[Congressional Record (Bound Edition), Volume 145 (1999), Part 1]
[Senate]
[Pages 1098-1149]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. HATCH (for himself, Mr. Sessions, Mr. Thurmond, Mr. 
        Abraham, Mr. DeWine, Mr. Ashcroft):
  S. 254. A bill to reduce violent juvenile crime, promote 
accountability by rehabilitation of juvenile criminals, punish and 
deter violent gang crime, and for other purposes; read the first time.

[[Page 1099]]




VIOLENT AND REPEAT JUVENILE OFFENDER ACCOUNTABILITY AND REHABILITATION 
                              ACT OF 1999

  Mr. HATCH. Mr. President, I am proud today to introduce the Violent 
and Repeat Juvenile Offender Accountability and Rehabilitation Act of 
1999. I am pleased to be joined by Senator Sessions, the distinguished 
chairman of the Youth Violence Subcommittee, as well as Senator DeWine.
  There are few issues that will come before the Senate this year that 
touch the lives of more of our fellow Americans than our national 
response to juvenile crime. Crime and delinquency among juveniles is a 
problem that troubles us in our neighborhoods, schools and parks. It is 
the subject across the dinner table, and in those late night, worried 
conversations all parents have had at one time or another. The subject 
is familiar--how can we prevent our children from falling victim--
either to crime committed by another juvenile, or to the lure of drugs, 
crime, and gangs.
  Their concerns should be our concerns. The sad reality is that we can 
no longer sit silently by as children kill children, as teenagers 
commit truly heinous offenses, as our juvenile drug abuse rate 
continues to climb. In 1997, juveniles accounted for nearly one fifth--
18.7 percent--of all criminal arrests in the United States. Persons 
under 18 committed 13.5 percent of all murders, over 17 percent of all 
rapes, nearly 30 percent of all robberies, and 50 percent of all 
arsons.
  In 1997, 183 juveniles under 15 were arrested for murder. Juveniles 
under 15 were responsible for 6.5 percent of all rapes, 14 percent of 
all burglaries, and one third of all arsons. And, unbelievably, 
juveniles under 15--who are not old enough to legally drive in any 
state--in 1997 were responsible for 10.3 percent of all auto thefts.
  To put this in some context, consider this: in 1997, youngsters age 
15 to 19, who are only 7 percent of the population, committed 22.2 
percent of all crimes, 21.4 percent of violent crimes, and 32 percent 
of property crimes.
  And although there are endless statistics on our growing juvenile 
crime problem, one particularly sobering fact is that, between 1985 and 
1993, the number of murder cases involving 15-year olds increased 207 
percent. We have kids involved in murder before they can even drive.
  Even my state of Utah has not been immune from these trends. Indeed, 
a 1997 study by Brigham Young University Professor Richard Johnson 
found that Utah's juvenile arrest rate is the highest in the nation. 
Additionally, as an indication of the increasingly serious nature of 
juvenile offenses in Utah, between 1990 and 1996 the number of 
juveniles sentenced to youth corrections increased 142 percent, and the 
number of juveniles requiring detention in a secure facility more than 
doubled. And in 1995, the average Utah juvenile offender had 
accumulated an astonishing average of 23 misdemeanors, 8 felony 
convictions, and 2.4 status offense convictions before being sentenced 
to a secure youth facility.
  In short, our juvenile crime problem has taken a new and sinister 
direction. But cold statistics alone cannot tell the whole story. Crime 
has real effects on the lives of real people. Last fall, I read an 
article in the Richmond Times-Dispatch by my good friend, crime 
novelist Patricia Cornwell. It is one of the finest pieces I have read 
on the effects of and solutions to our juvenile crime problem.
  Let me share with my colleagues some of what Ms. Cornwell, who has 
spent the better part of her adult life studying and observing crime 
and its effects, has to say. She says ``when a person is touched by 
violence, the fabric of civility is forever rent, or ripped, or 
breached . . .'' This is a graphic but accurate description. Countless 
lives can be ruined by a single violent crime. There is, of course, the 
victim, who may be dead, or scarred for life. There are the family and 
friends of the victim, who are traumatized as well, and who must live 
with the loss of a loved one. Society itself is harmed, when each of us 
is a little more frightened to walk on our streets at night, to use an 
ATM, or to jog or bike in our parks. And, yes, there is the offender 
who has chosen to throw his or her life away. Particularly when the 
offender is a juvenile, family, friends, and society are made poorer 
for the waste of potential in every human being. One crime, but 
permanent effects when ``the fabric of civility is rent.''
  This is the reality that has driven me to work for the last three 
years to address this issue. In this effort, I have been joined by a 
bipartisan majority of the Senate Judiciary Committee, which last 
Congress reported comprehensive legislation on a bipartisan, two to one 
vote. Indeed, among members of the Youth Violence Subcommittee, the 
vote was seven to two in favor of the bill.
  The Judiciary Committee's legislation last Congress would have 
fundamentally reformed the role played by the federal government in 
addressing juvenile crime in our Nation. It was supported by law 
enforcement organizations such as the Fraternal Order of Police, the 
National Sheriffs Association, and the National Troopers Coalition, as 
well as the support of juvenile justice practitioners such as the 
National Council of Juvenile and Family Court Judges, and victim's 
groups including the National Victims Center and the National 
Organization for Victims Assistance.
  The bill we introduce today builds on those efforts. Our reform 
proposal includes the best of what we know works. It combines tough 
measures to protect the public from the worst juvenile criminals, smart 
measures to provide intervention and correction at the earliest acts of 
delinquency, and compassionate measures to rehabilitate juvenile 
offenders and to supplement and enhance extensive existing prevention 
programs to keep juveniles out of the cycle of crime, violence, drugs, 
and gangs.
   Mr. President, let me spell out in great detail the provisions of 
this bill, and how it will help reform the juvenile justice system that 
is failing the victims of juvenile crime, failing too many of our young 
people, and ultimately, failing to protect the public.
  First, this bill reforms and streamlines the federal juvenile code, 
to responsibly address the handful of cases each year involving 
juveniles who commit crimes under federal jurisdiction. Our bill sets a 
uniform age of 14 for the permissive transfer of juvenile defendants to 
adult court, permits prosecutors and the Attorney General to make the 
decision whether to charge a juvenile offender as an adult, and permits 
in certain circumstances juveniles charged as an adult to petition the 
court to be returned to juvenile status.
  It also provides that when prosecuted as adults, juveniles in Federal 
criminal cases will be subject to the same procedures and penalties as 
adults, except for the application of mandatory minimums in most cases. 
Of course, the death penalty would not be available as punishment for 
any offense committed before the juvenile was 18.
  The bill similarly provides that juveniles tried as adults and 
sentenced to prison must serve their entire sentences, and may not be 
released on the basis of attaining their majority, and applies to 
juveniles convicted as adults the same provisions of victim 
restitution, including mandatory restitution, that apply to adults.
  Finally, in reforming the federal system, I believe that we must lead 
by example. So our bill provides that the federal criminal records of 
juveniles tried as adults, and the federal delinquency records of 
juveniles adjudicated delinquent for certain serious offenses such as 
murder, rape, armed robbery, and sexual abuse or assault, will be 
treated for all purposes in the same manner as the records of adults 
for the same offenses. Other federal felony juvenile criminal or 
delinquency records would be treated the same as adult records for 
criminal justice or national security background check purposes.
  The bill also permits juvenile federal felony criminal and 
delinquency records to be provided to schools and colleges under rules 
issued by the Attorney General, provided that recipients of the records 
are held to privacy standards and that the records not be used to 
determine admission.

[[Page 1100]]

  Let me assure any who may be concerned that it is not our intent in 
reforming the federal juvenile code to federalize juvenile crime--
indeed, no conduct that is not a federal crime now will be if this 
reform is enacted. I do not intend or expect a substantial increase in 
the number of juvenile cases adjudicated or prosecuted in federal 
court. It is our intent, rather, to ensure that when there is a federal 
crime warranting the federal prosecution of a juvenile, the federal 
government assumes its responsibility to deal with it, rather than 
saddling the states with that burden.
  Second, at the heart of this bill is an historic reform and 
reauthorization of the Juvenile Justice and Delinquency Prevention Act 
of 1974, the most comprehensive review of that legislation in 25 years. 
The States for several years have been far ahead of the Federal 
Government in implementing innovative reforms of their juvenile justice 
systems. For example, between 1992 and 1996, of the 50 States and the 
District of Columbia, 48 made substantive changes to their juvenile 
justice systems. Among the trends in State law changes are the removal 
of more serious and violent offenders from the juvenile justice system, 
in favor of criminal court prosecution; new and innovative disposition/
sentencing options for juveniles; and the revision, in favor of 
openness, of traditional confidentiality provisions relating to 
juvenile proceedings and records.
  While the States have been making fundamental changes in their 
approaches to juvenile justice, however, the Federal Government has 
made no significant change to its approach and has done little to 
encourage State and local reform. Thus, the juvenile justice terrain 
has shifted beneath the Federal Government, leaving its programs and 
policies out of step and largely irrelevant to the needs of State and 
local governments. This bill corrects this imbalance between State and 
Federal juvenile justice policy, and will help ensure that federal 
programs support the needs of State and local governments.
  First, our bill reforms and strengthens the Office of Juvenile 
Justice and Delinquency Prevention (OJJDP) of the Department of 
Justice. The effectiveness of the OJJDP will be enhanced by requiring 
its Administrator to present to Congress annual plans, with measurable 
goals, to control and prevent youth crime, coordinate all Federal 
programs relating to controlling and preventing youth crime, and 
disseminate to States and local governments data on the prevention, 
correction and control of juvenile crime and delinquency, and report on 
successful programs and methods.
  And, most important to state and local governments, in the future, 
OJJDP will serve as a single point of contact for States, localities, 
and private entities to apply for and coordinate all federal assistance 
and programs related to juvenile crime control and delinquency 
prevention. This one-stop-shopping for federal programs and assistance 
will help state and local governments focus on the problem, instead of 
on how to navigate the federal bureaucracy.
  Second, our reform bill consolidates numerous JJDPA programs, 
including Part C Special Emphasis grants, State challenge grants, boot 
camps, and JJDPA Title V incentive grants, under an enhanced $200 
million per year prevention challenge block grant to the States. The 
bill also reauthorizes the JJDPA Title II Part B State formula grants. 
In doing so, it also reforms the current core mandates on the States 
relating to the incarceration of juveniles to ensure the protection of 
juveniles in custody while providing state and local governments with 
needed flexibility.
  This flexibility is particularly important to rural states, where 
immediate access to a juvenile detention facility might be difficult. 
Since many communities cannot afford separate juvenile and adult 
facilities, law enforcement officers must drive hours to transport 
juvenile offenders to the nearest facility, instead of patrolling the 
streets. Another unintended consequence of JJDPA is the release of 
juvenile offenders because no beds are available in juvenile facilities 
or because law enforcement officials cannot afford to transport youths 
to juvenile facilities. Juvenile criminals are released even though 
space is available to detain them in adult facilities. Our reform will 
provide the states with a degree of flexibility which currently does 
not exist.
  However, this flexibility is not provided at the expense of juvenile 
inmate safety. The bill strictly prohibits placing juvenile offenders 
in jail cells with adults. No one supports the placing of children in 
cells with adult offenders. To be clear--nothing in the bill will 
expose juveniles to any physical contact by adult offenders. Indeed, 
the legislation is explicit that, if states are to qualify for federal 
funds, they may not place juvenile delinquents in detention under 
conditions in which the juvenile can have physical contact, much less 
be physically harmed by, an adult inmate.
  These provisions are largely based on H.R. 1818 from the 105th 
Congress, but are improved to ensure that abuse of juvenile delinquent 
inmates is not permitted by incorporating definitions of what 
constitutes unacceptable contact between juvenile delinquents and adult 
inmates.
  Third, and finally, our reform of the JJDPA reauthorizes and 
strengthens those other parts of the JJDPA that have proven effective. 
For example, the National Center for Missing and Exploited Children and 
the Runaway and Homeless Youth Act are reauthorized and funded. Gang 
prevention programs are reauthorized. And important, successful 
programs to provide mentoring for young people in trouble with the law 
or at risk of getting into trouble with the law are reauthorized and 
expanded. Operating through the Cooperative Extension Service program 
sponsored by the Department of Agriculture, the University of Utah has 
developed a ground-breaking and highly successful program that mentors 
to entire families--pairing college age mentors with juveniles in 
trouble or at risk of getting in trouble with the law, and pairing 
senior citizen couples with the juvenile's parents and siblings. This 
program gets great bang for the buck. So our bill provides 
demonstration funds to expand this program and replicate its success in 
other states.
  Finally, our bill provides an important new program to encourage 
state programs that provide accountability in their juvenile justice 
systems. All or nearly all of our states have taken great strides in 
reforming their systems, and it is time for the federal government's 
programs to catch up and provide needed assistance.
  Despite reforms in recent years, all too often, the juvenile justice 
system ignores the minor crimes that lead to the increasingly frequent 
serious and tragic juvenile crimes capturing headlines. Unfortunately, 
many of these crimes might have been prevented had the warning signs of 
early acts of delinquency or antisocial behavior been heeded. A 
delinquent juvenile's critical first brush with the law is a vital 
aspect of preventing future crimes, because it teaches an important 
lesson--what behavior will be tolerated. Accountability is not just 
about punishment--although punishment is frequently needed. It is about 
teaching consequences and providing rehabilitation to youth offenders.
  According to a recent Department of Justice study, juveniles 
adjudicated for so-called index crimes--such as murder, rape, robbery, 
assault, burglary, and auto theft--began their criminal careers at an 
early age. The average age for a juvenile committing an index offense 
is 14.5 years, and typically, by age 7, the future criminal is already 
showing minor behavior problems. If we can intervene early enough, 
however, we might avert future tragedies. Our bill provides a new 
Juvenile Accountability Block Grant to reform federal policy that has 
been complicit in the system's failure, and provide states with much 
needed funding for a system of graduated sanctions, including community 
service for minor crimes, electronically monitored home detention, boot 
camps, and traditional detention for more serious offenses.

[[Page 1101]]

  And let there be no mistake--detention is needed as well. Our first 
priority should be to keep our communities safe. We simply have to 
ensure that violent people are removed from our midst, no matter their 
age. When a juvenile commits an act as heinous as the worst adult 
crime, he or she is not a kid anymore, and we shouldn't treat them as 
kids.
  State receipt of the incentive grants would be conditioned on the 
adoption of three core accountability policies: the establishment of 
graduated sanctions to ensure appropriate correction of juvenile 
offenders, drug testing juvenile offenders upon arrest in appropriate 
cases; and recognition of victims rights and needs in the juvenile 
justice system.
  Meaningful reform also requires that a juvenile's criminal record 
ought to be accessible to police, courts, and prosecution, so that we 
can know who is a repeat or serious offender. Right now, these records 
simply are not generally available in NCIC, the national system that 
tracks adult criminal records. Thus, if a juvenile commits a string of 
felony offenses, and no record is kept, the police, prosecutors, judges 
or juries will never know what he did. Maybe for his next offense, 
he'll get a light sentence or even probation, since it appears he's 
committed only one felony in his life instead 10 or 15. Such a system 
makes no sense, and it doesn't protect the public.
  So the reform we offer in this bill also provides the first federal 
incentives for the integration of serious juvenile criminal records 
into the national criminal history database, together with federal 
funding for the system.
  Finally, we all recognize the value of education in preventing 
juvenile crime and rehabilitating juvenile offenders. When trouble-
causing juveniles remain in regular classrooms, they frequently make it 
difficult for all other students to learn. Yet, removing such juveniles 
from the classroom without addressing their educational needs virtually 
guarantees that they will fall further into the vortex of crime and 
delinquency. The costs are high--to the juvenile, but also to victims 
and to society. These juveniles too frequently become crime committing 
adults, with all the costs that implies--costs to victims, and the cost 
of incarcerating the offenders to protect the public. So our bill tries 
to break this cycle, by providing a three-year $45 million 
demonstration project to provide alternative education to juveniles in 
trouble with or at risk of getting in trouble with the law.
  The bill we introduce today authorizes significant funding for the 
programs I have described. In all, our bill authorizes $1 billion per 
year for 5 years, in the following categories: $450 million per year 
for Juvenile Accountability Block Grants; $435 million per year for 
prevention programs under the JJDPA, including $200 million for 
Juvenile Delinquency Prevention Block Grants, $200 million for Part B 
Formula grant prevention programs, and $35 million for Gangs, Mentoring 
and Discretionary grant programs; $75 million per year for grants to 
states to upgrade and enhance juvenile felony criminal record histories 
and to make such records available within NCIC, the national criminal 
history database used by law enforcement, the courts, and prosecutors; 
and $40 million per year for NIJ research and evaluation of the 
effectiveness of juvenile delinquency prevention programs.
  Additionally, the bill authorizes $100 million per year for joint 
Federal-State-local law enforcement task forces to address gang crime 
in areas with high concentrations of gang activity. $75 million per 
year of this funding is authorized for establishment and operation of 
High Intensity Interstate Gang Activity Areas, and the remaining $25 
million per year is authorized for community-based prevention and 
intervention for gang members and at-risk youth in gang areas.
  And, finally, as I have already noted, the bill authorizes $45 
million over 3 years for innovative alternative education programs to 
make our schools safer places of learning while helping ensure that the 
youth most at risk do not get left behind.
  Lastly, Mr. President, let me address a provision in the bill which 
will prohibit firearms possession by violent juvenile offenders. This 
section extends the ban in current law on firearm ownership by certain 
felons to certain juvenile offenders. Juveniles who are adjudicated 
delinquent for an offense which would be a serious violent felony as 
defined in 18 U.S.C. 3559(C)(2)(f)(i)--the federal three strikes 
statute--were the offense committed by an adult will no longer be able 
to legally own firearms. This is common sense. If tried and convicted 
as adults, these criminals would automatically forfeit their right to 
own a gun.
  However, we should learn our lesson as well from the so-called 
domestic violence gun ban enacted several years ago. If the offense 
records that allow us to know who is covered by the ban are not 
available, the law is hollow, or worse--it will be enforced only in 
arbitrary cases. For this reason, the ban we propose is prospective 
only, applying only to delinquent acts committed after records of such 
offenses are routinely available within the National Instant Check 
System instituted pursuant to the Brady Law.
  We should also resist seeing this provision as any sort of panacea. 
Laws banning criminals from owning firearms have not stopped them from 
doing so, for a simple reason--criminals do not respect or obey the 
law. So while this provision is an appropriate step, we should be under 
no illusion that it is the answer to our juvenile crime problem.
  Mr. President, I believe that we all agree that it is far better to 
prevent the fabric of civility from being rent than to deal with the 
aftermath of juvenile crime. In the face of a confounding problem like 
juvenile crime, it is tempting to look for easy answers. I do not 
believe that we should succumb to this temptation. We are faced, I 
believe, with a problem which cannot be solved solely by the enactment 
of new criminal prohibitions. It is at its core a moral problem. 
Somehow, too frequently we have failed as a society to pass along to 
the next generation the moral compass that differentiates right from 
wrong. This cannot be legislated. It will not be restored by the 
enactment of a new law or the implementation of a new program. But it 
can be achieved by communities working together to teach accountability 
by example and by early intervention when the signs clearly point to 
violent and antisocial behavior.
  Mr. President, that is what the bill we introduce is all about. It is 
a comprehensive approach to this national problem. I believe that it 
now is time for the Senate to act. I urge my colleagues to review this 
legislation, to support it, and to support its early debate and passage 
by the Senate.
  Mr. President, I ask unanimous consent that a bill summary prepared 
by the Judiciary Committee staff and an article by Patricia Cornwell be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

      The Violent and Repeat Juvenile Offender Accountability and 
        Rehabilitation Act of 1999--Section-by-Section Analysis

       Attached is a summary of the major provisions of S.   , the 
     Hatch-Sessions Violent and Repeat Juvenile Offender 
     Accountability and Rehabilitation Act of 1999, as introduced 
     January 19, 1999.
       Should you have any questions about the bill not answered 
     by this summary or the Committee Report, please call Mike 
     Kennedy or Rhett DeHart of the Senate Judiciary Committee 
     staff at (202) 224-5225.


                           general provisions

       Sec. 1  Short Title, Table of Contents. This section 
     entitles the bill as the ``Violent and Repeat Juvenile 
     Offender Act of 1999'', and provides a table of contents for 
     the bill.
       Sec. 2  Findings and Purpose. This section provides 
     Congressional findings related to juvenile crime, the 
     juvenile justice system, and the changes needed to reform the 
     juvenile justice system to curb youth violence, ensure 
     accountability by youthful criminals, improve federal 
     juvenile delinquency prevention efforts, and recognize the 
     needs of crime victims.
       Sec. 3  Severability. This section provides severability 
     for the provisions of the Act.


                    title i--juvenile justice reform

       This title reforms the procedures by which juveniles who 
     commit Federal crimes are prosecuted and punished.

[[Page 1102]]

       Sec. 101  Repeal of General Provision. This section repeals 
     the provision establishing the general practice of 
     surrendering to State authorities juveniles arrested for the 
     commission of Federal offenses.
       Sec. 102  Treatment of Federal Juvenile Offenders. General 
     Provisions: This section gives the U.S. Attorney the 
     discretion to prosecute juveniles age 14 years or older as 
     adults for violations of Federal law which are serious 
     violent felonies or serious drug offenses (as these terms are 
     defined in 18 U.S.C. 3559, the Federal 3-strike statute). 
     Juveniles 14 and older may be prosecuted as adults for any 
     other felony violation of Federal law only with the approval 
     of the Attorney General. If approval is not given, or, for 
     all misdemeanor violations of Federal law, juveniles would be 
     proceeded against as juveniles, or referred to State or 
     tribal authorities. Referral to state or tribal authorities 
     would be presumed in all cases of concurrent state and 
     federal jurisdiction, unless a state refused the case, or an 
     overriding federal interest existed. In the special case of 
     juveniles alleged to have committed a federal offense and who 
     have a prior occasion been tried and convicted as an adult in 
     federal court, waiver to adult status would be automatic.
       Reverse Waiver Provision: Juveniles 15 and younger charged 
     as an adult for serious violent felonies or serious drug 
     offenses, and juveniles of any age charged as an adult for 
     other felonies, may appeal their waiver to adult status. The 
     juvenile would have 20 days to seek a judicial order 
     returning the juvenile to juvenile status. The prosecutor 
     would be permitted in interlocutory appeal from an adverse 
     ruling, but a juvenile's appeal would be consolidated at the 
     end of the case.
       Application to Indian Tribes: This section also includes a 
     limited tribal opt-in for Native American juveniles 15 and 
     under when federal jurisdiction is based solely on the 
     commission of the offense on tribal land. A tribal opt-in to 
     federal procedures would be required to prosecute these 
     juveniles as adults, although they could still be adjudicated 
     in federal delinquency proceedings, even in the absence of a 
     tribal opt-in.
       Procedures: When prosecuted as adults, juveniles in Federal 
     criminal cases would be subject to the same procedures and 
     penalties as adults, including availability of records, open 
     proceedings, and sentencing procedures. Exceptions are 
     provided waiving the application of mandatory minimums to 
     juveniles under age 16 who have no previous serious violent 
     felony or serious drug offense convictions, and barring the 
     availability of the death penalty in any offense committed 
     before the juvenile was 18.
       This section also provides that juveniles tried as adults 
     and sentenced to prison must serve their entire sentences, 
     and may not be released on the basis of attaining their 
     majority, and applies to juveniles convicted as adults the 
     same provisions of victim restitution, including mandatory 
     restitution, that apply to adults.
       Sec. 103  Definitions. This section provides definitions 
     for terms used, including new definitions to ensure that 
     juveniles accused or convicted of Federal offenses are 
     separated from adults and to conform the definition of the 
     term ``juvenile'' with the procedural changes made by this 
     title.
       Sec. 104  Notification after Arrest. This section conforms 
     the requirement, in 18 U.S.C. 5033, that certain persons be 
     notified of the arrest of a juvenile for a Federal crime, 
     with the procedural changes in section 102 of this subtitle, 
     which vests discretion to prosecute juveniles as adults with 
     the U.S. Attorney for the district in the appropriate 
     jurisdiction. This section also provides for the notification 
     of the juveniles' parents or guardians, and prohibits the 
     post-arrest housing of juveniles with adults.
       Sec. 105  Release and Detention Prior to Disposition. This 
     section provides for pretrial detention juveniles tried as 
     adults on the same basis as adults, and prohibits the 
     pretrial or pre-disposition detention of juveniles with 
     adults.
       Sec. 106  Speedy Trial. This section extends, from 30 to 70 
     days, the time in which the trial of a juvenile in detention 
     must be commenced, and applies in juvenile cases the same 
     tolling provisions for such time period that apply in adult 
     prosecutions.
       Sec. 107  Dispositional Hearings. This section provides for 
     the sentencing of that juveniles found to be delinquent, but 
     not tried as adults. It provides for a hearing on the matter 
     within 40 days of an adjudication of delinquency, and 
     provides for victim allocution at the hearing. The section 
     provides a range of sentencing options to the court, 
     including probation, fines, restitution, and/or imprisonment, 
     and provides that terms of imprisonment may be imposed upon 
     them for the same term as adults, except that such 
     imprisonment must be terminated on the juvenile's 26th 
     birthday. Juveniles sentenced to imprisonment may not be 
     released solely on the basis of attaining their majority.
       Sec. 108  Use of Juvenile Records. This section provides 
     that the federal criminal records of juveniles tried as 
     adults, and the federal delinquency records of juveniles 
     adjudicated delinquent for certain serious offenses such as 
     murder, rape, armed robbery, and sexual abuse or assault, are 
     to be treated for all purposes in the same manner as the 
     records of adults for the same offenses. Other federal felony 
     juvenile criminal or delinquency records would be treated the 
     same as adult records for criminal justice or national 
     security background check purposes.
       This section also permits juvenile federal felony juvenile 
     criminal and delinquency records to be provided to schools 
     and colleges under rules issued by the Attorney General, 
     provided that recipients of the records are held to privacy 
     standards and that the records not be used to determine 
     admission.
       Sec. 109  Implementation of a Sentence for Juvenile 
     Offenders. This section provides for the implementation of a 
     sentence on a delinquent or criminal juvenile and directs the 
     Bureau of Prisons to not confine juveniles in any institution 
     where the juvenile would not be separated from adult inmates.
       Sec. 110  Magistrate Judge Authority Regarding Juvenile 
     Defendants. This section extends the jurisdiction of Federal 
     magistrate judges to class A misdemeanors involving 
     juveniles; permits magistrate judges to impose terms of 
     imprisonment on juveniles, and conforms the section 
     conferring authority on magistrate judges with the procedural 
     changes made by section 102.
       Sec. 111  Federal Sentencing Guidelines. This section 
     conforms the Sentencing Reform Act to ensure that the Federal 
     Sentencing Guidelines relating to maximum penalties for 
     violent crimes and serious drug crimes apply to juveniles 
     tried as adults.
       This section also amends the Sentencing Reform Act to 
     direct the Sentencing Commission to promulgate sentencing 
     guidelines for sentencing juveniles tried as adults in 
     Federal court, and for dispositional hearings (the equivalent 
     of sentencing) for juveniles adjudicated delinquent in the 
     Federal system.
       Sec. 112  Study and Report on Indian Tribal Jurisdiction. 
     This section requires the Attorney General to study and 
     report to the Congress on the capabilities of tribal courts 
     and criminal justice systems relating to the prosecution of 
     juvenile criminals under tribal jurisdiction, and requires 
     the Attorney General to evaluate an expansion of tribal court 
     criminal jurisdiction.


                        title ii--juvenile gangs

       Sec. 201  Solicitation or Recruitment of Persons in 
     Criminal Gang Activity. This section makes the recruitment or 
     solicitation of persons to participate in gang activity 
     subject to a one-year minimum and 10-year maximum penalty, or 
     a fine of up to $250,000. If a minor is recruited or 
     solicited, the minimum penalty is increased to four years. In 
     addition, a person convicted of this crime would have to pay 
     the costs of housing, maintaining, and treating the juvenile 
     until the juvenile reaches the age of 18 years.
       Sec. 202  Increased Penalties for Using Minors to 
     Distribute Drugs. This section increases the penalties for 
     using minors to distribute controlled substances.
       Sec. 203  Penalties for Use of Minors in Crimes of 
     Violence. This section increases twofold, and for a second or 
     subsequent offense threefold, the penalties for using minors 
     in the commission of a crime of violence.
       Sec. 204  Amendment of Sentencing Guidelines With Respect 
     to Body Armor. This section directs the United States 
     Sentencing Commission to provide a minimum two level 
     sentencing enhancement for any defendant committing a Federal 
     crime while wearing body armor.
       Sec. 205  High Intensity Interstate Gang Activity Areas. 
     This section authorizes the Attorney General to establish 
     joint agency task forces to address gang crime in areas with 
     high concentrations of gang activity. This provision 
     authorizes $100 million per year for this program; $75 
     million per year is authorized for establishment and 
     operation of High Intensity Interstate Gang Activity Areas, 
     and $25 million per year is authorized for community-based 
     gang prevention and intervention for gang members and at-risk 
     youth in gang areas.
       Sec. 206  Increasing the Penalty for Using Physical Force 
     to Tamper With Witnesses, Victims, or Informants. This 
     section increases the penalty from a maximum of 10 years' 
     imprisonment to a maximum of 20 years' imprisonment for using 
     or threatening physical force against any person with intent 
     to tamper with a witness, victim, or informant. This section 
     also adds a conspiracy penalty for obstruction of justice 
     offenses involving victims, witnesses, and informants. In 
     addition, this section makes traveling in interstate or 
     foreign commerce to bribe, threaten or intimidate a witness 
     to delay or influence testimony in a State criminal 
     proceeding a violation of the Federal Travel Act, 18 U.S.C. 
     Section 1952.


  title iii--juvenile crime control, accountability, and delinquency 
                               prevention

       This title reforms and enhances federal assistance to State 
     and local juvenile crime control and delinquency prevention 
     programs. Subtitle A amends and reauthorizes the Juvenile 
     Justice and Delinquency Prevention Act of 1974 (JJDPA), to 
     provide assistance to States for effective youth crime 
     control and accountability.
       Sec. 301  Findings; Declaration of Purpose; Definitions. 
     This section rewrites Title I of the JJDPA. It updates and 
     revises the Congressional findings and declaration of purpose 
     contained in the JJDPA to reflect the

[[Page 1103]]

     reality of violent juvenile crime, promote the primacy of 
     accountability in the juvenile justice system, and recognize 
     the rights and needs of victims of juvenile crime. This 
     section also revises and updates the definitions governing 
     the JJDPA.
       Sec. 302  Juvenile Crime Control and Delinquency 
     Prevention. This section rewrites Title II of the JJDPA. It 
     reforms and renames the current Office of Juvenile Justice 
     and Delinquency Prevention within the Department of Justice, 
     improves services to State and local governments, and reforms 
     and streamlines existing JJDPA grant programs. Among the 
     specific provisions of the rewritten JJDPA Title II:
       Reforms JJDPA Title II Part A--the Office of Juvenile 
     Justice and Delinquency Prevention (OJJDP) of the Department 
     of Justice, is renamed the Office of Juvenile Crime Control 
     and Prevention (OJCCP), with an Administrator appointed by 
     the President and confirmed by the Senate. This section also 
     enhances the effectiveness of the OJCCP by requiring the 
     OJCCP Administrator to: present to Congress annual plans, 
     with measurable goals, to control and prevent youth crime; 
     coordinate all Federal programs relating to controlling and 
     preventing youth crime; disseminate to States and local 
     governments data on the prevention, correction and control of 
     juvenile crime and delinquency, and report on successful 
     programs and methods; and serve as a single point of contact 
     for States, localities, and private entities to apply for and 
     coordinate all federal assistance and programs related to 
     juvenile crime control and delinquency prevention.
       Consolidates numerous JJDPA programs, including Part C 
     Special Emphasis grants, State challenge grants, boot camps, 
     and JJDPA Title V incentive grants, under an enhanced 
     prevention challenge block grant to the States.
       Reauthorizes the State formula grants under Part B of Title 
     II of the JJDPA:
       Reforms the 3 current ``core mandates'' on the States 
     relating to the incarceration of juveniles (known as sight 
     and sound separation, jail removal, and status offender 
     mandates,) to ensure the protection of juveniles in custody 
     while providing state and local governments with needed 
     flexibility; provisions are based on H.R. 1818 from the 105th 
     Congress, but to ensure that abuse of juvenile delinquent 
     inmates is not permitted, includes modified definitions from 
     the 105th Congress S. 10 regarding what constitutes contact 
     between juveniles and adults--no prohibited physical contact 
     or sustained oral communication would permitted between 
     juveniles delinquents in detention and adult inmates;
       Modifies the current ``core mandate'' requiring states to 
     address efforts to reduce the disproportionate number of 
     minorities in juvenile detention in comparison with their 
     proportion to the population at large, to make the language 
     race-neutral and constitutional;
       The four ``core mandates'' retained in modified form are 
     each enforceable by a 12.5 percent reduction in a State's 
     Part B funding for non-compliance. The Administrator may 
     waive the penalty.
       Revises JJDPA Title II Part C, to enhance federal research 
     efforts into successful juvenile crime control and 
     delinquency prevention programs; reauthorizes JJDPA Title II 
     Part D Gang prevention programs, and reforms the program to 
     provide an emphasis on the disruption and prosecution of 
     gangs; includes a discretionary prevention grant program 
     designated as Part E of Title II of the JJDPA; retains the 
     current Part G Mentoring program under Title II of the JJDPA, 
     redesignating it as Part F, and adding a pilot program to 
     encourage and develop mentoring programs that focus on the 
     entire family instead of simply the juvenile and which 
     utilize the existing resources and infrastructure of the 
     Cooperative Extension Services of Land Grant Universities; 
     and designates JJDPA Title II Part G for administrative 
     provisions, including: providing rules against use of federal 
     funds for behavior control experimentation, lobbying, or 
     litigation; subjecting JJDPA and Juvenile Accountability 
     Block Grants (in Title III, Subtitle B of this bill) to a 
     religious and charitable non-discrimination provision cross-
     referenced from the welfare reform law; providing significant 
     funding directly from the Department of Justice for juvenile 
     delinquency prevention and juvenile accountability programs 
     in Indian country; and providing authorizations of 
     appropriations for the JJDPA and the Juvenile Accountability 
     Block Grants, as follows:
       Authorizes $1 billion per year for five years, under the 
     following formula: $450 million (45%) for Juvenile 
     Accountability Block Grants; $435 million (43.5%) for 
     prevention programs under the JJDPA, including $200 million 
     for Juvenile Delinquency Prevention Block Grants, $200 
     million for Part B Formula grant prevention programs, and $35 
     million for Gangs, Mentoring and Discretionary grant 
     programs; $75 million (7.5%) for grants to states to upgrade 
     and enhance juvenile felony criminal record histories and to 
     make such records available within NCIC, the national 
     criminal history database used by law enforcement, the 
     courts, and prosecutors; and $40 million (4%) for NIJ 
     research and evaluation of the effectiveness of juvenile 
     delinquency prevention programs.
       Sec. 303  Runaway and Homeless Youth. This section reforms 
     the Runaway and Homeless Youth program, and reauthorizes it 
     through FY 2004. The reforms steamline the program, provide 
     for targeting federal assistance to areas with the greatest 
     need, and make numerous technical changes.
       Sec. 304  National Center for Missing and Exploited 
     Children. This section improves and reauthorizes the Missing 
     and Exploited Children program through FY 2004, providing on-
     going authorization for grants to the National Center for 
     Missing and Exploited Children.
       Sec 305.  Transfer of Functions and Savings Provisions. 
     This section provides technical and administrative rules to 
     transfer functions, and to govern the transition from the 
     Office of Juvenile Justice and Delinquency Prevention to the 
     Office of Juvenile Crime Control and Prevention.

Subtitle B  Accountability for Juvenile Offenders and Public Protection 
                            Incentive Grants

       Sec. 321  Block Grant Program. Accountability Block Grant: 
     This section establishes an incentive block grant program for 
     States, authorized at $450 million for each of the next five 
     fiscal years, as well as a separate $50 million per year 
     grant program for the upgrade and enhancement of juvenile 
     criminal records. The incentive block grants would fund a 
     variety of programs, such as constructing juvenile offender 
     detention facilities, implementing graduated sanctions 
     programs; fingerprinting or conducting DNA tests on juvenile 
     offenders; establishing record-keeping ability; establishing 
     SHOCAP programs; enforcing truancy laws; and various 
     prevention programs including after-school youth activities, 
     antigang initiatives, literacy programs, and job training 
     programs. Indian tribes receive separate grants under this 
     section.
       State receipt of the incentive grants would be conditioned 
     on the adoption of three core accountability policies: the 
     establishment of graduated sanctions to ensure appropriate 
     correction of juvenile offenders, drug testing juvenile 
     offenders upon arrest in appropriate cases; and recognition 
     of victims rights and needs in the juvenile justice system.
       Fifty percent of the funds under the grant program are 
     designated for implementing graduated sanctions or increasing 
     juvenile detention space if needed by the State. Federal the 
     remaining fifty percent can be used for any authorized grant 
     purpose. Detention space construction projects must be funded 
     by not less than fifty percent State or local (i.e., 
     nonfederal grant) money.
       The block grant includes a pass-through requirement 
     intended to provide a formula for local funding that reflects 
     the needs and responsibilities of state and local levels of 
     government. Seventy percent of the funds received by the 
     State under this block grant must be passed through to the 
     local level, unless the state organizes its juvenile justice 
     system exclusively on the State level.
       Juvenile Records Grants: Criminal and juvenile record 
     improvement grants for the States are authorized to encourage 
     states to treat the records of juveniles who commit and are 
     adjudicated delinquent for the felonies of murder, armed 
     robbery, and sexual assault be treated the same as adult 
     criminal records for the same offenses in the state, and to 
     treat records of juveniles who commit any other felony be 
     treated, for criminal justice purposes only, the same as 
     adult criminal records for the same offenses. Such records 
     would be available interstate within the NCIC system.
       Sec. 322  Pilot Program to Promote Replication of Recent 
     Successful Juvenile Crime Reduction Strategies. This section 
     authorizes the Attorney General to fund pilot programs to 
     replicate the successful juvenile crime reduction program 
     utilized by Boston, Massachusetts. Pilot program grant 
     recipients would adopt a juvenile crime reduction strategy 
     involving close collaboration among Federal, State, and local 
     law enforcement authorities, and including religious 
     affiliated or fraternal organizations, school officials, 
     social service agencies, and parent or local grass roots 
     organizations. Emphasis would be placed on initiating 
     effective crime prevention programs and tracing firearms 
     seized from crime scenes or offenders in an effort to 
     identify illegal gun traffickers who are supplying weapons to 
     gangs and other criminal enterprises
       Sec. 323  Repeal of Unnecessary and Duplicative Programs. 
     This section repeals duplicative and wasteful programs 
     enacted as a part of the 1994 crime law, including the Ounce 
     of Prevention Council, the Model Intensive Grant program, the 
     Local Partnership Act, the National Community Economic 
     Partnership, the Urban Recreation and At-Risk Youth Program, 
     and the Family Unity Demonstration Project.
       Sec. 324  Extension of Violent Crime Reduction Trust Fund. 
     This section extends the Violent Crime Reduction Trust Fund, 
     established in the 1994 omnibus crime law, to fund programs 
     authorized by this act.
       Sec. 325  Reimbursement of States for the Costs of 
     Incarcerating Juvenile Aliens. This section adds juvenile 
     aliens to the State Criminal Alien Assistance Program, which 
     provides reimbursement to the States for the costs of 
     incarcerating criminal aliens.
       Sec. 326  Sense of Congress. This section provides the 
     sense of Congress that States

[[Page 1104]]

     should enact legislation to provide that if an offense that 
     would be a capital offense if committed by an adult is 
     committed by a juvenile between the ages of 10 and 14, the 
     juvenile could, with judicial approval, be tried and punished 
     as an adult, provided the death penalty would not be 
     available in such cases.

      Subtitle C--Alternative Education and Delinquency Prevention

       Sec. 331  Alternative Education. This section amends the 
     Elementary and Secondary Education Act (ESEA) to provide 
     demonstration grants to state and local education agencies 
     for alternative education in appropriate settings for 
     disruptive or delinquent students, to improve the academic 
     and social performance of these students and to improve the 
     safety and learning environment of regular classrooms. 
     Certain matching amounts required under this program could be 
     made from amounts available to the State or local governments 
     under the JJDPA. Appropriations under the ESEA of $15 million 
     per year for four years are authorized.


                   Title IV--Miscellaneous Provisions

                     Subtitle A--General Provisions

       Sec. 401  Prohibition on Firearms Possession by Violent 
     Juvenile Offenders. This section extends the ban on firearm 
     ownership by certain felons to persons who, as juveniles, are 
     adjudicated delinquent for an offense which would be a 
     serious violent felony as defined in 18 U.S.C. 
     3559(c)(2)(F)(i) (the federal three strikes statute), were 
     the offense committed by an adult. The ban is prospective, 
     applying only to delinquent acts committed after records of 
     such offenses are routinely available within the National 
     Instant Check System instituted pursuant to the Brady Law.

