[Congressional Record (Bound Edition), Volume 145 (1999), Part 4]
[Senate]
[Pages 4975-5002]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. INHOFE:
  S. 657. A bill to amend the Internal Revenue Code of 1986 to expand 
the availability of medical savings accounts, and for other purposes; 
to the Committee on Finance.

[[Page 4976]]




             MEDICAL SAVINGS ACCOUNT EXPANSION ACT OF 1999

  Mr. INHOFE. Mr. President, I am pleased to rise today to introduce 
the Medical Savings Account Expansion Act of 1999. There has been much 
said recently regarding the need to reform health care. I agree with 
many of my colleagues that health care is indeed in need of serious 
reform. However, the nature and the scope of reforms are open to 
debate.
  During the health care debate of 1996, the Congress focused its 
efforts on attempting to provide the uninsured with insurance. Included 
in the legislation, Congress created a demonstration project in order 
to test the effectiveness of Medical Savings Accounts. However, in 
establishing the demonstration project, the Congress created numerous 
legislative roadblocks to the success of Medical Savings Accounts.
  As we are all aware, Medical Savings Accounts combine a high 
deductible insurance policy and tax exempt accounts for the purpose of 
providing health care. MSA holders use these accounts to purchase 
routine health care services. When account holders spend all of the 
funds in their account and reach their annual deductible, their health 
insurance policy kicks in. If they don't spend all the money in the 
account, they get to keep what's left, plus interest for the following 
year.
  The creation of Medical Savings Accounts was the result of a 
bipartisan coalition that many in the Senate worked long and hard to 
achieve. Medical Savings Accounts are really based on a simple 
principle that should be at the heart of the health care reform, that 
being, empowering people to take control of their own health care 
improves the system for everyone. Expanding MSAs is one small, but 
important, step in that regard. Providing individuals with an incentive 
to save money on their health care costs encourages them to be better 
consumers. The result is much needed cost control and consumer 
responsibility.
  Mr. President, I think as the Congress begins to discuss health care 
reform this year, we must move away from the debate on the regulation 
and rationing of health care and focus our energies on providing health 
care to the uninsured. Instead of concentrating our efforts on reforms 
that will likely result in less health care, we should be trying to 
expand the opportunity for health care. At the same time, we must do so 
in a cost effective and market oriented way. MSAs meet that goal.
  According to the General Accounting Office, more than 37% of the 
people who have opted to buy an MSA under the 1996 law were previously 
uninsured. That bears repeating; people who have previously been 
uninsured, are now buying health insurance. We need to make it possible 
for more people to obtain health care insurance. Now, compare those 37% 
of previously uninsured who now have health insurance with the 
projected 400,000 people who would lose their current health insurance 
if the Congress does something that would raise current health 
insurance premiums by just one percentage point and the argument 
becomes even stronger to expand the use of MSAs.
  Mr. President, the legislation I am introducing today does just that, 
it makes Medical Savings Accounts more readily available to more people 
by eliminating many of the legislative and regulatory roadblocks to 
their continued success. The GAO report referred to earlier, points out 
that one of the key reasons why MSAs have not been as successful as 
originally thought is the complexity of the law.
  Let me touch on a just few of the problems my legislation addresses. 
First is the scope of the demonstration project. Mr. President, I 
believe we should drop the 750,000 cap and extend the life of the 
project indefinitely. The 750,000 cap is merely an arbitrary number 
negotiated by the Congress. By lifting the cap and making MSAs 
permanent, we will be allowing the market to decide whether MSAs are a 
viable alternative in health insurance. The cap and the limited time 
constraint create a disincentive for insurance companies to provide 
MSAs as an option. The GAO study I cited earlier supports this 
conclusion. The majority of companies who offered MSA plans did so in 
order to preserve a share of the market. The result, few, if any, are 
aggressively marketing MSAs. If Congress is serious about testing the 
effectiveness of MSAs in the marketplace, we must free them from 
unnecessary and arbitrarily imposed restraints.
  Second, under current law, either an employer or an employee can 
contribute directly to an MSA, but not both. The legislation I am 
introducing would allow both employers and employees to contribute to a 
Medical Savings Account. This just makes sense. By limiting who can 
contribute to an individual MSA, the government has predetermined the 
limits of contributions. I think many employers would prefer to 
contribute to an individual's health care account, rather than continue 
the costly, third-party payer system. By allowing both employers and 
employees to contribute to MSAs, we will be giving more flexibility to 
Medical Savings Accounts. That flexibility will allow more people to 
obtain MSAs and undoubtedly contribute to their success.
  One of the arguments frequently made against MSAs is that they are 
for the rich. Certainly that is an understandable conclusion, given the 
fact that we limit who can contribute to MSAs. By lifting the 
contribution restrictions, individuals of all income levels will find 
MSAs a viable health care alternative.
  As I travel throughout Oklahoma, a common complaint is the access to 
quality health care and the rising cost of health care. In my state, 
managed care is not always an option for many people in rural areas. 
However, Medical Savings Accounts are an option for many families 
because MSAs give them the choice to pursue individualized health care 
that fits their needs. These are the sorts of solutions that our 
constituents have sent us to Washington to find. They are not 
interested in more government. In fact, many want less. Yet, all we 
offer them is differing degrees of government intrusion in their lives.
  Mr. President, the debate in the 105th Congress clearly demonstrated 
we are all concerned about access to health care, doctor choice, cost, 
and security. As the debate moves forward in the 106th Congress, I want 
to urge my colleagues to consider alternatives to further big-
government and to be bold enough to pursue them.
  Mr. President, I ask that the full 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. 657

       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 ``Medical Savings Account 
     Expansion Act of 1999''.

     SEC. 2. REPEAL OF RESTRICTIONS ON TAXPAYERS HAVING MEDICAL 
                   SAVINGS ACCOUNTS.

       (a) Repeal of Numerical Limitations and Termination.--
       (1) In general.--Section 220 of the Internal Revenue Code 
     of 1986 (relating to medical savings accounts) is amended by 
     striking subsections (i) and (j).
       (2) Medicare+choice.--Section 138 of such Code (relating to 
     Medicare+Choice MSA) is amended by striking subsection (f).
       (3) Conforming amendment.--Section 220(c)(1) of such Code 
     is amended by striking subparagraph (D).
       (b) Repeal of Restrictions on Individuals Who Have Medical 
     Savings Accounts.--
       (1) In general.--Section 220(c)(1)(A) of the Internal 
     Revenue Code of 1986 (relating to eligible individual) is 
     amended by inserting ``and'' at the end of clause (i), by 
     striking ``, and'' at the end of clause (ii)(II) and 
     inserting a period, and by striking clause (iii).
       (2) Conforming amendments.--
       (A) Section 220(b) of such Code is amended by striking 
     paragraph (4) and by redesignating paragraphs (5), (6), and 
     (7) as paragraphs (4), (5), and (6), respectively.
       (B) Section 220(c)(1) of such Code, as amended by 
     subsection (a)(3), is amended by striking subparagraph (C).
       (C) Section 220(c) of such Code is amended by striking 
     paragraph (4) and by redesignating paragraph (5) as paragraph 
     (4).
       (c) Repeal of Restriction on Joint Employer-Employee 
     Contributions.--Section 220(b) of the Internal Revenue Code 
     of 1986 (relating to limitations) is amended by striking 
     paragraph (4), as redesignated by subsection (b)(2)(A), and 
     by redesignating paragraphs (5) and (6) (as so redesignated) 
     as paragraphs (4) and (5), respectively.

[[Page 4977]]

       (d) 100 Percent Funding of Account Allowed.--
       (1) In general.--Section 220(b)(2) of the Internal Revenue 
     Code of 1986 (relating to monthly limitation) is amended to 
     read as follows:
       ``(2) Monthly limitation.--The monthly limitation for any 
     month is the amount equal to \1/12\ of the annual deductible 
     of the high deductible health plan of the individual as of 
     the first of such month.''.
       (2) Conforming amendment.--Section 220(d)(1)(A) of such 
     Code is amended by striking ``75 percent of''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to months 
     beginning after the date of enactment of this Act.
       (2) Compensation limit repeal.--The amendments made by 
     subsection (b)(2)(A) shall apply to taxable years beginning 
     after December 31, 1999.

     SEC. 3. REDUCTION IN HIGH DEDUCTIBLE PLAN MINIMUM ANNUAL 
                   DEDUCTIBLE

       (a) In General.--Section 220(c)(2)(A) of the Internal 
     Revenue Code of 1986 (relating to high deductible health 
     plan) is amended--
       (1) by striking ``$1,500'' in clause (i) (relating to self-
     only coverage) and inserting ``$1,000'', and
       (2) by striking ``$3,000'' in clause (ii) (relating to 
     family coverage) and inserting ``$2,000''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2000.
                                 ______
                                 
      By Mr. GRAMM (for himself, Mrs. Hutchison, Mr. Domenici, Mr. 
        Bingaman, Mr. Kyl, Mr. McCain, Mrs. Feinstein, Mrs. Boxer, and 
        Mr. Gorton):
  S. 658. A bill to authorize appropriations for the United States 
Customs Service for fiscal years 2000 and 2001; to the Committee on 
Finance.


                       protection of u.s. borders

  Mr. GRAMM. Mr. President, on behalf of Senators Hutchison, Bingaman, 
Domenici, Kyl, McCain, Boxer, Feinstein, and Gorton, I am introducing 
legislation today which will authorize the United States Customs 
Service to acquire the necessary personnel and technology to reduce 
delays at our border crossings with Mexico and Canada to no more than 
20 minutes, while strengthening our commitment to interdict illegal 
narcotics and other contraband.
  This bill represents the progress that we made in this regard in the 
last Congress, and it builds on efforts that we initiated last year. 
This legislation passed the Senate unanimously on October 8, 1998, and 
a similar companion bill passed the House of Representatives on May 19, 
1998 by a vote of 320-86. In addition to the resources dedicated to our 
nation's land borders, this bill also incorporates the efforts of 
Senators Grassley and Graham in adding resources for interdiction 
efforts in the air and along our coastline, provisions that were passed 
by the Senate in last year's bill.
  I am very concerned about the impact of narcotics trafficking on 
Texas and the nation and have worked closely with federal and state law 
enforcement officials to identify and secure the necessary resources to 
battle the onslaught of illegal drugs. At the same time, however, our 
current enforcement strategy is burdened by insufficient staffing, a 
gross underuse of vital interdiction technology, and is effectively 
closing the door to legitimate trade.
  At a time when NAFTA and the expanding world marketplace are making 
it possible for us to create more commerce, freedom and opportunity for 
people on both sides of the border, it is important that we eliminate 
the border crossing delays that are stifling these goals. In order for 
all Americans to fully enjoy the benefits of growing trade with Mexico 
and Canada, we must ensure that the Customs Service has the resources 
necessary to accomplish its mission. Customs inspections should not be 
obstacles to legitimate trade and commerce. Customs staffing needs to 
be increased significantly to facilitate the flow of substantially 
increased traffic on both the Southwestern and Northern borders, and 
these additional personnel need the modern technology that will allow 
them to inspect more cargo, more efficiently. The practical effect of 
these increases will be to open all the existing primary inspection 
lanes where congestion is a problem during peak hours and to enhance 
investigative capabilities on the Southwest border.
  Long traffic lines at our international crossings are 
counterproductive to improving our trade relationship with Mexico and 
Canada. This bill is designed to shorten those lines and promote 
legitimate commerce, while providing the Customs Service with the means 
necessary to tackle the drug trafficking operations that are now 
rampant along the 1,200-mile border that my State shares with Mexico. I 
will be speaking further to my colleagues about this initiative and 
urge their support for the bill.
  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. 658

       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 ``Drug Free Borders Act of 
     1999''.
  TITLE I--AUTHORIZATION OF APPROPRIATIONS FOR UNITED STATES CUSTOMS 
     SERVICE FOR ENHANCED INSPECTION, TRADE FACILITATION, AND DRUG 
                              INTERDICTION

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       (a)  Drug Enforcement and Other Noncommercial Operations.--
     Subparagraphs (A) and (B) of section 301(b)(1) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(1)(A) and (B)) are amended to read as follows:
       ``(A) $997,300,584 for fiscal year 2000.
       ``(B) $1,100,818,328 for fiscal year 2001.''.
       (b) Commercial Operations.--Clauses (i) and (ii) of section 
     301(b)(2)(A) of such Act (19 U.S.C. 2075(b)(2)(A)(i) and 
     (ii)) are amended to read as follows:
       ``(i) $990,030,000 for fiscal year 2000.
       ``(ii) $1,009,312,000 for fiscal year 2001.''.
       (c) Air and Marine Interdiction.--Subparagraphs (A) and (B) 
     of section 301(b)(3) of such Act (19 U.S.C. 2075(b)(3)(A) and 
     (B)) are amended to read as follows:
       ``(A) $229,001,000 for fiscal year 2000.
       ``(B) $176,967,000 for fiscal year 2001.''.
       (d) Submission of Out-Year Budget Projections.--Section 
     301(a) of such Act (19 U.S.C. 2075(a)) is amended by adding 
     at the end the following:
       ``(3) By no later than the date on which the President 
     submits to the Congress the budget of the United States 
     Government for a fiscal year, the Commissioner of Customs 
     shall submit to the Committee on Ways and Means of the House 
     of Representatives and the Committee on Finance of the Senate 
     the projected amount of funds for the succeeding fiscal year 
     that will be necessary for the operations of the Customs 
     Service as provided for in subsection (b).''.

     SEC. 102. CARGO INSPECTION AND NARCOTICS DETECTION EQUIPMENT 
                   FOR THE UNITED STATES-MEXICO BORDER, UNITED 
                   STATES-CANADA BORDER, AND FLORIDA AND GULF 
                   COAST SEAPORTS.

       (a) Fiscal Year 2000.--Of the amounts made available for 
     fiscal year 2000 under section 301(b)(1)(A) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(1)(A)), as amended by section 101(a) of this Act, 
     $100,036,000 shall be available until expended for 
     acquisition and other expenses associated with implementation 
     and deployment of narcotics detection equipment along the 
     United States-Mexico border, the United States-Canada border, 
     and Florida and the Gulf Coast seaports, as follows:
       (1) United states-mexico border.--For the United States-
     Mexico border, the following:
       (A) $6,000,000 for 8 Vehicle and Container Inspection 
     Systems (VACIS).
       (B) $11,000,000 for 5 mobile truck x-rays with transmission 
     and backscatter imaging.
       (C) $12,000,000 for the upgrade of 8 fixed-site truck x-
     rays from the present energy level of 450,000 electron volts 
     to 1,000,000 electron volts (1-MeV).
       (D) $7,200,000 for 8 1-MeV pallet x-rays.
       (E) $1,000,000 for 200 portable contraband detectors 
     (busters) to be distributed among ports where the current 
     allocations are inadequate.
       (F) $600,000 for 50 contraband detection kits to be 
     distributed among all southwest border ports based on traffic 
     volume.
       (G) $500,000 for 25 ultrasonic container inspection units 
     to be distributed among all ports receiving liquid-filled 
     cargo and to ports with a hazardous material inspection 
     facility.
       (H) $2,450,000 for 7 automated targeting systems.
       (I) $360,000 for 30 rapid tire deflator systems to be 
     distributed to those ports where port runners are a threat.
       (J) $480,000 for 20 portable Treasury Enforcement 
     Communications Systems (TECS) terminals to be moved among 
     ports as needed.
       (K) $1,000,000 for 20 remote watch surveillance camera 
     systems at ports where there are suspicious activities at 
     loading docks, vehicle queues, secondary inspection lanes,

[[Page 4978]]

     or areas where visual surveillance or observation is 
     obscured.
       (L) $1,254,000 for 57 weigh-in-motion sensors to be 
     distributed among the ports with the greatest volume of 
     outbound traffic.
       (M) $180,000 for 36 AM traffic information radio stations, 
     with 1 station to be located at each border crossing.
       (N) $1,040,000 for 260 inbound vehicle counters to be 
     installed at every inbound vehicle lane.
       (O) $950,000 for 38 spotter camera systems to counter the 
     surveillance of customs inspection activities by persons 
     outside the boundaries of ports where such surveillance 
     activities are occurring.
       (P) $390,000 for 60 inbound commercial truck transponders 
     to be distributed to all ports of entry.
       (Q) $1,600,000 for 40 narcotics vapor and particle 
     detectors to be distributed to each border crossing.
       (R) $400,000 for license plate reader automatic targeting 
     software to be installed at each port to target inbound 
     vehicles.
       (S) $1,000,000 for a demonstration site for a high-energy 
     relocatable rail car inspection system with an x-ray source 
     switchable from 2,000,000 electron volts (2-MeV) to 6,000,000 
     electron volts (6-MeV) at a shared Department of Defense 
     testing facility for a two-month testing period.
       (2) United states-canada border.--For the United States-
     Canada border, the following:
       (A) $3,000,000 for 4 Vehicle and Container Inspection 
     Systems (VACIS).
       (B) $8,800,000 for 4 mobile truck x-rays with transmission 
     and backscatter imaging.
       (C) $3,600,000 for 4 1-MeV pallet x-rays.
       (D) $250,000 for 50 portable contraband detectors (busters) 
     to be distributed among ports where the current allocations 
     are inadequate.
       (E) $300,000 for 25 contraband detection kits to be 
     distributed among ports based on traffic volume.
       (F) $240,000 for 10 portable Treasury Enforcement 
     Communications Systems (TECS) terminals to be moved among 
     ports as needed.
       (G) $400,000 for 10 narcotics vapor and particle detectors 
     to be distributed to each border crossing based on traffic 
     volume.
       (H) $600,000 for 30 fiber optic scopes.
       (I) $250,000 for 50 portable contraband detectors (busters) 
     to be distributed among ports where the current allocations 
     are inadequate;
       (J) $3,000,000 for 10 x-ray vans with particle detectors.
       (K) $40,000 for 8 AM loop radio systems.
       (L) $400,000 for 100 vehicle counters.
       (M) $1,200,000 for 12 examination tool trucks.
       (N) $2,400,000 for 3 dedicated commuter lanes.
       (O) $1,050,000 for 3 automated targeting systems.
       (P) $572,000 for 26 weigh-in-motion sensors.
       (Q) $480,000 for 20 portable Treasury Enforcement 
     Communication Systems (TECS).
       (3) Florida and gulf coast seaports.--For Florida and the 
     Gulf Coast seaports, the following:
       (A) $4,500,000 for 6 Vehicle and Container Inspection 
     Systems (VACIS).
       (B) $11,800,000 for 5 mobile truck x-rays with transmission 
     and backscatter imaging.
       (C) $7,200,000 for 8 1-MeV pallet x-rays.
       (D) $250,000 for 50 portable contraband detectors (busters) 
     to be distributed among ports where the current allocations 
     are inadequate.
       (E) $300,000 for 25 contraband detection kits to be 
     distributed among ports based on traffic volume.
       (b) Fiscal Year 2001.--Of the amounts made available for 
     fiscal year 2001 under section 301(b)(1)(B) of the Customs 
     Procedural Reform and Simplification Act of 1978 (19 U.S.C. 
     2075(b)(1)(B)), as amended by section 101(a) of this Act, 
     $9,923,500 shall be for the maintenance and support of the 
     equipment and training of personnel to maintain and support 
     the equipment described in subsection (a).
       (c) Acquisition of Technologically Superior Equipment; 
     Transfer of Funds.--
       (1) In general.--The Commissioner of Customs may use 
     amounts made available for fiscal year 2000 under section 
     301(b)(1)(A) of the Customs Procedural Reform and 
     Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as 
     amended by section 101(a) of this Act, for the acquisition of 
     equipment other than the equipment described in subsection 
     (a) if such other equipment--
       (A)(i) is technologically superior to the equipment 
     described in subsection (a); and
       (ii) will achieve at least the same results at a cost that 
     is the same or less than the equipment described in 
     subsection (a); or
       (B) can be obtained at a lower cost than the equipment 
     described in subsection (a).
       (2) Transfer of funds.--Notwithstanding any other provision 
     of this section, the Commissioner of Customs may reallocate 
     an amount not to exceed 10 percent of--
       (A) the amount specified in any of subparagraphs (A) 
     through (R) of subsection (a)(1) for equipment specified in 
     any other of such subparagraphs (A) through (R);
       (B) the amount specified in any of subparagraphs (A) 
     through (Q) of subsection (a)(2) for equipment specified in 
     any other of such subparagraphs (A) through (Q); and
       (C) the amount specified in any of subparagraphs (A) 
     through (E) of subsection (a)(3) for equipment specified in 
     any other of such subparagraphs (A) through (E).

     SEC. 103. PEAK HOURS AND INVESTIGATIVE RESOURCE ENHANCEMENT 
                   FOR THE UNITED STATES-MEXICO AND UNITED STATES-
                   CANADA BORDERS, FLORIDA AND GULF COAST 
                   SEAPORTS, AND THE BAHAMAS.

       Of the amounts made available for fiscal years 2000 and 
     2001 under subparagraphs (A) and (B) of section 301(b)(1) of 
     the Customs Procedural Reform and Simplification Act of 1978 
     (19 U.S.C. 2075(b)(1)(A) and (B)), as amended by section 
     101(a) of this Act, $159,557,000, including $5,673,600, until 
     expended, for investigative equipment, for fiscal year 2000 
     and $220,351,000 for fiscal year 2001 shall be available for 
     the following:
       (1) A net increase of 535 inspectors, 120 special agents, 
     and 10 intelligence analysts for the United States-Mexico 
     border and 375 inspectors for the United States-Canada 
     border, in order to open all primary lanes on such borders 
     during peak hours and enhance investigative resources.
       (2) A net increase of 285 inspectors and canine enforcement 
     officers to be distributed at large cargo facilities as 
     needed to process and screen cargo (including rail cargo) and 
     reduce commercial waiting times on the United States-Mexico 
     border and a net increase of 125 inspectors to be distributed 
     at large cargo facilities as needed to process and screen 
     cargo (including rail cargo) and reduce commercial waiting 
     times on the United States-Canada border.
       (3) A net increase of 40 inspectors at sea ports in 
     southeast Florida to process and screen cargo.
       (4) A net increase of 70 special agent positions, 23 
     intelligence analyst positions, 9 support staff, and the 
     necessary equipment to enhance investigation efforts targeted 
     at internal conspiracies at the Nation's seaports.
       (5) A net increase of 360 special agents, 30 intelligence 
     analysts, and additional resources to be distributed among 
     offices that have jurisdiction over major metropolitan drug 
     or narcotics distribution and transportation centers for 
     intensification of efforts against drug smuggling and money-
     laundering organizations.
       (6) A net increase of 2 special agent positions to re-
     establish a Customs Attache office in Nassau.
       (7) A net increase of 62 special agent positions and 8 
     intelligence analyst positions for maritime smuggling 
     investigations and interdiction operations.
       (8) A net increase of 50 positions and additional resources 
     to the Office of Internal Affairs to enhance investigative 
     resources for anticorruption efforts.
       (9) The costs incurred as a result of the increase in 
     personnel hired pursuant to this section.

     SEC. 104. AIR AND MARINE OPERATION AND MAINTENANCE FUNDING.

       (a) Fiscal Year 2000.--Of the amounts made available for 
     fiscal year 2000 under subparagraphs (A) and (B) of section 
     301(b)(3) of the Customs Procedural Reform and Simplification 
     Act of 1978 (19 U.S.C. 2075(b)(3) (A) and (B)) as amended by 
     section 101(c) of this Act, $130,513,000 shall be available 
     until expended for the following:
       (1) $96,500,000 for Customs aircraft restoration and 
     replacement initiative.
       (2) $15,000,000 for increased air interdiction and 
     investigative support activities.
       (3) $19,013,000 for marine vessel replacement and related 
     equipment.
       (b) Fiscal Year 2001.--Of the amounts made available for 
     fiscal year 2001 under subparagraphs (A) and (B) of section 
     301(b)(3) of the Customs Procedural Reform and Simplification 
     Act of 1978 (19 U.S.C. 2075(b)(3) (A) and (B)) as amended by 
     section 101(c) of this Act, $75,524,000 shall be available 
     until expended for the following:
       (1) $36,500,000 for Customs Service aircraft restoration 
     and replacement.
       (2) $15,000,000 for increased air interdiction and 
     investigative support activities.
       (3) $24,024,000 for marine vessel replacement and related 
     equipment.

     SEC. 105. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.

       As part of the annual performance plan for each of the 
     fiscal years 2000 and 2001 covering each program activity set 
     forth in the budget of the United States Customs Service, as 
     required under section 1115 of title 31, United States Code, 
     the Commissioner of Customs shall establish performance goals 
     and performance indicators, and comply with all other 
     requirements contained in paragraphs (1) through (6) of 
     subsection (a) of such section with respect to each of the 
     activities to be carried out pursuant to sections 102 and 103 
     of this Act.

     SEC. 106. COMMISSIONER OF CUSTOMS SALARY.

       (a) In General.--
       (1) Section 5315 of title 5, United States Code, is amended 
     by striking the following item:
       ``Commissioner of Customs, Department of Treasury.''.
       (2) Section 5314 of title 5, United States Code, is amended 
     by inserting the following item:
       ``Commissioner of Customs, Department of Treasury.''.

[[Page 4979]]

       (b) Effective Date.--The amendments made by this section 
     shall apply to fiscal year 1999 and thereafter.

     SEC. 107. PASSENGER PRECLEARANCE SERVICES.

