[Congressional Record Volume 154, Number 122 (Thursday, July 24, 2008)]
[Senate]
[Pages S7280-S7301]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. LEAHY (for himself, Mr. Specter, Mr. Bayh, Mr. Voinovich, 
        Mrs. Feinstein, and Mr. Cornyn):
  S. 3325. A bill to enhance remedies for violations of intellectual 
property laws, and for other purposes; to the Committee on the 
Judiciary.
  Mr. LEAHY. Mr. President, before I was a Senator, I was a prosecutor, 
as the Chittenden County State's Attorney for 8 years, I prosecuted all 
varieties of crime in Vermont. I know first hand how important it is 
for criminal investigators, and the lawyers who prosecute those cases, 
to have a full arsenal of legal tools to ensure that justice is done. I 
also know how important the intellectual property industries are to our 
economy, and to our position as a global leader. In Vermont, Hubbardton 
Forge makes beautiful, trademarked lamps. The Vermont Teddy Bear 
Company relies heavily on its patented products. Likewise, SB 
Electronics needs patents for its film capacitor products. Burton's 
snowboards and logo are protected by trademarks and patents.
  While Vermont is closest to my heart, every state in the Nation has 
such companies, and every community

[[Page S7281]]

in the United States is home to creative and productive people. 
Intellectual property--copyrights, patents, and trademarks--is critical 
to our fiscal health and to our continuing dominance of the world 
economy. This valuable property is also terribly vulnerable; by its 
very nature, it is subject to numerous types of thievery and 
misappropriation. The Internet has brought great and positive change to 
all our lives, but it is also an unparalleled tool for piracy. The 
increasing inter-connectedness of the globe, and the efficiencies of 
sharing information quickly and accurately between continents, has made 
foreign piracy and counterfeiting operations profitable in numerous 
countries. Americans suffer when their intellectual property is stolen, 
they suffer when those counterfeit goods displace sales of the 
legitimate products, and they suffer when counterfeit products actually 
harm them, as is sometimes the case with fake pharmaceuticals and 
faulty electrical products.
  The time has come to bolster the Federal effort to protect this most 
valuable and vulnerable property, to give law enforcement the resources 
and the tools it needs to combat piracy and counterfeiting, and to make 
sure that the many agencies that deal with intellectual property 
enforcement have the opportunity and the incentive to talk with each 
other, to coordinate their efforts, and to achieve the maximum effects 
for their efforts. The Enforcement of Intellectual Property Rights Act 
of 2008 does just that.
  First, it gives the Department of Justice the ability to bring civil 
actions against anyone whose conduct constitutes criminal copyright 
infringement. Many times, a criminal sanction is simply too severe for 
the harm done. This provision, the concept of which has passed the 
Senate on three separate occasions as the PIRATE Act, gives the 
Department of Justice an extra tool.
  Second, the bill enhances civil intellectual property rights law by 
eliminating unnecessary burdens to instituting a suit; improving 
remedies; and applying the copyright and trademark laws not only to 
imported goods, but also to exported and transshipped items.
  Third, the bill improves and harmonizes the forfeiture provisions in 
copyright and counterfeiting cases.
  Fourth, the bill addresses concerns that the current governmental 
structure to coordinate intellectual property rights enforcement among 
agencies and departments is impeding the Government from reaching its 
full potential. It creates a Coordinator within the Executive Office of 
the President to chair an inter-agency committee that will produce a 
Joint Strategic Plan to combat piracy and counterfeiting.
  Finally, the bill will increase the resources available to Federal, 
state and local law enforcement.
  We are not addressing theoretical concerns with this bill, nor are we 
making grandiose policy proclamations. We are synthesizing the real-
world experiences of our many constituents who develop and monetize 
intellectual property--the individuals and companies that turn their 
creative and innovative efforts into jobs, goods, and services--with 
the daily frustrations of law enforcement agents who lack the laws, and 
the resources, to vindicate those property rights.
  I was once a prosecutor. I am now a Senator. But I have always been a 
fan of movies. My cameo in the latest Batman movie, The Dark Knight, 
was priceless to me, but we can put real numbers on the value of that 
production to the economy. The Dark Knight shot for 65 days in Chicago, 
pouring almost $36 million into the local economy. Seventeen million 
dollars went to nearly 800 local vendors that were critical to the 
production of the movie. For example, one local lumber supplier 
employing 40 people played a central role in the set construction that 
helped transform Chicago into the mythical ``Gotham City.'' In order to 
fulfill the production needs of the film, the lumber company worked 
closely with 15 other Illinois-based companies. Those 15 suppliers 
employed an additional 350 workers.
  All of that value is threatened by piracy. Just in the movie 
industry, piracy costs 140,000 U.S. jobs and $5.5 billion in wages each 
year. Piracy costs cities, towns and states an estimated $837 million 
in additional tax revenue each year. The movie industry alone produces 
$30.2 billion each year in revenue for 160,000 vendors all across the 
Nation, and 85 percent of those vendors employ 10 people or fewer.
  This is a well balanced bill, drawn from numerous conversations with 
all manner of interested parties. It brings together the best of 
numerous proposals, including important legislation I introduced 
earlier this year with Senator Cornyn. His support on intellectual 
property matters is critical to our success moving forward. I thank 
him, and all the cosponsors of this legislation for their efforts and 
support. This bill will improve the enforcement of our Nation's 
intellectual property laws, bolster our intellectual property-based 
economy, and protect American jobs.
  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. 3325

       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 
     ``Enforcement of Intellectual Property Rights Act of 2008''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reference.
Sec. 3. Definition.

   TITLE I--AUTHORIZATION OF CIVIL COPYRIGHT ENFORCEMENT BY ATTORNEY 
                                GENERAL

Sec. 101. Civil penalties for certain violations.

       TITLE II--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

Sec. 201. Registration of claim.
Sec. 202. Civil remedies for infringement.
Sec. 203. Treble damages in counterfeiting cases.
Sec. 204. Statutory damages in counterfeiting cases.
Sec. 205. Transshipment and exportation of goods bearing infringing 
              marks.
Sec. 206. Importation, transshipment, and exportation.

     TITLE III--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

Sec. 301. Criminal copyright infringement.
Sec. 302. Trafficking in counterfeit labels, illicit labels, or 
              counterfeit documentation or packaging for works that can 
              be copyrighted.
Sec. 303. Unauthorized fixation.
Sec. 304. Unauthorized recording of motion pictures.
Sec. 305. Trafficking in counterfeit goods or services.
Sec. 306. Forfeiture, destruction, and restitution.
Sec. 307. Forfeiture under Economic Espionage Act.
Sec. 308. Technical and conforming amendments.

TITLE IV--COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT AGAINST 
                       COUNTERFEITING AND PIRACY

Sec. 401. Intellectual property enforcement coordinator.
Sec. 402. Definition.
Sec. 403. Joint strategic plan.
Sec. 404. Reporting.
Sec. 405. Savings and repeals.
Sec. 406. Authorization of appropriations.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

Sec. 501. Local law enforcement grants.
Sec. 502. Improved investigative and forensic resources for enforcement 
              of laws related to intellectual property crimes.
Sec. 503. Additional funding for resources to investigate and prosecute 
              criminal activity involving computers.
Sec. 504. International intellectual property law enforcement 
              coordinators.
Sec. 505. Annual reports.
Sec. 506. Authorization of appropriations.

     SEC. 2. REFERENCE.

       Any reference in this Act to the ``Trademark Act of 1946'' 
     refers to the Act entitled ``An Act to provide for the 
     registration of trademarks used in commerce, to carry out the 
     provisions of certain international conventions, and for 
     other purposes'', approved July 5, 1946 (15 U.S.C. 1051 et 
     seq.).

     SEC. 3. DEFINITION.

       In this Act, the term ``United States person'' means--
       (1) any United States resident or national,
       (2) any domestic concern (including any permanent domestic 
     establishment of any foreign concern), and
       (3) any foreign subsidiary or affiliate (including any 
     permanent foreign establishment) of any domestic concern that 
     is controlled in fact by such domestic concern,
     except that such term does not include an individual who 
     resides outside the United

[[Page S7282]]

     States and is employed by an individual or entity other than 
     an individual or entity described in paragraph (1), (2), or 
     (3).

   TITLE I--AUTHORIZATION OF CIVIL COPYRIGHT ENFORCEMENT BY ATTORNEY 
                                GENERAL

     SEC. 101. CIVIL PENALTIES FOR CERTAIN VIOLATIONS.

       (a) In General.--Chapter 5 of title 17, United States Code, 
     is amended by inserting after section 506 the following:

     ``SEC. 506A. CIVIL PENALTIES FOR VIOLATIONS OF SECTION 506.

       ``(a) In General.--In lieu of a criminal action under 
     section 506, the Attorney General may commence a civil action 
     in the appropriate United States district court against any 
     person who engages in conduct constituting an offense under 
     section 506. Upon proof of such conduct by a preponderance of 
     the evidence, such person shall be subject to a civil penalty 
     under section 504 which shall be in an amount equal to the 
     amount which would be awarded under section 3663(a)(1)(B) of 
     title 18 and restitution to the copyright owner aggrieved by 
     the conduct.
       ``(b) Other Remedies.--
       ``(1) In general.--Imposition of a civil penalty under this 
     section does not preclude any other criminal or civil 
     statutory, injunctive, common law, or administrative remedy, 
     which is available by law to the United States or any other 
     person.
       ``(2) Offset.--Any restitution received by a copyright 
     owner as a result of a civil action brought under this 
     section shall be offset against any award of damages in a 
     subsequent copyright infringement civil action by that 
     copyright owner for the conduct that gave rise to the civil 
     action brought under this section.''.
       (b) Damages and Profits.--Section 504 of title 17, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in the first sentence--
       (i) by inserting ``, or the Attorney General in a civil 
     action,'' after ``The copyright owner''; and
       (ii) by striking ``him or her'' and inserting ``the 
     copyright owner''; and
       (B) in the second sentence by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''; 
     and
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''; 
     and
       (B) in paragraph (2), by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for chapter 5 of title 17, United States Code, is 
     amended by inserting after the item relating to section 506 
     the following:

``Sec. 506a. Civil penalties for violations of section 506.''.

       TITLE II--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

     SEC. 201. REGISTRATION OF CLAIM.

       (a) Limitation to Civil Actions; Harmless Error.--Section 
     411 of title 17, United States Code, is amended--
       (1) in the section heading, by inserting ``CIVIL'' before 
     ``INFRINGEMENT'';
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``no action'' and 
     inserting ``no civil action''; and
       (B) in the second sentence, by striking ``an action'' and 
     inserting ``a civil action'';
       (3) by redesignating subsection (b) as subsection (c);
       (4) in subsection (c), as so redesignated by paragraph (3), 
     by striking ``506 and sections 509 and'' and inserting ``505 
     and section''; and
       (5) by inserting after subsection (a) the following:
       ``(b)(1) A certificate of registration satisfies the 
     requirements of this section and section 412, regardless of 
     whether the certificate contains any inaccurate information, 
     unless--
       ``(A) the inaccurate information was included on the 
     application for copyright registration with knowledge that it 
     was inaccurate; and
       ``(B) the inaccurate information, if known, would have 
     caused the Register of Copyrights to refuse registration.
       ``(2) In any case in which inaccurate information described 
     under paragraph (1) is alleged, the court shall request the 
     Register of Copyrights to advise the court whether the 
     inaccurate information, if known, would have caused the 
     Register of Copyrights to refuse registration.''.
       (b) Technical and Conforming Amendments.--
       (1) Section 412 of title 17, United States Code, is amended 
     by striking ``411(b)'' and inserting ``411(c)''.
       (2) The item relating to section 411 in the table of 
     sections for chapter 4 of title 17, United States Code, is 
     amended to read as follows:

``Sec. 411. Registration and civil infringement actions.''.

     SEC. 202. CIVIL REMEDIES FOR INFRINGEMENT.

       (a) In General.--Section 503(a) of title 17, United States 
     Code, is amended--
       (1) by striking ``and of all plates'' and inserting ``, of 
     all plates''; and
       (2) by striking the period and inserting ``, and of records 
     documenting the manufacture, sale, or receipt of things 
     involved in such violation. The court shall enter, if 
     appropriate, a protective order with respect to discovery of 
     any records that have been seized. The protective order shall 
     provide for appropriate procedures to ensure that 
     confidential information contained in such records is not 
     improperly disclosed to any party.''.
       (b) Protective Orders for Seized Records.--Section 
     34(d)(1)(A) of the Trademark Act (15 U.S.C. 1116(d)(1)(A)) is 
     amended by adding at the end the following: ``The court shall 
     enter, if appropriate, a protective order with respect to 
     discovery of any records that have been seized. The 
     protective order shall provide for appropriate procedures to 
     ensure that confidential information contained in such 
     records is not improperly disclosed to any party.''.

     SEC. 203. TREBLE DAMAGES IN COUNTERFEITING CASES.

       Section 35(b) of the Trademark Act of 1946 (15 U.S.C. 
     1117(b)) is amended to read as follows:
       ``(b) In assessing damages under subsection (a) for any 
     violation of section 32(1)(a) of this Act or section 220506 
     of title 36, United States Code, in a case involving use of a 
     counterfeit mark or designation (as defined in section 34(d) 
     of this Act), the court shall, unless the court finds 
     extenuating circumstances, enter judgment for three times 
     such profits or damages, whichever amount is greater, 
     together with a reasonable attorney's fee, if the violation 
     consists of--
       ``(1) intentionally using a mark or designation, knowing 
     such mark or designation is a counterfeit mark (as defined in 
     section 34(d) of this Act), in connection with the sale, 
     offering for sale, or distribution of goods or services; or
       ``(2) providing goods or services necessary to the 
     commission of a violation specified in paragraph (1), with 
     the intent that the recipient of the goods or services would 
     put the goods or services to use in committing the violation.
     In such a case, the court may award prejudgment interest on 
     such amount at an annual interest rate established under 
     section 6621(a)(2) of the Internal Revenue Code of 1986, 
     beginning on the date of the service of the claimant's 
     pleadings setting forth the claim for such entry of judgment 
     and ending on the date such entry is made, or for such 
     shorter time as the court considers appropriate.''.

     SEC. 204. STATUTORY DAMAGES IN COUNTERFEITING CASES.

       Section 35(c) of the Trademark Act of 1946 (15 U.S.C. 1117) 
     is amended--
       (1) in paragraph (1)--
       (A) by striking ``$500'' and inserting ``$1,000''; and
       (B) by striking ``$100,000'' and inserting ``$200,000''; 
     and
       (2) in paragraph (2), by striking ``$1,000,000'' and 
     inserting ``$2,000,000''.

     SEC. 205. TRANSSHIPMENT AND EXPORTATION OF GOODS BEARING 
                   INFRINGING MARKS.

       Title VII of the Trademark Act of 1946 (15 U.S.C. 1124) is 
     amended--
       (1) in the title heading, by inserting after 
     ``IMPORTATION'' the following: ``TRANSSHIPMENT, OR 
     EXPORTATION''; and
       (2) in section 42--
       (A) by striking ``imported''; and
       (B) by inserting after ``customhouse of the United States'' 
     the following: ``, nor shall any such article be transshipped 
     through or exported from the United States''.

     SEC. 206. IMPORTATION, TRANSSHIPMENT, AND EXPORTATION.

       (a) In General.--The heading for chapter 6 of title 17, 
     United States Code, is amended to read as follows:

 ``CHAPTER 6--MANUFACTURING REQUIREMENTS, IMPORTATION, TRANSSHIPMENT, 
                           AND EXPORTATION''.

       (b) Amendment on Exportation.--Section 602(a) of title 17, 
     United States Code, is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and moving such 
     subparagraphs 2 ems to the right;
       (2) by striking ``(a)'' and inserting ``(a) Infringing 
     Importation, Transshipment, or Exportation.--
       ``(1) Importation.--'';
       (3) by striking ``This subsection does not apply to--'' and 
     inserting the following:
       ``(2) Importation, transhipment, or exportation of 
     infringing items.--Importation into the United States, 
     transshipment through the United States, or exportation from 
     the United States, without the authority of the owner of 
     copyright under this title, of copies or phonorecords, the 
     making of which either constituted an infringement of 
     copyright or would have constituted an infringement of 
     copyright if this title had been applicable, is an 
     infringement of the exclusive right to distribute copies or 
     phonorecords under section 106, actionable under sections 501 
     and 506.
       ``(3) Exceptions.--This subsection does not apply to--'';
       (4) in paragraph (3)(A) (as redesignated by this 
     subsection) by inserting ``or exportation'' after 
     ``importation''; and
       (5) in paragraph (3)(B) (as redesignated by this 
     subsection)--
       (A) by striking ``importation, for the private use of the 
     importer'' and inserting ``importation or exportation, for 
     the private use of the importer or exporter''; and
       (B) by inserting ``or departing from the United States'' 
     after ``United States''.
       (c) Conforming Amendments.--(1) Section 602 of title 17, 
     United States Code, is further amended--
       (A) in the section heading, by inserting ``OR EXPORTATION'' 
     after ``IMPORTATION''; and
       (B) in subsection (b)--

[[Page S7283]]

       (i) by striking ``(b) In a case'' and inserting ``(b) 
     Import Prohibition.--In a case'';
       (ii) by striking ``the United States Customs Service'' and 
     inserting ``United States Customs and Border Protection''; 
     and
       (iii) by striking ``the Customs Service'' and inserting 
     ``United States Customs and Border Protection''.
       (2) Section 601(b)(2) of title 17, United States Code, is 
     amended by striking ``the United States Customs Service'' and 
     inserting ``United States Customs and Border Protection''.
       (3) The item relating to chapter 6 in the table of chapters 
     for title 17, United States Code, is amended to read as 
     follows:

``6. Manufacturing Requirements, Importation, and Exportation ........ 
                                 601''.

     TITLE III--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

     SEC. 301. CRIMINAL COPYRIGHT INFRINGEMENT.

       (a) Forfeiture and Destruction; Restitution.--Section 
     506(b) of title 17, United States Code, is amended to read as 
     follows:
       ``(b) Forfeiture, Destruction, and Restitution.--
     Forfeiture, destruction, and restitution relating to this 
     section shall be subject to section 2323 of title 18, to the 
     extent provided in that section, in addition to any other 
     similar remedies provided by law.''.
       (b) Seizures and Forfeitures.--
       (1) Repeal.--Section 509 of title 17, United States Code, 
     is repealed.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 5 of title 17, United States Code, is 
     amended by striking the item relating to section 509.

     SEC. 302. TRAFFICKING IN COUNTERFEIT LABELS, ILLICIT LABELS, 
                   OR COUNTERFEIT DOCUMENTATION OR PACKAGING FOR 
                   WORKS THAT CAN BE COPYRIGHTED.

       Section 2318 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating subparagraphs (A) through (G) as 
     clauses (i) through (vii), respectively;
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (C) by striking ``Whoever'' and inserting ``(1) Whoever'';
       (2) by amending subsection (d) to read as follows:
       ``(d) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''; and
       (3) by striking subsection (e) and redesignating subsection 
     (f) as subsection (e).

     SEC. 303. UNAUTHORIZED FIXATION.

       (a) Section 2319A(b) of title 18, United States Code, is 
     amended to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.
       (b) Section 2319A(c) of title 18, United States Code, is 
     amended by striking the second sentence and inserting: ``The 
     Secretary of Homeland Security shall issue regulations by 
     which any performer may, upon payment of a specified fee, be 
     entitled to notification by United States Customs and Border 
     Protection of the importation of copies or phonorecords that 
     appear to consist of unauthorized fixations of the sounds or 
     sounds and images of a live musical performance.''.

     SEC. 304. UNAUTHORIZED RECORDING OF MOTION PICTURES.

       Section 2319B(b) of title 18, United States Code, is 
     amended to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.

     SEC. 305. TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES.

       (a) In General.--Section 2320 of title 18, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``Whoever'' and inserting ``Offense.--''
       ``(1) In general.--Whoever;'';
       (B) by moving the remaining text 2 ems to the right; and
       (C) by adding at the end the following:
       ``(2) Serious bodily harm or death.--
       ``(A) Serious bodily harm.--If the offender knowingly or 
     recklessly causes or attempts to cause serious bodily injury 
     from conduct in violation of paragraph (1), the penalty shall 
     be a fine under this title or imprisonment for not more than 
     20 years, or both.
       ``(B) Death.--If the offender knowingly or recklessly 
     causes or attempts to cause death from conduct in violation 
     of paragraph (1), the penalty shall be a fine under this 
     title or imprisonment for any term of years or for life, or 
     both.''.
       (b) Forfeiture and Destruction of Property; Restitution.--
     Section 2320(b) of title 18, United States Code, is amended 
     to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.