                 Subtitle B--Jail-Based Substance Abuse

       Sec. 421  Jail-Based Substance Abuse Treatment Program. 
     This section provides that 10 percent of grants to States for 
     drug treatment in prisons (RSAT grants) should be directed to 
     qualified treatment programs in jails; under current law, 
     these funds are limited to prison treatment. This section 
     also allows RSAT grants to be used to provide post-
     incarceration substance abuse treatment for former inmates if 
     the Governor certifies to the U.S. Attorney General that the 
     State is providing, and will continue to provide, an adequate 
     level of treatment services to incarcerated inmates.
                                  ____


                        When the Fabric Is Rent

                         (By Patricia Cornwell)

       There was a saying in the morgue during those long six 
     years I worked there. When a person is touched by violence, 
     the fabric of civility is forever rent, or ripped or 
     breached, whatever word is most graphic to you.
       Our country is the most violent one in the free world, and 
     as far as I'm concerned, we are becoming increasingly 
     incompetent in preventing and prosecuting cruel crimes that 
     we foolishly think happen only to others. There was another 
     saying in the morgue. The one thing every dead person had in 
     common in that place was he never thought he'd end up there. 
     He never imagined his name would be penned in black ink in 
     the big black book that is ominously omnipresent on a counter 
     top in the autopsy suite.
       I have seen hundreds, maybe close to a thousand dead bodies 
     by now, many of them ruined by another person's hands. I 
     return to the morgue at least two or three times a year to 
     painfully remind myself that what I'm writing about is awful 
     and final and real.
       I suffer from nightmares and don't remember the last time I 
     had a pleasant dream. I have very strong emotional responses 
     to crimes that have nothing to do with me, such as Versace's 
     murder, and more recently, the random shooting deaths of 
     Capitol Police Agent John Gibson and Officer Jacob Chestnut. 
     I can't read sad, scary or violent books. I watched only half 
     of ``Titanic'' because I could not bear its sadness. I 
     stormed out of Ann Rice's ``Interview With A Vampire,'' so 
     furious my hands were shaking because the movie is such an 
     outrageous trivialization and celebration of sexual violence. 
     For me the suffering, the blood, the deaths are real.
       I'd like to confront Ann Rice with bitemarks and other 
     sadistic wounds that are not special effects. I'd like to 
     sentence Oliver Stone to a month in the morgue, make him sit 
     in the cooler for a while and see what an audience of victims 
     has to say about his films. I'd like O.J. Simpson to have 
     total recall and suffer, go broke, be ostracized, never be 
     allowed on a golf course again. I was in a pub in London when 
     that verdict was read. I'll never forget the amazed faces of 
     a suddenly mute group of beer-drinking Brits, or the shame my 
     friends and I felt because in America it is absolutely true. 
     Justice is blind.
       Justice has stumbled off the road of truth and fallen 
     headlong into a thicket of subjective verdicts where evidence 
     doesn't count and plea bargains that are such a bargain they 
     are fire sales. I've begun to fear that the consequences and 
     punishment of violent crime have become some sort of mindless 
     multiple choice, a ``Let's Make A Deal,'' a ``Let's microwave 
     the popcorn and watch Court TV.''
       I have been asked to tell you what my fictional character 
     Dr. Scarpetta would do if she were the crime czar or 
     Virginia, of America. Since she and I share the same opinions 
     and views, I am stepping out from behind my curtain of 
     imagined deeds and characters and telling you what I feel and 
     think.
       It startles me to realize that at age 42, I have spent 
     almost half my life studying crime, of living and working in 
     it's pitifully cold, smelly, ugly environment. I am often 
     asked why people cheat, rob, stalk, slander, maim and murder. 
     How can anybody enjoy causing another human being or any 
     living creature destruction and pain? I will tell you in 
     three words: Abuse of power. Everything in life is about the 
     power we appropriate for good or destruction, and the 
     ultimate overpowering of a life is to make it suffer and end.
       This includes children who put on camouflage and get into 
     the family guns. We don't want to believe that 12, 13, 16 
     year old youths are unredeemable. Most of them aren't. But 
     it's time we face that some of them have transgressed beyond 
     forgiveness, certainly beyond trust. Not all victims I have 
     seen pass through the morgue were savaged by adults. The 
     creative cruelty of some young killers is the worst of the 
     worst, images of what they did to their victims ones I wish I 
     could delete.
       About a year ago, I began researching juvenile crime for 
     the follow-up of ``Hornet's Next'' (Southern Cross, January, 
     '99) and my tenth Scarpetta book (unfinished and untitled 
     yet). This was a territory I had yet to explore. I was 
     inspired by the depressing fact that in the last ten years, 
     shootings, hold-ups at ATM's, and premeditated murders 
     committed by juveniles have risen 160 percent. As I ventured 
     into my eleventh and twelfth novels, I wondered what my 
     crusading characters would do with violent children.
       So I spent months in Raleigh watching members of the 
     Governor's Commission on Juvenile Crime and Justice debate 
     and rewrite their juvenile crime laws, as Virginia did in 
     1995 under the leadership of Jim Gilmore. I quizzed Senator 
     Orrin Hatch about his youth violence bill, S. 10, a federal 
     approach to reforming a juvenile justice system that is 
     failing our society. I toured detention homes in Richmond and 
     elsewhere. I sat in on juvenile court cases and talked to 
     inmates who were juveniles when they began their lives of 
     crime.
       While it is true that many violent juveniles have abuse, 
     neglect, and the absence of values in their homes, I maintain 
     my belief that all people should be held accountable for 
     their actions. Our first priority should be to keep our 
     communities safe. We must remove violent people from our 
     midst, no matter their age. As Marcia Morey, executive 
     director of North Carolina's juvenile crime commission, 
     constantly preaches, ``We must stop the hemorrhage first.''
       When the trigger is pulled, when the knife is plunged, kids 
     aren't kids anymore. We should not shield and give excuses 
     and probation to violent juveniles who, odds are, will harm 
     or kill again if they are returned to our neighborhoods and 
     schools. We should not treat young violent offenders with 
     sealed lips and exclusive proceedings.
       ``The secrecy and confidentiality of our system have hurt 
     us,'' says Richmond Juvenile and Domestic Relations District 
     Court Judge Kimberly O'Donnell. ``What people can't see and 
     hear is often difficult for them to understand.''
       Virginia has opened its courtrooms to the public, and Judge 
     O'Donnell encourages people to sit in hers and see for 
     themselves those juveniles who are remorseless and those who 
     can be saved. Most juveniles who end up in court are not 
     repeat offenders. But for that small number who threaten us 
     most, I advocate hard, non-negotiable judgment. Most of what 
     I would like to see is already being done in Virginia. But we 
     need juvenile justice reform nationally, a system that is 
     sensible and consistent from state to state.
       As it is now, if a juvenile commits a felony in Virginia, 
     when he turns 18 his record is not expunged and will follow 
     him for the rest of his days. But were he to commit the same 
     felony in North Carolina, at 16 he'll be released from a 
     correctional facility with no record of any crime he 
     committed in that state. Let's say he's back on the street 
     and returns to Virginia. Now he's a juvenile again, and 
     police, prosecutors, judges or juries will never know what he 
     did in North Carolina.
       If he moves to yet another state where the legal age is 21, 
     he can commit felonies for three or four more years and have 
     no record of them, either. Maybe by then he's committed 
     fifteen felonies but is only credited with the one he 
     committed in Virginia. Maybe when he becomes an adult and is 
     violent again, he gets a light sentence or even probation, 
     since it appears he's committed only one felony in his life 
     instead of fifteen. He'll be back among us soon enough. Maybe 
     his next victim will be you.
       If national juvenile justice reform were up to me, I'd be 
     strict. I would not be popular with extreme child advocates. 
     If I had my way, it would be routine that when any juvenile 
     commits a violent crime, his name and personal life are 
     publicized. Records of juveniles who commit felonies should 
     not be expunged when the individual becomes an adult. Mug 
     shots, fingerprints and the DNA of violent juveniles should, 
     at the very least, be available to police, prosecutors, and 
     schools, and if they young violent offender

[[Page 1105]]

     has an extensive record and commits another crime, plea 
     bargaining should be limited or at least informed.
       Juveniles who rape, murder or commit other heinous acts 
     should be tried as adults, but judges should have the 
     discretionary power to decide when this is merited. I want to 
     see more court-ordered restitution and mediation. Let's turn 
     off the TV's in correctional centers and force assailants, 
     robbers, thieves to work to pay back what they've destroyed 
     and taken, as much as that is possible. Confront them with 
     their victims, face to face. Perhaps a juvenile might realize 
     the awful deed he's done if his victim is suddenly a person 
     with feelings, loved ones, scars, a name.
       Prevention is a more popular word than punishment. But the 
     solution to what's happening in our society, particularly to 
     our youths, is simpler and infinitely harder than any 
     federally or privately funded program. All of us live in 
     neighborhoods. Unless you are in solitary confinement or a 
     coma, you are aware of others around you. Quite likely you 
     are exposed to children who are sad, lost, ignored, neglected 
     or abused. Try to help. Do it in person.
       I remember my first few years in Richmond when I was living 
     at Union Theological Seminary, where my former husband was a 
     student and I was a struggling, somewhat failed writer. 
     Charlie and I spent five years in a seminary apartment 
     complex where there was a little boy who enjoyed throwing a 
     tennis ball against the building in a staccato that was 
     torture to me.
       I was working on novels nobody wanted and every time that 
     ball thunked against brick, I lost my train of thought. I'd 
     popped out of my chair and fly outside to order the kid to 
     stop, but somehow he was always gone without a trace, silence 
     restored for an hour or two. One day I caught him. I was 
     about to reprimand him when I saw the fear and loneliness in 
     his eyes.
       ``What's your name?'' I asked.
       ``Eddie,'' he said.
       ``How old are you?''
       ``Ten.''
       ``It's not a good idea to throw a ball against the 
     building. It makes it hard for some of us to work.''
       ``I know.'' He shrugged.
       ``If you know, then why do you do it?''
       ``Because I have no one to play catch with me,'' he 
     replied.
       My memory lit up with acts of kindness when I was a lonely 
     child living in the small town of Montreat, North Carolina. 
     Adult neighbors had taken time to play tennis with me. They 
     had invited me, the only girl in town, to play baseball or 
     touch football with the boys.
       Billy Graham's wife, Ruth, used to stop her car to see how 
     I was or if I needed a ride somewhere. Years later, she 
     befriended me when I was a very confused teenager who felt 
     rather worthless. Were it not for her kindness and 
     encouragement, I doubt I would be writing this editorial. 
     Maybe I wouldn't have amounted to much. Maybe I would have 
     gotten into serious trouble. Maybe I'd be dead.
       Eddie and I started playing catch. I gave him tennis 
     lessons and probably ruined his backhand for life. He told me 
     all about himself and amused me with his stories. We became 
     pals. He never threw a tennis ball against the building 
     again.
       We must protect ourselves from all people who have proven 
     to be dangerous. But we should never abandon those who can be 
     helped or are at least are worthy of the effort. If you save 
     or change one life, you have added something priceless to 
     this world. You have left it better than you found it.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Breaux):
  S. 255. A bill to combat waste, fraud, and abuse in payments for home 
health services provided under the Medicare program, and to improve the 
quality of those home health services; read twice.


             HOME HEALTH INTEGRITY PRESERVATION ACT OF 1999

  Mr. GRASSLEY. Mr. President, earlier today, I introduced the Home 
Health Integrity Preservation Act of 1999. I am pleased that Senator 
Breaux cosponsored this bill, as he did when we introduced it in the 
105th Congress. This legislation will be an important tool in combating 
the waste, fraud and abuse that has threatened the integrity of the 
Medicare home health benefit.
  Although the majority of home health agencies are honest, legitimate, 
businesses, it is clear that there have been unscrupulous providers. In 
July 1997, the Senate Special Committee on Aging, which I chair, held a 
hearing on this topic. The hearing exposed serious rip-offs of the 
Medicare trust fund, and highlighted areas that need more stringent 
oversight.
  In response to the hearing, Senator Breaux and I followed up with a 
roundtable discussion on home health fraud. The roundtable brought 
together key players with a variety of perspectives. Participants 
included law enforcement, the Administration, and the home health 
industry.
  The roundtable yielded a number of proposals which were shaped into 
draft legislation and circulated to a wide variety of stakeholders. In 
response to comments, the draft was changed to address legitimate 
concerns that were raised. The result is a balanced piece of 
legislation that includes important safeguards against fraud and abuse 
of the system, but does not stifle the growth of legitimate providers.
  The Home Health Integrity Preservation Act of 1999 would do the 
following:
  It would heighten scrutiny of new home health agencies before they 
enter the Medicare program, and during their early years of Medicare 
participation.
  It would improve standards and screening for home health agencies, 
administrators and employees.
  It would require audits of home health agencies whose claims exhibit 
unusual features that may indicate problems, and improve HCFA's ability 
to identify such features.
  It would require agencies to adopt and implement fraud and abuse 
compliance programs.
  It would increase scrutiny of branch offices, business entities 
related to home health agencies, and changes in operations.
  It would make more information on particular home health agencies 
available to beneficiaries.
  It would create an interagency Home Health Integrity Task Force, led 
by the Office of the Inspector General of Health and Human Services.
  It would reform bankruptcy rules to make it harder for all Medicare 
providers, not just home health agencies, to avoid penalties and 
repayment obligations by declaring bankruptcy.
  This legislation is an important step in ensuring that seniors 
maintain access to high quality home care services rendered by 
reputable providers. I urge my colleagues to join me in this effort by 
cosponsoring 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 bill was ordered to be printed in the 
Record, as follows:

                                 S. 255

       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 ``Home 
     Health Integrity Preservation Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Additional conditions of participation for home health 
              agencies.
Sec. 3. Surveyor training in reimbursement and coverage policies.
Sec. 4. Surveys and reviews.
Sec. 5. Prior patient load.
Sec. 6. Establishment of standards and procedures to improve quality of 
              services.
Sec. 7. Notification of availability of a home health agency's most 
              recent survey as part of discharge planning process.
Sec. 8. Home health integrity task force.
Sec. 9. Application of certain provisions of the bankruptcy code.
Sec. 10. Study and report to Congress.
Sec. 11. Effective date.

     SEC. 2. ADDITIONAL CONDITIONS OF PARTICIPATION FOR HOME 
                   HEALTH AGENCIES.

       (a) Qualifications of Managing Employees.--Section 1891(a) 
     of the Social Security Act (42 U.S.C. 1395bbb(a)) is amended 
     by adding at the end the following:
       ``(7) The agency shall have--
       ``(A) sufficient knowledge, as attested by the managing 
     employees (as defined in section 1126(b)) of the agency 
     (pursuant to subsection (c)(2)(C)(iv)(II)) using standards 
     established by the Secretary, of the requirements for 
     reimbursement under this title, coverage criteria and claims 
     procedures, and the civil and criminal penalties for 
     noncompliance with such requirements; and
       ``(B) managing employees with sufficient prior education or 
     work experience, according to standards determined by the 
     Secretary, in the delivery of health care.''.
       (b) Compliance Program.--Section 1891(a) of the Social 
     Security Act (42 U.S.C. 1395bbb(a)) (as amended by subsection 
     (a)) is amended by adding at the end the following:
       ``(8) The agency has developed and implemented a fraud and 
     abuse compliance program.''.
       (c) Availability of Survey.--Section 1891(a) of the Social 
     Security Act (42 U.S.C. 1395bbb(a)) (as amended by subsection 
     (b)) is amended by adding at the end the following:

[[Page 1106]]

       ``(9) The agency, before the agency provides any home 
     health services to a beneficiary, makes available to the 
     beneficiary or the representative of the beneficiary a 
     summary of the pertinent findings (including a list of any 
     deficiencies) of the most recent survey of the agency 
     relating to the compliance of such agency. Such summary shall 
     be provided in a standardized format and may, at the 
     discretion of the Secretary, also include other information 
     regarding the agency's operations that are of potential 
     interest to beneficiaries, such as the number of patients 
     served by the agency.''.
       (d) Notice of New Home Health Service, New Branch Office, 
     and New Joint Venture.--Section 1891(a)(2) of the Social 
     Security Act (42 U.S.C. 1395bbb(a)(2)) is amended to read as 
     follows:
       ``(2)(A) The agency notifies the agency's fiscal 
     intermediary and the State entity responsible for the 
     licensing or certification of the agency--
       ``(i) of a change in the persons with an ownership or 
     control interest (as defined in section 1124(a)(3)) in the 
     agency,
       ``(ii) of a change in the persons who are officers, 
     directors, agents, or managing employees (as defined in 
     section 1126(b)) of the agency,
       ``(iii) of a change in the corporation, association, or 
     other company responsible for the management of the agency,
       ``(iv) that the agency is providing a category of skilled 
     service that it was not providing at the time of the agency's 
     most recent standard survey,
       ``(v) that the agency is operating a new branch office that 
     was not in operation at the time of the agency's most recent 
     standard survey, and
       ``(vi) that the agency is involved in a new joint venture 
     with other health care providers or other business entities.
       ``(B) The notice required under subparagraph (A) shall be 
     provided--
       ``(i) for a change described in clauses (i), (ii), and 
     (iii) of such subparagraph, within 30 calendar days of the 
     time of the change and shall include the identity of each new 
     person or company described in the previous sentence,
       ``(ii) for a change described in clause (iv) of such 
     subparagraph, within 30 calendar days of the time the agency 
     begins providing the new service and shall include a 
     description of the service,
       ``(iii) for a change described in clause (v) of such 
     subparagraph, within 30 calendar days of the time the new 
     branch office begins operations and shall include the 
     location of the office and a description of the services that 
     are being provided at the office, and
       ``(iv) for a change described in clause (vi) of such 
     subparagraph, within 30 calendar days of the time the agency 
     enters into the joint venture agreement and shall include a 
     description of the joint venture and the participants in the 
     joint venture.''.

     SEC. 3. SURVEYOR TRAINING IN REIMBURSEMENT AND COVERAGE 
                   POLICIES.

       Section 1891(d)(3) of the Social Security Act (42 U.S.C. 
     1395bbb(d)(3)) is amended--
       (1) by striking ``relating to the performance'' and 
     inserting ``relating to--
       ``(A) the performance'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(B) requirements for reimbursement and coverage of 
     services under this title.''.

     SEC. 4. SURVEYS AND REVIEWS.

       (a) Additional Requirements for Survey.--Section 
     1891(c)(2)(C) of the Social Security Act (42 U.S.C. 
     1395bbb(c)(2)(C)) is amended--
       (1) in clause (i)(I)--
       (A) by striking ``purpose of evaluating'' and inserting 
     ``purpose of--
       ``(aa) evaluating''; and
       (B) by adding at the end the following:
       ``(bb) evaluating whether the individuals are homebound for 
     purposes of qualifying for receipt of benefits for home 
     health services under this title; and'';
       (2) in clause (ii), by striking ``and'' at the end;
       (3) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(iv) shall include--
       ``(I) an assessment of whether the agency is in compliance 
     with all of the conditions of participation and requirements 
     specified in or pursuant to section 1861(o), this section, 
     and this title;
       ``(II) an assessment that the managing employees (as 
     defined in section 1126(b)) of the agency have attested in 
     writing to having sufficient knowledge, as determined by the 
     Secretary, of the requirements for reimbursement under this 
     title, coverage criteria and claims procedures, and the civil 
     and criminal penalties for noncompliance with such 
     requirements; and
       ``(III) a review of the services provided by subcontractors 
     of the agency to ensure that such services are being provided 
     in a manner consistent with the requirements of this 
     title.''.
       (b) Additional Events Triggering a Survey.--Section 
     1891(c)(2)(B) of the Social Security Act (42 U.S.C. 
     1395bbb(c)(2)(B)) is amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting a comma; and
       (3) by adding at the end the following:
       ``(iii) shall be conducted not less than annually for the 
     first 2 years after the initial standard survey of the 
     agency,
       ``(iv) after the agency's first 2 years of participation 
     under this title, shall be conducted within 90 calendar days 
     of the date that the agency notifies the Secretary that it is 
     providing a category of skilled service that the agency was 
     not providing at the time of the agency's most recent 
     standard survey,
       ``(v) if the agency is operating a new branch office that 
     was not in operation at the time of the agency's most recent 
     standard survey, shall be conducted within the 12-month 
     period following the date that the new branch office began 
     operations to ensure that such office is providing quality 
     care and that it is appropriately classified as a branch 
     office, and shall include direct scrutiny of the operations 
     of the branch office, and
       ``(vi) shall be conducted on randomly selected agencies on 
     an occasional basis, with the number of such surveys to be 
     determined by the Secretary.''.
       (c) Review by Fiscal Intermediary.--Section 1816 of the 
     Social Security Act (42 U.S.C. 1395h) is amended by adding at 
     the end the following:
       ``(m) An agreement with an agency or organization under 
     this section shall require that the agency or organization 
     conduct a review of the overall business structure of a home 
     health agency submitting a claim for reimbursement for home 
     health services, including any related organizations of the 
     home health agency.''.

     SEC. 5. PRIOR PATIENT LOAD.

       Section 1891 of the Social Security Act (42 U.S.C. 1395bbb) 
     is amended by adding at the end the following:
       ``(h) Prior Patient Load.--
       ``(1) In general.--The Secretary shall not enter into an 
     agreement for the first time with a home health agency to 
     provide items and services under this title unless the 
     Secretary determines that, before the date the agreement is 
     entered into, the agency--
       ``(A) had been in operation for at least 60 calendar days; 
     and
       ``(B) had at least 10 patients during that period of prior 
     operation.
       ``(2) Exceptions.--
       ``(A) Beneficiary access.--If the Secretary determines 
     appropriate, the Secretary may waive the requirements of 
     paragraph (1) in order to establish or maintain beneficiary 
     access to home health services in an area.
       ``(B) Change of ownership.--The requirements of paragraph 
     (1) shall not apply to a home health agency at the time of a 
     change in ownership of such agency.''.

     SEC. 6. ESTABLISHMENT OF STANDARDS AND PROCEDURES TO IMPROVE 
                   QUALITY OF SERVICES.

       (a) In General.--Section 1891 of the Social Security Act 
     (42 U.S.C. 1395bbb) (as amended by section 5) is amended by 
     adding at the end the following:
       ``(i) Establishment of Standards and Procedures.--
       ``(1) Screening of employees.--The Secretary shall 
     establish procedures to improve the background screening 
     performed by a home health agency on individuals that the 
     agency is considering hiring as home health aides (as defined 
     in subsection (a)(3)(E)) and licensed health professionals 
     (as defined in subsection (a)(3)(F)).
       ``(2) Cost reports.--The Secretary shall establish 
     additional procedures regarding the requirement for 
     attestation of cost reports to ensure greater accountability 
     on the part of a home health agency and its managing 
     employees (as defined in section 1126(b)) for the accuracy of 
     the information provided to the Secretary in any such cost 
     reports.
       ``(3) Monitoring agency after extended survey.--The 
     Secretary shall establish procedures to ensure that a home 
     health agency that is subject to an extended (or partial 
     extended) survey is closely monitored from the period 
     immediately following the extended survey through the 
     agency's subsequent standard survey to ensure that the agency 
     is in compliance with all the conditions of participation and 
     requirements specified in or pursuant to section 1861(o), 
     this section, and this title.
       ``(4) Additional audits.--
       ``(A) In general.--
       ``(i) Standards.--The Secretary shall establish objective 
     standards regarding the determination of--

       ``(I) whether an agency is a home health agency described 
     in subparagraph (B); and
       ``(II) the circumstances that trigger an audit for a home 
     health agency described in subparagraph (B), and the content 
     of such an audit.

       ``(ii) Information.--In establishing standards under clause 
     (i), the Secretary shall ensure that the individuals 
     performing the audits under this section are provided with 
     the necessary information, including information from 
     intermediaries, carriers, and law enforcement sources, in 
     order to determine if a particular home health agency is an 
     agency described in subparagraph (B) and whether the 
     circumstances triggering an audit for such an agency has 
     occurred.

[[Page 1107]]

       ``(B) Agency described.--A home health agency is described 
     in this subparagraph if it is an agency that has--
       ``(i) experienced unusually rapid growth as compared to 
     other home health agencies in the area and in the country;
       ``(ii) had unusually high utilization patterns as compared 
     to other home health agencies in the area and in the country;
       ``(iii) unusually high costs per patient as compared to 
     other home health agencies in the area and in the country;
       ``(iv) unusually high levels of overpayment or coverage 
     denials as compared to other home health agencies in the area 
     and in the country; or
       ``(v) operations that otherwise raise concerns such that 
     the Secretary determines that an audit is appropriate.
       ``(5) Branch offices.--
       ``(A) Surveys.--The Secretary shall establish standards for 
     periodic surveys of branch offices of a home health agency in 
     order to assess whether the branch offices meet the 
     Secretary's national criteria for branch office designation 
     and for quality of care. Such surveys shall include home 
     visits to beneficiaries served by the branch office (but only 
     with the consent of the beneficiary).
       ``(B) Uniform national definition.--The Secretary shall 
     establish a uniform national definition of a branch office of 
     a home health agency.
       ``(6) Certain qualifications of managing employees.--The 
     Secretary shall establish standards regarding the knowledge 
     and prior education or work experience that a managing 
     employee (as defined in section 1126(b)) of an agency must 
     possess in order to comply with the requirements described in 
     subsection (a)(7).
       ``(7) Claims processing.--
       ``(A) In general.--The Secretary shall establish standards 
     to improve and strengthen the procedures by which claims for 
     reimbursement by home health agencies are identified as being 
     fraudulent, wasteful, or abusive.
       ``(B) Procedures.--The standards established by the 
     Secretary pursuant to subparagraph (A) shall include, to the 
     extent practicable, standards for a minimum number of--
       ``(i) intensive focused medical reviews of the services 
     provided to beneficiaries by an agency;
       ``(ii) interviews with beneficiaries, employees of the 
     agency, and other individuals providing services on behalf of 
     the agency; and
       ``(iii) random spot checks of visits to a beneficiary's 
     home by employees of the agency (but only with the consent of 
     the beneficiary).
       ``(C) Report to congress.--Not later than 90 days after the 
     date of enactment of the Home Health Integrity Preservation 
     Act of 1999, the Secretary shall submit a report to Congress 
     containing a detailed description of--
       ``(i) the current levels of activity by the Secretary with 
     regard to the reviews, interviews, and spot checks described 
     in subparagraph (B); and
       ``(ii) the Secretary's plans to increase those levels 
     pursuant to the procedures described in subparagraphs (A) and 
     (B).
       ``(8) Expansion of financial statement.--The Secretary 
     shall establish procedures to expand the financial statement 
     audit process to include compliance and integrity reviews.''.
       (b) Effective Date.--By not later than 180 calendar days 
     after the date of enactment of this Act, the Secretary shall 
     establish the standards and procedures described in 
     paragraphs (1) through (8) of section 1891(i) of the Social 
     Security Act (42 U.S.C. 1395bbb(i)) (as added by subsection 
     (a)) by regulation or other sufficient means.

     SEC. 7. NOTIFICATION OF AVAILABILITY OF A HOME HEALTH 
                   AGENCY'S MOST RECENT SURVEY AS PART OF 
                   DISCHARGE PLANNING PROCESS.

       Section 1861(ee)(2)(D) of the Social Security Act (42 
     U.S.C. 1395x(ee)(2)(D)) (as amended by section 4321(a) of the 
     Balanced Budget Act of 1997) is amended--
       (1) by striking ``including the availability'' and 
     inserting ``including--
       ``(i) the availability''; and
       (2) by inserting before the period the following: ``; and
       ``(ii) the availability of (and procedures for obtaining 
     from a home health agency) a summary document described in 
     section 1891(a)(9)''.

     SEC. 8. HOME HEALTH INTEGRITY TASK FORCE.

       (a) Establishment.--The Secretary of Health and Human 
     Services (in this section referred to as the ``Secretary'') 
     shall establish within the Office of the Inspector General of 
     the Department of Health and Human Services a home health 
     integrity task force (in this section referred to as the 
     ``Task Force'').
       (b) Director.--The Inspector General of the Department of 
     Health and Human Services shall appoint the Director of the 
     Task Force.
       (c) Duties.--The Task Force shall target, investigate, and 
     pursue any available civil or criminal actions against 
     individuals who organize, direct, finance, or are otherwise 
     engaged in fraud in the provision of home health services (as 
     defined in section 1861(m) of the Social Security Act (42 
     U.S.C. 1395x(m))) under the medicare program under such Act.
       (d) Outside Agencies and Entities.--In carrying out the 
     duties described in subsection (c), the Task Force shall work 
     in coordination with other Federal, State, and local 
     agencies, including the Health Care Financing Administration, 
     and with private entities. All Federal, State, and local 
     employees and all private entities are encouraged to provide 
     maximum cooperation to the Task Force.

     SEC. 9. APPLICATION OF CERTAIN PROVISIONS OF THE BANKRUPTCY 
                   CODE.

       (a) Restricted Applicability of Bankruptcy Stay, Discharge, 
     and Preferential Transfer Provisions to Certain Medicare 
     Debts.--Title XI of the Social Security Act (42 U.S.C. 1301 
     et seq.) is amended by inserting after section 1143 the 
     following:


       ``application of certain provisions of the bankruptcy code

       ``Sec. 1144. (a) Certain Medicare Actions Not Stayed by 
     Bankruptcy Proceedings.--The commencement or continuation of 
     any action against a debtor (as defined in subsection (d)) 
     under this title or title XVIII, including any action or 
     proceeding to exclude or suspend such debtor from program 
     participation, assess civil monetary penalties, recoup or set 
     off overpayments, or deny or suspend payment of claims shall 
     not be subject to a stay under section 362(a) of title 11, 
     United States Code.
       ``(b) Certain Medicare Debt Not Dischargeable in 
     Bankruptcy.--A debt owed to the United States or to a State 
     by a debtor for an overpayment under title XVIII, or for a 
     penalty, fine, or assessment under this title or title XVIII, 
     shall not be dischargeable under any provision of title 11, 
     United States Code.
       ``(c) Repayment of Certain Debts Considered Final.--
     Payments made to repay a debt to the United States or to a 
     State by a debtor with respect to items and services 
     provided, or claims for payment made for such items and 
     services, under title XVIII (including repayment of an 
     overpayment), or to pay a penalty, fine, or assessment under 
     this title or title XVIII, shall be considered final and not 
     avoidable transfers under section 547 of title 11, United 
     States Code.
       ``(d) Debtor Defined.--In this section, the term `debtor' 
     means a provider of services (as defined in section 1861(u)) 
     that has commenced a case under title 11, United States 
     Code.''.
       (b) Medicare Rules Applicable to Bankruptcy Proceedings of 
     a Medicare Provider of Services.--Title XVIII of the Social 
     Security Act (42 U.S.C. 1395 et seq.) is amended by adding at 
     the end the following:


           ``application of provisions of the bankruptcy code

       ``Sec. 1897. (a) Use of Medicare Standards and 
     Procedures.--Notwithstanding any provision of title 11, 
     United States Code, or any other provision of law, in the 
     case of claims by a debtor (as defined in section 1144(d)) 
     for payment under this title, the determination of whether 
     the claim is allowable, and of the amount payable, shall be 
     made in accordance with the provisions of this title, title 
     XI, and implementing regulations.
       ``(b) Notice to Creditor of Bankruptcy Petitioner.--In the 
     case of a debt owed by a debtor (as so defined) to the United 
     States with respect to items and services provided, or claims 
     for payment made, under this title (including a debt arising 
     from an overpayment or a penalty, fine, or assessment under 
     title XI or this title), the notices to the creditor of 
     bankruptcy petitions, proceedings, and relief required under 
     title 11, United States Code (including under section 342 of 
     that title and rule 2002(j) of the Federal Rules of 
     Bankruptcy Procedure), shall be given to the Secretary. 
     Provision of such notice to a fiscal agent of the Secretary 
     shall not be considered to satisfy this requirement.
       ``(c) Turnover of Property to the Bankruptcy Estate.--For 
     purposes of section 542(b) of title 11, United States Code, a 
     claim for payment under this title shall not be considered to 
     be a matured debt payable to the estate of a debtor (as so 
     defined) until such claim has been allowed by the Secretary 
     in accordance with procedures established under this 
     title.''.

     SEC. 10. STUDY AND REPORT TO CONGRESS.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     conduct a study on all matters relating to the appropriate 
     home health services to be provided under the medicare 
     program under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.) to individuals with chronic conditions.
       (2) Matters studied.--The matters studied by the Secretary 
     shall include--
       (A) methods to strengthen the role of a physician in 
     developing a plan of care for a beneficiary receiving home 
     health benefits under this title; and
       (B) the need for an individual or entity (other than the 
     home health agency or the beneficiary's physician) to have 
     responsibility for approving the type and quantity of home 
     health services provided to the beneficiary.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     Congress on

[[Page 1108]]

     the study conducted under subsection (a). The Secretary shall 
     include in the report such recommendations regarding the 
     utilization of home health services under the medicare 
     program as the Secretary determines to be appropriate.

     SEC. 11. EFFECTIVE DATE.

       Except as otherwise provided in this Act, the amendments 
     made by this Act shall take effect on the expiration of the 
     date that is 180 calendar days after the date of enactment of 
     this Act.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Breaux, and Mr. Conrad):
  S. 256. A bill to amend title XVIII of the Social Security Act to 
promote the use of universal product numbers on claims forms submitted 
for reimbursement under the Medicare program; read twice.


             medicare universal product number act of 1999

  Mr. GRASSLEY. Mr. President, on behalf of Senator Breaux and myself, 
I am introducing legislation today to require the use of universal 
product numbers (UPNs) for all durable medical equipment (DME) Medicare 
purchases. A similar bipartisan bill was introduced in the House of 
Representatives by Representatives Amo Houghton and Louise Slaughter. 
The purpose of this legislation is to improve the Health Care Financing 
Administration's (HCFA) ability to track and to appropriately assess 
the value of the durable medical equipment it pays for under the 
Medicare program. Very simply, our bill will ensure Medicare gets what 
it pays for.
  According to a report by the General Accounting Office (GAO) and the 
Office of Inspector General's review of billing practices for specific 
medical supplies, the Medicare program is often paying greater than the 
market price for durable medical equipment and Medicare beneficiaries 
are not receiving the quality of care they should. HCFA currently does 
not require DME suppliers to identify specific products on their 
Medicare claims. Therefore it does not know for which products it is 
paying. HCFA's billing codes often cover a broad range of products of 
various types, qualities and market prices. For example, the GAO found 
that one Medicare billing code is used by the industry for more than 
200 different urological catheters, with many of these products varying 
significantly in price, use, and quality.
  Medicare's inability to accurately track and price medical equipment 
and supplies it purchases could be remedied with the use of product 
specific codes known as ``bar codes'' or ``universal product numbers'' 
(UPNs). These codes are similar to the codes you see on products you 
purchase at the grocery store. Use of such bar codes is already being 
required by the Department of Defense and several large private sector 
purchasing groups. The industry strongly supports such an initiative as 
well. I am submitting several letters of endorsement for the record on 
behalf of the National Association for Medical Equipment Services, the 
Health Industry Distributors Association, Premier Inc., and a joint 
letter from industry groups such as the Health Industry Business 
Communications Council, Healthcare EDI Coalition, Health Industry 
Purchasing Association, and Invacare Corporation.
  This bill represents a common sense approach. It will improve the way 
Medicare monitors and reimburses suppliers for medical equipment and 
supplies. Patients will receive better care. And the Federal Government 
will save money. I ask that my colleagues on both sides of the aisle 
support this legislation which I am introducing today with my friend 
and colleague, Senator Breaux.
  I ask unanimous consent that a copy of the bill and the letters of 
endorsement be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 256

       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 ``Medicare Universal Product 
     Number Act of 1999''.

     SEC. 2. UNIVERSAL PRODUCT NUMBERS ON CLAIMS FORMS FOR 
                   REIMBURSEMENT UNDER THE MEDICARE PROGRAM.

       (a) Accommodation of UPNs on Medicare Claims Forms.--Not 
     later than February 1, 2001, all claims forms developed or 
     used by the Secretary of Health and Human Services for 
     reimbursement under the medicare program under title XVIII of 
     the Social Security Act (42 U.S.C. 1395 et seq.) shall 
     accommodate the use of universal product numbers for a UPN 
     covered item.
       (b) Requirement for Payment of Claims.--Title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.) is amended by 
     adding at the end the following:


                   ``USE OF UNIVERSAL PRODUCT NUMBERS

       ``Sec. 1897. (a) In General.--No payment shall be made 
     under this title for any claim for reimbursement for any UPN 
     covered item unless the claim contains the universal product 
     number of the UPN covered item.
       ``(b) Definitions.--In this section:
       ``(1) UPN covered item.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `UPN covered item' means--
       ``(i) a covered item as that term is defined in section 
     1834(a)(13);
       ``(ii) an item described in paragraph (8) or (9) of section 
     1861(s);
       ``(iii) an item described in paragraph (5) of section 
     1861(s); and
       ``(iv) any other item for which payment is made under this 
     title that the Secretary determines to be appropriate.
       ``(B) Exclusion.--The term `UPN covered item' does not 
     include a customized item for which payment is made under 
     this title.
       ``(2) Universal product number.--The term `universal 
     product number' means a number that is--
       ``(A) affixed by the manufacturer to each individual UPN 
     covered item that uniquely identifies the item at each 
     packaging level; and
       ``(B) based on commercially acceptable identification 
     standards such as, but not limited to, standards established 
     by the Uniform Code Council-International Article Numbering 
     System or the Health Industry Business Communication 
     Council.''.
       (c) Development and Implementation of Procedures.--
       (1) Information included in upn.--The Secretary of Health 
     and Human Services, in consultation with manufacturers and 
     entities with appropriate expertise, shall determine the 
     relevant descriptive information appropriate for inclusion in 
     a universal product number for a UPN covered item.
       (2) Review of procedure.--From the information obtained by 
     the use of universal product numbers on claims for 
     reimbursement under the medicare program, the Secretary of 
     Health and Human Services, in consultation with interested 
     parties, shall periodically review the UPN covered items 
     billed under the Health Care Financing Administration Common 
     Procedure Coding System and adjust such coding system to 
     ensure that functionally equivalent UPN covered items are 
     billed and reimbursed under the same codes.
       (d) Effective Date.--The amendment made by subsection (b) 
     shall apply to claims for reimbursement submitted on and 
     after February 1, 2002.

     SEC. 3. STUDY AND REPORTS TO CONGRESS.

       (a) Study.--The Secretary of Health and Human Services 
     shall conduct a study on the results of the implementation of 
     the provisions in subsections (a) and (c) of section 2 and 
     the amendment to the Social Security Act in subsection (b) of 
     that section.
       (b) Reports.--
       (1) Progress report.--Not later than 6 months after the 
     date of enactment of this Act, the Secretary of Health and 
     Human Services shall submit a report to Congress that 
     contains a detailed description of the progress of the 
     matters studied pursuant to subsection (a).
       (2) Implementation.--Not later than 18 months after the 
     date of enactment of this Act, and annually thereafter for 3 
     years, the Secretary of Health and Human Services shall 
     submit a report to Congress that contains a detailed 
     description of the results of the study conducted pursuant to 
     subsection (a), together with the Secretary's recommendations 
     regarding the use of universal product numbers and the use of 
     data obtained from the use of such numbers.

     SEC. 4. DEFINITIONS.

     In this Act:
       (1) UPN covered item.--The term ``UPN covered item'' has 
     the meaning given such term in section 1897(b)(1) of the 
     Social Security Act (as added by section 2(b)).
       (2) Universal product number.--The term ``universal product 
     number'' has the meaning given such term in section 
     1897(b)(2) of the Social Security Act (as added by section 
     2(b)).

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       The are authorized to be appropriated such sums as may be 
     necessary for the purpose of carrying out the provisions in 
     subsections (a) and (c) of section 2, section 3, and section 
     1897 of the Social Security Act (as added by section 2(b)).

[[Page 1109]]

     
                                  ____
                                                 January 19, 1999.
     Hon. Charles Grassley,
     Chairman, Special Committee on Aging,
     U.S. Senate, Washington, DC.

     Hon. John Breaux,
     Ranking Minority Member, Special Committee on Aging, U.S. 
         Senate, Washington, DC.
       Dear Senators Grassley and Breaux: We applaud you for 
     introducing the Medicare Universal Product Number Act, which 
     will require the inclusion of universal product numbers 
     (UPNs) on Medicare Part B billings for medical equipment and 
     supplies that are not customized. UPNs are codes that 
     uniquely identify an individual medical product; they are 
     often associated with the bar codes that allow scanners to 
     process them. These codes are a major enabling factor in our 
     efforts to minimize fraudulent billings and to automate the 
     distribution process.
       The Department of Defense (DoD) and the Veterans 
     Administration have already taken a leadership position in 
     promoting the implementation of the industry standard of 
     UPNs. As a part of the decision to use commercial medical 
     product distributors, the DoD has mandated the use of UPNs 
     for all medical/surgical products delivered to DoD 
     facilities. The VA is prepared to implement a similar 
     requirement this year. Most private sector group purchasing 
     organizations also require the use of UPNs.
       We believe that the Medicare Program would also benefit 
     greatly from the use of UPNs. By cross-referencing each UPN 
     with the current HCFA Common Procedure Coding System (HCPCS) 
     and requiring the inclusion of the UPN on each Medicare Part 
     B claim for medical equipment and supplies, Medicare's 
     ability to track utilization and combat fraud and abuse would 
     be greatly enhanced. As UPNs provide a unique, unambiguous 
     means of identifying medical products, Medicare would have an 
     exact record of the specific product used by the beneficiary. 
     For the first time, the Medicare Program could identify 
     precisely what items are being billed. Unusual trends in 
     product utilization and claims for ``suspicious'' items would 
     be easily identifiable. HCPCS alone cannot provide this 
     information, as many products of varying quality and cost are 
     included in a single code.
       In addition, problems with ``upcoding'' and miscoding could 
     be greatly reduced through the implementation of UPNs. 
     Upcoding occurs when Medicare is intentionally billed under a 
     code that provides a higher reimbursement than the code 
     corresponding to the item that was furnished to the 
     beneficiary. Currently, upcoding is difficult to detect 
     because HCPCS are so inexact. UPNs would correctly identify 
     the specific medical product, thereby making it harder to 
     misrepresent the cost and quality of the product. In 
     addition, by cross-referencing each UPN to the appropriate 
     HCPCS, legitimate confusion about HCFA's current coding 
     system would be alleviated. As the General Accounting Office 
     has reported (GAO/HEHS-98-102), the HCPCS system is 
     needlessly ambiguous.
       We believe that the Medicare Program and medical products 
     industry would benefit greatly from the use of UPNs. This 
     standard would not only increase Medicare's understanding of 
     what it pays for, but also assist in the effective 
     administration of the Program.
       Again, thank you for introducing the Medicare Universal 
     Product Number Act.
           Sincerely,
       Health Industry Business Communications Council.
       Healthcare EDI Coalition.
       Health Industry Distributors Association.
       Health Industry Group Purchasing Association.
       National Association for Medical Equipment Services.
       Invacare Corp.
       Premier Inc.
                                  ____

                                          National Association for


                                   Medical Equipment Services,

                                 Alexandria, VA, January 12, 1999.
     Hon. Charles Grassley,
     Hon. John Breaux,
     U.S. Senate,
     Special Committee on Aging.
       Dear Senators Grassley and Breaux: As you know, the 
     National Association for Medical Equipment Services (NAMES) 
     was pleased to endorse your bill, The Medicare Universal 
     Product Number Act of 1997, S. 1362 in the 105th Congress. We 
     understand you will re-introduce this bill in substantially 
     the same form in the 106th Congress, and so, in concept, 
     support that legislation.
       Requiring universal product numbers on home medical 
     equipment for product labeling and billing purposes would 
     accomplish two key objectives. First, it would improve home 
     medical equipment inventory control by creating a unique 
     numbering system that easily permits computerized optical 
     scanning of product information. Second, it would provide 
     third-party payers with more information on equipment 
     characteristics than does the current HCPCS coding system, 
     thus allowing reimbursement rates to be set more 
     appropriately.
       While equipment manufacturers and retailers would need time 
     to comply with the bill, we note that S. 1362 provided more 
     than two years for compliance to be attained. We look forward 
     to working with you as this bill proceeds through the 
     legislative process.
           Sincerely,

                                     William D. Coughlan, CAE,

                                                     President and
     Chief Executive Officer.
                                  ____

                                                   Health Industry


                                     Distributors Association,

                                 Alexandria, VA, January 11, 1999.
     Hon. Charles Grassley,
     Chairman, Special Committee on Aging,
     U.S. Senate, Washington, DC.

