[Congressional Record Volume 155, Number 53 (Monday, March 30, 2009)]
[Senate]
[Pages S3988-S3997]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. AKAKA (for himself, Mr. Baucus, and Mr. Begich):
  S. 734. A bill to amend title 38, United States Code, to improve the 
capacity of the Department of Veterans Affairs to recruit and retain 
physicians in Health Professional Shortage Areas and to improve the 
provision of health care to veterans in rural areas, and for other 
purposes; to the Committee on Veterans' Affairs.
  Mr. AKAKA. Mr. President, I am today introducing legislation to make 
various improvements to VA rural health care. I am pleased to be joined 
in this effort by Senators Max Baucus and Mark Begich. The legislation 
is designed to bring more doctors into small communities; promote the 
use of volunteer counselors to help with mental health issues; expand 
telemedicine services; and create incentives for VA's community 
partners to provide high quality services to veterans.
  As the drawdown of forces in Iraq begins, VA must be prepared to meet 
the health care needs of veterans upon their return.
  Many veterans live in small towns and communities. This includes a 
large number of Guard members and Reservists who have served in such an 
integral role in Iraq and Afghanistan. Members of the Guard and Reserve 
face challenges that are different than those faced by their active 
duty counterparts, who return to military bases with the support of 
their unit and programs geared toward re-acclimating them to life 
outside of the combat zone. When members of the Guard or Reserves 
return home, they often are isolated from their units, leaving them to 
reintegrate back into their communities without a strong VA or DoD 
presence or support system.
  When health care is needed, a rural community may not have providers 
who offer mental health services, such as group counseling, and may not 
be familiar with treating combat-related disorders.
  I believe strongly that there is an obligation to care for all 
veterans in need, regardless of where they live. We must ensure that 
adequate resources are available to serve those who live in rural 
communities, and that VA works closely with local health care providers 
to help meet the need for care. It is critical that VA reach out to 
veterans living in rural communities so that they receive the care they 
need. Every resource must be united in the effort to care for wounded 
warriors, whether in a community hospital or VA clinic. When there is 
no VA presence in a community, VA may need to pay community providers 
for the reasonable costs of care.
  Last month, the Committee on Veterans' Affairs held a hearing on 
health care for veterans in rural areas. We heard from the chief 
executive officer of a community hospital, from a former director of a 
rural health clinic, and from outreach organizations who work to bridge 
the gap between VA and community health care systems. These witnesses 
testified about how hard it is for veterans who live in rural areas to 
find health care in the communities where they live, and about how 
difficult it is for community hospitals and clinics to provide quality 
services with the limited resources available to them.
  Committee on Veterans' Affairs staff also conducted an oversight 
visit to Hawaii and saw firsthand the needs of veterans living in rural 
communities on the neighbor islands. Many of those veterans find it 
hard to access VA health care because of travel restrictions and a 
shortage of services in their communities. Committee staff found that 
technology was not being used to bridge this gap; indeed, the use of 
telemedicine is actually declining in Hawaii.
  The legislation we are introducing today would help address the needs 
of veterans living in rural communities in a number of ways.
  First, the bill would bring more doctors to targeted communities by 
repaying their student loans while they work for VA. Currently, VA's 
loan repayment program is capped at an amount that is less than \1/3\ 
the average cost of medical school. This bill would remove the cap, 
allowing VA to offer full loan repayment so as to provide a much more 
effective recruitment tool.
  In addition, this bill would encourage VA and HHS to use the National 
Health Service Corps Scholarship Program to recruit physicians for VA 
facilities located in underserved areas. The National Health Service 
Corps pays for medical school up front in exchange for a doctor's 
agreement to work in an underserved area after graduation.
  To address the shortage of mental health providers in many 
communities, this legislation would also allow VA to shorten the 
credentialing and privileging process for licensed volunteer counselors 
who could provide mental health services to our veterans.
  The legislation would also create a pilot program to place VA doctors 
in community hospitals so as to enable them to provide more continuous 
care for veterans. Under this pilot, VA doctors working in communities 
without a VA hospital would be able to follow their patients when 
admitted to the local hospital. Participating VA doctors would earn 
additional compensation for assuming these responsibilities, thereby 
creating financial incentives for doctors to stay within VA. Since many 
non-VA hospitals do not have mental health providers or other providers 
experienced in the treatment of conditions such as post-traumatic 
stress disorder that disproportionately affect veterans, this would 
also bring needed expertise into other care communities.
  This bill would also allow VA to monitor the quality of care provided 
in non-VA facilities. Currently, there is no way for VA to do such 
quality assurance in a systematic way. This bill would encourage VA's 
community partners to participate in quality programs like peer review, 
or to seek accreditation by an outside organization.
  This bill also would bring new technologies to rural communities. By 
modifying VA's internal mechanism for distributing funds, the 
legislation would provide incentives for VA hospitals and clinics to 
use telehealth technologies. VA currently bases the distribution of 
funds to its facilities on workload and does not currently count all 
telehealth visits in a facility's workload. By requiring VA to give 
hospitals and clinics credit for telehealth

[[Page S3989]]

visits, this bill will promote the natural expansion of these services 
to our veterans.
  Finally, for those veterans who must travel by air to obtain their 
health care--because of their health status, geography or other 
barriers--this bill would allow VA to pay beneficiary travel benefits 
for airfare to those veterans who cannot afford it. In recognition of 
the cost of airfare, a different income eligibility standard from that 
used for ground transportation would be used in connection with 
reimbursement of the costs of air travel.
  I urge our colleagues to work with me and the other members of the 
Veterans' Affairs Committee to improve access to health care for 
veterans who live in rural areas.
  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 
placed in the Record, as follows:

                                 S. 734

       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 ``Rural Veterans Health Care 
     Access and Quality Act of 2009''.

     SEC. 2. ENHANCEMENT OF DEPARTMENT OF VETERANS AFFAIRS 
                   EDUCATION DEBT REDUCTION PROGRAM.

       (a) Enhanced Maximum Annual Amount.--Paragraph (1) of 
     section 7683(d) of title 38, United States Code, is amended 
     by striking ``$44,000'' and all that follows through ``fifth 
     years of participation in the Program'' and inserting ``the 
     total amount of principle and interest owed by the 
     participant on loans referred to in subsection (a)''.
       (b) Notice to Potential Employees of Eligibility and 
     Selection for Participation.--Section 7682 of such title is 
     amended by adding at the end the following new subsection:
       ``(d) Notice to Potential Employees.--In each offer of 
     employment made by the Secretary to an individual who, upon 
     acceptance of such offer would be treated as eligible to 
     participate in the Education Debt Reduction Program, the 
     Secretary shall, to the maximum extent practicable, include 
     the following:
       ``(1) A notice that the individual will be treated as 
     eligible to participate in the Education Debt Reduction 
     Program upon the individual's acceptance of such offer.
       ``(2) A notice of the determination of the Secretary 
     whether or not the individual will be selected as a 
     participant in the Education Debt Reduction Program as of the 
     individual's acceptance of such offer.''.
       (c) Selection of Employees Who Receive Notice of Selection 
     With Employment Offer.--Section 7683 of such title is further 
     amended by adding at the end the following new subsection:
       ``(e) Selection of Participants.--(1) The Secretary shall 
     select for participation in the Education Debt Reduction 
     Program each individual eligible for participation in the 
     Education Debt Reduction Program who--
       ``(A) the Secretary provided notice with an offer of 
     employment under section 7682(d) of this title that indicated 
     the individual would, upon the individual's acceptance of 
     such offer of employment, be--
       ``(i) eligible to participate in the Education Debt 
     Reduction Program; and
       ``(ii) selected to participate in the Education Debt 
     Reduction Program; and
       ``(B) accepts such offer of employment.
       ``(2) The Secretary may select for participation in the 
     Education Debt Reduction Program an individual eligible for 
     participation in the Education Debt Reduction Program who is 
     not described by subparagraphs (A) and (B) of paragraph 
     (1).''.

     SEC. 3. INCLUSION OF DEPARTMENT OF VETERANS AFFAIRS 
                   FACILITIES IN LIST OF FACILITIES ELIGIBLE FOR 
                   ASSIGNMENT OF PARTICIPANTS IN NATIONAL HEALTH 
                   SERVICE CORPS SCHOLARSHIP PROGRAM.

       The Secretary of Veterans Affairs shall transfer 
     $20,000,000 from accounts of the Veterans Health 
     Administration to the Secretary of Health and Human Services 
     to include facilities of the Department of Veterans Affairs 
     in the list maintained by the Health Resources and Services 
     Administration of facilities eligible for assignment of 
     participants in the National Health Service Corps Scholarship 
     Program.

     SEC. 4. OFFICE OF RURAL HEALTH FIVE-YEAR STRATEGIC PLAN.