     SEC. 306. FORFEITURE, DESTRUCTION, AND RESTITUTION.

       (a) In General.--Chapter 113 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``SEC. 2323. FORFEITURE, DESTRUCTION, AND RESTITUTION.

       ``(a) Civil Forfeiture.--
       ``(1) Property subject to forfeiture.--The following 
     property is subject to forfeiture to the United States 
     Government:
       ``(A) Any article, the making or trafficking of which is, 
     prohibited under section 506 or 1204 of title 17, or section 
     2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of this 
     title.
       ``(B) Any property used, or intended to be used, in any 
     manner or part to commit or facilitate the commission of an 
     offense referred to in subparagraph (A), except that property 
     is subject to forfeiture under this subparagraph only if the 
     United States Government establishes that there was a 
     substantial connection between the property and the violation 
     of an offense referred to in subparagraph (A).
       ``(C) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of the 
     commission of an offense referred to in subparagraph (A).
       ``(2) Procedures.--The provisions of chapter 46 relating to 
     civil forfeitures shall extend to any seizure or civil 
     forfeiture under this section. At the conclusion of the 
     forfeiture proceedings, unless otherwise requested by an 
     agency of the United States, the court shall order that any 
     property forfeited under paragraph (1) be destroyed, or 
     otherwise disposed of according to law.
       ``(b) Criminal Forfeiture.--
       ``(1) Property subject to forfeiture.--The court, in 
     imposing sentence on a person convicted of an offense under 
     section 506 or 1204 of title 17, or section 2318, 2319, 
     2319A, 2319B, or 2320, or chapter 90, of this title, shall 
     order, in addition to any other sentence imposed, that the 
     person forfeit to the United States Government any property 
     subject to forfeiture under subsection (a) for that offense.
       ``(2) Procedures.--
       ``(A) In general.--The forfeiture of property under 
     paragraph (1), including any seizure and disposition of the 
     property and any related judicial or administrative 
     proceeding, shall be governed by the procedures set forth in 
     section 413 of the Comprehensive Drug Abuse Prevention and 
     Control Act of 1970 (21 U.S.C. 853), other than subsection 
     (d) of that section.
       ``(B) Destruction.--At the conclusion of the forfeiture 
     proceedings, the court, unless otherwise requested by an 
     agency of the United States shall order that any--
       ``(i) forfeited article or component of an article bearing 
     or consisting of a counterfeit mark be destroyed or otherwise 
     disposed of according to law; and
       ``(ii) infringing items or other property described in 
     subsection (a)(1)(A) and forfeited under paragraph (1) of 
     this subsection be destroyed or otherwise disposed of 
     according to law.
       ``(c) Restitution.--When a person is convicted of an 
     offense under section 506 or 1204 of title 17 or section 
     2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of this 
     title, the court, pursuant to sections 3556, 3663A, and 3664 
     of this title, shall order the person to pay restitution to 
     any victim of the offense as an offense against property 
     referred to in section 3663A(c)(1)(A)(ii) of this title.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 113 of title 18, United States Code, is 
     amended by adding at the end the following:

``Sec. 2323. Forfeiture, destruction, and restitution.''.

     SEC. 307. FORFEITURE UNDER ECONOMIC ESPIONAGE ACT.

       Section 1834 of title 18, United States Code, is amended to 
     read as follows:

     ``SEC. 1834. CRIMINAL FORFEITURE.

       ``Forfeiture, destruction, and restitution relating to this 
     chapter shall be subject to section 2323, to the extent 
     provided in that section, in addition to any other similar 
     remedies provided by law.''.

     SEC. 308. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Amendments to Title 17, United States Code.--
       (1) Section 109 (b)(4) of title 17, United States Code, is 
     amended by striking ``505, and 509'' and inserting ``and 
     505''.
       (2) Section 111 of title 17, United States Code, is 
     amended--
       (A) in subsection (b), by striking ``and 509'';
       (B) in subsection (c)--
       (i) in paragraph (2), by striking ``and 509'';
       (ii) in paragraph (3), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (iii) in paragraph (4), by striking ``and section 509''; 
     and
       (C) in subsection (e)--
       (i) in paragraph (1), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (ii) in paragraph (2), by striking ``and 509''.
       (3) Section 115(c) of title 17, United States Code, is 
     amended--
       (A) in paragraph (3)(G)(i), by striking ``and 509''; and
       (B) in paragraph (6), by striking ``and 509''.
       (4) Section 119(a) of title 17, United States Code, is 
     amended--
       (A) in paragraph (6), by striking ``sections 509 and 510'' 
     and inserting ``section 510'';
       (B) in paragraph (7)(A), by striking ``and 509'';
       (C) in paragraph (8), by striking ``and 509''; and
       (D) in paragraph (13), by striking ``and 509''.

[[Page S7284]]

       (5) Section 122 of title 17, United States Code, is 
     amended--
       (A) in subsection (d), by striking ``and 509'';
       (B) in subsection (e), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (C) in subsection (f)(1), by striking ``and 509''.
       (6) Section 411(b) of title 17, United States Code, is 
     amended by striking ``sections 509 and 510'' and inserting 
     ``section 510''.
       (b) Other Amendments.--Section 596(c)(2)(c) of the Tariff 
     Act of 1950 (19 U.S.C. 1595a(c)(2)(c)) is amended by striking 
     ``or 509''.

TITLE IV--COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT AGAINST 
                       COUNTERFEITING AND PIRACY

     SEC. 401. INTELLECTUAL PROPERTY ENFORCEMENT COORDINATOR.

       (a) Intellectual Property Enforcement Coordinator.--The 
     President shall appoint, by and with the advice and consent 
     of the Senate, an Intellectual Property Enforcement 
     Coordinator (in this title referred to as the ``IPEC'') to 
     serve within the Executive Office of the President. As an 
     exercise of the rulemaking power of the Senate, any 
     nomination of the IPEC submitted to the Senate for 
     confirmation, and referred to a committee, shall be referred 
     to the Committee on the Judiciary.
       (b) Duties of IPEC.--
       (1) In general.--The IPEC shall--
       (A) chair the interagency intellectual property enforcement 
     advisory committee established under subsection (b)(3)(A);
       (B) coordinate the development of the Joint Strategic Plan 
     against counterfeiting and piracy by the advisory committee 
     under section 403;
       (C) assist in the implementation of the Joint Strategic 
     Plan by the departments and agencies listed in subsection 
     (b)(3)(A);
       (D) report directly to the President and Congress regarding 
     domestic and international intellectual property enforcement 
     programs;
       (E) report to Congress, as provided in section 404, on the 
     implementation of the Joint Strategic Plan, and make 
     recommendations to Congress for improvements in Federal 
     intellectual property enforcement efforts; and
       (F) carry out such other functions as the President may 
     direct.
       (2) Limitation on authority.--The IPEC may not control or 
     direct any law enforcement agency in the exercise of its 
     investigative or prosecutorial authority.
       (3) Advisory committee.--
       (A) Establishment.--There is established an interagency 
     intellectual property enforcement advisory committee composed 
     of the IPEC, who shall chair the committee, and Senate-
     confirmed representatives of the following departments and 
     agencies who are involved in intellectual property 
     enforcement, and who are, or are appointed by, the respective 
     heads of those departments and agencies:
       (i) The Office of Management and Budget.
       (ii) The Department of Justice.
       (iii) The United States Patent and Trademark Office and 
     other relevant units of the Department of Commerce.
       (iv) The Office of the United States Trade Representative.
       (v) The Department of State, the United States Agency for 
     International Development, and the Bureau of International 
     Narcotics Law Enforcement.
       (vi) The Department of Homeland Security, United States 
     Customs and Border Protection, and United States Immigration 
     and Customs Enforcement.
       (vii) The Food and Drug Administration of the Department of 
     Health and Human Services.
       (viii) The United States Copyright Office.
       (ix) Any such other agencies as the President determines to 
     be substantially involved in the efforts of the Federal 
     Government to combat counterfeiting and piracy.
       (B) Functions.--The advisory committee established under 
     subparagraph (A) shall develop the Joint Strategic Plan 
     against counterfeiting and piracy under section 403.
       (c) Compensation.--Section 5312 of title 5, United States 
     Code, is amended by adding at the end the following: ``United 
     States Intellectual Property Enforcement Coordinator.''.

     SEC. 402. DEFINITION.

       For purposes of this title, the term ``intellectual 
     property enforcement'' means matters relating to the 
     enforcement of laws protecting copyrights, patents, 
     trademarks, other forms of intellectual property, and trade 
     secrets, both in the United States and abroad, including in 
     particular matters relating to combating counterfeit and 
     pirated goods.

     SEC. 403. JOINT STRATEGIC PLAN.

       (a) Purpose.--The objectives of the Joint Strategic Plan 
     against counterfeiting and piracy that is referred to in 
     section 401(b)(1)(B) (in this section referred to as the 
     ``joint strategic plan'') are the following:
       (1) Reducing counterfeit and pirated goods in the domestic 
     and international supply chain.
       (2) Identifying and addressing structural weaknesses, 
     systemic flaws, or other unjustified impediments to effective 
     enforcement action against the financing, production, 
     trafficking, or sale of counterfeit or pirated goods.
       (3) Ensuring that information is identified and shared 
     among the relevant departments and agencies, to the extent 
     permitted by law and consistent with law enforcement 
     protocols for handling information, to aid in the objective 
     of arresting and prosecuting individuals and entities that 
     are knowingly involved in the financing, production, 
     trafficking, or sale of counterfeit or pirated goods.
       (4) Disrupting and eliminating domestic and international 
     counterfeiting and piracy networks.
       (5) Strengthening the capacity of other countries to 
     protect and enforce intellectual property rights, and 
     reducing the number of countries that fail to enforce laws 
     preventing the financing, production, trafficking, and sale 
     of counterfeit and pirated goods.
       (6) Working with other countries to establish international 
     standards and policies for the effective protection and 
     enforcement of intellectual property rights.
       (7) Protecting intellectual property rights overseas by--
       (A) working with other countries and exchanging information 
     with appropriate law enforcement agencies in other countries 
     relating to individuals and entities involved in the 
     financing, production, trafficking, or sale of pirated or 
     counterfeit goods;
       (B) using the information described in subparagraph (A) to 
     conduct enforcement activities in cooperation with 
     appropriate law enforcement agencies in other countries; and
       (C) building a formal process for consulting with 
     companies, industry associations, labor unions, and other 
     interested groups in other countries with respect to 
     intellectual property enforcement.
       (b) Timing.--Not later than 12 months after the date of the 
     enactment of this Act, and not later than December 31 of 
     every third year thereafter, the IPEC shall submit the joint 
     strategic plan to the Committee on the Judiciary and the 
     Committee on Appropriations of the Senate, and to the 
     Committee on the Judiciary and the Committee on 
     Appropriations of the House of Representatives.
       (c) Responsibility of the IPEC.--During the development of 
     the joint strategic plan, the IPEC--
       (1) shall provide assistance to, and coordinate the 
     meetings and efforts of, the appropriate officers and 
     employees of departments and agencies represented on the 
     advisory committee appointed under section 401(b)(3) who are 
     involved in intellectual property enforcement; and
       (2) may consult with private sector experts in intellectual 
     property enforcement in furtherance of providing assistance 
     to the members of the advisory committee appointed under 
     section 401(b)(3).
       (d) Responsibilities of Other Departments and Agencies.--In 
     the development and implementation of the joint strategic 
     plan, the heads of the departments and agencies identified 
     under section 401(b)(3) shall--
       (1) designate personnel with expertise and experience in 
     intellectual property enforcement matters to work with the 
     IPEC and other members of the advisory committee; and
       (2) share relevant department or agency information with 
     the IPEC and other members of the advisory committee, 
     including statistical information on the enforcement 
     activities of the department or agency against counterfeiting 
     or piracy, and plans for addressing the joint strategic plan.
       (e) Contents of the Joint Strategic Plan.--Each joint 
     strategic plan shall include the following:
       (1) A detailed description of the priorities identified for 
     carrying out the objectives in the joint strategic plan, 
     including activities of the Federal Government relating to 
     intellectual property enforcement.
       (2) A detailed description of the means and methods to be 
     employed to achieve the priorities, including the means and 
     methods for improving the efficiency and effectiveness of the 
     Federal Government's enforcement efforts against 
     counterfeiting and piracy.
       (3) Estimates of the resources necessary to fulfill the 
     priorities identified under paragraph (1).
       (4) The performance measures to be used to monitor results 
     under the joint strategic plan during the following year.
       (5) An analysis of the threat posed by violations of 
     intellectual property rights, including the costs to the 
     economy of the United States resulting from violations of 
     intellectual property laws, and the threats to public health 
     and safety created by counterfeiting and piracy.
       (6) An identification of the departments and agencies that 
     will be involved in implementing each priority under 
     paragraph (1).
       (7) A strategy for ensuring coordination between the IPEC 
     and the departments and agencies identified under paragraph 
     (6), including a process for oversight by the executive 
     branch of, and accountability among, the departments and 
     agencies responsible for carrying out the strategy.
       (8) Such other information as is necessary to convey the 
     costs imposed on the United States economy by, and the 
     threats to public health and safety created by, 
     counterfeiting and piracy, and those steps that the Federal 
     Government intends to take over the period covered by the 
     succeeding joint strategic plan to reduce those costs and 
     counter those threats.
       (f) Enhancing Enforcement Efforts of Foreign Governments.--
     The joint strategic plan shall include programs to provide 
     training and technical assistance to foreign governments for 
     the purpose of enhancing the efforts of such governments to 
     enforce laws against counterfeiting and piracy. With respect 
     to such programs, the joint strategic plan shall--

[[Page S7285]]

       (1) seek to enhance the efficiency and consistency with 
     which Federal resources are expended, and seek to minimize 
     duplication, overlap, or inconsistency of efforts;
       (2) identify and give priority to those countries where 
     programs of training and technical assistance can be carried 
     out most effectively and with the greatest benefit to 
     reducing counterfeit and pirated products in the United 
     States market, to protecting the intellectual property rights 
     of United States persons and their licensees, and to 
     protecting the interests of United States persons otherwise 
     harmed by violations of intellectual property rights in those 
     countries;
       (3) in identifying the priorities under paragraph (2), be 
     guided by the list of countries identified by the United 
     States Trade Representative under section 182(a) of the Trade 
     Act of 1974 (19 U.S.C. 2242(a)); and
       (4) develop metrics to measure the effectiveness of the 
     Federal Government's efforts to improve the laws and 
     enforcement practices of foreign governments against 
     counterfeiting and piracy.
       (g) Dissemination of the Joint Strategic Plan.--The joint 
     strategic plan shall be posted for public access on the 
     website of the White House, and shall be disseminated to the 
     public through such other means as the IPEC may identify.

     SEC. 404. REPORTING.

       (a) Annual Report.--Not later than December 31 of each 
     calendar year beginning in 2009, the IPEC shall submit a 
     report on the activities of the advisory committee during the 
     preceding fiscal year. The annual report shall be submitted 
     to Congress, and disseminated to the people of the United 
     States, in the manner specified in subsections (b) and (g) of 
     section 403.
       (b) Contents.--The report required by this section shall 
     include the following:
       (1) The progress made on implementing the strategic plan 
     and on the progress toward fulfillment of the priorities 
     identified under section 403(e)(1).
       (2) The progress made in efforts to encourage Federal, 
     State, and local government departments and agencies to 
     accord higher priority to intellectual property enforcement.
       (3) The progress made in working with foreign countries to 
     investigate, arrest, and prosecute entities and individuals 
     involved in the financing, production, trafficking, and sale 
     of counterfeit and pirated goods.
       (4) The manner in which the relevant departments and 
     agencies are working together and sharing information to 
     strengthen intellectual property enforcement.
       (5) An assessment of the successes and shortcomings of the 
     efforts of the Federal Government, including departments and 
     agencies represented on the committee established under 
     section 401(b)(3).
       (6) Recommendations for any changes in enforcement 
     statutes, regulations, or funding levels that the advisory 
     committee considers would significantly improve the 
     effectiveness or efficiency of the effort of the Federal 
     Government to combat counterfeiting and piracy and otherwise 
     strengthen intellectual property enforcement, including 
     through the elimination or consolidation of duplicative 
     programs or initiatives.
       (7) The progress made in strengthening the capacity of 
     countries to protect and enforce intellectual property 
     rights.
       (8) The successes and challenges in sharing with other 
     countries information relating to intellectual property 
     enforcement.
       (9) The progress made under trade agreements and treaties 
     to protect intellectual property rights of United States 
     persons and their licensees.

     SEC. 405. SAVINGS AND REPEALS.

       (a) Repeal of Coordination Council.--Section 653 of the 
     Treasury and General Government Appropriations Act, 2000 (15 
     U.S.C. 1128) is repealed.
       (b) Current Authorities Not Affected.--Except as provided 
     in subsection (a), nothing in this title shall alter the 
     authority of any department or agency of the United States 
     (including any independent agency) that relates to--
       (1) the investigation and prosecution of violations of laws 
     that protect intellectual property rights;
       (2) the administrative enforcement, at the borders of the 
     United States, of laws that protect intellectual property 
     rights; or
       (3) the United States trade agreements program or 
     international trade.
       (c) Register of Copyrights.--Nothing in this title shall 
     derogate from the duties and functions of the Register of 
     Copyrights.

     SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     for each fiscal year such sums as may be necessary to carry 
     out this title.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

     SEC. 501. LOCAL LAW ENFORCEMENT GRANTS.

       (a) Authorization.--Section 2 of the Computer Crime 
     Enforcement Act (42 U.S.C. 3713) is amended--
       (1) in subsection (b), by inserting after ``computer 
     crime'' each place it appears the following: ``, including 
     infringement of copyrighted works over the Internet''; and
       (2) in subsection (e)(1), relating to authorization of 
     appropriations, by striking ``fiscal years 2001 through 
     2004'' and inserting ``fiscal years 2009 through 2013''.
       (b) Grants.--The Office of Justice Programs of the 
     Department of Justice shall make grants to eligible State or 
     local law enforcement entities, including law enforcement 
     agencies of municipal governments and public educational 
     institutions, for training, prevention, enforcement, and 
     prosecution of intellectual property theft and infringement 
     crimes (in this subsection referred to as ``IP-TIC grants''), 
     in accordance with the following:
       (1) Use of ip-tic grant amounts.--IP-TIC grants may be used 
     to establish and develop programs to do the following with 
     respect to the enforcement of State and local true name and 
     address laws and State and local criminal laws on anti-
     piracy, anti-counterfeiting, and unlawful acts with respect 
     to goods by reason of their protection by a patent, 
     trademark, service mark, trade secret, or other intellectual 
     property right under State or Federal law:
       (A) Assist State and local law enforcement agencies in 
     enforcing those laws, including by reimbursing State and 
     local entities for expenses incurred in performing 
     enforcement operations, such as overtime payments and storage 
     fees for seized evidence.
       (B) Assist State and local law enforcement agencies in 
     educating the public to prevent, deter, and identify 
     violations of those laws.
       (C) Educate and train State and local law enforcement 
     officers and prosecutors to conduct investigations and 
     forensic analyses of evidence and prosecutions in matters 
     involving those laws.
       (D) Establish task forces that include personnel from State 
     or local law enforcement entities, or both, exclusively to 
     conduct investigations and forensic analyses of evidence and 
     prosecutions in matters involving those laws.
       (E) Assist State and local law enforcement officers and 
     prosecutors in acquiring computer and other equipment to 
     conduct investigations and forensic analyses of evidence in 
     matters involving those laws.
       (F) Facilitate and promote the sharing, with State and 
     local law enforcement officers and prosecutors, of the 
     expertise and information of Federal law enforcement agencies 
     about the investigation, analysis, and prosecution of matters 
     involving those laws and criminal infringement of copyrighted 
     works, including the use of multijurisdictional task forces.
       (2) Eligibility.--To be eligible to receive an IP-TIC 
     grant, a State or local government entity shall provide to 
     the Attorney General--
       (A) assurances that the State in which the government 
     entity is located has in effect laws described in paragraph 
     (1);
       (B) an assessment of the resource needs of the State or 
     local government entity applying for the grant, including 
     information on the need for reimbursements of base salaries 
     and overtime costs, storage fees, and other expenditures to 
     improve the investigation, prevention, or enforcement of laws 
     described in paragraph (1); and
       (C) a plan for coordinating the programs funded under this 
     section with other federally funded technical assistance and 
     training programs, including directly funded local programs 
     such as the Edward Byrne Memorial Justice Assistance Grant 
     Program authorized by subpart 1 of part E of title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3750 et seq.).
       (3) Matching funds.--The Federal share of an IP-TIC grant 
     may not exceed 90 percent of the costs of the program or 
     proposal funded by the IP-TIC grant, unless the Attorney 
     General waives, in whole or in part, the 90 percent 
     requirement.
       (4) Authorization of appropriations.--
       (A) Authorization.--There is authorized to be appropriated 
     to carry out this subsection the sum of $25,000,000 for each 
     of fiscal years 2009 through 2013.
       (B) Limitation.--Of the amount made available to carry out 
     this subsection in any fiscal year, not more than 3 percent 
     may be used by the Attorney General for salaries and 
     administrative expenses.