     Hon. John Breaux,
     Ranking Minority Member, Special Committee on Aging, U.S. 
         Senate, Washington, DC.
       Dear Senators Grassley and Breaux: On behalf of the Health 
     Industry Distributors Association (HIDA), I applaud you for 
     introducing the Medicare Universal Product Number Act. HIDA 
     is the national trade association of home care companies and 
     medical products distribution firms. Created in 1902, HIDA 
     represents over 700 companies with approximately 2500 
     locations nationwide. HIDA Members provide value-added 
     distribution services to virtually every hospital, 
     physician's office, nursing facility, clinic, and other 
     health care sites across the country, as well as to a growing 
     number of home care patients.
       HIDA has long supported the use of UPNs for medical 
     equipment and supplies. By providing a standard, unique 
     identifier for each product, UPNs supply the information 
     needed to minimize fraudulent billings and streamline the 
     health care product distribution process. The Department of 
     Defense (DoD) has already recognized the many benefits 
     resulting from the implementation of the industry standard of 
     UPNs. As a part of their decisions to use commercial medical 
     product distributors, DoD has mandated the use of UPNs for 
     all medical/surgical products delivered to DoD facilities.
       The Medicare Program could also benefit greatly from the 
     use of UPNs. By using UPNs, the Medicare system would be able 
     to correctly identify the specific items they are paying for, 
     a crucial piece of information that the agency is now 
     missing. As UPNs provide a unique, unambiguous means of 
     identifying each product on the market, Medicare would have 
     an exact record of the specific product used by each 
     beneficiary. Unusual trends in product utilization and claims 
     for ``suspicious'' items would be easily identifiable. The 
     HCFA Common Procedure Coding System (HCPCS) can not provide 
     this information, because many products of varying quality 
     and cost are included in a single code.
       In addition, problems with ``upcoding'' and miscoding could 
     be greatly reduced through the implementation of UPNs. 
     Upcoding occurs when Medicare is intentionally billed under a 
     code that provides a higher reimbursement than the code 
     corresponding to the item that was actually furnished to the 
     beneficiary. Currently, upcoding is difficult to detect 
     because HCPCS are so inexact. UPNs would correctly identify 
     the specific medical product, thereby making it harder to 
     misrepresent the cost and quality of the product. In 
     addition, by cross-referencing each UPN to the appropriate 
     HCPCS, legitimate confusion about HCFA's current coding 
     system would be alleviated. As the General Accounting Office 
     has reported (GAO/HEHS-98-102), the HCPCS system is 
     needlessly ambiguous.
       HIDA firmly believes that the Medicare Program and the 
     medical equipment industry would benefit greatly from the use 
     of UPNs. This standard would not only increase Medicare's 
     understanding of what it pays for, but also assist in the 
     effective administration of the Program.
       Again, thank you for introducing the Medical Universal 
     Product Number Act.
           Sincerely,
     S. Wayne Kay.
                                  ____



                                                      Premier,

                                 Washington, DC, January 20, 1999.
     Hon. Charles Grassley,
     Hon. John Breaux,
     U.S. Senate, Special Committee on Aging,
     Washington, DC.
       Dear Senators Grassley and Breaux: On behalf of Premier, 
     Inc., the nation's largest healthcare alliance, I am pleased 
     to support the ``Medicare Universal Product Number Act.'' The 
     bill requires the use of universal product numbers (UPNs) for 
     all durable medical equipment Medicare purchases by 2002.
       Premier represents more than 200 owner hospitals and 
     hospital systems that own or operate 800 healthcare 
     institutions and have purchasing affiliations with another 
     1,100. Premier owners operate hospitals, HMOs and PPOs, 
     skilled nursing facilities, rehabilitation facilities, home 
     health agencies, and physician practices. Through 
     participation in Premier, healthcare leaders can access cost 
     reduction avenues, delivery system development and 
     enhancement strategies, technology management, decision 
     support tools, and a variety of opportunities for networking 
     and knowledge transfer.
       Premier welcomes federal government leadership in requiring 
     manufacturers to label their products at each unit of 
     inventory with a universal product number by the year 2002. 
     The U.S. General Accounting Office (GAO) recommended in a May 
     1998 report

[[Page 1110]]

     to Congress that HCFA require suppliers include UPNs on their 
     Medicare claims. This requirement will not only aid the 
     Medicare program, but also will help the private sector 
     reduce healthcare costs. A recent study conducted by 
     Efficient Healthcare Consumer Response on improving the 
     efficiency of the healthcare supply chain concluded that 
     $11.6 billion could be saved through automation and 
     integration of the product information stream from point of 
     manufacture to point of use across the industry. UPN is a 
     major component within that potential remarkable savings 
     stream. Therefore, we believe that UPN will become as 
     important to the medical industry as other bar code standards 
     have become to grocery and other retail industries for many 
     years.
       This bill represents a common sense approach to reducing 
     healhcare costs in the United States. Thank you Senators 
     Grassley and Breaux for your leadership on this issue and we 
     look forward to assisting you with your efforts to enact this 
     legislation into law.
           Sincerely,
                                                   James L. Scott,
     President.
                                  ____

  Mr. BREAUX. Mr. President, I rise to commend Senator Grassley for his 
leadership on the important issue of cutting waste, fraud and abuse in 
the Medicare program. As chairman of the National Bipartisan Commission 
on the Future of Medicare, I strongly support our legislation that will 
save federal dollars by modernizing an outdated and confusing billing 
system. The Medicare Universal Product Number Act of 1999 is a 
practical solution which will ensure that the Health Care Financing 
Administration (HCFA) knows what it is paying for when reimbursing for 
durable medical equipment (DME) under the Medicare program.
  Currently, HCFA's billing system uses overly broad and sometimes 
outdated codes. These codes can cover a wide range of products which 
vary in price and quality, making it difficult for HCFA to track and 
price medical equipment accurately. By using Universal Product Numbers 
(UPNs), which provide a unique, unambiguous means of identifying each 
product on the market, HCFA will be able to track utilization more 
efficiently.
  Because UPNs are unique identifiers, HCFA will be better equipped in 
combating fraud against the Medicare program. Currently the system is 
vulnerable to a type of fraud called ``upcoding.'' This occurs when 
Medicare is billed for a product under an improper code. Perpetrators 
of fraud can use improper codes to receive higher reimbursement rates 
then those given for the products which they actually provide. By 
tracking utilization, made possible by UPNs, HCFA will know what 
product is provided to the beneficiary and how much that product costs.
  There is widespread support for the use of UPNs in the Medicare 
program. A recent GAO report addresses the need to reform Medicare's 
billing system. The report found that HCFA ``does not know specifically 
what Medicare is paying for when its contractors process claims for'' 
medical equipment and supplies. The Department of Defense and the 
Veterans' Administration have already begun to require UPNs, as do many 
private sector purchasing groups. Moreover, the medical products 
industry recognizes the value of UPNs and strongly supports this 
legislation.
  Medicare's current billing system is vulnerable to abuse. This 
legislation is a practical approach to help ensure that taxpayer 
dollars are protected and spent wisely. I thank Senator Grassley for 
his leadership, and I encourage my colleagues to support this important 
legislation.
                                 ______
                                 
      By Mr. COCHRAN (for himself, Mr. Inouye, and Mr. Hagel):
  S. 257. A bill to state the policy of the United States regarding the 
deployment of a missile defense capable of defending the territory of 
the United States against limited ballistic missile attack; to the 
Committee on Armed Services.


                  national missile defense act of 1999

  Mr. COCHRAN. Mr. President, I am pleased to announce today we are 
introducing, again, the National Missile Defense Act of 1999, a bill to 
make it the policy of the United States to deploy, as soon as 
technologically possible, a system to defend the United States against 
limited ballistic missile attack. I am happy to be joined by my friend, 
the distinguished Senator from Hawaii, Mr. Inouye, in introducing this 
bill. And I am pleased that we have just heard that the Secretary of 
Defense has announced that funds will be included in this year's budget 
to pay for deployment of the National Missile Defense System, 
acknowledging that the threat does exist, or soon will. So the 
administration is changing its policy now, faced with this push that 
was begun in the last Congress and is culminating now in the 
reintroduction of this legislation.
  Ballistic missiles are being developed and tested by a growing number 
of nations, some of which are hostile to the United States.
  Iran has declared itself self-sufficient in missile technology and 
expertise. It is building a missile system capable of striking Central 
Europe.
  Last year, North Korea surprised experts with its test of the Taepo 
Dong-1, a three-stage missile which, according to published reports, 
may be capable of reaching Alaska. Last July, the Rumsfeld Commission 
concluded that the United States may have ``little or no warning'' of 
the development of intercontinental ballistic missile capability by a 
rogue state.
  The United States has no defense against long-range ballistic 
missiles, and administration policy had been limited to development of 
a missile defense system and deployment only if a threat developed. Now 
the threat has become obvious to the administration.
  I welcome the announcement this morning by the Secretary of Defense 
that the administration is acknowledging the need to proceed with a 
program to develop a missile defense system to meet this threat and to 
deploy it. The time has come to remove all doubts about the resolve of 
the United States on this issue. The National Missile Defense Act of 
1999 confirms this resolve as national policy.
  Mr. COVERDELL. I thank the Senator from Mississippi and now turn to 
the Senator from Nebraska and yield up to 5 minutes to the 
distinguished Senator.
  The PRESIDING OFFICER. The Senator from Nebraska is recognized.
  Mr. HAGEL. Mr. President, I wish to associate myself with the remarks 
of my colleagues here this morning. I also wish to commend my friend, 
the senior Senator from Mississippi, for reintroducing his defense 
initiative. Missile defense is as critical a challenge as this country 
faces, not just for the short term, but for the long term, and I have 
been a strong proponent of what Senator Cochran is proposing. I wish, 
again, to be a cosponsor of that measure.
                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. Levin, and Mr. Robb):
  S. 258. A bill to authorize additional rounds of base closures and 
realignments under the Defense Base Closure and Realignment Act of 1990 
in 2001 and 2003, and for other purposes; to the Committee on Armed 
Services.


  legislation to authorize two base realignment and closure rounds to 
                         occur in 2001 and 2003

  Mr. McCAIN. Mr. President, I rise today to introduce legislation that 
authorizes two rounds of U.S. military installation realignment and 
closures to occur in 2001 and 2003. I am pleased to have Senator Levin 
and Senator Robb as cosponsors of this bill.
  Mr. President, we have heard over the last 4 months of the dire 
situation of our military forces. We have heard testimony of plunging 
readiness, modernization programs that are decades behind schedule, and 
quality of life deficiencies that are so great we cannot retain or 
recruit the personnel we need. As a result of this realization, there 
has been a groundswell of support in Congress for the Armed Forces, 
including a number of pay and retirement initiatives and the promise of 
a significant increase in defense spending.
  All of these proposals are excellent starting points to help re-forge 
our military, but we must not forget that much of it will be in vain if 
the Department of Defense is obligated to maintain 23 percent excess 
capacity in infrastructure. When we actually look for the dollars to 
pay for these initiatives,

[[Page 1111]]

it is unconscionable that some would not look to the billions of 
dollars to be saved by base realignment and closure. Secretary Cohen 
and the Joint Chiefs of Staff have stated repeatedly that they desire 
more opportunities to streamline the military's infrastructure. We 
cannot sit idly by and throw money and ideas at the problem when part 
of the solution is staring us in the face.
  This proposed legislation offers two significant changes to present 
law. First, the process for the first round in 2001 is moved back two 
months to ensure there is no conflict of interest with a commission 
nominated under one administration but effectively working under the 
direction of the follow-on administration. Second, under this 
legislation, privatization in-place would be permitted only when 
explicitly recommended by the Commission. Additionally, the Secretary 
of Defense must consider local government input in preparing his list 
of desired base closures.
  Total BRAC savings realized from the four previous rounds exceed 
total costs to date. The annual net savings for previous rounds will 
grow from almost $3 billion last year to $5.6-7.0 billion per year by 
2001. These savings are real, they are coming sooner, and they are 
estimated to be greater than anticipated.
  Mr. President, we can continue to maintain a military infrastructure 
that we do not need, or we can provide the necessary funds to ensure 
our military can fight and win future wars. Every dollar we spend on 
bases we do not need is a dollar we cannot spend on training our 
troops, keeping personnel quality of life at an appropriate level, 
maintaining force structure, replacing old weapons systems, and 
advancing our military technology.
  We must finish the job we started by authorizing these two final 
rounds of base realignment and closure. I urge my colleagues to join us 
in support of this critical bill and to work diligently throughout the 
year to put aside local politics for what is clearly in the best 
interest of our military forces.
  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. 258

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

     SECTION 1. AUTHORITY TO CARRY OUT BASE CLOSURE ROUNDS IN 2001 
                   AND 2003.

       (a) Commission Matters.--
       (1) Appointment.--Subsection (c)(1) of section 2902 of the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is 
     amended--
       (A) in subparagraph (B)--
       (i) by striking ``and'' at the end of clause (ii);
       (ii) by striking the period at the end of clause (iii) and 
     inserting a semicolon; and
       (iii) by adding at the end the following new clauses (iv) 
     and (v):
       ``(iv) by no later than March 1, 2001, in the case of 
     members of the Commission whose terms will expire at the end 
     of the first session of the 107th Congress; and
       ``(v) by no later than January 3, 2003, in the case of 
     members of the Commission whose terms will expire at the end 
     of the first session of the 108th Congress.''; and
       (B) in subparagraph (C), by striking ``or for 1995 in 
     clause (iii) of such subparagraph'' and inserting ``, for 
     1995 in clause (iii) of that subparagraph, for 2001 in clause 
     (iv) of that subparagraph, or for 2003 in clause (v) of that 
     subparagraph''.
       (2) Meetings.--Subsection (e) of that section is amended by 
     striking ``and 1995'' and inserting ``1995, 2001, and 2003''.
       (3) Staff.--Subsection (i)(6) of that section is amended in 
     the matter preceding subparagraph (A) by striking ``and 
     1994'' and inserting ``, 1994, and 2002''.
       (4) Funding.--Subsection (k) of that section is amended by 
     adding at the end the following new paragraph (4):
       ``(4) If no funds are appropriated to the Commission by the 
     end of the second session of the 106th Congress for the 
     activities of the Commission in 2001 or 2003, the Secretary 
     may transfer to the Commission for purposes of its activities 
     under this part in either of those years such funds as the 
     Commission may require to carry out such activities. The 
     Secretary may transfer funds under the preceding sentence 
     from any funds available to the Secretary. Funds so 
     transferred shall remain available to the Commission for such 
     purposes until expended.''.
       (5) Termination.--Subsection (l) of that section is amended 
     by striking ``December 31, 1995'' and inserting ``December 
     31, 2003''.
       (b) Procedures.--
       (1) Force-structure plan.--Subsection (a)(1) of section 
     2903 of that Act is amended by striking ``and 1996,'' and 
     inserting ``1996, 2002, and 2004,''.
       (2) Selection criteria.--Subsection (b) of such section 
     2903 is amended--
       (A) in paragraph (1), by inserting ``and by no later than 
     January 28, 2001, for purposes of activities of the 
     Commission under this part in 2001 and 2003,'' after 
     ``December 31, 1990,''; and
       (B) in paragraph (2)(A)--
       (i) in the first sentence, by inserting ``and by no later 
     than March 15, 2001, for purposes of activities of the 
     Commission under this part in 2001 and 2003,'' after 
     ``February 15, 1991,''; and
       (ii) in the second sentence, by inserting ``, or enacted on 
     or before April 15, 2001, in the case of criteria published 
     and transmitted under the preceding sentence in 2001'' after 
     ``March 15, 1991''.
       (3) Department of defense recommendations.--Subsection (c) 
     of such section 2903 is amended--
       (A) in paragraph (1), by striking ``and March 1, 1995,'' 
     and inserting ``March 1, 1995, May 1, 2001, and March 1, 
     2003,'';
       (B) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (5), (6), and (7), respectively;
       (C) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4)(A) In making recommendations to the Commission under 
     this subsection in any year after 1999, the Secretary shall 
     consider any notice received from a local government in the 
     vicinity of a military installation that the government would 
     approve of the closure or realignment of the installation.
       ``(B) Notwithstanding the requirement in subparagraph (A), 
     the Secretary shall make the recommendations referred to in 
     that subparagraph based on the force-structure plan and final 
     criteria otherwise applicable to such recommendations under 
     this section.
       ``(C) The recommendations made by the Secretary under this 
     subsection in any year after 1999 shall include a statement 
     of the result of the consideration of any notice described in 
     subparagraph (A) that is received with respect to an 
     installation covered by such recommendations. The statement 
     shall set forth the reasons for the result.''; and
       (D) in paragraph (7), as so redesignated--
       (i) in the first sentence, by striking ``paragraph (5)(B)'' 
     and inserting ``paragraph (6)(B)''; and
       (ii) in the second sentence, by striking ``24 hours'' and 
     inserting ``48 hours''.
       (4) Commission review and recommendations.--Subsection (d) 
     of such section 2903 is amended--
       (A) in paragraph (2)(A), by inserting ``or by no later than 
     September 1 in the case of recommendations in 2001,'' after 
     ``pursuant to subsection (c),'';
       (B) in paragraph (4), by inserting ``or after September 1 
     in the case of recommendations in 2001,'' after ``under this 
     subsection,''; and
       (C) in paragraph (5)(B), by inserting ``or by no later than 
     June 15 in the case of such recommendations in 2001,'' after 
     ``such recommendations,''.
       (5) Review by president.--Subsection (e) of such section 
     2903 is amended--
       (A) in paragraph (1), by inserting ``or by no later than 
     September 15 in the case of recommendations in 2001,'' after 
     ``under subsection (d),'';
       (B) in the second sentence of paragraph (3), by inserting 
     ``or by no later than October 15 in the case of 2001,'' after 
     ``the year concerned,''; and
       (C) in paragraph (5), by inserting ``or by November 1 in 
     the case of recommendations in 2001,'' after ``under this 
     part,''.
       (c) Closure and Realignment of Installations.--Section 
     2904(a) of that Act is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) carry out the privatization in place of a military 
     installation recommended for closure or realignment by the 
     Commission in each such report after 1999 only if 
     privatization in place is a method of closure or realignment 
     of the installation specified in the recommendation of the 
     Commission in such report and is determined to be the most-
     cost effective method of implementation of the 
     recommendation;''.
       (d) Relationship to Other Base Closure Authority.--Section 
     2909(a) of that Act is amended by striking ``December 31, 
     1995,'' and inserting ``December 31, 2003,''.
       (e) Technical and Clarifying Amendments.--
       (1) Commencement of period for notice of interest in 
     property for homeless.--Section 2905(b)(7)(D)(ii)(I) of that 
     Act is amended by striking ``that date'' and inserting ``the 
     date of publication of such determination in a newspaper of 
     general circulation in the communities in the vicinity of the 
     installation under subparagraph (B)(i)(IV)''.
       (2) Other clarifying amendments.--
       (A) That Act is further amended by inserting ``or 
     realignment'' after ``closure'' each place it appears in the 
     following provisions:
       (i) Section 2905(b)(3).
       (ii) Section 2905(b)(4)(B)(ii).

[[Page 1112]]

       (iii) Section 2905(b)(5).
       (iv) Section 2905(b)(7)(B)(iv).
       (v) Section 2905(b)(7)(N).
       (vi) Section 2910(10)(B).
       (B) That Act is further amended by inserting ``or 
     realigned'' after ``closed'' each place in appears in the 
     following provisions:
       (i) Section 2905(b)(3)(C)(ii).
       (ii) Section 2905(b)(3)(D).
       (iii) Section 2905(b)(3)(E).
       (iv) Section 2905(b)(4)(A).
       (v) Section 2905(b)(5)(A).
       (vi) Section 2910(9).
       (vii) Section 2910(10).
       (C) Section 2905(e)(1)(B) of that Act is amended by 
     inserting ``, or realigned or to be realigned,'' after 
     ``closed or to be closed'.

  Mr. LEVIN. Mr. President, I am pleased to once again join my 
colleagues from the Armed Services Committee, Senator McCain and 
Senator Robb, in introducing this legislation authorizing the 
Department of Defense to close excess, unneeded military bases.
  For the past two years, Secretary of Defense Cohen has asked the 
Congress to authorize two additional base closure rounds. But Congress 
has not acted.
  Secretary Cohen and General Shelton, the Chairman of the Joint Chiefs 
of Staff, have repeatedly said we need to close more military bases, 
and I am confident that they will once again ask us to close more bases 
when the President's budget is submitted next month.
  The legislation we are introducing today is intended to start the 
debate, and I anticipate the administration will make a similar 
legislative proposal to the Congress.
  This legislation calls for two additional base closure rounds, in 
2001 and 2003, that would basically follow the same procedures that 
were used in 1991, 1993 and 1995, with two exceptions.
  First, the whole process would start and finish two months later in 
2001 than it did in previous rounds, to give the new President 
sufficient time to nominate commissioners.
  Second, under our legislation privatization in place would not be 
permitted at closing installations unless the Base Closure Commission 
recommends it.
  In a November 1998 report, the General Accounting Office listed five 
key elements of the base closure process that ``contributed to the 
success of prior rounds''. Our legislation retains all of those key 
elements. GAO also stated that they ``have not identified any long-term 
readiness problems that were related to domestic base realignments and 
closures, that ``DOD continues to retain excess capacity'' and that 
``substantial savings are expected'' from base closures.
  Mr. President, every expert and every study agrees on the basic 
facts--the Defense Department has more bases than its needs, and 
closing bases saves substantial money in the long run.
  The report the Department of Defense provided to the Congress last 
April clearly demonstrated these facts. As the Congressional Budget 
Office stated in a letter to me last July, ``the report's basic message 
is consistent with CBO's own conclusions: past and future BRAC round 
will lead to significant savings for DoD.''
  Every year we delay another base closure round, we deny the Defense 
Department, and the taxpayers, about $1.5 billion in annual savings 
that we can never recoup. And every dollar we spend on bases we do not 
need is a dollar we cannot spend on things we do need.
  Mr. President, I am not going to make any detailed judgments on the 
President's defense budget proposal until we see the details, but I am 
prepared to support an increase in defense spending if the money is 
spent wisely.
  However, Congress should not use defense funding increases as an 
excuse to avoid tough choices. The addition of new resources cannot be 
a substitute for the billions of dollars of savings that would be 
generated by a new round of base closures. We cannot justify spending 
more for national defense unless we show our own willingness to make 
the best use of defense dollars by reducing unneeded defense 
infrastructure.
  I urge my colleagues to support this legislation.
  Mr. ROBB. Mr. President, last year I joined Senators McCain and Levin 
in introducing legislation authorizing another base closure round. I 
argued then, as I do today, that failing to enact another BRAC round 
only makes the Congress look short-sighted and indecisive. I argued 
then that if we don't bite the bullet quickly, the cost of excess 
infrastructure will continue to drag down the readiness of our forces 
today and rob us of the resources so badly needed to modernize our 
forces for tomorrow.
  For the first time since the late 1970's, military readiness is 
suffering significantly. Ships are undermanned, pilots are flying too 
many missions, reservists are being asked to leave family and job over 
and over. It doesn't take a budget expert to realize what we could do 
for the troops with billions in savings from cutting excess 
infrastructure.
  This year we in the Congress will almost certainly add billions of 
dollars to the defense budget. This is a mixed blessing. While these 
adds will help resolve problems across the board, from recruiting to 
modernization to preparing for the future, they will also undermine any 
incentives to better manage the Department of Defense and to eliminate 
the wasteful assets and administrative inefficiencies that we the 
Congress are so determined to preserve.
  BRAC failed in the past for reasons that have much to do with 
politics, but little to do with ensuring our every defense dollar is 
spent for maintaining and equipping our armed forces for the 
battlefields of the next century. Those politics are behind us now. We 
must move forward and authorize more BRAC rounds.
  Keeping excess military posts open won't bring more firepower to bear 
in the next war. Keeping an unneeded R&D lab open won't recruit more 
talented young men and women to serve as the foundation for the world's 
finest fighting force. Keeping an underutilized training range open 
won't buy modern equipment so badly needed to replace systems now often 
older than the men and women using them.
  Mr. President, I reemphasize a point I've made time and time again in 
the past--who suffers from Congressional inaction? In the end, we only 
punish those who most need the benefits of infrastructure savings. 
First, we punish the Nation's taxpayers when we fail to make the best 
use of the resources with which they entrust us. Second, we punish 
today's soldiers, sailors, airmen and marines whose readiness depends 
on sufficient, reliable resources for equipment, training and 
operations through the year. Finally, we punish tomorrow's force as we 
continue to mortgage research, development, and modernization of 
equipment necessary to keep America strong into the 21st century.
  The bill we're introducing calls for a base closure round in 2001 and 
another in 2003. Like the provision we offered last year and the year 
before that, the bill should answer concerns over the politicization of 
future BRAC rounds. Language is included to allow privatization-in-
place at a facility only if the BRAC Commission explicitly recommends 
privatization-in-place.
  The long-term savings from the first four base closure rounds already 
are generating substantial savings--about three billion dollars a year. 
Each new round will save another 1.5 billion dollars per year. It is no 
surprise that scores of studies and organizations such as the 
Quadrennial Defense Review, Defense Restructure Initiative, National 
Defense Panel, and Business Executives for National Security have all 
concluded that more base closures are crucial to the future of our 
Armed Forces.
  Mr. President, I urge my colleagues to do what is right for our armed 
forces, what is right for the taxpayer, and support this legislation.
                                 ______
                                 
      By Mr. INOUYE:
  S. 259. A bill to increase the role of the Secretary of 
Transportation in administering section 901 of the Merchant Marine Act, 
1936, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.


transportation in American vessels of government personnel and certain 
                                cargoes

  Mr. INOUYE. Mr. President, the legislation I am introducing today 
would

[[Page 1113]]

centralize the authority to administer our Nation's cargo preference 
laws in the Department of Transportation. Cargo preference statutes 
assure U.S.-flag ships a minimum share of cargoes produced by U.S. 
government programs. They play an important role in ensuring our 
nation's economic security and the existence of a U.S.-flag merchant 
fleet to assist in national security during times of national 
emergencies. This tremendous benefit is achieved at a minimal cost. 
Under present law, cargo reservation is the only direct support a 
majority of the U.S. merchant fleet receives. I would also like to 
point out that a cargo preference policy is not unique. Other nations 
also provide their merchant fleet preference in carrying cargoes their 
governments generate.
  The Maritime Administration, which is part of the Department of 
Transportation, has been tasked with the difficult duty of monitoring 
the administration of and compliance with U.S. cargo preference laws 
and regulations by Federal agencies with regard to programs generating 
ocean-born cargoes. Major programs monitored include humanitarian aid 
shipments provided by the U.S. Department of Agriculture and the U.S. 
Agency for International Development, commodities financed by the 
Export-Import Bank, foreign military sales, and Department of Defense 
cargo shipped by commercial ocean carriers. These are cargoes generated 
exclusively by our government.
  In the past, compliance by federal agencies with the requirements of 
the cargo reservation laws has been chaotic, uneven and varied from 
agency to agency. In 1962, President John F. Kennedy, in issuing a 
directive to all executive branch departments and agencies, recognized 
the importance of our cargo preference policy in fostering a modern, 
privately owned, merchant marine capable of serving as a naval and 
military auxiliary in time of war or national emergency. At the time, 
President Kennedy stated that, ``the achievement of this national 
policy is even more essential now because of the worldwide economic and 
defense burdens facing the United States.'' Never has this sentiment 
been more true than now.
  Mr. President, this legislation will merely make certain that federal 
agencies adhere to existing cargo preference laws, and give the 
Maritime Administration authority to respond to violations with the 
proper penalties or sanctions. I ask unanimous consent that the text of 
this bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 259

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

     SECTION 1. TRANSPORTATION IN AMERICAN VESSELS OF GOVERNMENT 
                   PERSONNEL AND CERTAIN CARGOES.

       Section 901(b)(2) of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 2141 (b)(2)), is amended to read as follows:
       ``(2)(A) Notwithstanding any other provision of law, the 
     Secretary of Transportation shall have the sole 
     responsibility for determining and designating the programs 
     that are subject to the requirements of this subsection. Each 
     department or agency that has responsibility for a program 
     that is designated by the Secretary of Transportation 
     pursuant to the preceding sentence shall, for the purposes of 
     this subsection, administer such program pursuant to 
     regulations promulgated by such Secretary.
       ``(B) The Secretary of Transportation shall--
       ``(i) review the administration of the programs referred to 
     in subparagraph (A);
       ``(ii) resolve any question concerning the administration 
     of those programs with respect to this section;
       ``(iii) provide for penalties and sanctions for violation 
     of this Act; and
       ``(iv) on an annual basis, submit a report to Congress 
     concerning the administration of such programs.''.

     SEC. 2. CONFORMING CARGO PREFERENCE YEAR TO FEDERAL FISCAL 
                   YEAR.

       Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 
     U.S.C App. 1241f(c)(2)) is amended by striking ``1986.'' and 
     inserting ``1986, the 18-month period commencing April 1, 
     1999, and the 12-month period beginning on the first day of 
     October in the year 2000 and each year thereafter.''.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Daschle, Mr. Craig, Mr. 
        Brownback, Mr. Sessions, Mr. Ashcroft, and Mr. Kohl):
  S. 260. A bill to make chapter 12 of title 1, United States Code, 
permanent, and for other purposes; to the Committee on the Judiciary.


                              safety 2000

  Mr. GRASSLEY. Mr. President, I rise today to introduce vitally 
important legislation to promote the well-being of America's family 
farms by extending chapter 12 of the Bankruptcy Code. This bill, which 
is known as ``safety 2000,'' will also make needed changes to chapter 
12 which will make it work better for family farmers. I'm pleased that 
Senator Daschle is joining with me in this effort to save family farms. 
In Iowa, pork prices recently hit an all time low. Pork producers are 
facing serious hardship, and we must make sure that those farmers who 
need bankruptcy relief to help save their farming operation have 
meaningful protections.
  Last year, again with the distinguished minority leader, I introduced 
legislation to make chapter 12 permanent. That legislation passed the 
Senate by unanimous consent. However, the legislation was not enacted 
into law. On April 1 of this year, chapter 12 will expire. Mr. 
President, we cannot let this happen.
  As the only family farmer in the Senate, I feel I have a unique 
responsibility to make sure that family farming remains a strong and 
vibrant part of American life. For generations, family farms have fed 
this country. But farming has always had rough periods.
  Allowing chapter 12 to expire will repeat a fatal mistake of the 
past. During the great depression, Congress created special bankruptcy 
protections for farmers to help them ride out the severe economic 
conditions of that tragic era. However, Congress allowed these laws to 
lapse in the 1950s. So, when farmers in Iowa confronted the farm crisis 
of the mid-1980s, they were left without effective bankruptcy relief. 
By passing my legislation, we can prevent the mistakes of the past from 
occurring again.
  I think it's very important to realize that chapter 12 is not a hand 
out or a ``get out of debt free'' card. Farmers are hard-working people 
who want the chance to learn their way. In fact, chapter 12 is modeled 
on chapter 13, where individuals set up plans to re-pay a portion of 
their debts.
  By all accounts, chapter 12 has been wildly successful. So many times 
in Washington we develop programs and laws with the best of intentions. 
But when these programs get to the real world, they don't work well. 
chapter 12, on the other hand, has worked exactly as intended. 
According to Professor Neil Harl of Iowa State University, 74 percent 
of family farmers who filed Chapter 12 bankruptcy are still farming and 
61 percent of farmers who went through Chapter 12 believe that Chapter 
12 was helpful in getting them back on their feet.
  But Chapter 12 can be made even better. ``Safety 2000'' will make 
Chapter 12 better. The bill expands the definition of family farmer so 
that more farmers can use Chapter 12. Under current law, family farmers 
can't use Chapter 12 to save their farms if a farmer has more than $1.5 
million in debt. This is too restrictive, and my bill would let farmers 
who have up to $3 million in debt use Chapter 12.
  ``Safety 2000'' also helps farmers to reorganize by keeping the tax 
collectors at bay. Under current law, farmers often face a crushing tax 
liability if they need to sell livestock or land in order to reorganize 
their business affairs. According to Joe Peiffer, a bankruptcy lawyer 
from Hiawatha, Iowa, who represents many family farmers, high taxes 
have caused farmers to lose their farms. Under the bankruptcy code, the 
I.R.S. must be paid in full for any tax liabilities generated during a 
bankruptcy reorganization. If the farmer can't pay the I.R.S. in full, 
then he can't keep his farm. This isn't sound policy. Why should the 
I.R.S. be allowed to veto a farmer's reorganization plan? ``Safety 
2000'' takes this power away from the I.R.S. by reducing the priority 
of taxes during proceedings. This will free up capital for investment 
in the farm, and help farmers stay in the business of farming.
  In conclusion, Chapter 12 works well and this legislation will make 
it work

[[Page 1114]]

better. Let's make sure that we keep this safety net for family farmers 
in place. I urge my colleagues to think of this bill as a low-cost 
insurance policy for an important part of America's economy and 
America's heritage.
  Mr. KOHL. Mr. President, I rise to join Senator Grassley as a 
cosponsor of ``Safeguarding America's Farms Entering the Year 2000.'' 
This measure would make permanent the bankruptcy code provisions that 
protect family farmers in hard times by giving them the ability to hold 
on to their farms while they reorganize their finances.
  Without prompt action by Congress, the bankruptcy laws for family 
farmers, known as Chapter 12, will expire on April 1, 1999. When 
Congress first enacted Chapter 12 in 1986 for seven years, we intended 
to make Chapter 12 permanent if it proved successful. Already, Chapter 
12 has been extended twice, in 1993 and again last year.
  Family farmers need this permanent protection because Chapter 12 
works. It takes into consideration the unique circumstances faced by 
family farmers. It recognizes our special interest in keeping family 
farms in the family, where possible. And in practice it pays off--
according to the National Bankruptcy Review Commission, farmers in 
Chapter 12 are more likely to successfully reorganize than individuals 
filing under parallel chapters.
  The continued success of the tens of thousands of family farmers in 
Wisconsin--and millions nationwide--is important to our national 
interest. But their well-being is too often jeopardized by elements out 
of their control. For example, many Wisconsin farmers now are facing 
distress due to unusually low prices for hogs, corn and soy beans. The 
opportunity to reorganize their business under Chapter 12 may be an 
important option in these difficult times. They deserve to know that 
this protection will always be available. Thank you.
                                 ______
                                 
      By Mr. SPECTER (for himself, Mr. Rockefeller, Mr. Byrd, Mr. 
        DeWine, Mr. Hollings, Mr. Santorum, Ms. Mikulski, Mr. Sarbanes, 
        Mr. Hutchinson, Mr. Durbin, Mr. Kohl, Mr. Sessions, and Mr. 
        Moynihan):
  S. 261. A bill to amend the Trade Act of 1974, and for other 
purposes; to the Committee on Finance.


                     the trade fairness act of 1999

  Mr. SPECTER. Mr. President, I have sought recognition today to 
introduce legislation to try to deal with a very serious surge of steel 
imports into the United States, which is threatening to decimate the 
steel industry and take thousands of jobs from American steelworkers in 
a way which is patently unfair and in violation of free trade 
practices. My bill is entitled the ``Trade Fairness Act of 1999'' 
because it would bring our laws in line with those established by the 
General Agreement on Tarriffs and provide relief to the flood of 
foreign steel imports dumped onto the American market.
  On Monday, November 30, 1998, Senator Rockefeller and I convened a 
hearing of the Senate Steel Caucus to look further into the continued 
dumping of foreign steel on the U.S. market and its affect on domestic 
producers. At that hearing, Hank Barnette, Chairman and CEO of 
Bethlehem Steel, and George Becker, President of the United 
Steelworkers of America, testified to the magnitude of the crisis, the 
continued loss of high-paying jobs and the alarming lack of capital 
investment by the industry over the last several months. They both 
expressed frustration at the lack of activity by the Clinton 
Administration to respond to illegal dumping of foreign steel.
  On October 7, 1998, Senator John D. Rockefeller, Congressman Ralph 
Regula and Congressman Jim Oberstar, and I met with representatives of 
the Clinton Administration, specifically Treasury Secretary Robert 
Rubin, Commerce Secretary William Daley, United States Trade 
Representative Ambassador Charlene Barshefsky and National Economic 
Council Advisor Gene Sperling, to discuss the steel import issue. At 
that meeting, representatives of the Clinton Administration assured us 
that they were looking into actions that the Administration could take 
to respond to the illegal dumping of foreign steel on the U.S. market 
but had yet to make a final decision on their response.
  The urgency of this crisis and the failure of the Administration to 
take action was evident from testimony presented on September 10, 1998, 
where, as Chairman of the Senate Steel Caucus, I joined House Chairman 
Regula in convening a joint meeting of the Senate and House Steel 
Caucuses to hear from members of the United Steelworkers of America and 
executives from a number of the nation's largest steel manufacturers 
about the current influx of imported steel into the United States. At 
that meeting, I expressed my profound concern regarding the impact on 
our steel companies and steelworkers of the current financial crises in 
Asia and Russia, which have generated surges in U.S. imports of Asian 
and Russian steel.
  The United States has become the dumping ground for foreign steel. 
Russia has become the world's number one steel exporting nation and 
China is now the world's number one steel-producing nation, while 
enormous subsidies to foreign steel producers have continued. In fact, 
the Commerce Department revealed that Russia, one of the world's least 
efficient producers, was selling steel plate in the United States at 
more than 50 percent, or $110 per ton, below the constructed cost to 
make steel plate. The dumping of this cheap steel on the American 
market ultimately costs our steel companies in lost sales and results 
in fewer jobs for American workers.
  Specifically, the October 1998 import level was the second highest 
monthly total ever, with 4.1 million net tons--an increase of 56 
percent over October 1997 of 2.6 million net tons. Only August 1998 
(4.4 million net tons) surpassed it. The October level, if annualized, 
would exceed 49 million net tons, or 48 percent of expected total U.S. 
domestic steel shipments for the entire year. Total imports in October 
were 35 percent of apparent consumption, up from 23 percent a year 
earlier.
  Imports of steel from various countries have dramatically increased 
when the first six months of 1997 are compared to the first six months 
of 1998. The percent increases from four countries are as follows: 
Japan, 141 percent; South Africa, 124 percent; South Korea, 96 percent; 
Russia, 29 percent.
  The following is an example of the layoffs and plant slowdowns since 
September, 1998:
  Geneva Steel has laid off 460 workers;
  U.S. Steel's Philadelphia operations have been reduced by 70 percent;
  LTV Steel's plant closure has cost 320 jobs; and,
  Weirton Steel has suffered 300 layoffs with 200 additional layoffs 
expected by January 1, 1999.
  The American Iron and Steel Institute estimates that 5,000 
steelworkers, nationwide, have been laid off since September, 1998. An 
additional 10,000 U.S. steelworkers' jobs are at risk of imminent 
layoffs.
  I believe that the growing coalition of steel manufacturers, 
steelworkers, and Congress must work together to remedy this import 
crisis before it is too late and the U.S. steel industry is forced to 
endure an excruciatingly painful economic downturn. The United States 
has many of the tools at its disposal to protect our steel industry 
from unfair and illegally dumped steel; therefore, I introduced Senate 
Concurrent Resolution 121 on September 29, 1998, to call on the 
President to take all necessary measures to respond to the surge of 
steel imports resulting from the Asian and Russian financial crises. I 
am pleased to state that the resolution passed both houses of Congress 
on October 19, 1998. Unfortunately, the President's report to Congress 
failed to take the immediate action needed to stop the importation of 
foreign steel.
  While this resolution was an appropriate way for Congress to express 
our concerns and request immediate actions by the Administration to 
respond to the steel import crisis, I think it is also important to 
give the Administration all the necessary tools to fight the surges of 
foreign steel. After reviewing the U.S. trade laws, I discovered that 
our trade laws place the United States

