[Congressional Record Volume 169, Number 99 (Wednesday, June 7, 2023)]
[Senate]
[Pages S2007-S2009]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself, Mr. Marshall, Mr. Welch, and Mr. 
        Vance):
  S. 1838. A bill to amend the Electronic Fund Transfer Act to require 
the Board of Governors of the Federal Reserve system to prescribe 
regulations relating to network competition in credit card 
transactions, and for other purposes; to the Committee on Banking, 
Housing, and Urban Affairs.
  Mr. DURBIN. Madam 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. 1838

       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 ``Credit Card Competition Act 
     of 2023''.

     SEC. 2. COMPETITION IN CREDIT CARD TRANSACTIONS.

       (a) In General.--Section 921 of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693o-2) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) Competition in credit card transactions.--
       ``(A) No exclusive network.--
       ``(i) In general.--Not later than 1 year after the date of 
     enactment of the Credit Card Competition Act of 2023, the 
     Board shall prescribe regulations providing that a covered 
     card issuer or payment card network shall not directly or 
     through any agent, processor, or licensed member of a payment 
     card network, by contract, requirement, condition, penalty, 
     technological specification, or otherwise, restrict the 
     number of payment card networks on which an electronic credit 
     transaction may be processed to--

       ``(I) 1 such network;
       ``(II) 2 or more such networks, if--

       ``(aa) each such network is owned, controlled, or otherwise 
     operated by--
       ``(AA) affiliated persons; or
       ``(BB) networks affiliated with such issuer; or
       ``(bb) any such network is identified on the list 
     established and updated under subparagraph (D); or

       ``(III) subject to clause (ii), the 2 such networks that 
     hold the 2 largest market shares with respect to the number 
     of credit cards issued in the United States by licensed 
     members of such networks (and enabled to be

[[Page S2008]]

     processed through such networks), as determined by the Board 
     on the date on which the Board prescribes the regulations.

       ``(ii) Determinations by board.--

       ``(I) In general.--The Board, not later than 3 years after 
     the date on which the regulations prescribed under clause (i) 
     take effect, and not less frequently than once every 3 years 
     thereafter, shall determine whether the 2 networks identified 
     under clause (i)(III) have changed, as compared with the most 
     recent such determination by the Board.
       ``(II) Effect of determination.--If the Board, under 
     subclause (I), determines that the 2 networks described in 
     clause (i)(III) have changed (as compared with the most 
     recent such determination by the Board), clause (i)(III) 
     shall no longer have any force or effect.

       ``(B) No routing restrictions.--Not later than 1 year after 
     the date of enactment of the Credit Card Competition Act of 
     2023, the Board shall prescribe regulations providing that a 
     covered card issuer or payment card network shall not--
       ``(i) directly or through any agent, processor, or licensed 
     member of the network, by contract, requirement, condition, 
     penalty, or otherwise--

       ``(I) inhibit the ability of any person who accepts credit 
     cards for payments to direct the routing of electronic credit 
     transactions for processing over any payment card network 
     that--

       ``(aa) may process such transactions; and
       ``(bb) is not on the list established and updated by the 
     Board under subparagraph (D);

       ``(II) require any person who accepts credit cards for 
     payments to exclusively use, for transactions associated with 
     a particular credit card, an authentication, tokenization, or 
     other security technology that cannot be used by all of the 
     payment card networks that may process electronic credit 
     transactions for that particular credit card; or
       ``(III) inhibit the ability of another payment card network 
     to handle or process electronic credit transactions using an 
     authentication, tokenization, or other security technology 
     for the processing of those electronic credit transactions; 
     or

       ``(ii) impose any penalty or disadvantage, financial or 
     otherwise, on any person for--

       ``(I) choosing to direct the routing of an electronic 
     credit transaction over any payment card network on which the 
     electronic credit transaction may be processed; or
       ``(II) failing to ensure that a certain number, or 
     aggregate dollar amount, of electronic credit transactions 
     are handled by a particular payment card network.

       ``(C) Applicability.--The regulations prescribed under 
     subparagraphs (A) and (B) shall not apply to a credit card 
     issued in a 3-party payment system model.
       ``(D) Designation of national security risks.--
       ``(i) In general.--Not later than 1 year after the date of 
     enactment of the Credit Card Competition Act of 2023, the 
     Board, in consultation with the Secretary of the Treasury, 
     shall prescribe regulations to establish a public list of any 
     payment card network--

       ``(I) the processing of electronic credit transactions by 
     which is determined by the Board to pose a risk to the 
     national security of the United States; or
       ``(II) that is owned, operated, or sponsored by a foreign 
     state entity.

