Congressional Record, Volume 153 Issue 72 (Thursday, May 3, 2007)

[Congressional Record Volume 153, Number 72 (Thursday, May 3, 2007)]
[Senate]
[Pages S5565-S5602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. DURBIN (for himself, Mr. Grassley, Ms. Cantwell, Mrs. Clinton,
Mr. Harkin, and Mr. Obama):
S. 1276. A bill to establish a grant program to facilitate the
creation of methamphetamine precursor electronic logbook systems, and
for other purposes; to the Committee on the Judiciary.
Mr. DURBIN. Mr. President, I rise today to introduce the bipartisan
Methamphetamine Production Prevention Act of 2007. I am pleased to have
the support and cosponsorship of Senator Grassley for this important
legislation, and I look forward to working closely with Chairman Leahy
and Ranking Member Specter to advance the bill through the judiciary
Committee and to secure its enactment into law.
The Methamphetamine Production Prevention Act will take the next step
toward wiping out the domestic production of methamphetamine, or
``meth.'' The bill will make it easier to use electronic logbook
systems in order to monitor sales of meth precursor drugs and notify
enforcement agencies when individuals illegally stockpile these
precursors by traveling from pharmacy to pharmacy.
This legislation is endorsed by the National Alliance of State Drug
Enforcement Agencies, the National Narcotics Officers' Associations'
Coalition, the National Criminal Justice Association, the National
Sheriffs' Association, the Major County Sheriffs' Association, the
National Troopers Coalition, the National District Attorneys
Association, the National Association of Counties, and the Community
Anti-Drug Coalitions of America. I also want to commend and thank
Illinois Attorney General Lisa Madigan and her staff for their
assistance in preparing this legislation.
For years, the manufacture and use of methamphetamine have plagued
communities in Illinois and throughout the Nation. Meth is unique among
illegal drugs in that its harms stem not only from its distribution and
use, but also from the clandestine manufacturing labs that meth
``cooks'' use to make meth. These labs pose serious dangers to those
who live nearby and to the surrounding environment. Law enforcement
agencies in Illinois and elsewhere are forced to devote a significant
percentage of their time to locating, busting, and cleaning up meth
labs.
The Combat Methamphetamine Epidemic Act, ``Combat Meth Act,'' enacted
in 2006, took several important steps to reduce domestic meth
manufacturing. These steps included limiting the amount of meth
precursor drug products that a purchaser can buy, such as
pseudoephedrine, and requiring pharmacies to keep written or electronic
logbooks recording each precursor purchase. The Combat Meth Act has led
to a drop in the number of meth labs discovered in many States.
However, domestic meth cooks have begun adapting to the Combat Meth
Act. They have figured out how to circumvent the act's restrictions by
``smurfing,'' or purchasing illegal amounts of meth precursor drugs by
traveling to multiple pharmacies that keep written logbooks and buying
legal quantities at each one. According to Illinois law enforcement
authorities, smurfing now accounts for at least 90 percent of the
pseudoephedrine used to make meth in Illinois.
The next step in combating domestic meth production is to promote the
use of effective electronic logbook systems. Law enforcement experts
agree that if pharmacies maintain electronic logbook information and
share that information with appropriate law enforcement and regulatory
agencies, this information can be used to prevent the sale of meth
precursor drugs in excess of legal limits, and to identify and
prosecute ``smurfs'' and meth cooks.
This legislation, the Methamphetamine Production Prevention Act,
facilitates and encourages the use of meth precursor electronic logbook
systems in several ways.
First, the bill revises the technical logbook requirements in the
Combat Meth Act. While the Combat Meth Act provides for the use of
electronic logbook systems, several of the act's requirements are not
tailored for logbooks kept in electronic form. For example, under the
act, a prospective purchaser must ``enter[] into the logbook his or her
name, address, and the date and time of the sale.'' This requirement is
unwieldy for retailers who use electronic logbook systems, because many
purchasers cannot type quickly or accurately. The Methamphetamine
Production Prevention Act would permit retailers' employees to type the
name and address of a purchaser into an electronic logbook system, and
would allow retailers to use software programs that automatically
record the date and time of each sale. Under the bill, a retail
employee would have to ensure that the name the employee types into the
system matches the name on the ID that the purchaser is currently
required to present.
Also, the Combat Meth Act requires purchasers to sign a logbook at
the time of sale, regardless of whether the seller uses a paper or
electronic logbook. Collecting and retaining electronic signatures
requires a large amount of computer memory, and the transmission of
these electronic signature files to law enforcement agencies does not
provide a significant law enforcement benefit. Sellers who use
electronic logbook systems should be given the option of collecting
signatures on paper, as long as those signatures are stored for the
requisite 2-year retention period, and as long as the signatures are
clearly linked to the electronically-captured sale information.
The Methamphetamine Production Prevention Act would permit a seller
who uses an electronic logbook to collect purchaser signatures through
any of three different methods: (1) having the purchaser sign an
electronic signature device; (2) having the purchaser sigh a bound
paper book in which the signature is placed adjacent to a unique
identifier number, or a printed sticker that clearly links the
signature to the purchaser's logbook information; or (3) having the
purchaser sign a document that the seller prints out at the time of
sale that displays the required logbook information and contains a
signature line. These options ensure that each purchaser's signature
will be collected, but they give sellers flexibility in developing
cost-effective electronic logbook systems.
The Methamphetamine Production Prevention Act would also create a
small but important Federal grant program to help States plan, create
or enhance electronic logbook systems. Several States, including
Oklahoma, Arkansas, West Virginia and Kentucky, have already begun
developing electronic logbook systems, and many other States
are considering them. The Methamphetamine Production Prevention Act
authorizes $3 million in grants

[[Page S5566]]

to States and localities, with grants capped at a maximum of $300,000.
The bill imposes a 25-percent State matching requirement, to ensure
that States have, invested in their logbook systems and have a stake in
ensuring the successful operation of these systems.

Instead of mandating how States design their electronic logbook
systems, the bill provides incentives for States to design effective
logbook systems. Because meth smurfs frequently travel across State
lines to stockpile meth precursors, State efforts to develop electronic
logbook systems will be more successful if those efforts are
coordinated with the activities of other states. The bill would
therefore give priority to grant applicants whose logbook systems are
developed in consultation with a working group of key Federal, State
and private stakeholders spearheaded by the National Alliance for Model
State Drug Laws. This working group will advise States on best
practices in developing logbook systems and will help States develop
logbook systems that are compatible and interoperable with other
systems across the country.
The bill also gives a grantmaking preference to applicants whose
logbook systems are statewide, are capable of sharing information in
real time, and are designed to share information across jurisdictional
boundaries. At the same time, the bill preserves the privacy safeguards
currently established under the Combat Meth Act and State law. To
promote accountability, the bill requires the Attorney General to
provide an annual report to Congress that evaluates the grant program
and its effectiveness in curtailing meth production.
The Methamphetamine Production Prevention Act does not mandate the
use of electronic logbook systems, nor does it mandate the features
that an electronic logbook system must possess. The bill respects the
fact that States have enacted various types of anti-meth restrictions
above the Federal Combat Meth Act baseline, and that pharmacies and
retailers in different States have different capabilities with regard
to electronic tracking. At the same time, we want to encourage States
to coordinate their development of methamphetamine precursor electronic
logbook systems so that smurfs will not be able to supply their meth
labs by hopping across State lines. Our bill aims to strike a balance
by coordinating the various State efforts, while still allowing States
the flexibility to innovate and to respond to their specific State
needs.
There are many actions besides promoting electronic logbook systems
that we must take to address the scourge of methamphetamine. For
example, we must provide for the prevention and treatment of meth use,
and we must also prevent the illegal distribution of meth and its
precursors over the Internet and from other countries. However, law
enforcement experts agree that electronic logbook systems are an
important tool in our effort to combat meth, particularly domestic meth
labs. We can, and should, do more to help make these logbook systems
work.
By facilitating and encouraging the use of electronic logbook
systems, the Methamphetamine Production Prevention Act will help wipe
out domestic meth labs and the environmental and social harms they
cause. The bill will also help free up law enforcement resources from
meth lab busts and cleanup, allowing our law enforcement agencies to
focus on other crime prevention and enforcement efforts. The production
of methamphetamine has plagued our communities for far too long, and
this legislation takes a critical step to stop it. I urge the Senate to
pass this important bill.
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. 1276

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 ``Methamphetamine Production
Prevention Act of 2007''.

SEC. 2. FINDINGS.

Congress finds that--
(1) the manufacture, distribution and use of
methamphetamine have inflicted damages on individuals,
families, communities, businesses, the economy, and the
environment throughout the United States;
(2) methamphetamine is unique among illicit drugs in that
the harms relating to methamphetamine stem not only from its
distribution and use, but also from the manufacture of the
drug by ``cooks'' in clandestine labs throughout the United
States;
(3) Federal and State restrictions limiting the sale of
legal drug products that contain methamphetamine precursors
have reduced the number and size of domestic methamphetamine
labs;
(4) domestic methamphetamine cooks have managed to
circumvent restrictions on the sale of methamphetamine
precursors by ``smurfing'', or purchasing impermissibly large
cumulative amounts of precursor products by traveling from
retailer to retailer and buying permissible quantities at
each retailer;
(5) although Federal and State laws require retailers of
methamphetamine precursor products to keep written or
electronic logbooks recording sales of precursor products,
retailers are not always required to transmit this logbook
information to appropriate law enforcement and regulatory
agencies, except upon request;
(6) when retailers' logbook information regarding sales of
methamphetamine precursor products is kept in a database in
an electronic format and transmitted between retailers and
appropriate law enforcement and regulatory agencies, such
information can be used to further reduce the number of
domestic methamphetamine labs by preventing the sale of
methamphetamine precursors in excess of legal limits, and by
identifying and prosecuting ``smurfs'' and others involved in
methamphetamine manufacturing;
(7) States and local governments are already beginning to
develop such electronic logbook database systems, but they
are hindered by a lack of resources;
(8) efforts by States and local governments to develop such
electronic logbook database systems may also be hindered by
logbook recordkeeping requirements contained in section
310(e) of the Controlled Substances Act (21 U.S.C. 830(e))
that are tailored to written logbooks and not to electronic
logbooks; and
(9) providing resources to States and localities and making
technical corrections to the Combat Methamphetamine Epidemic
Act of 2005 will allow more rapid and widespread development
of such electronic logbook systems, thereby reducing the
domestic manufacture of methamphetamine and its associated
harms.

SEC. 3. DEFINITIONS.

In this Act--
(1) the term ``local'' means a county, city, town,
township, parish, village, or other general purpose political
subdivision of a State;
(2) the term ``methamphetamine precursor electronic logbook
system'' means a system by which a regulated seller
electronically records and transmits to an electronic
database accessible to appropriate law enforcement and
regulatory agencies information regarding the sale of a
scheduled listed chemical product that is required to be
maintained under section 310(e) of the Controlled Substances
Act (21 U.S.C. 830(e)) (as amended by this Act), State law
governing the distribution of a scheduled listed chemical
product, or any other Federal, State, or local law;
(3) the terms ``regulated seller'' and ``scheduled listed
chemical product'' have the meanings given such terms in
section 102 of the Controlled Substances Act (21 U.S.C. 802);
and
(4) the term ``State''--
(A) means a State of the United States, the District of
Columbia, and any commonwealth, territory, or possession of
the United States; and
(B) includes an ``Indian tribe'', as that term is defined
in section 102 of the Federally Recognized Indian Tribe List
Act of 1994 (25 U.S.C. 479a).

SEC. 4. AUTHORIZATION FOR EFFECTIVE METHAMPHETAMINE PRECURSOR
ELECTRONIC LOGBOOK SYSTEMS.

Section 310(e)(1) of the Controlled Substances Act (21
U.S.C. 830(e)(1)) is amended--
(1) in subparagraph (A)(iii), by striking ``a written or
electronic list'' and inserting ``a written list or an
electronic list that complies with subparagraph (H)''; and
(2) adding at the end the following:
``(H) Electronic logbooks.--
``(i) In general.--A logbook maintained in electronic form
shall include, for each sale to which the requirement of
subparagraph (A)(iii) applies, the name of any product sold,
the quantity of that product sold, the name and address of
each purchaser, the date and time of the sale, and any other
information required by State or local law.
``(ii) Sellers.--In complying with the requirements of
clause (i), a regulated seller may--

``(I) ask a prospective purchaser for the name and address,
and enter such information into the electronic logbook, and
if the seller enters the name and address of the prospective
purchaser into the electronic logbook, the seller shall
determine that the name entered into the electronic logbook
corresponds to the name provided on the identification
presented by the purchaser under subparagraph (A)(iv)(I)(aa);
and
``(II) use a software program that automatically and
accurately records the date and time of each sale.

``(iii) Purchasers.--A prospective purchaser in a sale to
which the requirement of

[[Page S5567]]

subparagraph (A)(iii) applies that is being documented in an
electronic logbook shall provide a signature in at least 1 of
the following ways:

``(I) Signing a device presented by the seller that
captures signatures in an electronic format.
``(II) Signing a bound paper book.
``(III) Signing a printed document that corresponds to the
electronically-captured logbook information for such
purchaser.

``(iv) Electronic signatures.--

``(I) Device.--Any device used under clause (iii)(I)
shall--

``(aa) preserve each signature in a manner that clearly
links that signature to the other electronically-captured
logbook information relating to the prospective purchaser
providing that signature; and
``(bb) display information that complies with subparagraph
(A)(v).

``(II) Document retention.--A regulated seller that uses a
device under clause (iii)(I) to capture signatures shall
maintain each such signature for not less than 2 years after
the date on which that signature is captured.

``(v) Paper books.--

``(I) In general.--Any bound paper book used under clause
(iii)(II) shall--

``(aa) ensure that the signature of the prospective
purchaser is adjacent to a unique identifier number or a
printed sticker that clearly links that signature to the
electronically-captured logbook information relating to that
prospective purchaser; and
``(bb) display information that complies with subparagraph
(A)(v).

``(II) Document retention.--A regulated seller that uses
bound paper books under clause (iii)(II) shall maintain any
entry in such books for not less than 2 years after the date
on which that entry is made.

``(vi) Printed documents.--

``(I) In general.--Any printed document used under clause
(iii)(III) shall--

``(aa) be printed by the seller at the time of the sale
that document relates to;
``(bb) display information that complies with subparagraph
(A)(v);
``(cc) for the relevant sale, list the name of each product
sold, the quantity sold, the name and address of the
purchaser, and the date and time of the sale;
``(dd) contain a clearly identified signature line for a
purchaser to sign; and
``(ee) include a notice that the signer has read the
printed information and agrees that it is accurate.

``(II) Document retention.--

``(aa) In general.--A regulated seller that uses printed
documents under clause (iii)(III) shall maintain each such
document for not less than 2 years after the date on which
that document is signed.
``(bb) Secure storage.--Each signed document shall be
inserted into a binder or other secure means of document
storage immediately after the purchaser signs the
document.''.

SEC. 5. GRANTS FOR METHAMPHETAMINE PRECURSOR ELECTRONIC
LOGBOOK SYSTEMS.

(a) Establishment.--The Attorney General of the United
States, through the Office of Justice Programs of the
Department of Justice, may make grants, in accordance with
such regulations as the Attorney General may prescribe, to
State and local governments to plan, develop, implement, or
enhance methamphetamine precursor electronic logbook systems.
(b) Use of Funds.--
(1) In general.--A grant under this section may be used to
enable a methamphetamine precursor electronic logbook system
to--
(A) indicate to a regulated seller, upon the entry of
information regarding a prospective purchaser into the
methamphetamine precursor electronic logbook system, whether
that prospective purchaser has been determined by appropriate
law enforcement or regulatory agencies to be eligible,
ineligible, or potentially ineligible to purchase a scheduled
listed chemical product under Federal, State, or local law;
and
(B) provide contact information for a prospective purchaser
to use if the prospective purchaser wishes to question a
determination by appropriate law enforcement or regulatory
agencies that the prospective purchaser is ineligible or
potentially ineligible to purchase a scheduled listed
chemical product.
(2) Access to information.--Any methamphetamine precursor
electronic logbook system planned, developed, implemented, or
enhanced with a grant under this section shall prohibit
accessing, using, or sharing information entered into that
system for any purpose other than to--
(A) ensure compliance with this Act, section 310(e) of the
Controlled Substances Act (21 U.S.C. 830(e)) (as amended by
this Act), State law governing the distribution of any
scheduled listed chemical product, or other applicable
Federal, State, or local law; or
(B) facilitate a product recall to protect public safety.
(c) Grant Requirements.--
(1) Maximum amount.--The Attorney General shall not award a
grant under this section in an amount that exceeds $300,000.
(2) Duration.--The period of a grant made under this
section shall not exceed 3 years.
(3) Matching requirement.--Not less than 25 percent of the
cost of a project for which a grant is made under this
section shall be provided by non-Federal sources.
(4) Preference for grants.--In awarding grants under this
section, the Attorney General shall give priority to any
grant application involving a proposed or ongoing
methamphetamine precursor electronic logbook system that is--
(A) statewide in scope;
(B) capable of real-time capture and transmission of
logbook information to appropriate law enforcement and
regulatory agencies;
(C) designed in a manner that will facilitate the exchange
of logbook information between appropriate law enforcement
and regulatory agencies across jurisdictional boundaries,
including State boundaries; and
(D) developed and operated, to the extent feasible, in
consultation and ongoing coordination with the Drug
Enforcement Administration, the Office of Justice Programs,
the Office of National Drug Control Policy, the non-profit
corporation described in section 1105 of the Office of
National Drug Control Policy Reauthorization Act of 2006 (21
U.S.C. 1701 note), other Federal, State, and local law
enforcement and regulatory agencies, as appropriate, and
regulated sellers.
(5) Annual report.--
(A) In general.--Not later than December 31 of each
calendar year in which funds from a grant received under this
section are expended, the Attorney General shall submit a
report to Congress containing--
(i) a summary of the activities carried out with grant
funds during that year;
(ii) an assessment of the effectiveness of the activities
described in clause (i) on the planning, development,
implementation or enhancement of methamphetamine precursor
electronic logbook systems;
(iii) an assessment of the effect of the activities
described in clause (i) on curtailing the manufacturing of
methamphetamine in the United States and the harms associated
with such manufacturing; and
(iv) a strategic plan for the year following the year of
that report.
(B) Additional information.--The Attorney General may
require the recipient of a grant under this section to
provide information relevant to preparing any report under
subparagraph (A) in a report that grant recipient is required
to submit to the Office of Justice Programs of the Department
of Justice.

SEC. 6. STUDY.

(a) In General.--Not later than 1 year after the date on
which grant funds under section 5 are first distributed, the
Comptroller General of the United States shall conduct a
study and submit to Congress a report regarding the
effectiveness of methamphetamine precursor electronic logbook
systems that receive funding under that section.
(b) Contents.--The report submitted under subsection (a)
shall include--
(1) a summary of the activities carried out with grant
funds during the previous year;
(2) an assessment of the effectiveness of the activities
described in paragraph (1) on the planning, development,
implementation or enhancement of methamphetamine precursor
electronic logbook systems in the United States;
(3) an assessment of the extent to which proposed or
operational methamphetamine precursor electronic logbook
systems in the United States, including those that receive
funding under section 5, are--
(A) statewide in scope;
(B) capable of real-time capture and transmission of
logbook information to appropriate law enforcement and
regulatory agencies;
(C) designed in a manner that will facilitate the exchange
of logbook information between appropriate law enforcement
and regulatory agencies across jurisdictional boundaries,
including State boundaries; and
(D) developed and operated, to the extent feasible, upon
consultation with and in ongoing coordination with the Drug
Enforcement Administration, the Office of Justice Programs,
the Office of National Drug Control Policy, the non-profit
corporation described in section 1105 of the Office of
National Drug Control Policy Reauthorization Act of 2006 (21
U.S.C. 1701 note), other Federal, State, and local law
enforcement and regulatory agencies, as appropriate, and
regulated sellers;
(4) an assessment of the effect of methamphetamine
precursor electronic logbook systems, including those that
receive funding under this Act, on curtailing the
manufacturing of methamphetamine in the United States and
reducing its associated harms;
(5) recommendations for further curtailing the domestic
manufacturing of methamphetamine and reducing its associated
harms; and
(6) such other information as the Comptroller General
determines appropriate.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this
Act--
(1) $3,000,000 for fiscal year 2008; and
(2) such sums as may be necessary for each fiscal year
thereafter.

Mr. GRASSLEY. Mr. President, I am pleased to join my colleague,
Senator Durbin, in introducing the Methamphetamine Production
Prevention Act of 2007. Together we offer this important legislation in
an effort to strengthen existing law by providing some necessary
changes and updates.
During my time in the Senate, I have come to the floor many times to
speak about methamphetamine and how it has destroyed individuals,
families, and

[[Page S5568]]

communities across the country. The Midwest was hit especially hard by
meth and the impacts of this drug were devastating to rural areas. As
opposed to other illegal drugs, meth is often times home cooked and
made in rural areas using ingredients that are largely available over
the counter. I am proud to say that Congress has taken action to attack
this problem head on by working to cut off access to these over the
counter products that form the basis of the drug.
Legislation such as the Combat Methamphetamine Act of 2005, Combat
Meth Act of 2005, which was included into the USA Patriot Act
Reauthorization in 2005 immediately impacted the production of home
cooked meth. Just a week ago when I joined with Senator Feinstein in
introducing two other separate bills, the Saving Kids from Dangerous
Drugs Act and the Drug Endangered Children Act, I noted that because of
the efforts of Congress in passing the Combat Meth Act, the number of
clandestine meth lab seizures has dropped across the country.
The Combat Meth Act was a tremendous step in the right direction
limiting access to psuedoephedrine, PSE, the main ingredient in
methamphetamine. The Combat Meth Act required this product to be
removed from store shelves and placed behind the counter at pharmacies
across the country. It also limited the number of products containing
PSE a person could buy at once. Further, it required a logbook system
be kept by pharmacies containing information regarding the individuals
that purchased products containing PSE.
Despite these successes, ever determined meth cooks and users have
learned how to game this system and continue to produce home grown
meth.
The preferred method of these meth cooks is to ``smurf'' between
different pharmacies for PSE products. Smurfing occurs when a person
visits a number of different locations buying the legal maximum amount
of PSE product at each site. The result is an amount of PSE sufficient
to produce home cooked meth. Smurfing occurs because the Combat Meth
Act only required that retailers keep a logbook which could be kept on
paper or electronically. It did not require interoperability or
electronic transmission of data. As a result, these unscrupulous
individuals have learned that if they provide false information or
visit multiple stores, tracking and arresting these individuals is more
difficult and time consuming for law enforcement. This is especially
true in metropolitan communities that share a common border, one such
example is the Quad Cities on the Iowa/Illinois border.

Recently, the Quad City Times highlighted the successes of the Combat
Meth Act in an article titled, The Next Step in Meth War. This article
detailed the efforts of a Scott County Deputy and his dedication in
fighting the meth war. One noteworthy portion of this article raised a
question about the lengths that were required for this deputy to do his
job in combating mom and pop meth labs. The article stated, ``Now we're
stuck with this image of a detective in each Iowa county sorting
through thousands of paper forms.'' It read further, ``He must call
county to county to find out if those purchasing the limit in Scott
County might be doing so elsewhere as well.'' This statement gets right
to the heart of our bill. We can't effectively combat meth if we don't
close the smurfing loophole.
To address this loophole, Senator Durbin and I have introduced the
Methamphetamine Production Prevention Act of 2007. This legislation
would revise the technical requirements of the Combat Meth Act to allow
for electronic logbook systems. The bill would also create a Federal
grant program for states looking to create or enhance existing
electronic logbook systems. Finally, this bill would prioritize these
Federal grants to states that design and implement the most effective
systems for sharing information via an electronic logbook system.
This legislation will take a big step forward in closing this
loophole that home grown meth cooks abuse. Additionally, it does so
without creating burdensome mandates upon states to meet requirements.
This bill facilitates innovation and growth by offering financial
assistance to states looking to create an electronic logbook system. By
avoiding mandates, this legislation seeks to promote innovation and
growth of electronic logbook systems.
This bill has broad support from the law enforcement community and
has been endorsed by the National Sheriffs' Association, the National
Narcotics Officers' Associations' Coalition, National Alliance of State
Drug Enforcement Agencies, the National Criminal Justice Association,
the National Troopers Coalition, the National District Attorneys
Association, the National Association of Counties, and the Community
Anti-Drug Coalitions of America among others.
As you can see, this legislation has a broad base of support. Working
together, state and local governments can use this legislation and
grant program to create interoperable networks that will reduce the
illegal smurfing of PSE products and lead us to the goal of ending
domestic production of meth. I urge my colleagues, join us in support
of this important legislation and pass the Methamphetamine Production
Prevention Act of 2007 and help wipe out domestic production of meth.
Mr. President, I ask unanimous consent that the aforementioned
article be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

[From the Quad-City Times]

The Next Step in Meth War

Scott County Deputy Robert Jackson figures he searched
through 12,000 cold medicine receipts to find three possible
meth-making offenders. Needles have better odds in haystacks.
His diligent work has nailed at least three alleged meth
makers who tried to skirt Iowa law restricting purchase of
pseudoephedrine, a key ingredient in making the recreational
poison.
When Iowa lawmakers began talking about toughening meth
laws in 2005, we were among those cautious about what that
would mean to the privacy and convenience of the 99.9 percent
of Iowans who bought cold medicine for their colds. But the
scourge that is meth convinced us the intrusion was minor and
the impact could be major. We joined those supporting the
bill, which became law.
Jackson's success in tracking down offenders affirms the
intent was correct. ``When I first started doing it, I'd find
12 offenders at a time,'' Jackson says of his paper-trail
detective work. Meth makers, indeed, were driving from store
to store to buy enough of the key ingredient to make enough
meth to sell.
Now he says the pickings are slimmer. And, he says, the
county's biggest pharmacies are talking among themselves,
inquiring about people who are trying to buck the limit of
7,500 milligrams of pseudoephedrine per month. That's
eliminated the high volume meth makers.
What's left, Jackson surmises, are personal meth-using
addicts who cook smaller amounts for themselves and a little
to deal. Jackson warns that meth use still rages, fueled by
drugs shipped from southern states. But the dangerous labs,
set up in hotels, cars, even public parks, have diminished
considerably, thanks to laws restricting access to
ingredients.
Now we're stuck with this image of a detective in each Iowa
county sorting through thousands of paper forms. Although the
record-keeping is required, Jackson must get a court order to
view the records. He must call county to county to find out
if those purchasing the limit in Scott County might be doing
so elsewhere as well.
We're wondering if a central registry of some sort might
help enforcement statewide, alerting authorities to
individuals making purchases in multiple counties. Compiling
the information electronically at the site of purchase
certainly would add costs and require careful planning to
assure privacy for the 99 percent of law-abiding
psuedoephedrine buyers. But it would trim significant
enforcement cost by eliminating the hours that officers like
Det. Jackson spend combing paper records. And it would detect
meth-makers skirting the law by spreading out their purchases
over several counties.

