[Congressional Record Volume 154, Number 149 (Thursday, September 18, 2008)]
[Senate]
[Pages S9027-S9038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CRAIG (for himself and Mr. Crapo):
  S. 3516. A bill to permit commercial vehicles at weights up to 
129,000 pounds to use certain highways of the Interstate System in the 
State of Idaho which would provide significant savings in the 
transportation of goods throughout the United States, and for other 
purposes; to the Committee on Environment and Public Works.
  Mr. CRAIG. Mr. President, I come to the floor today to introduce the 
Idaho Efficient Vehicle Demonstration Act of 2008. I am pleased that my 
colleague, Senator Crapo, is fully supportive and an original cosponsor 
of this bill, and that an identical bill will be introduced today in 
the House of Representatives by our colleagues, Representatives Mike 
Simpson and Bill Sali.
  This is a bill that is very important to the State of Idaho. It is a 
bill that will improve the efficiency of freight movement within the 
State, provide significant economic benefits to a variety of local 
natural resource-based industries, and establish a record attesting to 
the safety of heavier, more efficient vehicles.

[[Page S9028]]

  The State of Idaho has long recognized the need to provide a more 
productive means of freight transport. In light of that, the Idaho 
State Legislature created a pilot project in 2003 to allow vehicle 
combinations weighing up to 129,000 pounds on designated routes within 
the State highway system. As a result of this pilot project, Idaho has 
realized significant economic benefits and has established a strong 
record of safety while utilizing more efficient vehicles.
  Idaho's sugar beet, potato, grain, dairy and phosphate industries 
reported that participation in the pilot project resulted in reduced 
fuel consumption and equipment maintenance and increased productivity 
based on estimates of five to eight percent savings in freight costs. 
Amalgamated Sugar Company reported 30,000 fewer truck trips, resulting 
in an estimated savings of just under $300,000.
  This pilot project has been in effect for 5 years and no safety 
concerns have been raised by the participants or by the Idaho 
Transportation Department in their initial report last year. In fact, 
survey responses from pilot project participants found that safety was 
the same or greater due to the reduced numbers of trucks on the road. 
Similarly, the pilot project has not been found to create a significant 
change in pavement conditions when compared to previous years.
  In light of this 5-year record, I believe it is appropriate and 
necessary to make a very small, targeted expansion of this project by 
adding limited stretches of Federal highway to the existing State pilot 
project to help connect our State and Federal roads so that the 
movement of goods can proceed more efficiently in the future.
  This small expansion is necessary for several reasons. Idaho's 
neighboring States of Montana, Nevada, Utah and Wyoming do not have 
such stringent limits on their Federal highways due to grandfathered 
rights. This puts Idaho at a distinct competitive disadvantage and 
slows the free flow of freight between neighboring States. This bill 
would help to even that disparity in weight restrictions among our 
neighbors. It will also provide valuable data and information to the 
U.S. Department of Transportation as to the net beneficial effects to 
our infrastructure by requiring that road, bridge and accident 
information is gathered and reported.
  This bill has the strong support of Idaho Governor Butch Otter, the 
Idaho Transportation Department, and the business community, including 
both shippers and motor carriers. The Idaho Trucking Association has 
specifically endorsed this proposal as have numerous shipper companies 
that are based in my home State.
  I recognize that there are significant challenges facing the freight 
industry and, by association, our natural resource-based industries 
that rely heavily on trucks to move their freight. Changes in truck 
emission requirements, a seemingly perpetual driver shortage, sustained 
high fuel costs, and increasing insurance premiums are only a few of 
the challenges that face truck companies and struggling industries in 
Idaho. With that said, this is one step that can be taken to relieve 
some of the burden on our freight industry, and do so in a safe, 
economic and environmentally friendly fashion.
  If enacted, this bill will improve safety by reducing the number of 
trucks on Idaho roads. It will have a positive environmental impact by 
reducing diesel consumption and emissions. It will provide an economic 
boost to the State by reducing wear and tear on Idaho highways and 
improving the competitiveness of our natural resource industries.
  In light of the enormous task of reauthorizing our Nation's surface 
transportation policy next year, it is important that proposals of this 
nature be allowed time to be discussed and vetted at length. 
Ultimately, it is my hope that we might be able to make some targeted 
changes to Federal weight restrictions in order to achieve significant 
environmental and economic gains while still keeping the highest regard 
for safety.
  I look forward to working with my colleagues in the Senate to move 
forward this important issue.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Harkin, Mr. Inouye, and Mr. 
        Feingold):
  S. 3517. A bill to amend the Employee Retirement Income Security Act 
of 1974 and the Public Health Service Act to provide parity under group 
health plans and group health insurance coverage for the provision of 
benefits for prosthetic devices and components and benefits for other 
medical and surgical services; to the Committee on Health, Education, 
Labor, and Pensions.
  Ms. SNOWE. Today I rise with Senator Tom Harkin of Iowa to introduce 
bipartisan legislation aimed at reducing disability in our Nation. As 
the Congress moves this week to ensure the strength of the landmark 
Americans with Disabilities Act, we must continue to work to ensure 
that every American has the means to overcome physical impairment. I am 
honored to be joined today by Senator Harkin--who has long championed 
the ADA--as well as Senators Daniel Inouye, and Russ Feingold--as we 
act to ensure that those with group health insurance are able to access 
needed prosthetic care in order to lead full and independent lives.
  This year over 130,000 individuals will undergo amputation 
procedures, often as a complication of diabetes or other chronic 
disease. For such individuals an appropriate prosthetic limb reduces 
disability and allows them to maintain employment and lead more 
productive lives.
  Today many amputees receive prosthetics through their coverage by the 
VA, Medicare, Medicaid, or S-CHIP. Yet too often individuals without 
such coverage find that their private plan requires copayments for a 
needed prosthetic which they simply cannot afford, or imposes a 
``lifetime cap'' which prevents them from replacing an existing 
prosthetic when needed.
  So with an estimated two million individuals living with limb 
differences or loss in the United States, the impact of severely-
restricted prosthetic coverage can be devastating. This is even more so 
for the estimated 70,000 amputees under the age of 18. Sadly, we see 
those children particularly affected as their growth increases the 
frequency with which a prosthetic requires replacement. That can 
quickly exceed a parent's ability to meet copayment requirements--a 
coverage cap may deny access to a replacement prosthetic.
  So it is easy to see why 11 States--including my own State of Maine--
have enacted legislation to assure reasonable coverage of prosthetics, 
and why more than half of the States are now examining parity for 
prosthetics. Studies in different States have reported that the 
imposition of parity can be expected to raise monthly health plan 
premiums by approximately 12 to 50 cents a month. That low cost helps 
keep amputees productive, and avoids shifting health costs to public 
programs--simply because the needed prosthetic could not be obtained, 
and the individual saw their function and productivity decline until 
they had to rely on public assistance.
  That is so unnecessary and inappropriate. The legislation which we 
are introducing today--the Prosthetics Parity Act of 2008--will ensure 
that group health plans treat coverage of such prosthetic devices on 
par with other essential medical care covered by health insurance. It 
does not mandate coverage, but it does assure than when it is offered, 
it is not so restricted or capped that it does not assure an amputee of 
the prosthetic they require.
  As we move forward to ensure greater opportunity and accommodation 
for Americans with disabilities, it is so timely that we ensure the 
appropriate access to prosthetics to help reduce disability. I call on 
my colleagues to join us in supporting this legislation to further the 
vision of greater opportunity for those with disabilities.
  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. 3517

       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 ``Prosthetics Parity Act of 
     2008''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) There are more than 1,800,000 people in the United 
     States living with limb loss.

[[Page S9029]]

       (2) Every year, there are more than 130,000 people in the 
     United States who undergo amputation procedures.
       (3) In addition, United States military personnel serving 
     in Iraq and Afghanistan and around the world have sustained 
     traumatic injuries resulting in amputation.
       (4) The number of amputations in the United States is 
     projected to increase in the years ahead due to the rising 
     incidence of diabetes and other chronic illness.
       (5) Those suffering from limb loss can and want to regain 
     their lives as productive members of society.
       (6) Prosthetic devices enable amputees to continue working 
     and living productive lives.
       (7) Insurance companies have begun to limit reimbursement 
     of prosthetic equipment costs to unrealistic levels or not at 
     all and often restrict coverage over an individual's 
     lifetime, which shifts costs onto the Medicare and Medicaid 
     programs.
       (8) Eleven States have addressed this problem and have 
     prosthetic parity legislation.
       (9) Prosthetic parity legislation has been introduced and 
     is being actively considered in 30 States.
       (10) The States in which prosthetic parity laws have been 
     enacted have found there to be minimal or no increases in 
     insurance premiums and have reduced Medicare and Medicaid 
     costs.
       (11) Prosthetic parity legislation will not add to the size 
     of government or to the costs associated with the Medicare 
     and Medicaid programs.
       (12) If coverage for prosthetic devices and components are 
     offered by a group health insurance policy, then providing 
     such coverage of prosthetic devices on par with other medical 
     and surgical benefits will not increase the incidence of 
     amputations or the number of individuals for which a 
     prosthetic device would be medically necessary and 
     appropriate.
       (13) In States where prosthetic parity legislation has been 
     enacted, amputees are able to return to a productive life, 
     State funds have been saved, and the health insurance 
     industry has continued to prosper.
       (14) Prosthetic services allow people to return more 
     quickly to their preexisting work.
       (b) Purpose.--It is te purpose of this Act to require that 
     each group health plan that provides both coverage for 
     prosthetic devices and components and medical and surgical 
     benefits, provide such coverage under terms and conditions 
     that are no less favorable that the terms and conditions 
     under which such benefits are provided for other benefits 
     under such plan.

     SEC. 3. PROSTHETICS PARITY.

       (a) ERISA.--
       (1) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 714. PROSTHETICS PARITY.