       (a) Continuation of Preclearance Services.--Notwithstanding 
     section 13031(f) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(f)) or any other 
     provision of law, the Customs Service shall, without regard 
     to whether a passenger processing fee is collected from a 
     person departing for the United States from Canada and 
     without regard to whether funds are appropriated pursuant to 
     subsection (b), provide the same level of enhanced 
     preclearance customs services for passengers arriving in the 
     United States aboard commercial aircraft originating in 
     Canada as the Customs Service provided for such passengers 
     during fiscal year 1997.
       (b) Authorization of Appropriations for Preclearance 
     Services.--Notwithstanding section 13031(f) of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
     U.S.C. 58c(f)) or any other provision of law, there are 
     authorized to be appropriated, from the date of enactment of 
     this Act through September 30, 2001, such sums as may be 
     necessary for the Customs Service to ensure that it will 
     continue to provide the same, and where necessary increased, 
     levels of enhanced preclearance customs services as the 
     Customs Service provided during fiscal year 1997, in 
     connection with the arrival in the United States of 
     passengers aboard commercial aircraft whose flights 
     originated in Canada.
                  TITLE II--CUSTOMS PERFORMANCE REPORT

     SEC. 201. CUSTOMS PERFORMANCE REPORT.

       (a) In General.--Not later than 120 days after the date of 
     enactment of this Act, the Commissioner of Customs shall 
     prepare and submit to the appropriate committees the report 
     described in subsection (b).
       (b) Report Described.--The report described in this 
     subsection shall include the following:
       (1) Identification of objectives; establishment of 
     priorities.--
       (A) An outline of the means the Customs Service intends to 
     use to identify enforcement priorities and trade facilitation 
     objectives.
       (B) The reasons for selecting the objectives contained in 
     the most recent plan submitted by the Customs Service 
     pursuant to section 1115 of title 31, United States Code.
       (C) The performance standards against which the appropriate 
     committees can assess the efforts of the Customs Service in 
     reaching the goals outlined in the plan described in 
     subparagraph (B).
       (2) Implementation of the Customs Modernization Act.--
       (A) A review of the Customs Service's implementation of 
     title VI of the North American Free Trade Agreement 
     Implementation Act, commonly known as the ``Customs 
     Modernization Act'', and the reasons why elements of that 
     Act, if any, have not been implemented.
       (B) A review of the effectiveness of the informed 
     compliance strategy in obtaining higher levels of compliance, 
     particularly compliance by those industries that have been 
     the focus of the most intense efforts by the Customs Service 
     to ensure compliance with the Customs Modernization Act.
       (C) A summary of the results of the reviews of the initial 
     industry-wide compliance assessments conducted by the Customs 
     Service as part of the agency's informed compliance 
     initiative.
       (3) Improvement of commercial operations.--
       (A) Identification of standards to be used in assessing the 
     performance and efficiency of the commercial operations of 
     the Customs Service, including entry and inspection 
     procedures, classification, valuation, country-of-origin 
     determinations, and duty drawback determinations.
       (B) Proposals for--
       (i) improving the performance of the commercial operations 
     of the Customs Service, particularly the functions described 
     in subparagraph (A), and
       (ii) eliminating lengthy delays in obtaining rulings and 
     other forms of guidance on United States customs law, 
     regulations, procedures, or policies.
       (C) Alternative strategies for ensuring that United States 
     importers, exporters, customs brokers, and other members of 
     the trade community have the information necessary to comply 
     with the customs laws of the United States and to conduct 
     their business operations accordingly.
       (4) Review of enforcement responsibilities.--
       (A) A review of the enforcement responsibilities of the 
     Customs Service.
       (B) An assessment of the degree to which the current 
     functions of the Customs Service overlap with the functions 
     of other agencies and an identification of ways in which the 
     Customs Service can avoid duplication of effort.
       (C) A description of the methods used to ensure against 
     misuse of personal search authority with respect to persons 
     entering the United States at authorized ports of entry.
       (5) Strategy for comprehensive drug interdiction.--
       (A) A comprehensive strategy for the Customs Service's role 
     in United States drug interdiction efforts.
       (B) Identification of the respective roles of cooperating 
     agencies, such as the Drug Enforcement Administration, the 
     Federal Bureau of Investigation, the Coast Guard, and the 
     intelligence community, including--
       (i) identification of the functions that can best be 
     performed by the Customs Service and the functions that can 
     best be performed by agencies other than the Customs Service; 
     and
       (ii) a description of how the Customs Service plans to 
     allocate the additional drug interdiction resources 
     authorized by the Drug Free Borders Act of 1999.
       (6) Enhancement of cooperation with the trade community.--
       (A) Identification of ways to expand cooperation with 
     United States importers and customs brokers, United States 
     and foreign carriers, and other members of the international 
     trade and transportation communities to improve the detection 
     of contraband before it leaves a foreign port destined for 
     the United States.
       (B) Identification of ways to enhance the flow of 
     information between the Customs Service and industry in order 
     to--
       (i) achieve greater awareness of potential compliance 
     threats;
       (ii) improve the design and efficiency of the commercial 
     operations of the Customs Service;
       (iii) foster account-based management;
       (iv) eliminate unnecessary and burdensome regulations; and
       (v) establish standards for industry compliance with 
     customs laws.
       (7) Allocation of resources.--
       (A) An outline of the basis for the current allocation of 
     inspection and investigative personnel by the Customs 
     Service.
       (B) Identification of the steps to be taken to ensure that 
     the Customs Service can detect any misallocation of the 
     resources described in subparagraph (A) among various ports 
     and a description of what means the Customs Service has for 
     reallocating resources within the agency to meet particular 
     enforcement demands or commercial operations needs.
       (8) Automation and information technology.--
       (A) Identification of the automation needs of the Customs 
     Service and an explanation of the current state of the 
     Automated Commercial System and the status of implementing a 
     replacement for that system.
       (B) A comprehensive strategy for reaching the technology 
     goals of the Customs Service, including--
       (i) an explanation of the proposed architecture of any 
     replacement for the Automated Commercial System and how the 
     architecture of the proposed replacement system best serves 
     the core functions of the Customs Service;
       (ii) identification of public and private sector automation 
     projects that are comparable and that can be used as a 
     benchmark against which to judge the progress of the Customs 
     Service in meeting its technology goals;
       (iii) an estimate of the total cost for each automation 
     project currently underway at the Customs Service and a 
     timetable for the implementation of each project; and
       (iv) a summary of the options for financing each automation 
     project.
       (9) Personnel policies.--
       (A) An overview of current personnel practices, including a 
     description of--
       (i) performance standards;
       (ii) the criteria for promotion and termination;
       (iii) the process for investigating complaints of bias and 
     sexual harassment;
       (iv) the criteria used for conducting internal 
     investigations;
       (v) the protection, if any, that is provided for 
     whistleblowers; and
       (vi) the methods used to discover and eliminate corruption 
     within the Customs Service.
       (B) Identification of workforce needs for the future and 
     training needed to ensure Customs Service personnel stay 
     abreast of developments in international business operations 
     and international trade that affect the operations of the 
     Customs Service, including identification of any situations 
     in which current personnel policies or practices may impede 
     achievement of the goals of the Customs Service with respect 
     to both enforcement and commercial operations.
       (c) Appropriate Committees.--For purposes of this section, 
     the term ``appropriate committees'' means the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives.
                                 ______
                                 
      By Mr. MOYNIHAN (for himself, Mr. Robb and Mr. Kerrey):
  S. 659. A bill to amend the Internal Revenue Code of 1986 to require 
pension plans to provide adequate notice to individuals whose future 
benefit accruals are being significantly reduced, and for other 
purposes; to the Committee on Finance.


                 the pension right to know act of 1999

  Mr. MOYNIHAN. Mr. President, I rise today to introduce legislation to 
provide greater disclosure to employees

[[Page 4980]]

about the impact on their retirement benefits of pension plan 
conversions.
  Recent media accounts have reported that many large companies in 
America are converting their traditional defined benefit pension plans 
to something called ``cash balance plans.'' A cash balance plan is a 
hybrid arrangement combining certain features of ``defined 
contribution'' and ``defined benefit'' plans. Like defined contribution 
plans, they provide each employee with an account in which his or her 
benefits accrue. But cash balance plans are actually defined benefit 
plans, and therefore provide a benefit for life which is insured by the 
Pension Benefit Guaranty Corporation.
  Cash balance plans, however, differ from other defined benefit plans 
in the calculation of benefits. Whereas the value of an employee's 
retirement benefit in a traditional defined benefit plan grows slowly 
in the early years and more rapidly as one approaches retirement, cash 
balance plans decrease this later-year growth and increase the early-
year growth. Consequently, younger employees tend to do better under 
cash balance plans than under traditional plans, while older employees 
typically do worse. In some cases, upon conversion to a cash balance 
account an older worker's account balance may remain static for years--
typically referred to as the ``wear away'' period.
  It appears that very few workers who have experienced the conversion 
of their company retirement plan to a cash balance arrangement 
understand the differences between the old and new plans. Those who do 
often complain that the new plans treat older workers unfairly. One 49-
year-old engineer profiled by the Wall Street Journal--a rare employee 
who knows how to calculate pension benefits--determined that his 
pension value dropped by $56,000 the day his company converted to a 
cash balance plan.
  Even more disturbing are complaints from some employees that their 
employers obscured the adverse effects of plan amendments. When an 
employer changes the pension plan, the employees have a right to know 
the consequences. There should be no surprises when it is time to 
retire. Unfortunately, current law requires little in the way of 
disclosure when a company changes its pension plan. Section 204(h) of 
the Employee Retirement Income Security Act (ERISA) requires employers 
to inform employees of a change to a pension plan resulting in a 
reduction in future benefit accruals. But that is all. It does not 
require specifics. The 204(h) disclosure can be, and often is, 
satisfied with a brief statement buried deep in a company communication 
to employees. It is imperative that we increase these disclosure 
requirements regarding reductions in pension benefits.
  The bill I am introducing today would require employers with 1,000 or 
more employees to provide a ``statement of benefit change'' when 
adopting plan amendments which significantly reduce benefits. The 
statement of benefit change would provide a comparison, under the old 
and new versions of the plan, of the following benefit measures; the 
employee's accrued benefit and present value of accrued benefit at the 
time of conversion; and the projected accrued benefit and projected 
present value of accrued benefit three years, five years, and ten years 
after conversion and at normal retirement age.
  These benefit measures are standard concepts which will be well 
understood by pension administrators, actuaries and others who work 
with pensions. They will give the employee a clear picture of the 
difference between the old and new plans immediately, periodically over 
a ten-year period, and at retirement. The purpose of the three, five 
and ten-year comparisons is to disclose any ``wear away'' period, in 
which an employee would work without gaining any new benefits. Using 
these comparisons, employees can get a clear picture of the relative 
merits of the two plans.
  In preparing this bill, my staff has consulted a number of actuaries 
and pension attorneys. I believe it is a good approach to resolving the 
problems I have discussed, and I am happy to work with others to 
incorporate suggestions to further improve the bill.
  Of course, many call this measure as intrusive or unnecessary. Some 
employer groups have criticized the idea of requiring individualized 
benefits calculations for every employee, saying that this requires 
reviewing each employee's salary history. But that seems a strange 
complaint given that we are talking about cash balance plans, which 
already require highly individualized calculations. If an employer can 
provide personalized account balances under a cash balance arrangement, 
then the employer can provide such information for the old plan.
  Moreover, recently completed regulations appear already to 
contemplate individualized comparisons. Regulation 1.411(d)-6, just 
finalized by the Internal Revenue Service, requires that in order to 
determine if a reduction in future benefit accrual is ``significant,'' 
employers must compare the annual benefit at retirement age under the 
amended plan with the same benefit under the plan prior to amendment. 
Therefore, the concept of benefit comparisons is not a new one.
  And indeed, some companies are proving by their actions that benefit 
comparisons are not unduly burdensome. Kodak, the prominent employer 
headquartered in Rochester, New York, recently announced that it will 
convert to a cash balance plan, and that it will give its 35,000 
participants in the company-sponsored pension plan the choice between 
the old plan and the new. To help employees make an informed decision, 
Kodak will provide every plan participant with an individualized 
comparison of his or her benefits under the old and new versions of the 
plan. The company is also providing computer software that will allow 
employees to make the comparisons themselves. That is the difference 
between corporate behavior that is responsible and corporate behavior 
that is unscrupulous. As usual, Kodak sets a fine example.
  I believe that such disclosure not only is in the best interest of 
employees, but also of the employer. Several class action lawsuits have 
been filed in the last three years challenging conversions to cash 
balance plans. These suits will likely cost hundreds of thousands, if 
not millions, of dollars in attorneys' fees. But with proper 
disclosure, they might not have occurred.
  In closing, let me be clear about one thing. I take no position on 
the underlying merit of cash balance plans. Ours is a voluntary pension 
system, and companies must do what is right for them and their 
employees. But I feel strongly that companies must fully and 
comprehensibly inform their employees regarding whatever pension 
benefits the company offers. Companies have no right to misrepresent 
the projected benefit employees will receive under a cash balance plan 
or any other pension arrangement.
  It is time to let the sun shine on pension plan conversions. I urge 
the Senate to support this important legislation.
  I ask unanimous consent that the text of my bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 659

       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 ``Pension Right to Know Act''.

     SEC. 2. NOTICE REQUIREMENTS FOR LARGE PENSION PLANS 
                   SIGNIFICANTLY REDUCING FUTURE PENSION BENEFIT 
                   ACCRUALS.

       (a) Plan Requirement.--Section 401(a) of the Internal 
     Revenue Code of 1986 (relating to qualified pension, profit-
     sharing, and stock bonus plans) is amended by inserting after 
     paragraph (34) the following new paragraph:
       ``(35) Notice requirements for large defined benefit plans 
     significantly reducing future benefit accruals.--
       ``(A) In general.--If a large defined benefit plan adopts 
     an amendment which has the effect of significantly reducing 
     the rate of future benefit accrual of 1 or more participants, 
     a trust which is part of such plan shall not constitute a 
     qualified trust under this

[[Page 4981]]

     section unless, after adoption of such amendment and not less 
     than 15 days before its effective date, the plan 
     administrator provides--
       ``(i) a written statement of benefit change described in 
     subparagraph (B) to each applicable individual, and
       ``(ii) a written notice setting forth the plan amendment 
     and its effective date to each employee organization 
     representing participants in the plan.

     Any such notice may be provided to a person designated, in 
     writing, by the person to which it would otherwise be 
     provided. The plan administrator shall not be treated as 
     failing to meet the requirements of this subparagraph merely 
     because the statement or notice is provided before the 
     adoption of the plan amendment if no material modification of 
     the amendment occurs before the amendment is adopted.
       ``(B) Statement of benefit change.--A statement of benefit 
     change described in this subparagraph shall--
       ``(i) be written in a manner calculated to be understood by 
     the average plan participant, and
       ``(ii) include the information described in subparagraph 
     (C).
       ``(C) Information contained in statement of benefit 
     change.--The information described in this subparagraph 
     includes the following:
       ``(i) Notice setting forth the plan amendment and its 
     effective date.
       ``(ii) A comparison of the following amounts under the plan 
     with respect to an applicable individual, determined both 
     with and without regard to the plan amendment:

       ``(I) The accrued benefit and the present value of the 
     accrued benefit as of the effective date.
       ``(II) The projected accrued benefit and the projected 
     present value of the accrued benefit as of the date which is 
     3 years, 5 years, and 10 years from the effective date and as 
     of the normal retirement age.

       ``(iii) A table of all annuity factors used to calculate 
     benefits under the plan, presented in the form provided in 
     section 72 and the regulations thereunder.

     Benefits described in clause (ii) shall be stated separately 
     and shall be calculated by using the applicable mortality 
     table and the applicable interest rate under section 
     417(e)(3)(A).
       ``(D) Large defined benefit plan; applicable individual.--
     For purposes of this paragraph--
       ``(i) Large defined benefit plan.--The term `large defined 
     benefit plan' means any defined benefit plan which had 1,000 
     or more participants who had accrued a benefit under the plan 
     (whether or not vested) as of the last day of the plan year 
     preceding the plan year in which the plan amendment becomes 
     effective.
       ``(ii) Applicable individual.--The term `applicable 
     individual' means--

       ``(I) each participant in the plan, and
       ``(II) each beneficiary who is an alternate payee (within 
     the meaning of section 414(p)(8)) under an applicable 
     qualified domestic relations order (within the meaning of 
     section 414(p)(1)(A)).

       ``(E) Accrued benefit; projected retirement benefit.--For 
     purposes of this paragraph--
       ``(i) Present value of accrued benefit.--The present value 
     of an accrued benefit of any applicable individual shall be 
     calculated as if the accrued benefit were in the form of a 
     single life annuity commencing at the participant's normal 
     retirement age (and by taking into account any early 
     retirement subsidy).
       ``(ii) Projected accrued benefit.--

       ``(I) In general.--The projected accrued benefit of any 
     applicable individual shall be calculated as if the benefit 
     were payable in the form of a single life annuity commencing 
     at the participant's normal retirement age (and by taking 
     into account any early retirement subsidy).
       ``(II) Compensation and other assumptions.--Such benefit 
     shall be calculated by assuming that compensation and all 
     other benefit factors would increase for each plan year 
     beginning after the effective date of the plan amendment at a 
     rate equal to the median average of the CPI increase 
     percentage (as defined in section 215(i) of the Social 
     Security Act) for the 5 calendar years immediately preceding 
     the calendar year before the calendar year in which such 
     effective date occurs.
       ``(III) Benefit factors.--For purposes of subclause (II), 
     the term `benefit factors' means social security benefits and 
     all other relevant factors under section 411(b)(1)(A) used to 
     compute benefits under the plan which had increased from the 
     2d plan year preceding the plan year in which the effective 
     date of the plan amendment occurs to the 1st such preceding 
     plan year.

       ``(iii) Normal retirement age.--The term `normal retirement 
     age' means the later of--

       ``(I) the date determined under section 411(a)(8), or
       ``(II) the date a plan participant attains age 62.''

       (b) Amendments to ERISA.--
       (1) Benefit statement requirement.--Section 204(h) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1054(h)) is amended by adding at the end the following new 
     paragraphs:
       ``(3)(A) If paragraph (1) applies to the adoption of a plan 
     amendment by a large defined benefit plan, the plan 
     administrator shall, after adoption of such amendment and not 
     less than 15 days before its effective date, provide with the 
     notice under paragraph (1) a written statement of benefit 
     change described in subparagraph (B) to each applicable 
     individual.
       ``(B) A statement of benefit change described in this 
     subparagraph shall--
       ``(i) be written in a manner calculated to be understood by 
     the average plan participant, and
       ``(ii) include the information described in subparagraph 
     (C).
       ``(C) The information described in this subparagraph 
     includes the following:
       ``(i) A comparison of the following amounts under the plan 
     with respect to an applicable individual, determined both 
     with and without regard to the plan amendment:
       ``(I) The accrued benefit and the present value of the 
     accrued benefit as of the effective date.
       ``(II) The projected accrued benefit and the projected 
     present value of the accrued benefit as of the date which is 
     3 years, 5 years, and 10 years from the effective date and as 
     of the normal retirement age.
       ``(ii) A table of all annuity factors used to calculate 
     benefits under the plan, presented in the form provided in 
     section 72 of the Internal Revenue Code of 1986 and the 
     regulations thereunder.

     Benefits described in clause (i) shall be stated separately 
     and shall be calculated by using the applicable mortality 
     table and the applicable interest rate under section 
     417(e)(3)(A) of such Code.
       ``(D) For purposes of this paragraph--
       ``(i) The term `large defined benefit plan' means any 
     defined benefit plan which had 1,000 or more participants who 
     had accrued a benefit under the plan (whether or not vested) 
     as of the last day of the plan year preceding the plan year 
     in which the plan amendment becomes effective.
       ``(ii) The term `applicable individual' means an individual 
     described in subparagraph (A) or (B) of paragraph (1).
       ``(E) For purposes of this paragraph--
       ``(i) The present value of an accrued benefit of any 
     applicable individual shall be calculated as if the accrued 
     benefit were in the form of a single life annuity commencing 
     at the participant's normal retirement age (and by taking 
     into account any early retirement subsidy).
       ``(ii)(I) The projected accrued benefit of any applicable 
     individual shall be calculated as if the benefit were payable 
     in the form of a single life annuity commencing at the 
     participant's normal retirement age (and by taking into 
     account any early retirement subsidy).
       ``(II) Such benefit shall be calculated by assuming that 
     compensation and all other benefit factors would increase for 
     each plan year beginning after the effective date of the plan 
     amendment at a rate equal to the median average of the CPI 
     increase percentage (as defined in section 215(i) of the 
     Social Security Act) for the 5 calendar years immediately 
     preceding the calendar year before the calendar year in which 
     such effective date occurs.
       ``(III) For purposes of subclause (II), the term `benefit 
     factors' means social security benefits and all other 
     relevant factors under section 204(b)(1)(A) used to compute 
     benefits under the plan which had increased from the 2d plan 
     year preceding the plan year in which the effective date of 
     the plan amendment occurs to the 1st such preceding plan 
     year.
       ``(iii) The term `normal retirement age' means the later 
     of--
       ``(I) the date determined under section 3(24), or
       ``(II) the date a plan participant attains age 62.
       ``(4) A plan administrator shall not be treated as failing 
     to meet the requirements of this subsection merely because 
     the notice or statement is provided before the adoption of 
     the plan amendment if no material modification of the 
     amendment occurs before the amendment is adopted.''
       (2) Conforming amendment.--Section 204(h)(1) of such Act 
     (29 U.S.C. 1054(h)(1)) is amended by inserting ``(including 
     any written statement of benefit change if required by 
     paragraph (3))'' after ``written notice''.
       (c) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to plan amendments taking effect in plan years 
     beginning on or after the earlier of--
       (A) the later of--
       (i) January 1, 1999, or
       (ii) the date on which the last of the collective 
     bargaining agreements pursuant to which the plan is 
     maintained terminates (determined without regard to any 
     extension thereof after the date of the enactment of this 
     Act), or
       (B) January 1, 2001.
       (2) Exception where notice given.--The amendments made by 
     this section shall not apply to any plan amendment for which 
     written notice was given to participants or their 
     representatives before March 17, 1999, without regard to 
     whether the amendment was adopted before such date.

[[Page 4982]]

       (3) Special rule.--The period for providing any notice 
     required by, or any notice the contents of which are changed 
     by, the amendments made by this Act shall not end before the 
     date which is 6 months after the date of the enactment of 
     this Act.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Craig, Ms. Mikulski, Mr. 
        Thurmond, Mr. Daschle, Ms. Collins, Mr. Johnson, Ms. Snowe, Mr. 
        Dorgan, Mr. Mack, Mr. Hollings, Mr. Reed, Mr. Conrad, and Mr. 
        Crapo):
  S. 660. A bill to amend title XVIII of the Social Security Act to 
provide for coverage under part B of the medicare program of medical 
nutrition therapy services furnished by registered dietitians and 
nutrition professionals; to the Committee on Finance.


             Medicare Medical Nutrition Therapy Act of 1999

  Mr. BINGAMAN. Mr. President, I rise today to introduce the Medical 
Nutrition Therapy Act of 1999 on behalf of myself, my friend and 
colleague from Idaho, Senator Craig, and a bipartisan group of 
additional Senators.
  This bipartisan measure provides for coverage under Part B of the 
Medicare program for medical nutrition therapy services by a registered 
dietician. Medical nutrition therapy is generally defined as the 
assessment of patient nutritional status followed by therapy, ranging 
from diet modification to administration of specialized nutrition 
therapies such as intravenous or tube feedings. It has proven to be a 
medically necessary and cost-effective way of treating and controlling 
many disease entities such as diabetes, renal disease, cardiovascular 
disease and severe burns.
  Currently there is no consistent Part B coverage policy for medical 
nutrition and this legislation will bring needed uniformity to the 
delivery of this important care, as well as save taxpayer money. 
Coverage for medical nutrition therapy can save money by reducing 
hospital admissions, shortening hospital stays, decreasing the number 
of complications, and reducing the need for physician follow-up visits.
  The treatment of patients with diabetes and cardiovascular disease 
accounts for a full 60% of Medicare expenditures. I want to use 
diabetes as an example for the need for this legislation. There are 
very few families who are not touched by diabetes. The burden of 
diabetes is disproportionately high among ethnic minorities in the 
United States. According to the American Journal of Epidemiology, 
mortality due to diabetes is higher nationwide among blacks than 
whites. It is higher among American Indians than among any other ethnic 
group.
  In my state of New Mexico, Native Americans are experiencing an 
epidemic of Type II diabetes. Medical nutrition therapy is integral to 
their diabetes care. In fact, information from the Indian Health 
Service shows that medical nutrition therapy provided by professional 
dieticians results in significant improvements in medical outcomes in 
people with Type II diabetes. For example, complications of diabetes 
such as end stage renal failure that leads to dialysis can be prevented 
with adequate intervention. Currently, the number of dialysis patients 
in the Navajo population is doubling every five years. Mr, President, 
we must place our dollars in the effective, preventive treatment of 
medical nutrition therapy rather than face the grim reality of having 
to continue to build new dialysis units.
  Ensuring the solvency of the Medicare Part A Trust Fund is one of our 
most difficult challenges and one that calls for creative, effective 
solutions. Coverage for medical nutrition therapy is one important way 
to help address that challenge. It is exactly the type of cost 
effective care we should encourage. It will satisfy two of our most 
important priorities in Medicare: providing program savings while 
maintaining a high level of quality care.
  Mr. President, 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. 660

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

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Medicare 
     Medical Nutrition Therapy Act of 1999''.
       (b) Findings.--Congress finds as follows:
       (1) Medical nutrition therapy is a medically necessary and 
     cost-effective way of treating and controlling many diseases 
     and medical conditions affecting the elderly, including HIV, 
     AIDS, cancer, kidney disease, diabetes, heart disease, 
     pressure ulcers, severe burns, and surgical wounds.
       (2) Medical nutrition therapy saves health care costs by 
     speeding recovery and reducing the incidence of 
     complications, resulting in fewer hospitalizations, shorter 
     hospital stays, and reduced drug, surgery, and treatment 
     needs.
       (3) A study conducted by The Lewin Group shows that, after 
     the third year of coverage, savings would be greater than 
     costs for coverage of medical nutrition therapy for all 
     medicare beneficiaries, with savings projected to grow 
     steadily in following years.
       (4) The Agency for Health Care Policy and Research has 
     indicated in its practice guidelines that nutrition is key to 
     both the prevention and the treatment of pressure ulcers 
     (also called bed sores) which annually cost the health care 
     system an estimated $1,300,000,000 for treatment.
       (5) Almost 17,000,000 patients each year are treated for 
     illnesses or injuries that stem from or place them at risk of 
     malnutrition.
       (6) Because medical nutrition therapy is not covered under 
     part B of the medicare program and because more and more 
     health care is delivered on an outpatient basis, many 
     patients are denied access to the effective, low-tech 
     treatment they need, resulting in an increased incidence of 
     complications and a need for higher cost treatments.