______

By Mr. CARDIN (for himself and Ms. Snowe):
S. 1282. A bill to amend the Internal Revenue Code of 1986 to provide
for the exclusion from gross income of certain wages of a certified
master teacher, and for other purposes; to the Committee on Finance.
Mr. CARDIN. Mr. President, as you know, teachers are the most
valuable resource when it comes to educating our Nation's children.
Under the No Child Left Behind Act, (NCLB), States are required to
recruit highly qualified teachers, yet schools in rural or high poverty
areas have trouble attracting and retaining these teachers. It is for
this reason that Senator Snowe and I have joined together to introduce
The Master Teacher Act of 2007.
We have an education problem in America. The schools that most need

[[Page S5569]]

experienced educators simply do not have the resources to attract and
keep the best teachers. We must give our schools the tools they need to
prepare our students to succeed.
As currently designated by NCLB, 100 percent of our Nation's schools
must meet Adequate Yearly Progress, AYP, in reading/language arts and
mathematics by the 2013/2014 school year. To date, almost 26 percent of
schools in the U.S. are not making the grade. According to a report
released by the National Education Association last year, fewer schools
met AYP in the 2004/2005 school year than the prior school year. In my
home State of Maryland, 311 out of 1,429 schools, or almost 22 percent,
did not make Adequate Yearly Progress, as defined by the No Child Left
Behind Act and the State targets. During the 2005-2006 school year, 79
schools, or about 6 percent of Maryland's elementary and secondary
schools had missed Adequate Yearly Progress toward State achievement
targets for 5 or more consecutive years. As a result they were placed
in restructuring and were subject to a variety of major school-wide
reform strategies. A large majority of these restructuring schools are
urban schools, and more than half are in the Baltimore City Public
School System.

According to research, teacher quality is the schooling factor with
the most profound effect on student achievement. Good teachers can make
up to a full year's difference in learning growth for students and
overwhelm the impact of any other educational investment, including
smaller class sizes.
Unfortunately, our educational system pairs the children most behind
with teachers who, on average, have less experience, less education,
and less skill than those who teach other children. Certainly, there
are exceptions, excellent and experienced teachers who have devoted
their lives to at-risk students. But the overall patterns are clear.
Despite evidence that teachers become more effective after several
years experience, students in high-poverty and high-minority schools
are assigned to novice teachers almost twice as often as children in
low-poverty schools. Classes in high-poverty and high-minority schools
are much more likely to be taught by teachers without a major or minor
in the subject they teach. Certainly, there are excellent first-year
teachers and ineffective veterans. Indeed, mastery of a subject matter
does not necessarily translate into effective teaching. But these
proxies for teacher effectiveness are backed by substantial bodies of
research. Studies of effective teachers reveal they are distributed
among our Nation's schools in a manner that actually enlarges
achievement gaps.
We will only close student achievement gaps when we improve teacher
quality and experience. We must make obtaining advanced training and
experience in teaching more accessible and teaching at-risk students
more desirable. In short, we must establish a class of ``master
teachers'' with extensive experience and training who are willing to
teach for an extended period of time in the schools that need them the
most.
Fortunately, research also shows even modest monetary incentives
lower teacher attrition, especially in high-risk school districts. Our
legislation will reward master teachers with a 25 percent Federal tax
exemption on their salary for four years if they agree to teach in a
school that is not meeting AYP. A master teacher is a teacher that has
at least 5 years of teaching experience in a public elementary or
secondary school, holds a master's degree, meets the definition of
highly qualified as defined by the NCLB, and has obtained advanced
certification in their state licensing system. Each State would have a
cap of 10 percent of public school teachers eligible to receive master
teacher tax treatment at a time. This program would go into effect in
2007 and end with the 2013/2014 school year, when NCLB requires that
100 percent of students perform at the proficient level.
Good teachers are essential to a successful education system; they
are the profession charged with educating our future work force. The
Master Teacher Act of 2007 will provide our children access to the best
possible teachers and our teachers much needed financial support.
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. 1282

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

SECTION 1. MASTER TEACHER EXCLUSION.

(a) Master Teacher Exclusion.--Part III of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 139A the following new section:

``SEC. 139B. CERTAIN WAGES OF CERTIFIED MASTER TEACHERS.

``(a) 25 Percent Exclusion.--Gross income does not include
25 percent of wages earned by a certified master teacher in
remuneration for employment at a qualified school in need of
improvement or a Head Start program assisted under the Head
Start Act (42 U.S.C. 9831 et seq.).
``(b) Certified Master Teacher.--For purposes of this
section--
``(1) In general.--The term `certified master teacher'
means any eligible teacher who is certified by a State as
being eligible for the exclusion from gross income provided
under subsection (a) with respect to wages earned during a 4-
year certification period. A teacher shall not be treated as
a certified master teacher except during the certification
period.
``(2) Recertification prohibited.--A teacher shall not be
certified as a certified master teacher for more than one
certification period.
``(3) State limitation on number of certified master
teachers.--A State may not certify any teacher if such
certification would result (at the time of such
certification) in more than 10 percent of the State's public
school teachers being certified master teachers.
``(c) Qualified School in Need of Improvement.--For
purposes of this section, the term `qualified school in need
of improvement' means, with respect to any certified master
teacher--
``(1) the school in need of improvement which first employs
such teacher during the certification period,
``(2) any school in need of improvement which subsequently
employs such teacher, but only if each school in need of
improvement which previously employed such teacher during the
certification period has ceased to be a school in need of
improvement, and
``(3) any school described in paragraph (1) or (2) which
ceases to be a school in need of improvement, but only if
such teacher was employed by such school (during such
teacher's certification period) at the time that such school
ceased to be a school in need of improvement.
``(d) School in Need of Improvement.--For purposes of this
section, the term `school in need of improvement' means a
public elementary or secondary school that--
``(1) is identified for school improvement, corrective
action, or restructuring under section 1116 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6316), and
``(2) is eligible for a schoolwide program under section
1114 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6314).
``(e) Eligible Teacher.--For purposes of this section, the
term `eligible teacher' means a teacher who--
``(1) has had at least 5 years of teaching experience in a
public elementary or secondary school,
``(2) is highly qualified, as defined in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801),
``(3) has a master's degree, and
``(4) has earned--
``(A) advanced certification in the teacher's State
licensing system, or
``(B) in the case of a teacher in a State that does not
offer advanced certification, certification from the National
Board for Professional Teaching Standards.
``(f) Certification Period.--For purposes of this section,
the term `certification period' means, with respect to any
certified master teacher, the 4-year period described in
subsection (b).
``(g) State Identification Required on Return.--With
respect to any certified master teacher, no exclusion shall
be allowed under subsection (a) for any taxable year unless
the certified master teacher includes the State in which the
teacher has been certified on the certified master teacher's
return of tax for such taxable year.
``(h) Termination.--This section shall not apply to any
taxable year beginning after December 31, 2013.''.
(b) Clerical Amendment.--The table of sections for part III
of subchapter B of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 139A the following new item:

``Sec. 139B. Certain wages of certified master teachers.''.

(c) Report to Congress.--The Secretary of the Treasury
shall transmit to the Congress for each of calendar years
2007 through 2013 an annual report stating, with respect to
each State, the number of individuals certified by such State
as certified master teachers who were allowed an exclusion
from gross income under section 139B of the Internal Revenue
Code of 1986 for a taxable year ending in such calendar year.

[[Page S5570]]

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

By Mr. PRYOR (for himself and Mr. Chambliss):
S. 1283. A bill to amend title 10, United States Code, to improve the
management of medical care, personnel actions, and quality of life
issues for members of the Armed Forces who are receiving medical care
in an outpatient status, and for other purposes; to the Committee on
Armed Services.
Mr. CHAMBLISS. Mr. President, I rise today to join my colleague and
my good friend, the Senator from Arkansas, Mr. Pryor, in introducing
legislation to ensure that the medical needs of wounded service men and
women are properly met and that the military bureaucracy does not
interfere with their recovery progress.
We have watched with embarrassment and compassion as the unacceptable
conditions of some of our military medical care facilities and housing
facilities were revealed and shown to the public. Clearly, we owe our
wounded military personnel the best treatment and care that can be
offered. This bill we are introducing today will help provide that.
Let me say, first of all, I have recently had the opportunity to
visit the Eisenhower Medical Center at Fort Gordon, GA, as well as the
medical facility at Fort Benning, GA, and I am reminded once again that
medical care given to our military men and women is truly second to
none. Are there exceptions? Sure. There are problems that arise from
time to time in the delivery of health care services to our military
men and women. Our purpose today is to try to make some of the
bureaucracy go away and to try to help make sure our medical suppliers
at all of our military facilities around the country and around the
world have the ability to deliver the very best medical care to our men
and women.
Our bill, S. 1283, the Wounded Warrior Assistance Act of 2007, will
improve the access to and quality of the health care our military
personnel receive by requiring that case managers for personnel in
medical holdover status handle no more than 17 cases and review each
case once a week.
Our bill will also create a system of patient advocates who can help
personnel navigate the cumbersome medical board and review process, as
well as add necessary funding to hire additional physicians.
Our bill increases training for health care professionals, medical
case managers, and patient advocates, with an emphasis on identifying
and treating difficult-to-diagnose and complex conditions, such as
post-traumatic stress disorder and traumatic brain injury.
Our bill establishes a toll-free hotline for patients and their
families to report problems with medical facilities or patient care and
creates an independent advocate to counsel servicemembers appearing
before medical evaluation boards.
Our bill creates a wounded warrior battalion, which will be an Army
pilot program to improve the transition from military to civilian life
for wounded combat veterans, as well as track and assist members of the
Armed Forces who are in outpatient status and in need of medical
treatment. More than 24,900 soldiers have been wounded in Iraq. We owe
it to them and their loved ones to have a responsive health care system
in place, in addition to the very best medical care available.
This legislation increases the resources available to our veterans in
order to allow them to focus on their recovery rather than redtape.
Heroes such as these need and deserve the best medical care and
attention we can offer them, and this bill will help provide that. They
do not need to be disadvantaged by an outdated, bureaucratic process
that adds more stress to their recovery process.
Our legislation is a step in the right direction to reform and
modernize the outpatient treatment process and will increase the morale
and welfare of our recovering servicemembers. They deserve our fullest
support, and we are committed to meeting their needs.
This bill mirrors H.R. 1538, which was passed by the House of
Representatives by a vote of 426 to 0 on March 28 of this year.
I thank Senator Pryor for the chance to work together with him on
this important legislation. He and I have had the opportunity to work
on any number of measures during our now going on 5 years in the
Senate. He is a true champion of not just our wounded but all of our
military personnel, and it has been a pleasure to work with him.
I commend this bill to all of my colleagues. I hope we can move to a
swift passage of the bill so we can present it to the President for his
signature. I urge my colleagues to support it.
I yield the floor.
The PRESIDING OFFICER. The Senator from Arkansas is recognized.
Mr. PRYOR. Mr. President, I thank the Senator from Georgia for his
kind remarks. Of course, everybody in the Senate knows what a friend to
the men and women in uniform Senator Chambliss has been since he has
been in the Senate. I am sure that also relates back to his House days.
He has really been a fabulous leader for our soldiers, and it is an
honor for me to ask him to join me in the Wounded Warrior Act.
Last Friday, I had the chance to go to Walter Reed and see three
Arkansans who were injured in various ways in Iraq. It is always a
sobering experience to go see our soldiers whom we are so proud of. We
are proud of the people who put on the uniform and put their lives in
jeopardy for the principles of this country. And we have other
facilities, not just Walter Reed. I know that is the one that gets the
most publicity nationally. Obviously, every State or region has a lot
of facilities. In Little Rock, there is the John McClellan Veterans
Hospital, which I visited not too long ago, and we have at least a
couple of other very good facilities in our State. They offer,
generally speaking, great care. We know that sometimes people fall
through the cracks, but we are very proud of our VA presence in the
State of Arkansas.
I must say that in my office in Little Rock--and the one here, for
that matter--we have people on staff who deal and work with soldiers
virtually on a daily basis--people who are in the VA system who, for
some reason, have run into some bureaucratic roadblock or a file gets
lost or a record gets lost or some box doesn't get checked or whatever
the case may be. We, more or less, like many colleagues here, have
full-time staff who do that on virtually a full-time basis. We are
honored to help the citizens of our State in any way we can, but we
also would like to say that we can help the VA system run better and
provide better health care with less bureaucracy.
Arkansas has had about 40 soldiers killed in Iraq. It has been a very
hard circumstance for our State to go through. It impacts every
community in the State and almost every family in the State. In
addition to those 40, which obviously are going to get more notice and
publicity and discussion, as they should, there are 369 Arkansans who
have been injured in Iraq. Those numbers track fairly well what the
national numbers are.
Across this Nation, there have been 11,215 soldiers, at last count,
who have been wounded in Iraq so severely that they have not been able
to return to duty. So it is critical that we have legislation such as
the Wounded Warrior Assistance Act. It will require case managers for
outpatients to handle no more than 17 cases. They will have to review
each case weekly. It creates a system of patient advocates within our
health care system. It increases training for health care
professionals, medical case managers, and patient advocates, with an
emphasis on identifying and treating post-traumatic stress disorder and
traumatic brain injuries. It establishes a toll-free hotline for
patients and families to report problems with medical facilities or
patient care. It creates an independent advocate to counsel
servicemembers appearing before medical evaluation boards. We think all
of those are healthy, positive, and constructive reforms. We think the
time has come for this to happen.
Senator Chambliss, a few moments ago, mentioned that the House passed
this legislation 426 to 0. They did that late last month. It is the
Senate's turn to weigh in and be on record for helping our wounded
warriors.
The Wounded Warrior Assistance Act allows them to focus on healing
and not be frustrated by redtape. It improves the access and quality of
care our veterans receive. It puts an advocate on their side. We know
that with any large organization, there will be

[[Page S5571]]

some bureaucracy and files will be lost and information gets misplaced.
We understand that. But, hopefully, what this will do is streamline the
process and make the system work a lot better for those who have been
willing to make the sacrifice for this country.
Mr. President, I think this is important legislation because it does
good things, but it is also symbolic legislation. It shows our members
of the military that we are willing--their Government and the people of
this country--to stand behind them during and after their Active-Duty
service.
I ask that my colleagues give this legislation their strong
consideration. The House passed it overwhelmingly. I hope we will have
broad-based, bipartisan support in this body. It is an honor for me to
offer it with my lead cosponsor, Senator Chambliss of Georgia.
I yield the floor.
______

By Mr. DORGAN (for himself, Ms. Mikulski, Mr. Durbin, Ms.
Stabenow, Mr. Rockefeller, Mr. Levin, Mrs. Feinstein, Mr.
Johnson, Mr. Harkin, Mr. Feingold, Mr. Leahy, Mr. Kohl, and Mr.
Kennedy):
S. 1284. A bill to amend the Internal Revenue Code of 1986 to provide
for the taxation of income of controlled foreign corporations
attributable to imported property; to the Committee on Finance.
Mr. DORGAN. Mr. President, today I am joined by Senators Mikulski,
Durbin, Stabenow, Rockefeller, Levin, Feinstein, Johnson, Harkin,
Feingold, Leahy, Kohl, and Kennedy in introducing legislation to close
an insidious loophole in the U.S. Tax Code that actually rewards U.S.
companies that move American manufacturing jobs overseas. Some may
think this is a belated April Fools' Day joke; regrettably, it is not.
Let me explain how this perverse tax break for these companies works.
When a U.S. company closes down a U.S. manufacturing plant, fires its
American workers, and moves those good-paying jobs to China or other
locations abroad, U.S. tax laws allow these firms to defer paying any
U.S. income taxes on the earnings from those now foreign-manufactured
products until those profits are returned, if ever, to this country.
This tax break is not available to American companies that make the
very same products here on American soil. So the U.S. company that
decides to stay at home suffers a competitive disadvantage, a
disadvantage that our tax laws have helped to create. Multinational
companies ought to pay the same taxes that domestic companies pay. At a
minimum, U.S. companies that keep their jobs here should not be put at
a competitive disadvantage by Federal tax policy.
The notion that granting large tax breaks to companies that move
their manufacturing operations offshore is good for this country is
utter nonsense. Among other things, those who support this half-cocked
fiscal policy claim that shutting down U.S. manufacturing operations
and moving them abroad will result in more U.S. jobs and increase our
exports.
However, this assertion is not supported by the facts. According to
the latest available data, the number of foreign manufacturing
affiliates has grown from 7,420 to 8,490, up some 14 percent since
1993. From 1993 though 2004, U.S. companies moved 1 million
manufacturing jobs offshore to their foreign affiliates.
Throughout this entire period, this perverse deferral break has been
in effect. Has it resulted in new U.S. manufacturing jobs? No. We have
lost some 3.2 million U.S. manufacturing jobs since 2000 alone. Has
this misguided tax subsidy resulted in higher exports from U.S.
companies to their foreign affiliates as the proponents of this tax
subsidy suggest? No. In fact, imports into the United States from the
foreign subsidiaries of U.S. companies more than doubled from $92
billion in 1993 to $203 billion in 2004. And the balance of trade with
foreign affiliates of U.S. firms plummeted to a $72 billion deficit in
2004 as compared to $3.4 billion in 1997.
I have been working to end this wrong-headed Federal tax break for
many years. Senator Mikulski and I have forced the Senate to vote to
repeal this tax subsidy several times. I have described stories on the
Senate floor about a number of American companies that have moved
production overseas, companies like Huffy bicycles and Radio Flyer
little red wagons to China; Samsonite, which went to Mexico and then
China; Levi's, which are now made all over the world, everywhere except
in the very country that invented them; Maytag, which now makes
appliances in Mexico and Korea; and Fruit of the Loom, which moved to
Mexico. And I would point out, once again, that this tax deferral break
given to companies like Radio Flyer or formerly to Huffy bicycles is
not available to American companies that make the very same products on
U.S. main streets.
But we have run into stiff opposition from many U.S. multinational
companies, their lobbyists, and some policymakers who claim our
proposal would impede the ability of U.S. firms to compete and grow in
the global economy. That is hogwash. This proposal does nothing to
hinder U.S. multinationals that produce abroad from competing with
foreign firms in foreign markets. The legislation we are introducing
today is carefully targeted; it ends the deferral tax break only where
U.S. multinationals produce goods abroad and ship those products back
to the U.S. market. In more technical language, this legislation would
end tax deferral for the ``imported property'' income of controlled
foreign corporations. The proposal also adds a new separate foreign tax
credit basket for imported property income. The separate foreign tax
credit basket is an anti-abuse provision that will stop U.S.
multinational companies from using the foreign tax credit to shelter
profits generated in a tax haven country by preventing the cross-
crediting of high foreign taxes on general income against the U.S. tax
on imported property income that is subject to low foreign taxes.
The tax experts with the Joint Committee on Taxation estimate that
this pernicious tax break will costs U.S. taxpayers some $15.5 billion
over the next decade. It is no wonder that the powerful lobby for the
largest U.S. multinational firms has fought to keep this tax loophole
fully intact. But as I have told my colleagues on the Senate floor a
number of times, I intend to offer this proposal again and again until
this tax subsidy is finally repealed.
I understand that some U.S. companies will still choose, with or
without this tax subsidy, to dislocate thousands of workers in America
in search of cheaper labor, lax regulation, and greater profits abroad
at whatever the cost. They will be free to do so. But at least U.S.
taxpayers will not be asked to provide billions of dollars in tax
subsidies for those who do.
I urge all of my colleagues in the Senate, Democrats and Republicans
alike, to take a fresh look at this issue and help us do what Congress
should have done many years ago; that is, repeal this ill-conceived tax
break once and for all.
______

By Mr. DURBIN (for himself, Mr. Specter, Mr. Feingold, and Mr.
Obama):
S. 1285. A bill to reform the financing of Senate elections, and for
other purposes; to the Committee on Rules and Administration.
Mr. DURBIN. 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. 1285

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.

``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.

[[Page S5572]]

``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.

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
``(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).

[[Page S5573]]

``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;
``(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

[[Page S5574]]

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.--
``(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).

[[Page S5575]]

``(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 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

[[Page S5576]]

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.''.

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

[[Page S5577]]

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 Majority Leader 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 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

[[Page S5578]]

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''.

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

[[Page S5579]]

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 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.--

[[Page S5580]]

(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 Mr. SMITH (for himself, Mr. Conrad, Mr. Kerry, Mr. Bingaman,
and Ms. Snowe):
S. 1288. A bill to amend the Internal Revenue Code of 1986 and the
Employee Retirement Income Security Act of 1974 to increase the
retirement security of women and small business owners, and for other
purposes; to the Committee on Finance.
Mr. SMITH. Mr. President, today I am introducing the Women's
Retirement Security Act of 2007. This measure has the potential to make
a significantly positive impact on the ability of Americans to save for
their retirement years. This is a truly bi-partisan bill and I am
pleased to be joined today in introducing this important legislation
with Senators Conrad, Kerry, Bingaman and Snowe.
Preparing for retirement and achieving financial security are
daunting tasks for all Americans; however, women face many unique
challenges. Women are more likely to work part-time or work in
industries where employers are less likely to offer retirement
benefits. And many women have significant gaps in their work histories
due to caring for children or elderly parents.
As a result, women receive substantially less income during
retirement than men. What makes this trend even more disturbing is the
fact that women generally live longer. So if anything, women should be
entering retirement with more income.
The Women's Retirement Security Act of 2007 works to narrow the
retirement income gap between men and women. For example, because women
are more likely than men to work part-time, the bill will require
employers to allow long-term, part-time employees to make elective
deferrals to their 40l(k) plans. In addition, the bill expands the
Saver's Credit, which is a tax credit for certain low and moderate-
income individuals, so that more Americans will benefit.
The bill also creates automatic IRAs. Over 75 million Americans work
for an employer that does not sponsor a retirement plan. This is almost
half of all working Americans. The Women's Retirement Security Act will
allow those employees not covered by a qualified retirement plan to
save for retirement through automatic payroll deposits to IRAs. Under
the bill, employers with more than 10 employees that don't sponsor a
retirement plan would be required to offer an option for their
employees to make regular payroll deposits to IRAs. This concept is
very similar to direct deposit of paychecks to employees' bank
accounts, which many employers already do.
Another key component provides incentives for lifetime payments.
Since women generally live longer than men, they must be particularly
concerned with protecting against the risk of exhausting their
retirement income. Life annuities help ensure that older Americans will
not outlive their retirement savings, adding stability and security in
retirement years. The Women's Retirement Security Act encourages
annuitization by allowing individuals to exclude from taxation a
portion of payments from qualified or nonqualified annuities that last
a lifetime.
I look forward to working with my colleagues to narrow the pension
gap between men and women by enacting the important reforms in this
legislation.
I ask unanimous consent that a copy of this legislation be printed in
the Record. I also ask unanimous consent that my statement be included
in the Record next to the bill.
Thank you.
Mr. KERRY. Mr. President, I am pleased to join my colleagues Senators
Smith, Conrad, Snowe, and Bingaman in introducing the Women's
Retirement Security Act of 2007. This legislation comes on the heels of
the passage of the Pension Protection Act of 2006, which makes
improvements to the defined benefit pension plan system.
The legislation that we are introducing today builds upon that
legislation and focuses on defined contribution plans. Our pension
system has shifted away from defined benefit plans to defined
contribution plans. We should make it easier for employers to offer
defined contribution plans and for individuals to participate in these
plans.
At a time when we have a negative savings rate that is the lowest
since the Great Depression, we should provide appropriate incentives to
help individuals save for retirement. In an effort to achieve this, the
Women's Retirement Security Act of 2007 focuses on increasing
retirement savings, the preservation of income, equity in divorce,
improving financial literacy, and encouraging small businesses to enter
and remain in the employer retirement plan system.
This legislation increases savings by allowing employees to
contribute a portion of their paycheck to an individual retirement
account (IRA) if their employer does not offer a pension plan.
Automatic IRAs will help the 71 million workers that do not have
employer-sponsored plans. It is a low-cost, sensible solution that
provides a stepping stone toward employer-sponsored retirement plans.
More workers are likely to contribute to an IRA if the contribution is
deducted from their payroll. Automatic IRAs will help combat the
inertia that is a factor in our low savings rate. The bill also
provides a tax credit to help small businesses with the cost of
implementation.
The Pension Protection Act of 2006 increase made the tax credit for
contributions to qualified pension plans permanent, commonly referred
to as the saver's credit, permanent. Our legislation builds upon this
provision by making this credit refundable and making it 50 percent of
the contribution for all eligible taxpayers. The annual contribution
eligible for this credit is $2,000. In 2005, five million households
benefited from this provision. These changes will help many more
benefit from this important credit. Making the credit refundable will
help those who are struggling and do not have enough income to save.
Women are often placed at a disadvantage in our retirement system
because they cycle in and out of the work force. The Women's Retirement
Security Act of 2007 addresses this issue by requiring employers that
offer defined contribution plans to cover part-time employees that meet
specific requirements.
Pension coverage needs to improve, particularly for small businesses.
In

[[Page S5581]]