       (a) Strategic Plan.--Not later than 180 days after the date 
     of the enactment of this Act, the Director of the Office of 
     Rural Health of the Department of Veterans Affairs shall 
     develop a five-year strategic plan for the Office of Rural 
     Health.
       (b) Contents.--The plan required by subsection (a) shall 
     include the following:
       (1) Specific goals for the recruitment and retention of 
     health care personnel in rural areas, developed in 
     conjunction with the Director of the Health Care Retention 
     and Recruitment Office of the Department of Veterans Affairs.
       (2) Specific goals for ensuring the timeliness and quality 
     of health care delivery in rural communities that are reliant 
     on contract and fee basis care, developed in conjunction with 
     the Director of the Office of Quality and Performance of the 
     Department.
       (3) Specific goals for the expansion and implementation of 
     telemedicine services in rural areas, developed in 
     conjunction with the Director of the Office of Care 
     Coordination Services of the Department.
       (4) Incremental milestones describing specific actions to 
     be taken for the purpose of achieving the goals specified 
     under paragraphs (1) through (3).

     SEC. 5. ENHANCEMENT OF VET CENTERS TO MEET NEEDS OF VETERANS 
                   OF OPERATION IRAQI FREEDOM AND OPERATION 
                   ENDURING FREEDOM.

       (a) Volunteer Counselors.--Subsection (c) of section 1712A 
     of title 38, United States Code, is amended--
       (1) by striking ``The Under Secretary'' and inserting ``(1) 
     The Under Secretary'';
       (2) in paragraph (1), as designated by paragraph (1), by 
     striking ``, and, in carrying'' and all that follows through 
     ``screening activities''; and
       (3) by adding at the end the following new paragraphs:
       ``(2) In carrying out this section, the Under Secretary may 
     utilize the services of the following:
       ``(A) Paraprofessionals, individuals who are volunteers 
     working without compensation, and individuals who are 
     veteran-students (as described in section 3485 of this title) 
     in initial intake and screening activities.
       ``(B) Eligible volunteer counselors in the provision of 
     counseling and related mental health services.
       ``(3) For purposes of this subsection, an eligible 
     volunteer counselor is an individual--
       ``(A) who--
       ``(i) provides counseling services without compensation at 
     a center;
       ``(ii) is a licensed psychologist or social worker;
       ``(iii) has never been named in a malpractice action; and
       ``(iv) has never had, and has no pending, disciplinary 
     action taken with respect to any license of the individual in 
     any State; or
       ``(B) who is otherwise credentialed and privileged to 
     perform counseling services by the Secretary.
       ``(4) Not later than one year after the date of the 
     enactment of the Rural Veterans Health Care Access and 
     Quality Act of 2009, the Secretary shall establish expedited 
     credentialing and privileging procedures for eligible 
     volunteer counselors for the provision of counseling and 
     related mental health services under this section.
       ``(5) For each application received by the Secretary for 
     credentialing and privileging of an eligible volunteer 
     counselor under this subsection, the Secretary shall complete 
     the credentialing and privileging process for such volunteer 
     not later than 60 days after receiving such application.''.
       (b) Outreach.--Subsection (e) of such section is amended--
       (1) by striking ``The Secretary'' and inserting ``(1) The 
     Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Each center shall develop an outreach plan to ensure 
     that the community served by the center is aware of the 
     services offered by the center.''.

     SEC. 6. TELECONSULTATION AND TELEMEDICINE.

       (a) Teleconsultation and Teleretinal Imaging.--
       (1) In general.--Subchapter I of chapter 17 of title 38, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1709. Teleconsultation and teleretinal imaging

       ``(a) Teleconsultation.--(1) The Secretary shall carry out 
     a program of teleconsultation for the provision of remote 
     mental health and traumatic brain injury assessments in 
     facilities of the Department that are not otherwise able to 
     provide such assessments without contracting with third party 
     providers or reimbursing providers through a fee basis 
     system.
       ``(2) The Secretary shall, in consultation with appropriate 
     professional societies, promulgate technical and clinical 
     care standards for the use of teleconsultation services 
     within facilities of the Department.
       ``(b) Teleretinal Imaging.--(1) The Secretary shall carry 
     out a program of teleretinal imaging in each Veterans 
     Integrated Services Network (VISN).
       ``(2) In each fiscal year beginning with fiscal year 2010 
     and ending with fiscal year 2015, the Secretary shall 
     increase the number of patients enrolled in each teleretinal 
     imaging program under paragraph (1) by not less than five 
     percent from the number of patients enrolled in each 
     respective program in the previous fiscal year.
       ``(c) Definitions.--In this section:
       ``(1) The term `teleconsultation' means the use by a health 
     care specialist of telecommunications to assist another 
     health care provider in rendering a diagnosis or treatment.
       ``(2) The term `teleretinal imaging' means the use by a 
     health care specialist of telecommunications, digital retinal 
     imaging, and remote image interpretation to provide eye 
     care.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 17 of such title is amended by inserting 
     after the item related to section 1708 the following new 
     item:

``1709. Teleconsultation and teleretinal imaging.''.

       (b) Training in Telemedicine.--The Secretary of Veterans 
     Affairs shall require each

[[Page S3990]]

     Department of Veterans Affairs facility that is involved in 
     the training of medical residents to work with each 
     university concerned to develop an elective rotation in 
     telemedicine for such residents.
       (c) Enhancement of VERA.--
       (1) Incentives for provision of teleconsultation, 
     teleretinal imaging, telemedicine, and telehealth services.--
     The Secretary of Veterans Affairs shall modify the Veterans 
     Equitable Resource Allocation system to provide incentives 
     for the utilization of teleconsultation, teleretinal imaging, 
     telemedicine, and telehealth coordination services.
       (2) Inclusion of telemedicine visits in workload 
     reporting.--The Secretary shall modify the Veterans Equitable 
     Resource Allocation system to require the inclusion of all 
     telemedicine visits in the calculation of facility workload.
       (d) Definitions.--In this section:
       (1) The terms ``teleconsultation'' and ``teleretinal 
     imaging'' have the meanings given such terms in section 1720G 
     of title 38, United States Code, as added by subsection (a).
       (2) The term ``telemedicine'' means the use by a health 
     care provider of telecommunications to assist in the 
     diagnosis or treatment of a patient's medical condition.
       (3) The term ``telehealth'' means the use of 
     telecommunications to collect patient data remotely and send 
     data to a monitoring station for interpretation.

     SEC. 7. OVERSIGHT OF CONTRACT AND FEE BASIS CARE.

       (a) In General.--Subchapter I of chapter 17 of title 38, 
     United States Code, is amended by inserting after section 
     1703 the following new section:

     ``Sec. 1703A. Oversight of contract and fee basis care

       ``(a) Consolidation of Community Based Outpatient Clinic 
     Contracting.--For each Veterans Integrated Services Network 
     (VISN), the Secretary shall, acting through the Under 
     Secretary for Health and to the maximum extent practicable, 
     negotiate with each party that has contracts to provide 
     services at more than one community based outpatient clinic 
     in such Network to consolidate such contracts.
       ``(b) Rural Outreach Coordinators.--The Secretary shall 
     designate a rural outreach coordinator at each Department 
     community based outpatient clinic at which not less than 50 
     percent of the veterans enrolled at such clinic reside in a 
     highly rural area. The coordinator at a clinic shall be 
     responsible for coordinating care and collaborating with 
     community contract and fee basis providers with respect to 
     the clinic.
       ``(c) Incentives to Obtain Accreditation of Medical 
     Practice.--(1) The Secretary shall adjust the fee basis 
     compensation of providers of health care services under the 
     Department to encourage such providers to obtain 
     accreditation of their medical practice from recognized 
     accrediting entities.
       ``(2) In making adjustments under paragraph (1), the 
     Secretary shall consider the increased overhead costs of 
     accreditation described in paragraph (1) and the costs of 
     achieving and maintaining such accreditation.
       ``(d) Incentives for Participation in Peer Review.--(1) The 
     Secretary shall adjust the fee basis compensation of 
     providers of health care services under the Department that 
     do not provide such services as part of a medical practice 
     accredited by a recognized accrediting entity to encourage 
     such providers to participate in peer review under subsection 
     (e).
       ``(2) The Secretary shall provide incentives under 
     paragraph (1) to a provider of health care services under the 
     Department in an amount equal to the amount the Secretary 
     would provide to such provider under subsection (c) if such 
     provider provided such services as part of a medical practice 
     accredited by a recognized accrediting entity.
       ``(e) Peer Review.--(1) The Secretary shall provide for the 
     voluntary peer review of providers of health care services 
     under the Department who provide such services on a fee basis 
     as part of a medical practice that is not accredited by a 
     recognized accrediting entity.
       ``(2) Each year, beginning with the first fiscal year 
     beginning after the date of the enactment of this section, 
     the Chief Quality and Performance Officer in each Veterans 
     Integrated Services Network (VISN) shall select a sample of 
     patient records from each participating provider in the 
     Officer's Veterans Integrated Services Network to be peer 
     reviewed by a facility designated under paragraph (3).
       ``(3) The Chief Quality and Performance Officer in each 
     Veterans Integrated Services Network shall designate 
     Department facilities in such network for the peer review of 
     patient records submitted under this subsection.
       ``(4) Each year, beginning with the first fiscal year 
     beginning after the date of the enactment of this section, 
     each provider who elects to participate in the program shall 
     submit the patient records selected under paragraph (2) to a 
     facility selected under paragraph (3) to be peer reviewed by 
     such facility.
       ``(5) Each Department facility designated under paragraph 
     (3) that receives patient records under paragraph (4) shall--
       ``(A) peer review such records in accordance with policies 
     and procedures established by the Secretary;
       ``(B) ensure that peer reviews are evaluated by the Peer 
     Review Committee; and
       ``(C) develop a mechanism for notifying the Under Secretary 
     for Health of problems identified through such peer review.
       ``(6) The Under Secretary for Health shall develop a 
     mechanism by which the use of fee basis providers of health 
     care are terminated when quality of care concerns are 
     identified.
       ``(7) The Chief Quality and Performance Officer in each 
     Veterans Integrated Services Network shall be responsible for 
     the oversight of the program in that network.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 of such title is amended by inserting 
     after the item related to section 1703 the following new 
     item:

``1703A. Oversight of contract and fee basis care.''.