     SEC. 502. IMPROVED INVESTIGATIVE AND FORENSIC RESOURCES FOR 
                   ENFORCEMENT OF LAWS RELATED TO INTELLECTUAL 
                   PROPERTY CRIMES.

       (a) In General.--Subject to the availability of 
     appropriations to carry out this subsection, the Attorney 
     General, in consultation with the Director of the Federal 
     Bureau of Investigation, shall, with respect to crimes 
     related to the theft of intellectual property--
       (1) create an operational unit of the Federal Bureau of 
     Investigation--
       (A) to work with the Computer Crime and Intellectual 
     Property section of the Department of Justice on the 
     investigation and coordination of intellectual property 
     crimes that are complex, committed in more than 1 judicial 
     district, or international;
       (B) that consists of at least 10 agents of the Bureau; and
       (C) that is located at the headquarters of the Bureau;
       (2) ensure that any unit in the Department of Justice 
     responsible for investigating computer hacking or 
     intellectual property crimes is assigned at least 2 agents of 
     the Federal Bureau of Investigation (in addition to any agent 
     assigned to such unit as of the date of the enactment of this 
     Act) to support such unit for the purpose of investigating or 
     prosecuting intellectual property crimes; and
       (3) implement a comprehensive program--
       (A) the purpose of which is to train agents of the Federal 
     Bureau of Investigation in the investigation and prosecution 
     of such crimes and the enforcement of laws related to 
     intellectual property crimes;

[[Page S7286]]

       (B) that includes relevant forensic training related to 
     investigating and prosecuting intellectual property crimes; 
     and
       (C) that requires such agents who investigate or prosecute 
     intellectual property crimes to attend the program annually.
       (b) Organized Crime Task Force.--Subject to the 
     availability of appropriations to carry out this subsection, 
     and not later than 120 days after the date of the enactment 
     of this Act, the Attorney General, through the United States 
     Attorneys' Offices, the Computer Crime and Intellectual 
     Property section, and the Organized Crime and Racketeering 
     section of the Department of Justice, and in consultation 
     with the Federal Bureau of Investigation and other Federal 
     law enforcement agencies, shall create a Task Force to 
     develop and implement a comprehensive, long-range plan to 
     investigate and prosecute international organized crime 
     syndicates engaging in or supporting crimes relating to the 
     theft of intellectual property.
       (c) Authorization.--There are authorized to be appropriated 
     to carry out this section $12,000,000 for each of fiscal 
     years 2009 through 2013.

     SEC. 503. ADDITIONAL FUNDING FOR RESOURCES TO INVESTIGATE AND 
                   PROSECUTE CRIMINAL ACTIVITY INVOLVING 
                   COMPUTERS.

       (a) Additional Funding for Resources.--
       (1) Authorization.--In addition to amounts otherwise 
     authorized for resources to investigate and prosecute 
     criminal activity involving computers, there are authorized 
     to be appropriated for each of the fiscal years 2009 through 
     2013--
       (A) $10,000,000 to the Director of the Federal Bureau of 
     Investigation; and
       (B) $10,000,000 to the Attorney General for the Criminal 
     Division of the Department of Justice.
       (2) Availability.--Any amounts appropriated under paragraph 
     (1) shall remain available until expended.
       (b) Use of Additional Funding.--Funds made available under 
     subsection (a) shall be used by the Director of the Federal 
     Bureau of Investigation and the Attorney General, for the 
     Federal Bureau of Investigation and the Criminal Division of 
     the Department of Justice, respectively, to--
       (1) hire and train law enforcement officers to--
       (A) investigate crimes committed through the use of 
     computers and other information technology, including through 
     the use of the Internet; and
       (B) assist in the prosecution of such crimes; and
       (2) procure advanced tools of forensic science to 
     investigate, prosecute, and study such crimes.

     SEC. 504. INTERNATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT 
                   COORDINATORS.

       (a) Deployment of Additional Coordinators.--Subject to the 
     availability of appropriations to carry out this section, the 
     Attorney General shall, within 180 days after the date of the 
     enactment of this Act, deploy 5 Intellectual Property Law 
     Enforcement Coordinators, in addition to those serving in 
     such capacity on such date of enactment. Such deployments 
     shall be made to those countries and regions where the 
     activities of such a coordinator can be carried out most 
     effectively and with the greatest benefit to reducing 
     counterfeit and pirated products in the United States market, 
     to protecting the intellectual property rights of United 
     States persons and their licensees, and to protecting the 
     interests of United States persons otherwise harmed by 
     violations of intellectual property rights in those 
     countries. The mission of all International Intellectual 
     Property Law Enforcement Coordinators shall include the 
     following:
       (1) Acting as liaison with foreign law enforcement agencies 
     and other foreign officials in criminal matters involving 
     intellectual property rights.
       (2) Performing outreach and training to build the 
     enforcement capacity of foreign governments against 
     intellectual property-related crime in the regions in which 
     the coordinators serve.
       (3) Coordinating United States law enforcement activities 
     against intellectual property-related crimes in the regions 
     in which the coordinators serve.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated for each fiscal year such sums as may be 
     necessary for the deployment and support of all International 
     Intellectual Property Enforcement Coordinators of the 
     Department of Justice, including those deployed under 
     subsection (a).

     SEC. 505. ANNUAL REPORTS.

       Not later than 1 year after the date of the enactment of 
     this Act, and annually thereafter, the Attorney General shall 
     submit to the Committees on the Judiciary of the Senate and 
     the House of Representatives a report on actions taken to 
     carry out this title.

     SEC. 506. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for each fiscal 
     year such sums as may be necessary to carry out this title.

  Mr. SPECTER. Mr. President, I am pleased to speak today on the 
introduction of the Enforcement of Intellectual Property Rights Act of 
2008, which I am sponsoring with Senator Leahy.
  The United States has always placed a high value on creativity and 
innovation. As a result, we rank number 1 for innovation in the World 
Economic Forum's Global Competition Report. Yet, the U.S. does not even 
make it into the ``top 20'' countries when it comes to the protection 
of intellectual property. When you consider that intellectual property 
contributes over $5 trillion annually to our national economy, this is 
not acceptable.
  If we want to profit from our intellectual property, then we must 
protect it. Counterfeiting and piracy, though, are on the rise. 
Counterfeiting, which at one time involved mainly ``knocking off' 
products in the high end and luxury goods markets, is now much more 
pervasive. According to FBI, Interpol, World Customs Organization and 
International Chamber of Commerce estimates, roughly 7-8 percent of 
world trade every year is in counterfeit goods. That is the equivalent 
of as much as $512 billion in global lost sales. Of that amount, U.S. 
companies annually lose between $200 billion and $250 billion in sales.
  Counterfeiting, piracy, and the theft of intellectual property, are 
not victimless crimes. Exporters face unfair competition abroad. Non-
exporters face counterfeit imports at home. Businesses face legal, 
health and safety risks from the threat of counterfeit goods entering 
their supply chains. Consumers, too, face serious health and safety 
risks.
  For every legitimate product on the market, one can find a 
counterfeit version, being passed off as the same quality at a fraction 
of the cost. Counterfeit products run the gamut from low end products 
such as razor blades, shampoos, batteries, and cigarettes to more 
specialized products like auto and plane parts. Although these products 
may look real, they are not subjected to the same quality protocols as 
their legitimate counterparts and a consumer--be they knowing or not--
uses the product at their own risk. Counterfeit products that are 
substandard goods have been the subject of public recalls and seizures 
in industries ranging from food products both human and pet 
consumables, pharmaceuticals both lifestyle and life-saving drugs, 
aircraft or automobile parts, toys and baby furniture, and building and 
manufacturing components. The potential for harm is very serious. Every 
day, our newspapers are filled with stories of the damage that 
counterfeit products have caused.
  Further, each counterfeit item that is manufactured overseas and 
distributed in the United States costs American workers their jobs. 
According to the U.S. Chamber of Commerce, overall intellectual 
property theft costs 750,000 U.S. jobs a year. These are losses that 
directly impact each and every person listening to my voice by 
inhibiting the growth of the American economy. Although private 
industry is more vigilant than ever in pursuing infringers civilly and 
devoting enormous amounts of human and financial capital to combat 
violations of their intellectual property rights, the U.S. Government 
must do its part to protect one of our Nation's most valuable assets.
  Building on the work of the House with the Prioritizing Resources and 
Organization of Intellectual Property Act of 2007, better known as the 
PRO-IP Act, and Senators Bayh and Voinovich with the Intellectual 
Property Rights Enforcement Act, Senators Leahy and I have crafted a 
comprehensive intellectual property that responds to that need.
  This bill will provide the current and future administrations with 
the additional tools it needs to combat intellectual property theft by, 
amongst other things: Giving the Attorney General the authority, in 
lieu of a criminal action, to pursue a civil action for intellectual 
property infringement and collect damages and profits resulting from 
infringement; enhancing the civil and criminal penalties for 
intellectual property violations in order to deter new criminal 
organizations from entering into ``the business'' of counterfeiting and 
piracy; elevating the intergovernmental coordination of intellectual 
property enforcement efforts; and authorizing funding for State and 
local governments for pursuing intellectual property related 
investigations.
  Alan Greenspan stated in ``The Age of Turbulence'' that, ``Arguably, 
the single most important economic decision our lawmakers and courts 
will face in the next twenty-five years is to clarify the rules of 
intellectual property.''

[[Page S7287]]

  Great legislation does not happen overnight--nor should it. When 
considering any reforms to something as valuable as our intellectual 
property assets--whether it is reforms to our Nations patents, 
trademarks, or more relevantly to this group, copyright laws--we must 
act cautiously and with a careful understanding of the effects that any 
such changes will have on the interested industries. That said, I 
believe that we can work together in the few remaining days that is 
left in this Congress in not just a bipartisan but a nonpartisan manner 
to pass and send this bill to the President this Congress.
                                 ______
                                 
      By Mr. LIEBERMAN (for himself and Mr. Coleman):
  S. 3324. A bill to provide leadership regarding science, technology, 
engineering, and mathematics education programs, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. LIEBERMAN. Mr. President, the United States has been the most 
innovative, technologically capable economy in the world. Yet our 
science, technology, engineering, and mathematics, STEM, education 
system is failing to ensure that children in our great Nation are 
entering the workforce with the skills and knowledge required for 
success in the global economy of the 21st century. Meanwhile, the rest 
of the world is catching up. I rise today on behalf of myself and 
Senator Coleman to introduce the Science, Technology, Engineering, and 
Mathematics Education for the 21st Century Act. This legislation seeks 
to promote and coordinate existing science and technology education 
efforts and to improve the communication among various stakeholders so 
that tomorrow's workforce will be prepared to continue the American 
tradition of innovation and enterprise. There are three pieces to this 
legislation, which is based largely on the recommendations found in the 
National Science Board's action plan on STEM education.
  First, this legislation charters a new, independent, and non-Federal 
National Council for Science, Technology, Engineering, and Mathematics 
Education, which will coordinate and facilitate STEM education 
initiatives across the Nation and inform policymakers and the public on 
the state of STEM education across the United States. This council will 
be housed in the National Academy of Sciences and will have a Board of 
Directors comprised of representatives from the various State and local 
governments, organizations, businesses, and industries that have a 
stake in the success of STEM education. This includes current and 
former governors, chief State school officers, representatives from 
local school boards, classroom teachers, school administrators, 
representatives from institutions of higher education, private 
foundations, and representatives of businesses and industries.
  Much of the innovation and success in improving STEM education 
throughout the country is being done locally, in the State's counties, 
and school systems, often partnering with businesses and industry in 
need of a STEM-educated workforce. The Council will bring together 
these various stakeholders to facilitate and coordinate the flow of 
information on STEM education systems to various stakeholders; to 
independently evaluate the success of Federal and non-Federal STEM 
initiatives; to fairly determine and promote best STEM classroom 
practices; to encourage the acquisition and retention of highly 
effective STEM teachers; and to inform policymakers and the general 
public on the state of STEM education across the United States. More 
specifically, the Council will also be responsible for issuing an 
annual report on the state of STEM education in America to the States, 
Congress, the Federal Government, and the general public; disseminating 
results from research on teaching and learning in STEM fields to State 
educational agencies; helping the States establish their own Science, 
Technology, Engineering, and Mathematics Education boards or councils; 
proposing models for the effective professional development of teachers 
in STEM fields; and launching and updating a publicly available website 
that hosts a database consisting of information on scholarships, 
fellowships, grants, internships, and summer programs for both students 
and teachers.
  Second, this bill authorizes a full standing Committee on Science, 
Technology, Engineering, and Mathematics Education within the National 
Science and Technology Council, NSTC, which is part of the Executive 
Office of the President. This committee would be responsible for 
coordinating STEM education across all the Federal agencies involved in 
such efforts, including the National Laboratories, the Department of 
Commerce, the Environmental Protection Agency, the National Science 
Foundation, and NASA. Currently, the NSTC Committee on Science has a 
Subcommittee on Education and Workforce Development with jurisdiction 
over issues relating to STEM education. However, this subcommittee has 
been largely inactive: it rarely meets and has not been effective in 
coordinating the efforts of these different agencies. Senator Coleman 
and I believe that the state of STEM education in the Nation today 
warrants a full committee at the NSTC that will meet regularly to 
assess the effectiveness of such Federal efforts.
  Finally in this legislation we direct the Secretary of Education to 
undergo a comprehensive review of all programs within the Department of 
Education relating to education in science, technology, engineering, 
and mathematics fields, and to evaluate them for their effectiveness. 
We want to make sure that the current panoply of such programs are 
effective, target the students they are intended to target, are not 
unnecessarily redundant, complement State and local educational 
agencies, and are promoted effectively so that students, teachers, and 
parents know about these efforts. We also direct the Department to 
submit to Congress a plan for addressing the challenges they identify 
in this review.
  I believe this legislation will help science, technology, 
engineering, and mathematics education in this country, and will help 
students, parents, teachers, and other educators as we strive to 
prepare tomorrow's workforce for the global economy of the 21st 
century.
  Mr. President, I ask unanimous consent 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. 3324

       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 ``Science, Technology, 
     Engineering, and Mathematics Education for the 21st Century 
     Act of 2008''.

     SEC. 2. NATIONAL COUNCIL FOR SCIENCE, TECHNOLOGY, 
                   ENGINEERING, AND MATHEMATICS EDUCATION.

       (a) Establishment.--There is established a federally 
     chartered corporation to be known as the National Council for 
     Science, Technology, Engineering, and Mathematics Education 
     (referred to in this section as the ``STEM Council'') which 
     shall be incorporated under the laws of the District of 
     Columbia and which shall have the powers granted in this 
     section. Notwithstanding any other provision of law, the STEM 
     Council is a private entity and is not an agency, 
     instrumentality, authority, entity, or establishment of the 
     United States Government.
       (b) Mission.--The mission of the STEM Council is to--
       (1) provide guidance and coordinate and facilitate the flow 
     of information about science, technology, engineering, and 
     mathematics (referred to in this section as ``STEM'') 
     education among State, local, and private entities, as well 
     as the general public;
       (2) provide leadership by identifying critical deficiencies 
     in the Nation's STEM education systems and proposing 
     strategies for members of the STEM Council to collaborate to 
     address such deficiencies;
       (3) serve as a primary focal point for Federal agencies to 
     improve their coordination with, and service to, State and 
     local school systems; and
       (4) promote STEM fields and educate the general public 
     about the value of a STEM education.
       (c) Board of Directors.--
       (1) In general.--The management of the STEM Council shall 
     be vested in a Board of Directors composed of 23 voting 
     members and 10 nonvoting members, who shall meet not less 
     frequently than quarterly.
       (2) Initial appointments.--The Director of the National 
     Science Foundation, in consultation with the Chairmen and 
     Ranking Members of the Committee on Health, Education, Labor, 
     and Pensions of the Senate, the Committee on Commerce, 
     Science, and Transportation of the Senate, the Committee on 
     Education and Labor of the House of Representatives, and the 
     Committee on Science and Technology of the House of 
     Representatives, shall appoint, in accordance with this 
     subsection, the initial voting members of the Board of 
     Directors of the STEM Council.

[[Page S7288]]

       (3) Appointments.--The Director of the National Science 
     Foundation, in consultation with the STEM Council, shall 
     appoint, in accordance with this subsection, a new voting 
     member of the Board of Directors of the STEM Council after a 
     voting member has completed service on the STEM Council.
       (4) Representatives on the stem council.--
       (A) Voting seats.--The Board of Directors of the STEM 
     Council shall consist of the following voting members:
       (i) Two State Governors or former Governors.
       (ii) Two chief State school officers.
       (iii) One local school board representative.
       (iv) One representative from the National Science Board.
       (v) One active classroom teacher in science or mathematics.
       (vi) One active classroom teacher in engineering.
       (vii) One school administrator.
       (viii) One representative from organizations representing 
     community colleges.
       (ix) One representative from organizations representing 
     research universities.
       (x) One representative from technological institutes or 
     organizations representing technological institutes.
       (xi) One representative from informal STEM education 
     organizations.
       (xii) Three representatives from local school boards, State 
     legislatures, and other State and local officials.
       (xiii) Two representatives from various teacher, parent-
     teacher, and STEM education organizations.
       (xiv) Three representatives from various organizations 
     representing industry and business associations with an 
     interest in hiring a STEM-educated workforce.
       (xv) Two representatives from various organizations that 
     support educational initiatives, the Nation's global 
     competitiveness, or STEM education specifically.
       (B) Nonvoting seats.--The Board of Directors of the STEM 
     Council shall consist of nonvoting members for the following 
     seats:
       (i) The two co-chairs of the STEM Committee established 
     under section 3.
       (ii) One representative from the majority party and 1 
     representative from the minority party from each of the 
     following committees:

       (I) The Committee on Health, Education, Labor, and Pensions 
     of the Senate.
       (II) The Committee on Commerce, Science, and Transportation 
     of the Senate.
       (III) The Committee on Education and Labor of the House of 
     Representatives.
       (IV) The Committee on Science and Technology of the House 
     of Representatives.

       (C) Co-chairs.--The Board of Directors of the STEM Council 
     shall have 2 co-chairs who shall be a Governor, or former 
     Governor, and a chief State school officer appointed by the 
     Director of the National Science Foundation in consultation 
     with the Chairmen and Ranking Members of the Committee on 
     Health, Education, Labor, and Pensions of the Senate, the 
     Committee on Commerce, Science, and Transportation of the 
     Senate, the Committee on Education and Labor of the House of 
     Representatives, and the Committee on Science and Technology 
     of the House of Representatives.
       (5) National academy of sciences support.--The Director of 
     the National Science Foundation shall enter into an agreement 
     with the National Academy of Sciences--
       (A) to provide staff support to the Board of Directors of 
     the STEM Council; and
       (B) to carry out any projects proposed by the Board of 
     Directors or required under this Act.
       (d) Activities.--
       (1) Mandatory activities.--
       (A) In general.--The STEM Council shall carry out the 
     following activities:
       (i) Provide leadership by identifying critical deficiencies 
     in the Nation's STEM education systems and proposing 
     strategies for members of the STEM Council to collaborate to 
     address such deficiencies.
       (ii) Not later than 18 months after the date of enactment 
     of this Act, and annually thereafter, the STEM Council shall 
     submit a report that highlights the status of STEM education 
     in the Nation and the States to the Committee on Health, 
     Education, Labor, and Pensions of the Senate, the Committee 
     on Commerce, Science, and Transportation of the Senate, the 
     Committee on Education and Labor of the House of 
     Representatives, the Committee on Science and Technology of 
     the House of Representatives, the Governor of each of the 50 
     States, and the STEM Committee established in section 3. Each 
     report submitted under this clause shall be widely available 
     to the public and posted on the website of the STEM Council.
       (iii) Evaluate progress toward the goals described in the 
     National Action Plan of the National Science Board on a 
     regular and sustained basis, including the effectiveness of 
     the STEM Committee, established under section 3, in 
     coordinating kindergarten through graduate-level Federal STEM 
     education programs.
       (iv) Serve as a national resource by disseminating through 
     the Department of Education to State and local educational 
     agencies information on research on teaching and learning, 
     including best educational practices, and encouraging the 
     adoption of such practices.
       (v) Help States establish or strengthen existing P-16 or P-
     20 STEM councils and serve as a technical resource center for 
     P-16 or P-20 STEM councils.
       (vi) Utilize scientifically valid studies to determine 
     programs that raise student achievement or interest in STEM 
     fields.
       (vii) Direct the Department of Education to promote the 
     programs described in clause (vi) to State educational 
     agencies and local educational agencies.
       (viii) Work with all stakeholders to address--

       (I) the removal of barriers that exist throughout the 
     Nation in recruiting and retaining effective STEM educators; 
     and
       (II) the removal of barriers imposed by local educational 
     agencies on the movement of STEM educators between local 
     educational agencies both within and across States.