2004, only 26 percent of workers at firms with fewer than 25 employees
participated in pension plans. Progress has been made on providing
coverage to small businesses. Currently, more than 19 million workers
are covered by small business retirement plans, but more than 36
million Americans work for firms with less than 25 employees.
The Women's Retirement Security Act of 2007 provides a start-up
credit for new small business retirement contributions. In addition, it
removes rules that discourage small employers from adopting deferral
only plans.
I look forward to continuing to work with my colleagues to help
improve the retirement of mothers, sisters, daughters, and wives. We
should work together to provide incentives that encourage participation
in retirement plans and remove barriers preventing employers from
offering them.
Thank you.
______

By Mr. CRAIG:
S. 1289. A bill to amend title 38, United States Code, to modify the
salary and terms of judges of the United States Court of Appeals for
Veterans Claims, to modify authorities for the recall of retired judges
of such court, and for other purposes; to the Committee on Veterans'
Affairs.
Mr. CRAIG. Mr. President, I have sought recognition today to comment
on a bill I am introducing to help ensure the long-term ability of the
United States Court of Appeals for Veterans Claims to promptly dispense
justice in all veterans cases.
In 1988, Congress created this court to hear appeals from decisions
of the Department of Veterans Affairs, most commonly on veterans'
claims for disability compensation based on injuries or diseases they
suffered during service. As was discussed at a hearing I called last
year while serving as chairman of the Committee on Veterans' Affairs,
the CAVC is facing some serious challenges, which may impede its
ability to consistently provide timely decisions to our Nation's
veterans.
In fact, between 2004 and 2006 the court experienced something akin
to a ``perfect storm.'' The last four of the original judges, who were
appointed when the court was created, all retired, taking 60 years of
experience with them; the court's incoming caseload experienced a
dramatic 67-percent increase; and the court was left with a single
judge who had at least 2 years of experience deciding these often
complex cases. As a consequence, the court received 30 percent more
cases than it decided during that time and the number of pending cases
doubled in less than 2 years. With over 6,000 cases still pending,
almost 4,000 more than a decade ago, and with the court continuing to
receive record levels of incoming cases, veterans seeking justice from
the court may feel the effects of this ``perfect storm'' for many years
to come, as the court struggles to eliminate the existing backlog and
to keep up with new appeals.
For the men and women who have served, sacrificed, and suffered for
our Nation, I believe we must take steps to ensure that they will
receive timely decisions on their appeals, not just today but for many
years to come. That is why I am introducing this bill to help the court
deal with its existing caseload and to help ensure that, in the long
term, the court will not face such a devastating combination of events.
As one means of helping with the current caseload, the bill would
modify the rules that govern the recall of retired judges. Under
current law, a retiring judge may opt to be recall eligible, which
means the judge may be involuntarily called back to work for up to 90
days per year when needed and may voluntarily serve up to 180 days per
year. For this court, like other Federal courts, the option of
receiving help from retired judges can be an extremely important
resource. In fact, last year, after the court began recalling retired
judges to help with its caseload, the court's productivity rose over 19
percent in 3 months.
In view of the obvious value of having experienced retired judges
continue to decide veterans' cases and the fact that they currently
receive the same salary as active judges regardless of how much, if
any, service they provide in a year, it would be a win-win situation
for veterans, the court, and taxpayers if a retired judge opted to
return to the bench more frequently or for longer periods than current
law permits. To allow for that possibility, the bill would eliminate
the 180-day cap and permit a retired judge to voluntarily serve in
recall status as many days during a year as he or she wishes.
Also, because the court may need an unprecedented level of service
from retired judges in the next several years to help deal with its
caseload, the bill would provide an incentive for the current
complement of recall-eligible judges to provide as much service as
practical during that time. Specifically, the bill would provide that,
once a recall-eligible judge has served an aggregate of 5 years of
recall service, the judge will no longer be subject to involuntarily
recall and will continue to receive the same salary, that of an active
judge.
To put that into perspective, if a retired judge were to be recalled
for 90 days each year, as current law permits, it would take 20 years
to provide the equivalent of 5 years of recall service. In addition to
allowing judges to accelerate their service into fewer years, at a time
when it may be most beneficial to veterans, this change may also
encourage retired judges to serve in recall status for longer periods
of time. This should help minimize concerns expressed by the Chief
Judge in recent years about how much retired judges would be able to
accomplish in the limited 90 day recall period. With these changes, the
court should have the judicial resources it needs to handle its
caseload in the near term.
In addition, this bill would take steps to ensure that the court, in
the long run, is not faced with a difficult transition like the one it
experienced in recent years. By way of background, the original judges,
except for one who died, all retired between 2000 and 2005, with four
of those retirements occurring within a single 12-month period. Given
the delays inherent in the appointment and confirmation process, this
left the CAVC without a full complement of active judges for much of
that 5-year period. As the Chief Judge testified in 2006, functioning
with less than seven judges ``led to a backlog'' of cases at the court.
Perhaps more significantly, this cluster of retirements meant that,
as of August 2005, the court had only one judge, the new Chief Judge,
who had at least 2 years of experience on the bench. In the words of
that Chief Judge, ``no other Federal court would be faced with the
transition that we were faced with as of August 2005. Where else in the
Federal judiciary system could I, the junior judge . . . suddenly
become the senior judge, and have all of the experience of the court
departing?'' The Chief Judge also opined that ``[t]his turnover on the
Court has had great significance, particularly in the short term, on
the Court's case management.''
The effects of this turnover may have been magnified by the fact that
this court deals with a very specialized area of law, which by all
accounts has become increasingly complex in recent years. In fact, the
Veterans of Foreign Wars of the United States recently described
veterans' law as ``a complex thicket of court decisions and statutory
requirements.''
To further complicate the situation, the court experienced a dramatic
rise in the number of incoming cases in recent years. In fact, in 2005
the court received 37 percent more cases than it had received in any
prior year and, then, in 2006 the court received an even higher level
of incoming cases. As I indicated earlier, the combined effect of these
factors led the court to be ``in the red'' for several years, taking in
almost 3,000 more cases than it decided.
Although some factors that have contributed to the court's challenges
cannot be controlled, it seems clear that multiple retirements of
experienced judges within a relatively short period of time can have a
profound impact on the court's ability to decide veterans' cases. It is
worth noting that Congress previously attempted to stagger the
retirement dates of the judges by temporarily expanding the size of the
court and by shortening the length of two judges' terms. Despite those
efforts, it is possible that 6 of the 7 judges now on the bench will
retire within a 4-year window, an even shorter period than the
disruptive turnover between 2000 and 2005.
That is why I believe we need to try a completely new approach to
help ensure that experienced judges will stay

[[Page S5582]]

on the bench for as long as practicable and will not retire in
clusters as their terms expire. To that end, this bill would eliminate
the term limits for any new judges appointed to the court and would
provide those judges with full pay-of-the-office only when serving as
an active judge or when providing service as a recalled retired judge.
The combined effect of those provisions should encourage judges to stay
on the bench longer before they retire and to regularly volunteer for
recall service after they retire.

Yes, this represents a significant departure from the traditional
model for article I courts. But as experience has shown, the current
model is not adequate to consistently provide veterans with timely
decisions on their claims and we simply cannot allow further
disruptions in service to our Nation's heroes each time the court turns
over. Once judges gain years of valuable experience in this complex,
specialized area of law, we should not force them, and their
experience, into retirement. Rather, we should take steps, as this bill
would do, to permit veterans and the court to receive the maximum
possible benefit from their years on the bench.
To avoid ``changing the rules'' on those judges who have already been
appointed and confirmed, these changes would be prospective, applying
only to judges appointed to the court on or after the date of enactment
of this bill. In the meantime, I hope the changes to the current recall
provisions that I mentioned earlier will help avoid a difficult
transition when the current sitting judges retire.
In addition to these changes to the term limits and recall rules, the
bill would require the Chief Judge, in conjunction with the court's
stakeholders, to set guidelines for when recall would be appropriate,
taking into account such factors as the number of active judges,
temporary or prolonged increases or decreases in caseload, and the
complexity of the caseload. It would also require the court to submit
annual performance reports to Congress including information on the
court's workload during the prior year, as well as an analysis of
whether the standards for recalling judges were met and what service,
if any, was performed by retired judges. Such guidelines should aid the
court, retired judges, and Congress in planning for periods when recall
will likely be used and when it will not.
More importantly, the number of recall-eligible judges and their
level of activity are important factors that must be considered in
determining whether the court has sufficient judicial resources. If
current caseload trends continue and the court, even fully utilizing
the services of recalled judges, is unable to provide veterans with the
level of service they deserve, the addition of judgeships may need to
be considered. These guidelines and reports will allow Congress to
closely monitor that situation to ensure that the court has the
necessary capacity.
Finally, the bill would recognize the critical and increasingly
demanding role of the Chief Judge by allowing the salary of the Chief
Judge to be increased by $7,000 per year, and the bill would direct the
General Services Administration to provide Congress with a report as to
the feasibility and desirability of converting the court's current
location into a dedicated Veterans Courthouse and Justice Center.
It is my sincere hope that the fundamental changes in this bill will
help ensure that the Court of Appeals for Veterans Claims is able to
consistently provide veterans with timely decisions, now and for many
years to come. I ask my colleagues to support this legislation.
I also 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. 1289

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Veterans' Justice Assurance
Act of 2007''.

SEC. 2. REPEAL OF TERM LIMITS FOR JUDGES OF THE UNITED STATES
COURT OF APPEALS FOR VETERANS CLAIMS.

(a) In General.--Section 7253(c) of title 38, United States
Code, is amended to read as follows:
``(c) Term of Office.--(1) Except as provided in paragraph
(2), judges of the Court shall hold office during good
behavior.
``(2) In the case of an individual who is serving a term of
office as a judge of the Court on the date of the enactment
of the Veterans' Justice Assurance Act of 2007, such term
shall be 15 years. A judge who is nominated by the President
for appointment to an additional term on the Court without a
break in service and whose term of office expires while that
nomination is pending before the Senate may continue in
office for up to 1 year while that nomination is pending.''.
(b) Conforming Amendment.--Section 7296(b)(2) of such title
is amended by striking ``A judge who'' and inserting ``A
judge who was appointed before the date of the enactment of
the Veterans' Justice Assurance Act of 2007 and who''.

SEC. 3. INCREASED SALARY FOR CHIEF JUDGE OF UNITED STATES
COURT OF APPEALS FOR VETERANS CLAIMS.

Section 7253(e) of title 38, United States Code, is
amended--
(1) by inserting ``(1)'' before ``Each judge''; and
(2) by adding at the end the following new paragraph:
``(2) The annual salary rate under paragraph (1) for a
judge shall be increased by $7,000 during any period that
such judge is serving as chief judge of the Court.''.

SEC. 4. PROVISIONS RELATING TO RECALL OF RETIRED JUDGES OF
THE UNITED STATES COURT OF APPEALS FOR VETERANS
CLAIMS.

(a) Elimination of Limit on Service of Retired Judges Who
Voluntarily Serve More Than 90 Days.--Section 7257(b)(2) of
title 38, United States Code, is amended by striking ``or for
more than a total of 180 days (or the equivalent) during any
calendar year''.
(b) New Judges Recalled After Retirement Receive Pay of
Current Judges Only During Periods of Recall.--
(1) In general.--Section 7296(c) of such title is amended
by striking paragraph (1) and inserting the following:
``(1)(A) Except as provided in subparagraph (B), in the
case of a judge who retires under subsection (b) of this
section and elects under subsection (d) of this section to
receive retired pay under this subsection, the retired pay of
the judge shall (except as provided in paragraph (2) of this
subsection and section 7257(d)(2) of this title) be the rate
of pay applicable to that judge at the time of retirement
(disregarding any increase in salary provided in accordance
with section 7253(e)(2) of this title).
``(B) A judge who was appointed before the date of the
enactment of the Veterans' Justice Assurance Act of 2007 and
who retires under subsection (b) of this section and elects
under subsection (d) of this section to receive retired pay
under this subsection shall (except as provided in paragraph
(2) of this subsection) receive retired pay as follows:
``(i) In the case of a judge who is a recall-eligible
retired judge under section 7257 of this title or who was a
recall-eligible retired judge under that section and was
removed from recall status under subsection (b)(4) of that
section by reason of disability, the retired pay of the judge
shall be the pay of a judge of the court.
``(ii) In the case of a judge who at the time of retirement
did not provide notice under section 7257 of this title of
availability for service in a recalled status, the retired
pay of the judge shall be the rate of pay applicable to that
judge at the time of retirement.
``(iii) In the case of a judge who was a recall-eligible
retired judge under section 7257 of this title and was
removed from recall status under subsection (b)(3) of that
section, the retired pay of the judge shall be the pay of the
judge at the time of the removal from recall status.''.
(2) Pay during period of recall.--Section 7257(d) of such
title is amended to read as follows:
``(d)(1) The pay of a recall-eligible retired judge to whom
section 7296(c)(1)(B) of this title applies is the pay
specified in that section.
``(2) A judge who is recalled under this section who
retired under chapter 83 or 84 of title 5 or to whom section
7296(c)(1)(A) of this title applies shall be paid, during the
period for which the judge serves in recall status, pay at
the rate of pay in effect under section 7253(e) of this title
for a judge performing active service, less the amount of the
judge's annuity under the applicable provisions of chapter 83
or 84 of title 5 or the judge's annuity under section
7296(c)(1)(A) of this title, whichever is applicable.''.
(3) Notice.--The last sentence of section 7257(a)(1) of
such title is amended to read as follows: ``Such a notice
provided by a retired judge to whom section 7296(c)(1)(B) of
this title applies is irrevocable.''.
(c) Limitation on Involuntary Recalls.--Section 7257(b)(3)
of such title is amended by adding at the end the following
new sentence: ``This paragraph shall not apply to--
``(A) a judge to whom section 7296(c)(1)(A) of this title
applies; or
``(B) a judge to whom section 7296(c)(1)(B) of this title
applies and who has, in the aggregate, served at least five
years (or the equivalent) of recalled service on the Court
under this section.''.
(d) Establishment of Caseload Thresholds for Determining
When to Recall Retired Judges.--Section 7257(b) of such title
is amended by adding at the end the following new paragraph:

[[Page S5583]]

``(5) For purposes of paragraph (1), the chief judge shall
establish guidelines for determining whether recall-eligible
retired judges should be recalled on either a voluntary or
involuntary basis, taking into account such factors as the
number of active judges, temporary or prolonged increases or
decreases in caseload, and the complexity of the caseload. In
establishing such guidelines, the chief judge shall, to the
extent practicable, consult with the following:
``(A) Organizations recognized by the Secretary for the
representation of veterans under section 5902 of this title.
``(B) The bar association of the Court.
``(C) The Secretary.
``(D) Such persons or entities the chief judge considers
appropriate.''.

SEC. 5. ADDITIONAL DISCRETION IN IMPOSITION OF PRACTICE AND
REGISTRATION FEES.

Section 7285(a) of title 38, United States Code, is
amended--
(1) in the first sentence, by inserting ``reasonable''
after ``impose a'';
(2) in the second sentence, by striking ``, except that
such amount may not exceed $30 per year''; and
(3) in the third sentence, by inserting ``reasonable''
after ``impose a''.

SEC. 6. ANNUAL REPORTS ON WORKLOAD OF UNITED STATES COURT OF
APPEALS FOR VETERANS CLAIMS.

(a) In General.--Subchapter III of chapter 72 of title 38,
United States Code, is amended by adding at the end the
following new section:

``Sec. 7288. Annual report

``(a) In General.--The chief judge of the Court shall
submit annually to the appropriate committees of Congress a
report summarizing the workload of the Court for the last
fiscal year that ended before the submission of such report.
Such report shall include, with respect to such fiscal year,
the following information:
``(1) The number of appeals filed.
``(2) The number of petitions filed.
``(3) The number of applications filed under section 2412
of title 28.
``(4) The number and type of dispositions.
``(5) The median time from filing to disposition.
``(6) The number of oral arguments.
``(7) The number and status of pending appeals and
petitions and of applications described in paragraph (3).
``(8) A summary of any service performed by recalled
retired judges during the fiscal year and an analysis of
whether any of the caseload guidelines established under
section 7257(b)(5) of this title were met during the fiscal
year.
``(b) Appropriate Committees of Congress Defined.--In this
section, the term `appropriate committees of Congress' means
the Committee on Veterans' Affairs of the Senate and the
Committee on Veterans' Affairs of the House of
Representatives.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 72 of such title is amended by inserting
after the item related to section 7287, the following new
item:

``7288. Annual report.''.

SEC. 7. REPORT ON EXPANSION OF FACILITIES FOR UNITED STATES
COURT OF APPEALS FOR VETERANS CLAIMS.

(a) Findings.--Congress finds the following:
(1) The United States Court of Appeals for Veterans Claims
is currently located in the District of Columbia in a
commercial office building that is also occupied by other
Federal tenants.
(2) In February 2006, the General Services Administration
provided Congress with a preliminary feasibility analysis of
a dedicated Veterans Courthouse and Justice Center that would
house the Court and other entities that work with the Court.
(3) In February 2007, the Court notified Congress that the
``most cost-effective alternative appears to be leasing
substantial additional space in the current location'', which
would ``require relocating other current government tenants''
from that building.
(4) The February 2006 feasibility report of the General
Services Administration does not include an analysis of
whether it would be feasible or desirable to locate a
Veterans Courthouse and Justice Center at the current
location of the Court.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the United States Court of Appeals for Veterans Claims
should be provided with appropriate office space to meet its
needs, as well as to provide the image, security, and stature
befitting a court that provides justice to the veterans of
the United States; and
(2) in providing that space, Congress should avoid undue
disruption, inconvenience, or cost to other Federal entities.
(c) Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Administrator of General
Services shall submit to the Committee on Veterans' Affairs
of the Senate and the Committee on Veterans' Affairs of the
House of Representatives a report on the feasibility of--
(A) leasing additional space for the United States Court of
Appeals for Veterans Claims within the building where the
Court was located on the date of the enactment of this Act;
and
(B) using the entirety of such building as a Veterans
Courthouse and Justice Center.
(2) Contents.--The report required by paragraph (1) shall
include a detailed analysis of the following:
(A) The impact that the matter analyzed in accordance with
paragraph (1) would have on Federal tenants of the building
used by the Court.
(B) Whether it would be feasible to relocate such Federal
tenants into office space that offers similar or preferable
cost, convenience, and usable square footage.
(C) If relocation of such Federal tenants is found to be
feasible and desirable, an analysis of what steps should
taken to convert the building into a Veterans Courthouse and
Justice Center and a time line for such conversion.
(3) Comment period.--The Administrator shall provide an
opportunity to such Federal tenants--
(A) before the completion of the report required by
paragraph (1), to comment on the subject of the report
required by such paragraph; and
(B) before the Administrator submits the report required by
paragraph (1) to the congressional committees specified in
such paragraph, to comment on a draft of such report.
______

By Mr. CRAIG:
S. 1290. A bill to amend title 38, United States Code, to provide
additional discretion to the Secretary of Veterans Affairs in
contracting with State approving agencies, and for other purposes; to
the Committee on Veterans' Affairs.
Mr. CRAIG. Mr. President, I have sought recognition today to comment
on a bill I am introducing to ensure that veterans and their families
have access to educational assistance benefits unimpeded by layers of
bureaucracy and inflexible legal requirements.
Each year, the Department of Veterans Affairs provides educational
assistance benefits to veterans, servicemembers, reservists, and their
families to pursue a wide array of educational opportunities, including
traditional college degrees, vocational training, apprenticeships, and
on-the-job training programs. VA contracts with entities called ``State
approving agencies,'' SAAs, to assess whether schools and training
programs are of sufficient quality for individuals to receive VA
education benefits while pursuing their programs. That SAA approval
process was originally instituted after World War II to help stem
abuses of veterans' education benefits, such as scam vocational and
business schools profiting from those education benefits and then not
providing veterans with an education of any value.
Today, unlike 60 years ago, schools and educational programs of all
types may be scrutinized by a number of different entities, including
the Department of Education, the Department of Labor, various national
and regional accrediting bodies, and state licensing agencies. In fact,
in 1995 the Government Accountability Office found that a substantial
portion of the approval activities performed by SAAs overlapped with
work done by others. Several years later, the Commission on
Servicemembers and Veterans Transition Assistance concluded that
veterans should be ``the primary judge of the appropriateness of
accredited courses to their plans for the future'' and that
``[a]pproval of institutions accredited by accrediting bodies
recognized by the Department of Education should suffice for veterans'
training approval.''
In the years since those findings, Congress has altered the
responsibilities of SAAs by requiring them to perform additional
functions, such as promoting the development of apprenticeships and on-
the-job training programs, conducting outreach services, and approving
licensing tests. However, the traditional approval functions performed
by SAAs, which are specifically required by statute, have not been
significantly modified.
Last year, in order to assess whether veterans face unnecessary or
inefficient barriers in accessing VA education benefits under the
current system, I asked GAO to evaluate the extent to which SAA
approval activities currently overlap with functions performed by the
Departments of Labor and Education and what value is added by the
services performed by SAAs. Let me give you a few examples of GAO's
recent findings:

Many education and training programs approved by SAAs have
also been approved by the Departments of Education or Labor
and VA and SAAs have taken few steps to coordinate approval
activities with those Departments.
To streamline approval processes, VA should collaborate
with other agencies but, according to VA, that may be
difficult because of the specific approval requirements in
law.

[[Page S5584]]

VA does not require SAAs to track the amount of resources
they spend on specific duties and functions, including those
that may be performed by other agencies, and thus does not
have all relevant information to make resource allocation
decisions or to determine whether it is spending federal
funds efficiently and effectively.
It is difficult to assess the effectiveness and progress of
SAAs because VA does not have outcome-oriented performance
measures in place to fully evaluate their performance.

Although I have no doubts about the dedication and sincerity of SAA
personnel in the field, I believe GAO's findings demonstrate that we do
not have a systematic or objective way to determine whether the current
mix of services provided by SAAs, which are mandated by statute, are
either necessary or beneficial to the veterans and their families who
participate in VA's education programs. That is why I believe we should
overhaul the entire statutory scheme regarding SAAs, as this bill would
do, to help eliminate redundant administrative procedures, increase
VA's flexibility in determining the nature and extent of services that
should be performed by SAAs, and improve accountability for any
activities they undertake.
Specifically, this bill would strike statutory provisions that
mandate what activities SAAs must perform, how those functions must be
carried out, and how VA must pay for them. Instead, VA would have
authority to contract with SAAs for services that it deems valuable and
to determine how those services should be performed, evaluated, and
compensated. The bill would also require VA to coordinate approval
activities performed by State approving agencies, the Department of
Labor, the Department of Education, and other entities to reduce
overlapping and unnecessary layers of bureaucracy. To ensure that VA,
Congress, and other stakeholders will be able to objectively assess the
effectiveness of any functions performed by SAAs, VA would be required
to establish outcome-oriented performance measures and SAAs would be
required to track and report information on the resources expended on
all activities they perform.
Finally, the bill includes a provision, similar to legislation that
the Senate passed last year, that would provide a $19 million spending
authorization for SAAs effective at the start of the upcoming fiscal
year and would allow, for the first time, SAA funding to be drawn from
both mandatory spending accounts and discretionary accounts. By way of
background, since 1988 VA payment for the services of SAAs has been
made only out of funds available for ``readjustment benefits'', a VA
account funded through mandatory appropriations, and has been subject
to annual funding caps.
For the current fiscal year, SAA funding from this entitlement
account is capped at $19 million, but under current law there will be a
$6 million reduction in authorized spending, to $13 million, for every
fiscal year thereafter. Although the provisions of this bill would
maintain a $19 million funding level in future years, it is important
to note that that level is a ceiling, not a floor. As with any private-
sector business or good-government business model, budgeting and
funding decisions should be linked to performance and VA should
contract only for those services that are necessary and valuable.
In sum, this bill would provide VA with the flexibility to streamline
approval processes, eliminate redundant bureaucratic procedures, focus
resources on services that will meet the current needs of education
program participants, and ensure that veterans and their families will
not confront layers of bureaucracy and inflexible legal requirements in
accessing their educational assistance benefits. I ask my colleagues to
support this measure.
I also 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. 1290

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

SECTION 1. MODIFICATION OF AUTHORITIES FOR STATE APPROVING
AGENCIES.

(a) Technical Amendment to Scope of Approval.--Section 3670
of title 38, United States Code, is amended--
(1) by striking subsection (b); and
(2) in subsection (a), by striking ``(a)''.
(b) Modification of Provisions Relating to Approval of
Courses.--
(1) Modification of requirement that standards for programs
of apprenticeship be approved under the national
apprenticeship act.--Subsection (c)(1)(A) of section 3672 of
such title is amended by striking ``pursuant to section 2 of
the Act of August 16, 1937 (popularly known as the `National
Apprenticeship Act') (29 U.S.C. 50a),''.
(2) Modification of requirement to promote development of
apprenticeship programs.--Subsection (d) of such section is
amended--
(A) in paragraph (1)--
(i) by striking ``and State approving agencies''; and
(ii) by striking ``shall utilize the services of'' and
inserting ``may utilize the services of State approving
agencies and''; and
(B) in paragraph (2), by striking ``shall'' and inserting
``may''.
(3) Modification of requirements relating to approval of
program of education exclusively by correspondence.--
Subsection (e) of such section is amended by striking ``only
if'' and all that follows through the period and inserting
``under such criteria as the Secretary prescribes pursuant to
section 3675.''.
(c) Restatement of Requirement for Coordination of Approval
Activities.--
(1) In general.--Subsection (a) of section 3673 of such
title is amended to read as follows:
``(a) In General.--The Secretary shall take appropriate
measures to ensure the coordination of approval activities
performed by State approving agencies under this chapter and
chapters 34 and 35 of this title and approval activities
performed by the Department of Labor, the Department of
Education, and other entities to reduce overlap and improve
efficiency with respect to the activities.''.
(2) Conforming amendments.--Such section is further
amended--
(A) in subsection (b), by inserting ``Furnishing
Materials.--'' before ``The Secretary''; and
(B) in the heading by striking ``Cooperation'' and
inserting ``Coordination of approval activities''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 36 of such title is amended by striking
the item relating to section 3673 and inserting the
following:

``3673. Coordination of approval activities.''.

