-
emitting materials, improving thermal comfort, and improving
lighting and acoustic environments that affect occupant
health and productivity;
(iii) improves indoor and outdoor impacts of the building
on human health and the environment;
(iv) increases the use of environmentally preferable
products, including biobased, recycled content, and nontoxic
products with lower life-cycle impacts;
(v) increases reuse and recycling opportunities; and
(vi) integrates systems in the building; and
(B) for which, during its planning, design, and
construction, the environmental and energy impacts of
building location and site design are considered.
(6) Life cycle.--The term ``life cycle'', with respect to a
high-performance green building, means all stages of the
useful life of the building (including components, equipment,
systems, and controls of the building) beginning at
conception of a green building project and continuing through
site selection, design, construction, landscaping,
commissioning, operation, maintenance, renovation,
deconstruction or demolition, removal, and recycling of the
green building.
(7) Life-cycle assessment.--The term ``life-cycle
assessment'' means a comprehensive system approach for
measuring the environmental performance of a product or
service over the life of the product or service, beginning at
raw materials acquisition and continuing through
manufacturing, transportation, installation, use, reuse, and
end-of-life waste management.
(8) Life-cycle costing.--The term ``life-cycle costing'',
with respect to a high-performance green building, means a
technique of economic evaluation that--
(A) sums, over a given study period, the costs of initial
investment (less resale value), replacements, operations
(including energy use), and maintenance and repair of an
investment decision; and
(B) is expressed--
(i) in present value terms, in the case of a study period
equivalent to the longest useful life of the building,
determined by taking into consideration the typical life of
such a building in the area in which the building is to be
located; or
(ii) in annual value terms, in the case of any other study
period.
(9) Office.--The term ``Office'' means the Office of High-
Performance Green Buildings established under section 102(a).

TITLE I--OFFICE OF HIGH-PERFORMANCE GREEN BUILDINGS

SEC. 101. OVERSIGHT.

(a) In General.--The Administrator shall establish within
the General Services Administration, and appoint an
individual to serve as Director in, a position in the career-
reserved Senior Executive service, to--
(1) establish and manage the Office in accordance with
section 102; and
(2) carry out other duties as required under this Act.
(b) Compensation.--The compensation of the Director shall
not exceed the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United
States Code, including any applicable locality-based
comparability payment that may be authorized under section
5304(h)(2)(C) of that title.

SEC. 102. OFFICE OF HIGH-PERFORMANCE GREEN BUILDINGS.

(a) Establishment.--The Director shall establish within the
General Services Administration an Office of High-Performance
Green Buildings.
(b) Duties.--The Director shall--
(1) ensure full coordination of high-performance green
building information and activities within the General
Services Administration and all relevant Federal agencies,
including, at a minimum--
(A) the Environmental Protection Agency;
(B) the Office of the Federal Environmental Executive;
(C) the Office of Federal Procurement Policy;
(D) the Department of Energy;
(E) the Department of Health and Human Services;
(F) the Department of Defense; and
(G) such other Federal agencies as the Director considers
to be appropriate;
(2) establish a senior-level green building advisory
committee, which shall provide advice and recommendations in
accordance with section 103;

[[Page S1646]]

(3) identify and biennially reassess improved or higher
rating standards recommended by the Committee;
(4) establish a national high-performance green building
clearinghouse in accordance with section 104, which shall
provide green building information through--
(A) outreach;
(B) education; and
(C) the provision of technical assistance;
(5) ensure full coordination of research and development
information relating to high-performance green building
initiatives under section 105;
(6) identify and develop green building standards that
could be used for all types of Federal facilities in
accordance with section 105;
(7) establish green practices that can be used throughout
the life of a Federal facility;
(8) review and analyze current Federal budget practices and
life-cycle costing issues, and make recommendations to
Congress, in accordance with section 106; and
(9) complete and submit the report described in subsection
(c).
(c) Report.--Not later than 2 years after the date of
enactment of this Act, and biennially thereafter, the
Director shall submit to Congress a report that--
(1) describes the status of the green building initiatives
under this Act and other Federal programs in effect as of the
date of the report, including--
(A) the extent to which the programs are being carried out
in accordance with this Act; and
(B) the status of funding requests and appropriations for
those programs;
(2) identifies within the planning, budgeting, and
construction process all types of Federal facility procedures
that inhibit new and existing Federal facilities from
becoming high-performance green buildings as measured by--
(A) a silver rating, as defined by the Leadership in Energy
and Environmental Design Building Rating System standard
established by the United States Green Building Council (or
an equivalent rating obtained through a comparable system);
or
(B) an improved or higher rating standard, as identified by
the Committee;
(3) identifies inconsistencies, as reported to the
Committee, in Federal law with respect to product acquisition
guidelines and high-performance product guidelines;
(4) recommends language for uniform standards for use by
Federal agencies in environmentally responsible acquisition;
(5) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(A) restructuring of budgets to require the use of complete
energy- and environmental-cost accounting;
(B) using operations expenditures in budget-related
decisions while simultaneously incorporating productivity and
health measures (as those measures can be quantified by the
Office, with the assistance of universities and national
laboratories);
(C) permitting Federal agencies to retain all identified
savings accrued as a result of the use of life cycle costing;
and
(D) identifying short- and long-term cost savings that
accrue from high-performance green buildings, including those
relating to health and productivity;
(6) identifies green, self-sustaining technologies to
address the operational needs of Federal facilities in times
of national security emergencies, natural disasters, or other
dire emergencies;
(7) summarizes and highlights development, at the State and
local level, of green building initiatives, including
Executive orders, policies, or laws adopted promoting green
building (including the status of implementation of those
initiatives); and
(8) includes, for the 2-year period covered by the report,
recommendations to address each of the matters, and a plan
for implementation of each recommendation, described in
paragraphs (1) through (6).
(d) Implementation.--The Office shall carry out each plan
for implementation of recommendations under subsection
(c)(7).

SEC. 103. GREEN BUILDING ADVISORY COMMITTEE.