     SEC. 2. MEDICARE COVERAGE OF MEDICAL NUTRITION THERAPY 
                   SERVICES.

       (a) Coverage.--Section 1861(s)(2) of the Social Security 
     Act (42 U.S.C. 1395x(s)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (S);
       (2) by striking the period at the end of subparagraph (T) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(U) medical nutrition therapy services (as defined in 
     subsection (uu)(1));''.
       (b) Services Described.--Section 1861 of such Act (42 
     U.S.C. 1395x) is amended by adding at the end the following 
     new subsection:

``Medical Nutrition Therapy Services; Registered Dietitian or Nutrition 
                              Professional

       ``(uu)(1) The term `medical nutrition therapy services' 
     means nutritional diagnostic, therapy, and counseling 
     services for the purpose of disease management which are 
     furnished by a registered dietitian or nutrition professional 
     (as defined in paragraph (2)) pursuant to a referral by a 
     physician (as defined in subsection (r)(1)).
       ``(2) Subject to paragraph (3), the term `registered 
     dietitian or nutrition professional' means an individual 
     who--
       ``(A) holds a baccalaureate or higher degree granted by a 
     regionally accredited college or university in the United 
     States (or an equivalent foreign degree) with completion of 
     the academic requirements of a program in nutrition or 
     dietetics, as accredited by an appropriate national 
     accreditation organization recognized by the Secretary for 
     this purpose;
       ``(B) has completed at least 900 hours of supervised 
     dietetics practice under the supervision of a registered 
     dietitian or nutrition professional; and
       ``(C)(i) is licensed or certified as a dietitian or 
     nutrition professional by the State in which the services are 
     performed, or
       ``(ii) in the case of an individual in a State that does 
     not provide for such licensure or certification, meets such 
     other criteria as the Secretary establishes.
       ``(3) Subparagraphs (A) and (B) of paragraph (2) shall not 
     apply in the case of an individual who, as of the date of 
     enactment of this subsection, is licensed or certified as a 
     dietitian or nutrition professional by the State in which 
     medical nutrition therapy services are performed.''.
       (c) Payment.--Section 1833(a)(1) of such Act (42 U.S.C. 
     1395l(a)(1)) is amended--
       (1) by striking ``and'' before ``(S)'', and
       (2) by inserting before the semicolon at the end the 
     following: ``, and (T) with respect to medical nutrition 
     therapy services (as defined in section 1861(uu)), the amount 
     paid shall be 80 percent of the lesser of the actual charge 
     for the services or the amount determined under the fee 
     schedule established under section 1848(b) for the same 
     services if furnished by a physician''.
       (d) Effective Date.--The amendments made by this section 
     apply to services furnished on or after January 1, 2000.

  Mr. CRAIG. Mr. President, today Senator Bingaman and I join to 
introduce a very important piece of legislation, the Medical Nutrition 
Therapy Act. I'm pleased to have the support of a number of Senators in 
introducing this legislation: Senators Mack, Thurmond, Mikulski, Snowe, 
Daschle, Collins, Johnson, Crapo, Dorgan, Hollings, Reed, and Conrad. 
This bill simply expands Medicare Part B coverage

[[Page 4983]]

to give seniors access to medical nutrition therapy services by 
registered dietitians and other nutrition professionals. Currently 
there is no direct coverage for services provided by registered 
dietitians, and, because they are uniquely qualified to provide medical 
nutrition therapy, beneficiaries are essentially denied access to this 
cost effective and efficacious form of care.
  Nutrition is one of the most basic elements of life. From the moment 
we are born to the moment we die, nutrition plays a critical role. It 
influences how we grow, how our brain develops, how we feel, and how 
our bodies prevent and fight disease. For decades we have known that 
nutrition can influence the most serious life threatening diseases, 
such as cancer, heart disease, stroke, diabetes, and high blood 
cholesterol.
  Experts have proven that proper nutrition may not only help prevent 
disease, but also is central to controlling and treating disease.
  Medical nutrition therapy plays a major role in treating some of the 
most threatening illnesses. It significantly improves the quality of 
life of seriously ill patients. It also saves health care costs by 
speeding recovery and reducing the incidence of complications, 
resulting in fewer hospitalizations, shorter hospital stays, and 
reduced drug, surgery, and treatment needs.
  Because medical nutrition therapy is not currently covered by 
Medicare Part B and because more and more health care is delivered on 
an outpatient basis, many patients are denied access to the effective, 
low-tech treatment they need, resulting in an increased incidence of 
complications and a need for higher cost treatments.
  Medical nutritional therapy is an integral part of cost effective 
health care.
  Our legislation would remedy this defect in Medicare Part B, 
improving health care and lowering costs. I invite all our colleagues 
to join Senator Bingaman and myself in working for this important 
reform.
                                 ______
                                 
      By Mr. ABRAHAM (for himself, Mr. Hatch, Mr. Lott, Mr. Sessions, 
        Mr. Nickles, Mr. Coverdell, Mr. Craig, Mr. Kyl, Mr. Enzi, Mr. 
        McCain, Mr. Hutchinson, Mr. Santorum, Mr. Brownback, Mr. 
        Inhofe, Mr. Smith of New Hampshire, Mr. Helms, Mr. Grassley, 
        and Mr. DeWine):
  S. 661. A bill to amend title 18, United States Code, to prohibit 
taking minors across State lines in circumvention of laws requiring the 
involvement of parents in abortion decisions; to the Committee on the 
Judiciary.


                      CHILD CUSTODY PROTECTION ACT

  Mr. ABRAHAM. Mr. President, today, I along with 19 of my colleagues 
will be re-introducing the Child Custody Protection Act. This 
legislation will make it a federal offense to transport a minor across 
state lines to obtain an abortion if this action circumvents a state 
parental involvement law.
  Last year, this bill received a majority of votes but fell short of 
the sixty votes needed for cloture. It is my hope that this year the 
Senate will listen to the 74 percent of Americans who favor parental 
consent prior to a minor girl receiving an abortion. This Baseline & 
Associates poll, conducted last summer, reveals that the American 
public favors parental consent laws and when asked specifically about 
this legislation, the American public is even more supportive. Eighty 
five percent of those who participated in the poll believed that minor 
girls should not be taken across state lines to obtain an abortion 
without their parents' knowledge.
  These poll numbers reinforce what common sense already tells us: 
parents need to be involved with the major medical and emotional 
decisions of their children. When they are not involved, the health and 
emotional well being of their child is in jeopardy.
  Last year, we heard from Joyce Farley, whose 13 year old daughter was 
raped, taken across state lines for a secret abortion by the rapist's 
mother, and dropped off 30 miles from home suffering from complications 
from an incomplete abortion. Mrs. Farley told of the trauma to her 
daughter from this stranger's actions. Luckily, Mrs. Farley found out 
about the abortion and could obtain appropriate medical care for her 
daughter. If this abortion had remained secret, Mrs. Farley's 
daughter's life could have been in danger.
  Whatever one's position on abortion, every American should recognize 
the crucial role of parents in their minor child's decision whether or 
not to undergo this procedure. Parental notification and consent laws 
exist for a reason. While most such laws provide for possible judicial 
bypass, they by nature intend to protect the rights and integrity of 
the family. More than 20 states have recognized the need to protect 
both the minor and the integrity of the family and have parental 
involvement laws in effect. My legislation adds no new provisions to 
state-enacted parental involvement laws. It does not impose parental 
involvement requirements on states that have not passed such laws. The 
Child Custody Protection Act simply prevents the undermining of 
parental involvement laws in states that have them.
  I hope my colleagues will support me in working to quickly pass this 
common sense legislation. I ask unanimous consent that the text of the 
bill and section by section analysis be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 661

       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 ``Child Custody Protection 
     Act''.

     SEC. 2. TRANSPORTATION OF MINORS IN CIRCUMVENTION OF CERTAIN 
                   LAWS RELATING TO ABORTION.

       (a) In General.--Title 18, United States Code, is amended 
     by inserting after chapter 117 the following:

 ``CHAPTER 117A--TRANSPORTATION OF MINORS IN CIRCUMVENTION OF CERTAIN 
                       LAWS RELATING TO ABORTION

``Sec.
``2431. Transportation of minors in circumvention of certain laws 
              relating to abortion.

     ``Sec. 2431. Transportation of minors in circumvention of 
       certain laws relating to abortion

       ``(a) Offense.--
       ``(1) Generally.--Except as provided in subsection (b), 
     whoever knowingly transports an individual who has not 
     attained the age of 18 years across a State line, with the 
     intent that such individual obtain an abortion, and thereby 
     in fact abridges the right of a parent under a law requiring 
     parental involvement in a minor's abortion decision, in force 
     in the State where the individual resides, shall be fined 
     under this title or imprisoned not more than one year, or 
     both.
       ``(2) Definition.--For the purposes of this subsection, an 
     abridgement of the right of a parent occurs if an abortion is 
     performed on the individual, in a State other than the State 
     where the individual resides, without the parental consent or 
     notification, or the judicial authorization, that would have 
     been required by that law had the abortion been performed in 
     the State where the individual resides.
       ``(b) Exceptions.--(1) The prohibition of subsection (a) 
     does not apply if the abortion was necessary to save the life 
     of the minor because her life was endangered by a physical 
     disorder, physical injury, or physical illness, including a 
     life endangering physical condition caused by or arising from 
     the pregnancy itself.
       ``(2) An individual transported in violation of this 
     section, and any parent of that individual, may not be 
     prosecuted or sued for a violation of this section, a 
     conspiracy to violate this section, or an offense under 
     section 2 or 3 based on a violation of this section.
       ``(c) Affirmative Defense.--It is an affirmative defense to 
     a prosecution for an offense, or to a civil action, based on 
     a violation of this section that the defendant reasonably 
     believed, based on information the defendant obtained 
     directly from a parent of the individual or other compelling 
     facts, that before the individual obtained the abortion, the 
     parental consent or notification, or judicial authorization 
     took place that would have been required by the law requiring 
     parental involvement in a minor's abortion decision, had the 
     abortion been performed in the State where the individual 
     resides.
       ``(d) Civil Action.--Any parent who suffers legal harm from 
     a violation of subsection (a) may obtain appropriate relief 
     in a civil action.
       ``(e) Definitions.--For the purposes of this section--
       ``(1) a law requiring parental involvement in a minor's 
     abortion decision is a law--
       ``(A) requiring, before an abortion is performed on a 
     minor, either--

[[Page 4984]]

       ``(i) the notification to, or consent of, a parent of that 
     minor; or
       ``(ii) proceedings in a State court; and
       ``(B) that does not provide as an alternative to the 
     requirements described in subparagraph (A) notification to or 
     consent of any person or entity who is not described in that 
     subparagraph;
       ``(2) the term `parent' means--
       ``(A) a parent or guardian;
       ``(B) a legal custodian; or
       ``(C) a person standing in loco parentis who has care and 
     control of the minor, and with whom the minor regularly 
     resides;

     who is designated by the law requiring parental involvement 
     in the minor's abortion decision as a person to whom 
     notification, or from whom consent, is required;
       ``(3) the term `minor' means an individual who is not older 
     than the maximum age requiring parental notification or 
     consent, or proceedings in a State court, under the law 
     requiring parental involvement in a minor's abortion 
     decision; and
       ``(4) the term `State' includes the District of Columbia 
     and any commonwealth, possession, or other territory of the 
     United States.''.
       (b) Clerical Amendment.--The table of chapters for part I 
     of title 18, United States Code, is amended by inserting 
     after the item relating to chapter 117 the following new 
     item:

``117A. Transportation of minors in circumvention of certain laws 
  relating to abortion.........................................2431.''.
         .....................................................

     The Child Custody Protection Act--Section-by-Section Analysis

     Section 1. Short title
       This section states that the short title of this bill is 
     the ``Child Custody Protection Act.''
     Section 2. Transportation of minors to avoid certain laws 
         relating to abortion
       Section 2(a) amends title 18 of the United States Code by 
     inserting after chapter 117 a proposed new chapter 117A 
     titled ``Transportation of minors to avoid certain laws 
     relating to abortion,'' within which would be included a new 
     section 2431 on this subject.
       Subsection (a) of proposed section 2431 outlaws the knowing 
     transportation across a State line of a person under 18 years 
     of age with the intent that she obtain an abortion, in 
     abridgement of a parent's right of involvement according to 
     State law. This subsection requires only knowledge by the 
     defendant that he or she was transporting the person across 
     State lines with the intent that she obtain an abortion. It 
     does not require that the transporter know the requirement of 
     the home State law, know that they have not been complied 
     with, or indeed know anything about the existence of the 
     State law. By the same token, it does not require that the 
     defendant know that his or her actions violate Federal law, 
     or indeed know anything about the Federal law. A reasonable 
     belief that parental notice or consent, or judicial 
     authorization, has been given, is an affirmative defense 
     whose terms are set out in subsection (c).
       Subsection (a), paragraph (1), imposes a maximum of 1 year 
     imprisonment or a fine, or both.
       Subsection (a), paragraph (2), specifies the criteria for a 
     violation of the parental right under this statute as 
     follows: an abortion must be performed on a minor in a State 
     other than the minor's residence and without the parental 
     consent or notification, or the judicial authorization, that 
     would have been required had the abortion been performed in 
     the minor's State or residence.
       Subsection (b), paragraph (1) specifies that subsection (a) 
     does not apply if the abortion is necessary to save the life 
     of the minor. This subsection is not intended to preempt any 
     other exceptions that a State parental involvement law that 
     meets the definitions set out in subsection (e)(1) and (e)(2) 
     may recognize.
       Subsection (b), paragraph (2), clarifies that neither the 
     minor being transported nor her parents may be prosecuted or 
     sued for a violation of this bill.
       Subsection (c) provides an affirmative defense to 
     prosecution or civil action based on violation of the act 
     where the defendant reasonably believed, based on information 
     obtained directly from the girl's parent or other compelling 
     factors, that the requirements of the girl's State of 
     residence regarding parental involvement or judicial 
     authorization in abortions had been satisfied. A minor's own 
     assertion to a defendant that her parents knew or had 
     consented would not, by itself, constitute sufficient basis 
     to make out this affirmative defense.
       Subsection (d) establishes a civil cause of action for a 
     parent who suffers legal harm from a violation of subsection 
     (a).
       Subsection (e) sets forth definitions of certain terms in 
     this bill.
       Subsection (e)(1)(A) defines ``a law requiring parental 
     involvement in a minor's abortion decision'' to be a law 
     requiring either ``the notification to, or consent of, a 
     parent of that minor or proceedings in a State court.''
       Subsection (e)(1)(B) stipulates that a law conforming to 
     the definition in (e)(1)(A) cannot provide notification to or 
     consent of any person or entity other than a ``parent'' as 
     defined in the subsequent section.
       Subsection (e)(2) defines ``parent'' to mean a parent or 
     guardian, or a legal custodian, or a person standing in loco 
     parentis (if that person has ``care and control'' of the 
     minor and is a person with whom the minor ``regularly 
     resides'') and who is designated by the applicable State 
     parental involvement law as the person to whom notification, 
     or from whom consent, is required. In this context, a person 
     in loco parentis has the meaning it has at common law: a 
     person who effectively functions as a child's guardian, but 
     without the legal formalities of guardianship having been 
     met. It would not include individuals who are not truly 
     exercising the responsibilities of parents, such as an adult 
     boyfriend with whom the minor may be living.
       Subsection (e)(3) defines ``minor'' to mean a person not 
     older than the maximum age requiring parental notification or 
     consent, or proceedings in a State court, under the parental 
     involvement law of the State, where the minor resides.
       Subsection (E)(4) defines ``State'' to include the District 
     of Columbia ``and any commonwealth, possession, or other 
     territory of the United States.''
       Section 2(b) is a clerical amendment to insert the new 
     chapter in the table of chapters for part I of title 18.
                                 ______
                                 
      By Mr. CHAFEE (for himself, Ms. Mikulski, Mr. Moynihan, Ms. 
        Snowe, Mr. Smith of Oregon, Mr. Harkin, Mr. Cochran, Mr. 
        Durbin, Mrs. Murray, Mr. Leahy, Mr. Rockefeller, Mr. Lieberman, 
        Mr. Lautenberg, Mrs. Feinstein, Mr. Bingaman, Mr. Sarbanes, Mr. 
        Hollings, Mr. Wellstone, Mr. Cleland, Mr. Kennedy, Mr. Johnson, 
        Mr. Robb, Mrs. Boxer, Mr. Reid, and Mr. Kerrey):
  S. 662. A bill to amend title XIX of the Social Security Act to 
provide medical assistance for certain women screened and found to have 
breast or cervical cancer under a federally funded screening program; 
to the Committee on Finance.


          the breast and cervical cancer treatment act of 1999

 Mr. CHAFEE. Mr. President, I am pleased today to introduce 
legislation that will provide life-saving treatment to women who have 
been diagnosed with breast and cervical cancer. I am very proud of this 
legislation and want to thank everyone who worked so hard to put this 
bill together.
  I want to take just a few minutes to explain what this legislation 
does. In 1990 Congress created a program, run by the Centers for 
Disease Control, to provide breast and cervical cancer screening for 
low-income, uninsured women. This program is run in all 50 states and 
is tremendously successful. The CDC screens more than 500,000 women 
every year, detecting more than 3,000 cases of breast cancer and 350 
cases of cervical cancer.
  The problem comes about when these women try to get treatment for the 
cancer. They are uninsured, and are not eligible for either Medicaid or 
Medicare. They must rely on volunteers and charitable providers to find 
treatment services. Treatment for many is delayed, and many do not 
receive the crucial follow-up care. Some never receive treatment and 
others are left with huge medical bills they cannot pay.
  The legislation we are introducing today provides a simple solution 
to this problem. It gives states the option to provide those women, 
many of whom are mothers of young children, who are diagnosed with 
breast or cervical cancer under the CDC's screening program to obtain 
treatment through the medicaid program. The coverage would continue 
until the treatment and follow-up visits are completed.
  This is a modest, low-cost solution to a life or death problem. It 
costs less than $60 million per year to provide this critical 
treatment. I hope very much that we will be able to pass this bill this 
year.
  I ask that the legislation be printed in the Record.
  The bill follows:

                                 S. 662

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

     SECTION 1. OPTIONAL MEDICAID COVERAGE OF CERTAIN BREAST OR 
                   CERVICAL CANCER PATIENTS.

       (a) Coverage as Optional Categorically Needy Group.--
       (1) In general.--Section 1902(a)(10)(A)(ii) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended--

[[Page 4985]]

       (A) in subclause (XIII), by striking ``or'' at the end;
       (B) in subclause (XIV), by adding ``or'' at the end; and
       (C) by adding at the end the following:

       ``(XV) who are described in subsection (aa) (relating to 
     certain breast or cervical cancer patients);''.

       (2) Group described.--Section 1902 of the Social Security 
     Act (42 U.S.C. 1396a) is amended by adding at the end the 
     following:
       ``(aa) Individuals described in this paragraph are 
     individuals who--
       ``(1) are not described in subsection (a)(10)(A)(i);
       ``(2) have not attained age 65;
       ``(3) have been screened for breast and cervical cancer 
     under the Centers for Disease Control and Prevention breast 
     and cervical cancer early detection program established under 
     title XV of the Public Health Service Act (42 U.S.C. 300k et 
     seq.) in accordance with the requirements of section 1504 of 
     that Act (42 U.S.C. 300n) and need treatment for breast or 
     cervical cancer; and
       ``(4) are not otherwise covered under creditable coverage, 
     as defined in section 2701(c) of the Public Health Service 
     Act (45 U.S.C. 300gg(c)).''.
       (3) Limitation on Benefits.--Section 1902(a)(10) of the 
     Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in 
     the matter following subparagraph (F)--
       (A) by striking ``and (XIII)'' and inserting ``(XIII)''; 
     and
       (B) by inserting ``, and (XIV) the medical assistance made 
     available to an individual described in subsection (aa) who 
     is eligible for medical assistance only because of 
     subparagraph (A)(ii)(XV) shall be limited to medical 
     assistance provided during the period in which such an 
     individual requires treatment for breast or cervical cancer'' 
     before the semicolon.
       (4) Conforming amendments.--Section 1905(a) of the Social 
     Security Act (42 U.S.C. 1396d(a)) is amended in the matter 
     preceding paragraph (1)--
       (A) in clause (x), by striking ``or'' at the end;
       (B) in clause (xi), by adding ``or'' at the end; and
       (C) by inserting after clause (xi) the following:
       ``(xii) individuals described in section 1902(aa),''.
       (b) Presumptive Eligibility.--
       (1) In general.--Title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) is amended by inserting after section 
     1920A the following:


    ``presumptive eligibility for certain breast or cervical cancer 
                                patients

       ``Sec. 1920B. (a) State Option.--A State plan approved 
     under section 1902 may provide for making medical assistance 
     available to an individual described in section 1902(aa) 
     (relating to certain breast or cervical cancer patients) 
     during a presumptive eligibility period.
       ``(b) Definitions.--For purposes of this section:
       ``(1) Presumptive eligibility period.--The term 
     `presumptive eligibility period' means, with respect to an 
     individual described in subsection (a), the period that--
       ``(A) begins with the date on which a qualified entity 
     determines, on the basis of preliminary information, that the 
     individual is described in section 1902(aa); and
       ``(B) ends with (and includes) the earlier of--
       ``(i) the day on which a determination is made with respect 
     to the eligibility of such individual for services under the 
     State plan; or
       ``(ii) in the case of such an individual who does not file 
     an application by the last day of the month following the 
     month during which the entity makes the determination 
     referred to in subparagraph (A), such last day.
       ``(2) Qualified entity.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `qualified entity' means any entity that--
       ``(i) is eligible for payments under a State plan approved 
     under this title; and
       ``(ii) is determined by the State agency to be capable of 
     making determinations of the type described in paragraph 
     (1)(A).
       ``(B) Regulations.--The Secretary may issue regulations 
     further limiting those entities that may become qualified 
     entities in order to prevent fraud and abuse and for other 
     reasons.
       ``(C) Rule of construction.--Nothing in this paragraph 
     shall be construed as preventing a State from limiting the 
     classes of entities that may become qualified entities, 
     consistent with any limitations imposed under subparagraph 
     (B).
       ``(c) Administration.--
       ``(1) In general.--The State agency shall provide qualified 
     entities with--
       ``(A) such forms as are necessary for an application to be 
     made by an individual described in subsection (a) for medical 
     assistance under the State plan; and
       ``(B) information on how to assist such individuals in 
     completing and filing such forms.
       ``(2) Notification requirements.--A qualified entity that 
     determines under subsection (b)(1)(A) that an individual 
     described in subsection (a) is presumptively eligible for 
     medical assistance under a State plan shall--
       ``(A) notify the State agency of the determination within 5 
     working days after the date on which determination is made; 
     and
       ``(B) inform such individual at the time the determination 
     is made that an application for medical assistance under the 
     State plan is required to be made by not later than the last 
     day of the month following the month during which the 
     determination is made.
       ``(3) Application for medical assistance.--In the case of 
     an individual described in subsection (a) who is determined 
     by a qualified entity to be presumptively eligible for 
     medical assistance under a State plan, the individual shall 
     apply for medical assistance under such plan by not later 
     than the last day of the month following the month during 
     which the determination is made.
       ``(d) Payment.--Notwithstanding any other provision of this 
     title, medical assistance that--
       ``(1) is furnished to an individual described in subsection 
     (a)--
       ``(A) during a presumptive eligibility period;
       ``(B) by an entity that is eligible for payments under the 
     State plan; and
       ``(2) is included in the care and services covered by the 
     State plan;

     shall be treated as medical assistance provided by such plan 
     for purposes of section 1903(a)(5)(B).''.
       (2) Conforming amendments.--
       (A) Section 1902(a)(47) of the Social Security Act (42 
     U.S.C. 1396a(a)(47)) is amended by inserting before the 
     semicolon at the end the following: ``and provide for making 
     medical assistance available to individuals described in 
     subsection (a) of section 1920B during a presumptive 
     eligibility period in accordance with such section''.
       (B) Section 1903(u)(1)(D)(v) of such Act (42 U.S.C. 
     1396b(u)(1)(D)(v)) is amended--
       (i) by striking ``or for'' and inserting ``, for''; and
       (ii) by inserting before the period the following: ``, or 
     for medical assistance provided to an individual described in 
     subsection (a) of section 1920B during a presumptive 
     eligibility period under such section''.
       (c) Enhanced Match.--Section 1903(a)(5) of the Social 
     Security Act (42 U.S.C. 1396b(a)(5)) is amended--
       (1) by striking ``an'' and inserting ``(A) an'';
       (2) by adding ``plus'' after the semicolon; and
       (3) by adding at the end the following:
       ``(B) an amount equal to 75 percent of the sums expended 
     during such quarter which are attributable to the offering, 
     arranging, and furnishing (directly or on a contract basis) 
     of medical assistance to an individual described in section 
     1902(aa); plus''.
       (d) Effective Date.--The amendments made by this section 
     apply to medical assistance furnished on or after October 1, 
     1999, without regard to whether final regulations to carry 
     out such amendments have been promulgated by such 
     date.