(d) Additional Discretion for the Secretary of Veterans
Affairs for Reimbursing State Approving Agencies for
Expenses.--Section 3674 of such title is amended to read as
follows:

``Sec. 3674. Reimbursement of expenses

``(a) In General.--(1) Subject to subsections (b) and (c),
the Secretary is authorized to enter into contracts or
agreements with State and local agencies to pay such State
and local agencies for reasonable and necessary expenses of
salary and travel incurred by employees of such agencies and
an allowance for administrative expenses in accordance with
such criteria as the Secretary determines appropriate for
activities performed pursuant to this chapter for purposes of
chapters 30 through 35 of this title and chapters 1606 and
1607 of title 10.
``(2) Each such contract or agreement shall be conditioned
upon such terms and conditions as the Secretary determines
appropriate for services performed pursuant to this chapter,
including the condition that the State approving agency shall
collect and report annually to the Secretary, the Committee
on Veterans' Affairs of the Senate, and the Committee on
Veterans' Affairs of the House of Representatives information
on--
``(A) the amount of resources expended on such services
performed pursuant to that contract; and
``(B) the qualification and performance standards for State
approving agency personnel responsible for such services.
``(b) Source of Payments.--Subject to subsection (c), the
Secretary shall make payments authorized under subsection (a)
to State and local agencies first out of amounts available
for the payment of readjustment benefits and then from other
amounts made available to make the payments.
``(c) Limitation on Authorization of Appropriations.--(1)
The total amount authorized and available under this section
for any fiscal year may not exceed $19,000,000, except that
the total amount made available for purposes of this section
from amounts available for the payment of readjustment
benefits may not exceed the following:
``(A) $19,000,000 for fiscal year 2007.
``(B) $13,000,000 for fiscal year 2008, and each subsequent
fiscal year.
``(2) For any fiscal year in which the total amount that
would be made available under this section would exceed the
amount applicable to that fiscal year under paragraph (1)
except for the provisions of this subsection, the Secretary
shall provide that each agency shall receive the same
percentage of the amount applicable to that fiscal year under
paragraph (1) as the agency would have received of the total
amount that would have been made available without the
limitation of this subsection.''.
(e) Evaluations of Agency Performance; Qualifications and
Performance of Agency Personnel.--Section 3674A of such title
is amended--
(1) by striking subsection (b);
(2) in subsection (a), by striking ``(a)'';
(3) by redesignating paragraphs (1), (2), (3), and (4) as
paragraphs (2), (3), (4), and (5), respectively;
(4) by inserting before paragraph (2), as redesignated by
paragraph (3) of this subsection, the following new paragraph
(1):
``(1) establish performance measures--
``(A) to assess the effectiveness of all services for which
a State approving agency is

[[Page S5585]]

reimbursed pursuant to section 3674 of this title that are
based on the outcomes of the services; and
``(B) to assess the effectiveness of the State approving
agency in coordinating with other entities, including the
Department of Labor and the Department of Education, to
reduce overlap and improve efficiency in approval
activities;'';
(5) by amending paragraph (2), as redesignated by paragraph
(3) of this subsection, to read as follows:
``(2) conduct an annual evaluation of each State approving
agency on the basis of the performance measures established
under paragraph (1);''; and
(6) in paragraph (3), as redesignated by paragraph (3) of
this subsection, by striking ``under paragraph (1)'' and
inserting ``under paragraph (2)''.
(f) Approval of Courses.--
(1) In general.--Section 3675 of such title is amended to
read as follows:

``Sec. 3675. Approval of courses

``(a) Standards.--The Secretary shall establish standards
of approval for accredited and nonaccredited courses offered
by an educational institution that the Secretary determines
are necessary to carry out the provisions of this chapter.
Such standards shall be based on the following, as
appropriate:
``(1) Student achievement.
``(2) Curricula, program objectives, and faculty.
``(3) Facilities, equipment, and supplies.
``(4) Institutional objectives, capacity, and
administration.
``(5) Student support services.
``(6) Recruiting and admissions practices.
``(7) Record of student complaints.
``(8) Process related requirements, such as application
requirements.
``(9) Such other criteria as the Secretary considers
appropriate.
``(b) Approval.--A State approving agency may approve
courses offered by an educational institution when the
standards established under subsection (a) have been
satisfied by such educational institution. In performing such
approval function, the State approving agency may, to the
extent permitted by the Secretary, rely upon determinations
made by other entities, including the Department of Labor and
the Department of Education.
``(c) Disapproval.--Approval granted under this section may
be revoked by the Secretary or a State approving agency under
conditions established by the Secretary.''.
(2) Conforming amendment.--Section 3452(h) of such title is
amended by striking ``an entrepreneurship course (as defined
in section 3675(c)(2) of this title)'' and inserting ``a non-
degree, non-credit course of business education that enables
or assists a person to start or enhance a small business
concern (as defined pursuant to section 3(a) of the Small
Business Act (15 U.S.C. 362(a)))''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 36 of such title is amended by striking
the item related to section 3675 and inserting the following
new item:

``3675. Approval of courses.''.

(g) Modification of Provisions Relating to Approval of
Nonaccredited Courses.--
(1) In general.--Section 3676 of such title is repealed.
(2) Conforming amendments.--(A) Section 3677 of such title
is redesignated as section 3676.
(B) Section 3672(d)(1) of such title is amended by striking
``sections 3677'' and inserting ``sections 3676''.
(C) Section 3687(a)(2) of such title is amended by striking
``section 3677'' and inserting ``section 3676''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 36 of such title is amended by striking
the item relating to section 3676 and inserting the
following:

``3676. Approval of training on the job.''.

(h) Notice of Approval.--
(1) In general.--Section 3678 of such title is amended to
read as follows:

``SEC. 3677. NOTICE OF DETERMINATIONS BY STATE APPROVING
AGENCIES.

``A State approving agency shall provide to the Secretary,
an educational institution, or such other entities as the
Secretary considers appropriate such notification as the
Secretary may consider necessary regarding determinations
made by the State approving agency pursuant to section 3675
of this title.''.
(2) Conforming amendment.--Section 3689(d) of such title is
amended by striking ``3678'' and inserting ``3677''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 36 of such title is amended by striking
the items relating to section 3677 and 3678 and inserting the
following:

``3677. Notice of determinations by State approving agencies.''.

(i) Modification of Provisions Relating to Disapproval of
Courses.--
(1) In general.--Section 3679 of such title is repealed.
(2) Conforming amendment.--Section 3689(d) of such title is
amended by striking ``3679,''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 36 of such title is amended by striking
the item relating to section 3679.
(j) Effective Date.--The amendments made by this section
shall take effect on the date that is one year after the date
of the enactment of this section.
______

By Mr. CRAIG:
S. 1293. A bill to amend titles 10 and 38, United States Code, to
improve educational assistance for members and former members of the
Armed Forces, and for other purposes; to the Committee on Veterans'
Affairs.
Mr. CRAIG. Mr. President, I have sought recognition today to comment
on a bill I am introducing to enhance educational assistance benefits
provided to active duty servicemembers, veterans, members of the Guard
and Reserve, and their survivors and dependents by the Department of
Veterans Affairs, VA, and the Department of Defense.
In recent years, many veterans' organizations, members of Congress,
and others have highlighted the need to modernize these education
programs to support emerging and alternative education opportunities
and to recognize that the role of Guard and Reserve members has been
transformed since September 11, 2001. This bill would take significant
steps in that direction by providing greater flexibility in the use of
these education benefits, revising eligibility criteria to reflect
current mobilization strategies for Guard and Reserve units, and
enhancing the education program for our ``citizen soldiers'' who have
been called up to serve in the war on terror.
First, this bill would provide veterans, Guard and Reserve members,
and their spouses and dependents with additional flexibility in using
existing education benefits. Traditionally, educational assistance
benefits have been paid in equal monthly allotments throughout a
semester or term. For veterans, the maximum basic rate is now $1,075
per month, which means a veteran may receive at least $9,675 over the
course of an average school year and almost $39,000 during a 4-year
college program.
This system works well for veterans attending a traditional four-year
college. But, as the Commission on Servicemembers and Veterans
Transition Assistance reported in 1999, the existing payment structure
``constrains veterans and servicemembers desiring to enroll in short-
term career-focused technical courses,'' a problem that is ``especially
acute if the cost of the course dramatically exceeds the benefits
payable for the few months' duration of the course.''
That is why in 2001 I cosponsored legislation to establish an
``accelerated'' payment option for veterans' education benefits. With
that program now in place, a veteran may receive an up-front, lump-sum
payment of up to 60 percent of the cost of certain high-tech, high-cost
programs. Since that option was made available, many veterans have used
that additional flexibility to train for jobs in high technology
sectors of the economy, such as the computer and telecommunications
industry, the aerospace industry, and the electronics industry.
Then last year, as chairman of the Committee on Veterans' Affairs, I
supported legislation that would have expanded this option to allow
accelerated payments for short-term, high-cost education programs
leading to jobs in any high growth sectors of the economy. Although VA
also supported that legislation, VA testified that ``implementation
would be challenging'' and that ``[i]t would be cleaner and more direct
if the bill simply stated that all high-cost short-term courses were
eligible for accelerated payments.''
Having taken those concerns into account, this bill would allow
veterans to receive accelerated payments for any short-term, high-cost
education programs, and it would authorize VA to spend up to $3 million
for those payments in each fiscal year from 2009 to 2012. Not only
would this provide veterans with the flexibility to pursue
nontraditional or technical educational opportunities, but it may help
veterans quickly obtain job skills that currently are in high demand.
For example, the trucking industry is now experiencing a critical
shortage of trained drivers, but the GI Bill, as currently structured,
may pay only a fraction of the cost for a veteran to take the 6 to 8
week training course, about $2,000 of a total $6,000 bill. With the
availability of accelerated payments for those and other short-term,
high-cost training programs, veterans may be able to obtain the skills
needed

[[Page S5586]]

to thrive in sectors of the economy that, today, are growing rapidly
and can provide them with lucrative, rewarding career opportunities.
In addition, the bill would, for the first time, provide Guard and
Reserve members with the option of receiving accelerated payment of
their education benefits. They, too, would be eligible to receive up-
front, lump-sum payments of up to 60 percent of the cost of any short-
term, high-cost education program. For fiscal years 2009 to 2012, the
bill would authorize $2 million per year for the Montgomery GI bill,
Selected Reserve program and $1 million per year for the smaller
Reserve Educational Assistance Program to make these payments.
To ensure that the families of veterans also have flexibility in the
use of their education benefits, the bill would extend the same
accelerated payment option to participants in the Survivors' and
Dependents' Educational Assistance program. It would authorize VA to
spend up to $1 million per year for those payments in fiscal years 2009
to 2012.
The second principal goal of the bill is to update and enhance the
education program for members of the Guard and Reserve who are called
to active duty. In 2004, recognizing the increased sacrifices being
made by our ``citizen soldiers'' who are fighting in the War on Terror,
Congress created the Reserve Educational Assistance Program for Guard
and Reserve members who are activated for at least 90 days after
September 11, 2001. This program was a significant step in the right
direction, providing a maximum benefit of $860 per month for 36 months,
a total possible benefit of over $30,000.
However, the maximum monthly benefit requires a deployment of 2
continuous years or more of active duty, and the Secretary of Defense
has recently announced that ``from this point forward, members of the
Reserves will be involuntarily mobilized for a maximum of one year at
any one time, in contrast to the current practice of sixteen to twenty-
four months.'' To bring those eligibility criteria in line with current
practice, this bill would allow members of the Guard or Reserve to
receive the maximum benefits if they are deployed for an aggregate
period of 3 or more years.
Finally, the bill would provide these ``citizen soldiers'' with
access to a valuable option now available only under the Montgomery GI
bill program for active duty servicemembers. Specifically, it would
allow members of the Guard or Reserve to contribute up to $600 in order
to receive an additional $150 per month in education benefits, which
amounts to an additional $5,400 in benefits over the course of 36
months. Under this bill, Guard and Reserve members would, for the first
time, have access to this valuable opportunity.
With these modifications, we can take significant strides towards
ensuring that current education programs are up-to-date and flexible
and that they provide members of the Guard and Reserve with benefits
commensurate with the level of service they are now performing on
behalf of the entire Nation. I urge my colleagues to support this
legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 1293

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Veterans' Education and
Vocational Benefits Improvement Act of 2007''.

SEC. 2. TEMPORARY EXPANSION OF COURSES FOR WHICH ACCELERATED
PAYMENT OF EDUCATIONAL ASSISTANCE MAY BE MADE.

(a) Accelerated Payment Under Montgomery GI Bill for
Certain Short-Term Programs.--
(1) In general.--Section 3014A of title 38, United States
Code, is amended--
(A) in subsection (b)--
(i) by striking ``who is--'' and inserting ``who--'';
(ii) by striking paragraph (1) and inserting the following
new paragraph (1):
``(1)(A) is enrolled in an approved program of education
that leads to employment in a high technology occupation in a
high technology industry (as determined pursuant to
regulations prescribed by the Secretary); or
``(B) during the period beginning on October 1, 2008, and
ending on September 30, 2012, first enrolls in any other
approved program of education not exceeding two years in
duration and not leading to an associate, bachelors, masters,
or other degree, subject to subsection (h); and''; and
(iii) in paragraph (2), by inserting ``is'' before
``charged''; and
(B) by adding at the end the following new subsection:
``(h) The aggregate amount of basic educational assistance
payable under this section in any fiscal year for enrollments
covered by subsection (b)(1)(B) may not exceed $3,000,000.''.
(2) Conforming amendment.--Such section is further amended
in the heading by striking ``leading to employment in high
technology occupation in high technology industry''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 30 of such title is amended in the item
relating to section 3014A by striking ``leading to employment
in high technology occupation in high technology industry''.
(b) Accelerated Payment of Survivors' and Dependents'
Educational Assistance.--
(1) In general.--Subchapter IV of chapter 35 of such title
is amended by inserting after section 3532 the following new
section:

``Sec. 3532A. Accelerated payment of educational assistance
allowance

``(a) The educational assistance allowance payable under
section 3531 of this title with respect to an eligible person
described in subsection (b) may, upon the election of such
eligible person, be paid on an accelerated basis in
accordance with this section.
``(b) An eligible person described in this subsection is an
individual who--
``(1) during the period beginning on October 1, 2008, and
ending on September 30, 2012, first enrolls in an approved
program of education not exceeding two years in duration and
not leading to an associate, bachelors, masters, or other
degree, subject to subsection (h); and
``(2) is charged tuition and fees for the program of
education that, when divided by the number of months (and
fractions thereof) in the enrollment period, exceeds the
amount equal to 200 percent of the monthly rate of
educational assistance allowance otherwise payable with
respect to the individual under section 3531 of this title.
``(c)(1) The amount of the accelerated payment of
educational assistance payable with respect to an eligible
person making an election under subsection (a) for a program
of education shall be the lesser of--
``(A) the amount equal to 60 percent of the established
charges for the program of education; or
``(B) the aggregate amount of educational assistance
allowance to which the individual remains entitled under this
chapter at the time of the payment.
``(2) In this subsection, the term `established charges',
in the case of a program of education, means the actual
charges (as determined pursuant to regulations prescribed by
the Secretary) for tuition and fees which similarly
circumstanced individuals who are not eligible for benefits
under this chapter and who are enrolled in the program of
education would be required to pay. Established charges shall
be determined on the following basis:
``(A) In the case of an individual enrolled in a program of
education offered on a term, quarter, or semester basis, the
tuition and fees charged the individual for the term,
quarter, or semester.
``(B) In the case of an individual enrolled in a program of
education not offered on a term, quarter, or semester basis,
the tuition and fees charged the individual for the entire
program of education.
``(3) The educational institution providing the program of
education for which an accelerated payment of educational
assistance allowance is elected by an eligible person under
subsection (a) shall certify to the Secretary the amount of
the established charges for the program of education.
``(d) An accelerated payment of educational assistance
allowance made with respect to an eligible person under this
section for a program of education shall be made not later
than the last day of the month immediately following the
month in which the Secretary receives a certification from
the educational institution regarding--
``(1) the person's enrollment in and pursuit of the program
of education; and
``(2) the amount of the established charges for the program
of education.
``(e)(1) Except as provided in paragraph (2), for each
accelerated payment of educational assistance allowance made
with respect to an eligible person under this section, the
person's entitlement to educational assistance under this
chapter shall be charged the number of months (and any
fraction thereof) determined by dividing the amount of the
accelerated payment by the full-time monthly rate of
educational assistance allowance otherwise payable with
respect to the person under section 3531 of this title as of
the beginning date of the enrollment period for the program
of education for which the accelerated payment is made.
``(2) If the monthly rate of educational assistance
allowance otherwise payable with respect to an eligible
person under section 3531 of this title increases during the
enrollment period of a program of education for which an
accelerated payment of educational assistance allowance is
made under this section, the charge to the person's
entitlement

[[Page S5587]]

to educational assistance under this chapter shall be
determined by prorating the entitlement chargeable, in the
manner provided for under paragraph (1), for the periods
covered by the initial rate and increased rate, respectively,
in accordance with regulations prescribed by the Secretary.
``(f) The Secretary may not make an accelerated payment of
educational assistance allowance under this section for a
program of education with respect to an eligible person who
has received an advance payment under section 3680(d) of this
title for the same enrollment period.
``(g) The Secretary shall prescribe regulations to carry
out this section. The regulations shall include requirements,
conditions, and methods for the request, issuance, delivery,
certification of receipt and use, and recovery of overpayment
of an accelerated payment of educational assistance allowance
under this section. The regulations may include such elements
of the regulations prescribed under section 3014A of this
title as the Secretary considers appropriate for purposes of
this section.
``(h) The aggregate amount of educational assistance
payable under this section in any fiscal year for enrollments
covered by subsection (b)(1) may not exceed $1,000,000.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 35 of such title is amended by inserting
after the item relating to section 3532 the following new
item:

``3532A. Accelerated payment of educational assistance allowance.''.
(c) Accelerated Payment of Educational Assistance for
Members of the Selected Reserve.--
(1) In general.--Chapter 1606 of title 10, United States
Code, is amended by inserting after section 16131 the
following new section:

``Sec. 16131A. Accelerated payment of educational assistance

``(a) The educational assistance allowance payable under
section 16131 of this title with respect to an eligible
person described in subsection (b) may, upon the election of
such eligible person, be paid on an accelerated basis in
accordance with this section.
``(b) An eligible person described in this subsection is a
person entitled to educational assistance under this chapter
who--
``(1) during the period beginning on October 1, 2008, and
ending on September 30, 2012, first enrolls in an approved
program of education not exceeding two years in duration and
not leading to an associate, bachelors, masters, or other
degree, subject to subsection (g); and
``(2) is charged tuition and fees for the program of
education that, when divided by the number of months (and
fractions thereof) in the enrollment period, exceeds the
amount equal to 200 percent of the monthly rate of
educational assistance allowance otherwise payable with
respect to the person under section 16131 of this title.
``(c)(1) The amount of the accelerated payment of
educational assistance payable with respect to an eligible
person making an election under subsection (a) for a program
of education shall be the lesser of--
``(A) the amount equal to 60 percent of the established
charges for the program of education; or
``(B) the aggregate amount of educational assistance
allowance to which the person remains entitled under this
chapter at the time of the payment.
``(2) In this subsection, the term `established charges',
in the case of a program of education, means the actual
charges (as determined pursuant to regulations prescribed by
the Secretary of Veterans Affairs) for tuition and fees which
similarly circumstanced individuals who are not eligible for
benefits under this chapter and who are enrolled in the
program of education would be required to pay. Established
charges shall be determined on the following basis:
``(A) In the case of a person enrolled in a program of
education offered on a term, quarter, or semester basis, the
tuition and fees charged the individual for the term,
quarter, or semester.
``(B) In the case of a person enrolled in a program of
education not offered on a term, quarter, or semester basis,
the tuition and fees charged the individual for the entire
program of education.
``(3) The educational institution providing the program of
education for which an accelerated payment of educational
assistance allowance is elected by an eligible person under
subsection (a) shall certify to the Secretary of Veterans
Affairs the amount of the established charges for the program
of education.
``(d) An accelerated payment of educational assistance
allowance made with respect to an eligible person under this
section for a program of education shall be made not later
than the last day of the month immediately following the
month in which the Secretary of Veterans Affairs receives a
certification from the educational institution regarding--
``(1) the person's enrollment in and pursuit of the program
of education; and
``(2) the amount of the established charges for the program
of education.
``(e)(1) Except as provided in paragraph (2), for each
accelerated payment of educational assistance allowance made
with respect to an eligible person under this section, the
person's entitlement to educational assistance under this
chapter shall be charged the number of months (and any
fraction thereof) determined by dividing the amount of the
accelerated payment by the full-time monthly rate of
educational assistance allowance otherwise payable with
respect to the person under section 16131 of this title as of
the beginning date of the enrollment period for the program
of education for which the accelerated payment is made.
``(2) If the monthly rate of educational assistance
allowance otherwise payable with respect to an eligible
person under section 16131 of this title increases during the
enrollment period of a program of education for which an
accelerated payment of educational assistance allowance is
made under this section, the charge to the person's
entitlement to educational assistance under this chapter
shall be determined by prorating the entitlement chargeable,
in the manner provided for under paragraph (1), for the
periods covered by the initial rate and increased rate,
respectively, in accordance with regulations prescribed by
the Secretary of Veterans Affairs.
``(f) The Secretary of Veterans Affairs shall prescribe
regulations to carry out this section. The regulations shall
include requirements, conditions, and methods for the
request, issuance, delivery, certification of receipt and
use, and recovery of overpayment of an accelerated payment of
educational assistance allowance under this section. The
regulations may include such elements of the regulations
prescribed under section 3014A of title 38 as the Secretary
of Veterans Affairs considers appropriate for purposes of
this section.
``(g) The aggregate amount of educational assistance
payable under this section in any fiscal year for enrollments
covered by subsection (b)(1) may not exceed $2,000,000.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 1606 of such title is amended by
inserting after the item relating to section 16131 the
following new item:

``16131A. Accelerated payment of educational assistance.''.
(d) Accelerated Payment of Educational Assistance for
Reserve Component Members Supporting Contingency Operations
and Other Operations.--
(1) In general.--Chapter 1607 of title 10, United States
Code, is amended by inserting after section 16162 the
following new section:

``Sec. 16162A. Accelerated payment of educational assistance

``(a) The educational assistance allowance payable under
section 16162 of this title with respect to an eligible
member described in subsection (b) may, upon the election of
such eligible member, be paid on an accelerated basis in
accordance with this section.
``(b) An eligible member described in this subsection is a
member of a reserve component entitled to educational
assistance under this chapter who--
``(1) during the period beginning on October 1, 2008, and
ending on September 30, 2012, first enrolls in an approved
program of education not exceeding two years in duration and
not leading to an associate, bachelors, masters, or other
degree, subject to subsection (g); and
``(2) is charged tuition and fees for the program of
education that, when divided by the number of months (and
fractions thereof) in the enrollment period, exceeds the
amount equal to 200 percent of the monthly rate of
educational assistance allowance otherwise payable with
respect to the member under section 16162 of this title.
``(c)(1) The amount of the accelerated payment of
educational assistance payable with respect to an eligible
member making an election under subsection (a) for a program
of education shall be the lesser of--
``(A) the amount equal to 60 percent of the established
charges for the program of education; or
``(B) the aggregate amount of educational assistance
allowance to which the member remains entitled under this
chapter at the time of the payment.
``(2) In this subsection, the term `established charges',
in the case of a program of education, means the actual
charges (as determined pursuant to regulations prescribed by
the Secretary of Veterans Affairs) for tuition and fees which
similarly circumstanced individuals who are not eligible for
benefits under this chapter and who are enrolled in the
program of education would be required to pay. Established
charges shall be determined on the following basis:
``(A) In the case of a member enrolled in a program of
education offered on a term, quarter, or semester basis, the
tuition and fees charged the member for the term, quarter, or
semester.
``(B) In the case of a member enrolled in a program of
education not offered on a term, quarter, or semester basis,
the tuition and fees charged the member for the entire
program of education.
``(3) The educational institution providing the program of
education for which an accelerated payment of educational
assistance allowance is elected by an eligible member under
subsection (a) shall certify to the Secretary of Veterans
Affairs the amount of the established charges for the program
of education.
``(d) An accelerated payment of educational assistance
allowance made with respect to an eligible member under this
section for a program of education shall be made not later
than the last day of the month immediately following the
month in which the Secretary of Veterans Affairs receives a
certification from the educational institution regarding--
``(1) the member's enrollment in and pursuit of the program
of education; and

[[Page S5588]]

``(2) the amount of the established charges for the program
of education.
``(e)(1) Except as provided in paragraph (2), for each
accelerated payment of educational assistance allowance made
with respect to an eligible member under this section, the
member's entitlement to educational assistance under this
chapter shall be charged the number of months (and any
fraction thereof) determined by dividing the amount of the
accelerated payment by the full-time monthly rate of
educational assistance allowance otherwise payable with
respect to the member under section 16162 of this title as of
the beginning date of the enrollment period for the program
of education for which the accelerated payment is made.
``(2) If the monthly rate of educational assistance
allowance otherwise payable with respect to an eligible
member under section 16162 of this title increases during the
enrollment period of a program of education for which an
accelerated payment of educational assistance allowance is
made under this section, the charge to the member's
entitlement to educational assistance under this chapter
shall be determined by prorating the entitlement chargeable,
in the manner provided for under paragraph (1), for the
periods covered by the initial rate and increased rate,
respectively, in accordance with regulations prescribed by
the Secretary of Veterans Affairs.
``(f) The Secretary of Veterans Affairs shall prescribe
regulations to carry out this section. The regulations shall
include requirements, conditions, and methods for the
request, issuance, delivery, certification of receipt and
use, and recovery of overpayment of an accelerated payment of
educational assistance allowance under this section. The
regulations may include such elements of the regulations
prescribed under section 3014A of title 38 as the Secretary
of Veterans Affairs considers appropriate for purposes of
this section.
``(g) The aggregate amount of educational assistance
payable under this section in any fiscal year for enrollments
covered by subsection (b)(1) may not exceed $1,000,000.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 1607 of such title is amended by
inserting after the item relating to section 16162 the
following new item:

``16162A. Accelerated payment of educational assistance.''.
(e) Effective Date.--The amendments made by this section
shall take effect on October 1, 2008.

