[Congressional Record (Bound Edition), Volume 145 (1999), Part 8]
[Senate]
[Pages 10626-10661]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. GRAMS:
  S. 1102. A bill to guarantee the right of individuals to receive full 
social security benefits under title II of the Social Security Act in 
full with an accurate annual cost-of-living adjustment; to the 
Committee on Finance.


             SOCIAL SECURITY BENEFITS GUARANTEE ACT OF 1999

  S. 1103. A bill to reform Social Security by creating personalized 
retirement accounts, and for other purposes; to the Committee on 
Finance.


         PERSONAL SECURITY AND WEALTH IN RETIREMENT ACT OF 1999

  S. 1104. A bill to amend the Social Security Act to provide 
simplified and accurate information on the social security trust funds, 
and personal earnings and benefit estimates to eligible individuals; to 
the Committee on Finance.


                SOCIAL SECURITY INFORMATION ACT OF 1999

  Mr. GRAMS. Mr. President, I want to take a little time this morning 
to talk about Social Security. I know our Nation has been engaged in 
Social Security reform discussions for about 2 years now kind of 
formally. But, informally, many have been talking about what we are 
going to do to ensure a safe, sound Social Security system in the 
future.
  We all expected that we could work in a bipartisan manner during this 
Congress to be able to complete the immense task of saving and 
strengthening Social Security for the American people.
  Unfortunately, President Clinton has failed to take leadership on 
this issue and has failed to present an honest plan to this Congress to 
address Social Security's rapid approaching crisis.
  There is widespread reluctance to move forward on reform due to 
political considerations. Yet, if we keep delaying essential reform 
until after the ``next election''--it is always after the next 
election--we will never be able to complete our goal of ensuring 
retirement security for future generations of Americans.
  Now, on the positive side, the debate has surely raised the public's 
awareness of their own retirement security shortcomings. It has brought 
attention to the Social Security crisis and has led to a variety of 
solutions to fix the system.
  I believe this is a healthy debate, one that we must continue to 
encourage. I am sure that when our elected officials muster the 
political will to make some of those hard choices we face, the Nation 
will be ready to support those choices.
  Regardless of when we actually consider Social Security reform, we 
must continue the job of educating Americans about the importance of 
savings and retirement planning. We must continue to debate the role of 
future Social Security benefits in our retirement security decisions.
  That is why I am here. I rise today to introduce three pieces of 
legislation as first steps to save Social Security. To outline the 
bills, my first bill, very simply, would grant every current and future 
Social Security beneficiary a legal right to those Social Security 
benefits.
  The second is a comprehensive plan to move Social Security from the 
current pay-as-you-go system to one that is a fully funded, 
personalized retirement system, to ensure a safe, sound, secure 
retirement program that maximizes benefits for the retiree.
  The third bill would provide real information about the costs and the 
benefits under the current Social Security system.
  Mr. President, each working American devotes his or her entire life 
to a job, or series of jobs, and pays hundreds of thousands of dollars 
in Social Security taxes into the retirement system. In fact, Social 
Security taxes are the largest tax that many families will ever pay, 
accounting for up to one-eighth of the total lifetime income that will 
go into Social Security.
  Many people, including myself, believe that Social Security benefits 
are our ``earned right.'' We think that because we have paid Social 
Security taxes, we are legally entitled to receive Social Security 
benefits. But this ``earned right'' is nothing but an illusion--an 
illusion created by politicians

[[Page 10627]]

who call Social Security taxes ``contributions'' and make Social 
Security sound like it is a regular insurance program.
  The truth is that the American people do not have any legal right to 
their Social Security benefits, though they pay Social Security taxes 
all of their lives. Their benefits are always at the mercy of the 
Government and politicians who can adjust them and can even spend them 
on unrelated Government programs. This fact--that Americans currently 
have no legal right to Social Security--was decided by the courts when 
the Social Security was just getting started.
  Mr. President, it was back in 1937, less than 2 years after the 
creation of Social Security, that the Supreme Court decided in the case 
of Helvering v. Davis that Social Security was not an insurance 
program.
  The court held:

       The proceeds of both the employee and employer taxes are to 
     be paid into the Treasury like any other internal revenue 
     generally, and are not earmarked in any way.

  So, basically, Social Security is just a tax, not a retirement 
system.
  The Court also pointed out:

       Congress did not improvise a judgment when it found that 
     the award of old-age benefits would be conducive to the 
     general welfare. The President's committee on economic 
     security made an investigation and report . . . with the loss 
     of savings inevitable in periods of idleness, the fate of 
     workers over 65, when thrown out of work, is little less than 
     desperate. . . . Moreover, laws of the separate States cannot 
     deal with this effectively. . . . Only a power that is 
     national can serve the interests of all.

  What it meant was that Social Security was not and is not an 
insurance program at all, but a tax--a tax, pure and simple--that 
leaves retirement benefits to be actually determined by the political 
process--not the benefits of the plan, but the political process.
  This decision was later confirmed in another important case, Fleming 
v. Nestor. In this case, the Supreme Court more expressly ruled that 
workers have no legally binding contractual rights to their Social 
Security benefits, and that those benefits can be cut or even 
eliminated at any time.
  Mr. President, this is a very interesting and important case. Ephram 
Nestor was a Bulgarian immigrant who paid Social Security taxes from 
1936 until he retired in 1955. He received a $55.60-per-month Social 
Security check during his retirement. But in 1956, Nestor was deported 
for having been a member of the Communist Party in the 1930s. His 
Social Security checks were stopped in accordance with the law.
  Nestor sued the Secretary of Health, Education, and Welfare, claiming 
that because he had paid Social Security taxes, he had a right to 
Social Security benefits.
  The Supreme Court rejected his claim, clearly stating:

       To engraft upon the Social Security system a concept of 
     ``accrued property rights'' would deprive it of the 
     flexibility and boldness in adjustment to ever changing 
     conditions which it demands.

  The Court also held:

       It is apparent that the non-contractual interest of an 
     employee covered by the [Social Security] Act cannot be 
     soundly analogized to that of the holder of an annuity, whose 
     right to benefits is bottomed on his contractual premium 
     payments.

  It strikes me that these Supreme Court decisions prove that if Social 
Security is considered more of a welfare program, there is no assurance 
that retirees will receive benefits now or in the future if they are 
judged unworthy, or if the IOUs owed to the Social Security Trust Funds 
are deemed unnecessary to repay. It also shows, contrary to common 
belief, that Social Security is not backed by the full faith and credit 
of the government and is not a government-guaranteed investment. I 
believe these decisions--which we rarely see referenced, for obvious 
reasons--are unfair and wrong, and must be corrected.
  In my view, workers must have a full legal right to receive 
government-guaranteed Social Security benefits. The reason is simple: 
despite these court cases, I believe most people think that the federal 
government should provide benefits to the American people for their 
retirement, if those people have paid into the system. It's our moral 
and contractual duty to honor that commitment, and ensure the program 
is more of an insurance policy than a welfare program. Coming 
demographic changes will soon create huge cracks in the Social Security 
program--if the government fails to make the changes necessary to 
address the crisis ahead, it would be wrong to let current or future 
beneficiaries bear that burden.
  As a first step to saving Social Security, legislation I am 
introducing today would grant every current and future Social Security 
beneficiary an ``earned right,'' or legal right, to their Social 
Security benefits plus an accurate inflation adjustment. This could be 
achieved by requiring the government to issue U.S. Treasury-backed 
certificates specifying the level of guaranteed benefits.
  Mr. President, this legislation, the Social Security Benefits 
Guarantee Act, is not at all complicated. All it does is to create an 
``earned right'' to Social Security, which every American deserves and 
should be given in the first place. It shows that regardless of how we 
may reform the system in the future, retirees will earn a return on the 
investment they make in the form of payroll taxes.
  By granting Americans this legal right, we are taking away 
uncertainties resulting from the growing political debate. Social 
Security will no longer be subject to Washington's manipulation, and 
the IOUs will be repaid. Implementing my legislation would force 
Congress and the Administration to come up with an honest plan to save 
and strengthen the Social Security system.
  But more importantly, it would put millions of current and future 
Social Security beneficiaries at ease, allowing them to sleep at night 
without fearing the loss or reduction of their retirement benefits.
  Mr. President, once we have secured Social Security benefits, taking 
the difficult steps to reform the Social Security system will be 
easier. The current system has served us well until now. The changing 
demographics of our society makes it impossible for the system to 
survive without reform. I believe a fully-funded, market-based, 
personalized retirement system would give all workers full property 
rights to their retirement investment.
  Not only could personal retirement account, or PRA, benefits be three 
to five times higher than current Social Security benefits, workers 
would actually own the money in their account and could pass the assets 
on to their children. It would be part of your estate, which today, as 
you know, Social Security does not transfer. Congress would no longer 
spend the surplus money.
  That's the reason I am today re-introducing my legislation, the 
``Personal Security and Wealth in Retirement Act.''
  Mr. President, Americans today are living longer and retiring earlier 
than ever before. American retirement security is supposedly built on a 
three-legged stool: Social Security, private pensions, and personal 
savings. These are the three cornerstones of a secure retirement.
  Unfortunately, today these cornerstones have eroded. Without major 
repair, the stool will collapse, causing serious financial hardship for 
millions of Americans.
  Most Americans rely increasingly on Social Security for their 
retirement income. Not everyone has a private pension and some are 
unable to save. Yet Social Security, upon which rests their hopes for a 
secure retirement, is headed for bankruptcy.
  Benefits for 76 million baby boomers and future generations of 
retirees will not be there unless something is done soon.
  I believe the best solution to our retirement crisis is to reform 
Social Security by moving it from a pay-as-you-go retirement system to 
a fully-funded, market based system. The legislation I am introducing 
today will do just that.
  The first criticism you will hear is that a market-based retirement 
system is too risky. However, my plan would guarantee benefits for 
current and future beneficiaries, while retaining and expanding the 
current safety net under Social Security.

[[Page 10628]]

  At the same time, workers would have the freedom to control their 
funds and resources for their own retirement security within certain 
safety and soundness parameters. Workers and their employers could 
divert 10 percent of a worker's income into personal retirement 
accounts.
  In addition, workers could also contribute to personal retirement 
accounts they've established for their non-working children.
  Let me focus on the proposed safety net provisions under my plan: One 
key component of my proposal is to ensure that a safety net will be 
there at all times for disadvantaged individuals. This can be done 
without government guarantees of investments or overly strict 
regulation of investment options.
  Under this legislation, a safety net would be set up and would 
involve a guaranteed minimum benefit level: 150 percent of the poverty 
level. When a worker retires, if his or her PRA fails to provide the 
minimum retirement benefits for whatever reason the government would 
make up the difference. So nobody would retire into poverty. They would 
retire at least with a minimum of 150 percent of the poverty level.
  The same applies to survivor and disability benefits. If a worker 
dies or becomes disabled, and his or her PRA doesn't accumulate 
sufficient funds to provide minimum survivor and disability benefits, 
the government would match the shortfalls.
  This simple safety net is necessary, and the minimum benefit would 
guarantee that no one in our society would be left impoverished in 
retirement, while still allowing workers to enjoy the freedom and 
prosperity achievable under a market-based retirement system.
  This would operate in a manner similar to the federal government's 
Thrift Savings program, which includes safe investments and a far 
higher return than Social Security. If the system works for us, others 
should also be able to benefit from it.
  Another feature of the fully funded retirement system I'm outlining 
could provide better survivor and disability benefits than the current 
Social Security system offers.
  Under my plan, for instance, when a worker dies, his family would 
inherit all the funds accumulated in his PRA.
  I use my father as an example. He died at the age of 61, and from 
Social Security received a check for $253 as a death benefit. But that 
was all. Under our system, all the money that you have paid in during a 
lifetime of working would be yours. And, if you happen to die early, it 
would then be a part of your estate and transferred to your heirs. The 
savings wouldn't disappear into the black hole of the Social Security 
trust funds, or become tangled in a survivors' benefit bureaucratic 
debate.
  The system would also provide, besides the retirement savings, a 
survivors benefit package.
  My plan requires the funds that manage PRAs to use part of their 
annual contribution or yield to buy life and disability insurance, 
supplementing their accumulated funds to at least match the promised 
Social Security survivors and disability benefits.
  By requiring retirement funds to purchase life and disability 
insurance for everyone, all workers in each individual fund would be 
treated as a common pool for underwriting purposes. The insurance would 
be purchased as a group policy not by individual workers by investment 
firms or financial institutions, thus avoiding insurance policy 
underwriting discrimination while providing the largest amount of 
benefits at the lowest possible cost.
  Mr. President, again, a major criticism of a market-based personal 
retirement account system is that it's inherently volatile, subject to 
the whims of investors and the market, exposing a worker's retirement 
income to unnecessary risks.
  My plan specifically addresses this concern by requiring the approved 
investment firms and financial institutions that manage PRAs to have 
insurance against investment loss.
  By approximating the role of the FDIC, we ensure that every PRA would 
generate a minimum rate of return of at least 2.5 percent, which is 
more than current Social Security benefits. In fact, Social Security is 
paying less than 1 percent today, and for future generations it would 
actually be a negative rate of return.
  Regardless of the ups and downs of the markets, workers would still 
do better under this system than under the current Social Security 
program.
  This is another safety net built into my plan to give the American 
people peace of mind when it comes to their retirement investment.
  To further reduce risks to a worker's PRA, my legislation also 
requires that rules, regulations, and restrictions similar to those 
governing IRAs would apply to personal retirement accounts.
  PRAs must be properly structured and follow strict, sensible 
guidelines set forth by the independent federal board that will oversee 
the system.
  In choosing qualified investment firms and financial institutions to 
manage the PRAs, the oversight board is responsible for examining the 
credibility and ability of these companies, and then approving them as 
PRA managers accordingly. In other words, to put in place a very safe 
and sound retirement system, much like the FDIC is in banks. People are 
confident their savings is protected. This would be the same with their 
retirement accounts. They would be protected. This will generate much 
better returns, as much as three to five times more at retirement than 
today's Social Security--three to fives times more benefits when you 
retire than under the current Social Security plan because personal 
retirement accounts, unlike Social Security, make real investments 
which produce new income and produce wealth.
  That means improved benefits for everybody, including low-wage 
earners, without the redistribution of private income.
  Mr. GRAMS. The third bill I am introducing today deals with the flow 
of information related to an individual's Social Security contribution.
  Most working Americans are poorly prepared for their retirement. That 
is because of a disturbing lack of information. Congress needs to help 
them better plan for retirement by providing useful and accurate 
information about the Social Security benefits they are going to 
receive.
  In other words, let people know exactly what the system is, how much 
is in the trust fund, how much money they can expect to receive at 
retirement, and what will be the rate of return of their investment.
  Americans currently receive Social Security information through the 
personal earnings and benefits estimate statements or the PEBES, 
provided by the Social Security Administration. However, a recent GAO 
report shows that the report, although useful, is actually incomplete 
and it is difficult for many Americans to understand exactly what is in 
the account for them at Social Security.
  As a result, many workers, even those near retirement, continue to 
overestimate their likely Social Security benefits, which, bottom line, 
threatens their quality of life throughout their retirement years.
  Social Security taxes are the largest tax that many families will 
ever pay. It will account for up to one-eighth of the total lifetime 
income they will make. Few Americans know the value or the yield of 
their investment, because the Government never tells them the whole 
truth about Social Security by providing them with this key 
information. Reliable information on Social Security is crucial to 
enable Americans to better understand the value of their Social 
Security investment and to help them determine exactly how much they 
should supplement their expected Social Security benefits with other 
savings in order to have a certain level of retirement security.
  This is particularly important for some ethnic minorities, because 
research shows that African Americans have lower rates of return from 
Social Security. They get less back from the system than others who pay 
in. Low-income, single, African American males have a negative rate of 
return today. As I said, overall it is about a 1 percent rate of 
return. For many, it will be a negative rate of return. But for low-
income, single, African American males