       (ix) Propose models for effective teacher professional 
     development.
       (x) Launch a public education initiative to--

       (I) promote STEM fields to the general public, especially 
     to stakeholders that represent individuals identified in 
     section 33 or 34 of the Science and Engineering Equal 
     Opportunities Act (42 U.S.C. 1885a, 1885b); and
       (II) raise awareness that STEM education is essential for 
     the Nation's success.

       (B) Database on federal and non-federal science, 
     technology, engineering, and mathematics educational 
     initiatives.--
       (i) Establishment and maintenance of database.--

       (I) Database.--The STEM Council shall establish and 
     maintain, on a public website of the STEM Council, a database 
     consisting of information on Federal scholarships, 
     fellowships, and other Federal STEM and relevant non-STEM 
     education programs recommended by the STEM Committee 
     established under section 3, as well as non-Federal STEM and 
     relevant non-STEM programs that have been recommended by the 
     Board of Directors of the STEM Council. The database may 
     include information on grants, fellowships, internships, and 
     summer programs at the primary through graduate levels.
       (II) Specific information.--The database established under 
     subclause (I) shall include specific information on any 
     programs of financial assistance that are targeted to 
     individuals of a particular gender, ethnicity, or other 
     demographic group, especially individuals identified in 
     section 33 or 34 of the Science and Engineering Equal 
     Opportunities Act (42 U.S.C. 1885a or 1885b)

       (ii) Dissemination of information on database.--The STEM 
     Council shall take such actions as may be necessary on an 
     ongoing basis, including sending notices to educational 
     institutions, to disseminate information on the database 
     established and maintained under this subparagraph.
       (iii) Listing direct contact information.--The database 
     established under clause (i) shall provide contact 
     information for awards, including the sponsor's website.
       (iv) Approval.--The STEM Council shall review submissions 
     for inclusion on the database established under clause (i) 
     from prospective sponsors to exclude fraudulent scholarship 
     offers and scholarship programs that require the payment of 
     an application fee or other charge. The STEM Council may--

       (I) remove information from the database if the STEM 
     Council determines the information is not in accordance with 
     the purpose of the database; or
       (II) promote those programs most effective at improving 
     student achievement or interest in STEM fields.

       (v) Accuracy.--Information on scholarships included in the 
     database established under clause (i) shall be updated not 
     less often than quarterly in order to provide current and 
     accurate information regarding available scholarships.
       (vi) Links.--The database established under clause (i) may 
     have links to other privately operated online tools designed 
     to help students find scholarships and educational 
     opportunities that are approved by the STEM Council.
       (2) Permissive activities.--The STEM Council may carry out 
     any of the following activities:
       (A) Coordinate the development and maintenance of 
     integrated data management systems to consolidate and share 
     information among States on STEM educational practices, 
     research, and outcomes, including student assessment results, 
     teacher quality measures, and high school graduation 
     requirements.
       (B) Assemble a database of opportunities for teachers 
     interested in summer research in a STEM field in a Government 
     research laboratory, institution of higher education, or 
     STEM-related business or industry.
       (C) Assemble a database of grants and other funding 
     opportunities for STEM classroom resources to be used by 
     teachers and local educational agencies.
       (e) Corporate Powers.--Not later than 1 year after the date 
     of enactment of this Act, the STEM Council shall become a 
     body corporate and as such shall have the authority to do the 
     following:
       (1) To adopt and use a corporate seal.
       (2) To have succession until dissolved by an Act of 
     Congress.
       (3) To appoint, through the actions of its Board of 
     Directors, officers and employees of the STEM Council, to 
     define their duties and responsibilities, fix their 
     compensations, and to dismiss at will such officers or 
     employees.
       (4) To prescribe, through the actions of its Board of 
     Directors, bylaws not inconsistent with Federal law and the 
     laws of the District of Columbia, regulating the manner in 
     which its general business may be conducted and

[[Page S7289]]

     the manner in which the privileges granted to it by law may 
     be exercised.
       (5) To exercise, through the actions of its Board of 
     Directors, all powers specifically granted by the provisions 
     of this section, and such incidental powers as shall be 
     necessary.
       (6) To develop a source of revenue that is in addition to 
     Federal funds provided under this section and that extends 
     later than fiscal year 2013.
       (7) To pay for a small personnel staff, office space, 
     equipment, and travel, including employing not less than 1 
     executive staff member and 2 professional staff members.
       (f) Corporate Funds.--
       (1) Deposit of funds.--The Board of Directors shall deposit 
     all funds of the STEM Council in federally chartered and 
     insured depository institutions until such funds are 
     disbursed under paragraph (2).
       (2) Disbursement of funds.--Funds of the STEM Council may 
     be disbursed only for purposes that are--
       (A) approved by the chief executive of the STEM Council; 
     and
       (B) in accordance with the mission of the STEM Council as 
     specified in subsection (b).
       (g) Use of Mails.--The STEM Council may use the United 
     States mails in the same manner and under the same conditions 
     as the departments and agencies of the United States.
       (h) Federal Advisory Committee Act.--Section 14 of the 
     Federal Advisory Committee Act (5 U.S.C. App) shall not apply 
     to the STEM Council.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated to the STEM Council to carry out this 
     section $2,000,000 for each of fiscal years 2009 through 
     2013.

     SEC. 3. COMMITTEE ON SCIENCE, TECHNOLOGY, ENGINEERING, AND 
                   MATHEMATICS EDUCATION.

       (a) Establishment.--There is established within the 
     National Science and Technology Council a standing committee 
     on science, technology, engineering, and mathematics 
     education (referred to in this section as the ``STEM 
     Committee'').
       (b) Members.--
       (1) In general.--The STEM Committee shall be composed of 
     representatives from all Federal departments and agencies 
     involved in STEM education, including the National 
     Laboratories.
       (2) Co-chairs.--The STEM Committee shall have 2 co-chairs--
       (A) one of whom shall be a representative from the National 
     Science Foundation; and
       (B) one of whom shall be the Secretary of Education or a 
     designee of the Secretary.
       (c) Duties and Responsibilities.--The STEM Committee 
     shall--
       (1) coordinate all programs related to education in 
     science, technology, engineering, and mathematics (referred 
     to in this section as ``STEM'') fields funded or administered 
     by the Federal Government;
       (2) conduct an ongoing inventory and assessment of the 
     effectiveness of all Federal education initiatives related to 
     STEM fields, especially with regard to how the initiatives 
     are serving those individuals identified in section 33 or 34 
     of the Science and Engineering Equal Opportunities Act (42 
     U.S.C. 1885a, 1885b);
       (3) disseminate the annual report received from the STEM 
     Council under section 2(d)(1)(A)(ii) to each Federal Agency 
     engaged in STEM education efforts;
       (4) coordinate among all Federal departments and agencies 
     involved in STEM education research and programs to inventory 
     and assess the effectiveness and coherence of Federally 
     funded STEM education programs; and
       (5) represent all Federal agencies on the National Council 
     for STEM Education and coordinate the STEM education efforts 
     of the Federal government with State and local governments 
     through the National Council for STEM Education.
       (d) Meetings.--The STEM Committee shall meet not less 
     frequently than quarterly.

     SEC. 4. EVALUATION OF SCIENCE, TECHNOLOGY, ENGINEERING, AND 
                   MATHEMATICS PROGRAMS OF THE DEPARTMENT OF 
                   EDUCATION.

       (a) In General.--The Secretary of Education shall conduct, 
     directly or though contract, a comprehensive evaluation of 
     all science, technology, engineering, and mathematics 
     education (referred to in this section as ``STEM education'') 
     programs of the Department of Education.
       (b) Programs to Evaluate.--The STEM education programs that 
     shall be evaluated under subsection (a) shall include the 
     following:
       (1) The Mathematics and Science Partnerships program.
       (2) The Math Now for Elementary School and Middle School 
     Students program.
       (3) The Math Skills for Secondary School Students program.
       (4) The Minority Science and Engineering Improvement 
     program.
       (5) The Teachers for a Competitive Tomorrow program.
       (6) The National Science and Mathematics Access to Retain 
     Talent grant program (the National SMART grant program).
       (7) The Teacher Education Assistance for College and Higher 
     Education Grants program (the TEACH Grants program).
       (8) The Academic Competitiveness Grant program.
       (9) Grant programs authorized under the Carl D. Perkins 
     Career and Technical Education Act of 2006.
       (c) Content of Evaluation.--The evaluation conducted under 
     subsection (a) shall--
       (1) examine the coherence of the Department of Education in 
     administering STEM education programs, including identifying 
     unnecessary or harmful overlap;
       (2) identify the unmet State and local education needs that 
     could be filled with reorganization or expansion of STEM 
     education programs existing on the date of the evaluation;
       (3) evaluate the ease of access to information on STEM 
     education programs by students, educators, and others target 
     populations;
       (4) evaluate the ability of the Department of Education to 
     disseminate information from the STEM Council established 
     under section 2; and
       (5) propose how the Department of Education can address any 
     needs or problems identified in paragraphs (2), (3), and (4).
       (d) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Education, or the 
     entity with whom the Secretary contracts to conduct the 
     evaluation under subsection (a), shall submit to Congress a 
     report of such evaluation.
                                 ______
                                 
      By Mr. DURBIN:
  S. 3326. A bill to authorize the Secretary of Education to award 
grants to local education agencies to improve college access; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. DURBIN. Mr. President, I rise today to introduce legislation 
designed to make it easier for students to reach college and to succeed 
in college. An educated workforce is crucial to the success of the 
American economy, but too many students are not receiving a college 
education. Of students who were in eighth grade in 2000, only 20 
percent of the lowest-income students will earn a college degree by 
2012, compared to 68 percent of the highest income group. Every student 
who wants to go to college should have that opportunity, and we should 
provide them with the tools they need. Today, I am introducing the 
Pathways to College Act, which creates grants for school districts to 
help them increase the number of low-income students who are entering 
and succeeding in college.
  Lack of guidance and information about college has a real effect on 
students in poor schools. The Consortium on Chicago School Research 
recently released a report called ``Potholes on the Road to College.'' 
This report examines the difficulties faced by Chicago Public School 
students during the college application process. The Consortium 
discovered that only 41 percent of Chicago Public School students who 
wanted to go to college took the steps necessary to apply to and enroll 
in a 4-year college. Only one-third of students enrolled in a college 
that matched their qualifications. Of the students who had the grades 
and test scores to attend a selective college, 29 percent went to a 
community college or skipped college entirely.
  But the most heartbreaking parts of this report are the profiles of 
smart, ambitious students who find themselves helplessly lost in the 
college admissions process. One student, Amelia, worked hard in her 
classes at Silverstein High School and dreamed of studying criminal 
justice. Amelia never received the help she needed to achieve her goal. 
The wait was two weeks to see a guidance counselor, and so Amelia 
learned about the process on her own. She did not apply for federal 
financial aid and ended up at a local community college where she 
described the classes as easy and ``just like high school.''
  The Pathways to College Act would create a grant program for school 
districts serving low-income students to increase their college-
enrollment rates. The Consortium's ``Potholes'' report found that the 
most important factor in whether students enroll in a four-year college 
is if they attended a school where teachers create a strong college-
going culture and help students with the process of applying. The 
Pathways to College Act would provide the funding to help school 
districts improve the college-going culture in schools and guide 
students through the college admissions process.
  A school with a strong college culture is a school where the 
expectation throughout the school is that every single student will go 
to college. Administrators, teachers, and staff members embrace and act 
on that goal every day. With a grant through the Pathways to College 
Act, schools could train student leaders, integrate college planning 
into the curriculum, and provide opportunities for college fairs, 
college tours, and workplace visits. Most

[[Page S7290]]

importantly, teachers and counselors would be trained in post-secondary 
advising so that they can motivate their students to reach for high 
goals. Every school in the school district would incorporate these 
elements and others into a school-wide plan of action to strengthen the 
college-going culture.
  KIPP Ascend Charter School in Chicago is a school that does this 
well. A few weeks ago, a group of eighth grade students from KIPP came 
to my constituent coffee here in Washington. Each one was wearing a 
shirt that said ``I am college bound.'' Every child and each teacher 
believed the message on those shirts, and I did too. The facts prove we 
are all right. Eighty percent of students in the KIPP program nation-
wide attend college. KIPP accomplishes this by training teachers to 
constantly reinforce high college expectations. If you walk into a KIPP 
classroom, you see college posters on the walls and hear college 
discussed as part of the day's lesson. If you ask the students about 
going to college, they will answer without hesitation and might tell 
you about their last field trip to a local university. When you combine 
those clear, high expectations with KIPP's rigorous college-preparatory 
curriculum, you can understand their enormous success.
  The Pathways to College Act will also give school districts the tools 
they need to help students meet their high aspirations. Participating 
school districts would provide each high school freshman with at least 
one meeting with an advisor to discuss their goals post-graduation and 
create a plan to reach those goals. School districts would also educate 
students and families about the intricacies of the college application 
process and the federal financial aid application process. The average 
student-to-counselor ratio in high schools is 315 to one, but schools 
could use grant money to hire more counselors and form partnerships 
with community groups to help students with college applications and 
financial aid forms. School districts also consider could create 
college planning classes or establish a college access center in their 
school.
  The Pathways to College Act provides flexibility to school districts 
to achieve higher college enrollment rates, but requires that each 
school accurately track their results so we can learn from what works. 
Chicago Public Schools is doing a great job--both in tackling the 
problem and in documenting progress. Under the leadership of CEO Arne 
Duncan, Chicago Public Schools responded aggressively to the 
``Potholes'' report. A team of postsecondary coaches were deployed in 
high schools to work with students and counselors. To ensure that 
financial aid is not a roadblock, FAFSA completion rates are tracked so 
that counselors can follow-up with students. A spring-break college 
tour took 500 students to see colleges across the country. Because 
Chicago Public Schools tracks its college enrollment rates, we know 
that their efforts are working. Half of the 2007 graduating class 
enrolled in college, an increase of 6.5 percent in four years. The 
national increase was less than one percent in the same time-frame. 
Nationally, the number of African-American graduates going to college 
has decreased by six percent over the last four years while the Chicago 
rate has increased by almost eight percent.
  Applying to college is not easy. Low-income students often need the 
most help to achieve their college dreams. When schools focus on 
college and provide the tools to get there, students make the 
connection between the work they are doing now and their future goals 
in college and life. Students in those schools are more likely enroll 
in college and are also more likely to work hard in high school to be 
prepared for college when they arrive. The bill I am introducing today 
tries to ensure that lack of information never prevents a student from 
achieving his or her college dream.
  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. 3326

       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 ``Pathways to College Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) An educated workforce is crucial to the success of the 
     United States economy. Access to higher education for all 
     students is critical to maintaining an educated workforce. 
     More than 80 percent of the 23,000,000 jobs that will be 
     created in the next 10 years will require postsecondary 
     education. Only 36 percent of all 18- to 24-year olds are 
     currently enrolled in postsecondary education.
       (2) Workers with bachelor's degrees earn on average $17,000 
     more annually than workers with only high school diplomas. 
     Workers who earn bachelor's degrees can be expected to earn 
     $1,000,000 more over a lifetime than those who only finished 
     high school.
       (3) The ACT recommends that schools--
       (A) provide student guidance to engage students in college 
     and career awareness; and
       (B) ensure that students enroll in a rigorous curriculum to 
     prepare for postsecondary education.
       (4) The Department of Education reports that the average 
     student-to-counselor ratio in high schools is 315:1. This 
     falls far above the ratio recommended by the American School 
     Counselor Association, which is 250:1. While school 
     counselors at private schools spend an average of 58 percent 
     of their time on postsecondary education counseling, 
     counselors in public schools spend an average of 25 percent 
     of their time on postsecondary education counseling.
       (5) While just 57 percent of students from the lowest 
     income quartile enroll in college, 87 percent of students 
     from the top income quartile enroll. Of students who were in 
     eighth grade in 2000, only 20 percent of the lowest-income 
     students are projected to attain a bachelor's degree by 2012, 
     compared to 68 percent of the highest income group, according 
     to the Advisory Committee on Student Financial Assistance in 
     2006.
       (6) A recent report by the Consortium on Chicago School 
     Research found that only 41 percent of Chicago public school 
     students who aspire to go to college took the steps necessary 
     to apply to and enroll in a 4-year institution of higher 
     education. The report also reveals that only \1/3\ of Chicago 
     students who want to attend a 4-year institution of higher 
     education enroll in a school that matches their 
     qualifications. Even among students qualified to attend a 
     selective college, 29 percent enrolled in a community college 
     or did not enroll at all.
       (7) The Consortium found that many Chicago public school 
     students do not complete the Free Application for Federal 
     Student Aid, even though students who apply for Federal 
     financial aid are 50 percent more likely to enroll in 
     college. Sixty-five percent of public secondary school 
     counselors at low-income schools believe that students and 
     parents are discouraged from considering college as an option 
     due to lack of knowledge about financial aid.
       (8) Low-income and first-generation families often 
     overestimate the cost of tuition and underestimate available 
     aid; students from these backgrounds have access to fewer 
     college application resources and financial aid resources 
     than other groups, and are less likely to fulfill their 
     postsecondary plans as a result.
       (9) College preparation intervention programs can double 
     the college-going rates for at-risk youth, can expand 
     students' educational aspirations, and can boost college 
     enrollment and graduation rates.

     SEC. 3. GRANT PROGRAM.

