[Congressional Record Volume 157, Number 167 (Thursday, November 3, 2011)]
[Senate]
[Pages S7128-S7138]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Ms. SNOWE:
S. 1801. A bill to amend the Internal Revenue Code of 1986 to extend
certain provisions of the Creating Small Business Jobs Act of 2010, and
for other purposes; to the Committee on Finance.
Ms. SNOWE. Mr. President, today I introduce the Small Business Tax
Extenders Act of 2011, targeted tax relief legislation to extend, for
one year, the essential tax relief provisions that were included in the
Small Business Jobs Act of 2010.
When the Small Business Jobs Act was crafted, I worked closely with
Finance Committee Chair Baucus and then Ranking Member Grassley to
ensure the critical small business tax provisions that reflected our
shared priorities were included in that legislation. I sincerely
appreciate all of their hard work on that legislation.
As the former Chair and now Ranking Member of the Small Business
Committee, I am well aware of the urgent imperative of job creation in
our country. According to the Bureau of Labor Statistics, the average
annual unemployment rate for 2010 was 9.6 percent. For 27 out of the
past 32 months the unemployment rate has been at 9 percent or above.
About 45 percent of the unemployed have been out of work for at least 6
months--a level previously unseen in the 6 decades since World War II.
At a time when 14 million Americans are still unemployed, and have
been so for the longest period since record keeping began in 1948, our
government should be taking every possible step to ease the burden on
job creators. We
[[Page S7129]]
must help create an environment that is conducive to small businesses'
job creation. One critical way to do so is through targeted small
business tax incentives.
That is why as a senior member of the Senate Finance Committee, I
have been urging this administration to champion tax reform and in
fact, I led a panel on the issue as part of the Economic Summit at the
White House more than 2 years ago.
The individual income tax form has more than tripled in length from
52 pages for 1980 to 174 pages for 2009. American taxpayers spend 7.6
billion hours and shell out $140 billion, or 1 percent of GDP, just
struggling to comply with tax filing requirements. This is not
surprising as there has been 15,000 changes to the tax code since the
last overhaul in 1986.
Alarmingly, the tax code is also needlessly handcuffing our ability
to compete in today's integrated global economy, as we strain under the
second highest corporate tax burden in the industrialized world. While
this administration and the Senate majority are pondering whether we
should reform our tax code, small businesses continued to struggle with
the current tax regime at the expense of creating more jobs and growing
operations.
While I continue to advocate for comprehensive tax reform, there are
certain measures that, although not a silver bullet, should be passed
right away to help improve the economic environment for small
businesses. The Small Business Tax Extenders Act of 2011 is a critical
example. This legislation contains provisions I have championed for
years to provide small businesses greater cash flow, incentivizing
their investments, and increasing tax fairness.
The lifeblood of a small business is its cash flow and this bill
contains several provisions to improve it. One of these provisions will
address a fundamental injustice of the tax code by extending for
another year deduction for health insurance premiums against not only
income taxes but also against payroll taxes. At a rate of 15.3 percent,
the self-employment, or SECA, tax is imposed on the health benefits of
business owners. This is a costly injustice that makes health insurance
just that much more expensive at a time when insurance costs are
already prohibitively expensive.
In the coming year we will certainly see health premiums rise, making
it all the more onerous on small businesses to provide critical
benefits to their employees. Allowing the full deduction for health
insurance is critical for its affordability. I was thrilled that we
were able to address this injustice in the Small Business Jobs Act of
2010, and I sincerely hope that this provision can be extended for
another year.
This legislation will also extend for 1 year a provision permitting
general business credits to be carried back 5 years and taken against
the Alternative Minimum Tax, AMT. Before the enactment of the Small
Business Jobs Act, a business's unused general business credit could be
carried back to offset taxes paid in the previous year, and the
remaining amount could be carried forward for 20 years to offset future
tax liabilities.
The 5-year carryback of credits will allow business owners to reach
back to prior years when they had taxable income to offset prior tax
liability with these credits and get immediate cash infusion. Business
owners can use this cash as they choose, but as we have seen with net
operating loss relief, they use these funds for anything from meeting
payroll to investing in new equipment. The same principle applies with
respect to the provision that allows credits to be used against the
AMT.
When Congress implements policies through the tax code, it is with
intent that businesses will utilize such incentives to do what they do
best--grow their operations which in turns leads to hiring additional
employees. Unfortunately during a downward business cycle that we have
been experiencing for more than two years, businesses do not have
income tax liability that can be offset with a credit. It is rather
simple: if you do not have enough revenue to claim a credit, that
credit is of little use to you.
An incredible benefit of the carryback and the use of general
business credits against the AMT is to make the small business health
insurance tax credits enacted earlier this year more effective and make
health insurance more affordable for business owners to offer to their
employees.
This bill would also extend for 1 year the availability of the so-
called section 179 expensing to give businesses the option of writing
off the cost of qualifying capital expenses in the year of acquisition
instead of recovering these costs over time through depreciation, and
allow businesses to take advantage of higher limits for the so-called
section 179 expensing. Under this provision, up to $250,000 can be
expensed for real property and up to $250,000 for equipment, or up to
the full $500,000 for just equipment.
Expanding Section 179 expensing has been a significant Small Business
Committee bipartisan priority of mine, and former Small Business
Committee Chair Kerry and current Chair Landrieu, as reflected in no
fewer than three separate bills in the previous Congress: the Small
Business Stimulus Act of 2009, S. 156, Snowe-Kerry-Landrieu; the Small
business Expensing Permanency Act of 2009, S. 2822, Snowe-Landrieu; and
the Small Business Job Creation Act of 2010, S. 3103, Snowe.
I want my colleagues to understand that this provision is expected to
confer a major economic boost because it certainly speeds up the
recovery time on these investments. Extending this provision will help
the businesses modernize while aiding construction firms and their
employees.
Additionally, the Small Business Jobs Act of 2010 provided for a
temporary reduction in the recognition period for S corporation built-
in gains tax. When businesses move from being a corporation with two
levels of tax to an S corporation, they have generally been required to
hold their ``retained earnings'' for up to 10 years. This prevents
owners from taking the retained earnings as distributions where only
income taxes are owed rather than both corporate income tax at one
level and then personal income tax at the second. Recent law changes
have shortened this holding period to 7 years, but that is still too
long.
By infusing capital, of their own retained earnings, this provision
in the Small Business Jobs Act enabled companies to reduce the holding
period from 7 years to 5 years so that companies that made the
conversion before 2006 can redeploy this capital for use in their
business. Extending this provision also underscores how vital retained
earnings are for small businesses.
A final provision would extend for one year a complete exclusion on
capital gains attributable to small business stock held for 5 years.
Extending this measure will help further critical investment in our
Nation's small businesses. This is a longstanding priority of mine and
of Senator John Kerry, former Chair of the Small Business Committee and
my fellow colleague on the Finance Committee. The Kerry-Snowe Invest in
Small Business Act of 2009 included this exclusion, which we fought to
incorporate into the Small Business Jobs Act.
It is essential that we pass these small business tax extensions. I
urge my colleagues to support this legislation so we can ensure that
our Nation's small businesses and their employees are provided with
much needed tax relief.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1801
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Small
Business Jobs Tax Extenders Act of 2011''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; etc.
Sec. 2. Findings.
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TITLE I--EXTENSION OF SMALL BUSINESS TAX RELIEF
Sec. 101. Extension of temporary exclusion of 100 percent of gain on
certain small business stock.
Sec. 102. Extension of 5-year carryback of general business credits of
eligible small businesses.
Sec. 103. Extension of alternative minimum tax rules for general
business credits of eligible small businesses.
Sec. 104. Extension of temporary reduction in recognition period for
built-in gains tax.
Sec. 105. Extension of increased expensing limitations and treatment of
certain real property as section 179 property.
Sec. 106. Extension of bonus depreciation.
Sec. 107. Extension of special rule for long-term contract accounting.
Sec. 108. Extension of increased amount allowed as a deduction for
start-up expenditures.
Sec. 109. Extension of allowance of deduction for health insurance in
computing self-employment taxes.
TITLE II--OFFSETTING PROVISIONS
Sec. 201. Expansion of affordability exception to individual mandate.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) A vibrant and growing small business sector is critical
to the recovery of the economy of the United States.
(2) Small businesses represent 99.7 percent of all employer
firms and generate approximately two-thirds of net new jobs.
(3) Broadening the tax base and lowering statutory rates
through comprehensive tax reform is preferable to short term
tax rate extensions.
(4) There is no consensus on Congressional passage and
implementation of such reform at this time; it is therefore
critical that tax relief for small businesses promulgated in
the Small Business Jobs Act of 2010 be extended.
TITLE I--EXTENSION OF SMALL BUSINESS TAX RELIEF
SEC. 101. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF
GAIN ON CERTAIN SMALL BUSINESS STOCK.
(a) In General.--Paragraph (4) of section 1202(a) is
amended--
(1) by striking ``January 1, 2012'' and inserting ``January
1, 2013'', and
(2) by striking ``and 2011'' and inserting ``2011, and
2012'' in the heading thereof.