[[Page 10629]]

today, they already have a negative rate of return on the money they 
pay into the system.
  My bill would improve the reports by requiring the Social Security 
Administration to provide an estimate of the Social Security benefits a 
worker is going to receive in terms of inflation-adjusted dollars, as 
well as an estimated rate of return the worker is projected to receive 
from Social Security.
  In real dollars, it means today if you are 20 years old, the report 
says when you retire you could expect to receive about $98,000 a year 
in retirement benefits. You say, that is great, 98,000 a year; but if 
you take in the inflation-adjusted amount throughout those 40 years in 
buying power, it would be less than $14,000 in today's money.
  So you need to know exactly what you are going to get at retirement 
and what the buying power of those dollars is going to be 40 years from 
now so that you can make better plans on how you are going to plan for 
your retirement.
  Given the crucial role of information about Social Security in 
retirement planning and the fact that, beginning this year, the 
statements from Social Security will be mailed annually to every 
eligible individual over 25, immediate improvement of these standards 
is imperative. These numbers are already going to be sent out, so this 
isn't an added cost, this isn't asking for a new program from the 
Government; this is saying that the report the Social Security 
Administration is going to send to every American over 25 needs to be 
more accurate than the information provided today.
  Information will not solve all the problems we have with Social 
Security, but I think it will surely give working Americans some useful 
tools to help them better plan for retirement.
  In closing, American workers labor mightily to put money aside for 
retirement. They should have full property rights to their money. They 
deserve the security of owning their retirement benefits and savings. 
My legislation gives American workers legal protection to their 
retirement savings. It will stop politicians from cutting their 
benefits to spend money in other unrelated programs out of our Social 
Security trust fund. It also allows American workers maximum freedom to 
better plan for their retirement by giving them more accurate 
information on their Social Security benefits.
  In closing, retirement security is essential to millions of Americans 
and we must do everything we can to help them achieve that security and 
the peace of mind that will go along with it.
  My legislation charts a course which I believe will lead us there.
                                 ______
                                 
      By Mr. BAUCUS (for himself, Mr. Lautenberg, Mrs. Lincoln, and Mr. 
        Daschle):
  S. 1105. A bill to assist local governments and States in assessing 
and remediating brownfield sites, increase fairness and reduce 
litigation, and for other purposes; to the Committee on Environment and 
Public Works.


   superfund litigation reduction and brownfield cleanup act of 1999

  Mr. BAUCUS. Mr. President, today, along with Senators Lautenberg, 
Lincoln, and Daschle, I am introducing legislation to reauthorize and 
reform the Superfund program, the Superfund Litigation Reduction and 
Brownfields Cleanup Act.
  The Environment and Public Works Committee has been working on 
Superfund reauthorization legislation for more than six years. It's 
time to finish the job. To my mind, the best way to accomplish this is 
to focus on a set of modest but important reforms about which we are 
likely to be able to achieve a broad bipartisan consensus.
  That is what our bill aims to do.
  Superfund has been criticized as creating disincentives for cleaning 
up ``brownfields''--generally, sites in older neighborhoods or 
industrial areas that are contaminated, but not to the extent that they 
are likely to be put on the National Priorities List. The main charge 
is that fear of Superfund liability makes some developers reluctant to 
invest.
  Title I of the bill addresses this concern. It eliminates Superfund 
liability for prospective purchasers of contaminated property who are 
not responsible for the contamination, and thereby removes a potential 
disincentive for brownfields cleanup. The bill also provides liability 
relief for current owners of contaminated property who are not 
responsible for and had no reason to know of the contamination when 
they acquired the property, and persons whose property is contaminated 
as a result of migration from neighboring property.
  In addition, the bill authorizes funding for three purposes:
  $35 million per year for five years for grants to local governments, 
States and Indian tribes to inventory and assess contamination at 
brownfield sites;
  $60 million per year for five years for grants to local governments, 
States and Indian tribes to capitalize revolving loan funds and for 
site cleanup; and
  $15 million per year for five years to States to develop and enhance 
voluntary cleanup programs.
  Perhaps the most well known criticism of Superfund relates to the 
toll it can take on small businesses that, despite their often minimal 
contribution of waste to a site, have been forced to incur significant 
sums in attorney fees and payments toward cleanup. A significant 
portion of small businesses that sent waste to a site sent only 
municipal waste or very small amounts of hazardous waste. In addition, 
many small businesses simply cannot afford to pay the costs associated 
with retaining an attorney and cleanup.
  To address these problems, the bill provides two liability 
exemptions.
  The first is an exemption for parties that sent a de micromis amount 
of hazardous waste--presumed to be less than 110 gallons of liquid 
material or 200 pounds of solid material. (Note that this provision is 
not limited to small businesses: it also would exempt a large company 
that sends only de micromis amounts of waste.)
  The second is an exemption for small business and homeowners that 
sent municipal solid waste from their home or business. There is no 
limit on the amount of municipal waste these parties sent.
  In addition, the bill provides relief for those who sent a relatively 
small amount of hazardous waste, but more than allowed under the de 
micromis exemption, and for small businesses with a limited ability to 
pay. Specifically, the bill provides expedited settlements for 
contributors of de minimis amounts of waste and persons with a limited 
ability to pay. These provisions require EPA to make settlement offers 
as expeditiously as practicable to these parties. A party who 
contributed 1% or less of the waste to the site is presumed to be de 
minimis.
  Together, these provisions would provide relief for virtually every 
small business and homeowner that should get relief. The bill also 
requires that EPA establish a small business Superfund assistance 
section within the small business ombudsman office of EPA.
  Under Superfund, contributors of municipal solid waste and municipal 
sewage sludge have been sued, and in some instances, found liable, 
based on the fact that even municipal waste contains some small amount 
of hazardous substances. At sites with municipal waste (such as 
municipal landfills), frequently the majority of waste by volume is 
municipal waste, but the conditions that result in listing the site on 
the NPL were caused by the more toxic industrial waste. Hence, there 
has long been controversy as to whether contributors of municipal 
waste, and municipalities that own municipal landfills on the NPL, 
should be treated the same as contributors of other waste.
  Last year EPA published a policy for settlements with municipal 
owners and operators of NPL landfills, and for public and private 
contributors of municipal waste. The policy was developed through 
negotiations with several municipal organizations.
  Our bill codifies EPA's policy. Under the provision, municipalities 
that own or operate landfills that are on the NPL are entitled to 
settle for 20% of the cleanup costs at a site, and for 10% if they have 
a population below 100,000.

[[Page 10630]]

Contributors of municipal waste, including municipalities and private 
parties, can settle for $5.30 a ton. This number was calculated based 
on the cost of cleaning up a municipal landfill that does not also have 
hazardous waste.
  Title IV provides exemptions for contributors of certain ``recyclable 
material''--paper, plastic, glass, textiles, rubber (other than whole 
tires), metal and batteries--that meet specified conditions. It is 
virtually identical to the Lott/Daschle bill in the 105th Congress. In 
particular, I appreciate the work of Senator Lincoln on this issue.
  Contributions of orphan funding from the Superfund can mitigate much 
of the perceived unfairness of the joint and several liability system. 
Allocation pilot studies conducted by EPA revealed that the most 
important tool for achieving settlements, and in the process reducing 
transaction costs, is for EPA to offer some contribution of funding to 
offset costs attributable to parties that are unable to pay.
  The bill authorizes $200 million per year for five years in mandatory 
spending to be used by EPA in cleanup settlements. It is so used to 
offset costs attributable to parties that are insolvent or defunct or 
otherwise unable to pay, or for other equitable purposes. This 
mandatory spending is conditional, however, on the Superfund cleanup 
program being appropriated at least $1.5 billion annually, exclusive of 
the $200 million for orphan funding. That so-called ``firewall'' is 
intended to ensure that cleanups are not sacrificed in order to pay 
orphan funding. Assuming the program is funded at the required level, 
EPA would be required to contribute $200 million per year to cleanup 
settlements. However, to maintain flexibility, EPA would have the 
discretion to determine how much of the $200 million to allocate to 
which sites.
  The bill authorizes appropriations of $7.5 billion over five years, 
or $1.5 billion a year. At this level, EPA would be able to maintain 
the current pace of cleanups, which is resulting in the completion of 
construction at 85 sites a year. Now that we finally are making good 
progress in cleaning up sites, its important to maintain this pace.
  On a related point, the bill continues to fund cleanups principally 
through the Superfund Trust Fund. In doing so, it assumes the 
reinstatement of the two Superfund taxes--the excise taxes on petroleum 
and chemical feedstocks and the corporate environmental tax of .12 
percent of corporate alternative minimum taxable income above $2 
million. By doing so, the bill would retain the current reliance on the 
trust fund to pay for the majority of cleanup costs, with a limited 
payment from general revenues.
  Mr. President, the chairmen of the Environment and Public Works 
Committee and its Superfund Subcommittee, Senators Chafee and Smith, 
also have introduced a Superfund reform bill, S. 1090. There are 
several areas of general agreement between the bill that we are 
introducing today and S. 1090. Some examples are the exemption for bona 
fide prospective purchasers and other exemptions intended to promote 
brownfields redevelopment; exemptions for contributors of recyclable 
material; and exemptions and expedited settlements for contributors of 
municipal waste or small amounts of hazardous waste, to protect 
municipalities and small businesses.
  There are, however, some significant differences between the 
approaches taken in the two bills, particularly with respect to 
providing an adequate federal safety net to protect public health and 
the environment, the allocation system, and, perhaps most 
significantly, providing adequate and assured funding to operate the 
program.
  I hope that we can work cooperatively and expeditiously to resolve 
these differences, so that we can pass a Superfund reauthorization bill 
with broad, bipartisan support.
  Mr. LAUTENBERG. Mr. President, I rise to introduce the Superfund 
Litigation Reduction and Brownfield Cleanup Act along with Senators 
Daschle, Baucus, and Lincoln. This bill will strengthen and improve the 
current Superfund program by cleaning up urban and rural brownfields 
and removing small, innocent parties from unnecessary superfund 
litigation.
  Unlike the alternative Superfund proposal offered by the Republicans 
on Environment and Public Works Committee, this bill continues what is 
best about the Superfund program and makes the minor adjustments 
necessary to make it cost effective.
  Mr. President, way back in the 103rd Congress, the critics of 
Superfund raised a number of issues. They asserted that the program was 
too slow, that not enough cleanups were taking place, that there was 
too much litigation.
  At the time, we were seeking solutions which would make the program 
faster, streamline cleanups, treat parties more fairly and get the 
little guys out earlier, all while keeping those responsible for the 
problem also responsible for cleaning it up. This was all within the 
general goals of achieving more cleanups and therefore providing better 
protection of human health and the environment.
  I am proud of those proposals, and many of us still on the 
Environment and Public Works Committee, including Chairman Chafee, who 
voted for that bill way back in the 103rd Congress should also be 
proud. Many of those proposals, although never enacted into law, were 
adopted administratively by EPA and radically altered the Superfund 
Program as we know it.
  Others have been tested and been improved upon. In general, the 
thrust of this bill has resulted in many of the achievements of the 
current program.
  According to a report issued by the General Accounting Office, by the 
end of this fiscal year all cleanup remedies will have been selected 
for 95 percent of nonfederal NPL sites (1,109 of 1,169 sites).
  In addition, approximately 990 NPL sites have final cleanup plans 
approved, approximately 5,600 emergency removal actions have been taken 
at hazardous waste sites to stabilize dangerous situations and to 
reduce the threat to human health and the environment.
  More than 30,900 sites have been removed from the Superfund inventory 
of potential waste sites, to help promote the economic redevelopment of 
these properties.
  During this same time, EPA has worked to improve the fairness and 
efficiency of the enforcement program, even while keeping up the 
participation of potentially responsible parties in cleaning up their 
sites.
  EPA has negotiated more than 400 deminimis settlements with over 
18,000 small parties, which gave protection for these parties against 
expensive contribution suits brought by other private parties. Sixty 
six percent of these have been in the last four years alone.
  Since fiscal year 1996, EPA has offered ``orphan share'' compensation 
of over $145 million at 72 sites to responsible parties who were 
willing to step up and negotiate settlements of their cases. EPA is now 
offering this at every single settlement, to reward settlors and reduce 
litigation, both with the government, and with other private parties.
  These are just a few highlights of the improvements made in the 
program, many drawn from our earlier legislative proposals. Other 
improvements, such as instituting the targeted review of complex and 
high-cost cleanups, prior to remedy selection, have reduced the cost of 
cleanups without delaying the pace of cleanups.
  EPA's administrative reforms have significantly improved the program, 
by speeding up cleanups and reducing senseless litigation, and making 
the program fairer, faster and more efficient overall.
  But despite the fact that this is a program that has finally really 
hit its stride, we are now faced with proposals from the majority which 
could undercut the progress in the program, and which are premised on a 
goal of closing down the program rather than a goal of cleaning up the 
sites. Indeed, the very title of their bill, the Superfund Program 
Completion Act, reflects this intent.
  I am deeply troubled by many of the provisions in the Republican 
bill, which would have the effect of ramping