       ``(a) In General.--In the case of a group health plan (or 
     health insurance coverage offered in connection with a group 
     health plan) that provides both medical and surgical benefits 
     for prosthetic devices and components (as defined under 
     subsection (d)(1))--
       ``(1) such benefits for prosthetic devices and components 
     under the plan (or coverage) shall be provided under terms 
     and conditions that are no less favorable than the terms and 
     conditions applicable to substantially all medical and 
     surgical benefits provided under the plan (or coverage);
       ``(2) such benefits for prosthetic devices and components 
     under the plan (or coverage) may not be subject to separate 
     financial requirements (as defined in subsection (d)(2)) that 
     are applicable only with respect to such benefits, and any 
     financial requirements applicable to such benefits shall be 
     no more restrictive than the financial requirements 
     applicable to substantially all medical and surgical benefits 
     provided under the plan (or coverage); and
       ``(3) any treatment limitations (as defined in subsection 
     (d)(3)) applicable to such benefits for prosthetic devices 
     and components under the plan (or coverage) may not be more 
     restrictive than the treatment limitations applicable to 
     substantially all medical and surgical benefits provided 
     under the plan ( or coverage).
       ``(b) In Network and Out-of-Network Standards.--
       ``(1) In general.--In the case of a group health plan (or 
     health insurance coverage offered in connection with a group 
     health plan) that provides both medical and surgical benefits 
     and benefits for prosthetic devices and components, and that 
     provides both in-network benefits for prosthetic devices and 
     components and out-of-network benefits for prosthetic devices 
     and components, the requirements of this section shall apply 
     separately with respect to benefits under the plan (or 
     coverage) on an in-network basis and benefits provided under 
     the plan (or coverage) on an out-of-network basis.
       ``(2) Clarification.--Nothing in paragraph (1) shall be 
     construed as requiring that a group health plan (or health 
     insurance coverage offered in connection with a group health 
     plan) eliminate an out-of-network provider option from such 
     plan (or coverage) pursuant to the terms of the plan (or 
     coverage).
       ``(c) Additional Requirements.--
       ``(1) Prior authorization.--In the case of a group health 
     plan (or health insurance coverage offered in connection with 
     a group health plan) that requires, as a condition of 
     coverage or payment for prosthetic devices and components 
     under the plan (or coverage), prior authorization, such prior 
     authorization must be required in the same manner as prior 
     authorization is required by the plan (or coverage) as a 
     condition of coverage or payment for all similar benefits 
     provided under the plan (or coverage).
       ``(2) Limitation on mandated benefits.--Coverage for 
     required benefits for prosthetic devices and components under 
     this section shall be limited to coverage of the most 
     appropriate device or component model that adequately meets 
     the medical requirements of the patient, as determined by the 
     treating physician of the patient involved.
       ``(3) Coverage for repair or replacement.--Benefits for 
     prosthetic devices and components required under this section 
     shall include coverage for the repair or replacement of 
     prosthetic devices and components, if the repair or 
     replacement is determined appropriate by the treating 
     physician of the patient involved.
       ``(4) Annual or lifetime dollar limitations.--A group 
     health plan (or health insurance coverage offered in 
     connection with a group health plan) shall not impose any 
     annual or lifetime dollar limitation on benefits for 
     prosthetic devices and components required to be covered 
     under this section unless such limitation applies in the 
     aggregate to all medical and surgical benefits provided under 
     the plan (or coverage) and benefits for prosthetic devices 
     components.
       ``(d) Definitions.--In this section:
       ``(1) Prosthetic devices and components.--The term 
     `prosthetic devices and components' means those devices and 
     components that may be used to replace, in whole or in part, 
     an arm or leg, as well as the services required to do so and 
     includes external breast prostheses incident to mastectomy 
     resulting from breast cancer.
       ``(2) Financial requirements.--The term `financial 
     requirements' includes deductibles, coinsurance, co-payments, 
     other cost sharing, and limitations on the total amount that 
     may be paid by a participant or beneficiary with respect to 
     benefits under the plan or health insurance coverage and also 
     includes the application of annual and lifetime limits.
       ``(3) Treatment limitations.--The term `treatment 
     limitations' includes limits on the frequency of treatment, 
     number of visits, days of coverage, or other similar limits 
     on the scope or duration of treatment.''.
       (2) Clerical amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 is 
     amended by inserting after the item relating to section 713 
     the following:

``Sec. 714. Prosthetics parity.''.

       (b) PHSA.--Subpart 2 of part A of title XXVII of the Public 
     Health Service Act (42 U.S.C. 300gg-4 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 2707. PROSTHETICS PARITY.

       ``(a) In General.--In the case of a group health plan (or 
     health insurance coverage offered in connection with a group 
     health plan) that provides both medical and surgical benefits 
     for prosthetic devices and components (as defined under 
     subsection (d)(1))--
       ``(1) such benefits for prosthetic devices and components 
     under the plan (or coverage) shall be provided under terms 
     and conditions that are no less favorable than the terms and 
     conditions applicable to substantially all medical and 
     surgical benefits provided under the plan (or coverage);
       ``(2) such benefits for prosthetic devices and components 
     under the plan (or coverage) may not be subject to separate 
     financial requirements (as defined in subsection (d)(2)) that 
     are applicable only with respect to such benefits, and any 
     financial requirements applicable to such benefits shall be 
     no more restrictive than the financial requirements 
     applicable to substantially all medical and surgical benefits 
     provided under the plan (or coverage); and
       ``(3) any treatment limitations (as defined in subsection 
     (d)(3)) applicable to such benefits for prosthetic devices 
     and components under the plan (or coverage) may not be more 
     restrictive than the treatment limitations applicable to 
     substantially all medical and surgical benefits provided 
     under the plan ( or coverage).
       ``(b) In Network and Out-of-Network Standards.--
       ``(1) In general.--In the case of a group health plan (or 
     health insurance coverage offered in connection with a group 
     health plan) that provides both medical and surgical benefits 
     and benefits for prosthetic devices and components, and that 
     provides both in-network benefits for prosthetic devices and 
     components and out-of-network benefits for prosthetic devices 
     and components, the requirements of this section shall apply 
     separately with respect to benefits under the plan (or 
     coverage) on an in-network basis and benefits provided under 
     the plan (or coverage) on an out-of-network basis.
       ``(2) Clarification.--Nothing in paragraph (1) shall be 
     construed as requiring that a group health plan (or health 
     insurance coverage offered in connection with a group health 
     plan) eliminate an out-of-network provider option from such 
     plan (or coverage) pursuant to the terms of the plan (or 
     coverage).
       ``(c) Additional Requirements.--
       ``(1) Prior authorization.--In the case of a group health 
     plan (or health insurance coverage offered in connection with 
     a group health plan) that requires, as a condition of 
     coverage or payment for prosthetic devices

[[Page S9030]]

     and components under the plan (or coverage), prior 
     authorization, such prior authorization must be required in 
     the same manner as prior authorization is required by the 
     plan (or coverage) as a condition of coverage or payment for 
     all similar benefits provided under the plan (or coverage).
       ``(2) Limitation on mandated benefits.--Coverage for 
     required benefits for prosthetic devices and components under 
     this section shall be limited to coverage of the most 
     appropriate device or component model that adequately meets 
     the medical requirements of the patient, as determined by the 
     treating physician of the patient involved.
       ``(3) Coverage for repair or replacement.--Benefits for 
     prosthetic devices and components required under this section 
     shall include coverage for the repair or replacement of 
     prosthetic devices and components, if the repair or 
     replacement is determined appropriate by the treating 
     physician of the patient involved.
       ``(4) Annual or lifetime dollar limitations.--A group 
     health plan (or health insurance coverage offered in 
     connection with a group health plan) shall not impose any 
     annual or lifetime dollar limitation on benefits for 
     prosthetic devices and components required to be covered 
     under this section unless such limitation applies in the 
     aggregate to all medical and surgical benefits provided under 
     the plan (or coverage) and benefits for prosthetic devices 
     components.
       ``(d) Definitions.--In this section:
       ``(1) Prosthetic devices and components.--The term 
     `prosthetic devices and components' means those devices and 
     components that may be used to replace, in whole or in part, 
     an arm or leg, as well as the services required to do so and 
     includes external breast prostheses incident to mastectomy 
     resulting from breast cancer.
       ``(2) Financial requirements.--The term `financial 
     requirements' includes deductibles, coinsurance, co-payments, 
     other cost sharing, and limitations on the total amount that 
     may be paid by an enrollee with respect to benefits under the 
     plan or health insurance coverage and also includes the 
     application of annual and lifetime limits.
       ``(3) Treatment limitations.--The term `treatment 
     limitations' includes limits on the frequency of treatment, 
     number of visits, days of coverage, or other similar limits 
     on the scope or duration of treatment.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to group health plans (and health 
     insurance coverage offered in connection with group health 
     plans) for plan years beginning on or after the date of the 
     enactment of this Act.

     SEC. 4. FEDERAL ADMINISTRATIVE RESPONSIBILITIES.

       (a) Assistance to Enrollees.--The Secretary of Labor, in 
     consultation with the Secretary of Health and Human Services, 
     shall provide assistance to enrollees under plans or coverage 
     to which the amendment made by section 3 apply with any 
     questions or problems with respect to compliance with the 
     requirements of such amendment.
       (b) Audits.--The Secretary of Labor, in consultation with 
     the Secretary of Health and Human Services, shall provide for 
     the conduct of random audits of group health plans (and 
     health insurance coverage offered in connection with such 
     plans) to ensure that such plans (or coverage) are in 
     compliance with the amendments made by section (3).
       (c) GAO Study.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study that evaluates the effect of the 
     implementation of the amendments made by this Act on the cost 
     of the health insurance coverage, on access to health 
     insurance coverage (including the availability of in-network 
     providers), on the quality of health care, on benefits and 
     coverage for prosthetics devices and components, on any 
     additional cost or savings to group health plans, on State 
     prosthetic devices and components benefit mandate laws, on 
     the business community and the Federal Government, and on 
     other issues as determined appropriate by the Comptroller 
     General.
       (2) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall prepare and submit to the appropriate committee 
     of Congress a report containing the results of the study 
     conducted under paragraph (1).
       (d) Regulations.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary of Labor, in 
     consultation with the Secretary of Health and Human Services, 
     shall promulgate final regulations to carry out this Act and 
     the amendments made by this Act.
                                 ______
                                 
