[Congressional Record (Bound Edition), Volume 145 (1999), Part 6]
[Senate]
[Pages 7659-7682]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CLELAND:
  S. 894. A bill to amend title 5, United States Code, to provide for 
the establishment of a program under which long-term care insurance is 
made available to Federal employees and annuitants, and for other 
purposes; to the Committee on Governmental Affairs.


federal civilian and uniformed services long-term care insurance act of 
                                  1999

  Mr. CLELAND. Mr. President, in support of the need for an initiative 
to help address the growing long-term care needs of Americans, I am 
pleased to introduce the Federal Civilian and Uniformed Services Long-
Term Care Insurance Act of 1999 in the Senate.
  The Administration proposed a plan to offer long-term health care 
insurance to federal civilian employees. Under my bill, the 
administration's proposal is expanded to include federal civilian and 
uniformed services employees, as well as foreign service employees. 
This non-subsidized, quality private long-term care insurance option 
can then be offered at an affordable group rate. It is anticipated that 
300,000 Federal employees and 200,000 uniformed services employees 
would voluntarily participate in such a long-term insurance plan. With 
such participation, the Federal government could truly serve as the 
model for employers for long-term care insurance.
  The bill would make the following groups eligible for the long-term 
care insurance: Civilian employees after continuously working for the 
federal government for 6 months, Foreign Service employees, civilian 
annuitants upon retirement, members of the Armed Services, retired 
members of the Armed Services, and designated relatives, like parents 
and parents-in-laws.
  The bill also offers: (1) portability of this benefit regardless of 
future federal or military employment as long as the monthly premium is 
paid on a time, (2) a choice of plans to meet the insurer's needs from 
up to three insurance carriers, and (3) a choice of cash or service 
benefits (such as expense-incurred or indemnity method). Costs for this 
program are anticipated to be no more than $15 million for OPM 
administrative expenses.
  The price of long-term care is very expensive both in terms of the 
financial and emotional burden to families. In 1997, Medicare and 
Medicaid spent $15.4 billion providing home health care to Americans. 
In that same year, nursing home care cost American taxpayers 
approximately $16.9 billion. What I am proposing is legislating the 
ability to maintain self-reliance. The Federal Civilian and Uniformed 
Services Long-Term Care Insurance Act of 1999 is an important step to 
providing ``affordable, high-quality long-term care.'' I urge my 
colleagues to support it.
  Mr. President, I ask unanimous consent that the text of my 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 894

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Civilian and 
     Uniformed Services Long-Term Care Insurance Act of 1999''.

     SEC. 2. LONG-TERM CARE INSURANCE.

       Subpart G of part III of title 5, United States Code, is 
     amended by adding after chapter 89 the following:

                 ``Chapter 90--Long-Term Care Insurance

``Sec.
``9001. Definitions.
``9002. Eligibility to obtain coverage.
``9003. Contracting authority.
``9004. Long-term care benefits.
``9005. Financing.
``9006. Regulations.

     ``Sec. 9001. Definitions

       ``For purposes of this chapter, the term--
       ``(1) `activities of daily living' includes--
       ``(A) eating;
       ``(B) toileting;
       ``(C) transferring;
       ``(D) bathing;
       ``(E) dressing; and
       ``(F) continence;
       ``(2) `annuitant' has the meaning such term would have 
     under section 8901(3) if, for purposes of such paragraph, the 
     term `employee' were considered to have the meaning under 
     paragraph (7) of this section;
       ``(3) `appropriate Secretary' means--
       ``(A) except as otherwise provided in this paragraph, the 
     Secretary of Defense;
       ``(B) with respect to the United States Coast Guard when it 
     is not operating as a service of the Navy, the Secretary of 
     Transportation;
       ``(C) with respect to the commissioned corps of the 
     National Oceanic and Atmospheric Administration, the 
     Secretary of Commerce;
       ``(D) with respect to the commissioned corps of the Public 
     Health Service, the Secretary of Health and Human Services; 
     and
       ``(E) with respect to members of the Foreign Service, the 
     Secretary of State;
       ``(4) `assisted living facility' has the meaning given such 
     term under section 232 of the National Housing Act (12 U.S.C. 
     1715w);
       ``(5) `carrier' means a voluntary association, corporation, 
     partnership, or other nongovernmental organization that is 
     lawfully engaged in providing, paying for, or reimbursing the 
     cost of, qualified long-term care services under group 
     insurance policies or contracts, or similar group 
     arrangements, in consideration of premiums or other periodic 
     charges payable to the carrier;
       ``(6) `eligible individual' means--
       ``(A) an employee who has completed 6 months of continuous 
     service as an employee under other than a temporary 
     appointment limited to 6 months or less;
       ``(B) an annuitant;
       ``(C) a member of the uniformed services on active duty for 
     a period of more than 30 days or full-time National Guard 
     duty (as defined under section 101(d)(5) of title 10) who 
     satisfies such eligibility requirements as the Office 
     prescribes under section 9006(c);
       ``(D) a member of the uniformed services entitled to 
     retired or retainer pay (other than under chapter 1223 of 
     title 10) who satisfies such eligibility requirements as the 
     Office prescribes under section 9006(c);
       ``(E) a member of the Foreign Service who--
       ``(i) is described under section 103(1), (2), (3), (4), or 
     (5) of the Foreign Service Act of 1980 (22 U.S.C. 3903(1), 
     (2), (3), (4), or (5); and
       ``(ii) satisfies such eligibility requirements as the 
     Office prescribes under sanction 9006(c);
       ``(F) a member of the Foreign Service entitled to an 
     annuity under the Foreign Service Retirement and Disability 
     System or the Foreign Service Pension System who satisfies 
     such eligibility requirements as the Office prescribes under 
     section 9006(c); or
       ``(G) a qualified relative of a sponsoring individual;
       ``(7) `employee' means--
       ``(A) an employee as defined under section 8901(1) (A) 
     through (H); and
       ``(B) an individual described under section 2105(e);
       ``(8) `home and community care' has the meaning given such 
     term under section 1929 of the Social Security Act (42 U.S.C. 
     1396t(a));
       ``(9) `long-term care benefits plan' means a group 
     insurance policy or contract, or similar group arrangement, 
     provided by a carrier for the purpose of providing, paying 
     for, or reimbursing expenses for qualified long-term care 
     services;
       ``(10) `nursing home' has the meaning given such term under 
     section 1908 of the Social Security Act (42 U.S.C. 
     1396g(e)(1));
       ``(11) `Office' means the Office of Personnel Management;
       ``(12) `qualified long-term care services' has the meaning 
     given such term under section 7702B of the Internal Revenue 
     Code of 1986;
       ``(13) `qualified relative', as used with respect to a 
     sponsoring individual, means--
       ``(A) the spouse of such sponsoring individual;
       ``(B) a parent or parent-in-law of such sponsoring 
     individual; and
       ``(C) any other person bearing a relationship to such 
     sponsoring individual specified by the Office in regulations; 
     and
       ``(14) `sponsoring individual' refers to an individual 
     described under paragraph (6)(A), (B), (C), or (D).

[[Page 7660]]



     ``Sec. 9002. Eligibility to obtain coverage

       ``(a) Any eligible individual may obtain long-term care 
     insurance coverage under this chapter for such individual.
       ``(b)(1) As a condition for obtaining long-term care 
     insurance coverage under this chapter based on an 
     individual's status as a qualified relative, certification 
     from the applicant's sponsoring individual shall be required 
     as to--
       ``(A) such sponsoring individual's status, as described 
     under section 9001(6)(A), (B), (C), or (D) (as applicable), 
     as of the time of the qualified relative's application for 
     coverage; and
       ``(B) the existence of the claimed relationship as of that 
     time.
       ``(2) Any certification under paragraph (1) shall be 
     submitted at such time and in such form and manner as the 
     Office shall by regulation prescribe.
       ``(c) Nothing in this chapter shall be considered to 
     require that long-term care insurance coverage be made 
     available in the case of any individual who would be 
     immediately benefit eligible.

     ``Sec. 9003. Contracting authority

       ``(a) Without regard to section 3709 of the Revised 
     Statutes or other statute requiring competitive bidding, the 
     Office may contract with qualified carriers to provide group 
     long-term care insurance under this chapter, except that the 
     Office may not have contracts in effect under this section 
     with more than 3 qualified carriers.
       ``(b) To be considered a qualified carrier under this 
     chapter, a company shall be licensed to issue group long-term 
     care insurance in all the States and the District of 
     Columbia.
       ``(c)(1) Each contract under this section shall contain a 
     detailed statement of the benefits offered (including any 
     maximums, limitations, exclusions, and other definitions of 
     benefits), the rates charged (including any limitations or 
     other conditions on any subsequent adjustment), and such 
     other terms and conditions as may be mutually agreed to by 
     the Office and the carrier involved, consistent with the 
     requirements of this chapter.
       ``(2) The rates charged under any contract under this 
     section shall reasonably reflect the cost of the benefits 
     provided under such contract.
       ``(d) The benefits and coverage made available to 
     individuals under any contract under this section shall be 
     guaranteed to be renewable and may not be canceled by the 
     carrier except for nonpayment of charges.
       ``(e) Each contract under this section shall require the 
     carrier to agree to--
       ``(1) pay or provide benefits in an individual case if the 
     Office (or a duly designated third-party administrator) finds 
     that the individual involved is entitled to such payment or 
     benefit under the contract; and
       ``(2) participate in administrative procedures designed to 
     bring about the expeditious resolution of disputes arising 
     under such contract, including, in appropriate circumstances, 
     1 or more alternative means of dispute resolution.
       ``(f)(1)(A) Subject to subparagraph (B), each contract 
     under this section shall be for a term of 5 years, but may be 
     made automatically renewable from term to term in the absence 
     of notice of termination by either party.
       ``(B) The rights and responsibilities of the enrolled 
     individual, the insurer, and the Office (or duly designated 
     third-party administrator) under any such contract shall 
     continue until the termination of coverage of the enrolled 
     individual.
       ``(2) Group long-term care insurance coverage obtained by 
     an individual under this chapter shall terminate only upon 
     the occurrence of--
       ``(A) the death of the insured;
       ``(B) exhaustion of benefits, as determined under the 
     contract;
       ``(C) insolvency of the insurer, as determined under the 
     contract; or
       ``(D) any event justifying a cancellation under subsection 
     (d).
       ``(3) Subject to paragraph (2), each contract under this 
     section shall include such provisions as may be necessary 
     to--
       ``(A) effectively preserve all parties' rights and 
     responsibilities under such contract notwithstanding the 
     termination of such contract (whether due to nonrenewal under 
     paragraph (1) or otherwise); and
       ``(B) ensure that, once an individual becomes duly 
     enrolled, long-term care insurance coverage obtained by such 
     individual under that enrollment shall not be terminated due 
     to any change in status (as described under section 9001(6)), 
     such as separation from Government service or the uniformed 
     services, or ceasing to meet the requirements for being 
     considered a qualified relative (whether due to divorce or 
     otherwise).

     ``Sec. 9004. Long-term care benefits

       ``(a) Benefits under this chapter shall be provided under 
     qualified long-term care insurance contracts, within the 
     meaning of section 7702B of the Internal Revenue Code of 
     1986.
       ``(b) Each contract under section 9003, in addition to any 
     matter otherwise required under this chapter, shall provide 
     for--
       ``(1) adequate consumer protections (including through 
     establishment of sufficient reserves or reinsurance);
       ``(2) adequate protections in the event of carrier 
     bankruptcy (or other similar event);
       ``(3) availability of benefits upon appropriate 
     certification as to an individual's--
       ``(A) inability (without substantial assistance from 
     another individual) to perform at least 2 activities of daily 
     living for a period of at least 90 days due to a loss of 
     functional capacity;
       ``(B) having a level of disability similar (as determined 
     under regulations prescribed by the Secretary of the Treasury 
     in consultation with the Secretary of Health and Human 
     Services) to the level of disability described in 
     subparagraph (A); or
       ``(C) requiring substantial supervision to protect such 
     individual from threats to health and safety due to severe 
     cognitive impairment;
       ``(4) choice of cash or service benefits (such as the 
     expense-incurred method or the indemnity method);
       ``(5) inflation protection (whether through simple or 
     compounded adjustment of benefits); and
       ``(6) portability of benefits (consistent with section 9003 
     (d) and (f)).
       ``(c) To the maximum extent practicable, at least 1 of the 
     policies being offered under this chapter shall, in addition 
     to any matter otherwise required under this chapter, provide 
     for--
       ``(1) length-of-benefit options;
       ``(2) options relating to the provision of coverage in a 
     variety of settings, including nursing homes, assisted living 
     facilities, and home and community care;
       ``(3) options relating to elimination periods;
       ``(4) options relating to nonforfeiture benefits; and
       ``(5) availability of benefits upon appropriate 
     certification of medical necessity (as defined by the Office 
     in consultation with the Secretary of Health and Human 
     Services) not satisfying the requirements of subsection 
     (b)(3).
       ``(d)(1) The Office shall take all practicable measures to 
     ensure that, at least 1 of the long-term care benefits plans 
     available under this chapter shall be a Governmentwide long-
     term care benefits plan.
       ``(2) Neither subsection (c)(5) nor the exception under 
     subsection (e) shall apply with respect to any Governmentwide 
     plan under this subsection.
       ``(e) Nothing in this chapter shall be considered to permit 
     or require the inclusion, in any contract, of provisions 
     inconsistent with section 7702B of the Internal Revenue Code 
     of 1986 or any other provision of such Code (except to the 
     extent necessary to carry out subsection (c)(5)).
       ``(f) If a State (or the District of Columbia) imposes any 
     requirement which is more stringent than the requirement 
     imposed by subsection (b)(1), the requirement imposed by 
     subsection (b)(1) shall be treated as met if the more 
     stringent requirement of the State (or the District of 
     Columbia) is met.

     ``Sec. 9005. Financing

       ``(a) Except as provided in subsection (b)(2), each 
     individual having long-term care insurance coverage under 
     this chapter shall be responsible for 100 percent of the 
     charges for such coverage.
       ``(b)(1) The amount necessary to pay the charges for 
     enrollment shall--
       ``(A) in the case of an employee, be withheld from the pay 
     of such employee;
       ``(B) in the case of an annuitant, be withheld from the 
     annuity of such annuitant;
       ``(C) in the case of a member of the uniformed services 
     described under section 9001(6)(C), be withheld from the 
     basic pay of such member; and
       ``(D) in the case of a member of the uniformed services 
     described in section 9001(6)(D), be withheld from the retired 
     pay or retainer pay payable to such member.
       ``(2) Withholdings to pay the charges for enrollment of a 
     qualified relative may, upon election of the sponsoring 
     individual involved, be withheld under paragraph (1) in the 
     same manner as if enrollment were for such sponsoring 
     individual.
       ``(3) All amounts withheld under paragraph (1) or (2) shall 
     be paid directly to the carrier.
       ``(c)(1) Any enrollee whose pay, annuity, or retired or 
     retainer pay (as referred to in subsection (b)(1)) is 
     insufficient to cover the withholding required for enrollment 
     (or who is not receiving any regular amounts from the 
     Government, as referred to in subsection (b)(1), from which 
     any such withholdings may be made) shall pay an amount 
     described under paragraph (2) (or, in the case of an enrollee 
     not receiving any regular amounts, the full amount of those 
     charges) directly to the carrier.
       ``(2) The amount referred to under paragraph (1) is the 
     amount equal to the difference between the amount of 
     withholding required for the enrollment and the amount 
     actually withheld.
       ``(d) Each carrier participating under this chapter shall 
     maintain all amounts received under this chapter separate 
     from all other funds.
       ``(e) Contracts under this chapter shall include 
     appropriate provisions under which each carrier shall 
     reimburse the Office or other administering entity for the 
     administrative costs incurred by the Office or such entity 
     under this chapter (such as for dispute resolution) which are 
     allocable to such carrier.

[[Page 7661]]



     ``Sec. 9006. Regulations

       ``(a) The Office shall prescribe regulations necessary to 
     carry out this chapter.
       ``(b)(1) Subject to paragraph (2), the regulations of the 
     Office shall prescribe the time at which and the manner and 
     conditions under which an individual may obtain long-term 
     care insurance under this chapter.
       ``(2) The regulations prescribed under this section shall 
     provide for an open enrollment period at least once each year 
     (similar to the open enrollment period provided under section 
     8905(f)).
       ``(c) Any regulations necessary to effect the application 
     and operation of this chapter with respect to an eligible 
     individual or a qualified relative of such individual shall 
     be prescribed by the Office in consultation with the 
     appropriate Secretary.''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on the 
     date of enactment of this Act, except that no coverage may 
     become effective before the first calendar year beginning 
     after the expiration of the 18-month period beginning on the 
     date of enactment of this Act.
                                 ______
                                 
      By Mr. LIEBERMAN (for himself, Mr. Santorum, Mr. Durbin, Mr. 
        Abraham, Mr. Robb, and Mr. Kerrey):
  S. 895. A bill to provide for the establishment of Individual 
Development Accounts (IDAs) that will allow individuals and families 
with limited means an opportunity to accumulate assets, to access 
education, to own their own homes and businesses, and ultimately to 
achieve economic self-sufficiency, and for other purposes; to the 
Committee on Finance.


                    savings for working families act

 Mr. LIEBERMAN. Mr. President, with the economy in its 9th year 
of record growth, unemployment the lowest its been in over 25 years, 
and the stock market at an all time high, the following is worth 
noting:
  Fully a third of all American households have no financial assets to 
speak of.
  Another 20 percent have only negligible financial assets.
  Almost half of all American children live in households that have no 
financial assets.
  Over 10 million Americans don't even have a bank account.
  In our efforts to foster policies that encourage economic growth, we 
have not done enough for the group that needs it the most--hardworking 
low income Americans. We have established tax credits for retirement 
plans, for home mortgages, for college education, and so on, all of 
which make for good policy. The problem is that to take advantage of 
these policies, you must already have some wealth. You must already 
have some assets. To put it plainly, you cannot benefit from a home 
mortgage credit if you do not have the wealth to buy a home.
  So the challenge becomes creating a policy that helps low-income 
Americans reach the point where they can take advantage of these 
benefits. Any such policy must start with encouraging saving. Saving is 
empowering. It allows families to weather the bad times, to live 
without aid, and to deal with emergencies. Saving is also the first 
step to building assets.
  And having assets is a prerequisite for taking part in this economy. 
That is because assets offer a way up. Whether it is a home, an 
education, or a small business, assets can be leveraged to deal with 
the bad times and usher in the good. That is why I believe that our tax 
policies should provide more incentives for asset building.
  So Mr. President today along with Senators Santorum, Durbin, Abraham, 
Robb, and Kerrey of Nebraska, I offer tax legislation aimed at building 
assets for low-income families. The Savings for Working Families Act is 
centered around Individual Development Accounts (IDAs), an idea of Dr. 
Michael Sherraden of Washington University: create a savings account 
for low income workers that can be used to acquire assets, and allow 
the saver to receive matching funds towards the purchase of those 
assets.
  The Savings for Working Families Act allows for the creation by 
federally insured banks and credit unions of IDAs for U.S. citizens or 
legal residents aged 18 or over, with a household income of not more 
than 60 percent of area median income, and a household net worth that 
does not exceed $10,000 excluding home equity and the value of one car.
  The federal government will provide tax credits of up to $300 per 
account to financial institutions to reimburse them for providing 
matching funds for IDAs. All other sources of matching funds are 
welcome as well, including employers, charitable organizations, and the 
banks themselves.
  Before an individual can use money from an IDA, he or she must 
complete an economic literacy course that will be offered by 
participating banks and community organizations. The course will teach 
about saving, banking, investing, and IDAs. Two years from its 
establishment the Act requires the Secretary of the Treasury to review 
the program for its cost-effectiveness and make recommendations as 
necessary to the Congress. We expect a cost of $200-500 million per 
year.
  This is not a handout. Because only earned income is matched, IDAs 
only help those who are already trying to help themselves. Small IDA 
programs already exist across the country and have been overwhelmingly 
successfully. IDAs change the outlook of the saver. When you have 
assets, you have a stake in the economy, and you act to protect that 
stake.
  For example, in Stamford, Connecticut a receptionist named Scharlene 
is saving to start her own business through the CTE IDA program. She 
had always thought of her interest in jewelry as a hobby. But after 
working with CTE IDA program she has not only saved over $700, but has 
also learned the basics of running a business. I met Scharlene, and I 
can tell you that win or lose, she is on the path to success. I might 
also add that the Connecticut State Treasurer, Ms. Denise Nappier, is 
also investigating ways to set up a state-side IDA program, and I would 
like to commend her for her efforts.
  In the Sierra Ridge, Texas IDA program describes the case of Charles, 
a 38 year old divorced father of two. He uses that IDA program to save 
money for his children's education. Charles says that since he entered 
the program he thinks more about where his money goes: ``Having to 
commit to a long term goal makes us more aware that our decisions today 
could have consequences for tomorrow.'' His oldest daughter is planning 
on attending college in two years.
  Another example comes from a Bonneville, Kentucky IDA program. There, 
Pam, a 37 year old factory worker and mother of two, has been saving to 
start her own business. ``I want to start a business and I will,'' Pam 
said. Together with the matching funds she has saved over $1700 towards 
a combination dry cleaners/video store. Her reasons are simple: ``I 
want more for my children.''
  IDAs are good for business too. Financial institutions like IDAs 
because they bring some of the 10 million ``unbanked'' Americans into 
the system, and because it allows them to support low-income 
communities in a way that will ultimately be profitable for them. This 
is an idea that gives the right incentives to a deserving group in an 
effective and efficient manner. It is an idea that represents at once 
both our support of equal opportunity and our emphasis on self 
reliance. It is an idea whose time has come.
  Mr. President, with Senators Santorum, Durbin, Abraham, Robb, and 
Kerrey of Nebraska, I introduce the Savings for Working Families Act. I 
ask that the text of this bill be included in the Record.
  The bill follows:

                                 S. 895

       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 ``Savings 
     for Working Families Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.

    TITLE I--INDIVIDUAL DEVELOPMENT ACCOUNTS FOR LOW-INCOME WORKERS

Sec. 101. Structure and administration of individual development 
              account programs.

[[Page 7662]]

Sec. 102. Procedures for opening an Individual Development Account and 
              qualifying for matching funds.
Sec. 103. Contributions to Individual Development Accounts.
Sec. 104. Deposits by qualified financial institutions.
Sec. 105. Withdrawal procedures.
Sec. 106. Certification and termination of individual development 
              account programs.
Sec. 107. Reporting and evaluation.
Sec. 108. Funds in parallel accounts of program participants 
              disregarded for purposes of all means-tested Federal 
              programs.