[[Page 10631]]

the program down without regard to the amount of site work left to be 
done. This bill provides for lowered funding levels, a cap on the NPL, 
waivers of the federal safety net, and some broad liability exemptions.
  At the same time, it creates a number of new, expensive obligations 
which would further reduce the amount of money available for cleanup. 
It also shifts the costs of the program to the taxpayers and would not 
include an extension of the Superfund tax.
  In short, while I am encouraged by the fact that the Republican bill 
drops some troubling provisions from prior bills, it introduces a whole 
set of new issues that are cause for great concern.
  I think it is very clear that what we need here is a better Superfund 
program, not a retreat from tackling our environmental problems.
  We need a bill that continues to accelerate the pace of cleanups, 
keeps cleanups protective, reduces litigation and transaction costs, is 
affordable and does not shift costs to the American taxpayer.
  That is why I am introducing the Superfund Litigation Reduction and 
Brownfield Cleanup Act of 1999. I believe that this bill, is in some 
areas very close to the provisions supported by my Republican 
colleagues, but differs in some critical areas.
  It would protect cleanups, reduce litigation and not shift costs to 
the American taxpayer.
  I hope that these are goals we can agree on. And I urge my colleagues 
to not throw the Superfund baby out with the bathwater.
  I look forward to working with my colleagues to strengthen the 
Superfund program in the 21st century not dismantle it.
  I ask unanimous consent that the bill and a summary of the 
Legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1105

       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 ``Superfund 
     Litigation Reduction and Brownfield Cleanup Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                 TITLE I--BROWNFIELDS LIABILITY RELIEF

Sec. 101. Finality for buyers.
Sec. 102. Finality for owners and sellers.
Sec. 103. Regulatory authority.

               TITLE II--SMALL BUSINESS LIABILITY RELIEF

Sec. 201. Liability exemptions.
Sec. 202. Expedited settlement for de minimis contributions and limited 
              ability to pay.
Sec. 203. Small business ombudsman.

TITLE III--SETTLEMENTS FOR MUNICIPALITIES AND CONTRIBUTORS OF MUNICIPAL 
                                 WASTE

Sec. 301. Municipal owners and operators.
Sec. 302. Expedited settlements with contributors of municipal waste.

    TITLE IV--CLARIFICATION OF LIABILITY FOR RECYCLING TRANSACTIONS

Sec. 401. Recycling transactions.

                      TITLE V--BROWNFIELDS CLEANUP

Sec. 501. Brownfields funding.
Sec. 502. Research, development, demonstration, and training.
Sec. 503. State voluntary cleanup programs.
Sec. 504. Audits.

                    TITLE VI--SETTLEMENT INCENTIVES

Sec. 601. Fairness in settlements.

                           TITLE VII--FUNDING

Sec. 701. Authorization of appropriations.
Sec. 702. Funding for cleanup settlements.
Sec. 703. Agency for Toxic Substances and Disease Registry.
Sec. 704. Brownfields.
Sec. 705. Authorization of appropriations from general revenues.
Sec. 706. Worker training and education grants.

                        TITLE VIII--DEFINITIONS

Sec. 801. Definitions.

                 TITLE I--BROWNFIELDS LIABILITY RELIEF

     SEC. 101. FINALITY FOR BUYERS.

       (a) Limitations on Liability.--Section 107 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9607) is amended by adding 
     at the end the following:
       ``(o) Limitation on Liability for Prospective Purchasers.--
     Notwithstanding paragraphs (1) through (4) of subsection (a), 
     to the extent the liability of a person, with respect to a 
     release or the threat of a release from a facility, is based 
     solely on subsection (a)(1), the person shall not be liable 
     under this Act if the person--
       ``(1) is a bona fide prospective purchaser of the facility; 
     and
       ``(2) does not impede the performance of any response 
     action or natural resource restoration at a facility.''.
       (b) Prospective Purchaser and Windfall Lien.--Section 107 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (as amended by subsection (a)) is 
     amended by adding at the end the following:
       ``(p) Prospective Purchaser and Windfall Lien.--
       ``(1) In general.--In any case in which the United States 
     has incurred unrecovered response costs at a facility for 
     which an owner of the facility is not liable by reason of 
     subsection (o), and the conditions described in paragraph (3) 
     are met, the United States shall--
       ``(A) have a lien on the facility; or
       ``(B) may obtain, from the appropriate responsible party or 
     parties, a lien on other property or other assurances of 
     payment satisfactory to the Administrator, for the 
     unrecovered costs.
       ``(2) Amount; duration.--The lien shall--
       ``(A) be for an amount not to exceed the lesser of the 
     amount of--
       ``(i) the response costs of the United States; or
       ``(ii) the increase in fair market value of the property 
     attributable to the response action at the time of a 
     subsequent sale or other disposition of the property;
       ``(B) arise at the time costs are first incurred by the 
     United States with respect to a response action at the 
     facility;
       ``(C) be subject to the requirements for notice and 
     validity specified in subsection (l)(3); and
       ``(D) continue until the earlier of satisfaction of the 
     lien or recovery of all response costs incurred at the 
     facility, notwithstanding any statute of limitations under 
     section 113.
       ``(3) Conditions.--The conditions referred to in paragraph 
     (1) are the following:
       ``(A) Response action.--A response action for which the 
     United States has incurred unrecovered costs of a response 
     not inconsistent with the National Contingency Plan is 
     carried out at the facility.
       ``(B) Fair market value.--The response action increases the 
     fair market value of the facility above the fair market value 
     of the facility that existed before the response action was 
     commenced.
       ``(4) Settlement.--Nothing in this subsection prevents the 
     United States and the purchaser from entering into a 
     settlement at any time that extinguishes a lien of the United 
     States.''.
       (c) Definition of Bona Fide Prospective Purchaser.--Section 
     101 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601) is 
     amended by adding at the end the following:
       ``(39) Bona fide prospective purchaser.--The term `bona 
     fide prospective purchaser' means a person or a tenant of a 
     person that acquires ownership of a facility after the date 
     of enactment of this paragraph that can establish each of the 
     following by a preponderance of the evidence:
       ``(A) Disposal prior to acquisition.--All active disposal 
     of hazardous substances at the facility occurred before the 
     person acquired the facility.
       ``(B) Inquiry.--
       ``(i) In general.--The person made all appropriate inquiry 
     into the previous ownership and uses of the facility in 
     accordance with generally accepted good commercial and 
     customary standards and practices.
       ``(ii) Standards.--The standards and practices referred to 
     in clause (ii) of paragraph (35)(B) or those issued or 
     designated by the Administrator under that clause shall 
     satisfy the requirements of this subparagraph.
       ``(iii) Residential property.--In the case of property in 
     residential or other similar use at the time of purchase by a 
     nongovernmental or noncommercial entity, a site inspection 
     and title search that reveal no basis for further 
     investigation shall satisfy the requirements of this 
     subparagraph.
       ``(C) Notices.--The person provided all legally required 
     notices with respect to the discovery or release of any 
     hazardous substances at the facility.
       ``(D) Care.--The person exercised appropriate care with 
     respect to hazardous substances found at the facility by 
     taking reasonable steps to--
       ``(i) stop ongoing releases;
       ``(ii) prevent threatened future releases of hazardous 
     substances; and
       ``(iii) prevent or limit human, environmental, or natural 
     resource exposure to hazardous substances previously released 
     into the environment.
       ``(E) Cooperation, assistance, and access.--The person--
       ``(i) provides full cooperation, assistance, and access to 
     the persons that are authorized to conduct the response and 
     restoration actions at the facility, including the 
     cooperation and access necessary for the assessment of 
     contamination, installation, preservation of integrity, 
     operation, and maintenance of

[[Page 10632]]

     any complete or partial response action at the facility; and
       ``(ii) has fully complied and is in full compliance with 
     any land use or activity restrictions on the property 
     established or relied on in connection with a response action 
     at the facility, including informing any other party that the 
     person allows to occupy or use the property of the 
     restrictions and taking prompt action to correct any 
     noncompliance by the party.
       ``(F) Relationship.--
       ``(i) In general.--The person is not liable or affiliated 
     with any other person that is potentially liable for response 
     costs at the facility through any direct or indirect familial 
     relationship, or any contractual, corporate, or financial 
     relationship other than that created by the instruments by 
     which title to the facility is conveyed or financed.
       ``(ii) Reorganization.--An entity that results from the 
     reorganization of a business entity that is potentially 
     liable does not qualify as a bona fide prospective purchaser 
     with respect to a purchase or transfer of property directly 
     or indirectly from the potentially liable entity.''.

     SEC. 102. FINALITY FOR OWNERS AND SELLERS.

       (a) Knowledge of Inquiry Requirement for Innocent 
     Landowners.--Section 101(35) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(35)) is amended--
       (1) in subparagraph (A), by striking ``, unless'' and 
     inserting ``. An owner or operator of a facility may only 
     assert under section 107(b)(3) that an act or omission of a 
     previous owner or operator of that facility did not occur in 
     connection with a contractual relationship if''; and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Knowledge of inquiry requirement.--
       ``(i) Definition of contamination.--In this subparagraph, 
     the term `contamination' means an existing release, a past 
     release, or the threat of a release of a hazardous substance.
       ``(ii) Requirement.--

       ``(I) Inquiry.--To establish that the defendant had no 
     reason to know (under subparagraph (A)(i)), the defendant 
     must have made, at the time of the acquisition, all 
     appropriate inquiry (as well as comply with clause (vii)) 
     into the previous ownership and uses of the facility, 
     consistent with good commercial or customary practice in an 
     effort to minimize liability.
       ``(II) Considerations.--For the purpose of subclause (I) 
     and until the President issues or designates standards as 
     provided in clause (iv), the court shall take into account--

       ``(aa) any specialized knowledge or experience on the part 
     of the defendant;
       ``(bb) the relationship of the purchase price to the value 
     of the property if uncontaminated;
       ``(cc) commonly known or reasonably ascertainable 
     information about the property;
       ``(dd) the obviousness of the presence or likely presence 
     of contamination at the property; and
       ``(ee) the ability to detect the contamination by 
     appropriate investigation.
       ``(iii) Conduct of site assessment.--A person who has 
     acquired real property shall be considered to have made all 
     appropriate inquiry within the meaning of clause (ii)(I) if--

       ``(I) the person establishes that, not later than 180 days 
     before the date of acquisition, a site assessment of the real 
     property was conducted that meets the requirements of clause 
     (iv); and

       ``(II) the person complies with clause (vii).

       ``(iv) Site assessment standards.--

       ``(I) In general.--A site assessment meets the requirements 
     of this clause if the assessment is conducted in accordance 
     with the standards set forth in the American Society for 
     Testing and Materials (ASTM) Standard E1527-94, entitled 
     `Standard Practice for Environmental Site Assessments: Phase 
     I Environmental Site Assessment Process' or with any 
     alternative standards issued by regulation by the President 
     or issued or developed by other entities and designated by 
     regulation by the President.
       ``(II) Study of practices.--Before issuing or designating 
     alternative standards under subclause (I), the President 
     shall conduct a study of commercial and industrial practices 
     concerning site assessments in the transfer of real property 
     in the United States.