      By Mr. BINGAMAN (for himself and Mr. Crapo):
  S. 3518. A bill to amend the Internal Revenue Code of 1986 to modify 
the limitations on the deduction of interest by financial institutions 
which hold tax-exempt bonds, and for other purposes; to the Committee 
on Finance.
  Mr. BINGAMAN. Mr. President, one of the credit crunch's most unfair--
but least-discussed--impacts is its severe curtailment of 
municipalities' ability to raise capital for critical infrastructure 
projects. Because municipalities did not engage in the financial 
``innovation'' that led to this situation, they are merely innocent 
bystanders swept up in a national crisis. Congress must take swift 
action to mitigate the credit crunch's impact on U.S. municipalities. 
To do so, I rise today to introduce the Municipal Bond Market Support 
Act of 2008. By relaxing outdated restrictions that prevent banks from 
acquiring municipal debt, the Act will significantly enhance demand for 
municipal bonds, thus aiding municipalities across the Nation--
particularly those in small and rural communities--in financing 
essential infrastructure projects. I thank my friend from Idaho, Mr. 
Crapo, a colleague on the Finance Committee, for joining me in 
introducing this bipartisan legislation.
  Federal policy has long recognized the critical role of municipal 
bonds in enabling communities to undertake critical investments. But 
the liquidity crisis has dried up available capital for bonds, both 
municipal and corporate, at a time when the municipal bond market is 
already reeling from other setbacks. The auction-rate security market's 
collapse, which forced municipal issuers to refinance or convert more 
than $80 billion of their total $166 billion in such securities, has 
already cost municipalities more than $1 billion, thus pushing new 
municipal bond issuance out of reach for many municipalities. 
Meanwhile, when the Nation's two largest bond insurers were downgraded 
earlier this year, the underlying municipal bonds saw a corresponding 
downgrade--a penalty for merely being ``wrapped'' in the downgraded 
firm's insurance.
  Taken together, these forces have driven yields on benchmark, 30-year 
tax-exempt debt to their highest levels since July 2004. These high 
rates have dramatically increased costs for municipalities facing 
interest payments on outstanding floating-rate municipal bonds, while 
making it more costly for municipalities to issue new debt. In the 
first half of 2008, long-term municipal issuance dropped 4.1 percent 
over the prior year, and a further drop is predicted in the second 
half; for new issuances, the interest costs have vastly increased. 
Given the credit crunch's severity, full recovery is probably a long 
way off. The timing could not be less opportune--the financial slowdown 
will cause municipal budget deficits to balloon, just when the need for 
infrastructure enhancements could not be more apparent.
  Our bill, which largely mirrors a companion already introduced in the 
House by Chairman Frank and Chairman Neal of the House Ways and Means 
Select Revenue Measures Subcommittee, would stimulate demand--and 
therefore lower borrowing costs for issuing municipalities--by relaxing 
restrictions on banks' ability to participate in the municipal bond 
market.
  To understand the proposed changes, it is useful to briefly review 
the tax code's current rules regarding banks' holding of municipal 
debt. Prior to 1986, banks were generally permitted to deduct the full 
interest costs they incurred unless a borrowing was incurred or 
continued to purchase or hold such bonds. Consequently, banks made up a 
significant share of the demand for municipal debt. But the 1986 tax 
reform eliminated this deduction for banks by requiring a pro-rata 
interest expense disallowance, with a limited ``qualified small 
issuer'' exception that permits banks to deduct 80 percent of the cost 
of purchasing and carrying bonds of governmental entities that issue 
$10 million or less in municipal bonds in any calendar year. This 
exception was added because small issuers' infrequent and small 
borrowing amounts make it too costly for them to sell debt in the 
national capital markets, leaving private placements with local banks 
the most feasible and cost-effective alternative.
  To increase demand for municipal debt, the bill makes two 
modifications to these limitations. First, it would raise the bank 
qualified limit for small issuers from $10 million to $30 million, and 
then index the new limit for inflation. Municipalities that issue 
between $10 million and $30 million will thus be able to raise capital 
through private placements. Because private placements generally carry 
no underwriting fees and require no offering document, the up-front 
issuing costs to municipalities are far lower than issuing debt on the 
public markets. More critically, interest payments are far lower: 
Interest on such ``bank qualified'' debt averages 40 basis points, 0.40 
percent, less than interest on nonbank qualified debt.

[[Page S9031]]

  Failing to raise the bank-qualified level from the amount set in 1986 
has real consequences for American communities. For instance, many 
small hospitals and healthcare facilities, even in small population 
States, cannot take advantage of today's small-issuer exception because 
they borrow through statewide authorities that issue bonds on behalf of 
multiple institutions, thereby exceeding the $10 million limit. In my 
home state, the New Mexico Hospital Equipment Loan Council tells me 
that if the $10 million limit had instead been $30 million, then many 
hospitals in our state's rural communities would have been able to 
secure funding to acquire additional hospital equipment, among them, 
Sierra Vista Hospital in Truth or Consequences; the Prairie Meadows 
assisted living facility in Clovis; and the Las Cruces Mental Health 
Center in Las Cruces. For each of these entities, the prospective 
borrower was instead forced to seek alternative, higher-cost capital 
options--or could not secure funding to complete the transaction.
  As another example, the City of Las Cruces would benefit from this 
bill. The city has had five debt issues in the last 5 years that 
exceeded $10 million. The financial advisor under contract to the City 
estimates that the difference in rates, with a higher limit on bank 
qualified debt, would be about 20 basis points--a savings that would be 
passed on to the taxpayers and rate payers in our community.
  Second, as concerns municipalities that issue more than $30 million 
in debt annually, the bill would allow financial institutions to hold 
up to 2 percent of their total assets in such debt, without disallowing 
a proportional amount of their interest expense deduction. This change 
is intended to restore bank demand and provide some stability by 
bringing this group of institutional investors back into the municipal 
market. Nonfinancial companies already benefit from this safe harbor, 
so in this regard, the bill creates parity. Many larger municipal 
infrastructure projects have costs in excess of $30 million, and bank 
investment can only help these critical projects succeed.
  Finally, it bears mentioning that this bill offers at least two 
collateral benefits. First, enabling local governments to undertake 
additional infrastructure investments will help to stimulate our 
challenged economy. Second, by enabling banks to acquire municipal 
bonds--the safest class of security--the bill will enhance the 
stability of banks at a time that they face considerable financial 
pressure.
  I am pleased that this bill has been endorsed by a number of 
organizations, including the National League of Cities; U.S. Conference 
of Mayors; National Association of Counties; Government Finance 
Officers Association; International City/County Management Association; 
National Association of State Auditors, Comptrollers and Treasurers; 
National Association of State Treasurers; Council of Infrastructure 
Financing Authorities; Education Finance Council; and National 
Association of Health and Educational Facilities Finance Authorities.
  I hope my colleagues will join with Senator Crapo and me in working 
to enhance liquidity in the municipal bond market. Our bill will go a 
long way toward ensuring that our cities, towns, counties, utility 
districts, and school districts can secure affordable financing to 
undertake the infrastructure projects that our communities sorely 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. 3518

       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 ``Municipal Bond Market 
     Support Act of 2008''.

     SEC. 2. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT 
                   INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL 
                   INSTITUTIONS.

       (a) Increase in Limitation.--Subparagraphs (C)(i), (D)(i), 
     and (D)(iii)(II) of section 265(b)(3) of the Internal Revenue 
     Code of 1986 are each amended by striking ``$10,000,000'' and 
     inserting ``$30,000,000''.
       (b) Repeal of Aggregation Rules Applicable to Small Issuer 
     Determination.--Paragraph (3) of section 265(b) of such Code 
     is amended by striking subparagraphs (E) and (F).
       (c) Election to Apply Limitation at Borrower Level.--
     Paragraph (3) of section 265(b) of such Code, as amended by 
     subsection (b), is amended by adding at the end the following 
     new subparagraph:
       ``(E) Election to apply limitation on amount of obligations 
     at borrower level.--
       ``(i) In general.--An issuer, the proceeds of the 
     obligations of which are to be used to make or finance 
     eligible loans, may elect to apply subparagraphs (C) and (D) 
     by treating each borrower as the issuer of a separate issue.
       ``(ii) Eligible loan.--For purposes of this subparagraph--

       ``(I) In general.--The term `eligible loan' means one or 
     more loans to a qualified borrower the proceeds of which are 
     used by the borrower and the outstanding balance of which in 
     the aggregate does not exceed $30,000,000.
       ``(II) Qualified borrower.--The term `qualified borrower' 
     means a borrower which is an organization described in 
     section 501(c)(3) and exempt from taxation under section 
     501(a) or a State or political subdivision thereof.

       ``(iii) Manner of election.--The election described in 
     clause (i) may be made by an issuer for any calendar year at 
     any time prior to its first issuance during such year of 
     obligations the proceeds of which will be used to make or 
     finance one or more eligible loans.''.
       (d) Inflation Adjustment.--Paragraph (3) of section 265(b) 
     of such Code, as amended by subsections (b) and (c), is 
     amended by adding at the end the following new subparagraph:
       ``(F) Inflation adjustment.--In the case of any calendar 
     year after 2009, the $30,000,000 amounts contained in 
     subparagraphs (C)(i), (D)(i), (D)(iii)(II), and (E)(ii)(I) 
     shall each be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2008' `for calendar year 1992' in 
     subparagraph (B) thereof.
     Any increase determined under the preceding sentence shall be 
     rounded to the nearest multiple of $100,000.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2008.

     SEC. 3. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT 
                   INTEREST EXPENSE OF FINANCIAL INSTITUTIONS AND 
                   BROKERS.