(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Director shall establish an
advisory committee, to be known as the ``Green Building
Advisory Committee''.
(b) Membership.--
(1) In general.--The Committee shall be composed of
representatives of, at a minimum--
(A) each agency referred to in section 102(b)(1); and
(B) other relevant agencies and entities, as determined by
the Director, including at least 1 representative of each
of--
(i) State and local governmental green building programs;
(ii) independent green building associations or councils;
(iii) building experts, including architects, material
suppliers, and construction contractors;
(iv) security advisors focusing on national security needs,
natural disasters, and other dire emergency situations; and
(v) environmental health experts, including those with
experience in children's health.
(2) Non-federal members.--The total number of non-Federal
members on the Committee at any time shall not exceed 15.
(c) Meetings.--The Director shall establish a regular
schedule of meetings for the Committee.
(d) Duties.--The Committee shall provide advice and
expertise for use by the Director in carrying out the duties
under this Act, including such recommendations relating to
Federal activities carried out under sections 104 through 106
as are agreed to by a majority of the members of the
Committee.
(e) FACA Exemption.--The Committee shall not be subject to
section 14 of the Federal Advisory Committee Act (5 U.S.C.
App.).

SEC. 104. PUBLIC OUTREACH.

The Director, in coordination with the Committee, shall
carry out public outreach to inform individuals and entities
of the information and services available Government-wide
by--
(1) establishing and maintaining a national high-
performance green building clearinghouse, including on the
Internet, that--
(A) identifies existing similar efforts and coordinates
activities of common interest; and
(B) provides information relating to high-performance green
buildings, including hyperlinks to Internet sites that
describe related activities, information, and resources of--
(i) the Federal Government;
(ii) State and local governments;
(iii) the private sector (including nongovernmental and
nonprofit entities and organizations); and
(iv) other relevant organizations, including those from
other countries;
(2) identifying and recommending educational resources for
implementing high-performance green building practices,
including security and emergency benefits and practices;
(3) providing access to technical assistance on using tools
and resources to make more cost-effective, energy-efficient,
health-protective, and environmentally beneficial decisions
for constructing high-performance green buildings, including
tools available to conduct life-cycle costing and life-cycle
assessment;
(4) providing information on application processes for
certifying a high-performance green building, including
certification and commissioning;
(5) providing technical information, market research, or
other forms of assistance or advice that would be useful in
planning and constructing high-performance green buildings;
and
(6) using such other methods as are determined by the
Director to be appropriate.

SEC. 105. RESEARCH AND DEVELOPMENT.

(a) Establishment.--The Director, in coordination with the
Committee, shall--
(1)(A) survey existing research and studies relating to
high-performance green buildings; and
(B) coordinate activities of common interest;
(2) develop and recommend a high-performance green building
research plan that--
(A) identifies information and research needs, including
the relationships between human health, occupant
productivity, and each of--
(i) emissions from materials and products in the building;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating, cooling, and system control choices and
technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest control activities;
(vii) acoustics; and
(viii) other issues relating to the health, comfort,
productivity, and performance of occupants of the building;
and
(B) promotes the development and dissemination of high-
performance green building measurement tools that, at a
minimum, may be used--
(i) to monitor and assess the life-cycle performance of
facilities (including demonstration projects) built as high-
performance green buildings; and
(ii) to perform life-cycle assessments;
(3) assist the budget and life-cycle costing functions of
the Office under section 106;
(4) study and identify potential benefits of green
buildings relating to security, natural disaster, and
emergency needs of the Federal Government; and
(5) support other research initiatives determined by the
Office.
(b) Indoor Air Quality.--The Director, in consultation with
the Committee, shall develop and carry out a comprehensive
indoor air quality program for all Federal facilities to
ensure the safety of Federal workers and facility occupants--
(1) during new construction and renovation of facilities;
and
(2) in existing facilities.

SEC. 106. BUDGET AND LIFE-CYCLE COSTING AND CONTRACTING.

(a) Establishment.--The Director, in coordination with the
Committee, shall--
(1) identify, review, and analyze current budget and
contracting practices that affect achievement of high-
performance green buildings, including the identification of
barriers to green building life-cycle costing and budgetary
issues;
(2) develop guidance and conduct training sessions with
budget specialists and contracting personnel from Federal
agencies and budget examiners to apply life-cycle cost
criteria to actual projects;
(3) identify tools to aid life-cycle cost decisionmaking;
and

[[Page S1647]]

(4) explore the feasibility of incorporating the benefits
of green buildings, such as security benefits, into a cost-
budget analysis to aid in life-cycle costing for budget and
decision making processes.

SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this
title $4,000,000 for each of fiscal years 2008 through 2012,
to remain available until expended.

TITLE II--HEALTHY HIGH-PERFORMANCE SCHOOLS

SEC. 201. DEFINITION OF HIGH-PERFORMANCE SCHOOL.

In this title, the term ``high-performance school'' has the
meaning given the term ``healthy, high-performance school
building'' in section 5586 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7277e).

SEC. 202. GRANTS FOR HEALTHY SCHOOL ENVIRONMENTS.

The Administrator of the Environmental Protection Agency,
in consultation with the Secretary of Education, may provide
grants to qualified State agencies for use in--
(1) providing technical assistance for programs of the
Environmental Protection Agency (including the Tools for
Schools Program and the Healthy School Environmental
Assessment Tool) to schools for use in addressing
environmental issues; and
(2) development of State school environmental quality plans
that include--
(A) standards for school building design, construction, and
renovation; and
(B) identification of ongoing school building environmental
problems in the State and recommended solutions to address
those problems, including assessment of information on the
exposure of children to environmental hazards in school
facilities.

SEC. 203. MODEL GUIDELINES FOR SITING OF SCHOOL FACILITIES.

The Administrator of the Environmental Protection Agency,
in consultation with the Secretary of Education and the
Secretary of Health and Human Services, shall develop school
site selection guidelines that account for--
(1) the special vulnerability of children to hazardous
substances or pollution exposures in any case in which the
potential for contamination at a potential school site
exists;
(2) modes of transportation available to students and
staff; and
(3) the potential use of a school at the site as an
emergency shelter.