(b) Effective Date.--The amendments made by this section
shall apply to stock acquired after December 31, 2011.
SEC. 102. EXTENSION OF 5-YEAR CARRYBACK OF GENERAL BUSINESS
CREDITS OF ELIGIBLE SMALL BUSINESSES.
(a) In General.--Subparagraph (A) of section 39(a)(4) is
amended by ``or 2011'' after ``2010''.
(b) Effective Date.--The amendment made by this section
shall apply to credits determined in taxable years beginning
after December 31, 2010.
SEC. 103. EXTENSION OF ALTERNATIVE MINIMUM TAX RULES FOR
GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL
BUSINESSES.
(a) In General.--Subparagraph (A) of section 38(c)(5) is
amended by ``or 2011'' after ``2010''.
(b) Effective Date.--The amendments made by this section
shall apply to credits determined in taxable years beginning
after December 31, 2010, and to carrybacks of such credits.
SEC. 104. EXTENSION OF TEMPORARY REDUCTION IN RECOGNITION
PERIOD FOR BUILT-IN GAINS TAX.
(a) In General.--Clause (ii) of section 1374(d)(7)(B) is
amended by inserting ``or 2012,'' after ``2011''.
(b) Conforming Amendment.--The heading for section
1372(d)(7)(B) is amended by striking ``and 2011'' and
inserting ``2011, and 2012''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 105. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND
TREATMENT OF CERTAIN REAL PROPERTY AS SECTION
179 PROPERTY.
(a) In General.--Section 179(b) is amended--
(1) by striking ``2010 or 2011'' each place it appears in
paragraph (1)(B) and (2)(B) and inserting ``2010, 2011, or
2012'',
(2) by striking ``2012'' each place it appears in paragraph
(1)(C) and (2)(C)and inserting ``2013'', and
(3) by striking ``2012'' each place it appears in paragraph
(1)(D) and (2)(D) and inserting ``2013''.
(b) Inflation Adjustment.--Subparagraph (A) of section
179(b)(6) is amended by striking ``2012'' and inserting
``2013''.
(c) Computer Software.--Section 179(d)(2)(A)(ii) is amended
by striking ``2013'' and inserting ``2014''.
(d) Election.--Section 179(c)(2) is amended by striking
``2013'' and inserting ``2014''.
(e) Special Rules for Treatment of Qualified Real
Property.--Section 179(f)(1) is amended by striking ``2010 or
2011'' and inserting ``2010, 2011, or 2012''.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 106. EXTENSION OF BONUS DEPRECIATION.
(a) In General.--Paragraph (2) of section 168(k) is
amended--
(1) by striking ``January 1, 2014'' in subparagraph (A)(iv)
and inserting ``January 1, 2015'', and
(2) by striking ``January 1, 2013'' each place it appears
and inserting ``January 1, 2014''.
(b) 100 Percent Expensing.--Paragraph (5) of section 168(k)
is amended--
(1) by striking ``January 1, 2013'' and inserting ``January
1, 2014'', and
(2) by striking ``January 1, 2012'' each place it appears
and inserting ``January 1, 2013''.
(c) Extension of Election to Accelerate the AMT Credit in
Lieu of Bonus Depreciation.--
(1) In general.--Subclause (II) of section
168(k)(4)(D)(iii) is amended by striking ``2013'' and
inserting ``2014''.
(2) Round 3 extension property.--Paragraph (4) of section
168(k) is amended by adding at the end the following new
subparagraph:
``(J) Special rules for round 3 extension property.--
``(i) In general.--In the case of round 3 extension
property, this paragraph shall be applied without regard to--
``(I) the limitation described in subparagraph (B)(i)
thereof, and
``(II) the business credit increase amount under
subparagraph (E)(iii) thereof.
``(ii) Taxpayers previously electing acceleration.--In the
case of a taxpayer who made the election under subparagraph
(A) for its first taxable year ending after March 31, 2008, a
taxpayer who made the election under subparagraph (H)(ii) for
its first taxable year ending after December 31, 2008, or a
taxpayer who made the election under subparagraph (I)(iii)
for its first taxable year ending after December 31, 2010--
``(I) the taxpayer may elect not to have this paragraph
apply to round 3 extension property, but
``(II) if the taxpayer does not make the election under
subclause (I), in applying this paragraph to the taxpayer the
bonus depreciation amount, maximum amount, and maximum
increase amount shall be computed and applied to eligible
qualified property which is round 3 extension property.
The amounts described in subclause (II) shall be computed
separately from any amounts computed with respect to eligible
qualified property which is not round 2 extension property.
``(iii) Taxpayers not previously electing acceleration.--In
the case of a taxpayer who neither made the election under
subparagraph (A) for its first taxable year ending after
March 31, 2008, nor made the election under subparagraph
(H)(ii) for its first taxable year ending after December 31,
2008, nor made the election under subparagraph (I)(iii) for
its first taxable year ending after December 31, 2010--
``(I) the taxpayer may elect to have this paragraph apply
to its first taxable year ending after December 31, 2011, and
each subsequent taxable year, and
``(II) if the taxpayer makes the election under subclause
(I), this paragraph shall only apply to eligible qualified
property which is round 3 extension property.
``(iv) Round 3 extension property.--For purposes of this
subparagraph, the term `round 3 extension property' means
property which is eligible qualified property solely by
reason of the extension of the application of the special
allowance under paragraph (1) pursuant to the amendments made
by section 7(a) of the Small Business Jobs Tax Extenders Act
of 2011 (and the application of such extension to this
paragraph pursuant to the amendment made by section 7(c)(1)
of such Act).''.
(d) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 is
amended by striking ``January 1, 2013'' and inserting
``January 1, 2014''.
(2) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking ``pre-january 1, 2013'' and inserting
``pre-january 1, 2014''.
(3) Paragraph (5) of section 168(l) is amended--
(A) by striking ``and'' at the end of subparagraph (A),
(B) by redesignating subparagraph (C) as subparagraph (B),
and
(C) by inserting after subparagraph (A) the following new
subparagraph:
``(B) by substituting `January 1, 2013' for `January 1,
2014' in clause (i) thereof, and''.
(4) Subparagraph (C) of section 168(n)(2) is amended by
striking ``January 1, 2013'' and inserting ``January 1,
2014''.
(5) Subparagraph (D) of section 1400L(b)(2) is amended by
striking ``January 1, 2013'' and inserting ``January 1,
2014''.
(6) Subparagraph (B) of section 1400N(d)(3) is amended by
striking ``January 1, 2013'' and inserting ``January 1,
2014''.
(e) Effective Dates.--The amendments made by this section
shall apply to property placed in service after December 31,
2011, in taxable years ending after such date.
SEC. 107. EXTENSION OF SPECIAL RULE FOR LONG-TERM CONTRACT
ACCOUNTING.
(a) In General.--Clause (ii) of section 460(c)(6)(B) is
amended by striking ``January 1, 2011 (January 1, 2012'' and
inserting ``January 1, 2012 (January 1, 2013''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2010.
SEC. 108. EXTENSION OF INCREASED AMOUNT ALLOWED AS A
DEDUCTION FOR START-UP EXPENDITURES.
(a) In General.--Paragraph (3) of section 195(b) is
amended--
[[Page S7131]]
(1) by inserting ``or 2011'' after ``2010'', and
(2) by inserting ``and 2011'' in the heading thereof.
(b) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2010.
SEC. 109. EXTENSION OF ALLOWANCE OF DEDUCTION FOR HEALTH
INSURANCE IN COMPUTING SELF-EMPLOYMENT TAXES.
(a) In General.--Paragraph (4) of section 162(l) is amended
by striking ``December 31, 2010'' and inserting ``December
31, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2010.
TITLE II--OFFSETTING PROVISIONS
SEC. 201. EXPANSION OF AFFORDABILITY EXCEPTION TO INDIVIDUAL
MANDATE.
Section 5000A(e)(1) is amended by striking ``8 percent''
each place it appears and inserting ``5 percent''.
______
By Mr. UDALL of Colorado (for himself, Mrs. Gillibrand, Mr.
Merkley, and Mr. Bennet):
S. 1802. A bill to authorize the Secretary of the Interior to carry
out programs and activities that connect Americans, especially
children, youth, and families, with the outdoors; to the Committee on
Health, Education, Labor, and Pensions.
Mr. UDALL of Colorado. Mr. President, today I speak in support of a
bill I am introducing called the Healthy Kids Outdoor Act of 2011. This
bill will help the development of locally-based plans that will
encourage kids to enjoy one of our nation's most cherished past-times:
recreating outdoors.
I am introducing the Healthy Kids Outdoors Act of 2011 with the
support of Senators Gillibrand, Merkley and Bennet. My friend and
colleague Representative Kind of Wisconsin is introducing companion
legislation today in the U.S. House of Representatives. I want to thank
Rep. Kind for his leadership on these issues over the years. I
especially want to thank him for the opportunity to steal his good idea
and appropriate it for myself in the Senate.
Specifically, the Healthy Kids Outdoors Act authorizes the U.S.