[[Page 1115]]

at a disadvantage in the international trade arena. Our laws are more 
strict than those agreements made during the Uruguay Round negotiations 
on the General Agreement on Tariffs and Trade (GATT). That agreement, 
which the Senate considered and passed on December 1, 1994, established 
the World Trade Organization (WTO) to administer these trade 
agreements.
  The GATT established rules for the application of safeguard measures. 
The agreement provides that a member of the WTO may apply a safeguard 
measure to a product if the member has determined that such product is 
being imported into its territory in such increased quantities, 
absolute or relative to domestic production, and under such conditions 
as to cause or threaten to cause serious injury to the domestic 
industry that produces like or directly competitive products. The 
comparable U.S. statute, referred to as safeguard actions, or Section 
201 of the 1974 Trade Act, provide a procedure whereby the President 
has the discretion to grant temporary import relief to a domestic 
industry injured by increased imports. Our statute goes further than 
GATT by requiring that foreign imports are the substantial cause of the 
injury. It just does not make sense to hinder the Administration by 
placing this additional burden on it in evaluating a claim of injury 
due to surges of imports. We need to level the playing field so that 
all countries are playing by the same rules. This oversight is one 
example of the technical corrections that must be made to U.S. trade 
laws to bring them in line with WTO's rules.
  For these reasons and to provide relief to the domestic steel 
industry injured by these overly strict laws, I am introducing the 
Trade Fairness Act of 1999, which seeks to: lower the threshold for 
establishing injury in safeguard actions under Section 201 of the 1974 
Trade Act; and, establish an import monitoring program to monitor the 
influx of foreign steel on the U.S. market.
  During the last days of the 105th Congress, I introduced the Trade 
Fairness Act of 1998 which sought to amend the Trade Act of 1974 by 
making technical corrections to our strict laws; the first section of 
the legislation I am introducing today is based on that bill. First, 
regarding safeguard actions, this legislation removes the requirement 
that imports must be a ``substantial'' cause of the serious injury by 
deleting the word ``substantial.'' The WTO's Safeguards Agreement does 
not require that increased imports by a ``substantial'' cause of 
serious injury. This change will lower the threshold to prove that the 
influx of imports were the cause of injury to the affected industry and 
will make U.S. law consistent with the WTO rules.
  Second, the legislation clarifies that the International Trade 
Commission (ITC) shall not attribute to imports injury caused by other 
factors in making a determination that imports are a cause of serious 
injury. This provision clarifies that there only needs to be a causal 
link between the imports and the injury in order to gain relief. This 
clarification is a more faithful implementation of the GATT Agreement 
and will prevent circumstances such as a recession from blocking 
invocation of Section 201 by the Administration.
  Finally, this legislation brings the definition of ``serious injury'' 
in line with the definition codified in the GATT Agreement. The bill 
strikes the definition of serious injury and replaces it with the WTO's 
language regarding evaluation of whether increased imports have caused 
serious injury to a domestic industry. Specifically, it states ``with 
respect to serious injury'', the ITC should consider ``the rate and 
amount of the increase in imports of the product concerned in absolute 
and relative terms; the share of the domestic market taken by increased 
imports; changes in the levels of sales; production; productivity; 
capacity utilization; profits and losses; and, employment.'' These 
factors are important guidance to the ITC in evaluating a petition of 
serious injury. Again, I think it is appropriate to be consistent with 
the WTO language as America increasingly interacts on a global scale.
  Next, my legislation establishes a comprehensive steel import permit 
and monitoring program, which is modeled on similar systems currently 
in use in Canada and Mexico. The program created by this legislation 
requires importers to provide information regarding country of origin, 
quantity, value and Harmonized Tariff Schedule number. The program also 
requires the Administration to release the data collected to the public 
in aggregate form on an expedited basis. The information provided by 
the licensing program will allow the Commerce Department and the steel 
industry to monitor the influx of steel imports into the United States. 
Currently, unfairly traded imports can cause significant damage to the 
U.S. market long before the data is available for even preliminary 
analysis. This program will allow the U.S. government to receive and 
analyze critical data in a more timely manner and, as a result, allow 
the industry to determine more quickly whether unfairly traded imports 
are disrupting the market.
  Specifically, the bill directs the Secretary of Commerce and the 
Secretary of Treasury to implement a steel import monitoring program 
that requires importers of all products classified within Chapters 72 
and 73 of the Harmonized Tariff Schedule of the United States (HTSUS) 
to obtain an import permit prior to entering such products in the 
United States. In order to obtain an import permit, the importer is 
required to submit an import permit application containing specific 
information. An import permit is issued automatically upon receipt of 
the application and is valid for a period of thirty days.
  This legislation will enhance U.S. law to better respond to surges of 
foreign imports that injure U.S. industries. It is important to note 
that, with the exception of the steel import licensing provisions, this 
legislation applies to all industries and is not limited to the steel 
industry. As such, other U.S. industries that are faced with an import 
crisis such as the steel industry is currently confronting would also 
benefit from these improvements to the U.S. trade laws.
  The U.S. steel industry has become a world class industry with a very 
high-quality product. This has been achieved at a great cost: $50 
billion in new investment to restructure and modernize; 40 million tons 
of capacity taken out of the industry; and a work force dramatically 
downsized from 500,000 to 170,000. With these technical changes, the 
Administration will be armed with ammunition to bring a self-initiated 
Section 201 action on behalf of the steel industry that has been harmed 
not only by the onslaught of cheap imports on a daily basis but by U.S. 
law that has prevented swift and immediate action by the U.S. 
government. This legislation is essential to allow the President to 
respond promptly to the current steel import crisis. It will allow 
steel companies to compete in a more fair trade environment, preventing 
bankruptcies that would cause the loss of thousands of high-paying jobs 
in the steel industry. Too many steelworkers have lost their jobs due 
to unfair cheap imports. I intend to stand up for the steel industry 
and prevent the loss of any more jobs.
  For these reasons, I urge my colleagues to join me in supporting 
adoption of legislation to bring fairness to our trade laws and needed 
relief to the steel industry.
  Mr. SESSIONS. Mr. President, I rise today to join my colleagues in 
introducing the ``Trade Fairness Act of 1999'' and thank Senator 
Specter for his hard work in crafting this legislation which will help 
alleviate the economic turmoil in our domestic steel industry caused by 
illegal dumping.
  Recent trade data indicates that steel imports to the United States 
for the first ten months of 1998, ending in October, have reached an 
all time record of 34,628,000 tons. In contrast, imports to the United 
States in for the first ten months of 1997, which was itself a record 
year, equaled 26,708,000 tons. This represents a 30 percent increase.
  The bill I am joining in cosponsoring with Senator Specter today will 
help make it easier for the President to enforce our existing trade 
laws in two

[[Page 1116]]

ways; it will lower the threshold necessary for the President to take 
immediate action to stem the tide of illegal imports under section 201 
of the Trade Act of 1974 and it will create an ``Import Monitoring 
Program'' for steel, similar to the systems in place in both Mexico and 
Canada, to identify the country of origin, value and quantity of steel 
imports into the United States.
  These actions are in line with the General Agreement on Tarriffs and 
Trade (GATT) and will not hinder free trade with our international 
trading partners. The bill will provide necessary information, critical 
in determining whether illegal trade practices are occurring. This 
provision will ensure the President can take immediate, decisive action 
when those practices are identified.
  The men and women who work in the United States steel business are 
the most efficient and hardest working people in the world. Given a 
fair shake, our domestic steel producers have and can continue to 
compete with any of our international trading partners. Illegal dumping 
has forced America's steel industry into jeopardy. The jobs of 
thousands of steel workers in my home state of Alabama and across the 
Nation are threatened. Our steel workers and companies deserve the 
protection afforded to them by United States trade law and the rigorous 
enforcement of those laws by our President.
                                 ______
                                 
      By Mr. ROTH (for himself and Mr. Moynihan):
  S. 262. A bill to make miscellaneous and technical changes to various 
trade laws, and for other purposes. A bill to make miscellaneous and 
technical changes to various trade laws, and for other purposes; to the 
Committee on Finance.


       miscellaneous trade and technical corrections act of 1999

  Mr. ROTH. Mr. President, I rise today to introduce, on behalf of 
Senator Moynihan and myself, the Miscellaneous Trade and Technical 
Corrections Act of 1999. This bill reflects unfinished business from 
the 105th Congress and I am hopeful that the Senate will quickly move 
to approve this legislation this year.
  On September 29, the Finance Committee reported unanimously H.R. 
4342, the Miscellaneous Tariff and Technical Corrections Act of 1998. 
On October 20, 1998, the House passed and sent to the Senate H.R. 4856, 
the identical bill with the addition of several provisions. 
Unfortunately, for reasons unrelated to the substance of the bill, the 
Senate was unable to pass either piece of legislation.
  The bill I am introducing today with Senator Moynihan is 
substantively identical to H.R. 4856, with only minor technical changes 
necessary because of the passage of time. This bill contains over 150 
provisions temporarily suspending or reducing the applicable tariffs on 
a wide variety of products, including chemicals used to make anti-HIV, 
anti-AIDS and anti-cancer drugs, pigments, paints, herbicides and 
insecticides, certain machinery used in the production of textiles, and 
rocket engines.
  In each instance, there was either no domestic production of the 
product in question or the domestic producers supported the measure. By 
suspending or reducing the duties, we can enable U.S. firms that use 
these products to produce goods in a more cost efficient manner, 
thereby helping create jobs for American workers and reducing costs for 
consumers.
  The bill also contains a number of technical corrections and other 
minor modifications to the trade laws that enjoyed broad support. One 
such measure would help facilitate Customs Service clearance of 
athletes that participate in world athletic events, such as the 
upcoming Women's World Cup. Another measure would correct outdated 
references in the trade laws.
  For each of the provisions included in this bill, the House and 
Senate has solicited comments from the public and from the 
Administration to ensure that there was no controversy or opposition. 
Only those measures that were noncontroversial were included in the 
bill.
  The Finance Committee is scheduled to hold a mark-up of this bill on 
Friday, January 22nd. I hope that both the House and Senate will move 
to approve this legislation soon.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 262

       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 
     ``Miscellaneous Trade and Technical Corrections Act of 
     1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title.

                TITLE I--MISCELLANEOUS TRADE CORRECTIONS

Sec. 1001. Clerical amendments.
Sec. 1002. Obsolete references to GATT.
Sec. 1003. Tariff classification of 13-inch televisions.

   TITLE II--TEMPORARY DUTY SUSPENSIONS AND REDUCTIONS; OTHER TRADE 
                               PROVISIONS

         Subtitle A--Temporary Duty Suspensions and Reductions

                          Chapter 1--Reference

Sec. 2001. Reference.

               Chapter 2--Duty Suspensions and Reductions

Sec. 2101. Diiodomethyl-p-tolylsulfone.
Sec. 2102. Racemic dl-menthol.
Sec. 2103. 2,4-Dichloro-5-hydrazinophenol monohydrochloride.
Sec. 2104. TAB.
Sec. 2105. Certain snowboard boots.
Sec. 2106. Ethofumesate singularly or in mixture with application 
              adjuvants.
Sec. 2107. 3-Methoxycarbonylaminophenyl-3'-methylcarbanilate 
              (phenmedipham).
Sec. 2108. 3-Ethoxycarbonylaminophenyl-N-phenylcarbamate (desmedipham).
Sec. 2109. 2-Amino-4-(4-aminobenzoylamino)benzenesulfonic acid, sodium 
              salt.
Sec. 2110. 5-Amino-N-(2-hydroxyethyl)-2,3-xylenesul- fonamide.
Sec. 2111. 3-Amino-2'-(sulfatoethylsulfonyl) ethyl benzamide.
Sec. 2112. 4-Chloro-3-nitrobenzenesulfonic acid, monopotassium salt.
Sec. 2113. 2-Amino-5-nitrothiazole.
Sec. 2114. 4-Chloro-3-nitrobenzenesulfonic acid.
Sec. 2115. 6-Amino-1,3-naphthalenedisulfonic acid.
Sec. 2116. 4-Chloro-3-nitrobenzenesulfonic acid, monosodium salt.
Sec. 2117. 2-Methyl-5-nitrobenzenesulfonic acid.
Sec. 2118. 6-Amino-1,3-naphthalenedisulfonic acid, disodium salt.
Sec. 2119. 2-Amino-p-cresol.
Sec. 2120. 6-Bromo-2,4-dinitroaniline.
Sec. 2121. 7-Acetylamino-4-hydroxy-2-naphthalenesulfonic acid, 
              monosodium salt.
Sec. 2122. Tannic acid.
Sec. 2123. 2-Amino-5-nitrobenzenesulfonic acid, monosodium salt.
Sec. 2124. 2-Amino-5-nitrobenzenesulfonic acid, monoammonium salt.
Sec. 2125. 2-Amino-5-nitrobenzenesulfonic acid.
Sec. 2126. 3-(4,5-Dihydro-3-methyl-5-oxo-1H-pyrazol-1-
              yl)benzenesulfonic acid.
Sec. 2127. 4-Benzoylamino-5-hydroxy-2,7-naphtha- lenedisulfonic acid.
Sec. 2128. 4-Benzoylamino-5-hydroxy-2,7-naphtha- lenedisulfonic acid, 
              monosodium salt.
Sec. 2129. Pigment Yellow 151.
Sec. 2130. Pigment Yellow 181.
Sec. 2131. Pigment Yellow 154.
Sec. 2132. Pigment Yellow 175.
Sec. 2133. Pigment Yellow 180.
Sec. 2134. Pigment Yellow 191.
Sec. 2135. Pigment Red 187.
Sec. 2136. Pigment Red 247.
Sec. 2137. Pigment Orange 72.
Sec. 2138. Pigment Yellow 16.
Sec. 2139. Pigment Red 185.
Sec. 2140. Pigment Red 208.
Sec. 2141. Pigment Red 188.
Sec. 2142. 2,6-Dimethyl-m-dioxan-4-ol acetate.
Sec. 2143. b-Bromo-b-nitrostyrene.
Sec. 2144. Textile machinery.
Sec. 2145. Deltamethrin.
Sec. 2146. Diclofop-methyl.
Sec. 2147. Resmethrin.
Sec. 2148. N-phenyl-N'-1,2,3-thiadiazol-5-ylurea.
Sec. 2149. (1R,3S)3[(1'RS)(1',2',2',2',-Tetrabromoethyl)]-2,2-
              dimethylcyclopro-panecarboxylic acid, (S)-a-cyano-3-
              phenoxybenzyl ester.
Sec. 2150. Pigment Yellow 109.
Sec. 2151. Pigment Yellow 110.
Sec. 2152. Pigment Red 177.
Sec. 2153. Textile printing machinery.
Sec. 2154. Substrates of synthetic quartz or synthetic fused silica.

[[Page 1117]]

Sec. 2155. 2-Methyl-4,6-bis[(octylthio)methyl]phenol.
Sec. 2156. 2-Methyl-4,6-bis[(octylthio)methyl]phenol; epoxidized 
              triglyceride.
Sec. 2157. 4-[[4,6-Bis(octylthio)-1,3,5-triazin-2-yl]amino]-2,6-
              bis(1,1-dimethylethyl)phenol.
Sec. 2158. (2-Benzothiazolylthio)butanedioic acid.
Sec. 2159. Calcium bis[monoethyl(3,5-di-tert-butyl-4-hydroxybenzyl) 
              phosphonate].
Sec. 2160. 4-Methyl-g-oxo-benzenebutanoic acid compounded with 4-
              ethylmorpholine (2:1).
Sec. 2161. Weaving machines.
Sec. 2162. Certain weaving machines.
Sec. 2163. DEMT.
Sec. 2164. Benzenepropanal, 4-(1,1-dimethylethyl)-alpha-methyl-.
Sec. 2165. 2H-3,1-Benzoxazin-2-one, 6-chloro-4-(cyclopropylethynyl)-
              1,4-dihydro-4-(trifluoromethyl)-.
Sec. 2166. Tebufenozide.
Sec. 2167. Halofenozide.
Sec. 2168. Certain organic pigments and dyes.
Sec. 2169. 4-Hexylresorcinol.
Sec. 2170. Certain sensitizing dyes.
Sec. 2171. Skating boots for use in the manufacture of in-line roller 
              skates.
Sec. 2172. Dibutylnaphthalenesulfonic acid, sodium salt.
Sec. 2173. O-(6-Chloro-3-phenyl-4-pyridazinyl)-S-octylcarbonothioate.
Sec. 2174. 4-Cyclopropyl-6-methyl-2-phenylaminopyrimidine.
Sec. 2175. O,O-Dimethyl-S-[5-methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-
              methyl]-dithiophosphate.
Sec. 2176. Ethyl [2-(4-phenoxyphenoxy)ethyl]carbamate.
Sec. 2177. [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-
              chlorophenoxy)-2-chlorophenyl]-4-methyl-1,3-dioxolan-2-
              ylmethyl]-1H-1,2,4-triazole.
Sec. 2178. 2,4-Dichloro-3,5-dinitrobenzotrifluoride.
Sec. 2179. 2-Chloro-N-[2,6-dinitro-4-(trifluoromethyl)phenyl]-N-ethyl-
              6-fluorobenzenemethanamine.
Sec. 2180. Chloroacetone.
Sec. 2181. Acetic acid, [(5-chloro-8-quinolinyl)oxy]-, 1-methylhexyl 
              ester.
Sec. 2182. Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-
              pyridinyl)oxy]phenoxy]-, 2-propynyl ester.
Sec. 2183. Mucochloric acid.
Sec. 2184. Certain rocket engines.
Sec. 2185. Pigment Red 144.
Sec. 2186. Pigment Orange 64.
Sec. 2187. Pigment Yellow 95.
Sec. 2188. Pigment Yellow 93.
Sec. 2189. (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-
              pyrimido[5,4-b] [1,4]thiazin-6-yl)ethyl]-2-
              thienyl]carbonyl]-l-glutamic acid, diethyl ester.
Sec. 2190. 4-Chloropyridine hydrochloride.
Sec. 2191. 4-Phenoxypyridine.
Sec. 2192. (3S)-2,2-Dimethyl-3-thiomorpholine carboxylic acid.
Sec. 2193. 2-Amino-5-bromo-6-methyl-4-(1H)-quinazolinone.
Sec. 2194. 2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone.
Sec. 2195. (S)-N-[[5-[2-(2-amino-4,6,7,8-tetrahydro-4-oxo-1H-
              pyrimido[5,4-b][1,4]thiazin-6-yl)ethyl]-2-
              thienyl]carbonyl]-l-glutamic acid.
Sec. 2196. 2-Amino-6-methyl-5-(4-pyridinylthio)-4-(1H)-quinazolinone 
              dihydrochloride.
Sec. 2197. 3-(Acetyloxy)-2-methylbenzoic acid.
Sec. 2198. [R-(R*,R*)]-1,2,3,4-butanetetrol-1,4-dimeth- anesulfonate.
Sec. 2199. 9-[2- [[Bis[ (pivaloyloxy) methoxy]phosphinyl] methoxy] 
              ethyl]adenine (also known as Adefovir Dipivoxil).
Sec. 2200. 9-[2-(R)-[[Bis[(isopropoxycarbonyl)oxy-methoxy]-
              phosphinoyl]methoxy]-propyl]adenine fumarate (1:1).
Sec. 2201. (R)-9-(2-Phosphonomethoxypropyl)adenine.
Sec. 2202. (R)-1,3-Dioxolan-2-one, 4-methyl-.
Sec. 2203. 9-(2-Hydroxyethyl)adenine.
Sec. 2204. (R)-9H-Purine-9-ethanol, 6-amino-a-methyl-.
Sec. 2205. Chloromethyl-2-propyl carbonate.
Sec. 2206. (R)-1,2-Propanediol, 3-chloro-.
Sec. 2207. Oxirane, (S)-((triphenylmethoxy)methyl)-.
Sec. 2208. Chloromethyl pivalate.
Sec. 2209. Diethyl (((p-toluenesulfonyl)oxy)methyl)phosphonate.
Sec. 2210. Beta hydroxyalkylamide.
Sec. 2211. Grilamid tr90.
Sec. 2212. IN-W4280.
Sec. 2213. KL540.
Sec. 2214. Methyl thioglycolate.
Sec. 2215. DPX-E6758.
Sec. 2216. Ethylene, tetrafluoro copolymer with ethylene (ETFE).
Sec. 2217. 3-Mercapto-D-valine.
Sec. 2218. p-Ethylphenol.
Sec. 2219. Pantera.
Sec. 2220. p-Nitrobenzoic acid.
Sec. 2221. p-Toluenesulfonamide.
Sec. 2222. Polymers of tetrafluoroethylene, hexafluoropropylene, and 
              vinylidene fluoride.
Sec. 2223. Methyl 2-[[[[[4-(dimethylamino)-6-(2,2,2- trifluoroethoxy)-
              1,3,5-triazin-2-yl]amino]-carbonyl]amino]sulfonyl]-3-
              methyl-benzoate (triflusulfuron methyl).
Sec. 2224. Certain manufacturing equipment.
Sec. 2225. Textured rolled glass sheets.
Sec. 2226. Certain HIV drug substances.
Sec. 2227. Rimsulfuron.
Sec. 2228. Carbamic acid (V-9069).
Sec. 2229. DPX-E9260.
Sec. 2230. Ziram.
Sec. 2231. Ferroboron.
Sec. 2232. Acetic acid, [[2-chloro-4-fluoro-5-[(tetrahydro-3-oxo-1H,3H-
              [1,3,4] thiadiazolo[3,4-a]pyridazin-1-
              ylidene)amino]phenyl]- thio]-, methyl ester.
Sec. 2233. Pentyl[2-chloro-5-(cyclohex-1-ene-1,2-dicarboximido)-4-
              fluorophenoxy]acetate.
Sec. 2234. Bentazon (3-isopropyl)-1H-2,1,3-benzo-thiadiazin-4(3H)-one-
              2,2-dioxide).
Sec. 2235. Certain high-performance loudspeakers not mounted in their 
              enclosures.
Sec. 2236. Parts for use in the manufacture of certain high-performance 
              loudspeakers.
Sec. 2237. 5-tert-Butyl-isophthalic acid.
Sec. 2238. Certain polymer.
Sec. 2239. 2-(4-Chlorophenyl)-3-ethyl-2, 5-dihydro-5-oxo-4-pyridazine 
              carboxylic acid, potassium salt.

                       Chapter 3--Effective Date

Sec. 2301. Effective date.

                      Subtitle B--Trade Provisions

Sec. 2401. Extension of United States insular possession program.
Sec. 2402. Tariff treatment for certain components of scientific 
              instruments and apparatus.
Sec. 2403. Liquidation or reliquidation of certain entries.
Sec. 2404. Drawback and refund on packaging material.
Sec. 2405. Inclusion of commercial importation data from foreign-trade 
              zones under the National Customs Automation Program.
Sec. 2406. Large yachts imported for sale at United States boat shows.
Sec. 2407. Review of protests against decisions of Customs Service.
Sec. 2408. Entries of NAFTA-origin goods.
Sec. 2409. Treatment of international travel merchandise held at 
              customs-approved storage rooms.
Sec. 2410. Exception to 5-year reviews of countervailing duty or 
              antidumping duty orders.
Sec. 2411. Water resistant wool trousers.
Sec. 2412. Reimportation of certain goods.
Sec. 2413. Treatment of personal effects of participants in certain 
              world athletic events.
Sec. 2414. Reliquidation of certain entries of thermal transfer 
              multifunction machines.
Sec. 2415. Reliquidation of certain drawback entries and refund of 
              drawback payments.
Sec. 2416. Clarification of additional U.S. note 4 to chapter 91 of the 
              Harmonized Tariff Schedule of the United States.
Sec. 2417. Duty-free sales enterprises.
Sec. 2418. Customs user fees.
Sec. 2419. Duty drawback for methyl tertiary-butyl ether (``MTBE'').
Sec. 2420. Substitution of finished petroleum derivatives.
Sec. 2421. Duty on certain importations of mueslix cereals.
Sec. 2422. Expansion of Foreign Trade Zone No. 143.
Sec. 2423. Marking of certain silk products and containers.
Sec. 2424. Extension of nondiscriminatory treatment (normal trade 
              relations treatment) to the products of Mongolia.
Sec. 2425. Enhanced cargo inspection pilot program.
Sec. 2426. Payment of education costs of dependents of certain Customs 
              Service personnel.

         TITLE III--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

Sec. 3001. Property subject to a liability treated in same manner as 
              assumption of liability.
                TITLE I--MISCELLANEOUS TRADE CORRECTIONS

     SEC. 1001. CLERICAL AMENDMENTS.

       (a) Trade Act of 1974.--(1) Section 233(a) of the Trade Act 
     of 1974 (19 U.S.C. 2293(a)) is amended--
       (A) by aligning the text of paragraph (2) that precedes 
     subparagraph (A) with the text of paragraph (1); and
       (B) by aligning the text of subparagraphs (A) and (B) of 
     paragraph (2) with the text of subparagraphs (A) and (B) of 
     paragraph (3).

[[Page 1118]]

       (2) Section 141(b) of the Trade Act of 1974 (19 U.S.C. 
     2171(b)) is amended--
       (A) in paragraph (3) by striking ``Limitation on 
     appointments.--''; and
       (B) by aligning the text of paragraph (3) with the text of 
     paragraph (2).
       (3) The item relating to section 410 in the table of 
     contents for the Trade Act of 1974 is repealed.
       (4) Section 411 of the Trade Act of 1974 (19 U.S.C. 2441), 
     and the item relating to section 411 in the table of contents 
     for that Act, are repealed.
       (5) Section 154(b) of the Trade Act of 1974 (19 U.S.C. 
     2194(b)) is amended by striking ``For purposes of'' and all 
     that follows through ``90-day period'' and inserting ``For 
     purposes of sections 203(c) and 407(c)(2), the 90-day 
     period''.
       (6) Section 406(e)(2) of the Trade Act of 1974 (19 U.S.C. 
     2436(e)(2)) is amended by moving subparagraphs (B) and (C) 2 
     ems to the left.
       (7) Section 503(a)(2)(A)(ii) of the Trade Act of 1974 (19 
     U.S.C. 2463(a)(2)(A)(ii)) is amended by striking subclause 
     (II) and inserting the following:

       ``(II) the direct costs of processing operations performed 
     in such beneficiary developing country or such member 
     countries,

     is not less than 35 percent of the appraised value of such 
     article at the time it is entered.''.
       (8) Section 802(b)(1)(A) of the Trade Act of 1974 (19 
     U.S.C. 2492(b)(1)(A)) is amended--
       (A) by striking ``481(e)'' and inserting ``489''; and
       (B) by inserting ``(22 U.S.C. 2291h)'' after ``1961''.
       (9) Section 804 of the Trade Act of 1974 (19 U.S.C. 2494) 
     is amended by striking ``481(e)(1) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2291(e)(1))'' and inserting ``489 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2291h)''.
       (10) Section 805(2) of the Trade Act of 1974 (19 U.S.C. 
     2495(2)) is amended by striking ``and'' after the semicolon.
       (11) The table of contents for the Trade Act of 1974 is 
     amended by adding at the end the following:

  ``TITLE VIII--TARIFF TREATMENT OF PRODUCTS OF, AND OTHER SANCTIONS 
 AGAINST, UNCOOPERATIVE MAJOR DRUG PRODUCING OR DRUG-TRANSIT COUNTRIES

``Sec. 801.  Short title.
``Sec. 802.  Tariff treatment of products of uncooperative major drug 
              producing or drug-transit countries.
``Sec. 803.  Sugar quota.
``Sec. 804.  Progress reports.
``Sec. 805.  Definitions.''.
       (b) Other Trade Laws.--(1) Section 13031 of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
     U.S.C. 58c) is amended--
       (A) in subsection (e) by aligning the text of paragraph (1) 
     with the text of paragraph (2); and
       (B) in subsection (f)(3)--
       (i) in subparagraph (A)(ii) by striking ``subsection (a)(1) 
     through (a)(8)'' and inserting ``paragraphs (1) through (8) 
     of subsection (a)''; and
       (ii) in subparagraph (C)(ii)(I) by striking ``paragraph 
     (A)(i)'' and inserting ``subparagraph (A)(i)''.
       (2) Section 3(a) of the Act of June 18, 1934 (commonly 
     referred to as the ``Foreign Trade Zones Act'') (19 U.S.C. 
     81c(a)) is amended by striking the second period at the end 
     of the last sentence.
       (3) Section 9 of the Act of June 18, 1934 (commonly 
     referred to as the ``Foreign Trade Zones Act'') (19 U.S.C. 
     81i) is amended by striking ``Post Office Department, the 
     Public Health Service, the Bureau of Immigration'' and 
     inserting ``United States Postal Service, the Public Health 
     Service, the Immigration and Naturalization Service''.
       (4) The table of contents for the Trade Agreements Act of 
     1979 is amended--
       (A) in the item relating to section 411 by striking 
     ``Special Representative'' and inserting ``Trade 
     Representative''; and
       (B) by inserting after the items relating to subtitle D of 
     title IV the following:

  ``Subtitle E--Standards and Measures Under the North American Free 
                            Trade Agreement

            ``Chapter 1--Sanitary and Phytosanitary Measures

``Sec. 461. General.
``Sec. 462. Inquiry point.
``Sec. 463. Chapter definitions.

                ``Chapter 2--Standards-related Measures

``Sec. 471. General.
``Sec. 472. Inquiry point.
``Sec. 473. Chapter definitions.

                   ``Chapter 3--Subtitle Definitions

``Sec. 481. Definitions.

        ``Subtitle F--International Standard-Setting Activities

``Sec. 491. Notice of United States participation in international 
              standard-setting activities.
``Sec. 492. Equivalence determinations.
``Sec. 493. Definitions.''.
       (5)(A) Section 3(a)(9) of the Miscellaneous Trade and 
     Technical Corrections Act of 1996 is amended by striking 
     ``631(a)'' and ``1631(a)'' and inserting ``631'' and 
     ``1631'', respectively.
       (B) Section 50(c)(2) of such Act is amended by striking 
     ``applied to entry'' and inserting ``applied to such entry''.
       (6) Section 8 of the Act of August 5, 1935 (19 U.S.C. 1708) 
     is repealed.
       (7) Section 584(a) of the Tariff Act of 1930 (19 U.S.C. 
     1584(a)) is amended--
       (A) in the last sentence of paragraph (2), by striking 
     ``102(17) and 102(15), respectively, of the Controlled 
     Substances Act'' and inserting ``102(18) and 102(16), 
     respectively, of the Controlled Substances Act (21 U.S.C. 
     802(18) and 802(16))''; and
       (B) in paragraph (3)--
       (i) by striking ``or which consists of any spirits,'' and 
     all that follows through ``be not shown,''; and
       (ii) by striking ``, and, if any manifested merchandise'' 
     and all that follows through the end and inserting a period.
       (8) Section 621(4)(A) of the North American Free Trade 
     Agreement Implementation Act, as amended by section 21(d)(12) 
     of the Miscellaneous Trade and Technical Amendments Act of 
     1996, is amended by striking ``disclosure within 30 days'' 
     and inserting ``disclosure, or within 30 days''.
       (9) Section 558(b) of the Tariff Act of 1930 (19 U.S.C. 
     1558(b)) is amended by striking ``(c)'' each place it appears 
     and inserting ``(h)''.
       (10) Section 441 of the Tariff Act of 1930 (19 U.S.C. 1441) 
     is amended by striking paragraph (6).
       (11) General note 3(a)(ii) to the Harmonized Tariff 
     Schedule of the United States is amended by striking 
     ``general most-favored-nation (MFN)'' and by inserting in 
     lieu thereof ``general or normal trade relations (NTR)''.

     SEC. 1002. OBSOLETE REFERENCES TO GATT.

       (a) Forest Resources Conservation and Shortage Relief Act 
     of 1990.--(1) Section 488(b) of the Forest Resources 
     Conservation and Shortage Relief Act of 1990 (16 U.S.C. 
     620(b)) is amended--
       (A) in paragraph (3) by striking ``General Agreement on 
     Tariffs and Trade'' and inserting ``GATT 1994 (as defined in 
     section 2(1)(B) of the Uruguay Round Agreements Act)'' ; and
       (B) in paragraph (5) by striking ``General Agreement on 
     Tariffs and Trade'' and inserting ``WTO Agreement and the 
     multilateral trade agreements (as such terms are defined in 
     paragraphs (9) and (4), respectively, of section 2 of the 
     Uruguay Round Agreements Act)''.
       (2) Section 491(g) of that Act (16 U.S.C. 620c(g)) is 
     amended by striking ``Contracting Parties to the General 
     Agreement on Tariffs and Trade'' and inserting ``Dispute 
     Settlement Body of the World Trade Organization (as the term 
     `World Trade Organization' is defined in section 2(8) of the 
     Uruguay Round Agreements Act)''.
       (b) International Financial Institutions Act.--Section 
     1403(b) of the International Financial Institutions Act (22 
     U.S.C. 262n-2(b)) is amended--
       (1) in paragraph (1)(A) by striking ``General Agreement on 
     Tariffs and Trade or Article 10'' and all that follows 
     through ``Trade'' and inserting ``GATT 1994 as defined in 
     section 2(1)(B) of the Uruguay Round Agreements Act, or 
     Article 3.1(a) of the Agreement on Subsidies and 
     Countervailing Measures referred to in section 101(d)(12) of 
     that Act''; and
       (2) in paragraph (2)(B) by striking ``Article 6'' and all 
     that follows through ``Trade'' and inserting ``Article 15 of 
     the Agreement on Subsidies and Countervailing Measures 
     referred to in subparagraph (A)''.
       (c) Bretton Woods Agreements Act.--Section 49(a)(3) of the 
     Bretton Woods Agreements Act (22 U.S.C. 286gg(a)(3)) is 
     amended by striking ``GATT Secretariat'' and inserting 
     ``Secretariat of the World Trade Organization (as the term 
     `World Trade Organization' is defined in section 2(8) of the 
     Uruguay Round Agreements Act)''.
       (d) Fishermen's Protective Act of 1967.--Section 8(a)(4) of 
     the Fishermen's Protective Act of 1967 (22 U.S.C. 1978(a)(4)) 
     is amended by striking ``General Agreement on Tariffs and 
     Trade'' and inserting ``World Trade Organization (as defined 
     in section 2(8) of the Uruguay Round Agreements Act) or the 
     multilateral trade agreements (as defined in section 2(4) of 
     that Act)''.
       (e) United States-Hong Kong Policy Act of 1992.--Section 
     102(3) of the United States-Hong Kong Policy Act of 1992 (22 
     U.S.C. 5712(3)) is amended--
       (1) by striking ``contracting party to the General 
     Agreement on Tariffs and Trade'' and inserting ``WTO member 
     country (as defined in section 2(10) of the Uruguay Round 
     Agreements Act)''; and
       (2) by striking ``latter organization'' and inserting 
     ``World Trade Organization (as defined in section 2(8) of 
     that Act)''.
       (f) NOAA Fleet Modernization Act.--Section 607(b)(8) of the 
     NOAA Fleet Modernization Act (33 U.S.C. 891e(b)(8)) is 
     amended by striking ``Agreement on Interpretation'' and all 
     that follows through ``trade negotiations'' and inserting 
     ``Agreement on Subsidies and Countervailing Measures referred 
     to in section 101(d)(12) of the Uruguay Round Agreements Act, 
     or any other export subsidy prohibited by that agreement''.
       (g) Energy Policy Act of 1992.--(1) Section 1011(b) of the 
     Energy Policy Act of 1992 (42 U.S.C. 2296b(b)) is amended--
       (A) by striking ``General Agreement on Tariffs and Trade'' 
     and inserting ``multilateral trade agreements (as defined in 
     section 2(4) of the Uruguay Round Agreements Act)''; and

[[Page 1119]]

       (B) by striking ``United States-Canada Free Trade 
     Agreement'' and inserting ``North American Free Trade 
     Agreement''.
       (2) Section 1017(c) of such Act (42 U.S.C. 2296b-6(c)) is 
     amended--
       (A) by striking ``General Agreement on Tariffs and Trade'' 
     and inserting ``multilateral trade agreements (as defined in 
     section 2(4) of the Uruguay Round Agreements Act)''; and
       (B) by striking ``United States-Canada Free Trade 
     Agreement'' and inserting ``North American Free Trade 
     Agreement''.
       (h) Energy Policy Conservation Act.--Section 400AA(a)(3) of 
     the Energy Policy Conservation Act (42 U.S.C. 6374(a)(3)) is 
     amended in subparagraphs (F) and (G) by striking ``General 
     Agreement on Tariffs and Trade'' each place it appears and 
     inserting ``multilateral trade agreements as defined in 
     section 2(4) of the Uruguay Round Agreements Act''.
       (i) Title 49, United States Code.--Section 50103 of title 
     49, United States Code, is amended in subsections (c)(2) and 
     (e)(2) by striking ``General Agreement on Tariffs and Trade'' 
     and inserting ``multilateral trade agreements (as defined in 
     section 2(4) of the Uruguay Round Agreements Act)''.

     SEC. 1003. TARIFF CLASSIFICATION OF 13-INCH TELEVISIONS.

       (a) In General.--Each of the following subheadings of the 
     Harmonized Tariff Schedule of the United States is amended by 
     striking ``33.02 cm'' in the article description and 
     inserting ``34.29 cm'':
       (1) Subheading 8528.12.12.
       (2) Subheading 8528.12.20.
       (3) Subheading 8528.12.62.
       (4) Subheading 8528.12.68.
       (5) Subheading 8528.12.76.
       (6) Subheading 8528.12.84.
       (7) Subheading 8528.21.16.
       (8) Subheading 8528.21.24.
       (9) Subheading 8528.21.55.
       (10) Subheading 8528.21.65.
       (11) Subheading 8528.21.75.
       (12) Subheading 8528.21.85.
       (13) Subheading 8528.30.62.
       (14) Subheading 8528.30.66.
       (15) Subheading 8540.11.24.
       (16) Subheading 8540.11.44.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section apply 
     to articles entered, or withdrawn from warehouse for 
     consumption, on or after the date that is 15 days after the 
     date of enactment of this Act.
       (2) Retroactive application.--Notwithstanding section 514 
     of the Tariff Act of 1930 or any other provision of law, upon 
     proper request filed with the Customs Service not later than 
     180 days after the date of enactment of this Act, any entry, 
     or withdrawal from warehouse for consumption, of an article 
     described in a subheading listed in paragraphs (1) through 
     (16) of subsection (a)--
       (A) that was made on or after January 1, 1995, and before 
     the date that is 15 days after the date of enactment of this 
     Act,
       (B) with respect to which there would have been no duty or 
     a lesser duty if the amendments made by subsection (a) 
     applied to such entry, and
       (C) that is--
       (i) unliquidated,
       (ii) under protest, or
       (iii) otherwise not final,

     shall be liquidated or reliquidated as though such amendment 
     applied to such entry.
      TITLE II--TEMPORARY DUTY SUSPENSIONS AND REDUCTIONS; OTHER 
                            TRADE PROVISIONS
         Subtitle A--Temporary Duty Suspensions and Reductions

                          CHAPTER 1--REFERENCE

     SEC. 2001. REFERENCE.

       Except as otherwise expressly provided, whenever in this 
     subtitle an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a chapter, subchapter, note, 
     additional U.S. note, heading, subheading, or other 
     provision, the reference shall be considered to be made to a 
     chapter, subchapter, note, additional U.S. note, heading, 
     subheading, or other provision of the Harmonized Tariff 
     Schedule of the United States (19 U.S.C. 3007).

               CHAPTER 2--DUTY SUSPENSIONS AND REDUCTIONS

     SEC. 2101. DIIODOMETHYL-P-TOLYLSULFONE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.90      Diiodomethyl-p-     Free         No change        No change        On or before 12/
                         tolylsulfone (CAS                                                  31/2001
                         No. 20018-09-1)
                         (provided for in
                         subheading
                         2930.90.10)......
 

     SEC. 2102. RACEMIC DL-MENTHOL.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.06      Racemic dl-menthol  Free         No change        No change        On or before 12/
                         (intermediate (E)                                                  31/2001
                         for use in
                         producing
                         menthol) (CAS No.
                         15356-70-4)
                         (provided for in
                         subheading
                         2906.11.00)......
 

     SEC. 2103. 2,4-DICHLORO-5-HYDRAZINOPHENOL MONOHY- 
                   DROCHLORIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.28      2,4-Dichloro-5-     Free         No change        No change        On or before 12/
                         hydrazinophenol                                                    31/2001          ''.
                         monohy
                         drochloride (CAS
                         No. 189573-21-5)
                         (provided for in
                         subheading
                         2928.00.25)......

     SEC. 2104. TAB.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.95      Phosphinic acid,    Free         No change        No change        On or before 12/
                         [3-(acetyloxy)-3-                                                  31/2001          ''.
                         cyanopropyl]methy
                         l-, butyl ester
                         (CAS No. 167004-
                         78-6) (provided
                         for in subheading
                         2931.00.90)......

     SEC. 2105. CERTAIN SNOWBOARD BOOTS.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.64.04      Snowboard boots     Free         No change        No change        On or before 12/
                         with uppers of                                                     31/2001          ''.
                         textile materials
                         (provided for in
                         subheading
                         6404.11.90)......

     SEC. 2106. ETHOFUMESATE SINGULARLY OR IN MIXTURE WITH 
                   APPLICATION ADJUVANTS.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1120]]



``      9902.31.12      2-Ethoxy-2,3-       Free         No change        No change        On or before 12/
                         dihydro-3,3-                                                       31/2001          ''.
                         dimethyl-5-
                         benzofuranyl-
                         methanesulfonate
                         (ethofumesate)
                         singularly or in
                         mixture with
                         application
                         adjuvants (CAS
                         No. 26225-79-6)
                         (provided for in
                         subheading
                         2932.99.08 or
                         3808.30.15)......

     SEC. 2107. 3-METHOXYCARBONYLAMINOPHENYL-3'-METHYL-CARBANILATE 
                   (PHENMEDIPHAM).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.31.13      3-                  Free         No change        No change        On or before 12/
                         Methoxycarbonylam                                                  31/2001          ''.
                         ino- phenyl-3-
                         methylcarbanilate
                         (phenmedipham)
                         (CAS No. 13684-63-
                         4) (provided for
                         in subheading
                         2924.29.47)......

