[Congressional Record Volume 153, Number 48 (Tuesday, March 20, 2007)]
[Senate]
[Pages S3354-S3394]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. MENENDEZ (for himself, Mrs. Boxer, Mr. Kerry, Mr. Cardin, and
Mr. Lautenberg):
S. 919. A bill to reauthorize Department of Agriculture conservation
and energy programs and certain other programs of the Department, to
modify the operation and administration of these programs, and for
other purposes; to the Committee on Agriculture, Nutrition, and
Forestry.
Mr. MENENDEZ. Mr. President, I rise today along with several of my
colleagues to introduce the Healthy Farms, Foods, and Fuels Act of
2007. I am also proud to be joined in this effort by my friend and
former colleague, Representative Ron Kind of Wisconsin, who is
introducing this legislation today in the House of Representatives.
This legislation is crucial because we have a tremendous opportunity
this year to set a healthier course for American agriculture. To allow
our farmers, ranchers, and foresters to thrive while giving them the
tools they need to meet our environmental and energy challenges; to
open up new markets and opportunities for our small farmers; and to
provide consumers and schoolchildren with more fresh fruits and
vegetables, and make it easier for low-income Americans and the elderly
to have access to healthier foods.
Like all legislation, a Farm Bill is a statement of priorities and of
values. And the Healthy Farms, Foods, and Fuels Act embodies many of
the priorities and values that I believe we as a nation should be
focused on.
Although many people are not aware of New Jersey's thriving
agricultural sector, the fact is that we are the Garden State, and a
healthy agricultural sector nationwide--one that addresses the needs of
all of our farmers, whether
[[Page S3355]]
they grow corn in the Midwest or blueberries in the Mid-Atlantic--is
essential for New Jersey to remain the Garden State.
However, New Jersey's farmers are under a tremendous amount of
pressure. They operate in a very high-cost environment and see
development encroaching on their farms from all sides. Conservation
programs are crucial to the survival of agriculture in the Garden
State, as well as for the protection of sensitive wetlands and animal
habitats, which is why the Healthy Farms bill increases funding and
expands eligibility for the Environment Quality Incentives Program,
Conservation Reserve Program, Conservation Security Program, Farmland
and Ranchland Protection Program, Wetlands Reserve Program, and
Wildlife Habitat Incentive Program.
New Jersey's farmers are also among the most prolific in the country
in growing fruits and vegetables, yet they are often just a few miles
from distressed communities where children struggle for access to
nutritious food. That's why the Healthy Farms bill expands the Fresh
Fruit and Vegetable Program to schools in all states, giving more
children access to healthy snacks. The bill also expands the Farmers
Market Promotion Program, and provides additional funding for programs
that allow seniors and low-income families to obtain food at farmers
markets. Not only do these programs help people eat healthier, they
provide an additional market for local farmers.
This bill is, of course, just the start of this conversation. As we
move forward this year, we must work together on issues of farm
profitability, entrepreneurship and innovation, toward a Farm Bill that
emphasizes flexibility, efficiency and equitable distribution of
government programs. This will help to ensure success for our farm
family enterprises and the wider community of Farm Bill beneficiaries,
both large and small, near urbanized areas and in more rural settings,
throughout all regions of the country.
Ideally, an emphasis on the diversity of agricultural and related
businesses, their interaction with the citizens who are their ultimate
customers, and the role these enterprises play in addressing issues of
nutrition, hunger and economic growth throughout our nation will join
with conservation and environmental issues to form a comprehensive Farm
Bill that will serve the nation well for the next five years and
beyond.
______
By Mr. REED (for himself and Mr. Whitehouse):
S. 920. A bill to provide wage parity for certain prevailing rate
employees in Rhode Island; to the Committee on Homeland Security and
Governmental Affairs.
Mr. REED. Mr. President, today I address an issue of critical
importance to Rhode Island's Federal Wage System employees.
Federal Wage System (FWS) employees are the Federal Government's
blue-collar employees. In Rhode Island, these workers include janitors,
mechanics, machine tool operators, munitions and explosive operators,
electricians, and engineers. The majority of FWS employees in the
United States work in the Department of Defense or the Department of
Veterans Affairs. Indeed, Naval Station Newport employs the most FWS
workers in the Narragansett Bay area. These workers are essential to
the government's daily operation, and the work that they perform is
important to our national security.
Regrettably, in the Narragansett Bay wage area, Federal blue-collar
workers are faced with one of the lowest FWS pay scales, while residing
in an area with one of the highest costs of living. The significant
disparities between wages in the Narragansett Bay wage area and the
proximate Boston and Hartford wage areas raise serious questions about
the fairness and equity of these pay scales. In Rhode Island, an
average wage grade worker earns $18.47 per hour, whereas the same
worker in Boston earns $20.77 per hour and an employee in Hartford
earns $19.99 per hour. Competitive compensation is the best way to
ensure the retention of qualified and effective workers. Rhode Island
should not suffer the loss of experienced Federal employees to the same
jobs, at the same grade levels, just miles away because of better pay.
The chair of the Federal Prevailing Rate Advisory Committee (FPRAC),
which advises the Office of Personnel Management on decisions dealing
with the FWS pay scales, has been left vacant, leaving the FPRAC unable
to make needed decisions regarding these wage areas.
Due to the lack of a chair and any action by FPRAC or OPM, which I
have long urged to resolve this matter, I am reintroducing the Rhode
Island Federal Worker Fairness Act, and I am pleased that Senator
Whitehouse is joining me as a cosponsor. This bill will merge the
Narragansett Bay wage area with the Boston, MA, wage area to provide
regional pay equity to Rhode Island Federal blue-collar workers.
Merging these two wage areas will keep Federal workers in Rhode Island
from abandoning their government jobs for higher paying positions
elsewhere in southern New England, and help the approximately 500 wage
rate workers in Rhode Island better provide for their families. I urge
that this long pending inequality be addressed.
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. 920
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 ``Rhode Island Federal Worker
Fairness Act of 2007''.
SEC. 2. WAGE PARITY FOR CERTAIN PREVAILING RATE EMPLOYEES IN
RHODE ISLAND.
The wage schedules and rates applicable to prevailing rate
employees (as defined in section 5342 of title 5, United
States Code) in the Narragansett Bay, Rhode Island, wage area
shall be the same as the wage schedules and rates applicable
to prevailing rate employees in the Boston, Massachusetts,
wage area.
SEC. 3. EFFECTIVE DATE.
Section 2 shall take effect beginning with the first pay
period beginning on or after the date of enactment of this
Act.
______
By Mr. THOMAS (for himself and Mrs. Lincoln):
S. 921. A bill to amend title XVIII of the Social Security Act to
provide for the coverage of marriage and family therapist services and
mental health counselor services under part B of the Medicare program,
and for other purposes; to the Committee on Finance.
Mr. THOMAS. Mr. President, I am pleased to rise today to introduce
the ``Seniors Mental Health Access Improvement Act of 2007'' with my
distinguished colleague from Arkansas, Mrs. Lincoln. Specifically, the
``Seniors Mental Health Access Improvement Act of 2007'' permits mental
health counselors and marriage and family therapists to bill Medicare
for services provided to seniors. This will result in an increased
choice of mental health providers for seniors and enhance their ability
to access mental health services in their communities.
This legislation is especially crucial to rural seniors who are often
forced to travel long distances to utilize the services of mental
health providers currently recognized by the Medicare program. Rural
communities have difficulty recruiting and retaining providers,
especially mental health providers. In many small towns, a mental
health counselor or a marriage and family therapist is the only mental
health care provider in the area. Medicare law--as it exists today--
compounds the situation because only psychiatrists, clinical
psychologists, clinical social workers and clinical nurse specialists
are able to bill Medicare for their services.
It is time the Medicare program recognized the qualifications of
mental health counselors and marriage and family therapists as well as
the critical role they play in the mental health care infrastructure.
These providers go through rigorous training, similar to the curriculum
of masters level social workers, and yet are excluded from the Medicare
program.
Particularly troubling to me is the fact that seniors have
disproportionally higher rates of depression and suicide than other
populations. Additionally, 75 percent of the 518 nationally designated
Mental Health Professional Shortage Areas are located in rural areas
and one-fifth of all rural counties have no mental health services of
any kind. Frontier counties have even more drastic numbers as 95
percent do not have a psychiatrist, 68
[[Page S3356]]
percent do not have a psychologist and 78 percent do not have a social
worker. It is quite obvious we have an enormous task ahead of us to
reduce these staggering statistics. Providing mental health counselors
and marriage and family therapists the ability to bill Medicare for
their services is a key part of the solution.
Virtually all of Wyoming is designated a mental health professional
shortage area and will greatly benefit from this legislation. Wyoming
has 174 psychologists, 37 psychiatrists and 263 clinical social workers
for a total of 474 Medicare eligible mental health providers. Enactment
of the ``Seniors Mental Health Access Improvement Act of 2007'' will
more than double the number of mental health providers available to
seniors in my State with the addition of 528 mental health counselors
and 61 marriage and family therapists currently licensed in the State.
I believe this legislation is critically important to the health and
well-being of our Nation's seniors and I strongly urge all my
colleagues to become a cosponsor.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 921
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 ``Seniors Mental Health Access
Improvement Act of 2007''.
SEC. 2. COVERAGE OF MARRIAGE AND FAMILY THERAPIST SERVICES
AND MENTAL HEALTH COUNSELOR SERVICES UNDER PART
B OF THE MEDICARE PROGRAM.
(a) Coverage of Services.--
(1) In general.--Section 1861(s)(2) of the Social Security
Act (42 U.S.C. 1395x(s)(2)) is amended--
(A) in subparagraph (Z), by striking ``and'' after the
semicolon at the end;
(B) in subparagraph (AA), by inserting ``and'' after the
semicolon at the end; and
(C) by adding at the end the following new subparagraph:
``(BB) marriage and family therapist services (as defined
in subsection (ccc)(1)) and mental health counselor services
(as defined in subsection (ccc)(3));''.
(2) Definitions.--Section 1861 of the Social Security Act
(42 U.S.C. 1395x) is amended by adding at the end the
following new subsection:
``Marriage and Family Therapist Services; Marriage and Family
Therapist; Mental Health Counselor Services; Mental Health Counselor
``(ccc)(1) The term `marriage and family therapist
services' means services performed by a marriage and family
therapist (as defined in paragraph (2)) for the diagnosis and
treatment of mental illnesses, which the marriage and family
therapist is legally authorized to perform under State law
(or the State regulatory mechanism provided by State law) of
the State in which such services are performed, as would
otherwise be covered if furnished by a physician or as an
incident to a physician's professional service, but only if
no facility or other provider charges or is paid any amounts
with respect to the furnishing of such services.
``(2) The term `marriage and family therapist' means an
individual who--
``(A) possesses a master's or doctoral degree which
qualifies for licensure or certification as a marriage and
family therapist pursuant to State law;
``(B) after obtaining such degree has performed at least 2
years of clinical supervised experience in marriage and
family therapy; and
``(C) in the case of an individual performing services in a
State that provides for licensure or certification of
marriage and family therapists, is licensed or certified as a
marriage and family therapist in such State.
``(3) The term `mental health counselor services' means
services performed by a mental health counselor (as defined
in paragraph (4)) for the diagnosis and treatment of mental
illnesses which the mental health counselor is legally
authorized to perform under State law (or the State
regulatory mechanism provided by the State law) of the State
in which such services are performed, as would otherwise be
covered if furnished by a physician or as incident to a
physician's professional service, but only if no facility or
other provider charges or is paid any amounts with respect to
the furnishing of such services.
``(4) The term `mental health counselor' means an
individual who--
``(A) possesses a master's or doctor's degree in mental
health counseling or a related field;
``(B) after obtaining such a degree has performed at least
2 years of supervised mental health counselor practice; and
``(C) in the case of an individual performing services in a
State that provides for licensure or certification of mental
health counselors or professional counselors, is licensed or
certified as a mental health counselor or professional
counselor in such State.''.
(3) Provision for payment under part b.--Section
1832(a)(2)(B) of the Social Security Act (42 U.S.C.
1395k(a)(2)(B)) is amended by adding at the end the following
new clause:
``(v) marriage and family therapist services (as defined in
section 1861(ccc)(1)) and mental health counselor services
(as defined in section 1861(ccc)(3));''.
(4) Amount of payment.--Section 1833(a)(1) of the Social
Security Act (42 U.S.C. 1395l(a)(1)) is amended--
(A) by striking ``and (V)'' and inserting ``(V)''; and
(B) by inserting before the semicolon at the end the
following: ``, and (W) with respect to marriage and family
therapist services and mental health counselor services under
section 1861(s)(2)(BB), the amounts paid shall be 80 percent
of the lesser of the actual charge for the services or 75
percent of the amount determined for payment of a
psychologist under subparagraph (L)''.
(5) Exclusion of marriage and family therapist services and
mental health counselor services from skilled nursing
facility prospective payment system.--Section
1888(e)(2)(A)(ii) of the Social Security Act (42 U.S.C.
1395yy(e)(2)(A)(ii)) is amended by inserting ``marriage and
family therapist services (as defined in section
1861(ccc)(1)), mental health counselor services (as defined
in section 1861(ccc)(3)),'' after ``qualified psychologist
services,''.
(6) Inclusion of marriage and family therapists and mental
health counselors as practitioners for assignment of
claims.--Section 1842(b)(18)(C) of the Social Security Act
(42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end
the following new clauses:
``(vii) A marriage and family therapist (as defined in
section 1861(ccc)(2)).
``(viii) A mental health counselor (as defined in section
1861(ccc)(4)).''.
(b) Coverage of Certain Mental Health Services Provided in
Certain Settings.--
(1) Rural health clinics and federally qualified health
centers.--Section 1861(aa)(1)(B) of the Social Security Act
(42 U.S.C. 1395x(aa)(1)(B)) is amended by striking ``or by a
clinical social worker (as defined in subsection (hh)(1))''
and inserting ``, by a clinical social worker (as defined in
subsection (hh)(1)), by a marriage and family therapist (as
defined in subsection (ccc)(2)), or by a mental health
counselor (as defined in subsection (ccc)(4))''.
(2) Hospice programs.--Section 1861(dd)(2)(B)(i)(III) of
the Social Security Act (42 U.S.C. 1395x(dd)(2)(B)(i)(III))
is amended by inserting ``or one marriage and family
therapist (as defined in subsection (ccc)(2))'' after
``social worker''.
(c) Authorization of Marriage and Family Therapists to
Develop Discharge Plans for Post-Hospital Services.--Section
1861(ee)(2)(G) of the Social Security Act (42 U.S.C.
1395x(ee)(2)(G)) is amended by inserting ``marriage and
family therapist (as defined in subsection (ccc)(2)),'' after
``social worker,''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to services furnished on or after
January 1, 2008.
______
By Mr. THUNE (for himself, Mr. Johnson, Mr. Specter, and Mr.
Casey):
S. 922. A bill to extend the existing provisions regarding the
eligibility for essential air service subsidies through fiscal year
2012; to the Committee on Commerce, Science, and Transportation.
Mr. THUNE. Mr. President, I rise today to introduce a bill that will
sustain important air service--in South Dakota and other rural States
across the country. The Airline Deregulation Act of 1978 allowed
airlines to provide air service to domestic markets as they saw fit.
But Congress had the foresight to create the Essential Air Service
(EAS) Program to ensure a minimal level of scheduled air service in
small communities. Without the EAS program, these small communities
might have otherwise seen the airlines pull up stakes and only focus on
larger, more profitable markets.
Essential Air Service is especially important to rural States like my
home State of South Dakota. We have four communities that participate
in the EAS program: Brookings, Huron, Pierre, and Watertown. Ensuring
air passengers have access in and out of these smaller communities
makes our entire commercial airline network more valuable.
The bill I am introducing today is very simple. It extends a
provision, Section 409, passed by Congress and signed into law by the
President in the 2002 Federal Aviation Administration Reauthorization,
commonly referred to as Vision 100. This provision ensures that certain
mileage calculations that determine EAS program eligibility are
[[Page S3357]]
not simply measured by some bureaucrat in Washington, but are in fact
certified by States' Governors. There are, of course, budgetary strains
on the EAS program. Congress and the Administration should focus on
strengthening the program and examine the air service it is supporting
to make sure it is truly essential, but we should not allow bureaucrats
behind a desk in Washington to surreptitiously use mileage
determinations to cut the costs of the program and reduce air service
in the process.
Brookings is a community in my home State that would have more than
likely lost its commercial air service if this provision was not in
place five years ago. We should keep it in place for the next five
years to make sure Brookings and other communities like it do not end
up the cutting room floor of the EAS program.
I look forward to working with my colleagues on the Commerce
Committee to begin the process of reauthorizing FAA programs again this
year. Aviation is a crucial element of our economy. I hope that this
legislation, or at least the concept behind it, is considered during
the reauthorization debate.
______
By Ms. CANTWELL (for herself and Ms. Snowe):
S. 924. A bill to strengthen the United States Coast Guard's
Integrated Deepwater Program; to the Committee on Commerce, Science,
and Transportation.
Ms. CANTWELL. Mr. President, I think we all agree that the United
States Coast Guard plays a critical role in keeping our oceans, coasts,
and waterways safe, secure, and free from environmental harm. Following
the events of September 11 and, more recently, Hurricane Katrina the
Coast Guard has served as a source of strength for this Nation. And, in
the face of increasing marine traffic, security threats at our Nation's
ports, and climate change increasing the odds of another Katrina, the
responsibilities of the Coast Guard continue to increase.
The Coast Guard is struggling right now to replace their rapidly
aging fleet of ships, aircraft, and facilities. At a cost of $24
billion, the Deepwater program is the largest and most complex
acquisition program in the history of the Coast Guard. We have a
responsibility to ensure there is transparency and oversight so this
program is as efficient and effective as possible.
The Deepwater program utilizes a private sector lead systems
integrator, LSI, know as Integrated Coast Guard Systems, ICGS, to
oversee acquisition of a ``system of systems.'' When the Deepwater
contract was originally awarded in 2002, the Coast Guard did not have
the personnel within their acquisition department to manage such a
large contract. We were told that outsourcing that role to industry
would save the Coast Guard time and money over the long run.
The approach, which may have seemed innovative at the time, has not
produced the promised results. Instead of cost and time savings, we've
seen less competition, inadequate technical oversight and a lack of
transparency. Over the last year, these problems have caused major
blunders in the Deepwater program.
The Department of Homeland Security Inspector General, IG, has
released three recent reports detailing some of the problems with
Deepwater.
In an August 11, 2006 report titled Major Improvements Needed in the
U.S. Coast Guard's Implementation of Deepwater Information Technology
System, the IG described problems with Deepwater's C41SR electronics
equipment, which is to be the integrating technology linking
Deepwater's aircraft and ships.
On January 29, 2007, the IG released a scathing report on Deepwater's
flagship National Security Cutter, NSC, documenting crucial design
flaws and cost overruns created by a faulty contract structure and lack
of Coast Guard oversight.
Finally, on February 9, 2007, the IG released another report, this
one detailing serious issues with Deepwater's 123-foot cutter
conversion project.
These reports, along with others by the Government Accountability
Office about problems with the stalled Fast Response Cutter, FRC,
program and the Deepwater contract structure, have prompted a
resounding cry for Deepwater reform, transparency, and oversight.
On February 14, 2007, I chaired a hearing in the Commerce Committee's
Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard to
better understand these issues and seek solutions. From that hearing it
was clear that the Coast Guard was working hard to make internal
reforms. It was also clear that we needed to do more to protect the
American taxpayer.
Today, I'm pleased to introduce, along with Senator Snowe, the
Integrated Deepwater Program Reform Act, a comprehensive bill which
makes fundamental changes to the Coast Guard's Deepwater acquisition
program.
My bill requires the Coast Guard to move away from the industry-led
Lead Systems Integrator and have full and open competition for future
Deepwater assets.
It requires a completely new ``analysis of alternatives'' of all
future Deepwater assets to ensure that the Coast Guard is getting the
assets best-suited for their needs.
It requires the Commandant of the Coast Guard to certify to Congress
that specific assets to be procured are mature and cost-effective
technologies, a requirement already applied to Department of Defense
contracts.
And, it gives the Coast Guard the tools they need to manage this
contract and future contracts effectively, including requiring the
Coast Guard to make internal management changes to ensure open
competition, increase technical oversight and improve reporting to
Congress.
I'm pleased to say that I have worked closely with Senator Snowe and
the Coast Guard in crafting this bill and I'm confident that this will
fix many of the problems that have plagued the Deepwater program.
This legislation takes a big step towards getting the Coast Guard the
assets they need to meet the pressing needs of our Nation and ensuring
responsible management of taxpayer dollars. I look forward to working
with my colleagues to enact the changes we propose today so we can get
this program back on track.
I ask unanimous consent that a summary of the bill and the text of
the bill be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Summary of Integrated Deepwater Program Reform Act
Use of a Lead Systems Integrator
Would direct the Coast Guard to stop using a Lead Systems
Integrator (LSI) on future Deepwater acquisitions.
Would allow the Coast Guard to use the LSI to complete any
specific work for which a contract or order had already been
issued.
Would allow the Coast Guard to use the LSI to complete the
C130-J modifications, the C4ISR program, and also to complete
procurements of the National Security Cutters (NSCs) and
Maritime Patrol Aircraft (MPA) already under contract for
construction. However, the LSI must have no financial
interest in subcontracts or have competed the subcontracts.
Would allow the Coast Guard to use the LSI to complete all
of the remaining NSCs and MPAs only after an analysis of
alternatives has been conducted and, if the Coast Guard
concludes that these procurements and use of an LSI are in
the best interests of the federal government, that
justifications for not competing assets under the Federal
Acquisition Regulations are met, and that the LSI has no
financial interest in subcontracts or has competed the
subcontracts.
All other Deepwater assets would be done as a traditional
procurement.
Competition
Would require that the Coast Guard have a full and open
competition of all Deepwater assets that have not yet gone
under contract, other than those that the LSI can complete.
Would require that the LSI have no financial interest in
subcontracts for assets managed by the LSI, or that
subcontracts be fully competed. A similar provision was
included in the 2006 Defense Authorization Act.
Analysis of Alternatives
Would require an analysis of alternatives of all of the
proposed Deepwater assets not currently under contract and
whether other alternatives are preferable. Such review would
be conducted by an independent third party entity with
expertise in major acquisitions, and no financial conflict of
interest.
Would require the Coast Guard to provide a plan to Congress
for how to move forward with Deepwater procurements based on
this review.
Would require a similar review for any major changes to the
agreed plan in the future.
Certification
Would require the Commandant to certify to Congress, prior
to issuing new contracts
[[Page S3358]]
for specific proposed acquisitions, that the proposed asset
meets objective criteria for feasibility, maturity of design,
and costs. A similar requirement applies to Department of
Defense contracts.
Contract changes
Would require improvements to any contract entered into by
the Coast Guard for Deepwater assets, including changes to
award term and award fee criteria as recommended by the
Government Accountability Office (GAO).
Would end the practice of allowing the private contractor
to self-certify the design and performance of assets being
delivered. This will ensure adherence to accepted industry-
wide standards and procedures.
Internal Coast Guard Management
Would require improvements to Coast Guard's management of
Deepwater, including implementation of the Coast Guard's
Blueprint for Acquisition Reform as well as recommendations
for improved management included in a February 5, 2007
Defense Acquisition University (DAU) report and by GAO.
Would ensure better technical oversight by the Coast
Guard's engineering staff.
Would allow the Coast Guard to shift personnel to support
acquisitions projects.
Reporting to Congress
Would require Coast Guard to provide significant additional
information to Congress regarding the status of the Deepwater
program, similar to what the Department of Defense provides.
GAO Review
Would require GAO to monitor closely the Coast Guard's
implementation of improvements to its management of the
Deepwater program.
____
S. 924
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 ``Integrated
Deepwater Program Reform Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Procurement structure.
Sec. 3. Analysis of alternatives.
Sec. 4. Certification.
Sec. 5. Contract requirements.
Sec. 6. Improvements in Coast Guard management.
Sec. 7. Procurement and report requirements.
Sec. 8. GAO review and recommendations.
Sec. 9. Definitions.
SEC. 2. PROCUREMENT STRUCTURE.
(a) In General.--
(1) Use of lead systems integrator.--Except as provided in
subsection (b), the United States Coast Guard may not use a
private sector entity as a lead systems integrator for
procurements under, or in support of, the Integrated
Deepwater Program after the date of enactment of this Act.
(2) Full and open competition.--The United States Coast
Guard shall utilize full and open competition for any other
procurement for which an outside contractor is used under, or
in support of, the Integrated Deepwater Program after the
date of enactment of this Act.
(b) Exceptions.--
(1) Completion of procurement by lead systems integrator.--
Notwithstanding subsection (a), the Coast Guard may use a
private sector entity as a lead systems integrator--
(A) to complete, without modification, any delivery order
or task order that was issued to the lead systems integrator
on or before the date of enactment of this Act;
(B) for procurements of--
(i) the HC-130J and the C41SR, and
(ii) National Security Cutters or Maritime Patrol Aircraft
under contract or order for construction as of the date of
enactment of this Act,
if the requirements of subsection (c) are met with respect to
such procurements; and
(C) for the procurement of additional National Security
Cutters or Maritime Patrol Aircraft if the Commandant
determines, after conducting the analysis of alternatives
required by section 3, that--
(i) the justifications of FAR 6.3 are met;
(ii) the procurement and the use of a private sector entity
as a lead systems integrator for the procurement is in the
best interest of the Federal government; and
(iii) the requirements of subsection (c) are met with
respect to such procurement.
(2) Report on decision-making process.--If the Coast Guard
determines under paragraph (1) that it will use a private
sector lead systems integrator for a procurement, the
Commandant shall transmit a report to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and
Infrastructure notifying the Committees of its determination
and explaining the rationale for the determination.
(c) Limitation on Lead Systems Integrators.--Neither an
entity performing lead systems integrator functions for a
procurement under, or in support of, the Integrated Deepwater
Program, nor a Tier 1 subcontractor, for any procurement
described in subparagraph (B) or (C) of subsection (b)(1) may
have a financial interest below the tier 1 subcontractor
level unless--
(1) the entity was selected by the Coast Guard through full
and open competition for such procurement;
(2) the procurement was awarded by the lead systems
integrator or a subcontractor through full and open
competition; or
(3) the procurement was awarded by a subcontractor through
a process over which the lead systems integrator or a Tier 1
subcontractor exercised no control.
SEC. 3. ANALYSIS OF ALTERNATIVES.
(a) In General.--Except with respect to a procurement
described in subparagraph (A) or (B) of section 2(b)(1) of
this Act, no procurement may be awarded under the Integrated
Deepwater Program until an analysis of alternatives has been
conducted under this section.
(b) Independent Analysis.--Within 30 days after the date of
enactment of this Act, the Commandant shall execute a
contract for an analysis of alternatives with a Federally
Funded Research and Development Center, an appropriate entity
of the Department of Defense, or a similar independent third
party entity that has appropriate acquisition expertise for
independent analysis of all of the proposed procurements
under, or in support of, the Integrated Deepwater Program,
including procurements described in section 2(b)(1)(B), and
for any future major changes of such procurements. The
Commandant may not contract under this subsection for such an
analysis with any entity that has a substantial financial
interest in any part of the Integrated Deepwater Program as
of the date of enactment of this Act or in any alternative
being considered.
(c) Analysis.--The analysis of alternatives provided
pursuant to the contract under subsection (b) shall include--
(1) a discussion of capability, interoperability, and other
advantages and disadvantages of the proposed procurements;
(2) an examination of feasible alternatives;
(3) a discussion of key assumptions and variables, and
sensitivity to changes in such assumptions and variables;
(4) an assessment of technology risk and maturity; and
(5) a calculation of costs, including life-cycle costs.
(d) Report to Congress.--As soon as possible after an
analysis of alternatives has been completed, the Commandant
shall develop a plan for the procurements addressed in the
analysis and shall transmit a report describing the plan to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure.
SEC. 4. CERTIFICATION.
(a) In General.--A contract, delivery order, or task order
for procurement under, or in support of, the Coast Guard's
Integrated Deepwater Program may not be executed by the Coast
Guard until the Commandant certifies that--
(1) appropriate market research has been conducted prior to
technology development to reduce duplication of existing
technology and products;
(2) the technology has been demonstrated in a relevant
environment;
(3) the technology demonstrates a high likelihood of
accomplishing its intended mission;
(4) the technology is affordable when considering the per
unit cost and the total procurement cost in the context of
the total resources available during the period covered by
the Integrated Deepwater Program;
(5) the technology is affordable when considering the
ability of the Coast Guard to accomplish its missions using
alternatives, based on demonstrated technology, design, and
knowledge;
(6) reasonable cost and schedule estimates have been
developed to execute the product development and production
plan for the technology;
(7) funding is available to execute the product development
and production plan for the technology; and
(8) the technology complies with all relevant policies,
regulations, and directives of the Coast Guard.
(b) Report to Congress.--The Commandant shall transmit a
copy of each certification required under subsection (a) to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure within 30 days after the completion of the
certification.
SEC. 5. CONTRACT REQUIREMENTS.
The Commandant shall ensure that any contract, delivery
order, or task order for procurement under, or in support of,
the Integrated Deepwater Program executed by the Coast
Guard--
(1) incorporates provisions that address the
recommendations related to award fee determination and award
term evaluation made by the Government Accountability Office
in its March, 2004, report entitled Coast Guard's Deepwater
Program Needs Increased Attention to Management and
Contractor Oversight, GAO-04-380, and any subsequent
Government Accountability Office recommendations relevant to
the contract terms issued before the date of enactment of
this Act, including that any award or incentive fee is tied
to program outcomes;
(2) provides that certification of any Integrated Deepwater
Program procurement for performance, safety, and any other
relevant factor will be conducted by an independent third
party;
(3) does not include--
(A) for any contract extending the existing Integrated
Deepwater Program contract
[[Page S3359]]
term, minimum requirements for the purchase of a given or
determinable number of specific assets;
(B) provisions that commit the Coast Guard without express
written approval by the Coast Guard;
(C) any provision allowing for equitable adjustment that
differs from the Federal Acquisition Regulations; and
(4) for any contract extending the existing Integrated
Deepwater Program contract term, is reviewed by, and
addresses recommendations made by, the Under Secretary of
Defense for Acquisition, Technology, and Logistics through
the Defense Acquisition University.
SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Commandant shall take action to
ensure that--
(1) the measures contained in the Coast Guard's report
entitled Coast Guard: Blue Print for Acquisition Reform are
implemented fully;
(2) any additional measures for improved management
recommended by the Defense Acquisition University in its
Quick Look Study of the United States Coast Guard Deepwater
Program, dated February 5, 2007, are implemented;
(3) integrated product teams, and all higher-level teams
that oversee integrated product teams, are chaired by Coast
Guard personnel; and
(4) the Assistant Commandant for Engineering and Logistics
is designated as the Technical Authority for all design,
engineering, and technical decisions for the Integrated
Deepwater Program.
(b) Transfer.--
(1) In general.--Section 93(a) of title 14, United States
Code, is amended--
(A) by striking ``and'' after the semicolon in paragraph
(23);
(B) by striking ``appropriate.'' in paragraph (24) and
inserting ``appropriate; and''; and
(C) by adding at the end thereof the following:
``(25) notwithstanding any other provision of law, in any
fiscal year transfer funds made available for personnel,
compensation, and benefits from the appropriation account
`Acquisition, Construction, and Improvement' to the
appropriation account `Operating Expenses' for personnel
compensation and benefits and related costs necessary to
execute new or existing procurements of the Coast Guard.''.
(2) Notification.--Within 30 days after making a transfer
under section 93(a)(25) of title 14, United States Code, the
Commandant shall notify the Senate Committee on Commerce,
Science, Transportation and Infrastructure, the Senate
Committee on Appropriations, the House Committee on
Transportation and Infrastructure, and the House Committee on
Appropriations.
SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS.
(a) Selected Acquisition Reports.--The Commandant shall
submit to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure reports on the Integrated
Deepwater Program that contain the same type of information
with respect to that Program, to the greatest extent
practicable, as the Secretary of Defense is required to
provide to the Congress under section 2432 of title 10,
United States Code, with respect to major defense procurement
programs.
(b) Unit Cost Reports.--Each Coast Guard program manager
under the Coast Guard's Integrated Deepwater Program shall
provide to the Commandant, or the Commandant's designee,
reports on the unit cost of assets acquired or modified that
are under the management or control of the Coast Guard
program manager on the same basis and containing the same
information, to the greatest extent practicable, as is
required to be included in the reports a program manager is
required to provide to the service procurement executive
designated by the Secretary of Defense under section 2433 of
title 10, United States Code, with respect to a major defense
procurement program.
(c) Reporting on Cost Overruns and Delays.--Within 30 days
after the Commandant becomes aware of a likely cost overrun
or scheduled delay, the Commandant shall transmit a report to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure that includes--
(1) a description of the known or anticipated cost overrun;
(2) a detailed explanation for such overruns;
(3) a detailed description of the Coast Guard's plans for
responding to such overrun and preventing additional
overruns; and
(4) a description of any significant delays in procurement
schedules.
SEC. 8. GAO REVIEW AND RECOMMENDATIONS.
(a) Award Fee and Award Term Criteria.--The Coast Guard may
not execute a new contract, delivery order, or task order,
nor agree to extend the term of an existing contract, with a
prime contractor for procurement under, or in support of, the
Integrated Deepwater Program until the Commandant has
consulted with the Comptroller General to ensure that the
Government Accountability Office's recommendations, in its
March, 2004, report entitled Coast Guard's Deepwater Program
Needs Increased Attention to Management and Contractor
Oversight, GAO-04-380, and any subsequent Government
Accountability Office recommendations issued before the date
of enactment of this Act, with respect to award fee and award
term criteria have been fully addressed.
(b) Other Recommendations.--The Commandant shall ensure
that all other recommendations in that report, and any
subsequent recommendations issued before the date of
enactment of this Act, are implemented to the maximum extent
practicable by the Coast Guard within 1 year after the date
of enactment of this Act. The Commandant shall report to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure on the Coast Guard's progress in implementing
such recommendations.
(c) GAO Reports on Implementation.--Beginning 6 months
after the date of enactment of this Act, the Comptroller
General shall submit an annual report to the Senate Committee
on Commerce, Science, and Transportation and the House of
Representatives Committee on Transportation and
Infrastructure on the Coast Guard's progress in implementing
the Government Accountability Office's recommendations, in
its March, 2004, report entitled Coast Guard's Deepwater
Program Needs Increased Attention to Management and
Contractor Oversight, GAO-04-380, and any subsequent
Government Accountability Office recommendations issued
before the date of enactment of this Act, in carrying out
this Act.
SEC. 9. DEFINITIONS.
In this Act:
(1) Commandant.--The term ``Commandant'' means the
Commandant of the United States Coast Guard.
(2) Integrated deepwater program.--The term ``Integrated
Deepwater Program'' means the Integrated Deepwater Systems
Program described by the Coast Guard in its Report to
Congress on Revised Deepwater Implementation Plan, dated
March 25, 2005, including any subsequent modifications,
revisions, or restatements of the Program.
(3) Procurement.--The term ``procurement'' includes
development, production, sustainment, modification,
conversion, and missionization.
Ms. SNOWE. Mr. President, today I rise to support introduction of the
Integrated Deepwater Reform Act.
Since 1790, the United States Coast Guard has served as the guardian
of our shores. It began its service to the Nation as a lifesaving
organization, protecting our mariners from the perils of the sea. Over
time, its missions have come to encompass additional responsibilities
including performing drug and migrant interdiction, enforcing fisheries
regulations, and maintaining our Nation's waterways and aids to
navigation. Following the tragic events of September 11th, 2001, the
Coast Guard expanded its role in homeland security operations, becoming
the agency charged with protecting our Nation from maritime threats.
Though we have expanded the role of this valiant service, we have not
upgraded its equipment to the degree necessary to carry out the tasks
it has been assigned. Current Coast Guard vessels comprise the third
oldest naval fleet in the world. Some of its cutters still in service
are over sixty years old. Recognizing the looming obsolescence of its
legacy fleet, in the mid 1990s the Coast Guard embarked on an effort to
create a wholly integrated system of ships, aircraft, sensors, and
communications systems and called the effort Deepwater. Recapitalizing
the Coast Guard remains one of this Nation's most important National
Security initiatives.
However, recent events have made it clear that additional
Congressional oversight is warranted for this major acquisitions
program. Failure of the 123-foot patrol boat conversion program, and
questions about the fatigue life of the hull of the National Security
Cutter under the purview of Integrated Coast Guard Systems have called
into question the value of this ``lead systems integrator.'' The
contract as written has given the contractor too much autonomy and not
enough focus on actual performance.