     SEC. 8. TRAVEL BENEFITS FOR BENEFICIARIES IN REMOTE 
                   LOCATIONS.

       (a) Coverage of Cost of Transportation by Air.--
       (1) In general.--Subsection (a) of section 111 of title 38, 
     United States Code, is amended by inserting after the first 
     sentence the following new sentence: ``Actual necessary 
     expense of travel includes the reasonable costs of airfare if 
     travel by air is the only practical way to reach a Department 
     facility.''.
       (2) Elimination of limitation based on maximum annual rate 
     of pension.--Subsection (b)(1)(D)(i) of such section is 
     amended by inserting ``who is not traveling by air and'' 
     before ``whose annual''.
       (3) Determination of practicality.--Subsection (b) of such 
     section is amended by adding at the end the following new 
     paragraph:
       ``(4) In determining for purposes of subsection (a) whether 
     travel by air is the only practical way for a veteran to 
     reach a Department facility, the Secretary shall consider the 
     medical condition of the veteran and any other impediments to 
     the use of ground transportation by the veteran.''.
       (b) Mileage Reimbursement Rate for Travel by Air.--
     Subsection (g)(1) of such section is amended by inserting 
     after ``is available)'' the following: ``or the mileage 
     reimbursement rate for airplanes if travel by airplane is the 
     only practical method of travel''.

     SEC. 9. PILOT PROGRAM ON INCENTIVES FOR PHYSICIANS WHO ASSUME 
                   INPATIENT RESPONSIBILITIES AT COMMUNITY 
                   HOSPITALS IN HEALTH PROFESSIONAL SHORTAGE 
                   AREAS.

       (a) Pilot Program Required.--The Secretary of Veterans 
     Affairs shall carry out a pilot program to assess the 
     feasability and advisability of each of the following:
       (1) The provision of financial incentives to eligible 
     physicians who obtain and maintain inpatient privileges at 
     community hospitals in health professional shortage areas in 
     order to facilitate the provision by such physicians of 
     primary care and mental health services to veterans at such 
     hospitals.
       (2) The collection of payments from third-party providers 
     for care provided by eligible physicians to non-veterans 
     while discharging inpatient responsibilities at community 
     hospitals in the course of exercising the privileges 
     described in paragraph (1).
       (b) Eligible Physicians.--For purposes of this section, an 
     eligible physician is a primary care or mental health 
     physician employed by the Department of Veterans Affairs on a 
     full-time basis.
       (c) Duration of Program.--The pilot program shall be 
     carried out during the three-year period beginning on the 
     date of the commencement of the pilot program.
       (d) Locations.--
       (1) In general.--The pilot program shall be carried out at 
     not less than five community hospitals in each of not less 
     than two Veterans Integrated Services Networks (VISNs). The 
     hospitals shall be selected by the Secretary utilizing the 
     results of the survey required under subsection (e).
       (2) Qualifying community hospitals.--A community hospital 
     may be selected by the Secretary as a location for the pilot 
     program if--
       (A) the hospital is located in a health professional 
     shortage area; and
       (B) the number of eligible physicians willing to assume 
     inpatient responsibilities at the hospital (as determined 
     utilizing the result of the survey) is sufficient for 
     purposes of the pilot program.
       (e) Survey of Physician Interest in Participation.--
       (1) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall conduct a survey of eligible physicians to determine 
     the extent of the interest of such physicians in 
     participating in the pilot program.
       (2) Elements.--The survey shall disclose the type, amount, 
     and nature of the financial incentives to be provided under 
     subsection (h) to physicians participating in the pilot 
     program.
       (f) Physician Participation.--
       (1) In general.--The Secretary shall select physicians for 
     participation in the pilot program from among eligible 
     physicians who--
       (A) express interest in participating in the pilot program 
     in the survey conducted under subsection (e);
       (B) are in good standing with the Department; and
       (C) primarily have clinical responsibilities with the 
     Department.
       (2) Voluntary participation.--Participation in the pilot 
     program shall be voluntary. Nothing in this section shall be 
     construed to

[[Page S3991]]

     require a physician working for the Department to assume 
     inpatient responsibilities at a community hospital unless 
     otherwise required as a term or condition of employment with 
     the Department.
       (g) Assumption of Inpatient Physician Responsibilities.--
       (1) In general.--Each eligible physician selected for 
     participation in the pilot program shall assume and maintain 
     inpatient responsibilities, including inpatient 
     responsibilities with respect to non-veterans, at one or more 
     community hospitals selected by the Secretary for 
     participation in the pilot program under subsection (d).
       (2) Coverage under federal tort claims act.--If an eligible 
     physician participating in the pilot program carries out on-
     call responsibilities at a community hospital where 
     privileges to practice at such hospital are conditioned upon 
     the provision of services to individuals who are not veterans 
     while the physician is on call for such hospital, the 
     provision of such services by the physician shall be 
     considered an action within the scope fo the physician's 
     office or employment for purposes of chapter 171 of title 28, 
     United States Code (commonly referred to as the ``Federal 
     Tort Claims Act'').
       (h) Compensation.--
       (1) In general.--The Secretary shall provide each eligible 
     physician participating in the pilot program with such 
     compensation (including pay and other appropriate 
     compensation) as the Secretary considers appropriate to 
     compensate such physician for the discharge of any inpatient 
     responsibilities by such physician at a community hospital 
     for which such physician would not otherwise be compensated 
     by the Department as a full-time employee of the Department.
       (2) Written agreement.--The amount of any compensation to 
     be provided a physician under the pilot program shall be 
     specified in a written agreement entered into by the 
     Secretary and the physician for purposes of the pilot 
     program.
       (3) Treatment of compensation.--The Secretary shall consult 
     with the Director of the Office of Personnel Management on 
     the inclusion of a provision in the written agreement 
     required under paragraph (2) that describes the treatment 
     under Federal law of any compensation provided a physician 
     under the pilot program, including treatment for purposes of 
     retirement under the civil service laws.
       (i) Collections From Third Parties.--In carrying out the 
     pilot program for the purpose described in subsection (a)(2), 
     the Secretary shall implement a variety and range of 
     requirements and mechanisms for the collection from third-
     party payors of amounts to reimburse the Department for 
     health care services provided to non-veterans under the pilot 
     program by eligible physicians discharging inpatient 
     responsibilities under the pilot program.
       (j) Inpatient Responsibilities Defined.--In this section, 
     the term ``inpatient responsibilities'' means on-call 
     responsibilities customarily required of a physician by 
     community hospital as a condition of granting privileges to 
     the physician to practice in the hospital.
       (k) Report.--Not later than one year after the date of the 
     enactment of this Act and annually thereafter, the Secretary 
     shall submit to Congress a report on the pilot program, 
     including the following:
       (1) The findings of the Secretary with respect to the pilot 
     program.
       (2) The number of veterans and non-veterans provided 
     inpatient care by physicians participating in the pilot 
     program.
       (3) The amounts collected and payable under subsection (i).
       (l) Health Professional Shortage Area Defined.--In this 
     section, the term ``health professional shortage area'' has 
     the meaning given the term in section 332(a) of the Public 
     Health Service Act (42 U.S.C. 254e(a)).
                                 ______
                                 