       ``(v) Considerations in issuing standards.--In issuing or 
     designating any standards under clause (iv), the President 
     shall consider requirements governing each of the following:

       ``(I) Conduct of an inquiry by an environmental 
     professional.
       ``(II) Interviews of each owner, operator, and occupant of 
     the property to determine information regarding the potential 
     for contamination.
       ``(III) Review of historical sources as necessary to 
     determine each previous use and occupancy of the property 
     since the property was first developed. In this subclause, 
     the term `historical sources' means any of the following, if 
     reasonably ascertainable: each recorded chain of title 
     document regarding the real property, including each deed, 
     easement, lease, restriction, and covenant, any aerial 
     photograph, fire insurance map, property tax file, United 
     States Geological Survey 7.5 minutes topographic map, local 
     street directory, building department record, and zoning/land 
     use record, and any other source that identifies a past use 
     or occupancy of the property.
       ``(IV) Determination of the existence of any recorded 
     environmental cleanup lien against the real property that has 
     arisen under any Federal, State, or local law.
       ``(V) Review of reasonably ascertainable Federal, State, 
     and local government records of any facility that is likely 
     to cause or contribute to contamination at the real property, 
     including, as appropriate--

       ``(aa) any investigation report for the facility;
       ``(bb) any record of activities likely to cause or 
     contribute to contamination at the real property, including 
     any landfill or other disposal location record, underground 
     storage tank record, hazardous waste handler and generator 
     record, and spill reporting record; and
       ``(cc) any other reasonably ascertainable Federal, State, 
     and local government environmental record that could reflect 
     an incident or activity that is likely to cause or contribute 
     to contamination at the real property.

       ``(VI) A visual site inspection of the real property and 
     each facility and improvement on the real property and a 
     visual site inspection of each immediately adjacent property, 
     including an investigation of any hazardous substance use, 
     storage, treatment, or disposal practice on the property.
       ``(VII) Any specialized knowledge or experience on the part 
     of the person that acquired the property.
       ``(VIII) The relationship of the purchase price to the 
     value of the property if uncontaminated.

       ``(IX) Commonly known or reasonably ascertainable 
     information about the property.
       ``(X) The obviousness of the presence or likely presence of 
     contamination at the property, and the ability to detect the 
     contamination by appropriate investigation.

       ``(vi) Reasonably ascertainable.--A record shall be 
     considered to be reasonably ascertainable for purposes of 
     clause (v) if a copy or reasonable facsimile of the record is 
     publicly available by request (within reasonable time and 
     cost constraints) and the record is practicably reviewable.
       ``(vii) Appropriate inquiry.--A person shall not be treated 
     as having made all appropriate inquiry under clause (ii)(I) 
     unless--

       ``(I) the person has maintained a compilation of the 
     information reviewed and gathered in the course of any site 
     assessment;
       ``(II) with respect to hazardous substances found at the 
     facility, the person, at a minimum, takes reasonable steps 
     to--

       ``(aa) stop ongoing releases of hazardous substances;
       ``(bb) prevent threatened future releases of hazardous 
     substances; and
       ``(cc) prevent or limit human, environmental, or natural 
     resource exposure to hazardous substances previously released 
     into the environment;

       ``(III) the person provides full cooperation, assistance, 
     and facility access to such persons as are authorized to 
     conduct response actions at the facility, including the 
     cooperation and access necessary for the installation, 
     integrity, operation, and maintenance of any complete or 
     partial response action at the facility; and
       ``(IV) the person has fully complied with and is in full 
     compliance with any land use or activity restrictions on the 
     property established or relied on in connection with a 
     response action at the facility, including informing any 
     other party that the person allows to occupy or use the 
     property of such restrictions and taking prompt action to 
     correct any noncompliance by such parties.

       ``(viii) Site inspection and title search.--In the case of 
     property for residential use or other similar use purchased 
     by a nongovernmental or noncommercial entity, a site 
     inspection and title search that reveal no basis for further 
     investigation shall satisfy the requirements of clause 
     (ii).''.
       (b) Limitation on Liability for Contiguous Property 
     Owners.--Section 107 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607) (as amended by section 101(b)) is amended by adding at 
     the end the following:
       ``(q) Contiguous Properties.--
       ``(1) In general.--A person that owns or operates real 
     property that is contiguous to or otherwise similarly 
     situated with respect to other real property that is not 
     owned or operated by that person and that is or may be 
     contaminated by a release or threatened release of a 
     hazardous substance from the other real property shall not be 
     considered to be an owner or operator of a vessel or facility 
     under paragraph (1) or (2) of subsection (a) solely by reason 
     of the contamination if such person establishes by a 
     preponderance of the evidence that--
       ``(A) the person did not cause, contribute, or consent to 
     the release or threatened release;
       ``(B) the person is not affiliated with any other person 
     that is liable or potentially liable for any response costs 
     at the facility;
       ``(C) with respect to hazardous substances on or under the 
     person's property, the person, at a minimum, takes reasonable 
     steps to--

[[Page 10633]]

       ``(i) stop ongoing releases;
       ``(ii) prevent threatened future releases of hazardous 
     substances; and
       ``(iii) prevent or limit human, environmental, or natural 
     resource exposure to hazardous substances previously released 
     into the environment;
       ``(D) the person provides full cooperation, assistance, and 
     access to the persons that are authorized to conduct the 
     response and restoration actions at the facility, including 
     the cooperation and access necessary for the assessment of 
     contamination, or installation, preservation of integrity, 
     operation, and maintenance of any complete or partial 
     response action at the facility;
       ``(E) the person has fully complied and is in full 
     compliance with any land use or activity restrictions on the 
     property established or relied on in connection with a 
     response action at the facility, including informing any 
     other party that the person allows to occupy or use the 
     property of the restrictions and taking prompt action to 
     correct any noncompliance by the party;
       ``(F) the person provided all legally required notices with 
     respect to the discovery of the release; and
       ``(G) at the time the person acquired the property, the 
     person--
       ``(i) conducted all appropriate inquiry within the meaning 
     of subparagraph (B) of section 101(35); and
       ``(ii) did not know or have reason to know that the 
     property was or could be contaminated by a release or 
     threatened release of hazardous substances from other real 
     property not owned or operated by that person.
       ``(2) Assurances.--The President may issue an assurance 
     that no enforcement action under this Act shall be initiated 
     against a person described in paragraph (1).
       ``(3) Groundwater.--With respect to hazardous substances in 
     groundwater beneath the person's property solely as a result 
     of subsurface migration in an aquifer from a source or 
     sources outside the property, paragraph (1)(C) shall not 
     require that the person conduct groundwater investigations or 
     install groundwater remediation systems, except in accordance 
     with the policy of the Environmental Protection Agency on 
     owners of property containing contaminated aquifers, dated 
     May 24, 1995.
       ``(4) Bona fide prospective purchaser.--Any person that 
     does not qualify as a person described in paragraph (1) 
     because the person had the knowledge specified paragraph 
     (1)(G) at the time of acquisition of the real property may 
     qualify as a bona fide prospective purchaser under section 
     101(39) if the person is otherwise described in that section.
       ``(5) No limitation on defenses.--Nothing in this 
     subsection--
       ``(A) limits defenses to liability that otherwise may be 
     available to persons described in this subsection; or
       ``(B) imposes liability not otherwise imposed by section 
     107(a) on such persons.''.

     SEC. 103. REGULATORY AUTHORITY.

       (a) In General.--The Administrator may--
       (1) issue such regulations as the Administrator considers 
     necessary to carry out the amendments made by this title; and
       (2) assign any duties or powers imposed on or assigned to 
     the Administrator by the amendments made by this title.
       (b) Authority to Clarify and Implement.--The authority 
     under subsection (a) includes authority to clarify or 
     interpret all terms, including the terms used in this title, 
     and to implement any provision of the amendments made by this 
     title.

               TITLE II--SMALL BUSINESS LIABILITY RELIEF

     SEC. 201. LIABILITY EXEMPTIONS.

       Section 107 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9607) (as 
     amended by section 102(b)) is amended by adding at the end 
     the following:
       ``(r) De Micromis Exemption.--
       ``(1) In general.--Notwithstanding paragraphs (1) through 
     (4) of subsection (a), and except as provided in paragraph 
     (2), a person shall not be liable under this Act to the 
     United States or any other person (including liability for 
     contribution) for any response costs incurred with respect to 
     a facility if--
       ``(A) liability is based solely on paragraph (3) or (4) of 
     subsection (a);
       ``(B) the total of materials containing a hazardous 
     substance that the person arranged for disposal or treatment 
     of, arranged with a transporter for transport for disposal or 
     treatment of, or accepted for transport for disposal or 
     treatment, at the facility, was less than 110 gallons of 
     liquid materials or less than 200 pounds of solid material, 
     or such greater quantity as the Administrator may determine 
     by regulation; and
       ``(C) the acts on which liability is based took place 
     before May 1, 1999.
       ``(2) Exception.--Paragraph (1) shall not apply in a case 
     in which the Administrator determines that--
       ``(A) the material containing a hazardous substance 
     referred to in paragraph (1) contributed or could contribute 
     significantly, individually or in the aggregate, to the cost 
     of the response action with respect to the facility; or
       ``(B) the person has failed to comply with any request for 
     information or administrative subpoena issued by the 
     President under this Act or has impeded or is impeding the 
     performance of a response action with respect to the 
     facility.
       ``(s) Municipal solid waste exemption.--
       ``(1) In general.--Notwithstanding paragraphs (1) through 
     (4) of subsection (a), and except as provided in paragraph 
     (2), a person shall not be liable under this Act to the 
     United States or any other person (including liability for 
     contribution) for response costs incurred with respect to a 
     facility to the extent that--
       ``(A) liability is based on paragraph (3) or (4) of 
     subsection (a);
       ``(B) liability is based on an arrangement for disposal or 
     treatment of, an arrangement with a transporter for transport 
     for disposal or treatment of, or an acceptance for transport 
     for disposal or treatment at a facility of, municipal solid 
     waste; and
       ``(C) the person is--
       ``(i) an owner, operator, or lessee of residential property 
     from which all of the person's municipal solid waste was 
     generated with respect to the facility;
       ``(ii) a business entity (including any parent, subsidiary, 
     or other affiliate of the entity) that, during the taxable 
     year preceding the date of transmittal of written 
     notification that the business is potentially liable, 
     employed not more than 100 individuals, and from which was 
     generated all of the entity's municipal solid waste with 
     respect to the facility; or
       ``(iii) a small nonprofit organization that, during the 
     taxable year preceding the date of transmittal of written 
     notification that the organization is potentially liable, 
     employed not more than 100 individuals, if the particular 
     chapter, office, or department employing fewer than 100 
     individuals was the location from which was generated all of 
     the municipal solid waste attributable to the organization 
     with respect to the facility.
       ``(2) Exception.--Paragraph (1) shall not apply in a case 
     in which the President determines that the person has failed 
     to comply with any request for information or administrative 
     subpoena issued by the President under this Act or has 
     impeded or is impeding the performance of a response action 
     with respect to the facility.''.

     SEC. 202. EXPEDITED SETTLEMENT FOR DE MINIMIS CONTRIBUTIONS 
                   AND LIMITED ABILITY TO PAY.

       (a) Parties Eligible.--Section 122(g) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9622(g)) is amended--
       (1) in paragraph (1), by redesignating subparagraph (B) as 
     subparagraph (E);
       (2) by striking ``(g)'' and all that follows through the 
     end of paragraph (1)(A) and inserting the following:
       ``(g) Expedited Final Settlement.--
       ``(1) Parties eligible.--
       ``(A) In general.--The President shall, as expeditiously as 
     practicable, notify of eligibility for a settlement, and 
     offer to reach a final administrative or judicial settlement 
     with, each potentially responsible party that, in the 
     judgment of the President, meets 1 or more of the conditions 
     stated in subparagraphs (B), (C), (F), and (G).
       ``(B) De minimis contribution.--The condition stated in 
     this subparagraph is that the liability of the potentially 
     responsible party is for response costs based on paragraph 
     (3) or (4) of subsection (a) and the potentially responsible 
     party's contribution of hazardous substances at a facility is 
     de minimis. For the purposes of this subparagraph, a 
     potentially responsible party's contribution shall be 
     considered to be de minimis only if the President determines 
     that both of the following criteria are met:
       ``(i) The quantity of material containing a hazardous 
     substance contributed by the potentially responsible party to 
     the facility is minimal relative to the total quantity of 
     material containing hazardous substances at the facility. The 
     quantity of a potentially responsible party's contribution 
     shall be presumed to be minimal if the quantity is 1 percent 
     or less of the total quantity of materials containing 
     hazardous substances at the facility, unless the 
     Administrator identifies a different threshold based on site-
     specific factors.
       ``(ii) The material containing a hazardous substance 
     contributed by the potentially responsible party does not 
     present toxic or other hazardous effects that are 
     significantly greater than the toxic or other hazardous 
     effects of other material containing hazardous substances at 
     the facility.
       ``(C) Reduction in settlement amount based on limited 
     ability to pay.--
       ``(i) In general.--The conditions stated in this 
     subparagraph are that the potentially responsible party--

       ``(I) is--

       ``(aa) a natural person; or
       ``(bb) a small business; and

       ``(II) demonstrates to the President an inability or a 
     limited ability to pay response costs.

       ``(ii) Small businesses.--

       ``(I) Definition of small business.--In this subparagraph, 
     the term `small business' means a business entity that, 
     together with its parents, subsidiaries, and other 
     affiliates, had an average of not more than 75 full-time 
     equivalent employees and an average of not more than 
     $3,000,000 in annual gross revenues, as reported to the 
     Internal Revenue

[[Page 10634]]

     Service, during the 3 years preceding the date on which the 
     business entity first received notice from the President of 
     its potential liability under this Act.
       ``(II) Other businesses.--A business shall be eligible for 
     a settlement under this subparagraph if the business--

       ``(aa) has an average of not more than 75 employees or an 
     average of not more than $3,000,000 in annual gross revenue; 
     and
       ``(bb) meets all other requirements for a settlement under 
     this subparagraph.