       (a) Definitions.--In this Act:
       (1) ESEA definitions.--The terms ``local educational 
     agency'' and ``Secretary'' have the meanings given the terms 
     in section 9101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7801).
       (2) Eligible local educational agency.--The term ``eligible 
     local educational agency'' means a local educational agency 
     in which a majority of the secondary schools served by the 
     agency are high-need secondary schools.
       (3) High-need secondary school.--The term ``high-need 
     secondary school'' means a secondary school in which not less 
     than 50 percent of the students enrolled in the school are--
       (A) eligible for a school lunch program under the Richard 
     B. Russell National School Lunch Act;
       (B) eligible to be counted under section 1124(c) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6333(c)); or
       (C) in families eligible for assistance under the State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.).
       (b) Competitive Grants to Eligible Local Educational 
     Agencies.--The Secretary is authorized to award grants, on a 
     competitive basis, to eligible local educational agencies to 
     carry out the activities described in this section.
       (c) Duration.--Grants awarded under this section shall be 5 
     years in duration.
       (d) Distribution.--In awarding grants under this section, 
     the Secretary shall ensure that the grants are distributed 
     among the different geographic regions of the United States, 
     and among eligible local educational agencies serving urban 
     and rural areas.
       (e) Applications.--
       (1) In general.--Each eligible local educational agency 
     desiring a grant under this section shall submit an 
     application to the

[[Page S7291]]

     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       (2) Contents.--Each application submitted under paragraph 
     (1) shall include a description of the program to be carried 
     out with grant funds and--
       (A) a description of the secondary school population to be 
     targeted by the program, the particular college-access needs 
     of such population, and the resources available for meeting 
     such needs;
       (B) an outline of the objectives of the program, including 
     goals for increasing the number of college applications 
     submitted by each student, increasing Free Application for 
     Federal Student Aid completion rates, and increasing school-
     wide college enrollment rates across the local educational 
     agency;
       (C) a description of the local educational agency's plan to 
     work cooperatively with programs funded under chapters 1 and 
     2 of subpart 2 of part A of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070a-11 et seq. and 1070a-21 et 
     seq.), including the extent to which the agency commits to 
     sharing facilities, providing access to students, and 
     developing compatible record-keeping systems;
       (D) a description of the activities, services, and training 
     to be provided by the program, including a plan to provide 
     structure and support for all students in the college search, 
     planning, and application process;
       (E) a description of the methods to be used to evaluate the 
     outcomes and effectiveness of the program;
       (F) an assurance that grant funds will be used to 
     supplement, and not supplant, any other Federal, State, or 
     local funds available to carry out activities of the type 
     carried out under the grant;
       (G) an explanation of the method used for calculating 
     college enrollment rates for each secondary school served by 
     the eligible local educational agency that is based on 
     externally verified data, and, when possible, aligned with 
     existing State or local methods; and
       (H) a plan to make the program sustainable over time, 
     including the use of matching funds from non-Federal sources.
       (3) Method of calculating enrollment rates.--
       (A) In general.--A method included in an application under 
     paragraph (2)(G)--
       (i) shall, at a minimum, track students' first-time 
     enrollment in institutions of higher education; and
       (ii) may track progress toward completion of a 
     postsecondary degree.
       (B) Development in conjunction.--An eligible local 
     educational agency may develop a method pursuant to paragraph 
     (2)(G) in conjunction with an existing public or private 
     entity that currently maintains such a method.
       (f) Special Consideration.--In awarding grants under this 
     section, the Secretary shall give special consideration to 
     applications from eligible local educational agencies serving 
     schools with the highest percentages of poverty.
       (g) Use of Funds.--
       (1) In general.--An eligible local educational agency that 
     receives a grant under this section shall develop and 
     implement, or expand, a program to increase the number of 
     low-income students who enroll in postsecondary educational 
     institutions, including institutions with competitive 
     admissions criteria.
       (2) Required use of funds.--Each program funded under this 
     section shall--
       (A) provide professional development to secondary school 
     teachers and counselors in postsecondary education advising;
       (B) ensure that each student has not less than 1 meeting, 
     not later than the first semester of the first year of 
     secondary school, with a school counselor, college access 
     personnel (including personnel involved in programs funded 
     under chapters 1 and 2 of subpart 2 of part A of title IV of 
     the Higher Education Act of 1965 (20 U.S.C. 1070a-11 et seq. 
     and 1070a-21 et seq.)), trained teacher, or other 
     professional or organization, such as a community-based 
     organization, approved by the school, to discuss 
     postsecondary options, outline postsecondary goals, and 
     create a plan to achieve those goals;
       (C) provide information to all students enrolled in the 
     secondary schools served by the eligible local educational 
     agency and parents beginning in the first year of secondary 
     school on--
       (i) the economic and social benefits of higher education;
       (ii) college expenses, including information about expenses 
     by institutional type, differences between sticker price and 
     net price, and expenses beyond tuition;
       (iii) paying for college, including the availability, 
     eligibility, and variety of financial aid; and
       (iv) the forms and processes associated with applying for 
     financial aid; and
       (D) ensure that each secondary school served by the 
     eligible local educational agency develops a comprehensive, 
     school-wide plan of action to strengthen the college-going 
     culture within the school.
       (3) Allowable use of funds.--Each program funded under this 
     section may--
       (A) establish mandatory postsecondary planning classes for 
     secondary school seniors to assist the seniors in the college 
     preparation and application process;
       (B) hire and train postsecondary coaches with expertise in 
     the college-going process;
       (C) increase the number of counselors who specialize in the 
     college-going process serving students;
       (D) train student leaders to assist in the creation of a 
     college-going culture in their schools;
       (E) provide opportunities for students to explore 
     postsecondary opportunities outside of the school setting, 
     such as college fairs, career fairs, college tours, workplace 
     visits, or other similar activities;
       (F) assist students with test preparation, college 
     applications, Federal financial aid applications, and 
     scholarship applications;
       (G) establish partnerships with programs funded under 
     chapters 1 and 2 of subpart 2 of part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070a-11 et seq. and 
     1070a-21 et seq.)), and with community and nonprofit 
     organizations to increase college-going rates at secondary 
     schools served by the eligible local educational agency;
       (H) provide long-term postsecondary follow up with 
     graduates of the secondary schools served by the eligible 
     local educational agencies, including increasing alumni 
     involvement in mentoring and advising roles within the 
     secondary school;
       (I) create and maintain a postsecondary access center in 
     the school setting that provides information on colleges and 
     universities, career opportunities, and financial aid options 
     and provide a setting in which professionals working in 
     programs funded under chapters 1 and 2 of subpart 2 of part A 
     of title IV of the Higher Education Act of 1965 (20 U.S.C. 
     1070a-11 et seq. and 1070a-21 et seq.)), can meet with 
     students;
       (J) deliver college and career planning curriculum as a 
     stand-alone course, or embedded in other classes, for all 
     students in secondary school; and
       (K) increase parent involvement in preparing for 
     postsecondary opportunities.
       (h) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds available to carry out 
     the activities described in this section.
       (i) Technical Assistance.--The Secretary, directly or 
     through contracting through a full and open process with 1 or 
     more organizations that have demonstrated experience 
     providing technical assistance to raise school-wide college 
     enrollment rates in local educational agencies in not less 
     than 3 States, shall provide technical assistance to grantees 
     in carrying out this section. The technical assistance 
     shall--
       (1) provide assistance in the calculation and analysis of 
     college-going rates for all grant recipients;
       (2) provide semi-annual analysis to each grant recipient 
     recommending best practices based on a comparison of the 
     recipient's data with that of secondary schools with similar 
     demographics; and
       (3) provide annual best practices conferences for all grant 
     recipients.
       (j) Evaluation and Reporting Requirements.--
       (1) Measure enrollment and track data.--Each eligible local 
     educational agency that receives a grant under this section 
     shall--
       (A) measure externally verified school-wide college 
     enrollment; and
       (B) track data that leads to increased college going, 
     including college applications sent and Free Application for 
     Federal Student Aid forms filed.
       (2) Evaluations by grantees.--Each eligible local 
     educational agency that receives a grant under this section 
     shall--
       (A) conduct periodic evaluations of the effectiveness of 
     the activities carried out under the grant toward increasing 
     school-wide college-going rates;
       (B) use such evaluations to refine and improve activities 
     conducted with the grant and the performance measures for 
     such activities; and
       (C) make the results of such evaluations publicly 
     available, including by providing public notice of such 
     availability.
       (3) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of Congress a report concerning the 
     results of--
       (A) the evaluations conducted under paragraph (2); and
       (B) an evaluation conducted by the Secretary to analyze the 
     effectiveness and efficacy of the activities conducted with 
     grants under this section.
                                 ______
                                 
      By Mr. KERRY (for himself and Mr. Grassley):
  S. 3327. A bill amend title XIX of the Social Security Act to improve 
the State plan amendment option for providing home and community-based 
services under the Medicaid program, and for other purposes; to the 
Committee on Finance.
  Mr. KERRY. Mr. President, every day millions of Americans are faced 
with significant challenges when it comes to meeting their own personal 
needs or caring for a loved one who needs significant support. Many 
elderly Americans and individuals of all ages with disabilities need 
long-term services and supports, such as assistance with dressing, 
bathing, preparing meals, and managing chronic conditions. They prefer 
to live and work in their community, and it is time that the Federal

[[Page S7292]]

Government and states act as better partners to provide improved access 
to home- and community-based long-term care services HCBS.
  The Medicaid program, administered by the states but jointly financed 
with the Federal Government, is our Nation's largest payer for long-
term care services. Medicaid spends about $100 billion per year on 
long-term services. Despite recognizing that per person spending is 
much lower in community settings, and that people generally prefer 
community services, Medicaid still spends 61 percent of its long-term 
services spending in institutional settings. This disparity is due, in 
large part, to a strong access and payment bias in the program for 
institutional care.
  Where Medicaid does offer HCBS, it is often in short supply, with 
more than 280,000 Medicaid beneficiaries on waiting lists for HCBS 
waiver services. Further, eligibility for HCBS waiver services requires 
beneficiaries to already have a very significant level of disability 
before gaining access they must meet a level of functional need that 
qualifies them for a nursing home. This not only contributes to the 
unmet needs of those in the community but it also prevents states from 
providing services that can help prevent beneficiaries from one day 
requiring high-cost institutional care. While institutionalized care 
may be an appropriate choice for some, it should be just that: a choice 
that individuals and families are allowed to make about the most 
appropriate setting for their own care.
  The result of Medicaid's ``institutional bias'' is that, according to 
the Georgetown Health Policy Institute, ``one in five persons living in 
the community with a need for assistance from others has unmet needs, 
endangering their health and demeaning their quality of life.'' This is 
simply unacceptable.
  The lack of long-term care options available to families has a 
significant impact on their lives. Many of my constituents are 
affected, as are countless Americans across the country. Take the 
parents living in Newton who continue to wait for their physically 
disabled daughter, Julia, to have the opportunity to live 
independently. Julia is a young adult and instead of starting out on 
her own, she must watch as her peers move away and begin their 
independent lives- something she yearns to do as well. Growing up, 
Julia was able to attend Newton schools and keep a similar schedule to 
other children in the community but now has limited social interaction, 
as there is no other option but to live at home with her parents. 
Julia's parents are her full time caregivers and would like to see her 
able to live in an environment more conducive to both her needs and 
their own. Community based care or home based care in an apartment she 
could share with a roommate are options Julia and her parents would 
mutually benefit from. As the opportunities for the future grow for her 
peers, Julia's options continue to shrink because housing and home 
based supports for adults with disabilities are limited at best. I have 
heard many stories similar to that of Julia, which emphasizes the 
urgency in which HCBS is needed. In addition to individual lives being 
put on hold, entire families must deal with the consequences of 
inadequate services available to their family members.
  Access to HCBS affects individuals in all stages of life, including 
Americans dealing with conditions such as Alzheimer's. Take Ann Bowers 
and Jay Sweatman for example. Without access to HCBS services, Jay, who 
suffers from early onset Alzheimer's, was forced to first move into 
assisted living and then a nursing home. By the time Jay was approved 
for HCBS it was too late and he was no longer able to live 
independently. Ann had worked tirelessly to coordinate her husband's 
care and get additional HCBS support but the process was so difficult 
that by the time help came, it was simply too late. This is just one 
case of many where early HCBS intervention would have not only saved 
time, money, and stress for family members, but would have made a 
significant impact on the quality of life and personal independence for 
Jay and Ann.
  So today, I am introducing with my colleague from the Finance 
Committee, Senator Grassley, the Empowered at Home Act, a bill that 
increases access to home and community based services by giving states 
new tools and incentives to make these services more available to those 
in need. It has four basic parts.
  First, it will improve the Medicaid HCBS State Plan Amendment Option 
by giving states more flexibility in determining eligibility for which 
services they can offer under the program, which will create greater 
options for individuals in need of long-term supports. In return we ask 
that states no longer cap enrollment and that services be offered 
throughout the entire state.
  Second, the bill ensures that the same spousal impoverishment 
protections offered for new nursing home beneficiaries will be in place 
for those opting for home and community based services. In addition, 
low-income recipients of home and community based services will be able 
to keep more of their assets when they become eligible for Medicaid, 
allowing them to stay in their community as long as possible.
  Third, the Empowered at Home Act addresses the financial needs of 
spouses and family members caring for a loved one by offering tax-
related provisions to support family caregivers and promote the 
purchase of meaningful private long-term care insurance.
  Finally, the bill seeks to improve the overall quality of home and 
community based services available by providing grants for states to 
invest in organizations and systems that can help to ensure a 
sufficient supply of high quality workers, promote health, and 
transform home and community based care to be more consumer-centered.
  I want to say a word about the Community Choice Act, legislation 
long-championed by Senator Harkin that would make HCBS a mandatory 
benefit in Medicaid. I am a strong supporter and co-sponsor of this 
landmark legislation, and look forward to working for its enactment as 
soon as possible. The legislation I am introducing today seeks to 
supplement--not supplant--the Community Choice Act by increasing access 
to HCBS for those who are disabled but not at a sufficient level of 
need to qualify for nursing home services. These two complimentary 
bills will finally make HCBS a right while vastly improving HCBS 
availability to vulnerable citizens of varying levels of disability.
  I would also like to thank a number of organizations who have been 
integral to the development of the Empowered at Home Act and who have 
endorsed it today, including the National Council on Aging, the Arc of 
the United States, United Cerebral Palsy, the American Association of 
Homes and Services for the Aging, the Alzheimer's Association, the 
National Association of Area Agencies on Aging, the American Geriatrics 
Society, ANCOR, the Trust for America's Health, and SEIU.
  Improving access to a range of long term care services for the 
elderly and Americans of all ages with disabilities is an issue that 
must not stray from the top of our Nation's health care priorities. I 
believe this legislation can move forward in a bi-partisan manner to 
dramatically improve access to high-quality home- and community-based 
care for the millions of Americans who are not receiving the 
significant supports and services they need.
  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. 3327

       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 ``Empowered 
     at Home Act of 2008''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

TITLE I--STRENGTHENING THE MEDICAID HOME AND COMMUNITY-BASED STATE PLAN 
                            AMENDMENT OPTION

Sec. 101. Removal of barriers to providing home and community-based 
              services under State plan amendment option for 
              individuals in need.
Sec. 102. State option to provide home and community-based services to 
              individuals for whom such services are likely to prevent, 
              delay, or decrease the likelihood of an individual's need 
              for institutionalized care.

[[Page S7293]]

Sec. 103. Implementation assistance grants for States electing to 
              provide home and community-based services under Medicaid 
              through the State plan amendment option.

TITLE II--STATE GRANTS TO FACILITATE HOME AND COMMUNITY-BASED SERVICES 
                           AND PROMOTE HEALTH

Sec. 201. Reauthorization of medicaid transformation grants and 
              expansion of permissible uses in order to facilitate the 
              provision of home and community-based and other long-term 
              care services.
Sec. 202. Health promotion grants.

                  TITLE III--LONG TERM CARE INSURANCE

Sec. 301. Treatment of premiums on qualified long-term care insurance 
              contracts.
Sec. 302. Credit for taxpayers with long-term care needs.
Sec. 303. Treatment of premiums on qualified long-term care insurance 
              contracts.
Sec. 304. Additional consumer protections for long-term care insurance.

          TITLE IV--PROMOTING AND PROTECTING COMMUNITY LIVING

Sec. 401. Mandatory application of spousal impoverishment protections 
              to recipients of home and community-based services.
Sec. 402. State authority to elect to exclude up to 6 months of average 
              cost of nursing facility services from assets or 
              resources for purposes of eligibility for home and 
              community-based services.

                         TITLE V--MISCELLANEOUS

Sec. 501. Improved data collection.
Sec. 502. GAO report on Medicaid home health services and the extent of 
              consumer self-direction of such services.

TITLE I--STRENGTHENING THE MEDICAID HOME AND COMMUNITY-BASED STATE PLAN 
                            AMENDMENT OPTION

     SEC. 101. REMOVAL OF BARRIERS TO PROVIDING HOME AND 
                   COMMUNITY-BASED SERVICES UNDER STATE PLAN 
                   AMENDMENT OPTION FOR INDIVIDUALS IN NEED.

       (a) Parity With Income Eligibility Standard for 
     Institutionalized Individuals.--Paragraph (1) of section 
     1915(i) of the Social Security Act (42 U.S.C. 1396n(i)) is 
     amended by striking ``150 percent of the poverty line (as 
     defined in section 2110(c)(5))'' and inserting ``300 percent 
     of the supplemental security income benefit rate established 
     by section 1611(b)(1)''.
       (b) Additional State Option to Provide Home and Community-
     Based Services to Individuals Eligible for Services Under a 
     Waiver.--Section 1915(i) of the Social Security Act (42 
     U.S.C. 1396n(i)) is amended by adding at the end the 
     following new paragraph:
       ``(6) State option to provide home and community-based 
     services to individuals eligible for services under a 
     waiver.--
       ``(A) In general.--A State that provides home and 
     community-based services in accordance with this subsection 
     to individuals who satisfy the needs-based criteria for the 
     receipt of such services established under paragraph (1)(A) 
     may, in addition to continuing to provide such services to 
     such individuals, elect to provide home and community-based 
     services in accordance with the requirements of this 
     paragraph to individuals who are eligible for home and 
     community-based services under a waiver approved for the 
     State under subsection (c), (d), or (e) or under section 1115 
     to provide such services, but only for those individuals 
     whose income does not exceed 300 percent of the supplemental 
     security income benefit rate established by section 
     1611(b)(1).
       ``(B) Application of same requirements for individuals 
     satisfying needs-based criteria.--Subject to subparagraph 
     (C), a State shall provide home and community-based services 
     to individuals under this paragraph in the same manner and 
     subject to the same requirements as apply under the other 
     paragraphs of this subsection to the provision of home and 
     community-based services to individuals who satisfy the 
     needs-based criteria established under paragraph (1)(A).
       ``(C) Authority to offer different type, amount, duration, 
     or scope of home and community-based services.--A State may 
     offer home and community-based services to individuals under 
     this paragraph that differ in type, amount, duration, or 
     scope from the home and community-based services offered for 
     individuals who satisfy the needs-based criteria established 
     under paragraph (1)(A), so long as such services are within 
     the scope of services described in paragraph (4)(B) of 
     subsection (c) for which the Secretary has the authority to 
     approve a waiver and do not include room or board.''.
       (c) Removal of Limitation on Scope of Services.--Paragraph 
     (1) of section 1915(i) of the Social Security Act (42 U.S.C. 
     1396n(i)), as amended by subsection (a), is amended by 
     striking ``or such other services requested by the State as 
     the Secretary may approve''
       (d) Optional Eligibility Category to Provide Full Medicaid 
     Benefits to Individuals Receiving Home and Community-Based 
     Services Under a State Plan Amendment.--
       (1) In general.--Section 1902(a)(10)(A)(ii) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended--
       (A) in subclause (XVIII), by striking ``or'' at the end;
       (B) in subclause (XIX), by adding ``or'' at the end; and
       (C) by inserting after subclause (XIX), the following new 
     subclause:

       ``(XX) who are eligible for home and community-based 
     services under needs-based criteria established under 
     paragraph (1)(A) of section 1915(i), or who are eligible for 
     home and community-based services under paragraph (6) of such 
     section, and who will receive home and community-based 
     services pursuant to a State plan amendment under such 
     subsection;''.

       (2) Conforming amendments.--
       (A) Section 1903(f)(4) of the Social Security Act (42 
     U.S.C. 1396b(f)(4)) is amended in the matter preceding 
     subparagraph (A), by inserting ``1902(a)(10)(A)(ii)(XX),'' 
     after ``1902(a)(10)(A)(ii)(XIX),''.
       (B) Section 1905(a) of the Social Security Act (42 U.S.C. 
     1396d(a)) is amended in the matter preceding paragraph (1)--
       (i) in clause (xii), by striking ``or'' at the end;
       (ii) in clause (xiii), by adding ``or'' at the end; and
       (iii) by inserting after clause (xiii) the following new 
     clause:
       ``(xiv) individuals who are eligible for home and 
     community-based services under needs-based criteria 
     established under paragraph (1)(A) of section 1915(i), or who 
     are eligible for home and community-based services under 
     paragraph (6) of such section, and who will receive home and 
     community-based services pursuant to a State plan amendment 
     under such subsection,''.
       (e) Elimination of Option to Limit Number of Eligible 
     Individuals or Length of Period for Grandfathered Individuals 
     if Eligibility Criteria Is Modified.--Paragraph (1) of 
     section 1915(i) of such Act (42 U.S.C. 1396n(i)) is amended--
       (1) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Projection of number of individuals to be provided 
     home and community-based services.--The State submits to the 
     Secretary, in such form and manner, and upon such frequency 
     as the Secretary shall specify, the projected number of 
     individuals to be provided home and community-based 
     services.''; and
       (2) in subclause (II) of subparagraph (D)(ii), by striking 
     ``to be eligible for such services for a period of at least 
     12 months beginning on the date the individual first received 
     medical assistance for such services'' and inserting ``to 
     continue to be eligible for such services after the effective 
     date of the modification and until such time as the 
     individual no longer meets the standard for receipt of such 
     services under such pre-modified criteria''.
       (f) Elimination of Option to Waive Statewideness.--
     Paragraph (3) of section 1915(i) of such Act (42 U.S.C. 
     1396n(3)) is amended by striking ``section 1902(a)(1) 
     (relating to statewideness) and''.
       (g) Effective Date.--The amendments made by this section 
     take effect on the first day of the first fiscal year quarter 
     that begins after the date of enactment of this Act.