      By Mr. AKAKA (for himself and Mr. Voinovich):
  S. 736. A bill to provide for improvements in the Federal hiring 
process and for other purposes; to the Committee on Homeland Security 
and Governmental Affairs.
  Mr. AKAKA. Mr. President, today I introduce the Federal Hiring 
Process Improvement Act to help agencies fix the broken recruitment and 
hiring process in the Federal Government. I am pleased to be joined by 
my good friend Senator Voinovich in this effort.
  The Federal Government is the largest employer in the U.S., but every 
day talented people interested in Federal service walk away because the 
hiring process is longer and more complicated than that of other 
employers. Too many Federal agencies have built entry barriers for new 
workers, done too little to recruit the right candidates, and invented 
an evaluation process that discourages qualified candidates.
  In the private sector, many employers post job vacancies through a 
variety of online and other venues and require only a resume and cover 
letter to apply. Applying to the federal government should be similarly 
accessible and easy. However, agencies often require substantial essays 
and other documentation at the initial application stage.
  Agencies need to adapt, just as the private sector has, to take 
advantage of modern technology to boost recruitment efforts and 
streamline the hiring process to make it more user friendly. 
Inexpensive outlets such as social networking sites offer agencies an 
opportunity to expand their profile and post job opportunities without 
emptying their wallets. It is easier than it was in the past to submit 
and track application materials during the application process. 
Agencies should accept candidate-friendly applications such as resumes 
and cover letters for the initial application and ask for additional 
information only as needed. Likewise, technology makes it possible to 
provide automated information to candidates, so candidates should 
receive timely and informative feedback about the application process.
  Additionally, more employees with advanced and technical skills are 
needed in the modern federal workforce, so more pipelines into colleges 
and technical schools need to be developed to recruit candidates from 
diverse backgrounds.
  Last year, I chaired a hearing of the Subcommittee on Oversight of 
Government Management, the Federal Workforce, and the District of 
Columbia, where witnesses testified to the need for reforms in the 
hiring process. The Government Accountability Office testified to the 
broad failures of agencies to address such problems as passive 
recruitment strategies, unclear job vacancy announcements, and 
imprecise candidate assessment tools. Witnesses testified that young 
people are greatly interested in Federal Government service, but 
agencies need to meet them where they are. Developing broader 
recruitment strategies, using online resources and streamlining the 
hiring process are essential to attracting the next generation of 
Federal employees.
  In response to the hearing, the Office of Personnel Management, OPM, 
developed the End-to-End Hiring Roadmap initiative that provides 
agencies a streamlined 80-day model from the time a manager seeks to 
fill a position to the time an offer is made. This initiative addresses 
strategic workforce planning, targeted recruitment, clear job 
announcements, and hiring flexibilities. The initiative also advocates 
accepting resumes and cover letters over the lengthy and onerous 
knowledge, skills, and abilities essays, KSAs, required for many 
Federal jobs.
  This initiative includes many positive steps, but many agencies are 
not adopting them. OPM does not have the authority to require agencies 
to do so. Congress must step in.
  The Federal Hiring Process Improvement Act requires agencies to 
develop strategic workforce plans, including hiring projections and 
critical skills gaps analyses of the workforce; post brief, clear job 
announcements in plain writing; Allow submission of resumes and cover 
letters and no longer require KSAs; provide timely notification to 
applicants of the status of their application; take no more than 80 
days from the time a manager decides to fill a vacancy to the time an 
offer is made; keep an inventory of all applicants who elect to be 
considered for other Federal vacancies; and measure the effectiveness 
of hiring efforts and reforms.
  Agencies must make reforming the recruitment and hiring process a top 
priority, and this bill furthers the discussion. The Federal Hiring 
Process Improvement Act will require agencies to abandon their stale 
recruitment and hiring processes and develop streamlined hiring 
practices that attract high-quality candidates. The future of the 
Federal workforce is depending on it.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 736

       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 Hiring Process 
     Improvement Act of 2009''.

     SEC. 2. DEFINITION.

       In this Act, the term ``agency''--
       (1) means an Executive agency as defined under section 105 
     of title 5, United States Code; and
       (2) shall not include the Government Accountability Office.

     SEC. 3. STRATEGIC WORKFORCE PLAN.

       (a) In General.--

[[Page S3992]]

       (1) Development of plan.--Not later than 180 days after the 
     date of enactment of this Act and in every subsequent year, 
     the head of each agency, in consultation with the Chief Human 
     Capital Officers Council, shall develop a strategic workforce 
     plan as part of the agency performance plan required under 
     section 1115 of title 31, United States Code, to include--
       (A) hiring projections, including occupation and grade 
     level;
       (B) long-term and short-term strategic human capital 
     planning to address critical skills deficiencies;
       (C) recruitment strategies to attract highly qualified 
     candidates from diverse backgrounds; and
       (D) streamlining the hiring process to conform with the 
     provisions in this Act.
       (2) Inclusion in performance plan.--Section 1115(a) of 
     title 31, United States Code, is amended--
       (A) in paragraph (5), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (6), by striking the period and inserting 
     ``and''; and
       (C) by adding at the end the following:
       ``(7) include the strategic workforce plan developed under 
     section 3 of the Federal Hiring Process Improvement Act of 
     2009.''.
       (b) Hiring Projections.--Agencies shall make hiring 
     projections made under strategic workforce plans available to 
     the public.
       (c) Submission to the Office of Personnel Management.--Each 
     agency strategic workforce plan shall be submitted to the 
     Office of Personnel Management.

     SEC. 4. FEDERAL JOB VACANCY ANNOUNCEMENTS.

       (a) Targeted Announcements.--In consultation with the Chief 
     Human Capital Officers Council, the head of each agency 
     shall--
       (1) take steps necessary to target highly qualified 
     applicant pools with diverse backgrounds before posting job 
     announcements;
       (2) clearly and prominently display job announcements in 
     strategic locations convenient to such targeted applicant 
     pools; and
       (3) seek to develop relationships with targeted applicant 
     pools to develop regular pipelines for high-quality 
     applicants.
       (b) Public Notice Requirements.--The requirements of 
     subsection (a) shall not supersede public notice 
     requirements.
       (c) Plain Writing Requirement.--
       (1) Definition.--In this subsection, the term ``plain 
     writing'' means writing that the intended audience can 
     readily understand and use because that writing is clear, 
     concise, well-organized, and follows other best practices of 
     plain writing.
       (2) Requirement.--Not later than 180 days after the date of 
     enactment of this Act, all Federal job announcements for 
     competitive positions shall be written in plain writing.

     SEC. 5. APPLICATION PROCESS AND NOTIFICATION REQUIREMENTS.

       (a) Application Process.--Not later than 180 days after the 
     date of enactment of this Act and in consultation with the 
     Chief Human Capital Officers Council, the head of each agency 
     shall develop processes to--
       (1) ensure that vacancy announcements are open for a 
     reasonable period of time as determined by the head of the 
     agency to allow targeted, highly qualified applicants from 
     diverse backgrounds time to submit an application;
       (2) ensure that vacancy announcements include contact 
     information for applicants who seek further information about 
     the announcement;
       (3) review and revise the hiring process of the agency to 
     create a streamlined and timely system for hiring decisions;
       (4) allow applicants to submit a cover letter, resume, and 
     answers to brief questions, such as questions relating to 
     United States citizenship and veterans status, to complete an 
     application;
       (5) allow applicants to submit application materials in a 
     variety of formats, including word processing documents and 
     portable document format;
       (6) not require any applicant to provide a Social Security 
     number or any other personal identifying information 
     unnecessary for the initial review of an applicant for a 
     position;
       (7) not require lengthy writing requirements such as 
     knowledge, skills, and ability essays as part of an initial 
     application;
       (8) not require the submission of additional material in 
     support of an application, such as educational transcript, 
     proof of veterans status, and professional certifications, 
     unless necessary to complete the application process;
       (9) ensure that applicants are given a reasonable amount of 
     time after the closing date of the job announcement to 
     provide additional necessary information; and
       (10) include the hiring manager in all parts of the 
     application process, including--
       (A) targeted recruitment;
       (B) drafting the job announcement;
       (C) review of the initial applications;
       (D) interviewing the applicants; and
       (E) the final decisionmaking process.
       (b) Notification Requirements.--
       (1) In general.--In consultation with the Chief Human 
     Capital Officers Council, the head of each agency shall 
     develop mechanisms under which each applicant for a Federal 
     job vacancy shall receive timely notification of the status 
     of their applications or provide the applicant the ability to 
     check on the status of their applications.
       (2) Contents of notification.--A notification to an 
     applicant under this subsection shall include--
       (A) notice of receipt of an application not later than 5 
     business days after the application was received by the 
     employing agency;
       (B) an explanation of the hiring process and an estimated 
     timeline of the next actions in the process;
       (C) notice the qualification and status of an applicant 
     after all applications for the applicable position have been 
     initially reviewed and ranked;
       (D) notice of the qualifications and status of the 
     applicant after all interviews for the applicable position 
     are completed;
       (E) for all applicants selected for an interview, notice of 
     the ongoing process if selected, including the process for 
     any needed security clearance or suitability review, not 
     later than the date of the interview; and
       (F) notice to nonaccepted applicants that the applicable 
     position is not open not later than 10 business days after 
     the date on which--
       (i) the selected candidate has accepted an offer of 
     employment; or
       (ii) the job announcement has been cancelled.

     SEC. 6. APPLICANT INVENTORY.

       (a) In General.--Section 3330 of title 5, United States 
     Code, is amended--
       (1) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (d) the following:
       ``(e)(1) The Office of Personnel Management shall establish 
     and keep current a comprehensive inventory of individuals 
     seeking employment in the Federal Government.
       ``(2) The inventory under this subsection shall--
       ``(A) be made available to agencies for use in filling 
     vacancies;
       ``(B) contain information voluntarily provided by 
     applicants for employment, including--
       ``(i) the resume and contact information provided by the 
     applicant; and
       ``(ii) any other information which the Office considers 
     appropriate;
       ``(C) retain information for no longer than 1 calendar 
     year;
       ``(D) not include information relating to--
       ``(i) the application of the applicant for a specific 
     vacancy announcement; or
       ``(ii) any other information relating to vacancy 
     announcements; and
       ``(E) shall provide for a mechanism to allow--
       ``(i) applicants to update resume contact information; and
       ``(ii) agency officials to search information in the 
     inventory by agency and job classification.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 180 days after the date of enactment of 
     this Act.