 Ms. MIKULSKI. Mr. President, I rise to join my distinguished 
colleagues, Senators Chafee, Moynihan, Snowe, and to introduce 
legislation providing breast and cervical cancer treatment services to 
women who were diagnosed with these cancers through the National Breast 
and Cervical Cancer Early Detection Program (NBCCEDP). This bill would 
give states the option to provide Medicaid coverage for the duration of 
breast and cervical cancer treatment to eligible women who were 
screened through the CDC program and found to have these cancers. This 
is a bill whose time has come.
  In 1990, I was proud to be the chief Senate sponsor of the Breast and 
Cervical Cancer Mortality Prevention Act which created the National 
Breast and Cervical Cancer Early Detection Program (NBCCEDP) at the 
CDC. The time was right for us to create that program. Since its 
inception, the CDC screening program has provided more than 721,000 
mammograms and 851,000 Pap tests to more than 1.2 million women. Among 
the women screened, over 3,600 cases of breast cancer and over 400 
cases of invasive cervical cancer have been diagnosed since the 
beginning of the program. In Maryland alone, the state had provided 
more than 54,000 mammograms and 35,000 Pap tests, and diagnosed over 
450 women with breast cancer and 15 women with invasive cervical 
cancer.
  Now as we prepare to enter the 21st century, it is time for us to 
finish what we started and provide treatment services for breast and 
cervical cancer for women who are screened through this program. We 
made the down payment in 1990 and we've been making payments ever 
since, but it's time for the final payment. It is time to do the right 
thing. We screen the women in this program for breast and cervical 
cancer. But we don't provide the federal follow-up to ensure that these 
women are treated.

[[Page 4986]]

  The CDC screening program does not pay for breast and cervical cancer 
treatment services, but it does require participating states to provide 
treatment services. A study of the program done for the Centers for 
Disease Control and Prevention found that while treatment was 
eventually found for almost all of the women screened, some women did 
not get treated at all, some refused treatment, and some experienced 
delays. While states and localities have been diligent and creative in 
finding treatment services for these women, the reality is that the 
system is overloaded. The CDC study found that when it came to 
treatment services, state efforts to obtain these services were short-
term, labor-intensive solutions that diverted resources away from 
screening activities.
  Of those women diagnosed with cancer in the United States, nearly 
3,000 women have no way to afford treatment--they have no health care 
insurance coverage or are underinsured. One woman in Massachusetts 
reported that she cashed in her life insurance policy to cover the 
costs of her treatment. These women depend on the time of staff and 
volunteers who help them find free or more affordable treatment; they 
depend on the generosity of doctors, nurses, hospitals and clinics who 
provide them with free or reduced-cost treatment. In the end, thousands 
of women who run local screening programs are spending countless hours 
finding treatment services for women diagnosed with breast cancer. I 
salute the efforts of these individuals who spend their time and 
resources to help these women.
  But we must not force these women to rely on the goodwill of others. 
These treatment efforts will become even more difficult as more women 
are screened by the NBCCEDP, which currently services only 12-15% of 
all women who are eligible nationally. The lack of coverage for 
diagnostic and treatment services has also had a very negative impact 
on the program's ability to recruit providers, further restricting the 
number of women screened. The CDC study also shows there are already 
additional stresses on the program as increasing numbers of physicians 
do not have the autonomy in today's ever increasing managed care system 
to offer free or reduced-fee services. While CDC has expanded its case 
management services to help more women get treatment, even CDC admits 
that ``more formalized and sustained mechanisms need to be instituted 
to ensure that all women screened have ready access to appropriate 
treatment and follow-up.'' It is an outrage that women with cancer must 
go begging for treatment, especially if the federal government has held 
out the promise of early detection. We should follow through on our 
responsibility to treat the cancer that these women were diagnosed with 
through the CDC program.
  That's why I've introduced this important legislation with my 
colleagues. This bill gives states the option to provide Medicaid 
coverage for the duration of breast and cervical cancer treatment to 
eligible women who were screened through the CDC program and found to 
have these cancers. This is not a mandate for states; it is the federal 
government saying to the states ``we will help you provide treatment 
services to these women, if you decide to do so.'' By choosing this 
option, states would in effect, extend the federal-state partnership 
that exists for the screening services in the CDC program to treatment 
services.
  I'm proud that my own state of Maryland realized the importance of 
providing treatment services to women who were screened through the CDC 
screening program. Maryland appropriated over $6 million in state funds 
to establish a Breast and Cervical Cancer Diagnostic and Treatment 
Program for uninsured, low income women. The breast cancer mortality 
rate in Maryland has started to decline, in part because of programs 
like the CDC program. But not all states have the resources to do what 
Maryland has done. That's why this bill is needed. It provides a long-
term solution. Screening alone does not prevent cancer deaths; but 
treatment can. It's a cruel and heart-breaking irony for the federal 
government to promise to screen low-income women for breast and 
cervical cancer, but not to establish a program to treat those women 
who have been diagnosed with cancer through a federal program.
  It is clear that the short-term, ad-hoc strategies of providing 
treatment have broken down: for the women who are screened; for the 
local programs that fund the screening program; and for the states that 
face increasing burdens. Because there is not coverage for treatment, 
state programs are having a hard time recruiting providers, volunteers 
are spending a disproportionate amount of time finding treatment for 
women, and fewer women are receiving treatment. We can't grow the 
program to serve the other 78% of eligible women if we can't promise 
treatment to those we already screen.
  This bill is the best long-term solution. It is strongly supported by 
the National Breast Cancer Coalition representing over 400 
organizations and 100,000's of women across the nation; the American 
Cancer Society, the National Association of Public Hospitals and Health 
Systems, the National Partnership for Women and Families, YWCA, 
National Women's Health Network, Oncology Nursing Society, Association 
of Women's Health, Obstetric, and Neonatal Nurses, the Rhode Island 
Breast Cancer Coalition, Y-ME, and Arm in Arm. I urge my colleagues to 
cosponsor and support this critical piece of legislation and make good 
on the promise of early detection.
 Mr. MOYNIHAN. Mr. President, today, I join with my colleagues 
Senators Chafee, Mikulski, and Snowe in introducing legislation to 
ensure that women with breast or cervical cancer will receive coverage 
for their treatment. The Federal Centers for Disease Control and 
Prevention (CDC) has a successful nationwide program--National Breast 
and Cervical Cancer Early Detection program--that provides funding for 
states to screen low-income uninsured women for breast and cervical 
cancer. However, the CDC program is not designed and does not have 
funding to treat these women after they are diagnosed.
  The women eligible for cancer screening under the CDC program are 
low-income individuals, yet are not poor enough to qualify for Medicaid 
coverage. They do not have health insurance coverage for these 
screenings and for subsequent cancer treatment.
  From July of 1991 to September of 1997, the CDC program provided 
mammography screening to 722,000 women and diagnosed 3,600 cases of 
breast cancer. During this same period, the program also provided over 
852,000 pap smears and found more than 400 cases of invasive cervical 
cancer.
  The CDC screening program has had to divert a significant amount of 
its resources from screenings in order to find treatment for the women 
found to have breast and cervical cancer. The lack of subsequent 
funding for treatment has, therefore, jeopardized the programs' primary 
function: to screen low-income uninsured women for breast and cervical 
cancer. Currently, the program screens only about 12 to 15 percent of 
all eligible women.
  A study conducted at Battelle Centers for Public Health Research and 
Evaluation and the University of Michigan School of Public Health on 
treatment funding for women screened by the CDC program found that, 
although funding for treatment services were found for most of these 
women, treatment was not always available when needed. In addition, 
during the search for treatment funding, the CDC program lost contact 
with several women. The study also found that the sources of treatment 
funding are uncertain, tenuous and fragmented. The burden of funding 
treatment often fell upon providers themselves. Seeking charity care 
from public hospitals adds to hospitals' uncompensated care costs. It 
is no surprise that the National Association of Public Hospitals 
supports our bill to provide coverage for these women.
  The legislation would allow states to provide treatment coverage for 
low-income women who are screened and diagnosed through the CDC program 
and who are uninsured. States will have the

[[Page 4987]]

option to provide this coverage through its Medicaid program. States 
choosing this option would receive an enhanced match for the treatment 
coverage, similar to the federal match provided to the state for the 
CDC screening program. With this legislation, the Federal Government 
will follow through on its intent to assist low-income women with 
breast and cervical cancer.
  Mr. President, the Senate has approved this proposal in the past. A 
similar provision was included in the Senate version of the Balanced 
Budget bill. I urge the Senate to again support this important 
legislation.
                                 ______
                                 
      By Mr. SPECTER:
  S. 663. A bill to impose certain limitations on the receipt of out-
of-State municipal solid waste, to authorize State and local controls 
over the flow of municipal solid waste, and for other purposes; to the 
Committee on Environment and Public Works.


 the solid waste interstate transportation and local authority act of 
                                  1999

 Mr. SPECTER. Mr. President, I have sought recognition to 
introduce a bill that would allow states to pass laws limiting the 
import of waste from other states. Addressing the interstate shipment 
of solid waste is a top environmental priority for millions of 
Americans, millions of Pennsylvanians and for me. As you are aware, 
Congress came very close to enacting legislation to address this issue 
in 1994, and the Senate passed interstate waste and flow control 
legislation in May, 1995 by an overwhelming 94-6 margin, only to see it 
die in the House of Representatives. I am confident that with the 
strong leadership of my colleagues Chairman Chafee and Senator Smith, 
we can get quick action on a strong waste bill and pressure the House 
to conclude this effort once and for all.
  As you are aware, the Supreme Court has put us in the position of 
having to intervene in the issue of trash shipments. In recent years, 
the Court has struck down State laws restricting the importation of 
solid waste from other jurisdictions under the Interstate Commerce 
Clause of the U.S. Constitution. The only solution is for Congress to 
enact legislation conferring such authority on the States, which would 
then be Constitutional.
  It is time that the largest trash exporting States bite the bullet 
and take substantial steps towards self-sufficiency for waste disposal. 
The legislation passed by the Senate in the 103rd and 104th Congresses 
would have provided much-needed relief to Pennsylvania, which is by far 
the largest importer of out-of-State waste in the nation. According to 
the Pennsylvania Department of Environmental Protection, 3.9 million 
tons of out-of-State municipal solid waste entered Pennsylvania in 
1993, rising to 4.3 million tons in 1994, 5.2 million in 1995, and a 
record 6.3 million tons from out-of-State in 1996 and 1997, which are 
the most recent statistics available. Most of this trash came from New 
York and New Jersey, with New York responsible for 2.7 million tons and 
New Jersey responsible for 2.4 million tons in 1997, representing 82 
percent of the municipal solid waste imported into Pennsylvania.
  This is not a problem limited to one small corner of my State. 
Millions of tons of trash generated in other States find their final 
resting place in more than 50 landfills throughout Pennsylvania.
  Now, more than ever, we need legislation which will go a long way 
toward resolving the landfill problems facing Pennsylvania, Indiana, 
and similar waste importing States. I am particularly concerned by the 
developments in New York, where Governor Pataki and Mayor Giuliani have 
announced the closure of the City's one remaining landfill, Fresh 
Kills, in 2001. I am advised that 13,200 tons per day of New York City 
trash are sent there and that Pennsylvania is a likely destination once 
Fresh Kills begins its shut-down.
  On several occasions, I have met with country officials, 
environmental groups, and other Pennsylvanians to discuss the solid 
waste issue specifically, and it often comes up in the public open 
house town meetings I conduct in all of Pennsylvania's 67 counties. I 
came away from those meetings impressed by the deep concerns expressed 
by the residents of communities which host a landfill rapidly filing up 
with the refuse of millions of New Yorkers and New Jerseyans whose 
States have failed to adequately manage the waste they generate.
  Recognizing the recurrent problem of landfill capacity in 
Pennsylvania, since 1989 I have pushed to resolve the interstate waste 
crisis. I have introduced legislation with my late colleague, Senator 
John Heinz, and then with former Senator Dan Coats along with 
cosponsors from both sides of the aisle which would have authorized 
States to restrict the disposal of out-of-State municipal waste in any 
landfill or incinerator within its jurisdiction. I was pleased when 
many of the concepts in our legislation were incorporated in the 
Environment and Public Works Committee's reported bills in the 103rd 
and 104th Congresses, and I supported these measures during floor 
consideration.
  During the 103rd Congress, we encountered a new issue with respect to 
municipal solid waste--the issue of waste flow control authority. On 
May 16, 1994, the Supreme Court held (6-3) in Carbone versus Clarkstown 
that a flow control ordinance, which requires all solid waste to be 
processed at a designated waste management facility, violates the 
Commerce Clause of the United States Constitution. In striking down the 
Clarkstown ordinance, the Court stated that the ordinance discriminated 
against interstate commerce by allowing only the favored operator to 
process waste that is within the town's limits. As a result of the 
Court's decision, flow control ordinances in Pennsylvania and other 
States are considered unconstitutional.
  I have met with county commissioners who have made clear that this 
issue is vitally important to the local governments in Pennsylvania and 
my office has, over the past years received numerous phone calls and 
letters from individual Pennsylvania counties and municipal solid waste 
authorities that support waste flow control legislation. Since 1988, 
flow control has been the primary tool used by Pennsylvania counties to 
enforce solid waste plans and meet waste reduction and recycling goals 
or mandates. Many Pennsylvania jurisdictions have spent a considerable 
amount of public funds on disposal facilities, including upgraded 
sanitary landfills, state-of-the-art resource recovery facilities, and 
co-composting facilities. In the absence of flow control authority, I 
am advised that many of these worthwhile projects could be jeopardized 
and that there has been a fiscal impact on some communities where there 
are debt service obligations.
  In order to fix these problems, my legislation would provide a 
presumptive ban on all out-of-state municipal solid waste, including 
construction and demolition debris, unless a landfill obtains the 
agreement of the local government to allow for the importation of 
waste. It would provide a freeze authority to allow a State to place a 
limit on the amount of out-of-state waste received annually at each 
facility. It would also provide a ratchet authority to allow a State to 
gradually reduce the amount of out-of-state municipal waste that may be 
received at facilities. These provisions will provide a concrete 
incentive for the largest states to get a handle on their solid waste 
management immediately. To address the problem of flow control my bill 
would provide authority to allow local governments to designate where 
privately collected waste must be disposed. This would be a narrow fix 
for only those localities that constructed facilities before the 1994 
Supreme Court ruling and who relied on their ability to regulate the 
flow of garbage to pay for their municipal bonds.
  This is an issue that affects numerous states, and I urge my 
colleagues to support this very important legislation.
                                 ______
                                 
      By Mr. CHAFEE (for himself, Mr. Graham, Mr. Jeffords, and Mr. 
        Breaux):
  S. 664. A bill to amend the Internal Revenue Code of 1986 to provide 
a credit against income tax to individuals

[[Page 4988]]

who rehabilitate historic homes or who are the first purchasers of 
rehabilitated historic homes for use as a principal residence; to the 
Committee on Finance.


               the historic homeownership assistance act

 Mr. CHAFEE. Mr. President, all across America, in the small 
towns and great cities of this country, our heritage as a nation--the 
physical evidence of our past--is at risk. In virtually every corner of 
this land, homes in which grandparents and parents grew up, communities 
and neighborhoods that nurtured vibrant families, schools that were 
good places to learn and churches and synagogues that were filled on 
days of prayer, have suffered the ravages of abandonment and decay.
  In the decade from 1980 to 1990, Chicago lost 41,000 housing units 
through abandonment, Philadelphia 10,000 and St. Louis 7,000. The story 
in our older small communities has been the same, and the trend 
continues. It is important to understand that it is not just buildings 
that we are losing. It is the sense of our past, the vitality of our 
communities and the shared values of those precious places.
  We need not stand hopelessly by as passive witnesses to the loss of 
these irreplaceable historic resources. We can act, and to that end I 
am introducing today the Historic Homeownership Assistance Act along 
with my distinguished colleagues, Senator Graham of Florida, Senator 
Jeffords, and Senator Breaux.
  This legislation is patterned after the existing Historic 
Rehabilitation Investment Tax Credit. That legislation has been 
enormously successful in stimulating private investment in the 
rehabilitation of buildings of historic importance all across the 
country. Through its use we have been able to save and re-use a rich 
and diverse array of historic buildings: landmarks such as Union 
Station right here in Washington, DC, the Fox River Mills, a mixed use 
project that was once a derelict paper mill in Appleton, WI, and the 
Rosa True School, an eight-unit low and moderate income rental project 
in an historic school building in Portland, ME.
  In my own state of Rhode Island, federal tax incentives stimulated 
the rehabilitation and commercial reuse of more than three hundred 
historic properties. The properties saved include the Hotel Manisses on 
Block Island, the former Valley Falls Mills complex in Central Falls, 
and the Honan Block in Woonsocket.
  The legislation that I am introducing builds on the familiar 
structure of the existing tax credit, but with a different focus and a 
more modest scope and cost. It is designed to empower the one major 
constituency that has been barred from using the existing credit--
homeowners. Only those persons who rehabilitate or purchase a newly 
rehabilitated home and occupy it as their principal residence would be 
entitled to this new credit. There would be no passive losses, no tax 
shelters and no syndications under this bill.
  Like the existing investment credit, the bill would provide a credit 
to homeowners equal to 20 percent of the qualified rehabilitation 
expenditures made on an eligible building which is used as a principal 
residence by the owner. Eligible buildings are those individually 
listed on the National Register of Historic Places or on a nationally 
certified state or local historic register, or are contributing 
buildings in national, state or local historic districts. As is the 
case with the existing credit, the rehabilitation work would have to be 
performed in compliance with the Secretary of the Interior's Standards 
for Rehabilitation, although the bill clarifies that such Standards 
should be interpreted in a manner that takes into consideration 
economic and technical feasibility.
  The bill also allows lower income homebuyers, who may not have 
sufficient federal income tax liability to use a tax credit, to convert 
the credit to mortgage assistance. The legislation would permit such 
persons to receive an Historic Rehabilitation Mortgage Credit 
Certificate which they can use with their work bank to obtain a lower 
interest rate on their mortgage or to lower the amount of their 
downpayment.
  The credit would be available for condominiums and coops, as well as 
single-family buildings. If a building is rehabilitated by a developer 
for resale, the credit would pass through to the homeowner.
  One goal of the bill is to provide incentives for middle- and upper-
income families to return to older towns and cities. Therefore, the 
bill does not limit the tax benefits on the basis of income. However, 
it does impose a cap of $40,000 on the amount of credit which may be 
taken for a principal residence.
  The Historic Homeownership Assistance Act will make ownership of a 
rehabilitated older home more affordable for homebuyers of modest 
incomes. It will encourage more affluent families to claim a stake in 
older towns and neighborhoods. It affords fiscally stressed cities and 
towns a way to put abandoned buildings back on the tax rolls, while 
strengthening their income and sales tax bases. It offers developers, 
realtors, and homebuilders a new realm of economic opportunity in 
revitalizing decaying buildings.
  In addition to preserving our heritage, extending this credit will 
provide an important supplemental benefit--it will boost the economy. 
Every dollar of federal investment in historic rehabilitation leverages 
many more from the private sector. Rhode Island, for example, has used 
the credit to leverage $252 million in private investment. This 
investment has created more than 10,000 jobs and $187 million in wages.
  An increasing concern to many mayors, county executives and governors 
is the issue of urban sprawl. Wherein new housing is constructed on 
nearby farmland, older housing stock is abandoned. This legislation 
encourages the rehabilitation of that housing stock and will help curb 
urban sprawl.
  The American dream of owning one's own home is a powerful force. This 
bill can help it come true for those who are prepared to make a 
personal commitment to join in the rescue of our priceless heritage. By 
their actions they can help to revitalize decaying resources of 
historic importance, create jobs and stimulate economic development, 
and restore to our older towns and cities a lost sense of purpose and 
community. I ask that a summary of this bill be printed in the Record.
  The summary follows:

           The Historic Homeownership Assistance Act--Summary

       Purpose. To provide homeownership incentives and 
     opportunities through the rehabilitation of older buildings 
     in historic districts.
       Rate of Credit. 20% credit for expenditures to rehabilitate 
     or purchase a newly-rehabilitated eligible home and occupy it 
     as a principal residence.
       Eligible Buildings. Eligible buildings would be buildings 
     individually listed on the National Register of Historic 
     Places or a nationally certified state or local register, and 
     contributing buildings in national, state or local historic 
     districts.
       Maximum Credit: Minimum Expenditures. The amount of the 
     credit would be limited to $40,000 for each principal 
     residence. The amount of qualified rehabilitation 
     expenditures would be required to exceed the greater of 
     $5,000 or the adjusted tax basis of the building (excluding 
     the land). At least five percent of the qualified 
     rehabilitation expenditures would have to be spent on the 
     exterior of the building.
       Carry-Forward: Recapture. Any unused amounts of credit 
     would be carried forward until fully exhausted. In the event 
     the taxpayer failed to maintain his or her principal 
     residence in the building for five years, the credit would be 
     subject to ratable recapture.
       Historic Rehabilitation Mortgage Credit Certificates. Lower 
     income taxpayers, who may not have sufficient Federal Income 
     Tax liability to make effective use of a homeownership credit 
     would be able to convert the credit into a mortgage credit 
     certificate which can be used to obtain an interest rate 
     reduction on his or her home mortgage loan. For homes 
     purchased in distressed areas, the credit certificate could 
     be used to lower an individual's downpayment.
       In many distressed neighborhoods, the cost of 
     rehabilitating a home and bringing it to market significantly 
     exceeds the value at which the property is appraised by the 
     mortgage lender. This gap imposes a significant burden on a 
     potential homeowner because the required downpayment exceeds 
     his or her means. The legislation permits the mortgage credit 
     certificate to be used to reduce the buyer's down payment, 
     rather than to reduce the interest rate, in order to close 
     this gap. This provision is limited to historic districts 
     which qualify as targeted under the existing Mortgage Revenue 
     Bond program or are located in enterprise or empowerment 
     zones.