     SEC. 102. STATE OPTION TO PROVIDE HOME AND COMMUNITY-BASED 
                   SERVICES TO INDIVIDUALS FOR WHOM SUCH SERVICES 
                   ARE LIKELY TO PREVENT, DELAY, OR DECREASE THE 
                   LIKELIHOOD OF AN INDIVIDUAL'S NEED FOR 
                   INSTITUTIONALIZED CARE.

       (a) State Plan Amendment Required.--
       (1) In general.--Section 1915 of the Social Security Act 
     (42 U.S.C. 1396n) is amended by adding at the end the 
     following new subsection:
       ``(k) State Plan Amendment Option to Provide Home and 
     Community-Based Services to Individuals for Whom Such 
     Services Are Likely to Prevent, Delay, or Decrease the 
     Likelihood of an Individual's Need for Institutionalized 
     Care.--
       ``(1) In general.--Subject to the succeeding provisions of 
     this subsection, a State that has an approved State plan 
     amendment under subsection (i) may provide, through a State 
     plan amendment for the provision of medical assistance for 
     home and community-based services that are within the scope 
     of services described in paragraph (4)(B) of subsection (c) 
     for which the Secretary has the authority to approve a waiver 
     and do not include room or board to individuals--
       ``(A) who are not otherwise eligible for medical assistance 
     under the State plan or under a waiver of such plan;
       ``(B) whose income does not exceed 300 percent of the 
     supplemental security income benefit rate established by 
     section 1611(b)(1); and
       ``(C) who satisfy such needs-based criteria for determining 
     eligibility for medical assistance for such services as the 
     State shall establish in accordance with paragraph (2).
       ``(2) Requirement for needs-based criteria.--In 
     establishing needs-based criteria for purposes of determining 
     eligibility for medical assistance for home and community-
     based services under this subsection, a State shall specify 
     the specific physical, mental, cognitive, or intellectual 
     impairments, or the inability of an individual to perform 1 
     or more specific activities of daily living (as defined in 
     section 7702B(c)(2)(B) of the Internal Revenue Code of 1986) 
     or the need for significant assistance to perform such 
     activities, for which the State determines that the provision 
     of home and community-based services are reasonably expected 
     to prevent, delay, or decrease the likelihood of an 
     individual's need for institutionalized care.
       ``(3) Application of same requirements for providing home 
     and community-based

[[Page S7294]]

     services under subsection (i).--Subject to paragraphs (4) and 
     (5), a State shall provide home and community-based services 
     to individuals under this paragraph in the same manner and 
     subject to the same requirements as apply to the provision of 
     home and community-based services to individuals under 
     subsection (i).
       ``(4) Authority to limit number of individuals.--A State 
     may limit the number of individuals who are eligible to 
     receive home and community-based services under this 
     subsection and may establish waiting lists for the receipt of 
     such services.
       ``(5) Authority to offer different type, amount, duration, 
     or scope of home and community-based services.--A State may 
     offer home and community-based services to individuals under 
     this subsection that differ in type, amount, duration, or 
     scope from the home and community-based services offered for 
     individuals under paragraph (1)(A) of subsection (i) and, if 
     applicable, under paragraph (6) of such subsection.''.
       (2) Optional categorically needy group; state option to 
     limit benefits to home and community-based services or to 
     provide full medical assistance.--
       (A) In general.--Section 1902(a)(10) of the Social Security 
     Act (42 U.S.C. 1396a(a)(10)) is amended--
       (i) in subparagraph (A)(ii), as amended by section 
     101(d)(1)--

       (I) in subclause (XIX), by striking ``or'' at the end;
       (II) in subclause (XX), by adding ``or'' at the end; and
       (III) by inserting after subclause (XX), the following new 
     subclause:
       ``(XXI) who are eligible for home and community-based 
     services under section 1915(k) and who will receive home and 
     community-based services pursuant to a State plan amendment 
     under such subsection;''; and

       (ii) in the matter following subparagraph (G)--

       (I) by striking ``and (XIV)'' and inserting ``(XIV)''; and
       (II) by inserting ``, and (XV) at the option of the State, 
     the medical assistance made available to an individual 
     described in section 1915 (k) who is eligible for medical 
     assistance only because of subparagraph (A)(ii)(XXI) may be 
     limited to medical assistance for home and community-based 
     services described in a State plan amendment submitted under 
     that section'' before the semicolon.

       (B) Conforming amendments.--
       (i) Section 1903(f)(4) of the Social Security Act (42 
     U.S.C. 1396b(f)(4)), as amended by section 101(d)(2)(A), is 
     amended in the matter preceding subparagraph (A), by 
     inserting ``1902(a)(10)(A)(ii)(XXI),'' after 
     ``1902(a)(10)(A)(ii)(XX),''.
       (ii) Section 1905(a) of the Social Security Act (42 U.S.C. 
     1396d(a)), as amended by section 101(d)(2)(B), is amended in 
     the matter preceding paragraph (1)--

       (I) in clause (xiii), by striking ``or'' at the end;
       (II) in clause (xiv), by adding ``or'' at the end; and

       (iii) by inserting after clause (xiv) the following new 
     clause:
       ``(xv) who are eligible for home and community-based 
     services under section 1915(k) and who will receive home and 
     community-based services pursuant to a State plan amendment 
     under such subsection,''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the first day of the first fiscal year quarter 
     that begins after the date of enactment of this Act.

     SEC. 103. IMPLEMENTATION ASSISTANCE GRANTS FOR STATES 
                   ELECTING TO PROVIDE HOME AND COMMUNITY-BASED 
                   SERVICES UNDER MEDICAID THROUGH THE STATE PLAN 
                   AMENDMENT OPTION.

       (a) Authority to Award Grants.--The Secretary of Health and 
     Human Services (in this section referred to as the 
     ``Secretary'') shall award grants to eligible States to 
     provide incentives to States for the implementation of State 
     plan amendments that meet the requirements of section 1915(i) 
     of the Social Security Act (42 U.S.C. 1396n(i)).
       (b) Eligible State.--For purposes of this section, an 
     eligible State is a State that--
       (1) has an approved State plan amendment described in 
     subsection (a); and
       (2) submits an application to the Secretary, in such form 
     and manner as the Secretary shall require, specifying the 
     costs the State will incur in implementing such amendment and 
     such additional information as the Secretary may require.
       (c) Amount and Duration of Grants.--
       (1) Amount.--The Secretary shall determine the amount to be 
     awarded all eligible States under this section for a fiscal 
     year based on the applications submitted by such States and 
     the amount available for such fiscal year under subsection 
     (d).
       (2) Limitation on duration of award.--A State may receive a 
     grant under this section for not more than 3 consecutive 
     fiscal years.
       (d) Appropriations.--There are appropriated, from any funds 
     in the Treasury not otherwise appropriated, $40,000,000 for 
     each of fiscal years 2009 through 2013 for making grants to 
     States under this section. Funds appropriated under this 
     subsection for a fiscal year shall remain available for 
     expenditure through September 30, 2013.

TITLE II--STATE GRANTS TO FACILITATE HOME AND COMMUNITY-BASED SERVICES 
                           AND PROMOTE HEALTH

     SEC. 201. REAUTHORIZATION OF MEDICAID TRANSFORMATION GRANTS 
                   AND EXPANSION OF PERMISSIBLE USES IN ORDER TO 
                   FACILITATE THE PROVISION OF HOME AND COMMUNITY-
                   BASED AND OTHER LONG-TERM CARE SERVICES.

       (a) 2-Year Reauthorization; Increased Funding.--Section 
     1903(z)(4)(A) of the Social Security Act (42 U.S.C. 
     1396b(z)(4)(A)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after clause (ii), the following new 
     clauses:
       ``(iii) $150,000,000 for fiscal year 2009; and
       ``(iv) $150,000,000 for fiscal year 2010.''.
       (b) Expansion of Permissible Uses.--Section 1903(z)(2) of 
     the Social Security Act (42 U.S.C. 1396b(z)(2)) is amended by 
     adding at the end the following new subparagraphs:
       ``(G)(i) Methods for ensuring the availability and 
     accessibility of home and community-based services in the 
     State, recognizing multiple delivery options that take into 
     account differing needs of individuals, through the creation 
     or designation (in consultation with organizations 
     representing elderly individuals and individuals of all ages 
     with physical, mental, cognitive, or intellectual 
     impairments, and organizations representing the long-term 
     care workforce, including organized labor, and health care 
     and direct service providers) of one or more statewide or 
     regional public entities or non-profit organizations (such as 
     fiscal intermediaries, agencies with choice, home care 
     commissions, public authorities, worker associations, 
     consumer-owned and controlled organizations (including 
     representatives of individuals with severe intellectual or 
     cognitive impairment), area agencies on aging, independent 
     living centers, aging and disability resource centers, or 
     other disability organizations) which may --
       ``(I) develop programs where qualified individuals provide 
     home- and community-based services while solely or jointly 
     employed by recipients of such services;
       ``(II) facilitate the training and recruitment of qualified 
     health and direct service professionals and consumers who use 
     services;
       ``(III) recommend or develop a system to set wages and 
     benefits, and recommend commensurate reimbursement rates;
       ``(IV) with meaningful ongoing involvement from consumers 
     and workers (or their respective representatives), develop 
     procedures for the appropriate screening of workers, create a 
     registry or registries of available workers, including 
     policies and procedures to ensure no interruption of care for 
     eligible individuals;
       ``(V) assist consumers in identifying workers;
       ``(VI) act as a fiscal intermediary;
       ``(VII) assist workers in finding employment, including 
     consumer-directed employment;
       ``(VIII) provide funding for disability organizations, 
     aging organizations, or other organizations, to assume roles 
     that promote consumers' ability to acquire the necessary 
     skills for directing their own services and financial 
     resources; or
       ``(IX) create workforce development plans on a regional or 
     statewide basis (or both), to ensure a sufficient supply of 
     qualified home and community-based services workers, 
     including reviews and analyses of actual and potential worker 
     shortages, training and retention programs for home and 
     community-based services workers (which may include, as 
     determined appropriate by the State, allowing participation 
     in such training to count as an allowable work activity under 
     the State temporary assistance for needy families program 
     funded under part A of title IV), and plans to assist 
     consumers with finding and retaining qualified workers.
       ``(ii) Nothing in clause (i) shall be construed as 
     prohibiting the use of funds made available to carry out this 
     subparagraph for start-up costs associated with any of the 
     activities described in subclauses (I) through (IX), as 
     requiring any consumer to hire workers who are listed in a 
     worker registry developed with such funds, or to limit the 
     ability of consumers to hire or fire their own workers.
       ``(H) Methods for providing an integrated and efficient 
     system of long-term care through a review of the Federal, 
     State, local, and private long-term care resources, services, 
     and supports available to elderly individuals and individuals 
     of all ages with physical, mental, cognitive, or intellectual 
     impairments and the development and implementation of a plan 
     to fully integrate such resources, services, and supports by 
     aggregating such resources, services, and supports to create 
     a consumer-centered and cost-effective resource and delivery 
     system and expanding the availability of home and community-
     based services, and that is designed to result in 
     administrative savings, consolidation of common activities, 
     and the elimination of redundant processes.''.
       (c) Allocation of Funds.--
       (1) Elimination of current law requirements for allocation 
     of funds.--Section 1903(z)(4)(B) of the Social Security Act 
     (42 U.S.C. 1396b(z)(4)(B)) is amended by striking the second 
     and third sentences.
       (2) Assurance of funds to facilitate the provision of home 
     and community-based services and integrated systems of long-

[[Page S7295]]

     term care.--Section 1903(z)(4)(B) of the Social Security Act 
     (42 U.S.C. 1396b(z)(4)(B)), as amended by paragraph (1), is 
     amended by inserting after the first sentence the following 
     new sentence: ``Such method shall provide that 50 percent of 
     such funds shall be allocated among States that design 
     programs to adopt the innovative methods described in 
     subparagraph (G) or (H) (or both) of paragraph (2).''.
       (d) Effective Date.--The amendments made by this section 
     take effect on October 1, 2008.

     SEC. 202. HEALTH PROMOTION GRANTS.

       (a) Definitions.--In this section:
       (1) Eligible medicaid beneficiary.--The term ``eligible 
     Medicaid beneficiary'' means an individual who is enrolled in 
     the State Medicaid plan under title XIX of the Social 
     Security Act and--
       (A) has attained the age of 60 and is not a resident of a 
     nursing facility; or
       (B) is an adult with a physical, mental, cognitive, or 
     intellectual impairment.
       (2) Eligible state.--The term ``eligible State'' means a 
     State that submits an application to the Secretary for a 
     grant under this section, in such form and manner as the 
     Secretary shall require.
       (3) Evidence- and community-based health promotion 
     program.--The term ``evidence- and community-based health 
     promotion program'' means a community-based program (such as 
     a program for chronic disease self-management, physical or 
     mental activity, falls prevention, smoking cessation, or 
     dietary modification) that has been objectively evaluated and 
     found to improve health outcomes or meet health promotion 
     goals by preventing, delaying, or decreasing the severity of 
     physical, mental, cognitive, or intellectual impairment and 
     that meets generally accepted standards for best professional 
     practice.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (b) Authority to Conduct Demonstration Project.--The 
     Secretary shall award grants on a competitive basis to 
     eligible States to conduct in accordance with this section an 
     evidence- and community-based health promotion program that 
     is designed to achieve the following objectives with respect 
     to eligible Medicaid beneficiaries:
       (1) Lifestyle changes.--To empower eligible Medicaid 
     beneficiaries to take more control over their own health 
     through lifestyle changes that have proven effective in 
     reducing the effects of chronic disease and slowing the 
     progression of disability.
       (2) Diffusion.--To mobilize the Medicaid, aging, 
     disability, public health, and nonprofit networks at the 
     State and local levels to accelerate the translation of 
     credible research into practice through the deployment of 
     low-cost evidence-based health promotion and disability 
     prevention programs at the community level.
       (c) Selection and Amount of Grant Awards.--In awarding 
     grants to eligible States under this section and determining 
     the amount of the awards, the Secretary shall--
       (1) take into consideration the manner and extent to which 
     the eligible State proposes to achieve the objectives 
     specified in subsection (b); and
       (2) give preference to eligible States proposing--
       (A) programs through public service provider organizations 
     or other organizations with expertise in serving eligible 
     Medicaid beneficiaries;
       (B) strong State-level collaboration across, Medicaid 
     agencies, State units on aging, State independent living 
     councils, State associations of Area Agencies on Aging, and 
     State agencies responsible for public health; or
       (C) interventions that have already demonstrated 
     effectiveness and replicability in a community-based, non-
     medical setting.
       (d) Use of Funds.--An eligible State awarded a grant under 
     this section shall use the funds awarded to develop, 
     implement, and sustain high quality evidence- and community-
     based health promotion programs. As a condition of being 
     awarded such a grant, an eligible State shall agree to--
       (1) implement such programs in at least 3 geographic areas 
     of the State; and
       (2) develop the infrastructure and partnerships that will 
     be necessary over the long-term to effectively embed 
     evidence-and community-based health promotion programs for 
     eligible Medicaid beneficiaries within the statewide health, 
     aging, disability, and long-term care systems.
       (e) Technical Assistance.--The Secretary shall provide 
     assistance to eligible States awarded grants under this 
     section, sub-grantees and their partners, program organizers, 
     and others in developing evidence- and community-based health 
     promotion programs.
       (f) Payments to Eligible States; Carryover of Unused Grant 
     Amounts.--
       (1) Payments.--For each calendar quarter of a fiscal year 
     that begins during the period for which an eligible State is 
     awarded a grant under this section, the Secretary shall pay 
     to the State from its grant award for such fiscal year an 
     amount equal to the lesser of--
       (A) the amount of qualified expenditures made by the State 
     for such quarter; or
       (B) the total amount remaining in such grant award for such 
     fiscal year (taking into account the application of paragraph 
     (2)).
       (2) Carryover of unused amounts.--Any portion of a State 
     grant award for a fiscal year under this section remaining 
     available at the end of such fiscal year shall remain 
     available for making payments to the State for the next 4 
     fiscal years, subject to paragraph (3).
       (3) Reawarding of certain unused amounts.--In the case of a 
     State that the Secretary determines has failed to meet the 
     conditions for continuation of a demonstration project under 
     this section in a succeeding year, the Secretary shall 
     rescind the grant award for each succeeding year, together 
     with any unspent portion of an award for prior years, and 
     shall add such amounts to the appropriation for the 
     immediately succeeding fiscal year for grants under this 
     section.
       (4) Preventing duplication of payment.--The payment under a 
     demonstration project with respect to qualified expenditures 
     shall be in lieu of any payment with respect to such 
     expenditures that would otherwise be paid to the State under 
     section 1903(a) of the Social Security Act (42 U.S.C. 
     1396a(a)). Nothing in the previous sentence shall be 
     construed as preventing a State from being paid under such 
     section for expenditures in a grant year for which payment is 
     available under such section 1903(a) after amounts available 
     to pay for such expenditures under the grant awarded to the 
     State under this section for the fiscal year have been 
     exhausted.
       (g) Evaluation.--Not later than 3 years after the date on 
     which the first grant is awarded to an eligible State under 
     this section, the Secretary shall, by grant, contract, or 
     interagency agreement, conduct an evaluation of the 
     demonstration projects carried out under this section that 
     measures the health-related, quality of life, and cost 
     outcomes for eligible Medicaid beneficiaries and includes 
     information relating to the quality, infrastructure, 
     sustainability, and effectiveness of such projects.
       (h) Appropriations.--There are appropriated, from any funds 
     in the Treasury not otherwise appropriated, the following 
     amounts to carry out this section:
       (1) Grants to states.--For grants to States, to remain 
     available until expended--
       (A) $4,000,000 for fiscal year 2009;
       (B) $6,000,000 for fiscal year 2010;
       (C) $8,000,000 for fiscal year 2011;
       (D) $10,000,000 for fiscal year 2012; and
       (E) $12,000,000 for fiscal year 2013.
       (2) Technical assistance.--For the provision of technical 
     assistance through such center in accordance with subsection 
     (e)--
       (A) $800,000 for fiscal year 2009;
       (B) $1,200,000 for fiscal year 2010;
       (C) $1,600,000 for fiscal year 2011;
       (D) $2,000,000 for fiscal year 2012; and
       (E) $2,400,000 for fiscal year 2013.
       (3) Evaluation.--For conducting the evaluation required 
     under subsection (g), $4,000,000 for fiscal year 2011.

                  TITLE III--LONG TERM CARE INSURANCE

     SEC. 301. TREATMENT OF PREMIUMS ON QUALIFIED LONG-TERM CARE 
                   INSURANCE CONTRACTS.

       (a) In General.--Part VII of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to additional 
     itemized deductions) is amended by redesignating section 224 
     as section 225 and by inserting after section 223 the 
     following new section:

     ``SEC. 224. PREMIUMS ON QUALIFIED LONG-TERM CARE INSURANCE 
                   CONTRACTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a deduction an amount equal to the 
     applicable percentage of the amount of eligible long-term 
     care premiums (as defined in section 213(d)(10)) paid during 
     the taxable year for coverage for the taxpayer and the 
     taxpayer's spouse and dependents under a qualified long-term 
     care insurance contract (as defined in section 7702B(b)).
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years beginning in calendar year--                The ap-
                                                               plicable
                                                               percent-
                                                               age is--
  2010 or 2011......................................................25 
  2012..............................................................35 
  2013..............................................................65 
  2014 or thereafter...............................................100.

       ``(c) Coordination With Other Deductions.--Any amount paid 
     by a taxpayer for any qualified long-term care insurance 
     contract to which subsection (a) applies shall not be taken 
     into account in computing the amount allowable to the 
     taxpayer as a deduction under section 162(l) or 213(a).''.
       (b) Conforming Amendments.--
       (1) Section 62(a) of the Internal Revenue Code of 1986 is 
     amended by inserting before the last sentence at the end the 
     following new paragraph:
       ``(22) Premiums on qualified long-term care insurance 
     contracts.--The deduction allowed by section 224.''.
       (2) The table of sections for part VII of subchapter B of 
     chapter 1 of such Code is amended by striking the last item 
     and inserting the following new items:

``Sec. 224. Premiums on qualified long-term care insurance contracts.
``Sec. 225. Cross reference.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 302. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal

[[Page S7296]]

     Revenue Code of 1986 (relating to nonrefundable personal 
     credits) is amended by inserting after section 25D the 
     following new section:

     ``SEC. 25E. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE NEEDS.