SEC. 3. ENHANCEMENT OF EDUCATIONAL ASSISTANCE FOR RESERVE
COMPONENT MEMBERS SUPPORTING CONTINGENCY
OPERATIONS AND OTHER OPERATIONS.

(a) Assistance for Three Years Cumulative Service.--
Subsection (c)(4)(C) of section 16162 of title 10, United
States Code, is amended by striking ``for two continuous
years or more.'' and inserting ``for--
``(i) two continuous years or more; or
``(ii) an aggregate of three years or more.''.
(b) Contributions for Increased Amount of Educational
Assistance.--
(1) In general.--Such section is further amended by adding
at the end the following new subsection:
``(f) Contributions for Increased Amount of Educational
Assistance.--(1)(A) Any individual eligible for educational
assistance under this section may contribute amounts for
purposes of receiving an increased amount of educational
assistance as provided for in paragraph (2).
``(B) An individual covered by subparagraph (A) may make
the contributions authorized by that subparagraph at any time
while a member of a reserve component, but not more
frequently than monthly.
``(C) The total amount of the contributions made by an
individual under subparagraph (A) may not exceed $600. Such
contributions shall be made in multiples of $20.
``(D) Contributions under this subsection shall be made to
the Secretary concerned. Such Secretary shall deposit any
amounts received as contributions under this subsection into
the Treasury as miscellaneous receipts.
``(2) Effective as of the first day of the enrollment
period following the enrollment period in which an individual
makes contributions under paragraph (1), the monthly amount
of educational assistance allowance applicable to such
individual under this section shall be the monthly rate
otherwise provided for under subsection (c) increased by--
``(A) an amount equal to $5 for each $20 contributed by
such individual under paragraph (1) for an approved program
of education pursued on a full-time basis; or
``(B) an appropriately reduced amount based on the amount
so contributed as determined under regulations that the
Secretary of Veterans Affairs shall prescribe, for an
approved program of education pursued on less than a full-
time basis.''.
______

By Mr. DURBIN (for himself, Mr. Akaka, and Mr. Cochran):
S. 1294. A bill to strengthen national security by encouraging and
assisting in the expansion and improvement of educational programs in
order to meet critical needs at the elementary, secondary, and higher
education levels, and for other purposes; to the Committee on Health,
Education, Labor, and Pensions.
Mr. DURBIN. Mr. President, I urge my colleagues to support the
Homeland Security Education Act. This bill encourages initiatives to
increase the number of Americans trained in science, technology,
engineering, math, and foreign languages.
More than a century ago, Henry Ford revolutionized transportation and
industry with the creation of the Model T. This car and the process
designed to create it were so innovative that it was copied by every
other company. The Model T became the base model for all cars that
followed. This is a classic American story. Some of the most important
scientific breakthroughs in modern history have occurred in the labs,
workshops, and classrooms of America. We take pride in our Nation's
ability to meet any challenge and solve any problem with innovation and
discovery. But we are falling behind. Today's innovations in the auto
industry come not from Detroit but from Japan. Engineers in Asia are
designing tomorrow's hybrid car while Henry Ford's company and other
American companies are just trying to keep up.
America's colleges and universities can play an important role in
reversing the decline in American innovation. The United States
graduates some of the world's best engineers, scientists, and
mathematicians, but a far higher proportion of the students in China,
India, South Korea, and Japan are focusing on these fields. The
National Academies of Science reports that in 2004, only 32 percent of
the undergraduate degrees awarded in the United States were in science
or engineering compared to 59 percent in China and 66 percent in Japan.
If we do not address this crisis soon, China, India, and Japan will
become the new centers for scientific and technological innovation,
while American workers scramble to keep up. We must act now to ensure
that America remains the world's economic, scientific, and
technological leader.
American workers are also increasingly finding themselves at a
disadvantage in a multilingual global community. In our increasingly
global economy and with a heightened concern for security in the post-
911 world, we need Americans who can speak a foreign language. Only 9
percent of American students enroll in a foreign language course in
college. We especially need to focus on less commonly taught languages,
including Arabic, Farsi, Chinese, and Korean, and other languages that
are of particular value in the world today.
The best place to address both of these concerns is in the classroom.
We must adapt our educational system by providing the teachers and
resources needed to encourage students to study science, technology,
engineering, mathematics, and foreign languages. The Homeland Security
Education Act is an important step in the right direction.
This bill would encourage students to pursue math, science,
technology, engineering, and critical foreign languages by providing
them with $5,000 scholarships. Scientists, engineers, technology
professionals, and those fluent in foreign languages would be
encouraged to return to the classroom and use their career experiences
to inspire students in high-need or low-income schools. New grant
programs would encourage educational institutions, public entities, and
businesses to enter into partnerships that improve math and science
curricula, establish programs that promote students' foreign language
proficiency along with their science and technological knowledge, and
create and establish foreign language pathways from elementary school
through college. Finally, the bill would fund a student loan repayment
program for qualified individuals trained in science, technology,
engineering, math, and foreign languages who join the Federal
workforce.
Our country is quickly approaching a crisis of competitiveness. To
avoid falling behind our international competitors in science and
innovation, we must confront this problem immediately in our schools.
We need to strengthen our students' proficiency in science, technology,
engineering, math, and foreign languages and provide them with the
incentives necessary to pursue careers in those fields. Today's
students are tomorrow's innovators, scientists, and technology leaders,
and we can't afford not to invest in them. I encourage my colleagues to
join me in cosponsoring the Homeland Security Education Act.

[[Page S5589]]

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. 1294

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 ``Homeland Security Education
Act''.

SEC. 2. FINDINGS AND PURPOSE.

(a) Findings.--Congress makes the following findings:
(1) Investing in science, technology, engineering,
mathematics, and foreign language education is essential to
maintaining the competitive advantage and national security
of the United States. Significant improvements in the
quantity and quality of science, technology, engineering,
mathematics, and foreign language instruction offered in
United States elementary schools and secondary schools are
necessary.
(2) For the past 3 decades, about one-third of the
baccalaureate degrees awarded in the United States have been
granted in science and engineering, compared to 59 percent in
China and 66 percent in Japan.
(3) The United States is behind its European counterparts
in foreign language skills, in that one-half of European
citizens speak a second language while only 9 percent of
Americans speak another language.
(4) Elementary schools and secondary schools in the United
States need more qualified teachers, equipment, and resources
to improve education in mathematics, science, and foreign
languages.
(5) The optimum time to begin learning a second language is
in elementary school, when children have the ability to learn
and excel in several foreign language acquisition skills,
including pronunciation.
(6) Foreign language study can increase children's capacity
for critical and creative thinking skills, and children who
study a second language show greater cognitive development in
areas such as mental flexibility, creativity, tolerance, and
higher order thinking skills.
(7) All people of the United States should strive to have a
global perspective. To understand the world around us, we
must acquaint ourselves with the languages, cultures, and
history of other nations.
(8) Federal agencies have reported shortfalls in language
capability that is integral to, or directly supports, every
discipline and is an essential factor in national security
readiness, disaster response, law enforcement, information
superiority, and coalition peacekeeping or warfighting
missions.
(b) Purpose.--It is the purpose of this Act to ensure the
national security and the competitiveness of the United
States through increasing the quantity, diversity, and
quality of the teaching and learning of subjects in the
fields of science, technology, engineering, mathematics, and
foreign language.

SEC. 3. SCHOLARSHIPS FOR SCIENCE, TECHNOLOGY, ENGINEERING,
MATHEMATICS, AND FOREIGN LANGUAGE EDUCATION.

(a) Purpose.--It is the purpose of this section to
establish and implement a program to award scholarships to
individuals who are citizens, nationals, or permanent legal
residents of the United States or citizens of the Freely
Associated States (as defined in section 103 of the Higher
Education Act of 1965 (20 U.S.C. 1003)), to serve as
incentives for students to obtain degrees in science,
technology, engineering, mathematics, and foreign language.
(b) Scholarships for Science, Technology, Engineering,
Mathematics, and Foreign Language Education.--Part A of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.) is amended by adding at the end the following:

``Subpart 9--Scholarships for Science, Technology, Engineering,
Mathematics, and Foreign Language Education

``SEC. 420K. SCHOLARSHIPS FOR SCIENCE, TECHNOLOGY,
ENGINEERING, MATHEMATICS, AND FOREIGN LANGUAGE
EDUCATION.

``(a) Purpose.--It is the purpose of this section to award
scholarships to students to provide incentives for pursuing
and obtaining a baccalaureate degree in science, technology,
engineering, mathematics, or a critical foreign language.
``(b) Definitions.--In this section:
``(1) Critical foreign language.--The term `critical
foreign language' means any language identified as critical
by the National Security Education Board and the Secretary.
``(2) Science.--The term `science' means any of the natural
and physical sciences, including chemistry, biology, physics,
and computer science. Such term shall not include any of the
social sciences.
``(c) Program Authorized.--From the amounts appropriated
under subsection (g), the Secretary shall carry out a program
to award scholarships in the amount of $5,000 each to
individuals who meet each of the following requirements:
``(1) The individual agrees to obtain a baccalaureate
degree in science, technology, engineering, mathematics, or a
critical foreign language.
``(2) The individual is a student at an institution of
higher education who is in good academic standing and is
capable, in the opinion of the Secretary, of maintaining good
standing in such course of study.
``(d) Selection of Recipients.--The Secretary shall
promulgate regulations to establish a formula for the
selection of scholarship recipients under this section that--
``(1) ensures fairness and equality for applicants in the
selection process, based on the amounts appropriated under
subsection (g); and
``(2) awards not less than 50 percent of amounts available
under this section for an academic year for scholarships to
students who meet the requirements described in subsection
(c) and are eligible for a Federal Pell Grant under subpart 1
for such year.
``(e) Failure to Complete Degree.--If, by the end of the 5-
year period beginning when an individual receiving a
scholarship under this section begins a program of study in
accordance with the agreement described in subsection (c)(1),
the individual does not obtain a baccalaureate degree in
science, technology, engineering, mathematics, or a critical
foreign language, the individual shall reimburse the Federal
Government for the amount of the scholarship, including
interest, at a rate and schedule to be determined by the
Secretary pursuant to regulations.
``(f) Report to Congress.--
``(1) Proposed regulations.--Not later than 180 days after
the date of enactment of the Homeland Security Education Act,
the Secretary shall--
``(A) publish the proposed regulations that the Secretary
determines are necessary to carry out this section; and
``(B) submit to the appropriate committees of Congress a
report on how the Secretary plans--
``(i) to implement the program under this section; and
``(ii) to advertise such program to institutions of higher
education and potential applicants.
``(2) Final regulations.--Not later than 180 days after the
last day of the comment period for the proposed regulations
under paragraph (1)(A), the Secretary shall promulgate the
final regulations to carry out this section.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$100,000,000 for fiscal year 2008, and such sums as may be
necessary for each of the 5 succeeding fiscal years.''.

SEC. 4. FEDERAL GRANTS TO PUBLIC SCHOOLS.

(a) In General.--Title V of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7201 et seq.) is amended by
adding at the end the following:

``PART E--STRENGTHENING MATHEMATICS AND SCIENCE EDUCATION

``SEC. 5701. DEFINITIONS.

``In this part:
``(1) Conditional agreement.--The term `conditional
agreement' means an arrangement between representatives of
the private sector and a local educational agency to provide
certain services and funds to the local educational agency,
such as--
``(A) the donation of computer hardware and software;
``(B) the donation of science laboratory equipment suitable
for students in kindergarten through grade 12;
``(C) the establishment of internship and mentoring
opportunities for students who participate in mathematics,
science, and information technology programs under this part;
``(D) the donation of scholarship funds for use at
institutions of higher education by eligible students who
have participated in the mathematics, science, and
information technology programs under this part; and
``(E) the donation of technology tools.
``(2) Private sector.--The term `private sector' includes
corporations, institutions of higher education, State or
local government agencies, membership organizations, and
other similar entities involved in the mathematics and
science fields.
``(3) Science.--The term `science' means any of the natural
and physical sciences, including chemistry, biology, physics,
and computer science. The term does not include any of the
social sciences.

``SEC. 5702. FEDERAL GRANTS TO PUBLIC SCHOOLS.

``(a) Grant Program Authorized.--The Secretary shall
establish a demonstration program under which the Secretary
shall award grants to local educational agencies to enable
such agencies to--
``(1) develop and implement programs that--
``(A) build or expand mathematics and science curricula;
``(B) provide--
``(i) a rich standards-based course of study in mathematics
and science to students; and
``(ii) opportunities for students who excel in mathematics
or science, particularly students who are members of
traditionally underrepresented groups in the fields of
mathematics or science, to be mentored by adults currently
active in the appropriate field;
``(2) provide mentoring opportunities for students in the
fields of mathematics and science;
``(3) upgrade existing laboratory facilities; or
``(4) purchase the equipment necessary to establish and
maintain such programs.
``(b) Application.--
``(1) In general.--A local educational agency desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary

[[Page S5590]]

may require by regulation, in accordance with paragraph (3).
``(2) Contents.--The application described in paragraph (1)
shall include--
``(A) a description of the proposed activities under the
grant, consistent with the uses of funds described in
subsection (a);
``(B) a description of how programs under the grant will
involve innovative experience learning, such as laboratory
experience;
``(C) a description of any mathematics and science
mentoring component (which may take place at the school, at a
workplace and paired with internships, or via the Internet),
including--
``(i) the program model and goals;
``(ii) the anticipated number of students served;
``(iii) the criteria for selecting students for the
mentoring component; and
``(iv) the mentoring best practices that will be followed;
``(D) a description of any applicable higher education
scholarship program, including--
``(i) the criteria for student selection;
``(ii) the duration of the scholarships;
``(iii) the number of scholarships to be awarded each year;
and
``(iv) the funding levels for the scholarships;
``(E) evidence of the private sector participation and
support in cash or in kind, as required under subsection (c);
and
``(F) an assurance that, upon receipt of a grant under this
part, the local educational agency will--
``(i) execute a conditional agreement with a representative
of the private sector; and
``(ii) enter into an agreement with the Secretary to comply
with the requirements of this part.
``(3) Regulations.--Not later than 180 days after the date
of enactment of the Homeland Security Education Act, the
Secretary shall issue and publish proposed regulations for
this subsection. Not later than 180 days after the date on
which the period for comment concerning the proposed
regulations ends, the Secretary shall issue the final
guidelines under this subsection.
``(c) Private Sector Participation.--A local educational
agency receiving a grant under this section shall enter into
a conditional agreement with a representative of the private
sector regarding the programs carried out under this section,
including not less than 1 conditional agreement with a
private sector entity that has agreed to recruit the entity's
employees or members in the mathematics and science fields to
serve as mentors to students.
``(d) Award Basis.--
``(1) In general.--The Secretary shall select a local
educational agency to receive a grant under this section on
the basis of merit, as determined after the Secretary has
conducted a comprehensive review of the application.
``(2) Priority.--In awarding grants under this section, the
Secretary shall give priority to a local educational agency
that is a high need local educational agency (as such term is
defined in section 201(b) of the Higher Education Act of
1965).

``SEC. 5703. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this
part $75,000,000 for fiscal year 2008, and such sums as may
be necessary for each of the 5 succeeding fiscal years.''.
(b) Table of Contents.--The table of contents in section 2
of the Elementary and Secondary Education Act of 1965 is
amended by inserting after the item relating to section 5618
the following:

``Part E--Strengthening Mathematics and Science Education

``Sec. 5701. Definitions.
``Sec. 5702. Federal grants to public schools.
``Sec. 5703. Authorization of appropriations.''.

SEC. 5. FROM THE LABORATORY TO THE CLASSROOM SCHOLARSHIPS.

(a) Purpose.--The purpose of this section is to increase
the amount of elementary and secondary educators with a
background and expertise in scientific or engineering
subjects by awarding scholarships to practicing scientists
and engineers to encourage them to return to school to become
certified or licensed elementary and secondary teachers in
those disciplines.
(b) Definitions.--In this section:
(1) Eligible individual.--The term ``eligible individual''
means a person who--
(A) is a citizen, national, or permanent legal resident of
the United States or a citizen of 1 of the Freely Associated
States (as defined in section 103 of the Higher Education Act
of 1965 (20 U.S.C. 1003));
(B) holds a baccalaureate or graduate degree in a
scientific or engineering field from an institution of higher
education; and
(C) has not less than 3 years of work experience in a
scientific or engineering position.
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(3) Qualified expenses.--The term ``qualified expenses''
means the tuition, books, fees, supplies, and equipment
required for a course of instruction, at the institution of
higher education the eligible individual chooses to attend,
that leads to elementary or secondary teaching certification
or licensure in any State, and other expenses for completing
a teacher preparatory program or obtaining a teaching
certificate or license.
(4) Scientific or engineering.--The term ``scientific or
engineering'' means any discipline within the natural
sciences, physical sciences, technology, mathematics, or
engineering subject areas.
(5) State.--The term ``State'' means each of the several
States of the United States and the District of Columbia.
(c) Program Authorized.--
(1) In general.--From amounts appropriated under subsection
(f), the Secretary of Education shall award scholarships to
eligible individuals which shall be used to enable the
individuals to pay for qualified expenses and attend an
institution of higher education of the individual's choosing.
(2) Designation.--A scholarship awarded under this section
shall be known as a ``From the Laboratory to the Classroom
Scholarship''.
(d) Amount; Duration.--
(1) Amount.--A scholarship awarded under this section shall
be in an amount of not more than $15,000 per year.
(2) Duration of scholarship.--A scholarship awarded to an
eligible individual under this section shall be for the
period of time required for the individual to complete a
course of study leading to elementary or secondary school
teacher certification or licensure in a State or a territory
of the United States, except that no scholarship shall exceed
a period of 2 years.
(e) Terms of Scholarship.--
(1) Employment as teacher.--As a condition of receiving a
scholarship under this section, an eligible individual shall
agree to be employed full-time as an elementary or secondary
education teacher in science, mathematics, or engineering at
a high-need, low-income school, as determined by the
Secretary, for a period of not less than 5 years after
receiving the teacher certification or licensure.
(2) Failure to teach.--If an individual who receives a
scholarship under this section does not comply with paragraph
(1), the individual shall reimburse the Federal Government
for the amount of such scholarship, including interest, at a
rate and schedule to be determined by the Secretary.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $300,000,000 for fiscal year 2008;
(2) $375,000,000 for fiscal year 2009;
(3) $450,000,000 for fiscal year 2010; and
(4) $600,000,000 for each of the fiscal years 2011 through
2014.

SEC. 6. ENCOURAGING EARLY FOREIGN LANGUAGE STUDIES.

(a) In General.--Title II of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6601 et seq.) is amended by
adding at the end the following:

``PART E--ENCOURAGING EARLY FOREIGN LANGUAGE STUDIES

``SEC. 2501. ENCOURAGING EARLY FOREIGN LANGUAGE STUDIES.

``(a) Purpose.--It is the purpose of this section to
improve the performance of students in the study of foreign
languages by encouraging States, institutions of higher
education, elementary schools, and secondary schools to
participate in programs that--
``(1) upgrade the status and stature of foreign language
teaching by encouraging institutions of higher education to
assume greater responsibility for improving foreign language
teacher education through the establishment of a
comprehensive, integrated system of recruiting and advising
such teachers;
``(2) focus on the education of foreign language teachers
as a career-long process that should continuously stimulate
the teachers' intellectual growth and upgrade the teachers'
knowledge and skills;
``(3) bring foreign language teachers in elementary schools
and secondary schools together with linguists or higher
education foreign language professionals to increase the
subject matter knowledge and improve the teaching skills of
teachers through the use of more sophisticated resources that
institutions of higher education are better able to provide
than the schools; and
``(4) develop more rigorous foreign language curricula that
are aligned with--
``(A) professional accepted standards for elementary and
secondary education instruction; and
``(B) the standards expected for postsecondary study in
foreign language.
``(b) Definitions.--In this section:
``(1) Critical foreign languages.--The term `critical
foreign languages' refers to any language identified as
critical by the National Security Education Board and the
Secretary.
``(2) Eligible partnership.--The term `eligible
partnership' means a partnership that--
``(A) shall include--
``(i) a foreign language department of an institution of
higher education; and
``(ii) a local educational agency; and
``(B) may include--
``(i) another foreign language department, or a teacher
training department, of an institution of higher education;
``(ii) another local educational agency, or an elementary
school or secondary school;
``(iii) a business;
``(iv) a nonprofit organization, including a museum;
``(v) a heritage or community center for language study;
``(vi) a national language resource and training center
authorized under part A of title VI of the Higher Education
Act of 1965; or

[[Page S5591]]

``(vii) the State foreign language coordinator or State
educational agency.
``(3) High need local educational agency.--The term `high
need local educational agency' has the meaning given the term
in section 201(b) of the Higher Education Act of 1965.
``(4) Summer workshop or institute.--The term `summer
workshop or institute' means a workshop or institute that--
``(A) is conducted for a period of not less than 2 weeks
during the summer;
``(B) provides direct interaction between students and
faculty; and
``(C) provides for followup training during the academic
year that--
``(i) except as provided in clause (ii) or (iii), shall be
conducted in the classroom for a period of not less than 3
days, which may or may not be consecutive;
``(ii) if the program described in subparagraph (A) is for
a period of not more than 2 weeks, shall be conducted for a
period of more than 3 days; and
``(iii) may be conducted through distance education.
``(c) Grants to Partnerships.--
``(1) In general.--The Secretary is authorized to award
grants, on a competitive basis, to eligible partnerships to
enable the eligible partnerships to pay the Federal share of
the costs of carrying out the authorized activities described
in this section.
``(2) Duration.--A grant awarded under this section shall
be for a period of 5 years.
``(3) Federal share.--The Federal share of the costs of the
activities described in this section shall be--
``(A) 75 percent of the costs for the first year of a grant
under this section;
``(B) 65 percent of such costs for the second such year;
and
``(C) 50 percent of such costs for each of the third,
fourth, and fifth such years.
``(4) Non-federal share.--The non-Federal share of the
costs of carrying out the authorized activities described in
this section may be provided in cash or in kind, fairly
evaluated.
``(5) Priority.--In awarding grants under this section, the
Secretary shall give priority to eligible partnerships--
``(A) that include high need local educational agencies; or
``(B) that emphasize the teaching of the critical foreign
languages.
``(d) Applications.--
``(1) In general.--Each eligible partnership desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by
such information as the Secretary may require.
``(2) Contents.--An application submitted under paragraph
(1) shall include--
``(A) an assessment of the teacher quality and professional
development needs of all the schools and educational agencies
participating in the eligible partnership with respect to the
teaching and learning of foreign languages;
``(B) a description of how the activities to be carried out
by the eligible partnership will be based on a review of
relevant research, and an explanation of why the activities
are expected to improve student performance and to strengthen
the quality of foreign language instruction; and
``(C) a description of--
``(i) how the eligible partnership will carry out the
authorized activities described in subsection (e); and
``(ii) the eligible partnership's evaluation and
accountability plan in accordance with subsection (f).
``(e) Authorized Activities.--An eligible partnership that
receives a grant under this section may use the grant funds
to carry out activities such as--
``(1) creating opportunities for enhanced and ongoing
professional development that improves the subject matter
knowledge of foreign language teachers;
``(2) recruiting students from 4-year institutions of
higher education with foreign language majors for teaching;
``(3) promoting strong teaching skills for foreign language
teachers and teacher educators;
``(4) establishing foreign language summer workshops or
institutes (including followup training) for teachers;
``(5) establishing distance learning programs for foreign
language teachers;
``(6) designing programs to prepare a teacher at a school
to provide professional development to other teachers at the
school and to assist novice teachers at the school, including
(if applicable) a mechanism to integrate experiences from a
summer workshop or institute; and
``(7) developing instruction materials.
``(f) Evaluation and Accountability Plan.--Each eligible
partnership receiving a grant under this section shall
develop an evaluation and accountability plan for activities
assisted under this section that includes strong performance
objectives and measures for--
``(1) increased participation by students in advanced
courses in foreign language;
``(2) increased percentages of secondary school classes in
foreign language taught by teachers with academic majors in
foreign language; and
``(3) increased numbers of foreign language teachers who
participate in content-based professional development
activities.
``(g) Report.--Each eligible partnership receiving a grant
under this section shall annually report to the Secretary
regarding the eligible partnership's progress in meeting the
performance objectives described in subsection (f).
``(h) Termination.--If the Secretary determines that an
eligible partnership is not making substantial progress in
meeting the performance objectives described in subsection
(f) by the end of the third year of a grant under this
section, the Secretary shall not make grant payments to the
eligible partnership for the fourth and fifth years of the
grant.
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$50,000,000 for fiscal year 2008, and such sums as may be
necessary for each succeeding fiscal year.''.
(b) Table of Contents.--The table of contents in section 2
of the Elementary and Secondary Education Act of 1965 is
amended by inserting after the item relating to section 2441
the following:

``Part E--Encouraging Early Foreign Language Studies

``Sec. 2501. Encouraging early foreign language studies.''.

SEC. 7. SCIENCE, ENGINEERING, TECHNOLOGY, AND ADVANCED
FOREIGN LANGUAGE EDUCATION GRANT PROGRAM.