[[Page 4989]]

 Mr. GRAHAM. Mr. President, today I join my good friend and 
colleague Senator Chafee in support of the Historic Homeownership 
Assistance Act. This bill will spur growth and preservation of historic 
neighborhoods across the country by providing a limited tax credit for 
qualified rehabilitation expenditures to historic homes.
  In virtually every corner of this land, homes in which our 
grandparents and parents grew up, communities and neighborhoods that 
nurtured vibrant families, schools that were good places to learn and 
churches and synagogues that were filled on days of prayer, have 
suffered the ravages of decay. Every year we lose thousands of historic 
housing units that are either demolished or abandoned. We are losing 
both physical structures and the historic past that these physical 
structures represent.
  The Historic Homeownership Assistance Act will stimulate 
rehabilitation of historic homes while contributing to the 
revitalization of urban communities. The Federal tax credit provided in 
the legislation is modeled after the existing Federal commercial 
historic rehabilitation tax credit. Since 1981, this commercial tax 
credit has facilitated the preservation of many historic structures 
such as Union Station in Washington, DC. In my home state of Florida, 
the existing Historic Rehabilitation Investment tax credit has resulted 
in over 300 rehabilitation projects since 1974. These projects range 
from the restoration of art deco hotels in Miami Beach, to the 
preservation of Ybor City in Tampa and the Springfield Historic 
District in Jacksonville.
  The tax credit, however, has never applied to personal residences. 
This legislation that Senator Chafee and I are cosponsoring is designed 
to empower the one major constituency that has been barred from using 
the existing credit--homeowners. It is time we provide this incentive 
to homeowners to restore and preserve homes in America's historic 
communities.
  Like the existing investment credit, this bill would provide a credit 
to homeowners equal to 20 percent of a qualified rehabilitation 
expenditure made on an eligible building that is used as a principal 
residence by the owner. The amount of the credit would be limited to 
$40,000 for each principal residence. Eligible buildings would be those 
that are listed individually on the National Register of Historic 
Places, or a nationally certified state or local register, and 
contributing buildings in national, state or local historic districts. 
Recognizing that the states can best administer laws affecting unique 
communities, the act gives power to the Secretary of the Interior to 
work with states to implement a number of provisions.
  The bill also targets Americans at all economic levels. It provides 
lower income Americans with the option to elect a Mortgage Credit 
Certificate in lieu of the tax credit. This certificate allows 
Americans who cannot take advantage of the tax credit to reduce the 
interest rate on the mortgage that secures the purchase and 
rehabilitation of a historic home.
  The credit would also be available for condominiums and co-ops, as 
well as single-family buildings. If a building were to be rehabilitated 
by a developer for sale to a homeowner, the credit would pass through 
to the homeowner. Since one purpose of the bill is to provide 
incentives for middle-income and more affluent families to return to 
older towns and cities, the bill does not discriminate among taxpayers 
on the basis of income.
  Mr. President, the time has come for Congress to get serious about 
urban renewal. For too long, we have sat on the sidelines watching idly 
as our citizens slowly abandoned entire homes and neighborhoods in 
urban settings, leaving cities like Miami in Florida and others around 
the nation in financial jeopardy. This legislation affords fiscally 
stressed cities and towns a way to put abandoned buildings back on the 
tax rolls, while strengthening their income and sales tax base. It will 
encourage more affluent families to claim a stake in older towns and 
neighborhoods. It offers developers, realtors, and homebuilders a new 
realm of economic opportunity in revitalizing decaying buildings.
  The Historic Homeownership Assistance Act does not reinvent the 
wheel. In addition to the existing commercial historic rehabilitation 
credit, the proposed bill incorporates features from several tax 
incentives for the preservation of historic homes. Colorado, Maryland, 
New Mexico, Rhode Island, Wisconsin, and Utah have pioneered their own 
successful versions of the historic preservation tax incentive for 
homeownership.
  At the federal level, this legislation would promote historic home 
preservation nationwide, allowing future generations of Americans to 
visit and reside in homes that tell the unique history of our 
communities. The Historic Homeownership Assistance Act will offer 
enormous potential for saving historic homes and bringing entire 
neighborhoods back to life. I urge all my colleagues to support this 
important piece of legislation.
                                 ______
                                 
      By Mr. COVERDELL (for himself, Mr. Hagel, Mrs. Hutchison, Mr. 
        Kyl, Mr. Inhofe, and Mr. Grassley):
  S. 665. A bill to amend the Congressional Budget and Impoundment 
Control Act of 1974 to prohibit the consideration of retroactive tax 
increases; to the Committee on the Budget and the Committee on 
Governmental Affairs, jointly, pursuant to the order of August 4, 1977, 
that if one Committee reports, the other Committee has 30 days to 
report or be discharged.


                 coverdell RETROACTIVE TAX BAN PACKAGE

  Mr. COVERDELL. Mr. President, today I rise to offer a tax reform 
package to provide greater tax fairness and to protect citizens from 
retroactive taxation. This package includes three initiatives: a 
constitutional amendment called the retroactive tax ban amendment, a 
bill to establish a new budget point of order against retroactive 
taxation, and a proposed Senate Rule change.
  The first, the retroactive tax ban amendment, is a constitutional 
amendment to prevent the Federal Government from imposing any tax 
increase retroactively. The amendment states simply ``No Federal tax 
shall be imposed for the period before the date of enactment.'' We have 
heard directly from the taxpayers, and looking backward for extra taxes 
is unacceptable. It is not a fair way to deal with taxpayers.
  In addition, I am introducing a bill that would create a point of 
order under the Budget Act against retroactive tax rate increases. 
Because amending the Constitution can be a very long prospect--just 
look at the decades-long effort on behalf of a balanced budget 
amendment--I believe this legislation is necessary to provide needed 
protection for American families from the destabilizing effects of 
retroactive taxation.
  Finally, I am proposing a Senate Rule change making it out of order 
for the Senate to consider retroactive tax rate increases.
  Both proposals, the point of order under the Budget Act and the 
Senate Rule change, are modeled after the existing House Rules 
preventing that body from considering retroactive taxation. In other 
words, by virtue of the fact that the House cannot consider legislation 
so too has the Senate been de facto unable to consider retroactive tax 
rate increases. Now is the time for the Senate to come forward and 
incorporate this fact in its proceedings.
  It was clear to Thomas Jefferson that the only way to preserve 
freedom was to protect its citizens from oppressive taxation. Even the 
Russian Constitution does not allow you to tax retroactively. 
Retroactive taxation is wrong, and it is morally incorrect.
  Families and businesses and communities must know what the rules of 
the road are and that those rules will not change. They have to be able 
to plan their lives, plan their families, and plan their tax burdens in 
advance. They cannot come to the end of a year and have a Congress of 
the United States and a President come forward and say, ``All your 
planning was for naught, and we don't care.''
  I encourage my Colleagues to join me in protecting taxpayers from 
retroactive tax rate increases.

[[Page 4990]]


                                 ______
                                 
      By Mr. LUGAR (for himself, Mr. Gramm, Mr. McCain, Mr. DeWine, Mr. 
        Hagel, Mr. Grams, Mr. Jeffords, Ms. Landrieu, and Mr. 
        Lieberman):
  S. 666. A bill to authorize a new trade and investment policy for 
sub-Saharan Africa; to the Committee on Finance.


               african growth and opportunity act (agoa)

 Mr. LUGAR. Mr. President, I rise to introduce the African 
Growth and Opportunity Act (AGOA). I'm pleased to be joined by Senators 
McCain, Gramm, Hagel, DeWine and Grams as original cosponsors. Our bill 
is designed to provide a broad U.S. policy framework towards the nearly 
fifty countries in sub-Sahara Africa. Specifically, the bill seeks to 
develop active partnerships with African countries through a set of 
trade and investment initiatives and incentives in exchange for a 
commitment from those countries to make the transition to market 
economies.
  For decades U.S. policy towards Africa was based largely on a series 
of bilateral aid relationships. Our involvement in Africa was 
influenced by strategic considerations inherent in the cold war. Our 
assistance programs targeted humanitarian crises and natural disasters 
and they helped nurture a variety of health, nutritional, educational 
and agricultural programs. As important as these programs have been, 
they have not promoted much economic development, fostered much self-
reliance or promoted political stability for the vast majority of the 
people of sub-Sahara Africa. Nor have they particularly benefitted the 
American economy. For these reasons, it is long past due that the 
United States re-evaluate this policy. That is the purpose of our bill.
  Last year, a similar bill was introduced and passed in the House of 
Representatives but did not reach the floor of the Senate. The bill has 
been introduced last month in the House and the House committees have 
been active. Already, the bill is scheduled to be reported by both the 
Ways and Means and International Relations Committees very soon. I 
understand that it is scheduled for a floor vote in the House in the 
next several weeks.
  The Administration supports this legislation because it mirrors its 
own initiatives on Africa. Indeed, President Clinton cited the 
initiative and the bill in his last two State of the Union addresses 
before the Congress. Virtually all African Ambassadors have endorsed 
this bill and are committed to working to pass and enact it this year. 
Our bill enjoys support within the American business community and 
among many non-governmental organizations involved in Africa.
  Mr. President, the AGOA is intended to promote greater economic self-
reliance in Africa through enhanced private sector activity and trade 
incentives for those countries meeting eligibility requirements and 
wishing to participate. The bill authorizes the President to grant 
duty-free treatment to certain products currently excluded from the GSP 
program, subject to the sensitivity analysis of the International Trade 
Commission. It extends the GSP program for Africa for 10 years, a 
provision which is important for long-term business planning.
  The bill also would increase access to U.S. markets for African 
textiles and other products. It would remove U.S. quotas on African 
textile imports which now amount to less than one percent of our 
worldwide textile imports. The bill includes unusually strong 
transshipment language that is the toughest ever proposed. The U.S. 
International Trade Commission estimated last year that reducing 
tariffs on textiles from Africa would have a negligible effect on our 
economy but would give a high boost to Africa's fledgling manufacturing 
base. The jobs and foreign exchange earnings that would be gained in 
Africa under this initiative will enable Africans to purchase more 
products from the United States.
  In my judgement, the AGOA is a modest bill which, if adopted, could 
have immodest results in Africa. It takes a long-term view and provides 
a policy road map for achieving economic growth and opportunity. It 
will take some time for the initiatives embedded in this legislation to 
have a measurable impact on economic growth in Africa. Nonetheless, we 
need to look ahead over the next decades and to assist wherever 
possible in the development of those areas that have not been 
successfully or fully integrated into the world economy. Much of Africa 
falls into this category. My bill is intended to help facilitate that 
transition. Strategic planning now will help create a better, more 
productive and prosperous future.
  Mr. President, our bill includes a number of other attractive 
provisions. It includes two new private sector financed funds--an 
equity fund and an infrastructure fund both of which would be backed by 
the Overseas Private Investment Corporation (OPIC). If successful, 
these funds will lead to improvements in such areas as African roads, 
telecommunications and power plants each of which can accelerate 
economic activity in Africa. It includes provisions for enhanced 
visibility for Africa in our international deliberations on trade and 
finance and increased technical assistance for economic management. It 
establishes a Forum to facilitate high level discussions on trade and 
investment policies between the U.S. and Africa.
  Most importantly, our bill signals the start of a new era in U.S.-
African relations based less on bilateral aid ties and more business 
relationships, less on paternalism and more on partnerships, and one 
that builds upon the long term prospects of African societies rather 
than on short-term, reactive policies.
  Many African societies have been undergoing impressive political and 
economic transformations. Africa's economic potential is substantial. 
There are more than 600 million people in sub-Sahara Africa, but 
Africa's share of foreign annual direct investment commands less than 
two percent of global direct investment flows. Much of that capital 
comes from Europe which has an established market and investment 
presence in Africa. Nonetheless, several African countries enjoy 
sustained economic growth at or above 6%, despite the strains in the 
global economy that began in Southeast Asia and spread to other parts 
of the world. Indeed, U.S. Trade with sub-Sahara Africa exceeds our 
trade with all the states of the former Soviet Union combined and the 
potential for expansion will grow as these economies expand and mature.
  The enhanced trade and private investment benefits in the bill will 
be available to all African societies but especially to those countries 
which undertake sustained economic reform, maintain acceptable human 
rights practices and make progress towards good governance. These 
standards are similar to those applied in other parts of the world. 
Indeed, without these standards the private sector would be unlikely to 
invest in Africa.
  The United States can play a significant role in helping promote 
Africa development. We have a historic opportunity to help integrate 
African countries into the global economy, to re-think dependency on 
foreign assistance and to help strengthen civil society and economic 
and political institutions. No one believes this bill is a panacea for 
Africa, but it is very much in our interests to play a constructive 
role in the evolving economic transition in Africa. If the United 
States has the vision to be a major player in Africa's economic and 
political improvement, we will also be a major beneficiary. If we are 
successful, Africa will provide new trade and investment opportunities 
for the United States. It will also improve the quality of life for a 
broader segment of the people of Africa, a goal we must all support and 
applaud.
  Mr. President, I ask that the proposed African Growth and Opportunity 
Act (AGOA) and a section-by-section description be printed in the 
Record.
  The material follows:

                                 S. 666

       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 ``African 
     Growth and Opportunity Act''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.

[[Page 4991]]

Sec. 2. Findings.
Sec. 3. Statement of policy.
Sec. 4. Eligibility requirements.
Sec. 5. Sub-Saharan Africa defined.

              TITLE I--TRADE POLICY FOR SUB-SAHARAN AFRICA

Sec. 101. United States-Sub-Saharan Africa Trade and Economic 
              Cooperation Forum.
Sec. 102. United States-Sub-Saharan Africa Free Trade Area.
Sec. 103. Eliminating trade barriers and encouraging exports.
Sec. 104. Generalized system of preferences.
Sec. 105. Assistant United States trade representative for Sub-Saharan 
              Africa.
Sec. 106. Reporting requirement.

TITLE II--INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS POLICY FOR SUB-
                             SAHARAN AFRICA

Sec. 201. International financial institutions and debt reduction.
Sec. 202. Executive branch initiatives.
Sec. 203. Sub-Saharan Africa Infrastructure Fund.
Sec. 204. Overseas Private Investment Corporation and Export-Import 
              Bank initiatives.
Sec. 205. Expansion of the United States and foreign commercial service 
              in Sub-Saharan Africa.
Sec. 206. Donation of air traffic control equipment to eligible Sub-
              Saharan African countries.

     SEC. 2. FINDINGS.

       The Congress finds that it is in the mutual economic 
     interest of the United States and sub-Saharan Africa to 
     promote stable and sustainable economic growth and 
     development in sub-Saharan Africa and that sustained economic 
     growth in sub-Saharan Africa depends in large measure upon 
     the development of a receptive environment for trade and 
     investment. To that end, the United States seeks to 
     facilitate market-led economic growth in, and thereby the 
     social and economic development of, the countries of sub-
     Saharan Africa. In particular, the United States seeks to 
     assist sub-Saharan African countries, and the private sector 
     in those countries, to achieve economic self-reliance by--
       (1) strengthening and expanding the private sector in sub-
     Saharan Africa, especially women-owned businesses;
       (2) encouraging increased trade and investment between the 
     United States and sub-Saharan Africa;
       (3) reducing tariff and nontariff barriers and other trade 
     obstacles;
       (4) expanding United States assistance to sub-Saharan 
     Africa's regional integration efforts;
       (5) negotiating free trade areas;
       (6) establishing a United States-Sub-Saharan Africa Trade 
     and Investment Partnership;
       (7) focusing on countries committed to accountable 
     government, economic reform, and the eradication of poverty;
       (8) establishing a United States-Sub-Saharan Africa 
     Economic Cooperation Forum; and
       (9) continuing to support development assistance for those 
     countries in sub-Saharan Africa attempting to build civil 
     societies.

     SEC. 3. STATEMENT OF POLICY.

       The Congress supports economic self-reliance for sub-
     Saharan African countries, particularly those committed to--
       (1) economic and political reform;
       (2) market incentives and private sector growth;
       (3) the eradication of poverty; and
       (4) the importance of women to economic growth and 
     development.

     SEC. 4. ELIGIBILITY REQUIREMENTS.

       (a) In General.--A sub-Saharan African country shall be 
     eligible to participate in programs, projects, or activities, 
     or receive assistance or other benefits under this Act if the 
     President determines that the country does not engage in 
     gross violations of internationally recognized human rights 
     and has established, or is making continual progress toward 
     establishing, a market-based economy, such as the 
     establishment and enforcement of appropriate policies 
     relating to--
       (1) promoting free movement of goods and services between 
     the United States and sub-Saharan Africa and among countries 
     in sub-Saharan Africa;
       (2) promoting the expansion of the production base and the 
     transformation of commodities and nontraditional products for 
     exports through joint venture projects between African and 
     foreign investors;
       (3) trade issues, such as protection of intellectual 
     property rights, improvements in standards, testing, labeling 
     and certification, and government procurement;
       (4) the protection of property rights, such as protection 
     against expropriation and a functioning and fair judicial 
     system;
       (5) appropriate fiscal systems, such as reducing high 
     import and corporate taxes, controlling government 
     consumption, participation in bilateral investment treaties, 
     and the harmonization of such treaties to avoid double 
     taxation;
       (6) foreign investment issues, such as the provision of 
     national treatment for foreign investors, removing 
     restrictions on investment, and other measures to create an 
     environment conducive to domestic and foreign investment;
       (7) supporting the growth of regional markets within a free 
     trade area framework;
       (8) governance issues, such as eliminating government 
     corruption, minimizing government intervention in the market 
     such as price controls and subsidies, and streamlining the 
     business license process;
       (9) supporting the growth of the private sector, in 
     particular by promoting the emergence of a new generation of 
     African entrepreneurs;
       (10) encouraging the private ownership of government-
     controlled economic enterprises through divestiture programs; 
     and
       (11) observing the rule of law, including equal protection 
     under the law and the right to due process and a fair trial.
       (b) Additional Factors.--In determining whether a sub-
     Saharan African country is eligible under subsection (a), the 
     President shall take into account the following factors:
       (1) An expression by such country of its desire to be an 
     eligible country under subsection (a).
       (2) The extent to which such country has made substantial 
     progress toward--
       (A) reducing tariff levels;
       (B) binding its tariffs in the World Trade Organization and 
     assuming meaningful binding obligations in other sectors of 
     trade; and
       (C) eliminating nontariff barriers to trade.
       (3) Whether such country, if not already a member of the 
     World Trade Organization, is actively pursuing membership in 
     that Organization.
       (4) Where applicable, the extent to which such country is 
     in material compliance with its obligations to the 
     International Monetary Fund and other international financial 
     institutions.
       (5) The extent to which such country has a recognizable 
     commitment to reducing poverty, increasing the availability 
     of health care and educational opportunities, the expansion 
     of physical infrastructure in a manner designed to maximize 
     accessibility, increased access to market and credit 
     facilities for small farmers and producers, and improved 
     economic opportunities for women as entrepreneurs and 
     employees, and promoting and enabling the formation of 
     capital to support the establishment and operation of micro-
     enterprises.
       (6) Whether or not such country engages in activities that 
     undermine United States national security or foreign policy 
     interests.
       (c) Continuing Compliance.--
       (1) Monitoring and review of certain countries.--The 
     President shall monitor and review the progress of sub-
     Saharan African countries in order to determine their current 
     or potential eligibility under subsection (a). Such 
     determinations shall be based on quantitative factors to the 
     fullest extent possible and shall be included in the annual 
     report required by section 106.
       (2) Ineligibility of certain countries.--A sub-Saharan 
     African country described in paragraph (1) that has not made 
     continual progress in meeting the requirements with which it 
     is not in compliance shall be ineligible to participate in 
     programs, projects, or activities, or receive assistance or 
     other benefits, under this Act.

     SEC. 5. SUB-SAHARAN AFRICA DEFINED.

       For purposes of this Act, the terms ``sub-Saharan Africa'', 
     ``sub-Saharan African country'', ``country in sub-Saharan 
     Africa'', and ``countries in sub-Saharan Africa'' refer to 
     the following or any successor political entities:
       Republic of Angola (Angola)
       Republic of Botswana (Botswana)
       Republic of Burundi (Burundi)
       Republic of Cape Verde (Cape Verde)
       Republic of Chad (Chad)
       Democratic Republic of Congo
       Republic of the Congo (Congo)
       Republic of Djibouti (Djibouti)
       State of Eritrea (Eritrea)
       Gabonese Republic (Gabon)
       Republic of Ghana (Ghana)
       Republic of Guinea-Bissau (Guinea-Bissau)
       Kingdom of Lesotho (Lesotho)
       Republic of Madagascar (Madagascar)
       Republic of Mali (Mali)
       Republic of Mauritius (Mauritius)
       Republic of Namibia (Namibia)
       Federal Republic of Nigeria (Nigeria)
       Democratic Republic of Sao Tome and Principe (Sao Tome and 
     Principe)
       Republic of Sierra Leone (Sierra Leone)
       Somalia
       Kingdom of Swaziland (Swaziland)
       Republic of Togo (Togo)
       Republic of Zimbabwe (Zimbabwe)
       Republic of Benin (Benin)
       Burkina Faso (Burkina)
       Republic of Cameroon (Cameroon)
       Central African Republic
       Federal Islamic Republic of the Comoros (Comoros)
       Republic of Cote d'Ivoire (Cote d'Ivoire)
       Republic of Equatorial Guinea (Equatorial Guinea)
       Ethiopia
       Republic of the Gambia (Gambia)
       Republic of Guinea (Guinea)
       Republic of Kenya (Kenya)
       Republic of Liberia (Liberia)
       Republic of Malawi (Malawi)
       Islamic Republic of Mauritania (Mauritania)
       Republic of Mozambique (Mozambique)
       Republic of Niger (Niger)
       Republic of Rwanda (Rwanda)

[[Page 4992]]

       Republic of Senegal (Senegal)
       Republic of Seychelles (Seychelles)
       Republic of South Africa (South Africa)
       Republic of Sudan (Sudan)
       United Republic of Tanzania (Tanzania)
       Republic of Uganda (Uganda)
       Republic of Zambia (Zambia)
              TITLE I--TRADE POLICY FOR SUB-SAHARAN AFRICA

     SEC. 101. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC 
                   COOPERATION FORUM.

       (a) Declaration of Policy.--The President shall convene 
     annual high-level meetings between appropriate officials of 
     the United States Government and officials of the governments 
     of sub-Saharan African countries in order to foster close 
     economic ties between the United States and sub-Saharan 
     Africa.
       (b) Establishment.--Not later than 12 months after the date 
     of the enactment of this Act, the President, after consulting 
     with Congress and the governments concerned, shall establish 
     a United States-Sub-Saharan Africa Trade and Economic 
     Cooperation Forum (in this section referred to as the 
     ``Forum'').
       (c) Requirements.--In creating the Forum, the President 
     shall meet the following requirements:
       (1) The President shall direct the Secretary of Commerce, 
     the Secretary of the Treasury, the Secretary of State, and 
     the United States Trade Representative to host the first 
     annual meeting with the counterparts of such Secretaries from 
     the governments of sub-Saharan African countries eligible 
     under section 4, the Secretary General of the Organization of 
     African Unity, and government officials from other 
     appropriate countries in Africa, to discuss expanding trade 
     and investment relations between the United States and sub-
     Saharan Africa and the implementation of this Act including 
     encouraging joint ventures between small and large 
     businesses.
       (2)(A) The President, in consultation with the Congress, 
     shall encourage United States nongovernmental organizations 
     to host annual meetings with nongovernmental organizations 
     from sub-Saharan Africa in conjunction with the annual 
     meetings of the Forum for the purpose of discussing the 
     issues described in paragraph (1).
       (B) The President, in consultation with the Congress, shall 
     encourage United States representatives of the private sector 
     to host annual meetings with representatives of the private 
     sector from sub-Saharan Africa in conjunction with the annual 
     meetings of the Forum for the purpose of discussing the 
     issues described in paragraph (1).
       (3) The President shall, to the extent practicable, meet 
     with the heads of governments of sub-Saharan African 
     countries eligible under section 4 not less than once every 
     two years for the purpose of discussing the issues described 
     in paragraph (1). The first such meeting should take place 
     not later than twelve months after the date of the enactment 
     of this Act.
       (d) Dissemination of Information by USIA.--In order to 
     assist in carrying out the purposes of the Forum, the United 
     States Information Agency shall disseminate regularly, 
     through multiple media, economic information in support of 
     the free market economic reforms described in this Act.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
       (f) Limitation on Use of Funds.--None of the funds 
     authorized under this section may be used to create or 
     support any nongovernmental organization for the purpose of 
     expanding or facilitating trade between the United States and 
     sub-Saharan Africa.

     SEC. 102. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.

       (a) Declaration of Policy.--The Congress declares that a 
     United States-Sub-Saharan Africa Free Trade Area should be 
     established, or free trade agreements should be entered into, 
     in order to serve as the catalyst for increasing trade 
     between the United States and sub-Saharan Africa and 
     increasing private sector development in sub-Saharan Africa.
       (b) Plan Requirement.--
       (1) In general.--The President, taking into account the 
     provisions of the treaty establishing the African Economic 
     Community and the willingness of the governments of sub-
     Saharan African countries to engage in negotiations to enter 
     into free trade agreements, shall develop a plan for the 
     purpose of entering into one or more trade agreements with 
     sub-Saharan African countries eligible under section 4 in 
     order to establish a United States-Sub-Saharan Africa Free 
     Trade Area (in this section referred to as the ``Free Trade 
     Area'').
       (2) Elements of plan.--The plan shall include the 
     following:
       (A) The specific objectives of the United States with 
     respect to the establishment of the Free Trade Area and a 
     suggested timetable for achieving those objectives.
       (B) The benefits to both the United States and sub-Saharan 
     Africa with respect to the Free Trade Area.
       (C) A mutually agreed-upon timetable for establishing the 
     Free Trade Area.
       (D) The implications for and the role of regional and sub-
     regional organizations in sub-Saharan Africa with respect to 
     the Free Trade Area.
       (E) Subject matter anticipated to be covered by the 
     agreement for establishing the Free Trade Area and United 
     States laws, programs, and policies, as well as the laws of 
     participating eligible African countries and existing 
     bilateral and multilateral and economic cooperation and trade 
     agreements, that may be affected by the agreement or 
     agreements.
       (F) Procedures to ensure the following:
       (i) Adequate consultation with the Congress and the private 
     sector during the negotiation of the agreement or agreements 
     for establishing the Free Trade Area.
       (ii) Consultation with the Congress regarding all matters 
     relating to implementation of the agreement or agreements.
       (iii) Approval by the Congress of the agreement or 
     agreements.
       (iv) Adequate consultations with the relevant African 
     governments and African regional and subregional 
     intergovernmental organizations during the negotiations of 
     the agreement or agreements.
       (c) Reporting Requirement.--Not later than 12 months after 
     the date of the enactment of this Act, the President shall 
     prepare and transmit to the Congress a report containing the 
     plan developed pursuant to subsection (b).

     SEC. 103. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.