       ``(a) Allowance of Credit.--
       ``(1) In general.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to the applicable credit amount multiplied by 
     the number of applicable individuals with respect to whom the 
     taxpayer is an eligible caregiver for the taxable year.
       ``(2) Applicable credit amount.--For purposes of paragraph 
     (1), the applicable credit amount shall be determined in 
     accordance with the following table:

``For taxable years beginning in calendar year--                The ap-
                                                               plicable
                                                                 credit
                                                                 amount
                                                                   is--
  2010..........................................................$1,000 
  2011...........................................................1,500 
  2012...........................................................2,000 
  2013...........................................................2,500 
  2014 or thereafter.............................................3,000.

       ``(b) Limitation Based on Adjusted Gross Income.--
       ``(1) In general.--The amount of the credit allowable under 
     subsection (a) shall be reduced (but not below zero) by $100 
     for each $1,000 (or fraction thereof) by which the taxpayer's 
     modified adjusted gross income exceeds the threshold amount. 
     For purposes of the preceding sentence, the term `modified 
     adjusted gross income' means adjusted gross income increased 
     by any amount excluded from gross income under section 911, 
     931, or 933.
       ``(2) Threshold amount.--For purposes of paragraph (1), the 
     term `threshold amount' means--
       ``(A) $150,000 in the case of a joint return, and
       ``(B) $75,000 in any other case.
       ``(3) Indexing.--In the case of any taxable year beginning 
     in a calendar year after 2010, each dollar amount contained 
     in paragraph (2) shall be increased by an amount equal to the 
     product of--
       ``(A) such dollar amount, and
       ``(B) the medical care cost adjustment determined under 
     section 213(d)(10)(B)(ii) for the calendar year in which the 
     taxable year begins, determined by substituting `August 2009' 
     for `August 1996' in subclause (II) thereof.
     If any increase determined under the preceding sentence is 
     not a multiple of $50, such increase shall be rounded to the 
     next lowest multiple of $50.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Applicable individual.--
       ``(A) In general.--The term `applicable individual' means, 
     with respect to any taxable year, any individual who has been 
     certified, before the due date for filing the return of tax 
     for the taxable year (without extensions), by a physician (as 
     defined in section 1861(r)(1) of the Social Security Act) as 
     being an individual with long-term care needs described in 
     subparagraph (B) for a period--
       ``(i) which is at least 180 consecutive days, and
       ``(ii) a portion of which occurs within the taxable year.
     Notwithstanding the preceding sentence, a certification shall 
     not be treated as valid unless it is made within the 39\1/2\ 
     month period ending on such due date (or such other period as 
     the Secretary prescribes).
       ``(B) Individuals with long-term care needs.--An individual 
     is described in this subparagraph if the individual meets any 
     of the following requirements:
       ``(i) The individual is at least 6 years of age and--

       ``(I) is unable to perform (without substantial assistance 
     from another individual) at least 3 activities of daily 
     living (as defined in section 7702B(c)(2)(B)) due to a loss 
     of functional capacity, or
       ``(II) requires substantial supervision to protect such 
     individual from threats to health and safety due to severe 
     cognitive impairment and is unable to perform, without 
     reminding or cuing assistance, at least 1 activity of daily 
     living (as so defined) or to the extent provided in 
     regulations prescribed by the Secretary (in consultation with 
     the Secretary of Health and Human Services), is unable to 
     engage in age appropriate activities.

       ``(ii) The individual is at least 2 but not 6 years of age 
     and is unable due to a loss of functional capacity to perform 
     (without substantial assistance from another individual) at 
     least 2 of the following activities: eating, transferring, or 
     mobility.
       ``(iii) The individual is under 2 years of age and requires 
     specific durable medical equipment by reason of a severe 
     health condition or requires a skilled practitioner trained 
     to address the individual's condition to be available if the 
     individual's parents or guardians are absent.
       ``(2) Eligible caregiver.--
       ``(A) In general.--A taxpayer shall be treated as an 
     eligible caregiver for any taxable year with respect to the 
     following individuals:
       ``(i) The taxpayer.
       ``(ii) The taxpayer's spouse.
       ``(iii) An individual with respect to whom the taxpayer is 
     allowed a deduction under section 151(c) for the taxable 
     year.
       ``(iv) An individual who would be described in clause (iii) 
     for the taxable year if section 151(c) were applied by 
     substituting for the exemption amount an amount equal to the 
     sum of the exemption amount, the standard deduction under 
     section 63(c)(2)(C), and any additional standard deduction 
     under section 63(c)(3) which would be applicable to the 
     individual if clause (iii) applied.
       ``(v) An individual who would be described in clause (iii) 
     for the taxable year if--

       ``(I) the requirements of clause (iv) are met with respect 
     to the individual, and
       ``(II) the requirements of subparagraph (B) are met with 
     respect to the individual in lieu of the support test under 
     subsection (c)(1)(D) or (d)(1)(C) of section 152.

       ``(B) Residency test.--The requirements of this 
     subparagraph are met if an individual has as his principal 
     place of abode the home of the taxpayer and--
       ``(i) in the case of an individual who is an ancestor or 
     descendant of the taxpayer or the taxpayer's spouse, is a 
     member of the taxpayer's household for over half the taxable 
     year, or
       ``(ii) in the case of any other individual, is a member of 
     the taxpayer's household for the entire taxable year.
       ``(C) Special rules where more than 1 eligible caregiver.--
       ``(i) In general.--If more than 1 individual is an eligible 
     caregiver with respect to the same applicable individual for 
     taxable years ending with or within the same calendar year, a 
     taxpayer shall be treated as the eligible caregiver if each 
     such individual (other than the taxpayer) files a written 
     declaration (in such form and manner as the Secretary may 
     prescribe) that such individual will not claim such 
     applicable individual for the credit under this section.
       ``(ii) No agreement.--If each individual required under 
     clause (i) to file a written declaration under clause (i) 
     does not do so, the individual with the highest adjusted 
     gross income shall be treated as the eligible caregiver.
       ``(iii) Married individuals filing separately.--In the case 
     of married individuals filing separately, the determination 
     under this subparagraph as to whether the husband or wife is 
     the eligible caregiver shall be made under the rules of 
     clause (ii) (whether or not one of them has filed a written 
     declaration under clause (i)).
       ``(d) Identification Requirement.--No credit shall be 
     allowed under this section to a taxpayer with respect to any 
     applicable individual unless the taxpayer includes the name 
     and taxpayer identification number of such individual, and 
     the identification number of the physician certifying such 
     individual, on the return of tax for the taxable year.
       ``(e) Taxable Year Must Be Full Taxable Year.--Except in 
     the case of a taxable year closed by reason of the death of 
     the taxpayer, no credit shall be allowable under this section 
     in the case of a taxable year covering a period of less than 
     12 months.''.
       (b) Conforming Amendments.--
       (1) Section 6213(g)(2) of the Internal Revenue Code of 1986 
     is amended by striking ``and'' at the end of subparagraph 
     (L), by striking the period at the end of subparagraph (M) 
     and inserting ``, and'', and by inserting after subparagraph 
     (M) the following new subparagraph:
       ``(N) an omission of a correct TIN or physician 
     identification required under section 25E(d) (relating to 
     credit for taxpayers with long-term care needs) to be 
     included on a return.''.
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 25D the 
     following new item:

``Sec. 25E. Credit for taxpayers with long-term care needs.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 303. TREATMENT OF PREMIUMS ON QUALIFIED LONG-TERM CARE 
                   INSURANCE CONTRACTS.

       (a) In General.--
       (1) Cafeteria plans.--The last sentence of section 125(f) 
     of the Internal Revenue Code of 1986 (defining qualified 
     benefits) is amended by inserting before the period at the 
     end ``; except that such term shall include the payment of 
     premiums for any qualified long-term care insurance contract 
     (as defined in section 7702B) to the extent the amount of 
     such payment does not exceed the eligible long-term care 
     premiums (as defined in section 213(d)(10)) for such 
     contract''.
       (2) Flexible spending arrangements.--Section 106 of such 
     Code (relating to contributions by an employer to accident 
     and health plans) is amended by striking subsection (c) and 
     redesignating subsection (d) as subsection (c).
       (b) Conforming Amendments.--
       (1) Section 6041 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new subsection:
       ``(h) Flexible Spending Arrangement Defined.--For purposes 
     of this section, a flexible spending arrangement is a benefit 
     program which provides employees with coverage under which--
       ``(1) specified incurred expenses may be reimbursed 
     (subject to reimbursement maximums and other reasonable 
     conditions), and
       ``(2) the maximum amount of reimbursement which is 
     reasonably available to a participant for such coverage is 
     less than 500 percent of the value of such coverage.
     In the case of an insured plan, the maximum amount reasonably 
     available shall be determined on the basis of the underlying 
     coverage.''.

[[Page S7297]]

       (2) The following sections of such Code are each amended by 
     striking ``section 106(d)'' and inserting ``section 106(c)'': 
     sections 223(b)(4)(B), 223(d)(4)(C), 223(f)(3)(B), 
     3231(e)(11), 3306(b)(18), 3401(a)(22), 4973(g)(1), and 
     4973(g)(2)(B)(i).
       (3) Section 6041(f)(1) of such Code is amended by striking 
     ``(as defined in section 106(c)(2))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 304. ADDITIONAL CONSUMER PROTECTIONS FOR LONG-TERM CARE 
                   INSURANCE.

       (a) Additional Protections Applicable to Long-Term Care 
     Insurance.--Subparagraphs (A) and (B) of section 7702B(g)(2) 
     of the Internal Revenue Code of 1986 (relating to 
     requirements of model regulation and Act) are amended to read 
     as follows:
       ``(A) In general.--The requirements of this paragraph are 
     met with respect to any contract if such contract meets--
       ``(i) Model regulation.--The following requirements of the 
     model regulation:

       ``(I) Section 6A (relating to guaranteed renewal or 
     noncancellability), other than paragraph (5) thereof, and the 
     requirements of section 6B of the model Act relating to such 
     section 6A.
       ``(II) Section 6B (relating to prohibitions on limitations 
     and exclusions) other than paragraph (7) thereof.
       ``(III) Section 6C (relating to extension of benefits).
       ``(IV) Section 6D (relating to continuation or conversion 
     of coverage).
       ``(V) Section 6E (relating to discontinuance and 
     replacement of policies).
       ``(VI) Section 7 (relating to unintentional lapse).
       ``(VII) Section 8 (relating to disclosure), other than 
     sections 8F, 8G, 8H, and 8I thereof.
       ``(VIII) Section 11 (relating to prohibitions against post-
     claims underwriting).
       ``(IX) Section 12 (relating to minimum standards).
       ``(X) Section 13 (relating to requirement to offer 
     inflation protection).
       ``(XI) Section 25 (relating to prohibition against 
     preexisting conditions and probationary periods in 
     replacement policies or certificates).
       ``(XII) The provisions of section 28 relating to contingent 
     nonforfeiture benefits, if the policyholder declines the 
     offer of a nonforfeiture provision described in paragraph (4) 
     of this subsection.

       ``(ii) Model act.--The following requirements of the model 
     Act:

       ``(I) Section 6C (relating to preexisting conditions).
       ``(II) Section 6D (relating to prior hospitalization).
       ``(III) The provisions of section 8 relating to contingent 
     nonforfeiture benefits, if the policyholder declines the 
     offer of a nonforfeiture provision described in paragraph (4) 
     of this subsection.

       ``(B) Definitions.--For purposes of this paragraph--
       ``(i) Model regulation.--The term `model regulation' means 
     the long-term care insurance model regulation promulgated by 
     the National Association of Insurance Commissioners (as 
     adopted as of December 2006).
       ``(ii) Model act.--The term `model Act' means the long-term 
     care insurance model Act promulgated by the National 
     Association of Insurance Commissioners (as adopted as of 
     December 2006).
       ``(iii) Coordination.--Any provision of the model 
     regulation or model Act listed under clause (i) or (ii) of 
     subparagraph (A) shall be treated as including any other 
     provision of such regulation or Act necessary to implement 
     the provision.
       ``(iv) Determination.--For purposes of this section and 
     section 4980C, the determination of whether any requirement 
     of a model regulation or the model Act has been met shall be 
     made by the Secretary.''.
       (b) Excise Tax.--Paragraph (1) of section 4980C(c) of the 
     Internal Revenue Code of 1986 (relating to requirements of 
     model provisions) is amended to read as follows:
       ``(1) Requirements of model provisions.--
       ``(A) Model regulation.--The following requirements of the 
     model regulation must be met:
       ``(i) Section 9 (relating to required disclosure of rating 
     practices to consumer).
       ``(ii) Section 14 (relating to application forms and 
     replacement coverage).
       ``(iii) Section 15 (relating to reporting requirements).
       ``(iv) Section 22 (relating to filing requirements for 
     marketing).
       ``(v) Section 23 (relating to standards for marketing), 
     including inaccurate completion of medical histories, other 
     than paragraphs (1), (6), and (9) of section 23C.
       ``(vi) Section 24 (relating to suitability).
       ``(vii) Section 26 (relating to policyholder 
     notifications).
       ``(viii) Section 27 (relating to the right to reduce 
     coverage and lower premiums).
       ``(ix) Section 31 (relating to standard format outline of 
     coverage).
       ``(x) Section 32 (relating to requirement to deliver 
     shopper's guide).
       ``(B) Model act.--The following requirements of the model 
     Act must be met:
       ``(i) Section 6F (relating to right to return).
       ``(ii) Section 6G (relating to outline of coverage).
       ``(iii) Section 6H (relating to requirements for 
     certificates under group plans).
       ``(iv) Section 6J (relating to policy summary).
       ``(v) Section 6K (relating to monthly reports on 
     accelerated death benefits).
       ``(vi) Section 7 (relating to incontestability period).
       ``(vii) Section 9 (relating to producer training 
     requirements).
       ``(C) Definitions.--For purposes of this paragraph, the 
     terms `model regulation' and `model Act' have the meanings 
     given such terms by section 7702B(g)(2)(B).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to policies issued more than 1 year after the 
     date of the enactment of this Act.

          TITLE IV--PROMOTING AND PROTECTING COMMUNITY LIVING

     SEC. 401. MANDATORY APPLICATION OF SPOUSAL IMPOVERISHMENT 
                   PROTECTIONS TO RECIPIENTS OF HOME AND 
                   COMMUNITY-BASED SERVICES.

       (a) In General.--Section 1924(h)(1)(A) of the Social 
     Security Act (42 U.S.C. 1396r-5(h)(1)(A)) is amended by 
     striking ``(at the option of the State)is described in 
     section 1902(a)(10)(A)(ii)(VI)'' and inserting ``is eligible 
     for medical assistance for home and community-based services 
     under subsection (c), (d), (e), (i), or (k) of section 
     1915''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on October 1, 2008.

     SEC. 402. STATE AUTHORITY TO ELECT TO EXCLUDE UP TO 6 MONTHS 
                   OF AVERAGE COST OF NURSING FACILITY SERVICES 
                   FROM ASSETS OR RESOURCES FOR PURPOSES OF 
                   ELIGIBILITY FOR HOME AND COMMUNITY-BASED 
                   SERVICES.

       (a) In General.--Section 1917 of the Social Security Act 
     (42 U.S.C. 1396p) is amended by adding at the end the 
     following new subsection:
       ``(i) State Authority To Exclude Up to 6 Months of Average 
     Cost of Nursing Facility Services From Home and Community-
     Based Services Eligibility Determinations.--Nothing in this 
     section or any other provision of this title, shall be 
     construed as prohibiting a State from excluding from any 
     determination of an individual's assets or resources for 
     purposes of determining the eligibility of the individual for 
     medical assistance for home and community-based services 
     under subsection (c), (d), (e), (i), or (k) of section 1915 
     (if a State imposes an limitation on assets or resources for 
     purposes of eligibility for such services), an amount equal 
     to the product of the amount applicable under subsection 
     (c)(1)(E)(ii)(II) (at the time such determination is made) 
     and such number, not to exceed 6, as the State may elect.''.
       (b) Rule of Construction.--Nothing in the amendment made by 
     subsection (a) shall be construed as affecting a State's 
     option to apply less restrictive methodologies under section 
     1902(r)(2) for purposes of determining income and resource 
     eligibility for individuals specified in that section.
       (c) Effective Date.--The amendment made by subsection (a) 
     takes effect on October 1, 2008.

                         TITLE V--MISCELLANEOUS

     SEC. 501. IMPROVED DATA COLLECTION.

       (a) Secretarial Requirement To Revise Data Reporting Forms 
     and Systems To Ensure Uniform and Consistent Reporting by 
     States.--Not later than 6 months after the date of enactment 
     of this Act, the Secretary of Health and Human Services, 
     acting through the Administrator of the Centers for Medicare 
     & Medicaid Services, shall revise CMS Form 372, CMS Form 64, 
     and CMS Form 64.9 (or any successor forms) and the Medicaid 
     Statistical Information Statistics (MSIS) claims processing 
     system to ensure that, with respect to any State that 
     provides medical assistance to individuals under a waiver or 
     State plan amendment approved under subsection (c), (d), (e), 
     (i), (j), or (k) of section 1915 of the Social Security Act 
     (42 U.S.C. 1396n), the State reports to the Secretary, not 
     less than annually and in a manner that is consistent and 
     uniform for all States (and, in the case of medical 
     assistance provided under a waiver or State plan amendment 
     under any such subsection for home and community-based 
     services, in a manner that is consistent and uniform with the 
     data required to be reported for purposes of monitoring or 
     evaluating the provision of such services under the State 
     plan or under a waiver approved under section 1115 of the 
     Social Security Act (42 U.S.C. 1315) to provide such 
     services) the following data:
       (1) The total number of individuals provided medical 
     assistance for such services under each waiver to provide 
     such services conducted by the State and each State plan 
     amendment option to provide such services elected by the 
     State.
       (2) The total amount of expenditures incurred for such 
     services under each such waiver and State plan amendment 
     option, disaggregated by expenditures for medical assistance 
     and administrative or other expenditures.
       (3) The types of such services provided by the State under 
     each such waiver and State plan amendment option.
       (4) The number of individuals on a waiting list (if any) to 
     be enrolled under each such waiver and State plan amendment 
     option or to receive services under each such waiver and 
     State plan amendment option.
       (5) With respect to home health services, private duty 
     nursing services, case management services, and 
     rehabilitative services provided under each such waiver and 
     State plan amendment option, the total number of individuals 
     provided each type of such services, the total amount of 
     expenditures incurred for each type of services, and whether

[[Page S7298]]

     each such service was provided for long-term care or acute 
     care purposes.
       (b) Public Availability.--Not later than 6 months after the 
     date of enactment of this Act, the Secretary of Health and 
     Human Services, acting through the Administrator of the 
     Centers for Medicare & Medicaid Services, shall make publicly 
     available, in a State identifiable manner, the data described 
     in subsection (a) through an Internet website and otherwise 
     as the Secretary determines appropriate.

     SEC. 502. GAO REPORT ON MEDICAID HOME HEALTH SERVICES AND THE 
                   EXTENT OF CONSUMER SELF-DIRECTION OF SUCH 
                   SERVICES.

       (a) Study.--The Comptroller General of the United States 
     shall study the provision of home health services under State 
     Medicaid plans under title XIX of the Social Security Act. 
     Such study shall include an examination of the extent to 
     which there are variations among the States with respect to 
     the provision of home health services in general under State 
     Medicaid plans, including the extent to which such plans 
     impose limits on the types of services that a home health 
     aide may provide a Medicaid beneficiary and the extent to 
     which States offer consumer self-direction of such services 
     or allow for other consumer-oriented policies with respect to 
     such services.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit a 
     report to Congress on the results of the study conducted 
     under subsection (a), together with such recommendations for 
     legislative or administrative changes as the Comptroller 
     General determines appropriate in order to provide home 
     health services under State Medicaid plans in accordance with 
     identified best practices for the provision of such services.