By placing restrictions on the structure of any agreements between
the Coast Guard and its contractors, this bill will ensure that future
Deepwater contracts protect the American taxpayer while allowing the
Coast Guard to acquire the assets necessary to carry out its critical
responsibilities. We cannot change the simple fact that in order to
protect our Nation, the Coast Guard must be able to upgrade its
existing assets. The safety of the brave men and women who serve in the
Coast Guard, and the security of every American depends on the success
of this program.
[[Page S3360]]
I remain convinced that the Integrated Deepwater Program is the
appropriate vehicle for the Coast Guard's modernization. However, in
order for the Coast Guard to receive the best assets at the best value
for the American taxpayer, Congress must ensure that the service and
the contractors recognizes their joint commitment to both excellence
and fiscal responsibility. By limiting the use of a lead systems
integrator, increasing requirements for open competition, requiring
additional internal Coast Guard management, and increasing reporting
requirements to Congress, this bill provides that assurance.
I am proud to add this bill to my record of Coast Guard oversight. I
also would like to take this opportunity to thank Senator Cantwell for
all her hard work on this legislation.
______
By Mr. NELSON of Florida (for himself and Mr. Martinez):
S. 926. A bill to amend the Internal Revenue Code of 1986 to provide
for the creation of disaster protection funds By property and casualty
insurance companies for the payment of policyholders' claims arising
from future catastrophic events; to the Committee on Finance.
______
By Mr. NELSON of Florida (for himself and Mr. Martinez):
S. 927. A bill to amend the Internal Revenue Code of 1986 to create
Catastrophe Savings Accounts; to the Committee on Finance.
______
By Mr. NELSON of Florida (for himself and Mr. Martinez):
S. 928. A bill to establish a program to provide more protection at
lower cost through a national backstop for State natural catastrophe
insurance programs to help the United States better prepare for and
protect its citizens against the ravages of natural catastrophes, to
encourage and promote mitigation and prevention for, and recovery and
rebuilding from such catastrophes, to better assist in the financial
recovery from such catastrophes, and to develop a rigorous process of
continuous improvement; to the Committee on Banking, Housing, and Urban
Affairs.
______
By Mr. MARTINEZ (for himself, Mr. Nelson of Florida):
S. 929. A bill to streamline the regulation of nonadmitted insurance
and reinsurance, and for other purposes; to the Committee on Banking,
Housing, and Urban Affairs.
______
By Mr. MARTINEZ (for himself and Mr. Nelson of Florida):
S. 930. A bill to amend the Internal Revenue Code of 1986 to provide
a credit against tax for hurricane and tornado mitigation expenditures;
to the Committee on Finance.
______
By Mr. MARTINEZ (for himself, Mr. Nelson of Florida, Mrs. Dole,
and Ms. Landrieu):
S. 931. bill to establish the National Hurricane Research Initiative
to improve hurricane preparedness, and for other purposes; to the
Committee on Commerce, Science, and Transportation.
Mr. NELSON of Florida. Mr. President, I am pleased to be joined by my
colleague Senator Mel Martinez as we introduce a package of bills aimed
at providing a comprehensive solution to strengthen our Nation's
property and casualty insurance market. Without serious reform, the
Federal Government will be forced to continue to spend billions of
dollars of taxpayer money to cover the costs of natural disasters in
the United States. Worse, without Federal action, property insurance
soon will become more expensive and hard to find, preventing some
consumers from insuring their homes and businesses.
As we know all too well, the last few years have brought a
devastating cycle of natural catastrophes in the United States. In 2004
and 2005, we witnessed a series of powerful hurricanes that caused
unthinkable human tragedy and property loss. Hurricanes Katrina and
Rita alone caused over $200 billion in total economic losses, including
insured and uninsured losses.
In my own home State of Florida, eight catastrophic storms in fifteen
months caused more than $31 billion in insured damages. Now Florida is
witnessing skyrocketing insurance rates, insurance companies are
canceling hundreds of thousands of policies, and Florida's State
catastrophe fund is depleted.
In short, the inability of our private markets to fully handle the
fallout from natural disasters has made our Nation's property and
casualty insurance marketplace unstable. This market instability
repeatedly has forced the Federal Government to absorb billions of
dollars in uninsured losses. This is a waste of taxpayer money,
especially when we know there are ways to design the system to
anticipate and plan for the financial impacts of catastrophes.
As insurance companies struggle to maintain their businesses, costs
are passed on to homeowners and small businesses in Florida and in
other States. In essence, the people who can least afford it are being
forced to bear the disproportionate share of the billions of dollars of
losses caused by natural catastrophes.
Many Floridians have seen their insurance bills double in the last
few years. As I travel around Florida, I hear repeatedly from my
constituents that they may soon be unable to afford property and
casualty insurance. That is a frightening proposition for people living
in a State where increasingly vicious hurricane seasons are predicted.
I am sure we all agree--consumers never should be put in the untenable
position of having to choose between purchasing insurance and
purchasing other necessities.
While our Nation's property and casualty insurance system is not yet
broken, it's clear that Congress needs to act now to shore up the
system. Private sector insurance is currently available to spread some
catastrophe-related losses throughout the Nation and internationally,
but most experts believe that there will be significant insurance and
reinsurance shortages. These shortages could result in future dramatic
rate increases for consumers and businesses and the unavailability of
catastrophe insurance.
Let me be clear: these issues will not just affect Florida or the
coastal States. Natural catastrophes can strike anywhere in the
country. For example, a major earthquake fault line runs through
several of our Midwestern States. We also saw firsthand the devastating
effects of a volcano eruption at Mount Saint Helens in Washington
State.
In the past few decades, major disasters have been declared in almost
every State. As I mentioned earlier, the Federal Government has
provided and will continue to provide billions of dollars and resources
to pay for these catastrophic losses, at huge costs to all American
taxpayers.
Congress has struggled with these issues for decades. Although we
have talked about these issues time and time again, nothing much has
gotten accomplished. The most notable step Congress did take was to
create a National Flood Insurance Program. But Congress needs to do
much more. It's time for a comprehensive approach to solving our
Nation's property and casualty insurance issues.
These matters are usually within the purview of the States, and I
cannot understate the importance of State-based solutions to these
insurance issues. Nonetheless, the Federal Government also has a
critical interest in ensuring appropriate and fiscally responsible risk
management of catastrophes.
For example, mortgages require reliable property insurance, and the
unavailability of reliable property insurance would make most real
estate transactions impossible. Moreover, the public health, safety,
and welfare demand that structures damaged or destroyed in catastrophes
be reconstructed as soon as possible.
In order to help protect consumers and small businesses, today I join
Senator Martinez to introduce this package of bills as part of a
comprehensive approach to fixing our troubled insurance system. Let me
summarize each of the bills and tell you how this integrated approach
makes good policy sense.
The first piece of legislation Senator Martinez and I are introducing
today is the Homeowners Protection Act of 2007. This bill is a
companion bill to legislation introduced by Florida Representatives
Brown-Waite, Buchanan, and others.
[[Page S3361]]
This bill would establish a Fund within the U.S. Department of
Treasury, which would sell Federal catastrophe insurance to State
catastrophe funds; like the fund I helped to set up in Florida. State
catastrophe funds essentially act as reinsurance mechanisms for
insurance companies who lack resources to compensate homeowners for
their losses.
Under this bill, State catastrophe funds would be eligible to
purchase reinsurance from the Federal fund at sound rates. However, a
State catastrophe fund would be prohibited from gaining access to the
Federal fund until private insurance companies and the State
catastrophe fund met their financial obligations.
Why is this good for homeowners? Because this back-up mechanism will
improve the solvency and capacity of homeowners' insurance markets,
which will reduce the chance that consumers will lose their insurance
coverage or be hit by huge premium increases.
Importantly, the Homeowners Protection Act of 2007 also recognizes
that part of the problem with our broken property and casualty
insurance system lies with outdated building codes and mitigation
techniques. Noted insurance experts and consumer groups have been
pointing out this problem for many years. So, under the bill, the
Secretary of the Treasury would establish an expert commission to
assist States in developing mitigation, prevention, recovery, and
rebuilding programs that would reduce the types of enormous damage we
have seen caused by past hurricanes.
I note that this bill covers not just hurricanes, but catastrophes
such as tornados, earthquakes, cyclones, catastrophic winter storms,
and volcanic eruptions. These are disasters that can--and do--occur in
many different States. Again, every State and every taxpayer is
affected by this problem, not just Florida.
This bill has widespread support from a broad range of stakeholders,
including ProtectingAmerica.org, a national coalition of first
responders, businesses, and emergency managers. This organization is
co-chaired by former FEMA director James Lee Witt, one of the most
respected names in disaster prevention and preparedness.
The second bill that Senator Martinez and I are introducing today is
the Catastrophic Savings Accounts Act of 2007. This bill proposes
changing the Federal tax code to allow homeowners to put money aside--
on a tax-free basis--to grow over time. If and when a catastrophe hits,
a homeowner could take the accumulated savings out of the account to
cover uninsured losses, deductible expenses, and building upgrades to
mitigate damage that could be caused in future disasters. Homeowners
could even reduce their insurance premiums because their tax-free
savings would allow them to choose higher deductibles.
The benefits of this approach are pretty straightforward and very
consumer friendly. Homeowners would be encouraged to plan in advance
for future disasters, and they wouldn't be taxed to do it. Moreover,
homeowners wouldn't be as dependent on insurance companies to help them
out immediately after a disaster. As one expert has noted, why should a
consumer continue to give insurance companies thousands of dollars each
year when the consumer could deposit the same amount of money annually
in a tax-free, interest-bearing savings account controlled by the
consumer?
The third bill that Senator Martinez and I are introducing today is
the Policyholder Disaster Protection Act of 2007. Under this bill,
insurance companies would be permitted to accumulate tax-deferred
catastrophic reserves, much like the way that homeowners would be
permitted under the bill I just discussed. Depending on their size,
insurance companies could save up to a certain capped amount, which
would grow over time.
Our current Federal tax code actually provides a disincentive for
insurance companies to accumulate reserve funds for catastrophes. Under
the current system, insurance companies can only reserve against losses
that have already occurred, instead of future losses. The United States
is the only industrialized nation that actually taxes reserves in this
way. It's time for reform, so that consumers are better protected.
Make no mistake, though--this bill is not a give-away to the
insurance companies. Instead, the Policyholder Disaster Protection Act
of 2007 would strictly regulate when and how insurance companies could
access their reserves, to make sure the money is used only for its
intended purposes.
If implemented correctly, this bill could result in approximately $15
billion worth of reserves being saved up by insurance companies, which
later could be spent to pay for policyholder claims and to keep
insurance policies available and affordable. Consumers could feel more
protected knowing that their insurance company would have the money
saved to help them out after a major disaster. Moreover, this approach
should help make the insurance market more stable and less prone to
insurers going bankrupt.
The fourth bill that Senator Martinez and I are introducing is the
Hurricane and Tornado Mitigation Investment Act of 2007. A similar bill
was introduced in the House of Representatives by Gus Bilirakis and has
eight cosponsors.
We have learned through experience that steps taken to fortify and
strengthen homes and businesses can prevent damage in the event of a
catastrophe. This bill would allow a tax credit of 25 percent not to
exceed $5,000 for the costs of building upgrades to mitigate damage
caused by hurricanes or tornados.
Updates and improvements to roofs, exterior doors and garages would
be covered under this bill. To ensure that these measures are
adequately constructed, a state-certified inspector must examine the
home or business. The benefits of this approach are straightforward--
home and business owners would be encouraged to plan in advance for
future disasters and take steps to mitigate damage caused by
catastrophic events.
The fifth bill that Senator Martinez and I are introducing is the
Nonadmitted and Reinsurance Reform Act of 2007. Last year, a similar
bill, introduced by Ginny Brown-Waite passed unanimously in the House
of Representatives.
Currently, a small percentage of consumers may be unable to find
insurance from a licensed insurer, and may be able to purchase
insurance from non-licensed insurers, called nonadmitted or surplus
lines insurers. These surplus lines insurers often function as a
``safety valve'' for the insurance market. Florida has more individuals
in the surplus lines market than any other State.
Virtually every sector--insurers, producers, consumers--has voiced
concern with the inefficient patchwork of different laws and
regulations that characterize the surplus lines regulatory system. This
bill aims to streamline regulations in the surplus lines marketplace
through a mix of national standards with State enforcement and
uniformity achieved through both incentives and preemption of certain
State laws. This bill would create a more efficient and streamlined
regulatory system and promote competition in the nonadmitted
marketplace.
The sixth bill that Senator Martinez and I are introducing is the
National Hurricane Research Initiative Act of 2007. From the storms of
2004 and 2005 we learned the importance of accurate hurricane tracking
and prediction. Accurate prediction provides residents of coastal
communities more time to find safe and sound shelter.
The objective of this bill is to enhance and improve knowledge of
hurricanes by harnessing the expertise of the Federal Government's
science professionals to better understand hurricane prediction,
intensity, and mitigation on coastal populations and infrastructure.
Let me emphasize again what we need to accomplish to reform our
current insurance system and to effectively plan for catastrophic
losses.
We need a comprehensive approach that will make sure the United
States is truly prepared for the financial fallout from natural
disasters. We need a property and casualty insurance system that is not
forced to spread valuable taxpayer dollars after a catastrophe strikes.
We need a system that protects consumers and small businesses from
losing their insurance policies or being forced to pay exorbitant
insurance rates. We need ways to encourage responsible construction and
mitigation techniques. And we need a
[[Page S3362]]
system that helps insurance companies use their resources in cost-
effective ways so that they will not go insolvent after major
disasters.
Our American economy depends on a health property and casualty
insurance system. By enacting meaningful reforms, we can ensure that
our economy remains protected and remains the most resilient economy in
the world. I know this complicated process won't be easy for us--but
let's roll up our shirtsleeves and get it done.
I request that the text of the Homeowners Protection Act of 2007, the
Catastrophe Savings Accounts Act and the Policyholder Disaster
Protection Act of 2007 be printed in the Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:
S. 926
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 ``Policyholder Disaster
Protection Act of 2007''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Rising costs resulting from natural disasters are
placing an increasing strain on the ability of property and
casualty insurance companies to assure payment of homeowners'
claims and other insurance claims arising from major natural
disasters now and in the future.
(2) Present tax laws do not provide adequate incentives to
assure that natural disaster insurance is provided or, where
such insurance is provided, that funds are available for
payment of insurance claims in the event of future
catastrophic losses from major natural disasters, as present
law requires an insurer wishing to accumulate surplus assets
for this purpose to do so entirely from its after-tax
retained earnings.
(3) Revising the tax laws applicable to the property and
casualty insurance industry to permit carefully controlled
accumulation of pretax dollars in separate reserve funds
devoted solely to the payment of claims arising from future
major natural disasters will provide incentives for property
and casualty insurers to make natural disaster insurance
available, will give greater protection to the Nation's
homeowners, small businesses, and other insurance consumers,
and will help assure the future financial health of the
Nation's insurance system as a whole.
(4) Implementing these changes will reduce the possibility
that a significant portion of the private insurance system
would fail in the wake of a major natural disaster and that
governmental entities would be required to step in to provide
relief at taxpayer expense.
SEC. 3. CREATION OF POLICYHOLDER DISASTER PROTECTION FUNDS;
CONTRIBUTIONS TO AND DISTRIBUTIONS FROM FUNDS;
OTHER RULES.
(a) Contributions to Policyholder Disaster Protection
Funds.--Subsection (c) of section 832 of the Internal Revenue
Code of 1986 (relating to the taxable income of insurance
companies other than life insurance companies) is amended by
striking ``and'' at the end of paragraph (12), by striking
the period at the end of paragraph (13) and inserting ``;
and'', and by adding at the end the following new paragraph:
``(14) the qualified contributions to a policyholder
disaster protection fund during the taxable year.''.
(b) Distributions From Policyholder Disaster Protection
Funds.--Paragraph (1) of section 832(b) of such Code 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 adding at the end the following
new subparagraph:
``(F) the amount of any distributions from a policyholder
disaster protection fund during the taxable year, except that
a distribution made to return to the qualified insurance
company any contribution which is not a qualified
contribution (as defined in subsection (h)) for a taxable
year shall not be included in gross income if such
distribution is made prior to the filing of the tax return
for such taxable year.''.
(c) Definitions and Other Rules Relating to Policyholder
Disaster Protection Funds.--Section 832 of such Code
(relating to insurance company taxable income) is amended by
adding at the end the following new subsection:
``(h) Definitions and Other Rules Relating to Policyholder
Disaster Protection Funds.--For purposes of this section--
``(1) Policyholder disaster protection fund.--The term
`policyholder disaster protection fund' (hereafter in this
subsection referred to as the `fund') means any custodial
account, trust, or any other arrangement or account--
``(A) which is established to hold assets that are set
aside solely for the payment of qualified losses, and
``(B) under the terms of which--
``(i) the assets in the fund are required to be invested in
a manner consistent with the investment requirements
applicable to the qualified insurance company under the laws
of its jurisdiction of domicile,
``(ii) the net income for the taxable year derived from the
assets in the fund is required to be distributed no less
frequently than annually,
``(iii) an excess balance drawdown amount is required to be
distributed to the qualified insurance company no later than
the close of the taxable year following the taxable year for
which such amount is determined,
``(iv) a catastrophe drawdown amount may be distributed to
the qualified insurance company if distributed prior to the
close of the taxable year following the year for which such
amount is determined,
``(v) a State required drawdown amount may be distributed,
and
``(vi) no distributions from the fund are required or
permitted other than the distributions described in clauses
(ii) through (v) and the return to the qualified insurance
company of contributions that are not qualified
contributions.
``(2) Qualified insurance company.--The term `qualified
insurance company' means any insurance company subject to tax
under section 831(a).
``(3) Qualified contribution.--The term `qualified
contribution' means a contribution to a fund for a taxable
year to the extent that the amount of such contribution, when
added to the previous contributions to the fund for such
taxable year, does not exceed the excess of--
``(A) the fund cap for the taxable year, over
``(B) the fund balance determined as of the close of the
preceding taxable year.
``(4) Excess balance drawdown amounts.--The term `excess
balance drawdown amount' means the excess (if any) of--
``(A) the fund balance as of the close of the taxable year,
over
``(B) the fund cap for the following taxable year.
``(5) Catastrophe drawdown amount.--
``(A) In general.--The term `catastrophe drawdown amount'
means an amount that does not exceed the lesser of the amount
determined under subparagraph (B) or (C).
``(B) Net losses from qualifying events.--The amount
determined under this subparagraph shall be equal to the
qualified losses for the taxable year determined without
regard to clause (ii) of paragraph (8)(A).
``(C) Gross losses in excess of threshold.--The amount
determined under this subparagraph shall be equal to the
excess (if any) of--
``(i) the qualified losses for the taxable year, over
``(ii) the lesser of--
``(I) the fund cap for the taxable year (determined without
regard to paragraph (9)(E)), or
``(II) 30 percent of the qualified insurance company's
surplus as regards policyholders as shown on the company's
annual statement for the calendar year preceding the taxable
year.
``(D) Special drawdown amount following a recent
catastrophe loss year.--If for any taxable year included in
the reference period the qualified losses exceed the amount
determined under subparagraph (C)(ii), the `catastrophe
drawdown amount' shall be an amount that does not exceed the
lesser of the amount determined under subparagraph (B) or the
amount determined under this subparagraph. The amount
determined under this subparagraph shall be an amount equal
to the excess (if any) of--
``(i) the qualified losses for the taxable year, over
``(ii) the lesser of--
``(I) \1/3\ of the fund cap for the taxable year
(determined without regard to paragraph (9)(E)), or
``(II) 10 percent of the qualified insurance company's
surplus as regards policyholders as shown on the company's
annual statement for the calendar year preceding the taxable
year.
``(E) Reference period.--For purposes of subparagraph (D),
the reference period shall be determined under the following
table:
The reference period shall be--in--
The 3 preceding taxable years. ........................................
The 2 preceding taxable years. ........................................
The preceding taxable year. ...........................................
No reference period applies............................................
``(6) State required drawdown amount.--The term `State
required drawdown amount' means any amount that the
department of insurance for the qualified insurance company's
jurisdiction of domicile requires to be distributed from the
fund, to the extent such amount is not otherwise described in
paragraph (4) or (5).
``(7) Fund balance.--The term `fund balance' means--
``(A) the sum of all qualified contributions to the fund,
``(B) less any net investment loss of the fund for any
taxable year or years, and
``(C) less the sum of all distributions under clauses (iii)
through (v) of paragraph (1)(B).
``(8) Qualified losses.--
``(A) In general.--The term `qualified losses' means, with
respect to a taxable year--
``(i) the amount of losses and loss adjustment expenses
incurred in the qualified lines of business specified in
paragraph (9), net of reinsurance, as reported in the
qualified insurance company's annual statement for the
taxable year, that are attributable to one or more qualifying
events (regardless of when such qualifying events occurred),
``(ii) the amount by which such losses and loss adjustment
expenses attributable to
[[Page S3363]]
such qualifying events have been reduced for reinsurance
received and recoverable, plus
``(iii) any nonrecoverable assessments, surcharges, or
other liabilities that are borne by the qualified insurance
company and are attributable to such qualifying events.
``(B) Qualifying event.--For purposes of subparagraph (A),
the term `qualifying event' means any event that satisfies
clauses (i) and (ii).
``(i) Event.--An event satisfies this clause if the event
is 1 or more of the following:
``(I) Windstorm (hurricane, cyclone, or tornado).
``(II) Earthquake (including any fire following).
``(III) Winter catastrophe (snow, ice, or freezing).
``(IV) Fire.
``(V) Tsunami.
``(VI) Flood.
``(VII) Volcanic eruption.
``(VIII) Hail.
``(ii) Catastrophe designation.--An event satisfies this
clause if the event--
``(I) is designated a catastrophe by Property Claim
Services or its successor organization,
``(II) is declared by the President to be an emergency or
disaster, or
``(III) is declared to be an emergency or disaster in a
similar declaration by the chief executive official of a
State, possession, or territory of the United States, or the
District of Columbia.
``(9) Fund cap.--
``(A) In general.--The term `fund cap' for a taxable year
is the sum of the separate lines of business caps for each of
the qualified lines of business specified in the table
contained in subparagraph (C) (as modified under
subparagraphs (D) and (E)).
``(B) Separate lines of business cap.--For purposes of
subparagraph (A), the separate lines of business cap, with
respect to a qualified line of business specified in the
table contained in subparagraph (C), is the product of--
``(i) net written premiums reported in the annual statement
for the calendar year preceding the taxable year in such line
of business, multiplied by
``(ii) the fund cap multiplier applicable to such qualified
line of business.
``(C) Qualified lines of business and their respective fund
cap multipliers.--For purposes of this paragraph, the
qualified lines of business and fund cap multipliers
specified in this subparagraph are those specified in the
following table:
``Line of Business on Annual Fund Cap
Statement Blank: Multiplier:
Fire...................................................... 0.25
Allied.................................................... 1.25
Farmowners Multiple Peril................................. 0.25
Homeowners Multiple Peril................................. 0.75
Commercial Multi Peril (non-liability portion)............ 0.50
Earthquake................................................13.00
Inland Marine.............................................. 0.25.
``(D) Subsequent modifications of the annual statement
blank.--If, with respect to any taxable year beginning after
the effective date of this subsection, the annual statement
blank required to be filed is amended to replace, combine, or
otherwise modify any of the qualified lines of business
specified in subparagraph (C), then for such taxable year
subparagraph (C) shall be applied in a manner such that the
fund cap shall be the same amount as if such reporting
modification had not been made.
``(E) 20-year phase-in.--Notwithstanding subparagraph (C),
the fund cap for a taxable year shall be the amount
determined under subparagraph (C), as adjusted pursuant to
subparagraph (D) (if applicable), multiplied by the phase-in
percentage indicated in the following table:
------------------------------------------------------------------------
Phase-in
percentage to be
applied to fund
Taxable year beginning in: cap computed
under
subparagraphs (A)
and (B):
------------------------------------------------------------------------
2007................................................. 5 percent
2008................................................. 10 percent
2009................................................. 15 percent
2010................................................. 20 percent
2011................................................. 25 percent
2012................................................. 30 percent
2013................................................. 35 percent
2014................................................. 40 percent
2015................................................. 45 percent
2016................................................. 50 percent
2017................................................. 55 percent
2018................................................. 60 percent
2019................................................. 65 percent
2020................................................. 70 percent
2021................................................. 75 percent
2022................................................. 80 percent
2023................................................. 85 percent
2024................................................. 90 percent
2025................................................. 95 percent
2026 and later....................................... 100 percent
------------------------------------------------------------------------
``(10) Treatment of investment income and gain or loss.--
``(A) Contributions in kind.--A transfer of property other
than money to a fund shall be treated as a sale or exchange
of such property for an amount equal to its fair market value
as of the date of transfer, and appropriate adjustment shall
be made to the basis of such property. Section 267 shall
apply to any loss realized upon such a transfer.
``(B) Distributions in kind.--A transfer of property other
than money by a fund to the qualified insurance company shall
not be treated as a sale or exchange or other disposition of
such property. The basis of such property immediately after
such transfer shall be the greater of the basis of such
property immediately before such transfer or the fair market
value of such property on the date of such transfer.
``(C) Income with respect to fund assets.--Items of income
of the type described in paragraphs (1)(B), (1)(C), and (2)
of subsection (b) that are derived from the assets held in a
fund, as well as losses from the sale or other disposition of
such assets, shall be considered items of income, gain, or
loss of the qualified insurance company. Notwithstanding
paragraph (1)(F) of subsection (b), distributions of net
income to the qualified insurance company pursuant to
paragraph (1)(B)(ii) of this subsection shall not cause such
income to be taken into account a second time.
``(11) Net income; net investment loss.--For purposes of
paragraph (1)(B)(ii), the net income derived from the assets
in the fund for the taxable year shall be the items of income
and gain for the taxable year, less the items of loss for the
taxable year, derived from such assets, as described in
paragraph (10)(C). For purposes of paragraph (7), there is a
net investment loss for the taxable year to the extent that
the items of loss described in the preceding sentence exceed
the items of income and gain described in the preceding
sentence.
``(12) Annual statement.--For purposes of this subsection,
the term `annual statement' shall have the meaning set forth
in section 846(f)(3).
``(13) Exclusion of premiums and losses on certain puerto
rican risks.--Notwithstanding any other provision of this
subsection, premiums and losses with respect to risks covered
by a catastrophe reserve established under the laws or
regulations of the Commonwealth of Puerto Rico shall not be
taken into account under this subsection in determining the
amount of the fund cap or the amount of qualified losses.
``(14) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection, including regulations--
``(A) which govern the application of this subsection to a
qualified insurance company having a taxable year other than
the calendar year or a taxable year less than 12 months,
``(B) which govern a fund maintained by a qualified
insurance company that ceases to be subject to this part, and
``(C) which govern the application of paragraph (9)(D).''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
____
S. 927
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 ``Catastrophe Savings Accounts
Act of 2007''.
SEC. 2. CATASTROPHE SAVINGS 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--CATASTROPHE SAVINGS ACCOUNTS
``SEC. 530A. CATASTROPHE SAVINGS ACCOUNTS.
``(a) General Rule.--A Catastrophe Savings Account shall be
exempt from taxation 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) Catastrophe Savings Account.--For purposes of this
section, the term `Catastrophe Savings Account' means a trust
created or organized in the United States for the exclusive
benefit of an individual or his beneficiaries and which is
designated (in such manner as the Secretary shall prescribe)
at the time of the establishment of the trust as a
Catastrophe Savings 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--
``(A) no contribution will be accepted unless it is in
cash, and
``(B) contributions will not be accepted in excess of the
account balance limit specified in subsection (c).
``(2) The trustee is a bank (as defined in section 408(n))
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.
``(3) The interest of an individual in the balance of his
account is nonforfeitable.
``(4) The assets of the trust shall not be commingled with
other property except in a common trust fund or common
investment fund.
``(c) Account Balance Limit.--The aggregate account balance
for all Catastrophe Savings Accounts maintained for the
benefit of an individual (including qualified rollover
contributions) shall not exceed--
``(1) in the case of an individual whose qualified
deductible is not more than $1,000, $2,000, and
[[Page S3364]]
``(2) in the case of an individual whose qualified
deductible is more than $1,000, the amount equal to the
lesser of--
``(A) $15,000, or
``(B) twice the amount of the individual's qualified
deductible.
``(d) Definitions.--For purposes of this section--
``(1) Qualified catastrophe expenses.--The term `qualified
catastrophe expenses' means expenses paid or incurred by
reason of a major disaster that has been declared by the
President under section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act.
``(2) Qualified deductible.--With respect to an individual,
the term `qualified deductible' means the annual deductible
for the individual's homeowners' insurance policy.
``(3) Qualified rollover contribution.--The term `qualified
rollover contribution' means a contribution to a Catastrophe
Savings Account--
``(A) 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
``(B) from a Catastrophe Savings 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 Catastrophe
Savings Account shall be includible in the gross income of
the distributee in the manner as provided in section 72.
``(2) Distributions for qualified catastrophe expenses.--
``(A) In general.--No amount shall be includible in gross
income under paragraph (1) if the qualified catastrophe
expenses of the distributee during the taxable year are not
less than the aggregate distributions during the taxable
year.
``(B) Distributions in excess of expenses.--If such
aggregate distributions exceed such expenses during the
taxable year, the amount otherwise includible in gross income
under paragraph (1) shall be reduced by the amount which
bears the same ratio to the amount which would be includible
in gross income under paragraph (1) (without regard to this
subparagraph) as the qualified catastrophe expenses bear to
such aggregate distributions.
``(3) Additional tax for distributions not used for
qualified catastrophe expenses.--The tax imposed by this
chapter for any taxable year on any taxpayer who receives a
payment or distribution from a Catastrophe Savings Account
which is includible in gross income shall be increased by 10
percent of the amount which is so includible.
``(4) Retirement distributions.--No amount shall be
includible in gross income under paragraph (1) (or subject to
an additional tax under paragraph (3)) if the payment or
distribution is made on or after the date on which the
distributee attains age 62.
``(f) Tax Treatment of Accounts.--Rules similar to the
rules of paragraphs (2) and (4) of section 408(e) shall apply
to any Catastrophe Savings Account.''.
(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 Catastrophe Savings Account (as defined in section
530A),''.
(2) Excess contribution.--Section 4973 of such Code is
amended by adding at the end the following new subsection:
``(h) Excess Contributions to Catastrophe Savings
Accounts.--For purposes of this section, in the case of
Catastrophe Savings Accounts (within the meaning of section
530A), the term `excess contributions' means the amount by
which the aggregate account balance for all Catastrophe
Savings Accounts maintained for the benefit of an individual
exceeds the account balance limit defined in section
530A(c)(1).''.
(c) 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. Catastrophe Savings Accounts''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
____
S. 928
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 ``Homeowners
Protection Act of 2007''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings.
Sec. 3. National Commission on Catastrophe Preparation and Protection.
Sec. 4. Program authority.
Sec. 5. Qualified lines of coverage.
Sec. 6. Covered perils.
Sec. 7. Contracts for reinsurance coverage for eligible State programs.
Sec. 8. Minimum level of retained losses and maximum Federal liability.
Sec. 9. Consumer Hurricane, Earthquake, Loss Protection (HELP) Fund.
Sec. 10. Regulations.
Sec. 11. Termination.
Sec. 12. Annual study concerning benefits of the Act.
Sec. 13. GAO study of the National Flood Insurance Program and
hurricane-related flooding.
Sec. 14. Definitions.
SEC. 2. FINDINGS.
Congress finds that--
(1) America needs to take steps to be better prepared for
and better protected from catastrophes;
(2) the hurricane seasons of 2004 and 2005 are startling
reminders of both the human and economic devastation that
hurricanes, flooding, and other natural disasters can cause;
(3) if a repeat of the deadly 1900 Galveston hurricane
occurred again it could cause thousands of deaths and over
$36,000,000,000 in loss;
(4) if the 1906 San Francisco earthquake occurred again it
could cause thousands of deaths, displace millions of
residents, destroy thousands of businesses, and cause over
$400,000,000,000 in loss;
(5) if a Category 5 hurricane were to hit Miami it could
cause thousands of deaths and over $50,000,000,000 in loss
and devastate the local and national economy;
(6) if a repeat of the 1938 ``Long Island Express'' were to
occur again it could cause thousands of deaths and over
$30,000,000,000 in damage, and if a hurricane that strong
were to directly hit Manhattan it could cause over
$150,000,000,000 in damage and cause irreparable harm to our
Nation's economy;
(7) a more comprehensive and integrated approach to dealing
with catastrophes is needed;
(8) using history as a guide, natural catastrophes will
inevitably place a tremendous strain on homeowners' insurance
markets in many areas, will raise costs for consumers, and
will jeopardize the ability of many consumers to adequately
insure their homes and possessions;
(9) the lack of sufficient insurance capacity and the
inability of private insurers to build enough capital, in a
short amount of time, threatens to increase the number of
uninsured homeowners, which, in turn, increases the risk of
mortgage defaults and the strain on the Nation's banking
system;
(10) some States have exercised leadership through
reasonable action to ensure the continued availability and
affordability of homeowners' insurance for all residents;
(11) it is appropriate that efforts to improve insurance
availability be designed and implemented at the State level;
(12) while State insurance programs may be adequate to
cover losses from most natural disasters, a small percentage
of events is likely to exceed the financial capacity of these
programs and the local insurance markets;
(13) a limited national insurance backstop will improve the
effectiveness of State insurance programs and private
insurance markets and will increase the likelihood that
homeowners' insurance claims will be fully paid in the event
of a large natural catastrophe and that routine claims that
occur after a mega-catastrophe will also continue to be paid;
(14) it is necessary to provide a national insurance
backstop program that will provide more protection at an
overall lower cost and that will promote stability in the
homeowners' insurance market;
(15) it is the proper role of the Federal Government to
prepare for and protect its citizens from catastrophes and to
facilitate consumer protection, victim assistance, and
recovery, including financial recovery; and
(16) any Federal reinsurance program must be founded upon
sound actuarial principles and priced in a manner that
encourages the creation of State funds and maximizes the
buying potential of these State funds and encourages and
promotes prevention and mitigation, recovery and rebuilding,
and consumer education, and emphasizes continuous analysis
and improvement.
SEC. 3. NATIONAL COMMISSION ON CATASTROPHE PREPARATION AND
PROTECTION.
(a) Establishment.--The Secretary of the Treasury shall
establish a commission to be known as the National Commission
on Catastrophe Preparation and Protection.
(b) Duties.--The Commission shall meet for the purpose of
advising the Secretary regarding the estimated loss costs
associated with the contracts for reinsurance coverage
available under this Act and carrying out the functions
specified in this Act, including--
(1) the development and implementation of public education
concerning the risks posed by natural catastrophes;
(2) the development and implementation of prevention,
mitigation, recovery, and rebuilding standards that better
prepare and protect the United States from catastrophes; and
(3) conducting continuous analysis of the effectiveness of
this Act and recommending improvements to the Congress so
that--
(A) the costs of providing catastrophe protection are
decreased; and
(B) the United States is better prepared.
(c) Members.--
(1) Appointment and qualification.--The Commission shall
consist of 9 members, as follows:
[[Page S3365]]
(A) Homeland security member.--The Secretary of Homeland
Security or the Secretary's designee.
(B) Appointed members.--8 members appointed by the
Secretary, who shall consist of--
(i) 1 individual who is an actuary;
(ii) 1 individual who is employed in engineering;
(iii) 1 individual representing the scientific community;
(iv) 1 individual representing property and casualty
insurers;
(v) 1 individual representing reinsurers;
(vi) 1 individual who is a member or former member of the
National Association of Insurance Commissioners; and
(vii) 2 individuals who are consumers.
(2) Prevention of conflicts of interest.--Members shall
have no personal or financial interest at stake in the
deliberations of the Commission.
(d) Treatment of Non-Federal Members.--Each member of the
Commission who is not otherwise employed by the Federal
Government shall be considered a special Government employee
for purposes of sections 202 and 208 of title 18, United
States Code.
(e) Experts and Consultants.--
(1) In general.--The Commission may procure temporary and
intermittent services from individuals or groups recognized
as experts in the fields of meteorology, seismology,
vulcanlogy, geology, structural engineering, wind
engineering, and hydrology, and other fields, under section
3109(b) of title 5, United States Code, but at a rate not in
excess of the daily equivalent of the annual rate of basic
pay payable for level V of the Executive Schedule, for each
day during which the individual procured is performing such
services for the Commission.
(2) Other experts.--The Commission may also procure, and
the Congress encourages the Commission to procure, experts
from universities, research centers, foundations, and other
appropriate organizations who could study, research, and
develop methods and mechanisms that could be utilized to
strengthen structures to better withstand the perils covered
by this Act.
(f) Compensation.--
(1) In general.--Each member of the Commission who is not
an officer or employee of the Federal Government shall be
compensated at a rate of basic pay payable for level V of the
Executive Schedule, for each day (including travel time)
during which such member is engaged in the performance of the
duties of the Commission.