     SEC. 7. TRAINING.

       Not later than 120 days after the date of enactment of this 
     Act--
       (1) in consultation with the Chief Human Capital Officers 
     Council, the Office of Personnel Management shall develop and 
     notify agencies of a training program for human resources 
     professionals to implement the requirements of this Act; and
       (2) each agency shall develop and submit to the Office of 
     Personnel Management a plan to implement the training 
     program.

     SEC. 8. REDUCTION IN THE LENGTH OF THE HIRING PROCESS.

       (a) Agency Plans.--In consultation with the Chief Human 
     Capital Officers Council, the head of each agency shall 
     develop a plan to reduce the length of the hiring process.
       (b) Requirements.--To the extent practical, the plan shall 
     require that each agency fill identified vacancies not later 
     than an average of 80 calendar days after the date of 
     identification of the vacancy.
       (c) Reports.--Each agency shall submit an annual report to 
     Congress on the period of time required to fill each vacancy, 
     and whether vacancies are cancelled or reopened.

     SEC. 9. MEASURES OF FEDERAL HIRING EFFECTIVENESS.

       (a) In General.--Each agency shall measure and collect 
     information on indicators of hiring effectiveness with 
     respect to the following:
       (1) Recruiting and hiring.--
       (A) Ability to reach and recruit well-qualified talent from 
     diverse talent pools.
       (B) Use and impact of special hiring authorities and 
     flexibilities to recruit most qualified applicants.
       (C) Use and impact of special hiring authorities and 
     flexibilities to recruit diverse candidates, including 
     veteran, minority, and disabled candidates.
       (D) The age, educational level, and source of applicants.
       (E) Length of time between the time a position is 
     advertised and the time a first offer of employment is made.
       (F) Length of time between the time a first offer of 
     employment for a position is made and the time a new hire 
     starts in that position.
       (G) Number of internal and external applicants for Federal 
     positions.
       (2) Hiring manager assessment.--
       (A) Manager satisfaction with the quality of new hires.
       (B) Manager satisfaction with the match between the skills 
     of newly hired individuals and the needs of the agency.
       (C) Manager satisfaction with the hiring process and hiring 
     outcomes.
       (D) Mission-critical deficiencies closed by new hires and 
     the connection between mission-critical deficiencies and 
     annual agency performance.

[[Page S3993]]

       (3) Applicant assessment.--Applicant satisfaction with the 
     hiring process (including clarity of job announcement, 
     reasons for withdrawal of application should that apply, 
     user-friendliness of the application process, communication 
     regarding status of application, and timeliness of hiring 
     decision).
       (4) New hire assessment.--
       (A) New hire satisfaction with the hiring process 
     (including clarity of job announcement, user-friendliness of 
     the application process, communication regarding status of 
     application, and timeliness of hiring decision).
       (B) Satisfaction with the onboarding experience (including 
     timeliness of onboarding after the hiring decision, welcoming 
     and orientation processes, and being provided with timely and 
     useful new employee information and assistance).
       (C) New hire attrition.
       (D) Investment in training and development for employees 
     during their first year of employment.
       (E) Other indicators and measures as required by the Office 
     of Personnel Management.
       (b) Reports.--
       (1) In general.--Each agency shall submit an annual report 
     of the information collected under subsection (a) to the 
     Office of Personnel Management.
       (2) Availability of recruiting and hiring information.--
     Each year the Office of Personnel Management shall provide 
     the information under subsection (c)(1) in a consistent 
     format to allow for a comparison of hiring effectiveness and 
     experience across demographic groups and agencies to--
       (A) Congress before that information is made publicly 
     available; and
       (B) the public on the website of the Office.
       (c) Regulations.--Not later than 180 days of the date of 
     enactment of this Act, the Office of Personnel Management 
     shall prescribe regulations directing the methodology, 
     timing, and reporting of the data described in subsection 
     (a).

     SEC. 10. REGULATIONS.

       (a) In General.--Except as provided under section 9(c), not 
     later than 120 days after the date of enactment of this Act, 
     the Director of the Office of Personnel Management shall 
     prescribe regulations as necessary to carry out this Act.
       (b) Consultation.--The Director of the Office of Personnel 
     Management shall consult the Chief Human Capital Officers 
     Council in the development of regulations under this section.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary for the Office of Personnel Management to carry out 
     this Act for fiscal year 2009 and for each subsequent fiscal 
     year.

  Mr. VOINOVICH. Mr. President, I am pleased to join my good friend and 
partner in Federal workforce issues, Senator Daniel K. Akaka, to 
introduce the Federal Hiring Process Improvement Act of 2009.
  When we discuss hiring, we discuss a process that affects every 
individual employed by the government today. Making the right hiring 
decisions affects the current workforce's ability to continue doing 
their jobs. It also is the same process these employees must go through 
when pursuing new opportunities within the Government, including 
promotions.
  Additionally, we need to convey to the thousands of men and women at 
all stages of their career that the Federal Government is more than 
just an employer, but a place where Americans can utilize and grow 
their skills in service to their Nation.
  As the old cliche goes, ``You never get a second chance to make a 
first impression.'' We need to convey to these Americans that the 
Federal Government wants them. If we do not, someone else will.
  The Baby Boomers are retiring at a time when needs and demands on 
Government continue to grow. The Office of Personnel Management has 
identified certain areas of critical hiring importance: air traffic 
controllers, border patrol officers, engineers, food inspectors, human 
resources specialists, nurses, visa examiners, patent examiners, 
scientists, veterinarians, accountants, and acquisition professionals. 
In addition, the Partnership for Public Service has estimated the 
Federal Government will lose approximately 530,000 employees over the 
next 5 years, including many mission critical jobs.
  We know the challenges confronting the Federal Government. Now we 
must make sure our processes result in hiring the right person, at the 
right place, at the right time, to get the job done.
  Over and over, we hear of the problems in the Federal hiring process. 
It takes too long; it is too burdensome, and so forth. The quality of 
technology has improved, but our processes have not. This does nothing 
to dispel any preconceived notions that the Federal Government is 
nothing but a bureaucratic system.
  Accordingly, Senator Akaka and I are introducing legislation to 
streamline the hiring process. The Federal Hiring Process Improvement 
Act brings together commonsense solutions to a government-wide 
management challenge. Our legislation would require job announcements 
to be written in plain language; guarantee agencies provide feedback to 
applicants at a minimum of four key points during the process; and 
ensure individual hiring decisions are made within 80 days or less. In 
addition, our legislation would require agencies to improve their 
workforce planning and make hiring projections available to the public.
  Too often, we have heard that processes exist for what I believe to 
be unacceptable reasons, such as, that is how it always has been done. 
But to be an employer of choice, the government must understand what 
the competition is doing and adapt to the changing environment. This 
legislation is an important first step in meeting that goal.
                                 ______
                                 
      By Ms. COLLINS (for herself and Mr. Udall of Colorado):
  S. 737. A bill to amend the Energy Independence and Security Act of 
2007 to authorize the Secretary of Energy to conduct research, 
development, and demonstration to make biofuels more compatible with 
small nonroad engines, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Ms. COLLINS. Mr. President, today I, along with Senator Udall of 
Colorado, am introducing legislation that would amend the Energy 
Independence and Security Act of 2007 to expand on a research, 
development, and demonstration program, authorized in that bill, to 
include efforts to make biofuels more compatible with small non-road 
engines.
  The Energy Independence and Security Act of 2007, directed the 
Secretary of the Department of Energy, DOE, in coordination with the 
Secretary of the Department of Transportation, DOT, and in consultation 
with the Administrator of the Environmental Protection Agency, EPA, to 
carry out a program of research and development regarding the impact 
that biofuels, like ethanol, may have on existing fuel storage and 
delivery infrastructure used for petroleum-based fuels. It is critical 
that these biofuels also are safe to use in operating small non-road 
engines. My bill requires these agencies to expand their research 
program to include small engines such as those in snowmobiles, boats, 
lawnmowers, and chainsaws.
  Previous testing done through DOE shows that increased ethanol 
content in smaller engines creates a leaner burning mixture, which may 
increase idle speed on some small engines, creating unanticipated 
clutch engagement on equipment such as chainsaws and handheld trimmers. 
Also, ethanol is more corrosive and less efficient than traditional 
gasoline blends. During these difficult economic times, equipment 
damage due to ethanol-gasoline fuel blends only adds to the many 
challenges facing Maine's farmers, fishermen, independent woodsmen, and 
recreational industry.
  As we pursue strategies to lessen our dependence on foreign oil, we 
must also take action to ensure that ethanol fuel blends are safe and 
efficient for small engines. I urge my colleagues to support this 
important legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 737

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

     SECTION 1. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS 
                   INFRASTRUCTURE.