       (a) Financial Institutions.--Subsection (b) of section 265 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new paragraph:
       ``(7) De minimis exception.--Paragraph (1) shall not apply 
     to any financial institution if the portion of the taxpayer's 
     holdings of tax-exempt securities is less than 2 percent of 
     the taxpayer's assets.''.
       (b) Brokers.--Subsection (a) of section 265 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(7) De minimis exception.--Paragraph (2) shall not apply 
     to any broker (as defined in section 6045(c)(1)) if the 
     portion of the taxpayer's holdings of tax-exempt securities 
     is less than 2 percent of the taxpayer's assets.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mrs. Feinstein, Mrs. McCaskill, and 
        Mr. Wyden):
  S. 3519. A bill to amend the Animal Welfare Act to provide further 
protection for puppies; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. DURBIN. Mr. President, today I am introducing the Puppy Uniform 
Protection and Safety Act, or PUPS Act.
  In recent years, media reports have highlighted the cruel treatment 
of dogs raised by irresponsible breeders in large-scale commercial 
operations. The facilities operated by the most negligent owners are 
often referred to as puppy mills, because they churn out dogs the way a 
factory would--with little or no respect for the animals' quality of 
life.
  Let me be clear, there are many responsible dog breeders across the 
country who care about and take great pains to properly look after the 
animals in their care. Those breeders are not the target of this 
legislation.
  Unfortunately, the less scrupulous ``puppy mills'' threaten the 
reputation of the entire industry. The dogs bred or raised in puppy 
mills are often housed in cramped, dirty, wire cages. To maximize 
profit, a breeder may stack cages on top of each other or keep the 
cages outdoors where dogs are exposed to the elements. The dogs may 
never be given a chance to exercise or even walk on solid ground. Some 
animals rescued from puppy mills show signs of malnutrition and 
dehydration, having been denied a sufficient supply of food and

[[Page S9032]]

water. Puppies raised in these settings don't always have regular 
veterinary, and the breeding females are made to have litter after 
litter of puppies.
  Not surprisingly, this treatment has an effect on the physical and 
mental health of the animals raised in these facilities.
  Veterinarians in Illinois have shared with me heartbreaking tales of 
families who unknowingly purchased dogs that had been raised in puppy 
mills. Those dogs turn out to have serious health and behavioral 
problems. By the time these conditions are diagnosed, the families have 
welcomed the new puppy into the family and developed a strong emotional 
attachment. In some cases, the puppies could be treated, but often at 
great expense to their new owners. These families face very difficult 
decisions.
  Today, people can go on-line and research puppies available for 
purchase with the simple click of a mouse. You can't blame people for 
using the convenience of shopping online, but some puppy mill operators 
advertise on the internet so that they can bypass the pet store. That 
way, the breeder can avoid the Federal licensing requirements of the 
Animal Welfare Act, which apply only to wholesale breeders. That means 
that finding your puppy on-line may well increase the chance that 
you'll be buying from a puppy mill.
  The PUPS Act I am introducing today, along with Senators Feinstein, 
McCaskill, and Wyden, would amend the Animal Welfare Act to require 
that breeders obtain a license from the USDA if they raise more than 50 
dogs in a 12-month period and sell directly to the public.
  These licenses are inexpensive and the application process is simple. 
But USDA licensing would allow the agency to ensure that large and mid-
level breeders comply with minimum Federal standards. The PUPS Act also 
requires all commercial breeders to give dogs in their care at least 
two daily exercise breaks, allowing the dogs to enjoy at least 60 
minutes outside of their crates or enclosures.
  The good news is that the public is growing more aware of the 
existence of puppy mills. Recent investigations of the deplorable 
conditions at several large puppy mills along with the interest shown 
by celebrities, including Chicago resident Oprah Winfrey, have brought 
new attention to the cause. As a result, many Americans seeking 
companion animals are doing their homework. They are choosing to adopt 
from local shelters or finding and visiting responsible breeders. It is 
my hope that extending and improving oversight of this industry through 
the PUPS Act will help Americans feel confident about the health and 
well-being of the dog that they welcome into their family.
  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. 3519

       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 ``Puppy Uniform Protection and 
     Safety Act''.

     SEC. 2. REGULATION OF HIGH-VOLUME SELLERS OF PUPPIES.

       (a) Retail Pet Store Defined.--Section 2 of the Animal 
     Welfare Act (7 U.S.C. 2132) is amended by adding at the end 
     the following new subsection:
       ``(p) The term `retail pet store' means a person that--
       ``(1) sells an animal directly to the public for use as a 
     pet; and
       ``(2) does not breed or raise more than 50 dogs for use as 
     pets during any one-year period.''.
       (b) Licenses.--Section 3 of the Animal Welfare Act (7 
     U.S.C. 2133) is amended in the second proviso--
       (1) by striking ``retail pet store or other person who'' 
     and inserting ``retail pet store, or other person who (1) 
     does not breed or raise more than 50 dogs for use as pets 
     during any one-year period, and (2)''; and
       (2) by striking ``research facility'' and inserting 
     ``research facility,''.
       (c) Humane Standards.--Section 13 of the Animal Welfare Act 
     (7 U.S.C. 2143) is amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively;
       (2) by redesignating the second subsection (f) as 
     subsection (g); and
       (3) by adding at the end the following new subsection:
       ``(j)(1) Subject to paragraph (2), a dealer shall provide 
     each dog held by such dealer that is of the age of 12 weeks 
     or older with a minimum of two exercise periods during each 
     day for a total of not less than one hour of exercise during 
     such day. Such exercise shall include removing the dog from 
     the dog's primary enclosure and allowing the dog to walk for 
     the entire exercise period, but shall not include use of a 
     treadmill, catmill, jenny mill, slat mill, or similar device, 
     unless prescribed by a doctor of veterinary medicine.
       ``(2) Paragraph (1) shall not apply to a dog certified by a 
     doctor of veterinary medicine, on a form designated by and 
     submitted to the Secretary, as being medically precluded from 
     exercise.''.

     SEC. 3. EFFECT ON STATE LAW.

       The amendments made by this Act shall not be construed to 
     preempt any law or regulation of a State or a political 
     subdivision of a State containing requirements that are 
     greater than the requirements of the amendments made by this 
     Act.
                                 ______
                                 
      By Ms. SNOWE:
  S. 3522. A bill to establish a Federal Board of Certification to 
enhance the transparency, credibility, and stability of financial 
markets, and for other purposes; to the Committee on Banking, Housing, 
and Urban Affairs.
  Ms. SNOWE. Mr. President, I rise today to offer legislation that will 
increase the trustworthiness of our Nation's mortgage security market 
by creating the Federal Board of Certification for mortgage securities.
  The recent collapse of Lehman Brothers, and the Federal Reserve's 
bailout of American International Group, Fannie Mae, Freddie Mac and 
Bear Stearns, along the huge losses suffered throughout the financial 
industry, demonstrates a catastrophic failure to accurately assess the 
dangers of imprudently made subprime mortgages to the American public 
and our financial markets. In hindsight, it appears that it was the 
inability to gauge risk in mortgage-backed securities that caused much 
of this financial turmoil. For markets to operate properly, it is 
imperative that they have effective metrics for calculating the level 
of risk securities pose to investors.
  The secondary mortgage market has been a largely unregulated 
playground where poorly underwritten, low-quality loans were sold as 
high-quality investment products. Although mortgage backed securities 
can be a positive market force, which increases the available pool of 
credit for borrowers, without an accurate picture of the risk involved 
in each mortgage security, buyers have no idea whether they are buying 
a high-risk investment or a safe, secure investment. My legislation 
would work to curb the excesses of the secondary market, combat future 
attempts at deception, and protect investors by making scrutinized 
mortgage investments more reliable and trust-worthy.
  The inability of major corporations to properly assess the risk of 
the mortgage securities they were trading is a problem whose effects 
have not been confined to Wall Street. To put it simply: when big banks 
sneeze, the rest of America gets a cold. By 2009, more than a trillion 
dollars of the subprime mortgages originated during the housing boom 
will reset to higher interest rates. Currently, according to the 
Mortgage Bankers Association, 43 percent of subprime adjustable rate 
mortgages are already in foreclosure. In my home State of Maine, we are 
struggling with falling home prices and a record number of 
foreclosures. Some Maine borrowers, with rising monthly payments, are 
unable to refinance out of their predatory loans. Small business 
owners, many already hurt by the economic downturn, are also finding 
credit tight. The bad economic climate caused by the subprime credit 
crunch is roiling the stock market causing Americans to loose billions 
in their IRAs and retirement funds.

  We need to fix this crisis before it gets any worse and make sure it 
never happens again. Francis Bacon said that ``knowledge is power.'' My 
bill would give investors the knowledge to make intelligent 
calculations of risk and as a result, it would give them the power to 
decide how much risk they could collectively handle.
   Turning to specifics, my bill creates the Federal Board of 
Certification, which would certify that the mortgages within a security 
instrument meet the underlying standards they claim in regards to 
documentation, loan to value ratios, debt service to income ratios, and 
borrowers' credit

[[Page S9033]]

standards. The purpose of the certification process is to increase the 
transparency, predictability, and reliability of securitized mortgage 
products. Certification would aid in creating settled investor 
expectations and increase transparency by ensuring that the mortgages 
within a mortgage security conform to the claims made by the mortgage 
product's sellers.
   The proposed Federal Board of Certification would not override any 
current regulations and would not, in any way, stifle any attempts by 
private business to rate mortgage securities. This legislation would, 
however, create incentives for improving industry rating practices. 
Open publication of the Board's certification criteria would augment 
the efforts of private ratings agencies by providing incentives for 
increased transparency in the ratings process. The Board's 
certification would also serve as a check on the industry to ensure 
that ratings agencies carefully scrutinize the content of mortgage 
products before issuing evaluations of mortgage backed securities.
  Significantly, the Federal Board of Certification would also be 
voluntary and funded by an excise tax. Users could choose to pay the 
costs for the Board to rate their security, or they could elect not to 
submit their product to the Board.
  We must quickly restore confidence in the U.S. mortgage securities if 
we are to stabilize our housing markets and enable families to 
refinance their expensive loans. To do this, we must certify the 
quality and content of our mortgage securities and enable those markets 
working again to create liquidity and lending. This is why it is urgent 
to create the Federal Board of Certification for mortgage securities. 
This legislation would create a ``good housekeeping seal of approval'' 
for the mortgage security industry and certify that the mortgage 
products are in fact what they claim to be. Accordingly, I call on 
Congress to take up and pass this common-sense amendment as 
expeditiously as possible.
  I encourage my colleagues to strongly support the creation of the 
Federal Board of Certification. This legislation will restore trust in 
U.S. financial markets and mortgage securities which will help American 
businesses and ultimately, most crucially, American families.
  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. 3522

       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 ``Federal Board of 
     Certification Act of 2008''.

     SEC. 2. PURPOSE.

       It is the purpose of this Act to establish a Federal Board 
     of Certification, which shall certify that the mortgages 
     within a security instrument meet the underlying standards 
     they claim to meet with regards to mortgage characteristics 
     including but not limited to: documentation, loan to value 
     ratios, debt service to income ratios, and borrower credit 
     standards and geographic concentration. The purpose of this 
     certification process is to increase the transparency, 
     predictability and reliability of securitized mortgage 
     products.

     SEC. 3. DEFINITIONS.