Secretary of the Interior to provide grants, one per State, to eligible
organizations for the development of State-level outdoor recreation
plans. Working in cooperation with local partners, the eligible
entities will develop plans designed to ensure that States have
appropriate programs and infrastructure in place to help Americans
effectively connect with the outdoors. These plans supplement current
outdoor recreation planning by emphasizing how to use outdoor
recreation resources and infrastructure, such as public parks,
transportation and health systems, to facilitate outdoor activities.
The plans supported by Federal funding under this act must be updated
every five years based on evaluations of each state strategy and
lessons learned from their implementation. Additionally, in order to
ensure that state and local partners are contributing to this effort,
funding recipients must provide a 25-percent non-federal cost share.
Finally, this bill requires the administration to develop a national
strategy to get Americans active outdoors and evaluate the health
impacts of the State strategies authorized under the legislation. The
national strategy, to be developed with significant public
participation, should align with the State strategies and identify
barriers to and opportunities for outdoor activities.
Why is this important you might ask, especially at a time when we are
looking at ways to cut spending and other programs?
We live in an increasingly sedentary world that makes it more
difficult for our Nation to reach the heights that it can achieve.
Today's society provides more distractions from active lifestyles and
the natural world around us than ever before. This is particularly true
among children, who spend on average just 4-7 minutes a day in
unstructured outdoor play while spending an average of 7.5 hours a day
in front of electronic media. Partially as a result of this, obesity
has become a major public health problem. Today, one in three children
is either overweight or obese, whereas only about 4 percent of children
in 1960 were. Working together, we must find proactive ways to reverse
this harmful trend.
Being overweight or obese can lead to many chronic health conditions,
including heart disease, stroke, and diabetes. All of these conditions
are costly for health care purchasers and patients, reduce quality of
life, and are among the top 6 leading causes of death each year. The
good news is that, in the vast majority of cases, obesity is completely
preventable. Particularly for children, if we teach them good eating
and fitness habits early in life, they will have a much better shot at
maintaining a healthy weight later in life. In addition, research
demonstrates the myriad mental health benefits of active lifestyles
that make use of green spaces outside the home.
Furthermore, spending time in the outdoors, connecting with our
public lands and waters and green spaces, furthers America's
conservation legacy. For example, research demonstrates that hunters
who become engaged in the sport as children are among the most active
and interested sportsmen as adults.
Spending time in the outdoors also supports the outdoor recreation
industry. We have a large and growing industry in this country of
supply stores, manufacturers, guides, hotels, and other important
businesses that are the backbone of many rural communities. In fact,
outdoor recreation activities add over $730 billion to the national
economy every year. In this time of economic uncertainty, outdoor
recreation is one of the bright spots in our economy.
Additionally, at a time when disparities in health status and health
insurance rates for minority populations are at an all-time high,
particularly in my State of Colorado, the common sense goals of the
Healthy Kids Outdoors Act can help level the playing field for good
health across America. This legislation will make it easier for all
Americans, regardless of cultural differences, geography or socio-
economic status, especially children and families, to connect with
healthy, active, outdoor lifestyles and the natural world. By doing so,
we can combat the obesity epidemic, improve public health overall and
bolster America's proud legacy of conservation and outdoor recreation
economy.
Finally, I want to note that this bill could play a small role in
making sure our children, as they reach adulthood, are qualified to
serve in our U.S. military, if they so choose. As a member of the
Senate Armed Services Committee, I have seen firsthand the studies that
have shown that greater and greater numbers of young adults are
ineligible to serve in the Armed Forces due to disqualifying health
factors such as being overweight. Nearly one in four applicants is
rejected for being overweight, which is the most common reason for
medical disqualification. It's not a stretch to say that a more fit
population can result in a more secure nation.
This legislation is a small but important step we can take to promote
healthy, active lifestyles supporting the use and enjoyment of our
natural world. I want to thank the Outdoor Alliance for Kids, whose
members include many of the country's leading conservation groups and
outdoor recreation companies, for its support and help developing this
bill. I also want to thank the Campaign to End Obesity for their
endorsement of it. I look forward to working with my colleagues to
advance this legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1802
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Healthy Kids Outdoors Act of
2011''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) Children today are spending less time outdoors than any
generation in human history, as evidenced by studies that
show children enjoy half as much time outdoors today as they
did just 20 years ago, while spending more than 7\1/2\ hours
every day in front of electronic media.
(2) The health of our children is at risk as evidenced by
the growing obesity crisis where, during the 20-year period
between 1991 and 2011, the childhood obesity rate has more
than doubled and the adolescent obesity rate has tripled,
costing the economy of the United States billions of dollars
each year.
(3) Our military readiness is declining as nearly 1 in 4
applicants to the military is rejected for being overweight
or obese, which is the most common reason for medical
disqualification.
[[Page S7132]]
(4) Research has shown that military children and families
are facing increased stress and mental strain and challenges
due to multiple, extended deployments. Military family
service organizations have developed programs that connect
military children and families with positive, meaningful
outdoor experiences that benefit mental and physical health,
but they lack sufficient resources to meet increasing demand.
(5) In addition to the negative economic impact of
childhood obesity, the outdoor retail industry, many local
tourist destinations or ``gateway communities'', and State
fish and wildlife agencies rely on revenue generated when
individuals spend time outdoors to create jobs in local
communities.
(6) Over the past several years, urbanization, changing
land use patterns, increasing road traffic, and inadequate
solutions to addressing these challenges in the built
environment have combined to make it more difficult for many
Americans to walk or bike to schools, parks, and play areas
or experience the natural environment in general.
(7) Visitation to our Nation's public lands has declined or
remained flat in recent years, and yet, connecting with
nature and the great outdoors in our communities is critical
to fostering the next generation of outdoor enthusiasts who
will visit, appreciate, and become stewards of our Nation's
public lands.
(8) It takes many dedicated men and women to work to
preserve, protect, enhance, and restore America's natural
resources, and with an aging workforce in the natural
resource professions, it is critical for the next generation
to have an appreciation for nature and be ready to take over
these responsibilities.
(9) Spending time outdoors in nature is beneficial to our
children's physical, mental, and emotional health and has
been proven to decrease symptoms of attention deficit and
hyperactivity disorder, stimulate brain development, improve
motor skills, result in better sleep, reduce stress, increase
creativity, improve mood, and reduce children's risk of
developing myopia.
(10) Children who spend time playing outside are more
likely to take risks, seek out adventure, develop self-
confidence, and respect the value of nature.
(11) Spending time in green spaces outside the home,
including parks, play areas, and garden, can increase
concentration, inhibition of initial impulses, and self-
discipline and has been shown to reduce stress and mental
fatigue. In one study, children who were exposed to greener
environments in a public housing area demonstrated less
aggression, violence, and stress.
(12) As children become more disconnected from the natural
world, the hunting and angling conservation legacy of America
is at risk.
(13) Conservation education and outdoor recreation
experiences such as camping, hiking, boating, hunting,
fishing, archery, recreational shooting, wildlife watching,
and others are critical to engaging young people in the
outdoors.
(14) Hunters and anglers play a critical role in
reconnecting young people with nature, protecting our natural
resources, and fostering a lifelong understanding of the
value of conserving the natural world.
(15) Research demonstrates that hunters who become engaged
in hunting as children are among the most active and
interested hunters as adults. The vast majority of hunters
report they were introduced to hunting between the ages of 10
and 12, and the overwhelming majority of children are
introduced to hunting by an adult.
(16) A direct childhood experience with nature before the
age of 11 promotes a long-term connection to nature.
(17) Parks and recreation, youth-serving, service-learning,
conservation, health, education, and built-environment
organizations, facilities, and personnel provide critical
resources and infrastructure for connecting children and
families with nature.
(18) Place-based service-learning opportunities use our
lands and waters as the context for learning by engaging
students in the process of exploration, action, and
reflection. Physical activity outdoors connected with
meaningful community service to solve real-world problems,
such as removing invasive plants or removing trash from a
streambed, strengthens communities by engaging youth as
citizen stewards.
(19) States nationwide and their community based partners
have some notable programs that connect children and families
with nature; however, most States lack sufficient resources
and a comprehensive strategy to effectively engage State
agencies across multiple fields.
(20) States need to engage in cross-sector agency and
nonprofit collaboration that involves public health and
wellness, parks and recreation, transportation and city
planning, and other sectors focused on connecting children
and families with the outdoors to increase coordination and
effective implementation of the policy tools and programs
that a State can bring to bear to provide healthy outdoor
opportunities for children and families.
SEC. 3. DEFINITIONS.
In this Act:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State; or
(B) a consortium from one State that may include such State
and municipalities, entities of local or tribal governments,
parks and recreation departments or districts, school
districts, institutions of higher education, or nonprofit
organizations.
(2) Local partners.--The term ``local partners'' means a
municipality, entity of local or tribal government, parks and
recreation departments or districts, Indian tribe, school
district, institution of higher education, nonprofit
organization, or a consortium of local partners.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(4) State.--The term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa,
the Commonwealth of the Northern Mariana Islands, any other
territory or possession of the United States, or any Indian
tribe.