       (a) Findings.--The Congress makes the following findings:
       (1) The lack of competitiveness of sub-Saharan Africa in 
     the global market, especially in the manufacturing sector, 
     make it a limited threat to market disruption and no threat 
     to United States jobs.
       (2) Annual textile and apparel exports to the United States 
     from sub-Saharan Africa represent less than 1 percent of all 
     textile and apparel exports to the United States, which 
     totaled $54,001,863,000 in 1997.
       (3) Sub-Saharan Africa has limited textile manufacturing 
     capacity. During 1999 and the succeeding 4 years, this 
     limited capacity to manufacture textiles and apparel is 
     projected to grow at a modest rate. Given this limited 
     capacity to export textiles and apparel, it will be very 
     difficult for these exports from sub-Saharan Africa, during 
     1999 and the succeeding 9 years, to exceed 3 percent annually 
     of total imports of textile and apparel to the United States. 
     If these exports from sub-Saharan Africa remain around 3 
     percent of total imports, they will not represent a threat to 
     United States workers, consumers, or manufacturers.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) it would be to the mutual benefit of the countries in 
     sub-Saharan Africa and the United States to ensure that the 
     commitments of the World Trade Organization and associated 
     agreements are faithfully implemented in each of the member 
     countries, so as to lay the groundwork for sustained growth 
     in textile and apparel exports and trade under agreed rules 
     and disciplines;
       (2) reform of trade policies in sub-Saharan Africa with the 
     objective of removing structural impediments to trade, 
     consistent with obligations under the World Trade 
     Organization, can assist the countries of the region in 
     achieving greater and greater diversification of textile and 
     apparel export commodities and products and export markets; 
     and
       (3) the President should support textile and apparel trade 
     reform in sub-Saharan Africa by, among other measures, 
     providing technical assistance, sharing of information to 
     expand basic knowledge of how to trade with the United 
     States, and encouraging business-to-business contacts with 
     the region.
       (c) Treatment of Quotas.--
       (1) Kenya and mauritius.--Pursuant to the Agreement on 
     Textiles and Clothing, the United States shall eliminate the 
     existing quotas on textile and apparel exports to the United 
     States--
       (A) from Kenya within 30 days after that country adopts an 
     efficient visa system to guard against unlawful transshipment 
     of textile and apparel goods and the use of counterfeit 
     documents; and
       (B) from Mauritius within 30 days after that country adopts 
     such a visa system.

     The Customs Service shall provide the necessary technical 
     assistance to Kenya and Mauritius in the development and 
     implementation of those visa systems.
       (2) Other sub-saharan countries.--The President shall 
     continue the existing no quota policy for countries in sub-
     Saharan Africa. The President shall submit to the Congress, 
     not later than March 31 of each year, a report on the growth 
     in textiles and apparel exports to the United States from 
     countries in sub-Saharan Africa in order to protect United 
     States consumers, workers, and textile manufacturers from 
     economic injury on account of the no quota policy.
       (d) Customs Procedures and Enforcement.--
       (1) Actions by countries against transshipment and 
     circumvention.--The President should ensure that any country 
     in sub-Saharan Africa that intends to export textile and 
     apparel goods to the United States--
       (A) has in place a functioning and effective visa system 
     and domestic laws and enforcement procedures to guard against 
     unlawful transshipment of textile and apparel goods and the 
     use of counterfeit documents; and

[[Page 4993]]

       (B) will cooperate fully with the United States to address 
     and take action necessary to prevent circumvention, as 
     provided in Article 5 of the Agreement on Textiles and 
     Clothing.
       (2) Penalties against exporters.--If the President 
     determines, based on sufficient evidence, that an exporter 
     has willfully falsified information regarding the country of 
     origin, manufacture, processing, or assembly of a textile or 
     apparel article for which duty-free treatment under section 
     503(a)(1)(C) of the Trade Act of 1974 is claimed, then the 
     President shall deny to such exporter, and any successors of 
     such exporter, for a period of 2 years, duty-free treatment 
     under such section for textile and apparel articles.
       (3) Applicability of united states laws and procedures.--
     All provisions of the laws, regulations, and procedures of 
     the United States relating to the denial of entry of articles 
     or penalties against individuals or entities for engaging in 
     illegal transshipment, fraud, or other violations of the 
     customs laws shall apply to imports from Sub-Saharan 
     countries.
       (4) Monitoring and reports to congress.--The Customs 
     Service shall monitor and the Commissioner of Customs shall 
     submit to the Congress, not later than March 31 of each year, 
     a report on the effectiveness of the visa systems described 
     in subsection (c)(1) and paragraph (1) of this subsection and 
     on measures taken by countries in Sub-Saharan Africa which 
     export textiles or apparel to the United States to prevent 
     circumvention as described in Article 5 of the Agreement on 
     Textiles and Clothing.
       (e) Definition.--For purposes of this section, the term 
     ``Agreement on Textiles and Clothing'' means the Agreement on 
     Textiles and Clothing referred to in section 101(d)(4) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

     SEC. 104. GENERALIZED SYSTEM OF PREFERENCES.

       (a) Preferential Tariff Treatment for Certain Articles.--
     Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C. 
     2463(a)(1)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Eligible countries in sub-saharan africa.--The 
     President may provide duty-free treatment for any article set 
     forth in paragraph (1) of subsection (b) that is the growth, 
     product, or manufacture of an eligible country in sub-Saharan 
     Africa that is a beneficiary developing country, if, after 
     receiving the advice of the International Trade Commission in 
     accordance with subsection (e), the President determines that 
     such article is not import-sensitive in the context of 
     imports from eligible countries in sub-Saharan Africa. This 
     subparagraph shall not affect the designation of eligible 
     articles under subparagraph (B).''.
       (b) Rules of Origin.--Section 503(a)(2) of the Trade Act of 
     1974 (19 U.S.C. 2463(a)(2)) is amended by adding at the end 
     the following:
       ``(C) Eligible countries in sub-saharan africa.--For 
     purposes of determining the percentage referred to in 
     subparagraph (A) in the case of an article of an eligible 
     country in sub-Saharan Africa that is a beneficiary 
     developing country--
       ``(i) if the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to that article, an amount not to exceed 15 percent 
     of the appraised value of the article at the time it is 
     entered that is attributed to such United States cost or 
     value may be applied toward determining the percentage 
     referred to in subparagraph (A); and
       ``(ii) the cost or value of the materials included with 
     respect to that article that are produced in any beneficiary 
     developing country that is an eligible country in sub-Saharan 
     Africa shall be applied in determining such percentage.''.
       (c) Waiver of Competitive Need Limitation.--Section 
     503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C. 
     2463(c)(2)(D)) is amended to read as follows:
       ``(D) Least-developed beneficiary developing countries and 
     eligible countries in sub-saharan africa.--Subparagraph (A) 
     shall not apply to any least-developed beneficiary developing 
     country or any eligible country in sub-Saharan Africa.''.
       (d) Extension of Program.--Section 505 of the Trade Act of 
     1974 (19 U.S.C. 2465) is amended to read as follows:

     ``SEC. 505. DATE OF TERMINATION.

       ``(a) Countries in Sub-Saharan Africa.--No duty-free 
     treatment provided under this title shall remain in effect 
     after June 30, 2009, with respect to beneficiary developing 
     countries that are eligible countries in sub-Saharan Africa.
       ``(b) Other Countries.--No duty-free treatment provided 
     under this title shall remain in effect after June 30, 1999, 
     with respect to beneficiary developing countries other than 
     those provided for in subsection (a).''.
       (e) Definition.--Section 507 of the Trade Act of 1974 (19 
     U.S.C. 2467) is amended by adding at the end the following:
       ``(6) Eligible country in sub-saharan africa.--The terms 
     `eligible country in sub-Saharan Africa' and `eligible 
     countries in sub-Saharan Africa' mean a country or countries 
     that the President has determined to be eligible under 
     section 4 of the African Growth and Opportunity Act.''.
       (f) Effective Date.--The amendments made by this section 
     take effect on July 1, 1999.

     SEC. 105. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR 
                   SUB-SAHARAN AFRICA.

       (a) Sense of Congress.--It is the sense of the Congress 
     that the position of Assistant United States Trade 
     Representative for African Affairs is integral to the United 
     States commitment to increasing United States--sub-Saharan 
     African trade and investment.
       (b) Maintenance of Position.--The President shall maintain 
     a position of Assistant United States Trade Representative 
     for African Affairs within the Office of the United States 
     Trade Representative to direct and coordinate interagency 
     activities on United States-Africa trade policy and 
     investment matters and serve as--
       (1) a primary point of contact in the executive branch for 
     those persons engaged in trade between the United States and 
     sub-Saharan Africa; and
       (2) the chief advisor to the United States Trade 
     Representative on issues of trade with Africa.
       (c) Funding and Staff.--The President shall ensure that the 
     Assistant United States Trade Representative for African 
     Affairs has adequate funding and staff to carry out the 
     duties described in subsection (b), subject to the 
     availability of appropriations.

     SEC. 106. REPORTING REQUIREMENT.

       The President shall submit to the Congress, not later than 
     1 year after the date of the enactment of this Act, and not 
     later than the end of each of the next 6 1-year periods 
     thereafter, a comprehensive report on the trade and 
     investment policy of the United States for sub-Saharan 
     Africa, and on the implementation of this Act. The last 
     report required by section 134(b) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3554(b)) shall be consolidated and 
     submitted with the first report required by this section.
TITLE II--INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS POLICY FOR SUB-
                             SAHARAN AFRICA

     SEC. 201. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT 
                   REDUCTION.

       (a) Better Mechanisms To Further Goals for Sub-Saharan 
     Africa.--It is the sense of the Congress that the Secretary 
     of the Treasury should instruct the United States Executive 
     Directors of the International Bank for Reconstruction and 
     Development, the International Monetary Fund, and the African 
     Development Bank to use the voice and votes of the Executive 
     Directors to encourage vigorously their respective 
     institutions to develop enhanced mechanisms which further the 
     following goals in eligible countries in sub-Saharan Africa:
       (1) Strengthening and expanding the private sector, 
     especially among women-owned businesses.
       (2) Reducing tariffs, nontariff barriers, and other trade 
     obstacles, and increasing economic integration.
       (3) Supporting countries committed to accountable 
     government, economic reform, the eradication of poverty, and 
     the building of civil societies.
       (4) Supporting deep debt reduction at the earliest possible 
     date with the greatest amount of relief for eligible poorest 
     countries under the ``Heavily Indebted Poor Countries'' 
     (HIPC) debt initiative.
       (b) Sense of Congress.--It is the sense of the Congress 
     that relief provided to countries in sub-Saharan Africa which 
     qualify for the Heavily Indebted Poor Countries debt 
     initiative should primarily be made through grants rather 
     than through extended-term debt, and that interim relief or 
     interim financing should be provided for eligible countries 
     that establish a strong record of macroeconomic reform.

     SEC. 202. EXECUTIVE BRANCH INITIATIVES.

       (a) Statement of Congress.--The Congress recognizes that 
     the stated policy of the executive branch in 1997, the 
     ``Partnership for Growth and Opportunity in Africa'' 
     initiative, is a step toward the establishment of a 
     comprehensive trade and development policy for sub-Saharan 
     Africa. It is the sense of the Congress that this Partnership 
     is a companion to the policy goals set forth in this Act.
       (b) Technical Assistance To Promote Economic Reforms and 
     Development.--In addition to continuing bilateral and 
     multilateral economic and development assistance, the 
     President shall target technical assistance toward--
       (1) developing relationships between United States firms 
     and firms in sub-Saharan Africa through a variety of business 
     associations and networks;
       (2) providing assistance to the governments of sub-Saharan 
     African countries to--
       (A) liberalize trade and promote exports;
       (B) bring their legal regimes into compliance with the 
     standards of the World Trade Organization in conjunction with 
     membership in that Organization;
       (C) make financial and fiscal reforms; and
       (D) promote greater agribusiness linkages;
       (3) addressing such critical agricultural policy issues as 
     market liberalization, agricultural export development, and 
     agribusiness investment in processing and transporting 
     agricultural commodities;

[[Page 4994]]

       (4) increasing the number of reverse trade missions to 
     growth-oriented countries in sub-Saharan Africa;
       (5) increasing trade in services; and
       (6) encouraging greater sub-Saharan participation in future 
     negotiations in the World Trade Organization on services and 
     making further commitments in their schedules to the General 
     Agreement on Trade in Services in order to encourage the 
     removal of tariff and nontariff barriers.

     SEC. 203. SUB-SAHARAN AFRICA INFRASTRUCTURE FUND.

       (a) Initiation of Funds.--It is the sense of the Congress 
     that the Overseas Private Investment Corporation should 
     exercise the authorities it has to initiate an equity fund or 
     equity funds in support of projects in the countries in sub-
     Saharan Africa, in addition to the existing equity fund for 
     sub-Saharan Africa created by the Corporation.
       (b) Structure and Types of Funds.--
       (1) Structure.--Each fund initiated under subsection (a) 
     should be structured as a partnership managed by professional 
     private sector fund managers and monitored on a continuing 
     basis by the Corporation.
       (2) Capitalization.--Each fund should be capitalized with a 
     combination of private equity capital, which is not 
     guaranteed by the Corporation, and debt for which the 
     Corporation provides guaranties.
       (3) Infrastructure fund.--One or more of the funds, with 
     combined assets of up to $500,000,000, should be used in 
     support of infrastructure projects in countries of sub-
     Saharan Africa.
       (4) Emphasis.--The Corporation shall ensure that the funds 
     are used to provide support in particular to women 
     entrepreneurs and to innovative investments that expand 
     opportunities for women and maximize employment opportunities 
     for poor individuals.

     SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
                   IMPORT BANK INITIATIVES.

       (a) Overseas Private Investment Corporation.--
       (1) Advisory committee.--Section 233 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2193) is amended by adding 
     at the end the following:
       ``(e) Advisory Committee.--The Board shall take prompt 
     measures to increase the loan, guarantee, and insurance 
     programs, and financial commitments, of the Corporation in 
     sub-Saharan Africa, including through the use of an advisory 
     committee to assist the Board in developing and implementing 
     policies, programs, and financial instruments with respect to 
     sub-Saharan Africa. In addition, the advisory committee shall 
     make recommendations to the Board on how the Corporation can 
     facilitate greater support by the United States for trade and 
     investment with and in sub-Saharan Africa. The advisory 
     committee shall terminate 4 years after the date of the 
     enactment of this subsection.''.
       (2) Reports to the congress.--Within 6 months after the 
     date of the enactment of this Act, and annually for each of 
     the 4 years thereafter, the Board of Directors of the 
     Overseas Private Investment Corporation shall submit to the 
     Congress a report on the steps that the Board has taken to 
     implement section 233(e) of the Foreign Assistance Act of 
     1961 (as added by paragraph (1)) and any recommendations of 
     the advisory board established pursuant to such section.
       (b) Export-Import Bank.--
       (1) Advisory committee for sub-saharan africa.--Section 
     2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) 
     is amended by inserting after paragraph (12) the following:
       ``(13)(A) The Board of Directors of the Bank shall take 
     prompt measures, consistent with the credit standards 
     otherwise required by law, to promote the expansion of the 
     Bank's financial commitments in sub-Saharan Africa under the 
     loan, guarantee, and insurance programs of the Bank.
       ``(B)(i) The Board of Directors shall establish and use an 
     advisory committee to advise the Board of Directors on the 
     development and implementation of policies and programs 
     designed to support the expansion described in subparagraph 
     (A).
       ``(ii) The advisory committee shall make recommendations to 
     the Board of Directors on how the Bank can facilitate greater 
     support by United States commercial banks for trade with sub-
     Saharan Africa.
       ``(iii) The advisory committee shall terminate 4 years 
     after the date of the enactment of this subparagraph.''.
       (2) Reports to the congress.--Within 6 months after the 
     date of the enactment of this Act, and annually for each of 
     the 4 years thereafter, the Board of Directors of the Export-
     Import Bank of the United States shall submit to the Congress 
     a report on the steps that the Board has taken to implement 
     section 2(b)(13)(B) of the Export-Import Bank Act of 1945 (as 
     added by paragraph (1)) and any recommendations of the 
     advisory committee established pursuant to such section.

     SEC. 205. EXPANSION OF THE UNITED STATES AND FOREIGN 
                   COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.

       (a) Findings.--The Congress makes the following findings:
       (1) The United States and Foreign Commercial Service 
     (hereafter in this section referred to as the ``Commercial 
     Service'') plays an important role in helping United States 
     businesses identify export opportunities and develop reliable 
     sources of information on commercial prospects in foreign 
     countries.
       (2) During the 1980s, the presence of the Commercial 
     Service in sub-Saharan Africa consisted of 14 professionals 
     providing services in eight countries. By early 1997, that 
     presence had been reduced by half to seven, in only four 
     countries.
       (3) Since 1997, the Department of Commerce has slowly begun 
     to increase the presence of the Commercial Service in sub-
     Saharan Africa, adding five full-time officers to established 
     posts.
       (4) Although the Commercial Service Officers in these 
     countries have regional responsibilities, this kind of 
     coverage does not adequately service the needs of United 
     States businesses attempting to do business in sub-Saharan 
     Africa.
       (5) The Congress has, on several occasions, encouraged the 
     Commercial Service to focus its resources and efforts in 
     countries or regions in Europe or Asia to promote greater 
     United States export activity in those markets.
       (6) Because market information is not widely available in 
     many sub-Saharan African countries, the presence of 
     additional Commercial Service Officers and resources can play 
     a significant role in assisting United States businesses in 
     markets in those countries.
       (b) Appointments.--Subject to the availability of 
     appropriations, by not later than December 31, 2000, the 
     Secretary of Commerce, acting through the Assistant Secretary 
     of Commerce and Director General of the United States and 
     Foreign Commercial Service, shall take steps to ensure that--
       (1) at least 20 full-time Commercial Service employees are 
     stationed in sub-Saharan Africa; and
       (2) full-time Commercial Service employees are stationed in 
     not less than ten different sub-Saharan African countries.
       (c) Commercial Service Initiative for Sub-Saharan Africa.--
     In order to encourage the export of United States goods and 
     services to sub-Saharan African countries, the Commercial 
     Service shall make a special effort to--
       (1) identify United States goods and services which are not 
     being exported to sub-Saharan African countries but which are 
     being exported to those countries by competitor nations;
       (2) identify, where appropriate, trade barriers and 
     noncompetitive actions, including violations of intellectual 
     property rights, that are preventing or hindering sales of 
     United States goods and services to, or the operation of 
     United States companies in, sub-Saharan Africa;
       (3) present, periodically, a list of the goods and services 
     identified under paragraph (1), and any trade barriers or 
     noncompetitive actions identified under paragraph (2), to 
     appropriate authorities in sub-Saharan African countries with 
     a view to securing increased market access for United States 
     exporters of goods and services;
       (4) facilitate the entrance by United States businesses 
     into the markets identified under paragraphs (1) and (2); and
       (5) monitor and evaluate the results of efforts to increase 
     the sales of goods and services in such markets.
       (d) Reports to Congress.--Not later than one year after the 
     date of the enactment of this Act, and each year thereafter 
     for five years, the Secretary of Commerce, in consultation 
     with the Secretary of State, shall report to the Congress on 
     actions taken to carry out subsections (b) and (c). Each 
     report shall specify--
       (1) in what countries full-time Commercial Service Officers 
     are stationed, and the number of such officers placed in each 
     such country;
       (2) the effectiveness of the presence of the additional 
     Commercial Service Officers in increasing United States 
     exports to sub-Saharan African countries; and
       (3) the specific actions taken by Commercial Service 
     Officers, both in sub-Saharan African countries and in the 
     United States, to carry out subsection (c), including 
     identifying a list of targeted export sectors and countries.

     SEC. 206. DONATION OF AIR TRAFFIC CONTROL EQUIPMENT TO 
                   ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.

       It is the sense of the Congress that, to the extent 
     appropriate, the United States Government should make every 
     effort to donate to governments of sub-Saharan African 
     countries (determined to be eligible under section 4 of this 
     Act) air traffic control equipment that is no longer in use, 
     including appropriate related reimbursable technical 
     assistance.
                                  ____


 African Growth and Opportunity Act (AGOA)--Section-by-Section Summary

       Policy. The AGOA establishes as U.S. policy the creation of 
     a transition path from development assistance to economic 
     self-reliance for those sub-Sahara countries committed to 
     economic and political reform, market incentives and private 
     sector growth. Eligibility requirements are established for 
     participation in the programs and benefits of the bill. The 
     bill will not require any cuts or

[[Page 4995]]

     increases in the USAID budget. The bill includes separate 
     Trade and Foreign Policy Titles.
       Free Trade Area. The AGOA directs the President to develop 
     a plan for trade agreements to establish a U.S.-Sub Sahara 
     Africa Free Trade Area to provide an incentive for increasing 
     trade between the U.S. and Africa and to stimulate private 
     sector development in the region.
       Trade Initiative. The AGOA would eliminate quotas on 
     textiles and apparel from Kenya and Mauritius after these 
     countries adopt a visa system to guard against transshipment. 
     It continues the existing no-quota policy in Africa through 
     2005. Further, it authorizes the President to grant duty-free 
     treatment for certain products from Africa currently excluded 
     from the GSP program, subject to an import sensitivity 
     analysis by the ITC, and extends the GSP program for Africa 
     for 10 years.
       U.S.-Africa Economic Forum. The AGOA would establish a 
     U.S.-Africa Economic Forum to facilitate annual high level 
     discussions of bilateral and multilateral trade and 
     investment policies and initiatives. The Forum would work 
     with the private sector to develop a long term trade and 
     investment agenda.
       Equity and Investment Funds. The AGOA directs OPIC to 
     create a privately-funded $150 million equity fund and 
     privately-funded $500 Million infrastructure fund for Africa. 
     Both funds would support innovative investment policies to 
     expand opportunities for women and to maximize employment 
     opportunities for the poor.
       Greater Attention to Africa. The AGOA calls for at least 
     one member of the board of directors of the EX-IM Bank and 
     the OPIC to have extensive private sector experience in 
     Africa. Both the Bank and OPIC would establish private sector 
     advisory committees with experience in Africa and both would 
     report periodically to the Congress on their loan, guarantee 
     and insurance programs in Africa.

 Mr. McCAIN. Mr. President, I rise today to support legislation 
introduced by my esteemed colleague, Senator Lugar. The African Growth 
and Opportunity Act will create an historic new U.S. trade and 
investment policy for Africa.
  It is regrettable that the public perception of Sub-Saharan Africa 
remains a region which is underdeveloped, poor, ravaged by famine and 
wars, and ruled by authoritarian leaders. This is not an accurate 
picture of today's Africa.
  The Africa of the late 1990s is a continent struggling on the road to 
economic and political reform. Some 30 Sub-Saharan African countries 
are implementing economic reforms, including liberalizing trade and 
investment regimes, rationalizing tariff and exchange rates, and 
reducing barriers to investment and stock market development. In 
addition, more than 30 Sub-Saharan African countries are also in 
various stages of democratic transformation that will allow their 
citizens to have the same type of participation in their governments 
that, as Americans, we hold dear. Nigeria's recent election, despite 
its flaws, is a concrete example of the movement toward democracy in 
Africa.
  The African Growth and Opportunity Act is an important piece of 
legislation designed to promote continued reform in Africa. The main 
strength of the bill is its reliance on trade incentives, not financial 
aid. These trade incentives are intended to result in the political and 
economic well-being of African citizens. American companies are given 
incentives to invest in these countries, and help them learn how to 
become members of the world marketplace. For many years, we have poured 
our financial resources into foreign aid programs that have met with 
limited success. This bill is based on the commonsense principle that 
if you give a nation a handout, you feed it for a day, but if you teach 
it to grow and trade, you assist it to reach permanent independence and 
self-reliance.
  There is also a benefit for the United States in this legislation. 
Currently, United States' exports to Sub-Saharan Africa are $6 billion, 
which support 100,000 American jobs. However, the U.S. has only a 7 
percent share in the African market, while Europe has a 40 percent 
share. More U.S. trade and investment in Sub-Saharan Africa will 
increase U.S. market share, and create more jobs here in the U.S.
  More important, it should be pointed out that this legislation will 
foster interdependence and economic growth between countries that have 
been torn apart by war, disease, and harmful economic policies. By 
trading with the United States and each other, these nations will see 
the benefits of peace and stability to economic growth. An 
interdependent and democratic Africa will be less likely to suffer from 
civil strife.
  I hope that my colleagues will join us in supporting this legislation 
that will open up a new chapter in U.S.-African relations.
                                 ______
                                 
      By Mr. McCain:
  S. 667. A bill to improve and reform elementary and secondary 
education; to the Committee on Finance.