(a) Purpose.--It is the purpose of this section to support
programs in institutions of higher education that encourage
students--
(1) to develop an understanding of science, technology, and
engineering;
(2) to develop foreign language proficiency; and
(3) to foster future international scientific
collaboration.
(b) Development.--The Secretary of Education shall develop
and carry out a program to award grants to institutions of
higher education that develop innovative programs for the
teaching of foreign languages.
(c) Regulations and Requirements.--The Secretary of
Education shall promulgate regulations for the awarding of
grants under subsection (b).
(d) Application.--An institution of higher education
desiring a grant under this section shall submit an
application to the Secretary of Education at such time, in
such manner, and containing such information as the Secretary
shall require.
(e) Use of Funds.--An institution of higher education
receiving a grant under this section shall use grant funds
for, among other things--
(1) the development of an on-campus cultural awareness
program by which students attend classes taught in the
foreign language and study the science, technology, or
engineering developments and practices in a non-English-
speaking country;
(2) immersion programs where students study science,
technology, or engineering related coursework in a non-
English-speaking country; and
(3) other programs, such as summer workshops, that
emphasize the intense study of a foreign language and
science, technology, or engineering.
(f) Grant Distribution.--In awarding grants to institutions
of higher education under this section, the Secretary of
Education shall give priority to--
(1) institutions that have programs focusing on a
curriculum that combines the study of foreign languages and
the study of science and technology and produces graduates
who have both skills; and
(2) institutions teaching the languages identified as
critical by the National Security Education Board and the
Secretary of Education.
(g) Definitions.--In this section:
(1) Institution of higher education.--The term
``institution of higher education'' has the meaning given
such term in section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001).
(2) Science.--The term ``science'' means any of the natural
and physical sciences, including chemistry, biology, physics,
and computer science. Such term does not include any of the
social sciences.
(h) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section, $15,000,000 for
fiscal year 2008, and such sums as may be necessary for each
succeeding fiscal year.

SEC. 8. NATIONAL SECURITY EDUCATION PROGRAM SERVICE
AGREEMENT.

Section 802(b)(2) of the David L. Boren National Security
Education Act of 1991 (50 U.S.C. 1902(b)(2)) is amended to
read as follows:
``(2) will--
``(A) in the case of a recipient of a scholarship, not
later than 3 years after the date of the recipient's
completion of the study for which scholarship assistance was
provided under the program, work--
``(i) for not less than 1 year in a position in the
Department of Defense, the Department of Homeland Security,
the Department of State, or any element of the intelligence
community that is certified by the Secretary as contributing
to national security;
``(ii) if such recipient demonstrates to the Secretary of
Defense that no position described in clause (i) is
available, for not less than 1 year in a position in another
department or agency of the Federal Government that is
certified by the Secretary as contributing to national
security; or
``(iii) if such recipient demonstrates to the Secretary of
Defense that no position described in clause (i) or (ii) is
available, for not less than 1 academic year in a position in
the field of education in a discipline related to the studies
supported under this section; or

[[Page S5592]]

``(B) in the case of a recipient of a fellowship, not later
than 2 years after the date of the recipient's completion of
the study for which the fellowship assistance was provided
under the program, work--
``(i) for not less than 1 year in a position in the
Department of Defense, the Department of Homeland Security,
the Department of State, or any element of the intelligence
community that is certified by the Secretary as contributing
to national security;
``(ii) if such recipient demonstrates to the Secretary of
Defense that no position described in clause (i) is
available, for not less than 1 year in a position in another
department or agency of the Federal Government that is
certified by the Secretary as contributing to national
security; or
``(iii) if such recipient demonstrates to the Secretary of
Defense that no position described in clause (i) or (ii) is
available, for not less than 1 academic year in a position in
the field of education in a discipline related to the studies
supported under this section.''.

SEC. 9. CRITICAL FOREIGN LANGUAGE EDUCATION PROGRAM.

(a) Grants Authorized.--From amounts appropriated under
subsection (f), the Secretary of Education shall award grants
to institutions of higher education to pay the Federal share
of programs established by the institutions, in collaboration
with elementary schools and secondary schools, for language
learning pathways that train students from kindergarten
through graduate education to be proficient in the critical
foreign languages.
(b) Application Requirements.--An institution of higher
education desiring a grant under this section shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary of Education
shall require. In the application, the institution of higher
education shall--
(1) demonstrate the ability of the institution to
collaborate effectively with elementary schools and secondary
schools to ensure that students who successfully achieve an
advanced proficiency level in a critical foreign language at
such schools will continue studying a foreign language at an
institution of higher education and achieve a superior
proficiency level while enrolled in an academic degree
program;
(2) demonstrate that the program designed by the
institution under this section can be replicated for use by
other institutions of higher education and elementary schools
and secondary schools in the United States; and
(3) agree to provide the non-Federal share of the costs of
the program under this section.
(c) Federal Share; Non-Federal Share.--The Federal share of
the costs of the program under this section shall be not more
than 90 percent of such costs. The non-Federal share shall be
not less than 10 percent of such costs, and may be provided
in cash or in kind, fairly evaluated.
(d) Program.--A program assisted under this section may
include--
(1) study or work abroad opportunities;
(2) experiential and community learning;
(3) distance learning;
(4) language learning for professional purposes, business,
and other disciplines; and
(5) innovative opportunities for language learning through
immersion, internships, and community service.
(e) Definition of Critical Foreign Language.--In this
section, the term ``critical foreign language'' means any
language identified as critical by the National Security
Education Board and the Secretary of Education.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $50,000,000 for
fiscal year 2008 and each succeeding fiscal year.

SEC. 10. WORLD LANGUAGE TEACHING SCHOLARSHIPS.

(a) Purpose.--The purpose of this section is to increase
the number of elementary school and secondary school
educators with foreign language proficiency by awarding
scholarships to language proficient individuals to enable the
individuals to become certified or licensed as foreign
language teachers.
(b) Definitions.--In this section:
(1) Eligible individual.--The term ``eligible individual''
means a person who--
(A) is a citizen, national, or permanent legal resident of
the United States or is a citizen of 1 of the Freely
Associated States (as defined in section 103 of the Higher
Education Act of 1965 (20 U.S.C. 1003));
(B) holds at least a baccalaureate degree from an
institution of higher education; and
(C) demonstrates written and verbal fluency in a critical
foreign language.
(2) Critical foreign language.--The term ``critical foreign
language'' means any language identified as critical by the
National Security Education Board and the Secretary of
Education.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(4) Qualified expenses.--The term ``qualified expenses''
means the tuition, books, fees, supplies, and equipment
required for a course of instruction, at the institution of
higher education the eligible individual chooses to attend,
that leads to elementary or secondary teaching certification
or licensure in any State, and other expenses for completing
a teacher preparatory program or obtaining a teaching
certificate or license.
(5) State.--The term ``State'' means each of the several
States of the United States and the District of Columbia.
(c) Program Authorized.--
(1) In general.--From amounts appropriated under subsection
(e), the Secretary of Education shall award scholarships to
eligible individuals that shall be used to pay for the
qualified expenses of a teacher certification or licensure
program.
(2) Designation.--A scholarship under this section shall be
known as a ``World Language Teaching Scholarship''.
(d) Amount; Duration; Terms.--
(1) Amount.--A scholarship awarded under this section shall
be in an amount of not more than $15,000 per year.
(2) Duration of scholarship.--A scholarship awarded to an
eligible individual under this section shall be for the
number of years required to complete a course of study
leading to elementary or secondary school teaching
certification or licensure in a State or a territory of the
United States, except that no scholarship shall exceed a
period of 2 years.
(3) Terms of scholarship.--
(A) Employment as a teacher.--As a condition of receiving a
scholarship under this section, an eligible individual shall
agree to be employed full-time as a foreign language
elementary or secondary education teacher at a high-need,
low-income school, as determined by the Secretary, for a
period of not less than 5 years.
(B) Failure to teach.--If an individual who receives a
scholarship under this section does not comply with
subparagraph (A), the individual shall reimburse the Federal
Government for the amount of such scholarship, including
interest, at a rate and schedule to be determined by the
Secretary.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $300,000,000 for fiscal year 2008;
(2) $375,000,000 for fiscal year 2009;
(3) $450,000,000 for fiscal year 2010; and
(4) $600,000,000 for each of the fiscal years 2011 through
2013.

SEC. 11. PILOT PROGRAM FOR STUDENT LOAN REPAYMENT FOR FEDERAL
EMPLOYEES WITH CRITICAL SCIENCE, TECHNOLOGY,
ENGINEERING, MATHEMATICS, AND FOREIGN LANGUAGE
SKILLS.

(a) In General.--Subchapter VII of chapter 53 of title 5,
United States Code, is amended by inserting after section
5379 the following:

``Sec. 5379a. Pilot program for student loan repayment for
Federal employees with critical science, technology,
engineering, mathematics, and foreign language skills

``(a) In this section:
``(1) The term `agency' means any agency that, based on the
agency's human capital strategic plan, has a shortfall in the
number of individuals possessing critical science,
technology, engineering, mathematics, and foreign language
skills.
``(2) The term `human capital strategic plan' means an
agency's strategic plan under section 306 of this title.
``(3) The term `student loan' means--
``(A) a loan made, insured, or guaranteed under part B of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1071
et seq.);
``(B) a loan made under part D or E of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087a et seq., 1087aa
et seq.); or
``(C) a health education assistance loan made or insured
under part A of title VII of the Public Health Service Act
(42 U.S.C. 292 et seq.) or under part E of title VIII of such
Act (42 U.S.C. 297a et seq.).
``(b) The Director of the Office of Personnel Management
shall establish and administer a program under which not less
than 3 but not more than 5 agencies, for a period of 5 years,
shall set aside an amount, as described in subsection (d), to
fund a student loan repayment program under section 5379 of
this title to repay (by direct payments on behalf of the
employee) any student loan previously taken out by employees
possessing science, technology, engineering, mathematics, or
foreign language skills deemed critical to an agency under
the agency's human capital strategic plan.
``(c) A program established under this section shall remain
in effect for the 5-year period beginning on the date of
enactment of the Homeland Security Education Act.
Notwithstanding the previous sentence, such program shall
continue to pay an employee recruited under this program who
is in compliance with this section and section 5379 of this
title the employee's benefits under this section through the
commitment period in accordance with section 5379(c).
``(d) Each agency participating in this program shall set
aside enough funds to repay the student loans of at least
one-half of the number of employees needed with critical
science, technology, engineering, mathematics, or foreign
language skills, according to the agency's human capital
strategic plan.
``(e)(1) Not later than 60 days after the date of enactment
of the Homeland Security Education Act and after
consultations with the heads of agencies, the Director of the
Office of Personnel Management shall propose regulations for
the pilot program.
``(2) Not later than 180 days after the date on which the
comment period for proposed regulations under paragraph (1)
ends, the Director of the Office of Personnel Management
shall promulgate final regulations.
``(f)(1)(A) Not later than 180 days after the date of
enactment of the Homeland Security

[[Page S5593]]

Education Act, the Director of the Office of Personnel
Management shall report to the appropriate committees of
Congress on the implementation of the program under this
section.
``(B) As part of its annual report on the Federal
Government's student loan repayment program under section
5379, the Director of the Office of Personnel Management
shall report on the status of the program established under
this section and the success of such program in recruiting
and retaining employees possessing such skills, including an
assessment as to whether the program should be expanded to
other agencies or to individuals possessing other critical
skills.
``(2) The head of each agency establishing a student loan
repayment program under this section shall provide any
necessary information to the Director of the Office of
Personnel Management to enable the Director to carry out this
subsection.
``(g) For the purpose of enabling the Federal Government to
recruit and retain employees possessing critical science,
technology, engineering, mathematics, and foreign language
skills under this section, there are authorized to be
appropriated such sums as may be necessary to carry out this
section for each fiscal year.''.
(b) Technical and Conforming Amendment.--The table of
sections for chapter 53 of title 5, United States Code, is
amended by inserting after the item relating to section 5379
the following:

``Sec. 5379a. Pilot program for student loan repayment for Federal
employees with critical science, technology, engineering,
mathematics, and foreign language skills.''.
Mr. AKAKA. Mr. President, I rise today, along with my friends
Senators Durbin and Cochran, to reintroduce legislation that will
provide students much needed educational opportunities in foreign
languages and science, technology engineering and mathematics, STEM.
The future economic health and security of our Nation depends on
programs such as those called for in our legislation. This country's
national security depends upon having a workforce with the necessary
science, technology, engineering, math, and foreign language skills to
rapidly and efficiently adapt to the challenges of globalization. Yet,
we are falling behind.
According to a study conducted by the Committee on Economic
Development, the Federal Bureau of Investigation and other Federal
Government agencies do not have a sufficient number of personnel
trained in critical languages to translate intelligence information in
a timely manner. Similarly, a GAO report issued August 4, 2006, GAO-06-
894 noted that the State Department was still suffering from gaps in
language proficiency which could adversely impact its ability to
communicate with foreign audiences and execute critical duties.
We all know that we live in a global marketplace. The United States,
which has the world's largest economy, is the engine for global
economic growth. However, this also means that American workers must
compete with others in the global market for skilled labor. The signs
have long been clear that we are failing to develop the next generation
of workers. As a recent study by the National Center for Public Policy
and Higher Education observes, in the United States ``about one-quarter
of 15-year-olds fall into the lowest proficiency level on assessments
of skills and knowledge.'' The United States ranks 16th among 27
countries in the number of students who earn a college degree or
certificate. We can delay no longer in taking the steps to train
students to compete and thrive in a multi-lingual and technologically
complex environment.
Our bill the Homeland Security Education Act, provides schools with
the framework they need to prepare our Nation's youth for the future.
Its enactment is a critical step in reenergizing and reinvigorating our
education system to meet the needs of our Nation. It will increase
students' proficiency in foreign languages and encourage them to become
scientists and engineers.
The Homeland Security Education Act provides schools with the
equipment and materials necessary to teach STEM and foreign language
courses by encouraging public private partnerships to improve science
and math curricular--upgrade laboratory facilities; provide
scholarships for students to study math, science, or engineering at the
university level; and Establish internship and mentoring opportunities
for students in grades K-12; developing cultural awareness and
immersion programs in colleges and universities that combine science,
technology, and engineering instruction with foreign language to expand
international understanding and scientific collaboration; and creating
language learning pathways to facilitate proficiency in critical
foreign languages from kindergarten through graduate school.
In addition, this act addresses the shortage of STEM and foreign
language teachers. Our Nation needs mathematicians, scientists, and
linguists in order to compete in a global mart. Accordingly, our bill
awards scholarships in the amount of $15,000 to language proficient
individuals and to practicing scientists and engineers to encourage
them to become certified to teach these critical skills to students in
high-need, low-income schools. The bill would also allow National
Security Education Program scholarship and fellowship recipients to
meet their service requirements by teaching in critical areas if they
cannot find a national security position in the Federal service. In
addition, a key provision awards grants to build professional
development programs, summer workshops or institutes, and foreign
language distance learning programs for elementary and secondary school
teachers in order to facilitate partnerships between 12 schools and
institutions of higher education.
Not only do we need to encourage individuals and professionals to
become teachers in these critical need areas, we also need to encourage
students to study languages, science, technology, engineering, and math
by underscoring the importance of these subjects to our country's
security and economic well-being. As Secretary of Education Margaret
Spellings noted in January 2006, only 44 percent of this country's high
school students are studying any foreign language, while learning a
second or even a third language is compulsory for students in the
European Union, China, Thailand, and many other nations. Only 32
percent of undergraduates in the United States receive their degrees in
science and engineering compared to 59 percent in China and 66 percent
in Japan. Our children deserve better opportunities to become math,
science, and language proficient. The Homeland Security Education Act
helps correct this growing skill gap between students in the United
States and students across the globe by providing scholarships for
students to earn their degrees in STEM or a foreign language.
Mr. President, education is the foundation of our Nation's long-term
security. In order to fulfill our role as a world leader, this Nation
needs Americans who are well educated and can communicate and compete
in a global environment. The bill we are introducing today will help us
meet this essential goal.
______

By Mr. KERRY (for himself and Mr. Reed):
S. 1298. A bill to amend the Social Security Act to establish a
Federal Reinsurance Program for Catastrophic Health Care Costs; to the
Committee on Finance.
Mr. KERRY. Mr. President, States like my home state of Massachusetts
are setting an example for the rest of the country by taking bold steps
to provide quality health coverage for everyone. Now it is time for
Washington to do the same by bringing meaningful, affordable healthcare
to the uninsured, in Massachusetts and across America.
In Massachusetts there is still a major obstacle in the overall goal
of universal coverage: cost. The fact is the problem of the uninsured
can't be solved unless the issue of skyrocketing health costs to
families and businesses is also tackled. And fully reforming the
healthcare system will require that the Federal Government begin
shouldering some of the burden to help alleviate costs.
Healthcare costs are highly concentrated in this country. The very
few who suffer from catastrophic illness or injury drive costs up for
everyone. One percent of patients account for 25 percent of healthcare
costs, and 20 percent of patients account for 80 percent of costs. To
make healthcare more affordable, we must find a better way to share the
immense burden of insuring the chronically ill and seriously injured.
Part of the reason that businesses and health plans today fail to
cover

[[Page S5594]]

their workers is an aversion to risk, a fear that they will be saddled
with a sick employee whose high premiums will bankrupt them. And
patients who are catastrophically ill or injured often face the tragic
combination of failing health and financial peril. But there's a way to
combat these costs.
Congress should make employers and healthcare plans an offer they
can't refuse. It's called ``reinsurance.'' Reinsurance provides a
backstop for the high costs of healthcare. The Federal Government will
reimburse a percentage of the highest cost cases if employers agree to
offer a substantive insurance benefit to all full time employees,
including preventative care and health promotion benefits that are
proven to make care affordable. This means lower costs and lower
premiums for both employers and employees. If the Federal Government
can help small and large businesses bear the burden of cost in the most
expensive cases, we'll dramatically improve the health of everyone.
Today I am introducing the Healthy Businesses, Healthy Workers
Reinsurance Act, a bill that will make Government a partner in helping
businesses with the heavy financial burden of those catastrophic cases:
those that use over $50,000 in a single year in healthcare costs.
Healthy Businesses, Healthy Workers will protect business owners from
skyrocketing premiums, and provide more working families affordable,
quality healthcare. With reinsurance, health insurance premiums for all
of us will go down, by up to 10 percent under this plan. This plan does
have a cost associated with it, but the benefits will outweigh the
costs. We spend hundreds of billions of dollars each year on
inefficient and wasteful health expenditures. We need to make sure that
these funds are being spent wisely to ensure that we can lower health
care costs and improve coverage.
I believe that even in today's sharply divided Washington, this plan
is feasible. There is a growing bipartisan consensus that the Federal
Government has a responsibility to help the catastrophically ill.
Consider the Medicare prescription drug program: Despite its flaws, the
bill did cover 95 percent of the cost of prescription drugs once
seniors passed through the disastrous ``doughnut hole'' in their
coverage. The same approach has been used to protect the insurance
market from going under in case of another catastrophic act of
terrorism.
As we take the next steps toward alleviating our Nation's healthcare
crisis, a commonsense partnership between employers, families, and the
government to share the costs of the sickest among us will lay the
groundwork for achieving our ultimate goal: healthcare coverage for
every single American.
I ask for 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. 1298

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 ``Healthy Businesses, Healthy
Workers Reinsurance Act of 2007''.

SEC. 2. FINDINGS.

Congress finds the following:
(1) The cost of health insurance premiums for families has
risen 87 percent since 2000, nearly 4 times the growth in
overall inflation and workers earnings.
(2) Health insurance premium increases have resulted in a
nearly 10 percentage point drop in the number of firms
choosing to offer coverage to their workers over that time
period.
(3) Today, just 48 percent of firms with between 3 and 9
employees offer health insurance benefits, down from 58
percent in 2001.
(4) The decline in employer-sponsored coverage has added to
the growing problem of the uninsured. An additional 4 million
Americans have been added to the ranks of the uninsured since
2001.
(5) Health care costs are highly concentrated. Twenty
percent of the population that is catastrophically or
chronically ill accounts for 80 percent of the health care
spending, with just 1 percent driving a full 22 percent of
health care costs.

SEC. 3. FEDERAL REINSURANCE PROGRAM FOR CATASTROPHIC HEALTH
CARE COSTS.

(a) Program.--The Social Security Act (42 U.S.C. 301 et
seq.) is amended by adding at the end the following new
title:

``TITLE XXII--FEDERAL REINSURANCE PROGRAM FOR CATASTROPHIC HEALTH CARE
COSTS

``SEC. 2201. OFFICE OF FEDERAL REINSURANCE.

``(a) In General.--There is established within the
Department of Health and Human Services an office to be known
as the `Office of Federal Reinsurance'.
``(b) Duty.--The Office of Federal Reinsurance shall
establish and administer the Federal Reinsurance Program for
Catastrophic Health Care Costs in accordance with the
provisions of this title.

``SEC. 2202. PROGRAM.

``(a) Establishment.--
``(1) In general.--The Office shall establish and
administer a Federal Reinsurance Program for Catastrophic
Health Care Costs under which reinsurance payments are
provided to eligible health plans that experience
catastrophic health care costs during a year with respect to
an individual covered under the plan. For purposes of this
title, the term `individual covered under the plan' includes
employees, retirees, spouses, and dependants.
``(2) Program to begin in 2009.--The Office shall establish
the Program in a manner so that reinsurance payments are made
with respect to catastrophic health care costs occurring on
or after January 1, 2009.
``(3) Eligible health plan.--
``(A) In general.--In this title, the term `eligible health
plan' means any of the following:
``(i) A group health plan that meets the requirements
described in subparagraph (B).
``(ii) A governmental plan (as defined in section 3(32) of
the Employee Retirement Income Security Act of 1974) that
meets the requirements described in subparagraph (B).
``(iii) A multiemployer plan (as defined in section 3(37)
of the Employee Retirement Income Security Act of 1974) that
meets the requirements described in subparagraph (B).
``(iv) A plan that offers coverage through health
purchasing cooperatives in conjunction with a State health
program that makes available health insurance coverage to the
small group market and the individual market on the same
terms and that meets the requirements described in
subparagraph (B).
``(B) Requirements.--The requirements described in this
subparagraph are that--
``(i) the plan involved--

``(I) provides eligibility for health insurance coverage
(after any waiting period (as defined in section 9801(b)(4)))
to all full-time employees of the employer maintaining or
contributing to the plan;
``(II) ensures that if there is a deductible under the
plan, such deductible does not exceed $1,000 for an
individual and $2,000 for a family;
``(III) ensures that the plan offers preventative benefits;
and
``(IV) ensures that the plan employs effective high-cost
case management tools (in accordance with the definition of
disease management by the Disease Management Association of
America) in order to reduce costs over time; and

``(ii) the employer maintaining or contributing to the plan
involved pays at least 50 percent of the costs of health
insurance coverage for each employee covered under the plan
(regardless of whether the employee is a full-time or part-
time employee).
``(C) Cost-of-living adjustment.--
``(i) In general.--In the case of any calendar year after
2009. each dollar amount in subparagraph (B)(ii) shall be
increased by an amount equal to--

``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) of the Internal Revenue Code of 1986 for such
calendar year determined by substituting `calendar year 2008'
for `calendar year 1992' in subparagraph (B) thereof.

``(ii) Date for determination.--For purposes of clause (i),
section 1(f)(4) of such Code shall be applied by substituting
`March 31' for `August 31', and the Secretary of the Treasury
shall publish the adjusted amounts under subparagraph (B)(ii)
for the calendar year not later than June 1 of the preceding
calendar year.
``(iii) Rounding.--If any increase under clause (i) is not
a multiple of $50, such increase shall be rounded to the
nearest multiple of $50.
``(D) Employer.--For purposes of this title, the term
`employer' includes the Federal government and any other
governmental entity (within the meaning of section 5000(d) of
Internal Revenue Code of 1986).
``(b) Enrollment.--
``(1) Procedures.--The Office shall establish procedures
for the enrollment of eligible health plans in the Program.
``(2) Application and annual recertification.--
``(A) In general.--The procedures established under
paragraph (1) shall include a process for an eligible health
plan--
``(i) to submit an application to the Office for enrollment
in the Program; and
``(ii) to be annually recertified for enrollment in the
Program.
``(B) Requirement.--The application and recertification
process under subparagraph (A) shall require that an eligible
health plan submit to the Office--
``(i) a detailed description of the projected and actual
reduction in total costs under the plan that are a result of
the Program, including both individual and employer portions;
and
``(ii) such other information determined appropriate by the
Office.
``(3) Approval.--

[[Page S5595]]

``(A) In general.--The procedures established under
paragraph (1) shall provide for the approval or disapproval
of applications and requests for recertification submitted by
eligible health plans under paragraph (2).
``(B) Specific requirement.--The Office shall not approve
an application or a request for recertification unless the
Office finds that the eligible health plan is reducing total
costs under the plan, based on the information submitted
under paragraph (2)(B) and audits conducted under paragraph
(4).
``(4) Audits.--The Office shall conduct audits of claims
data of eligible health plans in order to ensure that the
eligible health plan is in compliance with the requirements
under the Program, including the requirement under paragraph
(3)(B). An eligible health plan shall not be eligible for
reinsurance payments unless it provides the Office with
access to such data.
``(c) Cost-Sharing in Costs of Program.--
``(1) In general.--An eligible health plan that
participates in the Program shall pay the fee established by
the Office under paragraph (2).
``(2) Authorization.--The Office is authorized to charge a
fee to each eligible health plan that participates in the
Program. Any amounts collected shall be deposited into the
Trust Fund.
``(3) Requirements.--In establishing the fee under
paragraph (2)--
``(A) the Office shall consult with interested parties; and
``(B) shall ensure that the amount of such fee is not
excessive so as to unduly discourage eligible health plans
from enrolling in the Program.
``(d) Appeals Process.--The Office shall establish an
appeals process under the Program.
``(e) Procedures to Protect Against Fraud, Waste, and
Abuse.--The Office shall establish procedures to protect
against fraud, waste, and abuse under the Program.

``SEC. 2203. REINSURANCE PAYMENTS.

``(a) Amount.--
``(1) In general.--The amount of a reinsurance payment
under the Program to an eligible health plan that experiences
catastrophic health care costs in a year with respect to an
individual covered under the plan shall be an amount equal to
75 percent of such costs.
``(2) Catastrophic health care costs.--
``(A) In general.--In this title, the term `catastrophic
health care costs' means, with respect to a year, costs for
medical care (as defined in section 9832(d)(3) of the
Internal Revenue Code of 1986) provided under an eligible
health plan to an individual covered under the plan, but only
with respect to such costs which exceed $50,000.
``(B) Negotiated prices.--In determining the amount of
catastrophic health care costs under the Program, the
eligible health care plan shall take into account any
negotiated price concessions, such as discounts, direct or
indirect subsidies, rebates, and direct or indirect
remunerations, obtained by the plan.
``(C) Inflation adjustment.--
``(i) In general.--In the case of a calendar year after
2009, the $50,000 amount in subparagraph (A) shall be
increased by an amount equal to--

``(I) such dollar amount; multiplied by
``(II) the percentage (if any) by which the average of the
medical care component of the Consumer Price Index for all
urban consumers (United States city average) for the 12-month
period ending with August of the preceding calendar year
exceeds such average for the 12-month period ending with
August 2008.