SEC. 4. COOPERATIVE AGREEMENTS FOR DEVELOPMENT OR
IMPLEMENTATION OF HEALTHY KIDS OUTDOORS STATE
STRATEGIES.
(a) In General.--The Secretary is authorized to issue one
cooperative agreement per State to eligible entities to
develop, implement, and update a 5-year State strategy, to be
known as a ``Healthy Kids Outdoors State Strategy'', designed
to encourage Americans, especially children, youth, and
families, to be physically active outdoors.
(b) Submission and Approval of Strategies.--
(1) Applications.--An application for a cooperative
agreement under subsection (a) shall--
(A) be submitted not later than 120 days after the
Secretary publishes guidelines under subsection (f)(1); and
(B) include a Healthy Kids Outdoors State Strategy meeting
the requirements of subsection (c) or a proposal for
development and submission of such a strategy.
(2) Approval of strategy; peer review.--Not later than 90
days after submission of a Healthy Kids Outdoors State
Strategy, the Secretary shall, through a peer review process,
approve or recommend changes to the strategy.
(3) Strategy update.--An eligible entity receiving funds
under this section shall update its Healthy Kids Outdoors
State Strategy at least once every 5 years. Continued funding
under this section shall be contingent upon submission of
such updated strategies and reports that document impact
evaluation methods consistent with the guidelines in
subsection (f)(1) and lessons learned from implementing the
strategy.
(c) Comprehensive Strategy Requirements.--The Healthy Kids
Outdoors State Strategy under subsection (a) shall include--
(1) a description of how the eligible entity will encourage
Americans, especially children, youth, and families, to be
physically active in the outdoors through State, local, and
tribal--
(A) public health systems;
(B) public parks and recreation systems;
(C) public transportation and city planning systems; and
(D) other public systems that connect Americans, especially
children, youth, and families, to the outdoors;
(2) a description of how the eligible entity will partner
with nongovernmental organizations, especially those that
serve children, youth, and families, including those serving
military families and tribal agencies;
(3) a description of how State agencies will collaborate
with each other to implement the strategy;
(4) a description of how funding will be spent through
local planning and implementation subgrants under subsection
(d);
(5) a description of how the eligible entity will evaluate
the effectiveness of, and measure the impact of, the
strategy, including an estimate of the costs associated with
such evaluation;
(6) a description of how the eligible entity will provide
opportunities for public involvement in developing and
implementing the strategy;
(7) a description of how the strategy will increase
visitation to Federal public lands within the state; and
(8) a description of how the eligible entity will leverage
private funds to expand opportunities and further implement
the strategy.
(d) Local Planning and Implementation.--
(1) In general.--A Healthy Kids Outdoors State Strategy
shall provide for subgrants by the cooperative agreement
recipient under subsection (a) to local partners to implement
the strategy through one or more of the program activities
described in paragraph (2).
(2) Program activities.--Program activities may include--
(A) implementing outdoor recreation and youth mentoring
programs that provide opportunities to experience the
outdoors, be physically active, and teach skills for lifelong
participation in outdoor activities, including fishing,
hunting, recreational shooting, archery, hiking, camping,
outdoor play in natural environments, and wildlife watching;
(B) implementing programs that connect communities with
safe parks, green spaces, and outdoor recreation areas
through affordable public transportation and trail systems
that encourage walking, biking, and increased physical
activity outdoors;
(C) implementing school-based programs that use outdoor
learning environments,
[[Page S7133]]
such as wildlife habitats or gardens, and programs that use
service learning to restore natural areas and maintain
recreational assets; and
(D) implementing education programs for parents and
caregivers about the health benefits of active time outdoors
to fight obesity and increase the quality of life for
Americans, especially children, youth, and families.
(e) Priority.--In making cooperative agreements under
subsection (a) and subgrants under subsection (d)(1), the
Secretary and the recipient under subsection (a),
respectively, shall give preference to entities that serve
individuals who have limited opportunities to experience
nature, including those who are socioeconomically
disadvantaged or have a disability or suffer
disproportionately from physical and mental health stressors.
(f) Guidelines.--Not later than 180 days after the date of
the enactment of this Act, and after notice and opportunity
for public comment, the Secretary shall publish in the
Federal Register guidelines on the implementation of this
Act, including guidelines for--
(1) developing and submitting strategies and evaluation
methods under subsection (b); and
(2) technical assistance and dissemination of best
practices under section 7.
(g) Reporting.--Not later than 2 years after the Secretary
approves the Healthy Kids Outdoors State Strategy of an
eligible entity receiving funds under this section, and every
year thereafter, the eligible entity shall submit to the
Secretary a report on the implementation of the strategy
based on the entity's evaluation and assessment of meeting
the goals specified in the strategy.
(h) Allocation of Funds.--An eligible entity receiving
funding under subsection (a) for a fiscal year--
(1) may use not more than 5 percent of the funding for
administrative expenses; and
(2) shall use at least 95 percent of the funding for
subgrants to local partners under subsection (d).
(i) Match.--An eligible entity receiving funding under
subsection (a) for a fiscal year shall provide a 25-percent
match through in-kind contributions or cash.
SEC. 5. NATIONAL STRATEGY FOR ENCOURAGING AMERICANS TO BE
ACTIVE OUTDOORS.
(a) In General.--Not later than September 30, 2012, the
President, in cooperation with appropriate Federal
departments and agencies, shall develop and issue a national
strategy for encouraging Americans, especially children,
youth, and families, to be physically active outdoors. Such a
strategy shall include--
(1) identification of barriers to Americans, especially
children, youth, and families, spending healthy time outdoors
and specific policy solutions to address those barriers;
(2) identification of opportunities for partnerships with
Federal, State, tribal, and local partners;
(3) coordination of efforts among Federal departments and
agencies to address the impacts of Americans, especially
children, youth, and families, spending less active time
outdoors on--
(A) public health, including childhood obesity, attention
deficit disorders and stress;
(B) the future of conservation in the United States; and
(C) the economy;
(4) identification of ongoing research needs to document
the health, conservation, economic, and other outcomes of
implementing the national strategy and State strategies;
(5) coordination and alignment with Healthy Kids Outdoors
State Strategies; and
(6) an action plan for implementing the strategy at the
Federal level.
(b) Strategy Development.--
(1) Public participation.--Throughout the process of
developing the national strategy under subsection (a), the
President may use, incorporate, or otherwise consider
existing Federal plans and strategies that, in whole or in
part, contribute to connecting Americans, especially
children, youth, and families, with the outdoors and shall
provide for public participation, including a national summit
of participants with demonstrated expertise in encouraging
individuals to be physically active outdoors in nature.
(2) Updating the national strategy.--The President shall
update the national strategy not less than 5 years after the
date the first national strategy is issued under subsection
(a), and every 5 years thereafter. In updating the strategy,
the President shall incorporate results of the evaluation
under section 6.
SEC. 6. NATIONAL EVALUATION OF HEALTH IMPACTS.
The Secretary, in coordination with the Secretary of Health
and Human Services, shall--
(1) develop recommendations for appropriate evaluation
measures and criteria for a study of national significance on
the health impacts of the strategies under this Act; and
(2) carry out such a study.
SEC. 7. TECHNICAL ASSISTANCE AND BEST PRACTICES.
The Secretary shall--
(1) provide technical assistance to grantees under section
4 through cooperative agreements with national organizations
with a proven track record of encouraging Americans,
especially children, youth, and families, to be physically
active outdoors; and
(2) disseminate best practices that emerge from strategies
funded under this Act.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
the Secretary to carry out this Act--
(1) $1,000,000 for fiscal year 2013;
(2) $2,000,000 for fiscal year 2014;
(3) $3,000,000 for fiscal year 2015;
(4) $4,000,000 for fiscal year 2016; and
(5) $5,000,000 for fiscal year 2017.
(b) Limitation.--Of the amounts made available to carry out
this Act for a fiscal year, not more than 5 percent may be
made available for carrying out section 7.
(c) Supplement, Not Supplant.--Funds made available under
this Act shall be used to supplement, and not supplant, any
other Federal, State, or local funds available for activities
that encourage Americans, especially children, youth, and
families to be physically active outdoors.
______
By Mr. REED (for himself, Mr. Durbin, Mr. Whitehouse, Mr. Levin,
and Mr. Merkley):
S. 1804. A bill to amend title IV of the Supplemental Appropriations
Act, 2008 to provide for the continuation of certain unemployment
benefits, and for other purposes; to the Committee on Finance.
Mr. REED. Mr. President, today I am introducing the Emergency
Unemployment Compensation Extension Act of 2011 to ensure that millions
of unemployed Americans will not lose desperately needed unemployment
benefits and to provide relief to states and employers that are facing
automatic penalties for overdrawing on their unemployment insurance
trust fund during the worst unemployment crisis in modern history. I am
pleased to be joined by my colleagues Senators Durbin, Whitehouse and
Levin.