       Section 248 of the Energy Independence and Security Act of 
     2007 (42 U.S.C. 17054) is amended--
       (1) in subsection (a), by striking ``and new alternative 
     distribution infrastructure'' and inserting ``, new 
     alternative distribution infrastructure, and effects on small 
     engines''; and
       (2) in subsection (b)--
       (A) in paragraph (8), by striking ``and'' after the 
     semicolon at the end;
       (B) by redesignating paragraph (9) as paragraph (10); and
       (C) by inserting after paragraph (8) the following:
       ``(9) problems associated with the use of biofuels in small 
     nonroad engines; and''.

[[Page S3994]]

                                 ______
                                 
      By Mr. SPECTER:
  S. 740. A bill to amend the Internal Revenue Code of 1986 to expand 
the homebuyer tax credit, and for other purposes; to the Committee on 
Finance.
  Mr. SPECTER. Mr. President, I have sought recognition to introduce 
legislation to further expand the home buyer tax credit.
  A robust home buyer tax credit will spur consumer demand and help to 
stop the fall in home values, which continues to affect millions of 
Americans. This decline is destroying the savings and net worth of 
Americans, whose homes are their most valuable asset. Many now have 
mortgages that exceed the value of their homes.
  The Housing and Economic Recovery Act of 2008 created a tax credit 
for first-time home buyers of $7,500 through June of 2009. However, 
taxpayers were required to repay the tax credit in equal installments 
over 15 years, which greatly reduced its effectiveness. The 2009 
Stimulus bill waived the repayment requirement for purchases made in 
2009, increased the value of the credit to $8,000, and extended 
eligibility for purchases made through November of 2009.
  Further improvements are necessary, in my judgment, to bring about a 
recovery in the housing market that will ultimately contribute to the 
turnaround of the broader economy. First, this bill would amend the 
Stimulus bill and raise the value to $15,000, or 10 percent of the 
value of the home, whichever is less.
  Second, this bill would make the home buyer tax credit available to 
any individual who purchases a home, not just first-time home buyers. 
Doing so would stimulate demand for the entire range of homes on the 
market.
  Finally, this bill would remove the income eligibility threshold. 
Again, doing so would stimulate demand for the entire range of homes on 
the market. Currently, the credit is reduced for individuals with 
modified adjusted gross income, AGI, of more than $75,000, $150,000 for 
joint filers, and is zero for those individuals with modified AGI in 
excess of $95,000, $170,000 for joint filers.
  The need for a robust home buyer tax credit is clear. According to 
the National Association of Realtors, pending home sales hit a record 
low in January 2009. The Pending Home Sales Index, which measures the 
number of sales contracts signed each month, fell 7.7 percent to 80.4, 
the lowest mark since 2001 when tracking began.
  At the same time, the housing affordability index rose 13.6 
percentage points to a record high of 166.8. A value of 100 means that 
a family with the country's median income has exactly enough income to 
qualify for a mortgage on a median-priced existing single-family home. 
The higher the index, the better housing affordability is for buyers.
  These two figures, taken together, demonstrate that a robust home 
buyer tax credit is needed to spur demand from Americans that are 
hesitant to buy homes for fear that prices will not stabilize.
  Recent reports indicate a 13-month supply of unsold new homes, 
compared with a 4-month supply under more normal circumstances. Add to 
that a continually increasing number of foreclosed homes. According to 
the RealtyTrac 2008 Year-End Foreclosure Market Report, a total of 3.2 
million foreclosure filings--default notices, auction sale notices and 
bank repossessions--were reported on 2.3 million U.S. properties during 
2008, an 81 percent increase in total properties from 2007 and a 225 
percent increase in total properties from 2006.
  Jobs across all industries have been lost as a result of the housing 
crisis. According to a March 2, 2009, op-ed in the Washington Post by 
Robert J. Samuelson, ``Since late 2007, housing-related jobs--
carpenters, real estate agents, appraisers--have dropped by 1 million, 
a quarter of all lost jobs.''
  I applaud the efforts of Senator Johnny Isakson, who has been the 
leader on this issue in the Senate. I cosponsored his legislation in 
the 110th Congress to create a home buyer tax credit. In the 111th 
Congress, I supported his amendment to the Stimulus bill to make 
improvements to the credit and I have decided to join him as a 
cosponsor of S. 253, which seeks to make further improvements.
  The bill I am introducing is different from S. 253 in three main 
ways. First, my bill would improve the home buyer credit using the 2009 
Stimulus bill as a starting point. Second, my bill would increase the 
value of the credit to $15,000, or 10 percent of the home value, 
whichever is less, whereas S. 253 would increase the credit amount to 
10 percent of the home price capped at 3.5 percent of Federal Housing 
Administration loan limits. These limits are geographically dependent 
and would yield a credit ranging between approximately $10,000 and 
$22,000. Finally, my bill would remove income limitations on the 
credit, whereas S. 253 limits the credit for individuals earning up to 
$125,000, or $250,000 in the case of a joint return.
  I believe it is important for both bills to be pending so that 
additional ideas can be debated. To that end, I look forward to working 
with Senator Isakson to build consensus and support for further 
improvements. As long as forecasts predict that home prices are falling 
and that the economy will remain weak, a large fraction of potential 
homebuyers may choose to remain on the sidelines without a robust tax 
credit in place.
  I urge my colleagues to support this legislation, or the legislation 
introduced by Senator Isakson, to make further improvements to the home 
buyer tax credit.
                                 ______
                                 
      By Mr. SPECTER
  S. 741. A bill to amend the Internal Revenue Code of 1986 to impose a 
flat tax only on individual taxable earned income and business taxable 
income, and for other purposes; to the Committee on Finance.
  Mr. SPECTER. Mr. President, American taxpayers face another Federal 
income tax deadline. The date of April 15 stabs fear, anxiety, and 
unease into the hearts of millions of Americans. Every year during 
``tax season,'' millions of Americans spend their evenings pouring over 
page after page of IRS instructions, going through their records 
looking for information and struggling to find and fill out all the 
appropriate forms on their Federal tax returns. Americans are 
intimidated by the sheer number of different tax forms and their 
instructions, many of which they may be unsure whether they need to 
file. Given the approximately 582 possible forms, not to mention the 
instructions that accompany them, simply trying to determine which form 
to file can in itself be a daunting and overwhelming task. According to 
the 2008 annual report to Congress, released on January 7, 2009 by the 
National Taxpayer Advocate for the IRS, U.S. taxpayers and businesses 
spend about 7.6 billion hours a year complying with the filing 
requirements of the Internal Revenue Code. This figure does not include 
the millions of additional hours that taxpayers must spend when they 
are required to respond to an IRS notice or audit. Much of this time is 
spent burrowing through IRS laws and regulations which fill over 17,000 
pages and have grown from 744,000 words in 1955 to 7.1 million words in 
2005. By contrast, the Pledge of Allegiance has only 31 words, the 
Gettysburg Address has 267 words, the Declaration of Independence has 
about 1,300 words, and the Bible has only about 1,773,000 words.
  The majority of taxpayers still face filing tax forms that are far 
too complicated and take far too long to complete. According to the 
IRS's most available data, the average time burden for all taxpayers 
filing a 1040, 1040A, or 1040EZ in 2006 was 26.4 hours, with an average 
cost of $207 per return. Taxpayers filing 1040 forms had an average 
burden of approximately 34 hours. Moreover, this complexity is getting 
worse each year. According to the estimated preparation time listed on 
the forms by the IRS, the 1999 Form 1040 was estimated to take 12 hours 
and 51 minutes to complete. Thus, the time it now takes to fill out 
these tax forms has more than doubled over an eight year period.
  It is no wonder that more than 80 percent of individual taxpayers pay 
transaction fees to help file tax returns. Well over half of all 
taxpayers, 61 percent according to a recent survey, now hire an outside 
professional to prepare their tax returns for them. However, the fact 
that only about 35 percent of individuals itemize their deductions 
shows that a significant percentage of our taxpaying population 
believes that the tax system is too