      TITLE II--INDIVIDUAL DEVELOPMENT ACCOUNT INVESTMENT CREDITS

Sec. 201. Matching funds for Individual Development Accounts provided 
              through a tax credit for qualified financial 
              institutions.
Sec. 202. CRA credit provided for individual development account 
              programs.
Sec. 203. Designation of earned income tax credit payments for deposit 
              to Individual Development Account.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) One-third of all Americans have no assets available for 
     investment, and another 20 percent have only negligible 
     assets. The household savings rate of the United States lags 
     far behind other industrial nations, presenting a barrier to 
     national economic growth and preventing many Americans from 
     entering the economic mainstream by buying a house, obtaining 
     an adequate education, or starting a business.
       (2) By building assets, Americans can improve their 
     economic independence and stability, stimulate the 
     development of human and other capital, and work toward a 
     viable and hopeful future for themselves and their children. 
     Thus, economic well-being does not come solely from income, 
     spending, and consumption, but also requires savings, 
     investment, and accumulation of assets.
       (3) Traditional public assistance programs based on income 
     and consumption have rarely been successful in promoting and 
     supporting the transition to increased economic self-
     sufficiency. Income-based social policies that meet 
     consumption needs (including food, child care, rent, 
     clothing, and health care) should be complemented by asset-
     based policies that can provide the means to achieve long-
     term independence and economic well-being.
       (4) Individual Development Accounts (IDAs) can provide 
     working Americans with strong incentives to build assets, 
     basic financial management training, and access to secure and 
     relatively inexpensive banking services.
       (5) There is reason to believe that Individual Development 
     Accounts would also foster greater participation in electric 
     fund transfers (EFT), generate financial returns, including 
     increased income, tax revenue, and decreased welfare cash 
     assistance, that will far exceed the cost of public 
     investment in the program.

     SEC. 3. PURPOSES.

       The purposes of this Act are to provide for the 
     establishment of individual development accounts projects 
     that will--
       (1) provide individuals and families with limited means an 
     opportunity to accumulate assets and to enter the financial 
     mainstream;
       (2) promote education, homeownership, and the development 
     of small businesses; and
       (3) stabilize families and build communities.

     SEC. 4. DEFINITIONS.

       As used in this Act:
       (1) Eligible Individual.--
       (A) In general.--The term ``eligible individual'' means an 
     individual who--
       (i) has attained the age of 18 years;
       (ii) is a citizen or legal resident of the United States; 
     and
       (iii) is a member of a household--

       (I) which is eligible for the earned income tax credit 
     under section 32 of the Internal Revenue Code of 1986,
       (II) which is eligible for assistance under a State program 
     funded under part A of title IV of the Social Security Act, 
     or
       (III) the gross income of which does not exceed 60 percent 
     of the area median income (as determined by the Department of 
     Housing and Urban Affairs) and the net worth of which does 
     not exceed $10,000.

       (B) Household.--The term ``household'' means all 
     individuals who share use of a dwelling unit as primary 
     quarters for living and eating separate from other 
     individuals.
       (C) Determination of net worth.--
       (i) In general.--For purposes of subparagraph (A)(iii)(II), 
     the net worth of a household is the amount equal to--

       (I) the aggregate fair market value of all assets that are 
     owned in whole or in part by any member of a household, minus
       (II) the obligations or debts of any member of the 
     household.

       (ii) Certain assets disregarded.--For purposes of 
     determining the net worth of a household, a household's 
     assets shall not be considered to include the primary 
     dwelling unit and 1 motor vehicle owned by the household.
       (2) Individual development account.--The term ``Individual 
     Development Account'' means a custodial account established 
     for an eligible individual as part of an individual 
     development account program established under section 101, 
     but only if the written governing instrument creating the 
     account meets the following requirements:
       (A) No contribution will be accepted unless it is in cash, 
     by check, or by electronic fund transfer.
       (B) The custodian of the account is a qualified financial 
     institution.
       (C) The assets of the account will not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       (D) Except as provided in section 105(b), any amount in the 
     account may be paid out only for the purpose of paying the 
     qualified expenses of the eligible individual.
       (3) Qualified financial institution.--
       (A) In general.--The term ``qualified financial 
     institution'' means any federally insured financial 
     institution, including any bank, trust company, savings bank, 
     building and loan association, savings and loan company or 
     credit union.
       (B) Rule of construction.--Nothing in this paragraph shall 
     be construed as preventing an organization described in 
     subparagraph (A) from collaborating with 1 or more community-
     based, not-for-profit organizations described in section 
     501(c)(3) of the Internal Revenue Code of 1986 and exempt 
     from taxation under section 501(a) of such Code to carry out 
     an individual development account program established under 
     section 101, including serving as a custodian for any 
     Individual Development Account.
       (4) Qualified expenses.--The term ``qualified expenses'' 
     means, with respect to an eligible individual, 1 or more of 
     the following paid from an Individual Development Account and 
     from a separate, parallel individual or pooled account, as 
     provided by a qualified financial institution:
       (A) Post-secondary educational expenses.--Post-secondary 
     educational expenses paid directly to an eligible educational 
     institution. In this subparagraph:
       (i) Post-secondary educational expenses.--The term ``post-
     secondary educational expenses'' means the following:

       (I) Tuition and fees.--Tuition and fees required for the 
     enrollment or attendance of a student at an eligible 
     educational institution.
       (II) Fees, books, supplies and equipment.--Fees, books, 
     supplies, and equipment required for courses of instruction 
     at an eligible educational institution.

       (ii) Eligible educational institution.--The term ``eligible 
     educational institution'' means the following:

       (I) Institution of higher education.--An institution 
     described in section 481(a) or 1201(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1088(a)(1) or 1141(a)), as 
     such sections are in effect on the date of enactment of this 
     Act.
       (II) Post-secondary vocational education school.--An area 
     vocational education school (as defined in subparagraph (c) 
     or (d) of section 521(4) of the Carl D. Perkins Vocational 
     and Applied Technology Education Act (20 U.S.C. 2471(a))) 
     which is in any State (as defined in section 521(33) of such 
     Act ), as such sections are in effect on the date of 
     enactment of this Act.

       (B) First-home purchase.--Qualified acquisition costs with 
     respect to a qualified principal residence for a qualified 
     first-time home buyer, if paid directly to the persons to 
     whom the amounts are due. In this subparagraph:
       (i) Qualified acquisition costs.--The term ``qualified 
     acquisition costs'' means the cost of acquiring, 
     constructing, or reconstructing a residence. The term 
     includes any usual or reasonable settlement, financing, or 
     other closing costs.
       (ii) Qualified principal residence.--The term ``qualified 
     principal residence'' means a principal residence (within the 
     meaning of section 121 of the Internal Revenue Code of 1986).
       (iii) Qualified first-time home buyer.--

       (I) In general.--The term ``qualified first-time home 
     buyer'' means an individual participating in an individual 
     development account program (and, if married, the 
     individual's spouse) who has no present ownership interest in 
     a principal residence during the three-year period ending on 
     the date of acquisition of the principal residence to which 
     this subparagraph applies.
       (II) Date of acquisition.--The term ``date of acquisition'' 
     means the date on which a binding contract to acquire, 
     construct or reconstruct the principal residence to which 
     this subparagraph applies is entered into.

       (C) Business capitalization.--Amounts paid directly to a 
     business capitalization account which is established in a 
     qualified financial institution and is restricted to use 
     solely for qualified business capitalization expenses. In 
     this subparagraph:
       (i) Qualified business capitalization expenses.--The term 
     ``qualified business capitalization expense'' means qualified 
     expenditures for the capitalization of a qualified business 
     pursuant to a qualified plan.
       (ii) Qualified expenditures.--The term ``qualified 
     expenditures'' means expenditures

[[Page 7663]]

     included in a qualified plan, including capital, plant, 
     equipment, working capital and inventory expenses.
       (iii) Qualified business.--The term ``qualified business'' 
     means any business that does not contravene any law or public 
     policy (to be determined by the Secretary).
       (iv) Qualified plan.--The term ``qualified plan'' means a 
     business plan, or a plan to use a business asset purchased, 
     which--

       (I) is approved by a financial institution, a micro 
     enterprise development organization, or a nonprofit loan fund 
     having demonstrated fiduciary integrity;
       (II) includes a description of services or goods to be 
     sold, a marketing plan, and projected financial statements; 
     and
       (III) may require the eligible individual to obtain the 
     assistance of an experienced entrepreneurial adviser.

       (D) Qualified rollovers.--Amounts paid as qualified 
     rollovers. In this subparagraph, the term ``qualified 
     rollover'' means any amount paid directly--
       (i) to another Individual Development Account established 
     for the benefit of the eligible individual in another 
     qualified financial institution, or
       (ii) if such eligible individual dies, to an Individual 
     Development Account established for the benefit of another 
     eligible individual within 30 days of the date of death.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.

    TITLE I--INDIVIDUAL DEVELOPMENT ACCOUNTS FOR LOW-INCOME WORKERS

     SEC. 101. STRUCTURE AND ADMINISTRATION OF INDIVIDUAL 
                   DEVELOPMENT ACCOUNT PROGRAMS.

       (a) Establishment of Individual Development Account 
     Programs.--Any qualified financial institution may establish 
     1 or more individual development account programs which meet 
     the requirements of this Act either on its own initiative or 
     in partnership with community-based, not-for-profit 
     organizations.
       (b) Basic Program Structure.--
       (1) In general.--All individual development account 
     programs shall consist of the following 2 components:
       (A) An Individual Development Account to which an eligible 
     individual may contribute money in accordance with section 
     103.
       (B) A separate, parallel individual or pooled account to 
     which all matching funds shall be deposited in accordance 
     with section 104.
       (2) Tailored ida programs.--A qualified financial 
     institution may tailor its individual development account 
     program to allow matching funds to be spent on 1 or more of 
     the categories of qualified expenses.
       (c) Number of Accounts.--
       (1) In general.--The average number of active Individual 
     Development Accounts in an individual development account 
     program at any 1 banking office of a qualified financial 
     institution shall be limited to the applicable limit.
       (2) Applicable limit.--For purposes of this title, the 
     applicable limit shall be determined in accordance with the 
     following table:

                                                             Applicable
``Calendar year:                                                 Limit:
  2000.........................................................100 ....

  2001.........................................................200 ....

  2002.........................................................300 ....

  2003.........................................................400 ....

  2004 and thereafter..........................................500.....

       (d) Tax Treatment of Accounts.--Any account described in 
     subparagraph (B) of subsection (b)(1) is exempt from taxation 
     under the Internal Revenue Code of 1986 unless such account 
     has ceased to be such an account by reason of section 105(c) 
     or the termination of the individual development account 
     program under section 106(b).

     SEC. 102. PROCEDURES FOR OPENING AN INDIVIDUAL DEVELOPMENT 
                   ACCOUNT AND QUALIFYING FOR MATCHING FUNDS.

       (a) Opening an Account.--An eligible individual must open 
     an Individual Development Account with a qualified financial 
     institution and contribute money in accordance with section 
     103 to qualify for matching funds in a separate, parallel 
     individual or pooled account.
       (b) Required Completion of Economic Literacy Course.--
     Before becoming eligible to withdraw matching funds to pay 
     for qualified expenses, holders of Individual Development 
     Accounts must complete an economic literacy course offered by 
     the qualified financial institution, a nonprofit 
     organization, or a government entity.

     SEC. 103. CONTRIBUTIONS TO INDIVIDUAL DEVELOPMENT ACCOUNTS.

       (a) In General.--Except in the case of a qualified 
     rollover, individual contributions to an Individual 
     Development Account will not be accepted for the taxable year 
     in excess of an amount equal to the compensation (as defined 
     in section 219(f)(1) of the Internal Revenue Code of 1986) 
     includible in the individual's gross income for such taxable 
     year.
       (b) Proof of Compensation and Status as an Eligible 
     Individual.--Federal W-2 forms and other forms specified by 
     the Secretary proving the eligible individual's wages and 
     other compensation and the status of the individual as an 
     eligible individual shall be presented to the custodian at 
     the time of the establishment of the Individual Development 
     Account and at least once annually thereafter.
       (c) Time When Contributions Deemed Made.--For purposes of 
     this section, a taxpayer shall be deemed to have made a 
     contribution to an Individual Development Account on the last 
     day of the preceding taxable year if the contribution is made 
     on account of such taxable year and is made not later than 
     the time prescribed by law for filing the Federal income tax 
     return for such taxable year (not including extensions 
     thereof).
       (d) Cross Reference.--

  For designation of earned income tax credit payments for deposit to 
an Individual Development Account, see section 32(o) of the Internal 
Revenue Code of 1986.

     SEC. 104. DEPOSITS BY QUALIFIED FINANCIAL INSTITUTIONS.

       (a) Separate, Parallel Individual or Pooled Accounts.--The 
     qualified financial institution shall deposit all matching 
     funds for each Individual Development Account into a 
     separate, parallel individual or pooled account. The parallel 
     account or accounts shall earn not less than the market rate 
     of interest.
       (b) Regular Deposits of Matching Funds.--
       (1) In general.--Subject to paragraph (2), the qualified 
     financial institution shall deposit not less than quarterly 
     into the separate, parallel account with respect to each 
     eligible individual the following:
       (A) A dollar-for-dollar match for the first $300 
     contributed by the eligible individual into an Individual 
     Development Account with respect to any taxable year.
       (B) Any matching funds provided by State, local, or private 
     sources in accordance to the matching ratio set by those 
     sources.
       (2) Cross reference.--

  For allowance of tax credit to qualified financial institutions for 
Individual Development Account subsidies, including matching funds, see 
section 30B of the Internal Revenue Code of 1986.

       (c) Forfeiture of Matching Funds.--Matching funds that are 
     forfeited under section 105(b) shall be used by the qualified 
     financial institution to pay matches for other Individual 
     Development Account contributions by eligible individuals.
       (d) Exclusion From Income.--Gross income of an eligible 
     individual shall not include any matching fund deposited into 
     a parallel account under subsection (b) on behalf of such 
     individual.
       (e) Uniform Accounting Regulations.--The Secretary shall 
     prescribe regulations with respect to accounting for matching 
     funds from all possible sources in the parallel accounts.
       (f) Regular Reporting of Matching Deposits.--Any qualified 
     financial institution shall report matching fund deposits to 
     eligible individuals with Individual Development Accounts on 
     not less than a quarterly basis.

     SEC. 105. WITHDRAWAL PROCEDURES.

       (a) Withdrawals for Qualified Expenses.--
       (1) Request for withdrawal.--To withdraw money from an 
     eligible individual's Individual Development Account to pay 
     qualified expenses of such individual or such individual's 
     spouse or dependents, an eligible individual shall obtain 
     permission from the custodian of the individual development 
     account program. Such permission may include a request to 
     withdraw matching funds from the applicable parallel account.
       (2) Disbursement of funds.--Once permission to withdraw 
     funds is granted under paragraph (1), the qualified financial 
     institution shall directly transfer such funds from the 
     Individual Development Account, and, if applicable, from the 
     parallel account electronically to the vendor or other 
     Individual Development Account. If the vendor is not equipped 
     to receive funds electronically, the qualified financial 
     institution may issue such funds by paper check to the 
     vendor.
       (3) Resolution of disputes.--The qualified financial 
     institution shall establish a grievance procedure to hear, 
     review, and decide in writing any grievance made by an 
     Individual Development Account holder who disputes a decision 
     of the operating organization that a withdrawal is not for 
     qualified expenses.
       (b) Withdrawals for Nonqualified Expenses.--An Individual 
     Development Account holder may unilaterally withdraw funds 
     from the Individual Development Account for purposes other 
     than to pay qualified expenses, but shall forfeit the 
     corresponding matching funds and interest earned on the 
     matching funds by doing so, unless such withdrawn funds are 
     recontributed to such Account within 1 year of withdrawal.
       (c) Deemed Withdrawals From Accounts of Noneligible 
     Individuals.--If, during any taxable year of the individual 
     for whose benefit an Individual Development Account is 
     established, such individual ceases to be an eligible 
     individual, such account shall cease to be an Individual 
     Development Account as of the first day of such taxable year 
     and any balance in such account shall be deemed to have been 
     withdrawn on such first day by such individual for purposes 
     other than to pay qualified expenses.
       (d) Tax Treatment of Withdrawn Amounts.--Any amount 
     withdrawn from an Individual Development Account or any

[[Page 7664]]

     matching funds withdrawn from a parallel account shall be 
     includible in gross income to the extent such amount has not 
     previously been so includible.

     SEC. 106. CERTIFICATION AND TERMINATION OF INDIVIDUAL 
                   DEVELOPMENT ACCOUNT PROGRAMS.

       (a) Certification Procedures.--Upon establishing an 
     individual development account program under section 101, a 
     qualified financial institution shall certify to the 
     Secretary on forms prescribed by the Secretary and 
     accompanied by any documentation required by the Secretary, 
     that--
       (1) the accounts described in subparagraphs (A) and (B) of 
     section 101(b)(1) are operating pursuant to all the 
     provisions of this Act; and
       (2) the qualified financial institution agrees to implement 
     an information system necessary to permit the Secretary to 
     evaluate the cost and effectiveness of the individual 
     development account program.
       (b) Authority To Terminate IDA Program.--If the Secretary 
     determines that a qualified financial institution under this 
     Act is not operating an individual development account 
     program in accordance with the requirements of this Act (and 
     has not implemented any corrective recommendations directed 
     by the Secretary), the Secretary shall terminate such 
     institution's authority to conduct the program. If the 
     Secretary is unable to identify a qualified financial 
     institution to assume the authority to conduct such program, 
     then any account established for the benefit of any eligible 
     individual under such program shall cease to be an Individual 
     Development Account as of the first day of such termination 
     and any balance in such account shall be deemed to have been 
     withdrawn on such first day by such individual for purposes 
     other than to pay qualified expenses.

     SEC. 107. REPORTING AND EVALUATION.

       (a) Responsibilities of Qualified Financial Institutions.--
     Each qualified financial institution that establishes an 
     individual development account program under section 101 
     shall report annually to the Secretary within 90 days after 
     the end of each calendar year on--
       (1) the number of eligible individuals making contributions 
     into Individual Development Accounts;
       (2) the amounts contributed into Individual Development 
     Accounts and deposited into the separate, parallel accounts 
     for matching funds;
       (3) the amounts withdrawn from Individual Development 
     Accounts and the separate, parallel accounts, and the 
     purposes for which such amounts were withdrawn;
       (4) the balances remaining in Individual Development 
     Accounts and separate, parallel accounts; and
       (5) such other information needed to help the Secretary 
     evaluate the cost and effectiveness of the individual 
     development account program.
       (b) Responsibilities of the Secretary.--
       (1) Two-year evaluation.--Not later than 24 months after 
     the date of enactment of this Act, the Secretary shall 
     evaluate the cost and effectiveness of the individual 
     development account programs established under section 101. 
     In addition, the Secretary shall evaluate the effect of the 
     account limitation under section 101(c) on each banking 
     office of a qualified financial institution and make 
     recommendations for its adjustment or removal.
       (2) Four-year evaluation.--Not later than 48 months after 
     the date of enactment of this Act, the Secretary shall 
     evaluate the effect of the individual development account 
     programs established under section 101 on the eligible 
     individuals.
       (3) Subsequent annual evaluations.--In each subsequent year 
     after the first evaluation under paragraph (1) or (2), the 
     Secretary shall issue an update on the status of such 
     individual development account programs.
       (4) Appropriations for evaluations.--There is authorized to 
     be appropriated $5,000,000 for the purposes of evaluating 
     individual development account programs established under 
     section 101, to remain available until expended.

     SEC. 108. FUNDS IN PARALLEL ACCOUNTS OF PROGRAM PARTICIPANTS 
                   DISREGARDED FOR PURPOSES OF ALL MEANS-TESTED 
                   FEDERAL PROGRAMS.

       Notwithstanding any other provision of law that requires 
     consideration of 1 or more financial circumstances of an 
     individual, for the purposes of determining eligibility to 
     receive, or the amount of, any assistance or benefit 
     authorized by such law to be provided to or for the benefit 
     of such individual, funds (including interest accruing) in 
     any parallel account shall be disregarded for such purpose 
     with respect to any period during which the individual 
     participates in an individual development account program 
     established under section 101.

      TITLE II--INDIVIDUAL DEVELOPMENT ACCOUNT INVESTMENT CREDITS

     SEC. 201. MATCHING FUNDS FOR INDIVIDUAL DEVELOPMENT ACCOUNTS 
                   PROVIDED THROUGH A TAX CREDIT FOR QUALIFIED 
                   FINANCIAL INSTITUTIONS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     other credits) is amended by inserting after section 30A the 
     following:

     ``SEC. 30B. INDIVIDUAL DEVELOPMENT ACCOUNT INVESTMENT CREDIT 
                   FOR QUALIFIED FINANCIAL INSTITUTIONS.

       ``(a) Determination of Amount.--There shall be allowed as a 
     credit against the applicable tax for the taxable year an 
     amount equal to the individual development account investment 
     provided by a qualified financial institution during the 
     taxable year under an individual development account program 
     established under section 101 of the Savings for Working 
     Families Act.
       ``(b) Applicable Tax.--For the purposes of this section, 
     the term `applicable tax' means the excess (if any) of--
       ``(1) the sum of--
       ``(A) the tax imposed under this chapter (other than the 
     taxes imposed under the provisions described in subparagraphs 
     (C) through (Q) of section 26(b)(1)), plus
       ``(B) the tax imposed under section 3111, over
       ``(2) the credits allowable under subparts B and D of this 
     part.
       ``(c) Individual Development Account Investment.--For 
     purposes of this section, the term `individual development 
     account investment' means, with respect to an individual 
     development account program of a qualified financial 
     institution in any taxable year, an amount equal to the sum 
     of--
       ``(1) the aggregate amount of dollar-for-dollar matches 
     under such program by such institution under section 104 of 
     the Savings for Working Families Act for such taxable year, 
     plus
       ``(2) an amount equal to the lesser of--
       ``(A) 50 percent of the aggregate costs paid or incurred 
     under such program by such institution during such taxable 
     year--
       ``(i) to provide economic literacy training to Individual 
     Development Account holders under section 102(b) of such Act, 
     either directly or indirectly through nonprofit organizations 
     or government entities, and
       ``(ii) to underwrite the activities of collaborating 
     community-based, not-for-profit organizations (within the 
     meaning of section 4(3)(B) of such Act), or
       ``(B) $100, times the total number of Individual 
     Development Accounts maintained by such institution under 
     such program during such taxable year.
       ``(d) Other Definitions.--For purposes of this section, the 
     terms `Individual Development Account' and `qualified 
     financial institution' have the meanings given such terms by 
     section 4 of the Savings for Workings Families Act.
       ``(e) Regulations.--The Secretary may prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this section, including regulations providing for a recapture 
     of the credit allowed under this section in cases where there 
     is a forfeiture under section 105(b) of the Savings for 
     Workings Families Act in a subsequent taxable year of any 
     amount which was taken into account in determining the amount 
     of such credit.''
       (b) Transfer to Trust Funds.--The Secretary of the Treasury 
     shall transfer from the general fund of the United States 
     Treasury to the Federal Old-Age and Survivors Insurance Trust 
     Fund, the Federal Disability Insurance Trust Fund, and the 
     Federal Hospital Insurance Trust Fund amounts equivalent to 
     the amount of the reduction in taxes imposed by section 3111 
     of the Internal Revenue Code of 1986 by reason of the credit 
     determined under section 30B (relating to the individual 
     development account investment credit for qualified financial 
     institutions). Any such transfer shall be made at the same 
     time that the reduced taxes would have been deposited in such 
     Trust Funds.
       (c) Conforming Amendment.--The table of sections for 
     subpart B of part IV of subchapter A of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     the item relating to section 30A the following:

``Sec. 30B. Individual development account investment credit for 
              qualified financial institutions.''