Fourteen million Americans are looking for work and the average
length of unemployment is 40 weeks. Rhode Island has endured especially
high and persistent rates of unemployment. If Congress fails to extend
unemployment benefits or if benefits lapse for as little as a month--
10,000 Rhode Islanders and 2 million Americans nationwide will fall
through the safety-net and lose benefits. This would have far reaching
impacts on families, communities, and businesses. It would seriously
endanger our economic recovery as a whole.
The legislation would continue funding for the Federal unemployment
programs for jobless workers through 2012 by extending the Emergency
Unemployment Compensation Program and making improvements to the
Extended Benefits Program.
The bill will also provide relief for States and employers that have
been hit the hardest by our unemployment crisis and whose unemployment
trust funds have been subjected to historic levels of stress by
providing a 1 year moratorium on interest payments for States and tax
relief for employers in States with outstanding unemployment trust fund
loans.
Requiring States to make such interest repayments now, at a time when
they face massive budget deficits and the economy is still weak does
not make economic sense. Nor does requiring businesses to pay an
additional tax of $21 per employee for the 2011 tax year.
This bill would provide immediate relief and certainty to 23 States
with outstanding loans and all of their employers facing automatic tax
increases that are otherwise set to be assessed as soon as January 31,
2012.
For States that have remained solvent during this crisis, they would
receive a 2 percent interest bonus on trust fund reserves. This
reflects the need to start moving in the direction of replenishing and
maintaining solvent unemployment trust funds, which is why I joined
Senator Durbin in introducing the Unemployment Insurance Solvency Act
earlier this year.
Unfortunately, today's legislation is necessary because Republicans
have blocked passage of the President's American Jobs Act. The American
Jobs Act proposed extending the EUC and EB programs along with
incorporating several important reforms to the Ul system. These reforms
would provide enhanced assistance to the long-term unemployed in their
job search and ensure benefits are being administered properly. Indeed,
as we look to extend unemployment benefits to those who have been
harmed by this economy through no fault of their own and aid States and
employers, we must be mindful to enhance the integrity of the
unemployment system and prevent improper payments, which hurt taxpayers
and ultimately erode benefits for those
[[Page S7134]]
that are most in need. It is my hope that Congress and States, which
are responsible for administering these programs, continue to improve
the integrity and functioning of our Ul system.
We know what policies will strengthen our recovery. Extending
benefits and addressing solvency are among them and I urge my
colleagues to join us in cosponsoring and pressing for action on 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 text of the bill was ordered to be
printed in the Record, as follows:
S. 1804
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Emergency
Unemployment Compensation Extension Act of 2011''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS
Sec. 101. Temporary extension of unemployment insurance provisions.
Sec. 102. Modification of indicators under the extended benefit
program.
Sec. 103. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
TITLE II--STATE AND EMPLOYER ASSISTANCE
Sec. 201. Extension of temporary assistance for States with advances.
Sec. 202. FUTA credit reductions for 2011 contingent on voluntary
agreements.
Sec. 203. Assistance contingent on voluntary agreements.
Sec. 204. Solvency bonus.
TITLE I--EXTENSION OF UNEMPLOYMENT PROGRAMS
SEC. 101. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE
PROVISIONS.
(a) In General.--(1) Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(A) by striking ``January 3, 2012'' each place it appears
and inserting ``January 3, 2013'';
(B) in the heading for subsection (b)(2), by striking
``january 3, 2012'' and inserting ``january 3, 2013''; and
(C) in subsection (b)(3), by striking ``June 9, 2012'' and
inserting ``June 8, 2013''.
(2) Section 2005 of the Assistance for Unemployed Workers
and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note; 123 Stat. 444), is amended--
(A) by striking ``January 4, 2012'' each place it appears
and inserting ``January 4, 2013''; and
(B) in subsection (c), by striking ``June 11, 2012'' and
inserting ``June 11, 2013''.
(3) Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``June 10, 2012'' and inserting ``June
10, 2013''.
(b) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (F), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (G) the following:
``(H) the amendments made by section 101(a)(1) of the
Emergency Unemployment Compensation Extension Act of 2011;
and''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (Public Law 111-312).
SEC. 102. MODIFICATION OF INDICATORS UNDER THE EXTENDED
BENEFIT PROGRAM.
(a) Extension.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note)
is amended--
(1) in subsection (d), by striking ``December 31, 2011''
and inserting ``December 31, 2012''; and
(2) in subsection (f)(2), by striking ``December 31, 2011''
and inserting ``December 31, 2012''.
(b) Indicator.--Section 203(d) of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended by adding at the end the following:
``Effective with respect to compensation for weeks of
unemployment beginning on or after January 1, 2012 (or, if
later, the date established pursuant to State law) and ending
on or before December 31, 2012, the State may by statute,
regulation, or other issuance having the force and effect of
law provide that the determination of whether there has been
a State `on' or `off' indicator beginning or ending any
extended benefit period shall be made under this subsection,
disregarding subparagraph (A) of paragraph (1) and
disregarding `either subparagraph (A) or' in paragraph
(2).''.
(c) Alternative Trigger.--Section 203(f) of the Federal-
State Extended Unemployment Compensation Act of 1970 (26
U.S.C. 3304 note) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Effective with respect to compensation for weeks of
unemployment beginning on or after January 1, 2012 (or, if
later, the date established pursuant to State law) and ending
on or before December 31, 2012, the State may by statute,
regulation, or other issuance with the force and effect of
law provide that the determination of whether there has been
a State `on' or `off' indicator beginning or ending any
extended benefit period shall be made under this subsection,
disregarding clause (ii) of paragraph (1)(A) and as if
paragraph (1)(B) had been amended by striking `either the
requirements of clause (i) or (ii)' and inserting `the
requirements of clause (i)'.''.
SEC. 103. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act, as added by section 2006 of the
American Recovery and Reinvestment Act of 2009 (Public Law
111-5) and as amended by section 9 of the Worker,
Homeownership, and Business Assistance Act of 2009 (Public
Law 111-92) and section 505 of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010
(Public Law 111-312), is amended--
(1) by striking ``June 30, 2011'' and inserting ``June 30,
2012''; and
(2) by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(b) Clarification on Authority To Use Funds.--Funds
appropriated under either the first or second sentence of
clause (iv) of section 2(c)(2)(D) of the Railroad
Unemployment Insurance Act shall be available to cover the
cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments
made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect
on the day before the date of the enactment of this Act.
TITLE II--STATE AND EMPLOYER ASSISTANCE
SEC. 201. EXTENSION OF TEMPORARY ASSISTANCE FOR STATES WITH
ADVANCES.
Section 1202(b)(10)(A) of the Social Security Act (42
U.S.C. 1322(b)(10)(A)) is amended, in the matter before
clause (i), by striking ``2010--'' and inserting ``2010 and
the 12-month period beginning on October 1, 2011--''.
SEC. 202. FUTA CREDIT REDUCTIONS FOR 2011 CONTINGENT ON
VOLUNTARY AGREEMENTS.
(a) In General.--Section 3302(c) of the Internal Revenue
Code of 1986 is amended--
(1) by redesignating paragraph (3) as paragraph (4), and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3)(A) If a State has entered into a voluntary agreement
under section 203 of the Emergency Unemployment Compensation
Extension Act of 2011, the provisions of paragraph (2) shall
be applied with respect to the taxable year beginning January
1, 2011, or any succeeding taxable year, by deeming January
1, 2012, to be the first January 1 occurring after January 1,
2010. For purposes of paragraph (2), consecutive taxable
years in the period commencing January 1, 2012, shall be
determined as if the taxable year which begins on January 1,
2012, were the taxable year immediately succeeding the
taxable year which began on January 1, 2010. No taxpayer
shall be subject to credit reductions under this paragraph
for the taxable year beginning January 1, 2011.
``(B) If the voluntary agreement specified in subparagraph
(A) is terminated under section 203(e) of the Emergency
Unemployment Compensation Extension Act of 2011, subparagraph
(A) shall not be effective for any taxable year.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2010.
SEC. 203. ASSISTANCE CONTINGENT ON VOLUNTARY AGREEMENTS.
(a) In General.--The amendment made by section 201 shall
not apply with respect to any State with which the Secretary
of Labor has not entered into a voluntary agreement under
this section.
(b) Application.--Any State that has 1 or more outstanding
repayable advances from the Federal unemployment account
under section 1201 of the Social Security Act (42 U.S.C.
1321) may apply to the Secretary of Labor to enter into a
voluntary agreement under this section.
(c) Requirements.--An application described in subsection
(b) shall be submitted within such time, and in such form and
manner, as the Secretary of Labor may require, except that
any such application shall include certification by the State
that during the period of the agreement--
(1) the method governing the computation of regular
compensation under the State law of the State will not be
modified in a manner such that the average weekly benefit
amount of regular compensation which will be payable during
the period of the agreement will be less than the average
weekly benefit amount of regular compensation which would
have otherwise been payable under the State law as in effect
on the date of the enactment of this subsection;
[[Page S7135]]
(2) the State law of the State will not be modified in a
manner such that any unemployed individual who would be
eligible for regular compensation under the State law in
effect on such date of enactment would be ineligible for
regular compensation during the period of the agreement or
would be subject to any disqualification during the period of
the agreement that the individual would not have been subject
to under the State law in effect on such date of enactment;
and
(3) the State law of the State will not be modified in a
manner such that the maximum amount of regular compensation
that any unemployed individual would be eligible to receive
in a benefit year during the period of the agreement will be
less than the maximum amount of regular compensation that the
individual would have been eligible to receive during a
benefit year under the State law in effect on such date of
enactment.