       ``(III) Considerations.--At the request of a small 
     business, the President shall take into consideration the 
     ability of the small business to pay response costs and still 
     maintain its basic business operations, including 
     consideration of the overall financial condition of the small 
     business and demonstrable constraints on the ability of the 
     small business to raise revenues.
       ``(IV) Information.--A small business requesting settlement 
     under this paragraph shall promptly provide the President 
     with all relevant information needed to determine the ability 
     of the small business to pay response costs.
       ``(V) Determination.--To be eligible to be covered by this 
     subparagraph, the business shall demonstrate to the President 
     the inability of the small business to pay response costs. If 
     the small business employs fewer than 25 full-time equivalent 
     employees and has average gross income revenues of less than 
     $2,000,000, the President shall, on request, perform any 
     analysis that the President determines may assist in 
     demonstrating the impact of a settlement on the small 
     business' ability to maintain its basic operations. The 
     President may perform such analysis for any other party or 
     request such other party to perform the analysis.
       ``(VI) Alternative payment methods.--If the President 
     determines that a small business is unable to pay its total 
     settlement quantity immediately, the President shall consider 
     such alternative payment methods as may be necessary or 
     appropriate.

       ``(D) Additional conditions for expedited settlements.--
       ``(i) Waiver of claims.--The President shall require, as a 
     condition of settlement under this paragraph, that a 
     potentially responsible party waive some or all of the claims 
     (including a claim for contribution under section 113) that 
     the party may have against other potentially responsible 
     parties for response costs incurred with respect to the 
     facility, unless the President determines that requiring a 
     waiver would be unjust.
       ``(ii) Exception.--The President may decline to offer a 
     settlement to a potentially responsible party under this 
     paragraph if the President determines that the potentially 
     responsible party has failed to comply with any request for 
     access or information or an administrative subpoena issued by 
     the President under this Act or has impeded or is impeding 
     the performance of a response action with respect to the 
     facility.
       ``(iii) Responsibility to provide information and access.--
     A potentially responsible party that enters into a settlement 
     under this paragraph shall not be relieved of the 
     responsibility to provide any information or access requested 
     by the President in accordance with subsection (e)(3)(B) or 
     section 104(e).
       ``(iv) Basis of determination.--If the President determines 
     that a potentially responsible party is not eligible for 
     settlement under this paragraph, the President shall state 
     the reasons for the determination in writing to any 
     potentially responsible party that requests a settlement 
     under this paragraph.
       ``(v) No judicial review.--A determination by the President 
     under this paragraph shall not be subject to judicial 
     review.''; and
       (3) in subparagraph (E) of paragraph (1) (as redesignated 
     by paragraph (1))--
       (A) by redesignating clauses (i) through (iii) as 
     subclauses (I) through (III), respectively, and adjusting the 
     margins appropriately;
       (B) by striking ``(E) The potentially responsible party'' 
     and inserting the following:
       ``(E) Owners of real property.--
       ``(i) In general.--The condition stated in this 
     subparagraph is that the potentially responsible party''; and
       (C) by striking ``This subparagraph (B)'' and inserting the 
     following:
       ``(ii) Applicability.--Clause (i)''.
       (b) Settlement Offers.--Section 122(g) of the Comprehensive 
     Environment Response, Liability, and Compensation Act of 1980 
     (42 U.S.C. 9622(g)) is amended--
       (1) by redesignating paragraph (6) as paragraph (9); and
       (2) by inserting after paragraph (5) the following:
       ``(6) Settlement offers.--
       ``(A) Notification.--As soon as practicable after receipt 
     of sufficient information to make a determination, the 
     Administrator shall notify any person that the Administrator 
     determines is eligible under paragraph (1) of the person's 
     eligibility for the expedited final settlement.
       ``(B) Offers.--As soon as practicable after receipt of 
     sufficient information, the Administrator shall submit a 
     written settlement offer to each person that the 
     Administrator determines, based on information available to 
     the Administrator at the time at which the determination is 
     made, to be eligible for a settlement under paragraph (1).
       ``(C) Information.--At the time at which the Administrator 
     submits an offer under paragraph (1), the Administrator 
     shall, at the request of the recipient of the offer, make 
     available to the recipient any information available under 
     section 552 of title 5, United States Code, on which the 
     Administrator bases the settlement offer, and if the 
     settlement offer is based in whole or in part on information 
     not available under that section, so inform the recipient.
       ``(7) Litigation moratorium.--
       ``(A) In general.--No person that has received notification 
     from the Administrator under paragraph (6) that the person is 
     eligible for an expedited settlement under paragraph (1) 
     shall be named as a defendant in any action under this Act 
     for recovery of response costs (including an action for 
     contribution) during the period--
       ``(i) beginning on the date on which the person receives 
     from the President written notice of the person's potential 
     liability and notice that the person is a party that may 
     qualify for an expedited settlement; and
       ``(ii) ending on the earlier of--

       ``(I) the date that is 90 days after the date on which the 
     President tenders a written settlement offer to the person; 
     or
       ``(II) the date that is 1 year after receipt of notice from 
     the President that the person may qualify for an expedited 
     settlement.

       ``(B) Suspension of period of limitation.--The period of 
     limitation under section 113(g) applicable to a claim against 
     a person described in subparagraph (A) for response costs, 
     natural resource damages, or contribution shall be suspended 
     during the period described in subparagraph (A).
       ``(8) Notice of settlement.--After a settlement under this 
     subsection becomes final with respect to a facility, the 
     President shall promptly notify potentially responsible 
     parties at the facility that have not resolved their 
     liability to the United States of the settlement.''.

     SEC. 203. SMALL BUSINESS OMBUDSMAN.

       Section 117 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9617) is 
     amended by adding at the end the following:
       ``(f) Small Business Ombudsman.--
       ``(1) Establishment.--The Administrator shall establish a 
     small business Superfund assistance section within the small 
     business ombudsman office of the Environmental Protection 
     Agency.
       ``(2) Functions.--The small business Superfund assistance 
     section shall--
       ``(A) act as a clearinghouse for the provision to small 
     businesses of information, in a form that is comprehensible 
     to a layperson, regarding this Act, including information 
     regarding--
       ``(i) requirements and procedures for expedited settlements 
     under section 122(g); and
       ``(ii) ability-to-pay procedures under section 122(g);
       ``(B) provide general advice and assistance to small 
     businesses regarding questions and problems concerning the 
     settlement processes (not including legal advice as to 
     liability or any other legal representation); and
       ``(C) develop proposals and make recommendations for 
     changes in policies and activities of the Environmental 
     Protection Agency that would better fulfill the goals of this 
     title and the amendments made by this title in ensuring 
     equitable, simplified, and expedited settlements for small 
     businesses.''.

TITLE III--SETTLEMENTS FOR MUNICIPALITIES AND CONTRIBUTORS OF MUNICIPAL 
                                 WASTE

     SEC. 301. MUNICIPAL OWNERS AND OPERATORS.

       Section 107 of the Comprehensive Environment Response, 
     Liability, and Compensation Act of 1980 (42 U.S.C. 9607) (as 
     amended by section 201) is amended by adding at the end the 
     following:
       ``(t) Municipal Owners and Operators.--
       ``(1) In general.--A municipality that is liable for 
     response costs under paragraph (1) or (2) of subsection (a) 
     on the basis of ownership or operation of a municipal 
     landfill that was listed on the National Priority List on or 
     before May 1, 1999, shall be eligible for a settlement of 
     that liability.
       ``(2) Settlement amount.--
       ``(A) Municipalities with a population of 100,000 or 
     more.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     President shall offer a settlement to a municipality with a 
     population of 100,000 (as measured by the 1990 census) or 
     more with respect to liability described in paragraph (1) on 
     the basis of a payment or other obligation equivalent in 
     value to not more than 20 percent of the total response costs 
     incurred with respect to a facility.
       ``(ii) Decreased amount.--The President may decrease the 
     percentage under clause (i) with respect to a municipality to 
     not less than 10 percent if the President determines that the 
     municipality took specific acts of mitigation during the 
     operation of the facility to avoid environmental 
     contamination or exposure with respect to the facility.
       ``(iii) Increased amount.--The President may increase the 
     percentage under clause (i) to not more than 35 percent if 
     the President determines that--

       ``(I) the municipality committed specific acts that 
     exacerbated environmental contamination or exposure with 
     respect to the facility; or

[[Page 10635]]

       ``(II) the municipality, during the period of ownership or 
     operation of the facility, received operating revenues 
     substantially in excess of the sum of the waste system 
     operating costs plus 20 percent of total estimated response 
     costs incurred with respect to the facility.

       ``(B) Municipalities with a population of less than 
     100,000.--The President shall offer a settlement to a 
     municipality with a population of less than 100,000 (as 
     measured by the 1990 census) with respect to liability 
     described in paragraph (1) in an amount that does not exceed 
     10 percent of the total response costs incurred with respect 
     to the facility.
       ``(3) Performance of response actions.--As a condition of a 
     settlement with a municipality under this subsection, the 
     President may require that the municipality perform or 
     participate in the performance of the response actions at the 
     facility.
       ``(4) Ownership or operation by 2 or more municipalities.--
     A combination of 2 or more municipalities that jointly own or 
     operate (or owned or operated) a facility at the same time or 
     during continuous operations under municipal control shall be 
     considered to be a single owner or operator for the purpose 
     of calculating a settlement offer under this subsection.
       ``(5) Waiver of claims.--The President shall require, as a 
     condition of a settlement under this subsection, that a 
     municipality or combination of 2 or more municipalities waive 
     some or all of the claims (including a claim for contribution 
     under section 113) that the party may have against other 
     potentially responsible parties for response costs incurred 
     with respect to the facility, unless the President determines 
     that requiring a waiver would be unjust.
       ``(6) Exceptions.--The President may decline to offer a 
     settlement under this subsection with respect to a facility 
     if the President determines that the municipal owner or 
     operator has failed to comply with any request for 
     information or administrative subpoena issued by the United 
     States under this Act, has failed to provide facility access 
     to persons authorized to conduct response actions at the 
     facility, or has impeded or is impeding the performance of a 
     response action with respect to the facility.''.

     SEC. 302. EXPEDITED SETTLEMENTS WITH CONTRIBUTORS OF 
                   MUNICIPAL WASTE.

       Section 122(g)(1) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9622(g)(1)) (as amended by section 202(a)) is amended by 
     adding at the end the following:
       ``(F) Contribution of municipal solid waste and municipal 
     sewage sludge.--
       ``(i) In general.--The condition stated in this 
     subparagraph is that the liability of the potentially 
     responsible party is for response costs based on paragraph 
     (3) or (4) of section 107(a) and the potentially responsible 
     party arranged for disposal or treatment of, arranged with a 
     transporter for transport for disposal or treatment of, or 
     accepted for transport for disposal or treatment, at a 
     facility listed on the National Priorities List--

       ``(I) municipal solid waste; or
       ``(II) municipal sewage sludge.

       ``(ii) Settlement amount.--

       ``(I) In general.--The President shall offer a settlement 
     to a party referred to in clause (i) with respect to 
     liability under paragraph (3) or (4) of section 107(a) on the 
     basis of a payment of $5.30 per ton of municipal solid waste 
     or municipal sewage sludge that the President estimates is 
     attributable to the party.
       ``(II) Revision.--

       ``(aa) In general.--The President, after consulting with 
     local government officials, may revise the per-ton rate by 
     regulation.
       ``(bb) Basis.--A revised settlement amount under item (aa) 
     shall reflect the estimated per-ton cost of closure and post-
     closure activities at a representative facility containing 
     only municipal solid waste or municipal sewage sludge.
       ``(iii) Adjustment for inflation.--The Administrator may by 
     guidance periodically adjust the settlement amounts under 
     clause (ii) to reflect changes in the Consumer Price Index 
     (or other appropriate index, as determined by the 
     Administrator).
       ``(iv) Other material.--

       ``(I) In general.--Notwithstanding clause (i), a 
     potentially responsible party that arranged for disposal or 
     treatment of, arranged with a transporter for transport for 
     disposal or treatment of, or accepted for transport for 
     disposal or treatment, municipal solid waste or municipal 
     sewage sludge and other material containing hazardous 
     substances shall be eligible for the per-ton settlement rate 
     provided in this subparagraph as to the municipal solid waste 
     or municipal sewage sludge only, if the potentially 
     responsible party demonstrates to the President's 
     satisfaction the quantity of the municipal solid waste and 
     municipal sewage sludge contributed by the party and the 
     quantity and composition of the other material containing 
     hazardous substances contributed by the party.
       ``(II) Parties eligible for de micromis exemption.--If a 
     potentially responsible party demonstrates to the President's 
     satisfaction that, with respect to the material other than 
     municipal solid waste or municipal sewage sludge contributed 
     by the party, the party qualifies for the de micromis 
     exemption under section 107(r), the party shall qualify for 
     the per-ton settlement rate under clause (ii) with respect to 
     its municipal solid waste and municipal sewage sludge in an 
     expedited settlement under this paragraph.
       ``(III) Parties eligible for expedited de minimis 
     settlement.--If a potentially responsible party demonstrates 
     to the satisfaction of the President that, with respect to 
     the material other than a municipal solid waste or municipal 
     sewage sludge contributed by the party, the party qualifies 
     for a de minimis settlement under subparagraph (B), the party 
     shall qualify for the per-ton settlement rate under clause 
     (ii) with respect to its municipal solid waste and municipal 
     sewage sludge at the time that the party agrees to an 
     expedited settlement under this paragraph with respect to its 
     de minimis contribution of other material containing 
     hazardous substances.
       ``(IV) Other parties.--If a party does not make the 
     demonstration under subclauses (II) and (III), the President 
     shall offer to resolve the party's liability with respect to 
     the municipal solid waste or municipal sewage sludge at the 
     per-ton settlement rate under clause (ii) at such time as the 
     party agrees to a settlement with respect to other material 
     containing hazardous substances on terms and conditions 
     acceptable to the President.