           Educating America's Children for Tomorrow (ED-ACT)

  Mr. McCain. President, centuries ago, Aristotle wrote, ``All who have 
meditated in the art of governing mankind have been convinced that the 
fate of empires depends on the education of the youth.'' His words 
still hold true today. Educating our children is a critical component 
in their quest for personal success and fulfillment, but it also plays 
a pivotal role in the success of our nation economically, 
intellectually, civically and morally.
  Like many Americans, I have grave concerns about the current 
condition of our nation's education system. If a report card on our 
educational system were sent home today, it would be full of 
unsatisfactory and incomplete marks. In fact, it would be full of 
``D's'' and ``F's.'' These abominable grades demonstrate our failure to 
meet the needs of our nation's students in kindergarten through twelfth 
grade.
  Failure is clearly evident throughout the educational system. One 
prominent illustration of our nation's failure is seen in the results 
of the Third International Mathematics and Science Study (TIMSS.) Over 
forty countries participated in the 1996 study which tested science and 
mathematical abilities of students in the fourth, eighth and twelfth 
grades. Tragically, American students scored lower than students in 
other countries. According to this study, our twelfth graders scored 
near the bottom, placing 19th out of 21 nations in math and 16th in 
science, while scoring at the absolutely bottom in physics.
  Meanwhile, students in countries which are struggling economically, 
socially and politically, such as Russia, outscored U.S. children in 
math and scored far above them in advanced math and physics. Clearly, 
we must make significant changes in our children's academic performance 
in order to remain a viable force in the world economy.
  We can also see our failure when we look at the federal government's 
efforts to combat illiteracy. We spend over $8 billion a year on 
programs to eradicate illiteracy across the country. Yet, we have not 
seen any significant improvement in literacy in any segment of our 
population. Today, more than 40 million Americans cannot read a menu, 
instructions, medicine labels or a newspaper. And, tragically, four out 
of ten children in third grade cannot read.
  For too long, Washington has been creating new educational programs 
which provide good sound-bites for politicians, make great campaign 
slogans, or serve the specific needs of select interests groups, but 
completely ignore the fundamental academic needs of our children. The 
time has come for us to free our schools from the shackles of the 
federal government and give them the freedom and the tools to educate 
children.
  The first step is putting parents back in charge. Federal education 
dollars should be spent where they do the most good. The ED-ACT would 
funnel millions of dollars directly into our classrooms, rather than 
wasting education dollars on federal red tape. By sending federal 
elementary and secondary education funds directly to local education 
agencies (LEAs), schools will be able to utilize the funds for the 
unique needs of their students rather than wasting their time jumping 
through hoops for government bureaucrats. Giving the money directly to 
the LEAs with strong accountability requirements for the academic 
performance and improvement of our children is the right thing to do.
  We must have higher learning expectations for our children, but we 
cannot

[[Page 4996]]

and should not have these standards controlled at the national level. 
States and local communities must control the development, 
implementation and assessment of academic standards. This bill would 
prohibit federal funds from being used to develop or implement national 
education tests. National tests and standards only result in new 
bureaucracies, depriving parents of the opportunity to manage the 
education of their children.
  ED-ACT strengthens and reauthorizes the successful Troops to Teachers 
program. As many of my colleagues know, the Troops to Teachers program 
was initially created in 1993 to assist military personnel affected by 
defense downsizing who were interested in utilizing their knowledge, 
professional skills and expertise as teachers. Unfortunately, the 
authorization for this program is set to expire at the end of this 
fiscal year.
  Local school districts across the city are facing a shortage of two 
million teachers over the next decade, and the Troops to Teachers 
program is an important resource to help schools address this shortfall 
by recruiting, funding and retaining new teachers to make America's 
children ready for tomorrow, particularly in the areas of math, reading 
and science.
  ED-ACT would also encourage states to ensure that all Americans are 
fluent in English, while helping develop innovative initiatives to 
promote the importance of foreign language skills. The ability to speak 
one or more languages, in addition to English, is a tremendous resource 
to the U.S. because it enhances our competitiveness in global markets. 
Multilingualism also enhances our nation's diplomatic efforts and 
leadership role on the international front by fostering greater 
communication and understanding between people of all nations and 
cultures.
  ED-ACT provides educational opportunities for disadvantaged children 
by providing parents and students the freedom to choose the best school 
for their unique academic needs, while encouraging schools to be 
creative and responsive to the needs of all students. This three-year 
demonstration would allow up to ten states or localities to implement a 
voucher program empowering low-income parents with more options for 
their child's education. Parents should be allowed to use their tax 
dollars to send their children to the school of their choice, public or 
private. Tuition vouchers would give low- income families the same 
choice.
  ED-ACT also creates additional financial opportunities for parents, 
guardians and communities to plan for the educational expenses of their 
children. First, it would increase the amount allowed to be contributed 
to a higher education IRA from $500 to $1,000 annually. Under current 
law, the maximum amount which could be saved for a child throughout 
their lifetime is $9,000, which would not cover the basic costs of 
tuition at a private institution, let alone books, foods and living 
expenses for a student. This amount barely covers the tuition at a 
public four-year institution, but that is before factoring in 
inflation, expenses, room and board. In my home state of Arizona, a 
four-year degree from one of the three state colleges costs about 
$8,800--and that is just for tuition, not books, food, room and board. 
In addition, ED-ACT allows a $500 tax credit for taxpayers who make a 
voluntary contribution to public or private schools.
  This bill would also help develop better educational tools for our 
children by gathering and analyzing pertinent data regarding some of 
our most vulnerable students, while collecting information about how we 
can ensure the best teachers are in our classrooms.
  Finally, the last section of the ED-ACT reduces the bureaucratic 
costs at the Department of Education by thirty-five percent no later 
than October 1, 2004. Far too many resources are spent on funding 
bureaucrats in Washington, D.C., rather than teaching our children.
  Thomas Jefferson said, ``The purpose of education is to create young 
citizens with knowing heads and loving hearts.'' If we fail to give our 
children the education they need to nurture their heads and hearts, 
then we threaten their futures and the future of our nation. The bill I 
am introducing today is an important step towards ensuring that our 
children have both the love in their hearts and the knowledge in their 
heads to not only dream, but to make their dreams a reality.
  Mr. President, I ask unanimous consent that a copy of this bill be 
printed in the Record.
  There being no objection, the bill was ordered printed in the Record, 
as follows:

                                 S. 667

       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; DEFINITIONS.

       (a) Short Title.--This Act may be cited as the ``Educating 
     America's Children for Tomorrow (ED-ACT)''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents; definitions.

                TITLE I--EMPOWERING PARENTS AND STUDENTS

Sec. 101. Empowering parents and students.

TITLE II--PROHIBITION REGARDING FUNDING FOR DEVELOPING OR IMPLEMENTING 
                      NATIONAL EDUCATION STANDARDS

Sec. 201. Prohibition regarding funding for developing or implementing 
              national education standards.

                 TITLE III--TROOPS-TO-TEACHERS PROGRAM

Sec. 301. Short title.
Sec. 302. Improvement and transfer of jurisdiction of troops-to-
              teachers program.

               TITLE IV--ENGLISH PLUS AND MULTILINGUALISM

Sec. 401. English plus.
Sec. 402. Multilingualism study.

     TITLE V--EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED CHILDREN

Sec. 501. Purposes.
Sec. 502. Authorization of appropriations; program authority.
Sec. 503. Eligibility.
Sec. 504. Scholarships.
Sec. 505. Eligible children; award rules.
Sec. 506. Applications.
Sec. 507. Approval of programs.
Sec. 508. Amounts and length of grants.
Sec. 509. Uses of funds.
Sec. 510. Effect of programs.
Sec. 511. National evaluation.
Sec. 512. Enforcement.
Sec. 513. Definitions.

                        TITLE VI--TAX PROVISIONS

Sec. 601. Credit for contributions to schools.
Sec. 602. Increase in annual contribution limit for education 
              individual retirement accounts.

              TITLE VII--DEVELOPING BETTER EDUCATION TOOLS

Sec. 701. Educational tools for underserved students.
Sec. 702. Teacher training.
Sec. 703. Putting the best teachers in the classroom.

                    TITLE VIII--EMPOWERING STUDENTS

Sec. 801. Empowering students.
       (c) Definitions.--In this Act:
       (1) Comptroller general.--The term ``Comptroller General'' 
     means the Comptroller General of the United States.
       (2) Elementary school; local educational agency; parent; 
     secondary school; state educational agency.--The terms 
     ``elementary school'', ``local educational agency'', 
     ``parent'', ``secondary school'', and ``State educational 
     agency'' have the meanings given the terms in section 14101 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 8801 et seq.).
       (3) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2)) applicable to a family of the size involved.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (5) State.--The term ``State'' means each of the several 
     States of the United States and the District of Columbia.

                TITLE I--EMPOWERING PARENTS AND STUDENTS

     SEC. 101. EMPOWERING PARENTS AND STUDENTS.

       (a) Direct Awards to Local Educational Agencies.--
       (1) In general.--Notwithstanding any other provision of 
     law, for each fiscal year the Secretary shall award the total 
     amount of funds described in paragraph (2) directly to local 
     educational agencies in accordance with paragraph (4) to 
     enable the local educational agencies to carry out the 
     authorized activities described in paragraph (5).
       (2) Applicable funding.--The total amount of funds referred 
     to in paragraph (1) are all funds that are appropriated for 
     the Department of Education for a fiscal year to carry out 
     programs or activities under the following provisions of law:

[[Page 4997]]

       (A) Title III of the Goals 2000: Educate America Act (20 
     U.S.C. 5881 et seq.).
       (B) Title IV of the Goals 2000: Educate America Act (20 
     U.S.C. 5911 et seq.).
       (C) Title VI of the Goals 2000: Educate America Act (20 
     U.S.C. 5951).
       (D) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (E) Section 1502 of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6492).
       (F) Title II of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6601 et seq.).
       (G) Title III of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6801 et seq.).
       (H) Title IV of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7101 et seq.).
       (I) Part A of title V of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7201 et seq.).
       (J) Part B of title V of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7231 et seq.).
       (K) Title VI of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7301 et seq.).
       (L) Title VII of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7401 et seq.).
       (M) Part B of title IX of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7901 et seq.).
       (N) Part C of title IX of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7931 et seq.).
       (O) Part A of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8001 et seq.).
       (P) Part B of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8031 et seq.).
       (Q) Part D of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8091 et seq.).
       (R) Part F of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8141 et seq.).
       (S) Part G of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8161 et seq.).
       (T) Part I of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8241 et seq.).
       (U) Part J of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8271 et seq.).
       (V) Part K of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8331 et seq.).
       (W) Part L of title X of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8351 et seq.).
       (X) Part A of title XIII of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8621 et seq.).
       (Y) Part C of title XIII of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8671 et seq.).
       (Z) Part B of title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.).
       (3) Census determination.--
       (A) In general.--Each local educational agency shall 
     conduct a census to determine the number of kindergarten 
     through grade 12 students that are in the school district 
     served by the local educational agency for an academic year.
       (B) Private school students.--In carrying out subparagraph 
     (A), each local educational agency shall determine the number 
     of private school students described in such paragraph for an 
     academic year on the basis of data the local educational 
     agency determines reliable.
       (C) Submission.--Each local educational agency shall submit 
     the total number of public and private school children 
     described in this paragraph for an academic year to the 
     Secretary not later than March 1 of the academic year.
       (D) Penalty.--If the Secretary determines that a local 
     educational agency has knowingly submitted false information 
     under this subsection for the purpose of gaining additional 
     funds under this section, then the local educational agency 
     shall be fined an amount equal to twice the difference 
     between the amount the local educational agency received 
     under this section, and the correct amount the local 
     educational agency would have received if the agency had 
     submitted accurate information under this subsection.
       (4) Determination of allotments.--From the total applicable 
     funding available for a fiscal year, the Secretary shall make 
     allotments to each local educational agency in a State in an 
     amount that bears the same relation--
       (A) to 50 percent of such total applicable funding as the 
     number of individuals in the school district served by the 
     local educational agency who are aged 5 through 17 bears to 
     the total number of such individuals in all school districts 
     served by all local educational agencies in all States; and
       (B) to 50 percent of such total amount as the total amount 
     all local educational agencies in the State are eligible to 
     receive under part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for 
     the fiscal year bears to the total amount all local 
     educational agencies in all States are eligible to receive 
     under such part for the fiscal year.
       (5) Authorized activities.--
       (A) In general.--A local educational agency receiving an 
     allotment under paragraph (4) shall use the allotted funds 
     for innovative assistance programs described in subparagraph 
     (B).
       (B) Innovative assistance.--The innovative assistance 
     programs referred to in subparagraph (A) include--
       (i) technology programs related to the implementation of 
     school-based reform programs, including professional 
     development to assist teachers and other school officials 
     regarding how to use effectively such equipment and software;
       (ii) programs for the acquisition and use of instructional 
     and educational materials, including library services and 
     materials (including media materials), assessments, reference 
     materials, computer software and hardware for instructional 
     use, and other curricular materials that--

       (I) are tied to high academic standards;
       (II) will be used to improve student achievement; and
       (III) are part of an overall education reform program;

       (iii) promising education reform programs, including 
     effective schools and magnet schools;
       (iv) programs to improve the higher order thinking skills 
     of disadvantaged elementary school and secondary school 
     students and to prevent students from dropping out of school;
       (v) programs to combat illiteracy in the student and adult 
     populations, including parent illiteracy;
       (vi) programs to provide for the educational needs of 
     gifted and talented children;
       (vii) hiring of teachers or teaching assistants to decrease 
     a school, school district, or statewide student-to-teacher 
     ratio; and
       (viii) school improvement programs or activities described 
     in sections 1116 and 1117 of the Elementary and Secondary 
     Education Act of 1965.
       (6) Accountability.--
       (A) Local educational agency.--A local educational agency 
     that receives funds under this section in any fiscal year 
     shall make available for review by parents, community 
     members, the State educational agency and the Department of 
     Education--
       (i) a proposed budget regarding how such funds shall be 
     used; and
       (ii) an accounting of the actual use of such funds at the 
     end of the fiscal year of the local educational agency.
       (B) School.--Each school receiving assistance under this 
     section in any fiscal year shall prepare and submit to the 
     Secretary and make available to the public a detailed plan 
     that outlines--
       (i) clear academic performance objectives for students at 
     the school;
       (ii) a timetable for improving the academic performance of 
     the students; and
       (iii) methods for officially evaluating and measuring the 
     academic growth or progress of the students.
       (b) Direct Awards of Part A of Title I Funding.--
       (1) In general.--Notwithstanding any other provision of law 
     and subject to paragraph (3), the Secretary shall award the 
     total amount of funds appropriated to carry out part A of 
     title I of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311 et seq.) for a fiscal year directly to local 
     educational agencies in accordance with paragraph (2) to 
     enable the local educational agencies to support programs or 
     activities, for kindergarten through grade 12 students, that 
     the local educational agencies deem appropriate.
       (2) Eligible local educational agencies.--The Secretary 
     shall make awards under this section for a fiscal year only 
     to local educational agencies that are eligible for 
     assistance under part A of title I of the Elementary and 
     Secondary Education Act of 1965 for the fiscal year.
       (3) Amount.--Each local educational agency shall receive an 
     amount awarded under this subsection for a fiscal year equal 
     to the amount the local educational agency is eligible to 
     receive under part A of title I of the Elementary and 
     Secondary Education Act of 1965 for the fiscal year.

TITLE II--PROHIBITION REGARDING FUNDING FOR DEVELOPING OR IMPLEMENTING 
                      NATIONAL EDUCATION STANDARDS

     SEC. 201. PROHIBITION REGARDING FUNDING FOR DEVELOPING OR 
                   IMPLEMENTING NATIONAL EDUCATION STANDARDS.

       No Federal funds may be obligated or expended to develop or 
     implement national education standards.

                 TITLE III--TROOPS-TO-TEACHERS PROGRAM

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Troops-to-Teachers Program 
     Improvement Act of 1999''.

     SEC. 302. IMPROVEMENT AND TRANSFER OF JURISDICTION OF TROOPS-
                   TO-TEACHERS PROGRAM.

       (a) Recodification, Improvement, and Transfer of Program.--
     (1) Section 1151 of

[[Page 4998]]

     title 10, United States Code, is amended to read as follows:

     ``Sec. 1151. Assistance to certain separated or retired 
       members to obtain certification and employment as teachers

       ``(a) Program Authorized.--The Secretary of Education, in 
     consultation with the Secretary of Defense and the Secretary 
     of Transportation with respect to the Coast Guard, may carry 
     out a program--
       ``(1) to assist eligible members of the armed forces after 
     their discharge or release, or retirement, from active duty 
     to obtain certification or licensure as elementary or 
     secondary school teachers or as vocational or technical 
     teachers; and
       ``(2) to facilitate the employment of such members by local 
     educational agencies identified under subsection (b)(1).
       ``(b) Identification of Local Educational Agencies and 
     States.--(1)(A) In carrying out the program authorized by 
     subsection (a), the Secretary of Education shall periodically 
     identify local educational agencies that--
       ``(i) are receiving grants under title I of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
     as a result of having within their jurisdictions 
     concentrations of children from low-income families; or
       ``(ii) are experiencing a shortage of qualified teachers, 
     in particular a shortage of science, mathematics, reading, 
     special education, or vocational or technical teachers.
       ``(B) The Secretary may identify local educational agencies 
     under subparagraph (A) through surveys conducted for that 
     purpose or by utilizing information on local educational 
     agencies that is available to the Secretary from other 
     sources.
       ``(2) In carrying out the program, the Secretary shall also 
     conduct a survey of States to identify those States that have 
     alternative certification or licensure requirements for 
     teachers, including those States that grant credit for 
     service in the armed forces toward satisfying certification 
     or licensure requirements for teachers.
       ``(c) Eligible Members.--(1) The following members shall be 
     eligible for selection to participate in the program:
       ``(A) Any member who--
       ``(i) during the period beginning on October 1, 1990, and 
     ending on September 30, 1999, was involuntarily discharged or 
     released from active duty for purposes of a reduction of 
     force after six or more years of continuous active duty 
     immediately before the discharge or release; and
       ``(ii) satisfies such other criteria for selection as the 
     Secretary of Education, in consultation with the Secretary of 
     Defense and the Secretary of Transportation, may prescribe.
       ``(B) Any member--
       ``(i) who, on or after October 1, 1999--
       ``(I) is retired for length of service with at least 20 
     years of active service computed under section 3925, 3926, 
     8925, or 8926 of this title or for purposes of chapter 571 of 
     this title; or
       ``(II) is retired under section 1201 or 1204 of this title;
       ``(ii) who--
       ``(I) in the case of a member applying for assistance for 
     placement as an elementary or secondary school teacher, has 
     received a baccalaureate or advanced degree from an 
     accredited institution of higher education; or
       ``(II) in the case of a member applying for assistance for 
     placement as a vocational or technical teacher--

       ``(aa) has received the equivalent of one year of college 
     from an accredited institution of higher education and has 10 
     or more years of military experience in a vocational or 
     technical field; or
       ``(bb) otherwise meets the certification or licensure 
     requirements for a vocational or technical teacher in the 
     State in which such member seeks assistance for placement 
     under the program; and

       ``(iii) who satisfies the criteria prescribed under 
     subparagraph (A)(ii).
       ``(2) A member who is discharged or released from active 
     duty, or retires from service, under other than honorable 
     conditions shall not be eligible to participate in the 
     program.
       ``(d) Information Regarding Program.--(1) The Secretary of 
     Education, in consultation with the Secretary of Defense and 
     the Secretary of Transportation, shall provide information 
     regarding the program, and make applications for the program 
     available, to members as part of preseparation counseling 
     provided under section 1142 of this title.
       ``(2) The information provided to members shall--
       ``(A) indicate the local educational agencies identified 
     under subsection (b)(1); and
       ``(B) identify those States surveyed under subsection 
     (b)(2) that have alternative certification or licensure 
     requirements for teachers, including those States that grant 
     credit for service in the armed forces toward satisfying such 
     requirements.
       ``(e) Selection of Participants.--(1)(A) Selection of 
     members to participate in the program shall be made on the 
     basis of applications submitted to the Secretary of Education 
     on a timely basis. An application shall be in such form and 
     contain such information as the Secretary may require.
       ``(B) An application shall be considered to be submitted on 
     a timely basis if the application is submitted as follows:
       ``(i) In the case of an applicant who is eligible under 
     subsection (c)(1)(A), not later than September 30, 2003.
       ``(ii) In the case of an applicant who is eligible under 
     subsection (c)(1)(B), not later than four years after the 
     date of the retirement of the applicant from active duty.
       ``(2) In selecting participants to receive assistance for 
     placement as elementary or secondary school teachers or 
     vocational or technical teachers, the Secretary shall give 
     priority to members who--
       ``(A) have educational or military experience in science, 
     mathematics, reading, special education, or vocational or 
     technical subjects and agree to seek employment as science, 
     mathematics, reading, or special education teachers in 
     elementary or secondary schools or in other schools under the 
     jurisdiction of a local educational agency; or
       ``(B) have educational or military experience in another 
     subject area identified by the Secretary, in consultation 
     with the National Governors Association, as important for 
     national educational objectives and agree to seek employment 
     in that subject area in elementary or secondary schools.
       ``(3) The Secretary may not select a member to participate 
     in the program unless the Secretary has sufficient 
     appropriations for the program available at the time of the 
     selection to satisfy the obligations to be incurred by the 
     United States under subsection (g) with respect to that 
     member.
       ``(f) Agreement.--A member selected to participate in the 
     program shall be required to enter into an agreement with the 
     Secretary of Education in which the member agrees--
       ``(1) to obtain, within such time as the Secretary may 
     require, certification or licensure as an elementary or 
     secondary school teacher or vocational or technical teacher; 
     and
       ``(2) to accept an offer of full-time employment as an 
     elementary or secondary school teacher or vocational or 
     technical teacher for not less than four school years with a 
     local educational agency identified under subparagraph (A) or 
     (B) of subsection (b)(1), to begin the school year after 
     obtaining that certification or licensure.
       ``(g) Stipend and Bonus for Participants.--(1)(A) Subject 
     to subparagraph (B), the Secretary of Education shall pay to 
     each participant in the program a stipend in an amount equal 
     to $5,000.
       ``(B) The total number of stipends that may be paid under 
     this paragraph in any fiscal year may not exceed 3,000.
       ``(2)(A) Subject to subparagraph (B), the Secretary may, in 
     lieu of paying a stipend under paragraph (1), pay a bonus of 
     $10,000 to each participant in the program who agrees under 
     subsection (f) to accept full-time employment as an 
     elementary or secondary school teacher or vocational or 
     technical teacher for not less than four years in a high need 
     school.
       ``(B) The total number of bonuses that may be paid under 
     this paragraph in any fiscal year may not exceed 1,000.
       ``(C) In this paragraph, the term `high need school' means 
     an elementary school or secondary school that meets one or 
     more of the following criteria:
       ``(i) A school with a drop out rate that exceeds the 
     national average school drop out rate.
       ``(ii) A school having a large percentage of students (as 
     determined by the Secretary in consultation with the National 
     Assessment Governing Board) who speak English as a second 
     language.
       ``(iii) A school having a large percentage of students (as 
     so determined) who are at risk of educational failure by 
     reason of limited proficiency in English, poverty, race, 
     geographic location, or economic circumstances.
       ``(iv) A school at least one-half of whose students are 
     from families with an income below the poverty line (as that 
     term is defined by the Office of Management and Budget and 
     revised annually in accordance with section 673(2) of the 
     Community Services Block Grant Act (42 U.S.C. 9902(2)) 
     applicable to a family of the size involved.
       ``(v) A school with a large percentage of students (as so 
     determined) who qualify for assistance under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.).
       ``(vi) A school located on an Indian reservation (as that 
     term is defined in section 403(9) of the Indian Child 
     Protection and Family Violence Prevention Act (25 U.S.C. 
     3202(9)).
       ``(vii) A school located in a rural area.
       ``(viii) A school meeting any other criteria established by 
     the Secretary in consultation with the National Governors 
     Association.
       ``(3) Stipends and bonuses paid under this subsection shall 
     be taken into account in determining the eligibility of the 
     participant concerned for Federal student financial 
     assistance provided under title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070 et seq.).
       ``(h) Reimbursement Under Certain Circumstances.--(1) If a 
     participant in the program fails to obtain teacher 
     certification or licensure or employment as an elementary or 
     secondary school teacher or vocational or technical teacher 
     as required under the