``(ii) Rounding.--If any dollar amount after being
increased under clause (i) is not a multiple of $1,000, such
dollar amount shall be rounded to the nearest multiple of
$1,000.
``(b) Requests for Payment.--To be eligible for a
reinsurance payment with respect to an individual for a year,
an eligible health plan shall submit to the Office, at a time
and in a manner determined appropriate by the Office, a
request for payment that contains--
``(1) a certification--
``(A) that the plan paid or incurred catastrophic health
care costs during the year with respect to the individual;
and
``(B) of the amount of such costs; and
``(2) such other information determined appropriate by the
Office.
``(c) Payments From Trust Fund.--
``(1) In general.--Payments to eligible health plans under
the Program shall be made from the Trust Fund.
``(2) Tax treatment.--For purposes of the Internal Revenue
Code of 1986--
``(A) payments from the Trust Fund to the eligible health
plan shall not be included in gross income; and
``(B) no deduction shall be allowed to the eligible health
plan with respect to the payment of any catastrophic health
care costs for the portion of such costs which was reimbursed
from the Trust Fund.

``SEC. 2204. FEDERAL REINSURANCE FOR CATASTROPHIC HEALTH CARE
COSTS TRUST FUND.

``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Federal Reinsurance for Catastrophic Health Care Costs Trust
Fund', consisting of such amounts as may be appropriated or
credited to the Trust Fund (including any fees deposited
under section 2202(c)).
``(b) Mandatory Appropriations.--There are appropriated to
the Trust Fund such sums as may be necessary in order to make
the reinsurance payments required under section 2203.
``(c) Rules Regarding Transfers to and Management of Trust
Fund.--For purposes of this section, rules similar to the
rules of sections 9601 and 9602 of the Internal Revenue Code
of 1986 shall apply.
``(d) Distribution of Amounts in Trust Fund.--Amounts in
the Trust Fund shall be available for making payments under
section 2203.

``SEC. 2205. REPORTS.

``(a) Secretary.--
``(1) In general.--Not later than March 1, 2011, and
biennially thereafter, the Secretary shall submit to Congress
a report on the Program.
``(2) Requirements.--
``(A) In general.--Each report submitted under paragraph
(1) shall contain--
``(i) a detailed description of the Program, including a
detailed description of the impact the Program has had on
reducing premiums for health insurance coverage and
increasing the number of individuals with health insurance
coverage; and
``(ii) any other information or recommendations determined
appropriate by the Secretary.
``(B) Individual market.--The first report submitted under
paragraph (1) shall also contain recommendations regarding
expanding the Program to the individual market.
``(C) Consultation.--The Secretary shall consult with the
National Association of Insurance Commissioners in preparing
each report under paragraph (1).
``(b) GAO.--
``(1) In general.--Not later than March 1, 2011, and
biennially thereafter, the Comptroller General of the United
States shall submit to Congress and the Secretary a report on
the Program.
``(2) Requirements.--
``(A) In general.--Each report submitted under paragraph
(1) shall contain--
``(i) a detailed description of the Program, including a
detailed description of the impact the Program has had on
reducing premiums for health insurance coverage and
increasing the number of individuals with health insurance
coverage; and
``(ii) any other information or recommendations determined
appropriate by the Comptroller General.
``(B) Individual market.--The first report submitted under
paragraph (1) shall also contain recommendations regarding
expanding the Program to the individual market.

``SEC. 2206. DEFINITIONS.

``In this title:
``(1) Group health plan.--The term `group health plan' has
the meaning given such term by section 5000(b)(1) of the
Internal Revenue Code of 1986.
``(2) Individual market; small group market.--The terms
`individual market' and `small group market' have the
meanings given such terms by section 2791 of the Public
Health Service Act.
``(3) Office.--The term `Office' means the Office of
Federal Reinsurance established under section 2201.
``(4) Program.--The term `Program' means the Federal
Reinsurance Program for Catastrophic Health Care Costs under
this title.
``(5) Trust fund.--The term `Trust Fund' means the Federal
Reinsurance for Catastrophic Health Care Costs Trust Fund
established under section 2204.''.
(b) Funding Start-up Administrative Costs for Program.--
(1) In general.--There are appropriated to the Secretary of
Health and Human Services $200,000,000 to carry out the
provisions of, and amendments made by, this Act.
(2) Availability.--Amounts appropriated under paragraph (1)
shall remain available until September 30, 2009.

Mr. REED. Mr. President, I join my colleague, Senator Kerry, in
introducing the Reinsure America's Businesses Act of 2007. This
legislation represents a critical step forward in bringing affordable
health care to the uninsured and lowering the ever increasing costs of
health care for families and businesses.
The bill that we are introducing today proposes that the Federal
Government assume responsibility for the most burdensome risk for
employers, and in doing so helps to provide greater access to lower
priced health care. Under our legislation, the Federal Government will
reimburse employers for a significant portion of the costs of their
most ill employees--75 percent of medical bills in excess of $50,000.
In exchange, employers agree to offer all of their workers preventative
care and quality coverage.
At the heart of this bill lies the fact that 1 percent of patients
account for 25 percent of health care costs, and 20 percent of the
population that is catastrophically ill accounts for 80 percent of the
costs. Planning for the unfortunate chance that one falls into one of
these categories is precisely why individuals have health insurance.
Yet it is also the primary reason why many employers, particularly
small businesses where one critically ill individual can have a
tremendous influence on the

[[Page S5596]]

overall cost, do not offer their employees health insurance. Through
reinsurance, the Federal Government has an opportunity to absorb a
large portion of this risk and encourage more affordable and meaningful
employer sponsored health coverage. This legislation also eases the
burden on health insurance companies by making rate determinations more
predictable.
Federal reinsurance is an efficient use of Federal dollars because it
spreads the burden across employers, the Federal Government, and
employees, thereby lowering costs and increasing access to quality
health care. Reinsurance reduces health insurance premiums for
everyone; some estimates suggest as much as 10 percent. Actions to
decrease the cost of health care and improve access to care are crucial
if we are to combat ever-rising health care costs in this country. In
Rhode Island, from 2000 to 2006, premiums increased 75 percent while
median earnings went up only 23 percent. Uninsured rates have also
grown in Rhode Island with more than 13 percent of residents under age
65 with no health insurance, up from 8.1 percent in 1999. Rhode Island
is not unique; the entire country bears the burden of high health care
costs and increasingly declining access. This legislation lays the
groundwork for achieving our goal of making health care more affordable
and more accessible to every American.
I am pleased to join with my colleague in introducing this important
initiative and hope the Senate will give it prompt consideration.
______

By Mr. KENNEDY (for himself and Mr. Kerry):
S. 1302. A bill to amend title V of the Elementary and Secondary
Education Act of 1965 to encourage and support parent, family, and
community involvement in schools, to provide needed integrated services
and comprehensive supports to children, and to ensure that schools are
centers of communities, for the ultimate goal of assisting students to
stay in school, become successful learners, and improve academic
achievement; to the Committee on Health, Education, Labor, and
Pensions.
Mr. KENNEDY. Mr. President, I am pleased today to introduce the
Keeping Parents and Communities Engaged or Keeping PACE Act, to foster
greater involvement of parents in their children's education, engage
community partners in supporting the comprehensive learning needs of
students in school, as well as to address our Nation's high dropout
rate.
It is clear that engaged parents can make a positive difference in
students' achievement. Parents are their children's first teachers, and
they have immense influence over their children's attitudes, focus,
priorities and goals. Well-informed parents are more likely to be
involved, to ask questions, to suggest constructive changes and to make
a difference in their child's education. They deserve to know what
their children are learning and being tested on, what their children's
grades and assessment scores mean, and how assessment data may be used
for improvement. Informed and engaged parents can help turn around
struggling schools.
We crafted the No Child Left Behind Act to recognize parents as full
partners in their children's education. The Act includes essential
requirements to develop parent involvement policies and programs,
develop and release school report cards, and to establish a team of
parents and community representatives to construct a plan to improve
schools if they are identified as struggling. We should build on these
important reforms. But in the upcoming reauthorization of the law, we
must also explore new and innovative strategies to engage parents and
communities in helping kids succeed in school.
Better coordination among parents, schools, and the community can
also help create a network that enables and empowers students to take
advantage of every opportunity to learn. That's particularly important
for students needing the greatest help and attention in their learning
and those who need more challenging schoolwork to keep them engaged and
progressing, as well as students at risk of dropping out of school.
Today, more than one million students who enter the ninth grade fail to
receive a high school diploma 4 years later and approximately 7,000
students drop out of school every day. We've made great advances in
recent years to improve the education of every student, but it remains
clear that more must be done to respond to this challenge.
We must support and strengthen our elementary and secondary schools
and do more to attend to the learning and nonacademic needs of our most
at-risk students, which make such a difference in how well they master
their subjects. That means support for community programs to meet
children's social, intellectual, emotional, and physical needs. It
means making parent involvement a top priority, and offering support to
schools to involve parents and families more effectively in their
children's education, including postsecondary education planning.
The Keeping PACE Act will address these fundamental issues. This bill
amends the Elementary and Secondary Education Act of 1965 to encourage
and support parent, family, and community involvement in schools, to
provide needed supports and services to children, and to ensure that
schools are centers of communities.
Educators recognize, on the basis of abundant research and common
experience, that parental involvement is a critical element in
children's academic and social development. Unfortunately, as noted in
a recent report by Appleseed, too often, schools and districts continue
to face challenges that impede efforts to effectively advance parental
involvement. My bill enables States to award grants to local education
agencies to assist schools in hiring and maintaining Parent and
Community Outreach Coordinators. These coordinators will build critical
partnerships among families, schools, and the community. They'll work
with school principals, teachers, and staff to encourage parents to
become more involved in their child's education and give them the tools
necessary to become successful advocates for their children.
Last year, a Massachusetts pilot initiative placed 17 full-time
Family and Community Outreach Coordinators in Boston Public Schools.
The Coordinators were responsible for supporting families, teachers,
and the community in a common effort to help students excel
academically and socially.
Their efforts have worked. The Family and Community Outreach
Coordinator at the Condon School in Boston, Massachusetts, has offered
workshops for parents on middle school transition and math curriculum;
coordinated parent participation on the School Climate Committee, an
anti-bullying initiative at the school; helped teachers and parents
make connections for parent-teacher conferences; and brought in over
200 parents to participate in the fall open house, where some teachers
reported having contact with over 80 percent of their students'
families. The Coordinator has also leveraged donations to the school
through the generosity of local businesses.
The success of the coordinators led the Boston School Committee to
approve its budget for the next school year with the addition of 14
more full-time Family and Community Outreach Coordinators. All together
this means that almost 22 percent of Boston Public Schools will have a
coordinator by September 2007-2008.
The director of the Harvard Family Research Project notes that many
years of research confirm that ``now is the time . . . for action. The
question we must ask is, in addition to quality schools, what non-
school learning resources should we invest in and scale up to improve
educational outcomes, narrow achievement gaps, and equip our children
with the knowledge and skills needed to succeed in the complex and
global 21st century.''

The bill answers that question and responds directly to these needs
by creating new grants for community-based organizations to work in
partnership with schools to bring essential comprehensive and
integrated services to children in need. These support services may
include health care, counseling, social services, enrichment,
mentorship, and tutoring, services that can often spell the difference
between a dropout and a graduate.
Rather than giving teachers, counselors, and principals more to do as
they address the non-classroom needs

[[Page S5597]]

of students, every school should have a resource they can turn to for
help with identifying student needs and leveraging community services
to help all students succeed. We know that comprehensive, integrated
supportive services increase graduation rates and improve student
achievement. In one national report: 82 percent of tracked students
improved their attendance in school; 86 percent of tracked students had
fewer behavior incidents; 89 percent of tracked students had fewer
suspensions. In addition, 98 percent of tracked students stayed in
school and 85 percent of eligible seniors graduated. Students who are
identified as needing these services, but do not receive them are more
likely to drop out of school.
The Lucy Stone School in Boston, Massachusetts, demonstrates the
effectiveness of student supports on learning. The once failing school
took action and focused on improving core learning skills, a broad
array of enrichment activities and health and social supports. Lucy
Stone is making strong progress. Students in Grades 3 and 4 are passing
the literacy MCAS at rates well above the Boston Public School average
percentages, and are approaching State averages. Grade 4 math MCAS
passing rates are approaching Boston and State averages as well.
In other communities, diverse community partners have played an
important role in providing accelerated learning and mentoring
opportunities that have made all the difference for students.
For example, a comprehensive evaluation of nine schools in New
England found that classroom participation in community service outdoor
learning projects increased student engagement and retention of science
knowledge. And the ``Being Enthusiastic about Math and Science''
(BEAMS) enrichment program at the Jefferson National Lab in Virginia,
which serves 1,800 inner-city students and their teachers, has resulted
in increased achievement and attendance rates, and a better
understanding of academic subjects, careers and applications among
participating students.
The National Commission on Service Learning found that mentorships
and internships with caring adults in a workplace resulted in higher
grade point averages and better attendance than for students who spend
less time with adult mentors.
There is one particular organization that has a demonstrated track
record in helping leverage the integrated services and supports that
students need to succeed in school. Communities in Schools (CIS) is the
Nation's largest dropout prevention organization, and has a nearly 30-
year track record of helping connect students, families and schools
with supportive services to help them graduate and prepare for life.
With affiliates operating in 27 States and the District of Columbia,
Communities in Schools helps about 2 million students every year.
Community involvement means real help for children in need, and the
evidence shows. For instance:
In Georgia, CIS currently supports graduation coaches directly
serving approximately 37,000 high school students who are at risk of
dropping out.
In the wake of Hurricane Katrina, CIS stepped in to provide morning
classes and afternoon activities for students whose parents had lost
their social support systems after they were forced to relocate to
Houston, Texas.
There are also countless individual stories of community-based
integrated services making a difference. In Texas, CIS helped 14-year-
old Yeana Carbajal, who was born with cerebral palsy, to obtain proper
medical attention and social services, enabling her to return to school
after hip surgery when her doctors had told her that would be
impossible. Yeana is now back in school and thriving academically and
socially.
Another student, who at 14 became the primary caregiver of a mother
who eventually died with AIDS, overcame homelessness and became the
first in her family to graduate high school. A turning point for her
came when she participated in a career exploration program coordinated
through the community-based program office at her school. She
discovered her special talents in the culinary arts, and is now an
honor student at Johnson and Wales University.
Finally, a growing body of educational research suggests that student
achievement improves in environments where learning is a community
value, and where schools have the ability to address a broad range of
educational needs. Many school districts have gone even further to
respond to this research, by establishing full-service community
schools that directly involve parents, families, and the entire
community in education.
The Keeping PACE Act also responds to this research by providing new
avenues to establish and support full-service community schools. These
efforts have wide-ranging positive impacts, including ``better family
functioning and parental involvement, healthy youth development and
improved social behavior, improved academic achievement and learning
outcomes, and enhanced community life.'' Two prominent researchers in
the field further note, ``In community schools . . . schools are
transformed into much more than just a portfolio of programs and
services. They become a powerful agent for change in the lives of young
people and their families and improve the climate of the entire
school.''
This bill enables States to provide incentives to local education
agencies that coordinate with mayors, community-based organizations,
for-profit organizations and other community partners to re-design and
modernize their current school plans and facilities to better link
students with community resources. School districts across the country
are beginning to recognize the benefits of planning a school not only
as an academic center for students, but also as a neighborhood center
that serves the entire community. Designing schools from the onset to
leverage integrated services to students helps meet multiple local
needs such as educational, health, social service, and recreational
needs.
It's time for America to make a real commitment, and give real
opportunity and real fairness to address the comprehensive learning
needs of children and families, guarantee a place for parents and
families in schools, and provide real hope to our students most at-risk
of dropping out. Engaging parents and communities in the success of
students enrolled in our public schools is critical to the future and
prosperity of our entire Nation.
This bill is supported by 15 organizations representing education
communities. I ask unanimous consent that their letters of support be
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

Communities in Schools,

Alexandria, VA, April 16, 2007.
Dear Senator Kennedy: On behalf of Communities In Schools--
our national offices and our network of local affiliates in
27 states and District of Columbia--I would like to
congratulate you on the introduction of the Keeping Parents
and Communities Engaged (Keeping PACE) Act. For 30 years
Communities In Schools has been working to connect existing
community resources with schools to improve student
achievement. This legislation provides much needed structure,
funding, and support at the federal level for critical
community engagement activities in our nation's public
schools. The Keeping PACE Act's provisions are research-
based, effective, and fiscally responsible. Communities In
Schools strongly supports this legislation.
While much of the rhetoric in education is about the
problems in the system, the Keeping PACE Act offers a real
solution to help to lower the high school dropout rate and
raise the achievement level of students in need. Too often,
students at risk of dropping out or not achieving
academically have the talent, intelligence, and potential to
achieve, but they need assistance to address challenges that
may block their way. The Keeping PACE Act's three components
provide a strong foundation to help students--particularly
those at risk of dropping out of school--with their
challenges by supporting: grants to states to support parent
and community outreach coordinators in schools; grants to
community-based organizations to engage schools and provide
integrated services; and grants to help make schools the
centers of their communities.
Communities In Schools is particularly pleased that the
Keeping PACE Act provides support for community-based
organizations that provide integrated student services.
Community-based, integrated student services are
interventions that improve student achievement by connecting
community resources--such as mentoring, service-learning, and
afterschool programs--with both the academic and social
service needs of students. Programs focus energy, resources,
and time on shared school and student goals. The core
strategy of community-based, integrated student services is
to leverage existing community resources and effectively

[[Page S5598]]

link these resources with students in need in order to
address whatever barriers the students may face. This
leverages a greater return on federal, state, and local
investments that are already being made in education. Without
coordination, however, many students cannot benefit from
these programs. The Keeping PACE Act supports funding for
this critical coordination and effectively leverages current
federal, state, and local investments in education.
Importantly, research and experience establish that the
model supported by the Keeping PACE Act works in all types of
schools across the country--urban, rural, and suburban. By
supporting community-based, integrated student services and
parental involvement, the Keeping PACE Act provides strong
support for a very effective strategy to address our nation's
dropout rate and the achievement gap in communities across
the country.
Thank you again for your leadership the Keeping PACE Act.
This very important bill will go along way toward supporting
the services that young people need and will make a huge
difference in lowering the dropout rate and closing the
achievement gap.
Sincerely,
Daniel J. Cardinali,
President.
____

Center for American

Progress Action Fund,

Washington, DC, April 16, 2007.
Hon. Edward M. Kennedy,
Chairman, Committee on Health, Education, Labor and Pensions,
Dirksen Senate Office Building, Washington, DC.
Dear Senator Kennedy: This letter is written to express the
support of the Center for American Progress Action Fund for
your PACE Act of 2007. The PACE Act takes great strides
towards facilitating community support for low-income
schools, a crucial step towards closing the achievement gap
and providing all American children with equal educational
opportunity.
Schools, families, communities, and children themselves all
play important roles in promoting student learning. Children
are more likely to do their best when all these players work
together to ensure that challenges students face outside the
classroom are addressed, rather than remaining as ongoing
barriers to student learning and achievement.
Community schools reshape the structure of traditional
schools and recast their roles in the community by explicitly
positioning schools, families and communities as vital
partners in fostering the health, well-being and academic
growth of children. These schools help address the out-of-
school needs of students and their families so that young
people can focus on learning when they are in the classroom,
and also take advantage of nurturing opportunities outside of
the classroom.
Providing supplemental support services to students and
their families has been shown to lead to real improvements in
their well-being. Researchers have documented that students
in community schools demonstrate positive outcomes, including
higher test scores, fewer disciplinary problems, improved
attendance and graduation rates, and diminished incidence of
self-destructive behaviors.
We are pleased that the report by the Renewing Our Schools,
Securing Our Future National Task Force on Public Education,
issued by our sister organization, the Center for American
Progress, has influenced the drafting of this legislation,
and that the PACE Act reflects the community schools
recommendations in that report. It is our hope that Congress
and the nation as a whole will embrace the ideas in this
important piece of legislation.
Best Regards,
John Podesta,
President and CEO.
____

Citizen Schools,

Boston, MA, April 13, 2007.
Hon. Edward M. Kennedy,
U.S. Senate,
Washington, DC.
Dear Senator Kennedy: I am writing in support of the
Keeping Parents and Communities Engaged (Keeping PACE) Act of
2007. The Keeping PACE Act proposes a promising set of
initiatives to strengthen two areas that are key to student
success: parental involvement and coordinated community
support.
At Citizen Schools, we see the importance of parental
engagement and integrated student support systems every day.
Citizen Schools operates a national network of after-school
programs that advance student achievement and mobilize adult
volunteers to teach hands-on apprenticeship courses. Our
programs blend real-world learning projects with rigorous
academic and leadership development activities, preparing
students in the middle grades for success in high school,
college, the workforce, and civic life. Citizen Schools
currently serves 3,000 students and engages 2,400 volunteers
in California, Massachusetts, New Jersey, North Carolina and
Texas. In Massachusetts, our programs operate in Boston,
Lowell, Malden, New Bedford, Worcester, and Springfield.
Citizen Schools works intensively with low-income students,
most of whom are struggling academically. A rigorous
independent evaluation has reported that Citizen Schools'
students significantly outperformed a matched comparison
group on key metrics of school success and advancement,
including grades and standardized test scores. These
achievements would not be possible without the engagement and
support of students' families and communities.
Our program also brings together students and adult
volunteers, and we have seen the rewards that both groups
derive from this opportunity to interact. As such, Citizen
Schools wholeheartedly supports efforts that reduce the
barriers between schools and communities.
The Keeping PACE Act will produce positive outcomes for our
neediest students by facilitating parent involvement and
access to community resources. Thank you for your leadership
on this important issue.
Sincerely,
Eric Schwarz,
President and CEO.
____

National Association

for Gifted Children,

Washington, DC, April 11, 2007.
Hon. Edward M. Kennedy,
Chairman, Senate Committee on Health, Education, Labor and
Pensions, Dirksen Senate Office Building, Washington, DC.
Dear Chairman Kennedy: The National Association for Gifted
Children (NAGC), the largest organization devoted to meeting
the needs of the nation's more than three million gifted and
talented students, is writing to express its support of the
Keeping Parents and Communities Engaged (Keeping PACE) Act.
In high-poverty school districts, little attention is being
paid to finding and supporting the children who meet the
requirements of NCLB-mandated tests and are ready to move to
higher levels of achievement. Many low-income promising
students may be trapped in schools that do not acknowledge
the presence of gifted children, do not offer appropriate
level of intellectual stimulation, and do not provide the
services necessary to encourage talent development. This
failure to address the learning needs of high-ability
children is a tragedy for the children, their families,
communities, and the nation.
The Keeping PACE Act will be a catalyst for developing the
partnerships necessary to support bright children from
disadvantaged backgrounds. The Act establishes an integrated
service strategy for students and their families in several
key areas--including mentoring, tutoring, and enrichment--
which go a long to supporting the intellectual appetites of
students who are unchallenged in the classroom, who want to
explore in-depth learning on their own, or who need safe
haven from negative peer attitudes towards academic
achievement. We also applaud the Act's focus on assisting
students and parents in planning for post-secondary
educational opportunities. Many of these bright children will
be the first in their families to pursue post-secondary
options and they will need assistance to make appropriate
decisions and to understand the range of grant and other
funding opportunities available to high-achieving students.
NAGC is invested in building alliances with other national
organizations that serve low-income learners and has made a
strong commitment to enhancing the competency of teachers who
work with underserved populations of students. We look
forward to working with you and your office in support of
this legislation and to strengthen NCLB in other ways for
gifted and talented students.
Sincerely,
Nancy Green,
Executive Director.
____

National Collaboration

for Youth,

Washington, DC, March 26, 2007.
Hon. Edward M. Kennedy,
Russell Senate Office Building,
Washington, DC.
Dear Chairman Kennedy: The National Collaboration for Youth
is writing to express its support of the Keeping Parents and
Communities Engaged (Keeping PACE) Act.
The National Collaboration for Youth membership comprises
national youth-serving organizations that have a presence in
almost every community in the United States. The signers of
this letter include community-based organizations, and
organizations that conduct research, evaluation, and provide
technical assistance to communities and schools across the
country. As advocates striving to improve the conditions of
young people in America, we believe that student achievement
is enhanced when parents, caregivers and communities are
engaged in education.
Research and experience demonstrate that improving the
interaction between school and community, and providing
integrated services and supports for students and their
families in such areas as healthcare, employment, mentoring,
tutoring, enrichment and recreation, will help to serve the
intellectual, social, emotional, and physical well-being of
students. Access to these and other related non-academic
needs pave the way for the successful education of a young
person. By incorporating family and community engagement with
schools, the Keeping PACE Act will strengthen the Elementary
and Secondary Education Act, and will be an important tool in
reducing the school dropout rate and closing the achievement
gap.
We look forward to continuing to work with you and your
office to strengthen the goals of this legislation, and move
it towards enactment. Please do not hesitate to contact us if
we can be of any assistance.