       As used in this Act--
       (1) the term ``Board'' means the Federal Board of 
     Certification established under this Act;
       (2) the term ``mortgage security'' means an investment 
     instrument that represents ownership of an undivided interest 
     in a group of mortgages;
       (3) the term ``insured depository institution'' has the 
     same meaning as in section 3 of the Federal Deposit Insurance 
     Act (12 U.S.C. 1803); and
       (4) the term ``Federal financial institutions regulatory 
     agency'' has the same meaning as in section 1003 of the 
     Federal Financial Institutions Examination Council Act of 
     1978 (12 U.S.C. 3302).

     SEC. 4. VOLUNTARY PARTICIPATION.

       Market participants, including firms that package mortgage 
     loans into mortgage securities, may elect to have their 
     mortgage securities evaluated by the Board.

     SEC. 5. STANDARDS.

       The Board is authorized to promulgate regulations 
     establishing enumerated security standards which the Board 
     shall use to certify mortgage securities. The Board shall 
     promulgate standards which shall certify that the mortgages 
     within a security instrument meet the underlying standards 
     they claim to meet with regards to documentation, loan to 
     value ratios, debt service to income rations and borrower 
     credit standards. The standards should protect settled 
     investor expectations, and increase the transparency, 
     predictability and reliability of securitized mortgage 
     products.

     SEC. 6. COMPOSITION.

       (a) Establishment; Composition.--There is established the 
     Federal Board of Certification, which shall consist of--
       (1) the Comptroller of the Currency;
       (2) the Secretary of Housing and Urban Development;
       (3) a Governor of the Board of Governors of the Federal 
     Reserve System designated by the Chairman of the Board;
       (4) the Undersecretary of the Treasury for Domestic 
     Finance; and
       (5) the Chairman of the Securities and Exchange Commission.
       (b) Chairperson.--The members of the Board shall select the 
     first chairperson of the Board. Thereafter the position of 
     chairperson shall rotate among the members of the Board.
       (c) Term of Office.--The term of each chairperson of the 
     Board shall be 2 years.
       (d) Designation of Officers and Employees.--The members of 
     the Board may, from time to time, designate other officers or 
     employees of their respective agencies to carry out their 
     duties on the Board.
       (e) Compensation and Expenses.--Each member of the Board 
     shall serve without additional compensation, but shall be 
     entitled to reasonable expenses incurred in carrying out 
     official duties as such a member.

     SEC. 7. EXPENSES.

       The costs and expenses of the Board, including the salaries 
     of its employees, shall be paid for by excise fees collected 
     from applicants for security certification from the Board, 
     according to fee scales set by the Board.

     SEC. 8. BOARD RESPONSIBILITIES.

       (a) Establishment of Principles and Standards.--The Board 
     shall establish, by rule, uniform principles and standards 
     and report forms for the regular examination of mortgage 
     securities.
       (b) Development of Uniform Reporting System.--The Board 
     shall develop uniform reporting systems for use by the Board 
     in ascertaining mortgage security risk. The Board shall 
     assess, and publicly publish, how it evaluates and certifies 
     the composition of mortgage securities.
       (c) Affect on Federal Regulatory Agency Research and 
     Development of New Financial Institutions Supervisory 
     Agencies.--Nothing in this Act shall be construed to limit or 
     discourage Federal regulatory agency research and development 
     of new financial institutions supervisory methods and tools, 
     nor to preclude the field testing of any innovation devised 
     by any Federal regulatory agency.
       (d) Annual Report.--Not later than April 1 of each year, 
     the Board shall prepare and submit to Congress an annual 
     report covering its activities during the preceding year.
       (e) Reporting Schedule.--The Board shall determine whether 
     it wants to evaluate mortgage securities at issuance, on a 
     regular basis, or upon request.

     SEC. 9. BOARD AUTHORITY.

       (a) Authority of Chairperson.--The chairperson of the Board 
     is authorized to carry out and to delegate the authority to 
     carry out the internal administration of the Board, including 
     the appointment and supervision of employees and the 
     distribution of business among members, employees, and 
     administrative units.
       (b) Use of Personnel, Services, and Facilities of Federal 
     Financial Institutions Regulatory Agencies, and Federal 
     Reserve Banks.--In addition to any other authority conferred 
     upon it by this Act, in carrying out its functions under this 
     Act, the Board may utilize, with their consent and to the 
     extent practical, the personnel, services, and facilities of 
     the Federal financial institutions regulatory agencies, and 
     Federal Reserve banks, with or without reimbursement 
     therefor.
       (c) Compensation, Authority, and Duties of Officers and 
     Employees; Experts and Consultants.--The Board may--
       (1) subject to the provisions of title 5, United States 
     Code, relating to the competitive service, classification, 
     and General Schedule pay rates, appoint and fix the 
     compensation of such officers and employees as are necessary 
     to carry out the provisions of this Act, and to prescribe the 
     authority and duties of such officers and employees; and
       (2) obtain the services of such experts and consultants as 
     are necessary to carry out this Act.

     SEC. 10. BOARD ACCESS TO INFORMATION.

       For the purpose of carrying out this Act, the Board shall 
     have access to all books, accounts, records, reports, files, 
     memorandums, papers, things, and property belonging to or in 
     use by Federal financial institutions regulatory agencies, 
     including reports of examination of financial institutions, 
     their holding companies, or mortgage lending entities from 
     whatever source, together with work papers and correspondence 
     files related to such reports, whether or not a part of the 
     report, and all without any deletions.

     SEC. 11. REGULATORY REVIEW.

       (a) In General.--Not less frequently than once every 10 
     years, the Board shall conduct a review of all regulations 
     prescribed by the Board, in order to identify outdated or 
     otherwise unnecessary regulatory requirements imposed on 
     insured depository institutions.

[[Page S9034]]

       (b) Process.--In conducting the review under subsection 
     (a), the Board shall--
       (1) categorize the regulations described in subsection (a) 
     by type; and
       (2) at regular intervals, provide notice and solicit public 
     comment on a particular category or categories of 
     regulations, requesting commentators to identify areas of the 
     regulations that are outdated, unnecessary, or unduly 
     burdensome.
       (c) Complete Review.--The Board shall ensure that the 
     notice and comment period described in subsection (b)(2) is 
     conducted with respect to all regulations described in 
     subsection (a), not less frequently than once every 10 years.
       (d) Regulatory Response.--The Board shall--
       (1) publish in the Federal Register a summary of the 
     comments received under this section, identifying significant 
     issues raised and providing comment on such issues; and
       (2) eliminate unnecessary regulations to the extent that 
     such action is appropriate.
       (e) Report to Congress.--Not later than 30 days after 
     carrying out subsection (d)(1) of this section, the Board 
     shall submit to the Congress a report, which shall include a 
     summary of any significant issues raised by public comments 
     received by the Board under this section and the relative 
     merits of such issues.

     SEC. 12. LIABILITY.

       Any publication, transmission, or webpage containing an 
     advertisement for or invitation to buy a mortgage security 
     shall include the following notice, in conspicuous type: 
     ``Certification by the Federal Board of Certification can in 
     no way be considered a guarantee of the mortgage security. 
     Certification is merely a judgment by the Federal Board of 
     Certification of the degree of risk offered by the security 
     in question. The Federal Board of Certification is not liable 
     for any actions taken in reliance on such judgment of 
     risk.''.
                                 ______
                                 
      By Mr. ENZI:
  S. 3523. A bill to provide 8 steps for energy sufficiency, and for 
other purposes; to the Committee on Finance.
  Mr. ENZI. Mr. President, when I was home over the August recess, I 
traveled over 6,000 miles across Wyoming. I visited dozens of different 
cities in my home State, all of which have a variety of concerns and 
needs. I found, however, one common theme throughout every town and in 
every meeting I took. That theme was the need to do something about the 
high cost of energy.
  High energy prices are hurting everyone, but they are especially 
impacting the people of Wyoming. People in Wyoming are often forced to 
commute long distances to get to work. Some have to drive miles for 
groceries and general services that are common in larger cities. We 
need to do something to make America energy sufficient and today I am 
introducing my plan to make that happen.
  My bill is titled Eight Steps to Energy Sufficiency, and it follows a 
similar model I have used before. It breaks down the deficiencies in 
our Nation's energy policy into eight separate areas and provides a 
solution for those eight areas. It is a comprehensive approach, but it 
is broken down in a way that any one of the steps can be passed on its 
own merits.
  First step--use less energy. The problem that we are facing today is 
a supply and demand issue. We have too much demand for energy and not 
enough energy supply. My bill takes the approach that we can use less 
by aiding in the development of technology that will make vehicles more 
efficient.
  Second step--find more American energy. Traditional energy sources 
make up 85 percent of our energy portfolio today, and there is no way 
we can transition to renewable energy over night. Because that is the 
case, we should be focusing our efforts on developing as much American 
energy as we can so that we can stop sending money to countries that 
are not necessarily friendly to the U.S. My bill does this by opening 
up the Outer Continental Shelf to energy development and ending the 
senseless ban on oil shale development. These two actions will go a 
long way toward making America more energy sufficient.
  Third step--speed up the process. We can't get refineries built in 
the U.S., even though we need them and so my bill includes a provision 
to help streamline the permitting process for refineries. In addition 
to that, it takes a look at the NEPA process in an effort to see how we 
can limit senseless litigation that is slowing the production of energy 
on already leased lands.
  Fourth step--innovation. I am a huge believer in American ingenuity. 
Every year, I hold an inventor's conference because I believe our 
community of inventors will be key in solving our energy crisis. My 
bill recognizes this and helps move forward the development of hydrogen 
technologies. It also studies cellulosic ethanol to determine if we are 
doing all that we can to help move non-corn based ethanol forward.