[[Page S3995]]

complex for them to deal with. We all understand that paying taxes will 
never be something we enjoy, but neither should it be cruel and unusual 
punishment. Further, the pace of change to the Internal Revenue Code is 
brisk. Since the beginning of 2001, there have been more than 3,250 
changes to the tax code, an average of more than one a day, including 
more than 500 changes in 2008 alone. And we are far from being 
finished. Year after year, we continue to ask the same question--isn't 
there a better way?
  My flat tax legislation would make filing a tax return a manageable 
chore, not a seemingly endless nightmare, for most taxpayers. My flat 
tax legislation will fundamentally revise the present tax code, with 
its myriad rates, deductions, and instructions. This legislation would 
institute a simple, flat 20 percent tax rate for all individuals and 
businesses. This proposal is not cast in stone, but is intended to move 
the debate forward by focusing attention on three key principles which 
are critical to an effective and equitable taxation system: simplicity, 
fairness, and economic growth.
  My flat tax plan would eliminate the kinds of frustrations I have 
outlined above for millions of taxpayers. This flat tax would enable us 
to scrap the great majority of the IRS rules, regulations and 
instructions and delete most of the 7.1 million words in the Internal 
Revenue Code. Instead of billions of hours of non-productive time spent 
in compliance with, or avoidance of, the tax code, taxpayers would 
spend only the small amount of time necessary to fill out a postcard-
sized form. Both business and individual taxpayers would thus find 
valuable hours freed up to engage in productive business activity or 
for more time with their families, instead of pouring over tax tables, 
schedules, and regulations.
  My flat tax proposal is dramatic, but so are its advantages: a 
taxation system that is simple, fair, and designed to maximize 
prosperity for all Americans. A summary of the key advantages are:
  A 10-line postcard filing would replace the myriad forms and 
attachments currently required, thus saving Americans up to 7.6 billion 
hours they currently spend every year in tax compliance.
  The flat tax would eliminate the lion's share of IRS rules, 
regulations and requirements, which have grown from 744,000 words in 
1955 to 7.1 million words currently. It would also allow us to slash 
the mammoth IRS bureaucracy of approximately 87,000 employees, creating 
opportunities to put their expertise to use elsewhere in the government 
or in private industry.
  Economists estimate a growth due to a flat tax of over $2 trillion in 
national wealth over 7 years, representing an increase of approximately 
$7,500 in personal wealth for every man, woman and child in America. 
This growth would also lead to the creation of 6 million new jobs.
  Investment decisions would be made on the basis of productivity 
rather than simply for tax avoidance, thus leading to even greater 
economic expansion.
  Economic forecasts indicate that interest rates would fall 
substantially, by as much as two points, as the flat tax removes many 
of the current disincentives to savings.
  Americans would be able to save or invest the $265 billion they 
currently spend every year in tax compliance.
  As tax loopholes are eliminated and the tax code is simplified, there 
will be far less opportunity for tax avoidance and fraud. Currently, 
the IRS is estimating a tax gap of $300 billion a year.
  Simplification of the tax code will allow us to save significantly on 
the $10 billion annual budget currently allocated to the Internal 
Revenue Service.
  The most dramatic way to illustrate the flat tax is to consider that 
the income tax form for the flat tax is printed on a postcard--it will 
allow all taxpayers to file their April 15 tax returns on a simple 10-
line postcard. This postcard will take 15 minutes to fill out..
  This is a win-win situation for America because it lowers the tax 
burden on the taxpayers in the lower brackets. For example in the 2006 
tax year, the standard deduction is $5,150 for a single taxpayer, 
$7,550 for a head of household and $10,300 for a married couple filing 
jointly, while the personal exemption for individuals and dependents is 
$3,300. Thus, under the current tax code, a family of four which does 
not itemize deductions would pay taxes on all income over $23,500--that 
is personal exemptions of $13,200 and a standard deduction of $10,300. 
By contrast, under my flat tax bill, that same family would receive a 
personal exemption of $30,000, and would pay tax on income over that 
amount.
  The tax loopholes enable write-offs of some $393 billion a year. What 
is eliminated under the flat tax are the loopholes, the deductions in 
this complicated code which can be deciphered, interpreted, and found 
really only by the $500-an-hour lawyers. That money is lost to the 
taxpayers. $120 billion would be saved by the elimination of fraud 
because of the simplicity of the Tax Code, the taxpayer being able to 
find out exactly what they owe.
  This bill is modeled after a proposal organized and written by two 
very distinguished law professors from Stanford University, Professor 
Hall and Professor Rabushka. Their model was first introduced in the 
Congress in the fall of 1994 by Majority Leader Richard Armey. I 
introduced the flat tax bill--the first one in the Senate--on March 2, 
1995, Senate bill 488. On October 27, 1995, I introduced a Sense of the 
Senate Resolution calling on my colleagues to expedite Congressional 
adoption of a flat tax. The Resolution, which was introduced as an 
amendment to pending legislation, was not adopted. I reintroduced my 
legislation in the 105th Congress with slight modifications to reflect 
inflation-adjusted increases in the personal allowances and dependent 
allowances. I re-reintroduced the bill on April 15, 1999, Tax Day, in a 
bill denominated as S. 822. I then introduced my flat tax legislation 
as an amendment to S. 1429, the Tax Reconciliation bill; the amendment 
was not adopted. During the 108th Congress, I introduced my flat tax 
legislation once again on April 11, 2003. On May 14, 2003, I offered an 
amendment to the Tax Reconciliation legislation urging the Senate to 
hold hearings and consider legislation providing for a flat tax; this 
amendment passed by a vote of 70 to 30 on May 15, 2003. I then 
testified on this issue at a subsequent hearing held by the Joint 
Economic Committee on November 5, 2003. On April 15, 2005 and again on 
April 10, 2007, I again reintroduced my flat tax legislation in a bill 
denominated as S. 812 and S. 1081 respectively.

  Over the years and prior to my legislative efforts on behalf of flat 
tax reform, I have devoted considerable time and attention to analyzing 
our nation's tax code and the policies which underlie it. I began the 
study of the complexities of the tax code over 40 years ago as a law 
student at Yale University. I included some tax law as part of my 
practice in my early years as an attorney in Philadelphia. In the 
spring of 1962, I published a law review article in the Villanova Law 
Review, ``Pension and Profit Sharing Plans: Coverage and Operation for 
Closely Held Corporations and Professional Associations,'' 7 Villanova 
L. Rev. 335, which in part focused on the inequity in making tax-exempt 
retirement benefits available to some kinds of businesses but not 
others. It was apparent then, as it is now, that the very complexities 
of the Internal Revenue Code could be used to give unfair advantage to 
some. Einstein himself is quoted as saying ``the hardest thing in the 
world to understand is the income tax.''
  The Hall-Rabushka model envisioned a flat tax with no deductions 
whatsoever. After considerable reflection, I decided to include in the 
legislation limited deductions for home mortgage interest for up to 
$100,000 in borrowing and charitable contributions up to $2,500. While 
these modifications undercut the pure principle of the flat tax by 
continuing the use of tax policy to promote home buying and charitable 
contributions, I believe that those two deductions are so deeply 
ingrained in the financial planning of American families that they 
should be retained as a matter of fairness and public policy--and also 
political practicality. With those two deductions maintained, passage 
of a modified flat tax will be difficult, but without them, probably 
impossible.
  In my judgment, an indispensable prerequisite to enactment of a 
modified flat tax is revenue neutrality. Professor Hall advised that 
the revenue neutrality of the Hall-Rabushka proposal, which uses a 19 
percent rate, is

[[Page S3996]]

based on a well-documented model founded on reliable governmental 
statistics. My legislation raises that rate from 19 percent to 20 
percent to accommodate retaining limited home mortgage interest and 
charitable deductions.
  This proposal taxes business revenues fully at their source, so that 
there is no personal taxation on interest, dividends, capital gains, 
gifts or estates. Restructured in this way, the tax code can become a 
powerful incentive for savings and investment--which translates into 
economic growth and expansion, more and better jobs, and raising the 
standard of living for all Americans.
  The key advantages of this flat tax plan are threefold: First, it 
will dramatically simplify the payment of taxes. Second, it will remove 
much of the IRS regulatory morass now imposed on individual and 
corporate taxpayers, and allow those taxpayers to devote more of their 
energies to productive pursuits. Third, since it is a plan which 
rewards savings and investment, the flat tax will spur economic growth 
in all sectors of the economy as more money flows into investments and 
savings accounts.
  Professors Hall and Rabushka have projected that within seven years 
of enactment, this type of a flat tax would produce a 6 percent 
increase in output from increased total work in the U.S. economy and 
increased capital formation. The economic growth would mean a $7,500 
increase in the personal income of all Americans. No one likes to pay 
taxes. But Americans will be much more willing to pay their taxes under 
a system that they believe is fair, a system that they can understand, 
and a system that they recognize promotes rather than prevents growth 
and prosperity. My flat tax legislation will afford Americans such a 
tax system.
  Mr. President, I ask unanimous consent that a copy of my flat tax 
postcard, a variety of specific cases that illustrate the fairness and 
simplicity of this flat tax, and an example flat tax table be printed 
in the Record.
  There being no objection, the material was ordered to be placed in 
the Record, as follows:

                       2008 Individual Tax Return

                         ARLEN SPECTER FLAT TAX
                    Form 1--Individual Wage Tax--2008
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Your full name with initial (if       Your social security number
 joint return, also give spouse's
 name and initial)
 
Home address (number and street       Spouse's social security number
 including apartment number or rural
 route)
 
City, town, or post office, state,
 and ZIP code
 
1. Wages, salary, pension and         1_____
 retirement benefits
2. Personal allowance (enter only     2_____
 one)
    --$25,000 for married filing
     jointly
    --$12,500 for single
    --$18,750 for single head of
     household
3. Number of dependents, not          3_____
 including spouse, multiplied by
 $6,250
4. Mortgage interest on debt up to    4_____
 $125,000 for owner-occupied home
5. Cash or equivalent charitable      5_____
 contributions (up to $3,125)
6. Total allowances and deductions    6_____
 (lines 2, 3, 4 and 5)
7. Taxable compensation (line 1 less  7_____
 line 6, if positive; otherwise
 zero)
8. Tax (20% of line 7)                8_____
9. Tax withheld by employer           9_____
10. Tax or refund due (difference     10_____
 between lines 8 and 9)
------------------------------------------------------------------------

       A variety of specific cases illustrate the fairness and 
     simplicity of this flat tax:
       CASE #1--Married couple with two children, rents home, 
     yearly income $35,000:

Under Current Law:
  Income........................................................$35,000
  Four personal exemptions......................................$14,000
  Standard deduction.............................................10,900
  Taxable income.................................................10,100
  Child Tax Credit................................................1,000

Tax due under current rates.........................................$10
  Marginal rate...................................................10.0%
  Effective tax rate................................................03%

Under Flat Tax:
  Personal allowance............................................$25,000
  Two dependents................................................$12,500
  Taxable income.................................................... $0

Tax due under flat tax...........................................\1\ $0
  Effective tax rate................................................ 0%

\1\ Decrease of $10

       Case #2--Single individual, rents home, yearly income 
     $50,000.