(2) Federal employees.--All members of the Commission who
are officers or employees of the United States shall serve
without compensation in addition to that received for their
services as officers or employees of the United States.
(g) Obtaining Data.--
(1) In general.--The Commission and the Secretary may
solicit loss exposure data and such other information as
either the Commission or the Secretary deems necessary to
carry out its responsibilities from governmental agencies and
bodies and organizations that act as statistical agents for
the insurance industry.
(2) Obligation to keep confidential.--The Commission and
the Secretary shall take such actions as are necessary to
ensure that information that either deems confidential or
proprietary is disclosed only to authorized individuals
working for the Commission or the Secretary.
(3) Failure to comply.--No State insurance or reinsurance
program may participate if any governmental agency within
that State has refused to provide information requested by
the Commission or the Secretary.
(h) Funding.--
(1) Authorization of appropriations.--There is authorized
to be appropriated--
(A) $10,000,000 for fiscal year 2008 for the--
(i) initial expenses in establishing the Commission; and
(ii) initial activities of the Commission that cannot
timely be covered by amounts obtained pursuant to section
7(b)(6)(B)(iii), as determined by the Secretary;
(B) such additional sums as may be necessary to carry out
subsequent activities of the Commission;
(C) $10,000,000 for fiscal year 2008 for the initial
expenses of the Secretary in carrying out the program
authorized under section 4; and
(D) such additional sums as may be necessary to carry out
subsequent activities of the Secretary under this Act.
(2) Offset.--
(A) Obtained from purchasers.--The Secretary shall provide,
to the maximum extent practicable, that an amount equal to
any amount appropriated under paragraph (1) is obtained from
purchasers of reinsurance coverage under this Act and
deposited in the Fund established under section 9.
(B) Inclusion in pricing contracts.--Any offset obtained
under subparagraph (A) shall be obtained by inclusion of a
provision for the Secretary's and the Commission's expenses
incorporated into the pricing of the contracts for such
reinsurance coverage, pursuant to section 7(b)(6)(B)(iii).
(i) Termination.--The Commission shall terminate upon the
effective date of the repeal under section 11(c).
SEC. 4. PROGRAM AUTHORITY.
(a) In General.--The Secretary, in consultation with the
Secretary of Homeland Security, shall carry out a program
under this Act to make homeowners protection coverage
available through contracts for reinsurance coverage under
section 7, which shall be made available for purchase only by
eligible State programs.
(b) Purpose.--The program shall be designed to make
reinsurance coverage under this Act available--
(1) to improve the availability and affordability of
homeowners' insurance for the purpose of facilitating the
pooling, and spreading the risk, of catastrophic financial
losses from natural catastrophes;
(2) to improve the solvency and capacity of homeowners'
insurance markets;
(3) to encourage the development and implementation of
mitigation, prevention, recovery, and rebuilding standards;
and
(4) to recommend methods to continuously improve the way
the United States reacts and responds to catastrophes,
including improvements to the HELP Fund established under
section 9.
(c) Contract Principles.--Under the program established
under this Act, the Secretary shall offer reinsurance
coverage through contracts with covered purchasers, which
contracts shall--
(1) minimize the administrative costs of the Federal
Government; and
(2) provide coverage based solely on insured losses within
a State for the eligible State program purchasing the
contract.
SEC. 5. QUALIFIED LINES OF COVERAGE.
Each contract for reinsurance coverage made available under
this Act shall provide insurance coverage against residential
property losses to--
(1) homes (including dwellings owned under condominium and
cooperative ownership arrangements); and
(2) the contents of apartment buildings.
SEC. 6. COVERED PERILS.
(a) In General.--Each contract for reinsurance coverage
made available under this Act shall cover losses insured or
reinsured by an eligible State program purchasing the
contract that are proximately caused by--
(1) earthquakes;
(2) perils ensuing from earthquakes, including fire and
tsunamis;
(3) tropical cyclones having maximum sustained winds of at
least 74 miles per hour, including hurricanes and typhoons;
(4) tornadoes;
(5) volcanic eruptions;
(6) catastrophic winter storms; and
(7) any other natural catastrophe peril (not including any
flood) insured or reinsured under the eligible State program
for which reinsurance coverage under section 7 is provided.
(b) Rulemaking.--The Secretary shall, by regulation, define
the natural catastrophe perils described in subsection
(a)(7).
SEC. 7. CONTRACTS FOR REINSURANCE COVERAGE FOR ELIGIBLE STATE
PROGRAMS.
(a) Eligible State Programs.--A program shall be eligible
to purchase a contract under this section for reinsurance
coverage under this Act only if the State entity authorized
to make such determinations certifies to the Secretary that
the program complies with the following requirements:
(1) Program design.--The program shall be a State-
operated--
(A) insurance program that--
(i) offers coverage for--
(I) homes (which may include dwellings owned under
condominium and cooperative ownership arrangements); and
(II) the contents of apartments to State residents; and
(ii) is authorized by State law; or
(B) reinsurance program that is designed to improve private
insurance markets that offer coverage for--
(i) homes (which may include dwellings owned under
condominium and cooperative ownership arrangements); and
(ii) the contents of apartments.
(2) Operation.--
(A) In general.--The program shall meet the following
requirements:
(i) A majority of the members of the governing body of the
program shall be public officials.
(ii) The State shall have a financial interest in the
program, which shall not include a program authorized by
State law or regulation that requires insurers to pool
resources to provide property insurance coverage for covered
perils.
(iii) The State shall not be eligible for Consumer HELP
Fund assistance under section 9 if a State has appropriated
money from the State fund and not paid it back to the State
fund, with interest.
(iv) Upon receipt of assistance from the Consumer HELP
Fund, each reimbursement contract sold by a State shall
provide for reimbursements at 100 percent of eligible losses.
(v) A State shall be required to utilize either--
(I) an open rating system that permits insurers to set
homeowners' insurance rates without prior approval of the
State; or
(II) a rate approval process that requires actuarially
sound, risk-based, self-sufficient homeowners' insurance
rates.
(B) Certification.--A State shall not be eligible for
Consumer HELP Fund assistance unless the Secretary can
certify that such State is in compliance with the requirement
described in clause (v).
(3) Tax status.--The program shall be structured and
carried out in a manner so that the program is exempt from
all Federal taxation.
(4) Coverage.--The program shall cover perils enumerated in
section 6.
[[Page S3366]]
(5) Earnings.--The program may not provide for, nor shall
have ever made, any redistribution of any part of any net
profits of the program to any insurer that participates in
the program.
(6) Prevention and mitigation.--
(A) In general.--The program shall include prevention and
mitigation provisions that require that not less $10,000,000
and not more than 35 percent of the net investment income of
the State insurance or reinsurance program be used for
programs to mitigate losses from natural catastrophes for
which the State insurance or reinsurance program was
established.
(B) Rule of construction.--For purposes of this paragraph,
prevention and mitigation shall include methods to reduce
losses of life and property, including appropriate measures
to adequately reflect--
(i) encouragement of awareness about the risk factors and
what can be done to eliminate or reduce them;
(ii) location of the risk, by giving careful consideration
of the natural risks for the location of the property before
allowing building and considerations if structures are
allowed; and
(iii) construction relative to the risk and hazards, which
act upon--
(I) State mandated building codes appropriate for the risk;
(II) adequate enforcement of the risk-appropriate building
codes;
(III) building materials that prevent or significantly
lessen potential damage from the natural catastrophes;
(IV) building methods that prevent or significantly lessen
potential damage from the natural catastrophes; and
(V) a focus on prevention and mitigation for any
substantially damaged structure, with an emphasis on how
structures can be retrofitted so as to make them building
code compliant.
(7) Requirements regarding coverage.--
(A) In general.--The program--
(i) may not, except for charges or assessments related to
post-event financing or bonding, involve cross-subsidization
between any separate property and casualty lines covered
under the program unless the elimination of such activity in
an existing program would negatively impact the eligibility
of the program to purchase a contract for reinsurance
coverage under this Act pursuant to paragraph (3);
(ii) shall include provisions that authorize the State
insurance commissioner or other State entity authorized to
make such a determination to terminate the program if the
insurance commissioner or other such entity determines that
the program is no longer necessary to ensure the availability
of homeowners' insurance for all residents of the State; and
(iii) shall provide that, for any insurance coverage for
homes (which may include dwellings owned under condominium
and cooperative ownership arrangements) and the contents of
apartments that is made available under the State insurance
program and for any reinsurance coverage for such insurance
coverage made available under the State reinsurance program,
the premium rates charged shall be amounts that, at a
minimum, are sufficient to cover the full actuarial costs of
such coverage, based on consideration of the risks involved
and accepted actuarial and rate making principles,
anticipated administrative expenses, and loss and loss-
adjustment expenses.
(B) Applicability.--This paragraph shall apply--
(i) before the expiration of the 2-year period beginning on
the date of the enactment of this Act, only to State programs
which, after January 1, 2008, commence offering insurance or
reinsurance coverage described in subparagraph (A) or (B),
respectively, of paragraph (1); and
(ii) after the expiration of such period, to all State
programs.
(8) Other qualifications.--
(A) Regulations.--
(i) Compliance.--The State program shall (for the year for
which the coverage is in effect) comply with regulations that
shall be issued under this paragraph by the Secretary, in
consultation with the National Commission on Catastrophe
Preparation and Protection established under section 3.
(ii) Criteria.--The regulations issued under clause (i)
shall establish criteria for State programs to qualify to
purchase reinsurance under this section, which are in
addition to the requirements under the other paragraphs of
this subsection.
(B) Contents.--The regulations issued under subparagraph
(A)(i) shall include requirements that--
(i) the State program shall have public members on its
board of directors or have an advisory board with public
members;
(ii) the State program provide adequate insurance or
reinsurance protection, as applicable, for the peril covered,
which shall include a range of deductibles and premium costs
that reflect the applicable risk to eligible properties;
(iii) insurance or reinsurance coverage, as applicable,
provided by the State program is made available on a
nondiscriminatory basis to all qualifying residents;
(iv) any new construction, substantial rehabilitation, and
renovation insured or reinsured by the program complies with
applicable State or local government building, fire, and
safety codes;
(v) the State, or appropriate local governments within the
State, have in effect and enforce nationally recognized model
building, fire, and safety codes and consensus-based
standards that offer risk responsive resistance that is
substantially equivalent or greater than the resistance to
earthquakes or high winds;
(vi) the State has taken actions to establish an insurance
rate structure that takes into account measures to mitigate
insurance losses;
(vii) there are in effect, in such State, laws or
regulations sufficient to prohibit price gouging, during the
term of reinsurance coverage under this Act for the State
program in any disaster area located within the State; and
(viii) the State program complies with such other
requirements that the Secretary considers necessary to carry
out the purposes of this Act.
(b) Terms of Contracts.--Each contract under this section
for reinsurance coverage under this Act shall be subject to
the following terms and conditions:
(1) Maturity.--The term of the contract shall not exceed 1
year or such longer term as the Secretary may determine.
(2) Payment condition.--The contract shall authorize claims
payments for eligible losses only to the eligible State
program purchasing the coverage.
(3) Retained losses requirement.--For each event of a
covered peril, the contract shall make a payment for the
event only if the total amount of insurance claims for
losses, which are covered by qualified lines, occur to
properties located within the State covered by the contract,
and that result from events, exceeds the amount of retained
losses provided under the contract (pursuant to section 8(a))
purchased by the eligible State program.
(4) Multiple events.--The contract shall--
(A) cover any eligible losses from 1 or more covered events
that may occur during the term of the contract; and
(B) provide that if multiple events occur, the retained
losses requirement under paragraph (3) shall apply on a
calendar year basis, in the aggregate and not separately to
each individual event.
(5) Timing of eligible losses.--Eligible losses under the
contract shall include only insurance claims for property
covered by qualified lines that are reported to the eligible
State program within the 3-year period beginning upon the
event or events for which payment under the contract is
provided.
(6) Pricing.--
(A) Determination.--The price of reinsurance coverage under
the contract shall be an amount established by the Secretary
as follows:
(i) Recommendations.--The Secretary shall take into
consideration the recommendations of the Commission in
establishing the price, but the price may not be less than
the amount recommended by the Commission.
(ii) Fairness to taxpayers.--The price shall be established
at a level that--
(I) is designed to reflect the risks and costs being borne
under each reinsurance contract issued under this Act; and
(II) takes into consideration empirical models of natural
disasters and the capacity of private markets to absorb
insured losses from natural disasters.
(iii) Self-sufficiency.--The rates for reinsurance coverage
shall be established at a level that annually produces
expected premiums that shall be sufficient to pay the
expected annualized cost of all claims, loss adjustment
expenses, and all administrative costs of reinsurance
coverage offered under this section.
(B) Components.--The price shall consist of the following
components:
(i) Risk-based price.--A risk-based price, which shall
reflect the anticipated annualized payout of the contract
according to the actuarial analysis and recommendations of
the Commission.
(ii) Administrative costs.--A sum sufficient to provide for
the operation of the Commission and the administrative
expenses incurred by the Secretary in carrying out this Act.
(7) Information.--The contract shall contain a condition
providing that the Commission may require a State program
that is covered under the contract to submit to the
Commission all information on the State program relevant to
the duties of the Commission, as determined by the Secretary.
(8) Additional contract option.--
(A) In general.--The contract shall provide that the
purchaser of the contract may, during a term of such original
contract, purchase additional contracts from among those
offered by the Secretary at the beginning of the term,
subject to the limitations under section 8, at the prices at
which such contracts were offered at the beginning of the
term, prorated based upon the remaining term as determined by
the Secretary.
(B) Timing.--An additional contract purchased under
subparagraph (A) shall provide coverage beginning on a date
15 days after the date of purchase but shall not provide
coverage for losses for an event that has already occurred.
(9) Others.--The contract shall contain such other terms as
the Secretary considers necessary--
(A) to carry out this Act; and
(B) to ensure the long-term financial integrity of the
program under this Act.
(c) Participation by Multi-State Catastrophe Fund
Programs.--
[[Page S3367]]
(1) In general.--Nothing in this Act shall prohibit, and
this Act shall be construed to facilitate and encourage, the
creation of multi-State catastrophe insurance or reinsurance
programs, or the participation by such programs in the
program established pursuant to section 4.
(2) Regulations.--The Secretary shall, by regulation, apply
the provisions of this Act to multi-State catastrophe
insurance and reinsurance programs.
SEC. 8. MINIMUM LEVEL OF RETAINED LOSSES AND MAXIMUM FEDERAL
LIABILITY.
(a) Available Levels of Retained Losses.--In making
reinsurance coverage available under this Act, the Secretary
shall make available for purchase contracts for such coverage
that require the sustainment of retained losses from covered
perils (as required under section 7(b)(3) for payment of
eligible losses) in various amounts, as the Secretary, in
consultation with the Commission, determines appropriate and
subject to the requirements under subsection (b).
(b) Minimum Level of Retained Losses.--
(1) Contracts for state programs.--Subject to paragraphs
(3) and (4) and notwithstanding any other provision of this
Act, a contract for reinsurance coverage under section 7 for
an eligible State program that offers insurance or
reinsurance coverage described in subparagraph (A) or (B),
respectively, of section 7(a)(1), may not be made available
or sold unless the contract requires retained losses from
covered perils in the following amount:
(A) In general.--The State program shall sustain an amount
of retained losses of not less than--
(i) the claims-paying capacity of the eligible State
program, as determined by the Secretary; and
(ii) an amount, determined by the Secretary in consultation
with the Commission, that is the amount equal to the eligible
losses projected to be incurred at least once every 50 years
on an annual basis from covered perils.
(B) Transition rule for existing programs.--
(i) Claims-paying capacity.--Subject to clause (ii), in the
case of any eligible State program that was offering
insurance or reinsurance coverage on the date of the
enactment of this Act and the claims-paying capacity of which
is greater than the amount determined under subparagraph
(A)(i) but less than an amount determined for the program
under subparagraph (A)(ii), the minimum level of retained
losses applicable under this paragraph shall be the claims-
paying capacity of such State program.
(ii) Agreement.--
(I) In general.--Clause (i) shall apply to a State program
only if the program enters into a written agreement with the
Secretary providing a schedule for increasing the claims-
paying capacity of the program to the amount determined for
the program under subparagraph (A)(ii) over a period not to
exceed 5 years.
(II) Extension.--The Secretary may extend the 5-year period
under subclause (I) for not more than 5 additional 1-year
periods if the Secretary determines that losses incurred by
the State program as a result of covered perils create
excessive hardship on the State program.
(III) Consultation.--The Secretary shall consult with the
appropriate officials of the State program regarding the
required schedule and any potential 1-year extensions.
(C) Transition rule for new programs.--
(i) 50-year event.--The Secretary may provide that, in the
case of an eligible State program that, after January 1,
2008, commences offering insurance or reinsurance coverage,
during the 7-year period beginning on the date that
reinsurance coverage under section 7 is first made available,
the minimum level of retained losses applicable under this
paragraph shall be the amount determined for the State under
subparagraph (A)(i), except that such minimum level shall be
adjusted annually as provided in clause (ii) of this
subparagraph.
(ii) Annual adjustment.--Each annual adjustment under this
clause shall increase the minimum level of retained losses
applicable under this subparagraph to an eligible State
program described in clause (i) in a manner such that--
(I) during the course of such 7-year period, the applicable
minimum level of retained losses approaches the minimum level
that, under subparagraph (A)(ii), will apply to the eligible
State program upon the expiration of such period; and
(II) each such annual increase is a substantially similar
amount, to the extent practicable.
(D) Reduction because of reduced claims-paying capacity.--
(i) Authority.--Notwithstanding subparagraphs (A), (B), and
(C) or the terms contained in a contract for reinsurance
pursuant to such subparagraphs, if the Secretary determines
that the claims-paying capacity of an eligible State program
has been reduced because of payment for losses due to an
event, the Secretary may reduce the minimum level of retained
losses.
(ii) Term of reduction.--
(I) Extension.--The Secretary may extend the 5-year period
for not more than 5 additional 1-year periods if the
Secretary determines that losses incurred by the State
program as a result of covered perils create excessive
hardship on the State program.
(II) Consultation.--The Secretary shall consult with the
appropriate officials of the State program regarding the
required schedule and any potential 1-year extensions.
(E) Claims-paying capacity.--For purposes of this
paragraph, the claims-paying capacity of a State-operated
insurance or reinsurance program under section 7(a)(1) shall
be determined by the Secretary, in consultation with the
Commission, taking into consideration the claims-paying
capacity as determined by the State program, retained losses
to private insurers in the State in an amount assigned by the
State insurance commissioner, the cash surplus of the
program, and the lines of credit, reinsurance, and other
financing mechanisms of the program established by law.
(c) Maximum Federal Liability.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary may sell only contracts for reinsurance
coverage under this Act in various amounts that comply with
the following requirements:
(A) Estimate of aggregate liability.--The aggregate
liability for payment of claims under all such contracts in
any single year is unlikely to exceed $200,000,000,000 (as
such amount is adjusted under paragraph (2)).
(B) Eligible loss coverage sold.--Eligible losses covered
by all contracts sold within a State during a 12-month period
do not exceed the difference between the following amounts
(each of which shall be determined by the Secretary in
consultation with the Commission):
(i) The amount equal to the eligible loss projected to be
incurred once every 500 years from a single event in the
State.
(ii) The amount equal to the eligible loss projected to be
incurred once every 50 years from a single event in the
State.
(2) Annual adjustments.--The Secretary shall annually
adjust the amount under paragraph (1)(A) (as it may have been
previously adjusted) to provide for inflation in accordance
with an inflation index that the Secretary determines to be
appropriate.
(d) Limitation on Percentage of Risk in Excess of Retained
Losses.--
(1) In general.--The Secretary may not make available for
purchase contracts for reinsurance coverage under this Act
that would pay out more than 100 percent of eligible losses
in excess of retained losses in the case of a contract under
section 7 for an eligible State program, for such State.
(2) Payout.--For purposes of this subsection, the amount of
payout from a reinsurance contract shall be the amount of
eligible losses in excess of retained losses multiplied by
the percentage under paragraph (1).
SEC. 9. CONSUMER HURRICANE, EARTHQUAKE, LOSS PROTECTION
(HELP) FUND.
(a) Establishment.--There is established within the
Treasury of the United States a fund to be known as the
Consumer HELP Fund (in this section referred to as the
``Fund'').
(b) Credits.--The Fund shall be credited with--
(1) amounts received annually from the sale of contracts
for reinsurance coverage under this Act;
(2) any amounts borrowed under subsection (d);
(3) any amounts earned on investments of the Fund pursuant
to subsection (e); and
(4) such other amounts as may be credited to the Fund.
(c) Uses.--Amounts in the Fund shall be available to the
Secretary only for the following purposes:
(1) Contract payments.--For payments to covered purchasers
under contracts for reinsurance coverage for eligible losses
under such contracts.
(2) Commission costs.--To pay for the operating costs of
the Commission.
(3) Administrative expenses.--To pay for the administrative
expenses incurred by the Secretary in carrying out the
reinsurance program under this Act.
(4) Termination.--Upon termination under section 11, as
provided in such section.
(d) Borrowing.--
(1) Authority.--To the extent that the amounts in the Fund
are insufficient to pay claims and expenses under subsection
(c), the Secretary--
(A) may issue such obligations of the Fund as may be
necessary to cover the insufficiency; and
(B) shall purchase any such obligations issued.
(2) Public debt transaction.--For the purpose of purchasing
any such obligations under paragraph (1)--
(A) the Secretary may use as a public debt transaction the
proceeds from the sale of any securities issued under chapter
31 of title 31, United States Code; and
(B) the purposes for which such securities are issued under
such chapter are hereby extended to include any purchase by
the Secretary of such obligations under this subsection.
(3) Characteristics of obligations.--Obligations issued
under this subsection shall be in such forms and
denominations, bear such maturities, bear interest at such
rate, and be subject to such other terms and conditions, as
the Secretary shall determine.
(4) Treatment.--All redemptions, purchases, and sales by
the Secretary of obligations under this subsection shall be
treated as public debt transactions of the United States.
(5) Repayment.--Any obligations issued under this
subsection shall be--
(A) repaid including interest, from the Fund; and
[[Page S3368]]
(B) recouped from premiums charged for reinsurance coverage
provided under this Act.
(e) Investment.--If the Secretary determines that the
amounts in the Fund are in excess of current needs, the
Secretary may invest such amounts as the Secretary considers
advisable in obligations issued or guaranteed by the United
States.
(f) Prohibition of Federal Funds.--Except for amounts made
available pursuant to subsection (d) and section 3(h), no
further Federal funds shall be authorized or appropriated for
the Fund or for carrying out the reinsurance program under
this Act.
SEC. 10. REGULATIONS.
The Secretary, in consultation with the Secretary of the
Department of Homeland Security, shall issue any regulations
necessary to carry out the program for reinsurance coverage
under this Act.
SEC. 11. TERMINATION.
(a) In General.--Except as provided in subsection (b), the
Secretary may not provide any reinsurance coverage under this
Act covering any period after the expiration of the 20-year
period beginning on the date of the enactment of this Act.
(b) Extension.--If upon the expiration of the period under
subsection (a) the Secretary, in consultation with the
Commission, determines that continuation of the program for
reinsurance coverage under this Act is necessary or
appropriate to carry out the purpose of this Act under
section 4(b) because of insufficient growth of capacity in
the private homeowners' insurance market, the Secretary shall
continue to provide reinsurance coverage under this Act until
the expiration of the 5-year period beginning upon the
expiration of the period under subsection (a).
(c) Repeal.--Effective upon the date that reinsurance
coverage under this Act is no longer available or in force
pursuant to subsection (a) or (b), this Act (except for this
section) is repealed.
(d) Deficit Reduction.--The Secretary shall cover into the
General Fund of the Treasury any amounts remaining in the
Fund under section 9 upon the repeal of this Act.
SEC. 12. ANNUAL STUDY CONCERNING BENEFITS OF THE ACT.
(a) In General.--The Secretary shall, on an annual basis,
conduct a study and submit to the Congress a report that--
(1) analyzes the cost and availability of homeowners'
insurance for losses resulting from catastrophic natural
disasters covered by the reinsurance program under this Act;
(2) describes the efforts of the participating States in--
(A) enacting preparedness, prevention, mitigation,
recovery, and rebuilding standards; and
(B) educating the public on the risks associated with
natural catastrophe; and
(3) makes recommendations regarding ways to improve the
program under this Act and its administration.
(b) Contents.--Each annual study under this section shall
also determine and identify, on an aggregate basis--
(1) for each State or region, the capacity of the private
homeowners' insurance market with respect to coverage for
losses from catastrophic natural disasters;
(2) for each State or region, the percentage of homeowners
who have such coverage, the catastrophes covered, and the
average cost of such coverage; and
(3) for each State or region, the effects this Act is
having on the availability and affordability of such
insurance.
(c) Timing.--Each annual report under this section shall be
submitted not later than March 30 of the year after the year
for which the study was conducted.
(d) Commencement of Reporting Requirement.--The Secretary
shall first submit an annual report under this section not
later than 2 years after the date of the enactment of this
Act.
SEC. 13. GAO STUDY OF THE NATIONAL FLOOD INSURANCE PROGRAM
AND HURRICANE-RELATED FLOODING.
(a) In General.--In light of the flooding associated with
Hurricane Katrina, the Comptroller General of the United
States shall conduct a study of the availability and adequacy
of flood insurance coverage for losses to residences and
other properties caused by hurricane-related flooding.
(b) Contents.--The study under this section shall determine
and analyze--
(1) the frequency and severity of hurricane-related
flooding during the last 20 years in comparison with flooding
that is not hurricane-related;
(2) the differences between the risks of flood-related
losses to properties located within the 100-year floodplain
and those located outside of such floodplain;
(3) the extent to which insurance coverage referred to in
subsection (a) is available for properties not located within
the 100-year floodplain;
(4) the advantages and disadvantages of making such
coverage for such properties available under the national
flood insurance program;
(5) appropriate methods for establishing premiums for
insurance coverage under such program for such properties
that, based on accepted actuarial and rate making principles,
cover the full costs of providing such coverage;
(6) appropriate eligibility criteria for making flood
insurance coverage under such program available for
properties that are not located within the 100-year
floodplain or within a community participating in the
national flood insurance program;
(7) the appropriateness of the existing deductibles for all
properties eligible for insurance coverage under the national
flood insurance program, including the standard and variable
deductibles for pre-FIRM and post-FIRM properties, and
whether a broader range of deductibles should be established;
(8) income levels of policyholders of insurance made
available under the national flood insurance program whose
properties are pre-FIRM subsidized properties;
(9) how the national flood program is marketed, if changes
can be made so that more people are aware of flood coverage,
and how take-up rates may be improved;
(10) the number of homes that are not primary residences
that are insured under the national flood insurance program
and are pre-FIRM subsidized properties; and
(11) suggestions and means on how the program under this
Act can better meet its stated goals as well as the
feasibility of expanding the national flood insurance program
to cover the perils covered by this Act.
(c) Consultation With FEMA.--In conducting the study under
this section, the Comptroller General shall consult with the
Administrator of the Federal Emergency Management Agency.
(d) Report.--The Comptroller General shall complete the
study under this section and submit a report to the Congress
regarding the findings of the study not later than 5 months
after the date of the enactment of this Act.
SEC. 14. DEFINITIONS.
For purposes of this Act, the following definitions shall
apply:
(1) Commission.--The term ``Commission'' means the National
Commission on Catastrophe Preparation and Protection
established under section 3.
(2) Covered perils.--The term ``covered perils'' means the
natural disaster perils under section 6.
(3) Covered purchaser.--The term ``covered purchaser''
means an eligible State-operated insurance or reinsurance
program that purchases reinsurance coverage made available
under a contract under section 7.
(4) Disaster area.--The term ``disaster area'' means a
geographical area, with respect to which--
(A) a covered peril specified in section 6 has occurred;
and
(B) a declaration that a major disaster exists, as a result
of the occurrence of such peril--
(i) has been made by the President of the United States;
and
(ii) is in effect.
(5) Eligible losses.--The term ``eligible losses'' means
losses in excess of the sustained and retained losses, as
defined by the Secretary after consultation with the
Commission.
(6) Eligible state program.--The term ``eligible State
program'' means--
(A) a State program that, pursuant to section 7(a), is
eligible to purchase reinsurance coverage made available
through contracts under section 7; or
(B) a multi-State program that is eligible to purchase such
coverage pursuant to section 7(c).
(7) Price gouging.--The term ``price gouging'' means the
providing of any consumer good or service by a supplier
related to repair or restoration of property damaged from a
catastrophe for a price that the supplier knows or has reason
to know is greater, by at least the percentage set forth in a
State law or regulation prohibiting such act (notwithstanding
any real cost increase due to any attendant business risk and
other reasonable expenses that result from the major
catastrophe involved), than the price charged by the supplier
for such consumer good or service immediately before the
disaster.
(8) Qualified lines.--The term ``qualified lines'' means
lines of insurance coverage for which losses are covered
under section 5 by reinsurance coverage under this Act.
(9) Reinsurance coverage.--The term ``reinsurance coverage
under this Act'' means coverage under contracts made
available under section 7.
(10) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(11) State.--The term ``State'' means the States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana
Islands, Guam, the Virgin Islands, American Samoa, and any
other territory or possession of the United States.
______
By Mrs. FEINSTEIN:
S. 933. A bill for the relief of Joseph Gabra and Sharon Kamel; to
the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I am offering today private relief
legislation to provide lawful permanent residence status to Joseph
Gabra and his wife, Sharon Kamel, Egyptian nationals currently living
with their children in Camarillo, CA.
Joseph Gabra and Sharon Kamel entered the United States legally on
November 1, 1998, on tourist visas. They immediately filed for
political asylum based on religious persecution.
[[Page S3369]]
The couple fled Egypt because they had been targeted for their active
involvement in the Coptic Christian Church in Egypt. Mr. Gabra was
repeatedly jailed by Egyptian authorities because of his work for the
church. In addition, Ms. Kamel's cousin was murdered and her brother's
business was fire-bombed.
When Ms. Kamel became pregnant with their first child, the family was
warned by a member of the Muslim brotherhood that if they did not raise
their child as a Muslim, the child would be kidnapped and taken from
them.
Frightened by these threats, the young family sought refuge in the
United States. Unfortunately, when they sought asylum here, Mr. Gabra,
who has a speech impediment, had difficulty communicating his fear of
persecution to the immigration judge.
The judge denied their petition, telling the family that he did not
see why they could not just move to another city in Egypt to avoid the
abuse they were suffering. Since the time that they were denied asylum,
Ms. Kamel's brother, who lived in the same town and suffered similar
abuse, was granted asylum.
I have decided to offer legislation on their behalf because I believe
that, without it, this hardworking couple and their four United States
citizen children would endure immense and unfair hardship.
First, in the nine years that Mr. Gabra and Ms. Kamel have lived
here, they have worked to adjust their status through the appropriate
legal channels. They came to the United States on a lawful visa and
immediately notified authorities of their intent to seek asylum here.
They have played by the rules and followed our laws.
In addition, during those nine years, the couple has had four U.S.
citizen children who do not speak Arabic and are unfamiliar with
Egyptian culture. If the family is deported, the children would have to
acclimate to a different culture, language and way of life.
Jessica, 8, is the Gabra's oldest child, and in the Gifted and
Talented Education program in Ventura County. Rebecca, age 7, and
Rafael, age 6, are old enough to understand that they would be leaving
their schools, their teachers, their friends and their home. Veronica,
the Gabra's youngest child, is just 18 months old.
More troubling is the very real possibility that if sent to Egypt,
these four American children would suffer discrimination and
persecution because of their religion, just as the rest of their family
reports.
Mr. Gabra and Ms. Kamel have made a positive life for themselves and
their family in the United States. Both have earned college degrees in
Egypt and once in the United States, Mr. Gabra passed the Certified
Public Accountant Examination on August 4, 2003. Since arriving here,
Mr. Gabra has consistently worked to support his family.
The positive impact they have made on their community is highlighted
by the fact that I received a letter of support on their behalf signed
by 160 members of their church and community. From everything I have
learned about the family, we can expect that they will continue to
contribute to their community in productive ways.
Given these extraordinary and unique facts, I ask my colleagues to
support this private relief bill on behalf of Joseph Gabra and Sharon
Kamel.
In addition, I ask unanimous consent that the text of the private
relief bill and the numerous letters of support my office has received
from members of the Camarillo community be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 933
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ADJUSTMENT OF STATUS.
(a) In General.--Notwithstanding any other provision of
law, for the purposes of the Immigration and Nationality Act
(8 U.S.C. 1101 et seq.), Joseph Gabra and Sharon Kamel shall
each be deemed to have been lawfully admitted to, and
remained in, the United States, and shall be eligible for
adjustment of status to that of an alien lawfully admitted
for permanent residence under section 245 of the Immigration
and Nationality Act (8 U.S.C. 1255) upon filing an
application for such adjustment of status.
(b) Application and Payment of Fees.--Subsection (a) shall
apply only if the application for adjustment of status is
filed with appropriate fees not later than 2 years after the
date of the enactment of this Act.
(c) Reduction of Immigrant Visa Numbers.--Upon the granting
of permanent resident status to Joseph Gabra and Sharon
Kamel, the Secretary of State shall instruct the proper
officer to reduce by 2, during the current or subsequent
fiscal year, the total number of immigrant visas that are
made available to natives of the country of Joseph Gabra and
Sharon Kamel's birth under section 202(e) or 203(a) of the
Immigration and Nationality Act (8 U.S.C. 1152(e), 1153(a)),
as applicable.
____
February 14, 2007.
Dear Mrs. Feinstein: I am writing you today to beg you for
help. A friend and fellow parent is scheduled for deportation
on Monday 2/19 at 10:00 a.m. Her name is Sharon Malak Kamel
Hendy (alien # A75-647-452). I was horrified to hear this
information. Sharon is a wonderful person and mother. She has
4 children: Jessica (8) who is in my son's class, Rebecca.
(7), Rafael (6) who is in Kindergarten with my daughter and
Veronica (18 months). All of the children are American
citizens.
Sharon and her husband, Joseph Ayad Gabra Youssef (alien #
A75-647-253) came to the United States in 1998. They fled
their country of Egypt from terrorist threats on their lives
and the life of their unborn child (Jessica) due to the fact
that they are Christians. They have pursued all legal
avenues, to become citizens. Due to time lines being moved
up, both have been notified that deportation will occur.
Sharon is the first to receive the notice.
I am mortified that the United States would deport hard
working people that try to stay the legal way. To top that
off, they parents of 4 beautiful American citizen children.
Please help Sharon and Joseph with extensions and a way for
them to obtain green cards.
Thank you for your time and consideration and May God bless
you.
Sincerely,
Sharon D. Vopat-Mitchell.
____
February 14, 2007.
Dear Senator Feinstein: I am on staff at Camarillo
Community Church as director of Adult Education and Family
Ministry and am a licensed minister. I am also a California
resident and a navy veteran. I am writing on behalf of the
Gabra family who has been a member of this congregation for
many years.
Joseph and Sharon Gabra fled Egypt seeking asylum because
of the growing persecution of people who identify themselves
with Jesus Christ (Christians). This persecution historically
included job and housing discrimination but now is becoming
more detrimental to the health and safety of Christians.
Kidnapping, rape and murder are common responses against
Christians by radical, extremists Muslims in Egypt.
Sharon Malak Kamel Hendy (Gabra) has received deportation
orders and is scheduled to leave Monday, February 19, 2007.
She would leave behind four children, all American citizens.
Should she take them to Egypt it would be very likely they
would be kidnapped or outright murdered. Joseph's case is
still pending but the same logic used to send Sharon back
would still be expected in his case.
I see, on a daily basis, the devastating consequences of
raising children without a mother or father in the home. I
ask you to intervene on behalf of this family, particularly
the American raised children. Please use your influence as a
Senator and a spokesperson for the people of California to
keep Sharon in the United States and eventually giving the
Gabra family permanent status.
Thank you for your consideration.
Very respectfully,
William J. Moyer.
____
Re political asylum applications of Joseph Ayad Gabra Youssef
and Sharon Malak Kamel Hendy.
Camarillo, CA,
February 14, 2007.
Senator Dianne Feinstein,
U.S. Senate,
Washington, DC.
Dear Senator Feinstein: I am asking your immediate
attention to a bureaucratic problem which may put one fine
Christian family in terrorist hands. Time is of the essence
as one family member (the mother of their 4 children--ages 8,
7, 6 and 18 mos.), who is scheduled for deportation on 2-19-
2007. They only received the notice on 2-6-2007; our church
family became aware of this problem on 2-11-2007. For your
information other family members have already been granted
political asylum in the United States. They have complied
with all of the laws. Again, this is a problem of
bureaucratic overload and we need real human intervention
from your office to prevent unnecessary family separation,
let alone possible death due to their religion convictions.