SEC. 204. PUBLIC OUTREACH.

(a) In General.--The Administrator of the Environmental
Protection Agency shall provide to the Director information
relating to all activities carried out under this title,
which the Director shall include in the report described in
section 102(c).
(b) Public Outreach.--The Director shall ensure, to the
maximum extent practicable, that the public clearinghouse
established under section 104 receives and makes available
information on the exposure of children to environmental
hazards in school facilities, as provided by the
Administrator of the Environmental Protection Agency.

SEC. 205. ENVIRONMENTAL HEALTH PROGRAM.

(a) In General.--The Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Education, the Secretary of Health and Human Services, and
other relevant agencies, shall issue guidelines for use by
the State in developing and implementing an environmental
health program for schools that--
(1) takes into account the status and findings of Federal
research initiatives established under this Act and other
relevant Federal law with respect to school facilities,
including relevant updates on trends in the field, such as
the impact of school facility environments on student and
staff--
(A) health, safety, and productivity; and
(B) disabilities or special needs;
(2) provides research using relevant tools identified or
developed in accordance with section 105(a) to quantify the
relationships between--
(A) human health, occupant productivity, and student
performance; and
(B) with respect to school facilities, each of--
(i) pollutant emissions from materials and products;
(ii) natural day lighting;
(iii) ventilation choices and technologies;
(iv) heating and cooling choices and technologies;
(v) moisture control and mold;
(vi) maintenance, cleaning, and pest control activities;
(vii) acoustics; and
(viii) other issues relating to the health, comfort,
productivity, and performance of occupants of the school
facilities;
(3) provides technical assistance on siting, design,
management, and operation of school facilities, including
facilities used by students with disabilities or special
needs;
(4) collaborates with federally funded pediatric
environmental health centers to assist in on-site school
environmental investigations;
(5) assists States and the public in better understanding
and improving the environmental health of children; and
(6) provides to the Office a biennial report of all
activities carried out under this title, which the Director
shall include in the report described in section 102(c).
(b) Public Outreach.--The Director shall ensure, to the
maximum extent practicable, that the public clearinghouse
established under section 104 receives and makes available--
(1) information from the Administrator of the Environmental
Protection Agency that is contained in the report described
in subsection (a)(6); and
(2) information on the exposure of children to
environmental hazards in school facilities, as provided by
the Administrator of the Environmental Protection Agency.

SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this
title $10,000,000 for the period of fiscal years 2008 through
2012, to remain available until expended.

TITLE III--STRENGTHENING FEDERAL LEADERSHIP

SEC. 301. INCENTIVES.

As soon as practicable after the date of enactment of this
Act, the Director shall identify incentives to encourage the
use of green buildings and related technology in the
operations of the Federal Government, including through--
(1) the provision of recognition awards; and
(2) the maximum feasible retention of financial savings in
the annual budgets of Federal agencies.

SEC. 302. FEDERAL PROCUREMENT.

(a) In General.--Not later than 2 years after the date of
enactment of this Act, the Director of the Office of Federal
Procurement Policy, in consultation with the Director and the
Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall promulgate revisions of the applicable
acquisition regulations, to take effect as of the date of
promulgation of the revisions--
(1) to direct any Federal procurement executives involved
in the acquisition, construction, or major renovation
(including contracting for the construction or major
renovation) of any facility, to the maximum extent
practicable--
(A) to employ integrated design principles;
(B) to optimize building and systems energy performance;
(C) to protect and conserve water;
(D) to enhance indoor environmental quality; and
(E) to reduce environmental impacts of materials and waste
flows; and
(2) to direct Federal procurement executives involved in
leasing buildings, to give preference to the lease of
facilities that, to the maximum extent practicable--
(A) are energy-efficient; and
(B) have applied contemporary high-performance and
sustainable design principles during construction or
renovation.
(b) Guidance.--Not later than 90 days after the date of
promulgation of the revised regulations under subsection (a),
the Director shall issue guidance to all Federal procurement
executives providing direction and the option to renegotiate
the design of proposed facilities, renovations for existing
facilities, and leased facilities to incorporate improvements
that are consistent with this section.

SEC. 303. FEDERAL GREEN BUILDING PERFORMANCE.

(a) In General.--Not later than October 31 of each of the 2
fiscal years following the fiscal year in which this Act is
enacted, and at such times thereafter as the Comptroller
General of the United States determines to be appropriate,
the Comptroller General of the United States shall, with
respect to the fiscal years that have passed since the
preceding report--
(1) conduct an audit of the implementation of this Act; and
(2) submit to the Office, the Committee, the Administrator,
and Congress a report describing the results of the audit.
(b) Contents.--An audit under subsection (a) shall include
a review, with respect to the period covered by the report
under subsection (a)(2), of--
(1) budget, life-cycle costing, and contracting issues,
using best practices identified by the Comptroller General of
the United States and heads of other agencies in accordance
with section 106;
(2) the level of coordination among the Office, the Office
of Management and Budget, and relevant agencies;
(3) the performance of the Office in carrying out the
implementation plan;
(4) the design stage of high-performance green building
measures;
(5) high-performance building data that were collected and
reported to the Office; and
(6) such other matters as the Comptroller General of the
United States determines to be appropriate.
(c) Environmental Stewardship Scorecard.--The Director
shall consult with the Committee to enhance, and assist in
the implementation of, the Environmental Stewardship
Scorecard announced at the White House summit on Federal
sustainable buildings in January 2006, to measure the
implementation by each Federal agency of sustainable design
and green building initiatives.

TITLE IV--DEMONSTRATION PROJECT

SEC. 401. COORDINATION OF GOALS.

(a) In General.--The Director shall establish guidelines to
implement a demonstration project to contribute to the
research goals of the Office.
(b) Projects.--
(1) In general.--In accordance with guidelines established
by the Director under subsection (a) and the duties of the
Director described in title I, the Director shall carry out 3
demonstration projects.