(d) Decision.--The Secretary of Labor shall review any
application received from a State to enter into a voluntary
agreement under this section and, within 30 days after the
date of receipt, approve or disapprove the application and
notify the Governor of the State of the Secretary's decision,
including--
(1) if approved, the effective date of the agreement; and
(2) if disapproved, the reasons why it was disapproved.
(e) Termination.--
(1) In general.--If, after reasonable notice and
opportunity for a hearing, the Secretary of Labor finds that
a State with which the Secretary has entered into an
agreement under this section has modified State law so that
it no longer contains the provisions specified in paragraph
(1), (2), or (3) of subsection (c) or has failed to comply
substantially with any of those provisions, the agreement
shall be terminated, effective as of such date as the
Secretary shall determine, but in no event later than
December 31, 2012.
(2) Effect with respect to repayable advances.--If an
agreement under this section with a State is terminated,
then, effective as of the termination date of such agreement,
paragraph (10) of section 1202(b) of the Social Security Act
shall, for purposes of such State, be applied as if
subparagraph (A) of such paragraph had been amended by
striking the date specified in such subparagraph (in the
matter before clause (i) thereof) and inserting the
termination date of such agreement.
(f) Regulations.--Any regulations or guidance necessary to
carry out this title or any of the amendments made by this
title may be prescribed by--
(1) to the extent that they relate to section 201, the
Secretary of Labor; and
(2) to the extent that they relate to section 202, the
Secretary of the Treasury.
(g) Definitions.--For purposes of this section, the terms
``State'', ``State law'', ``regular compensation'', and
``benefit year'' have the respective meanings given such
terms under section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 204. SOLVENCY BONUS.
Section 904 of the Social Security Act (42 U.S.C. 1104) is
amended by adding at the end the following:
``Solvency Bonus
``(h)(1) Notwithstanding any other provision of this
section, the amount which is credited under subsection (e) to
the book account of the State agency of a solvent State
shall, for each quarter to which this subsection applies, be
equal to the amount which would be determined under this
section, for such State agency and for such quarter, if the
5th sentence of subsection (b) were applied by using--
``(A) the average rate of interest which (but for this
subsection) would otherwise have been determined under
subsection (b) for purposes of such quarter; plus
``(B) an additional 2 percentage points.
``(2) For purposes of this subsection, a State shall be
considered to be a `solvent State' if the outstanding balance
for such State of advances under title XII is equal to zero.
A determination as to whether or not a State is a solvent
State shall be made by the Secretary of Labor--
``(A) for each State;
``(B) for each quarter to which this subsection applies;
and
``(C) based on such date or period (before the 1st day of
such quarter), and otherwise in such manner, as the Secretary
of Labor shall determine in consultation with the Secretary
of the Treasury.
``(3) This subsection applies to each quarter in calendar
year 2012.
``(4) Nothing in this subsection shall have the effect of
causing the amount which is credited under subsection (e) to
any account in the Fund for any quarter to be less than the
amount which (disregarding this subsection) would otherwise
have been so credited to such account for such quarter.''.
______
By Mr. JOHANNS:
S. 1805. A bill to prohibit the Administrator of the Environmental
Protection Agency from rejecting or otherwise determining to be
inadequate a State implementation plan in any case in which the State
submitting the plan has not been given a reasonable time to develop and
submit the plan in accordance with a certain provision of the Clean Air
Act; to the Committee on Environment and Public Works.
Mr. JOHANNS. Mr. President, few things provide me with greater
charity than conversations I have with people back home in Nebraska. I
rise to discuss a few of those conversations I had just last week
during our work period back home. I used this opportunity to meet with
electricity providers serving Nebraskans across the great State of
Nebraska, from the more populated areas such as Omaha, to smaller
communities such as Hastings, NE.
It will come as no surprise, I believe to anyone, that the focus of
their frustration, their anger is with the EPA. They feel they have
been treated unfairly. They feel the Agency has not been straight
forward or transparent. They feel they now have a target on their
backs, and they know that compliance with the latest EPA regulatory
bombshell is going to have a crushing impact on the communities they
serve.
Their latest concern is a rule known as the cross-state air pollution
rule or cross-state. The rule addresses airborne emissions that EPA
claims cross State lines and may affect air quality in another State.
EPA issued the final rule in July of this year. Let me repeat that. EPA
issued the final rule in July of this year and then demanded compliance
by January 2012.
That is 6 months. That is an impossibility and EPA knows it. Here is
why it is an impossibility. This is especially relevant to my State.
Nebraska was not included in the old version of the same rule, the so-
called clean air interstate rule. We were not a part of it. The final
rule changed dramatically from the proposed version.
For example, the required reductions increased dramatically from the
proposed rule that was published in July of 2010. So Nebraska first
found itself subject to this type of EPA rule in the proposed rule in
July of 2010. Then the final rule arrives a year later and, boom, it is
a dramatically different rule--more severe reductions in compliance in
an almost laughable 6 months.
Basically, Nebraska gets a final rule thrust upon them and no
opportunity to comply. That could not be more unjust. Draconian changes
made in a final rule that depart so significantly from the proposed
rule defeat the very purpose of our laws that prescribe how agencies
are supposed to make rules. I ran one of those agencies as Secretary of
Agriculture.
This process makes a mockery out of the rulemaking process. It makes
public comments absolutely meaningless. What good does review of a
proposed rule do when the final rule is so radically different from the
original proposal? It also means the community regulated cannot plan
and cannot fix the problem.
This is our government we are talking about. Utilities cannot go to
their ratepayers and say: Look, we have to make changes. It is going to
take some time and money, but here is our plan and here is how much it
will cost as a ratepayer. EPA has totally shoved aside the traditional
role that some State regulators play as an EPA partner in establishing
clean air plans known as State implementation plans. In fact, in this
case, the EPA established a Federal implementation plan, a one-size-
fits-all national plan that completely rejects State efforts to manage
compliance.
Our power providers and regulators are echoing this same message.
There just is not enough time for them. Instead of 3 or 5 or 10 years
that is needed, by administrative fiat, EPA has said: They get 6 months
to rebuild a powerplant. Let me be crystal clear about what Nebraska's
power providers did and did not do.
They did not say: We cannot change and we will not change. They did
not say: Just leave me alone. What they did say to me, very clearly,
is: We cannot waive a magic wand. We cannot do the impossible. We
cannot put together the finance plan in 6 months. We cannot put a
request for bid out and get the work done in 6 months. We cannot get a
design plan written by a competent engineering firm. We cannot arrange
for a plant shutdown. We cannot get the construction crews to our
facility, especially as cold weather sets into our State between now
and January 1 to rebuild the powerplants. It simply is not humanly
possible.
What options are possible? Someone listening to me might ask: What
options do they have? Unfortunately, the
[[Page S7136]]
first thing our providers are doing is just trying to understand the
rule. That in itself is no small task, because as I explained, the rule
is essentially brand new. The ink is barely dry. The EPA did a head
fake. They said: Here is the rule and then completely changed it in the
final rule.
Secondly, electricity providers are making plans--get this. They are
making plans all across this country to decrease electric generation
because of this rule. In Hastings, NE, ratepayers have been told to
expect an increase in operating costs of at least $3.8 million per
year. Including costs of retrofits for this rule and two others that
are in the works by EPA, Hastings figures $40 to $50 million will be
spent over the next 5 years.
Think about that for a second. Imagine $40 to $50 million for a
community of 25,000 people. That is for Hastings and only if the
utility can figure out how it can get it done. Guess who bears the
brunt of these costs. Every Hastings resident with an electricity
meter--not shareholders. This is not a big electric company. No
shareholder equity will be drawn down, no preferred stock to be newly
issued. We are, in our State, a 100-percent public power State. Just
those folks in Hastings, NE, because they got swept into an EPA rule
last July with a January deadline. Fremont, NE, another great Nebraska
community caught in the crosshairs, has indicated the cross-state rule
and two other EPA rules will cost customers about $35 million over the
next 3 years.
In New York City or Washington, DC, $35 million may seem
insignificant. But to the 25,000 residents of Fremont, NE, it is a huge
deal. Similarly, the cross-state rule will cost the Nebraska public
power district, our largest electricity provider, about $6 million next
year in reduced revenue, as well as mandating about $40 million in
costs before the end of 2012. Electricity providers across the State
are all looking at purchasing power from other generators. The only way
they can get compliance now is to reduce generation.
Of course, many neighboring utilities in the State are subject to the
same final rule. Guess what. This is the problem across the country. So
everybody is in the hunt, and the short compliance timeframe is likely
to drive the price of energy even higher. Another option includes
purchasing pollution credits on the open market. No one knows how much
it will cost because the same comprised timeline affects the markets
for credits.