[[Page S5599]]

Thank you for your leadership and public service.
Sincerely,
America's Promise--The Alliance for Youth, Marguerite
Kondracke, President and CEO.
Big Brothers Big Sisters of America, Judy Vredenburgh,
President and CEO.
Camp Fire USA, Jill Pasewalk, National President and CEO.
Communities In Schools, Inc., Daniel Cardinali, President.
First Focus, Bruce Lesley, President.
Forum for Youth Investment, Karen J. Pittman, Executive
Director.
GLSEN--The Gay Lesbian and Straight Education Network,
Kevin Jennings, Executive Director.
Leadership & Renewal Outfitters, Janet R. Wakefield, CEO.
MENTOR/National Mentoring Partnership, Gail Manza,
Executive Director.
National Collaboration for Youth, Irv Katz, President and
CEO.
National Network For Youth, Victoria Wagner, President and
CEO.
YMCA of the USA, Neil Nicoll, President and CEO.
____

First Focus,

Alexandria, VA, March 23, 2007.
Hon. Edward Kennedy,
Chairman, Senate Committee on Health, Education, Labor and
Pensions, Dirksen Senate Office Building, Washington, DC.
Dear Mr. Chairman: It is a pleasure to formally endorse the
Keeping Parents and Communities Engaged Act. This important
legislation recognizes the critical role played by families
and communities in improving the academic success of our
students. We applaud this bill and look forward to working
with you toward its enactment.
First Focus believes, and research demonstrates, that we
must meet the needs of students in and outside the classroom
in order to bolster their success in school. A study
commissioned by the America's Promise Alliance analyzed the
impact of having five key resources in children's lives:
caring adults, safe places, a healthy start, an effective
education, and opportunities to help others. Students with
four or five of these resources were twice as likely as their
peers with zero or one resource to get As in school, 40
percent more likely to volunteer, and twice as likely to
avoid violence. The Keeping PACE Act is crucial because it
will help to connect young people to an array of services and
supports, thereby increasing their access to these and other
important resources.
The debate surrounding the reauthorization of the No Child
Left Behind Act will appropriately center on issues
surrounding accountability, teacher quality, national
standards and other important topics. We thank you for
raising the importance of parent and community engagement as
well. Every child can succeed, but we must provide them with
the tools to do so. By building stronger connections between
parents, schools, and communities, the Keeping PACE Act will
help the nation be stronger supporters of our students.
Chairman Kennedy, thank you for your leadership. We look
forward to working with you.
Sincerely,
Bruce Lesley,
President.
______

By Mr. McCAIN (for himself and Mr. Kyl):
S. 1304. A bill to amend the National Trails System Act to designate
the Arizona National Scenic Trail; to the Committee on Energy and
Natural Resources.
Mr. McCAIN. Mr. President, I am pleased to be joined today by Senator
Kyl in introducing the Arizona Trail Feasibility National Scenic Trail
Act. This bill would designate the Arizona Trail as a National Scenic
Trail. A similar bill is being introduced in the House of
Representatives by Congresswoman Giffords.
The Arizona Trail is a beautifully diverse stretch of public lands,
mountains, canyons, deserts, forests, historic sites, and communities.
The Trail is approximately 807 miles long and begins at the Coronado
National Memorial on the U.S.-Mexico border and ends in the Bureau of
Land Management's Arizona Strip District on the Utah border near the
Grand Canyon. In between these two points, the trail winds through some
of the most rugged, spectacular scenery in the Western United States.
The corridor for the Arizona Trail encompasses the wide range of
ecological diversity in the State, and incorporates a host of existing
trails into one continuous trail. In fact, the trail route is so
topographically diverse that a person can hike from the Sonoran Desert
to Alpine forests in 1 day.
For over a decade, more than 16 Federal, State, and local agencies,
as well as community and business organizations, have partnered to
create, develop, and manage the Arizona Trail. Through their combined
efforts, these agencies and the members of the Arizona Trail
Association have completed over 90 percent of the longest contiguous
land-based trail in the State of Arizona. Designating the Arizona Trail
as a National Scenic Trail would help streamline the management of the
high-use trail to ensure that this pristine stretch of diverse land is
preserved for future generations to enjoy.
Since 1968, when the National Trails System Act was established,
Congress has designated over 20 National trails. Before a trail
receives a national designation, a Federal study is typically required
to assess the feasibility of establishing a trail route. The Arizona
Trail doesn't require a feasibility study because it's virtually
complete with less than 60 miles left to build and sign. All but 1
percent of the trail resides on public land, and the unfinished
segments don't involve private property. The trail meets the criteria
to be labeled a National Scenic Trail and already appears on all
Arizona State maps. Therefore, the Congress has reason to forego an
unnecessary and costly feasibility study and proceed straight to
National Scenic Trail designation.
The Arizona Trail is known throughout the State as boon to outdoor
enthusiasts. The Arizona State Parks recently released data showing
that two-thirds of Arizonans consider themselves trail users. Millions
of visitors also use Arizona's trails each year. In one of the fastest-
growing States in the U.S., the designation of the Arizona Trail as a
National Scenic Trail would ensure the preservation of a corridor of
open space for hikers, mountain bicyclists, cross country skiers,
snowshoers, eco-tourists, equestrians, and joggers.
I urge my colleagues to support the passage of this legislation.
Mr. KYL. Mr. President, today I am pleased to join with Senator
McCain in introducing the Arizona National Scenic Trail Act. This bill
would amend the National Trails System Act to designate the Arizona
Trail as a national scenic trail. In 1968, Congress established the
National Trails System to promote the preservation of historical
resources and outdoor areas. National scenic and historic trails may be
designated only by an act of Congress.
This is not a new proposal. Senator McCain and I have been working on
legislation relating to the Arizona Trail since the 108th Congress.
Past legislation focused on conducting a feasibility study to determine
whether the trail is physically possible and financially feasible. A
feasibility study is generally the first step toward national trail
designation, but such legislation was not successfully enacted. In the
meantime the Arizona Trail Association and its State and Federal
partners have continued to develop the trail with national designation
in mind. Senator McCain and I believe a feasibility study is not
necessary. Let me explain: the Arizona Trail already exists. It extends
over 800 continuous miles and is over 90 percent complete--clearly, it
is physically possible. It is also financially feasible, as this trail
does not require a single land acquisition, and commitments already
exist to manage the trail and complete the remaining few miles of trail
construction. This trail is ready for designation. In fact, the Arizona
Trail is farther along than many national scenic trails that have
already been designated by Congress.
The Arizona Trail is highly deserving of national designation. The
trail is a roller coaster ride through the wide range of ecological
diversity in the State. The trail corridor begins at the Coronado
National Memorial on the U.S.-Mexico border and winds some 800 miles,
ending on the Bureau of Land Management's Arizona Strip District on the
Utah border. Between these two points, it invites recreationists to
explore the State's most renowned mountains, canyons, deserts and
forests, including the Grand Canyon and the Sonora Desert. This trail
is unique in that it maximizes the incorporation of already existing
public trails into one continuous trail to showcase some of the most
spectacular scenery in the West.
Over 16 Federal, State and local agencies, as well as numerous
community and business organizations and countless volunteers, have
cooperated to develop and sustain the trail as a recreational resource
for future generations. Designating the Arizona Trail

[[Page S5600]]

as a national scenic tail will help streamline its management, boost
tourism and recreation, and preserve a magnificent natural, cultural,
and historical experience of the American West. I urge my colleagues to
enact this legislation at the earliest possible date.
______

By Mr. COLEMAN (for himself, Mr. Levin, and Mrs. McCaskill):
S. 1307. A bill to Include Medicare provider payments in the Federal
Payment Levy Program, to require the Department of Health and Human
Services to offset Medicare provider payments by the amount of the
provider's delinquent Federal debt, and for other purposes; to the
Committee on Finance.
Mr. COLEMAN. Mr. President, I rise to introduce the Medicare Provider
Accountability Act on behalf of myself, and my colleagues Senator Levin
and Senator McCaskill. This bill is a direct result of the recent
bipartisan investigation by the Permanent Subcommittee on
Investigations exposing Medicare physicians and related providers who
cheat on their taxes. At our March 20 hearing, entitled ``Medicare
Doctors Who Cheat On Their Taxes,'' the Subcommittee presented evidence
that more than 21,000 physicians and other providers received millions
of dollars through the Centers for Medicare and Medicaid Services, CMS,
under Medicare Part B, even though they collectively owe more than $1.3
billion in undisputed Federal taxes as of September 30, 2006.
I think it is important to note that the vast majority of physicians
are working hard to provide services to Medicare beneficiaries. In
fact, I know that many doctors struggle with on-going reductions in
payments under the so-called Sustainable Growth Rate.
The focus of PSI's ongoing investigations has been tax fraud and
government contractors. CMS is the only Federal agency of considerable
size that has resisted participating in the Federal Payment Levy
Program that I will describe later. As we looked into CMS, we found
that there were physicians receiving payments from the government while
they simultaneously withheld money from the government by cheating on
taxes, and failing to pay child support or student loan debts. Through
their actions, these ``bad apples'' are hurting efforts to promote the
longterm sustainability of the Medicare Program.
What is disturbing is that the delinquent doctors identified by our
investigation were not hardship cases but rather folks living the
``good life.'' This minority of physicians live in multi-million-dollar
homes, own luxury vehicles and pleasure boats, and gamble with millions
of dollars, yet still cheat the government.
Some of the most egregious examples that GAO discovered include the
following:
An ambulance company received more than $1 million from Medicare in
just the first 9 months of 2005, although it owed more than $11 million
in back taxes.
One doctor has refused to pay Federal income taxes since the 1970s
and now owes more than $3 million in unpaid Federal taxes, and more
than $1 million to another Federal agency. He was paid approximately
$100,000 by Medicare in the first 9 months of 2005. He tried to hide
his assets by attempting to transfer property to his children.
Another physician who owes more than $1 million, primarily as payroll
taxes withheld from his employees, received more than $1 million from
Medicare between January and September 2005. He was flaunting his
illegally gained windfall with a million-dollar home, 58-foot yacht,
and ownership of several night clubs. His recently reported income is
half a million dollars, but the compromise offer he made to the IRS
only covers the penalty for nonpayment and not the overdue taxes
themselves.

Another physician whose medical license is on probation owes more
than $400,000 in unpaid Federal taxes. Despite this debt, he purchased
a luxury vehicle predominantly with cash, deposited tens of thousands
of dollars in cash in such a way as to avoid mandatory reporting to the
IRS, and gambled away millions of dollars. Although he did report more
than $600,000 in net profits for 2 recent years, he still managed to
fall behind in his child support payments by tens of thousands of
dollars and to default on his installment agreement with the IRS.
Unfortunately, the list goes on and on. Worse, as if failing to pay
their taxes was not a sufficient insult to American taxpayers, Medicare
providers also owed $33 million in child support, $27 million in unpaid
student loans, $114 million owed to other Federal agencies, and $22
million in unpaid state income taxes.
While these figures and case studies are obviously disturbing, the
good news is that the Federal Government has two marvelous programs for
recovering Federal debt from Federal payments, the Federal Payment Levy
Program, FPLP, for tax debt, and the Treasury Offset Program, TOP, for
non-tax debt, such as delinquent student loans, child support, and
money owed Federal agencies. The Financial Management Service, FMS,
handles both of these programs and matches pending payments from the
Federal Government against outstanding Federal tax debt in the case of
FPLP, and against other outstanding federal debt in TOP. If such debt
exists, a levy of 15 percent or more is imposed upon each payment made
to the delinquent taxpayer until that debt is recovered. FMS currently
screens most Federal payments for unpaid taxes, including salaries and
payments to contractors and vendors.
The Government Accountability Office specifically recommended that
CMS confer with the IRS and FMS to figure out how to get Medicare
payments into the levy program. That recommendation came in six years
ago, in 2001, so it is clear that CMS and the other agencies have been
``on notice'' about this very issue for years. In fact, although CMS
has been sending information on payments to Medicare Part C and D
providers to FMS for matching in FPLP, it has failed to include the
more than $300 billion in payments to Part A and B providers.
As a result, the Federal Government has lost countless opportunities
to levy Medicare payments made to tax-delinquent doctors and other
suppliers. The GAO estimated that, if CMS had participated in the levy
program, the government could have recouped anywhere between $50
million and $140 million of unpaid Federal taxes from these Medicare
tax-cheats in just the first nine months of 2005 alone. That does not
include potential millions recouped for delinquent student loans,
unpaid child support, and back-taxes owed to States.
But we are not in the blame business, we are in the problem-solving
business. So, the paramount question is how to fix this mess. Make no
mistake: these are complex problems, but I am confident that we can fix
them. This legislation is a good start.
The bill, entitled the Medicare Provider Accountability Act, has
three prongs to assist the Federal government with the collection of
these outstanding debts. It establishes a timetable for CMS to join the
Federal Payment Levy Program for all payments to Medicare providers,
and expressly authorizes CMS to participate in the Treasury Offset
Program to collect nontax debt. Finally, it enables the IRS to begin
levying payments earlier in the notice process.
First, this bill sets a deadline by which CMS must fully participate
in the FPLP. Fifty percent of the payments to Part A and B providers
must be sent to FMS for matching tax debt under FPLP within 1 year of
enactment. Within 2 years of enactment, every Medicare provider
payment, regardless of Part, will be checked by FMS under FPLP for
outstanding Federal tax debt.
Second, this bill gives CMS the authority to submit payments to its
providers to TOP, which it had previously been unable to do. CMS and
FMS testified at the hearing that CMS cannot legally participate in TOP
as a Federal disbursing authority, and that to do so will require a
Legislative fix. This bill explicitly includes payments to Medicare
providers as disbursements that can be offset, allowing for the
recovery of delinquent student loans, overdue child support, debts owed
to other federal agencies and state taxes.
In addition, this legislation enables IRS to levy Federal payments to
recover delinquent tax debt earlier in the process. Currently, only
about half of the $140 billion in tax debt eligible for

[[Page S5601]]

matching is ``turned on'' to allow FMS to begin levying payments
through FPLP. This is a result of IRS's current procedure, sending four
computer-generated notices followed by a Collection Due Process, CDP,
notice. Although the delinquent taxpayer can enter a payment plan or
challenge the amount throughout the process, the formal appeals process
begins only after all of those notices are issued. This protracted
process allows a delinquent taxpayer to drag out the process and
prevent automatic levies anywhere from months to years. An additional
problem beyond the delay is that by the time the appeals process
concludes, the contractor may no longer be receiving Federal payments.
This provision of the bill accelerates the collection process, enabling
a postlevy appeals process, whereby the IRS can begin to levy Federal
payments prior to the CDP notice. To be clear, this would permit the
Government to begin levying payments earlier, while still preserving
the taxpayer's right to appeal. This will not affect levies on third
parties.
Congress has spent much of this session focusing on health care. We
all know that we have a crisis looming with Medicare. In order to
ensure the long term sustainability of the program, we need to be sure
that the money that is going out through this program is being spent
efficiently and effectively. We also need to be sure that the money
that is coming into this program through our taxes is being collected
efficiently and effectively. They are part and parcel of the same
problem. As we look for money to spend on programs to benefit our most
vulnerable, this legislation can go a long way to identifying possible
sources.
I would especially like to thank Chairman Levin for his ongoing
support of our efforts to address those who receive Federal payments
without paying their taxes. This is truly a bipartisan effort and a
bipartisan bill in its writing and its sponsorship.
Mr. President, 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. 1307

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 ``Medicare Provider
Accountability Act''.

SEC. 2. INCLUSION OF MEDICARE PROVIDER PAYMENTS IN FEDERAL
PAYMENT LEVY PROGRAM.

(a) In General.--The Centers for Medicare and Medicaid
Services shall take all necessary steps to participate in the
Federal Payment Levy Program under section 6331(h) of the
Internal Revenue Code of 1986 as soon as possible and shall
ensure that--
(1) at least 50 percent of all payments under parts A and B
of title XVIII of the Social Security Act are processed
through such program within one year of the date of enactment
of this Act, and
(2) all remaining payments under such parts A and B are
processed through such program within two years of such date.
(b) Assistance.--The Financial Management Service and the
Internal Revenue Service shall provide assistance to the
Centers for Medicare and Medicaid Services to ensure that all
payments described in subsection (a) are included in the
Federal Payment Levy Program by the deadlines specified in
that subsection.

SEC. 3. APPLICATION OF ADMINISTRATIVE OFFSET PROVISIONS TO
MEDICARE PROVIDER PAYMENTS.

(a) In General.--Section 3716 of title 31, United States
Code, is amended--
(1) by inserting ``the Department of Health and Human
Services,'' after ``United States Postal Service,'' in
subsection (c)(1)(A), and
(2) by adding at the end of subsection (c)(3) the following
new subparagraph:
``(D) This section shall apply to claims or debts, and to
amounts payable, under title XVIII of the Social Security
Act.''.
(b) Effective Date.--The amendments made by this section
shall apply to payments made after the date of enactment of
this Act.

SEC. 4. STREAMLINING TAX LEVIES ON FEDERAL PAYMENTS.

(a) In General.--Section 6330(f) of the Internal Revenue
Code of 1986 (relating to jeopardy and State refund
collection) is amended--
(1) by striking ``or'' at the end of paragraph (1),
(2) by striking the comma at the end of paragraph (2) and
inserting ``; or'',
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the Secretary has approved a levy, including a
continuing levy under section 6331(h), on specified payments,
as defined in section 6331(h)(2),'', and
(4) by striking the heading and inserting ``Jeopardy, State
Refund, and Collection From Federal Payments''.
(b) Effective Date.--The amendments made by this section
shall apply to levies made after the date of enactment of
this Act.

Mr. LEVIN. Mr. President, I join today with my colleagues, Senator
Coleman and Senator McCaskill, in introducing the Medicare Provider
Accountability Act. This bill targets Medicare, a program which is
indispensable to the health of our citizens, because some Medicare
service providers are profiting from the program while abusing the
federal tax system. The facts show that, while the vast majority of
Medicare health care providers are honest, tax-paying citizens, others
are getting paid with taxpayer dollars while, at the same time, failing
to pay their taxes.
Legislation to stop this abuse is a product of the work of the
Permanent Subcommittee on Investigations, on which I serve as Chairman
and Senator Coleman serves as the Ranking Member. On March 20, 2007, a
Subcommittee hearing presented testimony from the Government
Accountability Office (GAO) showing that about 21,000 Medicare Part B
health care providers, including doctors, ambulance companies, and
medical laboratories, collectively owe more than $1 billion in
delinquent taxes. GAO also determined that, despite this pending tax
debt, during the first 9 months of 2005 alone, these health care
providers had received payments on Medicare claims totaling around $140
million. In other words, these providers were stuffing taxpayer dollars
in their pockets at the same time they were stiffing Uncle Sam by not
paying their taxes.
Federal programs exist to stop this type of abuse. One key program is
the Federal Payment Levy Program, which was established about ten years
ago to enable the Federal government to identify federal payments being
made to tax delinquents, and authorize the withholding of a portion of
those taxpayer dollars to apply to the person's tax debt. That program
has successfully collected taxes from federal payments made through the
Treasury Department and by agencies like the Defense Department who
screen their own payments to contractors through Treasury's Financial
Management Service.
As our March hearing demonstrated, however, despite a legal
requirement to do so, The Centers for Medicare and Medicaid Services
(CMS) have never participated in the tax levy program with respect to
Medicare Part A and B payments. This failure means that, year after
year, as much as $300 billion in Federal Medicare payments have not
been screened for unpaid taxes. The first substantive provision of our
bill would redress this situation by mandating CMS to bring all
Medicare part A and B payments into the Federal Payment Levy Program
over the next two years.
The second part of our bill would enable CMS to participate in a
similar automated program, known as the Treasury Offset Program, to
collect non-tax debt, such as unpaid student loans and child support.
GAO has determined that certain Medicare health care providers
collectively owe hundreds of millions of dollars in student loans,
child support, and unpaid state taxes that could be collected through
administrative offsets.
The third and final part of our bill would eliminate a barrier to
including a large part of IRS's uncollected tax assessments in the
Federal Payment Levy Program for collection from Medicare provider
payments, as well as other federal contractor payments. Right now, for
a variety of legal and technical reasons, only 45 percent of the tax
debt assessed but still uncollected in 2006 was actually made subject
to levy under the federal program. In 2006, over half of this assessed
tax debt--some $67 billion--was never ``turned on'' for actual
collection under the tax levy program. Now, $67 billion is a big
number, even by Washington standards.
One key reason that this tax debt was not ``turned on'' for
collection by levy is that many of the accounts had not reached the
stage in their processing where the required notice of intent to levy
had been sent to the taxpayer. Until that notice is sent and the
taxpayer has exhausted all rights of appeal available under the tax
law, the

[[Page S5602]]

IRS is currently barred from placing a tax levy on the taxpayer's
property. In the case of Medicare providers and other federal
contractors, that means federal dollars continue to go into their
pockets, without any withholding, despite their unpaid taxes.
While it may be appropriate to delay tax levies on most types of
taxpayer property until a taxpayer's appeals are exhausted, it makes no
sense to keep sending taxpayer dollars to a tax delinquent Medicare
provider or other federal contractor while they are appealing the tax
assessment. Withholding should be allowed when it is taxpayer dollars
that are being paid to the tax delinquent. That's why our bill would
create a special rule for federal payments, allowing a tax levy to be
initiated and continue in effect, while the taxpayer's appeal goes
forward. The taxpayer would retain the same due process rights, but a
tax levy would be allowed to begin earlier in the administrative
process; it would no longer have to wait until all of the taxpayer's
appeal rights were exhausted. For property other than federal payments,
the bill would maintain the current system, requiring a pre-levy notice
and exhausted appeal rights before the property could be levied.
The vast majority of Medicare providers render valuable services to
their patients, and they do so while paying their taxes. These honest
health care providers are put at a competitive disadvantage by the
Medicare tax cheats who reduce their operating costs by failing to pay
taxes. Besides hurting honest businesses, this type of tax dodging
hurts our country by undermining the fairness of our tax system and by
forcing honest taxpayers to make up the shortfall needed to pay for
basic federal protections--like health care. When these tax delinquents
also receive large payments of federal funds, it adds insult to injury.
We must force these tax dodgers to pay their tax debt, and a key tool
is to subject any federal payments they receive to an effective tax
levy program.
The Medicare Providers Accountability Act would target those tax
dodgers by strengthening the tax levy program and subjecting additional
hundreds of billions of dollars in federal payments each year to
screening for unpaid taxes. An improved tax levy program would, in
turn, strengthen federal tax enforcement, take a load off the shoulders
of honest taxpayers, and reduce the tax gap. I urge my colleagues to
join us in supporting the bill's enactment.
I ask unanimous consent that my remarks follow those of Senator
Coleman in today's Congressional Record.
______

By Mr. SCHUMER (for himself, Mr. Lott, and Mr. Conrad):
S. 1310. A bill to amend title XVIII of the Social Security Act to
provide for an extension of increased payments for ground ambulance
services under the Medicare program; to the Committee on Finance.
Mr. SCHUMER. Mr. President, today I, along with Senators Lott and
Conrad, introduce the Medicare Ambulance Payment Extension Act. Without
this legislation, ambulance service providers stand to lose $306
million in Medicare reimbursement in 2008 and 2009 in addition to the
nearly $150 million they will lose this year. Our legislation will
restore $341 million in Medicare reimbursement with a 5 percent
increase in payments for 2008 and 2009.
Ambulance services are a vital component of the health care and
emergency response systems of our Nation. Unfortunately, ambulance
services providers are being significantly under-funded in providing
their critical services to Medicare patients. We need to ensure that
our ambulance service providers have the financial resources necessary
to provide all Americans with high quality, life-saving services.
Fortunately, in the Medicare Modernization Act of 2003, MMA, Congress
implemented several provisions to provide temporary relief to help
struggling ambulance service providers. The MMA ambulance provisions
provided short-term relief through 1 percent urban and 2 percent rural
increases, a mileage rate increase for long trips, a payment boost for
ambulance transports in extremely rural areas, and a regional
adjustment that helped a majority of providers depending on their
state. While the rural payment boost and long trip increase are
temporarily still intact, the 1 percent urban and 2 percent rural
increases expired at the end of last year and the regional adjustment
has dropped from 80 percent to only 20 percent of payments. If Congress
does not act, ambulance service providers will lose over $450 million
in relief from 2007 through 2009.
Ambulance service providers cannot afford to face decreased
reimbursement in the coming years. Ambulances services respond to not
only 911 calls and nonemergency requests but also as first responders
to natural disasters and acts of terrorism. Medicare patients account
for approximately 45 percent of the call volume of an ambulance
operation. Ambulance service providers cannot afford to have half of
their transports reimbursed at below the cost of providing services.
While all health care providers face reimbursement challenges,
ambulance service providers are required by law to respond to a plea
for emergency medical care, regardless of whether the provider will
recoup the full, if any, cost of the service. This additional
responsibility along with the requirement that ambulance service
providers accept the Medicare ambulance fee schedule rate as payment in
full has further deteriorated the financial stability of ambulance
operations. With increased focus on ensuring that our first responders
are prepared in the event of a terrorist attack or national disaster,
we should be bolstering, not deteriorating, this health care safety
net.
The Medicare Ambulance Payment Extension Act will ensure that
patients across America will continue to have access to critical
ambulance services. We urge our colleagues to support this legislation,
and I look forward to its passage this year.
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. 1310

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 ``Medicare Ambulance Payment
Extension Act''.

SEC. 2. EXTENSION OF INCREASED MEDICARE PAYMENTS FOR GROUND
AMBULANCE SERVICES.

Section 1834(l)(13) of the Social Security Act (42 U.S.C.
1395m(l)(13)) is amended--
(1) in subparagraph (A), in the heading, by striking ``In
general'' and inserting ``For the second half of 2004 and for
2005 and 2006'';
(2) by redesignating subparagraph (B) as subparagraph (C);
(3) by inserting the following after subparagraph (A):
``(B) For 2008 and 2009.--After computing the rates with
respect to ground ambulance services under the other
applicable provisions of this subsection, in the case of such
services furnished on or after January 1, 2008, and before
January 1, 2010, the fee schedule established under this
section shall provide that the rate for the service otherwise
established, after application of any increase under
paragraphs (11) and (12), shall be increased by 5 percent.'';
and
(4) in subparagraph (C), as redesignated by paragraph (2)--
(A) in the heading, by striking ``Application of increased
payments after 2006'' and inserting ``No effect on subsequent
periods''; and
(B) by adding at the end the following new sentence: ``The
increased payments under subparagraph (B) shall not be taken
into account in calculating payments for services furnished
after the period specified in such subparagraph.''.

____________________