       ``(G) Municipality with limited ability to pay.--
       ``(i) In general.--The conditions stated in this 
     subparagraph are that the potentially responsible party is a 
     municipality and demonstrates to the President an inability 
     or a limited ability to pay response costs.
       ``(ii) Factors.--The President shall consider the inability 
     or limited ability to pay of a municipality to the extent 
     that the municipality provides necessary information with 
     respect to--

       ``(I) the general obligation bond rating and information 
     about the most recent bond issue for which the rating was 
     prepared;
       ``(II) the amount of total available funds (other than 
     dedicated funds or State assistance payments for remediation 
     of inactive hazardous waste sites);
       ``(III) the amount of total operating revenues (other than 
     obligated or encumbered revenues);
       ``(IV) the amount of total expenses;
       ``(V) the amount of total debt and debt service;
       ``(VI) per capita income and cost of living;
       ``(VII) real property values;
       ``(VIII) unemployment information; and
       ``(IX) population information.

       ``(iii) Evaluation of impact.--A municipality may also 
     submit for consideration by the President an evaluation of 
     the potential impact of the settlement on the provision of 
     municipal services and the feasibility of making delayed 
     payments or payments over a certain period of time.
       ``(iv) Risk of default or violation.--A municipality may 
     establish an inability to pay for purposes of this 
     subparagraph through an affirmative showing that payment of 
     its liability under this Act would--

       ``(I) create a substantial demonstrable risk that the 
     municipality would default on debt obligations existing as of 
     the time of the showing, be forced into bankruptcy, be forced 
     to dissolve, or be forced to make budgetary cutbacks that 
     would substantially reduce the level of protection of public 
     health and safety; or
       ``(II) necessitate a violation of legal requirements or 
     limitations of general applicability concerning the 
     assumption and maintenance of fiscal municipal obligations.

       ``(v) Other factors relevant to settlements with 
     municipalities.--In determining an appropriate settlement 
     amount with a municipality under this subparagraph, the 
     President may consider other relevant factors, including the 
     fair market value of any in-kind services that the 
     municipality may provide to support the response action at 
     the facility.
       ``(H) Applicability of expedited settlement requirements.--
       ``(i) In general.--The requirements set forth in 
     subparagraph (D) shall apply to settlements described in 
     subparagraphs (F) and (G).
       ``(ii) Other requirements.--The requirements set forth in 
     subparagraph (B)(ii) shall apply to settlements described in 
     subparagraph (F)(i)(II).''.

    TITLE IV--CLARIFICATION OF LIABILITY FOR RECYCLING TRANSACTIONS

     SEC. 401. RECYCLING TRANSACTIONS.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 127. RECYCLING TRANSACTIONS.

       ``(a) Liability Clarification.--A person who arranged for 
     recycling of recyclable material in accordance with this 
     section shall not be liable under paragraph (3) or (4) of 
     section 107(a) with respect to the material.
       ``(b) Definition of Recyclable Material.--
       ``(1) In general.--In this section, the term `recyclable 
     material' means scrap paper, scrap plastic, scrap glass, 
     scrap textile, scrap rubber (other than whole tires), scrap 
     metal, or spent lead-acid, spent nickel-cadmium, and other 
     spent battery, as well as minor

[[Page 10636]]

     quantities of material incident to or adhering to the scrap 
     material as a result of its normal and customary use prior to 
     becoming scrap.
       ``(2) Exclusions.--The term `recyclable material` does not 
     include shipping containers of a capacity from 30 liters to 
     3,000 liters, whether intact or not, having any hazardous 
     substance (but not metal bits and pieces or hazardous 
     substances that form an integral part of the container) 
     contained in or adhering to the containers.
       ``(c) Transactions Involving Scrap Paper, Plastic, Glass, 
     Textiles, or Rubber.--A transaction involving scrap paper, 
     scrap plastic, scrap glass, scrap textile, or scrap rubber 
     (other than whole tires) shall be considered to be arranging 
     for recycling if the person who arranged for the transaction 
     (by selling recyclable material or otherwise arranging for 
     the recycling of recyclable material) demonstrates by a 
     preponderance of the evidence that all of the following 
     criteria were met at the time of the transaction:
       ``(1) The recyclable material met a commercial 
     specification grade.
       ``(2) A market existed for the recyclable material.
       ``(3) A substantial portion of the recyclable material was 
     made available for use as feedstock for the manufacture of a 
     new saleable product.
       ``(4) The recyclable material is a replacement or 
     substitute for a virgin raw material, or the product to be 
     made from the recyclable material is a replacement or 
     substitute for a product made, in whole or in part, from a 
     virgin raw material.
       ``(5) In the case of a transaction occurring 90 days or 
     more after the date of enactment of this section, the person 
     exercised reasonable care to determine that the facility 
     where the recyclable material was handled, processed, 
     reclaimed, or otherwise managed by another person (referred 
     to in this section as a `consuming facility') was in 
     compliance with substantive provisions of any Federal, State, 
     or local environmental law (including a regulation, 
     compliance order, or decree issued pursuant to the law) 
     applicable to the handling, processing, reclamation, storage, 
     or other management activities associated with recyclable 
     material.
       ``(6) For purposes of this subsection, reasonable care 
     shall be determined using criteria that include the 
     following:
       ``(A) The price paid in the recycling transaction.
       ``(B) The ability of the person to detect the nature of the 
     consuming facility's operations concerning its handling, 
     processing, reclamation, or other management activities 
     associated with recyclable material.
       ``(C) The result of inquiries made to appropriate Federal, 
     State, or local environmental agencies regarding the 
     consuming facility's past and current compliance with 
     substantive provisions of any Federal, State, or local 
     environmental law (including a regulation, compliance order, 
     or decree issued pursuant to the law) applicable to the 
     handling, processing, reclamation, storage, or other 
     management activities associated with the recyclable 
     material. For the purposes of this paragraph, a requirement 
     to obtain a permit applicable to the handling, processing, 
     reclamation, or other management activity associated with the 
     recyclable materials shall be considered to be a substantive 
     provision.
       ``(d) Transactions Involving Scrap Metal.--
       ``(1) In general.--A transaction involving scrap metal 
     shall be considered to be arranging for recycling if the 
     person who arranged for the transaction (by selling 
     recyclable material or otherwise arranging for the recycling 
     of recyclable material) demonstrates by a preponderance of 
     the evidence that (at the time of the transaction) the 
     person--
       ``(A) met the criteria set forth in subsection (c) with 
     respect to the scrap metal;
       ``(B) was in compliance with any applicable regulations or 
     standards regarding the storage, transport, management, or 
     other activities associated with the recycling of scrap metal 
     that the Administrator promulgates under the Solid Waste 
     Disposal Act (42 U.S.C. 6901 et seq.) subsequent to the date 
     of enactment of this section and with regard to transactions 
     occurring after the effective date of the regulations or 
     standards; and
       ``(C) did not melt the scrap metal prior to the 
     transaction.
       ``(2) Thermal separation.--For purposes of paragraph 
     (1)(C), melting of scrap metal does not include the thermal 
     separation of 2 or more materials due to differences in their 
     melting points.
       ``(3) Definition of scrap metal.--In this subsection, the 
     term `scrap metal' means bits and pieces of a metal part 
     (such as a bar, a turning, a rod, a sheet, and a wire) or a 
     metal piece that may be combined together with bolts or 
     soldering (resulting in items such as a radiator, scrap 
     automobile, or railroad box car), which when worn or 
     superfluous can be recycled, other than scrap metals that the 
     Administrator excludes from this paragraph by regulation.
       ``(e) Transactions Involving Batteries.--A transaction 
     involving a spent lead-acid battery, a spent nickel-cadmium 
     battery, or other spent battery shall be considered to be 
     arranging for recycling if the person who arranged for the 
     transaction (by selling recyclable material or otherwise 
     arranging for the recycling of recyclable material) 
     demonstrates by a preponderance of the evidence that at the 
     time of the transaction--
       ``(1) the person met the criteria set forth in subsection 
     (c) with respect to the spent lead-acid battery, spent 
     nickel-cadmium battery, or other spent battery, but the 
     person did not recover the valuable components of such 
     battery; and
       ``(2)(A) with respect to a transaction involving a lead-
     acid battery, the person was in compliance with applicable 
     Federal environmental law (including regulations and 
     standards), regarding the storage, transport, management, or 
     other activities associated with the recycling of the 
     battery;
       ``(B) with respect to a transaction involving a nickel-
     cadmium battery, the person was in compliance with applicable 
     Federal environmental law (including regulations and 
     standards) regarding the storage, transport, management, or 
     other activities associated with the recycling of the 
     battery; or
       ``(C) with respect to a transaction involving any other 
     spent battery, the person was in compliance with applicable 
     Federal environmental law (including regulations and 
     standards) regarding the storage, transport, management, or 
     other activities associated with the recycling of the 
     battery.
       ``(f) Exclusions.--
       ``(1) In general.--The exemptions set forth in subsections 
     (c), (d), and (e) shall not apply if--
       ``(A) the person had an objectively reasonable basis to 
     believe at the time of the recycling transaction that--
       ``(i) the recyclable material would not be recycled;
       ``(ii) the recyclable material would be burned as fuel, or 
     for energy recovery or incineration; or
       ``(iii) for a transaction occurring before the date that is 
     90 days after the date of the enactment of this section, the 
     consuming facility was not in compliance with a substantive 
     provision of any Federal, State, or local environmental law 
     (including a regulation, compliance order, or decree issued 
     pursuant to the law), applicable to the handling, processing, 
     reclamation, or other management activities associated with 
     the recyclable material;
       ``(B) the person had reason to believe that hazardous 
     substances had been added to the recyclable material for 
     purposes other than processing for recycling;
       ``(C) the person failed to exercise reasonable care with 
     respect to the management and handling of the recyclable 
     material (including adhering to customary industry practices 
     current at the time of the recycling transaction designed to 
     minimize, through source control, contamination of the 
     recyclable material by hazardous substances); or
       ``(D) with respect to any item of a recyclable material, 
     the item contained polychlorinated biphenyls at a 
     concentration in excess of 50 parts per million or any new 
     standard promulgated pursuant to applicable Federal law.
       ``(2) Objectively reasonable basis.--For purposes of this 
     subsection, an objectively reasonable basis for belief shall 
     be determined using criteria that include--
       ``(A) the size of the person's business;
       ``(B) customary industry practices (including customary 
     industry practices current at the time of the recycling 
     transaction designed to minimize, through source control, 
     contamination of the recyclable material by hazardous 
     substances);
       ``(C) the price paid in the recycling transaction; and
       ``(D) the ability of the person to detect the nature of the 
     consuming facility's operations concerning its handling, 
     processing, reclamation, or other management activities 
     associated with the recyclable material.
       ``(3) Permit.--For purposes of this subsection, a 
     requirement to obtain a permit applicable to the handling, 
     processing, reclamation, or other management activities 
     associated with recyclable material shall be considered to be 
     a substantive provision.
       ``(g) Effect on Other Liability.--Nothing in this section 
     affects the liability of a person with respect to materials 
     that are not recyclable materials (as defined in subsection 
     (b)) under paragraph (1), (2), (3), or (4).
       ``(h) Regulations.--The Administrator has the authority, 
     under section 115, to promulgate additional regulations 
     concerning this section.
       ``(i) Effect on Pending or Concluded Actions.--The 
     exemptions provided under this section shall not affect any 
     concluded judicial or administrative action or any pending 
     judicial action initiated by the United States prior to the 
     date of enactment of this section.
       ``(j) Liability for Attorney's Fees for Certain Actions.--
     Any person who commences an action in contribution against a 
     person who is not liable by operation of this section shall 
     be liable to that person for all reasonable costs of 
     defending that action, including all reasonable attorneys and 
     expert witness fees.
       ``(k) Relationship to Liability Under Other Laws.--Nothing 
     in this section affects--
       ``(1) liability under any other Federal, State, or local 
     law (including a regulation),

[[Page 10637]]

     including any requirements promulgated by the Administrator 
     under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.); 
     or
       ``(2) the ability of the Administrator to promulgate 
     regulations under any other law, including the Solid Waste 
     Disposal Act.''.

                      TITLE V--BROWNFIELDS CLEANUP

     SEC. 501. BROWNFIELDS FUNDING.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 128. BROWNFIELDS FUNDING FOR STATE AND LOCAL 
                   GOVERNMENTS.

       ``(a) Brownfields Inventory and Assessment Grant Program.--
       ``(1) Establishment.--The Administrator shall establish a 
     program to award grants to States or local governments to 
     inventory brownfield sites and to conduct site assessments of 
     brownfield sites.
       ``(2) Scope of program.--
       ``(A) Grant awards.--To carry out this subsection, the 
     Administrator may, on approval of an application, provide 
     financial assistance to a State or local government.
       ``(B) Grant application procedure.--
       ``(i) In general.--The Administrator shall establish a 
     grant application procedure for this section.
       ``(ii) National contingency plan.--The Administrator may 
     include in the procedure established under clause (i) 
     requirements of the National Contingency Plan, to the extent 
     that those requirements are relevant and appropriate to the 
     program under this subsection.
       ``(C) Grant application.--An application for a grant under 
     this subsection shall include, to the extent practicable, 
     each of the following:
       ``(i) An identification of the brownfield sites for which 
     assistance is sought and a description of the effect of the 
     brownfield sites on the community, including a description of 
     the nature and extent of any known or suspected environmental 
     contamination within the areas in which eligible brownfield 
     sites are situated.
       ``(ii) A description of the need of the applicant for 
     financial assistance to inventory brownfield sites and 
     conduct site assessments.
       ``(iii) A demonstration of the potential of the grant 
     assistance to stimulate economic development, including the 
     extent to which the assistance would stimulate the 
     availability of other funds for site assessment, site 
     identification, or environmental remediation and subsequent 
     redevelopment of the areas in which eligible brownfield sites 
     are situated.
       ``(iv) A description of the local commitment as of the date 
     of the application, which shall include a community 
     involvement plan that demonstrates meaningful community 
     involvement.
       ``(v) A plan that demonstrates how the site assessment, 
     site identification, or environmental remediation and 
     subsequent development will be implemented, including--

       ``(I) an environmental plan that ensures the use of sound 
     environmental procedures;
       ``(II) an explanation of the appropriate government 
     authority and support for the project as in existence on the 
     date of the application;
       ``(III) proposed funding mechanisms for any additional 
     work; and
       ``(IV) a proposed land ownership plan.