       ``(ii) Updating of list.--Not less frequently than once 
     every 2 years after the date on which the Board establishes 
     the public list required under clause (i), the Board, in 
     consultation with the Secretary of the Treasury, shall update 
     that list.
       ``(E) Definitions.--In this paragraph--
       ``(i) the terms `card issuer' and `creditor' have the 
     meanings given the terms in section 103 of the Truth in 
     Lending Act (15 U.S.C. 1602);
       ``(ii) the term `covered card issuer' means a card issuer 
     that, together with the affiliates of the card issuer, has 
     assets of more than $100,000,000,000;
       ``(iii) the term `credit card issued in a 3-party payment 
     system model' means a credit card issued by a card issuer 
     that is--

       ``(I) the payment card network with respect to the credit 
     card; or
       ``(II) under common ownership with the payment card network 
     with respect to the credit card;

       ``(iv) the term `electronic credit transaction'--

       ``(I) means a transaction in which a person uses a credit 
     card; and
       ``(II) includes a transaction in which a person does not 
     physically present a credit card for payment, including a 
     transaction involving the entry of credit card information 
     onto, or use of credit card information in conjunction with, 
     a website interface or a mobile telephone application; and

       ``(v) the term `licensed member' includes, with respect to 
     a payment card network--

       ``(I) a creditor or card issuer that is authorized to issue 
     credit cards bearing any logo of the payment card network; 
     and
       ``(II) any person, including any financial institution and 
     any person that may be referred to as an `acquirer', that is 
     authorized to--

       ``(aa) screen and accept any person into any program under 
     which that person may accept, for payment for goods or 
     services, a credit card bearing any logo of the payment card 
     network;
       ``(bb) process transactions on behalf of any person who 
     accepts credit cards for payments; and
       ``(cc) complete financial settlement of any transaction on 
     behalf of a person who accepts credit cards for payments.''; 
     and
       (2) in subsection (d)(1), by inserting ``, except that the 
     Bureau shall not have authority to enforce the requirements 
     of this section or any regulations prescribed by the Board 
     under this section'' after ``section 918''.
       (b) Effective Date.--Each set of regulations prescribed by 
     the Board of Governors of the Federal Reserve System under 
     paragraph (2) of section 921(b) of the Electronic Fund 
     Transfer Act (15 U.S.C. 1693o-2(b)), as amended by subsection 
     (a) of this section, shall take effect on the date that is 
     180 days after the date on which the Board prescribes the 
     final version of that set of regulations.
                                 ______
                                 
      By Ms. COLLINS (for herself and Mrs. Shaheen):
  S. 1855. A bill to reauthorize the Special Diabetes Program for Type 
1 Diabetes and the Special Diabetes Program for Indians; to the 
Committee on Health, Education, Labor, and Pensions.
  Ms. COLLINS. Madam President, I rise today to introduce the Special 
Diabetes Program Reauthorization Act of 2023 with Senator Jeanne 
Shaheen, my colleague from New Hampshire and cochair of the Senate 
Diabetes Caucus. Our bipartisan bill would reauthorize and strengthen 
vital type 1 diabetes research happening at the National Institutes of 
Health and renew critical treatment, education, and prevention programs 
for at-risk populations, specifically Native American and Alaska Native 
communities, who experience type 2 diabetes at nearly three times the 
national average. Together, these programs have become the Nation's 
most strategic and effective effort to combat diabetes and its 
complications, but, without an extension, both programs are at risk of 
expiring on September 30, 2023.
  For more than 25 years, the Special Diabetes Program--comprised of 
the Special Statutory Funding Program for Type 1 Diabetes Research and 
the Special Diabetes Program for Indians, SDPI--has delivered 
meaningful resources and research breakthroughs for those with type 1 
diabetes and also for Native Americans and Alaska Natives. This 
research has also led to advancements to the broader community, 
including the 37 million Americans with diabetes and 96 million with 
prediabetes. Our bill would continue these investments in the research 
aimed at developing a cure for diabetes and support the programs that 
help prevent and treat the disease and its complications.
  In one of my very first meetings as a new Senator, I met a young 
Mainer with type 1 diabetes. I will never forget this 10-year-old boy 
looking up at me and telling me that he wished he could take just 1 day 
off from having diabetes--his birthday or Christmas--but of course he 
could not. This meeting led me to start the bipartisan Senate Diabetes 
Caucus and to begin fighting for a cure for this devastating disease.
  Since then, we have made tremendous progress thanks to investments 
like the Special Diabetes Program. From new technologies that are 
making these children's lives easier to manage to treatments that can 
potentially delay the clinical diagnosis of type 1 diabetes, this 
program has generated a strong return on investment. Renewal of the SDP 
is absolutely critical to accelerating the progress we have made over 
the past two decades to treat and one day cure type 1 diabetes. Today's 
research represents tomorrow's cure.
  As the cochairs of the Senate Diabetes Caucus, Senator Shaheen and I 
recently led a letter signed by 60 Senators advocating for the 
program's reauthorization and outlining why investing in the Special 
Diabetes Program is a cost-effective investment toward improving lives 
and reducing healthcare expenditures. The driving force behind this 
program is curing one of the United States' most costly diseases in 
both human and economic terms.
  Our bill would reauthorize both components of the SDP through 
December 2025 at an annual funding level of $170 million per program. 
Congress has reauthorized the SDP with bipartisan support numerous 
times since the program's inception in 1997. Yet funding has not 
increased since fiscal year 2004. During this time period, the cost of 
research has increased, as has the size of the Indian Health Service 
population and the cost of medical care. For that