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. 202. CRA CREDIT PROVIDED FOR INDIVIDUAL DEVELOPMENT 
                   ACCOUNT PROGRAMS.

       Qualified financial institutions which establish individual 
     development account programs under section 101 shall receive 
     credit for funding, administration, and education expenses 
     under the services test contained in regulations for the 
     Community Reinvestment Act of 1977 for those activities 
     related to Individual Development Accounts.

     SEC. 203. DESIGNATION OF EARNED INCOME TAX CREDIT PAYMENTS 
                   FOR DEPOSIT TO INDIVIDUAL DEVELOPMENT ACCOUNT.

       (a) In General.--Section 32 of the Internal Revenue Code of 
     1986 (relating to earned income credit) is amended by adding 
     at the end the following:
       ``(o) Designation of Credit for Deposit to Individual 
     Development Account.--
       ``(1) In general.--With respect to the return of any 
     eligible individual (as defined in section 4(1) of the 
     Savings for Working Families Act) for the taxable year of the 
     tax imposed by this chapter, such individual may

[[Page 7665]]

     designate that a specified portion (not less than $1) of any 
     overpayment of tax for such taxable year which is 
     attributable to the credit allowed under this section shall 
     be deposited by the Secretary into an Individual Development 
     Account (as defined in section 4(2) of such Act) of such 
     individual. The Secretary shall so deposit such portion 
     designated under this paragraph.
       ``(2) Manner and time of designation.--A designation under 
     paragraph (1) may be made with respect to any taxable year--
       ``(A) at the time of filing the return of the tax imposed 
     by this chapter for such taxable year, or
       ``(B) at any other time (after the time of filing the 
     return of the tax imposed by this chapter for such taxable 
     year) specified in regulations prescribed by the Secretary.

     Such designation shall be made in such manner as the 
     Secretary prescribes by regulations.
       ``(3) Portion attributable to earned income tax credit.--
     For purposes of paragraph (1), an overpayment for any taxable 
     year shall be treated as attributable to the credit allowed 
     under this section for such taxable year to the extent that 
     such overpayment does not exceed the credit so allowed.
       ``(4) Overpayments treated as refunded.--For purposes of 
     this title, any portion of an overpayment of tax designated 
     under paragraph (1) shall be treated as being refunded to the 
     taxpayer as of the last date prescribed for filing the return 
     of tax imposed by this chapter (determined without regard to 
     extensions) or, if later, the date the return is filed.
       ``(5) Termination.--This subsection shall not apply to any 
     taxable year beginning after December 31, 2006.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.
                                 ______
                                 
      By Mr. GRAMS (for himself, Mr. Abraham, and Mr. Kyl):
  S. 896. A bill to abolish the Department of Energy, and for other 
purposes; to the Committee on Energy and Natural Resources.


            THE DEPARTMENT OF ENERGY ABOLISHMENT ACT OF 1999

  Mr. GRAMS. Mr. President, I rise to introduce The Department of 
Energy Abolishment Act of 1999. I am pleased to include as original 
cosponsors Senator Spencer Abraham and Senator Jon Kyl and want to 
thank them for their support both this year and in past Congresses.
  I would also like to say that Congressman Todd Tiahrt will be 
introducing his DOE elimination bill today in the House of 
Representatives and I thank him for his continued leadership and 
cooperation on this issue.
  As many of my colleagues are aware, the effort to eliminate the DOE 
is not a new endeavor. In fact, since its inception, experts have been 
clamoring to eliminate the Department and to move its programs back to 
the agencies from which they were taken--agencies better suited to 
achieving specific programmatic goals.
  When we began to look into the specifics of DOE elimination in the 
104th Congress, we considered three main issues. First, we examined the 
fact that the Department of Energy no longer has a mission--a situation 
clearly reflected by the fact that nearly 85 percent of its budget is 
expended upon ``non-energy'' programs.
  The Department was created to develop a long-term energy strategy 
with an ultimate goal of energy indepedence. Sadly, we are now far more 
reliant upon foreign energy sources than we were when the Department 
was created.
  During the long oil lines of the 1970s, we were about 35 percent 
dependent on foreign oil. Today, it is more than 60 percent. So our 
foreign oil dependency has grown, and a lack of an energy strategy is a 
result of the failure of the DOE.
  I recall at one point Secretary Hazel O'Leary commented that we 
should consider taking the word ``energy'' out of the Department's name 
because it was such a small portion of its overall activity. Next, we 
studied those programs charged to the DOE and reviewed its ability to 
meet the related job requirements.
  And finally, we looked at the DOE's ever-increasing budget in light 
of the first two criterion--determining whether the taxpayers should be 
forced to expend nearly $18 billion annually on this bureacratic 
hodgepodge.
  Now, I want to be up front and say for the record that I acknowledge 
the difficulties inherent in eliminating a cabinet-level agency. I am 
keenly aware that the chances of passing this bill into law in this 
Congress, with this Administration, and in a presidential election year 
are difficult.
  Those chances may be exactly as they were in 1996 when I first 
introduced this legislation and when we held our first hearing on the 
matter, but unfortunately, the reasons for offering the bill haven't 
changed.
  In 1996, the opponents of this legislation charged that it was 
unnecessary. They claimed that the Department was headed in the right 
direction and making the changes necessary to both justify its mission 
and reduce its bloated budget.
  The call of many Members of Congress to eliminate the Department 
encouraged a group of DOE supporters to back a hastily arranged set of 
objectives in defense of the DOE's record of mismanagement.
  At the time of the 1996 hearings on this legislation, the backers of 
the Department relied largely on the DOE's Strategic Alignment and 
Downsizing Initiative as a defense against charges that the Department 
wasted too much money and that the Department was involved in a two-
decades old scavenger hunt for new missions.
  The Strategic Alignment and Downsizing Initiative, its proponents 
claimed, would save taxpayers over $14 billion in 5 years and change 
the way the DOE conducted business. Regrettably, those projections were 
never met and the Initiative was never taken seriously--even by the 
same people who touted its promise.
  In fact, while they have continued their reluctance to reduce their 
budget--they have continuously sought billions of dollars in budget 
increase to fund their on-going mission creep. So I think its 
worthwhile to look back on the great hopes those opposed to my bill 
placed on this proposal.
  While speaking about this legislation on September 4, 1996, in the 
Energy and Natural Resources Committee, Senator Bennett Johnston said, 
``Maybe all of this would be worth doing if we were going to save the 
taxpayers a lot of money. But the operational savings claimed by S. 
1678 by the Heritage Foundation are actually less than the operational 
savings that would be realized by the Department's on-going strategic 
realignment initiative, savings that the GAO has testified are real.''
  In other words, the Senator was saying that the Department of Energy 
would save more money for the taxpayers by doing a better job than we 
could by eliminating the department.
  As I stated earlier, Mr. President, the Strategic Alignment and 
Downsizing Initiative--the great hope of DOE's defenders in 1996--
hasn't achieved one red cent of budgetary savings over the last 4 
years, and it doesn't appear that anything is going to change anytime 
soon. Regrettably, the Strategic Alignment and Downsizing Initiative 
isn't the only improvement the Department has failed to make over the 
past four years.
  Today, commercial nuclear waste still sits at 73 sites in 34 states 
despite both legal and contractual obligations that mandated the 
removal of the waste by January 31, 1998, more than a year ago.
  Since my election to the Senate in 1994, I have listened to a parade 
of DOE witnesses tell the Energy and Natural Resources Committee that 
they are committed to resolving this conflict and living up to their 
responsibilities. Every nominee I have questioned has told me how 
important this issue is to them and how they are going to work with 
Congress. But not one of them--not one--in any substantive way, has 
taken actions which generate faith in Congress that the DOE is capable 
of fulfilling its promises. Again--not one--nominee has delivered on 
their promises--instead, of what they need to say to get confirmed and 
then return to business as usual.
  They don't keep their promises. They say what they need to say, what 
Congress wants to hear to get confirmed, and then they go on with 
business as usual.
  Today, the Government Performance and Results Act paints a clear 
picture of how difficult it is to get a grip on the size of problems at 
the Department

[[Page 7666]]

of Energy. The Department's final strategic plan, which took four years 
of preparation, scored a pathetic 43.5 points out of a possible 100. 
That is how good this is.
  And the DOE's FY99 annual performance plan was ranked fourth from 
last of all government agencies--scoring 30 out of a possible 100. No 
business, no college student, no family, could consistently perform so 
miserably and yet maintain a cushy existence of even larger and larger 
budgets.
  But thanks to an indifferent Administration, and a Congress that 
places too little importance on its oversight role, the DOE continues 
along with the knowledge that its protectors will keep the lights on 
and the funding flowing without any regard for the American taxpayer.
  And today, as this nation continues to grow increasingly dependent 
upon foreign oil--in total contrast to the DOE's core mission. Even in 
light of this Administration's focus on alternative energy, the DOE 
expends less than one-sixth of its budget on ``energy'' related 
programs--a trend that clearly will continue well into the future.
  Let me be the first to state that the proposals contained within this 
bill are not all of my own. The idea to eliminate the Department of 
Energy is not a new one--since its creation in 1978, experts have been 
clamoring to abolish this ``agency in search of a mission.'' This bill 
represents the comments and input of many who have worked in these 
fields for decades, but, I consider it a work in progress.
  Under the Department of Energy Abolishment Act of 1999, we dismantle 
the patchwork quilt of government initiatives--reassembling them into 
agencies better equipped to accomplish their basic goals; we refocus 
and increase federal funding towards basic research by eliminating 
corporate welfare; and, we abolish the bloated, duplicative upper 
management bureaucracy.
  First, we begin by eliminating Energy's cabinet-level status and 
establishing a three-year Resolution Agency to oversee the transition. 
This is critical to ensuring progress continues to be made on the core 
programs.
  Under Title I, the Federal Energy Regulatory Commission (FERC) is 
spun off to become an independent agency, as it was prior to the 
creation of the DOE. The division which oversees hearings and appeals 
is eliminated, with all pending cases transferred to the Department of 
Justice for resolution within 1 year. The functions of the Energy 
Information Administration are transferred to the Department of 
Interior with the instruction to privatize as many as possible. And 
with the exception of research being conducted by the DOE labs, basic 
science and energy research functions are transferred to Interior for 
determination on which are basic research, and which can be privatized. 
Those deemed as core research will be transferred to the National 
Science Foundation and reviewed by an independent commission. Those 
that are more commercial in nature will be subject to disposition 
recommendations by the Secretary of Interior.
  The main reasoning behind this is to ensure the original mission of 
the DOE--to develop this nation's energy independence--is carried out.
  With scarce taxpayer dollars currently competing against defense and 
cleanup programs within the DOE, it's no surprise that little progress 
has been made. However, by refocusing dollars into competitive 
alternative energy research, we will maximize the potential for areas 
such as solar, wind, biomass, etc.
  For states like Minnesota, where the desire for renewable energy 
technologies is high, growth in these areas could help fend off our 
growing dependence upon foreign oil while protecting our environment.
  Under Title II, the laboratory structure within the DOE is revamped.
  First, the three ``defense labs'' are transferred to the Defense 
Department. They include Sandia, Los Alamos and Lawrence Livermore. The 
remaining labs are studied by a ``Non-defense Energy Laboratory 
Commission''.
  This independent commission operates much like the Base Closure 
Commission and can recommend restructuring, privatization or a transfer 
to the DOD as alternatives to closure. Congress is granted fast-track 
authority to adopt the Commission's recommendations.
  Title III directs the General Accounting Office to assess an 
inventory of the Power Marketing Administration's assets, liabilities, 
etc. This inventory is aimed at ensuring fair treatment of current 
customers and a fair return to the taxpayers. All issues, including 
payments by current customers, must be included in the GAO audit.
  Petroleum Reserves are the focus of Title IV. The Naval Petroleum 
Reserve is targeted for immediate sale. Any of the reserves that are 
unable to be disposed of within the three-year window will be sold 
transitionally from the Interior Department.
  The Strategic Petroleum Reserve is transferred to the Defense 
Department and an audit on value and maintenance costs is conducted by 
the GAO. Then, the DOD is charged with determining how much oil to 
maintain for national security purposes after reviewing the GAO report.
  Under Titles V and VI, all of the national security and environmental 
restoration/management activities are sent to the Department of 
Defense.
  Therefore, all defense-related activities are transferred back to 
Defense, but are placed in a new civilian controlled agency (the 
Defense Nuclear Programs Agency) to ensure budget firewalls and 
civilian control over sensitive activities such as arms control and 
nonproliferation activities.
  And the program which has received much criticism as of late, the 
Civilian Nuclear Waste Program, is transferred to the Corps of 
Engineers. This section dovetails legislation adopted by the Senate 
last Congress. A key element is that the interim storage site is 
designated at Nevada's Test Site Area 25.
  As I mentioned in the beginning of my statement, while I believe we 
should eliminate the Department as cabinet-level agency, I appreciate 
the difficulty involved in accomplishing this goal now and realize the 
opposition to this among many of my colleagues. For that reason, I 
believe it is important to point out that the reasons I have outlined 
for eliminating the Department have a dual purpose--they can also serve 
as reasons for improving the Department.
  Toward that end, I am willing to work with any Member of the Senate 
and House to improve, downsize, or restructure the DOE. I have long 
advocated positions which are consistent with my beliefs.
  I am an original co-sponsor of The Nuclear Waste Policy Act of 1999--
legislation I believe is essential to fulfilling the DOE's promises to 
America's ratepayers and taxpayers. I have been a strong supporter of 
legislation and efforts which are aimed at improving our nation's 
energy security by promoting domestically produced alternative and 
renewable fuels. Those efforts have included support for extending the 
ethanol tax credit, including biodiesel as an alternative fuel under 
the Energy Policy Act, cosponsoring the Wind Energy Tax Credit, 
cosponsoring the Poultry Litter Tax Credit legislation, and 
cosponsoring legislation to reform the hydropower relicensing process.
  Briefly, I believe those efforts strengthen the original mission of 
the Department of Energy. My bottom line is, I want America's taxpayers 
to be assured they are receiving a proper return on their investment.
  The taxpayers need to have confidence they are receiving the services 
they deserve. Unfortunately, the record of the Department of Energy is 
evidence in part of our reliance upon foreign oil, by the nuclear waste 
program debacle and by the low ratings it receives under the Government 
Performance and Results Act, and is a record of failure the taxpayers 
should no longer be forced to bear.
  I patiently awaited the reforms and savings promised by the 
Department and its advocates, but the waiting continues and the savings 
never developed. As long as this is the case, I will continue to offer 
my legislation to dismantle the Department of Energy and shift its 
responsibilities elsewhere.

[[Page 7667]]


                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Hagel):
  S. 897. A bill to provide matching grants for the construction, 
renovation and repair of school facilities in areas affected by Federal 
activities, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.


               federally impacted school improvement act

  Mr. HAGEL. Mr. President, I join the senior Senator from Montana, 
Senator Baucus, in introducing the Federally Impacted School 
Improvement Act. This bipartisan legislation is designed to renew and 
enhance the partnership between the federal government and schools 
located on or around Indian reservations and military bases.
  For almost fifty years Congress has provided financial assistance to 
school districts impacted by a federal presence. Up until 1994, 
Congress also provided funding to help these communities defray the 
cost of building and repairing their schools.
  The loss of this particular revenue over the last five years, 
combined with the continued under-funding for almost 15 years of the 
impact aid program in general, has left school districts that serve 
military and Indian children scrambling to finance their routine costs. 
As a result, many of these schools now have buildings that are 
antiquated, overcrowded and compromise the health and safety of their 
students.
  The Federally Impacted School Improvement Act takes a step toward 
correcting this situation by providing matching grants that impacted 
schools can use to address their most pressing modernization needs. 
This Act authorizes a federal appropriation of $50 million for each of 
the next five fiscal years for impact aid school construction and 
repair.
  Forty-five percent of the funds appropriated under the bill go to 
Indian lands. Another forty-five percent is dedicated to military 
schools. The final ten percent will be reserved for emergency 
situations.
  In order to make limited federal funds go farther, our bill calls for 
local communities to contribute their share to this effort. Schools and 
communities will have to match the federal grants on all but the 10% 
appropriated for emergencies. This is done to ensure that all--or at 
least more--impacted schools will have the opportunity to use these new 
grants to improve their facilities.
  The federal government cannot and should not be all things to all 
people. However, Congress has a responsibility to ensure that highly 
impacted school districts, such as Bellevue and Santee, Nebraska, are 
not shortchanged.
  The hardships faced by our military personnel, their families and 
individuals living on Indian reservations are well known. Their 
children deserve no less than the best educational facilities.
  The Federally Impacted School Improvement Act helps to meet our 
commitment to schools and children impacted by a federal presence. It 
makes good use of our limited federal resources. It embodies what we 
should be doing more of--building partnerships between local 
communities, taxpayers and government in order to strengthen our 
schools.
  I urge my colleagues to support this legislation. I also request 
unanimous consent that the bill and a letter sent to me by the Northern 
Nebraska Native American Consortium be placed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 897

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

     SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.

       (a) Short Title.--This Act may be cited as the ``Federally 
     Impacted School Improvement Act''.
       (b) Findings.--Congress makes the following findings:
       (1) In 1950 Congress recognized its obligation, through the 
     passage of Public Law 81-815, to provide school construction 
     funding for local educational agencies impacted by the 
     presence of Federal activities.
       (2) The conditions of federally impacted school facilities 
     providing educational programs to children in areas where the 
     Federal Government is present have deteriorated to such an 
     extent that the health and safety of the children served by 
     such agencies is being compromised, and the school conditions 
     have not kept pace with the increase in student population 
     causing classrooms to become severely overcrowded and 
     children to be educated in trailers.
       (3) Local educational agencies in areas where there exists 
     a significant Federal presence have little if any capacity to 
     raise local funds for purposes of capital construction, 
     renovation and repair due to the nontaxable status of Federal 
     land.
       (4) The need for renewed support by the Federal Government 
     to help federally connected local educational agencies 
     modernize their school facilities is far greater in 2000 than 
     at any time since 1950.
       (5) Federally connected local educational agencies and the 
     communities the agencies serve are willing to commit local 
     resources when available to modernize and replace existing 
     facilities, but do not always have the resources available to 
     meet their total facility needs due to the nontaxable 
     presence of the Federal Government.
       (6) Due to the conditions described in paragraphs (1) 
     through (5) there is in 1999, as there was in 1950, a need 
     for Congress to renew its obligation to assist federally 
     connected local educational agencies with their facility 
     needs.
       (c) Purpose.--The purpose of this Act is to provide 
     matching grants to local educational agencies for the 
     modernization of minimum school facilities that are urgently 
     needed because--
       (1) the existing school facilities of the agency are in 
     such disrepair that the health and safety of the students 
     served by the agency is threatened; and
       (2) increased enrollment results in a need for additional 
     classroom space.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Modernization.--The term ``modernization'' means the 
     repair, renovation, alteration, or construction of a 
     facility, including--
       (A) the concurrent installation of equipment; and
       (B) the complete or partial replacement of an existing 
     facility, but only if such replacement is less expensive and 
     more cost-effective than repair, renovation, or alteration of 
     the facility.
       (2) Facility.--The term ``facility'' means a public 
     structure suitable for use as a classroom, laboratory, 
     library, media center, or related facility, the primary 
     purpose of which is the instruction of public elementary 
     school or secondary school students.
       (3) Local educational agency.--The term ``local educational 
     agency'' has the meaning given the term in section 14101 of 
     the Elementary and Secondary Education Act of 1965.
       (4) Secretary.--The term ``Secretary'' means--
       (A) with respect to funds made available under paragraph 
     (1) or (3) of section 4(a) for grants under section 6 or 8, 
     respectively, the Secretary of Education; and
       (B) with respect to funds made available under paragraph 
     (2) of section (4)(a) for grants under section 6, the 
     Secretary of Defense.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Department of Education to carry out this Act $50,000,000 
     for fiscal year 2001 and such sums as may be necessary for 
     each of the 4 succeeding fiscal years.
       (b) Prohibition.--None of the funds authorized to be 
     appropriated under subsection (a) shall be available to a 
     local educational agency to pay the cost of administration of 
     the activities assisted under this Act.

     SEC. 4. FEDERAL DISTRIBUTION OF FUNDING.

       (a) In General.--From amounts appropriated under section 
     3(a) for a fiscal year the Secretary of Education--
       (1) shall use 45 percent to award grants under section 6 to 
     local educational agencies--
       (A) that are eligible for assistance under section 8002(a); 
     and
       (B) for which the number of children determined under 
     section 8003(a)(1)(C) of the Elementary and Secondary 
     Education Act of 1965 constitutes at least 25 percent of the 
     number of children who were in average daily attendance in 
     the schools of such local educational agency during the 
     school year preceding the school year for which the 
     determination is made;
       (2) shall make available to the Secretary of Defense 45 
     percent to enable the Secretary of Defense to award grants 
     under section 6 to local educational agencies for which the 
     number of children determined under subparagraphs (A), (B), 
     and (D) of section 8003(a)(1) of the Elementary and Secondary 
     Education Act of 1965 constitutes at least 25 percent of the 
     number of children who were in average daily attendance in 
     the schools of such local educational agency during the 
     school year preceding the school year for which the 
     determination is made; and
       (3) shall use 10 percent to award grants under section 8.
       (b) Department of Defense Funding.--
       (1) In general.--Not later than 30 days after the date the 
     Secretary of Education receives funds appropriated under 
     section 3(a)

[[Page 7668]]

     for a fiscal year, the Secretary of Education shall make 
     available to the Secretary of Defense from such funds the 
     portion of such funds described in subsection (a)(2) for the 
     fiscal year. The Secretary of Defense shall use the portion 
     to award grants under section 6 through the Office of 
     Economic Adjustment of the Department of Defense.
       (2) Limitations.--
       (A) Administrative expenses.--No funds made available under 
     subsection (a)(2) shall be used by the Secretary of Defense 
     to pay the costs of administration of the activities assisted 
     under this Act.
       (B) Special rate.--No funds made available under subsection 
     (a)(2) shall be used to replace Federal funds provided to 
     enhance the quality of life of dependents of members of the 
     Armed Forces as determined by the Secretary of Defense.