     SEC. 2108. 3-ETHOXYCARBONYLAMINOPHENYL-N-PHENYL-CARBAMATE 
                   (DESMEDIPHAM).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.31.14      3-                  Free         No change        No change        On or before 12/
                         Ethoxycarbonylami                                                  31/2001          ''.
                         no-phenyl-N-
                         phenylcarbamate
                         (desmedipham)
                         (CAS No. 13684-56-
                         5) (provided for
                         in subheading
                         2924.29.41)......

     SEC. 2109. 2-AMINO-4-(4-AMINOBENZOYLAMINO)BENZENE-SULFONIC 
                   ACID, SODIUM SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.91      2-Amino-4-(4-       Free         No change        No change        On or before 12/
                         aminobenzoyl-                                                      31/2001          ''.
                         amino)
                         benzenesulfonic
                         acid, sodium salt
                         (CAS No. 167614-
                         37-1) (provided
                         for in subheading
                         2930.90.29)......

     SEC. 2110. 5-AMINO-N-(2-HYDROXYETHYL)-2,3-XYLENESUL- 
                   FONAMIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.31      5-Amino-N-(2-       Free         No change        No change        On or before 12/
                         hydroxyethyl)-2,3-                                                 31/2001          ''.
                         xylenesulfonamide
                         (CAS No. 25797-78-
                         8) (provided for
                         in subheading
                         2935.00.95)......

     SEC. 2111. 3-AMINO-2'-(SULFATOETHYLSULFONYL) ETHYL BENZAMIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.90      3-Amino-2-          Free         No change        No change        On or before 12/
                         (sulfatoethylsulf                                                  31/2001          ''.
                         onyl) ethyl
                         benzamide (CAS
                         No. 121315-20-6)
                         (provided for in
                         subheading
                         2930.90.29)......

     SEC. 2112. 4-CHLORO-3-NITROBENZENESULFONIC ACID, 
                   MONOPOTASSIUM SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.92      4-Chloro-3-         Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid,
                         monopotassium
                         salt (CAS No.
                         6671-49-4)
                         (provided for in
                         subheading
                         2904.90.47)......

     SEC. 2113. 2-AMINO-5-NITROTHIAZOLE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.46      2-Amino-5-          Free         No change        No change        On or before 12/
                         nitrothiazole                                                      31/2001          ''.
                         (CAS No. 121-66-
                         4) (provided for
                         in subheading
                         2934.10.90)......

     SEC. 2114. 4-CHLORO-3-NITROBENZENESULFONIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.04      4-Chloro-3-         Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid (CAS No.
                         121-18-6)
                         (provided for in
                         subheading
                         2904.90.47)......

     SEC. 2115. 6-AMINO-1,3-NAPHTHALENEDISULFONIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1121]]



``      9902.29.21      6-Amino-1,3-        Free         No change        No change        On or before 12/
                         naphthalenedisulf                                                  31/2001          ''.
                         onic acid (CAS
                         No. 118-33-2)
                         (provided for in
                         subheading
                         2921.45.90)......

     SEC. 2116. 4-CHLORO-3-NITROBENZENESULFONIC ACID, MONOSODIUM 
                   SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.24      4-Chloro-3-         Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid,
                         monosodium salt
                         (CAS No. 17691-19-
                         9) (provided for
                         in subheading
                         2904.90.40)......

     SEC. 2117. 2-METHYL-5-NITROBENZENESULFONIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.23      2-Methyl-5-         Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid (CAS No.
                         121-03-9)
                         (provided for in
                         subheading
                         2904.90.20)......

     SEC. 2118. 6-AMINO-1,3-NAPHTHALENEDISULFONIC ACID, DISODIUM 
                   SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.45      6-Amino-1,3-        Free         No change        No change        On or before 12/
                         naphthalenedisulf                                                  31/2001          ''.
                         onic acid,
                         disodium salt
                         (CAS No. 50976-35-
                         7) (provided for
                         in subheading
                         2921.45.90)......

     SEC. 2119. 2-AMINO-P-CRESOL.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.20      2-Amino-p-cresol    Free         No change        No change        On or before 12/
                         (CAS No. 95-84-1)                                                  31/2001          ''.
                         (provided for in
                         subheading
                         2922.29.10)......

     SEC. 2120. 6-BROMO-2,4-DINITROANILINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.43      6-Bromo-2,4-        Free         No change        No change        On or before 12/
                         dinitroaniline                                                     31/2001          ''.
                         (CAS No. 1817-73-
                         8) (provided for
                         in subheading
                         2921.42.90)......

     SEC. 2121. 7-ACETYLAMINO-4-HYDROXY-2-NAPHTHALENE-SULFONIC 
                   ACID, MONOSODIUM SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.29      7-Acetylamino-4-    Free         No change        No change        On or before 12/
                         hydroxy-2-                                                         31/2001          ''.
                         naphthalenesulfon
                         ic acid,
                         monosodium salt
                         (CAS No. 42360-29-
                         2) (provided for
                         in subheading
                         2924.29.70)......

     SEC. 2122. TANNIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.01      Tannic acid (CAS    Free         No change        No change        On or before 12/
                         No. 1401-55-4)                                                     31/2001          ''.
                         (provided for in
                         subheading
                         3201.90.10)......

     SEC. 2123. 2-AMINO-5-NITROBENZENESULFONIC ACID, MONOSODIUM 
                   SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.53      2-Amino-5-          Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid,
                         monosodium salt
                         (CAS No. 30693-53-
                         9) (provided for
                         in subheading
                         2921.42.90)......

     SEC. 2124. 2-AMINO-5-NITROBENZENESULFONIC ACID, MONOAMMONIUM 
                   SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.44      2-Amino-5-          Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid,
                         monoammonium salt
                         (CAS No. 4346-51-
                         4) (provided for
                         in subheading
                         2921.42.90)......

     SEC. 2125. 2-AMINO-5-NITROBENZENESULFONIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1122]]



``      9902.29.54      2-Amino-5-          Free         No change        No change        On or before 12/
                         nitrobenzenesulfo                                                  31/2001          ''.
                         nic acid (CAS No.
                         96-75-3)
                         (provided for in
                         subheading
                         2921.42.90)......

     SEC. 2126. 3-(4,5-DIHYDRO-3-METHYL-5-OXO-1H-PYRAZOL-1-
                   YL)BENZENESULFONIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.19      3-(4,5-Dihydro-3-   Free         No change        No change        On or before 12/
                         methyl-5-oxo-1H-                                                   31/2001          ''.
                         pyrazol-1-
                         yl)benzenesulfoni
                         c acid (CAS No.
                         119-17-5)
                         (provided for in
                         subheading
                         2933.19.43)......

     SEC. 2127. 4-BENZOYLAMINO-5-HYDROXY-2,7-NAPHTHA- 
                   LENEDISULFONIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.65      4-Benzoylamino-5-   Free         No change        No change        On or before 12/
                         hydroxy-2,7-                                                       31/2001          ''.
                         naphthalenedisulf
                         onic acid (CAS
                         No. 117-46-4)
                         (provided for in
                         subheading
                         2924.29.75)......

     SEC. 2128. 4-BENZOYLAMINO-5-HYDROXY-2,7-NAPHTHA- 
                   LENEDISULFONIC ACID, MONOSODIUM SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.72      4-Benzoylamino-5-   Free         No change        No change        On or before 12/
                         hydroxy-2,7-                                                       31/2001          ''.
                         naphthalenedisulf
                         onic acid,
                         monosodium salt
                         (CAS No. 79873-39-
                         5) (provided for
                         in subheading
                         2924.29.70)......

     SEC. 2129. PIGMENT YELLOW 151.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.04      Pigment Yellow 151  6.4%         No change        No change        On or before 12/
                         (CAS No. 031837-                                                   31/2001          ''.
                         42-0) (provided
                         for in subheading
                         3204.17.90)......

     SEC. 2130. PIGMENT YELLOW 181.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.17      Pigment Yellow 181  Free         No change        No change        On or before 12/
                         (CAS No. 074441-                                                   31/2001          ''.
                         05-7) (provided
                         for in subheading
                         3204.17.60)......

     SEC. 2131. PIGMENT YELLOW 154.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.18      Pigment Yellow 154  Free         No change        No change        On or before 12/
                         (CAS No. 068134-                                                   31/2001          ''.
                         22-5) (provided
                         for in subheading
                         3204.17.60)......

     SEC. 2132. PIGMENT YELLOW 175.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.19      Pigment Yellow 175  Free         No change        No change        On or before 12/
                         (CAS No. 035636-                                                   31/2001          ''.
                         63-6) (provided
                         for in subheading
                         3204.17.60)......

     SEC. 2133. PIGMENT YELLOW 180.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.20      Pigment Yellow 180  Free         No change        No change        On or before 12/
                         (CAS No. 77804-81-                                                 31/2001          ''.
                         0) (provided for
                         in subheading
                         3204.17.60)......

     SEC. 2134. PIGMENT YELLOW 191.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.21      Pigment Yellow 191  Free         No change        No change        On or before 12/
                         (CAS No. 129423-                                                   31/2001          ''.
                         54-7) (provided
                         for in subheading
                         3204.17.60)......

     SEC. 2135. PIGMENT RED 187.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following heading:

``      9902.32.22      Pigment Red 187     Free         No change        No change        On or before 12/
                         (CAS No. 59487-23-                                                 31/2001          ''.
                         9) (provided for
                         in subheading
                         3204.17.60)......

     SEC. 2136. PIGMENT RED 247.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1123]]



``      9902.32.23      Pigment Red 247     Free         No change        No change        On or before 12/
                         (CAS No. 43035-18-                                                 31/2001          ''.
                         3) (provided for
                         in subheading
                         3204.17.60)......

     SEC. 2137. PIGMENT ORANGE 72.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.24      Pigment Orange 72   Free         No change        No change        On or before 12/
                         (CAS No. 78245-94-                                                 31/2001          ''.
                         0) (provided for
                         in subheading
                         3204.17.60)......

     SEC. 2138. PIGMENT YELLOW 16.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

        9902.32.251``   Pigment Yellow 16   Free         No change        No change        On or before 12/
                         (CAS No. 5979-28-                                                  31/2001          ''.
                         2) (provided for
                         in subheading
                         3204.17.04)......

     SEC. 2139. PIGMENT RED 185.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following heading:


``      9902.32.26      Pigment Red 185     Free         No change        No change        On or before 12/
                         (CAS No. 51920-12-                                                 31/2001          ''.
                         8) (provided for
                         in subheading
                         3204.17.04)......

     SEC. 2140. PIGMENT RED 208.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.27      Pigment Red 208     Free         No change        No change        On or before 12/
                         (CAS No. 31778-10-                                                 31/2001          ''.
                         6) (provided for
                         in subheading
                         3204.17.04)......

     SEC. 2141. PIGMENT RED 188.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.28      Pigment Red 188     Free         No change        No change        On or before 12/
                         (CAS No. 61847-48-                                                 31/2001          ''.
                         1) (provided for
                         in subheading
                         3204.17.04)......

     SEC. 2142. 2,6-DIMETHYL-M-DIOXAN-4-OL ACETATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.94      2,6-Dimethyl-m-     Free         No change        No change        On or before 12/
                         dioxan-4-ol                                                        31/2001          ''.
                         acetate (CAS No.
                         000828-00-2)
                         (provided for in
                         subheading
                         2932.99.90)......

     SEC. 2143. B-BROMO-B-NITROSTYRENE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.92      b-Bromo-b-          Free         No change        No change        On or before 12/
                         nitrostyrene (CAS                                                  31/2001          ''.
                         No. 7166-19-0)
                         (provided for in
                         subheading
                         2904.90.47)......

     SEC. 2144. TEXTILE MACHINERY.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.84.43      Ink-jet textile     Free         No change        No change        On or before 12/
                         printing                                                           31/2001          ''.
                         machinery
                         (provided for in
                         subheading
                         8443.51.10)......

     SEC. 2145. DELTAMETHRIN.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.18      (S)-a-Cyano-3-      Free         No change        No change        On or before 12/
                         phenoxybenzyl                                                      31/2001          ''.
                         (1R,3R)-3-(2,2-
                         dibromovinyl)-2,2-
                         dimethylcycloprop
                         anecarboxylate
                         (deltamethrin) in
                         bulk or in forms
                         or packings for
                         retail sale (CAS
                         No. 52918-63-5)
                         (provided for in
                         subheading
                         2926.90.30 or
                         3808.10.25)......

     SEC. 2146. DICLOFOP-METHYL.

       Subchapter II of chapter 99 is amended by striking heading 
     9902.30.16 and inserting the following:

[[Page 1124]]



``      9902.30.16      Methyl 2-[4-(2,4-   Free         No change        No change        On or before 12/
                         dichlorophenoxy)p                                                  31/2001          ''.
                         henoxy]
                         propionate
                         (diclofop-methyl)
                         in bulk or in
                         forms or packages
                         for retail sale
                         containing no
                         other pesticide
                         products (CAS No.
                         51338-27-3)
                         (provided for in
                         subheading
                         2918.90.20 or
                         3808.30.15)......

     SEC. 2147. RESMETHRIN.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.29      ([5-(Phenylmethyl)- Free         No change        No change        On or before 12/
                         3-furanyl] methyl                                                  31/2001          ''.
                         2,2-dimethyl-3-(2-
                         methyl-1-
                         propenyl)
                         cyclopropanecarbo
                         xylate
                         (resmethrin) (CAS
                         No. 10453-86-8)
                         (provided for in
                         subheading
                         2932.19.10)......

     SEC. 2148. N-PHENYL-N'-1,2,3-THIADIAZOL-5-YLUREA.

       Subchapter II of chapter 99 is amended by striking heading 
     9902.30.17 and inserting the following:

``      9902.30.17      N-phenyl-N-1,2,3-   Free         No change        No change        On or before 12/
                         thiadiazol-5-                                                      31/2001          ''.
                         ylurea
                         (thidiazuron) in
                         bulk or in forms
                         or packages for
                         retail sale (CAS
                         No. 51707-55-2)
                         (provided for in
                         subheading
                         2934.90.15 or
                         3808.30.15)......

     SEC. 2149. (1R,3S)3[(1'RS)(1',2',2',2',-TETRABROMOETHYL)]-
                   2,2-DIMETHYLCYCLOPROPANECARBOXYLIC ACID, (S)-A-
                   CYANO-3-PHENOXYBENZYL ESTER.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.19      (1R,3S)3[(1RS)(1,2  Free         No change        No change        On or before 12/
                         ,2,2,-                                                             31/2001          ''.
                         Tetrabromoethyl)]-
                         2,2-
                         dimethylcycloprop
                         anecarboxylic
                         acid, (S)-a-cyano-
                         3-phenoxybenzyl
                         ester in bulk or
                         in forms or
                         packages for
                         retail sale (CAS
                         No. 66841-25-6)
                         (provided for in
                         subheading
                         2926.90.30 or
                         3808.10.25)......

     SEC. 2150. PIGMENT YELLOW 109.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.00      Pigment Yellow 109  Free         No change        No change        On or before 12/
                         (CAS No. 106276-                                                   31/2001          ''.
                         79-3) (provided
                         for in subheading
                         3204.17.04)......

     SEC. 2151. PIGMENT YELLOW 110.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.05      Pigment Yellow 110  Free         No change        No change        On or before 12/
                         (CAS No. 106276-                                                   31/2001          ''.
                         80-6) (provided
                         for in subheading
                         3204.17.04)......

     SEC. 2152. PIGMENT RED 177.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.30.58      Pigment Red 177     Free           No change      No change        On or before 12/
                         (CAS No. 4051-63-                                                  31/2001
                         2) (provided for
                         in subheading
                         3204.17.04)......
 

     SEC. 2153. TEXTILE PRINTING MACHINERY.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.84.20      Textile printing    Free         No change        No change        On or before 12/
                        machinery                                                          31/2001           ''.
                        (provided for in
                        subheading
                        8443.59.10)......

     SEC. 2154. SUBSTRATES OF SYNTHETIC QUARTZ OR SYNTHETIC FUSED 
                   SILICA.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.70.06      Substrates of       Free         No change        No change        On or before 12/
                        synthetic quartz                                                   31/2001
                        or synthetic
                        fused silica
                        imported in bulk
                        or in forms or
                        packages for
                        retail sale
                        (provided for in
                        subheading
                        7006.00.40)......
 

     SEC. 2155. 2-METHYL-4,6-BIS[(OCTYLTHIO)METHYL]PHENOL.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1125]]



``      9902.32.14      2-Methyl-4,6-       Free         No change        No change        On or before 12/
                         bis[(octylthio)                                                    31/2001
                         methyl]phenol
                         (CAS No. 110553-
                         27-0) (provided
                         for in subheading
                         2930.90.29)......
 

     SEC. 2156. 2-METHYL-4,6-BIS[(OCTYLTHIO)METHYL]PHENOL; 
                   EPOXIDIZED TRIGLYCERIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.38.12       2-Methyl-4,6-      Free         No change        No change        On or before 12/
                         bis[(octylthio)                                                    31/2001
                         methyl]phenol;
                         epoxidized
                         triglyceride
                         (provided for in
                         subheading
                         3812.30.60)......
 

     SEC. 2157. 4-[[4,6-BIS(OCTYLTHIO)-1,3,5-TRIAZIN-2-YL]AMINO] -
                   2,6-BIS(1,1-DIMETHYLETHYL)PHENOL.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.30       4-[[4,6-           Free         No change        No change        On or before 12/
                         Bis(octylthio)-                                                    31/2001
                         1,3,5-triazin-2-
                         yl]amino]-2,6-
                         bis(1,1-
                         dimethylethyl)phe
                         nol (CAS No. 991-
                         84-4) (provided
                         for in subheading
                         2933.69.60)......
 

     SEC. 2158. (2-BENZOTHIAZOLYLTHIO)BUTANEDIOIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.31      (2-                 Free         No change        No change        On or before 12/
                         Benzothiazolylthi                                                  31/2001          ''.
                         o)butane-dioic
                         acid (CAS No.
                         95154-01-1)
                         (provided for in
                         subheading
                         2934.20.40)......

     SEC. 2159. CALCIUM BIS[MONOETHYL(3,5-DI-TERT-BUTYL-4-
                   HYDROXYBENZYL) PHOSPHONATE].

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.16      Calcium             Free         No change        No change        On or before 12/
                         bis[monoethyl(3,5-                                                 31/2001
                         di-tert-butyl-4-
                         hydroxybenzyl)
                         phosphonate] (CAS
                         No. 65140-91-2)
                         (provided for in
                         subheading
                         2931.00.30)......
 

     SEC. 2160. 4-METHYL-G-OXO-BENZENEBUTANOIC ACID COMPOUNDED 
                   WITH 4-ETHYLMORPHOLINE (2:1).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.38.26      4-Methyl-g-oxo-     Free         No change        No change        On or before 12/
                         benzenebutanoic                                                    31/2001          ''.
                         acid compounded
                         with 4-
                         ethylmorpholine
                         (2:1) (CAS No.
                         171054-89-0)
                         (provided for in
                         subheading
                         3824.90.28)......

     SEC. 2161. WEAVING MACHINES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.84.46      Weaving machines    3.3%         No change        No change        On or before 12/
                         (looms),                                                           31/2001          ''.
                         shuttleless type,
                         for weaving
                         fabrics of a
                         width exceeding
                         30 cm but not
                         exceeding 4.9 m
                         (provided for in
                         subheading
                         8446.30.50),
                         entered without
                         off-loom or large
                         loom take-ups,
                         drop wires,
                         heddles, reeds,
                         harness frames,
                         or beams.........

     SEC. 2162. CERTAIN WEAVING MACHINES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.84.10      Power weaving       Free         No change        No change        On or before 12/    '
                         machines (looms),                                                  31/2001           '.
                         shuttle type, for
                         weaving fabrics
                         of a width
                         exceeding 30 cm
                         but not exceeding
                         4.9m (provided
                         for in subheading
                         8446.21.50), if
                         entered without
                         off-loom or large
                         loom take-ups,
                         drop wires,
                         heddles, reeds,
                         harness frames or
                         beams............

     SEC. 2163. DEMT.

       Subchapter II of chapter 99 is amended by striking heading 
     9902.32.12 and inserting the following:

``      9902.32.12      N,N-Diethyl-m-      Free         No change        No change        On or before 12/
                         toluidine (DEMT)                                                   31/2001          ''.
                         (CAS No. 91-67-8)
                         (provided for in
                         subheading
                         2921.43.80)......


[[Page 1126]]

     SEC. 2164. BENZENEPROPANAL, 4-(1,1-DIMETHYLETHYL)-ALPHA-
                   METHYL-.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.57      Benzenepropanal, 4- 6%           No change        No change        On or before 12/
                         (1,1-                                                              31/2001          ''.
                         dimethylethyl)-
                         alpha-methyl-
                         (CAS No. 80-54-6)
                         (provided for in
                         subheading
                         2912.29.60)......

     SEC. 2165. 2H-3,1-BENZOXAZIN-2-ONE, 6-CHLORO-4-(CYCLO-
                   PROPYLETHYNYL)-1,4-DIHYDRO-4-
                   (TRIFLUOROMETHYL)-.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.56      2H-3,1-Benzoxazin-  Free         No change        No change        On or before 12/
                         2-one, 6-chloro-4-                                                 31/2001          ''.
                         (cyclopropylethyn
                         yl)-1,4-dihydro-4-
                         (trifluoromethyl)-
                          (CAS No. 154598-
                         52-4) (provided
                         for in subheading
                         2934.90.30)......

     SEC. 2166. TEBUFENOZIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.32      N-tert-Butyl-N'-(4- Free         No change        No change        On or before 12/
                         ethylbenzoyl)-3,5-                                                 31/2001          ''.
                         Dimethylbenzoylhy
                         drazide
                         (Tebufenozide)
                         (CAS No. 112410-
                         23-8) (provided
                         for in subheading
                         2928.00.25)......

     SEC. 2167. HALOFENOZIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.36      Benzoic acid, 4-    Free         No change        No change        On or before 12/
                         chloro-2-benzoyl-                                                  31/2001          ''.
                         2-(1,1-
                         dimethylethyl)
                         hydrazide
                         (Halofenozide)
                         (CAS No. 112226-
                         61-6) (provided
                         for in subheading
                         2928.00.25)......

     SEC. 2168. CERTAIN ORGANIC PIGMENTS AND DYES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.07      Organic             Free         No change        No change        On or before 12/
                         luminescent                                                        31/2001          ''.
                         pigments and dyes
                         for security
                         applications
                         excluding
                         daylight
                         fluorescent
                         pigments and dyes
                         (provided for in
                         subheading
                         3204.90.00)......

     SEC. 2169. 4-HEXYLRESORCINOL.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.07      4-Hexylresorcinol   Free         No change        No change        On or before 12/
                         (CAS No. 136-77-                                                   31/2001          ''.
                         6) (provided for
                         in subheading
                         2907.29.90)......

     SEC. 2170. CERTAIN SENSITIZING DYES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.37      Polymethine photo-  Free         No change        No change        On or before 12/
                         sensitizing dyes                                                   31/2001          ''.
                         (provided for in
                         subheadings
                         2933.19.30,
                         2933.19.90,
                         2933.90.24,
                         2934.10.90,
                         2934.20.40,
                         2934.90.20, and
                         2934.90.90)......

     SEC. 2171. SKATING BOOTS FOR USE IN THE MANUFACTURE OF IN-
                   LINE ROLLER SKATES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.64.05      Boots for use in    Free         No change         No change         On or before 12/   '
                        the manufacture                                                      31/2001          '.
                        of in-line roller
                        skates (provided
                        for in
                        subheadings
                        6402.19.90,
                        6403.19.40,
                        6403.19.70, and
                        6404.11.90)......

     SEC. 2172. DIBUTYLNAPHTHALENESULFONIC ACID, SODIUM SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.34.02      Surface active      Free        No change        No change        On or before 12/
                         preparation                                                       31/2001           ''.
                         containing 30
                         percent or more
                         by weight of
                         dibutylnaphthalen
                         esulfonic acid,
                         sodium salt (CAS
                         No. 25638-17-9)
                         (provided for in
                         subheading
                         3402.90.30)......


[[Page 1127]]

     SEC. 2173. O-(6-CHLORO-3-PHENYL-4-PYRIDAZINYL)-S-
                   OCTYLCARBONOTHIOATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.38.08      O-(6-Chloro-3-      Free         No change        No change        On or before 12/
                         phenyl-4-                                                          31/2001          ''.
                         pyridazinyl)-S-
                         octyl-
                         carbonothioate
                         (CAS No. 55512-33-
                         9) (provided for
                         in subheading
                         3808.30.15)......

     SEC. 2174. 4-CYCLOPROPYL-6-METHYL-2-PHENYLAMINOPY-RIMIDINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.50      4-Cyclopropyl-6-    Free         No change        No change        On or before 12/
                         methyl-2-                                                          31/2001          ''.
                         phenylaminopyrimi
                         dine (CAS No.
                         121552-61-2)
                         (provided for in
                         subheading
                         2933.59.15)......

     SEC. 2175. O,O-DIMETHYL-S-[5-METHOXY-2-OXO-1,3,4-THIADI-AZOL-
                   3(2H)-YL-METHYL]DITHIOPHOSPHATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.51      O,O-Dimethyl-S-[5-  Free         No change        No change        On or before 12/
                         methoxy-2-oxo-                                                     31/2001          ''.
                         1,3,4-thiadiazol-
                         3(2H)-yl-
                         methyl]dithiophos
                         phate (CAS No.
                         950-37-8)
                         (provided for in
                         subheading
                         2934.90.90)......

     SEC. 2176. ETHYL [2-(4-PHENOXY-PHENOXY) ETHYL] CARBAMATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.52      Ethyl [2-(4-        Free         No change        No change        On or before 12/
                         phenoxyphenoxy)-                                                   31/2001          ''.
                         ethyl]carbamate
                         (CAS No. 79127-80-
                         3) (provided for
                         in subheading
                         2924.10.80)......

     SEC. 2177. [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-
                   CHLORO-PHENOXY)-2-CHLOROPHENYL]-4-METHYL-1,3-
                   DIOXOLAN-2-YLMETHYL]-1H-1,2,4-TRIAZOLE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.74      [(2S,4R)/(2R,4S)]/  Free         No change        No change        On or before 12/
                         [(2R,4R)/                                                          31/2001          ''.
                         (2S,4S)]-1-[2-[4-
                         (4-Chloro-
                         phenoxy)-2-
                         chlorophenyl]-4-
                         methyl-1,3-
                         dioxolan-2-yl-
                         methyl]-1H-1,2,4-
                         triazole (CAS No.
                         119446-68-3)
                         (provided for in
                         subheading
                         2934.90.12)......

     SEC. 2178. 2,4-DICHLORO-3,5-DINITROBENZOTRIFLUORIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.12      2,4-Dichloro-3,5-   Free         No change        No change        On or before 12/
                         dinitrobenzotrifl                                                  31/2001          ''.
                         uoride (CAS No.
                         29091-09-6)
                         (provided for in
                         subheading
                         2910.90.20)......

     SEC. 2179. 2-CHLORO-N-[2,6-DINITRO-4-(TRIFLUOROMETHYL) 
                   PHENYL]-N-ETHYL-6-FLUOROBENZENEMETHANAMINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.15      2-Chloro-N-[2,6-    Free         No change        No change        On or before 12/
                         dinitro-4-                                                         31/2001          ''.
                         (trifluoromethyl)
                         phenyl]-N-ethyl-6-
                         fluorobenzenemeth
                         anamine (CAS No.
                         62924-70-3)
                         (provided for in
                         subheading
                         2921.49.45)......

     SEC. 2180. CHLOROACETONE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.11      Chloroacetone (CAS  Free         No change        No change        On or before 12/
                         No. 78-95-5)                                                       31/2001          ''.
                         (provided for in
                         subheading
                         2914.19.00)......

     SEC. 2181. ACETIC ACID, [(5-CHLORO-8-QUINOLINYL)OXY]-, 1-
                   METHYLHEXYL ESTER.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.60      Acetic acid, [(5-   Free         No change        No change        On or before
                         chloro-8-                                                         12/31/2001        ''.
                         quinolinyl)oxy]-,
                         1-methylhexyl
                         ester (CAS No.
                         99607-70-2)
                         (provided for in
                         subheading
                         2933.40.30)......

     SEC. 2182. PROPANOIC ACID, 2-[4-[(5-CHLORO-3-FLUORO-2-
                   PYRIDINYL)OXY]PHENOXY]-, 2-PROPYNYL ESTER.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1128]]



``      9902.29.19      Propanoic acid, 2-  Free         No change        No change        On or before 12/
                         [4-[(5-chloro-3-                                                   31/2001          ''.
                         fluoro-2-
                         pyridinyl)oxy]phe
                         noxy]-, 2-
                         propynyl ester
                         (CAS No. 105512-
                         06-9) (provided
                         for in subheading
                         2933.39.25)......

     SEC. 2183. MUCOCHLORIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.18      Mucochloric acid    Free         No change        No change        On or before 12/
                         (CAS No. 87-56-9)                                                  31/2001          ''.
                         (provided for in
                         subheading
                         2918.30.90)......

     SEC. 2184. CERTAIN ROCKET ENGINES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.84.12      Dual thrust         Free         No change        No change        On or before 12/
                         chamber rocket                                                     31/2001          ''.
                         engines each
                         having a maximum
                         static sea level
                         thrust exceeding
                         3,550 kN and
                         nozzle exit
                         diameter
                         exceeding 127 cm
                         (provided for in
                         subheading
                         8412.10.00)......

     SEC. 2185. PIGMENT RED 144.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.11      Pigment Red 144     Free         No change        No change        On or before 12/
                         (CAS No. 5280-78-                                                  31/2001          ''.
                         4) (provided for
                         in subheading
                         3204.17.04)......

     SEC. 2186. PIGMENT ORANGE 64.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.09      Pigment Orange 64   Free         No change        No change        On or before 12/
                         (CAS No. 72102-84-                                                 31/2001          ''.
                         2) (provided for
                         in subheading
                         3204.17.60)......

     SEC. 2187. PIGMENT YELLOW 95.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.08      Pigment Yellow 95   Free         No change        No change        On or before 12/
                         (CAS No. 5280-80-                                                  31/2001          ''.
                         8) (provided for
                         in subheading
                         3204.17.04)......

     SEC. 2188. PIGMENT YELLOW 93.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.13      Pigment Yellow 93   Free         No change        No change        On or before 12/
                         (CAS No. 5580-57-                                                  31/2001
                         4) (provided for
                         in subheading
                         3204.17.04)......
 

     SEC. 2189. (S)-N-[[5-[2-(2-AMINO-4,6,7,8-TETRAHYDRO-4-OXO-1H-
                   PYRIMIDO[5,4-B] [1,4]THIAZIN-6-YL)ETHYL]-2-
                   THIENYL]CARBONYL]-L-GLUTAMIC ACID, DIETHYL 
                   ESTER.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.33      (S)-N-[[5-[2-(2-    Free         No change        No change        On or before 12/
                         Amino-4,6,7,8-                                                     31/2001          ''.
                         tetrahydro-4-oxo-
                         1H-pyrimido[5,4-
                         b] [1,4]thiazin-6-
                         yl)ethyl]-2-
                         thienyl]carbonyl]-
                         L-glutamic acid,
                         diethyl ester
                         (CAS No. 177575-
                         19-8) (provided
                         for in subheading
                         2934.90.90)......

     SEC. 2190. 4-CHLOROPYRIDINE HYDROCHLORIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.34      4-Chloropyridine    Free         No change        No change        On or before 12/
                         hydrochloride                                                      31/2001          ''.
                         (CAS No. 7379-35-
                         3) (provided for
                         in subheading
                         2933.39.61)......

     SEC. 2191. 4-PHENOXYPYRIDINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.35      4-Phenoxypyridine   Free         No change        No change        On or before 12/
                         (CAS No. 4783-86-                                                  31/2001          ''.
                         2) (provided for
                         in subheading
                         2933.39.61)......

     SEC. 2192. (3S)-2,2-DIMETHYL-3-THIOMORPHOLINE CARBOXYLIC 
                   ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1129]]



``      9902.32.36      (3S)-2,2-Dimethyl-  Free         No Change        No Change        On or before 12/   ''
                         3-thiomorpholine                                                   31/2001            .
                         carboxylic acid
                         (CAS No. 84915-43-
                         5) (provided for
                         in subheading
                         2934.90.90)......

     SEC. 2193. 2-AMINO-5-BROMO-6-METHYL-4-(1H)-QUINAZOLI-NONE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.37      2-Amino-5-bromo-6-  Free         No Change        No Change        On or before 12/   ''
                         methyl-4-(1H)-                                                     31/2001            .
                         quinazolinone
                         (CAS No. 147149-
                         89-1) (provided
                         for in subheading
                         2933.59.70)......

     SEC. 2194. 2-AMINO-6-METHYL-5-(4-PYRIDINYLTHIO)-4(1H)-
                   QUINAZOLINONE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.38      2-Amino-6-methyl-5- Free         No Change        No Change        On or before 12/   ''
                         (4-pyridinylthio)-                                                 31/2001            .
                         4(1H)-
                         quinazolinone
                         (CAS No. 147149-
                         76-6) (provided
                         for in subheading
                         2933.59.70)......

     SEC. 2195. (S)-N-[[5-[2-(2-AMINO-4,6,7,8-TETRAHYDRO-4-OXO-1H-
                   PYRIMIDO[5,4-B][1,4]THIAZIN-6-YL)ETHYL]-2-
                   THIENYL]CARBONYL]-L-GLUTAMIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.39      (S)-N-[[5-[2-(2-    Free         No change        No change        On or before 12/
                         Amino-4,6,7,8-                                                     31/2001          ''.
                         tetrahydro-4-oxo-
                         1H-pyrimido[5,4-
                         b][1,4]thiazin-6-
                         yl)ethyl]-2-
                         thienyl]carbonyl]-
                         L-glutamic acid
                         (CAS No. 177575-
                         17-6) (provided
                         for in subheading
                         2934.90.90)......

     SEC. 2196. 2-AMINO-6-METHYL-5-(4-PYRIDINYLTHIO)-4-(1H)-
                   QUINAZOLINONE DIHYDROCHLORIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.40      2-Amino-6-methyl-5- Free         No change        No change        On or before 12/
                         (4-pyridinylthio)-                                                 31/2001          ''.
                         4-(1H)-
                         quinazolinone
                         dihydrochloride
                         (CAS No. 152946-
                         68-4) (provided
                         for in subheading
                         2933.59.70)......

     SEC. 2197. 3-(ACETYLOXY)-2-METHYLBENZOIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.41      3-(Acetyloxy)-2-    Free         No change        No change        On or before 12/
                         methylbenzoic                                                      31/2001          ''.
                         acid (CAS No.
                         168899-58-9)
                         (provided for in
                         subheading
                         2918.29.65)......

     SEC. 2198. [R-(R*,R*)]-1,2,3,4-BUTANETETROL-1,4-DIMETH- 
                   ANESULFONATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.32.42      [R-(R*,R*)]-        Free         No change        No change        On or before 12/
                         1,2,3,4-                                                           31/2001          ''.
                         Butanetetrol-1,4-
                         dimethanesulfonat
                         e (CAS No. 1947-
                         62-2) (provided
                         for in subheading
                         2905.49.50)......

     SEC. 2199. 9-[2- [[BIS[(PIVALOYLOXY) METHOXY]PHOS- 
                   PHINYL]METHOXY] ETHYL]ADENINE (ALSO KNOWN AS 
                   ADEFOVIR DIPIVOXIL).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.01      9-[2-               Free         No change        No change        On or before 12/
                         [[Bis[(pivaloylox                                                  31/2001          ''.
                         y)-
                         methoxy]phosphiny
                         l]- methoxy]
                         ethyl]adenine
                         (also known as
                         Adefovir
                         Dipivoxil) (CAS
                         No. 142340-99-6)
                         (provided for in
                         subheading
                         2933.59.95)......

     SEC. 2200. 9-[2-(R)-[[BIS[(ISOPROPOXYCARBONYL)OXY- METHOXY]-
                   PHOSPHINOYL]METHOXY]-PROPYL]ADENINE FUMARATE 
                   (1:1).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.02      9-[2-(R)-           Free         No change        No change        On or before 12/
                         [[Bis[(isopropoxy-                                                 31/2001          ''.
                          carbonyl)oxymeth
                         oxy]-
                         phosphinoyl]metho
                         xy]-
                         propyl]adenine
                         fumarate (1:1)
                         (CAS No. 202138-
                         50-9) (provided
                         for in subheading
                         2933.59.95)......

     SEC. 2201. (R)-9-(2-PHOSPHONOMETHOXYPROPYL)ADE- NINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1130]]



``      9902.33.03      (R)-9-(2-Phosphono- Free         No change        No change        On or before 12/
                          methoxypropyl)ad                                                  31/2001          ''.
                         enine (CAS No.
                         147127-20-6)
                         (provided for in
                         subheading
                         2933.59.95)......

     SEC. 2202. (R)-1,3-DIOXOLAN-2-ONE, 4-METHYL-.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.04      (R)-1,3-Dioxolan-2- Free         No change        No change        On or before 12/
                         one, 4-methyl-                                                     31/2001          ''.
                         (CAS No. 16606-55-
                         6) (provided for
                         in subheading
                         2920.90.50)......

     SEC. 2203. 9-(2-HYDROXYETHYL)ADENINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.05      9-(2-               Free         No change        No change        On or before 12/
                         Hydroxyethyl)aden                                                  31/2001          ''.
                         ine (CAS No. 707-
                         99-3) (provided
                         for in subheading
                         2933.59.95)......

     SEC. 2204. (R)-9H-PURINE-9-ETHANOL, 6-AMINO-A-METHYL-.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.06      (R)-9H-Purine-9-    Free         No change        No change        On or before 12/
                         ethanol, 6-amino-                                                  31/2001          ''.
                         a-methyl- (CAS
                         No. 14047-28-0)
                         (provided for in
                         subheading
                         2933.59.95)......

     SEC. 2205. CHLOROMETHYL-2-PROPYL CARBONATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.07      Chloromethyl-2-     Free         No change        No change        On or before 12/
                         propyl carbonate                                                   31/2001          ''.
                         (CAS No. 35180-01-
                         9) (provided for
                         in subheading
                         2920.90.50)......

     SEC. 2206. (R)-1,2-PROPANEDIOL, 3-CHLORO-.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.08      (R)-1,2-            Free         No change        No change        On or before 12/
                         Propanediol, 3-                                                    31/2001          ''.
                         chloro- (CAS No.
                         57090-45-6)
                         (provided for in
                         subheading
                         2905.50.60)......

     SEC. 2207. OXIRANE, (S)-((TRIPHENYLMETHOXY)METHYL)-.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.09      Oxirane, (S)-       Free         No change        No change        On or before 12/
                         ((triphenylmethox                                                  31/2001          ''.
                         y)methyl)- (CAS
                         No. 129940-50-7)
                         (provided for in
                         subheading
                         2910.90.20)......

     SEC. 2208. CHLOROMETHYL PIVALATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.10      Chloromethyl        Free         No change        No change        On or before 12/
                         pivalate (CAS No.                                                  31/2001          ''.
                         18997-19-8)
                         (provided for in
                         subheading
                         2915.90.50)......

     SEC. 2209. DIETHYL (((P-TOLUENESULFONYL)OXY)- 
                   METHYL)PHOSPHONATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.11      Diethyl (((p-       Free         No change        No change        On or before 12/
                         toluenesulfonyl)o                                                  31/2001          ''.
                         xy)-
                         methyl)phosphonat
                         e (CAS No. 31618-
                         90-3) (provided
                         for in subheading
                         2931.00.30)......

     SEC. 2210. BETA HYDROXYALKYLAMIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.38.25      N,N,N',N'-Tetrakis- Free         No change        No change        On or before 12/    '
                         (2-hydroxyethyl)-                                                  31/2001           '.
                         hexane diamide
                         (beta
                         hydroxyalkylamide
                         ) (CAS No. 6334-
                         25-4) (provided
                         for in subheading
                         3824.90.90)......

     SEC. 2211. GRILAMID TR90.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1131]]



``     9902.39.12      Dodecanedioic       Free         No change         No change         On or before 12/
                        acid, polymer                                                        31/2001          ''
                        with 4,41-                                                                             .
                        methylenebis (2-
                        methylcyclohexana
                        mine) (CAS No.
                        163800-66-6)
                        (provided for in
                        subheading
                        3908.90.70)......

     SEC. 2212. IN-W4280.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.32.51      2,4-Dichloro-5-     Free         No change         No change         On or before 12/
                        hydroxy-                                                             31/2001          ''
                        phenylhydrazine                                                                        .
                        (CAS No. 39807-21-
                        1) (provided for
                        in subheading
                        2928.00.25)......

     SEC. 2213. KL540.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.32.54      Methyl 4-           Free         No change         No change         On or before 12/
                        trifluoromethoxyp                                                    31/2001          ''
                        henyl-N-                                                                               .
                        (chlorocarbonyl)
                        carbamate (CAS
                        No. 173903-15-6)
                        (provided for in
                        subheading
                        2924.29.70)......

     SEC. 2214. METHYL THIOGLYCOLATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.32.55      Methyl              Free         No change         No change         On or before 12/
                        thioglycolate                                                        31/2001          ''
                        (CAS No. 2365-48-                                                                      .
                        2) (provided for
                        in subheading
                        2930.90.90)......

     SEC. 2215. DPX-E6758.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.33.59      Phenyl (4,6-        Free         No change         No change         On or before 12/
                        dimethoxy-                                                           31/2001          ''
                        pyrimidin-2-yl)                                                                        .
                        carbamate (CAS
                        No. 89392-03-0)
                        (provided for in
                        subheading
                        2933.59.70)......