Under Current Law:
  Income........................................................$50,000
  One personal exemption.........................................$3,500
  Standard deduction..............................................5,450
  Taxable income................................................$41,050

Tax due under current rate....................................$6,606.25
  Marginal rate...................................................25.0%
  Effective rate..................................................13.2%

Under Flat Tax:
  Personal allowance............................................$12,500
  Taxable income................................................$37,500

Tax due under flat tax.......................................\1\ $7,500
  Effective rate..................................................15.0%
\1\ Increase of $893.75


       CASE #3--Married couple with no children, $150,000 mortgage 
     at 9%, yearly income $75,000:
Under Current Law:
  Income........................................................$75,000
  Two personal exemptions........................................$7,000
  Home mortgage deduction.......................................$13,500
  State & local taxes............................................$3,000
  Charitable deduction...........................................$1,500
  Taxable income................................................$50,000

Tax due under current rates...................................$6,697.50
  Marginal rate..................................................15.00%
  Effective tax rate..............................................8.93%

Under Flat Tax:
  Personal allowance............................................$25,000
  Home mortgage deduction.......................................$11,250
  Charitable deduction...........................................$1,500
  Taxable income................................................$37,250

Tax due under flat tax...........................................$7,450
  Effective tax rate..............................................9.93%
\1\ Increase of $752.50

       CASE #4--Married couple with three children, $250,000 
     mortgage at 9%, yearly income $125,000:

Under Current Law:
  Income.......................................................$125,000
  Five personal exemptions......................................$17,500
  Home mortgage deduction.......................................$22,500
  State & local taxes............................................$5,000
  Retirement fund deductions.....................................$6,000
  Charitable deductions..........................................$2,500
  Taxable income................................................$71,500
  Child Tax Credit...............................................$2,250

Tax due under current rates...................................$8,312.50
  Marginal rate..................................................25.00%
  Effective tax rate..............................................6.65%

Under Flat Tax:
  Personal allowance............................................$25,000
  Three dependents..............................................$18,750
  Home mortgage deduction.......................................$11,250
  Charitable deduction...........................................$2,500
  Taxable income................................................$67,500

Tax due under flat tax..........................................$13,500
  Effective tax rate..............................................10.8%

\1\ Increase of $5,187.50***

                                   ANNUAL TAXES UNDER 20% FLAT TAX FOR MARRIED COUPLE WITH TWO CHILDREN FILING JOINTLY
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Deductible                  Personal                 Effective
                           Income                                 Home         mtg       Charitable    allowance     Taxable      tax rate    Taxes owed
                                                                mortgage     interest   contribution  (w/children     income     (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
$30,000.....................................................  ...........  ...........  ............  ...........            0            0         None
30,000......................................................      $60,000       $5,400          $600      $30,000            0           0-         None
40,000......................................................       80,000        7,200           800       30,000       $2,000            1         $400
50,000......................................................      100,000        9,000         1,000       30,000       10,000            4        2,000
60,000......................................................      120,000        9,000         1,200       30,000       19,800          6.6        3,960
70,000......................................................      140,000        9,000         1,400       30,000       29,600          8.6        5,920
80,000......................................................      160,000        9,000         1,600       30,000       39,400          9.9        7,880
90,000......................................................      180,000        9,000         1,800       30,000       49,200         10.9        9,840
100,000.....................................................      200,000        9,000         2,000       30,000       59,000         11.8       11,800
125,000.....................................................      250,000        9,000         2,500       30,000       83,500         13.4       16,700
150,000.....................................................      300,000        9,000         2,500       30,000      108,500         14.5       21,700
200,000.....................................................      400,000        9,000         2,500       30,000      158,500         15.9       31,700
250,000.....................................................      500,000        9,000         2,500       30,000      208,500         16.7       41,700
500,000.....................................................    1,000,000        9,000         2,500       30,000      458,500         18.3       91,700

[[Page S3997]]

 
1,000,000...................................................    2,000,000        9,000         2,500       30,000      958,500         19.2      191,700
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Assumes home mortgage of twice annual income at a rate of 9% and charitable contributions up to 2% of annual income.

                                 -_____
                                 
      By Mr. UDALL, of New Mexico:
  S. 743. A bill to require air carriers to provide training for flight 
attendants and gate attendants regarding serving alcohol, recognizing 
intoxicated passengers, and dealing with disruptive passengers, and for 
other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. UDALL of New Mexico. Mr. President, I rise today to introduce the 
Airline Personnel Training Enhancement Act of 2009 and to ask for 
Senators' support for this important measure to improve safety in the 
air and on the ground.
  The story of this legislation begins with a tragedy. On November 11, 
2006, Paul and Renee Gonzales were driving back from a soccer 
tournament with four of their daughters. They were roughly 1 hour from 
their home in Las Vegas, NM, when they saw Dana Papst's vehicle. Papst 
had been driving on the wrong side of I-25 for about 5 miles before his 
car collided with the Gonzales's minivan at 60 to 75 miles per hour. 
Five of the six members of the Gonzales family were killed. Papst later 
died at the hospital.
  I cannot say for certain whether this tragedy could have been 
prevented by a change in laws. But I do know this: A few hours before 
Dana Papst took six lives, including his own, he was flying back to 
Albuquerque after a business trip. On that flight, he was noticeably 
intoxicated. Yet he was served alcohol by airline personnel. When his 
truck collided with the Gonzales's minivan, his blood-alcohol level was 
four times the legal limit.
  When I heard about Dana Papst and the Gonzales family, I began to 
look for legislation that could prevent tragedies like this in the 
future. I learned that under existing law, Papst should not have been 
served alcohol on his flight. In fact, somebody as drunk as Papst never 
should have been allowed on that flight. But airlines are not required 
to teach their personnel how to handle an intoxicated passenger.
  To address this problem, I introduced the Airline Personnel Training 
Enhancement Act in the other body during the last Congress. I am 
introducing it again today.
  This legislation requires air carriers to train their employees on 
recognizing and dealing with drunk or disruptive passengers. This 
training will help employees make informed decisions when allowing 
people to board flights, when deciding whether a passenger should be 
served alcohol, and when dealing with belligerent passengers. Many 
States require people who serve alcohol in restaurants and bars to be 
properly trained. This legislation simply closes a large and 
potentially deadly loophole. I hope it will lead to fewer deaths on our 
roads.
  New Mexico, like so many other States, has too many crosses on its 
highways, too many stories of loss and regret. Drunk driving claimed 
155 New Mexico lives the year Paul and Renee Gonzales were killed. It 
claimed 188 the year before, and 211 the year before that. We have the 
power to help reduce these numbers. I hope we will use it.
  But my legislation is not just about drunk driving. As I began to 
study the training of airline personnel, I discovered a large and 
frightening threat to the traveling public. Outbursts by belligerent 
passengers are more and more common. But airline personnel are rarely 
trained on how to handle these situations.
  Incidents of ``air rage'' increased 400 percent since 2000. There are 
an estimated 10,000 cases each year in the United States alone. Airline 
security experts estimate that alcohol is the underlying cause of the 
majority of incidents. These incidents can pose a serious threat to 
passengers and personnel. In some cases, flights have been diverted 
from their destination in order to land where threatening passengers 
could be arrested.
  Airline personnel are on the front line for ensuring flight safety. 
Gate attendants are in the best position to keep drunk or belligerent 
passengers off flights. Today, flight attendants are often the only 
personnel capable of maintaining order in a plane's cabin.
  Before 9/11, a flight's captain or co-pilot would leave the cockpit 
to assist the flight crew when a passenger made threats or became 
abusive. Today, the cockpit door is locked for safety. Flight 
attendants have more responsibility for keeping passengers safe.
  Unfortunately, airlines do not have to give their employees the 
skills to meet their responsibilities. One study found that ``the lack 
of attention paid by the aviation community to the importance of the 
flight attendant's role in a commercial flight has led to recurring 
instances of abuse of cabin crew by passengers and the inability of the 
cabin crew to restrain violent passenger[s]. . . .''
  The Airline Personnel Training Enhancement Act will help remedy this 
unsafe and unacceptable situation. This legislation is supported by the 
Association of Flight Attendants and Mothers Against Drunk Driving. It 
is also a commonsense response to a serious problem. It will make our 
skies and our roads safer. I hope Senators will support it.

                          ____________________