     SEC. 5. ELIGIBILITY REQUIREMENTS.

       (a) In General.--A local educational agency shall be 
     eligible to receive funds under this Act if--
       (1) the local educational agency is described in paragraph 
     (1) or (2) of section 4(a); and
       (2) the local educational agency--
       (A) received a payment under section 8002 of the Elementary 
     and Secondary Education Act of 1965 during the fiscal year 
     preceding the fiscal year for which the determination is 
     made, and the assessed value of taxable property per student 
     in the school district of the local educational agency is 
     less than the average of the assessed value of taxable 
     property per student in the State in which the local 
     educational agency is located; or
       (B) received a basic payment under section 8003(b) of the 
     Elementary and Secondary Education Act of 1965 during the 
     fiscal year preceding the fiscal year for which the 
     determination is made, and for which the number of children 
     determined under subparagraphs (A), (B), (C), and (D) of 
     section 8003(a)(1) of the Elementary and Secondary Education 
     Act of 1965 constituted at least 25 percent of the number of 
     children who were in average daily attendance in the schools 
     of such local educational agency during the school year 
     preceding the school year for which the determination is 
     made.
       (b) Special Rule.--Any local educational agency described 
     in subsection (a)(2)(B) may apply for funds under this 
     section for the modernization of a facility located on 
     Federal property (as defined in section 8013 of the 
     Elementary and Secondary Education Act of 1965) only if the 
     Secretary determines that the number of children determined 
     under section 8003(a)(1) of the Elementary and Secondary 
     Education Act of 1965 who were in average daily attendance in 
     such facility constituted at least 50 percent of the number 
     of children who were in average daily attendance in the 
     facilities of the local educational agency during the school 
     year preceding the school year for which the determination is 
     made.

     SEC. 6. BASIC GRANTS.

       (a) Award Basis.--From the amounts made available under 
     paragraphs (1) and (2) of section 4(a) the Secretary shall 
     award grants to local educational agencies on such basis as 
     the Secretary determines appropriate, including--
       (1) in the case of a local educational agency described in 
     section 5(a)(2)(A), a high percentage of the property in the 
     school district of the local educational agency is nontaxable 
     due to the presence of the Federal Government;
       (2) in the case of a local educational agency described in 
     section 5(a)(2)(B), a high number or percentage of children 
     determined under subparagraphs (A), (B), (C), and (D) of 
     section 8003(a)(1) of the Elementary and Secondary Education 
     Act of 1965;
       (3) the extent to which the local educational agency lacks 
     the fiscal capacity, including the ability to raise funds 
     through the full use of the local educational agency's 
     bonding capacity and otherwise, to undertake the 
     modernization project without Federal assistance;
       (4) the need for modernization to meet--
       (A) the threat the condition of the facility poses to the 
     safety and well-being of students;
       (B) the requirements of the Americans with Disabilities Act 
     of 1990;
       (C) the costs associated with asbestos removal, energy 
     conservation, and technology upgrading; and
       (D) overcrowding conditions as evidenced by the use of 
     trailers and portable buildings and the potential for future 
     overcrowding because of increased enrollment;
       (5) the facility needs of the local educational agency 
     resulting from the acquisition or construction of military 
     family housing under subchapter IV of chapter 169 of title 
     10, United Sates Code, and other actions of the Federal 
     Government that cause an adverse impact on the facility needs 
     of the local educational agency; and
       (6) the age of the facility to be modernized regardless of 
     whether the facility was originally constructed with funds 
     authorized under Public Law 81-815.
       (b) Grant Amount.--In determining the amount of a grant the 
     Secretary shall--
       (1) consider the relative costs of the modernization;
       (2) determine the cost of a project based on the local 
     prevailing cost of the project;
       (3) require that the Federal share of the cost of the 
     project shall not exceed 50 percent of the total cost of the 
     project;
       (4) not provide a grant in an amount greater than 
     $3,000,000 over any 5-year period; and
       (5) take into consideration the amount of cash available to 
     the local educational agency.
       (c) Administration of Grants.--In awarding grants under 
     this section the Secretary shall--
       (1) establish by regulation the date by which all 
     applications are to be received;
       (2) consider in-kind contributions when calculating the 50 
     percent matching funds requirement described in subsection 
     (b)(3); and
       (3) subject all applications to a review process.
       (d) Section 8007 Funding.--In awarding grants under this 
     section, the Secretary shall not take into consideration any 
     funds received under section 8007 of the Elementary and 
     Secondary Education Act of 1965.

     SEC. 7. APPLICATIONS REQUIRED.

       (a) In General.--Each local educational agency desiring a 
     grant under this Act shall submit an application to the 
     Secretary.
       (b) Contents.--Each application shall contain--
       (1) a listing of the school facilities to be modernized, 
     including the number and percentage of children determined 
     under section 8003(a)(1) of the Elementary and Secondary 
     Education Act of 1965 in average daily attendance in each 
     facility;
       (2) a description of the ownership of the property on which 
     the current facility is located or on which the planned 
     facility will be located;
       (3) a description of each architectural, civil, structural, 
     mechanical, or electrical deficiency to be corrected with 
     funds provided under this Act, including the priority for the 
     repair of the deficiency;
       (4) a description of any facility deficiency that poses a 
     health or safety hazard to the occupants of the facility and 
     a description of how that deficiency will be repaired;
       (5) a description of the criteria used by the local 
     educational agency to determine the type of corrective action 
     necessary to meet the purposes of this Act;
       (6) a description of the modernization to be supported with 
     funds provided under this Act;
       (7) a cost estimate of the proposed modernization;
       (8) an identification of other resources (such as unused 
     bonding capacity), if applicable, that are available to carry 
     out the modernization, and an assurance that such resources 
     will be used for the modernization;
       (9) a description of how activities assisted with funds 
     provided under this Act will promote energy conservation; and
       (10) such other information and assurances as the Secretary 
     may reasonably require.
       (c) Continuing consideration.--A local educational agency 
     that applies for assistance under this Act (other than 
     section 8) for any fiscal year and does not receive the 
     assistance shall have the application for the assistance 
     considered for the following 5 fiscal years.

     SEC. 8. EMERGENCY GRANTS.

       (a) Waiver of Matching Requirement.--From the amount made 
     available under section 4(a)(3) the Secretary shall award 
     grants to any local educational agency for which the number 
     of children determined under section 8003(a)(1)(C) 
     constituted at least 50 percent of the number of children who 
     were in average daily attendance in the schools of such 
     agency during the school year preceding the school year for 
     which the determination is made, if the Secretary determines 
     a facility emergency exists that poses a health or safety 
     hazard to the students and school personnel assigned to the 
     facility.
       (b) Certification of Emergency.--In addition to meeting the 
     requirements of section 7, a local educational agency 
     desiring funds under this section shall include in the 
     application submitted under section 7 a signed statement from 
     a State official certifying that a health or safety 
     deficiency exists.
       (c) Grant Amount; Prioritization Rules; Continuing 
     Consideration.--
       (1) Grant amount.--In determining the amount of grant 
     awards under this section, the Secretary shall make every 
     effort to fully meet the facility needs of the local 
     educational agencies applying for funds under this section.
       (2) Prioritization rule.--If the Secretary receives more 
     than 1 application under this section for any fiscal year, 
     the Secretary shall prioritize the applications based on when 
     an application was received and the severity of the emergency 
     as determined by the Secretary.
       (3) Continuing consideration.--A local educational agency 
     that applies for assistance under this section for any fiscal 
     year and does not receive the assistance shall have the 
     application for the assistance considered for the following 
     fiscal year, subject to the prioritization requirement 
     described in paragraph (2).

     SEC. 9. REQUIREMENTS.

       (a) Maintenance of Effort.--A local educational agency may 
     receive a grant under this Act for any fiscal year only if 
     the Secretary finds that either the combined fiscal

[[Page 7669]]

     effort per student or the aggregate expenditures of that 
     agency and the State with respect to the provision of free 
     public education by such local educational agency for the 
     preceding fiscal year was not less than 90 percent of such 
     combined fiscal effort or aggregate expenditures for the 
     fiscal year for which the determination is made.
       (b) Supplement Not Supplant.--An eligible local educational 
     agency shall use funds received under this subsection only to 
     supplement the amount of funds that would, in the absence of 
     such Federal funds, be made available from non-Federal 
     sources for the modernization of school facilities used for 
     educational purposes, and not to supplant such funds.

     SEC. 10. GENERAL LIMITATIONS.

       (a) Real Property.--No part of any grant funds awarded 
     under this Act shall be used for the acquisition of any 
     interest in real property.
       (b) Maintenance.--Nothing in this Act shall be construed to 
     authorize the payment of maintenance costs in connection with 
     any facilities modernized in whole or in part with Federal 
     funds provided under this Act.
       (c) Environmental Safeguards.--All projects carried out 
     with Federal funds provided under this Act shall comply with 
     all relevant Federal, State, and local environmental laws and 
     regulations.
       (d) Athletic and Similar Facilities.--No funds received 
     under this Act shall be used for outdoor stadiums or other 
     facilities that are primarily used for athletic contests or 
     exhibitions, or other events, for which admission is charged 
     to the general public.
                                  ____

                                                 Northern Nebraska


                                   Native American Consortium,

                                     Niobrara, NE, March 29, 1999.
     Hon Chuck Hagel,
     U.S. Senator, Russell Office Building, Washington, DC.
       Dear Senator Hagel: The member schools of the Northern 
     Nebraska Native American Consortium have gone on record in 
     support of National Association of Federally Impacted Schools 
     (NAFIS) construction funding in the ESEA reauthorization 
     proposals. We would be receptive to any federal options for 
     funding the viable construction needs of the Native American 
     students being served by member schools.
       These Nebraska schools currently educate 98% if all Indian 
     students living on reservation land. The NAC schools 
     currently have significant construction needs ranging from 
     meeting ADA requirements to updating firm alarm systems. 
     Several Nebraska school districts are, or have, passed bond 
     issues for construction of new schools or modernizing old 
     ones. Our school districts only option is Impact Aid or other 
     federally connected funding for construction purposes. The 
     State of Nebraska statutorily exclude state aid as a 
     construction funding mechanism, such aid can only be used for 
     general fund purposes.
       Please consider the importance of meeting federal treaty 
     obligations. Such treaties mandate the education of the 
     Native American students on reservation land. If state and 
     federal education standards are to be met, a positive 
     learning environment must be met. We thank you for your 
     attention to this matter.
           Kindest Regards,
     Florence Parker,
       Board President, Omaha Nations Public School.
     Marcia Ross,
       Board Member, Walthill Public School.
     C. Todd Chessmore,
       Supt., Omaha Nations Public School.
     Dr. Tony Garcia,
       Supt., Walthill Public School.
     Marlene White,
       Board President, Santee Community School.
     Terry Medina,
       Board President, Winnebago Public School.
     Charles D. Squier,
       Supt., Santee Community School.
     Dr. Virgil Likness,
       Supt., Winnebago Public School.
                                 ______
                                 
      By Mr. COVERDELL:
  S. 898. A bill to amend the Internal Revenue Code of 1986 to provide 
taxpayers with greater notice of any unlawful inspection or disclosure 
of their return or return information; to the Committee on Finance.


          taxpayer privacy protection improvement act of 1999

  Mr. COVERDELL. Mr. President, I rise today to report on the 
implementation of the Taxpayer Browsing Protection Act of 1997. Two 
years ago, the Congress passed and the President signed into law, 
legislation I proposed with Senator John Glenn that sought to end the 
egregious protection of unauthorized inspections of taxpayer files. 
Something I prefer to call ``file snooping.''
  I am pleased to report that, according to a GAO report my office is 
releasing today, it appears that the Taxpayer Browsing Protection Act 
is working. But, we still have work to do. The report demonstrates that 
file snooping still occurs, but the incidents have become fewer. I 
believe this is good news for taxpayers.
  At the same time, as I stated previously, our work is not done. The 
GAO found that sixteen confirmed cases of file snooping occurred since 
the enactment of the Taxpayer Browsing Protection Act, each of which 
had been appropriately referred for prosecution. Unfortunately, 15 
cases were declined for prosecution meaning there was only one case in 
which taxpayers were notified that their privacy had been violated. In 
those 15 cases, the affected taxpayers were not assured the opportunity 
to seek the civil recourse available under the law.
  I believe we have a duty to correct this loophole. Taxpayers not only 
have a right to know their privacy, entrusted by them to the Federal 
Government, has been violated, that we let them down, but that the 
opportunity to seek the relief provided under the law is ensured.
  Legislation I introduce today, the Taxpayer Privacy Protection 
Improvement Act of 1999, will ensure taxpayers' right to know. In 
short, it triggers the notification of taxpayers that their files have 
been snooped to the point where a case is referred for prosecution 
following the conclusion of a thorough internal investigation.
  This proposal builds on our previous progress, and I encourage my 
colleagues to join me in this effort.
                                 ______
                                 

 By Mr. HATCH (for himself, Mr. Thurmond, Mr. Specter, Mr. DeWine, Mr. 
          Ashcroft, Mr. Abraham, Mr. Sessions, and Mr. Grams):

  S. 899. A bill to reduce crime and protect the public in the 21st 
Century by strengthening Federal assistance to State and local law 
enforcement, combating illegal drugs and preventing drug use, attacking 
the criminal use of guns, promoting accountability and rehabilitation 
of juvenile criminals, protecting the rights of victims in the criminal 
justice system, and improving criminal justice rules and procedures, 
and for other purposes; to the Committee on the Judiciary.


                    twenty-first Century Justice Act

  Mr. HATCH. Mr. President, today I am proud to introduce the Twenty-
first Century Justice Act. Last month, when I announced this 
initiative, along with my colleagues Senator Thurmond, Senator DeWine, 
Senator Ashcroft, Senator Sessions, Senator Abraham, and Senator Grams, 
I noted that despite some modest gains in the fight against crime, 
violent crime still touched far too many Americans. Sadly, this has 
been borne out in the weeks since.
  As the recent tragedies in Littleton, CO, and in my own hometown of 
Salt Lake City, UT, remind us, crime in America is still too prevalent 
and violent. The tragic cost imposed on law-abiding citizens requires 
reasoned and thoughtful action to deter these heinous crimes. We must 
come together as a society to address this problem.
  Furthermore, we should recognize that there is little the Federal 
Government could have done directly to have prevented the tragedies in 
Littleton and elsewhere. There are, however, important steps we can 
take to address this issue. Our crime bill takes such steps.
  Now, let me describe for my colleagues how this bill, which is a 
balanced, comprehensive, and focused plan to fight crime, will expand 
current successful law enforcement practices. It is based on what we 
know reduces crime. Be it increased methamphetamine abuse in Utah and 
other Western states, further increases in juvenile crime, or the 
threat of international crime, we know that our plan will make a 
significant difference.
  Our plan maintains and strengthens the current federal assistance to 
States that has proven invaluable in reducing crime nationally, and it 
adds new initiatives that will further reduce crime at the federal, 
state, and local levels. I

[[Page 7670]]

am proud of our plan, and I look forward to working with the 
administration and my Senate colleagues to enact it.
  America witnessed an unprecedented growth in crime during the 20th 
century. Our plan ensures that we will become the 21st century with 
decreasing crime rates. Our plan contains four central elements:
  First, it continues and improves Federal assistance to State and 
local law enforcement. Second, it reinvigorates our commitment to 
winning the war on drugs. Third, it emphasizes holding violent 
offenders accountable by vigorously prosecuting gun crimes. And fourth, 
it includes needed judicial and criminal procedure reforms and 
protections for the rights of crime victims.
  Notwithstanding the leadership we have seen here in Congress and by 
many of our nation's governors, crime in America is still unacceptably 
high by historical standards. For example, for 1997--the most recent 
year for which national crime rate statistics are available--the murder 
rate was 33 percent higher than it was in 1960, and the rape rate was 
413 percent higher than in 1960. In 1997, the aggravated assault rate 
was 526 percent higher than it was in 1960. Even with the modest 
declines in recent years, America still has more violent crime than any 
industrialized nation in the world. The first obligation of government 
is to protect its citizens from crime. Obviously, despite the recent 
declines, we have a long way to go in reducing crime in America.
  Despite the recent progress--much of it in partnership with Governors 
like Mike Leavitt of Utah, George Allen and Jim Gilmore of Virginia, 
and George W. Bush of Texas--we cannot become complacent. The most 
troubling aspect of the Clinton Justice Department's budget is its 
elimination of block grants that have proven so successful in helping 
state and local authorities reduce crime. We simply cannot become 
indifferent. Remember the war on drugs? During the Reagan and Bush 
administrations, our nation began a national, long-term commitment to 
fight drug abuse. Due to these efforts, drug use began to decline. 
However, drug use, especially among teenagers, has exploded since 1992. 
Unless we remain vigilant, the same will happen with violent crime.
  Permit me to review each of the four main parts to our legislative 
crime plan in greater detail.


  Continuing and Improving Federal Assistance to State and Local Law 
                              Enforcement

  Combined with our ongoing commitment to prevention and treatment, our 
bill extends the authorization for the highly successful partnership we 
have created with local law enforcement--the Local Law Enforcement 
Block Grant Program, which the Republican Congress created in the 
Contract with America. Since fiscal year 1996, this program has 
provided more than $2 billion in funding for equipment and technology, 
such as radios and scanners, directly to state and local law 
enforcement. The authorization for this program will be between $600-
700 million per year. Although the block grant has been extremely 
effective in assisting state and local law enforcement, the Clinton 
administration budget eliminates funding for this program.
  Our bill also reauthorizes the truth-in-sentencing prison grants at 
approximately $700 million per year. These truth-in-sentencing grants, 
which provide funds to States to build prisons, have been instrumental 
in lowering crime by encouraging States to incarcerate violent and 
repeat offenders for at least 85 percent of their sentence. In January, 
the Justice Department reported that 70 percent of prison admissions in 
1997 were in States requiring criminals to serve at least 85 percent of 
their sentence. More significantly, the average time served by violent 
criminals nationally has increased 12.2 percent since 1993. Perhaps the 
biggest reason for recent declines in violent crime is due to these 
truth-in-sentencing prison grants. Simply put, violent criminals cannot 
commit crimes against innocent victims while in prison. Our bill 
continues this successful program and makes the program more flexible 
by allowing States to use the funds for jails and juvenile facilities, 
in addition to prison construction.
  Despite this success, the Clinton administration eliminates funding 
for the Truth-in-Sentencing program--even though many States have 
changed their laws due to this federal commitment to assist in prison 
construction. Nothing deters and prevents violent crime as well as 
incarcerating violent and repeat offenders.
  Our bill also includes the Juvenile Accountability Incentive Block 
Grant to help States build juvenile detention centers, drug test 
juvenile offenders, establish graduated sentencing sanctions for repeat 
juvenile offenders, and improve juvenile record keeping. This provision 
authorizes $450 million for the Juvenile Accountability Incentive Block 
Grant. It also includes $435 million for prevention programs and 
reauthorizes the Office of Juvenile Justice and Delinquency Prevention 
within the Justice Department. The administration's budget eliminates 
funding for the Juvenile Accountability Incentive Block Grant, even 
though these are the only federal funds dedicated to juvenile law 
enforcement purposes.
  Finally, our bill reauthorizes and reforms the COPS program re-
targeting this assistance to the type of policing we know works--zero 
tolerance for crime, computer tracking of criminal hot spots, and 
holding commanders responsible for results.


                A Commitment to Winning the War on Drugs

  The second major part of this legislative addresses drugs. This 
section focuses attention where only the federal government has the 
ability to make a difference--drug interdiction. It also increases the 
penalties for methamphetamine and powder cocaine trafficking. Our bill 
encourages States to keep prisons and jails drug-free to break the link 
between drugs and crime--and provides bonus grants to help States do 
this. And our bill includes a faith-based drug treatment bill designed 
by Senator Abraham. I would especially like to thank and acknowledge 
the leadership that Senators Ashcroft and DeWine have shown in fighting 
drugs, particularly methamphetamine. Their leadership has been 
invaluable on this issue.


  Holding Violent Offenders Accountable Through Firearms Prosecutions

  I do not support gun control, but I do believe in crime control. In 
addition to remaining true to truth-in-sentencing and prison 
construction, our bill builds on and expands a successful Richmond, 
Virginia program in which the U.S. Attorney's office prosecutes as many 
local gun-related crimes in federal court as possible to take advantage 
of federal mandatory minimum sentences and stiff bond rules. This 
provision does not create additional federal crimes, but instead 
utilizes existing federal statues. This program builds on the Project 
Triggerlock program which was implemented by the Bush administration.
  This program emphasizes cooperation between state and federal 
prosecutors, as well as the BATF and the local police departments. The 
last major component of this program is an extensive media campaign to 
promote the message to potential criminals that ``[a]n illegal gun will 
get you five years in federal prison.'' The media campaign also 
encourages citizens to report gun crimes to authorities. This program 
has been a huge success. Homicides have decreased 50 percent in 
Richmond after this program was implemented. Our bill provides funds to 
implement this program in major cities across the nation.
  Again, the Clinton administration's record on gun prosecutions is 
troubling. Between 1992 and 1997, Triggerlock gun prosecutions dropped 
nearly 50 percent, from 7,045 to 3,765. These are prosecutions of 
defendants who use a firearm in the commission of a felony.


            Judicial-Procedural Reforms and Victims' Rights

  The last major element of our crime plan enacts procedural and 
judicial reforms that improve the administration of justice. Our bill 
reforms the Miranda rule to allow voluntary statements in evidence. It 
codifies common-sense procedural issues, including the ``good-faith'' 
exception to exclusionary rule,

[[Page 7671]]

and further reforms habeas corpus appeals.
  Our bill also recognizes that the administration of justice requires 
government to safeguard the interests of victims. How can there be 
justice if crime victims feel victimized by the criminal justice 
system? The bill ensures that victims are given respect in the criminal 
system, ensuring their right to attend trials in federal court, to be 
heard at critical stages such as detention hearings, and to be notified 
when the defendant is released or escapes. Our bill also calls for 
ratification of a crime victim's rights constitutional amendment to 
ensure that these rights are recognized everywhere in America. Our bill 
also steers necessary funds toward combating violence against women and 
children, and strengthens federal mandatory restitution laws.
  This bill is not a panacea for our crime problem. We are faced, I 
believe, with a problem which cannot be solved alone by new laws. It 
is, at its core, a moral problem. Somehow, in too many instances, we 
have failed as a society to pass to the next generation the moral 
compass that differentiates right from wrong. This problem cannot be 
solved by legislation alone. It cannot be restored by the enactment of 
a new law or the implementation of a new program But it can be achieved 
by families and communities working together to teach accountability by 
example and by early intervention when the signs point to violent and 
antisocial behavior.
  Our bill is a step in the right direction. I urge my colleagues to 
support this important crime fighting legislation, which will 
strengthen our nation's ability to protect citizens from the scourge of 
violent crime.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 901. A bill to provide disadvantaged children with access to 
dental services; to the Committee on Health, Education, Labor, and 
Pensions.