  The fifth step of my plan deals with incentives. We need to 
incentivize the production of energy and we need to let people know 
that the Federal Government is in it for the long haul by providing 
incentives that last for more than a year. My plan would reauthorize 
the wind production tax credit for 5 years and it would renew the solar 
production tax credit for 8 years. It would repeal the Federal 
Government's theft of States' fair share of mineral royalties so that 
States would be encouraged to allow for production on their lands. It 
is important that we help people who are doing their part, and making 
these important credits available is one way to do just that.
  The sixth step of my plan to strengthen America's energy supply deals 
with our nation's most abundant energy source: coal. Wyoming is the 
Nation's largest coal producer, and any realistic effort to make 
America's energy supply more robust has to recognize that coal will 
play a major role in making that happen. My bill provides funding for 
research and development to help develop and deploy carbon capture and 
sequestration technologies. It promotes using coal to make diesel fuel 
and allows the Air Force to enter into long term fuels contracts so 
that our military has a secure source of jet fuel.
  Nuclear energy must also play a role in making America energy 
sufficient, and the seventh step of my plan encourages the development 
of nuclear energy. The bill recognizes the important role Yucca 
Mountain could play, and it offers up tax credits to help build new 
nuclear reactors. Wyoming is the Nation's largest producer of uranium, 
and because nuclear is a clean and efficient energy source, we should 
be doing all that we can to move it forward.
  Finally, the eighth step in my plan involves opening up a small area 
of Alaska's coastal plain to energy production. By opening up a portion 
of the Arctic National Wildlife Refuge that is roughly the size of the 
Natrona County International Airport in Casper, Wyoming, we can produce 
about a million barrels of American oil each day. The Energy 
Information Administration recently sent a letter suggesting that the 
addition of 1 million barrels of oil a day to the market could drop the 
price as much as $20 dollars per barrel, and we should act on this 
matter expeditiously.
  My bill is an eight step plan. I broke down my ideas for energy 
sufficiency into eight separate steps with the hope that each piece can 
be passed by Congress as stand-alone legislation. In Washington, bills 
that are smaller and more specific are much easier to pass than huge 
pieces of ``comprehensive'' legislation because those big bills can 
often gain opposition very quickly, and before you know it they will 
not pass. Whenever we try to push through big energy packages, nearly 
every Senator objects to some aspect of it, and that means we are not 
able get enough people in support of the bill to pass it. By breaking 
down my plan into sections, we have eight sensible solutions for 
Congress to consider, and if enacted, any one of them would ease the 
burden of high prices faced by consumers.
  I hope my colleagues will take a look at my package and will work 
with me to move forward with this important legislation. All summer, I 
heard about the importance of moving forward with energy legislation, 
and I believe my approach is the best way to make America energy 
sufficient.
                                 ______
                                 
      By Mr. REID (for Mr. Biden):
  S. 3524. A bill to improve the Office for State and Local Law 
Enforcement, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. BIDEN. Mr. President, since September 11, 2001, our Nation has 
taken significant steps to improve our national security. However, to 
improve our ability to prevent and respond to a future terrorist attack 
we need to fundamentally change the working relationship between our 
Federal, State, local, and tribal law enforcement agencies. The 
Homeland Security and Law

[[Page S9035]]

Enforcement Improvements Act of 2008 will do this by making State, 
local, and tribal law enforcement agencies full partners with Federal 
agencies in homeland security policymaking and by ensuring that these 
agencies have the resources they need to prevent and respond to 
terrorist attacks or other major incidents.
  As chairman of the Judiciary Subcommittee on Crime and Drugs, I 
regularly talk to police chiefs and sheriffs throughout this country. 
These men and women are on the front lines of protecting our 
communities from a host of dangers in these difficult times. They know 
where our vulnerabilities are and what it will take to keep our 
families and neighborhoods safe, but, to put it simply, we haven't been 
listening. Policymakers haven't been listening to the people on the 
ground, leaving a critical gap in homeland security prevention, 
preparation, and incident response capabilities.
  The Homeland Security and Law Enforcement Improvements Act of 2008 
makes a number of important improvements to this situation that I 
believe will strengthen our ability to prevent and, if necessary, 
effectively respond to a major terrorist incident.
  First, the act will ensure that state and local law enforcement 
agencies are full partners in both crime fighting and homeland security 
by giving the Assistant Secretary for State and Local Law Enforcement 
the appropriate budget and program management authority.
  Second, the act will ensure that state and local law enforcement 
agencies have the resources needed to prevent and respond to terrorist 
acts by fully funding the Law Enforcement Terrorism Prevention Program, 
LETP, as a separate initiative. The LETPP is the only funding resource 
in the Department of Homeland Security dedicated solely to meeting the 
unique needs of law enforcement as they try to protect our communities 
from terrorism.
  Third, the act ensures that first responders in local law enforcement 
have the resources they need to effectively react to a terrorist 
incident by establishing the Commercial Equipment Direct Assistance 
Program, CEDAP, as an authorized program. The CEDAP provides funding 
that allows law enforcement first responders to identify and select 
specialized equipment and technology that can help them protect the 
communities they serve.
  Fourth, the act will ensure that we have a swift and coordinated 
response in the event of a major incident by establishing Law 
Enforcement Deployment Teams that can react immediately to major 
incidents throughout the country.
  Fifth, the act will create an Information Sharing Resource Center to 
facilitate information sharing between Federal, State, local, and 
tribal law enforcement agencies, intelligence officials, and Federal 
agencies so that every stakeholder has the information necessary to 
protect our country from terrorist attacks.
  Finally, the Act strengthens our ability to prevent and disrupt plans 
for attacks against America hatched overseas by establishing a Foreign 
Liaison Officers Against Terrorism, FLOAT, program. FLOAT will allow 
American state and local law enforcement officers to serve outside the 
U.S. as liaison officers--working closely with their foreign law 
enforcement counterparts to share information and gain a better 
understanding of how terrorists work abroad.
  Each of these initiatives: the LETPP, CEDAP, the Law Enforcement 
Deployment Teams, the Information Sharing Resource Center, and FLOAT 
will be under the direction and control of the Assistant Secretary, who 
will report directly to the Secretary of the Department of Homeland 
Security.
  I am honored to introduce this legislation with the support of the 
U.S. Conference of Mayors, the National Association of Police 
Organizations, the National Sheriffs Association and other law 
enforcement groups throughout this country who toil daily to keep us 
safe from crime and terrorism.
  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. 3524

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Homeland Security and Law 
     Enforcement Improvements Act of 2008''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``Department'' means the Department of 
     Homeland Security; and
       (2) the term ``Secretary'' means the Secretary of Homeland 
     Security.

     SEC. 3. OFFICE FOR STATE AND LOCAL LAW ENFORCEMENT.

       Section 2006 of the Homeland Security Act of 2002 (6 U.S.C. 
     607) is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Office for State and Local Law Enforcement.--
       ``(1) Establishment.--There is established in the Office of 
     the Secretary an Office for State and Local Law Enforcement, 
     which shall be headed by an Assistant Secretary for State and 
     Local Law Enforcement.
       ``(2) Qualifications.--The Assistant Secretary for State 
     and Local Law Enforcement shall have an appropriate 
     background with experience in law enforcement, intelligence, 
     and other antiterrorist functions.
       ``(3) Assignment of personnel.--The Secretary may assign to 
     the Office for State and Local Law Enforcement permanent 
     staff and other appropriate personnel detailed from other 
     components of the Department to carry out the 
     responsibilities under this subsection.
       ``(4) Responsibilities.--The Assistant Secretary for State 
     and Local Law Enforcement shall--
       ``(A) lead the coordination of Department-wide policies 
     relating to the role of State and local law enforcement in 
     preventing, preparing for, protecting against, and responding 
     to natural disasters, acts of terrorism, and other man-made 
     disasters within the United States;
       ``(B) serve as a liaison between State, local, and tribal 
     law enforcement agencies and the Department;
       ``(C) work with the Office of Intelligence and Analysis to 
     ensure the intelligence and information sharing requirements 
     of State, local, and tribal law enforcement agencies are 
     being addressed;
       ``(D) work with the Administrator to ensure that homeland 
     security grants to State, local, and tribal government 
     agencies, including grants under sections 2003 and 2004 and 
     subsection (a) of this section, the Commercial Equipment 
     Direct Assistance Program, and grants to support fusion 
     centers and other law enforcement-oriented programs, are 
     adequately focused on terrorism prevention activities;
       ``(E) coordinate, in cooperation with the Federal Emergency 
     Management Agency and the Office of Intelligence and 
     Analysis, information sharing and fusion center training, 
     technical assistance, and other information sharing 
     activities to ensure needs of State, local, and tribal law 
     enforcement agencies and fusion centers are being met, 
     including the development of a Law Enforcement Information 
     Sharing Resource Center under paragraph (6);
       ``(F) carry out, in coordination with the Administrator, 
     the National Law Enforcement Deployment Team Program 
     established under paragraph (5); and
       ``(G) coordinate with the Federal Emergency Management 
     Agency, the Department of Justice, the National Institute of 
     Justice, law enforcement organizations, and other appropriate 
     entities to support the development, promulgation, and 
     updating, as necessary, of national voluntary consensus 
     standards for training and personal protective equipment to 
     be used in a tactical environment by law enforcement 
     officers.
       ``(5) National law enforcement deployment team program.--
       ``(A) Establishment.--The Assistant Secretary for State and 
     Local Law Enforcement shall establish a National Law 
     Enforcement Deployment Team Program to develop and implement 
     a series of Law Enforcement Deployment Teams comprised of 
     State and local law enforcement personnel capable of 
     providing immediate support in response to the threat or 
     occurrence of a natural or man-made incident.
       ``(B) Activities.--In carrying out the National Law 
     Enforcement Deployment Team Program, the Assistant Secretary 
     for State and Local Law Enforcement shall--
       ``(i) consult with State and local law enforcement and 
     public safety agencies and other relevant stakeholders as to 
     the capabilities required by a Law Enforcement Deployment 
     Team;
       ``(ii) develop and implement a model Law Enforcement 
     Deployment Team located in a region of the Federal Emergency 
     Management Agency selected by the Assistant Secretary;
       ``(iii) exercise and train the Law Enforcement Deployment 
     Teams;
       ``(iv) create model policies and procedures, templates, and 
     general policies and procedures and document best practices 
     that can be applied to the development of Law Enforcement 
     Deployment Teams in each region of the Federal Emergency 
     Management Agency;
       ``(v) develop an implementation strategy to support the 
     development, overall management, equipment, infrastructure, 
     and training needs of a National Law Enforcement Deployment 
     Team Program, including the development of a technical 
     assistance and training program; and

[[Page S9036]]