[[Page S1648]]

(2) Location of projects.--Each project carried out under
paragraph (1) shall be located in a Federal building in a
State recommended by the Director in accordance with
subsection (c).
(3) Requirements.--Each project carried out under paragraph
(1) shall--
(A) provide for the evaluation of the information obtained
through the conduct of projects and activities under this
Act; and
(B) achieve a platinum rating, as defined by the Leadership
in Energy and Environmental Design Building Rating System
standard established by the United States Green Building
Council (or an equivalent rating obtained through a
comparable system).
(c) Criteria.--With respect to the existing or proposed
Federal facility at which a demonstration project under this
section is conducted, the Federal facility shall--
(1) be an appropriate model for a project relating to--
(A) the effectiveness of high-performance technologies;
(B) analysis of materials, components, and systems,
including the impact on the health of building occupants;
(C) life-cycle costing and life-cycle assessment of
building materials and systems; and
(D) location and design that promote access to the Federal
facility through walking, biking, and mass transit; and
(2) possess sufficient technological and organizational
adaptability.
(d) Report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter through
September 30, 2013, the Director shall submit to the
Administrator a report that describes the status of and
findings regarding the demonstration project.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out the
Federal demonstration project described in section 401(b)
$10,000,000 for the period of fiscal years 2008 through 2012,
to remain available until expended.
______

By Mr. CONRAD (for himself, Ms. Collins, Ms. Cantwell, and Mr.
Durbin):
S. 507. A bill to amend title XVIII of the Social Security Act to
provide for reimbursement of certified midwife services and to provide
for more equitable reimbursement rates for certified nurse-midwife
services; to the Committee on Finance.
Mr. CONRAD. Mr. President, today I am introducing the Midwifery Care
Access and Reimbursement Equity (M-CARE) Act of 2007. For too many
years, certified nurse midwives (CNMs) have not received adequate
reimbursement under the Medicare program. My legislation takes steps to
improve reimbursement for these important healthcare providers.
Since 1988, CNMs have been authorized to provide maternity-related
services to Medicare-eligible women of child-bearing age. There are
approximately three million disabled women of child-bearing age on
Medicare; however, if they choose to utilize a CNM for ``well women''
services, the CNM is only reimbursed at 65 percent of the physician fee
schedule. This is not right and does not come close to offsetting the
costs incurred by these professionals.
At this incredibly low rate of reimbursement, the Medicare Payment
Advisory Committee (MedPAC) agrees that a CNM simply cannot afford to
provide services to Medicare patients and has supported increasing
reimbursement for CNMs. In fact, the Commission recommended in 2002
that CNMs' reimbursement be increased and acknowledged that the care
provided by these individuals is at least comparable to similar
providers.
My legislation would make several changes to improve the ability of
CNMs and certified midwives (CMs) to effectively serve the Medicare-
eligible population. First, and most importantly, my bill recognizes
the need to increase Medicare reimbursement for CNMs by raising the
reimbursement level from 65 percent to 100 percent of the physician fee
schedule. CNMs provide the same care as physicians; therefore, it is
only fair to reimburse CNMs at the same level. Several states have
recognized this in their Medicaid programs--approximately 29 States
reimburse at 100 percent of the physician fee schedule for out-of-
hospital services.
In addition, the M-CARE Act would establish recognition for a
certified midwife (CM) to provide services under Medicare. Despite the
fact that CNMs and CMs provide the same services, Medicare has yet to
recognize CMs as eligible providers. My bill would change this.
This bill will enhance access to ``well woman'' care for thousands of
women in underserved communities and make several needed changes to
improve access to midwives. I urge my colleagues to support this
legislation.
______

By Mr. GRASSLEY:
S. 508. A bill to amend the Congressional Accountability Act of 1995
to apply whistleblower protections available to certain executive
branch employees to legislative branch employees, and for other
purposes; to the Committee on Homeland Security and Governmental
Affairs.
Mr. GRASSLEY. Mr. President, I rise to reintroduce the Congressional
Whistleblower Protection Act of 2007, which will extend whistleblower
protections currently available to certain executive branch employees
to legislative branch employees.
Presently, executive branch employees are shielded from retaliation
for exposing waste, fraud, or abuse by the Whistleblower Protection
Act. The bill I'm introducing today simply extends those same
protections to legislative branch employees.
A theme that has dominated this new Congress, as well as the
elections this past November, is accountability and responsibility in
Washington. I have fought hard for whistleblowers over the years
because they are key in our efforts to ensure government accountability
to the people we are sent here to serve. In most instances, the only
reason we discover waste or fraud is because employees are brave enough
to stand up to the wrongdoers and expose their offenses. Without these
whistleblowers, the American taxpayer would continue to foot the bill.
The Office of Compliance has called for these changes on numerous
occasions in recent years, and they are very supportive of this bill.
We have already taken the steps to protect whistleblowers in the
executive branch. It doesn't make sense not to extend these same
protections to whistleblowers in our own backyard. My bill will, very
simply, give congressional employees the same protections that workers
in the other branches of government already possess.
I hope my colleagues will join me in supporting this bill to ensure
that those who help us in the fight to hold government accountable are
not punished for their efforts.
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. 508

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

SECTION 1. APPLICATION OF WHISTLEBLOWER PROTECTION RULES TO
LEGISLATIVE BRANCH EMPLOYEES.

(a) Short Title.--This Act may be cited as the
``Congressional Whistleblower Protection Act of 2007''.
(b) In General.--Part A of title II of the Congressional
Accountability Act of 1995 (2 U.S.C. 1311 et seq.) is
amended--
(1) in the heading, by striking ``fair labor standards,''
and all that follows and inserting ``and other protections
and benefits'';
(2) by redesignating section 207 as section 208; and
(3) by inserting after section 206 the following:

``SEC. 207. RIGHTS AND PROTECTIONS UNDER WHISTLEBLOWER
PROTECTION RULES.