People may have also noticed I have not mentioned the bid, the
design, the implementation, the installation of pollution control
equipment as a compliance strategy, because in our State, that
possibility is not an option for us because of the EPA's timeline. Six
months is not enough time, especially when the labor, the technical
knowledge, the contractors, the financing are all being chased by our
utilities subject to the same rule.
Is it any wonder people are frustrated? Is it any wonder at all? That
is why today I am introducing legislation that addresses the way the
EPA handled this rule. My bill takes a couple reasonable steps to
address this unfair treatment, not only in my State but in 27 other
States. First, under my bill, EPA is prohibited from dictating Federal
implementation plans unless the Agency has given the State a sufficient
amount of time to develop a plan.
The State must be given 2 years to put a plan in place. In addition,
if my bill is enacted, EPA cannot choose to reject a State's plan if,
as a result, compliance would immediately follow. In other words, my
bill prohibits EPA from jamming States by rejecting their plans and
requiring an unreasonable compliance timeframe. Finally, my bill says
EPA's compliance deadlines are set aside for 3 years while States get a
chance to put this together. The message of my bill is straightforward:
Do not freeze out States. Do not jam us with a compliance schedule that
everybody knows will not work.
Nebraskans, similar to everybody else, are tired of being treated as
second-class citizens by an agency that has run amuck. I suspect the
same is true of 27 other States. Nebraskans simply cannot believe EPA
is hitting the accelerator on a rule that will drive up electricity
bills in more than half the country with no way for States to comply.
I share their frustration. The EPA is in a constant thirst for power.
I urge my colleagues to cosponsor this legislation, to introduce one
small dose of common sense to this out-of-control agency.
______
By Mr. BINGAMAN:
S. 1807. A bill to amend the Federal Nonnuclear Energy Research and
Development Act of 1974 to provide for the prioritization,
coordination, and streamlining of energy research, development, and
demonstration programs to meet current and future energy needs, and for
other purposes; to the Committee on Energy and Natural Resources.
Mr. BINGAMAN. Mr. President, I am pleased to introduce the Energy
Research and Development Coordination Act of 2011. This bill updates
one of the basic statutes governing energy research and development,
the Federal Nonnuclear Energy Research and Development Act of 1974, to
improve the planning and coordination of energy research and
development government-wide. It also puts in place a mechanism to allow
Congress to see a consolidated annual budget for all energy research,
development, and demonstration activities across the Federal agencies,
and to provide an opportunity to better coordinate and reduce
unnecessary duplication in these activities.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1807
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 ``Energy Research and
Development Coordination Act of 2011''.
SEC. 2. COMPREHENSIVE PLAN FOR ENERGY RESEARCH, DEVELOPMENT,
AND DEMONSTRATION.
(a) In General.--Section 6 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5905) is
amended--
(1) by striking the section heading and all that follows
through the end of subsection (a) and inserting the
following:
``SEC. 6. COMPREHENSIVE PLANNING AND PROGRAMMING.
``(a) Comprehensive Plan.--
``(1) In general.--The Secretary, in consultation with the
National Energy Research Coordination Council established
under section 18, shall submit to Congress, along with the
annual submission of the budget by the President under
section 1105 of title 31, United States Code, a comprehensive
plan for energy research, development, and demonstration
programs across the Federal Government.
``(2) Relationship to other reviews.--The plan--
``(A) shall be based on the most recent Quadrennial Energy
Review prepared under section 801 of the Department of Energy
Organization Act (42 U.S.C. 7321); and
``(B) may take into account key energy developments since
the most recent Quadrennial Energy Review.
``(3) Revisions.--The plan shall be appropriately revised
annually in accordance with section 15(a).
``(4) Goals.--The plan shall be designed to achieve
solutions to problems in energy supply, transmission, and use
(including associated environmental problems) in--
``(A) the immediate and short-term (the period up to 5
years after submission of the plan);
``(B) the medium-term (the period from 5 years to 15 years
after submission of the plan); and
``(C) the long-term (the period beyond 15 years after
submission of the plan).''; and
(2) in subsection (b), by striking ``(b)(1)'' and all that
follows through the end of paragraph (1) and inserting the
following:
``(b) Department of Energy Program.--
``(1) Program.--
``(A) In general.--Based on the comprehensive plan
developed under subsection (a), the Secretary shall develop
and submit to Congress, along with the annual budget
submission for the Department, a detailed description of an
energy research, development, and demonstration program to
implement the aspects of the comprehensive plan appropriate
to the Department.
``(B) Updates.--The program shall be updated and
transmitted to Congress annually as a part of the report
required under section 15.''.
(b) Reports.--Section 15 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5914) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``this Act'' and
inserting ``this Act and the plan under this Act'';
(B) in paragraph (2), by striking ``nuclear and
nonnuclear''; and
(C) in paragraph (3), by striking ``nonnuclear'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking
``nonnuclear'' and inserting ``energy''; and
[[Page S7137]]
(B) in paragraph (1), by striking ``objections'' and
inserting ``objectives''; and
(3) by striking subsection (c) and inserting the following:
``(c) Administration.--Section 3003 of the Federal Reports
Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note;
Public Law 104-66) shall not apply to this section.''.
SEC. 3. COORDINATION AND REDUCTION OF DUPLICATION OF ENERGY
RESEARCH, DEVELOPMENT, AND DEMONSTRATION
ACTIVITIES.
The Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5901 et seq.) is amended by adding at the
end the following:
``SEC. 18. COORDINATION AND REDUCTION OF DUPLICATION OF
ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION
ACTIVITIES.
``(a) Definitions.--In this section:
``(1) Annual budget submission.--The term `annual budget
submission' means the budget proposal of the President
transmitted under section 1105 of title 31, United States
Code.
``(2) Chairpersons.--The term `Chairpersons' means--
``(A) the Director of the Office of Science and Technology
Policy; and
``(B) the Secretary.
``(3) Comprehensive plan.--The term `comprehensive plan'
means the comprehensive plan for energy research,
development, and demonstration developed under sections 6(a)
and 15(a).
``(4) Council.--The term `Council' means the National
Energy Research Coordination Council established under
subsection (b).
``(5) Energy program agency.--The term `energy program
agency' means an executive department or agency for which the
annual expenditure budget for energy research, development,
and demonstration activities, including activities described
in section 6(b), exceeds $10,000,000.
``(b) National Energy Research Coordination Council.--
``(1) Establishment.--There is established within the
Department a National Energy Research Coordination Council to
coordinate the development and funding of energy research,
development, and demonstration activities for all energy
program agencies.
``(2) Composition.--The Council shall be composed of--
``(A) the Director of the Office of Science and Technology
Policy and the Secretary, who shall jointly serve as
Chairpersons of the Council;
``(B) the Director of the Office of Management and Budget;
``(C) the head of any energy program agency; and
``(D) such other officers or employees of executive
departments and agencies as the President may, from time to
time, designate.
``(c) National Energy Research, Development, and
Demonstration Program Budget.--
``(1) In general.--The Chairpersons shall--
``(A) in coordination with the Council, establish for each
fiscal year a consolidated budget proposal to implement the
comprehensive plan, taking into account--
``(i) applicable recommendations of the National Academy of
Sciences under this Act; and
``(ii) the need to avoid unnecessary duplication of
programs across Federal agencies;
``(B) provide budget guidance, coordination, and review in
the development of energy research, development, and
demonstration budget requests submitted to the Office of
Management and Budget by each energy program agency; and
``(C) submit to the President and Congress the consolidated
budget proposal under subparagraph (A) as part of the annual
budget submission.
``(2) Timing and format of budget requests.--The head of
each energy program agency shall ensure timely budget
development and submission to the Chairpersons of energy
research, development, and demonstration budget requests, in
such format as may be determined by the Chairpersons with the
concurrence of the Director of the Office of Management and
Budget.
``(d) Coordination of Implementation.--The Chairpersons, in
consultation with the Council, shall--
``(1) establish objectives and priorities for energy
research, development, and demonstration functions under this
Act;
``(2) review the implementation of the comprehensive plan
in all energy program agencies;
``(3) make such recommendations to the President as the
Chairpersons determine are appropriate regarding changes in
the organization, management, and budgets of energy program
agencies--
``(A) to implement the policies, objectives, and priorities
established under paragraph (1) and the comprehensive plan;
and
``(B) to avoid unnecessary duplication of programs across
Federal agencies; and
``(4) notify the head of an energy program agency if the
policies or activities of the energy program agency are not
in compliance with the responsibilities of the energy program
agency under the comprehensive plan.
``(e) Reports From the National Academy of Sciences.--
``(1) In general.--The Secretary, in consultation with the
Council, may enter into appropriate arrangements with the
National Academy of Sciences under which the Academy shall
prepare reports that evaluate and provide recommendations
with respect to specific areas of energy research,
development, and demonstration, including areas described in
section 6(b) and fundamental science and engineering research
supporting those areas.
``(2) Submission to congress.--The Secretary shall submit
to Congress a copy of each report prepared under this
subsection.
``(f) Independent Administration of Council.--
``(1) Location.--The physical location of the Council shall
be separate and distinct from the headquarters of the
Department.