       ``(vi) A statement describing the long-term benefits and 
     the sustainability of the proposed project that includes--

       ``(I) the ability of the project to be replicated 
     nationally and measures of success of the project; and
       ``(II) to the extent known, the potential of the plan for 
     each area in which an eligible brownfield site is situated to 
     stimulate economic development of the area on completion of 
     the environmental remediation.

       ``(vii) Such other factors as the Administrator considers 
     relevant to carry out this title.
       ``(D) Approval of application.--
       ``(i) In general.--In making a decision on whether to 
     approve an application under subparagraph (A), the 
     Administrator shall--

       ``(I) consider the need of the State or local government 
     for financial assistance to carry out this subsection;
       ``(II) consider the ability of the applicant to carry out 
     an inventory and site assessment under this subsection;
       ``(III) ensure a fair distribution of grant funds between 
     urban and nonurban areas; and
       ``(IV) consider such other factors as the Administrator 
     considers relevant to carry out this subsection.

       ``(ii) Grant conditions.--As a condition of awarding a 
     grant under this subsection, the Administrator may, on the 
     basis of the criteria considered under clause (i), attach 
     such conditions to the grant as the Administrator determines 
     appropriate.
       ``(E) Grant amount.--Subject to subparagraph (E), the 
     amount of a grant awarded to any State or local government 
     under this subsection for inventory and site assessment of 1 
     or more brownfield sites shall not exceed $200,000.
       ``(F) Waiver.--The Administrator may waive the limitation 
     on the amount of a grant under subparagraph (E) on the basis 
     of the anticipated level of contamination, size, status of 
     ownership, number of brownfield sites, or any other factor 
     relating to the facility that the Administrator considers 
     appropriate, taking into consideration the impact of the 
     increase on the Administrator's ability to provide grants at 
     other facilities.
       ``(G) Termination of grants.--If the Administrator 
     determines that a State or local government that receives a 
     grant under this subsection is in violation of a condition of 
     a grant referred to in subparagraph (D)(ii), the 
     Administrator may terminate the grant made to the State or 
     local government and require full or partial repayment of the 
     grant.
       ``(b) Grants and Loans for Cleanup of Brownfield Sites.--
       ``(1) Establishment.--The Administrator shall establish a 
     program to award grants to--
       ``(A) State or local governments to capitalize revolving 
     loan funds for the cleanup of brownfield sites; and
       ``(B) local governments that are not liable under section 
     107, in accordance with paragraph (3), for the purpose of 
     cleaning up brownfield sites.
       ``(2) Loans.--The loans may be provided by the State or 
     local government to finance cleanups of brownfield sites by 
     the State or local government, or by an owner or operator or 
     a prospective purchaser of a brownfield site (including a 
     local government) at which a cleanup is being conducted or is 
     proposed to be conducted.
       ``(3) Determination.--In determining whether to award a 
     grant under paragraph (1)(B), the Administrator shall 
     consider, in addition to other requirements of this 
     subsection--
       ``(A) the demonstrated financial need of the applicant for 
     a grant, including whether the applicant would be financially 
     able to repay a loan;
       ``(B) the extent to which the funds from the grant would be 
     used for the creation or preservation of undeveloped space or 
     for other nonprofit purposes; and
       ``(C) the benefits of a revolving loan program described in 
     paragraph (1)(A) in promoting the long-term availability of 
     funding for brownfields cleanups.
       ``(4) Scope of program.--
       ``(A) In general.--
       ``(i) Grants.--In carrying out this subsection, the 
     Administrator may award a grant to a State or local 
     government that submits an application to the Administrator 
     that is approved by the Administrator.
       ``(ii) Use of grant.--The grant shall be used--

       ``(I) by the State or local government to capitalize a 
     revolving loan fund to be used for cleanup of 1 or more 
     brownfield sites; or
       ``(II) in the case of a grant under paragraph (1)(B), by 
     the local government for cleanup of brownfield sites.

       ``(B) Grant application procedure.--
       ``(i) In general.--The Administrator shall establish a 
     grant application procedure for this subsection.
       ``(ii) Inclusions.--The procedure established under clause 
     (i)--

       ``(I) shall include criteria for grants under paragraph 
     (1)(B); and
       ``(II) may include requirements of the National Contingency 
     Plan, to the extent that those requirements are relevant and 
     appropriate to the program under this subsection.

       ``(C) Grant application for revolving loan funds.--An 
     application for a grant under this subsection to establish a 
     revolving loan fund, shall be in such form as the 
     Administrator determines appropriate, and shall include, at a 
     minimum, the following:
       ``(i) Evidence that the grant applicant has the financial 
     controls and resources to administer a revolving loan fund in 
     accordance with this subsection.
       ``(ii) Provisions that--

       ``(I) ensure that the grant applicant has the ability to 
     monitor the use of funds provided to loan recipients under 
     this subsection; and
       ``(II) ensure that any cleanup conducted by the applicant 
     is protective of human health and the environment.

       ``(iii) Identification of the criteria to be used by the 
     State or local government in providing for loans under the 
     program. The criteria shall include the financial standing of 
     the applicants for the loans, the use to which the loans will 
     be put, the provisions to be used to ensure repayment of the 
     loan funds.
       ``(iv) A complete description of the financial standing of 
     the applicant that includes a description of the assets, cash 
     flow, and liabilities of the applicant.
       ``(v) A written statement that attests that the cleanup of 
     the site would not occur without access to the revolving loan 
     fund.
       ``(vi) The proposed method, and anticipated period of time 
     required, to clean up the environmental contamination at the 
     brownfield site.
       ``(vii) An estimate of the proposed total cost of the 
     cleanup to be conducted at the brownfield site.
       ``(viii) An analysis that demonstrates the potential of the 
     brownfield site for stimulating economic development or other 
     beneficial use on completion of the cleanup of the brownfield 
     site.

[[Page 10638]]

       ``(5) Grant approval.--In determining whether to award a 
     grant under this subsection, the Administrator shall 
     consider, as applicable--
       ``(A) the need of the State or local government for 
     financial assistance to clean up brownfield sites that are 
     the subject of the application, taking into consideration the 
     financial resources available to the State or local 
     government;
       ``(B) the ability of the State or local government to 
     ensure that the applicants repay the loans in a timely 
     manner;
       ``(C) the extent to which the cleanup of the brownfield 
     site or sites would reduce health and environmental risks 
     caused by the release of contaminants at, or from, the 
     brownfield site or sites;
       ``(D) the demonstrable potential of the brownfield site or 
     sites for stimulating economic development on completion of 
     the cleanup;
       ``(E) the demonstrated ability of the State or local 
     government to administer such a loan program;
       ``(F) the demonstrated experience of the State or local 
     government regarding brownfield sites and the reuse of 
     contaminated land, including whether the government has 
     received any grant under this Act to assess brownfield sites, 
     except that applicants who have not previously received such 
     a grant may be considered for awards under this subsection;
       ``(G) the efficiency of having the loan administered by the 
     level of government represented by the applicant entity;
       ``(H) the experience of administering any loan programs by 
     the entity, including the loan repayment rates;
       ``(I) the demonstrations made regarding the ability of the 
     State or local government to ensure a fair distribution of 
     grant funds among brownfield sites within the jurisdiction of 
     the State or local government; and
       ``(J) such other factors as the Administrator considers 
     relevant to carry out this subsection.
       ``(6) Grant amount to capitalize revolving loan funds.--
       ``(A) In general.--Subject to subparagraph (B), the amount 
     of a grant to capitalize a revolving loan fund made to a 
     State or local applicant under this subsection shall not 
     exceed $500,000.
       ``(B) Waiver.--The Administrator may waive the limitation 
     on the amount of a grant under subparagraph (A) on the basis 
     of the anticipated level of contamination, size, status of 
     ownership, number of brownfield sites, or any other factor 
     relating to the facility that the Administrator considers 
     appropriate, taking into consideration the impact of the 
     increase on the Administrator's ability to provide grants at 
     other facilities.
       ``(7) Cleanup grant amount.--The amount of a grant made to 
     a local applicant under paragraph (1)(B) shall not exceed 
     $200,000.
       ``(8) Grant approval.--Each application for a grant to 
     capitalize a revolving loan fund under this subsection shall, 
     as a condition of approval by the Administrator, include a 
     written statement by the State or local government that 
     cleanups to be funded under this subsection shall be 
     conducted under the auspices of, and in compliance with--
       ``(A) the State voluntary cleanup program;
       ``(B) the State Superfund program; or
       ``(C) Federal law.
       ``(9) Grant agreements.--Each grant under this subsection 
     shall be made under a grant agreement that shall include, at 
     a minimum, provisions that ensure the following:
       ``(A) Compliance with law.--The grant recipient shall 
     include in all loan agreements a requirement that the loan 
     recipient shall comply with all laws applicable to the 
     cleanup and shall ensure that the cleanup is protective of 
     human health and the environment.
       ``(B) Repayment.--For grants made under paragraph (1)(A), 
     the State or local government shall require repayment of the 
     loan consistent with this subsection.
       ``(C) Use of funds.--
       ``(i) Revolving grants.--For grants made under paragraph 
     (1)(A), the State or local government shall use the funds, 
     including repayment of the principal and interest, solely for 
     purposes of establishing and capitalizing a loan program in 
     accordance with this subsection and of cleaning up the 
     environmental contamination at the brownfield site or sites.
       ``(ii) Cleanup grants.--For grants made under paragraph 
     (1)(B), the local government shall use the funds solely for 
     the purpose of cleaning up the environmental contamination at 
     the brownfield site or sites.
       ``(D) Repayment of funds.--For grants made under paragraph 
     (1)(A), the State or local government shall require in each 
     loan agreement, and take necessary steps to ensure, that the 
     loan recipient shall use the loan funds solely for the 
     purposes stated in subparagraph (C), and shall require the 
     return of any excess funds immediately on a determination by 
     the appropriate State or local official that the cleanup has 
     been completed.
       ``(E) Nontransferability.--For grants under paragraph 
     (1)(A) or (1)(B), the loan funds shall not be transferable, 
     unless the Administrator agrees to the transfer in writing.
       ``(F) Liens.--
       ``(i) Definitions.--In this subparagraph, the terms 
     `security interest' and `purchaser' have the meanings given 
     the terms in section 6323(h) of the Internal Revenue Code of 
     1986.
       ``(ii) Liens.--A lien in favor of the grant recipient shall 
     arise on the contaminated property subject to a loan under 
     this subsection.
       ``(iii) Coverage.--The lien shall cover all real property 
     included in the legal description of the property at the time 
     the loan agreement provided for in this subsection is signed, 
     and all rights to the property, and shall continue until the 
     terms and conditions of the loan agreement have been fully 
     satisfied.
       ``(iv) Timing.--The lien shall--

       ``(I) arise at the time a security interest is 
     appropriately recorded in the real property records of the 
     appropriate office of the State, county, or other 
     governmental subdivision, as designated by State law, in 
     which the real property subject to the lien is located; and
       ``(II) be subject to the rights of any purchaser, holder of 
     a security interest, or judgment lien creditor whose interest 
     is or has been perfected under applicable State law before 
     the notice has been filed in the appropriate office of the 
     State, county, or other governmental subdivision, as 
     designated by State law, in which the real property subject 
     to the lien is located.