     SEC. 2216. ETHYLENE, TETRAFLUORO COPOLYMER WITH ETHYLENE 
                   (ETFE).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.29.68      Ethylene-           3.3%         No change         No change         On or before 12/
                        tetrafluoro                                                          31/2001          ''
                        ethylene                                                                               .
                        copolymer (ETFE)
                        (provided for in
                        subheading
                        3904.69.50)......

     SEC. 2217. 3-MERCAPTO-D-VALINE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.32.66      3-Mercapto-D-       Free         No change         No change         On or before 12/  ''
                        valine (CAS No.                                                      31/2001           .
                        52-67-5)
                        (provided for in
                        subheading
                        2930.90.45)......

     SEC. 2218. P-ETHYLPHENOL.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.31.21         p-Ethylphenol (CAS  Free         No change        No change        On or before 12/
                           No. 123-07-9)                                                      31/2001         ''
                           (provided for in                                                                    .
                           subheading
                           2907.19.20)......

     SEC. 2219. PANTERA.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.09       (+/-)-              Free         No change        No change        On or before 12/
                          Tetrahydrofurfury                                                  31/2001          ''
                          l (R)-2[4-(6-                                                                        .
                          chloroquinoxalin-
                          2-yloxy)phenoxy]
                          propanoate (CAS
                          No. 119738-06-6)
                          (provided for in
                          subheading
                          2909.30.40) and
                          any mixtures
                          containing such
                          compound
                          (provided for in
                          subheading
                          3808.30).........

     SEC. 2220. P-NITROBENZOIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.32.70      p-Nitrobenzoic      Free         No change         No change         On or before 12/
                        acid (CAS No. 62-                                                    31/2001          ''
                        23-7) (provided                                                                        .
                        for in subheading
                        2916.39.45)......

     SEC. 2221. P-TOLUENESULFONAMIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

[[Page 1132]]



``     9902.32.95      p-                  Free         No change         No change         On or before 12/
                        Toluenesulfonamid                                                    31/2001
                        e (CAS No. 70-55-
                        3) (provided for
                        in subheading
                        2935.00.95)......
 

     SEC. 2222. POLYMERS OF TETRAFLUOROETHYLENE, 
                   HEXAFLUOROPROPYLENE, AND VINYLIDENE FLUORIDE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.39.04      Polymers of         Free         No change         No change         On or before 12/
                        tetrafluoroethyle                                                    31/2001          ''
                        ne (provided for                                                                       .
                        in subheading
                        3904.61.00),
                        hexafluoropropyle
                        ne and vinylidene
                        fluoride
                        (provided for in
                        subheading
                        3904.69.50)......

     SEC. 2223. METHYL 2-[[[[[4-(DIMETHYLAMINO)-6-(2,2,2- TRI- 
                   FLUOROETHOXY)-1,3,5-TRIAZIN-2-YL]AMINO]- 
                   CARBONYL]AMINO]SULFONYL]-3-METHYL- BENZOATE 
                   (TRIFLUSULFURON METHYL).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.38.11       Methyl 2-[[[[[4-    Free         No change        No change        On or before 12/
                          (dimethylamino)-6-                                                 31/2001          ''
                          (2,2,2-                                                                              .
                          trifluoroethoxy)-
                          1,3,5-triazin-2-
                          yl]amino]carbonyl
                          ]-
                          amino]sulfonyl]-3-
                          methylbenzoate
                          (triflusulfuron
                          methyl) in
                          mixture with
                          application
                          adjuvants. (CAS
                          No. 126535-15-7)
                          (provided for in
                          subheading
                          3808.30.15)......

     SEC. 2224. CERTAIN MANUFACTURING EQUIPMENT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new headings:

``      9902.84.79      Calendaring or      Free         No change        No change        On or before 12/
                         other rolling                                                      31/2001
                         machines for
                         rubber to be used
                         in the production
                         of radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8420.10.90,
                         8420.91.90 or
                         8420.99.90) and
                         material holding
                         devices or
                         similar
                         attachments
                         thereto..........
        9902.84.81      Shearing machines   Free         No change        No change        On or before 12/
                         to be used to cut                                                  31/2001
                         metallic tissue
                         for use in the
                         production of
                         radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8462.31.00 or
                         subheading
                         8466.94.85)......
        9902.84.83      Machine tools for   Free         No change        No change        On or before 12/
                         working wire of                                                    31/2001
                         iron or steel to
                         be used in the
                         production of
                         radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8463.30.00 or
                         8466.94.85)......
        9902.84.85      Extruders to be     Free         No change        No change        On or before 12/
                         used in the                                                        31/2001
                         production of
                         radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8477.20.00 or
                         8477.90.85)......

[[Page 1133]]

 
        9902.84.87      Machinery for       Free         No change        No change        On or before 12/
                         molding,                                                           31/2001
                         retreading, or
                         otherwise forming
                         uncured,
                         unvulcanized
                         rubber to be used
                         in the production
                         of radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8477.51.00 or
                         8477.90.85)......
        9902.84.89      Sector mold press   Free         No change        No change        On or before 12/
                         machines to be                                                     31/2001
                         used in the
                         production of
                         radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8477.51.00 or
                         subheading
                         8477.90.85)......
        9902.84.91      Sawing machines to  Free         No change        No change        On or before 12/    '
                         be used in the                                                     31/2001           '.
                         production of
                         radial tires
                         designed for off-
                         the-highway use
                         and with a rim
                         measuring 86 cm
                         or more in
                         diameter
                         (provided for in
                         subheading
                         4011.20.10 or
                         subheading
                         4011.91.50 or
                         subheading
                         4011.99.40),
                         numerically
                         controlled, or
                         parts thereof
                         (provided for in
                         subheading
                         8465.91.00 or
                         subheading
                         8466.92.50)......

     SEC. 2225. TEXTURED ROLLED GLASS SHEETS.

       Subchapter II of chapter 99 is amended by striking heading 
     9902.70.03 and inserting the following:

``     9902.70.03      Rolled glass in     Free         No change         No change         On or before 12/
                        sheets, yellow-                                                      31/2001          ''
                        green in color,                                                                        .
                        not finished or
                        edged-worked,
                        textured on one
                        surface, suitable
                        for incorporation
                        in cooking
                        stoves, ranges,
                        or ovens
                        described in
                        subheadings
                        8516.60.40
                        (provided for in
                        subheading
                        7003.12.00 or
                        7003.19.00)......

     SEC. 2226. CERTAIN HIV DRUG SUBSTANCES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new headings:

``      9902.32.43      (S)-N-tert-Butyl-   Free        No change        No change        On or before  6/
                         1,2,3,4-                                                          30/99
                         tetrahydro-3-
                         isoquinoline
                         carboxamide
                         hydrochloride
                         salt (CAS No.
                         149057-17-0)(prov
                         ided for in
                         subheading
                         2933.40.60)......
        9902.32.44      (S)-N-tert-Butyl-   Free        No change        No change        On or before  6/
                         1,2,3,4-                                                          30/99
                         tetrahydro-3-
                         isoquinoline
                         carboxamide
                         sulfate salt (CAS
                         No. 186537-30-
                         4)(provided for
                         in subheading
                         2933.40.60)......
        9902.32.45      (3S)-1,2,3,4-       Free        No change        No change        On or before  6/
                         Tetrahydroisoquin                                                 30/99             ''.
                         oline-3-
                         carboxylic acid
                         (CAS No. 74163-81-
                         8)(provided for
                         in subheading
                         2933.40.60)......

     SEC. 2227. RIMSULFURON.

       (a) In General.--Subchapter II of chapter 99 is amended by 
     inserting in numerical sequence the following new heading:

``      9902.33.60      N-[[(4,6-Dimethoxy- 7.3%        No change        No change        On or before  12/
                         2-                                                                31/99             ''.
                         pyrimidinyl)amino
                         ] carbonyl]-3-
                         (ethylsulfonyl)-2-
                         pyridinesulfonami
                         de (CAS No.
                         122931-48-0)
                         (provided for in
                         subheading
                         2935.00.75)......

       (b) Rate for 2000.--Heading 9902.33.60, as added by 
     subsection (a), is amended--

[[Page 1134]]

       (1) by striking ``7.3%'' and inserting ``Free''; and
       (2) by striking ``12/31/99'' and inserting ``12/31/2000''.
       (c) Effective Date for Adjustment.--The amendments made by 
     subsection (b) apply to goods entered, or withdrawn from 
     warehouse for consumption, after December 31, 1999.

     SEC. 2228. CARBAMIC ACID (V-9069).

       (a) In General.--Subchapter II of chapter 99 is amended by 
     inserting in numerical sequence the following new heading:

``      9902.33.61      ((3-                8.3%         No change        No change        On or before 12/
                         ((Dimethylamino)c                                                  31/99
                         arbonyl)-2-
                         pyridinyl)sulfony
                         l) carbamic acid,
                         phenyl ester (CAS
                         No. 112006-94-7)
                         (provided for in
                         subheading
                         2935.00.75)......
 

       (b) Rate Adjustment for 2000.--Heading 9902.33.61, as added 
     by subsection (a), is amended--
       (1) by striking ``8.3%'' and inserting ``7.6%''; and
       (2) by striking ``12/31/99'' and inserting ``12/31/2000''.
       (c) Effective Date for Adjustment.--The amendments made by 
     subsection (b) apply to goods entered, or withdrawn from 
     warehouse for consumption, after December 31, 1999.

     SEC. 2229. DPX-E9260.

       (a) In General.--Subchapter II of chapter 99 is amended by 
     inserting in numerical sequence the following new heading:

``     9902.33.63      3-(Ethylsulfonyl)-  6%           No change         No change         On or before 12/
                        2-                                                                   31/99
                        pyridinesulfonami
                        de (CAS No.
                        117671-01-9)
                        (provided for in
                        subheading
                        2935.00.75)......
 

       (b) Rate Adjustment.--Heading 9902.33.63, as added by 
     subsection (a), is amended--
       (1) by striking ``6%'' and inserting ``5.3%''; and
       (2) by striking ``12/31/99'' and inserting ``12/31/2000''.
       (c) Effective Dates.--
       (1) In general.--The amendment made by subsection (a) 
     applies to goods entered, or withdrawn from warehouse for 
     consumption, on or after the 15th day after the date of 
     enactment of this Act.
       (2) Adjustment.--The amendments made by subsection (b) 
     apply to goods entered, or withdrawn from warehouse for 
     consumption, after December 31, 1999.

     SEC. 2230. ZIRAM.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``   9902.38.28    Ziram (provided   Free              No change         No change         On or before 12/   ''
                    for in                                                                  31/2001            .
                    subheading
                    3808.20.28)....

     SEC. 2231. FERROBORON.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``   9902.72.02    Ferroboron to be  Free              No change         No change         On or before 12/
                    used for                                                                31/2001
                    manufacturing
                    amorphous metal
                    strip (provided
                    for in
                    subheading
                    7202.99.50)....
 

     SEC. 2232. ACETIC ACID, [[2-CHLORO-4-FLUORO-5-[(TETRA- HYDRO-
                   3-OXO-1H,3H-[1,3,4]THIADIAZOLO[3,4-A]PYRIDAZIN-
                   1-YLIDENE)AMINO]PHENYL]- THIO]-, METHYL ESTER.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``     9902.29.66      Acetic acid, [[2-   Free         No change         No change         On or before 12/
                        chloro-4-fluoro-5-                                                   31/2001
                        [(tetrahydro-3-
                        oxo-1H,3H-
                        [1,3,4]thiadiazol
                        o- [3,4-
                        a]pyridazin-1-
                        ylidene)amino]phe
                        nyl]thio]-,
                        methyl ester (CAS
                        No. 117337-19-6)
                        (provided for in
                        subheading
                        2934.90.15)......
 

     SEC. 2233. PENTYL[2-CHLORO-5-(CYCLOHEX-1-ENE-1,2-DI- 
                   CARBOXIMIDO)-4-FLUOROPHENOXY]ACETATE.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.66      Pentyl[2-chloro-5-  Free         No change        No change        On or before 12/
                         (cyclohex-1-ene-                                                   31/2001
                         1,2-
                         dicarboximido)-4-
                         fluorophenoxy]ace
                         tate (CAS No.
                         87546-18-7)
                         (provided for in
                         subheading
                         2925.19.40)......
 

     SEC. 2234. BENTAZON (3-ISOPROPYL)-1H-2,1,3-BENZO-THIADIAZIN-
                   4(3H)-ONE-2,2-DIOXIDE).

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.29.67      Bentazon (3-        5.0%         No change        No change        On or before 12/
                         Isopropyl)-1H-                                                     31/2001          ''.
                         2,1,3-
                         benzothiadiazin-
                         4(3H)-one-2,2-
                         dioxide) (CAS No.
                         50723-80-3)
                         (provided for in
                         subheading
                         2934.90.11)......


[[Page 1135]]

     SEC. 2235. CERTAIN HIGH-PERFORMANCE LOUDSPEAKERS NOT MOUNTED 
                   IN THEIR ENCLOSURES.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.85.20      Loudspeakers not    Free         No change        No change        On or before 12/
                         mounted in their                                                   31/2001          ''.
                         enclosures
                         (provided for in
                         subheading
                         8518.29.80), the
                         foregoing which
                         meet a
                         performance
                         standard of not
                         more than 1.5 dB
                         for the average
                         level of 3 or
                         more octave
                         bands, when such
                         loudspeakers are
                         tested in a
                         reverberant
                         chamber..........

     SEC. 2236. PARTS FOR USE IN THE MANUFACTURE OF CERTAIN HIGH-
                   PERFORMANCE LOUDSPEAKERS.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.85.21      Parts for use in    Free         No change        No change        On or before 12/
                         the manufacture                                                    31/2001          ''.
                         of loudspeakers
                         of a type
                         described in
                         subheading
                         9902.85.20
                         (provided for in
                         subheading
                         8518.90.80)......

     SEC. 2237. 5-TERT-BUTYL-ISOPHTHALIC ACID.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``    9902.33.12        5-tert-Butyl-iso- Free             No change        No change        On or before 12/
                         phthalic acid                                                        31/2001         ''
                         (CAS No. 2359-                                                                        .
                         09-3) (provided
                         for in
                         subheading
                         2917.39.70)....

     SEC. 2238. CERTAIN POLYMER.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:
         

``     9902.39.07      A polymer of the    Free         No change         No change         On or before 12/
                        following                                                            31/2001
                        monomers: 1,4-
                        benzenedicarboxyl
                        ic acid, dimethyl
                        ester (dimethyl
                        terephthalate)
                        (CAS No. 120-61-
                        6); 1,3-
                        Benzenedicarboxyl
                        ic acid, 5-sulfo-
                        , 1,3-dimethyl
                        ester, sodium
                        salt (sodium
                        dimethyl
                        sulfoisophthalate
                        ) (CAS No. 3965-
                        55-7); 1,2-
                        ethanediol
                        (ethylene glycol)
                        (CAS No. 107-21-
                        1); and 1,2-
                        propanediol
                        (propylene
                        glycol) (CAS No.
                        57-55-6); with
                        terminal units
                        from 2-(2-
                        hydroxyethoxy)
                        ethanesulfonic
                        acid, sodium salt
                        (CAS No. 53211-00-
                        0) (provided for
                        in subheading
                        3907.99.00)......
 

     SEC. 2239. 2-(4-CHLOROPHENYL)-3-ETHYL-2, 5-DIHYDRO-5-OXO-4-
                   PYRIDAZINE CARBOXYLIC ACID, POTASSIUM SALT.

       Subchapter II of chapter 99 is amended by inserting in 
     numerical sequence the following new heading:

``      9902.33.16      2-(4-Chlorophenyl)- Free         No change        No change        On or before 12/
                         3-ethyl-2, 5-                                                      31/2001
                         dihydro-5-oxo-4-
                         pyridazine
                         carboxylic acid,
                         potassium salt
                         (CAS No. 82697-71-
                         0) (provided for
                         in subheading
                         2933.90.79)......
 

                       CHAPTER 3--EFFECTIVE DATE

     SEC. 2301. EFFECTIVE DATE.

       Except as otherwise provided in this subtitle, the 
     amendments made by this subtitle apply to goods entered, or 
     withdrawn from warehouse for consumption, after the date that 
     is 15 days after the date of enactment of this Act.
                   Subtitle B--Other Trade Provisions

     SEC. 2401. EXTENSION OF UNITED STATES INSULAR POSSESSION 
                   PROGRAM.

       (a) In General.--The additional U.S. notes to chapter 71 of 
     the Harmonized Tariff Schedule of the United States are 
     amended by adding at the end the following new note:
       ``3.(a) Notwithstanding any provision in additional U.S. 
     note 5 to chapter 91, any article of jewelry provided for in 
     heading 7113 which is the product of the Virgin Islands, 
     Guam, or American Samoa (including any such article which 
     contains any foreign component) shall be eligible for the 
     benefits provided in paragraph (h) of additional U.S. note 5 
     to chapter 91, subject to the provisions and limitations of 
     that note and of paragraphs (b), (c), and (d) of this note.
       ``(b) Nothing in this note shall result in an increase or a 
     decrease in the aggregate amount referred to in paragraph 
     (h)(iii) of, or the quantitative limitation otherwise 
     established pursuant to the requirements of, additional U.S. 
     note 5 to chapter 91.
       ``(c) Nothing in this note shall be construed to permit a 
     reduction in the amount available to watch producers under 
     paragraph (h)(iv) of additional U.S. note 5 to chapter 91.
       ``(d) The Secretary of Commerce and the Secretary of the 
     Interior shall issue such regulations, not inconsistent with 
     the provisions of this note and additional U.S. note 5 to 
     chapter 91, as the Secretaries determine necessary to carry 
     out their respective duties under this note. Such regulations 
     shall not be inconsistent with substantial transformation 
     requirements but may define the circumstances under which 
     articles of jewelry shall be deemed to be `units' for 
     purposes of the benefits, provisions, and limitations of 
     additional U.S. note 5 to chapter 91.
       ``(e) Notwithstanding any other provision of law, during 
     the 2-year period beginning 45 days after the date of the 
     enactment of this note, any article of jewelry provided for 
     in heading 7113 that is assembled in the Virgin Islands, 
     Guam, or American Samoa shall be

[[Page 1136]]

     treated as a product of the Virgin Islands, Guam, or American 
     Samoa for purposes of this note and General Note 3(a)(iv) of 
     this Schedule.''.
       (b) Conforming Amendment.--General Note 3(a)(iv)(A) of the 
     Harmonized Tariff Schedule of the United States is amended by 
     inserting ``and additional U.S. note 3(e) of chapter 71,'' 
     after ``Tax Reform Act of 1986,''.
       (c) Effective Date.--The amendments made by this section 
     take effect 45 days after the date of the enactment of this 
     Act.

     SEC. 2402. TARIFF TREATMENT FOR CERTAIN COMPONENTS OF 
                   SCIENTIFIC INSTRUMENTS AND APPARATUS.

       (a) In General.--U.S. note 6 of subchapter X of chapter 98 
     of the Harmonized Tariff Schedule of the United States is 
     amended in subdivision (a) by adding at the end the following 
     new sentence: ``The term `instruments and apparatus' under 
     subheading 9810.00.60 includes separable components of an 
     instrument or apparatus listed in this subdivision that are 
     imported for assembly in the United States in such instrument 
     or apparatus where the instrument or apparatus, due to its 
     size, cannot be feasibly imported in its assembled state.''.
       (b) Application of Domestic Equivalency Test to 
     Components.--U.S. note 6 of subchapter X of chapter 98 of the 
     Harmonized Tariff Schedule of the United States is amended--
       (1) by redesignating subdivisions (d) through (f) as 
     subdivisions (e) through (g), respectively; and
       (2) by inserting after subdivision (c) the following:
       ``(d)(i) If the Secretary of Commerce determines under this 
     U.S. note that an instrument or apparatus is being 
     manufactured in the United States that is of equivalent 
     scientific value to a foreign-origin instrument or apparatus 
     for which application is made (but which, due to its size, 
     cannot be feasibly imported in its assembled state), the 
     Secretary shall report the findings to the Secretary of the 
     Treasury and to the applicant institution, and all components 
     of such foreign-origin instrument or apparatus shall remain 
     dutiable.
       ``(ii) If the Secretary of Commerce determines that the 
     instrument or apparatus for which application is made is not 
     being manufactured in the United States, the Secretary is 
     authorized to determine further whether any component of such 
     instrument or apparatus of a type that may be purchased, 
     obtained, or imported separately is being manufactured in the 
     United States and shall report the findings to the Secretary 
     of the Treasury and to the applicant institution, and any 
     component found to be domestically available shall remain 
     dutiable.
       ``(iii) Any decision by the Secretary of the Treasury which 
     allows for duty-free entry of a component of an instrument or 
     apparatus which, due to its size cannot be feasibly imported 
     in its assembled state, shall be effective for a specified 
     maximum period, to be determined in consultation with the 
     Secretary of Commerce, taking into account both the 
     scientific needs of the importing institution and the 
     potential for development of comparable domestic 
     manufacturing capacity.''.
       (c) Modifications of Regulations.--The Secretary of the 
     Treasury and the Secretary of Commerce shall make such 
     modifications to their joint regulations as are necessary to 
     carry out the amendments made by this section.
       (d) Effective Date.--The amendments made by this section 
     shall take effect beginning 120 days after the date of the 
     enactment of this Act.

     SEC. 2403. LIQUIDATION OR RELIQUIDATION OF CERTAIN ENTRIES.

       (a) Liquidation or Reliquidation of Entries.--
     Notwithstanding sections 514 and 520 of the Tariff Act of 
     1930 (19 U.S.C. 1514 and 1520), or any other provision of 
     law, the United States Customs Service shall, not later than 
     90 days after the date of the enactment of this Act, 
     liquidate or reliquidate those entries made at Los Angeles, 
     California, and New Orleans, Louisiana, which are listed in 
     subsection (c), in accordance with the final decision of the 
     International Trade Administration of the Department of 
     Commerce for shipments entered between October 1, 1984, and 
     December 14, 1987 (case number A-274-001).
       (b) Payment of Amounts Owed.--Any amounts owed by the 
     United States pursuant to the liquidation or reliquidation of 
     an entry under subsection (a) shall be paid by the Customs 
     Service within 90 days after such liquidation or 
     reliquidation.
       (c) Entry List.--The entries referred to in subsection (a) 
     are the following:

 
  Entry number    Date of entry                    Port
 
  322 00298563      12/11/86             Los Angeles, California
------------------------------------------------------------------------
  322 00300567      12/11/86             Los Angeles, California
------------------------------------------------------------------------
   86-2909242        9/2/86               New Orleans, Louisiana
------------------------------------------------------------------------
  87-05457388        1/9/87               New Orleans, Louisiana
 

     SEC. 2404. DRAWBACK AND REFUND ON PACKAGING MATERIAL.

       (a) In General.--Section 313(q) of the Tariff Act of 1930 
     (19 U.S.C. 1313(q)) is further amended--
       (1) by striking ``Packaging material'' and inserting the 
     following:
       ``(1) In general.--Packaging material''; and
       (2) by adding at the end the following:
       ``(2) Additional eligibility.--Packaging material produced 
     in the United States, which is used by the manufacturer or 
     any other person on or for articles which are exported or 
     destroyed under subsection (a) or (b), shall be eligible 
     under such subsection for refund, as drawback, of 99 percent 
     of any duty, tax, or fee imposed on the importation of such 
     material used to manufacture or produce the packaging 
     material.''.
       (b) Effective Date.--The amendment made by this section 
     applies with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the 15th day after the 
     date of the enactment of this Act.

     SEC. 2405. INCLUSION OF COMMERCIAL IMPORTATION DATA FROM 
                   FOREIGN-TRADE ZONES UNDER THE NATIONAL CUSTOMS 
                   AUTOMATION PROGRAM.

       Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is 
     amended by adding at the end the following:
       ``(c) Foreign-Trade Zones.--Not later than January 1, 2000, 
     the Secretary shall provide for the inclusion of commercial 
     importation data from foreign-trade zones under the 
     Program.''.

     SEC. 2406. LARGE YACHTS IMPORTED FOR SALE AT UNITED STATES 
                   BOAT SHOWS.

       (a) In General.--The Tariff Act of 1930 (19 U.S.C. 1304 et 
     seq.) is amended by inserting after section 484a the 
     following:

     ``SEC. 484B. DEFERRAL OF DUTY ON LARGE YACHTS IMPORTED FOR 
                   SALE AT UNITED STATES BOAT SHOWS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, any vessel meeting the definition of a large yacht as 
     provided in subsection (b) and which is otherwise dutiable 
     may be imported without the payment of duty if imported with 
     the intention to offer for sale at a boat show in the United 
     States. Payment of duty shall be deferred, in accordance with 
     this section, until such large yacht is sold.
       ``(b) Definition.--As used in this section, the term `large 
     yacht' means a vessel that exceeds 79 feet in length, is used 
     primarily for recreation or pleasure, and has been previously 
     sold by a manufacturer or dealer to a retail consumer.
       ``(c) Deferral of Duty.--At the time of importation of any 
     large yacht, if such large yacht is imported for sale at a 
     boat show in the United States and is otherwise dutiable, 
     duties shall not be assessed and collected if the importer of 
     record--
       ``(1) certifies to the Customs Service that the large yacht 
     is imported pursuant to this section for sale at a boat show 
     in the United States; and
       ``(2) posts a bond, which shall have a duration of 6 months 
     after the date of importation, in an amount equal to twice 
     the amount of duty on the large yacht that would otherwise be 
     imposed under subheading 8903.91.00 or 8903.92.00 of the 
     Harmonized Tariff Schedule of the United States.
       ``(d) Procedures Upon Sale.--
       ``(1) Deposit of duty.--If any large yacht (which has been 
     imported for sale at a boat show in the United States with 
     the deferral of duties as provided in this section) is sold 
     within the 6-month period after importation--
       ``(A) entry shall be completed and duty (calculated at the 
     applicable rates provided for under subheading 8903.91.00 or 
     8903.92.00 of the Harmonized Tariff Schedule of the United 
     States and based upon the value of the large yacht at the 
     time of importation) shall be deposited with the Customs 
     Service; and
       ``(B) the bond posted as required by subsection (c)(2) 
     shall be returned to the importer.
       ``(e) Procedures Upon Expiration of Bond Period.--
       ``(1) In general.--If the large yacht entered with deferral 
     of duties is neither sold nor exported within the 6-month 
     period after importation--
       ``(A) entry shall be completed and duty (calculated at the 
     applicable rates provided for under subheading 8903.91.00 or 
     8903.92.00 of the Harmonized Tariff Schedule of the United 
     States and based upon the value of the large yacht at the 
     time of importation) shall be deposited with the Customs 
     Service; and
       ``(B) the bond posted as required by subsection (c)(2) 
     shall be returned to the importer.
       ``(2) Additional requirements.--No extensions of the bond 
     period shall be allowed. Any large yacht exported in 
     compliance with the bond period may not be reentered for 
     purposes of sale at a boat show in the United States (in 
     order to receive duty deferral benefits) for a period of 3 
     months after such exportation.
       ``(f) Regulations.--The Secretary of the Treasury is 
     authorized to make such rules and regulations as may be 
     necessary to carry out the provisions of this section.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to any large yacht imported into the 
     United States after the date that is 15 days after the date 
     of the enactment of this Act.

[[Page 1137]]



     SEC. 2407. REVIEW OF PROTESTS AGAINST DECISIONS OF CUSTOMS 
                   SERVICE.

       Section 515(a) of the Tariff Act of 1930 (19 U.S.C. 
     1515(a)) is amended by inserting after the third sentence the 
     following: ``Within 30 days from the date an application for 
     further review is filed, the appropriate customs officer 
     shall allow or deny the application and, if allowed, the 
     protest shall be forwarded to the customs officer who will be 
     conducting the further review.''.

     SEC. 2408. ENTRIES OF NAFTA-ORIGIN GOODS.

       (a) Refund of Merchandise Processing Fees.--Section 520(d) 
     of the Tariff Act of 1930 (19 U.S.C. 1520(d)) is amended in 
     the matter preceding paragraph (1) by inserting ``(including 
     any merchandise processing fees)'' after ``excess duties''.
       (b) Protest Against Decision of Customs Service Relating to 
     NAFTA Claims.--Section 514(a)(7) of such Act (19 U.S.C. 
     1514(a)(7)) is amended by striking ``section 520(c)'' and 
     inserting ``subsection (c) or (d) of section 520''.
       (c) Effective Date.--The amendments made by this section 
     apply with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the 15th day after the 
     date of the enactment of this Act.

     SEC. 2409. TREATMENT OF INTERNATIONAL TRAVEL MERCHANDISE HELD 
                   AT CUSTOMS-APPROVED STORAGE ROOMS.

       Section 557(a)(1) of the Tariff Act of 1930 (19 U.S.C. 
     1557(a)(1)) is amended in the first sentence by inserting 
     ``(including international travel merchandise)'' after ``Any 
     merchandise subject to duty''.

     SEC. 2410. EXCEPTION TO 5-YEAR REVIEWS OF COUNTERVAILING DUTY 
                   OR ANTIDUMPING DUTY ORDERS.

       Section 751(c) of the Tariff Act of 1930 (19 U.S.C. 
     1675(c)) is amended by adding at the end the following:
       ``(7) Exclusions from computations.--
       ``(A) In general.--Subject to subparagraph (B), there shall 
     be excluded from the computation of the 5-year period 
     described in paragraph (1) and the periods described in 
     paragraph (6) any period during which the importation of the 
     subject merchandise is prohibited on account of the 
     imposition, under the International Emergency Economic Powers 
     Act or other provision of law, of sanctions by the United 
     States against the country in which the subject merchandise 
     originates.
       ``(B) Application of exclusion.--Subparagraph (A) shall 
     apply only with respect to subject merchandise which 
     originates in a country that is not a WTO member.''.

     SEC. 2411. WATER RESISTANT WOOL TROUSERS.

       Notwithstanding section 514 of the Tariff Act of 1930 or 
     any other provision of law, upon proper request filed with 
     the Customs Service within 180 days after the date of 
     enactment of this Act, any entry or withdrawal from warehouse 
     for consumption--
       (1) that was made after December 31, 1988, and before 
     January 1, 1995; and
       (2) that would have been classifiable under subheading 
     6203.41.05 or 6204.61.10 of the Harmonized Tariff Schedule of 
     the United States and would have had a lower rate of duty, if 
     such entry or withdrawal had been made on January 1, 1995,
     shall be liquidated or reliquidated as if such entry or 
     withdrawal had been made on January 1, 1995.

     SEC. 2412. REIMPORTATION OF CERTAIN GOODS.

       (a) In General.--Subchapter I of chapter 98 is amended by 
     inserting in numerical sequence the following new heading:

``         9801.00.26           Articles,            Free                                  Free
                                 previously
                                 imported, with
                                 respect to which
                                 the duty was paid
                                 upon such previous
                                 importation, if
                                 (1) exported
                                 within 3 years
                                 after the date of
                                 such previous
                                 importation, (2)
                                 sold for
                                 exportation and
                                 exported to
                                 individuals for
                                 personal use, (3)
                                 reimported without
                                 having been
                                 advanced in value
                                 or improved in
                                 condition by any
                                 process of
                                 manufacture or
                                 other means while
                                 abroad, (4)
                                 reimported as
                                 personal returns
                                 from those
                                 individuals,
                                 whether or not
                                 consolidated with
                                 other personal
                                 returns prior to
                                 reimportation, and
                                 (5) reimported by
                                 or for the account
                                 of the person who
                                 exported them from
                                 the United States
                                 within 1 year of
                                 such exportation..
                                                                                                              ''

       (b) Effective Date.--The amendment made by subsection (a) 
     applies to goods described in heading 9801.00.26 of the 
     Harmonized Tariff Schedule of the United States (as added by 
     subsection (a)) that are reimported into the United States on 
     or after the date that is 15 days after the date of enactment 
     of this Act.

     SEC. 2413. TREATMENT OF PERSONAL EFFECTS OF PARTICIPANTS IN 
                   CERTAIN WORLD ATHLETIC EVENTS.

       (a) In General.--Subchapter II of chapter 99 of the 
     Harmonized Tariff Schedule of the United States is amended by 
     inserting in numerical sequence the following new heading:

``     9902.98.08      Any of the          Free         No change         Free              On or before 12/
                        following                                                            31/2002
                        articles not
                        intended for sale
                        or distribution
                        to the public:
                        personal effects
                        of aliens who are
                        participants in,
                        officials of, or
                        accredited
                        members of
                        delegations to,
                        the 1999
                        International
                        Special Olympics,
                        the 1999 Women's
                        World Cup Soccer,
                        the 2001
                        International
                        Special Olympics,
                        the 2002 Salt
                        Lake City Winter
                        Olympics, and the
                        2002 Winter
                        Paralympic Games,
                        and of persons
                        who are immediate
                        family members of
                        or servants to
                        any of the
                        foregoing
                        persons;
                        equipment and
                        materials
                        imported in
                        connection with
                        the foregoing
                        events by or on
                        behalf of the
                        foregoing persons
                        or the organizing
                        committees of
                        such events;
                        articles to be
                        used in
                        exhibitions
                        depicting the
                        culture of a
                        country
                        participating in
                        any such event;
                        and, if
                        consistent with
                        the foregoing,
                        such other
                        articles as the
                        Secretary of
                        Treasury may
                        allow............
 


[[Page 1138]]

       (b) Taxes and Fees Not To Apply.--The articles described in 
     heading 9902.98.08 of the Harmonized Tariff Schedule of the 
     United States (as added by subsection (a)) shall be free of 
     taxes and fees which may be otherwise applicable.
       (c) No Exemption From Customs Inspections.--The articles 
     described in heading 9902.98.08 of the Harmonized Tariff 
     Schedule of the United States (as added by subsection (a)) 
     shall not be free or otherwise exempt or excluded from 
     routine or other inspections as may be required by the 
     Customs Service.
       (d) Effective Date.--The amendment made by this section 
     applies to articles entered, or withdrawn from warehouse, for 
     consumption on or after the date of the enactment of this 
     Act.

     SEC. 2414. RELIQUIDATION OF CERTAIN ENTRIES OF THERMAL 
                   TRANSFER MULTIFUNCTION MACHINES.

       (a) In General.--Notwithstanding section 514 of the Tariff 
     Act of 1930 (19 U.S.C. 1514) or any other provision of law 
     and subject to the provisions of subsection (b), the United 
     States Customs Service shall, not later than 180 days after 
     the receipt of the request described in subsection (b), 
     liquidate or reliquidate each entry described in subsection 
     (d) containing any merchandise which, at the time of the 
     original liquidation, was classified under subheading 
     8517.21.00 of the Harmonized Tariff Schedule of the United 
     States (relating to indirect electrostatic copiers) or 
     subheading 9009.12.00 of such Schedule (relating to indirect 
     electrostatic copiers), at the rate of duty that would have 
     been applicable to such merchandise if the merchandise had 
     been liquidated or reliquidated under subheading 8471.60.65 
     of the Harmonized Tariff Schedule of the United States 
     (relating to other automated data processing (ADP) thermal 
     transfer printer units) on the date of entry.
       (b) Requests.--Reliquidation may be made under subsection 
     (a) with respect to an entry described in subsection (d) only 
     if a request therefor is filed with the Customs Service 
     within 90 days after the date of enactment of this Act and 
     the request contains sufficient information to enable the 
     Customs Service to locate the entry or reconstruct the entry 
     if it cannot be located.
       (c) Payment of Amounts Owed.--Any amounts owed by the 
     United States pursuant to the liquidation or reliquidation of 
     an entry under subsection (a) shall be paid not later than 
     180 days after the date of such liquidation or reliquidation.
       (d) Affected Entries.--The entries referred to in 
     subsection (a), filed at the port of Los Angeles, are as 
     follows:

------------------------------------------------------------------------
    Date of entry            Entry number            Liquidation date
------------------------------------------------------------------------
      01/17/97              112-9638417-3                02/21/97
      01/10/97              112-9637684-9                03/07/97
      01/03/97              112-9636723-6                04/18/97
      01/07/97              112-9637561-9                04/25/97
      01/10/97              112-9637686-4                03/07/97
      02/21/97              112-9642157-9                09/12/97
      02/14/97              112-9641619-9                06/06/97
      02/14/97              112-9641693-4                06/06/97
      02/21/97              112-9642156-1                09/12/97
      02/28/97              112-9643326-9                09/12/97
      03/18/97              112-9645336-6                09/19/97
      03/21/97              112-9645682-3                09/19/97
      03/21/97              112-9645681-5                09/19/97
      03/21/97              112-9645698-9                09/19/97
      03/14/97              112-9645026-3                09/19/97
      03/14/97              112-9645041-2                09/19/97
      03/20/97              112-9646075-9                09/19/97
      03/14/97              112-9645026-3                09/19/97
      04/04/97              112-9647309-1                09/19/97
      04/04/97              112-9647312-5                09/19/97
      04/04/97              112-9647316-6                09/19/97
      04/11/97              112-9300151-5                10/31/97
      04/11/97              112-9300287-7                09/26/97
      04/11/97              112-9300308-1                02/20/98
      04/10/97              112-9300356-0                09/26/97
      04/16/97              112-9301387-4                09/26/97
      04/22/97              112-9301602-6                09/26/97
      04/18/97              112-9301627-3                09/26/97
      04/21/97              112-9301615-8                09/26/97
      04/25/97              112-9302445-9                10/31/97
      04/25/97              112-9302298-2                09/26/97
      04/25/97              112-9302205-7                09/26/97
      04/04/97              112-9302371-7                09/26/97
      05/26/97              112-9305730-1                09/26/97
      05/21/97              112-9305527-1                09/26/97
      05/30/97              112-9306718-5                09/26/97
      05/19/97              112-9304958-9                09/26/97
      05/16/97              112-9305030-6                09/26/97
      05/07/97              112-9303702-2                09/26/97
      05/09/97              112-9303707-1                09/26/97
      05/10/97              112-9304256-8                09/26/97
      05/31/97              112-9306470-3                09/26/97
      05/02/97              112-9302717-1                09/19/97
      06/20/97              112-9308793-6                09/26/97
      06/18/97              112-9308717-5                09/26/97
      06/16/97              112-9308538-5                09/26/97
      06/09/97              112-9307568-3                09/26/97
      06/06/97              112-9307144-3                09/26/97
------------------------------------------------------------------------

     SEC. 2415. RELIQUIDATION OF CERTAIN DRAWBACK ENTRIES AND 
                   REFUND OF DRAWBACK PAYMENTS.

       (a) In General.--Notwithstanding sections 514 and 520 of 
     the Tariff Act of 1930 or any other provision of law, the 
     Customs Service shall, not later than 180 days after the date 
     of enactment of this Act, liquidate or reliquidate the 
     entries described in subsection (b) and any amounts owed by 
     the United States pursuant to the liquidation or 
     reliquidation shall be refunded with interest, subject to the 
     provisions of Treasury Decision 86-126(M) and Customs Service 
     Ruling No. 224697, dated November 17, 1994.
       (b) Entries Described.--The entries described in this 
     subsection are the following:

               Entry number:         Date of entry:
               855218319...........  July 18, 1985
               855218429...........  August 15, 1985
               855218649...........  September 13, 1985
               866000134...........  October 4, 1985
               866000257...........  November 14, 1985
               866000299...........  December 9, 1985
               866000451...........  January 14, 1986
               866001052...........  February 13, 1986
               866001133...........  March 7, 1986
               866001269...........  April 9, 1986
               866001366...........  May 9, 1986
               866001463...........  June 6, 1986
               866001573...........  July 7, 1986
               866001586...........  July 7, 1986
               866001599...........  July 7, 1986
               866001913...........  August 8, 1986
               866002255...........  September 10, 1986
               866002297...........  September 23, 1986
               03200000010.........  October 3, 1986
               03200000028.........  November 13, 1986
               03200000036.........  November 26, 1986.
 

     SEC. 2416. CLARIFICATION OF ADDITIONAL U.S. NOTE 4 TO CHAPTER 
                   91 OF THE HARMONIZED TARIFF SCHEDULE OF THE 
                   UNITED STATES.

       Additional U.S. note 4 of chapter 91 of the Harmonized 
     Tariff Schedule of the United States is amended in the matter 
     preceding subdivision (a), by striking the comma after 
     ``stamping'' and inserting ``(including by means of indelible 
     ink),''.

     SEC. 2417. DUTY-FREE SALES ENTERPRISES.

       Section 555(b)(2) of the Tariff Act of 1930 (19 U.S.C. 
     1555(b)(2)) is amended--
       (1) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) a port of entry, as established under section 1 of 
     the Act of August 24, 1912 (37 Stat. 434), or within 25 
     statute miles of a staffed port of entry if reasonable 
     assurance can be provided that duty-free merchandise sold by 
     the enterprise will be exported by individuals departing from 
     the customs territory through an international airport 
     located within the customs territory.''.

     SEC. 2418. CUSTOMS USER FEES.