``(a) Rights and Protections Described.--
``(1) In general.--No employing office may take or fail to
take, or threaten to take or fail to take, a personnel action
(within the meaning of chapter 23 of title 5, United States
Code) with respect to any covered employee or applicant for
employment because of--
``(A) any disclosure of information by a covered employee
or applicant which the employee or applicant reasonably
believes evidences--
``(i) a violation of any law, rule, or regulation; or
``(ii) gross mismanagement, a gross waste of funds, an
abuse of authority, or a substantial and specific danger to
public health or safety;

if such disclosure is not specifically prohibited by law and
if such information is not specifically required by Executive
order or the rules of the Senate or the House of
Representatives to be kept secret in the interest of national
defense or the conduct of foreign affairs; or
``(B) any disclosure to the General Counsel, or to the
Inspector General of a legislative or executive agency or
another employee designated by the head of the legislative or
executive agency to receive such disclosures, of information
which the employee or applicant reasonably believes
evidences--
``(i) a violation of any law, rule, or regulation; or

[[Page S1649]]

``(ii) gross mismanagement, a gross waste of funds, an
abuse of authority, or a substantial and specific danger to
public health or safety.
``(2) Definitions.--For purposes of this section and for
purposes of applying the procedures established under title
IV for the consideration of alleged violations of this
section--
``(A) the term `covered employee' includes an employee of
the Government Accountability Office or Library of Congress;
and
``(B) the term `employing office' includes the Government
Accountability Office and the Library of Congress.
``(b) Remedy.--The remedy for a violation of subsection (a)
shall be such remedy as would be appropriate if awarded under
chapter 12 of title 5, United States Code, with respect to a
prohibited personnel practice described in section 2302(b)(8)
of such title.
``(c) Regulations To Implement Section.--
``(1) In general.--The Board shall, pursuant to section
304, issue regulations to implement this section.
``(2) Agency regulations.--The regulations issued under
paragraph (1) shall be the same as the substantive
regulations promulgated by the Merit Systems Protection Board
to implement chapters 12 and 23 of title 5, United States
Code, except to the extent that the Board of Directors of the
Office of Compliance may determine, for good cause shown and
stated together with the regulation, that a modification of
such regulations would be more effective for the
implementation of the rights and protections under this
section.''.
(c) Technical and Conforming Amendments.--
(1) Table of contents.--The table of contents for part A of
title II of the Congressional Accountability Act of 1995 is
amended--
(A) in the item relating to part A, by striking ``FAIR
LABOR STANDARDS,'' and all that follows and inserting ``AND
OTHER PROTECTIONS AND BENEFITS'';
(B) by redesignating the item relating to section 207 as
relating to section 208; and
(C) by inserting after the item relating to section 206 the
following:

``Sec. 207. Rights and protections under whistleblower protection
rules.''.
(2) Application of laws.--Section 102(a) of the
Congressional Accountability Act of 1995 (2 U.S.C. 1302(a))
is amended by adding at the end the following:
``(12) Section 2302(b)(8) of title 5, United States
Code.''.
______

Mr. INOUYE (for himself, Mr. Stevens, Mr. Rockefeller, Mr. Lott,
and Mr. Lautenberg):
S. 509. A bill to provide improved aviation security, and for other
purposes; to the Committee on Commerce, Science, and Transportation.
Mr. INOUYE. Mr. President, I rise today to introduce the Aviation
Security Improvement Act with Senators Stevens, Rockefeller, Lott, and
Lautenberg, who are all original cosponsors of this legislation.
When the 9/11 Commission released its report in 2004, the Commission
expressed continuing concern over the state of air cargo security, the
screening of passengers and baggage, access controls at airports, and
the security of general aviation. Congress responded then and enacted
measures to address inefficiencies highlighted by the Commission.
However, implementation through the rulemaking process was slow, and as
a result, significant shortfalls in our security regime remain.
In fact, a little more than year ago, the 9/11 Public Discourse
project issued a scorecard that gave inadequate grades in those key
areas where the Commission had advocated for improvements in aviation
security. Checked Baggage and Cargo Screening received a ``D,'' Airline
Passenger Explosive Screening received a ``C,'' and Airline Passenger
Prescreenig received an ``F.''
Over the past year, the Transportation Security Administration, TSA,
has continued working to significantly bolster air cargo security in
the United States. While that is a good step in response to the report
card, more must be done. The government must remain vigilant in its
effort to provide security for our Nation, and the steps proposed in
this bill will both improve our existing security system and give TSA
the flexibility to combat new and emerging threats.
The bill we are introducing today would require the screening of all
cargo going on passenger aircraft within 3 years. We expect TSA to
develop a robust screening program that improves upon current measures
and ensures the security of all cargo transported in commercial
passenger air carriers.
To improve our ability to detect explosives in checked baggage and at
passenger screening checkpoints, the bill extends the Aviation Security
Capital Fund and promotes the purchase and installation of advanced
baggage screening systems that can be integrated into the daily
workings of our Nation's air transportation system. This capital
investment will improve security screening by permitting TSA employees
to better focus on potential threats while reducing the high workplace
injury rates.
The bill addresses airline passenger explosive screening in several
ways:
1. By promoting advanced research and development for checkpoint
technology;
2. By enhancing screener training to more clearly identify and
address potential threats; and
3. By requiring the Administration to complete and implement a plan
over the next year that thoroughly addresses the threat of and response
to carry-on explosives.
Airline passenger prescreening also remains a primary concern of the
Congress. Not enough progress has been made by the TSA to develop an
advanced passenger prescreening system since it took on this task
nearly 4 years ago. Too many passengers are inconvenienced each year by
false positives when matched against passenger watchlists.
Our bill would ensure a system is in place to coordinate passenger
redress matters, and that the TSA moves rapidly to develop a strategic
plan to test and implement an advanced passenger prescreening system.
Our bill also takes steps to improve general aviation security,
airport access issues for airline employees, screener staffing issues,
and other issues where there have been consistent shortcomings over the
past several years.
The 9/11 Commission's report and subsequent Public Discourse project
helped keep Congress and the Administration focused on the need for
aviation security. While they did not have all the answers for quick
fixes, they did offer a vital blueprint, particularly in the areas of
infrastructure and transportation system security.
My colleagues and I used that guideline in drafting the legislation
we are introducing today. We believe that once this bill is enacted, it
will significantly improve aviation security in the specific areas I
have highlighted, and the aviation system as a whole. I look forward to
working with my colleagues to move this bill quickly. We have had 5
years to consider what does and does not work. Now it is time to
implement what we have learned.
I ask unanimous consent that 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. 509