            CHILDREN'S DENTAL HEALTH IMPROVEMENT ACT OF 1999

  Mr. BINGAMAN. Mr. President, I rise today to introduce a measure that 
is one cornerstone of a series of initiatives that are designed to help 
ensure that the fundamental needs of children in New Mexico and this 
country are met. This cornerstone, the Children's Dental Health 
Improvement Act of 1999, is built on the belief that children must have 
access to quality, affordable health care. A child who is sick cannot 
go to school, cannot be expected to learn, and cannot be expected to 
grow and thrive. For New Mexico, this is a particularly compelling need 
because according to the Children's Defense Fund, no state has a 
greater percentage of uninsured children than New Mexico. Specifically, 
the bill is designed to increase access to dental services for our 
children.
  Some will say: ``Why care about a few cavities in kids?'' In reality, 
this is a complex children's health issue. Chronically poor oral health 
is associated with growth and development problems in toddlers and 
compromises children's nutritional status. These children suffer great 
pain and cannot play or learn. It is estimated that lack of treatment 
for these children results in missed school days: an estimated 52 
million school hours annually. Their personal suffering is real. In 
reality, untreated dental problems get progressively worse and 
ultimately require more expensive interventions.
  Medicaid's Early and Periodic Screening Diagnosis and Treatment, or 
``EPSDT,'' program requires states to not only pay for a comprehensive 
set of child health services, including dental services, but to assure 
delivery of those services. Unfortunately, low income children do not 
get the dental service they need. Despite the design of the Medicaid 
program to reach children and ensure access to routine dental care, the 
Inspector General of the Department of Health and Human Services 
reported in 1996 that only 18 percent of children eligible for Medicaid 
received even a single preventive dental service. The same report shows 
that no state provides preventive services to more than 50% of eligible 
children. Dentist participation is too low to assure access. We are 
falling short of our obligation to these children.
  In the past few months, I have had the opportunity to speak to many 
of New Mexico's rural health care providers and have learned that for 
New Mexico, the problem is of crisis proportions. Less than two percent 
of New Mexico's Medicaid dollars are used for children's oral health 
needs. My state alone projects a shortage of 157 dentists and 229 
dental hygienists. Children in New Mexico and elsewhere are showing up 
in emergency rooms for treatment of tooth abscesses instead of getting 
their cavities filled early on or having dental decay prevented in the 
first place.
  Tooth decay remains the single most common chronic disease of 
childhood and according to the Children's Dental Health Project, it 
affects more than half of all children by second grade. Tooth decay in 
children six years old is five to eight times more common than asthma 
which is often cited as the most common chronic disease of childhood.
  National data confirm that pediatric oral health in the U.S. is 
backsliding. Healthy People 2000 goals for dental needs of children 
will not be met. As this chart shows:
  52% of our 6 to 8 year olds have dental caries or cavities compared 
to 54% in 1986. Our goal was to decrease this to 35% by the year 2000; 
we have succeeded in a mere 2% change in this area.
  Additionally, we have slid backwards in some areas. The Healthy 
People 2000 oral health indicators show an increase in the percentage 
of children with untreated cavities. In 1986, 28% of our 6 to 8 year 
olds had untreated cavities compared to now when we find 31% of these 
children have untreated cavities.
  Tooth decay is increasingly a disease of low and modest income 
children. A substantial portion of decay in young children goes 
untreated. In fact, forty seven per cent of decay in children aged 2 
through 9, is untreated.
  The Children's Dental Health Improvement Act of 1999 is designed to 
attack the problem from many fronts. First, the bill addresses the 
issue of provider shortage by expanding opportunities for training 
pediatric dental health care providers. It allows for the Secretary to 
look at the reimbursement rates for dental providers as an incentive 
for dentists to participate in the Medicaid program so that we work 
toward increasing the actual care provided under the Medicaid program. 
Additionally, I have looked at the need for pediatric dental research 
to facilitate better approaches for care and it will put into place 
greater measures for surveillance of the problem. The bill would lead 
to increased accountability in the area of actual treatment once a 
problem is identified. Finally, I have included a section on health 
promotion and disease prevention to increase the number of children who 
have access to fluoridated water systems and dental sealants to prevent 
cavities.
  I recognize that this is an ambitious bill and that the issue of 
access to dental care for children covered by the Medicaid program is a 
complex one. I want to thank the various groups that have worked on the 
formulation of this legislation. In particular, I want to thank Drs. 
Burt Edelstein and Heber Simmons of the American Academy of Pediatric 
Dentistry for their hard work and excellent information. I also want to 
thank the American Association of Dental Schools, the American Dental 
Hygienist Association, the American Dental Association, the Hispanic 
Dental Association, the National Dental Association, and the American 
Association for Dental Research for their valuable input and I look 
forward to working with them all to ensure that we achieve increased 
access to oral health care for our children.
  I am committed to solving the problem of adequate access to dental 
care for our children and view this as a public health issue that has 
gone unnoticed for too long. I will welcome my colleagues to work with 
me to ensure that these children have healthy smiles instead of chronic 
pain from untreated problems.
  Mr. President, I ask unanimous consent to have the text of the 
Children's Dental Health Improvement Act of 1999 printed in the Record.

[[Page 7672]]

  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 901

       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 ``Children's 
     Dental Health Improvement Act of 1999''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

 TITLE I--EXPANDED OPPORTUNITIES FOR TRAINING PEDIATRIC DENTAL HEALTH 
                             CARE PROVIDERS

Sec. 101. Children's dental health training and demonstration programs.
Sec. 102. Increase in National Health Service Corps dental training 
              positions.
Sec. 103. Maternal and child health centers for leadership in pediatric 
              dentistry education.
Sec. 104. Dental officer multiyear retention bonus for the Indian 
              Health Service.
Sec. 105. Medicare payments to approved nonhospital dentistry residency 
              training programs; permanent dental exemption from 
              voluntary residency reduction programs.
Sec. 106. Dental health professional shortage areas.

  TITLE II--ENSURING DELIVERY OF PEDIATRIC DENTAL SERVICES UNDER THE 
                      MEDICAID AND SCHIP PROGRAMS

Sec. 201. Increased FMAP and fee schedule for dental services provided 
              to children under the medicaid program.
Sec. 202. Required minimum medicaid expenditures for dental health 
              services.
Sec. 203. Requirement to verify sufficient numbers of participating 
              dental health professionals under the medicaid program.
Sec. 204. Inclusion of recommended age for first dental visit in 
              definition of EPSDT services.
Sec. 205. Approval of final regulations implementing changes to EPSDT 
              services.
Sec. 206. Use of SCHIP funds to treat children with special dental 
              health needs.
Sec. 207. Grants to supplement fees for the treatment of children with 
              special dental health needs.
Sec. 208. Demonstration projects to increase access to pediatric dental 
              services in underserved areas.

                  TITLE III--PEDIATRIC DENTAL RESEARCH

Sec. 301. Identification of interventions that reduce the burden and 
              transmission of oral, dental, and craniofacial diseases 
              in high risk populations; development of approaches for 
              pediatric oral and craniofacial assessment.
Sec. 302. Agency for Health Care Policy and Research.
Sec. 303. Oral health professional research and training program.
Sec. 304. Consensus development conference.

               TITLE IV--SURVEILLANCE AND ACCOUNTABILITY

Sec. 401. CDC reports.
Sec. 402. Reporting requirements under the medicaid program.
Sec. 403. Administration on Children, Youth, and Families.
Sec. 404. Special supplemental food program for women, infants, and 
              children.

         TITLE V--ORAL HEALTH PROMOTION AND DISEASE PREVENTION

Sec. 501. Grants to increase resources for community water 
              fluoridation.
Sec. 502. Community water fluoridation.
Sec. 503. Community-based dental sealant program.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Effective date.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The 1995 Institute of Medicine report on dental 
     education finds that oral health is an integral part of total 
     health, and is integral to comprehensive health, including 
     primary care.
       (2) Tooth decay is the most prevalent preventable chronic 
     disease of childhood and only the common cold, the flu, and 
     otitis media occur more often among young children.
       (3) Despite the design of the medicaid program to reach 
     children and ensure access to routine dental care, in 1996, 
     the Inspector General of the Department of Health and Human 
     Services reported that only 18 percent of children eligible 
     for medicaid received even a single preventive dental 
     service.
       (4) The United States is facing a major dental health care 
     crisis that primarily affects the poor children of our 
     country, with 80 percent of all dental caries in children 
     found in the 20 percent of the population.
       (5) Low income children eligible for the medicaid program 
     and the State children's health insurance program experience 
     disproportionately high levels of oral disease.
       (6) The United States is not training enough pediatric 
     dental health care providers to meet the increasing need for 
     dental services for children.
       (7) The United States needs to increase access to health 
     promotion and disease prevention activities in the area of 
     oral health for children by increasing access to dental 
     health providers for children.
 TITLE I--EXPANDED OPPORTUNITIES FOR TRAINING PEDIATRIC DENTAL HEALTH 
                             CARE PROVIDERS

     SEC. 101. CHILDREN'S DENTAL HEALTH TRAINING AND DEMONSTRATION 
                   PROGRAMS.

       (a) In General.--Subpart 2 of part E of title VII of the 
     Public Health Service Act, as amended by the Health 
     Professions Education Partnerships Act of 1998 (Public Law 
     105-392) is amended by adding at the end the following:

     ``SEC. 771. CHILDREN'S DENTAL HEALTH PROGRAMS.

       ``(a) Training Program.--
       ``(1) In general.--The Secretary, acting through the Bureau 
     of Health Professions, shall develop training materials to be 
     used by health professionals to promote oral health through 
     health education.
       ``(2) Design.--The materials developed under paragraph (1) 
     shall be designed to enable health care professionals to--
       ``(A) provide information to individuals concerning the 
     importance of oral health;
       ``(B) recognize oral disease in individuals; and
       ``(C) make appropriate referrals of individuals for dental 
     treatment.
       ``(3) Distribution.--The materials developed under 
     paragraph (1) shall be distributed to--
       ``(A) accredited schools of the health sciences (including 
     schools for physician assistants, schools of medicine, 
     osteopathic medicine, dental hygiene, public health, nursing, 
     pharmacy, and dentistry), and public or private institutions 
     accredited for the provision of graduate or specialized 
     training programs in all aspects of health; and
       ``(B) health professionals and community-based health care 
     workers.
       ``(b) Demonstration Program.--
       ``(1) In general.--The Secretary shall make grants to 
     schools that train pediatric dental health providers to meet 
     the costs of projects--
       ``(A) to plan and develop new training programs and to 
     maintain or improve existing training programs in providing 
     dental health services to children; and
       ``(B) to assist dental health providers in managing complex 
     dental problems in children.
       ``(2) Administration.--
       ``(A) Amount.--The amount of any grant under paragraph (1) 
     shall be determined by the Secretary.
       ``(B) Application.--No grant may be made under paragraph 
     (1) unless an application therefore is submitted to and 
     approved by the Secretary. Such an application shall be in 
     such form, submitted in such manner, and contain such 
     information, as the Secretary shall by regulation prescribe.
       ``(C) Eligibility.--To be eligible for a grant under 
     subsection (a), the applicant must demonstrate to the 
     Secretary that it has or will have available full-time 
     faculty and staff members with training and experience in the 
     field of pediatric dentistry and support from other faculty 
     and staff members trained in pediatric dentistry and other 
     relevant specialties and disciplines such as dental public 
     health and pediatrics, as well as research.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.''.
       (b) Authorization of Appropriations for General and 
     Pediatric Dentistry.--Section 747(e)(2)(A) of the Public 
     Health Service Act (42 U.S.C. 293k(e)(2)(A), as amended by 
     the Health Professions Education Partnerships Act of 1998 
     (Public Law 105-392) is amended in striking clause (iv) and 
     inserting the following:
       ``(iv) not less than $8,000,000 for awards of grants and 
     contracts under subsection (a) to programs of pediatric or 
     general dentistry.''.

     SEC. 102. INCREASE IN NATIONAL HEALTH SERVICE CORPS DENTAL 
                   TRAINING POSITIONS.

       (a) In General.--The Secretary of Health and Human Services 
     (referred to in this section as the ``Secretary'') shall 
     increase the number of dental health providers skilled in 
     treating children who become members of the Commissioned 
     Corps of the U.S. Health Service and who are assigned to duty 
     for the National Health Service Corps (referred to in this 
     section as the ``Corps'') under subpart II of part D of title 
     III of the Public Health Service Act (42 U.S.C. 254d et seq.) 
     so that there are at least 100 additional Commissioned Corps 
     dentists and dental hygienists in the Corps by 2001, at least 
     150 additional dentists and dental hygienists in the 
     Commissioned Corps by 2002, and at least 300 additional 
     dentists and dental hygienists in the Commissioner Corps by 
     2003.
       (b) Determination of Dental Site Readiness.--By not later 
     than January 1, 2001, the

[[Page 7673]]

     Secretary shall collaborate with dental education 
     institutions, State and local public health dental officials 
     and dental hygienist societies to determine dental site 
     readiness, specifically in inner city, rural, frontier and 
     border areas.
       (c) Report by Corps.--The Corps shall annually report to 
     Congress concerning how the Corps is meeting the oral health 
     needs of children in underserved areas, including rural, 
     frontier and border areas.
       (d) Loan Repayment Program.--The Secretary shall increase 
     the number of Corps dentists selected for loan repayments 
     under the provisions referred to in subsection (a) in a 
     sufficient number to address the demand for such repayment by 
     qualified dentists. The Secretary shall increase the number 
     of private practice dentists who contract with the Corps and 
     allow for such student loan repayment.
       (e) Pediatric Dentists.--The Secretary shall ensure that at 
     least 20 percent of the dentists in the Corps are pediatric 
     dentists and that another 20 percent of the dentists in the 
     Corps have general dentistry residency training.

     SEC. 103. MATERNAL AND CHILD HEALTH CENTERS FOR LEADERSHIP IN 
                   PEDIATRIC DENTISTRY EDUCATION.

       (a) Expansion of Training Programs.--The Secretary of 
     Health and Human Services shall, through the Bureau of Health 
     Professions, establish at least 10 Pediatric Dental Centers 
     of Excellence with not less than 36 additional training 
     positions annually for pediatric dentists at such centers of 
     excellence. The Secretary shall ensure that such training 
     programs are established in geographically diverse areas.
       (b) Definition.--In this section, the term `centers of 
     excellence' means a health professions school designated 
     under section 736 of the Public Health Service Act (42 U.S.C. 
     293).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated, such sums as may be necessary to carry 
     out this section.

     SEC. 104. DENTAL OFFICER MULTIYEAR RETENTION BONUS FOR THE 
                   INDIAN HEALTH SERVICE.

       (a) Terms and Definitions.--In this section:
       (1) Dental officer.--The term ``dental officer'' means an 
     officer of the Indian Health Service designated as a dental 
     officer.
       (2) Director.--The term ``Director'' means the Director of 
     the Indian Health Service.
       (3) Creditable service.--The term ``creditable service'' 
     includes all periods that a dental officer spent in graduate 
     dental educational (GDE) training programs while not on 
     active duty in the Indian Health Service and all periods of 
     active duty in the Indian Health Service as a dental officer.
       (4) Residency.--The term ``residency'' means a graduate 
     dental educational (GDE) training program of at least 12 
     months leading to a speciality, including general practice 
     residency (GPR) or a 12-month advanced education general 
     dentistry (AEGD).
       (5) Specialty.--The term ``specialty'' means a dental 
     specialty for which there is an Indian Health Service 
     specialty code number.
       (b) Requirements for Bonus.--
       (1) In general.--An eligible dental officer of the Indian 
     Health Service who executes a written agreement to remain on 
     active duty for 2, 3, or 4 years after the completion of any 
     other active duty service commitment to the Indian Health 
     Service may, upon acceptance of the written agreement by the 
     Director, be authorized to receive a dental officer multiyear 
     retention bonus under this section. The Director may, based 
     on requirements of the Indian Health Service, decline to 
     offer such a retention bonus to any specialty that is 
     otherwise eligible, or to restrict the length of such a 
     retention bonus contract for a specialty to less than 4 
     years.
       (2) Limitations.--Each annual dental officer multiyear 
     retention bonus authorized under this section shall not 
     exceed the following:
       (A) $14,000 for a 4-year written agreement.
       (B) $8,000 for a 3-year written agreement.
       (C) $4,000 for a 2-year written agreement.
       (c) Eligibility.--
       (1) In general.--In order to be eligible to receive a 
     dental officer multiyear retention bonus under this section, 
     a dental officer shall--
       (A) be at or below such grade as the Director shall 
     determine;
       (B) have at least 8 years of creditable service, or have 
     completed any active duty service commitment of the Indian 
     Health Service incurred for dental education and training;
       (C) have completed initial residency training, or be 
     scheduled to complete initial residency training before 
     September 30 of the fiscal year in which the officer enters 
     into a dental officer multiyear retention bonus written 
     service agreement under this section; and
       (D) have a dental specialty in pediatric dentistry or oral 
     and maxillofacial surgery, or be a dental hygienist with a 
     minimum of a baccalaureate degree.
       (2) Extension to other officers.--The Director may extend 
     the retention bonus to dental officers other than officers 
     with a dental specialty in pediatric dentistry based on 
     demonstrated need. The criteria used as the basis for such an 
     extension shall be equitably determined and consistently 
     applied.
       (d) Termination of Entitlement to Special Pay.--The 
     Director may terminate at any time a dental officer's 
     multiyear retention bonus contract under this section. If 
     such a contract is terminated, the unserved portion of the 
     retention bonus contract shall be recouped on a pro rata 
     basis. The Director shall establish regulations that specify 
     the conditions and procedures under which termination may 
     take place. The regulations and conditions for termination 
     shall be included in the written service contract for a 
     dental officer multiyear retention bonus under this section.
       (e) Refunds.--
       (1) In general.--Prorated refunds shall be required for 
     sums paid under a retention bonus contract under this section 
     if a dental officer who has received the retention bonus 
     fails to complete the total period of service specified in 
     the contract, as conditions and circumstances warrant.
       (2) Debt to united states.--An obligation to reimburse the 
     United States imposed under paragraph (1) is a debt owed to 
     the United States.
       (3) No discharge in bankruptcy.--Notwithstanding any other 
     provision of law, a discharge in bankruptcy under title 11, 
     United States Code, that is entered less than 5 years after 
     the termination of a retention bonus contract under this 
     section does not discharge the dental officer who signed such 
     a contract from a debt arising under the contract or 
     paragraph (1).

     SEC. 105. MEDICARE PAYMENTS TO APPROVED NONHOSPITAL DENTISTRY 
                   RESIDENCY TRAINING PROGRAMS; PERMANENT DENTAL 
                   EXEMPTION FROM VOLUNTARY RESIDENCY REDUCTION 
                   PROGRAMS.

       (a) Medicare Payments To Approved Nonhospital Dentistry 
     Training Programs.--Section 1886 of the Social Security Act 
     (42 U.S.C. 1395ww) is amended by adding at the end the 
     following:
       ``(l) Payments For Nonhospital Based Dental Residency 
     Training Programs.--
       ``(1) In general.--Beginning January 1, 2000, the Secretary 
     shall make payments under this paragraph to approved 
     nonhospital based dentistry residency training programs 
     providing oral health care to children for the direct and 
     indirect expenses associated with operating such training 
     programs.
       ``(2) Payment amount.--
       ``(A) Methodology.--The Secretary shall establish 
     procedures for making payments under this subsection.
       ``(B) Total amount of payments.--In making payments to 
     approved non-hospital based dentistry residency training 
     programs under this subsection, the Secretary shall ensure 
     that the total amount of such payments will not result in a 
     reduction of payments that would otherwise be made under 
     subsection (h) or (k) to hospitals for dental residency 
     training programs.
       ``(C) Approved programs.--The Secretary shall establish 
     procedures for the approval of nonhospital based dentistry 
     residency training programs under this subsection.''.
       (b) Permanent Dental Exemption From Voluntary Residency 
     Reduction Programs.--
       (1) In general.--Section 1886(h)(6)(C) of the Social 
     Security Act (42 U.S.C. 1395ww(h)(6)(C)) is amended--
       (A) by redesignating clauses (i) through (iii) as 
     subclauses (I) through (III), respectively, and indenting 
     such subclauses (as so redesignated) appropriately;
       (B) by striking ``For purposes'' and inserting the 
     following:
       ``(i) In general.--Subject to clause (ii), for purposes''; 
     and
       (C) by adding at the end the following:
       ``(ii) Definition of `approved medical residency training 
     program'.--In this subparagraph, the term `approved medical 
     residency training program' means only such programs in 
     allopathic or osteopathic medicine.''.
       (2) Application to demonstration projects and authority.--
     Section 4626(b)(3) of the Balanced Budget Act of 1997 (42 
     U.S.C. 1395ww note) is amended by inserting ``in allopathic 
     or osteopathic medicine'' before the period.
       (c) Removal of Dentists from Full-Time Equivalent Count 
     Averaging Provisions.--
       (1) Medicare ime.--Section 1886(d)(5)(B)(vi) of the Social 
     Security Act (42 U.S.C. 1395ww(d)(5)(B)(vi)) is amended by 
     adding at the end the following: ``The determination (based 
     on the 3-year average) described in subclause (II) shall 
     apply only to residents in the fields of allopathic medicine 
     and osteopathic medicine. All other residents shall be 
     counted based on the actual full-time equivalent resident 
     count for the cost-reporting period involved.''.
       (2) Medicare direct gme.--Section 1886(h)(4)(G)(i) of the 
     Social Security Act (42 U.S.C. 1395ww(h)(4)(G)(i)) is amended 
     by adding at the end the following: ``Such determination 
     (based on the 3-year average) shall apply only to residents 
     in the fields of allopathic medicine and osteopathic 
     medicine. All other residents shall be counted based on the 
     actual full-time equivalent resident count for the cost-
     reporting period involved.''.
       (d) Definition of Primary Care Resident.--Section 
     1886(h)(5)(H) of the Social Security Act (42 U.S.C. 
     1395ww(h)(5)(H)) is amended by striking ``or osteopathic 
     general

[[Page 7674]]

     practice'' and inserting ``osteopathic general practice, 
     general dentistry, advanced general dentistry, pediatric 
     dentistry, or dental public health''.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (a), (c), and (d) take effect 
     on the date of enactment of this Act.
       (2) Exception.--The amendments made by subsection (b) shall 
     take effect as if included in the enactment of the Balanced 
     Budget Act of 1997.