       (a) Additional Preclearance Activities.--Section 
     13031(f)(3)(A)(iii) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)(A)(iii)) is 
     amended to read as follows:
       ``(iii) to the extent funds remain available after making 
     reimbursements under clause (ii), in providing salaries for 
     up to 50 full-time equivalent inspectional positions to 
     provide preclearance services.''.
       (b) Collection of Fees for Passengers Aboard Commercial 
     Vessels.--Section 13031 of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c) is amended--
       (1) in subsection (a), by amending paragraph (5) to read as 
     follows:
       ``(5)(A) Subject to subparagraph (B), for the arrival of 
     each passenger aboard a commercial vessel or commercial 
     aircraft from a place outside the United States (other than a 
     place referred to in subsection (b)(1)(A)(i) of this 
     section), $5.
       ``(B) For the arrival of each passenger aboard a commercial 
     vessel from a place referred to in subsection (b)(1)(A)(i) of 
     this section, $1.75''; and
       (2) in subsection (b)(1)(A), by striking ``(A) No fee'' and 
     inserting ``(A) Except as provided in subsection (a)(5)(B) of 
     this section, no fee''.
       (c) Use of Merchandise Processing Fees for Automated 
     Commercial Systems.--Section 13031(f) of the Consolidated 
     Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) 
     is amended by adding at the end the following:
       ``(6) Of the amounts collected in fiscal year 1999 under 
     paragraphs (9) and (10) of subsection (a), $50,000,000 shall 
     be available to the Customs Service, subject to 
     appropriations Acts, for automated commercial systems. 
     Amounts made available under this paragraph shall remain 
     available until expended.''.
       (d) Advisory Committee.--Section 13031 of the Consolidated 
     Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is 
     amended by adding at the end the following:
       ``(k) Advisory Committee.--The Commissioner of Customs 
     shall establish an advisory committee whose membership shall 
     consist of representatives from the airline, cruise ship, and 
     other transportation industries who may be subject to fees 
     under subsection (a). The advisory committee shall not be 
     subject to termination under section 14 of the Federal 
     Advisory Committee Act. The advisory committee shall meet on 
     a periodic basis and shall advise the Commissioner on issues 
     related to the performance of the inspectional services of 
     the United States Customs Service. Such advice shall include, 
     but not be limited to, such issues as the time periods during 
     which such services should be performed, the proper number 
     and deployment of inspection officers, the level of fees, and 
     the appropriateness of any proposed fee. The Commissioner 
     shall give consideration to the views of the advisory 
     committee in the exercise of his or her duties.''.

[[Page 1139]]

       (e) National Customs Automation Test Regarding 
     Reconciliation.--Section 505(c) of the Tariff Act of 1930 (19 
     U.S.C. 1505(c)) is amended by adding at the end the 
     following: ``For the period beginning on October 1, 1998, and 
     ending on the date on which the `Revised National Customs 
     Automation Test Regarding Reconciliation' of the Customs 
     Service is terminated, or October 1, 2000, whichever occurs 
     earlier, the Secretary may prescribe an alternative mid-point 
     interest accounting methodology, which may be employed by the 
     importer, based upon aggregate data in lieu of accounting for 
     such interest from each deposit data provided in this 
     subsection.''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect 30 days after the date of the enactment of 
     this Act.

     SEC. 2419. DUTY DRAWBACK FOR METHYL TERTIARY-BUTYL ETHER 
                   (``MTBE'').

       (a) In General.--Section 313(p)(3)(A)(i)(I) of the Tariff 
     Act of 1930 (19 U.S.C. 1313(p)(3)(A)(i)(I)) is amended by 
     striking ``and 2902'' and inserting ``2902, and 2909.19.14''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act, 
     and shall apply to drawback claims filed on and after such 
     date.

     SEC. 2420. SUBSTITUTION OF FINISHED PETROLEUM DERIVATIVES.

       (a) In General.--Section 313(p)(1) of the Tariff Act of 
     1930 (19 U.S.C. 1313(p)(1)) is amended in the matter 
     following subparagraph (C) by striking ``the amount of the 
     duties paid on, or attributable to, such qualified article 
     shall be refunded as drawback to the drawback claimant.'' and 
     inserting ``drawback shall be allowed as described in 
     paragraph (4).''.
       (b) Requirements.--Section 313(p)(2) of such Act (19 U.S.C. 
     1313(p)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in clauses (i), (ii), and (iii), by striking ``the 
     qualified article'' each place it appears and inserting ``a 
     qualified article''; and
       (B) in clause (iv), by striking ``an imported' and 
     inserting ``a''; and
       (2) in subparagraph (G), by inserting ``transferor,'' after 
     ``importer,''.
       (c) Qualified Article Defined, Etc.--Section 313(p)(3) of 
     such Act (19 U.S.C. 1313(p)(3)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (i)(II), by striking ``liquids, pastes, 
     powders, granules, and flakes'' and inserting ``the primary 
     forms provided under Note 6 to chapter 39 of the Harmonized 
     Tariff Schedule of the United States''; and
       (B) in clause (ii)--
       (i) in subclause (I) by striking ``or'' at the end;
       (ii) in subclause (II) by striking the period and inserting 
     ``, or''; and
       (iii) by adding after subclause (II) the following:

       ``(III) an article of the same kind and quality as 
     described in subparagraph (B), or any combination thereof, 
     that is transferred, as so certified in a certificate of 
     delivery or certificate of manufacture and delivery in a 
     quantity not greater than the quantity of articles purchased 
     or exchanged.

     The transferred merchandise described in subclause (III), 
     regardless of its origin, so designated on the certificate of 
     delivery or certificate of manufacture and delivery shall be 
     the qualified article for purposes of this section. A party 
     who issues a certificate of delivery, or certificate of 
     manufacture and delivery, shall also certify to the 
     Commissioner of Customs that it has not, and will not, issue 
     such certificates for a quantity greater than the amount 
     eligible for drawback and that appropriate records will be 
     maintained to demonstrate that fact.'';
       (2) in subparagraph (B), by striking ``exported article'' 
     and inserting ``article, including an imported, manufactured, 
     substituted, or exported article,''; and
       (3) in the first sentence of subparagraph (C), by striking 
     ``such article.'' and inserting ``either the qualified 
     article or the exported article.''.
       (d) Limitation on Drawback.--Section 313(p)(4)(B) of such 
     Act (19 U.S.C. 1313(p)(4)(B)) is amended by inserting before 
     the period at the end the following: ``had the claim 
     qualified for drawback under subsection (j)''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendment made by 
     section 632(a)(6) of the North American Free Trade Agreement 
     Implementation Act. For purposes of section 632(b) of that 
     Act, the 3-year requirement set forth in section 313(r) of 
     the Tariff Act of 1930 shall not apply to any drawback claim 
     filed within 6 months after the date of the enactment of this 
     Act for which that 3-year period would have expired.

     SEC. 2421. DUTY ON CERTAIN IMPORTATIONS OF MUESLIX CEREALS.

       (a) Before January 1, 1996.--Notwithstanding section 514 of 
     the Tariff Act of 1930 (19 U.S.C. 1514) or any other 
     provision of law, upon proper request filed with the Customs 
     Service before the 90th day after the date of the enactment 
     of this Act, any entry or withdrawal from warehouse for 
     consumption made after December 31, 1991, and before January 
     1, 1996, of mueslix cereal, which was classified under the 
     special column rate applicable for Canada in subheading 
     2008.92.10 of the Harmonized Tariff Schedule of the United 
     States--
       (1) shall be liquidated or reliquidated as if the special 
     column rate applicable for Canada in subheading 1904.10.00 of 
     such Schedule applied at the time of such entry or 
     withdrawal; and
       (2) any excess duties paid as a result of such liquidation 
     or reliquidation shall be refunded, including interest at the 
     appropriate applicable rate.
       (b) After December 31, 1995.--Notwithstanding section 514 
     of the Tariff Act of 1930 (19 U.S.C. 1514) or any other 
     provision of law, upon proper request filed with the Customs 
     Service before the 90th day after the date of the enactment 
     of this Act, any entry or withdrawal from warehouse for 
     consumption made after December 31, 1995, and before January 
     1, 1998, of mueslix cereal, which was classified under the 
     special column rate applicable for Canada in subheading 
     1904.20.10 of the Harmonized Tariff Schedule of the United 
     States--
       (1) shall be liquidated or reliquidated as if the special 
     column rate applicable for Canada in subheading 1904.10.00 of 
     such Schedule applied at the time of such entry or 
     withdrawal; and
       (2) any excess duties paid as a result of such liquidation 
     or reliquidation shall be refunded, including interest at the 
     appropriate applicable rate.

     SEC. 2422. EXPANSION OF FOREIGN TRADE ZONE NO. 143.

       (a) Expansion of Foreign Trade Zone.--The Foreign Trade 
     Zones Board shall expand Foreign Trade Zone No. 143 to 
     include areas in the vicinity of the Chico Municipal Airport 
     in accordance with the application submitted by the 
     Sacramento-Yolo Port District of Sacramento, California, to 
     the Board on March 11, 1997.
       (b) Other Requirements Not Affected.--The expansion of 
     Foreign Trade Zone No. 143 under subsection (a) shall not 
     relieve the Port of Sacramento of any requirement under the 
     Foreign Trade Zones Act, or under regulations of the Foreign 
     Trade Zones Board, relating to such expansion.

     SEC. 2423. MARKING OF CERTAIN SILK PRODUCTS AND CONTAINERS.

       (a) In General.--Section 304 of the Tariff Act of 1930 (19 
     U.S.C. 1304) is amended--
       (1) by redesignating subsections (h), (i), (j), and (k) as 
     subsections (i), (j), (k), and (l), respectively; and
       (2) by inserting after subsection (g) the following new 
     subsection:
       ``(h) Marking of Certain Silk Products.--The marking 
     requirements of subsections (a) and (b) shall not apply 
     either to--
       ``(1) articles provided for in subheading 6214.10.10 of the 
     Harmonized Tariff Schedule of the United States, as in effect 
     on January 1, 1997; or
       ``(2) articles provided for in heading 5007 of the 
     Harmonized Tariff Schedule of the United States as in effect 
     on January 1, 1997.''.
       (b) Conforming Amendment.--Section 304(j) of such Act, as 
     redesignated by subsection (a)(1) of this section, is amended 
     by striking ``subsection (h)'' and inserting ``subsection 
     (i)''.
       (c) Effective Date.--The amendments made by this section 
     apply to goods entered, or withdrawn from warehouse for 
     consumption, on or after the date of the enactment of this 
     Act.

     SEC. 2424. EXTENSION OF NONDISCRIMINATORY TREATMENT (NORMAL 
                   TRADE RELATIONS TREATMENT) TO THE PRODUCTS OF 
                   MONGOLIA.

       (a) Findings.--The Congress finds that Mongolia--
       (1) has received normal trade relations treatment since 
     1991 and has been found to be in full compliance with the 
     freedom of emigration requirements under title IV of the 
     Trade Act of 1974;
       (2) has emerged from nearly 70 years of communism and 
     dependence on the former Soviet Union, approving a new 
     constitution in 1992 which has established a modern 
     parliamentary democracy charged with guaranteeing fundamental 
     human rights, freedom of expression, and an independent 
     judiciary;
       (3) has held 4 national elections under the new 
     constitution, 2 presidential and 2 parliamentary, thereby 
     solidifying the nation's transition to democracy;
       (4) has undertaken significant market-based economic 
     reforms, including privatization, the reduction of government 
     subsidies, the elimination of most price controls and 
     virtually all import tariffs, and the closing of insolvent 
     banks;
       (5) has concluded a bilateral trade treaty with the United 
     States in 1991, and a bilateral investment treaty in 1994;
       (6) has acceded to the Agreement Establishing the World 
     Trade Organization, and extension of unconditional normal 
     trade relations treatment to the products of Mongolia would 
     enable the United States to avail itself of all rights under 
     the World Trade Organization with respect to Mongolia; and
       (7) has demonstrated a strong desire to build friendly 
     relationships and to cooperate fully with the United States 
     on trade matters.
       (b) Termination of Application of Title IV of the Trade Act 
     of 1974 to Mongolia.--
       (1) Presidential determinations and extensions of 
     nondiscriminatory treatment.--Notwithstanding any provision 
     of

[[Page 1140]]

     title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), 
     the President may--
       (A) determine that such title should no longer apply to 
     Mongolia; and
       (B) after making a determination under subparagraph (A) 
     with respect to Mongolia, proclaim the extension of 
     nondiscriminatory treatment (normal trade relations 
     treatment) to the products of that country.
       (2) Termination of application of title iv.--On or after 
     the effective date of the extension under paragraph (1)(B) of 
     nondiscriminatory treatment to the products of Mongolia, 
     title IV of the Trade Act of 1974 shall cease to apply to 
     that country.

     SEC. 2425. ENHANCED CARGO INSPECTION PILOT PROGRAM.

       (a) In General.--The Commissioner of the Customs Service is 
     authorized to establish a pilot program for fiscal year 1999 
     to provide 24-hour cargo inspection service on a fee-for-
     service basis at an international airport described in 
     subsection (b). The Commissioner may extend the pilot program 
     for fiscal years after fiscal year 1999 if the Commissioner 
     determines that the extension is warranted.
       (b) Airport Described.--The international airport described 
     in this subsection is a multi-modal international airport 
     that--
       (1) is located near a seaport; and
       (2) serviced more than 185,000 tons of air cargo in 1997.

     SEC. 2426. PAYMENT OF EDUCATION COSTS OF DEPENDENTS OF 
                   CERTAIN CUSTOMS SERVICE PERSONNEL.

       Notwithstanding section 2164 of title 10, United States 
     Code, the Department of Defense shall permit the dependent 
     children of deceased United States Customs Aviation Group 
     Supervisor Pedro J. Rodriquez attending the Antilles 
     Consolidated School System at Fort Buchanan, Puerto Rico, to 
     complete their primary and secondary education at this school 
     system without cost to such children or any parent, relative, 
     or guardian of such children. The United States Customs 
     Service shall reimburse the Department of Defense for 
     reasonable education expenses to cover these costs.
         TITLE III--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

     SEC. 3001. PROPERTY SUBJECT TO A LIABILITY TREATED IN SAME 
                   MANNER AS ASSUMPTION OF LIABILITY.

       (a) Repeal of Property Subject to a Liability Test.--
       (1) Section 357.--Section 357(a)(2) of the Internal Revenue 
     Code of 1986 (relating to assumption of liability) is amended 
     by striking ``, or acquires from the taxpayer property 
     subject to a liability''.
       (2) Section 358.--Section 358(d)(1) of such Code (relating 
     to assumption of liability) is amended by striking ``or 
     acquired from the taxpayer property subject to a liability''.
       (3) Section 368.--
       (A) Section 368(a)(1)(C) of such Code is amended by 
     striking ``, or the fact that property acquired is subject to 
     a liability,''.
       (B) The last sentence of section 368(a)(2)(B) of such Code 
     is amended by striking ``, and the amount of any liability to 
     which any property acquired from the acquiring corporation is 
     subject,''.
       (b) Clarification of Assumption of Liability.--
       (1) In general.--Section 357 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(d) Determination of Amount of Liability Assumed.--
       ``(1) In general.--For purposes of this section, section 
     358(d), section 362(d), section 368(a)(1)(C), and section 
     368(a)(2)(B), except as provided in regulations--
       ``(A) a recourse liability (or portion thereof) shall be 
     treated as having been assumed if, as determined on the basis 
     of all facts and circumstances, the transferee has agreed to, 
     and is expected to, satisfy such liability (or portion), 
     whether or not the transferor has been relieved of such 
     liability; and
       ``(B) except to the extent provided in paragraph (2), a 
     nonrecourse liability shall be treated as having been assumed 
     by the transferee of any asset subject to such liability.
       ``(2) Exception for nonrecourse liability.--The amount of 
     the nonrecourse liability treated as described in paragraph 
     (1)(B) shall be reduced by the lesser of--
       ``(A) the amount of such liability which an owner of other 
     assets not transferred to the transferee and also subject to 
     such liability has agreed with the transferee to, and is 
     expected to, satisfy, or
       ``(B) the fair market value of such other assets 
     (determined without regard to section 7701(g)).
       ``(3) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection and section 362(d). The Secretary may also 
     prescribe regulations which provide that the manner in which 
     a liability is treated as assumed under this subsection is 
     applied, where appropriate, elsewhere in this title.''
       (2) Limitation on basis increase attributable to assumption 
     of liability.--Section 362 of such Code is amended by adding 
     at the end the following new subsection:
       ``(d) Limitation on Basis Increase Attributable to 
     Assumption of Liability.--
       ``(1) In general.--In no event shall the basis of any 
     property be increased under subsection (a) or (b) above the 
     fair market value of such property (determined without regard 
     to section 7701(g)) by reason of any gain recognized to the 
     transferor as a result of the assumption of a liability.
       ``(2) Treatment of gain not subject to tax.--Except as 
     provided in regulations, if--
       ``(A) gain is recognized to the transferor as a result of 
     an assumption of a nonrecourse liability by a transferee 
     which is also secured by assets not transferred to such 
     transferee; and
       ``(B) no person is subject to tax under this title on such 
     gain,

     then, for purposes of determining basis under subsections (a) 
     and (b), the amount of gain recognized by the transferor as a 
     result of the assumption of the liability shall be determined 
     as if the liability assumed by the transferee equaled such 
     transferee's ratable portion of such liability determined on 
     the basis of the relative fair market values (determined 
     without regard to section 7701(g)) of all of the assets 
     subject to such liability.''.
       (c) Application to Provisions Other Than Subchapter C.--
       (1) Section 584.--Section 584(h)(3) of the Internal Revenue 
     Code of 1986 is amended--
       (A) by striking ``, and the fact that any property 
     transferred by the common trust fund is subject to a 
     liability,'' in subparagraph (A); and
       (B) by striking clause (ii) of subparagraph (B) and 
     inserting:
       ``(ii) Assumed liabilities.--For purposes of clause (i), 
     the term `assumed liabilities' means any liability of the 
     common trust fund assumed by any regulated investment company 
     in connection with the transfer referred to in paragraph 
     (1)(A).
       ``(C) Assumption.--For purposes of this paragraph, in 
     determining the amount of any liability assumed, the rules of 
     section 357(d) shall apply.''
       (2) Section 1031.--The last sentence of section 1031(d) of 
     such Code is amended--
       (A) by striking ``assumed a liability of the taxpayer or 
     acquired from the taxpayer property subject to a liability'' 
     and inserting ``assumed (as determined under section 357(d)) 
     a liability of the taxpayer''; and
       (B) by striking ``or acquisition (in the amount of the 
     liability)''.
       (d) Conforming Amendments.--
       (1) Section 351(h)(1) of the Internal Revenue Code of 1986 
     is amended by striking ``, or acquires property subject to a 
     liability,''.
       (2) Section 357 of such Code is amended by striking ``or 
     acquisition'' each place it appears in subsection (a) or (b).
       (3) Section 357(b)(1) of such Code is amended by striking 
     ``or acquired''.
       (4) Section 357(c)(1) of such Code is amended by striking 
     ``, plus the amount of the liabilities to which the property 
     is subject,''.
       (5) Section 357(c)(3) of such Code is amended by striking 
     ``or to which the property transferred is subject''.
       (6) Section 358(d)(1) of such Code is amended by striking 
     ``or acquisition (in the amount of the liability)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to transfers after October 18, 1998.
                                 ______
                                 
      By Mr. ROTH:
  S. 263. A bill to amend the Social Security Act to establish the 
Personal Retirement Accounts Program; to the Committee on Finance.


              the personal retirement accounts act of 1999

  Mr. ROTH. Mr. President, I rise today to introduce the Personal 
Retirement Accounts Act of 1999. This legislation has a simple but 
powerful purpose--to establish personal retirement accounts for working 
Americans. In my view, these accounts promise to give working Americans 
not only a more secure retirement future but a new stake in the 
nation's economic growth. And, as I will describe, these accounts may 
provide the model for future Social Security reform.
  Just a few years ago personal retirement accounts were an exotic and 
even controversial concept. But no longer! Today, personal retirement 
accounts are a bipartisan, even mainstream, idea.
  In 1997, a majority of a Clinton administration task force on Social 
Security endorsed the concept.
  In the last Congress, two comprehensive Social Security reform 
proposals, one introduced by Senator Moynihan, the ranking Democrat on 
the Finance Committee; the other by Senators Gregg and Breaux, had as a 
central element personal retirement accounts.
  Mr. President, let me explain why retirement accounts find so much 
support--not only in Congress but among the American people. With even 
conservative investment, such accounts have the potential to provide 
Americans with a substantial retirement nest egg. And an estate that 
can be left to children and grandchildren.
  Creating these accounts would also give the majority of Americans who 
do

[[Page 1141]]

not own any investment assets a new stake in America's economic 
growth--because that growth will be returned directly to their benefit. 
More Americans will be the owners of capital--not just workers.
  Creating these accounts may encourage Americans to save more. Today, 
Americans save less than people in almost every other industrial 
country. But personal retirement accounts will demonstrate to all 
Americans the magic of compound interest as even small savings grow 
significantly over time.
  Lastly, creating these accounts will help Americans to better prepare 
for retirement. According to the Congressional Research Service, 60 
percent of Americans are not actively participating in a retirement 
program other than Social Security. A recent survey found that only 
about 45 percent of working Americans have tried to calculate how much 
they will need for retirement. It is my belief that retirement accounts 
will prompt Americans--particularly Baby Boomers--to think more about 
retirement planning.
  Mr. President, let me describe a few of the features of my bill. 
First, the program would run for 5 years, from 2000 to 2004, utilizing 
half the budget surplus projected by the Congressional Budget Office.
  Each year, working Americans who earned a minimum of four quarters of 
Social Security coverage--$3,000 in 2000--would receive a deposit in 
his or her account. About 128 million Americans would receive a deposit 
in 2000.
  The formula for sharing the surplus among the accounts is 
progressive. Each eligible individual would receive a minimum amount of 
$250 per year, plus an additional amount based on how much they paid in 
payroll taxes.
  Over the life of the program, a minimum wage earner--someone earning 
$12,400 this year--would receive about $1,850. That amount is equal to 
a 35-percent rebate of his or her payroll taxes.
  An average wage earner--earning $27,600--would receive about $2,590--
equal to a 22-percent rebate of payroll taxes. And an individual who 
paid the maximum Social Security tax would get $4,560, a 16-percent 
rebate of payroll taxes. These figures do not include any investment 
income--or deductions for the costs of running the program.
  Account holders would have three investment choices--prudent choices 
that balance risk and return. The three choices are a ``stock index 
fund''--a mutual fund that reflects the overall performance of the 
stock market; a fund that invests in corporate bonds and other ``fixed 
income'' securities; and a fund that invests in U.S. Treasury bonds.
  However, my legislation also provides for a study of additional 
investment options--of other types of investment funds and investment 
managers.
  An account holder would become eligible for benefits when he or she 
signs up for Social Security. An individual could choose between an 
annuity or annual payments based on life expectancy.
  The bill also provides a number of features to ensure the program is 
properly run. First, the program would be neither ``on'' budget nor 
``off'' budget--instead, the program would be outside the Federal 
budget. The money in the program could be used for no other purpose 
than retirement benefits and the program's operating expenses.
  Second, the program would be supervised by a new, independent 
Personal Retirement Board, with members appointed by the President and 
Congressional leaders and subject to Senate confirmation. Board 
officials would be fiduciaries, and required by law to act only in the 
best financial interests of beneficiaries.
  Lastly, the stock funds would be managed by private sector investment 
managers. To insulate companies represented in the stock funds from 
politics, no Board official or other government employee and would be 
eligible to vote company proxies--only the investment managers.
  Mr. President, the design of this personal retirement accounts plan 
follows a proven model--the Federal Thrift Savings Plan. Back in 1983, 
when I was Chairman of the Governmental Affairs Committee, the 
retirement program for Federal employees needed to be revamped. One of 
the new elements we added was the Federal Thrift Savings Plan--a 
defined contribution employee benefit plan--that has been a great 
success.
  Many Americans will undoubtedly ask, ``What size nest egg might grow 
in my personal account?'' According to an analysis done by Social 
Security's actuaries, someone earning the minimum wage would have an 
account worth about $2,145 in 2004, assuming a 7.5 percent interest 
rate. For the average wage earner, the account would be worth about 
$2,990, and for the individual paying the maximum Social Security tax, 
about $5,250.
  Of course, over the long-term, accounts can grow significantly. For 
the minimum wage earner after 40 years--in 2039, his or her account 
would be worth about $27,000. The average wage earner would have 
$38,000; and the person paying the maximum payroll tax, $66,000.
  Mr. President, some might ask, ``Why start with personal retirement 
accounts, rather than comprehensive Social Security reform?'' Indeed, 
my bill will not affect the current Social Security program. Personal 
retirement accounts are an exciting concept, but still a big job, 
requiring careful work by the Finance Committee.
  Personal retirement accounts also enjoy broad support, unlike many 
other Social Security reform proposals. So let's get these accounts up 
and running, proven and tested, while Congress considers carefully 
protecting and preserving Social Security for the long term.
  Mr. President, in closing, let me add that personal retirement 
accounts have another big promise. Such accounts--if later made a part 
of Social Security or even as a permanent supplemental program--may 
help restore the confidence of the American people in this important 
national program. Polls show that Social Security is among the most 
popular government programs, deservedly so. But many Americans--
particularly young Americans--seem to have lost confidence in Social 
Security. They believe that there will be no benefits for them when 
they retire. Personal retirement accounts will provide the 
accountability and assurances that Americans are asking for.
  I encourage my colleagues to take a careful look at my bill, and I 
invite members to co-sponsor it.
                                 ______
                                 
      By Mr. AKAKA:
  S. 264. A bill to increase the Federal medical assistance percentage 
for Hawaii to 59.8 percent; to the Committee on Finance.


      hawaii federal medical assistance percentage adjustment act

  Mr. AKAKA. Mr. President, I rise today to reintroduce legislation I 
authored during the 105th Congress that would adjust the Federal 
Medical Assistance Percentage (FMAP) rate for Hawaii to reflect more 
fairly the state's ability to bear its share of Medicaid payments.
  The federal share of Medicaid payments varies depending on each 
state's ability to pay--wealthier states bear a larger share of the 
cost of the program, and thus have lower FMAP rates. Per capita income 
is used as the measure of state wealth. Because per capita income in 
Hawaii is quite high, the state's FMAP rate is at the lowest level--50 
percent. Hawaii is one of only a dozen states whose FMAP rate is at the 
50 percent level. My bill would increase Hawaii's FMAP rate from 50 
percent to 59.8 percent.
  Because of our geographic location and other factors, the cost of 
living in Hawaii greatly exceeds the cost of living on the mainland. 
Per capita income is a poor measure of a state's ability to bear the 
cost of Medicaid services. An excellent analysis of this issue appears 
in the 21st edition of The Federal Budget and the States, a joint study 
conducted by the Taubman Center for State and Local Government at 
Harvard University's John F. Kennedy School of Government and the 
office of U.S. Senator Daniel Patrick Moynihan. According to the study, 
if per capita income is measured in real terms, Hawaii ranks 47th at 
$19,755 compared to the national average of

[[Page 1142]]

$24,231. This sheds a totally different light on the state's financial 
status.
  The cost of living in Honolulu is 83 percent higher than the average 
of the metropolitan areas tracked by the U.S. Census Bureau, based on 
1995 data. Recent studies have shown that for the state as a whole, the 
cost of living is more than one-third higher than the rest of the U.S. 
In fact, Hawaii's Cost of Living Index ranks it as the highest in the 
country. Some government programs take the high cost of living in 
Hawaii into account and funding is adjusted accordingly. These include 
Medicare prospective payment rates, food stamp allocations, school 
lunch programs, housing insurance limits, and military living expenses.
  These examples reflect the recognition that the higher cost of living 
in noncontiguous states should be taken into account in fashioning 
government policies. It is time for similar recognition of this factor 
in gauging Hawaii's ability to support its health care programs. My 
colleagues may recall that the Balanced Budget Act of 1997 included a 
provision increasing Alaska's FMAP rate to 59.8 percent. Setting a 
higher match rate would still leave Hawaii with a lower FMAP rate than 
a majority of the states, but would more accurately reflect Hawaii's 
ability to pay its fair share of the costs of the Medicaid program.
  Despite the high cost of living, the Harvard-Moynihan study finds 
that Hawaii also has one of the highest poverty rates in the nation. 
The State's 16.9 percent poverty rate is eighth in the country, 
compared to the national average of 14.7 percent. These higher costs 
are reflected in state government expenditures and state taxation. 
Thus, on a per capita basis, state revenue and expenditures are far 
higher in Hawaii and Alaska, than in the 48 mainland states. The higher 
expenditure levels are necessary to assure an adequate level of public 
services which are more costly to provide in these states.
  Of the top ten states with the highest poverty rates in the country, 
the Harvard-Moynihan study finds that only three others have an FMAP 
rate between 50-60 percent. The other six states have FMAP rates of 65 
percent and higher. Even more astonishing is that of the top ten states 
with the lowest real per capita income, only Hawaii has a 50 percent 
FMAP rate.
  To bring equity to this situation, Hawaii has sought an increase in 
its FMAP rate over the past several years. Just as we did for Alaska in 
1997, Hawaii deserves equitable treatment. This change is long 
warranted. The same factors justifying an increase for Alaska apply to 
Hawaii. Recognition of this point was made by House and Senate 
conferees to the Balanced Budget Act. The conferees noted that poverty 
guidelines for Alaska and Hawaii are different than those for the rest 
of the nation, yet there is no variation from the national calculation 
in the FMAP. The conferees correctly noted that comparable adjustments 
are generally made for Alaska and Hawaii.
  The case for an FMAP increase is especially compelling in Hawaii, 
which has a proud history of providing essential health services in an 
innovative and cost-effective manner. That commitment is not easy to 
fulfill. Unlike most states, Hawaii's Aid to Families with Dependent 
Children/Temporary Assistance for Needy Families (AFDC/TANF) caseloads 
have risen significantly in recent years. Since TANF block grants are 
based on historical spending levels, the increased demand has placed 
extreme pressure on state resources.
  Hawaii has sought to maintain a social safety net while striving for 
more efficient delivery of government services. The most striking 
example is the QUEST medical assistance program, which operates under a 
federal waiver. QUEST has brought managed care and broader coverage to 
the state's otherwise uninsured populations. At the same time, Hawaii 
is the only state whose employers guarantee health care coverage to 
every full-time employee, a further example of Hawaii's commitment to a 
strong social support system.
  There is a particularly strong need for a more suitable FMAP rate for 
Hawaii at this time. The state has not participated in the robust 
economic growth that has benefitted most of the rest of the nation. 
Hawaii's unemployment rate is above the national average and state tax 
revenues have fallen short of projected estimates. The need to fund 50 
percent of the cost of the Medicaid program puts an increasing strain 
on the state's resources.
  For all of these reasons, the FMAP rates for Hawaii should be 
adjusted to reflect more equitably the state's ability to support the 
Medicaid program. This will assure that the special problem of the 
noncontiguous states is dealt with in a principled manner.
  I urge my colleagues in the Senate to support an upward adjustment in 
Hawaii's Federal Medical Assistance Percentage.
  Mr. President, in closing, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 264

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

     SECTION 1. INCREASED FMAP FOR HAWAII.

       (a) Increased FMAP.--The first sentence of section 1905(b) 
     of the Social Security Act (42 U.S.C. 1396d(b)) is amended--
       (1) by striking ``and (3)'' and inserting ``(3)''; and
       (2) by inserting before the period at the end the 
     following: ``, and (4) for purposes of this title and title 
     XXI, the Federal medical assistance percentage for Hawaii 
     shall be 59.8 percent''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to--
       (1) items and services furnished on or after October 1, 
     1998, under--
       (A) a State plan or under a waiver of such plan under title 
     XIX; and
       (B) a State child health plan under title XXI of such Act;
       (2) payments made on a capitation or other risk-basis for 
     coverage occurring under plans under such titles on or after 
     such date; and
       (3) payments attributable to DSH allotments for Hawaii 
     determined under section 1923(f) of such Act (42 U.S.C. 
     1396r-4(f)) for fiscal years beginning with fiscal year 1999.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Ms. Snowe):
  S. 265. A bill entitled ``Hospital Length of Stay Act of 1999''; to 
the Committee on Finance.


                  hospital length of stay act of 1999

  Mrs. FEINSTEIN. Mr. President, today, Senator Olympia Snowe and I are 
introducing a bill to guarantee that the decision of how long a patient 
receives care in the hospital is left to the attending physician. Our 
legislation would require health insurance plans to cover the length of 
hospital stay for any procedure or illness as determined by the 
attending physician, in consultation with the patient, to be medically 
appropriate.
  The bill is endorsed by the American Medical Association, the 
American College of Surgeons, the American College of Obstetricians and 
Gynecologists, the American Academy of Neurology, and the American 
Psychological Association.
  Only a physician taking care of the patient, who understands the 
patient's history, medical condition and needs, should make the 
decision as to how much hospital care a person needs. Physicians are 
trained to evaluate all the unique needs and problems of each 
individual patient. Every patient's condition varies and the course of 
their illness also varies. Some patients are fragile or weak. Others do 
not respond well to general anesthesia. Complications arise. Each 
patient is a unique individual with varying degrees of health.
  The American Medical Association, concerned that pre-determined 
length of stay criteria are ``moving away from scientific, patient-
focused principles of care,'' resulting in ``quicker and sicker'' 
discharges and poor patient outcomes, has developed patient-based 
discharge criteria. These criteria include considerations such as the 
patient's physiological, psychological, social and functional needs. 
The AMA criteria say: ``Patients should not be discharged from the 
hospital when their disease or symptoms cannot be adequately treated or 
monitored in the discharge setting.''
  Lengths of stay should not be determined by insurance company clerks,

[[Page 1143]]

actuaries or non-medical personnel. It is the attending physician, not 
a physician or other representative of an insurance company, that 
should decide when to admit and discharge someone.
  A number of physicians and other health care providers have expressed 
to me their great frustration with the current health care climate, in 
which they feel they spend too much of their time trying to justify 
their decisions on medical necessity to insurance companies.
  For example, Donna Damico, a nurse in a Maryland psychiatric unit of 
a hospital, told National Public Radio on October 1, 1997: ``I spend my 
days watching the care on my unit be directed by faceless people from 
insurance companies on the other end of the phone. My hospital employs 
a full-time nurse whose entire job is to talk to insurance reviewers * 
* * The reviewer's background can range anywhere from high school 
graduate to nurse, social worker or even actual physicians.''
  In 1996, we addressed the problem of ``drive-through'' baby 
deliveries because insurance plans would only pay for one day of 
hospital car for childbirth. This was fraught with problems like 
jaundiced babies that had to be rehospitalized and mothers who 
developed problems which only worsened because they were sent home 
despite physicians' view that a mother's and baby's stability are not 
usually reached until the third post-partum day.
  We have also been told of so-called ``drive-through'' mastectomies. 
Some HMO's have made mastectomy an outpatient procedure. Women who have 
had a radical mastectomy at 7:30 a.m. have been out on the street at 
4:30 that afternoon, dizzy and weak, unable to cope with drainage tubes 
and disfigurement. Senator Snowe and I are introducing a separate bill 
to address this.
  A California pediatrician told me of a child with very bad asthma. 
The insurance plan authorized 3 days in the hospital; the doctor wanted 
4-5 days. He told us about a baby with infant botulism (poisoning), a 
baby with a toxin that had spread from the intestine to the nervous 
system so that the child could not breathe. The doctor thought a 10-14 
day hospital stay was medically necessary for the baby; the insurance 
plan insisted on one week.
  A California neurologist told us about a seven-year-old girl with an 
ear infection who went to the doctor feverish. When her illness 
developed into pneumonia, she was admitted to the hospital. After two 
days she was sent home, but she then returned to the hospital three 
times because her insurance plan only covered a certain number of days. 
The third time she returned she had meningitis, which can be life 
threatening. The doctor said that if this girl had stayed in the 
hospital the first time for five to seven days, the antibiotics would 
have killed the infection, and the meningitis would never have 
developed.
  A 27-year-old man from central California had a heart transplant and 
was forced out of the hospital after 4 days because his HMO would not 
pay for more days. He died.
  Nurses in St. Luke's Hospital, San Francisco, say that women are 
being sent home after only two nights after a hysterectomy and two 
nights for a Caesarean section delivery, both of which are major 
abdominal surgeries, even though physicians think the women are not 
ready to go home.
  Lisa Breakey, a San Jose speech pathologist, came to my office and 
told us that she is providing home health for stroke patients she used 
to see in the hospital. She sees patients in their homes who have tubes 
in their stomach for feeding and tracheotomy tubes in their throats for 
breathing. These trach tubes have an inflated balloon or cuff which a 
family member must deflate and inflate by using a needle. Family 
members are supposed to suction the patient's mouth and throat before 
they deflate the cuff. Families, she stressed, are providing intensive 
care, for which they are unprepared and untrained. Bedrooms have become 
hospital rooms.
  Another California physician told us about a patient who needed total 
hip replacement because her hip had failed. The doctor believed a 
seven-day stay was warranted; the plan would only authorize five.
  Representative Greg Ganske, a physician serving in the House, told 
the story of a six-year-old child who nearly drowned. The child was put 
on a ventilator and it appeared that he would not live. The hospital 
got a call from the insurance company, asking if the doctor had 
considered sending the boy home because home ventilation is cheaper.
  These cases can be summarized in the comments of a Chico, California, 
maternity ward nurse: ``People's treatment depends on the type of 
insurance they have rather than what's best for them.''
  As I have mentioned, premature discharges can increase readmissions 
and medical complications.
  On March 23, 1998, American Medical News (according to Dr. David 
Phillips) reported that the ``shift toward outpatient treatment 
actually has come at quite a high price * * * an increased loss of 
lives.'' This University of California study found that medication 
errors are 3 times higher among outpatients than inpatients and medical 
personnel in outpatient care provide limited oversight of medications' 
side effects.
  Ms. Damico, the nurse interviewed on NPR, said, ``Patients return to 
us in acute states because their insurance will no longer pay the same 
amount for their outpatient treatment * * * [They] deteriorate to the 
point of suicidal thoughts or attempts and need to return to the 
hospital.'' She cited the example of a suicidal woman whose plan denied 
a hospital admission requested by her physician. After the doctor told 
her of the denial, she took twenty 50-milligram tabs of Benadryl, was 
then admitted, and the plan then had to pay for hospital care, an 
ambulance and emergency room fees.
  So not only do premature discharges compromise health, they also 
ultimately cost the insurer more.
  Physicians say they have to fight almost daily with insurance 
companies to give patients the hospital care they need and to justify 
their decisions about patient care.
  An American Medical Association review of a managed care contract 
(Aetna US Healthcare) found that the contract gives ``the company the 
unilateral authority to change material terms of the contract and to 
make determinations of medical necessity * * * without regard to 
physician determinations or scientific or clinical protocols. * * *,'' 
according to the January 19, 1998 American Medical News.
  A study by the American Academy of Neurology found that the 
guidelines (Milliman and Robertson) used by many insurance companies on 
length of stay are ``extraordinarily short in comparison to a large 
National Library of Medicine database * * * And that [the guidelines] 
do not relate to anything resembling the average hospital patient or 
attending physician * * *.'' The neurologists found that these 
guidelines were ``statistically developed,'' and not scientifically 
sound or clinically relevant.
  A study in the April 1997 Bulletin of the American College of 
Surgeons found that surgeons stated that the appropriate length of stay 
for an appendectomy is zero to five days, while insurance industry 
guidelines set a specific coverage limit of one day.
  The arbitrary limits set by HMO's and insurance plans are resulting 
in unintended consequences. Some 7 in 10 physicians said that in 
dealing with managed care plans, they have exaggerated the severity of 
a patient's condition to ``prevent him or her from being sent home from 
a hospital prematurely.'' Dr. David Schriger, at UCLA Medical Center in 
Los Angeles, said that he routinely has patients such as a frail, 
elderly woman with the flu, who is not in imminent danger but could 
encounter serious problems if she is sent home during the night. He 
told the Washington Post, ``At this point I have to figure out a way to 
put her in the hospital. . . . And typically, I'll come up with a 
reason acceptable to the insurer,'' and orders a blood test and chest x 
ray to justify admission.
  The Post article also cited Kaiser Permanente's Texas division, which

[[Page 1144]]

``warned doctors in urgent care centers not to tell patients they 
required hospitalization,'' as one Kaiser administrator recalled. ``We 
basically said [to] the UCC doctors, `If you value your job, you won't 
say anything about hospitalization. All you'll say is, I think you need 
further evaluation. . . .' ''
  Ms. Damico, the psychiatric nurse interviewed on NPR said, ``Our 
utilization review nurse gives all of us, including the doctors, good 
advice on how to chart so that our patients' care will be covered. . . 
. We all conspire quietly to make certain the charts look and sound bad 
enough.''
  On August 2, 1998, calling it the ``brave new world of managed 
care,'' the San Jose Mercury News reported, ``to cut costs HMOs are 
shifting the burden of caring for the sick from their staff and 
provider networks to patients themselves and their often ill-prepared 
family members,'' by reducing hospital stays. ``Patients who used to be 
in the hospital for a week after a hip replacement now stay only three 
days; patients who had coronary artery bypass graft surgery are pushed 
out after four or five. Doctors are routinely performing operations in 
outpatient surgery centers, clinics or their offices, which were once 
done in the hospital.'' This article cited, as examples, mastectomies, 
knee surgery, parts of bone marrow transplants, and cancer 
chemotherapies.
  The American College of Surgeons said it all when this prestigious 
organization wrote: ``We believe very strongly that any health care 
system or plan that removes the surgeon and the patient from the 
medical decision-making process only undermines the quality of that 
patient's care and his or her health and well-being. . . . specific, 
single numbers [of days] cannot and should not be used to represent a 
length of stay for a given procedure.'' (April 24, 1997) ACS on March 5 
wrote, ``We believe very strongly that any health care system or plan 
that removes the surgeon and the patient from the medical decision 
making process only undermines the quality of that patient's care and 
his or her health and well being.''
  The American Medical Association wrote on May 20, 1998, ``We are 
gratified that this bill would promote the fundamental concept, which 
the AMA has always endorsed, that medical decisions should be made by 
patients and their physicians, rather than by insurers or legislators. 
. . . We appreciate your initiative and ongoing efforts to protect 
patients by ensuring that physicians may identify medically appropriate 
lengths of stay, unfettered by third party payers.''
  The American Psychological Association, on March 4, 1998 wrote me, 
``We are pleased to support this legislation, which will require all 
health plans to follow the best judgment of the patient and attending 
provider when determining length of stay for inpatient treatment.''
  New treatments, particularly less invasive treatments, have shortened 
many hospital stays, but so also has pressure from insurers. Business 
and Health magazine reported in ``The State of Health Care in America 
1998'' that ``HMOs and capitated point-of-service plans'' were 
associated with the lowest inpatient stays. Other studies reveal that 
in areas with high HMO competition, health care utilization is lower 
for the entire population.'' This study shows that for patients with 
traditional fee-for-service insurance, the average length of stay in 
1995 was 4.9 days. For HMOs, it was 4.2 days. California Health Care 
Association data show that in my state, the average length of stay has 
declined from 5.70 days in 1986 to 4.45 in 1995. A study in the spring 
1996 issue of Health Affairs concluded that the number of inpatient 
days per thousand residents is lower and has declined faster in 
California than the national average. The average length of stay in 
California in 1996 was 5.3 days, while nationally it was 6.4 days. For 
example, a woman getting a mastectomy in New York will stay in the 
hospital an average of 5.78 days, but a mastectomy patient in 
California is likely to stay 2.98 days. (Inquiry, winter 1997-1998).
  Americans are disenchanted with the health insurance system in this 
country, as HMO hassles mount and physicians get effectively overruled 
by insurance companies. Arbitrary insurance company rules cannot 
address the subtleties of medical care. Three out of every four 
Americans are worried about their health care coverage and half say 
they are worried that doctors are basing treatment decisions strictly 
on what insurance plans will pay for.
  This bill is one step toward returning medical decision-making to 
those medical professionals trained to make medical decisions.


           summary of the hospital length of stay act of 1998

  Requires plans to cover hospital lengths of stay for all illnesses 
and conditions as determined by the physician, in consultation with the 
patient, to be medically appropriate.
  Prohibits plans from requiring providers (physicians) to obtain a 
plan's prior authorization for a hospital length of stay.
  Prohibits plans from denying eligibility or renewal for the purpose 
of avoiding these requirements.
  Prohibits plans from penalizing or otherwise reducing or limiting 
reimbursement of the attending physician because the physician provided 
care in accordance with the requirements of the bill.
  Prohibits plans from providing monetary or other incentives to induce 
a physician to provide care inconsistent with these requirements.
  Includes language clarifying that--
  Nothing in the bill requires individuals to stay in the hospital for 
a fixed period of time for any procedure;
  Plans may require copayments but copayments for a hospital stay 
determined by the physician cannot exceed copayments for any preceding 
portion of the stay.
  Does not pre-empt state laws that provide greater protection.
  Applies to private insurance plans, Medicare, Medicaid, Medigap, 
federal employees' plans, Children's Health Insurance Plan, the Indian 
Health Service
   Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 265

       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 ``Hospital Length of Stay Act 
     of 1999''.