I plead with your office to grant an extension as they have
been working since November 1, 1998 on this goal to become
citizens of the United States; from my perspective, their
arrival occurred three years before 9-11-2001 and they knew
their danger. I already call them citizens of America from my
heart as they have shown by their actions and
[[Page S3370]]
commitment to be such with pride and honor.
Thank you for your immediate attention on behalf of this
beautiful family as your action would show the real intent of
the Lady of Liberty in New York Harbor as our country is a
land of laws and integrity.
Most sincerely,
Toni Webster.
____
Camarillo Community Church,
February 12, 2007.
To Whom It May Concern: Please review this deportation
possibility and if possible please help us with a reprieve.
Sharon Malak Kamel Hendy (A75 647 452) has four small
children all born in America and is being asked to leave our
country back to Egypt. This seems so unreasonable to send a
mother of four children to a country that is unfriendly to
her religious preference. To separate her from her husband
and children seems so un-American.
Attached is a Summary of the political asylum for you to
review. She has a deportation date of the 19th of February.
Thank you for any help you can give this family. They have
become a part of our church family at Camarillo Community
Church, 1322 Las Posas Road, Camarillo, CA 93010.
Daryl Lundberg,
Pastor of Membership Care.
____
Keith James,
Camarillo, CA, February 15, 2007.
Re Joseph & Sharon Gabra.
Senator Diane Feinstein,
U.S. Senate,
San Francisco, CA.
Dear Ms. Feinstein, I'm writing to you on behalf of Joseph
and Sharon Gabra, who are good friends of mine and fellow
members of Camarillo Community Church. The Gabras are
Egyptian nationals who fled Egypt in 1998 due to religious
persecution. As Christians in a Muslim society, they
experienced terrible persecution; they were threatened by
government officials to recant their beliefs and embrace
Islam, or suffer the consequences, which meant their child
would be taken from them and placed in a home where the child
would be raised in Islam. They came to the United States to
raise their family and begin a new life. Sharon was pregnant
with their first child when they arrived here on a visitor's
permit.
Since coming to our country they have had four children,
one of whom is a good friend of my daughter, McKenna. The
Gabras are very involved in our church community, always
willing to lend a hand in the children's ministries. Joseph
is a college-educated accountant and one of the hardest
working men I know, and Sharon has a degree in social work.
Both are very well regarded by the people of our church.
For several years the Gabras have worked diligently to
become U.S. citizens, and have done so in all the right ways,
but it appears they are finally out of options. Sharon
received a notice last week that she will be deported on
February 19, at which time she will be forced to leave her
family behind. This means four children under the age of
eight, including an 18-month-old, will be left in the care of
their father, who must continue to work full-time to support
his family.
With less than a week before Sharon's deportation, I'm
writing to ask that you please stand for this family, that
you would intercede on behalf of Sharon Gabra give her family
a real chance at achieving their dream of a home in the
United States. They are the kind of people we hope will
become American citizens--good, honest, moral, and hard-
working. Thank you for your consideration.
Best regards,
Keith James.
____
Camarillo Community Church,
Camarillo, CA.
To the Hon. Senator Dianne Feinstein: I am writing in
regard to Joseph Ayad Gabra Youssef (A 75 647 253) and his
wife Sharon Malak Kamel Hendy (A 75 647 452). This Christian
couple has applied for asylum in the United States because
their lives were threatened by Moslem terrorists in their
home country of Egypt. They fled Egypt in 1998 when Sharon
was pregnant with their first child, hoping to find a safe
place to raise their children. They have been seeking asylum
here in the U.S, but the process has been slow and difficult.
They now have four children and the children are all citizens
of the United States, having been born here. This is a
wonderful young family that has become a valued part of our
church and community, but they are now being threatened with
immediate deportation. Our entire church congregation is very
concerned for the welfare of this family and fearful of the
consequence of their return to Egypt. Please, we earnestly
request your help in assisting this family.
Sincerely,
Ralph Rittenhouse,
Senior Pastor.
____
Camarillo Community Church,
February 14, 2007.
Senator Barbara Feinstein: I faxed a note to you yesterday
and apparently the bottom portion of the note was cut off in
the fax so I am resending the fax with this, a more detailed
letter. Yesterday's note was written in a hurry because of
the urgent nature of this request.
I am a Licensed Minister, Pastor of Children's Ministries
at Camarillo Community Church in Camarillo, California. I
have held this position for two years and prior to that I was
the director of a Preschool and After School Program at
Trinity Presbyterian Church in Camarillo, California. I have
a true love and desire to see young children grow to become
confident, successful adults and know that it is only in
building up the child that we avoid the difficult task of
rebuilding the broken man. The issue I am bringing to your
attention deals with the brokenness of man which is now
impacting the lives of four children and their parents who
have become very precious to me and the community of
Camarillo.
It is hard for me, as an American, to truly grasp the
dangers Christians face in the Muslim world; however, the
threats that caused Sharon Malak Kamel Hendy (A 75 647 253)
and Joseph Ayad Gabra Youssef (A 75 647 452) to flee Egypt
were real and continue to be present for them should they be
forced to leave our country. The evil caused by children who
have been raised in hatred, towards Americans and/or non
Muslims, who have now become adults in leadership--
terrorists--is REAL. Until we can break the cycle of hatred
and replace it with love and respect one for another
regardless of birth place or faith we will continue to
struggle with adults filled with evil. In the meantime we
must do all we can to protect those in our area from the
evils of terrorism.
Although the Gabra family has been active within our
church, it was not until Sunday, February 11, 2007 that we
became aware of the gravity of their situation. They have
been trying to handle the issue on their own so as not to be
a burden to anyone. They came to America for Safety rather
than financial gain and do not wish to be a burden on our
society. I do not understand the legal hoops that have to be
jumped to keep Sharon from deportation on February 19, 2007--
but I do know that the family has been attempting to meet the
requirements and jump through the hoops ever since their
arrival in 1999. It seems that they have, up to this point,
received less than appropriate or fair treatment in our court
system.
The children, Jessica, age 8, Rebecca, age 7, Raphael, age
6 and Veronica, 18 months are all American born, English
speaking children. They fit the profile of typical American
children, attending public school, active in our children's
ministries programs on Sundays and weekdays for AWANA and
other children's events. Without knowledge of their parent's
birthplace, one would never know there was a difference
between them and their American born peers. They are a family
who treasures one another and desires to be a blessing to
those around them in a safe society. The deportation of their
mother to Egypt--a place where her, her husband's, and the
life of their unborn first child were threatened unless they
turn from Christianity and return to Islam--would be
devastating.
It is my hope that you will be able to use your legal
authority to stop the deportation scheduled for February 19,
2007. Know that there are many in Camarillo depending on your
leadership to help in this matter. We commit to follow the
laws of our country in order to bring this family to safety.
We are asking for the time to help them fulfill the
requirements.
Sincerely,
Elaine Francisco,
Pastor of Children's Ministries.
____
February 12, 2007.
Dear Senator Feinstein: I hope that you will please take
the time to read this letter for immediate help to the Gabra
family. The mother of this family is scheduled to be deported
on 2/19/2007 and the father fears the same. The big problem
is that the family has four children between the ages of 8
years and 18 months and are all American Citizens. This
family fled Egypt in 1998 because they were pregnant with
their first child and were threatened to have their child
taken from them because of their Christian beliefs. They came
on a visitor's visa and did all the required steps to become
legal. After 9/11/2001 they thought they would have a better
chance, but by then they were allowing only one Judge to
review the cases instead of 3 which shortened the time for
accomplishing the same number of cases. By the law they
became illegal and were subject to deportation.
Only the Mother, Sharon Malak Kamel Hendy (Alien Number: A
75-647-452) received notice of deportation. She is to be
deported 2/19/2007. This would leave her husband Joseph Ayad
Gabra Youssef (Alien Number: A 75-647-253) here to work and
care for 4 children from age 8 yrs. to 18 months. His
deportation notice will probably come next and this will lead
to danger for the children. If this happens, the children
would suffer the most in Egypt from the Terrorists because
they only speak English.
I have taught Sunday school to 3 of their children and they
are a lovely, hard working, honest family and want to become
citizens. If they are deported their lives are in danger.
Also, as Christians, they will not be able to find
employment. The children are as follows: Jessica Gabra--8
years; Rebecca Gabra--7 years; Rafael Gabra--6 years;
Veronica Gabra--18 months.
Please help us to get an extension for Sharon and a way for
them to get green cards. They are the kind of people our
country would be proud to have as citizens.
I'm pleading with you to help us. I know the time is short,
but they just received the
[[Page S3371]]
deportation notice 6 days ago. We would be forever in your
debt if you can help the Gabra Family. This family is fearing
for their lives and safety right now.
Sincerely,
Linda Davis.
____
John F. Laubacher,
Certified Public Accountant,
Camarillo, CA, Feb. 11, 2007.
Senator Dianne Feinstein.
Dear Senator Feinstein: I am writing this on behalf of my
friend and fellow CPA Joseph Gabra and his family. His wife
has been ordered to appear on Feb. 19th for deportation. I
have known the Gabra family for a number of years and am
writing in hopes that you will intervenue on his wife's
behalf and either: a. Seek a stay of execution of the order
to deport Mrs. Gabra; or b. Help them to arrange a green card
to allow her to remain in the U.S.
Mr. Gabra is a great asset to our community. He is employed
by a client of mine as an accountant and I have seen
firsthand the tremendous integrity and thoroughness that he
brings to his job each day. He is a wonderful example to his
co-workers and the general public.
Joseph was not always working as an accountant here even
though he is a CPA in his native country. Finding work as an
accountant was difficult due to a speech impediment. But he
has always been a hard worker, taking manual labor jobs to
stay off any public assistance. He has now been working in
his field and my client is thrilled with the job he is doing.
In addition, he travels to Cal State Northridge to get help
with his speech problem.
Mrs. Gabra is a homemaker and takes care of their four
children that range from 8 years old to 18 months. She is
involved at our church as well in a number of programs. The
family has been a great addition to my church and the
Camarillo community in general.
But if Mrs. Gabra is deported, the damage will not just be
to the community. There is danger that faces the family if
they are returned to Egypt. Mr. Gabra will not be able to
find work there because he is a Christian. The family will
face incredible persecution. The kids are U.S. citizens who
will suffer if they are sent to Egypt because they do not
speake the language and they are Christians, not Muslim. They
could be forced to convert to Islam or be killed. The girls
face a barbaric ritual of female circumcision. They are
dedicated to each other as a family. So, while Mrs. Gabra is
the only one being forced to leave at this time, splitting up
the family into two countries is simply not an option.
Senator, Mr. Gabra is a man of faith. He is confident that
God will provide a rcsolution to this problem. I, too, am a
man of faith. But I believe that perhaps God will use you to
provide the miracle that the Gabra family needs now in order
to stay together. I am asking you to intercede on their
behalf.
Thank you and your staff for taking the time to read this
and consider my request. He's a good man. They are a good
family. And they deserve better than the death sentence the
U.S. Government is giving them. His letter follows along with
the order from the Dept. of Homeland Security. Please help.
Very truly yours,
John F. Laubacher, CPA.
______
By Mr. NELSON of Florida (for himself and Mr. Martinez):
S. 934. A bill to amend the Florida National Forest Land Management
Act of 2003 to authorize the conveyance of an additional tract of
National Forest System land under that Act, and for other purposes; to
the Committee on Energy and Natural Resources.
Mr. NELSON of Florida. Mr. President, I rise today to introduce
legislation that helps the U.S. Forest Service to protect sensitive and
precious forest by selling developed land in Leon County, FL, in order
to purchase at-risk land in the heart of our national forests.
Specifically, this bill allows for the sale of tract W-1979, which is
114 acres in Tallahassee, the proceeds of which are specifically
designated to purchase private inholdings in the Apalachicola National
Forest. The Forest Service believes that W-1979 has lost its national
forest character and is unmanageable; the land will be sold to Leon
County, where it will help the continued advancement of Blueprint 2000,
a series of community initiatives to improve Tallahassee and Leon
County. By selling this land on the outskirt of the Apalachicola
National Forest, the Forest Service can acquire precious land in the
heart of the forest that could be lost to development.
This legislation also gives the U.S. Forest Service in Florida the
same flexibility to manage lands and capital that many other states
have. Previously, whenever National Forest land was sold, the funds
could only be used to purchase more land, while many important
infrastructure projects went undone. With passage of this bill,
proceeds only from the sale of ``non-green'' lands can go towards
capitol improvements, such as administrative facilities that help the
Forest Service manage the Ocala, Apalachicola, and Osceola National
Forests. These non-green lands have already been developed with urban
improvements, and no longer align with the goals of the U.S. Forest
Service.
Congressman Crenshaw and Boyd have introduced similar legislation in
the House of Representatives. I hope that we can quickly pass these
bills and help Leon County and the Forest Service.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 934
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. CONVEYANCES UNDER FLORIDA NATIONAL FOREST LAND
MANAGEMENT ACT OF 2003.
(a) Additional Conveyance Authorized.--Subsection (b) of
section 3 of the Florida National Forest Land Management Act
of 2003 (Public Law 108-152; 117 Stat. 1919) is amended--
(1) by striking ``and'' at the end of paragraph (17);
(2) by redesignating paragraph (18) as paragraph (19);
(3) by inserting after paragraph (17) the following new
paragraph:
``(18) tract W-1979, located in Leon County consisting of
approximately 114 acres, within T. 1 S., R. 1 W., sec. 25;
and''; and
(4) in paragraph (19) (as redesignated by paragraph (2)),
by striking ``(17)'' and inserting ``(18)''.
(b) Additional Use of Proceeds.--Paragraph (2) of
subsection (i) of such section (117 Stat. 1921) is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) acquisition, construction, or maintenance of
administrative improvements for units of the National Forest
System in the State.''.
(c) Limitations on Use of Proceeds.--Subsection (i) of such
section is further amended by adding at the end the following
new paragraphs:
``(3) Geographical and use restriction for certain
conveyance.--Notwithstanding paragraph (2), proceeds from the
sale or exchange of the tract described in subsection (b)(18)
shall be used exclusively for the purchase of inholdings in
the Apalachicola National Forest.
``(4) Restriction on use of proceeds for administrative
improvements.--Proceeds from any sale or exchange of land
under this Act may be used for administrative improvements,
as authorized by paragraph (2)(C), only if the land
generating the proceeds was improved with infrastructure.''.
______
By Mr. NELSON of Florida (for himself, Mr. Hagel, Mr. Bingaman,
Ms. Mikulski, Mrs. Lincoln, Mr. Biden, Mr. Vitter, Mr.
Domenici, Mr. Kerry, Mr. Martinez, Mr. Salazar, Ms. Snowe, Mr.
Brown, Mrs. Feinstein, Mrs. Murray, and Mrs. Clinton):
S. 935. A bill to repeal the requirement for reduction of survivor
annuities under the Survivor Benefit Plan by veterans' dependency and
indemnity compensation, and for other purposes; to the Committee on
Armed Services.
Mr. NELSON of Florida. Mr. President, on behalf of myself and
Senators Hagel, Bingaman, Kerry, Mikulski, Lincoln, Biden, Vitter,
Domenici, Martinez, Salazar, Snowe, Brown, Feinstein, Murray, and
Clinton, I am honored to introduce legislation today that we are
convinced is necessary to fix a long-standing problem in our military
survivors benefits system.
President Lincoln's words are as relevant and moving today as they
were during the Civil War: ``as God gives us to see the right, let us
strive on to finish the work we are in; to bind up the nation's wounds;
to care for him who shall have borne the battle, and for his widow, and
his orphan.''
Our Nation continues to be engaged in a violent struggle against
brutal and vicious enemies around the world. Sadly, Americans are lost
every day. We must never forget that the families left behind by our
courageous men and women in uniform bear the greatest pain. Their
survivors face a life forever altered, and a future left unclear. They
suffer the greatest cost of the ultimate sacrifice, and the nation that
asked for that sacrifice must honor it.
Back in 1972, Congress established the military survivors' benefits
plan--
[[Page S3372]]
or SBP--to provide retirees' survivors an annuity to protect their
income. This benefit plan is a voluntary program purchased by the
retiree or issued automatically in the case of servicemembers who die
while on active duty. Retired servicemembers pay for this benefit from
their retired pay. Upon their death, their spouse or dependent children
can receive up to 55 percent of their retired pay as an annuity.
For over five years, I've been talking about the unfair and painful
offset between SBP and the Department of Veterans Affairs' Dependency
and Indemnity Compensation, or DIC, which is received by the surviving
spouse of an active duty or retired military member who dies from a
service-connected cause. Under current law, even if the surviving
spouse of such a servicemember is eligible for SBP, that purchased
annuity is reduced by the amount of DIC received. Another inequity in
the current system is the delayed effective date for ``paid-up status''
under SBP. We should act to correct these injustices this year.
We have made progress, but even with the important changes made over
the last few years, the offset still fails to take care of our military
widows and surviving children the way it should. We have considered and
adopted increased death gratuity benefits for the survivors of our
troops lost in this war, and we have changed the law to enable these
survivors to automatically enroll in SBP. However, now we see the pain
caused when at the same moment a widow is enrolled in SBP she is hit
with the DIC offset.
The SBP offset is no less painful for the survivors of our 100
percent disabled military retirees. SBP is a purchased annuity plan.
Before coming to the U.S. Senate, I served as Insurance Commissioner
for the State of Florida, and I know of no other purchased annuity
program that can then turn around and refuse to pay you the benefits
you purchased on the grounds that you are getting a different benefit
from somewhere else.
Our Federal civil servants receive both their purchased survivor
income protection annuity and any disability compensation for which
they may be entitled--without offset. Why on earth would we treat our
100 percent disabled military retirees any differently, especially
after they have given the best years of their lives and their health in
service to the Nation?
Let me be clear about this: survivors of servicemembers are entitled
in law to automatic enrollment in SBP; 100 percent disabled military
retirees purchase SBP. Survivors stand to lose most or even all of the
benefits under SBP only because they are also entitled to DIC.
This legislation also accelerates an improvement we made earlier to
the SBP program. We have already agreed that military retirees who have
reached the age of 70 and paid their SBP premiums for thirty years
should stop paying a premium, but we delayed the effective date for
this relief until 2008. We should not delay their relief any further.
The United States owes its very existence to generations of soldiers,
sailors, airmen, and marines who have sacrificed throughout our history
to keep us free. The sacrifices of today are no less important to
American liberty or tragic when a life is lost in the defense of
liberty everywhere.
We owe them and their surviving family members a great debt.
Unfortunately, it is too often that we fall short on this care. We
must meet this obligation with the same sense of honor as was the
service they and their families have rendered.
We will continue to work to do right by those who have given this
Nation their all, and especially for the loved ones they may leave to
our care.
I appreciate the co-sponsorship of my colleagues--Senators Hagel,
Bingaman, Kerry, Mikulski, Lincoln, Biden, Vitter, Domenici, Martinez,
Salazar, Snowe, Brown, Feinstein, Murray, and Clinton--and look forward
to working with my colleagues in the days ahead.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:
S. 935
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR
ANNUITIES BY DEPENDENCY AND INDEMNITY
COMPENSATION.
(a) Repeal.--
(1) In general.--Subchapter II of chapter 73 of title 10,
United States Code, is amended as follows:
(A) In section 1450, by striking subsection (c).
(B) In section 1451(c)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.
(2) Conforming amendments.--Such subchapter is further
amended as follows:
(A) In section 1450--
(i) by striking subsection (e); and
(ii) by striking subsection (k).
(B) In section 1451(g)(1), by striking subparagraph (C).
(C) In section 1452--
(i) in subsection (f)(2), by striking ``does not apply--''
and all that follows and inserting ``does not apply in the
case of a deduction made through administrative error.''; and
(ii) by striking subsection (g).
(D) In section 1455(c), by striking ``, 1450(k)(2),''.
(b) Prohibition on Retroactive Benefits.--No benefits may
be paid to any person for any period before the effective
date provided under subsection (f) by reason of the
amendments made by subsection (a).
(c) Prohibition on Recoupment of Certain Amounts Previously
Refunded to SBP Recipients.--A surviving spouse who is or has
been in receipt of an annuity under the Survivor Benefit Plan
under subchapter II of chapter 73 of title 10, United States
Code, that is in effect before the effective date provided
under subsection (f) and that is adjusted by reason of the
amendments made by subsection (a) and who has received a
refund of retired pay under section 1450(e) of title 10,
United States Code, shall not be required to repay such
refund to the United States.
(d) Repeal of Authority for Optional Annuity for Dependent
Children.--Section 1448(d)(2) of such title is amended--
(1) by striking ``Dependent children.--'' and all that
follows through ``In the case of a member described in
paragraph (1),'' and inserting ``Dependent children.--In the
case of a member described in paragraph (1),''; and
(2) by striking subparagraph (B).
(e) Restoration of Eligibility for Previously Eligible
Spouses.--The Secretary of the military department concerned
shall restore annuity eligibility to any eligible surviving
spouse who, in consultation with the Secretary, previously
elected to transfer payment of such annuity to a surviving
child or children under the provisions of section
1448(d)(2)(B) of title 10, United States Code, as in effect
on the day before the effective date provided under
subsection (f). Such eligibility shall be restored whether or
not payment to such child or children subsequently was
terminated due to loss of dependent status or death. For the
purposes of this subsection, an eligible spouse includes a
spouse who was previously eligible for payment of such
annuity and is not remarried, or remarried after having
attained age 55, or whose second or subsequent marriage has
been terminated by death, divorce or annulment.
(f) Effective Date.--The sections and the amendments made
by this section shall take effect on the later of--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted.
SEC. 2. EFFECTIVE DATE OF PAID-UP COVERAGE UNDER SURVIVOR
BENEFIT PLAN.
(a) Survivor Benefit Plan.--Section 1452(j) of title 10,
United States Code, is amended by striking ``October 1,
2008'' and inserting ``October 1, 2007''.
(b) Retired Serviceman's Family Protection Plan.--Section
1436a of such title is amended by striking ``October 1,
2008'' and inserting ``October 1, 2007''.
______
By Mr. DURBIN (for himself and Mr. Specter):
S. 936. A bill to reform the financing of Senate elections, and for
other purposes; to the Committee on Finance.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
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 ``Fair
Elections Now Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
Subtitle A--Fair Elections Financing Program
Sec. 101. Findings and declarations.
Sec. 102. Eligibility requirements and benefits of fair elections
financing of Senate election campaigns.
[[Page S3373]]
``TITLE V--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
``Sec. 501. Definitions.
``Sec. 502. Senate Fair Elections Fund.
``Sec. 503. Eligibility for allocations from the Fund.
``Sec. 504. Seed money contribution requirement.
``Sec. 505. Qualifying contribution requirement.
``Sec. 506. Contribution and expenditure requirements.
``Sec. 507. Debate requirement.
``Sec. 508. Certification by Commission.
``Sec. 509. Benefits for participating candidates.
``Sec. 510. Allocations from the Fund.
``Sec. 511. Payment of fair fight funds.
``Sec. 512. Administration of the Senate fair elections system.
``Sec. 513. Violations and penalties.
Sec. 103. Reporting requirements for nonparticipating candidates.
Sec. 104. Modification of electioneering communication reporting
requirements.
Sec. 105. Limitation on coordinated expenditures by political party
committees with participating candidates.
Sec. 106. Audits.
Subtitle B--Senate Fair Elections Fund Revenues
Sec. 111. Deposit of proceeds from recovered spectrum auctions.
Sec. 112. Tax credit for voluntary donations to Senate Fair Elections
Fund.
Subtitle C--Fair Elections Review Commission
Sec. 121. Establishment of Commission.
Sec. 122. Structure and membership of the commission.
Sec. 123. Powers of the Commission.
Sec. 124. Administration.
Sec. 125. Authorization of appropriations.
Sec. 126. Expedited consideration of Commission recommendations.
TITLE II--VOTER INFORMATION
Sec. 201. Broadcasts relating to candidates.
Sec. 202. Political advertisement vouchers for participating
candidates.
Sec. 203. FCC to prescribe standardized form for reporting candidate
campaign ads.
Sec. 204. Limit on Congressional use of the franking privilege.
TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
Sec. 301. Petition for certiorari.
Sec. 302. Filing by Senate candidates with Commission.
Sec. 303. Electronic filing of FEC reports.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Severability.
Sec. 402. Review of constitutional issues.
Sec. 403. Effective date.
TITLE I--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
Subtitle A--Fair Elections Financing Program
SEC. 101. FINDINGS AND DECLARATIONS.
(a) Undermining of Democracy by Campaign Contributions From
Private Sources.--The Senate finds and declares that the
current system of privately financed campaigns for election
to the United States Senate has the capacity, and is often
perceived by the public, to undermine democracy in the United
States by--
(1) creating a conflict of interest, perceived or real, by
encouraging Senators to accept large campaign contributions
from private interests that are directly affected by Federal
legislation;
(2) diminishing or giving the appearance of diminishing a
Senator's accountability to constituents by compelling
legislators to be accountable to the major contributors who
finance their election campaigns;
(3) violating the democratic principle of ``one person, one
vote'' and diminishing the meaning of the right to vote by
allowing monied interests to have a disproportionate and
unfair influence within the political process;
(4) imposing large, unwarranted costs on taxpayers through
legislative and regulatory outcomes shaped by unequal access
to lawmakers for campaign contributors;
(5) driving up the cost of election campaigns, making it
difficult for qualified candidates without personal wealth or
access to campaign contributions from monied individuals and
interest groups to mount competitive Senate election
campaigns;
(6) disadvantaging challengers, because large campaign
contributors tend to donate their money to incumbent
Senators, thus causing Senate elections to be less
competitive; and
(7) burdening incumbents with a preoccupation with
fundraising and thus decreasing the time available to carry
out their public responsibilities.
(b) Enhancement of Democracy by Providing Allocations From
the Senate Fair Elections Fund.--The Senate finds and
declares that providing the option of the replacement of
private campaign contributions with allocations from the
Senate Fair Elections Fund for all primary, runoff, and
general elections to the Senate would enhance American
democracy by--
(1) eliminating the potentially inherent conflict of
interest created by the private financing of the election
campaigns of public officials, thus restoring public
confidence in the integrity and fairness of the electoral and
legislative processes;
(2) increasing the public's confidence in the
accountability of Senators to the constituents who elect
them;
(3) helping to eliminate access to wealth as a determinant
of a citizen's influence within the political process and to
restore meaning to the principle of ``one person, one vote'';
(4) reversing the escalating cost of elections and saving
taxpayers billions of dollars that are (or that are perceived
to be) currently allocated based upon legislative and
regulatory agendas skewed by the influence of campaign
contributions;
(5) creating a more level playing field for incumbents and
challengers by creating genuine opportunities for all
Americans to run for the Senate and by encouraging more
competitive elections; and
(6) freeing Senators from the incessant preoccupation with
raising money, and allowing them more time to carry out their
public responsibilities.
SEC. 102. ELIGIBILITY REQUIREMENTS AND BENEFITS OF FAIR
ELECTIONS FINANCING OF SENATE ELECTION
CAMPAIGNS.
The Federal Election Campaign Act of 1971 (2 U.S.C. 431 et
seq.) is amended by adding at the end the following:
``TITLE V--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS
``SEC. 501. DEFINITIONS.
``In this title:
``(1) Allocation from the fund.--The term `allocation from
the Fund' means an allocation of money from the Senate Fair
Elections Fund to a participating candidate pursuant to
sections 510 and 511.
``(2) Fair elections qualifying period.--The term `fair
elections qualifying period' means, with respect to any
candidate for Senator, the period--
``(A) beginning on the date on which the candidate files a
statement of intent under section 503(a)(1); and
``(B) ending on the date that is 30 days before--
``(i) the date of the primary election; or
``(ii) in the case of a State that does not hold a primary
election, the date prescribed by State law as the last day to
qualify for a position on the general election ballot.
``(3) Fair elections start date.--The term `fair elections
start date' means, with respect to any candidate, the date
that is 180 days before--
``(A) the date of the primary election; or
``(B) in the case of a State that does not hold a primary
election, the date prescribed by State law as the last day to
qualify for a position on the general election ballot.
``(4) Fund.--The term `Fund' means the Senate Fair
Elections Fund established by section 502.
``(5) Immediate family.--The term `immediate family' means,
with respect to any candidate--
``(A) the candidate's spouse;
``(B) a child, stepchild, parent, grandparent, brother,
half-brother, sister, or half-sister of the candidate or the
candidate's spouse; and
``(C) the spouse of any person described in subparagraph
(B).
``(6) Independent candidate.--The term `independent
candidate' means a candidate for Senator who is--
``(A) not affiliated with any political party; or
``(B) affiliated with a political party that--
``(i) in the case of a candidate in a State that holds a
primary election for Senator, does not hold a primary
election for Senator; or
``(ii) in the case of a candidate in a State that does not
hold primary election for Senator, does not have ballot
status in such State.
``(7) Major party candidate.--
``(A) In general.--The term `major party candidate' means a
candidate for Senator who is affiliated with a major
political party.
``(B) Major political party.--The term `major political
party' means, with respect to any State, a political party of
which a candidate for the office of Senator, President, or
Governor in the preceding 5 years, received, as a candidate
of that party in such State, 25 percent or more of the total
number of popular votes cast for such office in such State.
``(8) Minor party candidate.--The term `minor party
candidate' means a candidate for Senator who is affiliated
with a political party that--
``(A) holds a primary for Senate nominations; and
``(B) is not a major political party.
``(9) Nonparticipating candidate.--The term
`nonparticipating candidate' means a candidate for Senator
who is not a participating candidate.
``(10) Participating candidate.--The term `participating
candidate' means a candidate for Senator who is certified
under section 508 as being eligible to receive an allocation
from the Fund.
``(11) Qualifying contribution.--The term `qualifying
contribution' means, with respect to a candidate, a
contribution that--
``(A) is in the amount of $5 exactly;
``(B) is made by an individual who--
``(i) is a resident of the State with respect to which the
candidate is seeking election; and
``(ii) is not prohibited from making a contribution under
this Act;
``(C) is made during the fair elections qualifying period;
and
[[Page S3374]]
``(D) meets the requirements of section 505(c).
``(12) Seed money contribution.--The term `seed money
contribution' means a contribution or contributions by any 1
individual--
``(A) aggregating not more than $100; and
``(B) made to a candidate after the date of the most recent
previous election for the office which the candidate is
seeking and before the date the candidate has been certified
as a participating candidate under section 508(a).
``SEC. 502. SENATE FAIR ELECTIONS FUND.
``(a) Establishment.--There is established in the Treasury
a fund to be known as the `Senate Fair Elections Fund'.
``(b) Amounts Held by Fund.--The Fund shall consist of the
following amounts:
``(1) Proceeds from recovered spectrum.--Proceeds deposited
into the Fund under section 309(j)(8)(E)(ii)(II) of the
Communications Act of 1934.
``(2) Excess spectrum user fees.--Amounts deposited in the
Fund under section 315A(f)(2)(B)(ii) of the Communications
Act of 1934.
``(3) Voluntary contributions.--Voluntary contributions to
the fund.
``(4) Qualifying contributions, penalties, and other
deposits.--Amounts deposited into the Fund under--
``(A) section 504(2) (relating to limitation on amount of
seed money);
``(B) section 505(d) (relating to deposit of qualifying
contributions);
``(C) section 506(c) (relating to exceptions to
contribution requirements);
``(D) section 509(c) (relating to remittance of allocations
from the Fund);
``(E) section 513 (relating to violations); and
``(F) any other section of this Act.
``(5) Investment returns.--Interest on, and the proceeds
from, the sale or redemption of, any obligations held by the
Fund under subsection (c).
``(c) Investment.--The Commission shall invest portions of
the Fund in obligations of the United States in the same
manner as provided under section 9602(b) of the Internal
Revenue Code of 1986.
``(d) Use of Fund.--
``(1) In general.--The sums in the Senate Fair Elections
Fund shall be used to make allocations to participating
candidates in accordance with sections 510 and 511.
``(2) Insufficient amounts.--Under regulations established
by the Commission, rules similar to the rules of section
9006(c) of the Internal Revenue Code shall apply.
``SEC. 503. ELIGIBILITY FOR ALLOCATIONS FROM THE FUND.
``(a) In General.--A candidate for Senator is eligible to
receive an allocation from the Fund for any election if the
candidate meets the following requirements:
``(1) The candidate files with the Commission a statement
of intent to seek certification as a participating candidate
under this title during the period beginning on the fair
elections start date and ending on the last day of the fair
elections qualifying period.
``(2) The candidate has complied with the seed money
contribution requirements of section 504.
``(3) The candidate meets the qualifying contribution
requirements of section 505.
``(4) Not later than the last day of the fair elections
qualifying period, the candidate files with the Commission an
affidavit signed by the candidate and the treasurer of the
candidate's principal campaign committee declaring that the
candidate--
``(A) has complied and, if certified, will comply with the
contribution and expenditure requirements of section 506;
``(B) if certified, will comply with the debate
requirements of section 507;
``(C) if certified, will not run as a nonparticipating
candidate during such year in any election for the office
that such candidate is seeking; and
``(D) has either qualified or will take steps to qualify
under State law to be on the ballot.
``(b) General Election.--Notwithstanding subsection (a), a
candidate shall not be eligible to receive an allocation from
the Fund for a general election or a general run off election
unless the candidate's party nominated the candidate to be
placed on the ballot for the general election or the
candidate qualified to be placed on the ballot as an
independent candidate, and the candidate is qualified under
State law to be on the ballot.
``SEC. 504. SEED MONEY CONTRIBUTION REQUIREMENT.
``A candidate for Senator meets the seed money contribution
requirements of this section if the candidate meets the
following requirements:
``(1) Separate accounting.--The candidate maintains seed
money contributions in a separate account.
``(2) Limitation on amount.--The candidate deposits into
the Senate Fair Elections Fund or returns to donors an amount
equal to the amount of any seed money contributions which, in
the aggregate, exceed the sum of--
``(A) in the case of an independent candidate, the amount
which the candidate would be entitled to under section
510(c)(3); and
``(B) in the case of any other candidate, the amount which
the candidate would be entitled to under section 510(c)(1).
``(3) Use of seed money.--The candidate makes expenditures
from seed money contributions only for campaign-related
costs.
``(4) Records.--The candidate maintains a record of the
name and street address of any contributor of a seed money
contribution and the amount of any such contribution.
``(5) Report.--Unless a seed money contribution or an
expenditure made with a seed money contribution has been
reported previously under section 304, the candidate files
with the Commission a report disclosing all seed money
contributions and expenditures not later than 48 hours after
receiving notification of the determination with respect to
the certification of the candidate under section 508.
``SEC. 505. QUALIFYING CONTRIBUTION REQUIREMENT.
``(a) In General.--A candidate for Senator meets the
requirement of this section if, during the fair elections
qualifying period, the candidate obtains a number of
qualifying contributions equal to the sum of--
``(1) 2,000; plus
``(2) 500 for each congressional district in excess of 1 in
the State with respect to which the candidate is seeking
election.
``(b) Special Rule for Certain Candidates.--
``(1) In general.--Notwithstanding subsection (a), in the
case of a candidate described in paragraph (2), the
requirement of this section is met if, during the fair
elections qualifying period, the candidate obtains a number
of qualifying contributions equal to 150 percent of the
number of qualifying contributions that such candidate would
be required to obtain without regard to this subsection.
``(2) Candidate described.--A candidate is described in
this paragraph if--
``(A) the candidate is a minor party candidate or an
independent candidate; and
``(B) in the most recent general election involving the
office of Senator, President, or Governor in the State in
which the candidate is seeking office, the candidate and all
candidates of the same political party as such candidate
received less than 5 percent of the total number of votes
cast for each such office.
``(c) Requirements Relating to Receipt of Qualifying
Contribution.--Each qualifying contribution--
``(1) may be made by means of a personal check, money
order, debit card, or credit card;
``(2) shall be payable to the Senate Fair Elections Fund;
``(3) shall be accompanied by a signed statement
containing--
``(A) the contributor's name and home address;
``(B) an oath declaring that the contributor--
``(i) is a resident of the State in which the candidate
with respect to whom the contribution is made is running for
election;
``(ii) understands that the purpose of the qualifying
contribution is to show support for the candidate so that the
candidate may qualify for public financing;
``(iii) is making the contribution in his or her own name
and from his or her own funds;
``(iv) has made the contribution willingly; and
``(v) has not received any thing of value in return for the
contribution; and
``(4) shall be acknowledged by a receipt that is sent to
the contributor with a copy kept by the candidate for the
Commission and a copy kept by the candidate for the election
authorities in the State with respect to which the candidate
is seeking election.
``(d) Deposit of Qualifying Contributions.--
``(1) In general.--Not later than 21 days after obtaining a
qualifying contribution, a candidate shall--
``(A) deposit such contribution into the Senate Fair
Elections Fund, and
``(B) remit to the Commission a copy of the receipt for
such contribution.