``(2) Budget.--The Secretary shall submit the budget of the
Council as a separate and distinct element of the budget
submission of the Department for a fiscal year.
``(3) Personnel.--
``(A) In general.--The Secretary shall ensure that the
Council has necessary administrative support and personnel of
the Department to carry out this section.
``(B) Council personnel.--
``(i) In general.--The Chairpersons shall select, appoint,
employ, and fix the compensation of such officers and
employees of the Council as are necessary to carry out the
functions of the Council.
``(ii) Authority.--Each officer or employee of the
Council--
``(I) shall be responsible to and subject to the authority,
direction, and control of the Chairpersons, acting through an
Executive Director appointed by the Chairpersons or the
designee of the Executive Director; and
``(II) shall not be responsible to, or subject to the
authority, direction, or control of, any other officer,
employee, or agent of the Department or Office of Science and
Technology Policy.
``(C) Prohibition on dual office holding.--An individual
may not concurrently hold or carry out the responsibilities
of--
``(i) a position within the Council; and
``(ii) a position within the Department or Office of
Science and Technology Policy that is not within the Council.
``(g) GAO Review of Effectiveness of Council.--Not later
than 3 years after the date of enactment of this section and
every 3 years thereafter, the Comptroller General of the
United States shall submit to Congress a management
assessment of the Council, including an assessment of whether
the Council is--
``(1) adequately staffed with personnel with necessary
skills;
``(2) properly coordinating and disseminating policy and
budget information to the energy program agencies and
managers on an effective and timely basis; and
``(3) aligning the overall energy research, development,
and demonstration budget so as to achieve the comprehensive
plan and avoid unnecessary duplication of programs across
Federal agencies.''.
______
By Mr. KERRY:
S. 1809. A bill To amend the Public Health Service Act to revise and
extend the program for viral hepatitis surveillance, education, and
testing in order to prevent deaths from liver cancer, and for other
purposes; to the Committee on Health, Education, Labor, and Pensions.
Mr. KERRY. Mr. President, there is a silent epidemic in our country
that today threatens the lives of more than 5 million Americans. Of
those people afflicted with this disease, 150,000 will not survive this
decade. In 2008 alone, an estimated 56,000 Americans were newly
infected while as many as 75 percent of all infected people did not
even know that they carried this disease. Without further preventative
action, this growing health threat will only cost more lives and
hundreds of billions in additional health care expenses. This ticking
time bomb is viral hepatitis.
That is bad news. But there is also cause for hope.
Treatment already exists that can eradicate hepatitis C in close to
75 percent of people with the disease. Another treatment reduces the
level of hepatitis B in over 80 percent of those treated. There has
been a vaccine against hepatitis B for decades that has left millions
immune to that strain of virus. We understand how viral hepatitis is
spread, how it can be prevented, and how to test people for infection.
There have just been a string of significant medical advances that will
improve the effectiveness of viral hepatitis screening and treatment.
It is clear that we already have the tools at our disposal to
prevent, treat, and control the vast majority of these infections, now
what we need is a coordinated strategy to put these tools to work.
That is why I am introducing the Viral Hepatitis Testing Act of 2011,
which appropriates $110 million over five years to improve education,
testing, and care for viral hepatitis across Massachusetts and in local
communities around the country. This legislation is a down-payment on a
national effort to fight and ultimately eradicate hepatitis B and C in
America. I hope
[[Page S7138]]
my colleagues on both sides of the aisle will join me in cosponsoring
this effort.
Viral hepatitis is known as a silent killer because it can stay a-
symptomatic for years before it leads to serious liver disease. It is
the most common cause of liver cancer and yet doctors and patients
alike are often largely uninformed about this disease. Hepatitis B is
100 times more infectious than HIV and has spread to an estimated 2
billion people worldwide while hepatitis C has reached about 170
million people. Chronic viral hepatitis is widespread and it is
dangerous.
Last year, the Institute of Medicine released a report outlining a
number of specific recommendations on how to combat viral hepatitis. To
build on those recommendations, Assistant Secretary of Health Dr.
Howard Koh convened a task force and developed a detailed,
comprehensive action plan to combat the pervasive spread of this
disease. These recommendations served as the foundation for the
legislation I am proposing today.
As of today, there is no coordinated national strategy in place to
fight viral hepatitis. The action plan put forward by Dr. Koh and his
team seeks to rectify that problem by incorporating standardized viral
hepatitis prevention and treatment programs into the health care
infrastructure that already exists. The bill I introduced today would
quickly implement a number of these programs and provides the
Department of Health and Human Services with the resources to act.
The first step in prevention is determining who is infected with the
virus so they can receive the appropriate care and will be less likely
to pass on this disease to others. In order to determine the prevalence
of the problem and to increase the number of people who are aware of
their infection, The Viral Hepatitis Testing Act calls for HHS to work
with the Center for Disease Control and Prevention, the Agency for
Healthcare Research and Quality, and the Preventive Services Task Force
to develop and implement effective surveillance and testing protocols.
Whereas 75 percent of people carrying viral hepatitis today do not even
know they are infected, improved testing could flip that disturbing
statistic on its head in just 5 years.
It is also a sad reality that a number of minority populations are at
greatly increased risk for contracting viral hepatitis. Asian-Americans
and Pacific Islanders account for over half of chronic hepatitis B
cases. African Americans, Latinos, and American Indians and Native
Alaskans also have disproportionately high rates of these viruses.
Additionally, without the proper preventative care, there is a high
likelihood that pregnant women who carry the virus will pass it on to
their unborn children.
For those reasons, the legislation I introduced today also focuses on
screening and treating high-risk populations and pregnant mothers for
viral hepatitis. Educational programs targeting high-risk groups will
empower people to protect themselves from contracting hepatitis, and
ensuring that people who have viral hepatitis receive the appropriate
follow-up care will further help to prevent the spread of this
epidemic.
Additionally, providing doctors with the proper training on the
causes, symptoms, and treatments would also go a long way toward
stemming the tide of transmission and improving outcomes for patients
who have contracted the disease. This legislation makes supplemental
viral hepatitis training for health care professionals a priority.
To do the things we need to do in order to save lives and control
this deadly epidemic, we are going to have to make a relativelodest
investment. The Viral Hepatitis Testing Act appropriates $110 million
over 5 years that will go toward implementing the educational,
screening, and treatment measures required under this act. Rather than
creating a whole new hepatitis prevention apparatus, this funding will
be used to integrate these new and improved procedures into the
existing health care infrastructure through grants to public and
nonprofit private entities, including States, Indian tribes, and
public:private partnerships.
The human benefits of this legislation are undeniable--these
provisions will reduce transmission, improve the quality of life for
people with viral hepatitis, and prevent the deaths of countless
mothers and fathers and children. It is also undeniable that this is a
wise investment of resources and good policy. These investments are a
classic case of using limited resources to maximum impact, as we invest
a modest amount of money today in order to save lives, pain, and tens
of billions of dollars tomorrow.
Today, hepatitis B costs patients around $2.5 billion per year. With
baby boomers aging into Medicare and accounting for an estimated two
out of every three cases of chronic hepatitis C, medical costs for
treating this disease are expected to skyrocket from $30 billion to
more than $85 billion in 2024. Late diagnosis is a significant driver
of costs, as more expensive procedures and treatments are required the
further the infection has progressed. To put this in even starker
terms, the cost of the hepatitis B vaccine ranges from $75 to $165,
while treatment can cost up to $16 thousand per year for a single
person, or up to $110 thousand per hospital visit, should the disease
develop into liver cancer.
Viral hepatitis is an increasingly significant issue for
Massachusetts. The Department of Public Health reports over 2,000 cases
of newly diagnosed chronic Hepatitis B infection and 8,000 to 10,000
cases of newly diagnosed chronic Hepatitis C infection each year. Viral
hepatitis is the highest volume of reportable infectious diseases in
the state. Additionally, there continues to be a striking increase in
cases of hepatitis C infection among adolescents and young adults in
the State, which suggests that there is a new epidemic of the disease
taking hold.
Until recently, the Massachusetts State Legislature provided $1.4
million for surveillance to detect outbreaks and behaviors of concern
as well as for targeted screening and treatment of high-risk
populations. Today, however, as this public health threat spreads, all
of that funding has been eliminated due to budget cuts. Massachusetts
receives just $104,305 from the CDC for an Adult Viral Hepatitis
Prevention Coordinator. This is a valuable position but it is not
nearly enough to support core public health services. The Viral
Hepatitis Testing Act will allow Massachusetts to invest in a
sustainable infrastructure that would improve health care for our
citizens.
The choice is ours: we can either invest in preventative programs and
more robust screening now or we can just let this epidemic continue to
proliferate around the country and foot the bill later for the
expensive surgical procedures, medicines, and hospital bills that will
only continue to grow.
Without action, thousands more Americans will die year from preventa
seases. We know what we need to do; now it is up to us to do it. Let us
not make excuses. Let us lower health care costs for American families,
improve the quality o our care, and save lives. I again urge my
colleagues to join me in cosponsoring this important legislation.
____________________