[[Page S2009]]

reason, our bill also proposes a $20 million increase per program. This 
would be the first increase for this program in 20 years.
  The two programs in this reauthorization bill have had transformative 
effects on diabetes care. The first program is the Special Statutory 
Funding Program for Type 1 Diabetes Research, which provides funds to 
NIH's National Institute of Diabetes and Digestive and Kidney Diseases, 
NIDDK, for life-changing preventive diabetes research. For example, 
SDP-funded research laid early groundwork for artificial pancreas, AP, 
systems--or closed-loop ``all-in-one'' diabetes management systems--
that have shown great promise in improving glucose monitoring and 
insulin delivery. Advances in technology have helped reduce costly and 
burdensome complications and improved the quality of life for those 
with the disease. There are now multiple FDA-approved artificial 
pancreas systems, enabling individuals with type 1 diabetes and their 
doctors to choose the system that works best for them. According to one 
study, the use of AP systems in adults could save Medicare roughly $1 
billion over 25 years.
  SDP research has also helped researchers identify genes and 
environmental factors linked with type 1 diabetes, led to changes in 
clinical practice guidelines for diabetic eye care, and supported 
clinical trials on therapeutics to prevent and treat the disease. For 
example, landmark research conducted by SDP-funded TrialNet 
demonstrated for the first time ever that early preventive treatment 
with a drug targeting the immune system delayed onset of clinical-type 
1 diabetes for 2 years. This drug has since been approved by the FDA 
and is the first ever disease modifying therapy for type 1 diabetes.
  Continued investment in this program is essential to continue large-
scale trials, plan next steps for research programs, conduct outreach 
and education, and allocate research resources effectively. As Dr. 
Griffin Rodgers, Director of the NIDDK, said when testifying at a 
Senate Aging Committee hearing I chaired in 2019, ``with continued 
research, it is possible to imagine that people could lead a life free 
of the burden of Type 1 diabetes and its complications.''
  Our bill would also provide $170 million per year to sustain a second 
program, the Special Diabetes Program for Indians, SDPI. SDPI supports 
type 2 diabetes treatment and prevention strategies for Native American 
and Alaska Native populations who are disproportionately burdened with 
type 2 diabetes at a rate of nearly three times the national average. 
In Maine this program benefits five Tribal communities across the 
state, providing approximately 5 million dollars in support for 
diabetes prevention activities in those Tribal populations. This 
Federal support is critical to reducing disparities. As Chief William 
Nicholas of the Passamaquoddy Tribe in Maine recently explained, 
``Special Diabetes Program funding is instrumental and necessary to 
educate and address high rates of diabetes in Indian Country. Native 
Americans are high risk for diabetes, and the funding will continue the 
much-needed support, education, and treatment in our communities.''
  Tremendous improvements are occurring in diabetes outcomes for Alaska 
Natives and Native Americans, and the SDPI has played a key role, just 
as Congress envisioned when the program was created. Although diabetes 
rates among the IHS service population remain high, with the help of 
this program, diabetes rates in youth in these communities have not 
increased in more than 10 years, and diabetes rates in Alaska Native 
and Native American adults have not increased since 2011. Communities 
with SDPI-funded programs have actually seen the diabetes incidence 
rate decrease consistently since 2013.
  The program is effective by other measures as well. Since SDPI began, 
there has been a 50-percent reduction in diabetic eye disease rates 
among Alaska Natives and Native Americans; hospitalizations for 
uncontrolled diabetes among Alaska Native and Native American adults 
have dropped by 84 percent; and the rate of end-stage renal disease has 
fallen by more than 50 percent. These positive clinical outcomes have 
reduced the risk for blindness, amputations, and kidney failure, in 
addition to preventing the onset of type 2 diabetes.
  The Special Diabetes Program is funding research that is leading 
directly to the development of new insights and therapies that are 
improving the lives of those with diabetes and accelerating progress 
toward curing and preventing the disease. Ruby Anderson, a young Mainer 
with type I diabetes who testified before the 2019 JDRF Children's 
Congress, put an even finer point on the need to reauthorize the SDP. 
Ruby she said she doesn't want her brother or sister to have to go 
through what she has experienced. As she told Senators, ``We need more 
research to find a cure. We need even better devices. And we need to 
figure out what causes TID so we can stop it.''
  I couldn't agree more with Ruby, and I am confident the Special 
Diabetes Program will make these objectives possible. I urge my 
colleagues to support a multi-year extension of this important program 
so that one day we will find a cure to this debilitating disease.

                          ____________________