  Mr. GRASSLEY. Mr. President, I am pleased to join my colleague 
Senator Kerry today to introduce the Empowered at Home Act. This bill 
is a continuation of efforts that I undertook in 2005 to improve access 
to home and community based services for those needing long-term care. 
This is an important piece of legislation that continues our efforts to 
make cost-effective home and community based care options more 
available to those who need it.
  In 2005, I introduced the Improving Long-term Care Choices Act with 
Senator Bayh. That legislation set forth a series of proposals aimed at 
improving the accessibility of long-term care insurance and promoting 
awareness about the protection that long-term care insurance can offer. 
It also sought to broaden the availability of the types of long-term 
care services such as home and community-based care, which many people 
prefer to institutional care.
  The year 2005 ended up being a very important year for health policy 
as it relates to Americans who need extensive care. In the Deficit 
Reduction Act of 2005, Congress passed into law the Family Opportunity 
Act, the Money Follows the Person initiative, and many critical pieces 
of the Improving Long-term Care Choices Act. With the bill I am 
introducing today with Senator Kerry, I hope to set us on the path to 
completing the work we started in 2005.
  Making our long-term care system more efficient is a critical goal as 
we consider the future of health care. There are more than 35 million 
Americans, roughly 12 percent of the U.S. population, over the age of 
65. This number is expected to increase dramatically over the next few 
decades as the baby boomers age and life expectancy increases. 
According to the U.S. Administration on Aging, by the year 2030, there 
will be more than 70 million elderly persons in the United States. As 
the U.S. population ages, more and more Americans will require long-
term care services.
  The need for long-term care will also be affected by the number of 
individuals under the age of 65 who may require a lifetime of care. 
Currently, almost half of all Americans who need long-term care 
services are individuals with disabilities under the age of 65. This 
number includes over 5 million working-age adults and approximately 
400,000 children.
  Long-term care for elderly and disabled individuals, including care 
at home and in nursing homes, represents almost 40 percent of Medicaid 
expenditures. Contrary to general assumptions, it is Medicaid, not 
Medicare, that pays for the largest portion of long-term care for the 
elderly. Over 65 percent of Medicaid long-term care expenditures 
support elderly and disabled individuals in nursing facilities and 
institutions. Although most people who need long-term care prefer to 
remain at home, Medicaid spending for long-term care remains heavily 
weighted toward institutional care.
  Section 6086 of the Deficit Reduction Act of 2005 (DRA, P.L. 109-171) 
was based on the Improving Long-term Care Choices Act. The DRA 
provision authorized a new optional benefit under Medicaid that allows 
States to extend home and community-based services to Medicaid 
beneficiaries under the section 1915(i) Home and Community-Based 
Services State Option. Under this authority, States can offer Medicaid-
covered home and community-based services under a State's Medicaid plan 
without obtaining a section 1915(c) home and community-based waiver. 
Eligibility for these section 1915(i) services may be extended only to 
Medicaid beneficiaries already enrolled in the program whose income 
does not exceed 150 percent of the Federal poverty level.
  To date, only one State, my own State of Iowa, has sought to take 
advantage of the provision authorized through the DRA. While we had 
hoped far more States would participate, we know that the relatively 
low income cap, 150 percent, in the DRA provision creates an 
administrative complexity that has not made the option appealing for 
States.
  In this bill we are introducing today, the income eligibility 
standard would be raised for access to covered services under section 
1915(i) to persons who qualify for Medicaid because their income does 
not exceed a specified level established by the State up to 300 percent 
of the maximum Supplemental Security Income, SSI, payment applicable to 
a person living at home. This will significantly increase the number of 
people eligible for these services. States will be able to align their 
institutional and home and community-based care income eligibility 
levels.
  The bill would also establish two new optional eligibility pathways 
into Medicaid. These groups would be eligible for section 1915(i) home 
and community-based services as well as services offered under a 
State's broader Medicaid program. Under this bill, States with an 
approved 1915(k) State plan amendment would have the option to extend 
Medicaid eligibility to individuals: (1) who are not otherwise eligible 
for medical assistance; (2) whose income does not exceed 300 percent of 
the supplemental security income benefit rate; and (3) who would 
satisfy State-established needs-based criteria based upon a State's 
determination that the provision of home and community-based services 
would reasonably be expected to prevent, delay, or decrease the need 
for institutionalized care. Under this new eligibility pathway, States 
could choose to either limit Medicaid benefits to those home and 
community-based services offered under section 1915(k) or allow 
eligibles to access services available under a State's broader Medicaid 
program in addition to the 1915(k) benefits. These changes will give 
the States the option of exploring the use of an interventional use of 
home and community-based services. If States have the flexibility to 
provide the benefit as contemplated in the bill, they can try to delay 
the need for institutional care and people in their homes longer.
  As the number of Americans reaching retirement age grows 
proportionally larger, ultimately the number of Americans needing more 
extensive care will grow. Many of those Americans will look to Medicaid 
for assistance. States need more tools to provide numerous options to 
people in need so that they can stay in their own homes as long as 
possible.
  The cost of providing long-term care in an institutional setting is 
far more expensive care than providing care in the home. States will 
benefit from having options before them that allow them to keep people 
appropriately in home settings longer. The more States learn how to use 
those tools, the more states and ultimately the Federal taxpayer will 
benefit from reduced costs for institutional care.
  I am also pleased that this bill will include key provisions from S. 
2337, the Long-Term Care Affordability and Security Act of 2007. The 
bill includes important tax provisions that I introduced in previous 
Congresses as well--most recently, the Improving Long-term Care Choices 
Act of 2005, introduced in the 109 Congress.
  Research shows that the elderly population will nearly double by 
2030. By 2050, the population of those aged 85

[[Page S7299]]

and older will have grown by more than 300 percent. Research also shows 
that the average age at which individuals need long-term care services, 
such as home health care or a private room at a nursing home, is 75. 
Currently, the average annual cost for a private room at a nursing home 
is more than $75,000. This cost is expected to be in excess of $140,000 
by 2030.
  Based on these facts, we can see that our Nation needs to prepare its 
citizens for the challenges they may face in old age. One way to 
prepare for these challenges is by encouraging more Americans to obtain 
long-term care insurance coverage. To date, only 10 percent of seniors 
have long-term care insurance policies, and only 7 percent of all 
private-sector employees are offered long-term care insurance as a 
voluntary benefit.
  Under current law, employees may pay for certain health-related 
benefits, which may include health insurance premiums, co-pays, and 
disability or life insurance, on a pre-tax basis under cafeteria plans 
and flexible spending arrangements, ``FSAs''. Essentially, an employee 
may elect to reduce his or her annual salary to pay for these benefits, 
and the employee doesn't pay taxes on the amounts used to pay these 
costs. Employees, however, are explicitly prohibited from paying for 
the cost of long-term care insurance coverage tax free.
  Our bill would allow employers, for the first time, to offer 
qualified long-term care insurance to employees under FSAs and 
cafeteria plans. This means employees would be permitted to pay for 
qualified long-term care insurance premiums on a tax-free basis. This 
would make it easier for employees to purchase long-term care 
insurance, which many find unaffordable. This should also encourage 
younger individuals to purchase long-term care insurance. The younger 
the person is at the time the long-care insurance contract is 
purchased, the lower the insurance premium.
  Our bill also allows an individual taxpayer to deduct the cost of 
their long-term care insurance policy. In other words, the individual 
can reduce their gross income by the premiums that they pay for a long-
term care policy, and therefore, pay less in taxes. This tax benefit 
for long-term care insurance should encourage more individuals to 
purchase these policies. It certainly makes a policy more affordable, 
especially for younger individuals. This would allow a middle-aged 
taxpayer to start planning for the future now.
  Finally, a provision that is included in our bill that I am really 
proud of is one that provides a tax credit to long-term caregivers. 
Long-term caregivers could include the taxpayer, him- or herself. 
Senator Kerry and I recognize that these taxpayers--who have long-term 
care needs, yet are taking care of themselves--should be provided extra 
assistance. Also, taxpayers taking care of a family member with long-
term care needs would also be eligible for the tax credit. These 
taxpayers should be given a helping hand. As our population continues 
to age, the least that we can do is provide a tax benefit for these 
struggling individuals.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mr. Smith):
  S. 3330. A bill to amend the Internal Revenue Code of 1986 to modify 
the deduction for domestic production activities for film and 
television productions, and for other purposes; to the Committee on 
Finance.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
to stimulate domestic film production and create jobs. I am pleased to 
be joined by my colleague from Oregon, Senator Gordon Smith.
  Our bill, the Domestic Film Production Equity Act of 2008, would 
expand a tax deduction, known as the section 199 domestic production 
incentive, for qualifying U.S. film producers.
  In 2008, this deduction will be worth 6 percent of a domestic 
manufacturer's qualifying production activities. It will increase to 
nine percent in 2010.
  Specifically, our bill would expand the production incentive to allow 
studios to include wages paid to full-time short-term employees, 
including U.S. actors, writers, directors, and production personnel in 
determining the limit on the deduction amount.
  The bill will treat films produced by partnerships between several 
studios as qualified property, each partner must have at least 20 
percent interest in a project to qualify.
  The bill will deduct income from the licensing of copyrights and 
trademarks relating to films; and lastly, the bill will deduct income 
from films and TV programs broadcast over the Internet.
  Most film production companies receive only a limited benefit from 
the production incentive because the industry relies heavily on short-
term contract work, and because many films are produced by multiple 
studios through partnerships.
  As a matter of fairness, these domestic production incentives should 
be extended to fully benefit an industry that employs over 1.3 million 
Americans.
  Filming a movie is different than traditional domestic manufacturing 
because short-term contract workers, including actors, writers, 
directors, and production personnel often work full-time on projects; 
multiple studios often produce one project; studios generate 
significant licensing fees associated with copyrights and trademarks 
related to films; and a number of media, including the Internet may be 
used to view each film or production.
  Our bill takes these circumstances into account to modernize this 
section of the tax code.
  The film industry is an important asset to the American economy.
  More than 1.3 million Americans work in motion picture and television 
production.
  In 2005, these jobs provided $30.24 billion in wages, with employees 
earning an average salary of $73,000.
  Of these employees, 231,000 were short-term contractors, often 
working multiple projects each year.
  California was the primary location for 365 film productions in 2005. 
This generated $42.2 billion in economic activity for my State.
  Our bill would help studios continue to provide opportunities to 
these talented actors, writers, directors, and production personnel in 
America.
  Expanding the Section 199 deduction to include these four categories 
is also a response to the competitive business of captivating an 
increasingly technology-adept viewing audience.
  The film industry, like the music industry, is increasingly seeing 
their sales move to digital formats via the internet. On iTunes--an 
online digital music store operated by Apple--around 50,000 movies are 
rented or sold each day.
  Moreover, by not allowing film studios to take advantage of domestic 
production tax incentives, we risk losing more operations abroad.
  For example, Canada currently provides domestic film producers with a 
tax credit worth 15 percent of qualifying production costs. Foreign 
studios with operations in Canada may also receive a tax credit worth 
up to 16 percent of wages paid to Canadian residents.
  The film industry plays a unique role in our society.
  The world recognizes Hollywood as the center of the entertainment 
industry. Millions of tourists annually travel from across the globe to 
visit the sites that embody the golden age of film.
  Hollywood film studios are American institutions that continue to 
produce some of the finest films in the world.
  Needless to say, it is critical that studios continue to film in my 
State and across the country. If not, the golden age of Hollywood and 
the economic activity it brings may be a part of the past.
  We are fortunate to have a vibrant domestic film industry.
  This legislation will help ensure that the U.S. entertainment 
industry continues to be the world leader.
  American workers and our economy stand to benefit.
  Efforts to expand the production incentive for domestic films have 
enjoyed broad bi-partisan support. Our bill is similar to a provision 
included in the tax extenders package which passed the House 
overwhelmingly by a vote of 263-160 in May.
  I am hopeful that the Senate will move quickly to enact this much-
needed modernization of the tax code.
  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:

[[Page S7300]]

                                S. 3330

       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 ``Domestic Film Production 
     Equity Act of 2008''.

     SEC. 2. PROVISIONS RELATED TO FILM AND TELEVISION 
                   PRODUCTIONS.

       (a) Modifications to Deduction for Domestic Activities.--
       (1) Determination of w-2 wages.--Paragraph (2) of section 
     199(b) of the Internal Revenue Code of 1986 (relating to W-2 
     wages) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Special rule for qualified film.--In the case of a 
     qualified film, such term shall include compensation for 
     services performed in the United States by actors, production 
     personnel, directors, and producers.''.
       (2) Definition of qualified film.--Paragraph (6) of section 
     199(c) of such Code (relating to qualified film) is amended 
     by adding at the end the following: ``A qualified film shall 
     include any copyrights, trademarks, or other intangibles with 
     respect to such film. The methods and means of distributing a 
     qualified film shall not affect the availability of the 
     deduction under this section.''.
       (3) Partnerships.--Subparagraph (A) of section 199(d)(1) of 
     such Code (relating to partnerships and S corporations) is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, and'', and by adding at the end the following new clause:
       ``(iv) in the case of each partner of a partnership, or 
     shareholder of an S corporation, who owns (directly or 
     indirectly) at least 20 percent of the capital interests in 
     such partnership or of the stock of such S corporation--

       ``(I) such partner or shareholder shall be treated as 
     having engaged directly in any film produced by such 
     partnership or S corporation, and
       ``(II) such partnership or S corporation shall be treated 
     as having engaged directly in any film produced by such 
     partner or shareholder.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Crapo):
  S. 3331. A bill to amend the Internal Revenue Code of 1986 to require 
that the payment of the manufacturers' excise tax on recreational 
equipment be paid quarterly; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I am pleased today to join with my friend 
Senator Crapo to introduce an important piece of legislation that would 
help to strengthen the financial health of America's firearm and 
ammunition manufacturers, who in turn support wildlife conservation in 
America.
  The firearm and ammunition industry pays a Federal excise tax of 11 
percent on long guns and ammunition and 10 percent on handguns. The Tax 
and Trade Bureau in the Treasury Department collects this tax. The 
Bureau sends the proceeds to the U.S. Fish and Wildlife Service, where 
they are deposited into the Wildlife Restoration Trust Fund, also known 
as the Pittman-Robertson Trust Fund.
  The tax is a major source of conservation funding in America. Since 
1991, the firearm and ammunition industry has contributed about $3 
billion to the Pittman-Robertson Fund.
  Of all the industries that pay excise taxes on the sale of their 
products to support wildlife conservation efforts, firearms and 
ammunition manufacturers are the only ones that have to pay excise 
taxes every 2 weeks. Other industries, such as archery and fishing, pay 
their tax every 3 months.
  This frequent payment obligation imposes a costly and inequitable 
burden on the firearms and ammunition industry. Manufacturers spend 
thousands of additional man-hours just to administer the paperwork 
associated with making the bi-weekly excise payments.
  According to the National Shooting Sports Foundation, changing the 
deposit schedule from a bi-weekly to quarterly payment would save the 
industry an estimated $21.6 million dollars a year. That's money that 
the industry could use for investment in researching and developing new 
products, purchasing new manufacturing plants and equipment, and 
communicating with the hunting and shooting sports community.
  Let me take a moment to explain what this legislation does not do. It 
does not reduce the firearm and ammunition industry's excise tax rates. 
It simply adds fairness to the tax code.
  It is important for my Colleagues to understand the history and 
nature of the firearm and ammunition excise tax. During the Great 
Depression, hunters and conservationists recognized that overharvesting 
of wildlife would destroy America's treasured wildlife and natural 
habitats. Sportsmen, state wildlife agencies, and the firearm and 
ammunition industries lobbied Congress to extend the existing 10 
percent excise tax and impose a new 11 percent excise tax to create a 
new fund. The fund was called the Pittman-Robertson Trust Fund after 
Senator Key Pittman of Nevada and Representative A. Willis Robertson of 
Virginia. President Franklin D. Roosevelt signed the legislation into 
law in 1937.
  The industry, hunters, and conservationists came together to create 
this structure. They recognized the importance of conservation. And 
they encouraged Congress to impose a tax on their guns and ammo. It is 
a rare thing when taxpayers ask to be taxed. But preserving our 
country's wildlife habitat was and continues to be that important.
  Today, more than $700 million each year is generated and used 
exclusively to establish, restore, and protect wildlife habitats.
  Now let me explain the effect that the bill we are introducing today 
would have on the Pittman-Robertson Trust Fund. As the Joint Committee 
on Taxation explained in its revenue estimate, the net budget effect to 
the fund is $4 million. This is purely a result of the shift in the 
timing of collections, from bi-weekly to quarterly, over a 10-year 
budget window. Consumers of firearms and ammunition would still pay the 
exact same amount of tax.
  The firearm and ammunition industry recognizes the 10-year $4 million 
loss to the trust fund. The industry developed a comprehensive 5-year 
proposal to ease this effect. Under the proposal, the industry would 
contribute $150,000 a year for the next 5 years, a total of $750,000, 
to the fund.
  These actions again show the partnership between hunters, 
conservation groups, and the firearm and ammunition industry to protect 
conservation programs and initiatives. That is why this legislation is 
supported by the following groups: Archery Trade Association; 
Association of Fish and Wildlife Agencies; Boon and Young; 
Congressional Sportsmen's Foundation; Delta Waterfowl; Ducks Unlimited; 
National Rifle Association; National Shooting Sports Foundation, Inc.; 
National Wild Turkey Federation; North American Wetlands Conservation 
Council; Pheasants Forever; Rocky Mountain Elk Foundation; Safari Club 
International; Wildlife Management Institute; U.S. Fish and Wildlife 
Service; U.S. Sportsmen's Alliance.
  I urge my Colleagues to support this legislation. I hope that we can 
come together, just as the industry, hunters, and conservation groups 
have, to pass this legislation. It's a matter of tax fairness. Let us 
do our part to correct this inequity in the tax code. Let us do our 
part to support an American business that in turn supports wildlife 
habitat restoration and conservation.
                                 ______
                                 
      By Mr. STEVENS (for himself and Ms. Murkowski):
  S. 3333. A bill to amend the Whaling Convention Act so that it 
expressly applies to aboriginal subsistence whaling, and in particular, 
authorizes the Secretary of Commerce to set bowhead whale catch limits 
in the event that the IWC fails to adopt such limits; to the Committee 
on Commerce, Science, and Transportation.
  Mr. STEVENS. Mr. President, currently, annual catch limits for 
subsistence whaling by Alaskan natives is set through periodic 
negotiations of the international whaling commission. In setting the 
quota, the IWC has tremendous power to influence the lives--even the 
survival--of these aboriginal communities.
  For over 30 years I have worked with the International Whaling 
Commission to secure the right for native Alaskans to hunt bowhead 
whales and preserve their subsistence lifestyle. Currently, native 
Alaskans living in 10 villages on Alaska's north slope and St. Lawrence 
Island carry forward an ancient tradition of harvesting small numbers 
of bowhead whales. Not only do these whales serve as a primary source 
of food for the communities, but they define their very identity and 
culture.
  The Alaska natives who rely on this subsistence hunt have complied 
with the mandates passed down from the IWC to ensure a sustainable and 
humane harvest. In fact, since the IWC

[[Page S7301]]

began regulating these catches, the number of bowhead whales in the 
Arctic has risen substantially.
  The IWC, however, may not always produce the bowhead quota upon which 
Alaska natives depend due to political games. Over the last several 
years, I have seen other nations attempt to influence the U.S. position 
on other whaling issues at the IWC by specifically interfering with the 
native Alaskans bowhead quota votes. This is unacceptable. Any 
positions on whaling issues under IWC's purview need to be debated on 
their own merits. It is unthinkable to allow other countries to use The 
health and welfare of our Alaska natives, whose lives depend on this 
hunt, as leverage for influencing U.S. positions on other IWC matters.

  The legislation I am introducing will ensure that native Alaskans 
maintain their rights to engage in subsistence whaling--an ancient 
practice vital to their culture and survival. This bill would amend the 
Whaling Convention Act of 1949 to authorize the Secretary of Commerce 
to issue bowhead whale catch limits for aboriginal subsistence whaling 
in Alaska native communities.
  This bill ensures that the U.S. will continue to seek and negotiate 
bowhead whaling quota through the IWC. But if the IWC is unable to 
issue bowhead whaling quota, the Secretary of Commerce could then issue 
domestic aboriginal subsistence whaling permits. Such action would need 
to ensure consistency with IWC rules on subsistence whaling ensuring 
safe, sustainable, and humane hunts, and the harvest must not exceed 
the original subsistence needs recommended by the U.S.
  The IWC has the great responsibility of ensuring that any subsistence 
whaling, now or in the future, is carried out in a scientifically sound 
and sustainable manner. I continue to support the IWC's efforts on this 
vital issue. yet the United States must also protect the rights of our 
native communities to continue their ancient subsistence bowhead 
harvesting. This bill strikes the proper balance between supporting IWC 
work and protecting our Alaska native communities. I thank my 
colleagues for considering this important legislation.

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