``(2) Deposit of contributions after certification.--
Notwithstanding paragraph (1), all qualifying contributions
obtained by a candidate shall be deposited into the Senate
Fair Elections Fund and all copies of receipts for such
contributions shall be remitted to the Commission not later
than--
``(A) in the case of a candidate who is denied
certification under section 508, 3 days after receiving a
notice of denial of certification under section 508(a)(2);
and
``(B) in any other case, not later than the last day of the
fair elections qualifying period.
``(e) Verification of Qualifying Contributions.--The
Commission shall establish procedures for the auditing and
verification of qualifying contributions to ensure that such
contributions meet the requirements of this section. Such
procedures may provide for verification through the means of
a postcard or other method, as determined by the Commission.
``SEC. 506. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.
``(a) General Rule.--A candidate for Senator meets the
requirements of this section if, during the election cycle of
the candidate, the candidate--
``(1) except as provided in subsection (b), accepts no
contributions other than--
``(A) seed money contributions;
``(B) qualifying contributions made payable to the Senate
Fair Elections Fund;
``(C) allocations from the Senate Fair Elections Fund under
sections 510 and 511; and
``(D) vouchers provided to the candidate under section 315A
of the Communications Act of 1934;
[[Page S3375]]
``(2) makes no expenditures from any amounts other than
from--
``(A) amounts received from seed money contributions;
``(B) amounts received from the Senate Fair Elections Fund;
and
``(C) vouchers provided to the candidate under section 315A
of the Communications Act of 1934; and
``(3) makes no expenditures from personal funds or the
funds of any immediate family member (other than funds
received through seed money contributions).
For purposes of this subsection, a payment made by a
political party in coordination with a participating
candidate shall not be treated as a contribution to or as an
expenditure made by the participating candidate.
``(b) Contributions for Leadership PACs, etc.--A political
committee of a participating candidate which is not an
authorized committee of such candidate may accept
contributions other than contributions described in
subsection (a)(1) from any person if--
``(1) the aggregate contributions from such person for any
for a calendar year do not exceed $100; and
``(2) no portion of such contributions is disbursed in
connection with the campaign of the participating candidate.
``(c) Exception.--
``(1) In general.--Notwithstanding subsection (a), a
candidate shall not be treated as having failed to meet the
requirements of this section if any contributions accepted
before the date the candidate files a statement of intent
under section 503(a)(1) are not expended and are--
``(A) returned to the contributor; or
``(B) submitted to the Federal Election Commission for
deposit in the Senate Fair Elections Fund.
``(2) Special rule for seed money contributions and
contributions for leadership pacs.--For purposes of paragraph
(1), a candidate shall not be required to return, donate, or
submit any portion of the aggregate amount of contributions
from any person which is $100 or less to the extent that such
contribution--
``(A) otherwise qualifies as a seed money contribution; or
``(B) otherwise meets the requirements of subsection (b).
``(3) Special rule for contributions before the date of
enactment of this title.--Notwithstanding subsection (a), a
candidate shall not be treated as having failed to meet the
requirements of this section if any contributions accepted
before the date of the enactment of this title are not
expended and are--
``(A) returned to the contributor;
``(B) donated to an organization described in section
170(c) of the Internal Revenue Code of 1986;
``(C) donated to a political party;
``(D) used to retire campaign debt; or
``(E) submitted to the Federal Election Commission for
deposit in the Senate Fair Elections Fund.
``SEC. 507. DEBATE REQUIREMENT.
``A candidate for Senator meets the requirements of this
section if the candidate participates in at least--
``(1) 1 public debate before the primary election with
other participating candidates and other willing candidates
from the same party and seeking the same nomination as such
candidate; and
``(2) 2 public debates before the general election with
other participating candidates and other willing candidates
seeking the same office as such candidate.
``SEC. 508. CERTIFICATION BY COMMISSION.
``(a) In General.--Not later than 5 days after a candidate
for Senator files an affidavit under section 503(a)(4), the
Commission shall--
``(1) certify whether or not the candidate is a
participating candidate; and
``(2) notify the candidate of the Commission's
determination.
``(b) Revocation of Certification.--
``(1) In general.--The Commission may revoke a
certification under subsection (a) if--
``(A) a candidate fails to qualify to appear on the ballot
at any time after the date of certification; or
``(B) a candidate otherwise fails to comply with the
requirements of this title.
``(2) Repayment of benefits.--If certification is revoked
under paragraph (1), the candidate shall repay--
``(A) to the Senate Fair Elections Fund an amount equal to
the value of benefits received under this title plus interest
(at a rate determined by the Commission) on any such amount
received; and
``(B) to Federal Communications Commission an amount equal
to the amount of the dollar value of vouchers which were
received from the Federal Communications Commission under
section 315A of the Communications Act of 1934 and used by
the candidate.
``SEC. 509. BENEFITS FOR PARTICIPATING CANDIDATES.
``(a) In General.--A participating candidate shall be
entitled to--
``(1) for each election with respect to which a candidate
is certified as a participating candidate--
``(A) an allocation from the Fund to make or obligate to
make expenditures with respect to such election, as provided
in section 510;
``(B) fair fight funds, as provided in section 511; and
``(2) for the general election, vouchers for broadcasts of
political advertisements, as provided in section 315A of the
Communications Act of 1934 (47 U.S.C. 315A).
``(b) Restriction on Uses of Allocations From the Fund.--
Allocations from the Fund received by a participating
candidate under sections 510 and 511 may only be used for
campaign-related costs.
``(c) Remitting Allocations From the Fund.--Not later than
the date that is 45 days after the date of the election, a
participating candidate shall remit to the Commission for
deposit in the Senate Fair Elections Fund any unspent amounts
paid to such candidate under this title for such election.
``SEC. 510. ALLOCATIONS FROM THE FUND.
``(a) In General.--The Commission shall make allocations
from the Fund under section 509(a)(1)(A) to a participating
candidate--
``(1) in the case of amounts provided under subsection
(c)(1), not later than 48 hours after the date on which such
candidate is certified as a participating candidate under
section 508;
``(2) in the case of a general election, not later than 48
hours after--
``(A) the date the certification of the results of the
primary election or the primary runoff election; or
``(B) in any case in which there is no primary election,
the date the candidate qualifies to be placed on the ballot;
and
``(3) in the case of a primary runoff election or a general
runoff election, not later than 48 hours after the
certification of the results of the primary election or the
general election, as the case may be.
``(b) Method of Payment.--The Commission shall distribute
funds available to participating candidates under this
section through the use of an electronic funds exchange or a
debit card.
``(c) Amounts.--
``(1) Primary election allocation; initial allocation.--
``(A) In general.--Except as provided in subparagraphs (B),
the Commission shall make an allocation from the Fund for a
primary election to a participating candidate in an amount
equal to 67 percent of the base amount with respect to such
participating candidate.
``(B) Independent candidates.--In the case of a
participating candidate who is an independent candidate, the
Commission shall make an initial allocation from the Fund in
an amount equal to 25 percent of the base amount with respect
to such candidate.
``(C) Reduction for excess seed money.--An allocation from
the Fund for any candidate under this paragraph shall be
reduced by an amount equal to the aggregate amount of seed
money contributions received by the candidate in excess of
the sum of--
``(i) $75,000; plus
``(ii) $7,500 for each congressional district in excess of
1 in the State with respect to which the candidate is seeking
election.
``(2) Primary runoff election allocation.--The Commission
shall make an allocation from the Fund for a primary runoff
election to a participating candidate in an amount equal to
25 percent of the amount the participating candidate was
eligible to receive under this section for the primary
election.
``(3) General election allocation.--
``(A) In general.--Except as provided in subparagraph (B),
the Commission shall make an allocation from the Fund for a
general election to a participating candidate in an amount
equal to the base amount with respect to such candidate.
``(B) Uncontested elections.--
``(i) In general.--The Commission shall make an allocation
from the Fund to a participating candidate for a general
election that is uncontested in an amount equal to 25 percent
of the base amount with respect to such candidate.
``(ii) Uncontested elections.--For purposes of this
subparagraph, an election is uncontested if not more than 1
candidate has received contributions (including payments from
the Senate Fair Elections Fund) in an amount equal to or
greater than the lesser of--
``(I) the amount in effect for a candidate in such election
under paragraph (1)(C), or
``(II) an amount equal to 50 percent of the base amount
with respect to such candidate.
``(C) Reduction for excess seed money.--The allocation from
the Fund for the general election for any participating
candidate in a State that does not hold a primary election
shall be reduced by an amount equal to the aggregate amount
of seed money contributions received by the candidate in
excess of the sum of--
``(i) $75,000; plus
``(ii) $7,500 for each congressional district in excess of
1 in the State with respect to which the candidate is seeking
election.
``(4) General runoff election allocation.--The Commission
shall make an allocation from the Fund for a general runoff
election to a participating candidate in an amount equal to
25 percent of the base amount with respect to such candidate.
``(d) Base Amount.--
``(1) In general.--Except as otherwise provided in this
subsection, the base amount for any candidate is an amount
equal to the sum of--
``(A) $750,000; plus
``(B) $150,000 for each congressional district in excess of
1 in the State with respect to which the candidate is seeking
election.
``(2) Minor party and independent candidates.--
``(A) Reduced amount for certain candidates.--
[[Page S3376]]
``(i) In general.--In the case of a minor party candidate
or independent candidate described clause (ii), the base
amount is an amount equal to the product of--
``(I) a fraction the numerator of which is the highest
percentage of the vote received by the candidate or a
candidate of the same political party as such candidate in
the election described in clause (ii) and the denominator of
which is 25 percent; and
``(II) the amount that would (but for this paragraph) be
the base amount for the candidate under paragraph (1).
``(ii) Candidate described.--A candidate is described in
this clause if, in the most recent general election involving
the office of Senator, President, or Governor in the State in
which the candidate is seeking office--
``(I) such candidate, or any candidate of the same
political party as such candidate, received 5 percent or more
of the total number of votes cast for any such office; and
``(II) such candidate and all candidates of the same
political party as such candidate received less than 25
percent of the total number of votes cast for each such
office.
``(B) Exception.--Subparagraph (A) shall not apply to any
candidate if such candidate receives a number of qualifying
contributions which is greater than 150 percent of the number
of qualifying contributions such candidate is required to
receive in order to meet the requirements of section 505(a).
``(3) Indexing.--In each odd-numbered year after 2010--
``(A) each dollar amount under paragraph (1) shall be
increased by the percent difference between the price index
(as defined in section 315(c)(2)(A)) for the 12 months
preceding the beginning of such calendar year and the price
index for calendar year 2008;
``(B) each dollar amount so increased shall remain in
effect for the 2-year period beginning on the first day
following the date of the last general election in the year
preceding the year in which the amount is increased and
ending on the date of the next general election; and
``(C) if any amount after adjustment under subparagraph (A)
is not a multiple of $100, such amount shall be rounded to
the nearest multiple of $100.
``(4) Adjustment by media market.--
``(A) In general.--The Commission, in consultation with the
Federal Communications Commission, shall establish an index
reflecting the costs of the media markets in each State.
``(B) Adjustment.--At the beginning of each year, the
Commission shall increase the amount under paragraph (1)
(after application of paragraph (3)) based on the index
established under subparagraph (A).
``SEC. 511. PAYMENT OF FAIR FIGHT FUNDS.
``(a) Determination of Right to Payment.--
``(1) In general.--The Commission shall, on a regular
basis, make a determination on--
``(A) the amount of opposing funds with respect to each
participating candidate, and
``(B) the applicable amount with respect to each
participating candidate.
``(2) Basis of determinations.--The Commission shall make
determinations under paragraph (1) based on--
``(A) reports filed by the relevant opposing candidate
under section 304(a) with respect to amounts described in
subsection (c)(1)(A)(i)(I); and
``(B) reports filed by political committees under section
304(a) and by other persons under section 304(c) with respect
to--
``(i) opposing funds described in clauses (ii)(I) and
(iii)(I) of subsection (c)(1)(A); and
``(ii) applicable amounts described in subparagraphs (B)(i)
and (C)(i) of subsection (b)(2).
``(3) Requests for determination relating to certain
electioneering communications.--
``(A) In general.--A participating candidate may request to
the Commission to make a determination under paragraph (1)
with respect to any relevant opposing candidate with respect
to--
``(i) opposing funds described in clauses (ii)(II) and
(iii)(II) of subsection (c)(1)(A); and
``(ii) applicable amounts described in subparagraphs
(B)(ii) and (C)(ii) of subsection (b)(2).
``(B) Time for making determination.--In the case of any
such request, the Commission shall make such determination
and notify the participating candidate of such determination
not later than--
``(i) 24 hours after receiving such request during the 3-
week period ending on the date of the election, and
``(ii) 48 hours after receiving such request at any other
time.
``(b) Payments.--
``(1) In general.--The Commission shall make available to
the participating candidate fair fight funds in an amount
equal to the amount of opposing funds that is in excess of
the applicable amount--
``(A) immediately after making any determination under
subsection (a) with respect to any participating candidate
during the 3-week period ending on the date of the election,
and
``(B) not later than 24 hours after making such
determination at any other time.
``(2) Applicable amount.--For purposes of this section, the
applicable amount is an amount equal to the sum of--
``(A) the sum of--
``(i) the amount of seed money contribution received by the
participating candidate;
``(ii) in the case of a general election, the value of any
vouchers received by the candidate under section 315A of the
Communications Act of 1934; plus
``(iii)(I) in the case of a participating candidate who is
a minor party candidate running in a general election or an
independent candidate, the allocation from the Fund which
would have been provided to such candidate for such election
if such candidate were a major party candidate; or
``(II) in the case of any other participating candidate, an
amount equal to the allocation from the Fund to such
candidate for such election under section 510(c);
``(B) the sum of--
``(i) the amount of independent expenditures made
advocating the election of the participating candidate; plus
``(ii) the amount of disbursements for electioneering
communications which promote or support such participating
candidate;
``(C) the sum of--
``(i) the amount of independent expenditures made
advocating the defeat of the relevant opposing candidate;
plus
``(ii) the amount of disbursements for electioneering
communications which attack or oppose the relevant opposing
candidate; plus
``(D) the amount of fair fight funds previously provided to
the participating candidate under this subsection for the
election.
``(3) Limits on amount of payment.--The aggregate of fair
fight funds that a participating candidate receives under
this subsection for any election shall not exceed 200 percent
of the allocation from the Fund that the participating
candidate receives for such election under section 510(c).
``(c) Definitions.--For purposes of this section--
``(1) Opposing funds.--
``(A) In general.--The term `opposing funds' means, with
respect to any participating candidate for any election, the
sum of--
``(i)(I) the greater of the total contributions received by
the relevant opposing candidate or the total expenditures
made by such relevant opposing candidate; or
``(II) in the case of a relevant opposing candidate who is
a participating candidate, an amount equal to the sum of the
amount of seed money contributions received by the relevant
opposing candidate, the value of any vouchers received by the
relevant opposing candidate for the general election under
section 315A of the Communications Act of 1934, and the
allocation from the Fund under section 510(c) for the
relevant opposing candidate for such election;
``(ii) the sum of--
``(I) the amount of independent expenditures made
advocating the election of such relevant opposing candidate;
plus
``(II) the amount of disbursements for electioneering
communications which promote or support such relevant
opposing candidate; plus
``(iii) the sum of--
``(I) the amount of independent expenditures made
advocating the defeat of such participating candidate; plus
``(II) the amount of disbursements for electioneering
communications which attack or oppose such participating
candidate.
``(2) Relevant opposing candidate.--The term `relevant
opposing candidate' means, with respect to any participating
candidate, the opposing candidate of such participating
candidate with respect to whom the amount under paragraph (1)
is the greatest.
``(3) Electioneering communication.--The term
`electioneering communication' has the meaning given such
term under section 304(f)(3), except that subparagraph
(A)(i)(II)(aa) thereof shall be applied by substituting `30'
for `60'.
``SEC. 512. ADMINISTRATION OF THE SENATE FAIR ELECTIONS
SYSTEM.
``(a) Regulations.--The Commission shall prescribe
regulations to carry out the purposes of this title,
including regulations--
``(1) to establish procedures for--
``(A) verifying the amount of valid qualifying
contributions with respect to a candidate;
``(B) effectively and efficiently monitoring and enforcing
the limits on the use of personal funds by participating
candidates;
``(C) the expedited payment of fair fight funds during the
3-week period ending on the date of the election;
``(D) monitoring the use of allocations from the Fund under
this title through audits or other mechanisms; and
``(E) returning unspent disbursements and disposing of
assets purchased with allocations from the Fund;
``(2) providing for the administration of the provisions of
this title with respect to special elections;
``(3) pertaining to the replacement of candidates;
``(4) regarding the conduct of debates in a manner
consistent with the best practices of States that provide
public financing for elections; and
``(5) for attributing expenditures to specific elections
for the purposes of calculating opposing funds.
``(b) Operation of Commission.--The Commission shall
maintain normal business hours during the weekend immediately
before any general election for the purposes of administering
the provisions of this title, including the distribution of
fair fight funds under section 511.
``(c) Reports.--Not later than April 1, 2009, and every 2
years thereafter, the Commission shall submit to the Senate
Committee on
[[Page S3377]]
Rules and Administration a report documenting, evaluating,
and making recommendations relating to the administrative
implementation and enforcement of the provisions of this
title.
``SEC. 513. VIOLATIONS AND PENALTIES.
``(a) Civil Penalty for Violation of Contribution and
Expenditure Requirements.--If a candidate who has been
certified as a participating candidate under section 508(a)
accepts a contribution or makes an expenditure that is
prohibited under section 506, the Commission shall assess a
civil penalty against the candidate in an amount that is not
more than 3 times the amount of the contribution or
expenditure. Any amounts collected under this subsection
shall be deposited into the Senate Fair Elections Fund.
``(b) Repayment for Improper Use of Fair Elections Fund.--
``(1) In general.--If the Commission determines that any
benefit made available to a participating candidate under
this title was not used as provided for in this title or that
a participating candidate has violated any of the dates for
remission of funds contained in this title, the Commission
shall so notify the candidate and the candidate shall pay to
the Senate Fair Elections Fund an amount equal to--
``(A) the amount of benefits so used or not remitted, as
appropriate, and
``(B) interest on any such amounts (at a rate determined by
the Commission).
``(2) Other action not precluded.--Any action by the
Commission in accordance with this subsection shall not
preclude enforcement proceedings by the Commission in
accordance with section 309(a), including a referral by the
Commission to the Attorney General in the case of an apparent
knowing and willful violation of this title.''.
SEC. 103. REPORTING REQUIREMENTS FOR NONPARTICIPATING
CANDIDATES.
(a) In General.--Section 304 of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434) is amended by adding at
the end the following:
``(i) Nonparticipating Candidates.--
``(1) Initial report.--
``(A) In general.--Each nonparticipating candidate who is
opposed to a participating candidate and who receives
contributions or makes expenditures aggregating more than the
threshold amount shall, within 48 hours of the date such
aggregate contributions or expenditures exceed the threshold
amount, file with the Commission a report stating the total
amount of contributions received and expenditures made or
obligated by such candidate.
``(B) Threshold amount.--For purposes of this paragraph,
the term `threshold amount' means 75 percent of the
allocation from the Fund that a participating candidate would
be entitled to receive in such election under section 510 if
the participating candidate were a major party candidate.
``(2) Periodic reports.--
``(A) In general.--In addition to any reports required
under subsection (a), each nonparticipating candidate who is
required to make a report under paragraph (1) shall make the
following reports:
``(i) A report which shall be filed not later than 5 P.M.
on the forty-second day before the date on which the election
involving such candidate is held and which shall be complete
through the forty-fourth day before such date.
``(ii) A report which shall be filed not later than 5 P.M.
on the twenty-first day before the date on which the election
involving such candidate is held and which shall be complete
through the twenty-third day before such date.
``(iii) A report which shall be filed not later than 5 P.M.
on the twelfth day before the date on which the election
involving such candidate is held and which shall be complete
through the fourteenth day before such date.
``(B) Additional reporting within 2 weeks of election.--
Each nonparticipating candidate who is required to make a
report under paragraph (1) and who receives contributions or
makes expenditures aggregating more than $1,000 at any time
after the fourteenth day before the date of the election
involving such candidate shall make a report to the
Commission not later than 24 hours after such contributions
are received or such expenditures are made.
``(C) Contents of report.--Each report required under this
paragraph shall state the total amount of contributions
received and expenditures made or obligated to be made during
the period covered by the report.
``(3) Definitions.--For purposes of this subsection and
section 309(a)(13), the terms `nonparticipating candidate',
`participating candidate', and `allocation from the Fund'
have the respective meanings given to such terms under
section 501.''.
(b) Increased Penalty for Failure to File.--Section 309(a)
of the Federal Election Campaign Act of 1971 (2 U.S.C.
437(g)) is amended by adding at the end the following new
paragraph:
``(13) Increased civil penalties with respect to reporting
by nonparticipating candidates.--For purposes of paragraphs
(5) and (6), any civil penalty with respect to a violation of
section 304(i) shall not exceed the greater of--
``(A) the amount otherwise applicable without regard to
this paragraph; or
``(B) for each day of the violation, 3 times the amount of
the fair fight funds under section 511 that otherwise would
have been allocated to the participating candidate but for
such violation.''.
SEC. 104. MODIFICATION OF ELECTIONEERING COMMUNICATION
REPORTING REQUIREMENTS.
Paragraph (2) of section 304(f) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 434(f)(2)) is amended by
redesignating subparagraphs (E) and (F) as subparagraphs (F)
and (G), respectively, and by inserting after subparagraph
(D) the following new subparagraph:
``(E) in the case of a communication referring to any
candidate in an election involving a participating candidate
(as defined under section 501(9)), a transcript of the
electioneering communication.''.
SEC. 105. LIMITATION ON COORDINATED EXPENDITURES BY POLITICAL
PARTY COMMITTEES WITH PARTICIPATING CANDIDATES.
(a) In General.--Section 315(d)(3) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 441a(d)) is amended--
(1) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(2) by inserting before subparagraph (B), as redesignated
by paragraph (1), the following new subparagraph:
``(A) in the case of a candidate for election to the office
of Senator who is a participating candidate (as defined in
section 501), the lesser of--
``(i) 10 percent of the allocation from the Senate
Elections Fund that the participating candidate is eligible
to receive for the general election under section 510(c)(3);
or
``(ii) the amount which would (but for this subparagraph)
apply with respect to such candidate under subparagraph
(B);''.
(b) Conforming Amendment.--Subparagraph (B) of section
315(d)(3) of such Act, as redesignated by subsection (a), is
amended by inserting ``who is not a participating candidate
(as so defined)'' after ``office of Senator''.
SEC. 106. AUDITS.
Section 311(b) of the Federal Election Campaign Act of 1971
(2 U.S.C. 438(b)) is amended--
(1) by inserting ``(1)'' before ``The Commission''; and
(2) by adding at the end the following:
``(2) Audits of participating candidates.--
``(A) In general.--Notwithstanding paragraph (1), after
every primary, general, and runoff election, the Commission
shall conduct random audits and investigations of not less
than 30 percent of the authorized committees of candidates
who are participating candidates (as defined in section 501).
``(B) Selection of subjects.--The subjects of audits and
investigations under this paragraph shall be selected on the
basis of impartial criteria established by a vote of at least
4 members of the Commission.''.
Subtitle B--Senate Fair Elections Fund Revenues
SEC. 111. DEPOSIT OF PROCEEDS FROM RECOVERED SPECTRUM
AUCTIONS.
Section 309(j)(8)(E)(ii) of the Communications Act of 1934
(47 U.S.C. 309(j)(8)(E)(ii)) is amended--
(1) by striking ``deposited in'' and inserting the
following: ``deposited as follows:
``(I) 90 percent of such proceeds deposited in''; and
(2) by adding at the end the following:
``(II) 10 percent of such proceeds deposited in the Senate
Fair Elections Fund established under section 502 of the
Federal Election Campaign Act of 1972.''.
SEC. 112. TAX CREDIT FOR VOLUNTARY DONATIONS TO SENATE FAIR
ELECTIONS FUND.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 30D. CREDIT FOR CONTRIBUTIONS TO SENATE FAIR ELECTIONS
FUND.
``(a) Credit Allowed.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year
an amount equal to the lesser of--
``(1) the amount contributed to the Senate Fair Elections
Fund by the taxpayer during such taxable year, or
``(2) $500.
``(b) Limitations.--
``(1) No credit for qualifying contributions.--No credit
shall be allowed under subsection (a) for any contribution
which is a qualifying contribution (as defined under section
501(11) of the Federal Election Campaign Act of 1971).
``(2) No credit for designations under section 6097.--No
credit shall be allowed with respect to any amount designated
under section 6097.
``(3) Application with other credits.--The credit allowed
by subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the regular tax liability (as defined in section
26(b)) reduced by the sum of the credits allowable under
subpart A and sections 27, 30, 30B, and 30C, over
``(B) the tentative minimum tax for the taxable year.
``(c) Senate Fair Elections Fund.--For purposes of this
section, the term `Senate Fair Elections Fund' means the fund
established under section 502 of the Federal Election
Campaign Act of 1971.
``(d) Denial of Double Benefit.--No deduction shall be
allowed under this chapter for any amount for which a credit
is allowed under subsection (a).''.
[[Page S3378]]
(b) Clerical Amendment.--The table of section for subpart B
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 30C the following new item:
``Sec. 30D. Credit for contributions to Senate Fair Elections Fund.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
Subtitle C--Fair Elections Review Commission
SEC. 121. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established a commission to be
known as the ``Fair Elections Review Commission'' (hereafter
in this subtitle referred to as the ``Commission'').
(b) Duties.--
(1) Review of fair elections financing.--
(A) In general.--After each general election for Federal
office, the Commission shall conduct a comprehensive review
of the Senate fair elections financing program under title V
of the Federal Election Campaign Act of 1974, including--
(i) the number and value of qualifying contributions a
candidate is required to obtain under section 505 of such Act
to qualify for allocations from the Fund;
(ii) the amount of allocations from the Senate Fair
Elections Fund that candidates may receive under sections 510
and 511 of such Act;
(iii) the overall satisfaction of participating candidates
with the program; and
(iv) such other matters relating to financing of Senate
campaigns as the Commission determines are appropriate.
(B) Criteria for review.--In conducting the review under
subparagraph (A), the Commission shall consider the
following:
(i) Review of qualifying contribution requirements.--The
Commission shall consider whether the number and value of
qualifying contributions required strikes a balance between
the importance of voter choice and fiscal responsibility,
taking into consideration the number of primary and general
election participating candidates, the electoral performance
of those candidates, program cost, and any other information
the Commission determines is appropriate.
(ii) Review of program allocations.--The Commission shall
consider whether allocations from the Senate Elections Fund
under sections 510 ad 511 of the Federal Election Campaign
Act of 1974 are sufficient for voters in each State to learn
about the candidates to cast an informed vote, taking into
account the historic amount of spending by winning
candidates, media costs, primary election dates, and any
other information the Commission determines is appropriate.
(2) Report, recommendations, and proposed legislative
language.--
(A) Report.--Not later than March 30 following any general
election for Federal office, the Commission shall submit a
report to Congress on the review conducted under paragraph
(1). Such report shall contain a detailed statement of the
findings, conclusions, and recommendations of the Commission
based on such review, and shall contain any proposed
legislative language (as required under subparagraph (C)) of
the Commission.
(B) Findings, conclusions, and recommendations.--A finding,
conclusion, or recommendation of the Commission shall be
included in the report under subparagraph (A) only if not
less than 3 members of the Commission voted for such finding,
conclusion, or recommendation.
(C) Legislative language.--
(i) In general.--The report under subparagraph (A) shall
include legislative language with respect to any
recommendation involving--
(I) an increase in the number or value of qualifying
contributions; or
(II) an increase in the amount of allocations from the
Senate Elections Fund.
(ii) Form.--The legislative language shall be in the form
of a proposed bill for introduction in Congress and shall not
include any recommendation not related to matter described
subclause (I) or (II) of clause (i)
SEC. 122. STRUCTURE AND MEMBERSHIP OF THE COMMISSION.
(a) Appointment.--
(1) In general.--The Commission shall be composed of 5
members, of whom--
(A) 1 shall be appointed by the President pro tempore of
the Senate;
(B) 1 shall be appointed by the Minority Leader of the
Senate; and
(C) 3 shall be appointed jointly by the members appointed
under subparagraphs (A) and (B).
(2) Qualifications.--
(A) In general.--The members shall be individuals who are
nonpartisan and, by reason of their education, experience,
and attainments, exceptionally qualified to perform the
duties of members of the Commission.
(B) Prohibition.--No member of the Commission may be--
(i) a member of Congress;
(ii) an employee of the Federal government;
(iii) a registered lobbyist; or
(iv) an officer or employee of a political party or
political campaign.
(3) Date.--Members of the Commission shall be appointed not
later than 60 days after the date of the enactment of this
Act.
(4) Terms.--A member of the Commission shall be appointed
for a term of 5 years.
(b) Vacancies.--A vacancy on the Commission shall be filled
not later than 30 calendar days after the date on which the
Commission is given notice of the vacancy, in the same manner
as the original appointment. The individual appointed to fill
the vacancy shall serve only for the unexpired portion of the
term for which the individual's predecessor was appointed.
(c) Chairperson.--The Commission shall designate a
Chairperson from among the members of the Commission.
SEC. 123. POWERS OF THE COMMISSION.
(a) Meetings and Hearings.--
(1) Meetings.--The Commission may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable
to carry out the purposes of this Act.
(2) Quorum.--Four members of the Commission shall
constitute a quorum for purposes of voting, but a quorum is
not required for members to meet and hold hearings.
(b) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry
out the provisions of this Act. Upon request of the
Chairperson of the Commission, the head of such department or
agency shall furnish such information to the Commission.
(c) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(d) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 124. ADMINISTRATION.
(a) Compensation of Members.--
(1) In general.--
(A) In general.--Each member, other than the Chairperson,
shall be paid at a rate equal to the daily equivalent of the
minimum annual rate of basic pay prescribed for level IV of
the Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which such member is engaged in the performance of the duties
of the Commission.
(B) Chairperson.--The Chairperson shall be paid at a rate
equal to the daily equivalent of the minimum annual rate of
basic pay prescribed for level III of the Executive Schedule
under section 5314 of title 5, United States Code, for each
day (including travel time) during which such member is
engaged in the performance of the duties of the Commission.
(2) Travel expenses.--Members shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5, United
States Code, while away from their homes or regular places of
business in performance of services for the Commission.
(b) Personnel.--
(1) Director.--The Commission shall have a staff headed by
an Executive Director. The Executive Director shall be paid
at a rate equivalent to a rate established for the Senior
Executive Service under section 5382 of title 5, United
States Code.
(2) Staff appointment.--With the approval of the
Chairperson, the Executive Director may appoint such
personnel as the Executive Director and the Commission
determines to be appropriate.
(3) Actuarial experts and consultants.--With the approval
of the Chairperson, the Executive Director may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
(4) Detail of government employees.--Upon the request of
the Chairperson, the head of any Federal agency may detail,
without reimbursement, any of the personnel of such agency to
the Commission to assist in carrying out the duties of the
Commission. Any such detail shall not interrupt or otherwise
affect the civil service status or privileges of the Federal
employee.
(5) Other resources.--The Commission shall have reasonable
access to materials, resources, statistical data, and other
information from the Library of Congress and other agencies
and elected representatives of the executive and legislative
branches of the Federal Government. The Chairperson of the
Commission shall make requests for such access in writing
when necessary.
SEC. 125. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out the purposes of this subtitle.
SEC. 126. EXPEDITED CONSIDERATION OF COMMISSION
RECOMMENDATIONS.
(a) Introduction and Committee Consideration.--
(1) Introduction.--Not later than 60 days after the
Commission files a report under section 121(b), the Majority
Leader of the Senate, or the Majority Leader's designee,
shall introduce any proposed legislative language submitted
by the Commission under section 121(b)(2)(C) in the Senate
(hereafter in this section referred to as a ``Commission
bill'').
(2) Committee consideration.--
(A) Referral.--A Commission bill introduced in the Senate
shall be referred to the Committee on Rules and
Administration of the Senate.
(B) Reporting.--Not later than 60 calendar days after the
introduction of the Commission bill, the Committee on Rules
and Administration shall hold a hearing on the bill and
report the bill to the Senate. No amendment shall be in order
to the bill in the Committee.
(C) Discharge of committee.--If the Committee on Rules and
Administration has not
[[Page S3379]]
reported a Commission bill at the end of 60 calendar days
after its introduction, such committee shall be automatically
discharged from further consideration of the Commission bill
and it shall be placed on the appropriate calendar.
(b) Expedited Procedure.--
(1) Floor consideration in the senate.--
(A) In general.--Not later than 60 calendar days after the
date on which a committee has reported or has been discharged
from consideration of a Commission bill, the Majority Leader
of the Senate, or the Majority Leader's designee shall move
to proceed to the consideration of the Commission bill. It
shall also be in order for any member of the Senate to move
to proceed to the consideration of the bill at any time after
the conclusion of such 60-day period.
(B) Motion to proceed.--A motion to proceed to the
consideration of a Commission bill is privileged in the
Senate. The motion is not debatable and is not subject to a
motion to postpone consideration of the Commission bill or to
proceed to the consideration of other business. A motion to
reconsider the vote by which the motion to proceed is agreed
to or not agreed to shall not be in order. If the motion to
proceed is agreed to, the Senate shall immediately proceed to
consideration of the Commission bill without intervening
motion, order, action, or other business, and the Commission
bill shall remain the unfinished business of the Senate until
disposed of.
(C) Amendments, motions, and appeals.--No amendment shall
be in order in the Senate, and any debatable motion or appeal
is debatable for not to exceed 5 hours to be divided equally
between those favoring and those opposing the motion or
appeal.
(D) Limited debate.--Consideration in the Senate of the
Commission bill and on all debatable motions and appeals in
connection therewith, shall be limited to not more than 40
hours, which shall be equally divided between, and controlled
by, the Majority Leader and the Minority Leader of the Senate
or their designees. A motion further to limit debate on the
Commission bill is in order and is not debatable. All time
used for consideration of the Commission bill, including time
used for quorum calls (except quorum calls immediately
preceding a vote), shall come from the 40 hours of
consideration.
(E) Vote on passage.--
(i) In general.--The vote on passage in the Senate of the
Commission bill shall occur immediately following the
conclusion of the 40-hour period for consideration of the
Commission bill under subparagraph (D) and a request to
establish the presence of a quorum.
(ii) Other motions not in order.--A motion in the Senate to
postpone consideration of the Commission bill, a motion to
proceed to the consideration of other business, or a motion
to recommit the Commission bill is not in order. A motion in
the Senate to reconsider the vote by which the Commission
bill is agreed to or not agreed to is not in order.
(2) Floor consideration in the house.--
(A) In general.--If a Commission bill is agreed to in the
Senate, the Majority Leader of the House of Representatives,
or the Majority Leader's designee shall move to proceed to
the consideration of the Commission bill not later than 30
days after the date the House or Representatives receives
notice of such agreement. It shall also be in order for any
member of the House of Representatives to move to proceed to
the consideration of the bill at any time after the
conclusion of such 30-day period.
(B) Motion to proceed.--A motion to proceed to the
consideration of a Commission bill is privileged in the House
of Representatives. The motion is not debatable and is not
subject to a motion to postpone consideration of the
Commission bill or to proceed to the consideration of other
business. A motion to reconsider the vote by which the motion
to proceed is agreed to or not agreed to shall not be in
order. If the motion to proceed is agreed to, the House of
Representatives shall immediately proceed to consideration of
the Commission bill without intervening motion, order,
action, or other business, and the Commission bill shall
remain the unfinished business of the House of
Representatives until disposed of.
(C) Amendments, motions, and appeals.--No amendment shall
be in order in the House of Representatives, and any
debatable motion or appeal is debatable for not to exceed 5
hours to be divided equally between those favoring and those
opposing the motion or appeal.
(D) Limited debate.--Consideration in the House of
Representatives of the Commission bill and on all debatable
motions and appeals in connection therewith, shall be limited
to not more than 40 hours, which shall be equally divided
between, and controlled by, the Majority Leader and the
Minority Leader of the House of Representatives or their
designees. A motion further to limit debate on the Commission
bill is in order and is not debatable. All time used for
consideration of the Commission bill, including time used for
quorum calls (except quorum calls immediately preceding a
vote), shall come from the 40 hours of consideration.
(E) Vote on passage.--
(i) In general.--The vote on passage in the House of
Representatives of the Commission bill shall occur
immediately following the conclusion of the 40-hour period
for consideration of the Commission bill under subparagraph
(D) and a request to establish the presence of a quorum.