     SEC. 2. COVERAGE OF HOSPITAL LENGTH OF STAY.

       (a) Group Health Plans.--
       (1) Public health service act amendments.--
       (A) In general.--Subpart 2 of part A of title XXVII of the 
     Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is 
     amended by adding at the end the following new section:

     ``SEC. 2707. STANDARDS RELATING TO COVERAGE OF HOSPITAL 
                   LENGTHS OF STAY.

       ``(a) Requirement.--A group health plan and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan (including a self-insured 
     issuer) that provides coverage for inpatient hospital 
     services--
       ``(1) shall provide coverage for the length of an inpatient 
     hospital stay as determined by the attending physician (or 
     other attending health care provider to the extent permitted 
     under State law) in consultation with the patient to be 
     medically appropriate; and
       ``(2) may not require that a provider obtain authorization 
     from the plan or the issuer for prescribing any length of 
     stay required under paragraph (1).
       ``(b) Prohibitions.--A group health plan and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan (including a self-insured 
     issuer) may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan, solely for the purpose of avoiding the 
     requirements of this section;
       ``(2) provide monetary payments or rebates to an individual 
     to encourage the individual to accept less than the minimum 
     protections available under this section;
       ``(3) penalize or otherwise reduce or limit the 
     reimbursement of an attending provider because such provider 
     provided care to an individual participant or beneficiary in 
     accordance with this section;
       ``(4) provide incentives (monetary or otherwise) to an 
     attending provider to induce such provider to provide care to 
     an individual participant or beneficiary in a manner 
     inconsistent with this section; or
       ``(5) subject to subsection (c)(4), restrict benefits for 
     any portion of a period within a

[[Page 1145]]

     hospital length of stay required under subsection (a) in a 
     manner which is less favorable than the benefits provided for 
     any preceding portion of such stay.
       ``(c) Rules of Construction.--
       ``(1) No requirement to stay.--Nothing in this section 
     shall be construed to require an individual who is a 
     participant or beneficiary to stay in the hospital for a 
     fixed period of time for any procedure.
       ``(2) No effect on requirements for minimum hospital stay 
     following birth.--Nothing in this section shall be construed 
     as modifying the requirements of section 2704.
       ``(3) Nonapplicability.--This section shall not apply with 
     respect to any group health plan, or any group health 
     insurance coverage offered by a health insurance issuer 
     (including a self-insured issuer), which does not provide 
     benefits for hospital lengths of stay.
       ``(4) Cost-sharing.--Nothing in this section shall be 
     construed as preventing a group health plan, or a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan (including a self-insured 
     issuer), from imposing deductibles, coinsurance, or other 
     cost-sharing in relation to benefits for hospital lengths of 
     stay under the plan, health insurance coverage offered in 
     connection with a group health plan, or the supplemental 
     policy, except that such coinsurance or other cost-sharing 
     for any portion of a period within a hospital length of stay 
     required under subsection (a) may not be greater than such 
     coinsurance or cost-sharing for any preceding portion of such 
     stay.
       ``(d) Notice.--A group health plan under this part shall 
     comply with the notice requirement under section 714(d) of 
     the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements of this section as if such 
     section applied to such plan.
       ``(e) Level and Type of Reimbursements.--Nothing in this 
     section shall be construed to prevent a group health plan or 
     a health insurance issuer offering group health insurance 
     coverage in connection with a group health plan (including a 
     self-insured issuer) from negotiating the level and type of 
     reimbursement with a provider for care provided in accordance 
     with this section.
       ``(f) Preemption; Exception for Health Insurance Coverage 
     in Certain States.--
       ``(1) In general.--The requirements of this section shall 
     not apply with respect to health insurance coverage if there 
     is a State law (as defined in section 2723(d)(1)) for a State 
     that regulates such coverage and provides greater protections 
     to patients than those provided under this section.
       ``(2) Construction.--Section 2723(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (B) Conforming amendment.--Section 2723(c) of the Public 
     Health Service Act (42 U.S.C. 300gg-23(c)) is amended by 
     striking ``section 2704'' and inserting ``sections 2704 and 
     2707''.
       (2) ERISA amendments.--
       (A) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 714. STANDARDS RELATING TO COVERAGE OF HOSPITAL 
                   LENGTHS OF STAY.

       ``(a) Requirement.--A group health plan and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan (including a self-insured 
     issuer), that provides coverage for inpatient hospital 
     services--
       ``(1) shall provide coverage for the length of an inpatient 
     hospital stay as determined by the attending physician (or 
     other attending health care provider to the extent permitted 
     under State law) in consultation with the patient to be 
     medically appropriate; and
       ``(2) may not require that a provider obtain authorization 
     from the plan or the issuer for prescribing any length of 
     stay required under paragraph (1).
       ``(b) Prohibitions.--A group health plan and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan (including a self-insured 
     issuer), may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan, solely for the purpose of avoiding the 
     requirements of this section;
       ``(2) provide monetary payments or rebates to an individual 
     to encourage the individual to accept less than the minimum 
     protections available under this section;
       ``(3) penalize or otherwise reduce or limit the 
     reimbursement of an attending provider because such provider 
     provided care to an individual participant or beneficiary in 
     accordance with this section;
       ``(4) provide incentives (monetary or otherwise) to an 
     attending provider to induce such provider to provide care to 
     an individual participant or beneficiary in a manner 
     inconsistent with this section; or
       ``(5) subject to subsection (c)(4), restrict benefits for 
     any portion of a period within a hospital length of stay 
     required under subsection (a) in a manner which is less 
     favorable than the benefits provided for any preceding 
     portion of such stay.
       ``(c) Rules of Construction.--
       ``(1) No requirement to stay.--Nothing in this section 
     shall be construed to require an individual who is a 
     participant or beneficiary to stay in the hospital for a 
     fixed period of time for any procedure.
       ``(2) No effect on requirements for minimum hospital stay 
     following birth.--Nothing in this section shall be construed 
     as modifying the requirements of section 711.
       ``(3) Nonapplicability.--This section shall not apply with 
     respect to any group health plan or any group health 
     insurance coverage offered by a health insurance issuer 
     (including a self-insured issuer), which does not provide 
     benefits for hospital lengths of stay.
       ``(4) Cost-sharing.--Nothing in this section shall be 
     construed as preventing a group health plan or a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan (including a self-insured 
     issuer), from imposing deductibles, coinsurance, or other 
     cost-sharing in relation to benefits for hospital lengths of 
     stay under the plan or health insurance coverage offered in 
     connection with a group health plan, except that such 
     coinsurance or other cost-sharing for any portion of a period 
     within a hospital length of stay required under subsection 
     (a) may not be greater than such coinsurance or cost-sharing 
     for any preceding portion of such stay.
       ``(d) Notice under Group Health Plan.--The imposition of 
     the requirements of this section shall be treated as a 
     material modification in the terms of the plan described in 
     section 102(a)(1), for purposes of assuring notice of such 
     requirements under the plan; except that the summary 
     description required to be provided under the last sentence 
     of section 104(b)(1) with respect to such modification shall 
     be provided by not later than 60 days after the first day of 
     the first plan year in which such requirements apply.
       ``(e) Level and Type of Reimbursements.--Nothing in this 
     section shall be construed to prevent a group health plan or 
     a health insurance issuer offering group health insurance 
     coverage in connection with a group health plan (including a 
     self-insured issuer), from negotiating the level and type of 
     reimbursement with a provider for care provided in accordance 
     with this section.
       ``(f) Preemption; Exception for Health Insurance Coverage 
     in Certain States.--
       ``(1) In general.--The requirements of this section shall 
     not apply with respect to health insurance coverage if there 
     is a State law (as defined in section 731(d)(1)) for a State 
     that regulates such coverage and provides greater protections 
     to patients than those provided under this section.
       ``(2) Construction.--Section 731(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (B) Conforming amendments.--
       (i) Section 731(c) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1191(c)) is amended by 
     striking ``section 711'' and inserting ``sections 711 and 
     714''.
       (ii) Section 732(a) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1191a(a)), as amended by 
     section 603(b)(2) of Public Law 104-204, is amended by 
     striking ``section 711'' and inserting ``sections 711 and 
     714''.
       (iii) The table of contents in section 1 of the Employee 
     Retirement Income Security Act of 1974 is amended by 
     inserting after the item relating to section 713 the 
     following new item:

``Sec. 714. Standards relating to coverage of hospital lengths of 
              stay.''.
       (b) Individual Market.--Subpart 3 of part B of title XXVII 
     of the Public Health Service Act (42 U.S.C. 300gg-51 et seq.) 
     is amended by adding at the end the following new section:

     ``SEC. 2753. STANDARDS RELATING TO COVERAGE OF HOSPITAL 
                   LENGTHS OF STAY.

       ``The provisions of section 2707 shall apply to health 
     insurance coverage offered by a health insurance issuer in 
     the individual market in the same manner as they apply to 
     health insurance coverage offered by a health insurance 
     issuer in connection with a group health plan in the small or 
     large group market.''.
       (c) Effective Dates.--
       (1) Group health plans.--Subject to paragraph (3), the 
     amendments made by subsection (a) shall apply with respect to 
     group health plans for plan years beginning on or after 
     January 1, 2000.
       (2) Health insurance coverage.--The amendment made by 
     subsection (b) shall apply with respect to health insurance 
     coverage offered, sold, issued, renewed, in effect, or 
     operated in the individual market on or after such date.
       (3) Collective bargaining agreements.--In the case of a 
     group health plan maintained pursuant to 1 or more collective 
     bargaining agreements between employee representatives and 1 
     or more employers ratified before the date of enactment of 
     this Act, the amendments made subsection (a) shall not apply 
     to plan years beginning before the later of--
       (A) the date on which the last collective bargaining 
     agreements relating to the plan terminates (determined 
     without regard to any extension thereof agreed to after the 
     date of enactment of this Act), or
       (B) January 1, 2000.

     For purposes of subparagraph (A), any plan amendment made 
     pursuant to a collective bargaining agreement relating to the 
     plan which amends the plan solely to conform to

[[Page 1146]]

     any requirement added by subsection (a) shall not be treated 
     as a termination of such collective bargaining agreement.

     SEC. 3. APPLICATION TO MEDICARE AND MEDICAID BENEFICIARIES.

       (a) Medicare.--
       (1) In general.--Title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.) is amended by adding at the end the 
     following:


      ``STANDARDS RELATING TO COVERAGE OF HOSPITAL LENGTHS OF STAY

       ``Sec. 1897. (a) Application to Medicare.--Notwithstanding 
     the limitation on benefits described in section 1812, or any 
     other limitation on benefits imposed under this title, the 
     provisions of section 2707 of the Public Health Service Act 
     shall apply to the provision of items and services under this 
     title.
       ``(b) Medicare+Choice and Eligible Organizations.--The 
     Secretary may not enter into a contract with a 
     Medicare+Choice organization under part C, or with an 
     eligible organization with a risk-sharing contract under 
     section 1876, unless the organization meets the requirements 
     of section 2707 of the Public Health Service Act with respect 
     to individuals enrolled with the organization.''.
       (2) Medicare supplemental policies.--
       (A) In general.--Section 1882(c) of the Social Security Act 
     (42 U.S.C. 1395ss(c)) is amended--
       (i) in paragraph (4), by striking ``and'' at the end;
       (ii) in paragraph (5), by striking the period and inserting 
     ``, and''; and
       (iii) by adding at the end the following:
       ``(6) meets the requirements of section 2707 of the Public 
     Health Service Act with respect to individuals enrolled under 
     the policy.''.
       (B) Conforming amendment.--Section 1882(b)(1)(B) of the 
     Social Security Act (42 U.S.C. 1395ss(b)(1)(B)) is amended by 
     striking ``(5)'' and inserting ``(6)''.
       (3) Cost Sharing.--Nothing in this subsection or section 
     2707(c) of the Public Health Service Act shall be construed 
     as authorizing the imposition of cost sharing with respect to 
     the coverage or benefits required to be provided under the 
     amendments to the Social Security Act made by paragraphs (1) 
     and (2) that is inconsistent with the cost sharing that is 
     otherwise permitted under title XVIII of the Social Security 
     Act.
       (b) Medicaid.--Title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) is amended by redesignating section 1935 
     as section 1936 and by inserting after section 1934 the 
     following:


      ``STANDARDS RELATING TO COVERAGE OF HOSPITAL LENGTHS OF STAY

       ``Sec. 1935. (a) In General.--A State plan may not be 
     approved under this title unless the plan requires each 
     health insurance issuer or other entity with a contract with 
     such plan to provide coverage or benefits to individuals 
     eligible for medical assistance under the plan, including a 
     managed care entity, as defined in section 1932(a)(1)(B), to 
     comply with the provisions of section 2707 of the Public 
     Health Service Act with respect to such coverage or benefits.
       ``(b) Cost Sharing.--Nothing in this section or section 
     2707(c) of the Public Health Service Act shall be construed 
     as authorizing a health insurance issuer or entity to impose 
     cost sharing with respect to the coverage or benefits 
     required to be provided under section 2707 of the Public 
     Health Service Act that is inconsistent with the cost sharing 
     that is otherwise permitted under this title.
       ``(c) Waivers Prohibited.--The requirement of subsection 
     (a) may not be waived under section 1115 or section 1915(b) 
     of the Social Security Act.''.
       (c) Effective Date.--The amendments made by this section 
     apply to contract years under titles XVIII and XIX of the 
     Social Security Act beginning on or after January 1, 2000.
       (d) Medigap Transition Provisions.--
       (1) In general.--If the Secretary of Health and Human 
     Services identifies a State as requiring a change to its 
     statutes or regulations to conform its regulatory program to 
     the changes made by subsection (a)(2), the State regulatory 
     program shall not be considered to be out of compliance with 
     the requirements of section 1882 of the Social Security Act 
     due solely to failure to make such change until the date 
     specified in paragraph (4).
       (2) NAIC standards.--If, within 9 months after the date of 
     the enactment of this Act, the National Association of 
     Insurance Commissioners (in this subsection referred to as 
     the ``NAIC'') modifies its NAIC Model Regulation relating to 
     section 1882 of the Social Security Act (referred to in such 
     section as the 1991 NAIC Model Regulation, as modified 
     pursuant to section 171(m)(2) of the Social Security Act 
     Amendments of 1994 (Public Law 103-432) and as modified 
     pursuant to section 1882(d)(3)(A)(vi)(IV) of the Social 
     Security Act, as added by section 271(a) of the Health 
     Insurance Portability and Accountability Act of 1996 (Public 
     Law 104-191) to conform to the amendments made by this 
     section, such revised regulation incorporating the 
     modifications shall be considered to be the applicable NAIC 
     model regulation (including the revised NAIC model regulation 
     and the 1991 NAIC Model Regulation) for the purposes of such 
     section.
       (3) Secretary standards.--If the NAIC does not make the 
     modifications described in paragraph (2) within the period 
     specified in such paragraph, the Secretary of Health and 
     Human Services shall make the modifications described in such 
     paragraph and such revised regulation incorporating the 
     modifications shall be considered to be the appropriate 
     Regulation for the purposes of such section.
       (4) Date specified.--
       (A) In general.--Subject to subparagraph (B), the date 
     specified in this paragraph for a State is the earlier of--
       (i) the date the State changes its statutes or regulations 
     to conform its regulatory program to the changes made by this 
     section, or
       (ii) 1 year after the date the NAIC or the Secretary first 
     makes the modifications under paragraph (2) or (3), 
     respectively.
       (B) Additional legislative action required.--In the case of 
     a State which the Secretary identifies as--
       (i) requiring State legislation (other than legislation 
     appropriating funds) to conform its regulatory program to the 
     changes made in this section, but
       (ii) having a legislature which is not scheduled to meet in 
     2000 in a legislative session in which such legislation may 
     be considered,

     the date specified in this paragraph is the first day of the 
     first calendar quarter beginning after the close of the first 
     legislative session of the State legislature that begins on 
     or after July 1, 2000. For purposes of the previous sentence, 
     in the case of a State that has a 2-year legislative session, 
     each year of such session shall be deemed to be a separate 
     regular session of the State legislature.

     SEC. 4. APPLICATION TO OTHER HEALTH CARE COVERAGE.

       (a) FEHBP.--Chapter 89 of title 5, United States Code, is 
     amended by adding at the end the following:

     ``Sec. 8915. Standards relating to coverage of hospital 
       lengths of stay

       ``(a) The provisions of section 2707 of the Public Health 
     Service Act shall apply to the provision of items and 
     services under this chapter.
       ``(b) Nothing in this section or section 2707(c) of the 
     Public Health Service Act shall be construed as authorizing a 
     health insurance issuer or entity to impose cost sharing with 
     respect to the coverage or benefits required to be provided 
     under section 2707 of the Public Health Service Act that is 
     inconsistent with the cost sharing that is otherwise 
     permitted under this chapter.''.
       (b) Medical Care For Members and Certain Former Members of 
     the Uniformed Services and Their Dependents.--Chapter 55 of 
     title 10, United States Code, is amended by adding at the end 
     the following:

     ``Sec. 1110. Standards relating to coverage of hospital 
       lengths of stay

       ``(a) Application of Standards.--The provisions of section 
     2707 of the Public Health Service Act shall apply to the 
     provision of items and services under this chapter.
       ``(b) Cost-Sharing.--Nothing in this section or section 
     2707(c) of the Public Health Service Act shall be construed 
     as authorizing the imposition of cost sharing with respect to 
     the coverage or benefits required to be provided under 
     section 2707 of the Public Health Service Act that is 
     inconsistent with the cost sharing that is otherwise 
     permitted under this chapter.''.
       (c) Veterans.--Subchapter II of chapter 17 of title 38, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1720E. Standards relating to coverage of hospital 
       lengths of stay

       ``(a) The provisions of section 2707 of the Public Health 
     Service Act shall apply to the provision of items and 
     services under this chapter.
       ``(b) Nothing in this section or section 2707(c) of the 
     Public Health Service Act shall be construed as authorizing 
     the imposition of cost sharing with respect to the coverage 
     or benefits required to be provided under section 2706 of the 
     Public Health Service Act that is inconsistent with the cost 
     sharing that is otherwise permitted under this chapter.''.
       (d) State Children's Health Insurance Program.--Section 
     2109 of the Social Security Act (42 U.S.C. 1397ii) is amended 
     by adding at the end the following:
       ``(b) Application of Standards Relating to Coverage of 
     Hospital Lengths of Stay.--
       ``(1) In general.--The provisions of section 2707 of the 
     Public Health Service Act shall apply to the provision of 
     items and services under this title.
       ``(2) Cost-sharing.--Nothing in this section or section 
     2707(c) of the Public Health Service Act shall be construed 
     as authorizing a health insurance issuer or entity to impose 
     cost sharing with respect to the coverage or benefits 
     required to be provided under section 2707 of the Public 
     Health Service Act that is inconsistent with the cost sharing 
     that is otherwise permitted under this title.''.
       (e) Indian Health Service and Health Care Provided by 
     Tribal Organizations.--Title VIII of the Indian Health Care 
     Improvement Act (25 U.S.C. 1671 et seq.) is amended by adding 
     at the end the following:


      ``STANDARDS RELATING TO COVERAGE OF HOSPITAL LENGTHS OF STAY

       ``Sec. 826. (a) The provisions of section 2707 of the 
     Public Health Service Act shall apply

[[Page 1147]]

     to the provision of items and services under this Act by the 
     Service or a tribal organization.
       ``(b) Nothing in this section or section 2707(c) of the 
     Public Health Service Act shall be construed as authorizing 
     the imposition of cost sharing with respect to the coverage 
     or benefits required to be provided under section 2707 of the 
     Public Health Service Act that is inconsistent with the cost 
     sharing that is otherwise permitted under this Act.''.
       (f) Health Care Provided to Peace Corps Volunteers.--
     Section 5(e) of the Peace Corps Act (22 U.S.C. 2504(e)) is 
     amended by adding at the end the following: ``The provisions 
     of section 2707 of the Public Health Service Act shall apply 
     to the provision of items and services under this section. 
     Nothing in this section or section 2707(c) of the Public 
     Health Service Act shall be construed as authorizing the 
     imposition of cost sharing with respect to the coverage or 
     benefits required to be provided under section 2707 of the 
     Public Health Service Act that is inconsistent with the cost 
     sharing that is otherwise permitted under this section.''.
                                 ______
                                 
      By Mrs. FEINSTEIN:
  S. 266. A bill to amend the Clean Air Act to permit the exclusive 
application of California State regulations regarding reformulated 
gasoline in certain areas within the State; to the Committee on 
Environment and Public Works.
  S. 267. A bill to amend the Solid Waste Disposal Act to direct 
Administrator of Environmental Protection Agency to give highest 
priority to petroleum contaminants in drinking water in issuing 
corrective action orders under the response program for petroleum; to 
the Committee on Environment and Public Works.
  S. 268. A bill to specify the effective date of and require an 
amendment to the final rule of the Environmental Protection Agency 
regulating exhaust emissions from new spark-ignition gasoline marine 
engines; to the Committee on Environment and Public Works.


            eliminate mtbe from california's drinking water

  Mrs. FEINSTEIN. Mr. President, today I am introducing three bills to 
stop the contamination of California's drinking water by the gasoline 
additive MTBE.
  First, I am introducing a bill to allow California to apply its own 
clean or reformulated gasoline rules as long as emissions reductions 
are equivalent or greater. California's rules are stricter than the 
federal rules and thus meet the air quality requirements of the federal 
Clean Air Act. This bill is the companion to H.R. 11 introduced by 
Representative Bilbray on January 6, 1998.
  MTBE or methyl tertiary butyl either is added to gasoline by some 
refiners in response to federal requirements that areas with the most 
serious air pollution problems use what is called ``reformulated 
gasoline,'' a type of cleaner-burning gasoline. The federal law 
requires that this gasoline contain 2 percent by weight oxygenate. MTBE 
has been the oxygenate of choice by some refiners.
  The major source of MTBE in groundwater appears to be leaking 
underground storage tanks. In surface water, it is recreational 
gasoline-powered boating and personal watercraft, according to the 
California Environmental Protection Agency.
  The second bill requires the U.S. Environmental Protection Agency to 
make petroleum releases into drinking water the highest priority in the 
federal underground storage tank cleanup program. This bill is needed 
because underground storage tanks are the major source of MTBE into 
drinking water and federal law does not give EPA specific guidance on 
cleanup priorities.
  The third bill will move from 2006 to 2001 full implementation of 
EPA's current watercraft engine exhaust emissions requirements. The 
California Air Resources Board on December 10, 1998, adopted watercraft 
engine regulations in effect making the federal EPA rules effective in 
2001, so this bill will make the deadline in the federal requirements 
consistent with California's deadlines. In addition, the bill will 
require an emissions label on these engines consistent with 
California's requirements so the consumer can make an informed 
purchasing choice. This bill is needed because watercraft engines have 
remained essentially unchanged since the 1930s and up to 30 percent of 
the gas that goes into the motor goes into water unburned.
  These three bills represent three steps toward getting MTBE out of 
California's drinking water.


                Bill 1: The California Clean Gas Formula

  The Feinstein-Bilbray bill would provide that if a state's 
reformulated gasoline rules achieve equal or greater emissions 
reductions than federal regulations, a state's rules will take 
precedence. The bill would apply only to states which have received 
waivers under Section 209(b)(1) of the Clean Air Act. California is the 
only state currently eligible for this waiver, a waiver allowing 
California to set its own fuel standards. The other 49 states do not 
set their own fuel specifications.
  This bill would exempt California from overlapping federal oxygenate 
requirements and give gasoline manufacturers the flexibility to reduce 
or even eliminate the use of MTBE, while not reducing our air quality.
  In 1994, the CARB adopted a ``predictive model,'' which is a 
performance based program that allows refiners to use innovative fuel 
formulations to meet clean air requirements. The predictive model 
provides twice the clean air benefits required by the federal 
government. With this model, refiners can make cleaner burning gasoline 
with one percent oxygen or even no oxygen at all. The federal two 
percent oxygenate requirement limits this kind of innovation. In fact, 
Tosco and Shell are already making MTBE-free gasoline.
  In addition, Chevron has said:

       MTBE is the best oxygenate of choice for blending CBG 
     (clean burning gasoline) in California refineries. . . . 
     However, consistent with our desire to reduce or eliminate 
     MTBE from cleaner burning gas (CBG), we want the flexibility 
     to be able to make prudent use of any oxygenate--MTBE, 
     ethanol, or the use of no oxygenate--while meeting the 
     emissions performance standards of reformulated gasolines. If 
     the government allows this flexibility, Chevron would likely 
     use more ethanol than now to efficiently provide cleaning 
     burning gasoline.

  The legislation allows that companies who serve California's gasoline 
needs to continue to adopt innovative formulas for cleaner burning 
gasoline without contaminating the water.
  The University of California study, released in November, recommended 
phasing our MTBE and concluded that oil companies can make cleaner-
burning gasoline that meets federal air standards without MTBE.


               the problem: drinking water contamination

  Contamination of California's drinking water by MTBE is growing 
almost daily. A December 14, 1998 San Francisco Chronicle headline 
calls MTBE a ``Ticking Bomb.'' The University of California study says, 
``If MTBE continues to be used at current levels and more sources 
become contaminated, the potential for regional degradation of water 
resources, especially groundwater basins, will increase. Severity of 
water shortages during drought years will be exacerbated.''
  In higher concentrations, MTBE smells like turpentine and it tastes 
like paint thinner. Relatively low levels of MTBE can simply make 
drinking water simply undrinkable.
  MTBE is a highly soluble organic compound which moves quickly through 
soil and gravel. It therefore poses a more rapid threat to water 
supplies than other constituents of gasoline when leaks occur. MTBE is 
easily traced, but is very difficult and expensive to cleanup. The 
Association of California Water Agencies estimates that it would cost 
as much as $1 million per well to install treatment technology to 
remove MTBE from drinking water. Without these funds, the only option 
is to shut down wells.
  MTBE use has escalated from 12,000 barrels a day in 1980 to about 
100,000 barrels today, according to CARB. EPA says that about 30 
percent of the nation's gasoline is reformulated gas and MTBE is used 
in about 84 percent of reformulated gasoline. Two-thirds of 
California's gasoline is subject to the federal oxygenate requirement. 
This growth in use of MTBE is directly attributable to the requirements 
of the Federal Clean Air Act.


                        contamination widespread

  A June 12, 1998 Lawrence Livermore National Laboratory study 
concluded

[[Page 1148]]

that MTBE is a ``frequent and widespread contaminant'' in groundwater 
throughout California and does not degrade significantly once it is 
there. This study found that groundwater has been contaminated at over 
10,000 shallow monitoring sites. The Livermore study says that ``MTBE 
has the potential to impact regional groundwater resources and may 
present a cumulative contamination hazard.''
  Californians are more dependent on groundwater as a source of 
drinking water than most Americans. According to the U.S. Geological 
Survey, 69 percent of California's population relies on groundwater as 
their source of drinking water, while for the U.S. population at large, 
53 percent of the population relies on groundwater.
  Similarly, the Association of California Water Agencies reports that 
MTBE has impacted over 10,000 sites.
  MTBE has been detected in drinking water supplies in a number of 
cities, including Santa Monica, Riverside, Anaheim, Los Angeles, San 
Francisco, Sebastopol, Manteca, and San Diego. MTBE has also been 
detected in numerous California reservoirs, including Lake Shasta in 
Redding, San Pablo and Cherry reservoirs in the Bay Area, and Coyote 
and Anderson reservoirs in Santa Clara.
  Santa Monica lost 75 percent of its groundwater supply; the South 
Lake Tahoe Public Utility District has lost over one-third of drinking 
water wells. Drinking water wells in Santa Clara Valley (Great Oaks 
Water Company) and Sacramento (Fruitridge Vista Water Company) have 
been shut down because of MTBE contamination.
  In addition, MTBE has been detected in the following surface water 
reservoirs: Lake Perris (Metropolitan Water District of Southern 
California), Anderson Reservoir (Santa Clara Valley Water District), 
Canyon Lake (Elsinore Valley Municipal Water District), Pardee 
Reservoir and San Pablo Reservoir (East Bay Municipal Utility 
District), Lake Berryessa (Solano County Water Agency).
  The largest contamination occurred in the city of Santa Monica, which 
lost 75% of its groundwater supply as a result of MTBE leaking out of 
shallow gas tanks beneath the surface; MTBE has been discovered in 
publicly owned wells approximately 100 feet from City Council Chamber 
in South Lake Tahoe; In Glennvile, California, near Bakersfield, MTBE 
levels have been detected in groundwater as high as 190,000 parts per 
billion--dramatically exceeding the California Department of Health 
advisory of 35 parts per billion; and


                            dangers of mtbe

  The United States EPA has indicated that ``MTBE is an animal 
carcinogen and has a human carcinogenic hazard potential.''
  Studies to assess hazards to animals have found that MTBE is 
carcinogenic in rodents in high doses. MTBE has been linked to leukemia 
and lymphomas in female rats and an increase in benign testicular 
tumors in male rats. Studies of inhalation exposure in rats have also 
shown increased incidence of kidney, testicular, and liver tumors. 
Inhalation exposure has also resulted in adverse effect on developing 
mouse fetuses.
  The Alaska Department of Health and Social Services and the Centers 
for Disease Control monitored concentrations of MTBE in the air and in 
the blood of humans in 1992 and 1993. Blood levels of MTBE were 
analyzed in gasoline station and car-repair workers and commuters. 
People with higher blood levels of MTBE were significantly more likely 
to report more headaches, eye irritation, nausea, dizziness, burning of 
the nose and throat, coughing, disorientation and vomiting, compared 
with those who had lower blood levels. From these studies, EPA 
concluded, ``MTBE can pose a hazard of non-cancer effects to humans at 
high doses. The data do not support confident quantitative estimations 
or risk at low exposure.''


     california's regulations can achieve what federal law intends

  The federal gasoline oxygenate requirement went into effect in 
December 1994, affecting areas where the air quality is the worst. 
Today, reformulated gasoline is required by federal law in the 
following areas of California:
  Year-round: Oxygenates are required to be used in the South Coast Air 
Basin (the counties of Los Angeles, Riverside, San Bernadino, Orange, 
Ventura) and the Sacramento metropolitan area (which includes all of 
Sacramento County and portions of Yolo, Placer and Eldorado County).
  Wintertime: Oxygenates are required to be added to gasoline in the 
Southern California Air Basin (the entire counties of Los Angeles, 
Riverside, San Bernardino, Orange, and Ventura), Imperial County, 
Fresno and Lake Tahoe.
  While federal Clean Air Act regulations were being promulgated, the 
California Air Resources Board developed more stringent air standards, 
using a ``predictive model.''
  The Clean Air Act has no doubt helped reduce emissions throughout the 
United States, but the federal requirements have imposed limitations on 
the level of flexibility that U.S. EPA can grant to California. The 
overlapping applicability of both the federal and state reformulated 
gasoline rules has actually prohibited gasoline manufacturers from 
responding as effectively as possible to unforseen problems with their 
product. This bill addresses exactly this type of situation.
  This legislation rewards California for its unique and effective 
approach in solving its own air quality problems by permitting it an 
exemption from federal oxygenate requirements as long as tough 
environmental standards are enforced. This bill does not weaken the 
Clean Air Act, but instead is a step in the right direction, towards 
sound environmental policy. It is a narrowly-targeted bill designed to 
make our drinking water clean to drink. With this bill, California is 
once again taking the initiative to lead the way in ensuring the 
protection of the air we breath, and the water we drink.
  By allowing the companies that supply our state's gasoline to use 
good science and sound environmental policy, we can achieve the goals 
set forth by the Clean Air Act, without sacrificing California's clean 
water.


                  california, a leader in air cleanup

  California's efforts to improve air quality predate similar federal 
efforts and have achieved marked success in reducing emissions, 
resulting in the cleanest air Californians have seen in decades.
  Since the introduction of California Cleaner Burning Gasoline 
program, there has been a 300 ton per day decrease in ozone forming 
ingredients found in the air. This is the emission reduction equivalent 
of taking 3.5 million automobiles off the road. California reformulated 
gasoline reduces smog forming emissions from vehicles by 15 percent.
  The state has also seen a marked decrease in first stage smog alerts, 
during which residents with respiratory ailments are encouraged to stay 
indoors.
  John Dunlap, former Chairman of California's Air Board, who supports 
this legislation, has said:

       . . . our program has proven (to have) a significant effect 
     on California's air quality. Following the introduction of 
     California's gasoline program in the spring of 1996, 
     monitored levels of ozone . . . were reduced by 10 percent in 
     Northern California, and by 18 percent in the Los Angeles 
     area. Benzene levels (have decreased) by more than 50 
     percent.


                      this bill should be enacted

  There are several reasons to enact this bill:
  1. Studies confirm need to eliminate MTBE.
  The June 11, 1998 Lawrence Livermore study found MTBE at 10,000 sites 
and said it is ``a frequent and widespread contaminant in shallow 
groundwater throughout California.''
  A five-volume University of California November 12, 1998 study 
concluded that MTBE provides ``no significant air quality benefit'' and 
that if its use is continued, ``the potential for regional degradation 
of water resources, especially groundwater, will increase.'' The 
landmark UC study recommended that MTBE use be phased out and that 
refiners be given the flexibility of the state's clean gas regulations.
  2. MTBE is not needed. California can meet federal clean air 
standards by using our own state clean gas regulations.

[[Page 1149]]

  The California Air Resources Board has testified that we can have 
equivalent or greater reductions in emissions and improve air quality 
using California's regulations. These standards are more stringent than 
the federal requirements, but offer gasoline refiners more flexibility.
  3. MTBE in drinking water poses health risks.
  MTBE is an animal carcinogen and a potential human carcinogen. It 
tastes bad. It smells bad. It may have other harmful human health 
effects.
  4. The dangers of MTBE were not considered when Congress last amended 
the Clear Air Act in 1990.
  According to the Congressional Research Service, during Congress's 
consideration of the Clean Air Act Amendments, which became law in 
1990, there was no discussion of the possible adverse impacts of MTBE 
as a gasoline additive. Likewise, CARB has said that when they were 
considering our state's reformulated gasoline regulations, ``the 
concern over the use of oxygenates was not raised as an issue.''
  5. California needs water.
  California cannot afford to lose any more of its drinking water. 
According to the Association of California Water Agencies, by the year 
2020, California will be 4 million to 6 million acre-feet short of 
water each year without additional facilities and water management 
strategies.
  5. Congress has long recognized that California is a unique case.
  California's efforts to improve air quality predate similar federal 
efforts. We have our own clean gas program and U.S. EPA has given the 
state a waiver under section 209(b)(1) of the Clean Air Act to develop 
our own program.


                           widespread support

  I am appending at the end of my statement a list of California local 
governments, water districts, air districts, statewide and other 
organizations that support my MTBE bill.


                bill 2: stopping underground tank leaks

  My second bill will make threats to drinking water the highest 
priority in the federal underground tank cleanup program at EPA.
  In 1986, Congress created a Leaking Underground Storage Tank (LUST) 
Trust Fund, funded by a one-tenth of one cent tax on all petroleum 
products. These funds are available to enforce cleanup requirements; to 
conduct cleanups where there is no financially viable responsible party 
or where a responsible party fails to correct; to take corrective 
action in emergencies; and to bring actions against parties who fail to 
comply. There is approximately $1.5 billion currently in the fund.
  Under current law, section 9003(h)(3) of the Solid Waste Disposal 
Act, EPA is required to give priority in corrective actions to 
petroleum releases from tanks which pose ``the greatest threat to human 
health and the environment,'' a provision that I support. My bill would 
add simple clarifying language that in essence says that threats to 
drinking water are the most serious threats and should receive priority 
attention.
  Leaking underground gasoline storage tank systems are the major 
source of MTBE into drinking water. The June 11, 1998 Lawrence 
Livermore Laboratory study that examined 236 tanks in 24 California 
counties found MTBE at 78 percent of these sites. These scientists said 
that a minimum estimate of the number of MTBE-impacted tank sites in my 
state is over 10,000. Federal law requires tanks to have protections 
against spills, overfills, and tank corrosion by December 22, 1998. 
Tank owners have had ten years to do this. EPA has estimated that half 
the nation's 600,000 tanks and 52 percent of California's 61,000 
complied by the December 22 deadline.
  Clearly, stopping these leaks is a big part of the solution of 
stopping the release of MTBE. Making threats to drinking water a top 
cleanup priority makes sense since clean drinking water is fundamental 
to human health.


                       bill 3: motorcraft engines

  My third bill addresses a third source of MTBE into drinking water--
watercraft engines. The Association of California Water Agencies says 
that MTBE in surface water reservoirs comes largely from recreational 
watercraft.
  In October 1996, U.S. EPA published regulations, starting in model 
year 1998, requiring stricter emissions controls on personal watercraft 
engines to be fully implemented by 2006. On December 10, 1998, the 
California Air Resources Board adopted regulations very similar to 
EPA's in substance, but accelerating their effective date to 2001, five 
years earlier. In addition, California added two more ``tiers'' of 
emissions reductions that go beyond U.S. EPA's, reducing emissions by 
20 percent more in 2004 and 65 percent more in 2008. Under the federal 
requirements, there would be a complete fleet turnover by 2050; in 
California, there would be a complete fleet turnover in 2024, 26 years 
earlier.
  The federal and the California rules apply to (1) spark-ignition 
outboard marine and (2) personal watercraft engines, such as 
motorboats, jet skis and wave runners, beginning in model year 2001.
  Outboard engines: In 1990, there were 373,200 gasoline-powered 
outboard engines in California. California sales of outboard engines 
represented ten percent of the U.S. market in 1997.
  Personal watercraft: California sales of these engines were 12 
percent of the 176,000 sales in the U.S. in 1995, numbers which have no 
doubt grown significantly. Personal watercraft like jet skis have 
increased by 240 percent since 1990 and these numbers are expected to 
double by 2020.
  We need to curb emissions from these marine engines because (1) 
unlike automobiles which exhaust into the air, all marine engines 
exhaust directly into the water, and (2) 20 to 30 percent of the gas 
that goes in, comes out unburned. According to CARB, these engines 
``discharge an unburned fuel/oil mixture at levels approaching 20 to 30 
percent of the fuel/oil mixture consumed. This unregulated discharge of 
fuel and oil threatens degradation of high quality waters . . .'' CARB 
says that two hours of exhaust emissions from a jet ski is equivalent 
to the emission created by driving a 1998 automobile 130,000 miles. 
Some areas are considering banning jet skis and gas-powered boats.
  My bill does two things: (1) It would make the EPA's existing 
regulations effective in 2001, instead of 2006, consistent with 
California's regulations. (2) It would direct EPA to make one addition 
to their current regulation, an engine labeling requirement, consistent 
with California's labeling requirement, designed to inform consumers of 
the relative emissions level of new engines.
  Because these engines put MTBE and other constituents of gasoline 
into surface waters, I believe we need to accelerate the national rules 
to discourage people from ``engine shopping'' from state to state and 
bringing ``dirty'' engines into California. Because my state's 
relatively mild weather encourages boating, our air board concluded 
that we need more stringent standards than the national standards. Up 
to 30 percent of gasoline in these engines comes out unburned. In other 
words, of 10 gallons per hour used, about two and one half gallons of 
fuel goes into the water unburned in one hour. This has to stop.
  The November 1998 University of California study recognizes the 
emissions of MTBE into surface waters from watercraft and says that 
technologies are available that will ``significantly reduce MTBE 
loading,'' that the older carbureted two-stroke engines release much 
larger amounts of MTBE and other gasoline constituents than the fuel-
injected engines or the four-stroke engines.
  Millions of Californians should not have to drink water contaminated 
with MTBE. I believe we must take strong steps to end this 
contamination.

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