[[Page 4999]]

     agreement or voluntarily leaves, or is terminated for cause, 
     from the employment during the four years of required 
     service, the participant shall be required to reimburse the 
     Secretary of Education for any stipend paid to the 
     participant under subsection (g)(1) in an amount that bears 
     the same ratio to the amount of the stipend as the unserved 
     portion of required service bears to the four years of 
     required service.
       ``(2) If a participant in the program who is paid a bonus 
     under subsection (g)(2) fails to obtain employment for which 
     such bonus was paid, or voluntarily leaves or is terminated 
     for cause from the employment during the four years of 
     required service, the participant shall be required to 
     reimburse the Secretary for any bonus paid to the participant 
     under that subsection in an amount that bears the same ratio 
     to the amount of the bonus as the unserved portion of 
     required service bears to the four years of required service.
       ``(3)(A) The obligation to reimburse the Secretary under 
     this subsection is, for all purposes, a debt owing the United 
     States.
       ``(B) A discharge in bankruptcy under title 11 shall not 
     release a participant from the obligation to reimburse the 
     Secretary.
       ``(C) Any amount owed by a participant under paragraph (1) 
     or (2) shall bear interest at the rate equal to the highest 
     rate being paid by the United States on the day on which the 
     reimbursement is determined to be due for securities having 
     maturities of ninety days or less and shall accrue from the 
     day on which the participant is first notified of the amount 
     due.
       ``(i) Exceptions to Reimbursement Provisions.--(1) A 
     participant in the program shall not be considered to be in 
     violation of an agreement entered into under subsection (f) 
     during any period in which the participant--
       ``(A) is pursuing a full-time course of study related to 
     the field of teaching at an eligible institution;
       ``(B) is serving on active duty as a member of the armed 
     forces;
       ``(C) is temporarily totally disabled for a period of time 
     not to exceed three years as established by sworn affidavit 
     of a qualified physician;
       ``(D) is unable to secure employment for a period not to 
     exceed 12 months by reason of the care required by a spouse 
     who is disabled;
       ``(E) is seeking and unable to find full-time employment as 
     a teacher in an elementary or secondary school or as a 
     vocational or technical teacher for a single period not to 
     exceed 27 months; or
       ``(F) satisfies the provisions of additional reimbursement 
     exceptions that may be prescribed by the Secretary of 
     Education.
       ``(2) A participant shall be excused from reimbursement 
     under subsection (h) if the participant becomes permanently 
     totally disabled as established by sworn affidavit of a 
     qualified physician. The Secretary may also waive 
     reimbursement in cases of extreme hardship to the 
     participant, as determined by the Secretary in consultation 
     with the Secretary of Defense or the Secretary of 
     Transportation, as the case may be.
       ``(j) Relationship to Educational Assistance Under 
     Montgomery GI Bill.--The receipt by a participant in the 
     program of any assistance under the program shall not reduce 
     or otherwise affect the entitlement of the participant to any 
     benefits under chapter 30 of title 38 or chapter 1606 of this 
     title.
       ``(k) Discharge of State Activities Through Consortia of 
     States.--The Secretary of Education may permit States 
     participating in the program authorized by this section to 
     carry out activities authorized for such States under this 
     section through one or more consortia of such States.
       ``(l) Assistance to States in Activities Under Program.--
     (1) Subject to paragraph (2), the Secretary of Education may 
     make grants to States participating in the program authorized 
     by this section, or to consortia of such States, in order to 
     permit such States or consortia of States to operate offices 
     for purposes of recruiting eligible members for participation 
     in the program and facilitating the employment of 
     participants in the program in schools in such States or 
     consortia of States.
       ``(2) The total amount of grants under paragraph (1) in any 
     fiscal year may not exceed $4,000,000.
       ``(m) Limitation on Use of Funds for Management 
     Infrastructure.--The Secretary of Education may utilize not 
     more than five percent of the funds available to carry out 
     the program authorized by this section for a fiscal year for 
     purposes of establishing and maintaining the management 
     infrastructure necessary to support the program.
       ``(n) Definitions.--In this section:
       ``(1) The term `State' includes the District of Columbia, 
     American Samoa, the Federated States of Micronesia, Guam, the 
     Republic of the Marshall Islands, the Commonwealth of the 
     Northern Mariana Islands, the Commonwealth of Puerto Rico, 
     the Republic of Palau, and the United States Virgin Islands.
       ``(2) The term `alternative certification or licensure 
     requirements' means State or local teacher certification or 
     licensure requirements that permit a demonstrated competence 
     in appropriate subject areas gained in careers outside of 
     education to be substituted for traditional teacher training 
     course work.''.
       (2) The table of sections at the beginning of chapter 58 of 
     such title is amended by striking the item relating to 
     section 1151 and inserting the following new item:

``1151. Assistance to certain separated or retired members to obtain 
              certification and employment as teachers.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 1999.
       (c) Transfer of Jurisdiction over Current Program.--(1) The 
     Secretary of Defense, Secretary of Transportation, and 
     Secretary of Education shall provide for the transfer to the 
     Secretary of Education of any on-going functions and 
     responsibilities of the Secretary of Defense and the 
     Secretary of Transportation with respect the program 
     authorized by section 1151 of title 10, United States Code, 
     for the period beginning on October 23, 1992, and ending on 
     September 30, 1999.
       (2) The Secretaries shall complete the transfer under 
     paragraph (1) not later than October 1, 1999.
       (d) Reports.--(1) Not later than March 31, 2002, the 
     Secretary of Education and the Comptroller General shall each 
     submit to Congress a report on the effectiveness of the 
     program authorized by section 1151 of title 10, United States 
     Code (as amended by subsection (a)), in the recruitment and 
     retention of qualified personnel by local educational 
     agencies identified under subsection (b)(1) of such section 
     1151 (as so amended).
       (2) The report under paragraph (1) shall include 
     information on the following:
       (A) The number of participants in the program.
       (B) The schools in which such participants are employed.
       (C) The grade levels at which such participants teach.
       (D) The subject matters taught by such participants.
       (E) The effectiveness of the teaching of such participants, 
     as indicated by any relevant test scores of the students of 
     such participants.
       (F) The extent of any academic improvement in the schools 
     in which such participants teach by reason of their teaching.
       (G) The rates of retention of such participants by the 
     local educational agencies employing such participants.
       (H) The effect of any stipends or bonuses under subsection 
     (g) of such section 1151 (as so amended) in enhancing 
     participation in the program or in enhancing recruitment or 
     retention of participants in the program by the local 
     educational agencies employing such participants.
       (I) Such other matters as the Secretary or the Comptroller 
     General, as the case may be, considers appropriate.
       (3) The report of the Comptroller General under paragraph 
     (1) shall also include any recommendations of the Comptroller 
     General as to means of improving the program, including means 
     of enhancing the recruitment and retention of participants in 
     the program.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Department of Education 
     $25,000,000 for each of fiscal years 2000 through 2004 for 
     purposes of carrying out the program authorized by section 
     1151 of title 10, United States Code (as amended by 
     subsection (a)).

               TITLE IV--ENGLISH PLUS AND MULTILINGUALISM

     SEC. 401. ENGLISH PLUS.

       (a) Findings.--Congress makes the following findings:
       (1) Immigrants to the United States have powerful 
     incentives to learn English in order to fully participate in 
     American society and the Nation's economy, and 90 percent of 
     all immigrant families become fluent in English within the 
     second generation.
       (2) A common language promotes unity among citizens, and 
     fosters greater communication.
       (3) The reality of a global economy is an ever-present 
     international development that is fostered by trade.
       (4) The United States is well postured for the global 
     economy and international development with its diverse 
     population and rich heritage of cultures and languages from 
     around the world.
       (5) Foreign language skills are a tremendous resource to 
     the United States and enhance American competitiveness in the 
     global economy.
       (6) It is clearly in the interest of the United States to 
     encourage educational opportunities for all citizens and to 
     take steps to realize the opportunities.
       (7) Many American Indian languages are preserved, 
     encouraged, and utilized, as the languages were during World 
     War II when the Navajo Code Talkers created a code that could 
     not be broken by the Japanese or the Germans, for example.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) our Nation must support literacy programs, including 
     programs designed to teach English, as well as those 
     dedicated to helping Americans learn and maintain languages 
     in addition to English;

[[Page 5000]]

       (2) our Nation must recognize the importance of English as 
     the unifying language of the United States;
       (3) as a Nation we must support and encourage Americans of 
     every age to master English in order to succeed in American 
     society and ensure a productive workforce;
       (4) our Nation must recognize that a skilled labor force is 
     crucial to United States competitiveness in a global economy, 
     and the ability to speak languages in addition to English is 
     a significant skill; and
       (5) our Nation must recognize the benefits, both on an 
     individual and a national basis, of developing the Nation's 
     linguistic resources.

     SEC. 402. MULTILINGUALISM STUDY.

       (a) Findings.--Congress finds that--
       (1) even though all residents of the United States should 
     be proficient in English, without regard to their country of 
     birth, it is also of vital importance to the competitiveness 
     of the United States that those residents be encouraged to 
     learn other languages; and
       (2) education is the primary responsibility of State and 
     local governments and communities, and the governments and 
     communities are responsible for developing policies in the 
     area of education.
       (b) Resident of the United States Defined.--In this 
     section, the term ``resident of the United States'' means an 
     individual who resides in the United States, other than an 
     alien who is not lawfully present in the United States.
       (c) Study.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General shall conduct 
     a study of multilingualism in the United States in accordance 
     with this section.
       (2) Requirements.--
       (A) In general.--The study conducted under this section 
     shall determine--
       (i) the percentage of residents in the United States who 
     are proficient in English and at least 1 other language;
       (ii) the predominant language other than English in which 
     residents referred to in clause (i) are proficient;
       (iii) the percentage of the residents described in clause 
     (i) who were born in a foreign country;
       (iv) the percentage of the residents described in clause 
     (i) who were born in the United States;
       (v) the percentage of the residents described in clause 
     (iv) who are second-generation residents of the United 
     States; and
       (vi) the percentage of the residents described in clause 
     (iv) who are third-generation residents of the United States.
       (B) Age-specific categories.--The study under this section 
     shall, with respect to the residents described in 
     subparagraph (A)(i), determine the number of those residents 
     in each of the following categories:
       (i) Residents who have not attained the age of 12.
       (ii) Residents who have attained the age of 12, but have 
     not attained the age of 18.
       (iii) Residents who have attained the age of 18, but have 
     not attained the age of 50.
       (iv) Residents who have attained the age of 50.
       (C) Federal programs.--In conducting the study under this 
     section, the Comptroller General shall establish a list of 
     each Federal program that encourages multilingualism with 
     respect to any category of residents described in 
     subparagraph (B).
       (D) Comparisons.--In conducting the study under this 
     section, the Comptroller General shall compare the 
     multilingual population described in subparagraph (A) with 
     the multilingual populations of foreign countries--
       (i) in the Western Hemisphere; and
       (ii) in Asia.
       (d) Report.--Upon completion of the study under this 
     section, the Comptroller General shall prepare, and submit to 
     Congress, a report that contains the results of the study 
     conducted under this section, and such findings and 
     recommendations as the Comptroller General determines to be 
     appropriate.

     TITLE V--EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED CHILDREN

     SEC. 501. PURPOSES.

       The purposes of this title are--
       (1) to assist and encourage States and localities to--
       (A) give children from low-income families more of the same 
     choices of all elementary and secondary schools and other 
     academic programs that children from wealthier families 
     already have;
       (B) improve schools and other academic programs by giving 
     low-income parents increased consumer power to choose the 
     schools and programs that the parents determine best fit the 
     needs of their children; and
       (C) more fully engage low-income parents in their 
     children's schooling; and
       (2) to demonstrate, through a competitive discretionary 
     grant program, the effects of State and local programs that 
     give middle- and low-income families more of the same choices 
     of all schools, public, private or religious, that wealthier 
     families have.

     SEC. 502. AUTHORIZATION OF APPROPRIATIONS; PROGRAM AUTHORITY.

       (a) Authorization of Appropriations.--For the purpose of 
     carrying out this title, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2001 through 2003.
       (b) Program Authority.--The Secretary is authorized to 
     award grants to not more than 10 States or localities, on a 
     competitive basis, to enable the States or localities to 
     carry out educational choice programs in accordance with this 
     title.

     SEC. 503. ELIGIBILITY.

       A State or locality is eligible for a grant under this 
     title if--
       (1) the State or locality has taken significant steps to 
     provide a choice of schools to families with school children 
     residing in the program area described in the application 
     submitted under section 506, including families who are not 
     eligible for scholarships under this title;
       (2) during the year for which assistance is sought, the 
     State or locality provides assurances in the application 
     submitted under section 506 that if awarded a grant under 
     this title such State or locality will provide scholarships 
     to parents of eligible children that may be redeemed for 
     elementary schools or secondary education for their children 
     at a broad variety of public and private elementary schools 
     and secondary schools, including religious schools, if any, 
     serving the area;
       (3) the State or locality agrees to match 50 percent of the 
     Federal funds provided for the scholarships; and
       (4) the State or locality allows lawfully operating public 
     and private elementary schools and secondary schools, 
     including religious schools, if any, serving the area to 
     participate in the program.

     SEC. 504. SCHOLARSHIPS.

       (a) Scholarship Awards.--With funds awarded under this 
     title, each State or locality awarded a grant under this 
     title shall provide scholarships to the parents of eligible 
     children, in accordance with section 505.
       (b) Scholarship Value.--The value of each scholarship shall 
     be the sum of--
       (1) $2,000 from funds provided under this title;
       (2) $1,000 in matching funds from the State or locality; 
     and
       (3) an additional amount, if any, of State, local, or 
     nongovernmental funds.
       (c) Tax Exemption.--Scholarships awarded under this title 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.

     SEC. 505. ELIGIBLE CHILDREN; AWARD RULES.

       (a) Eligible Child.--In this title the term ``eligible 
     child'' means a child who--
       (1) resides in the program area described in the 
     application submitted under section 506;
       (2) will attend a public or private elementary school or 
     secondary school that is participating in the program; and
       (3) subject to subsection (b)(1)(C), is from a low-income 
     family, as determined by the State or locality in accordance 
     with regulations of the Secretary, except that the maximum 
     family income for eligibility under this title shall not 
     exceed the State or national median family income adjusted 
     for family size, whichever is higher, as determined by the 
     Secretary, in consultation with the Bureau of the Census, on 
     the basis of the most recent satisfactory data available.
       (b) Award Rules.--
       (1) Continuing eligibility.--Each State or locality 
     receiving a grant under this title shall provide a 
     scholarship in each year of its program to each child who 
     received a scholarship during the previous year of the 
     program, unless--
       (A) the child no longer resides in the program area;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, the maximum family income of families who received 
     scholarships in the preceding year; or
       (D) the child is expelled or convicted of a felony, 
     including felonious drug possession, possession of a weapon 
     on school grounds, or violent acts against other students or 
     a member of the school's faculty.
       (2) Priority.--If the amount of the grant provided under 
     this title is not sufficient to provide a scholarship to each 
     eligible child from a family that meets the requirements of 
     subsection (a)(3), the State or locality shall provide 
     scholarships to eligible children from the lowest income 
     families.

     SEC. 506. APPLICATIONS.

       (a) Application.--Each State or locality that wishes to 
     receive a grant under this title shall submit an application 
     to the Secretary at such time and in such manner as the 
     Secretary may reasonably require.
       (b) Contents.--Each such application shall contain--
       (1) a description of the program area;
       (2) an economic profile of children residing in the program 
     area, in terms of family income and poverty status;
       (3) the family income range of children who will be 
     eligible to participate in the proposed program, consistent 
     with section 505(a)(3), and a description of the applicant's 
     method for identifying children who fall within that range;
       (4) an estimate of the number of children, within the 
     income range specified in paragraph (3), who will be eligible 
     to receive scholarships under the program;
       (5) information demonstrating that the applicant's proposed 
     program complies with the requirements of section 503 and 
     with the other requirements of this title;

[[Page 5001]]

       (6) a description of the procedures the applicant has used, 
     including timely and meaningful consultation with private 
     school officials--
       (A) to encourage public and private elementary schools and 
     secondary schools to participate in the program; and
       (B) to ensure maximum educational choices for the parents 
     of eligible children and for other children residing in the 
     program area;
       (7) an identification of the public, private, and religious 
     elementary schools and secondary schools that are eligible 
     and have chosen to participate in the program;
       (8) a description of how the applicant will inform children 
     and their parents of the program and of the choices available 
     to the parents under the program, including the availability 
     of supplementary academic services under section 509(2);
       (9) a description of the procedures to be used to provide 
     scholarships to parents and to enable parents to use such 
     scholarships, such as the issuance of checks payable to 
     schools;
       (10) a description of the procedures by which a school will 
     make a pro rata refund to the Department of Education for any 
     participating child who, before completing 50 percent of the 
     school attendance period for which the scholarship was 
     provided--
       (A) is released or expelled from the school; or
       (B) withdraws from school for any reason;
       (11) a description of procedures the applicant will use 
     to--
       (A) determine a child's continuing eligibility to 
     participate in the program; and
       (B) bring new children into the program;
       (12) an assurance that the applicant will cooperate in 
     carrying out the national evaluation described in section 
     511;
       (13) an assurance that the applicant will maintain such 
     records relating to the program as the Secretary may require 
     and will comply with the Secretary's reasonable requests for 
     information about the program;
       (14) a description of State or local funds (including tax 
     benefits) and nongovernmental funds, that will be available 
     under section 504(b)(2) to supplement scholarship funds 
     provided under this title; and
       (16) such other assurance and information as the Secretary 
     may require.
       (c) Revisions.--Each such application shall be updated 
     annually as may be needed to reflect revised conditions.

     SEC. 507. APPROVAL OF PROGRAMS.

       (a) Selection.--From applications received each year the 
     Secretary shall select not more than 10 scholarship programs 
     on the basis of--
       (1) the number and variety of educational choices that are 
     available under the program to families of eligible children;
       (2) the extent to which educational choices among public, 
     private, and religious schools are available to all families 
     in the program area, including families that are not eligible 
     for scholarships under this title;
       (3) the proportion of children who will participate in the 
     program who are from families at or below the poverty line;
       (4) the applicant's financial support of the program, 
     including the amount of State, local, and nongovernmental 
     funds that will be provided to match Federal funds, including 
     not only direct expenditures for scholarships, but also other 
     economic incentives provided to families participating in the 
     program, such as a tax relief program; and
       (5) other criteria established by the Secretary.
       (b) Geographic Distribution.--The Secretary shall ensure 
     that, to the extent feasible, grants are awarded for programs 
     in urban and rural areas and in a variety of geographic areas 
     throughout the Nation.
       (c) Consideration.--In considering the factor described in 
     subsection (a)(4), the Secretary shall consider differences 
     in local conditions.

     SEC. 508. AMOUNTS AND LENGTH OF GRANTS.

       (a) Awards.--The Secretary shall award not more than 10 
     grants annually taking into consideration the availability of 
     appropriations, the number and quality of applications, and 
     other factors related to the purposes of this title that the 
     Secretary determines are appropriate.
       (b) Renewal.--Each grant under this title shall be awarded 
     for a period of not more than 3 years.

     SEC. 509. USES OF FUNDS.

       The Federal portion of any scholarship awarded under this 
     title shall be used as follows:
       (1) First.--First, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not in the school district to 
     which the child would be assigned in the absence of a program 
     under this title.
       (2) Second.--If the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the State or locality, in accordance with regulations of 
     the Secretary, determines is capable of providing such 
     services and has an appropriate refund policy.
       (3) Lastly.--Any funds that remain after the application of 
     paragraphs (1) and (2) shall be used--
       (A) for educational programs that help eligible children 
     achieve high levels of academic excellence in the school 
     attended by the eligible children for whom a scholarship was 
     provided, if the eligible children attend a public school; or
       (B) by the State or locality for additional scholarships in 
     the year or the succeeding year of its program, in accordance 
     with this title, if the child attends a private school.

     SEC. 510. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, a 
     local educational agency that, in the absence of an 
     educational choice program that is funded under this title, 
     would provide services to a participating eligible child 
     under part A of title I of the Elementary and Secondary 
     Education Act of 1965, shall provide such services to such 
     child.
       (b) Individuals With Disabilities.--Nothing in this title 
     shall be construed to affect the requirements of part B of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this title are to aid 
     families, not institutions. A parent's expenditure of 
     scholarship funds at a school or for supplementary academic 
     services shall not constitute Federal financial aid or 
     assistance to that school or to the provider of supplementary 
     academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this title shall, as a condition of 
     participation under this title, comply with the 
     antidiscrimination provisions of section 601 of title VI of 
     the Civil Rights Act of 1964 (42 U.S.C. 1681) and section 504 
     of the Rehabilitation Act of 1973 (29 U.S.C. 794).
       (B) Regulations.--The Secretary shall promulgate new 
     regulations to implement the provisions of subparagraph (A), 
     taking into account the purposes of this title and the 
     nature, variety, and missions of schools and providers that 
     may participate in providing services to children under this 
     title.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to a State or locality or to the parents of any 
     child under this title in determining whether to provide any 
     other funds from Federal, State, or local resources, or in 
     determining the amount of such assistance, to such State or 
     locality or to a school attended by such child.
       (e) No Discretion.--Nothing in this title shall be 
     construed to authorize the Secretary to exercise any 
     direction, supervision, or control over the curriculum, 
     program of instruction, administration, or personnel of any 
     educational institution or school participating in a program 
     under this title.

     SEC. 511. NATIONAL EVALUATION.

       The Inspector General of the Department of Education shall 
     conduct a national evaluation of the program authorized by 
     this title. Such evaluation shall, at a minimum--
       (1) assess the implementation of scholarship programs 
     assisted under this title and their effect on participants, 
     schools, and communities in the program area, including 
     parental involvement in, and satisfaction with, the program 
     and their children's education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC. 512. ENFORCEMENT.

       (a) Regulations.--The Secretary shall promulgate 
     regulations to enforce the provisions of this title.
       (b) Private Cause.--No provision or requirement of this 
     title shall be enforced through a private cause of action.

     SEC. 513. DEFINITIONS.

       In this title--
       (1) the term ``locality'' means--
       (A) a unit of general purpose local government, such as a 
     city, township, or village; or
       (B) a local educational agency; and
       (2) the term ``State'' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

                        TITLE VI--TAX PROVISIONS

     SEC. 601. CREDIT FOR CONTRIBUTIONS TO SCHOOLS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25A the following:

     ``SEC. 25B. CREDIT FOR CONTRIBUTIONS TO SCHOOLS.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to

[[Page 5002]]

     the qualified charitable contributions of the taxpayer for 
     the taxable year.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for any taxable year shall not exceed $500 ($250, in the case 
     of a married individual filing a separate return).
       ``(c) Qualified Charitable Contribution.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified charitable 
     contribution' means, with respect to any taxable year, the 
     amount allowable as a deduction under section 170 (determined 
     without regard to subsection (e)(1)) for cash contributions 
     to a school.
       ``(2) School.--The term `school' means any school which 
     provides elementary education or secondary education (through 
     grade 12), as determined under State law.
       ``(d) Denial of Double Benefit.--No deduction shall be 
     allowed under this chapter for any contribution for which 
     credit is allowed under this section.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.''
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of such Code is 
     amended by inserting after the item relating to section 25A 
     the following:

``Sec. 25B. Credit for contributions to schools.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

     SEC. 602. INCREASE IN ANNUAL CONTRIBUTION LIMIT FOR EDUCATION 
                   INDIVIDUAL RETIREMENT ACCOUNTS.

       (a) In General.--Section 530(b)(1)(A)(iii) of the Internal 
     Revenue Code of 1986 (defining education individual 
     retirement account) is amended by striking ``$500'' and 
     inserting ``$1,000''.
       (b) Conforming Amendment.--Section 4973(e)(1)(A) of such 
     Code is amended by striking ``$500'' and inserting 
     ``$1,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

              TITLE VII--DEVELOPING BETTER EDUCATION TOOLS

     SEC. 701. EDUCATIONAL TOOLS FOR UNDERSERVED STUDENTS.

       (a) Findings.--Congress makes the following findings:
       (1) Limited data exists regarding Native American, Asian 
     American and many other minority students.
       (2) The limited data available regarding these students 
     demonstrates potentially severe educational problems among 
     Native American students and a decline in performance among 
     Asian American students.
       (b) Study and Data.--The Comptroller General shall conduct 
     a study and collect data regarding the education of minority 
     students, including Native American students, Asian American 
     students, and all other students who are often combined in 
     statistical data under the category of other, in order to 
     provide more extensive and reliable data regarding the 
     students and to improve the academic preparation of the 
     students.
       (c) Matters Studied.--The study referred to in subsection 
     (a) shall examine and compile information regarding--
       (1) the environment of the students;
       (2) the academic achievement scores in reading, 
     mathematics, and science of the students;
       (3) the postsecondary education of the students;
       (4) the environment and education of the members of the 
     students' families; and
       (5) the parental involvement in the education of the 
     students.
       (d) Recommendations.--The Comptroller General shall develop 
     recommendations regarding the development and implementation 
     of strategies to meet the unique educational needs of the 
     students described in subsection (a).
       (e) Report.--
       (1) In general.--The Comptroller General shall prepare a 
     report regarding the matters studied, the information 
     collected, and the recommendations developed under this 
     section.
       (2) Distribution.--The Comptroller General shall distribute 
     the report described in paragraph (1) to each local 
     educational agency and State educational agency in the United 
     States, the Secretary, and Congress.
       (f) Funding.--The Secretary shall make available to the 
     Comptroller General, from any funds available to the 
     Secretary for salaries and expenses at the Department of 
     Education, such sums as the Comptroller General determines 
     necessary to carry out this section.

     SEC. 702. TEACHER TRAINING.

       (a) Findings.--Congress finds that too often inexperienced 
     elementary school and secondary school teachers or teachers 
     with low levels of education are found in schools 
     predominately serving low-income students.
       (b) Study.--The Comptroller General shall conduct a study 
     to determine whether requiring teacher training in a specific 
     subject matter or at least a minor degree in a subject matter 
     (such as mathematics, science, or English results in improved 
     student performance.

     SEC. 703. PUTTING THE BEST TEACHERS IN THE CLASSROOM.

       It is the sense of the Senate that--
       (1) the individual States should evaluate their teachers on 
     the basis of demonstrated ability, including tests of subject 
     matter knowledge, teaching knowledge, and teaching skill;
       (2) States in conjunction with the various local education 
     agencies should develop their own methods of testing their 
     teachers and other instructional staff with respect to the 
     specific subjects taught by the teachers and staff, and 
     should administer the test every 4 years to individual 
     teachers;
       (3) each local educational agency should give serious 
     consideration to using a portion of the funds made available 
     under section 101 to develop and implement a method for 
     evaluating each individual teacher's ability to provide the 
     appropriate instruction in the classroom; and
       (4) each local educational agency is encouraged to give 
     consideration to providing monetary rewards to teachers by 
     developing a compensation system that supports teachers who 
     become increasingly expert in a subject area, are proficient 
     in meeting the needs of students and schools, and demonstrate 
     high levels of performance measured against professional 
     teaching standards, and that will encourage teachers to 
     continue to learn needed skills and broaden the teachers' 
     expertise, thereby enhancing education for all students.

                    TITLE VIII--EMPOWERING STUDENTS

     SEC. 801. EMPOWERING STUDENTS.

       The Secretary, not later than October 1, 2004, shall 
     gradually reduce the sum of the costs for employees and 
     administrative expenses at the Department of Education as of 
     the date of enactment of this Act incrementally each year 
     until the sum of the costs for employees and administrative 
     costs are reduced by 35 percent.

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