       ``(vi) not later than 6 months after the date of enactment 
     of the Homeland Security and Law Enforcement Improvements Act 
     of 2008, and before implementation of the National Law 
     Enforcement Deployment Team Program in any region of the 
     Federal Emergency Management Agency other than the region 
     selected under clause (ii), submit to the Committee on 
     Homeland Security and Government Affairs and the Committee on 
     the Judiciary of the Senate and the Committee on Homeland 
     Security and the Committee on the Judiciary of the House of 
     Representatives a report on the National Law Enforcement 
     Deployment Team Program, which shall include the 
     implementation strategy described in clause (v).
       ``(C) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph--
       ``(i) $5,000,000 for each of fiscal years 2009 and 2010; 
     and
       ``(ii) such sums as are necessary for each of fiscal years 
     2011 through 2015.
       ``(6) Law enforcement information sharing resource 
     center.--
       ``(A) Establishment.--There is established within the 
     Office for State and Local Law Enforcement, the Law 
     Enforcement Information Sharing Resource Center to provide 
     technical assistance relating to information sharing and 
     intelligence with and between State, local, and tribal law 
     enforcement agencies and Federal agencies.
       ``(B) Activities.--In carrying out the Law Enforcement 
     Information Sharing Resource Center, the Assistant Secretary 
     for State and Local Law Enforcement shall--
       ``(i) develop a single repository within the Department to 
     house all relevant guidance, templates, examples, best 
     practices, data sets, analysis tools, and other fusion center 
     and information sharing related items;
       ``(ii) consult with State and local law enforcement 
     agencies in the development of the Law Enforcement 
     Information Sharing Resource Center;
       ``(iii) consolidate access to Department resources within 
     the Law Enforcement Information Sharing Resource Center;
       ``(iv) provide technical assistance to law enforcement and 
     public safety agencies; and
       ``(v) coordinate, in coordination with the Federal 
     Emergency Management Agency and the Office of Intelligence 
     and Analysis, intelligence, information sharing, and fusion 
     center related training, technical assistance, exercise, and 
     other services provided to State and local law enforcement 
     and other agencies developing or operating fusion centers and 
     intelligence units.
       ``(C) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph--
       ``(i) $3,000,000 for fiscal year 2009;
       ``(ii) $3,500,000 for fiscal year 2010; and
       ``(iii) such sums as are necessary for each of fiscal years 
     2011 through 2015.
       ``(7) Foreign liaison officers against terrorism 
     programs.--
       ``(A) Establishment.--There is established within the 
     Office of State and Local Law Enforcement, the Foreign 
     Liaison Officers Against Terrorism Program.
       ``(B) Duties.--In carrying out the Foreign Liaison Officers 
     Against Terrorism Program the Assistant Secretary for State 
     and Local Law Enforcement shall--
       ``(i) identify foreign cities the government of which 
     desires a State, local, or tribal law enforcement agency to 
     assign an officer to the foreign city, to share information 
     with law enforcement agencies of State, local, and tribal 
     governments; and
       ``(ii) assign each foreign city identified under clause (i) 
     to a law enforcement agency participating in the Foreign 
     Liaison Officers Against Terrorism Program, to--

       ``(I) obtain information relevant to law enforcement 
     agencies of State, local, and tribal governments from each 
     such city for information sharing purposes; and
       ``(II) share information obtained under subclause (I) with 
     other law enforcement agencies participating in the Foreign 
     Liaison Officers Against Terrorism Program.

       ``(C) Use of grant funds.--A grant awarded under section 
     2003 may be used for the costs of participation in the 
     Foreign Liaison Officers Against Terrorism Program 
     established under subparagraph (A).''.

     SEC. 4. LAW ENFORCEMENT TERRORISM PREVENTION PROGRAM.

       (a) In General.--Section 2006(a) of the Homeland Security 
     Act of 2002 (6 U.S.C. 607(a)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--
       ``(A) Grants.--The Assistant Secretary for State and Local 
     Law Enforcement may make grants to States and local 
     governments for law enforcement terrorism prevention 
     activities.
       ``(B) Program.--The Secretary shall maintain the grant 
     program under this subsection as a separate program of the 
     Department.''; and
       (2) by adding at the end the following:
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $500,000,000 
     for each of fiscal years 2009 through 2015, of which not less 
     than 10 percent may be used by the Assistant Secretary for 
     discretionary grants for national best practices and programs 
     of proven effectiveness, including for--
       ``(A) national, regional and multi-jurisdictional projects;
       ``(B) development of model programs for replication;
       ``(C) guidelines and standards for preventing terrorism;
       ``(D) national demonstration projects that employ 
     innovative or promising approaches; and
       ``(E) evaluation of programs to ensure the effectiveness of 
     the programs.''.
       (b) Reporting.--The Assistant Secretary for State and Local 
     Law Enforcement of the Department shall submit to Congress 
     and make publicly available an annual report detailing the 
     goals and recommendations for the Nation's terrorism 
     prevention strategy.

     SEC. 5. COMMERCIAL EQUIPMENT DIRECT ASSISTANCE PROGRAM.

       (a) In General.--Title XX of the Homeland Security Act of 
     2002 (6 U.S.C. 601 et seq.) is amended by adding at the end 
     the following:

                     ``Subtitle C--Other Assistance

     ``SEC. 2041. COMMERCIAL EQUIPMENT DIRECT ASSISTANCE PROGRAM.

       ``(a) Establishment.--There is established within the 
     Office of State and Local Law Enforcement, the Commercial 
     Equipment Direct Assistance Program (in this section referred 
     to as the `program') to make counterterrorism technology, 
     equipment, and information available to local law enforcement 
     agencies.
       ``(b) Activities.--In carrying out the program, the 
     Assistant Secretary for State and Local Law Enforcement 
     shall--
       ``(1) publish a comprehensive list of available 
     technologies, equipment, and information available under the 
     program;
       ``(2) consult with local law enforcement agencies and other 
     appropriate individuals and entities, as determined by the 
     Assistant Secretary for State and Local Law Enforcement;
       ``(3) accept applications from the heads of State and local 
     law enforcement agencies that wish to acquire technologies, 
     equipment, or information under the program to improve the 
     homeland security capabilities of those agencies; and
       ``(4) transfer the approved technology, equipment, or 
     information and provide the appropriate training to the State 
     or local law enforcement agency to implement such technology, 
     equipment, or information.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $75,000,000 for each of fiscal years 2009 and 2010; 
     and
       ``(2) such sums as are necessary for each of fiscal years 
     2011 through 2015.''.
                                 ______
                                 
      By Mr. CARDlN (for himself and Ms. Mikulski):
  S. 3525. A bill to require the Secretary of the Treasury to mint 
coins in commemoration of the bicentennial of the writing of the 
``Star-Spangled Banner'', and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. CARDIN. Mr. President, I rise today to introduce the Star-
Spangled Banner Bicentennial Commemorative Coin Act. I am pleased that 
my colleague, the senior Senator from Maryland, is a cosponsor. This 
legislation will honor our National Anthem and the Battle for 
Baltimore, which was a key turning point of the War of 1812, by 
creating a commemorative U.S. Mint coin.
  The War of 1812 confirmed American independence from Great Britain in 
the eyes of the world. Before the war, the British has been routinely 
imposing on American sovereignty. They had impressed American merchant 
seamen into the British Royal Navy, enforced illegal and unfair trade 
rules with the United States, and allegedly offered assistance to 
American Indian tribes which were attaching frontier settlements. In 
response,, the United States declared war on Great Britain on June 18, 
1812, to protest these violations of ``free trade and sailors rights,'' 
as well as the violations on land.
  After 2\1/2\ years of conflict, the British Royal Navy sailed up the 
Chesapeake Bay with combined military and naval forces, and in August 
1814 attacked Washington, DC, burning to the ground the U.S. Capitol, 
the White House, and much of the rest of the capital city. However, the 
American defenders stopped the British as they attempted to capture 
Baltimore and New Orleans.
  As the British Royal Navy sailed up the Patapsco River on its way to 
Baltimore, American forces held the British fleet at Fort McHenry, 
located just outside of the city. After 25 hours of bombardment, the 
British failed to take the Fort and were forced to depart. American 
lawyer Francis Scott Key, who was being held on board an American flag-
of-truce vessel, beheld by the dawn's early light an American flag 
still flying atop Fort McHenry. He immortalized the event in a song 
which later became known as ``The Star-Spangled Banner.''
  The flag to which Key referred was a 30' x 42' foot flag made 
specifically for Fort McHenry. The commanding officer desired a flag so 
large that the

[[Page S9037]]

British would have no trouble seeing it from a distance. This proved to 
be the case as Key visited the British fleet on September 7, 1814, to 
secure the release of Dr. William Beanes, Dr. Beanes was released, but 
Key and Beanes were detained on an American Flag-of-truce vessel until 
the end of the bombardment. It was on September 14, 1814, by the dawn's 
early light, that Key saw the great banner that inspired him to write 
the song that ultimately became our National Anthem.
  The Star-Spangled Banner Bicentennial Commemorative Coin will honor 
this symbol of our Nation and our National Anthem. The coin will be 
minted in 2012 in coordination with the 200th Anniversary of the War of 
1812. I hope my colleagues will join me in supporting this measure in 
this fitting tribute to a seminal event in American history.
  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. 3525

       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 ``Star-Spangled Banner 
     Bicentennial Commemorative Coin Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) During the War of 1812, on September 7, 1814, Francis 
     Scott Key visited the British fleet in the Chesapeake Bay to 
     secure the release of Dr. William Beanes, who had been 
     captured after the burning of Washington, DC.
       (2) The release was completed, but Key was held by the 
     British during the shelling of Fort McHenry, one of the forts 
     defending Baltimore.
       (3) On the morning of September 14, 1814, Key peered 
     through clearing smoke to see an enormous American flag 
     flying proudly after a 25-hour British bombardment of Fort 
     McHenry.
       (4) He was so delighted to see the flag still flying over 
     the fort that he began a song to commemorate the occasion, 
     with a note that it should be sung to the popular British 
     melody ``To Anacreon in Heaven''.
       (5) In 1916, President Woodrow Wilson ordered that it be 
     played at military and naval occasions.
       (6) In 1931, the ``Star-Spangled Banner'' became our 
     National Anthem.

     SEC. 3. COIN SPECIFICATIONS.

       (a) $1 Silver Coins.--The Secretary of the Treasury 
     (hereafter in this Act referred to as the ``Secretary'') 
     shall mint and issue not more than 350,000 $1 coins in 
     commemoration of the bicentennial of the writing of the Star-
     Spangled Banner, each of which shall--
       (1) weigh 26.73 grams;
       (2) have a diameter of 1.500 inches; and
       (3) contain 90 percent silver and 10 percent copper.
       (b) Legal Tender.--The coins minted under this Act shall be 
     legal tender, as provided in section 5103 of title 31, United 
     States Code.
       (c) Numismatic Items.--For purposes of sections 5134 and 
     5136 of title 31, United States Code, all coins minted under 
     this Act shall be considered to be numismatic items.