     SEC. 106. DENTAL HEALTH PROFESSIONAL SHORTAGE AREAS.

       (a) Designation.--Section 332(a) of the Public Health 
     Service Act (42 U.S.C. 254e(a)) is amended by adding at the 
     end the following:
       ``(4)(A) In designating health professional shortage areas 
     under this section, the Secretary may designate certain areas 
     as dental health professional shortage areas if the Secretary 
     determines that such areas have a severe shortage of dental 
     health professionals. The Secretary shall develop, publish 
     and periodically update criteria to be used in designating 
     dental health professional shortage areas.
       ``(B) For purposes of this title a dental health 
     professional shortage area shall be considered to be a health 
     professional shortage area.''.
       ``(C) In subparagraph (A), the term `dental health 
     professional' includes general and pediatric dentists and 
     dental hygienists.''.
       (b) Loan Repayment Program.--Section 338B(b)(1)(A) of the 
     Public Health Service Act (42 U.S.C. 254l-1(b)(1)(A)) is 
     amended by inserting ``(including dental hygienists)'' after 
     ``profession''.
       (c) Technical Amendment.--Section 331(a)(2) of the Public 
     Health Service Act (42 U.S.C. 254d(a)(2)) is amended by 
     inserting ``(including dental health services)'' after 
     ``services''.
  TITLE II--ENSURING DELIVERY OF PEDIATRIC DENTAL SERVICES UNDER THE 
                      MEDICAID AND SCHIP PROGRAMS

     SEC. 201. INCREASED FMAP AND FEE SCHEDULE FOR DENTAL SERVICES 
                   PROVIDED TO CHILDREN UNDER THE MEDICAID 
                   PROGRAM.

       (a) Increased FMAP.--Section 1903(a)(5) of the Social 
     Security Act (42 U.S.C. 1396b(a)(5)) is amended--
       (1) by striking ``equal to 90 per centum'' and inserting 
     ``equal to--
       ``(A) 90 per centum'';
       (2) by inserting ``and'' after the semicolon; and
       (3) by adding at the end the following:
       ``(B) the greater of the Federal medical assistance 
     percentage or 75 per centum of the sums expended during such 
     quarter which are attributable to dental services for 
     children;''.
       (b) Fee Schedule.--Section 1902(a) of the Social Security 
     Act (42 U.S.C. 1396a(a)) is amended--
       (1) in paragraph (65), by striking the period and inserting 
     ``; and''; and
       (2) by inserting after paragraph (65) the following:
       ``(66) provide for payment under the State plan for dental 
     services for children at a rate that is designed to create an 
     incentive for providers of such services to treat children in 
     need of dental services (but that does not result in a 
     reduction or other adverse impact on the extent to which the 
     State provides dental services to adults).''.

     SEC. 202. REQUIRED MINIMUM MEDICAID EXPENDITURES FOR DENTAL 
                   HEALTH SERVICES.

       Section 1902(a) of the Social Security Act (42 U.S.C. 
     1396a(a)), as amended by section 201(b), is amended--
       (1) in paragraph (65), by striking ``and'' at the end;
       (2) in paragraph (66), by striking the period and inserting 
     ``; and''; and
       (3) by inserting after paragraph (66) the following:
       ``(67) provide that, beginning with fiscal year 2000--
       ``(A) not less than an amount equal to 7 percent of the 
     total annual expenditures under the State plan for medical 
     assistance provided to children will be expended during each 
     fiscal year for dental services for children (including the 
     prevention, screening, diagnosis, and treatment of dental 
     conditions); and
       ``(B) the State will not reduce or otherwise adversely 
     impact the extent to which the State provides dental services 
     to adults in order to meet the requirement of subparagraph 
     (A).''.

     SEC. 203. REQUIREMENT TO VERIFY SUFFICIENT NUMBERS OF 
                   PARTICIPATING DENTAL HEALTH PROFESSIONALS UNDER 
                   THE MEDICAID PROGRAM.

       Section 1902(a) of the Social Security Act (42 U.S.C. 
     1396a(a)), as amended by section 202, is amended--
       (1) in paragraph (66), by striking ``and'' at the end;
       (2) in paragraph (67), by striking the period and inserting 
     ``; and''; and
       (3) by inserting after paragraph (67) the following:
       ``(68) provide that the State will--
       ``(A) annually verify that the number of dental health 
     professionals (as defined in section 332(a)(4)(C) of the 
     Public Health Service Act) participating under the State 
     plan--
       ``(i) satisfies the minimum established degree of 
     participation of dental health professionals (as defined in 
     section 332(a)(4)(C) of the Public Health Service Act) to the 
     population of children in the State, as determined by the 
     Secretary in accordance with the criteria used by the 
     Secretary under section 332(a)(4) of such Act (42 U.S.C. 
     254e(a)(4)) to designate a dental health professional 
     shortage area; and
       ``(ii) is sufficient to ensure that children enrolled in 
     the State plan have the same level of access to dental 
     services as the children residing in the State who are not 
     eligible for medical assistance under the State plan; and
       ``(B) collect data on the number of children being served 
     by dental health professionals as compared to the number of 
     children eligible to be served, and the actual services 
     provided.''.

     SEC. 204. INCLUSION OF RECOMMENDED AGE FOR FIRST DENTAL VISIT 
                   IN DEFINITION OF EPSDT SERVICES.

       Section 1905(r)(1)(A)(i) of the Social Security Act (42 
     U.S.C. 1396d(r)(1)(A)(i)) is amended by inserting ``and, with 
     respect to dental services under paragraph (3), in accordance 
     with guidelines for the age of a first dental visit that are 
     consistent with guidelines of the American Dental 
     Association, the American Dental Hygienist Association, the 
     American Academy of Pediatric Dentistry, and the Bright 
     Futures program of the Health Resources and Services 
     Administration of the Department of Health and Human 
     Services,'' after ``vaccines,''.

     SEC. 205. APPROVAL OF FINAL REGULATIONS IMPLEMENTING CHANGES 
                   TO EPSDT SERVICES.

       Not later than 30 days after the date of enactment of this 
     Act, the Secretary of Health and Human Services shall issue 
     final regulations implementing the proposed regulations based 
     on section 6403 of the Omnibus Budget Reconciliation Act of 
     1989 (Public Law 101-239; 103 Stat. 2262) that were contained 
     in the Federal Register issued for October 1, 1993.

     SEC. 206. USE OF SCHIP FUNDS TO TREAT CHILDREN WITH SPECIAL 
                   DENTAL HEALTH NEEDS.

       (a) In General.--Section 1905 of the Social Security Act 
     (42 U.S.C. 1396d) is amended--
       (1) in subsection (b), by striking ``or subsection (u)(3)'' 
     and inserting ``subsection (u)(3), or subsection (u)(4)''; 
     and
       (2) in subsection (u)--
       (A) by redesignating paragraph (4) as paragraph (5); and
       (B) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4)(A) For purposes of subsection (b), the expenditures 
     described in this paragraph are expenditures for medical 
     assistance described in subparagraph (B) for a low-income 
     child described in subparagraph (C), but only in the case of 
     such a child who resides in a State described in subparagraph 
     (D).
       ``(B) For purposes of subparagraph (A), the medical 
     assistance described in this subparagraph consists of the 
     following:
       ``(i) Dental services provided to children with special 
     oral health needs, including advanced oral, dental, and 
     craniofacial diseases and conditions.
       ``(ii) Outreach conducted to identify and treat children 
     with such special dental health needs.
       ``(C) For purposes of subparagraph (A), a low-income child 
     described in this subparagraph is a child whose family income 
     does not exceed 50 percentage points above the medicaid 
     applicable income level (as defined in section 2110(b)(4)).
       ``(D) A State described in this subparagraph is a State 
     that, as of August 5, 1997, has under a waiver authorized by 
     the Secretary or under section 1902(r)(2), established a 
     medicaid applicable income level (as defined in section 
     2110(b)(4)) for children under 19 years of age residing in 
     the State that is at or above 185 percent of the poverty line 
     (as defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2), including any revision required 
     by such section for a family of the size involved).''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of section 
     4911 of the Balanced Budget Act of 1997 (Public Law 105-33; 
     111 Stat. 570).

     SEC. 207. GRANTS TO SUPPLEMENT FEES FOR THE TREATMENT OF 
                   CHILDREN WITH SPECIAL DENTAL HEALTH NEEDS.

       Title V of the Social Security Act (42 U.S.C. 701 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 511. GRANTS TO SUPPLEMENT FEES FOR THE TREATMENT OF 
                   CHILDREN WITH SPECIAL DENTAL HEALTH NEEDS.

       ``(a) Authority to Make Grants.--
       ``(1) In general.--In addition to any other payments made 
     under this title to a State, the Secretary shall award grants 
     to States to supplement payments made under the State 
     programs established under titles XIX and XXI for the 
     treatment of children with special oral health care needs.
       ``(2) Definition of children with special oral, dental, and 
     craniofacial health

[[Page 7675]]

     care needs.--In this section the term `children with special 
     oral health care needs' means children with oral, dental and 
     craniofacial conditions or disorders, and other acute or 
     chronic medical, genetic, and behavioral disorders with 
     dental manifestations.
       ``(b) Application of Other Provisions of Title.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     other provisions of this title shall not apply to a grant 
     made, or activities of the Secretary, under this section.
       ``(2) Exceptions.--The following provisions of this title 
     shall apply to a grant made under subsection (a) to the same 
     extent and in the same manner as such provisions apply to 
     allotments made under section 502(c):
       ``(A) Section 504(b)(4) (relating to expenditures of funds 
     as a condition of receipt of Federal funds).
       ``(B) Section 504(b)(6) (relating to prohibition on 
     payments to excluded individuals and entities).
       ``(C) Section 506 (relating to reports and audits, but only 
     to the extent determined by the Secretary to be appropriate 
     for grants made under this section).
       ``(D) Section 508 (relating to nondiscrimination).
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.''.

     SEC. 208. DEMONSTRATION PROJECTS TO INCREASE ACCESS TO 
                   PEDIATRIC DENTAL SERVICES IN UNDERSERVED AREAS.

       (a) Authority To Conduct Projects.--The Secretary of Health 
     and Human Services, through the Administrator of the Health 
     Care Financing Administration, the Administrator of the 
     Health Resources and Services Administration, the Director of 
     the Indian Health Service, and the Director of the Centers 
     for Disease Control and Prevention shall establish 
     demonstration projects that are designed to increase access 
     to dental services for children in underserved areas, as 
     determined by the Secretary.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
                  TITLE III--PEDIATRIC DENTAL RESEARCH

     SEC. 301. IDENTIFICATION OF INTERVENTIONS THAT REDUCE THE 
                   BURDEN AND TRANSMISSION OF ORAL, DENTAL, AND 
                   CRANIOFACIAL DISEASES IN HIGH RISK POPULATIONS; 
                   DEVELOPMENT OF APPROACHES FOR PEDIATRIC ORAL 
                   AND CRANIOFACIAL ASSESSMENT.

       (a) In General.--The Secretary of Health and Human 
     Services, through the Maternal and Child Health Bureau, the 
     Indian Health Service, and in consultation with the Agency 
     for Health Care Policy and Research and the National 
     Institutes of Health, shall--
       (1) support community based research that is designed to 
     improve our understanding of the etiology, pathogenesis, 
     diagnosis, prevention, and treatment of pediatric oral, 
     dental, craniofacial diseases and conditions and their 
     sequelae in high risk populations;
       (2) support demonstrations of preventive interventions in 
     high risk populations; and
       (3) develop clinical approaches to assess individual 
     patients for pediatric dental disease.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated, such sums as may be necessary to carry 
     out this section.

     SEC. 302. AGENCY FOR HEALTH CARE POLICY AND RESEARCH.

       Section 902(a) of the Public Health Service Act (42 U.S.C. 
     299a(a)) is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(9) the barriers that exist, including access to oral 
     health care for children, and the establishment of measures 
     of oral health status and outcomes.''.

     SEC. 303. ORAL HEALTH PROFESSIONAL RESEARCH AND TRAINING 
                   PROGRAM.

         Part G of title IV of the Public Health Service Act is 
     amended by inserting after section 487E (42 U.S.C. 288-5) the 
     following:

     ``SEC. 487F. ORAL HEALTH PROFESSIONAL RESEARCH AND TRAINING 
                   PROGRAM.

       ``(a) In General.--The Secretary, in consultation with the 
     Director of the National Institute of Dental and Craniofacial 
     Research, shall establish a program under which the Secretary 
     will enter into contracts with qualified oral health 
     professionals and such professionals will agree to conduct 
     research or provide training with respect to pediatric oral, 
     dental, and craniofacial diseases and conditions and in 
     exchange the Secretary will agree to repay, for each year of 
     service, not more than $35,000 of the principal and interest 
     of the educational loans of such professionals.
       ``(b) Qualified Oral Health Professional.--
       ``(1) Definition.--In this section, the term `qualified 
     oral health professional' includes dentists and allied dental 
     personnel serving in faculty positions.
       ``(2) Special preference.--In entering into contacts under 
     subsection (a), the Secretary shall give preference to 
     qualified oral health professionals--
       ``(A) who are serving, or who have served in research or 
     training programs of the National Institute of Dental and 
     Craniofacial Research; or
       ``(B) who are providing services at institutions that 
     provide oral health care to underserved pediatric populations 
     in rural or border areas.
       ``(c) Priorities.--The Secretary shall annually determine 
     the clinical and basic research and training priorities for 
     contracts under subsection (a), including dental caries, 
     orofacial accidents or traumas, birth defects such as cleft 
     lip and palate and severe malocclusions, and new techniques 
     and approaches to treatment.
       ``(d) Contracts, Obligated Service, and Breach of 
     Contract.--The provisions of section 338B concerning 
     contracts, obligated service, and breach of contract, except 
     as inconsistent with this section, shall apply to contracts 
     under this section to the same extent and in the same manner 
     as such provisions apply to contracts under such section 
     338B.
       ``(e) Availability of Funds.--Amounts available for 
     carrying out this section shall remain available until the 
     expiration of the second fiscal year beginning after the 
     fiscal year for which such amounts were made available.''.

     SEC. 304. CONSENSUS DEVELOPMENT CONFERENCE.

       (a) In General.--Not later than April 1, 2000, the 
     Secretary of Health and Human Services, acting through the 
     National Institute of Child Health and Human Development and 
     the National Institute of Dental and Craniofacial Research, 
     shall convene a conference (to be known as the ``Consensus 
     Development Conference'') to examine the management of early 
     childhood caries and to support the design and conduct of 
     research on the biology and physiologic dynamics of 
     infectious transmission of dental caries. The Secretary shall 
     ensure that representatives of interested consumers and other 
     professional organizations participate in the Consensus 
     Development Conference.
       (b) Experts.--In administering the conference under 
     subsection (a), the Secretary of Health and Human Services 
     shall solicit the participation of experts in dentistry, 
     including pediatric dentistry, dental hygiene, public health, 
     and other appropriate medical and child health professionals.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
               TITLE IV--SURVEILLANCE AND ACCOUNTABILITY

     SEC. 401. CDC REPORTS.

       (a) Collection of Data.--The Director of the Centers for 
     Disease Control and Prevention in collaboration with other 
     organizations and agencies shall annually collect data 
     describing the dental, craniofacial, and oral health of 
     residents of at least 1 State from each region of the 
     Department of Health and Human Services.
       (b) Reports.--The Director shall compile and analyze data 
     collected under subsection (a) and annually prepare and 
     submit to the appropriate committees of Congress a report 
     concerning the oral health of certain States.

     SEC. 402. REPORTING REQUIREMENTS UNDER THE MEDICAID PROGRAM.

       Section 1902(a)(43)(D) of the Social Security Act (42 
     U.S.C. 1396a(43)(D)) is amended--
       (1) in clause (iii), by striking ``and'' and inserting 
     ``with the specific dental condition and treatment provided 
     identified,'';
       (2) in clause (iv), by striking the semicolon and inserting 
     a comma; and
       (3) by adding at the end the following:
       ``(v) the percentage of expenditures for such services that 
     were for dental services,
       ``(vi) the percentage of dental health professionals (as 
     defined in section 332(a)(4)(C) of the Public Health Service 
     Act) who are licensed in the State and provide services 
     commensurate with eligibility under the State plan, and
       ``(vii) collect and submit data on the number of children 
     being served as compared to the number of children who are 
     eligible for services, and the actual services provided;''.

     SEC. 403. ADMINISTRATION ON CHILDREN, YOUTH, AND FAMILIES.

       The Administrator of the Administration on Children, Youth, 
     and Families shall annually prepare and submit to the 
     appropriate committees of Congress a report concerning the 
     percentage of children enrolled in a Head Start or Early 
     Start program who have access to and who obtain dental care, 
     including children with special oral, dental, and 
     craniofacial health needs. The Administrator of the 
     Administration of Children, Youth and Families shall seek 
     methods to reestablish intraagency agreements with the 
     Administrator of the Health Resources and Services 
     Administration to address technical assistance for its 
     grantees in addressing access to preventive clinical 
     services.

     SEC. 404. SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

       Section 17(f) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(f)) is amended by adding at the end the following:
       ``(25) The State shall collect and submit data on the 
     number of children being served

[[Page 7676]]

     under this section as compared to the number of children who 
     are eligible for services, and the actual services 
     provided.''.
         TITLE V--ORAL HEALTH PROMOTION AND DISEASE PREVENTION

     SEC. 501. GRANTS TO INCREASE RESOURCES FOR COMMUNITY WATER 
                   FLUORIDATION.

       (a) In General.--The Secretary of Health and Human 
     Services, acting through the Director of the Division of Oral 
     Health of the Centers for Disease Control and Prevention, may 
     make grants to State or locality for the purpose of 
     increasing the resources available for community water 
     fluoridation.
       (b) Use of Funds.--A State shall use amounts provided under 
     a grant under subsection (a)--
       (1) to purchase fluoridation equipment;
       (2) to train fluoridation engineers; or
       (3) to develop educational materials on the advantages of 
     fluoridation.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $25,000,000 for 
     fiscal year 2000, and such sums as may be necessary for each 
     subsequent fiscal year.

     SEC. 502. COMMUNITY WATER FLUORIDATION.

       (a) In General.--The Secretary of Health and Human Services 
     (referred to in this section as the ``Secretary''), acting 
     through the Director of the Indian Health Service and the 
     Director of the Centers for Disease Control and Prevention, 
     shall establish a demonstration project that is designed to 
     assist rural water systems in successfully implementing the 
     Centers for Disease Control and Prevention water fluoridation 
     guidelines entitled ``Engineering and Administrative 
     Recommendations for Water Fluoridation'' (referred to in this 
     section as the ``EARWF'').
       (b) Requirements.--
       (1) Collaboration.--The Director of the Indian Health 
     Services shall collaborate with the Director of the Centers 
     for Disease Control and Prevention in developing the project 
     under subsection (a). Through such collaboration the 
     Directors shall ensure that technical assistance and training 
     are provided to tribal programs located in each of the 12 
     areas of the Indian Health Service. The Director of the 
     Indian Health Service shall provide coordination and 
     administrative support to tribes under this section.
       (2) General use of funds.--Amounts made available under 
     this section shall be used to assist small water systems in 
     improving the effectiveness of water fluoridation and to meet 
     the recommendations of the EARWF.
       (3) Fluoridation specialists.--
       (A) In general.--In carrying out this section, the 
     Secretary shall provide for the establishment of fluoridation 
     specialist engineering positions in each of the Dental 
     Clinical and Preventive Support Centers through which 
     technical assistance and training will be provided to tribal 
     water operators, tribal utility operators and other Indian 
     Health Service personnel working directly with fluoridation 
     projects.
       (B) Liaison.--A fluoridation specialist shall serve as the 
     principal technical liaison between the Indian Health Service 
     and the Centers for Disease Control and Prevention with 
     respect to engineering and fluoridation issues.
       (C) Cdc.--The Director of the Centers for Disease Control 
     and Prevention shall appoint individuals to serve as the 
     fluoridation specialists.
       (4) Implementation.--The project established under this 
     section shall be planned, implemented and evaluated over the 
     5-year period beginning on the date on which funds are 
     appropriated under this section and shall be designed to 
     serve as a model for improving the effectiveness of water 
     fluoridation systems of small rural communities.
       (c) Evaluation.--In conducting the ongoing evaluation as 
     provided for in subsection (b)(4), the Secretary shall ensure 
     that such evaluation includes--
       (1) the measurement of changes in water fluoridation 
     compliance levels resulting from assistance provided under 
     this section;
       (2) the identification of the administrative, technical and 
     operational challenges that are unique to the fluoridation of 
     small water systems;
       (3) the development of a practical model that may be easily 
     utilized by other tribal, State, county or local governments 
     in improving the quality of water fluoridation with emphasis 
     on small water systems; and
       (4) the measurement of any increased percentage of Native 
     Americans or Alaskan Natives who receive the benefits of 
     optimally fluoridated water.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $25,000,000 for 
     fiscal year 2000, and such sums as may be necessary for each 
     subsequent fiscal year.

     SEC. 503. SCHOOL-BASED DENTAL SEALANT PROGRAM.

       (a) In General.--The Secretary of Health and Human 
     Services, acting through the Director of the Maternal and 
     Child Health Bureau of the Health Resources and Services 
     Administration, may award grants to States or localities to 
     provide for the development of school-based dental sealant 
     programs to improve the access of children to sealants.
       (b) Use of Funds.--A State shall use amounts received under 
     a grant under subsection (a) to provide funds to eligible 
     school-based entities or to public elementary or secondary 
     schools to enable such entities or schools to provide 
     children in second or sixth grade with access to dental care 
     and dental sealant services. Such services shall be provided 
     by licensed dental health professionals in accordance with 
     State practice licensing laws.
       (c) Eligibility.--To be eligible to receive funds under 
     this section an entity shall--
       (1) prepare and submit to the State an application at such 
     time, in such manner and containing such information as the 
     State may require; and
       (2) be a public elementary or secondary school--
       (A) that located in an urban area and in which and more 
     than 50 percent of the student population is participating in 
     Federal or State free or reduced meal programs; or
       (B) that is located in a rural area and, with respect to 
     the school district in which the school is located, the 
     district involved has a median income that is at or below 235 
     percent of the poverty line, as defined in section 673(2) of 
     the Community Services Block Grant Act (42 U.S.C. 9902(2)).