(ii) Other motions not in order.--A motion in the House of
Representatives to postpone consideration of the Commission
bill, a motion to proceed to the consideration of other
business, or a motion to recommit the Commission bill is not
in order. A motion in the House of Representatives to
reconsider the vote by which the Commission bill is agreed to
or not agreed to is not in order.
(c) Rules of Senate and House of Representatives.--This
section is enacted by Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed
in that House in the case of a Commission bill, and it
supersedes other rules only to the extent that it is
inconsistent with such rules, and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.
TITLE II--VOTER INFORMATION
SEC. 201. BROADCASTS RELATING TO CANDIDATES.
(a) Lowest Unit Charge; National Committees.--Section
315(b) of the Communications Act of 1934 (47 U.S.C. 315(b))
is amended--
(1) by striking ``to such office'' in paragraph (1) and
inserting ``to such office, or by a national committee of a
political party on behalf of such candidate in connection
with such campaign,''; and
(2) by inserting ``for pre-emptible use thereof'' after
``station'' in subparagraph (A) of paragraph (1).
(b) Broadcast Rates.--Section 315(b) of the Communications
Act of 1934 (47 U.S.C. 315(b)), as amended by subsection (a),
is amended--
(1) in paragraph (1)(A), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)''; and
(2) by adding at the end the following:
``(3) Participating candidates.--In the case of a
participating candidate (as defined under section 501(10) of
the Federal Election Campaign Act of 1971), the charges made
for the use any broadcasting station for a television
broadcast shall not exceed 80 percent of the lowest charge
described in paragraph (1)(A) during--
``(A) the 45 days preceding the date of a primary or
primary runoff election in which the candidate is opposed;
and
``(B) the 60 days preceding the date of a general or
special election in which the candidate is opposed.
``(4) Rate cards.--A licensee shall provide to a candidate
for Senate a rate card that discloses--
``(A) the rate charged under this subsection; and
``(B) the method that the licensee uses to determine the
rate charged under this subsection.''.
(c) Preemption; Audits.--Section 315 of such Act (47 U.S.C.
315) is amended--
(1) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively and moving them to follow the
existing subsection (e);
(2) by redesignating the existing subsection (e) as
subsection (c); and
(3) by inserting after subsection (c) (as redesignated by
paragraph (2)) the following:
``(d) Preemption.--
``(1) In general.--Except as provided in paragraph (2), and
notwithstanding the requirements of subsection (b)(1)(A), a
licensee shall not preempt the use of a broadcasting station
by a legally qualified candidate for Senate who has purchased
and paid for such use.
``(2) Circumstances beyond control of licensee.--If a
program to be broadcast by a broadcasting station is
preempted because of circumstances beyond the control of the
station, any candidate or party advertising spot scheduled to
be broadcast during that program shall be treated in the same
fashion as a comparable commercial advertising spot.
``(e) Audits.--During the 45-day period preceding a primary
election and the 60-day period preceding a general election,
the Commission shall conduct such audits as it deems
necessary to ensure that each broadcaster to which this
section applies is allocating television broadcast
advertising time in accordance with this section and section
312.''.
(d) Revocation of License for Failure to Permit Access.--
Section 312(a)(7) of the Communications Act of 1934 (47
U.S.C. 312(a)(7)) is amended--
(1) by striking ``or repeated'';
(2) by inserting ``or cable system'' after ``broadcasting
station''; and
(3) by striking ``his candidacy'' and inserting ``the
candidacy of the candidate, under the same terms, conditions,
and business practices as apply to the most favored
advertiser of the licensee''.
(e) Stylistic Amendments.--Section 315 of such Act (47
U.S.C. 315) is amended--
(1) by striking ``the'' in subsection (f)(1), as
redesignated by subsection (b)(1), and inserting
``Broadcasting station.--'';
(2) by striking ``the'' in subsection (f)(2), as
redesignated by subsection (b)(1), and inserting ``Licensee;
station licensee.--''; and
(3) by inserting ``Regulations.--'' in subsection (g), as
redesignated by subsection (b)(1), before ``The Commission''.
[[Page S3380]]
SEC. 202. POLITICAL ADVERTISEMENT VOUCHERS FOR PARTICIPATING
CANDIDATES.
(a) In General.--Title III of the Communications Act of
1934 (47 U.S.C. 301 et seq.) is amended by inserting after
section 315 the following:
``SEC. 315A. POLITICAL ADVERTISEMENT VOUCHER PROGRAM.
``(a) In General.--The Commission shall establish and
administer a voucher program for the purchase of airtime on
broadcasting stations for political advertisements in
accordance with the provisions of this section.
``(b) Candidates.--The Commission shall only disburse
vouchers under the program established under subsection (a)
to individuals who meet the following requirements:
``(1) Qualification.--The individual is certified by the
Federal Election Commission as a participating candidate (as
defined under section 501(10) of the Federal Election
Campaign Act of 1971) with respect to a general election for
Federal office under section 508 of the Federal Election
Campaign Act of 1971.
``(2) Agreement.--The individual has agreed in writing--
``(A) to keep and furnish to the Federal Election
Commission such records, books, and other information as it
may require; and
``(B) to repay to the Federal Communications Commission, if
the Federal Election Commission revokes the certification of
the individual as a participating candidate (as so defined),
an amount equal to the dollar value of vouchers which were
received from the Commission and used by the candidate.
``(c) Amounts.--The Commission shall disburse vouchers to
each candidate certified under subsection (b) in an aggregate
amount equal to $100,000 multiplied by the number of
congressional districts in the State with respect to which
such candidate is running for office.
``(d) Use.--
``(1) Exclusive use.--Vouchers disbursed by the Commission
under this section may be used only for the purchase of
broadcast airtime for political advertisements relating to a
general election for the office of Senate by the
participating candidate to which the vouchers were disbursed,
except that--
``(A) a candidate may exchange vouchers with a political
party under paragraph (2); and
``(B) a political party may use vouchers only to purchase
broadcast airtime for political advertisements for generic
party advertising, to support candidates for State or local
office in a general election, or to support participating
candidates of the party in a general election for Federal
office, but only if it discloses the value of the voucher
used as an expenditure under section 315(d) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 441(d)).
``(2) Exchange with political party committee.--
``(A) In general.--An individual who receives a voucher
under this section may transfer the right to use all or a
portion of the value of the voucher to a committee of the
political party of which the individual is a candidate in
exchange for money in an amount equal to the cash value of
the voucher or portion exchanged.
``(B) Continuation of candidate obligations.--The transfer
of a voucher, in whole or in part, to a political party
committee under this paragraph does not release the candidate
from any obligation under the agreement made under subsection
(b)(2) or otherwise modify that agreement or its application
to that candidate.
``(C) Party committee obligations.--Any political party
committee to which a voucher or portion thereof is
transferred under subparagraph (A)--
``(i) shall account fully, in accordance with such
requirements as the Commission may establish, for the receipt
of the voucher; and
``(ii) may not use the transferred voucher or portion
thereof for any purpose other than a purpose described in
paragraph (1)(B).
``(D) Voucher as a contribution under feca.--If a candidate
transfers a voucher or any portion thereof to a political
party committee under subparagraph (A)--
``(i) the value of the voucher or portion thereof
transferred shall be treated as a contribution from the
candidate to the committee, and from the committee to the
candidate, for purposes of sections 302 and 304 of the
Federal Election Campaign Act of 1971 (2 U.S.C. 432 and 434);
``(ii) the committee may, in exchange, provide to the
candidate only funds subject to the prohibitions,
limitations, and reporting requirements of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431 et seq.); and
``(iii) the amount, if identified as a `voucher exchange'
shall not be considered a contribution for the purposes of
sections 315 or 506 of that Act.
``(e) Value; Acceptance; Redemption.--
``(1) Voucher.--Each voucher disbursed by the Commission
under this section shall have a value in dollars, redeemable
upon presentation to the Commission, together with such
documentation and other information as the Commission may
require, for the purchase of broadcast airtime for political
advertisements in accordance with this section.
``(2) Acceptance.--A broadcasting station shall accept
vouchers in payment for the purchase of broadcast airtime for
political advertisements in accordance with this section.
``(3) Redemption.--The Commission shall redeem vouchers
accepted by broadcasting stations under paragraph (2) upon
presentation, subject to such documentation, verification,
accounting, and application requirements as the Commission
may impose to ensure the accuracy and integrity of the
voucher redemption system. The Commission shall use amounts
in the Political Advertising Voucher Account established
under subsection (f) to redeem vouchers presented under this
subsection.
``(4) Expiration.--
``(A) Candidates.--A voucher may only be used to pay for
broadcast airtime for political advertisements to be
broadcast before midnight on the day before the date of the
Federal election in connection with which it was issued and
shall be null and void for any other use or purpose.
``(B) Exception for political party committees.--A voucher
held by a political party committee may be used to pay for
broadcast airtime for political advertisements to be
broadcast before midnight on December 31st of the odd-
numbered year following the year in which the voucher was
issued by the Commission.
``(5) Voucher as expenditure under feca.--
``(A) In general.--Except as provided in subparagraph (B),
for purposes of the Federal Election Campaign Act of 1971 (2
U.S.C. 431 et seq.), the use of a voucher to purchase
broadcast airtime constitutes an expenditure as defined in
section 301(9)(A) of that Act (2 U.S.C. 431(9)(A)).
``(B) Participating candidates.--The use of a voucher to
purchase broadcast airtime by a participating candidate shall
not constitute an expenditure for purposes of section 506 of
such Act.
``(f) Political Advertising Voucher Account.--
``(1) In general.--The Commission shall establish an
account to be known as the Political Advertising Voucher
Account, which shall be credited with commercial television
and radio spectrum use fees assessed under this subsection,
together with any amounts repaid or otherwise reimbursed
under this section or section 508(b)(2)(B) of the Federal
Election Campaign Act of 1971.
``(2) Spectrum use fee.--
``(A) In general.--The Commission shall assess, and collect
annually, from each broadcast station, a spectrum use fee in
an amount equal to 2 percent of each broadcasting station's
gross advertising revenues for such year.
``(B) Availability.--
``(i) In general.--Any amount assessed and collected under
this paragraph shall be used by the Commission as an
offsetting collection for the purposes of making
disbursements under this section, except that--
``(I) the salaries and expenses account of the Commission
shall be credited with such sums as are necessary from those
amounts for the costs of developing and implementing the
program established by this section; and
``(II) the Commission may reimburse the Federal Election
Commission for any expenses incurred by the Commission under
this section.
``(ii) Deposit of excess fees into senate fair elections
fund.--If the amount assessed and collected under this
paragraph for years in any election period exceeds the amount
necessary for making disbursements under this section for
such election period, the Commission shall deposit such
excess in the Senate Fair Elections Fund.
``(C) Fee does not apply to public broadcasting stations.--
Subparagraph (A) does not apply to a public
telecommunications entity (as defined in section 397(12) of
this Act).
``(3) Administrative provisions.--Except as otherwise
provided in this subsection, section 9 of this Act applies to
the assessment and collection of fees under this subsection
to the same extent as if those fees were regulatory fees
imposed under section 9.
``(g) Definitions.--In this section:
``(1) Broadcasting station.--The term `broadcasting
station' has the meaning given that term by section 315(f)(1)
of this Act.
``(2) Federal election.--The term `Federal election' means
any regularly-scheduled, primary, runoff, or special election
held to nominate or elect a candidate to Federal office.
``(3) Federal office.--The term `Federal office' has the
meaning given that term by section 301(3) of the Federal
Election Campaign Act of 1971 (2 U.S.C. 431(3)).
``(4) Political party.--The term `political party' means a
major party or a minor party as defined in section 9002(3) or
(4) of the Internal Revenue Code of 1986 (26 U.S.C. 9002(3)
or (4)).
``(5) Other terms.--Except as otherwise provided in this
section, any term used in this section that is defined in
section 301 or 501 of the Federal Election Campaign of 1971
(2 U.S.C. 431) has the meaning given that term by either such
section of that Act.
``(h) Regulations.--The Commission shall prescribe such
regulations as may be necessary to carry out the provisions
of this section. In developing the regulations, the
Commission shall consult with the Federal Election
Commission.''.
SEC. 203. FCC TO PRESCRIBE STANDARDIZED FORM FOR REPORTING
CANDIDATE CAMPAIGN ADS.
(a) In General.--Within 90 days after the date of enactment
of this Act, the Federal Communications Commission shall
initiate a rulemaking proceeding to establish a standardized
form to be used by broadcasting stations, as defined in
section 315(f)(1) of the Communications Act of 1934 (47
U.S.C. 315(f)(1)), to record and report the purchase
[[Page S3381]]
of advertising time by or on behalf of a candidate for
nomination for election, or for election, to Federal elective
office.
(b) Contents.--The form prescribed by the Commission under
subsection (a) shall require, broadcasting stations to
report, at a minimum--
(1) the station call letters and mailing address;
(2) the name and telephone number of the station's sales
manager (or individual with responsibility for advertising
sales);
(3) the name of the candidate who purchased the advertising
time, or on whose behalf the advertising time was purchased,
and the Federal elective office for which he or she is a
candidate;
(4) the name, mailing address, and telephone number of the
person responsible for purchasing broadcast political
advertising for the candidate;
(5) notation as to whether the purchase agreement for which
the information is being reported is a draft or final
version; and
(6) the following information about the advertisement:
(A) The date and time of the broadcast.
(B) The program in which the advertisement was broadcast.
(C) The length of the broadcast airtime.
(c) Internet Access.--In its rulemaking under subsection
(a), the Commission shall require any broadcasting station
required to file a report under this section that maintains
an Internet website to make available a link to such reports
on that website.
SEC. 204. LIMIT ON CONGRESSIONAL USE OF THE FRANKING
PRIVILEGE.
(a) In General.--Section 3210(a)(6) of title 39, United
States Code, is amended by striking subparagraph (A) and
inserting the following:
``(A)(i) Except as provided in clause (ii), Member of
Congress or a Congressional Committee or Subcommittee of
which such Member is Chairman or Ranking Member shall not
mail any mass mailing as franked mail during the period which
begins 90 days before date of the primary election and ends
on the date of the general election with respect to any
Federal office which such Member holds, unless the Member has
made a public announcement that the Member will not be a
candidate for reelection to such office in that year.
``(ii) A Member of Congress or a Congressional Committee or
Subcommittee of which such Member is Chairman or Ranking
Member may mail a mass mailing as franked mail if--
``(I) the purpose of the mailing is to communicate
information about a public meeting; and
``(II) the content of the mailed matter includes only the
name of the Member, Committee, or Subcommittee, as
appropriate, and the date, time, and place of the public
meeting.''.
(b) Conforming Amendments.--
(1) Section 3210(a)(6) of title 39, United States Code, is
amended by striking subparagraph (B) and by redesignating
subparagraphs (C) through (F) as subparagraphs (B) through
(E), respectively.
(2) Section 3210(a)(6)(E) of title 39, United States Code,
as redesignated by paragraph (1), is amended by striking
``subparagraphs (A) and (C)'' and inserting ``subparagraphs
(A) and (B)''.
TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION
SEC. 301. PETITION FOR CERTIORARI.
Section 307(a)(6) of the Federal Election Campaign Act of
1971 (2 U.S.C. 437d(a)(6)) is amended by inserting
``(including a proceeding before the Supreme Court on
certiorari)'' after ``appeal''.
SEC. 302. FILING BY SENATE CANDIDATES WITH COMMISSION.
Section 302(g) of the Federal Election Campaign Act of 1971
(2 U.S.C. 432(g)) is amended to read as follows:
``(g) Filing With the Commission.--All designations,
statements, and reports required to be filed under this Act
shall be filed with the Commission.''.
SEC. 303. ELECTRONIC FILING OF FEC REPORTS.
Section 304(a)(11) of the Federal Election Campaign Act of
1971 (2 U.S.C. 434(a)(11)) is amended--
(1) in subparagraph (A), by striking ``under this Act--''
and all that follows and inserting ``under this Act shall be
required to maintain and file such designation, statement, or
report in electronic form accessible by computers.'';
(2) in subparagraph (B), by striking ``48 hours'' and all
that follows through ``filed electronically)'' and inserting
``24 hours''; and
(3) by striking subparagraph (D).
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. SEVERABILITY.
If any provision of this Act or amendment made by this Act,
or the application of a provision or amendment to any person
or circumstance, is held to be unconstitutional, the
remainder of this Act and amendments made by this Act, and
the application of the provisions and amendment to any person
or circumstance, shall not be affected by the holding.
SEC. 402. REVIEW OF CONSTITUTIONAL ISSUES.
An appeal may be taken directly to the Supreme Court of the
United States from any final judgment, decree, or order
issued by any court ruling on the constitutionality of any
provision of this Act or amendment made by this Act.
SEC. 403. EFFECTIVE DATE.
Except as otherwise provided for in this Act, this Act and
the amendments made by this Act shall take effect on January
1, 2008.
______
By Mrs. CLINTON (for herself and Mr. Allard):
S. 937. A bill to improve support and services for individuals with
autism and their families; to the Committee on Health, Education,
Labor, and Pensions.
Mrs. CLINTON. Mr. President, today, I, along with my colleague
Senator Allard, am proud to introduce the Expanding the Promise for
Individuals with Autism Act (EPIAA.) This legislation will help to
increase the availability of treatments, services, and interventions
for both children and adults with autism.
Last year, I worked with my colleagues on the HELP Committee to pass
the Combating Autism Act into law. This important bill will increase
the amount and type of research we are doing to understand the origins
of this disease, and help us develop new treatments--and eventually--a
cure. It will also help to increase the ability of our health
professionals to screen and diagnose autism as early as possible in
children, so as to improve our ability to treat this disease.
But while we are carrying out the research that will lead us to gain
a better understanding of this disorder, we cannot forget those who are
and who have been living with this disease today--the families who are
desperate for assistance and help with a disorder that so often shuts
off individuals from the world around them.
The need for this legislation is evident--we continue to see an
increasing number of individuals with autism. Last month, the Centers
for Disease Control and Prevention released numbers that estimate that
one in every 150 children are living with an autism spectrum disorder,
numbers that are higher than those released even just a few short years
ago. And our service delivery system for individuals with autism is
being overwhelmed by this increase. The care involved in treating these
symptoms often requires hours of intensive therapy every week--regimens
that are often inaccessible to many families.
While we do not know what causes autism, we do know that with early
intervention and concentrated treatment, the symptoms of autism
spectrum disorder can be mitigated, enabling individuals with autism
and their families to live less isolated lives. Our legislation will
provide additional treatment and support resources, increasing access
to effective therapies and essential support services for people with
autism.
This legislation will do the following: Establish a Demonstration
Grant Program to Assist States with Service Provision. While the
Interagency Autism Coordinating Committee (IACC) is developing a long-
term strategy for providing autism care and treatment services, there
is currently no effort to plan for improved access to services in the
immediate future. The EPIAA would establish a Treatment, Interventions
and Services Evaluation Task Force to evaluate evidence-based services
that could be implemented by States in the years immediately following
enactment. The Secretary would then provide grants to states to help
provide the services identified by the Task Force to individuals with
autism.
Develop a Demonstration Grant Program for Adult Autism Services.
While early diagnosis and treatment are critical for children with
autism, the need for intervention and services continues across the
lifespan. In order to help address the needs of adults living with
autism, the EPIAA would establish a grant program for states to provide
appropriate interventions and services, such as housing or vocational
training, to adults with autism.
Increase Access to Services Following Diagnosis. After receiving a
diagnosis of autism, many children and families must wait months before
gaining access to appropriate treatment. In order to improve the
ability to access a minimum level of services during this post-
diagnosis period, the EPIAA would mandate that the Secretary develop
guidance and provide funding to eliminate delays in access to
supplementary health care, behavioral support services, and individual
and family-support services.
[[Page S3382]]
Increase Support for Developmental Disabilities Centers of
Excellence. Many families report difficulties in accessing services
because of the limited number of health and education professionals who
are trained to provide autism-specific services. In order to increase
the number of individuals across sectors that can provide adequate care
and treatment services for individuals living with autism, the EPIAA
would increase the capacity of University Centers for Excellence in
Developmental Disabilities Education, Research and Service (UCEDDS) to
train professionals in meeting the treatment, interventions and service
needs of both children and adults living with autism.
Improve Protection and Advocacy Services. Early statistics from 2006
indicate that a quarter of individuals served under already-existing
protection and advocacy programs are individuals with autism, a 6
percent increase from the previous year, yet thousands of individuals
with autism are unable to access these services due to a lack of
resources. The EPIAA will create a program to expand currently existing
protection and advocacy services to assist individuals with autism and
other emerging populations of individuals with disabilities.
Improves Technical Assistance and Evaluation. The EPIAA would
establish a National Technical Assistance Center for Autism Treatments,
Interventions and Services to act as a clearinghouse for information
about evidence-based treatments, interventions and services, and
analyze the grant programs under this Act.
The organizations supporting this legislation include Autism Speaks,
the Autism Society of America, Easter Seals, the Association of
University Centers for Disability, the Disability Policy Collaboration,
and the National Disability Rights Network, and I have included their
letters of support to be printed in the Record.
I look forward to working with Senator Allard and all of our
colleagues to pass this legislation and help people with autism get the
services they need.
There being no objection, the letters were ordered to be printed in
the Record, as follows:
Autism Speaks,
New York, NY, March 19, 2007.
Hon. Hillary Rodham Clinton,
U.S. Senator,
Washington, DC.
Dear Senator Clinton: I write to offer the enthusiastic
endorsement of Autism Speaks for your proposed legislation,
``The Expanding the Promise for Individuals with Autism Act
of 2007'' (``EPIAA'') and to thank you for your ongoing
leadership in providing an appropriate and necessary federal
response to the urgent national public health issue of
autism.
Your bill is the logical next step for Congress to take in
creating a national battle plan against autism, following the
passage last year, with your significant support, of the
Combating Autism Act.
The CAA deals primarily with biomedical research and with
systems for the early identification of children with autism.
The EPIAA will expand and intensify the federal commitment to
the provision of services to persons with autism, from the
immediate period following their diagnosis, throughout their
lifespan.
In addition to the authorization of critical new resources
for important initiatives related to treatments,
interventions and services for both children and adults with
autism, Autism Speaks applauds the Congressional finding you
have drafted into the EPIAA that--``Individuals living with
autism have the same rights as other individuals to exert
control and choice over their own lives, to live
independently, and to fully participate in and contribute to
their communities . . .''
The range of grant programs authorized by the EPIAA will
demonstrate mechanisms to fill large gaps in the present
system for the delivery of autism treatments, interventions
and services. The task force to be created by your
legislation--including vital input from the autism
community--will facilitate consensus on the state of
evidence-based treatments and services. And the GAO study,
which your legislation requires, will provide the basis for
dramatically improved service provision and financing.
Once again, please accept the support and gratitude of
Autism Speaks for the EPIAA. We look forward to working with
you and your fine staff to enact these essential policies
into law.
Sincerely,
Robert C. Wright.
____
Autism Society of America,
Bethesda, MD, March 20, 2007.
Hon. Hillary Rodham Clinton,
U.S. Senate,
Washington, DC.
Hon. Wayne Allard,
U.S. Senate,
Washington, DC.
Dear Senator Clinton and Senator Allard: On behalf of the
1.5 million Americans with autism and their families, we at
the Autism Society of America (ASA) write in strong support
of the Expanding the Promise for Individuals with Autism Act
of 2007.
Autism is a complex developmental disability that affects
the normal functioning of the brain, impacting development in
the areas of social interaction and communication skills.
Both children and adults with autism typically show
difficulties in verbal and non-verbal communication, social
interactions, and sensory processing. Research has
demonstrated that with early diagnosis, treatment, and
intervention, however, individuals with autism can experience
positive change in the language, social, or cognitive
outcomes. Unfortunately, as the Centers for Disease Control
and Prevention's autism prevalence study of 2007 showed, far
too many children with autism are not accessing the early
interventions, treatments, and services that they need.
Just as critical, our current system for providing
community based services does not meet the complex needs of
adults with autism. Frequently, staff is not trained and
experienced in autism and is often at a loss when trying to
handle the unusual language, cognitive, behavioral and social
deficits of autism. As a result, adults with autism are not
able to access employment, health care, housing, and
community support services.
The Expanding the Promise for Individuals with Autism Act
addresses these problems in many ways. This critical
legislation provides approximately $350 million to improve
access to comprehensive treatments, interventions, and
services for individuals with autism and their families. The
Expanding the Promise for Individuals with Autism Act comes
at a time when autism prevalence is increasing to more than 1
in 150 children in America today. As our Nation faces the
epidemic of autism, we must take steps now to strengthen our
services infrastructure to meet the needs of individuals with
autism and their families so that they too can lead happy and
productive lives throughout their lives.
ASA strongly supports the Expanding the Promise for
Individuals With Autism Act of 2007, and applauds you for
your leadership on this important issue. We urge all Senators
to join you in cosponsoring this important legislation.
Thank you, again, for your support of people with autism
and their families.
Sincerely,
Lee Grossman,
President and CEO.
____
Disability Policy Collaboration,
Washington, DC, March 20, 2007.
Hon. Hillary Rodham Clinton,
U.S. Senate,
Washington, DC.
Dear Senator Clinton: The Disability Policy Collaboration
(DPC), a partnership of The Arc of the United States and
United Cerebral Palsy, appreciates your leadership on behalf
of children and adults with autism spectrum disorders and
related developmental disabilities. The DPC is pleased to
support the ``Expanding the Promise for Individuals with
Autism Act of 2007'' and its emphasis on developing and
providing effective interventions, supports and services to
individuals with autism spectrum disorders and their
families.
Most individuals with autism spectrum disorder and related
developmental disabilities need major assistance in the areas
of early intervention, education, employment, transportation,
housing and health. Expanding the capacity of the service
delivery system to meet these needs and providing better
coordination of services will enable the individuals and
families to access appropriate assistance to live
independently and fully participate in their communities.
The Disability Policy Collaboration applauds your
commitment to individuals with autism spectrum disorders and
related developmental disabilities and their families and
looks forward to working with you on speedy passage of this
bill in the 110th Congress.
Sincerely,
Paul Marchand,
Staff Director.
____
Association of University Centers on Disabilities,
Silver Spring, MD, March 19, 2007.
Hon. Hillary Rodham Clinton,
U.S. Senate,
Washington, DC.
Dear Senator Clinton: On behalf of the Association of
University Centers on Disabilities (AUCD), this letter is to
thank you for your outstanding work and leadership on behalf
of children and adults with autism spectrum disorders and
related developmental disabilities. AUCD is in strong support
of your legislation to develop and provide effective
treatments, interventions, supports and services to
individuals with autism spectrum disorders and their
families.
The prevalence of autism appears to be growing. According
to a recent report by the Centers for Disease Control and
Prevention, the prevalence of autism has reached epidemic
proportions, now affecting one in every 150 children. Clearly
from the information we get from our Centers and families,
our current service system is unprepared to meet the growing
needs of individuals with autism and their families. There
are pressing needs for trained professionals and providers
[[Page S3383]]
to better serve children and adults with autism with the
latest evidence based information and effective practices.
Furthermore, while early detection and treatment are
essential, families of children with autism often face
numerous obstacles for obtaining high quality services for
their children. Similarly, adults with autism face long
waiting lists and many barriers in obtaining appropriate
community-based supports and services to enable them to
participate fully in society. The Expanding the Promise to
Individuals with Autism Act that you have developed greatly
helps to address these issues by providing demonstration
grants to states to provide immediate assistance to
individuals and their families.
The membership of AUCD includes a network of 67 University
Centers for Excellence in Developmental Disabilities located
in every U.S. state and territory. These University Centers
provide research, education, and service to further
independence, productivity, and quality of life for
individuals with developmental disabilities, including
autism. University Centers collaborate with stakeholders in
states to identify and address training needs in creative and
effective ways. As the prevalence of autism has risen,
University Centers have initiated many activities to help
meet the growing need for children, adults, and families.
This bill builds upon these efforts by expanding the capacity
of University Centers to focus on interdisciplinary training
of professionals and providers in the area of autism, provide
technical assistance, and disseminate information on
effective community-based treatment, interventions and
services.
AUCD applauds your commitment to individuals with autism
and their families and looks forward to working with you on
speedy passage of this bill in the 110th Congress.
Sincerely,
Royal Walker,
Board President & Associate Director, Institute for
Disability Studies, University of Southern Mississippi.
George Jesien,
Executive Director, AUCD.
____
Easter Seals,
Washington, DC, March 20, 2007.
Hon. Hillary Rodham Clinton,
U.S. Senate,
Washington, DC.
Dear Senator Clinton: Easter Seals is pleased to support
the Expanding the Promise for Individuals with Autism Act of
2007. This legislation will go a long way to help children
and adults with autism spectrum disorders and other
developmental disabilities live, learn, work and play in
their communities.
The Expanding the Promise for Individuals with Autism Act
of 2007 (EPIAA) is necessary legislation that must become
law. Research has demonstrated that children who are
diagnosed by age 2 and who receive appropriate services can
live with greater independence. Yet, too many children are
not diagnosed until age 5. The EPIAA will allow us to do
better for these children. Parents and young adults with
autism across the country report that too many youth exit the
school system, needing housing and job training opportunities
that are in short supply. The EPIAA will allow us to do
better. Finally, parents, schools, and communities are
struggling to find the answers of how to provide appropriate
services and supports to individuals with autism. The EPIAA
will allow us to do better in this area as well.
Over the last 20 years, Easter Seals has seen a dramatic
increase in the number of people we serve who live with
autism. More than a generation ago, Easter Seals was front
and center during the polio epidemic, working tirelessly to
help children and adults with polio gain the skills they need
to live independently. Today, we are the country's leading
provider of services for people with autism.
Thank you for sponsoring this important legislation. We
look forward to working with you on the enactment of the
Expanding the Promise for Individuals with Autism Act of
2007.
Sincerely,
Katherine Beh Neas,
Director, Congressional Affairs.
____
National Disability
Rights Network,
Washington, DC, March 20, 2007.
Hon. Hillary Clinton,
Russell Senate Office Building,
Washington, DC.
Hon. Wayne Allard,
Dirksen Senate Office Building,
Washington, DC.
Dear Senators Clinton and Allard: The National Disability
Rights Network (NDRN) is pleased with your introduction of
the Expanding the Promise for Individuals with Autism Act of
2007. NDRN is the nonprofit membership organization for the
federally mandated Protection and Advocacy (P&A) Systems and
Client Assistance Programs (CAP). The P&A/CAP network
operates in every state and territory in the United States.
Collectively, the P&A/CAP network is the largest provider of
legally based advocacy services to people with disabilities
in the United States.
Currently, the P&A network is on the front-line of work
with individuals with autism and their families. Early
statistics from FY 2006 indicate that 25 percent of the
people served by the Protection and Advocacy for
Developmental Disabilities program (PADD) were individuals
with autism. This is an increase of 6 percent from the
previous year. Unfortunately, due to the high demand for P&A
services from children and adults with all types of
disabilities and their families--and the concomitant
inadequate funding for the P&A programs--thousands of
individuals with autism were unable to access critical P&A
services.
Key components of the P&A network's legally based advocacy
include investigating abuse and neglect; seeking systemic
change to prevent harm to children and adults with
disabilities; advocating for basic human and civil rights;
and ensuring accountability in education, employment,
housing, public services, transportation, and health care.
Each of these components is critical to ensuring that
individuals with autism--no matter their age--get access to
the supports and services they need to live as successfully
and as safely as possible in the community.
Parents of children with autism--both young children and
adult children--know the important role that P&A services can
play in their lives. They have advocated for the inclusion of
a P&A component in this legislation in order to increase the
ability to serve this vulnerable population. These families
know that once this program is authorized and funded, the P&A
in their state will be mandated to make autism a priority for
services, providing individuals and their families with the
help needed to live full and successful lives.
NDRN is pleased to work with you on the passage of this
legislation, and to ensure that critical services and
supports are available to both children and adults with
autism. For more information, please contact Kathy McGinley,
Deputy Executive Director for Public Policy.
Sincerely,
Curt Decker,
Executive Director.
______
By Mr. REED (for himself, Ms. Collins, Mr. Kennedy, Mrs. Murray,
Mr. Dodd, and Mr. Sanders):
S. 938. A bill to amend the Higher Education Act of 1965 to expand
college access and increase college persistence, and for other
purposes; to the Committee on Health, Education, Labor, and Pensions.
______
By Mr. REED (for himself, Ms. Collins, Mr. Kennedy, Mrs. Murray,
and Mr. Sanders):
S. 939. A bill to amend the Higher Education Act of 1965 to simplify
and improve the process of applying for student assistance, and for
other purposes; to the Committee on Health, Education, Labor, and
Pensions.
Mr. REED. Mr. President, today I introduce two bipartisan bills to
expand access to college for students and their families.
We are slated to reauthorize the Higher Education Act this Congress
for the first time since 1998. The key to this reauthorization will be
ensuring that we make a substantial Federal investment in need-based
grant aid. I am pleased we took a significant first step down this path
last month by increasing the maximum Pell Grant, the Federal
Government's primary source of need-based financial aid, for the first
time in four years. However, we are still far from the robust lift
Congress provided students and their families in the mid-1970s, when
the maximum Pell Grant covered 84 percent of costs at a public 4-year
institution. Today, it covers only 32 percent.
There has also been a concurrent increase in college costs. According
to a recent report by the College Board, for the 2006-07 school year,
tuition rose 6.3 percent at 4-year public colleges and 5.9 percent for
4-year private institutions. The combination of declining Federal
investments in need-based aid and sharp increases in college costs has
priced more and more qualified individuals out of college.
This is particularly troubling, given the strong correlation between
educational attainment, employment, and wages. A college education has
now increasingly become a necessary requirement for upward income
mobility. College graduates, on average, earn 62 percent more than high
school graduates. Over a lifetime, the gap in earnings between those
with a high school diploma and a bachelor's or higher degree exceeds $1
million.
To help increase the amount of need-based grant aid to low-income
students and fulfill their unmet financial aid need, today I introduce
the ACCESS, Accessing College through Comprehensive Early Outreach and
State Partnerships, Act, cosponsored by Senators Collins, Kennedy,
Murray, Dodd, and
[[Page S3384]]
Sanders. This legislation improves the Leveraging Educational
Assistance Partnership or LEAP program by forging a new Federal
incentive for States to form partnerships with businesses, colleges,
and private or philanthropic organizations to provide low-income
students with increased need-based grant aid, early information and
assurance of aid eligibility (beginning in middle school), and early
intervention, mentoring, and outreach services. Research has shown that
college access programs that combine these elements are successful in
making the dream of higher education a reality. Students participating
in such programs are more financially and academically prepared, and
thus, more likely to enroll in college and persist to degree
completion.
Since 1972, the Federal-State partnership embodied by LEAP, with
modest Federal support, has helped leverage State grant aid to low-and
moderate-income students. Without this important Federal incentive,
many States would never have established need-based financial aid
programs, and many States would not continue to maintain such programs.
Last year, States matched approximately $65 million in Federal LEAP
funds with over $840 million in supplemental need-based aid. By way of
example, in my home State of Rhode Island, the Federal investment of
approximately $350,000 in LEAP funds spurred the State to expend over
$13 million in need-based aid.
The second bill I introduce today, the FAFSA Financial Aid Form
Simplification and Access Act, cosponsored by Senators Collins,
Kennedy, Murray, and Sanders, has several key components to make the
college financial aid application process both simple and certain.
First, our legislation would allow more students to qualify for an
automatic-zero expected family contribution, or auto-zero, and align
the auto-zero eligibility levels, income of $30,000 or less, with the
standards of other Federal means-tested programs like school lunch,
SSI, and food stamps. Second, the FAFSA Act would establish a short
paper FAFSA or EZ-FAFSA for students who qualify for the auto-zero.
Third, the bill phases out the long form, using the savings to utilize
``smart'' technology to create a tailored web-based application form
and ensure that students answer only the questions needed to determine
financial aid eligibility in the state in which they reside. For those
students who do not have access to the Internet, we propose creating a
free telefile system for filing by phone.
The FAFSA Act would also emphasize providing students with the
opportunity to complete financial applications earlier in order to
receive early estimates of aid eligibility. This legislation would
create a pilot program to test an early application system under which
dependent students would apply for an aid estimate in their junior
year, using the student's prior/prior year income (PPY). The pilot
program also includes a requirement that the Secretary study the
feasibility, benefits, and adverse effects of utilizing information
from the IRS in order to simplify the financial aid process.
I was pleased to work with the Advisory Committee on Student
Financial Assistance and a host of other higher education organizations
and charitable foundations on these bills. I am also pleased that both
bills are supported by a range of higher education and student groups,
including the American Association of Community Colleges, the American
Council on Education, the Association of American Universities, the
Association of Jesuit Colleges and Universities, the Center for Law and
Social Policy, the National Association of College Admission
Counseling, the National Association of Independent Colleges and
Universities, the National Association of State Student Grant and Aid
Programs, the National Association of Student Financial Aid
Administrators, the United States Student Association, and the College
Parents of America. The FAFSA Act is supported by the Council of
Graduate Schools as well.