     SEC. 4. DESIGN OF COINS.

       (a) Design Requirements.--
       (1) In general.--The design of the coins minted under this 
     Act shall be emblematic of the battle for Baltimore that 
     formed the basis for the ``Star-Spangled Banner''.
       (2) Designation and inscriptions.--On each coin minted 
     under this Act, there shall be--
       (A) a designation of the value of the coin;
       (B) an inscription of the year ``2012''; and
       (C) inscriptions of the words ``Liberty'', ``In God We 
     Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (b) Selection.--The design for the coins minted under this 
     Act shall be--
       (1) selected by the Secretary, after consultation with the 
     Maryland War of 1812 Bicentennial Commission and the 
     Commission of Fine Arts; and
       (2) reviewed by the Citizens Coinage Advisory Committee.

     SEC. 5. ISSUANCE OF COINS.

       (a) Quality of Coins.--Coins minted under this Act shall be 
     issued in uncirculated and proof qualities.
       (b) Mint Facility.--Only one facility of the United States 
     Mint may be used to strike any particular quality of the 
     coins minted under this Act.
       (c) Period for Issuance.--The Secretary may issue coins 
     under this Act only during the calendar year beginning on 
     January 1, 2012.

     SEC. 6. SALE OF COINS.

       (a) Sale Price.--The coins issued under this Act shall be 
     sold by the Secretary at a price equal to the sum of--
       (1) the face value of the coins;
       (2) the surcharge provided in section 7 with respect to 
     such coins; and
       (3) the cost of designing and issuing the coins (including 
     labor, materials, dies, use of machinery, overhead expenses, 
     marketing, and shipping).
       (b) Bulk Sales.--The Secretary shall make bulk sales of the 
     coins issued under this Act at a reasonable discount.
       (c) Prepaid Orders.--
       (1) In general.--The Secretary shall accept prepaid orders 
     for the coins minted under this Act before the issuance of 
     such coins.
       (2) Discount.--Sale prices with respect to prepaid orders 
     under paragraph (1) shall be at a reasonable discount.

     SEC. 7. SURCHARGES.

       (a) In General.--All sales of coins issued under this Act 
     shall include a surcharge of $10 per coin.
       (b) Distribution.--Subject to section 5134(f) of title 31, 
     United States Code, all surcharges received by the Secretary 
     from the sale of coins issued under this Act shall be paid to 
     the Maryland War of 1812 Bicentennial Commission for the 
     purpose of supporting bicentennial activities, educational 
     outreach activities (including supporting scholarly research 
     and the development of exhibits), and preservation and 
     improvement activities pertaining to the sites and structures 
     relating to the War of 1812.
       (c) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the Maryland War of 1812 
     Bicentennial Commission as may be related to the expenditures 
     of amounts paid under subsection (b).
       (d) Limitation.--Notwithstanding subsection (a), no 
     surcharge may be included with respect to the issuance under 
     this Act of any coin during a calendar year if, as of the 
     time of such issuance, the issuance of such coin would result 
     in the number of commemorative coin programs issued during 
     such year to exceed the annual 2 commemorative coin program 
     issuance limitation under section 5112(m)(1) of title 31, 
     United States Code (as in effect on the date of the enactment 
     of this Act). The Secretary of the Treasury may issue 
     guidance to carry out this subsection.
                                 ______
                                 
      By Mr. AKAKA (for himself, Ms. Snowe, Mr. Feingold, Ms. Landrieu, 
        Mr. Johnson, Ms. Murkowski, Mr. Thune, Mr. Stevens and Mr. 
        Rockefeller):
  S. 3527. A bill to amend title 38, United States Code, to authorize 
advance appropriations for certain medical care accounts of the 
Department of Veterans Affairs by providing two-fiscal year budget 
authority; to the Committee on Veterans' Affairs.
  Mr. AKAKA. Mr. President, today I am introducing legislation that 
would secure more timely health care funding for the millions of 
veterans who rely on the Veterans Health Administration for their 
health care.
  I am pleased to be joined by Senators Snowe, Feingold, Landrieu, 
Johnson, Murkowski, Stevens, and Thune in introducing this important 
bill.
  Not all Americans realize that VA's health care system is the largest 
in the Nation.
  They do know, to be sure, that many veterans are injured while 
serving our country and, unfortunately, some of these injuries require 
a lifetime of care. Millions of veterans rely on VA for health care 
every year, and every year that number grows.
  Few Americans realize that the VA health care system must rely on an 
annual appropriation. While Congress has provided much-needed funding 
increases to veterans' health care in recent years, VA health care 
funding can be untimely and unpredictable, making it difficult for VA 
to manage its overall health care program effectively.
  A survey recently commissioned by the Disabled American Veterans 
found that 83 percent of respondents favor requiring Congress to 
determine the budget for veterans' health care a year in advance. This 
bill would do just that.
  During my time on the Veterans' Affairs Committee, I have heard 
former Secretaries of Veterans Affairs state plainly that the current 
process is no way to fund the Nation's largest health care system. We 
need to provide a more secure and predictable funding system for 
veterans health care. Our legislation will do exactly that.
  This legislation would require that veterans' health care be funded 
through the advance appropriations process. Under that process, 
programs are funded 2 years in advance, rather than a year at a time.
  Unlike the funding provided to Medicare and Medicaid, veterans' 
health care would not be funded as an entitlement--Congress would still 
be able to review and manage the funding, as necessary. But with 
advance appropriations, VA would be able to plan more efficiently, and 
better use taxpayer-dollars to care for veterans.

[[Page S9038]]

  Uncertain and untimely funding can limit VA health care's 
effectiveness, while they strive to meet the needs of veterans on a 
daily basis, as costs grow rapidly.
  What I am proposing today is not new. Congress already uses advance 
appropriations for programs that require funding in a timely manner, 
such as HUD Section 8 housing vouchers and the Low Income Heating 
Energy Assistance Program.
  To this extent, I submit that veterans' health care is just as 
deserving of secured and predictable funding.
  To increase transparency in this process, the bill I am introducing 
would require an annual GAO audit and public report to Congress on VA's 
funding forecasts.
  This process of continuous open review of VA appropriations would 
help VA funds go even further for veterans and taxpayers.
  Advance funding for veterans' health care has the strong support of 
the Partnership for Veterans Health Care Budget Reform, a coalition 
which includes the following veteran service organizations: AMVETS, 
Blinded Veterans Association, Disabled American Veterans, Jewish War 
Veterans, Military Order of the Purple Heart, Paralyzed Veterans of 
America, The American Legion, Veterans of Foreign Wars, and Vietnam 
Veterans of America.
  My friend and counterpart in the House of Representatives, House 
Veterans' Affairs Committee Chairman Robert Filner, is introducing a 
companion bill for advance funding as well.
  We are united in our determination to set down a marker for future 
action on veterans' health care through this bill, and place advance 
appropriations for veterans' health care on the National agenda.
  I urge all of our colleagues to join as supporters of more secure, 
timely funding for veterans' health care.
  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. 3527

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Veterans Health Care Budget 
     Reform Act of 2008''.

     SEC. 2. TWO-FISCAL YEAR BUDGET AUTHORITY FOR CERTAIN MEDICAL 
                   CARE ACCOUNTS OF THE DEPARTMENT OF VETERANS 
                   AFFAIRS.

       (a) Two-Fiscal Year Budget Authority.--
       (1) In general.--Chapter 1 of title 38, United States Code, 
     is amended by inserting after section 113 the following new 
     section:

     ``Sec. 113A. Two-fiscal year budget authority for certain 
       medical care accounts

       ``(a) In General.--Beginning with fiscal year 2010, new 
     discretionary budget authority provided in an appropriations 
     Act for the appropriations accounts of the Department 
     specified in subsection (b) shall be made available for the 
     fiscal year involved and shall include new discretionary 
     budget authority first available after the end of such fiscal 
     year for the subsequent fiscal year.
       ``(b) Medical Care Accounts.--The medical care accounts of 
     the Department specified in this subsection are the medical 
     care accounts of the Veterans Health Administration as 
     follows:
       ``(1) Medical Services.
       ``(2) Medical Administration.
       ``(3) Medical Facilities.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 1 of such title is amended by inserting 
     after the item relating to section 113 the following new 
     item:

``113A. Two-fiscal year budget authority for certain medical care 
              accounts.''.

     SEC. 3. COMPTROLLER GENERAL OF THE UNITED STATES STUDY ON 
                   ADEQUACY AND ACCURACY OF BASELINE MODEL 
                   PROJECTIONS OF THE DEPARTMENT OF VETERANS 
                   AFFAIRS FOR HEALTH CARE EXPENDITURES.

       (a) Study of Adequacy and Accuracy of Baseline Model 
     Projections.--The Comptroller General of the United States 
     shall conduct a study of the adequacy and accuracy of the 
     budget projections made by the Enrollee Health Care 
     Projection Model, or its equivalent, as utilized for the 
     purpose of estimating and projecting health care expenditures 
     of the Department of Veterans Affairs (in this section 
     referred to as the ``Model'') with respect to the fiscal year 
     involved and the subsequent four fiscal years.
       (b) Reports.--
       (1) In general.--Not later than the date of each year in 
     2010, 2011, and 2012, on which the President submits the 
     budget request for the next fiscal year under section 1105 of 
     title 31, United States Code, the Comptroller General shall 
     submit to the appropriate committees of Congress and to the 
     Secretary a report.
       (2) Elements.--Each report under this paragraph shall 
     include, for the fiscal year beginning in the year in which 
     such report is submitted, the following:
       (A) A statement whether the amount requested in the budget 
     of the President for expenditures of the Department for 
     health care in such fiscal year is consistent with 
     anticipated expenditures of the Department for health care in 
     such fiscal year as determined utilizing the Model.
       (B) The basis for such statement.
       (C) Such additional information as the Comptroller General 
     determines appropriate.
       (3) Availability to the public.--Each report submitted 
     under this subsection shall also be made available to the 
     public.
       (4) Appropriate committees of congress defined.--In this 
     subsection, the term ``appropriate committees of Congress'' 
     means--
       (A) the Committees on Veterans' Affairs, Appropriations, 
     and the Budget of the Senate; and
       (B) the Committees on Veterans' Affairs, Appropriations, 
     and the Budget of the House of Representatives.

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