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

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Aviation
Security Improvement Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

TITLE --AVIATION SECURITY

Sec. 1. Short title; table of contents.
Sec. 2. Extension of authorization for aviation security funding.
Sec. 3. Passenger aircraft cargo screening.
Sec. 4. Blast-resistant cargo containers.
Sec. 5. Protection of air cargo on passenger planes from explosives.
Sec. 6. In-line baggage screening.
Sec. 7. Enhancement of in-line baggage system deployment.
Sec. 8. Research and development of aviation transportation security
technology.
Sec. 9. Certain TSA personnel limitations not to apply.
Sec. 10. Specialized training.
Sec. 11. Explosive detection at passenger screening checkpoints.
Sec. 12. Appeal and redress process for passengers wrongly delayed or
prohibited from boarding a flight.
Sec. 13. Repair station security.
Sec. 14. Strategic plan to test and implement advanced passenger
prescreening system.
Sec. 15. General aviation security.
Sec. 16. Security credentials for airline crews.

SEC. 2. EXTENSION OF AUTHORIZATION FOR AVIATION SECURITY
FUNDING.

Section 48301(a) of title 49, United States Code, is
amended by striking ``and 2006'' and inserting ``2006, 2007,
2008, and 2009''.

SEC. 3. PASSENGER AIRCRAFT CARGO SCREENING.

(a) In General.--Section 44901 of title 49, United States
Code, is amended--
(1) by redesignating subsections (g) and (h) as subsections
(h) and (i), respectively; and

[[Page S1650]]

(2) by inserting after subsection (f) the following:
``(g) Air Cargo on Passenger Aircraft.--
``(1) In general.--Not later than 3 years after the date of
enactment of the Aviation Security Improvement Act, the
Secretary of Homeland Security, acting through the
Administrator of the Transportation Security Administration,
shall establish a system to screen all cargo transported on
passenger aircraft operated by an air carrier or foreign air
carrier in air transportation or intrastate air
transportation to ensure the security of all such passenger
aircraft carrying cargo.
``(2) Minimum standards.--The system referred to in
paragraph (1) shall require, at a minimum, that the
equipment, technology, procedures, personnel, or other
methods determined by the Administrator of the Transportation
Security Administration, provide a level of security
comparable to the level of security in effect for passenger
checked baggage.
``(3) Regulations.--
``(A) Interim final rule.--The Secretary of Homeland
Security may issue an interim final rule as a temporary
regulation to implement this subsection without regard to the
provisions of chapter 5 of title 5.
``(B) Final rule.--
``(i) In general.--If the Secretary issues an interim final
rule under subparagraph (A), the Secretary shall issue, not
later than 1 year after the effective date of the interim
final rule, a final rule as a permanent regulation to
implement this subsection in accordance with the provisions
of chapter 5 of title 5.
``(ii) Failure to act.--If the Secretary does not issue a
final rule in accordance with clause (i) on or before the
last day of the 1-year period referred to in clause (i), the
Secretary shall submit a report to the Congress explaining
why the final rule was not timely issued and providing an
estimate of the earliest date on which the final rule will be
issued. The Secretary shall submit the first such report
within 10 days after such last day and submit a report to the
Congress containing updated information every 60 days
thereafter until the final rule is issued.
``(iii) Superseding of interim final rule.--The final rule
issued in accordance with this subparagraph shall supersede
the interim final rule issued under subparagraph (A).
``(4) Report.--Not later than 1 year after the date on
which the system required by paragraph (1) is established,
the Secretary shall transmit a report to Congress that
details and explains the system.''.
(b) Assessment of Exemptions.--
(1) TSA assessment of exemptions.--
(A) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Homeland Security,
through the Administrator of the Transportation Security
Administration, shall submit a report to Congress and to the
Comptroller General containing an assessment of each
exemption granted under section 44901(i) of title 49, United
States Code, for the screening required by section
44901(g)(1) of that title for cargo transported on passenger
aircraft and an analysis to assess the risk of maintaining
such exemption. The Secretary may submit the report in both
classified and redacted formats if the Secretary determines
that such action is appropriate or necessary.
(B) Contents.--The report shall include--
(i) the rationale for each exemption;
(ii) a statement of the percentage of cargo that is not
screened as a result of each exemption;
(iii) the impact of each exemption on aviation security;
(iv) the projected impact on the flow of commerce of
eliminating such exemption;
(v) a statement of any plans, and the rationale, for
maintaining, changing, or eliminating each exemption.
(2) GAO Assessment.--Not later than 120 days after the date
on which the report required under paragraph (1) is
submitted, the Comptroller General shall review the report
and provide to Congress an assessment of the methodology used
for determinations made by the Secretary for maintaining,
changing, or eliminating an exemption.

SEC. 4. BLAST-RESISTANT CARGO CONTAINERS.

Section 44901 of title 49, United States Code, is amended
by adding at the end thereof the following:
``(i) Blast-resistant Cargo Containers.--
``(1) In general.--Before January 1, 2008, the
Administrator of the Transportation Security Administration
shall--
``(A) evaluate the results of the blast-resistant cargo
container pilot program instituted before the date of
enactment of the Aviation Security Improvement Act;
``(B) based on that evaluation, begin the acquisition of a
sufficient number of blast-resistant cargo containers to meet
the requirements of the Transportation Security
Administration's cargo security program under paragraph (2);
and
``(C) develop a system under which the Administrator--
``(i) will make such containers available for use by
passenger aircraft operated by air carriers or foreign air
carriers in air transportation or intrastate air
transportation on a random or risk-assessment basis as
determined by the Administrator, in sufficient number to
enable the carriers to meet the requirements of the
Administration's cargo security system; and
``(ii) provide for the storage, maintenance, and
distribution of such containers.
``(2) Distribution to air carriers.--Within 90 days after
the date on which the Administrator completes development of
the system required by paragraph (1)(C), the Administrator of
the Transportation Security Administration shall implement
that system and begin making blast-resistant cargo containers
available to such carriers as necessary.''.