We must act on these bills and continue to push for increased Federal
investment in need-based aid to middle- and low-income students and
their families. All too often successful students give up on a college
education because they think there is no way they can ever afford it.
We must ensure that every student who works hard and plays by the rules
gets the opportunity to live the American Dream.
I urge my colleagues to cosponsor these bills and work for their
inclusion in the upcoming reauthorization of the Higher Education Act.
I ask unanimous consent that the text of these bills be printed in
the Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:
S. 938
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 ``Accessing College through
Comprehensive Early Outreach and State Partnerships Act''.
SEC. 2. GRANTS FOR ACCESS AND PERSISTENCE.
(a) Authorization of Appropriations.--Section 415A(b) of
the Higher Education Act of 1965 (20 U.S.C. 1070c(b)) is
amended by striking paragraphs (1) and (2) and inserting the
following:
``(1) In general.--There are authorized to be appropriated
to carry out this subpart $500,000,000 for fiscal year 2008,
and such sums as may be necessary for each of the 5
succeeding fiscal years.
``(2) Reservation.--For any fiscal year for which the
amount appropriated under paragraph (1) exceeds $30,000,000,
the excess amount shall be available to carry out section
415E.''.
(b) Applications for Leveraging Educational Assistance
Partnership Programs.--Section 415C(b) of the Higher
Education Act of 1965 (20 U.S.C. 1070c-2(b)) is amended--
(1) in paragraph (2), by striking ``$5,000'' and inserting
``$12,500'';
(2) in paragraph (9), by striking ``and'' after the
semicolon;
(3) in paragraph (10), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(11) provides notification to eligible students that such
grants are--
``(A) Leveraging Educational Assistance Partnership Grants;
and
``(B) funded by the Federal Government and the State.''.
(c) Grants for Access and Persistence.--Section 415E of the
Higher Education Act of 1965 (20 U.S.C. 1070c-3a) is amended
to read as follows:
``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.
``(a) Purpose.--It is the purpose of this section to expand
college access and increase college persistence by making
allotments to States to enable the States to--
``(1) expand and enhance partnerships with institutions of
higher education, early information and intervention,
mentoring, or outreach programs, private corporations,
philanthropic organizations, and other interested parties to
carry out activities under this section and to provide
coordination and cohesion among Federal, State, and local
governmental and private efforts that provide financial
assistance to help low-income students attend college;
``(2) provide need-based access and persistence grants to
eligible low-income students;
``(3) provide early notification to low-income students of
their eligibility for financial aid; and
``(4) encourage increased participation in early
information and intervention, mentoring, or outreach
programs.
``(b) Allotments to States.--
``(1) In general.--
``(A) Authorization.--From sums reserved under section
415A(b)(2) for each fiscal year, the Secretary shall make an
allotment to each State that submits an application for an
allotment in accordance with subsection (c) to enable the
State to pay the Federal share of the cost of carrying out
the activities under subsection (d).
``(B) Determination of allotment.--In making allotments
under subparagraph (A), the Secretary shall consider the
following:
``(i) Continuation of award.--If a State continues to meet
the specifications established in its application under
subsection (c), the Secretary shall make an allotment to such
State that is not less than the allotment made to such State
for the previous fiscal year.
``(ii) Priority.--The Secretary shall give priority in
making allotments to States that meet the requirements under
paragraph (2)(B)(ii).
``(2) Federal share.--
``(A) In general.--The Federal share of the cost of
carrying out the activities under subsection (d) for any
fiscal year shall not exceed 66.66 percent.
``(B) Different percentages.--The Federal share under this
section shall be determined in accordance with the following:
``(i) If a State applies for an allotment under this
section in partnership with any number of degree granting
institutions of higher education in the State whose combined
full-time enrollment represents less than a majority of all
students attending institutions of higher education in the
State, and philanthropic organizations that are located in,
or that provide funding in, the State or private corporations
that are located in, or that do business in, the State,
[[Page S3385]]
then the Federal share of the cost of carrying out the
activities under subsection (d) shall be equal to 57 percent.
``(ii) If a State applies for an allotment under this
section in partnership with any number of degree granting
institutions of higher education in the State whose combined
full-time enrollment represents a majority of all students
attending institutions of higher education in the State,
philanthropic organizations that are located in, or that
provide funding in, the State, and private corporations that
are located in, or that do business in, the State, then the
Federal share of the cost of carrying out the activities
under subsection (d) shall be equal to 66.66 percent.
``(C) Non-federal share.--
``(i) In general.--The non-Federal share under this section
may be provided in cash or in kind, fairly evaluated.
``(ii) In kind contribution.--For the purpose of
calculating the non-Federal share under this subparagraph, an
in kind contribution is a non-cash contribution that--
``(I) has monetary value, such as the provision of--
``(aa) room and board; or
``(bb) transportation passes; and
``(II) helps a student meet the cost of attendance at an
institution of higher education.
``(iii) Effect on needs analysis.--For the purpose of
calculating a student's need in accordance with part F, an in
kind contribution described in clause (ii) shall not be
considered an asset or income of the student or the student's
parent.
``(c) Application for Allotment.--
``(1) In general.--
``(A) Submission.--A State that desires to receive an
allotment under this section shall submit an application to
the Secretary at such time, in such manner, and containing
such information as the Secretary may require.
``(B) Content.--An application submitted under subparagraph
(A) shall include the following:
``(i) A description of the State's plan for using the
allotted funds.
``(ii) Assurances that the State will provide matching
funds, from State, institutional, philanthropic, or private
funds, of not less than 33.33 percent of the cost of carrying
out the activities under subsection (d). Matching funds from
philanthropic organizations used to provide early information
and intervention, mentoring, or outreach programs may be in
cash or in kind. The State shall specify the methods by which
matching funds will be paid and include provisions designed
to ensure that funds provided under this section will be used
to supplement, and not supplant, Federal and non-Federal
funds available for carrying out the activities under this
title. A State that uses non-Federal funds to create or
expand existing partnerships with nonprofit organizations or
community-based organizations in which such organizations
match State funds for student scholarships, may apply such
matching funds from such organizations toward fulfilling the
State's matching obligation under this clause.
``(iii) Assurances that early information and intervention,
mentoring, or outreach programs exist within the State or
that there is a plan to make such programs widely available.
``(iv) A description of the organizational structure that
the State has in place to administer the activities under
subsection (d).
``(v) A description of the steps the State will take to
ensure students who receive grants under this section persist
to degree completion.
``(vi) Assurances that the State has a method in place,
such as acceptance of the automatic zero expected family
contribution determination described in section 479(c), to
identify eligible low-income students and award State grant
aid to such students.
``(vii) Assurances that the State will provide notification
to eligible low-income students that grants under this
section are--
``(I) Leveraging Educational Assistance Partnership Grants;
and
``(II) funded by the Federal Government and the State.
``(2) State agency.--The State agency that submits an
application for a State under section 415C(a) shall be the
same State agency that submits an application under paragraph
(1) for such State.
``(3) Partnership.--In applying for an allotment under this
section, the State agency shall apply for the allotment in
partnership with--
``(A) not less than 1 public and 1 private degree granting
institution of higher education that are located in the
State;
``(B) new or existing early information and intervention,
mentoring, or outreach programs located in the State; and
``(C) not less than 1--
``(i) philanthropic organization located in, or that
provides funding in, the State; or
``(ii) private corporation located in, or that does
business in, the State.
``(4) Roles of partners.--
``(A) State agency.--A State agency that is in a
partnership receiving an allotment under this section--
``(i) shall--
``(I) serve as the primary administrative unit for the
partnership;
``(II) provide or coordinate matching funds, and coordinate
activities among partners;
``(III) encourage each institution of higher education in
the State to participate in the partnership;
``(IV) make determinations and early notifications of
assistance as described under subsection (d)(2); and
``(V) annually report to the Secretary on the partnership's
progress in meeting the purpose of this section; and
``(ii) may provide early information and intervention,
mentoring, or outreach programs.
``(B) Degree granting institutions of higher education.--A
degree granting institution of higher education that is in a
partnership receiving an allotment under this section--
``(i) shall--
``(I) recruit and admit participating qualified students
and provide such additional institutional grant aid to
participating students as agreed to with the State agency;
``(II) provide support services to students who receive an
access and persistence grant under this section and are
enrolled at such institution; and
``(III) assist the State in the identification of eligible
students and the dissemination of early notifications of
assistance as agreed to with the State agency; and
``(ii) may provide funding for early information and
intervention, mentoring, or outreach programs or provide such
services directly.
``(C) Programs.--An early information and intervention,
mentoring, or outreach program that is in a partnership
receiving an allotment under this section shall provide
direct services, support, and information to participating
students.
``(D) Philanthropic organization or private corporation.--A
philanthropic organization or private corporation that is in
a partnership receiving an allotment under this section shall
provide funds for access and persistence grants for
participating students, or provide funds or support for early
information and intervention, mentoring, or outreach
programs.
``(d) Authorized Activities.--
``(1) In general.--
``(A) Establishment of partnership.--Each State receiving
an allotment under this section shall use the funds to
establish a partnership to award access and persistence
grants to eligible low-income students in order to increase
the amount of financial assistance such students receive
under this subpart for undergraduate education expenses.
``(B) Amount.--
``(i) Partnerships with institutions serving less than a
majority of students in the state.--
``(I) In general.--In the case where a State receiving an
allotment under this section is in a partnership described in
subsection (b)(2)(B)(i), the amount of an access and
persistence grant awarded by such State shall be not less
than the amount that is equal to the average undergraduate
tuition and mandatory fees at 4-year public institutions of
higher education in the State where the student resides (less
any other Federal or State sponsored grant amount, college
work study amount, and scholarship amount received by the
student) and such amount shall be used toward the cost of
attendance at an institution of higher education, located in
the State, that is a partner in the partnership.
``(II) Cost of attendance.--A State that has a program,
apart from the partnership under this section, of providing
eligible low-income students with grants that are equal to
the average undergraduate tuition and mandatory fees at 4-
year public institutions of higher education in the State,
may increase the amount of access and persistence grants
awarded by such State up to an amount that is equal to the
average cost of attendance at 4-year public institutions of
higher education in the State (less any other Federal or
State sponsored grant amount, college work study amount, and
scholarship amount received by the student).
``(ii) Partnership with institutions serving the majority
of students in the state.--In the case where a State
receiving an allotment under this section is in a partnership
described in subsection (b)(2)(B)(ii), the amount of an
access and persistence grant awarded by such State shall be
not less than the average cost of attendance at 4-year public
institutions of higher education in the State where the
student resides (less any other Federal or State sponsored
grant amount, college work study amount, and scholarship
amount received by the student) and such amount shall be used
by the student to attend an institution of higher education,
located in the State, that is a partner in the partnership.
``(2) Early notification.--
``(A) In general.--Each State receiving an allotment under
this section shall annually notify low-income students, such
as students who are eligible to receive a free lunch under
the school lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.),
in grade 7 through grade 12 in the State of their potential
eligibility for student financial assistance, including an
access and persistence grant, to attend an institution of
higher education.
``(B) Content of notice.--The notification under
subparagraph (A)--
``(i) shall include--
``(I) information about early information and intervention,
mentoring, or outreach programs available to the student;
``(II) information that a student's candidacy for an access
and persistence grant is enhanced through participation in an
early
[[Page S3386]]
information and intervention, mentoring, or outreach program;
``(III) an explanation that student and family eligibility
and participation in other Federal means-tested programs may
indicate eligibility for an access and persistence grant and
other student aid programs;
``(IV) a nonbinding estimation of the total amount of
financial aid a low-income student with a similar income
level may expect to receive, including an estimation of the
amount of an access and persistence grant and an estimation
of the amount of grants, loans, and all other available types
of aid from the major Federal and State financial aid
programs;
``(V) an explanation that in order to be eligible for an
access and persistence grant, at a minimum, a student shall
meet the requirement under paragraph (3), graduate from
secondary school, and enroll at an institution of higher
education that is a partner in the partnership;
``(VI) information on any additional requirements (such as
a student pledge detailing student responsibilities) that the
State may impose for receipt of an access and persistence
grant under this section; and
``(VII) instructions on how to apply for an access and
persistence grant and an explanation that a student is
required to file a Free Application for Federal Student Aid
authorized under section 483(a) to be eligible for such grant
and assistance from other Federal and State financial aid
programs; and
``(ii) may include a disclaimer that access and persistence
grant awards are contingent upon--
``(I) a determination of the student's financial
eligibility at the time of the student's enrollment at an
institution of higher education that is a partner in the
partnership;
``(II) annual Federal and State appropriations; and
``(III) other aid received by the student at the time of
the student's enrollment at an institution of higher
education that is a partner in the partnership.
``(3) Eligibility.--In determining which students are
eligible to receive access and persistence grants, the State
shall ensure that each such student meets not less than 1 of
the following:
``(A) Meets not less than 2 of the following criteria, with
priority given to students meeting all of the following
criteria:
``(i) Has an expected family contribution equal to zero (as
described in section 479) or a comparable alternative based
upon the State's approved criteria in section 415C(b)(4).
``(ii) Has qualified for a free lunch, or at the State's
discretion a reduced price lunch, under the school lunch
program established under the Richard B. Russell National
School Lunch Act.
``(iii) Qualifies for the State's maximum undergraduate
award, as authorized under section 415C(b).
``(iv) Is participating in, or has participated in, a
Federal, State, institutional, or community early information
and intervention, mentoring, or outreach program, as
recognized by the State agency administering activities under
this section.
``(B) Is receiving, or has received, an access and
persistence grant under this section, in accordance with
paragraph (5).
``(4) Grant award.--Once a student, including those
students who have received early notification under paragraph
(2) from the State, applies for admission to an institution
that is a partner in the partnership, files a Free
Application for Federal Student Aid and any related existing
State form, and is determined eligible by the State under
paragraph (3), the State shall--
``(A) issue the student a preliminary access and
persistence grant award certificate with tentative award
amounts; and
``(B) inform the student that payment of the access and
persistence grant award amounts is subject to certification
of enrollment and award eligibility by the institution of
higher education.
``(5) Duration of award.--An eligible student that receives
an access and persistence grant under this section shall
receive such grant award for each year of such student's
undergraduate education in which the student remains eligible
for assistance under this title, including pursuant to
section 484(c), and remains financially eligible as
determined by the State, except that the State may impose
reasonable time limits to baccalaureate degree completion.
``(e) Administrative Cost Allowance.--A State that receives
an allotment under this section may reserve not more than 3.5
percent of the funds made available annually through the
allotment for State administrative functions required to
carry out this section.
``(f) Statutory and Regulatory Relief for Institutions of
Higher Education.--The Secretary may grant, upon the request
of an institution of higher education that is in a
partnership described in subsection (b)(2)(B)(ii) and that
receives an allotment under this section, a waiver for such
institution from statutory or regulatory requirements that
inhibit the ability of the institution to successfully and
efficiently participate in the activities of the partnership.
``(g) Applicability Rule.--The provisions of this subpart
which are not inconsistent with this section shall apply to
the program authorized by this section.
``(h) Maintenance of Effort Requirement.--Each State
receiving an allotment under this section for a fiscal year
shall provide the Secretary an assurance that the aggregate
amount expended per student or the aggregate expenditures by
the State, from funds derived from non-Federal sources, for
the authorized activities described in subsection (d) for the
preceding fiscal year were not less than the amount expended
per student or the aggregate expenditure by the State for the
activities for the second preceding fiscal year.
``(i) Special Rule.--Notwithstanding subsection (h), for
purposes of determining a State's share of the cost of the
authorized activities described in subsection (d), the State
shall consider only those expenditures from non-Federal
sources that exceed its total expenditures for need-based
grants, scholarships, and work-study assistance for fiscal
year 1999 (including any such assistance provided under this
subpart).
``(j) Reports.--Not later than 3 years after the date of
enactment of the Accessing College through Comprehensive
Early Outreach and State Partnerships Act, and annually
thereafter, the Secretary shall submit a report describing
the activities and the impact of the partnerships under this
section to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and
Labor of the House of Representatives.''.
(d) Continuation and Transition.--During the 2-year period
commencing on the date of enactment of this Act, the
Secretary shall continue to award grants under section 415E
of the Higher Education Act of 1965 (20 U.S.C. 1070c-3a), as
such section existed on the day before the date of enactment
of this Act, to States that choose to apply for grants under
such predecessor section.
(e) Implementation and Evaluation.--Section 491(j) of the
Higher Education Act of 1965 (20 U.S.C. 1098(j)) is amended--
(1) in paragraph (4), by striking ``and'' after the
semicolon;
(2) by redesignating paragraph (5) as paragraph (6); and
(3) by inserting after paragraph (4) (as amended by
paragraph (1)) the following:
``(5) not later than 6 months after the date of enactment
of the Accessing College through Comprehensive Early Outreach
and State Partnerships Act, advise the Secretary on means to
implement the activities under section 415E, and the Advisory
Committee shall continue to monitor, evaluate, and make
recommendations on the progress of partnerships that receive
allotments under such section; and''.
____
S. 939
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 ``Financial
Aid Form Simplification and Access Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Simplified needs test and automatic zero improvements.
Sec. 3. Improving paper and electronic forms.
Sec. 4. Support for working students.
Sec. 5. Simplification for students with special circumstances.
Sec. 6. Definitions.
Sec. 7. Advisory Committee on Student Financial Assistance.
SEC. 2. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO
IMPROVEMENTS.
(a) Simplified Needs Test.--Section 479 of the Higher
Education Act of 1965 (20 U.S.C. 1087ss) is amended--
(1) in subsection (b)--
(A) in paragraph (1)(A)(i)--
(i) in subclause (II), by striking ``or'' after the
semicolon;
(ii) by redesignating subclause (III) as subclause (IV);
(iii) by inserting after subclause (II) the following:
``(III) 1 of whom is a dislocated worker; or''; and
(iv) in subclause (IV) (as redesignated by clause (ii), by
striking ``12-month'' and inserting ``24-month''; and
(B) in subparagraph (B)(i)--
(i) in subclause (II), by striking ``or'' after the
semicolon;
(ii) by redesignating subclause (III) as subclause (IV);
(iii) by inserting after subclause (II) the following:
``(III) 1 of whom is a dislocated worker; or''; and
(iv) in subclause (IV) (as redesignated by clause (ii), by
striking ``12-month'' and inserting ``24-month'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) in clause (ii), by striking ``or'' after the semicolon;
(II) by redesignating clause (iii) as clause (iv);
(III) by inserting after clause (ii) the following:
``(iii) 1 of whom is a dislocated worker; or''; and
(IV) in clause (iv) (as redesignated by subclause (II), by
striking ``12-month'' and inserting ``24-month''; and
(ii) in subparagraph (B), by striking ``20,000'' and
inserting ``$30,000''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (ii), by striking ``or'' after the semicolon;
(II) by redesignating clause (iii) as clause (iv);
[[Page S3387]]
(III) by inserting after clause (ii) the following:
``(iii) is a dislocated worker; or''; and
(IV) in clause (iv) (as redesignated by subclause (II), by
striking ``12-month'' and inserting ``24-month''; and
(ii) in subparagraph (B), by striking ``$20,000'' and
inserting ``$30,000''; and
(C) in the flush matter following paragraph (2)(B), by
adding at the end the following: ``The Secretary shall
annually adjust the income level necessary to qualify an
applicant for the zero expected family contribution. The
income level shall be adjusted according to increases in the
Consumer Price Index, as defined in section 478(f).''; and
(3) in subsection (d)--
(A) by redesignating paragraphs (1) through (6) as
subparagraphs (A) through (F), respectively;
(B) by striking ``(d) Definition'' and all that follows
through ``the term'' and inserting the following:
``(d) Definitions.--In this section:
``(1) Dislocated worker.--The term `dislocated worker' has
the meaning given the term in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801).
``(2) Means-tested federal benefit program.--The term''.
(b) Discretion of Student Financial Aid Administrators.--
Section 479A(a) of the Higher Education Act of 1965 (20
U.S.C. 1087tt(a)) is amended in the third sentence by
inserting ``a family member who is a dislocated worker (as
defined in section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801)),'' after ``recent unemployment of a
family member,''.
(c) Reporting Requirements.--
(1) Eligibility guidelines.--The Secretary of Education
shall regularly evaluate the impact of the eligibility
guidelines in subsections (b)(1)(A)(i), (b)(1)(B)(i),
(c)(1)(A), and (c)(2)(A) of section 479 of the Higher
Education Act of 1965 (20 U.S.C. 1087ss(b)(1)(A)(i),
(b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).
(2) Means-tested federal benefit program.--The Secretary
shall evaluate every 3 years the impact of including whether
a student or parent received benefits under a means-tested
Federal benefit program (as defined in section 479(d) of the
Higher Education Act of 1965 (20 U.S.C. 1087ss(d)) as a
factor in determining eligibility under subsections (b) and
(c) of section 479 of the Higher Education Act of 1965 (20
U.S.C. 1087ss(b) and (c)).
SEC. 3. IMPROVING PAPER AND ELECTRONIC FORMS.
(a) Simplified Needs Test.--Section 479(a) of the Higher
Education Act of 1965 (20 U.S.C. 1087ss(a)) is amended by
adding at the end the following:
``(3) Simplified forms.--The Secretary shall make special
efforts to notify families meeting the requirements of
subsection (c) that such families may use the EZ FAFSA
described in section 483(a)(2)(B) and notify families meeting
the requirements of subsection (b) that such families may use
the simplified electronic application form described in
section 483(a)(3)(B).''.
(b) Common Financial Aid Form Development and Processing.--
Section 483 of the Higher Education Act of 1965 (20 U.S.C.
1090) is amended--
(1) in subsection (a)--
(A) by striking paragraphs (1), (2), and (5);
(B) by redesignating paragraphs (3), (4), (6), and (7), as
paragraphs (8), (9), (10), and (11), respectively;
(C) by inserting before paragraph (8), as redesignated by
subparagraph (B), the following:
``(1) In general.--
``(A) Common financial reporting forms.--The Secretary, in
cooperation with representatives of agencies and
organizations involved in student financial assistance, shall
produce, distribute, and process free of charge common
financial reporting forms as described in this subsection to
be used for application and reapplication to determine the
need and eligibility of a student for financial assistance
under parts A through E (other than subpart 4 of part A).
These forms shall be made available to applicants in both
paper and electronic formats and shall be referred to (except
as otherwise provided in this subsection) as the `Free
Application for Federal Student Aid' or `FAFSA'.
``(B) Early analysis.--The Secretary shall permit an
applicant to complete a form described in this subsection
prior to enrollment in order to obtain an estimate from the
Secretary of the applicant's expected family contribution.
Such applicant shall be permitted to update the information
contained on a form submitted pursuant to the preceding
sentence, using the process described in paragraph (4), for
purposes of applying for assistance under this title for the
first academic year for which the applicant applies for
financial assistance under this title.
``(2) Paper format.--
``(A) In general.--Subject to subparagraph (C), the
Secretary shall produce, distribute, and process common forms
in paper format to meet the requirements of paragraph (1).
The Secretary shall develop a common paper form for
applicants who do not meet the requirements of section
479(c).
``(B) EZ fafsa.--
``(i) In general.--The Secretary shall develop and use a
simplified paper application form, to be known as the `EZ
FAFSA', to be used for applicants meeting the requirements of
section 479(c).
``(ii) Reduced data requirements.--The EZ FAFSA shall
permit an applicant to submit for financial assistance
purposes, only the data elements required to make a
determination of whether the applicant meets the requirements
under section 479(c).
``(iii) State data.--The Secretary shall include on the EZ
FAFSA space for information that is required of an applicant
to be eligible for State financial assistance, as provided
under paragraph (5), except the Secretary shall not include a
State's data if that State does not permit its applicants for
State assistance to use the EZ FAFSA.
``(iv) Free availability and processing.--The provisions of
paragraph (6) shall apply to the EZ FAFSA, and the data
collected by means of the EZ FAFSA shall be available to
institutions of higher education, guaranty agencies, and
States in accordance with paragraph (8).
``(v) Testing.--The Secretary shall conduct appropriate
field testing on the EZ FAFSA.
``(C) Phasing out the paper form for students who do not
meet the requirements of the automatic zero expected family
contribution.--
``(i) In general.--The Secretary shall make all efforts to
encourage all applicants to utilize the electronic forms
described in paragraph (3).
``(ii) Phaseout of full paper fafsa.--Not later than 5
years after the date of enactment of the Financial Aid Form
Simplification and Access Act, to the extent practicable, the
Secretary shall phaseout the printing of the full paper Free
Application for Federal Student Aid described in subparagraph
(A) and used by applicants who do not meet the requirements
of the EZ FAFSA described in subparagraph (B).
``(iii) Availability of full paper fafsa.--
``(I) In general.--Prior to and after the phaseout
described in clause (ii), the Secretary shall maintain an
online printable version of the paper forms described in
subparagraphs (A) and (B).
``(II) Accessibility.--The online printable version
described in subclause (I) shall be made easily accessible
and downloadable to students on the same website used to
provide students with the electronic application forms
described in paragraph (3).
``(III) Submission of forms.--The Secretary shall enable,
to the extent practicable, students to submit a form
described in this clause that is downloaded and printed in
order to meet the filing requirements of this section and to
receive aid from programs established under this title.
``(iv) Use of savings to address the digital divide.--
``(I) In general.--The Secretary shall utilize savings
accrued by phasing out the full paper Free Application for
Federal Student Aid and moving more applicants to the
electronic forms, to improve access to the electronic forms
for applicants meeting the requirements of section 479(c).
``(II) Report.--The Secretary shall report annually to the
Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and Labor of the House
of Representatives on steps taken to eliminate the digital
divide and on the phaseout of the full paper Free Application
for Federal Student Aid described in subparagraph (A). The
report shall specifically address the impact of the digital
divide on independent students, adults, and dependent
students, including students completing applications
described in this paragraph and paragraphs (3) and (4).
``(3) Electronic format.--
``(A) In general.--
``(i) Establishment.--The Secretary shall produce,
distribute, and process common financial reporting forms in
electronic format (such as through a website called `FAFSA on
the Web') to meet the requirements of paragraph (1). The
Secretary shall include an electronic version of the EZ FAFSA
form for applicants who meet the requirements of section
479(c) and develop common electronic forms for applicants who
meet the requirements of section 479(b) and common electronic
forms for applicants who do not meet the requirements of
section 479(b).
``(ii) State data.--The Secretary shall include on the
common electronic forms described in clause (i) space for
information that is required of an applicant to be eligible
for State financial assistance, as provided under paragraph
(5). The Secretary may not require an applicant to complete
data required by any State other than the applicant's State
of residence.
``(iii) Streamlined format.--The Secretary shall use, to
the fullest extent practicable, all available technology to
ensure that a student answers only the minimum number of
questions necessary.
``(B) Simplified application.--
``(i) In general.--The Secretary shall develop and use a
simplified electronic application form to be used by
applicants meeting the requirements under section 479(b).
``(ii) Reduced data requirements.--The simplified
electronic application form shall permit an applicant to
submit for financial assistance purposes, only the data
elements required to make a determination of whether the
applicant meets the requirements under section 479(b).
``(iii) State data.--The Secretary shall include on the
simplified electronic application form space for information
that is required of an applicant to be eligible for State
financial assistance, as provided under paragraph (5), except
the Secretary shall not include a State's data if that State
does not permit its applicants for State assistance to
[[Page S3388]]
use the simplified electronic application form.
``(iv) Free availability and processing.--The provisions of
paragraph (6) shall apply to the simplified electronic
application form, and the data collected by means of the
simplified electronic application form shall be available to
institutions of higher education, guaranty agencies, and
States in accordance with paragraph (8).
``(v) Testing.--The Secretary shall conduct appropriate
field testing on the form developed under this subparagraph.
``(C) Rule of construction.--Nothing in this subsection
shall be construed to prohibit the use of the form developed
by the Secretary pursuant to this paragraph by an eligible
institution, eligible lender, guaranty agency, State grant
agency, private computer software provider, a consortium of
such entities, or such other entities as the Secretary may
designate.
``(D) Privacy.--The Secretary shall ensure that data
collection under this paragraph complies with section 552a of
title 5, United States Code, and that any entity using the
electronic version of the forms developed by the Secretary
pursuant to this paragraph shall maintain reasonable and
appropriate administrative, technical, and physical
safeguards to ensure the integrity and confidentiality of the
information, and to protect against security threats, or
unauthorized uses or disclosures of the information provided
on the electronic version of the form. Data collected by such
electronic version of the form shall be used only for the
application, award, and administration of aid awarded under
this title, State aid, or aid awarded by eligible
institutions or such entities as the Secretary may designate.
No data collected by such electronic version of the form
shall be used for making final aid awards under this title
until such data have been processed by the Secretary or a
contractor or designee of the Secretary, except as may be
permitted under this title.
``(E) Signature.--Notwithstanding any other provision of
this Act, the Secretary may permit an electronic form to be
submitted without a signature, if a signature is subsequently
submitted by the applicant.
``(F) Personal identification numbers authorized.--The
Secretary is authorized to assign to applicants personal
identification numbers--
``(i) to enable the applicants to use such numbers in lieu
of a signature for purposes of completing a form under this
paragraph; and
``(ii) for any purpose determined by the Secretary to
enable the Secretary to carry out this title.
``(G) Personal identification number improvement assessment
and report.--
``(i) Assessment.--The Secretary shall conduct an
assessment of the feasibility of minimizing, and of
eliminating, the time required for applicants to obtain a
Personal Identification Number when applying for aid under
this title through an electronic format (such as through a
website called `FAFSA on the Web') including an examination
of the feasibility of implementing a real-time data match
between the Social Security Administration and the
Department.
``(ii) Report.--The Secretary shall report the findings of
the assessment described in clause (i) to Congress not later
than 6 months after the date of enactment of the Financial
Aid Form Simplification and Access Act, including the next
steps that may be taken to minimize the time required for
applicants to obtain a Personal Identification Number when
applying for aid under this title through an electronic
format.
``(4) Reapplication.--
``(A) In general.--The Secretary shall develop streamlined
reapplication forms and processes, including both paper and
electronic reapplication processes, consistent with the
requirements of this subsection, for an applicant who applies
for financial assistance under this title in the next
succeeding academic year subsequent to the year in which such
applicant first applied for financial assistance under this
title.
``(B) Updated.--The Secretary shall determine, in
cooperation with States, institutions of higher education,
and agencies and organizations involved in student financial
assistance, the data elements that can be updated from the
previous academic year's application.
``(C) Zero family contribution.--Applicants determined to
have a zero family contribution pursuant to section 479(c)
shall not be required to provide any financial data in a
reapplication form, except that which is necessary to
determine eligibility under such section.
``(5) State requirements.--
``(A) In general.--The Secretary shall include on the forms
developed under this subsection, such State-specific data
items as the Secretary determines are necessary to meet State
requirements for need-based State aid. Such items shall be
selected in consultation with States to assist in the
awarding of State financial assistance in accordance with the
terms of this subsection. The number of such data items shall
not be less than the number included on the form on October
7, 1998, unless States notify the Secretary that they no
longer require those data items for the distribution of State
need-based aid.
``(B) Annual review.--The Secretary shall conduct an annual
review process to determine which forms and data items the
States require to award need-based State aid and other
application requirements that the States may impose.
``(C) Federal register notice.--The Secretary shall publish
on an annual basis a notice in the Federal Register requiring
each State agency to inform the Secretary--
``(i) if the agency is unable to permit applicants to
utilize the forms described in paragraphs (2)(B) and (3)(B);
and
``(ii) of the State-specific data that the agency requires
for delivery of State need-based financial aid.
``(D) State notification to the secretary.--
``(i) In general.--Each State shall notify the Secretary--
``(I) whether the State permits an applicant to file a form
described in paragraph (2)(B) or (3)(B) for purposes of
determining eligibility for State need-based grant aid; and
``(II) of the State-specific data that the State requires
for delivery of State need-based financial aid.
``(ii) No permission.--In the event that a State does not
permit an applicant to file a form described in paragraph
(2)(B) or (3)(B) for purposes of determining eligibility for
State need-based grant aid--
``(I) the State shall notify the Secretary if it is not
permitted to do so because of State law or because of agency
policy; and
``(II) the notification under subclause (I) shall include
an estimate of the program cost to permit applicants to
complete the forms described in paragraphs (2)(B) and (3)(B).
``(iii) Lack of notification by the state.--If a State does
not notify the Secretary pursuant to clause (i), the
Secretary shall--
``(I) permit residents of that State to complete the forms
described in paragraphs (2)(B) and (3)(B); and
``(II) not require any resident of that State to complete
any data previously required by that State.
``(E) Restriction.--The Secretary shall not require
applicants to complete any nonfinancial data or financial
data that are not required by the applicant's State agency,
except as may be required for applicants who use the paper
forms described in subparagraphs (A) and (B) of paragraph
(2).
``(6) Charges to students and parents for use of forms
prohibited.--The common financial reporting forms prescribed
by the Secretary under this subsection shall be produced,
distributed, and processed by the Secretary and no parent or
student shall be charged a fee by the Secretary, a
contractor, a third party servicer or private software
provider, or any other public or private entity for the
collection, processing, or delivery of financial aid through
the use of such forms. The need and eligibility of a student
for financial assistance under parts A through E (other than
under subpart 4 of part A) may only be determined by using a
form developed by the Secretary pursuant to this subsection.
No student may receive assistance under parts A through E
(other than under subpart 4 of part A), except by use of a
form developed by the Secretary pursuant to this subsection.
No data collected on a paper or electronic form or other
document, which the Secretary determines was created to
replace a form prescribed under this subsection and therefore
violates the integrity of a simplified and free financial aid
application process, for which a fee is charged shall be used
to complete the form prescribed under this subsection. No
person, commercial entity, or other entity shall request,
obtain, or utilize an applicant's Personal Identification
Number for purposes of submitting an application on an
applicant's behalf, other than a State agency, an eligible
institution, or a program under this title that the Secretary
permits to so request, obtain, or utilize an applicant's
Personal Identification Number in order to streamline the
application.
``(7) Application processing cycle.--The Secretary shall,
prior to January 1 of a student's planned year of enrollment
to the extent practicable--
``(A) enable the student to submit a form described under
this subsection in order to meet the filing requirements of
this section and receive aid from programs under this title;
and
``(B) initiate the processing of a form under this
subsection submitted by the student.''; and
(D) by adding at the end the following:
``(12) Early application and award demonstration program.--
``(A) In general.--Not later than 2 years after the date of
enactment of the Financial Aid Form Simplification and Access
Act, the Secretary shall implement an early application
demonstration program enabling dependent students to--
``(i) complete applications under this subsection in such
students' junior year of secondary school, or in the academic
year that is 2 years prior to such students' intended year of
enrollment at an institution of higher education (as early as
the Secretary determines practicable after January 1st of
such junior year or academic year, respectively);
``(ii) receive an estimate of such students' final
financial aid awards in such junior year or academic year,
respectively;
``(iii) update, in the year prior to such students' planned
year of enrollment (before January 1st of the planned year of
enrollment to the extent practicable), the information
contained in an application submitted under clause (i), using
the process described in paragraph (4) to determine such
students' final financial aid awards; and
[[Page S3389]]
``(iv) receive final financial aid awards based on updated
information described in clause (iii).
``(B) Purpose.--The purpose of the demonstration program
under this paragraph is to measure the benefits, in terms of
student aspirations and plans to attend college, and the
adverse effects, in terms of program costs, integrity,
distribution, and delivery of aid under this title, of
implementing an early application system for all dependent
students that allows dependent students to apply for
financial aid using information from the year prior to the
year prior to enrollment at an institution of higher
education. Additional objectives associated with
implementation of the demonstration program are the
following:
``(i) Measure the feasibility of enabling dependent
students to apply for Federal, State, and institutional
financial aid in such students' junior year of secondary
school, or in the academic year that is 2 years prior to such
students' intended year of enrollment at an institution of
higher education, using information from the year prior to
the year prior to enrollment, by completing any of the
application forms under this subsection.
``(ii) Determine the feasibility, benefits, and adverse
effects of utilizing information from the Internal Revenue
Service in order to simplify the Federal student aid
application process.
``(iii) Identify whether receiving estimates of final
financial aid awards not later than a student's junior year,
or the academic year that is 2 years prior to such students'
intended year of enrollment at an institution of higher
education, positively impacts the college aspirations and
plans of such student.
``(iv) Measure the impact of using income information from
the year prior to the year prior to enrollment on--
``(I) eligibility for financial aid under this title and
for other institutional aid; and
``(II) the cost of financial aid programs under this title.
``(v) Effectively evaluate the benefits and adverse effects
of the demonstration program on program costs, integrity,
distribution, and delivery of aid.