     Preference in awarding grants shall be provided to eligible 
     entities that use dental health care professionals in the 
     most cost effective manner.
       (d) Coordination with Other Programs.--
       (1) In general.--An entity that receives funds from a State 
     under this section shall serve as an enrollment site for 
     purposes of enabling individuals to enroll in the State plan 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.) or in the State Children's Health Insurance Program 
     under title XXI of such Act (42 U.S.C. 1397aa et seq.).
       (2) Conforming amendment.--Section 1920A(b)(3)(A)(i) of the 
     Social Security Act (42 U.S.C. 1396r-1a(b)(3)(A)(i)) is 
     amended--
       (A) by striking ``or (II)'' and inserting ``, (II)''; and
       (B) by inserting ``, or (III) is an eligible community-
     based entity or a public elementary or secondary school that 
     participates in the school-based dental sealant program 
     established under section 503 of the Children's Dental Health 
     Improvement Act of 1999'' before the semicolon.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $5,000,000 for 
     fiscal year 2000, and such sums as may be necessary for each 
     subsequent fiscal year.
                        TITLE VI--MISCELLANEOUS

     SEC. 601. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act and the amendments made by this Act take effect on 
     the date of enactment of this Act.
       (b) Extension of effective date for state law amendment.--
     In the case of a State plan under title XIX of the Social 
     Security Act which the Secretary of Health and Human Services 
     determines requires State legislation in order for the plan 
     to meet the additional requirements imposed by the amendments 
     made by this Act, the State plan shall not be regarded as 
     failing to comply with the requirements of such amendments 
     solely on the basis of its failure to meet the additional 
     requirements before the first day of the first calendar 
     quarter beginning after the close of the first regular 
     session of the State legislature that begins after the date 
     of the enactment of this Act. For purposes of the previous 
     sentence, in the case of a State that has a 2-year 
     legislative session, each year of the session is considered 
     to be a separate regular session of the State legislature.
                                 ______
                                 
      By Mr. TORRICELLI (for himself, Mr. Kerry, Mrs. Murray, and Mrs. 
        Boxer):
  S. 902. A bill to amend title XIX of the Social Security Act to 
permit States the option to provide Medicaid coverage for low-income 
individuals infected with HIV; to the Committee on Finance.


                  early treatment for hiv act of 1999

  Mr. TORRICELLI. Mr. President, I rise today to introduce the Early 
Treatment for HIV Act. In recent years, exciting scientific 
breakthroughs have led to an improved understanding of AIDS and 
provided powerful new treatments for Americans living with HIV disease. 
Commonly known as the protease cocktail, these drugs have helped 
transform HIV into a manageable chronic disease. To be most effective, 
the medical community and the U.S. Department of Health and Human 
Services (HHS) recommends the use of these treatments early in the 
course HIV infection, before the onset of symptoms. Tragically though, 
the high cost of these drugs means that only those of significant 
financial means have access to them.
  In another tragic irony, vulnerable low-income HIV-positive Americans 
cannot receive AIDS-preventing drugs under the Medicaid program until 
they develop full blown AIDS. By that time, their preventive value has 
greatly diminished. To correct this glaring flaw

[[Page 7677]]

in the Medicaid program, the Early Treatment for HIV Act will ensure 
that HIV positive, low income patients, will be eligible for medical 
services immediately.
  The benefits of this legislation are overwhelming. A report released 
at the 12th World AIDS Conference in Geneva found that treatment for 
HIV early in the course of the disease is both medically and 
economically effective. Another report by the University of California 
found that expanding Medicaid to provide wider access to HIV therapies 
would prevent thousands of deaths and AIDS diagnoses, leading to 14,500 
more years of life for persons living with HIV disease over five years.
  In terms of economic savings, several recent studies have found that 
money spent ``up front'' on medications are offset by later savings on 
hospitalizations and other expensive care and treatments for AIDS-
related illnesses. A report by the Medical Associates of Los Angeles 
found that each dollar spent on combination drugs therapies resulted in 
at least two dollars of savings and overall treatment costs.
  Mr. President, the Early Treatment for HIV Act will help thousands of 
low-income people with HIV live longer, more fulfilling lives by 
allowing them to overcome the financial barriers to effective medical 
treatments.
  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. 902

       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 ``Early Treatment for HIV Act 
     of 1999''.

     SEC. 2. OPTIONAL MEDICAID COVERAGE OF LOW-INCOME HIV-INFECTED 
                   INDIVIDUALS.

       (a) In General.--Section 1902 of the Social Security Act 
     (42 U.S.C. 1396a) is amended--
       (1) in subsection (a)(10)(A)(ii)--
       (A) by striking ``or'' at the end of subclause (XIII);
       (B) by adding ``or'' at the end of subclause (XIV); and
       (C) by adding at the end the following:

       ``(XV) who are described in subsection (aa) (relating to 
     HIV-infected individuals);''; and

       (2) by adding at the end the following new subsection:
       ``(aa) HIV-infected individuals described in this 
     subsection are individuals not described in subsection 
     (a)(10)(A)(i)--
       ``(1) who have HIV infection;
       ``(2) whose income (as determined under the State plan 
     under this title with respect to disabled individuals) does 
     not exceed the maximum amount of income a disabled individual 
     described in subsection (a)(10)(A)(i) may have and obtain 
     medical assistance under the plan; and
       ``(3) whose resources (as determined under the State plan 
     under this title with respect to disabled individuals) do not 
     exceed the maximum amount of resources a disabled individual 
     described in subsection (a)(10)(A)(i) may have and obtain 
     medical assistance under the plan.''.
       (b) Conforming Amendments.--Section 1905(a) of the Social 
     Security Act (42 U.S.C. 1396d(a)) is amended, in the matter 
     preceding paragraph (1)--
       (1) by striking ``or'' at the end of clause (x);
       (2) by adding ``or'' at the end of clause (xi); and
       (3) by inserting after clause (xii) the following:
       ``(xii) individuals described in section 1902(aa);''.
       (c) Exemption from Funding Limitation for Territories.--
     Section 1108(g) of the Social Security Act (42 U.S.C. 
     1308(g)) is amended by adding at the end the following:
       ``(3) Disregarding medical assistance for optional low-
     income hiv-infected individuals.--The limitations under 
     subsection (f) and the previous provisions of this subsection 
     shall not apply to amounts expended for medical assistance 
     for individuals described in section 1902(aa) who are only 
     eligible for such assistance on the basis of section 
     1902(a)(10)(A)(ii)(XV).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to calendar quarters beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     or not final regulations to carry out such amendments have 
     been promulgated by such date.
                                 ______
                                 
      By Mr. KOHL (for himself and Mr. DeWine):
  S. 903. A bill to facilitate the exchange by law enforcement agencies 
of DNA identification information relating to violent offenders, and 
for other purposes; to the Committee on the Judiciary.


            violent offender dna identification act of 1999

 Mr. KOHL. Mr. President, I rise today with Senator DeWine to 
introduce the Violent Offender DNA Identification Act of 1999. This 
bipartisan measure will put more criminals behind bars by correcting 
practical and legal shortcomings that leave too much crucial DNA 
evidence unused and too many violent crimes unsolved.
  Currently, all 50 states require DNA samples to be obtained from 
certain convicted offenders, and these samples increasingly can be 
shared through a national DNA database established by Federal law. This 
national database--part of the Combined Database Index System (CODIS)--
enables law enforcement officials to link DNA evidence found at a crime 
scene with any suspect whose DNA is already on file. By identifying 
repeat offenders, this DNA sharing can and does make a difference. 
Already the FBI has recorded over 400 matches through DNA databases, 
helping solve numerous crimes. And in my home state of Wisconsin, 
experience proves that DNA ``sharing'' pays off. We've already had 19 
``hits'' that have assisted more than 20 criminal investigations. In 
fact, just a week before the statute of limitations ran out in a 
multiple rape investigation, DNA matching helped identify a serial 
rapist responsible for three rapes in Kenosha and a fourth in Racine. 
As a result, he's currently serving an 80-year sentence. Without DNA 
databases, suspects like this otherwise might never be discovered--or 
convicted.
  As valuable as this system is, it is not as effective as it could--or 
should--be. The effectiveness of the database is directly related to 
the number of DNA profiles it contains. For every 1,000 new profiles, 
we can expect to find at least one match, and with every new profile 
added, the odds for a match increase. However, there are currently two 
major obstacles to the effective functioning of the database. Our 
measure would correct these problems and make the database far more 
productive.
  First, hundreds of thousands of DNA samples that have already been 
collected still must be analyzed before they can be entered into the 
national database. The FBI estimates that there is a backlog of nearly 
400,000 DNA samples from convicted offenders languishing, unanalyzed, 
in state crime laboratories for simple lack of funding.
  Our measure will reduce the backlog of unanalyzed samples by 
providing the funding necessary to analyze them and put them ``on-
line.'' It provides $30 million over two years to erase the backlog of 
the 400,000 unanalyzed samples and the almost-as-pressing backlog of 
approximately 200,000 more samples that need to be reanalyzed using 
state-of-the-art methods. For example, in Wisconsin, we have almost 
2,000 samples that have not yet been analyzed, and more than 10,000 
that need to be reanalyzed so they can be effectually shared through 
the national database.
  Indeed, easing this backlog was the lead recommendation of the 
National Commission on the Future of DNA Evidence appointed by the 
Attorney General. As the Commission explained, ``the power of the CODIS 
program lies in the sheer numbers of convicted offender samples that 
are processed and entered into the database.''
  Second, for some inexplicable reason, we do not collect samples from 
Federal and D.C. offenders. So while the database can identify a 
suspect whose DNA is on file in one of the 50 states, it generally 
won't catch a Federal or D.C. offender. Under current law, that suspect 
will not be identified; his crime may not be solved; and he could get 
off scot-free. We thought we already closed this loophole through 1996 
legislation which provides that the FBI ``may expand [the database] to 
include Federal crimes and crimes committed in the District of 
Columbia,'' but Federal officials claim more express authority is 
necessary. We are not so sure they're right, but there is no need to 
wait any longer.
  Our measure closes once and for all this loophole that allows DNA 
samples from Federal (including military) and

[[Page 7678]]

Washington, D.C. offenders to go uncollected. Under our proposal, DNA 
samples would be obtained from any Federal offender--or any D.C. 
offender under Federal custody or supervision--convicted of a violent 
crime or other qualifying offense. And it would require the collection 
of samples from juveniles found delinquent under Federal law for 
conduct that would constitute a violent crime if committed by an adult. 
Our proposal was prepared with the assistance of the FBI, the 
Administrative Office of the U.S. Courts, the Bureau of Prisons, the 
U.S. Parole Commission, agencies within the District of Columbia 
responsible for supervision of released felons, and the Department of 
Defense.
  Mr. President, modern crime-fighting technology like DNA testing and 
DNA databases make law enforcement much more effective. But in order to 
take full advantage of these valuable resources, we need this measure 
to make the database as comprehensive--and as productive--as possible. 
Violent criminals should not be able to evade arrest simply because a 
state didn't analyze its DNA samples or because an inexcusable loophole 
leaves Federal and D.C. offenders out of the DNA database. This measure 
will ensure that we apprehend violent repeat offenders, regardless of 
whether they originally violated state, Federal or D.C. law. And, by 
collecting more DNA evidence and utilizing the best of DNA technology, 
we also can help exonerate individual suspects whose DNA does not match 
with particular crime scenes.
  The Senate has already made clear that issues like these need to be 
addressed. In this year's Budget, we acknowledged that ``tremendous 
backlogs * * * prevent swift administration of justice and impede 
fundamental individual rights, such as the right to a speedy trial and 
to exculpatory evidence.'' We unanimously concluded that it was the 
Sense of the Senate that ``Congress should consider legislation that 
specifically addresses the backlogs in State and local crime 
laboratories and medical examiner's offices.''
  Mr. President, this measure will help police use modern technology to 
solve crimes and prevent repeat offenders from committing new ones. So 
we look forward to working with our colleagues and with the Department 
of Justice to move this measure forward and help law enforcement keep 
pace with today's criminal.
 Mr. DeWINE. Mr. President, today I rise to introduce the 
``Violent Offender DNA Identification Act of 1999,'' with my colleague 
Senator Herb Kohl. Existing anti-crime technology can allow us to solve 
many violent crimes that occur in our communities--but in order for it 
to work, it has to be used.
  I have been a longtime advocate for use of the Combined DNA Indexing 
System (CODIS), a national DNA database, to profile convicted offender 
DNA. In fact, during consideration of the Anti-Terrorism Act of 1996, I 
proposed a provision under which Federal convicted offenders' DNA would 
be included in CODIS. Unfortunately, the Department of Justice never 
implemented this law, though currently all 50 states collect DNA from 
convicted offenders.
  One of the purposes of this legislation is to expressly require the 
collection of DNA samples from federally convicted felons, and military 
personnel convicted of similar offenses. Collection of convicted 
offender DNA is crucial to solving many of the crimes occurring in our 
communities. Statistics show that many of these violent felons will 
repeat their crimes once they are back in society. Since the Federal 
government does not collect DNA from these felons, however, law 
enforcement's ability to rapidly identify likely suspects is retarded. 
Collection of such data is critical.
  The case of Mrs. Debbie Smith of Virginia underscores the importance 
of collection of DNA from convicted offenders. Debbie Smith was at her 
home in the middle of the day when a masked intruder entered her 
unlocked back door. Her husband, a police lieutenant, was upstairs 
sleeping. The stranger blindfolded Mrs. Smith and took her to a wooded 
area behind her house where he robbed and repeatedly raped her. After 
warning Mrs. Smith not to tell, the assailant let her go. She told her 
husband, who reported the incident, then took her to the hospital where 
evidence was collected for DNA analysis.
  Debbie Smith's rape experience was so terrible that she contemplated 
taking her own life. She continued to live in constant fear until six-
and-a-half years later when a state crime laboratory found a CODIS 
match with an inmate then serving in jail for abduction and robbery. In 
fact, the offender was jailed on another offense one month after raping 
her. There are thousands of other crimes the DNA database can solve. 
With CODIS we can grant countless victims, like Mrs. Smith, peace of 
mind and bring their attackers swiftly to justice.
  We need to do everything we can to make sure law enforcement has 
access to these tools. A major obstacle facing state and local crime 
laboratories are the backlogs of convicted offender samples. The 
Federal Bureau of Investigation estimates that there are about 450,000 
convicted offender samples in state and local laboratories awaiting 
analysis. Increasing demand for DNA analysis in active cases, and 
limited resources, are reducing the ability of state and local crime 
laboratories to analyze their convicted offender backlogs. While I 
introduced, and Congress passed, the Crime Identification Technology 
Act of 1998 to address the long-term needs of crime laboratories, many 
crime laboratories need immediate assistance to address their short-
term backlogs that will help law enforcement solve crime.
  This bill would provide about $30 million, over 4 years, to help 
state and local crime laboratories address their convicted offender 
backlogs. We are asking the FBI to work with private, state and local 
laboratories to organize regional laboratories to analysis backlogged 
State and local convicted offender samples. While we have considered 
many ways to address the backlog of convicted offender samples in state 
and local laboratories, we believe that the approach outlined in this 
legislation provides the fastest, most cost-effective and efficient 
method of eliminating the backlog.
  Violent criminals should not be able to evade responsibility simply 
because a state lacks the resources to analyze their DNA samples, or 
because a loophole excludes certain Federal offenders from our national 
database. This legislation would be a huge asset for our local law 
enforcers in their day-to-day fight against crime. I thank Senator Kohl 
for his efforts.
                                 ______
                                 
      By Mr. SANTORUM (for himself and Mr. Specter):
  S. 905. A bill to establish the Lackawanna Valley American Heritage 
Area; to the Committee on Energy and Natural Resources


          lackawanna valley american heritage area act of 1999

  Mr. SANTORUM. Mr. President, I rise today to introduce a bill that 
would establish the Lackawanna Valley American Heritage Area. This 
legislation recognizes the significance of Pennsylvania's Lackawanna 
Valley, the site of the first state heritage park in the Commonwealth 
of Pennsylvania.
  Nearly nine years ago, people in the Lackawanna Valley pursued their 
vision to recognize the cultural, historical, natural, and recreational 
values that existed within the region. As such, partnerships were 
formed among federal, state, and local governments, in addition to 
local business interests, to move this idea forward. As those 
partnerships evolved, that cooperation produced ``The Plan for the 
Lackawanna Heritage Valley.''
  With the credo of ``community development through partnerships,'' the 
LHVA began developing a wide agenda of community projects that would 
come to define the term ``heritage park.'' Specifically, the LHVA was 
instrumental in creating the National Institute of Environmental 
Renewal, a ``living laboratory'' founded with the intention of 
identification and clean-up of the Lackawanna Valley's scarred 
industrial landscape. Through an adaptive re-use of a former school 
building, there now exists a 100,000 square foot

[[Page 7679]]

Education and Training, Research and Development, and Technology 
Transfer Center.
  Other projects taken on by the Authority include: construction of the 
Lackawanna Trolley Museum; designation of the Lackawanna River Heritage 
Trail; development of the Olyphant Elementary School housing project; 
and the ``Young People's Heritage Festival.'' One of the most 
significant undertakings by LHVA partners has been a research document 
commissioned by the National park Service and the PA Historical and 
Museum Commission. The study, ``Anthracite Coal in Pennsylvania: an 
Industry and a Region,'' concludes that, ``the anthracite industry of 
northeastern Pennsylvania played a critical role in the expansion of 
the American economy during the second quarter of the nineteenth 
century.''
  The legislation that I am introducing today, with the support of 
Senator Specter, encourages the continuation of local interest by 
demonstrating the federal government's commitment to preserving the 
unique heritage of the Lackawanna Valley. It would require the 
Lackawanna Heritage Valley Authority to enter a compact with the 
Secretary of the Interior to establish Heritage Area boundaries, and to 
prepare and implement a management plan within three years. This plan 
would inventory resources and recommend policies for resource 
management interpretation. Further, based on the criteria of other 
Heritage Areas established by the Omnibus Parks and Public Lands 
Management Act of 1996, this bill requires that federal funds provided 
under this bill do not exceed 50 percent of the total cost of the 
program.
  Mr. President, this legislation is a culmination of the hard work and 
diligence of many parties interested in preserving the cultural and 
natural resources of the Lackawanna Valley. I believe this bill 
represents the positive impact public and private institutions can have 
when given the opportunity for collaboration.
  Mr. President, I ask unanimous consent that a copy 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. 905

       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 ``Lackawanna Valley American 
     Heritage Area Act of 1999''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the industrial and cultural heritage of northeastern 
     Pennsylvania, including Lackawanna County, Luzerne County, 
     Wayne County, and Susquehanna County, related directly to 
     anthracite and anthracite-related industries, is nationally 
     significant;
       (2) the industries referred to in paragraph (1) include 
     anthracite mining, ironmaking, textiles, and rail 
     transportation;
       (3) the industrial and cultural heritage of the anthracite 
     and anthracite-related industries in the region described in 
     paragraph (1) includes the social history and living cultural 
     traditions of the people of the region;
       (4) the labor movement of the region played a significant 
     role in the development of the Nation, including--
       (A) the formation of many major unions such as the United 
     Mine Workers of America; and
       (B) crucial struggles to improve wages and working 
     conditions, such as the 1900 and 1902 anthracite strikes;
       (5)(A) the Secretary of the Interior is responsible for 
     protecting the historical and cultural resources of the 
     United States; and
       (B) there are significant examples of those resources 
     within the region described in paragraph (1) that merit the 
     involvement of the Federal Government to develop, in 
     cooperation with the Lackawanna Heritage Valley Authority, 
     the Commonwealth of Pennsylvania, and local and governmental 
     entities, programs and projects to conserve, protect, and 
     interpret this heritage adequately for future generations, 
     while providing opportunities for education and 
     revitalization; and
       (6) the Lackawanna Heritage Valley Authority would be an 
     appropriate management entity for a Heritage Area established 
     in the region described in paragraph (1).
       (b) Purposes.--The purposes of the Lackawanna Valley 
     American Heritage Area and this Act are--
       (1) to foster a close working relationship among all levels 
     of government, the private sector, and the local communities 
     in the anthracite coal region of northeastern Pennsylvania 
     and enable the communities to conserve their heritage while 
     continuing to pursue economic opportunities; and
       (2) to conserve, interpret, and develop the historical, 
     cultural, natural, and recreational resources related to the 
     industrial and cultural heritage of the 4-county region 
     described in subsection (a)(1).

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Heritage area.--The term ``Heritage Area'' means the 
     Lackawanna Valley American Heritage Area established by 
     section 4.
       (2) Management entity.--The term ``management entity'' 
     means the management entity for the Heritage Area specified 
     in section 4(c).
       (3) Management plan.--The term ``management plan'' means 
     the management plan for the Heritage Area developed under 
     section 6(b).
       (4) Partner.--The term ``partner'' means--
       (A) a Federal, State, or local governmental entity; and
       (B) an organization, private industry, or individual 
     involved in promoting the conservation and preservation of 
     the cultural and natural resources of the Heritage Area.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 4. LACKAWANNA VALLEY AMERICAN HERITAGE AREA.

       (a) Establishment.--There is established the Lackawanna 
     Valley American Heritage Area.
       (b) Boundaries.--The Heritage Area shall be comprised of 
     all or parts of Lackawanna County, Luzerne County, Wayne 
     County, and Susquehanna County, Pennsylvania, determined in 
     accordance with the compact under section 5.
       (c) Management Entity.--The management entity for the 
     Heritage Area shall be the Lackawanna Heritage Valley 
     Authority.

     SEC. 5. COMPACT.

       (a) In General.--To carry out this Act, the Secretary shall 
     enter into a compact with the management entity.
       (b) Contents of Compact.--The compact shall include 
     information relating to the objectives and management of the 
     area, including--
       (1) a delineation of the boundaries of the Heritage Area; 
     and
       (2) a discussion of the goals and objectives of the 
     Heritage Area, including an explanation of the proposed 
     approach to conservation and interpretation and a general 
     outline of the protection measures committed to by the 
     partners.

     SEC. 6. AUTHORITIES AND DUTIES OF MANAGEMENT ENTITY.

       (a) Authorities of Management Entity.--The management 
     entity may, for the purposes of preparing and implementing 
     the management plan, use funds made available under this 
     Act--
       (1) to make loans and grants to, and enter into cooperative 
     agreements with, any State or political subdivision of a 
     State, private organization, or person; and
       (2) to hire and compensate staff.
       (b) Management Plan.--
       (1) In general.--The management entity shall develop a 
     management plan for the Heritage Area that presents 
     comprehensive recommendations for the conservation, funding, 
     management, and development of the Heritage Area.
       (2) Consideration of other plans and actions.--The 
     management plan shall--
       (A) take into consideration State, county, and local plans;
       (B) involve residents, public agencies, and private 
     organizations working in the Heritage Area; and
       (C) include actions to be undertaken by units of government 
     and private organizations to protect the resources of the 
     Heritage Area.
       (3) Specification of funding sources.--The management plan 
     shall specify the existing and potential sources of funding 
     available to protect, manage, and develop the Heritage Area.
       (4) Other required elements.--The management plan shall 
     include the following:
       (A) An inventory of the resources contained in the Heritage 
     Area, including a list of any property in the Heritage Area 
     that is related to the purposes of the Heritage Area and that 
     should be preserved, restored, managed, developed, or 
     maintained because of its historical, cultural, natural, 
     recreational, or scenic significance.
       (B) A recommendation of policies for resource management 
     that considers and details application of appropriate land 
     and water management techniques, including the development of 
     intergovernmental cooperative agreements to protect the 
     historical, cultural, natural, and recreational resources of 
     the Heritage Area in a manner that is consistent with the 
     support of appropriate and compatible economic viability.
       (C) A program for implementation of the management plan by 
     the management entity, including--
       (i) plans for restoration and construction; and
       (ii) specific commitments of the partners for the first 5 
     years of operation.
       (D) An analysis of ways in which local, State, and Federal 
     programs may best be coordinated to promote the purposes of 
     this Act.