SEC. 5. PROTECTION OF AIR CARGO ON PASSENGER PLANES FROM
EXPLOSIVES.

(a) Technology Research and Pilot Projects.--
(1) Research and development.--The Secretary of Homeland
Security shall expedite research and development for
technology that can disrupt or prevent an explosive device
from being introduced onto a passenger plane or from damaging
a passenger plane while in flight or on the ground. The
research shall include blast resistant cargo containers and
other promising technology and will be used in concert with
implementation of section 4 of this Act.
(2) Pilot projects.--The Secretary, in conjunction with the
Secretary of Transportation, shall establish a grant program
to fund pilot projects--
(A) to deploy technologies described in paragraph (1); and
(B) to test technology to expedite the recovery,
development, and analysis of information from aircraft
accidents to determine the cause of the accident, including
deployable flight deck and voice recorders and remote
location recording devices.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Homeland Security for
fiscal year 2008 such sums as may be necessary to carry out
this section, such funds to remain available until expended.

SEC. 6. IN-LINE BAGGAGE SCREENING.

(a) Extension of Authorization.--Section 44923(i)(1) of
title 49, United States Code, is amended by striking
``2007.'' and inserting ``2007, and $450,000,000 for each of
fiscal years 2008 and 2009.''.
(b) Report.--Within 30 days after the date of enactment of
this Act, the Secretary of Homeland Security shall submit the
report the Secretary was required by section 4019(d) of the
Intelligence Reform and Terrorism Prevention Act of 2004 (49
U.S.C. 44901 note) to have submitted in conjunction with the
submission of the budget for fiscal year 2006.

SEC. 7. ENHANCEMENT OF IN-LINE BAGGAGE SYSTEM DEPLOYMENT.

(a) In General.--Section 44923 of title 49, United States
Code, is amended--
(1) by striking ``may'' in subsection (a) and inserting
``shall'';
(2) by striking ``may'' in subsection (d)(1) and inserting
``shall'';
(3) by striking ``2007'' in subsection (h)(1) and inserting
``2028'';
(4) by striking paragraphs (2) and (3) of subsection (h)
and inserting the following:
``(2) Allocation.--Of the amount made available under
paragraph (1) for a fiscal year, not less than $200,000,000
shall be allocated to fulfill letters of intent issued under
subsection (d).
``(3) Discretionary grants.--Of the amount made available
under paragraph (1) for a fiscal year, up to $50,000,000
shall be used to make discretionary grants, with priority
given to small hub airports and non-hub airports.''; and
(5) by redesignating subsection (i) as subsection (j) and
inserting after subsection (h) the following:
``(i) Leveraged Funding.--For purposes of this section, a
grant under subsection (a) to an airport sponsor to service
an obligation issued by or on behalf of that sponsor to fund
a project described in subsection (a) shall be considered to
be a grant for that project.''.
(b) Prioritization of Projects.--
(1) In general.--The Administrator shall create a
prioritization schedule for airport security improvement
projects described in section 44923(b) of title 49, United
States Code, based on risk and other relevant factors, to be
funded under the grant program provided by that section. The
schedule shall include both hub airports (as defined in
section 41731(a)(3) of title 49, United States Code) and
nonhub airports (as defined in section 41731(a)4) of title
49, United States Code).
(2) Airports that have commenced projects.--The schedule
shall include airports that have incurred eligible costs
associated with development of partial in-line baggage
systems before the date of enactment of this Act in
reasonable anticipation of receiving a grant under section
44923 of title 49, United States Code, in reimbursement of
those costs but that have not received such a grant.
(3) Report.--Within 180 days after the date of enactment of
this Act, the Administrator shall provide a copy of the
prioritization schedule, a corresponding timeline, and a
description of the funding allocation under section 44923 of
title 49, United States Code, to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Homeland Security.

SEC. 8. RESEARCH AND DEVELOPMENT OF AVIATION TRANSPORTATION
SECURITY TECHNOLOGY.

Section 137(a) of the Aviation and Transportation Security
Act (49 U.S.C. 44912 note) is amended--
(1) by striking ``2002 through 2006,'' and inserting ``2006
through 2009,'';
(2) by striking ``aviation'' and inserting
``transportation''; and
(3) by striking ``2002 and 2003'' and inserting ``2006
through 2009''.

[[Page S1651]]

SEC. 9. CERTAIN TSA PERSONNEL LIMITATIONS NOT TO APPLY.

(a) In General.--Notwithstanding any provision of law to
the contrary, any statutory limitation on the number of
employees in the Transportation Security Administration,
before or after its transfer to the Department of Homeland
Security from the Department of Transportation, does not
apply after fiscal year 2007.
(b) Aviation Security.--Notwithstanding any provision of
law imposing a limitation on the recruiting or hiring of
personnel into the Transportation Security Administration to
a maximum number of permanent positions, the Secretary of
Homeland Security shall recruit and hire such personnel into
the Administration as may be necessary--
(1) to provide appropriate levels of aviation security; and
(2) to accomplish that goal in such a manner that the
average aviation security-related delay experienced by
airline passengers is reduced to a level of less than 10
minutes.

SEC. 10. SPECIALIZED TRAINING.

The Administrator of the Transportation Security
Administration shall provide advanced training to
transportation security officers for the development of
specialized security skills, including behavior observation
and analysis, explosives detection, and document examination,
in order to enhance the effectiveness of layered
transportation security measures.

SEC. 11. EXPLOSIVE DETECTION AT PASSENGER SCREENING
CHECKPOINTS.