``(C) Participants.--The Secretary shall select, in
consultation with States and institutions of higher
education, States and institutions of higher education within
the States interested in participating in the demonstration
program under this paragraph. The States and institutions of
higher education shall participate in programs under this
title and be willing to make estimates of final financial aid
awards to students based on such students' application
information from the year prior to the year prior to
enrollment. The Secretary shall also select as participants
in the demonstration program secondary schools that are
located in the participating States and dependent students
who reside in the participating States.
``(D) Application process.--The Secretary shall ensure that
the following provisions are included in the demonstration
program:
``(i) Participating States and institutions of higher
education shall--
``(I) encourage participating students to apply for
estimates of final financial aid awards as provided under
this title in such students' junior year of secondary school,
or in the academic year that is 2 years prior to such
students' intended year of enrollment at an institution of
higher education, using information from the year prior to
the year prior to enrollment;
``(II) provide estimates of final financial aid awards to
participating students based on the students' application
information from the year prior to the year of enrollment;
and
``(III) make final financial aid awards to participating
students based on the updated information contained on a form
submitted using the process described in paragraph (4).
``(ii) Financial aid administrators at participating
institutions of higher education shall be allowed to use such
administrators' discretion in awarding financial aid to
participating students, as outlined under section 479A.
``(E) Feasibility study.--The Secretary shall include in
the demonstration program a study of the feasibility of
utilizing data from the Internal Revenue Service in order
to--
``(i) pre-populate electronic application forms for
financial aid under this title (such as through a website
called `FAFSA on the Web') with applicant information from
the Internal Revenue Service;
``(ii) verify data provided by students participating in
the demonstration program, including the feasibility of a
data match; and
``(iii) award and deliver financial aid under this title.
``(F) Evaluation.--The Secretary shall conduct a rigorous
evaluation of the demonstration program in order to measure
the program's benefits and adverse effects as the benefits
and affects relate to the purpose and objectives described in
subparagraph (B).
``(G) Outreach.--The Secretary shall make appropriate
efforts in order to notify States of the demonstration
program. Upon determination of which States will be
participating in the demonstration program, the Secretary
shall continue to make efforts to notify institutions of
higher education and dependent students within such
participating States of the opportunity to participate in the
demonstration program and of the participation requirements.
``(H) Consultation.--The Secretary shall consult with the
Advisory Committee on Student Financial Assistance,
established under section 491, on the design and
implementation of the demonstration program and on the
evaluation described in paragraph (F).'';
(2) by striking subsection (b) and inserting the following:
``(b) Early Awareness of Aid Eligibility.--
``(1) In general.--The Secretary shall make every effort to
provide students with early information about potential
financial aid eligibility.
``(2) Availability of means to determine eligibility.--
``(A) In general.--The Secretary shall provide, in
cooperation with States, institutions of higher education,
agencies, and organizations involved in student financial
assistance, through a widely disseminated printed form and
through the Internet or other electronic means, a system for
individuals to determine easily, by entering relevant data,
approximately the amount of grant, work-study, and loan
assistance for which an individual would be eligible under
this title upon completion and verification of a form under
subsection (a).
``(B) Determination of whether to use simplified
application.--The system established under this paragraph
shall also permit an individual to determine whether or not
the individual may apply for aid using an EZ FAFSA described
in subsection (a)(2)(B) or a simplified electronic
application form described in subsection (a)(3)(B).
``(3) Availability of means to communicate eligibility.--
``(A) Lower-income students.--The Secretary shall--
``(i) make special efforts to notify students who qualify
for a free or reduced price lunch under the school lunch
program established under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et seq.), benefits under the
food stamp program under the Food Stamp Act of 1977 (7 U.S.C.
2011 et seq.), or benefits under such programs as the
Secretary shall determine, of such students' potential
eligibility for a maximum Federal Pell Grant under subpart 1
of part A; and
``(ii) disseminate informational materials regarding the
linkage between eligibility for means-tested Federal benefit
programs and eligibility for a Federal Pell Grant, as
determined necessary by the Secretary.
``(B) Middle school students.--The Secretary shall, in
cooperation with States, middle schools, programs under this
title that serve middle school students, and other
cooperating independent outreach programs, make special
efforts to notify middle school students of the availability
of financial assistance under this title and of the
approximate amounts of grant, work-study, and loan assistance
an individual would be eligible for under this title.
``(C) Secondary school students.--The Secretary, in
cooperation with States, secondary schools, programs under
this title that serve secondary school students, and
cooperating independent outreach programs, shall make special
efforts to notify students in their junior year of secondary
school, or in the academic year that is 2 years prior to such
students' intended year of enrollment at an institution of
higher education, of the approximate amounts of grant, work-
study, and loan assistance an individual would be eligible
for under this title upon completion and verification of an
application form under subsection (a).'';
(3) in subsection (c)--
(A) by striking ``Labor and Human Resources'' and inserting
``Health, Education, Labor, and Pensions''; and
(B) by striking ``the Workforce'' and inserting ``Labor'';
and
(4) by striking subsections (d) and (e), and inserting the
following:
``(d) Assistance in Preparation of Financial Aid
Application.--
``(1) Preparation authorized.--Nothing in this Act shall be
construed to limit an applicant from using a preparer for
consultative or preparation services for the completion of
the common financial reporting forms described in subsection
(a).
``(2) Preparer identification.--Any common financial
reporting form required to be made under this title shall
include the name, signature, address or employer's address,
social security number or employer identification number, and
organizational affiliation of the preparer of such common
financial reporting form.
``(3) Special rule.--Nothing in this Act shall be construed
to limit preparers of common financial reporting forms
required to be made under this title from collecting source
information, including Internal Revenue Service tax forms, in
providing consultative and preparation services in completing
the forms.
``(4) Additional requirements.--A preparer that provides
consultative or preparation services pursuant to this
subsection shall--
``(A) clearly inform individuals upon initial contact
(including advertising in clear and conspicuous language on
the website of the preparer, including by providing a link
directly to the website described in subsection (a)(3), if
the preparer provides such services through a website) that
the common financial reporting forms that are required to
determine eligibility for financial assistance under parts A
through E (other than subpart 4 of part A) may be completed
for
[[Page S3390]]
free via paper or electronic forms provided by the Secretary;
``(B) refrain from producing or disseminating any form
other than the forms produced by the Secretary under
subsection (a); and
``(C) not charge any fee to any individual seeking such
services who meets the requirements under subsection (b) or
(c) of section 479.''.
(c) Toll-Free Application and Information.--Section 479 of
the Higher Education Act of 1965 (20 U.S.C. 1087ss), as
amended by subsection (b)(4), is further amended by adding at
the end the following:
``(e) Toll-Free Application and Information.--The Secretary
shall contract for, or establish, and publicize a toll-free
telephone service to provide an application mechanism and
timely and accurate information to the general public. The
information provided shall include specific instructions on
completing the application form for assistance under this
title. Such service shall also include a service accessible
by telecommunications devices for the deaf (TDD's) and shall,
in addition to the services provided for in the previous
sentence, refer such students to the national clearinghouse
on postsecondary education or another appropriate provider of
technical assistance and information on postsecondary
educational services, that is supported under section 663 of
the Individuals with Disabilities Education Act (20 U.S.C.
1463). Not later than 2 years after the date of enactment of
the Financial Aid Form Simplification and Access Act, the
Secretary shall test and implement, to the extent
practicable, a toll-free telephone-based application system
to permit applicants who are eligible to utilize the EZ FAFSA
described in section 483(a) over such system.''.
(d) Master Calendar.--Section 482(a)(1)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1089(a)(1)(B)) is amended to
read as follows:
``(B) by March 1: proposed modifications and updates
pursuant to sections 478, 479(c), and 483(a)(5) published in
the Federal Register;''.
(e) Simplifying the Verification Process.--Section 484 of
the Higher Education Act of 1965 (20 U.S.C. 1091) is amended
by adding at the end the following:
``(s) Verification of Student Eligibility.--
``(1) Regulatory review.--The Secretary shall review all
regulations of the Department related to verifying the
information provided on a student's financial aid application
in order to simplify the verification process for students
and institutions.
``(2) Report.--Not later than 2 years after the date of
enactment of the Financial Aid Form Simplification and Access
Act, the Secretary shall prepare and submit a final report to
the Committee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Education and Labor of the
House of Representatives on steps taken, to the extent
practicable, to simplify the verification process. The report
shall specifically address steps taken to--
``(A) reduce the burden of verification on students who are
selected for verification at multiple institutions;
``(B) reduce the number of data elements that are required
to be verified for applicants meeting the requirements of
subsection (b) or (c) of section 479, so that only those data
elements required to determine eligibility under subsection
(b) or (c) of section 479 are subject to verification;
``(C) reduce the burden and costs associated with
verification for institutions that are eligible to
participate in Federal student aid programs under this title;
and
``(D) increase the use of technology in the verification
process.''.
SEC. 4. SUPPORT FOR WORKING STUDENTS.
(a) Dependent Students.--Section 475(g)(2)(D) of the Higher
Education Act of 1965 (20 U.S.C. 1087oo(g)(2)(D)) is amended
to read as follows:
``(D) $9,000;''.
(b) Independent Students Without Dependents Other Than a
Spouse.--Section 476(b)(1)(A)(iv) of the Higher Education Act
of 1965 (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as
follows:
``(iv) an income protection allowance of the following
amount (or a successor amount prescribed by the Secretary
under section 478)--
``(I) $10,000 for single or separated students;
``(II) $10,000 for married students where both are enrolled
pursuant to subsection (a)(2); and
``(III) $13,000 for married students where 1 is enrolled
pursuant to subsection (a)(2);''.
(c) Independent Students With Dependents Other Than a
Spouse.--Section 477(b)(4) of the Higher Education Act of
1965 (20 U.S.C. 1087qq(b)(4)) is amended to read as follows:
``(4) Income protection allowance.--The income protection
allowance is determined by the following table (or a
successor table prescribed by the Secretary under section
478):
``Income Protection Allowance
------------------------------------------------------------------------
Number in College
Family Size ----------------------------------------------------------
1 2 3 4 5
------------------------------------------------------------------------
2 $17,580 $15,230
3 20,940 17,610 $16,260
4 24,950 22,600 20,270 $17,930
5 28,740 26,390 24,060 21,720 $19,390
6 32,950 30,610 28,280 25,940 23,610
------------------------------------------------------------------------
NOTE: For each additional family member, add $3,280. For each additional
college student, subtract $2,330.''.
SEC. 5. SIMPLIFICATION FOR STUDENTS WITH SPECIAL
CIRCUMSTANCES.
(a) Independent Student.--Section 480(d) of the Higher
Education Act of 1965 (20 U.S.C. 1087vv(d)) is amended to
read as follows:
``(d) Independent Student.--
``(1) Definition.--The term `independent', when used with
respect to a student, means any individual who--
``(A) is 24 years of age or older by December 31 of the
award year;
``(B) is an orphan, in foster care, or a ward of the court,
or was in foster care or a ward of the court until the
individual reached the age of 18;
``(C) is an emancipated minor or is in legal guardianship
as determined by a court of competent jurisdiction in the
individual's State of legal residence;
``(D) is a veteran of the Armed Forces of the United States
(as defined in subsection (c)(1)) or is currently serving on
active duty in the Armed Forces;
``(E) is a graduate or professional student;
``(F) is a married individual;
``(G) has legal dependents other than a spouse; or
``(H) is a student for whom a financial aid administrator
makes a documented determination of independence by reason of
other unusual circumstances.
``(2) Simplifying the dependency override process.--Nothing
in this section shall be construed to prohibit a financial
aid administrator from making a determination of
independence, as described in paragraph (1)(H), based upon a
determination of independence previously made by another
financial aid administrator in the same application year.''.
(b) Tailoring Electronic Applications for Students With
Special Circumstances.--Section 483(a) of the Higher
Education Act of 1965 (20 U.S.C. 1090(a)), as amended by
section 3(b)(1)(D), is further amended by adding at the end
the following:
``(13) Applications for students seeking a documented
determination of independence.--In the case of a dependent
student seeking a documented determination of independence by
a financial aid administrator, as described in section
480(d), nothing in this section shall prohibit the Secretary
from--
``(A) allowing such student to--
``(i) indicate the student's request for a documented
determination of independence on an electronic form developed
pursuant to this subsection; and
``(ii) submit such form for preliminary processing that
only contains those data elements required of independent
students, as defined in section 480(d);
``(B) collecting and processing on a preliminary basis data
provided by such a student using the electronic forms
developed pursuant to this subsection; and
``(C) distributing such data to institutions of higher
education, guaranty agencies, and States for the purposes of
processing loan applications and determining need and
eligibility for institutional and State financial aid awards
on a preliminary basis, pending a documented determination of
independence by a financial aid administrator.''.
SEC. 6. DEFINITIONS.
(a) Total Income.--Section 480(a)(2) of the Higher
Education Act of (20 U.S.C. 1087vv(a)(2)) is amended--
(1) by striking ``and no portion'' and inserting ``no
portion''; and
[[Page S3391]]
(2) by inserting ``and no distribution from any qualified
education benefit described in subsection (f)(3) that is not
subject to Federal income tax,'' after ``1986,''.
(b) Assets.--Section 480(f) of the Higher Education Act of
1965 (20 U.S.C. 1087vv(f)) is amended--
(1) in paragraph (3), by striking ``shall not be considered
an asset of a student for purposes of section 475'' and
inserting ``shall be considered an asset of the parent for
purposes of section 475'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (3) the following:
``(4) A qualified education benefit shall be considered an
asset of the student for purposes of section 476 and 477.''.
(c) Other Financial Assistance.--Section 480(j)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1087vv(j)(2)) is
amended by inserting ``, or a distribution that is not
includable in gross income under section 529 of such Code,
under another prepaid tuition plan offered by a State, or
under a Coverdell education savings account under section 530
of such Code,'' after ``1986''.
SEC. 7. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
Section 491 of the Higher Education Act of 1965 (20 U.S.C.
1098) is further amended--
(1) in subsection (a)(2)--
(A) in subparagraph (B), by striking ``and'' after the
semicolon;
(B) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
``(D) to provide knowledge and understanding of early
intervention programs and make recommendations that will
result in early awareness by low- and moderate-income
students and families of their eligibility for assistance
under this title, and, to the extent practicable, their
eligibility for other forms of State and institutional need-
based student assistance; and
``(E) to make recommendations that will expand and improve
partnerships among the Federal Government, States,
institutions, and private entities to increase the awareness
and total amount of need-based student assistance available
to low- and moderate-income students.'';
(2) in subsection (d)--
(A) in paragraph (6), by striking ``, but nothing in this
section shall authorize the committee to perform such
studies, surveys, or analyses'';
(B) in paragraph (8), by striking ``and'' after the
semicolon;
(C) by redesignating paragraph (9) as paragraph (10); and
(D) by inserting after paragraph (8) the following:
``(9) monitor the adequacy of total need-based aid
available to low- and moderate-income students from all
sources, assess the implications for access and persistence,
and report those implications annually to Congress and the
Secretary; and'';
(3) in subsection (j)--
(A) in paragraph (4), by striking ``and'' after the
semicolon;
(B) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(6) monitor and assess implementation of improvements
called for under this title, make recommendations to the
Secretary that ensure the timely design, testing, and
implementation of the improvements, and report annually to
Congress and the Secretary on progress made toward
simplifying overall delivery, reducing data elements and
questions, incorporating the latest technology, aligning
Federal, State, and institutional eligibility, enhancing
partnerships, and improving early awareness of total student
aid eligibility for low- and moderate-income students and
families.''; and
(4) in subsection (k), by striking ``2004'' and inserting
``2011''.
______
By Mr. BAUCUS (for himself, Mr. Hatch, and Mr. Crapo):
S. 940. A bill to amend the Internal Revenue Code of 1986 to
permanently extend the subpart F exemption for active financing income;
to the Committee on Finance.
Mr. BAUCUS. Mr. President, I am pleased to join my friends and
Colleagues, Senator Hatch and Senator Crapo in introducing legislation
to make permanent the tax treatment in Subpart F for active financial
services income earned abroad.
The legislation that we are introducing today is identical to a bill
we introduced in the 109th Congress. Since then, this exemption has
been temporarily extended. But that extension will expire at the end of
next year. This exemption ensures that the active financial services
income earned abroad by American financial services companies, or
American manufacturing firms with a financial services operation, is
not subject to U.S. tax until that income is brought home to the U.S.
parent company.
By making this provision permanent, our legislation will put the
American financial services industry on an equal footing with its
foreign-based competitors. Those competitors do not face current home
country taxation on active financial services income.
This bill is about jobs in Montana. And it is about jobs in each of
our States. One of these competitive American financial services
companies employs hundreds of Montanans in Great Falls alone. So the
health of that company is critically important to my State.
American financial services companies successfully compete in world
financial markets. We need to make sure, however, that the U.S. tax
rules do not change that situation and make them less competitive in
the world arena. This legislation will extend a provision that I
believe preserves the international competitiveness of American-based
financial services companies, including finance and credit companies,
commercial banks, securities firms, and insurance companies. This
provision also contains appropriate safeguards to ensure that only
truly active businesses benefit.
The active financial services provision is critically important in
today's global economy. America's financial services industry is a
global leader. It plays a pivotal role in maintaining confidence in the
international marketplace. This is a fiercely competitive business. And
American-based companies would surely be disadvantaged with an
additional tax burden if we allow this exemption to lapse. Through our
network of trade agreements, we have made tremendous progress in
gaining access to new foreign markets for this industry in recent
years. Our tax laws should complement, and not undermine, this effort.
The temporary nature of the active financial services provision, like
other expiring provisions, denies American companies the stability
enjoyed by their foreign competitors. It is time to make permanent this
subpart F active financial services provision. We need to allow
American companies to make business decisions on a long-term basis.
I invite my Colleagues to join us in supporting this legislation to
provide consistent, equitable, and stable tax treatment for the U.S.
financial services industry.
______
By Ms. SNOWE (for herself and Ms. Collins):
S. 942. A bill to modify the boundaries for a certain empowerment
zone designation; to the Committee on Finance.
______
By Ms. SNOWE (for herself and Ms. Collins):
S. 943. A bill to amend the Internal Revenue Code of 1986 to extend
the period for which the designation of an area as an empowerment zone
is in effect; to the Committee on Finance.
Ms. SNOWE. Mr. President, I rise today with Senator Collins to
introduce two pieces of legislation to help reverse the devastating
population decline and economic distress that have plagued individuals
and businesses in Aroostook County, the northernmost county in Maine,
as well as in other parts of the country. What the first bill does is
simple, it will bring all of Aroostook County under the Empowerment
Zone (EZ) program. The legislation is identical to a bill that we
introduced in the 108th Congress and was included in the FY 2004
Agriculture Appropriations bill in 2003 as passed by the Senate. The
second piece of legislation would enable those economically depressed
communities, already taking advantage of these incentives, to secure
the full 15 years of targeted growth originally granted to the areas
first designated as Empowerment Zones.
To fully grasp the importance of the former legislation, it is
necessary to understand the unique situation facing the residents of
Aroostook County. ``The County,'' as it is called by Mainers, is a vast
and remote region of Maine. It shares more of its border with Canada
than its neighboring Maine counties. It has the distinction of being
the largest county east of the Mississippi River. Its geographic
isolation is even more acute when considering that the county's
relatively small population of 73,000 people are scattered throughout
6,672 square miles of rural countryside. Aroostook County is home to 71
organized townships, as well as 125 unorganized townships much of which
is forest land and wilderness.
As profoundly remote as this geographic isolation may seem, it is the
[[Page S3392]]
economic isolation and the recent out-migration that has had the most
devastating effect on the region. The economy of northern Maine has a
historical dependence upon its natural resources, particularly forestry
and agriculture. While these industries served the region well in
previous decades, and continue to form the underpinnings of the local
economy, many of these sectors have experienced decline and can no
longer provide the number of quality jobs that residents require and
deserve.
While officials in the region have put forward a herculean effort to
redevelop the region, with nearly 1,000 new jobs at the Loring Commerce
Center alone, Aroostook County is still experiencing a significant
``job deficit'', and as a result continues to lose population at an
alarming rate. Since its peak in 1960, northern Maine's population has
declined by 30 percent. Unfortunately, the Maine State Planning Office
predicts that Aroostook County will continue losing population as more
workers leave the area to seek opportunities and higher wages in
southern Maine and the rest of New England.
In January 2002, a portion of Aroostook County was one of two regions
that received Empowerment Zone status from the USDA for out-migration.
The entire county experienced an out-migration of 15 percent from
86,936 in 1990 to 73,938 in 2000. Moreover, a staggering 40 percent of
15- to 29-year-olds left during the last decade.
The current zone boundaries were chosen based on the criteria that
Empowerment Zones be no larger than 1,000 square miles, and have a
maximum population of 30,000 for rural areas. The lines drawn for the
Aroostook County Empowerment Zone were considered to be the most
inclusive and reasonable given the constraints of the program. It
should be noted as well that the boundaries were drawn based on the
1990 census, making the data significantly outdated at the start, and
included the former Loring Air Force Base and its population of nearly
8,000 people, which had closed nearly 8 years before the designation,
taking its military and much of its civilian workforces with it. The
Maine State Planning Office estimated that the base closure resulted in
the loss of 3,494 jobs directly related to the base and another 1,751
in associated industry sectors for a total loss of $106.9 million
annual payroll dollars.
Some of the most distressed communities that have lost substantial
population are not in the Empowerment Zone, and other communities, such
as Houlton, literally are divided simply by a road, having one business
on one side of the street with no Empowerment Zone designation across
from a neighboring business on the other side of the street with full
Empowerment Zone benefits. The economic factors for these communities
and for these neighbors are the same as those areas within the
Empowerment Zone. This designation is not meant to cause divisiveness
within communities, it is created to augment a partnership for growth
and to level the playing field for all Aroostook County communities who
have equally suffered through continuing out-migration whether it be in
Madawaska or Island Falls.
The legislation I am introducing would provide economic development
opportunities to all reaches of Aroostook County by extending
Empowerment Zone status to the entire county. This inclusive approach
recognizes that the economic hardship and population out-migration are
issues that the entire region must confront, and, as evidenced by their
successful Round III EZ application, they are attempting to confront. I
believe the challenges faced by Aroostook County are significant, but
not insurmountable. This legislation would make great strides in
improving the communities and business in northern Maine, and I urge my
colleagues to support this bill.
With regards to the latter bill that I am offering today, I believe
all Empowerment Zone communities need 15 years to reverse years of
downward spiraling that originally effected their economies. I have
long supported Empowerment Zone incentives and I believe that these
targeted tax incentives provide struggling communities the best chance
for sustained, long lasting economic renewal.
In 1994, Congress designated the first Empowerment Zones setting
2009, a 15-year time frame, as the date that these tax incentives would
expire. The 2009 expiration date of Empowerment Zone status was held
firm for Round II communities designated in 1997, and the Round III
communities designated in 2002. As a result of the expiration date some
communities such as Aroostook County, which was designated in 2002, are
granted as few as 7 years to use tax incentives to overturn decades of
decline and economic neglect.
Unfortunately, Aroostook's economic problems will not be fixed within
the 7 short years this area qualifies for Empowerment Zone tax
incentives. Instead a long-term and lasting commitment of at least 15
years is necessary to help Aroostook communities work their way to
stronger economic prosperity. Many communities, such as Aroostook
County, that were unable to qualify for Empowerment Zone status until
2002, are in dire need of the long-term 15-year window in which to
address their stubborn causes of poverty.
Businesses operating within Empowerment Zones receive a 20 percent
wage credit for the first $15,000 they pay in wages to local residents.
Other tax incentives encourage businesses and industries to further
commit to these communities. Companies with businesses in Empowerment
Zones are eligible for an additional $35,000 worth of 179 business
expensing--making these long-term business obligations more attractive,
affordable and likely. Empowerment Zones are also eligible for expanded
tax exempt financing for building the infrastructure communities need
to attract long-term developers and business partners.
To qualify for Empowerment Zone status, communities develop
comprehensive strategic plans that depend on these tax incentives to
help them transform their economies. Each community's plan focuses on
establishing long-term partnerships among private businesses, non
profits, state, local, and federal government agencies to help develop
the local economy. Together these parties use the community's strategic
blue print to implement interconnected projects that address the
factors creating the area's economic sickness. These types of projects
concentrate on building much-needed business and industrial
infrastructure, developing an educated workforce, and diversifying
local economies away from a reliance on one employer or industry.
Through the Aroostook Partnership for Progress, and the businesses
working in the Empowerment Zone, the County is making significant
progress--the factors causing poverty in this rural part of Maine
cannot be eradicated quickly. Aroostook County's strategic plan will
take time to implement as infrastructure, industry and other
initiatives produce greater economic capabilities and diversification.
Though Aroostook County is working valiantly to overcome the factors
causing their economic plight, they will need more than seven years to
overcome 40 years of difficulties. I know that there are many other
struggling Round II and Round III Empowerment Zone communities, such as
Aroostook, who need the maximum, in order to reverse the poverty and
underdevelopment also plaguing those areas.
I urge my colleagues to recognize the urgency of making a long-term
pledge to communities using Empowerment Zone incentives to work its way
out of long-term poverty. I hope that each Senator will support the
communities in their states, currently undertaking the painful process
of economic transformation, by supporting passage of this economic
development bill.
I ask unanimous consent that the text of each bill be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 942
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. MODIFICATION OF BOUNDARY OF AROOSTOOK COUNTY
EMPOWERMENT ZONE.
(a) In General.--The Aroostook County empowerment zone
shall include, in addition to the area designated as of the
date of the enactment of this Act, the remaining area of the
county not included in such designation, notwithstanding the
size requirement of section 1392(a)(3)(A) of the Internal
Revenue Code of 1986 and the population requirements of
section 1392(a)(1)(B) of such Code.
[[Page S3393]]
(b) Effective Date.--Subsection (a) shall take effect as of
the effective date of the designation of the Aroostook County
empowerment zone by the Secretary of Agriculture.
____
S. 943
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF ROUND II AND ROUND III EMPOWERMENT
ZONES.
(a) In General.--Clause (i) of section 1391(d)(1)(A) of the
Internal Revenue Code of 1986 (relating to period for which
designation is in effect) is amended by inserting ``(December
31, 2016, in the case of any empowerment zone designated
under subsection (g) or (h))'' after ``2009''.
(b) Conforming Amendment.--Paragraph (2) of section 1391(h)
of the Internal Revenue Code of 1986 (relating to additional
designations permitted) is amended by striking ``2009'' and
inserting ``2016''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
Ms. COLLINS. Mr. President, I am pleased to join my colleague,
Senator Olympia Snowe, in introducing legislation that will expand the
borders of the Aroostook County Empowerment Zone to include the entire
County so that the benefits of Empowerment Zone designation can be
fully realized in northern Maine.
The Department of Agriculture's Empowerment Zone program addresses a
comprehensive range of community challenges, including many that have
traditionally received little federal assistance, reflecting the fact
that rural problems do not come in standardized packages but can vary
widely from one place to another. The Empowerment Zone program
represents a long-term partnership between the federal government and
rural communities so that communities have enough time to implement
projects to build the capacity to sustain their development beyond the
term of the partnership. An Empowerment Zone designation gives
designated regions potential access to federal grants for social
services and community redevelopment as well as tax incentives to
encourage economic growth.
Aroostook County is the largest county east of the Mississippi River.
Yet, despite the impressive character and work ethic of its citizens,
the County has fallen on hard times. The 2000 Census indicated a 15
percent loss in population since 1990. Loring Air Force Base, which was
closed in 1994, also caused an immediate out-migration of 8,500 people
and a further out-migration of families and businesses that depended on
Loring for their customer base.
In response to these developments, the Northern Maine Development
Commission and other economic development organizations, the private
business sector, and community leaders in Aroostook have joined forces
to stabilize, diversify, and grow the area's economy. They have
attracted some new industries and jobs. As a native of Aroostook
County, I can attest to the strong community support that will ensure a
continued successful partnership with the U.S. Department of
Agriculture.
Designating this region of the United States as an Empowerment Zone
will help build its future economic prosperity. However, the
restriction that the Empowerment Zone be limited to 1,000 square miles
prevents all of Aroostook's small rural communities from benefitting
from this program. Aroostook covers some 6,672 square miles but has a
population of only 74,000. Including all of the County in the
Empowerment Zone will guarantee that parts of the County will not be
left behind in the quest for economic prosperity. It does little good
to have a company move from one community to another within the County
simply to take advantage of Empowerment Zone benefits.
Senator Snowe and I introduced this legislation in both the 108th and
109th Congresses. In fact, we were successful in getting this
legislation passed in the Senate by attaching it to the fiscal year
2004 Agriculture Appropriations bill. Unfortunately, this language was
removed during conference negotiations with the House. Senator Snowe
and I remain committed to bringing the benefits of the Empowerment Zone
designation to all of Aroostook County's residents and will work to
pass this legislation in both chambers during this Congress.
______
By Mr. DURBIN (for himself and Mr. Coleman):
S. 945. A bill to ensure that college textbooks and supplemental
materials are available and affordable; to the Committee on Health,
Education, Labor, and Pensions.
Mr. DURBIN. Mr. President, when we talk about college affordability,
the discussion typically focuses on tuition costs, Pell grants and
student loans. But we cannot talk about college affordability without
also including college textbook costs in the same conversation.
Picture a bright, hard-working college student at the beginning of a
new term. The student, who comes from a family of modest means, has
managed to pay for tuition through a combination of grants,
scholarships, student loans and part-time work. The student goes to her
college bookstore to buy her textbooks. She walks out of the bookstore
with her textbooks and wonders how she will be able to pay the $500
charge she just put on her credit card to buy the required books for
her classes.
According to GAO, college textbook prices have risen an average of
six percent each year since 1987 and at twice the rate of annual
inflation over the last two decades. Textbook prices have been
following increases in tuition and fees. Since December of 1986,
textbook prices have increased by 186 percent and tuition and fees grew
by 240 percent. GAO found that the primary contributing factor is the
investment publishers have made to develop and produce supplemental
materials such as CDs and Web-based tutorials.
The cost of textbooks and supplies as a percentage of tuition and
fees depends on the type of institution the student is attending. GAO
determined that the average estimated cost of books and supplies for
full-time freshman students at four-year public schools was $898 in
2003, or about 26 percent of the cost of tuition and fees. At two-year
public institutions, where the average student is more likely to be
low-income, the average estimated cost was even higher due to lower
tuition and fees at these schools. A first-year student at a two-year
school spent a comparable amount--$886 on average, but that is nearly
three-quarters of the cost of tuition and fees. Students at public two-
year schools are trying to find an economical way to pursue higher
education, but could easily be sidelined by high textbook costs.
What can be done to keep textbooks affordable for college students?
Publishers, schools and bookstores can take any number of steps to help
keep the cost of textbooks down. Schools, and in particular,
professors, have tremendous power to help cut down the overall cost of
textbooks. I was shocked to learn that many professors do not know the
retail price of the textbook they are choosing for their class. The
earlier a bookstore receives textbook information from a professor, the
greater the ability of the bookstore to obtain cheaper used versions of
the required text.
There are other actions that publishers and professors can take to
help keep down the cost of textbooks, and that is why I am introducing
the bipartisan College Textbook Affordability Act, cosponsored by
Senator Coleman.
First, the bill requires transparency. Publishers must provide the
price of a textbook in writing whenever a publisher's representative
provides information on a textbook to a professor. The professor must
also be provided the history of revisions for a textbook or
supplemental material and whether the textbook or supplement is
available in an alternative format, such as paperback, one- or two-
colored editions, and loose-leaf editions. Publishers insist that
access to such information is readily available to professors. If this
is truly the case, then this bill will simply codify what publishers
claim is already their industry's normal practice and would not be an
undue burden placed on the industry.
Under the bill, textbooks and supplemental materials that are sold as
a bundle must also be sold separately. The GAO report found that
instructors are often unaware that the course materials they have
chosen will be sold as a bundle.
The legislation also requires schools to do their part in managing
textbook costs for students. Schools are required to include the
international standard
[[Page S3394]]
book number, or ISBN number and the retail price of all required and
optional materials in the course schedule for the upcoming term. This
requirement would help ensure that bookstores receive book orders in
time to stock up on any available used books and would provide students
with plenty of time to search for lower-priced textbooks via
alternative sources such as online booksellers or other students.
When asked, schools must also provide bookstores with access to the
course schedule, ISBN numbers for required and optional course
material, the maximum student enrollment for a course and the current
enrollment numbers. Access to this information would allow bookstores
to better estimate the amount of inventory they should maintain for
each course. A school in my home state, Illinois State University,
recognized the importance of giving students and bookstores early
access to such information. ISU's online course schedule provides
students with ISBN numbers, and bookstores are given access to course
enrollment numbers as well as required and optional course materials.
Combined, these actions can help drive down the cost of textbooks and
help make college more affordable for students. The college
affordability conversation cannot focus only on raising federal grants
and lowering student loan interest rates. There is no question that
federal aid has not kept up with rising college costs. However, we must
also look at why college costs, including textbook costs, continue to
increase year after year.
I have heard stories of students, especially community college
students, who decide to drop a semester or a year because they simply
cannot afford the textbooks. This is just unacceptable. Textbook costs
are a part, and in some cases a large part of college costs, and we
must do what is within our power to ensure that students do not put
their education on hold just because they cannot afford to buy the
textbooks.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bills were ordered to be printed in the
Record, as follows:
S. 945
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 ``College Textbook
Affordability Act of 2007''.
SEC. 2. PURPOSE AND INTENT.
The purpose of this Act is to ensure that every student in
higher education is offered better and more timely access to
affordable course materials by educating and informing
faculty, students, administrators, institutions of higher
education, bookstores, and publishers on all aspects of the
selection, purchase, sale, and use of the course materials.
It is the intent of this Act to have all involved parties
work together to identify ways to decrease the cost of
college textbooks and supplemental materials for students
while protecting the academic freedom of faculty members to
provide high quality course materials for students.
SEC. 3. DEFINITIONS.
In this Act:
(1) College textbook.--The term ``college textbook'' means
a textbook, or a set of textbooks, used for a course in
postsecondary education at an institution of higher
education.
(2) Course schedule.--The term ``course schedule'' means a
listing of the courses or classes offered by an institution
of higher education for an academic period.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(4) Publisher.--The term ``publisher'' means a publisher of
college textbooks or supplemental materials involved in or
affecting interstate commerce.
(5) Supplemental material.--The term ``supplemental
material'' means educational material published or produced
to accompany a college textbook.
SEC. 4. PUBLISHER REQUIREMENTS.
(a) College Textbook Pricing Information.--When a publisher
provides a faculty member of an institution of higher
education with information regarding a college textbook or
supplemental material available in the subject area in which
the faculty member teaches, the publisher shall include, with
any such information and in writing, the following:
(1) The price at which the publisher would make the college
textbook or supplemental material available to the bookstore
on the campus of, or otherwise associated with, such
institution of higher education.
(2) Any history of revisions for the college textbook or
supplemental material.
(3) Whether the college textbook or supplemental material
is available in any other format, including paperback and
unbound, and the price at which the publisher would make the
college textbook or supplemental material in the other format
available to the bookstore on the campus of, or otherwise
associated with, such institution of higher education.
(b) Unbundling of Supplemental Materials.--A publisher that
sells a college textbook and any supplemental material
accompanying such college textbook as a single bundled item
shall also sell the college textbook and each supplemental
material as separate and unbundled items.
SEC. 5. PROVISION OF ISBN COLLEGE TEXTBOOK INFORMATION IN
COURSE SCHEDULES.
(a) Internet Course Schedules.--Each institution of higher
education that receives Federal assistance and that publishes
the institution's course schedule for the subsequent academic
period on the Internet shall--
(1) include, in the course schedule, the International
Standard Book Number (ISBN) and the retail price for each
college textbook or supplemental material required or
recommended for a course or class listed on the course
schedule that has been assigned such a number; and
(2) update the information required under paragraph (1) as
necessary.
(b) Written Course Schedules.--In the case of an
institution of higher education that receives Federal
assistance and that does not publish the institution's course
schedule for the subsequent academic period on the Internet,
the institution of higher education shall include the
information required under subsection (a)(1) in any printed
version of the institution's course schedule and shall
provide students with updates to such information as
necessary.
SEC. 6. AVAILABILITY OF INFORMATION FOR COLLEGE TEXTBOOK
SELLERS.
An institution of higher education that receives Federal
assistance shall make available, as soon as is practicable,
upon the request of any seller of college textbooks (other
than a publisher) that meets the requirements established by
the institution, the most accurate information available
regarding--
(1) the institution's course schedule for the subsequent
academic period; and
(2) for each course or class offered by the institution for
the subsequent academic period--
(A) the International Standard Book Number (ISBN) for each
college textbook or supplemental material required or
recommended for such course or class that has been assigned
such a number;
(B) the number of students enrolled in such course or
class; and
(C) the maximum student enrollment for such course or
class.
____________________