[[Page 7680]]

       (E) An interpretation plan for the Heritage Area.
       (5) Submission to secretary for approval.--
       (A) In general.--Not later than the last day of the 3-year 
     period beginning on the date of enactment of this Act, the 
     management entity shall submit the management plan to the 
     Secretary for approval.
       (B) Effect of failure to submit.--If a management plan is 
     not submitted to the Secretary by the day referred to in 
     subparagraph (A), the Secretary shall not, after that day, 
     provide any grant or other assistance under this Act with 
     respect to the Heritage Area until a management plan for the 
     Heritage Area is submitted to the Secretary.
       (c) Duties of Management Entity.--The management entity 
     shall--
       (1) give priority to implementing actions specified in the 
     compact and management plan, including steps to assist units 
     of government and nonprofit organizations in preserving the 
     Heritage Area;
       (2) assist units of government and nonprofit organizations 
     in--
       (A) establishing and maintaining interpretive exhibits in 
     the Heritage Area;
       (B) developing recreational resources in the Heritage Area;
       (C) increasing public awareness of and appreciation for the 
     historical, natural, and architectural resources and sites in 
     the Heritage Area; and
       (D) restoring historic buildings that relate to the 
     purposes of the Heritage Area;
       (3) encourage economic viability in the Heritage Area 
     consistent with the goals of the management plan;
       (4) encourage local governments to adopt land use policies 
     consistent with the management of the Heritage Area and the 
     goals of the management plan;
       (5) assist units of government and nonprofit organizations 
     to ensure that clear, consistent, and environmentally 
     appropriate signs identifying access points and sites of 
     interest are placed throughout the Heritage Area;
       (6) consider the interests of diverse governmental, 
     business, and nonprofit groups within the Heritage Area;
       (7) conduct public meetings not less often than quarterly 
     concerning the implementation of the management plan;
       (8) submit substantial amendments (including any increase 
     of more than 20 percent in the cost estimates for 
     implementation) to the management plan to the Secretary for 
     the Secretary's approval; and
       (9) for each year in which Federal funds have been received 
     under this Act--
       (A) submit a report to the Secretary that specifies--
       (i) the accomplishments of the management entity;
       (ii) the expenses and income of the management entity; and
       (iii) each entity to which any loan or grant was made 
     during the year;
       (B) make available to the Secretary for audit all records 
     relating to the expenditure of such funds and any matching 
     funds; and
       (C) require, with respect to all agreements authorizing 
     expenditure of Federal funds by other organizations, that the 
     receiving organizations make available to the Secretary for 
     audit all records concerning the expenditure of such funds.
       (d) Use of Federal Funds.--
       (1) Funds made available under this act.--The management 
     entity shall not use Federal funds received under this Act to 
     acquire real property or any interest in real property.
       (2) Funds from other sources.--Nothing in this Act 
     precludes the management entity from using Federal funds 
     obtained through law other than this Act for any purpose for 
     which the funds are authorized to be used.

     SEC. 7. DUTIES AND AUTHORITIES OF FEDERAL AGENCIES.

       (a) Technical and Financial Assistance.--
       (1) In general.--
       (A) Provision of assistance.--The Secretary may, at the 
     request of the management entity, provide technical and 
     financial assistance to the management entity to develop and 
     implement the management plan.
       (B) Priority in assistance.--In assisting the management 
     entity, the Secretary shall give priority to actions that 
     assist in--
       (i) conserving the significant historical, cultural, and 
     natural resources that support the purposes of the Heritage 
     Area; and
       (ii) providing educational, interpretive, and recreational 
     opportunities consistent with the resources and associated 
     values of the Heritage Area.
       (2) Expenditures for non-federally owned property.--
       (A) In general.--To further the purposes of this Act, the 
     Secretary may expend Federal funds directly on non-federally 
     owned property, especially for assistance to units of 
     government relating to appropriate treatment of districts, 
     sites, buildings, structures, and objects listed or eligible 
     for listing on the National Register of Historic Places.
       (B) Studies.--The Historic American Buildings Survey/
     Historic American Engineering Record shall conduct such 
     studies as are necessary to document the industrial, 
     engineering, building, and architectural history of the 
     Heritage Area.
       (b) Approval and Disapproval of Management Plans.--
       (1) In general.--The Secretary, in consultation with the 
     Governor of the Commonwealth of Pennsylvania, shall approve 
     or disapprove a management plan submitted under this Act not 
     later than 90 days after receipt of the management plan.
       (2) Action following disapproval.--
       (A) In general.--If the Secretary disapproves a management 
     plan, the Secretary shall advise the management entity in 
     writing of the reasons for the disapproval and shall make 
     recommendations for revisions to the management plan.
       (B) Deadline for approval of revision.--The Secretary shall 
     approve or disapprove a proposed revision within 90 days 
     after the date on which the revision is submitted to the 
     Secretary.
       (c) Approval of Amendments.--
       (1) Review.--The Secretary shall review substantial 
     amendments (as determined under section 6(c)(8)) to the 
     management plan for the Heritage Area.
       (2) Requirement of approval.--Funds made available under 
     this Act shall not be expended to implement the amendments 
     described in paragraph (1) until the Secretary approves the 
     amendments.

     SEC. 8. SUNSET PROVISION.

       The Secretary shall not provide any grant or other 
     assistance under this Act after September 30, 2012.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this Act $10,000,000, except that not more than 
     $1,000,000 may be appropriated to carry out this Act for any 
     fiscal year.
       (b) 50 Percent Match.--The Federal share of the cost of 
     activities carried out using any assistance or grant under 
     this Act shall not exceed 50 percent.
                                 ______
                                 
      By Mr. ABRAHAM:
  S. 906. A bill to establish a grant program to enable States to 
establish and maintain pilot drug testing and drug treatment programs 
for welfare recipients engaging in illegal drug use, and for other 
purposes; to the Committee on Finance.


     drug testing and treatment for welfare recipients act of 1999

  Mr. ABRAHAM. Mr. President, I rise to introduce the Drug Testing and 
Treatment for Welfare Recipients Act of 1999. This legislation would 
establish a pilot program encouraging up to 5 States to implement drug 
testing and treatment programs for people receiving assistance through 
the Temporary Assistance to Needy Families Block Grant (TANF); the AFDC 
replacement established through the 1996 welfare reform law. It would 
fund these programs through three year competitive grants, providing 
States with the resources and flexibility they need to establish the 
most effective drug testing and treatment programs for their 
communities.
  Mr. President, across the Nation, welfare caseloads are dropping. 
More and more welfare recipients are working to provide for their 
families and moving closer to complete independence from public 
assistance. According to the Congressional Research Service, in March 
of 1994 5.1 million families received assistance through the Aid to 
Families with Dependent Children program (AFDC). By September of 1998, 
those numbers had dropped to 2.9 million families receiving assistance 
through the Temporary Assistance to Needy Families (TANF) block grant 
program.
  This 43% decline in the welfare caseload is encouraging. But it 
should not stop our efforts to help those hard-to-serve cases still on 
the rolls. Individuals who continue to receive welfare payments face 
daunting barriers to employment. One such barrier is drug addiction. 
People who are addicted to drugs have great trouble concentrating, 
keeping set schedules and maintaining basic order in their lives. For 
them, steady employment is often simply out of reach.
  According to the Administration's Office of National Drug Control 
Policy, drug abuse has plagued America for over a century. It has torn 
families apart, regardless of socio-economic background as it has 
destroyed individual lives and spawned crime and social breakdown. 
Drugs pose a threat to the individual, the family, and the community. 
Individuals dependent on illegal substances cannot take care of 
themselves, much less their children, and drug dependence often leads 
to other crimes. Desperate to feed their addiction, abusers are often 
forced into theft, assault, or even worse crimes in the search for that 
next hit.

[[Page 7681]]

  Today, an estimated 12.8 million Americans use illegal drugs. 
Approximately 45% of Americans know someone with a substance abuse 
problem. And the problem is particularly acute among young people 
preparing to enter adult life and the adult workforce. 25 percent of 
12th graders still use illegal drugs regularly, as do 20 percent of 
10th graders and 12 percent of 8th graders.
  To combat the debilitating effects of drugs on addicts and those 
around them, this bill would enable States to fund drug testing and 
treatment programs for welfare recipients in their communities. It 
would do this by establishing a three year competitive grant program. 
States would apply for this grant by submitting a drug testing and 
treatment plan for their welfare recipients. The Secretary of Health 
and Human Services would then award the grant to up to 5 states in the 
amount of $1.5 million per year per state for three years, bringing the 
total cost of this grant program to $22.5 million.
  The award decision will be based on two factors: (1) the need and 
ability of the State to address drug abuse by welfare recipients and 
(2) the ability of the State to continue such testing and treatment 
programs after the 3 year grant subsidies. Upon receiving the grant, 
States would be required to distribute the monies to entities already 
receiving funds through the Federal Substance Abuse Prevention and 
Treatment block grant (SAPT), the primary tool the federal government 
uses to support State substance abuse prevention and treatment 
programs. The States may allocate the funds in any manner they deem 
appropriate to establish programs that best serve their communities.
  Mr. President, we often talk about breaking the cycle of poverty, and 
I believe that goes hand in hand with winning the drug war. I would 
like to read a brief quotation from the Administration's Office of 
National Drug Control Policy's National Drug Control Strategy. I think 
it makes an important point: ``While drug use and its consequences 
threaten Americans of every socio-economic background * * * the effects 
of drug use are often felt disproportionally. Neighborhoods where 
illegal drug markets flourish are plagued by attendant crime and 
violence.'' I have always been a strong advocate of community renewal 
and I truly believe that when we begin building drug-free families, 
safer streets, safer communities and more opportunities for our 
nation's economically disadvantaged will follow.
  Treatment for welfare recipients engaged in illegal drug use is the 
most important form of assistance they will ever receive. The Office of 
National Drug Control Policy points out that ``Americans who lack 
comprehensive health plans and have smaller incomes may be less able to 
afford treatment programs to overcome drug dependence.''
  Mr. President, this bill would put drug treatment dollars in the 
hands of those who need it most. States need these funds to help 
finance more comprehensive treatment programs not covered by Medicaid. 
Comprehensive services are desperately needed for the most serious 
victims of drug abuse. This grant program constitutes a small 
investment that would encourage States to address drug abuse by welfare 
recipients, further reducing rates of welfare dependency and other 
social problems related to drug addiction.
  Ultimately, our goal is to help individuals provide for their 
families and achieve independence by breaking the cycle of dependency. 
This legislation will help significantly in that effort and I encourage 
my colleagues to give it their support.
  Mr. President, I ask unanimous consent that the bill and a section-
by-section analysis be printed in the Record.
  There being no objection, the materials were ordered to be printed in 
the Record, as follows:

                                 S. 906

       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 Testing and Treatment 
     for Welfare Recipients Act of 1999''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to create a grant program that 
     assists States in establishing and maintaining pilot drug 
     testing and drug treatment programs for welfare recipients 
     who have a commitment to overcoming their substance abuse 
     problems and are in acute need of overcoming such problems.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Drug.--The term ``drug'' means a drug within the 
     meaning of subpart II of part B of title XIX of the Public 
     Health Service Act (42 U.S.C. 300x-21 et seq.).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (3) Welfare agency.--The term ``welfare agency'' means a 
     State agency carrying out a program described in paragraph 
     (4).
       (4) Welfare recipient.--The term ``welfare recipient'' 
     means an individual in a State who is receiving assistance 
     under the State temporary assistance for needy families 
     program established under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.).

     SEC. 4. PROGRAM AUTHORIZED.

       The Secretary may award grants to States to establish and 
     maintain pilot drug testing programs and drug treatment 
     programs for welfare recipients in each State that receives a 
     grant.

     SEC. 5. APPLICATIONS.

       (a) In General.--To be eligible to receive a grant under 
     this Act, a State shall submit an application to the 
     Secretary.
       (b) Contents.--Each application submitted pursuant to 
     subsection (a) shall--
       (1) describe a program to provide drug testing for welfare 
     recipients in the State; and
       (2) describe a drug treatment program for welfare 
     recipients in the State that provides treatment if such a 
     recipient receives a positive result on a test described in 
     paragraph (1).

     SEC. 6. CRITERIA FOR AWARD OF GRANTS.

       (a) In General.--The Secretary shall award grants to 
     eligible States under section 4 on a competitive basis in 
     accordance with the criteria set out in subsection (b).
       (b) Criteria.--The Secretary shall award grants to eligible 
     States based on the following criteria:
       (1) The need and ability of a State to address drug use by 
     welfare recipients.
       (2) The ability of the State to continue the State programs 
     established under this Act after the grant program 
     established under this Act is concluded.

     SEC. 7. AWARDS.

       (a) Amount of Grant.--The Secretary shall award a grant 
     under this Act in the amount of $1,500,000 per year.
       (b) Duration.--The Secretary shall award a grant under this 
     Act for a period of 3 years.
       (c) Limitation on Number of Grants.--The Secretary shall 
     award grants under this Act to not more than 5 States.

     SEC. 8. USE OF FUNDS.

       (a) In General.--A State that receives a grant under this 
     Act shall use the funds made available through the grant to 
     establish and maintain the programs described in the 
     application submitted by the State under section 5.
       (b) Distribution by States.--Each State receiving a grant 
     under this Act shall distribute grant funds only to entities 
     that are receiving assistance under subpart II of part B of 
     title XIX of the Public Health Service Act (42 U.S.C. 300x-21 
     et seq.).

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out this Act.
                                  ____


Drug Testing and Treatment for Welfare Recipients Act of 1999--Section-
                          by-Section Analysis

       A bill to establish a grant program to enable States to 
     establish and maintain pilot drug testing and drug treatment 
     programs for welfare recipients engaging in illegal drug use, 
     and for other purposes.
     Section 1. Short Title.
       The act may be cited as the ``Drug Testing and Treatment 
     for Welfare Recipients Act of 1999''.
     Section 2. Purpose.
       The purpose of this Act is to create a grant program that 
     assists States in establishing and maintaining pilot drug 
     testing and drug treatment programs for welfare recipients 
     that have an acute and intensive need in overcoming drug 
     abuse.
     Section 3. Definitions.
       This section defines various terms used in the bill. 
     Significantly, for the purposes of this legislation, a 
     welfare recipient is defined as an individual receiving 
     assistance under the State temporary assistance for needy 
     families (TANF) grant program. A welfare agency is any State 
     agency that carries out the TANF program.
     Section 4. Program Authorized.
       This section states that the Secretary of Health and Human 
     Services may award grants to States to establish and maintain 
     pilot drug testing and treatment programs in each State 
     receiving the grant.
     Section 5. Applications.
       To receive a grant, a State must submit an application to 
     the Secretary of Health and

[[Page 7682]]

     Human Services that describes a program to provide drug 
     testing and treatment for welfare recipients in the State.
     Section 6. Criteria for award of grants.
       These grants will be awarded on a competitive basis and 
     shall be based on the need and ability of the State to 
     address drug use by welfare recipients and the ability of the 
     State to continue such testing and treatment programs after 
     this Act sunsets.
     Section 7. Awards.
       The Secretary will award the grant to no more than 5 
     States. Each grant will be $1.5 million dollars per year for 
     three years. That brings the total cost of this Act to $22.5 
     million dollars.
     Section 8. Use of Funds.
       The State shall distribute grant funds to those entities 
     that currently receive federal funding in the form of the 
     Substance Abuse Prevention and Treatment block grant (SAPT). 
     The grant money, which will be allotted in amounts determined 
     solely by the States, will be used for treatment purposes.
     Section 9. Authorization of Appropriations.
       This section authorizes to be appropriated such sums as may 
     be necessary to carry out this Act.
                                 ______
                                 
      By Mr. SMITH of New Hampshire:
  S. 907. A bill to protect the right to life of each born and preborn 
human person in existence at fertilization; to the Committee on the 
Judiciary.


                       right to life act of 1999

  Mr. SMITH of New Hampshire. Mr. President, I rise today to introduce 
the Right to Life Act of 1999.
  Our Nation's founding document, the Declaration of Independence, 
declared for all the world that we hold it to be self-evident that the 
right to life comes from God and that it is unalienable. Life itself, 
the Declaration held, is the fundamental right without which the rights 
to liberty and the pursuit of happiness have to meaning. As the author 
of the Declaration, Thomas Jefferson, later wrote, ``The care of human 
life and not its destruction . . . is the first and only object of good 
government.''
  Almost 200 years after the Declaration of Independence, however, in 
1973, the United States Supreme Court violated its most sacred 
principle. In Roe versus Wade, the Supreme Court held that the entire 
class of unborn children--from fertilization to birth--have no right to 
life and may be destroyed at will. In subsequent cases, the Court has 
zealously guarded the right to abortion that it created. The Court has 
repeatedly rejected all meaningful attempts by the States to protect 
the unalienable right to life of unborn children.
  Those of us who proudly count ourselves to be members of the right-
to-life movement must not lose sight of our ultimate goal. Our 
objective is to keep the Declaration's promise by reversing Roe versus 
Wade and restoring to unborn children their God-given right to life. In 
order to keep that hope alive in the Senate, I am introducing today the 
``Right to Life Act of 1999.''
  My bill first sets forth several findings of Congress regarding the 
fundamental right to life and the tragic constitutional errors of Roe 
versus Wade. Based on these findings and in the exercise of the powers 
of the Congress under Article I, Section 8, of the Constitution, and 
Section 5 of the Fourteenth Amendment to the Constitution, my bill 
establishes that ``the right to life guaranteed by the Constitution is 
vested in each human being at fertilization.''
  Mr. President, I ask unanimous consent that the text of my bill, the 
``Right to Life Act of 1999,'' be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 907

       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 ``Right to Life Act of 1999''.
       Sec. 2. The Congress finds that--
       (1) we, as a Nation, have declared that the unalienable 
     right to life endowed by Our Creator is guaranteed by our 
     Constitution for each human person:
       (2) the Supreme Court, in Roe v. Wade (410 U.S. 113 at 
     159), stated: ``We need not resolve the difficult question of 
     when life begins . . . the judiciary at this point in the 
     development of man's knowledge, is not in a position to 
     speculate as to the answer . . .'';
       (3) the Supreme Court, in Roe v. Wade (410 U.S. 113 at 156-
     157), stated: ``If this suggestion of personhood is 
     established, the appellant's case, of course, collapses, for 
     the fetus' right to life is then guaranteed specifically by 
     the [Fourteenth] Amendment . . .'';
       (4) the Supreme Court, in Roe v. Wade stated that the 
     privacy right is not absolute, and stated (410 U.S. 113, at 
     159) that: ``The pregnant woman cannot be isolated in her 
     privacy. She carries an embryo and, later, a fetus. . . . The 
     woman's privacy is no longer sole and any right of privacy 
     she possesses must be measured accordingly.'';
       (5) a human father and mother beget a human offspring when 
     the father's sperm fertilizes the mother's ovum, and the life 
     of each preborn human person begins at fertilization;
       (6) there is no justification for any Federal, State, or 
     private action intentionally to kill an innocent born or 
     preborn human person, and that Federal, State, and private 
     action must assure equal care and protection for the right to 
     life of both a pregnant mother and her preborn child in 
     existence at fertilization;
       (7) Americans and our society suffer from the evils of 
     killing even one innocent born or preborn human person, and 
     each day suffer the torture and slaughter of an estimated 
     4,000 preborn persons;
       (8) the intentional killing of preborn human persons occurs 
     in Federal enclaves, in interstate commerce activities, and 
     in the States, estimated at 1,500,000 per year and 33,000,000 
     since 1973; and
       (9) the violence of intentionally killing a preborn human 
     person has provoked more violence, carnage, and conflict 
     reaching into homes, schools, churches, workplaces and lives 
     of Americans.

     SEC. 3. RIGHT TO LIFE.

       Upon the basis of these findings and in the exercise of 
     duty, authority, and powers of the Congress, including its 
     power under Article I, Section 8, to make necessary and 
     proper laws, and including its power under section 5 of the 
     14th article of amendment to the Constitution of the United 
     States, the Congress hereby declares that the right to life 
     guaranteed by the Constitution is vested in each human being 
     at fertilization.

     SEC. 4. DEFINITION OF STATE.

       For the purpose of this Act, the term ``State'' used in the 
     14th article of amendment to the Constitution of the United 
     States and other applicable provisions of the Constitution 
     includes the District of Columbia, the Commonwealth of Puerto 
     Rico, and each other territory or possession of the United 
     States.
                                 ______
                                 
      By Mr. DORGAN:
  S. 908. A bill to establish a comprehensive program to ensure the 
safety of food products intended for human consumption that are 
regulated by the Food and Drug Administration, and for other purposes; 
to the Committee on Agriculture, Nutrition, and Forestry.


                    consumer food safety act of 1999

  Mr. DORGAN. Mr. President, I am introducing legislation Wednesday to 
improve the safety of the nation's food supply, by increasing 
educational efforts for food processors and handlers and the frequency 
of inspections for some of them. The bill also establishes new 
mechanisms for identifying food processors and handlers who originate 
contaminated food in order to improve federal recall and food safety 
law enforcement action.
  Farmers produce high quality products and expect them to reach the 
consumer with the same high quality standards observed. Farmers and 
consumers both have an interest in assuring the unquestioned safety of 
our food.
  The new global economy is another reason for strengthening the 
nations' food safety laws. With the new global economy, we have food 
moving around the world without much understanding of where its coming 
from, who produced it, and under what conditions. I think it calls for 
a much more rigorous food inspections, not only for the safety of 
consumers, but to safeguard the reputation of the products our farmers 
produce.
  Another important feature of the bill is new authority for inspection 
of food and food products at the border as they enter the United States 
from foreign countries, and in some cases inspections at food 
processing plants located in foreign countries.
  A similar bill will be introduced shortly in the U.S. House by 
Representative Frank Pallone (D-NJ), underscoring the urban-rural, 
producer-consumer nature of the new drive for improved food safety 
laws.




                          ____________________