(a) In General.--Within 90 days after the date of enactment
of this Act, the Secretary of Homeland Security shall issue
the strategic plan the Secretary was required by section
44925(a) of title 49, United States Code, to have issued
within 90 days after the date of enactment of the
Intelligence Reform and Terrorism Prevention Act of 2004.
(b) Deployment.--Section 44925(b) of title 49, United
States Code, is amended by adding at the end thereof the
following:
``(3) Full deployment.--The Secretary shall fully implement
the strategic plan within 1 year after the date of enactment
of the Aviation Security Improvement Act.''.

SEC. 12. APPEAL AND REDRESS PROCESS FOR PASSENGERS WRONGLY
DELAYED OR PROHIBITED FROM BOARDING A FLIGHT.

(a) In General.--Subtitle C of title IV of the Homeland
Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by
adding at the end the following:

``SEC. 431. APPEAL AND REDRESS PROCESS FOR PASSENGERS WRONGLY
DELAYED OR PROHIBITED FROM BOARDING A FLIGHT.

``(a) In General.--The Secretary shall establish a timely
and fair process for individuals who believe they have been
delayed or prohibited from boarding a commercial aircraft
because they were wrongly identified as a threat under the
regimes utilized by the Transportation Security
Administration, the Bureau of Customs and Border Protection,
or any other Department entity.
``(b) Office of Appeals and Redress.--
``(1) Establishment.--The Secretary shall establish an
Office of Appeals and Redress to oversee the process
established by the Secretary pursuant to subsection (a).
``(2) Records.--The process established by the Secretary
pursuant to subsection (a) shall include the establishment of
a method by which the Office of Appeals and Redress, under
the direction of the Secretary, will be able to maintain a
record of air carrier passengers and other individuals who
have been misidentified and have corrected erroneous
information.
``(3) Information.--To prevent repeated delays of an
misidentified passenger or other individual, the Office of
Appeals and Redress shall--
``(A) ensure that the records maintained under this
subsection contain information determined by the Secretary to
authenticate the identity of such a passenger or individual;
and
``(B) furnish to the Transportation Security
Administration, the Bureau of Customs and Border Protection,
or any other appropriate Department entity, upon request,
such information as may be necessary to allow such agencies
to assist air carriers in improving their administration of
the advanced passenger prescreening system and reduce the
number of false positives.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of such Act is amended by inserting after the item
relating to section 430 the following:

``431. Appeal and redress process for passengers wrongly delayed or
prohibited from boarding a flight.''.

SEC. 13. STRATEGIC PLAN TO TEST AND IMPLEMENT ADVANCED
PASSENGER PRESCREENING SYSTEM.

Not later than 180 days after the date of enactment of this
Act, the Secretary of Homeland Security, in consultation with
the Administrator of the Transportation Security
Administration, shall submit to the Congress a plan that--
(1) describes the system to be utilized by the Department
of Homeland Security to assume the performance of comparing
passenger information, as defined by the Administrator of the
Transportation Security Administration, to the automatic
selectee and no-fly lists, utilizing appropriate records in
the consolidated and integrated terrorist watchlist
maintained by the Federal government;
(2) provides a projected timeline for each phase of testing
and implementation of the system;
(3) explains how the system will be integrated with the
prescreening system for passengers on international flights;
and
(4) describes how the system complies with section 552a of
title 5, United States Code.

SEC. 14. REPAIR STATION SECURITY.

(a) Certification of Foreign Repair Stations Suspension.--
If the regulations required by section 44924(f) of title 49,
United States Code, are not issued within 90 days after the
date of enactment of this Act, the Administrator of the
Federal Aviation Administration may not certify any foreign
repair station under part 145 of title 14, Code of Federal
Regulations, after such 90th day unless the station was
previously certified by the Administration under that part.
(b) 6-Month Deadline for Security Review and Audit.--
Subsections (a) and (d) of section 44924 of title 49, United
States Code, are each amended by striking ``18 months'' and
inserting ``6 months''.

SEC. 15. GENERAL AVIATION SECURITY.

Section 44901 of title 49, United States Code, is amended
by adding at the end thereof the following:
``(i) General Aviation Airport Security Program.--
``(1) In general.--Within 1 year after the date of
enactment of the Aviation Security Improvement Act the
Administrator of the Transportation Security Administration
shall--
``(A) develop a standardized threat and vulnerability
assessment program for general aviation airports (as defined
in section 47135(m)); and
``(B) implement a program to perform such assessments on a
risk-assessment basis at general aviation airports.
``(2) Grant program.--Within 6 months after date of
enactment of the Aviation Security Improvement Act the
Administrator shall initiate and complete a study of the
feasibility of a program, based on a risk-managed approach,
to provide grants to general aviation airport operators for
projects to upgrade security at general aviation airports (as
defined in section 47135(m)). If the Administrator determines
that such a program is feasible, the Administrator shall
establish such a program.
``(3) Application to foreign-registered general aviation
aircraft.--Within 180 days after the date of enactment of the
Aviation Security Improvement Act, the Administrator shall
develop a risk-based system under which--
``(A) foreign-registered general aviation aircraft, as
identified by the Administrator, in coordination with the
Administrator of the Federal Aviation Administration, are
required to submit passenger information to the
Transportation Security Administration before entering United
States airspace; and
``(B) such information is checked against appropriate
databases maintained by the Transportation Security
Administration.''.
``(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Homeland
Security such sums as may be necessary to carry out any
program established under paragraph (2).''.

SEC. 16. SECURITY CREDENTIALS FOR AIRLINE CREWS.

Within 180 days after the date of enactment of this Act,
the Administrator of the Transportation Security
Administration shall, after consultation with airline,
airport, and flight crew representatives, transmit a report
to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure on the status of its
efforts to institute a sterile area access system or method
that will enhance security by properly identifying authorized
airline flight deck and cabin crew members at screening
checkpoints and granting them expedited access through
screening checkpoints. The Administrator shall include in the
report recommendations on the feasibility of implementing the
system for the domestic aviation industry beginning 1 year
after the date on which the report is submitted. The
Administrator shall begin full implementation of the system
or method not later than 1 year after the date on which the
Administrator transmits the report.

____________________