       ``(G) Other conditions.--The State or local government 
     shall comply with such other terms and conditions as the 
     Administrator determines are necessary to protect the 
     financial interests of the United States and to protect human 
     health and the environment.
       ``(c) Reports.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this Act, and not later than January 31 of each 
     of the 3 calendar years thereafter, the Administrator shall 
     prepare and submit a report describing the results of each 
     program established under this title to--
       ``(A) the Committee on Environment and Public Works of the 
     Senate; and
       ``(B) the Committee on Commerce of the House of 
     Representatives.
       ``(2) Contents of Report.--Each report shall, with respect 
     to each of the programs established under this title, include 
     a description of--
       ``(A) the number of applications received by the 
     Administrator during the preceding calendar year;
       ``(B) the number of applications approved by the 
     Administrator during the preceding calendar year; and
       ``(C) the allocation of assistance under subsections (a) 
     and (b) among the States and local governments.
       ``(d) Limitations on Use of Funds.--
       ``(1) Excluded Facilities.--A grant for site inventory and 
     assessment under subsection (a) or to capitalize a revolving 
     loan fund or conduct a cleanup under subsection (b) may not 
     be used for any activity involving--
       ``(A) a facility that is the subject of a planned or an 
     ongoing response action under this Act, except for a facility 
     for which a preliminary assessment, site investigation, or 
     removal action has been completed and with respect to which 
     the Administrator has decided not to take further response 
     action, including cost recovery action;
       ``(B) a facility included, or proposed for inclusion, on 
     the National Priorities List maintained by the Administrator 
     under this Act;
       ``(C) a facility with respect to which a record of 
     decision, other than a no-action record of decision, has been 
     issued by the President under section 104 with respect to the 
     facility;
       ``(D) a facility that is subject to corrective action under 
     section 3004(u) or 3008(h) of the Solid Waste Disposal Act 
     (42 U.S.C. 6924(u), 6928(h)) to which a corrective action 
     permit or order has been issued or modified to require the 
     implementation of corrective measures;
       ``(E) any land disposal unit with respect to which a 
     closure notification under subtitle C of the Solid Waste 
     Disposal Act (42 U.S.C. 6921 et seq.) has been submitted and 
     closure requirements have been specified in a closure plan or 
     permit;
       ``(F) a facility at which there has been a release of a 
     polychlorinated biphenyl and that is subject to the Toxic 
     Substances Control Act (15 U.S.C. 2601 et seq.);
       ``(G) a facility with respect to which an administrative or 
     judicial order or a consent decree requiring cleanup has been 
     issued or entered into by the President and is in effect 
     under--
       ``(i) this Act;
       ``(ii) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
     seq.);
       ``(iii) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(iv) the Toxic Substances Control Act (15 U.S.C. 2601 et 
     seq.); or
       ``(v) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
       ``(H) a facility at which assistance for response 
     activities may be obtained under subtitle I of the Solid 
     Waste Disposal Act (42 U.S.C. 6991 et seq.) from the Leaking 
     Underground Storage Tank Trust Fund established by section 
     9508 of the Internal Revenue Code of 1986; and
       ``(I) a facility owned or operated by a department, agency, 
     or instrumentality of the

[[Page 10639]]

     United States, except for land held in trust by the United 
     States for an Indian tribe.
       ``(2) Facility grants.--Notwithstanding paragraph (1), the 
     President may, on a facility-by-facility basis, allow a grant 
     under subsection (a) or (b) to be used for an activity 
     involving any facility or portion of a facility listed in 
     subparagraph (D), (E), (F), (G)(ii), (G)(iii), (G)(iv), 
     (G)(v), or (H) of paragraph (1).
       ``(3) Fines and cost-sharing.--A grant made under this 
     title may not be used to pay any fine or penalty owed to a 
     State or the Federal Government, or to meet any Federal cost-
     sharing requirement.
       ``(4) Other Limitations.--
       ``(A) In general.--Funds made available to a State or local 
     government under the grant programs established under 
     subsections (a) and (b) shall be used only to inventory and 
     assess brownfield sites as authorized by this title and for 
     capitalizing a revolving loan fund or cleanup of a brownfield 
     site as authorized by this title, respectively.
       ``(B) Responsibility for cleanup action.--Funds made 
     available under this title may not be used to relieve a local 
     government or State of the commitment or responsibilities of 
     the local government or State under State law to assist or 
     carry out cleanup actions at brownfield sites.
       ``(e) Regulations.--
       ``(1) In general.--The Administrator may issue such 
     regulations as are necessary to carry out this section.
       ``(2) Procedures and standards.--The regulations shall 
     include such procedures and standards as the Administrator 
     considers necessary, including procedures and standards for 
     evaluating an application for a grant or loan submitted under 
     this section.
       ``(f) Effect on Other Laws.--Nothing in this title affects 
     the liability or response authorities for environmental 
     contamination under any other law (including any regulation), 
     including--
       ``(1) this Act;
       ``(2) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
     seq.);
       ``(3) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(4) the Toxic Substances Control Act (15 U.S.C. 2601 et 
     seq.); and
       ``(5) the Safe Drinking Water Act (42 U.S.C. 300f et 
     seq.).''.

     SEC. 502. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND TRAINING.

       (a) Research, Development, Demonstration, and Training.--
     Section 311 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9660) is 
     amended by striking subsection (c) and inserting the 
     following:
       ``(c) Hazardous Substance Research, Development, 
     Demonstration, and Training.--
       ``(1) In general.--The Administrator may conduct and, 
     through grants, cooperative agreements, contracts, and the 
     provision of technical assistance, may support, research, 
     development, demonstration, and training relating to the 
     detection, assessment, remediation, and evaluation of the 
     effects on and risks to human health and the environment from 
     hazardous substances.
       ``(2) Eligibility.--The Administrator may award grants and 
     cooperative agreements, or contracts or provide technical 
     assistance under this subsection to a State, Indian tribe, 
     consortium of Indian tribes, interstate agency, political 
     subdivision of a State, educational institution, or other 
     agency or organization for the development and implementation 
     of training, technology transfer, and information 
     dissemination programs to strengthen environmental response 
     activities, including enforcement, at the Federal, State, 
     tribal and local levels.
       ``(3) Requirements.--The Administrator may establish such 
     requirements for grants and cooperative agreements under this 
     subsection as the Administrator considers to be 
     appropriate.''.
       (b) Training and Technical Assistance.--Section 117 of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9617) (as amended by section 
     203) is amended by adding at the end the following:
       ``(g) Financial Assistance for Training.--The Administrator 
     may provide training and technical assistance to individuals 
     and organizations, as appropriate to--
       ``(1) inventory and conduct assessments and cleanups of 
     brownfield sites; and
       ``(2) conduct response actions under this Act.''.

     SEC. 503. STATE VOLUNTARY CLEANUP PROGRAMS.

       Title I of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.) (as amended by section 501) is amended by adding at the 
     end the following:

     ``SEC. 129. SUPPORT FOR STATE VOLUNTARY CLEANUP PROGRAMS.

       ``(a) EPA Assistance for States for State Voluntary 
     Response Programs.--The Administrator shall assist States to 
     establish and administer State voluntary response programs 
     that provide--
       ``(1) voluntary response actions that ensure adequate site 
     assessment and are protective of human health and the 
     environment;
       ``(2) opportunities for technical assistance (including 
     grants) for voluntary response actions;
       ``(3) meaningful opportunities for public participation on 
     issues that affect the community, which shall include prior 
     notice and opportunity for comment in the selection of 
     response actions and which may include involvement of State 
     and local health officials during site assessment;
       ``(4) streamlined procedures to ensure expeditious 
     voluntary response actions;
       ``(5) adequate oversight, enforcement authorities, 
     resources, and practices to--
       ``(A) ensure that voluntary response actions are protective 
     of human health and the environment, as provided in paragraph 
     (1), and are conducted in a timely manner in accordance with 
     a State-approved response action plan; and
       ``(B) ensure completion of response actions if the person 
     conducting the response action fails or refuses to complete 
     the necessary response activities that are protective of 
     human health and the environment, including operation and 
     maintenance or long-term monitoring activities;
       ``(6) mechanisms for the approval of a response action 
     plan; and
       ``(7) mechanisms for a certification or similar 
     documentation to the person that conducted the response 
     action indicating that the response is complete.
       ``(b) Grants for Development and Enhancement of State 
     Voluntary Response Programs and Reporting Requirement.--
       ``(1) Grants to states.--The Administrator shall provide 
     grants to States to develop or enhance State voluntary 
     response programs described in subsection (a).
       ``(2) Public record.--To assist the Administrator in 
     determining the needs of States for assistance under this 
     section, the Administrator shall encourage the States to 
     maintain a public record of facilities, by name and location, 
     that have been or are planned to be addressed under a State 
     voluntary response program.
       ``(3) Reporting requirement.--Not later than the end of the 
     first calendar year after the date of enactment of this 
     section, and annually thereafter, each State that receives 
     financial assistance under this section shall submit to the 
     Administrator a report describing the progress of the 
     voluntary response program of the State, including 
     information, with respect to that calendar year, on--
       ``(A) the number of sites, if any, undergoing voluntary 
     cleanup, including a separate description of the number of 
     sites in each stage of voluntary cleanup;
       ``(B) the number of sites, if any, entering voluntary 
     cleanup; and
       ``(C) the number of sites, if any, that received a 
     certification from the State indicating that a response 
     action is complete.''.

     SEC. 504. AUDITS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by adding at the end the following:
       ``(q) Audits.--
       ``(1) In General.--The Inspector General of the 
     Environmental Protection Agency shall audit a portion of the 
     grants awarded under section 129 to ensure that all funds are 
     used in a manner that is consistent with that section.
       ``(2) Future Grants.--The result of the audit shall be 
     taken into account in awarding any future grants to the State 
     or local government under that section.''.

                    TITLE VI--SETTLEMENT INCENTIVES

     SEC. 601. FAIRNESS IN SETTLEMENTS.

       Section 122 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9622) is 
     amended by adding at the end the following:
       ``(n) Fairness in Settlements.--
       ``(1) Assistance for cleanup settlements.--An agreement 
     under subsection (a) may, in the discretion of the President, 
     provide for payment of sums appropriated under section 111(s) 
     to pay a portion of the response costs at a facility in 
     accordance with section 122(b) where the President determines 
     there are parties that are insolvent, defunct, or otherwise 
     have a limited ability to pay, or based on other equitable 
     considerations.
       ``(2) Application toward cleanup settlement of sums 
     recovered in other settlements.--The President may enter into 
     settlements under paragraphs (3), subparagraphs (B), (C), 
     (F), and (G) of section 122(g)(1), and section 107(t) that 
     include terms providing for the disposition of the proceeds 
     of the settlements in a manner that is fair and reasonable, 
     including, as appropriate, the placement of settlement 
     proceeds in interest-bearing accounts to conduct or enable 
     other persons to conduct response actions at the facility.
       ``(3) Additional settlements based on ability to pay.--The 
     President shall have the authority to evaluate the ability to 
     pay of any potentially responsible party, and to enter into a 
     settlement with the party based on that party's ability to 
     pay.''.

                           TITLE VII--FUNDING

     SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

       Section 111(a) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(a)) 
     is amended in the first sentence by striking ``$8,500,000,000 
     for the 5-year period beginning

[[Page 10640]]

     on the date of enactment of the Superfund Amendments and 
     Reauthorization Act of 1986, and not more than $5,100,000,000 
     for the period commencing October 1, 1991, and ending 
     September 30, 1994'' and inserting ``$7,500,000,000 for the 
     period beginning October 1, 1999, and ending September 30, 
     2004''.

     SEC. 702. FUNDING FOR CLEANUP SETTLEMENTS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended--
       (1) in subsection (a), by inserting after paragraph (6) the 
     following:
       ``(7) Funding for cleanup settlements.--Payments toward 
     cleanup settlements under subsection (r) and section 
     122(n)(1).''; and
       (2) by adding at the end the following:
       ``(r) Mandatory Funding.--
       ``(1) In general.--Subject to paragraph (4), for the 
     purpose of contributing under section 122(n)(1) to a cleanup 
     settlement, there is made available for obligation from 
     amounts in the Hazardous Substance Superfund for each of 
     fiscal years 2000 through 2004, $200,000,000, to remain 
     available until expended
       ``(2) Effect on authority.--Nothing in this paragraph 
     affects the authority of the Administrator to forego recovery 
     of past costs.
       ``(3) Fiscal year funds.--Except in fiscal year 2000, if 
     the amounts made available under paragraph (1) available for 
     a fiscal year have been obligated, up to \1/2\ of the amounts 
     made available under paragraph (1) for the next fiscal year 
     may be obligated.
       ``(4) Condition on availability.--An amount under paragraph 
     (1) may be made available for obligation for a fiscal year 
     only if the total amount appropriated for the fiscal year 
     under section 111(a) equals or exceeds $1,500,000,000.''.

     SEC. 703. AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) is 
     amended by striking subsection (m) and inserting the 
     following:
       ``(m) Agency for Toxic Substances and Disease Registry.--
     There shall be directly available to the Agency for Toxic 
     Substances and Disease Registry to be used for the purpose of 
     carrying out activities described in subsection (c)(4) and 
     section 104(i) not less than $75,000,000 for each of fiscal 
     years 2000 through 2004.''.

     SEC. 704. BROWNFIELDS.

       Section 111 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611) (as 
     amended by section 702) is amended by adding at the end the 
     following:
       ``(s) Authorization of Appropriations.--
       ``(1) Inventory and assessment program.--There is 
     authorized to be appropriated to carry out section 128(a) 
     $35,000,000 for each of fiscal years 2000 through 2004.
       ``(2) Grants for cleanup.--There is authorized to be 
     appropriated to carry out section 128(b) $60,000,000 for each 
     of fiscal years 2000 through 2004.
       ``(3) Voluntary Response Programs.--There is authorized to 
     be appropriated for assistance to States for voluntary 
     response programs under section 129(b) $15,000,000 for each 
     of the first 5 fiscal years beginning after the date of 
     enactment of this section.
       ``(4) Availability of funds.--The amounts appropriated 
     under this subsection shall remain available until 
     expended.''.

     SEC. 705. AUTHORIZATION OF APPROPRIATIONS FROM GENERAL 
                   REVENUES.

       Section 111(p) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9611(p)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) In general.--
       ``(A) Authorization.--There are authorized to be 
     appropriated, out of any money in the Treasury not otherwise 
     appropriated, to the Hazardous Substance Superfund, 
     $250,000,000 for each of fiscal years 2000 through 2004.
       ``(B) Appropriation in subsequent years.--In addition to 
     funds appropriated under subparagraph (A), there is 
     authorized to be appropriated to the Hazardous Substance 
     Superfund for each fiscal year described in subparagraph (A) 
     an amount equal to so much of the aggregate amount authorized 
     to be appropriated under subparagraph (A) as has not been 
     appropriated for any previous fiscal year.''.

     SEC. 706. WORKER TRAINING AND EDUCATION GRANTS.

       Section 111(c)(12) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9611(c)(12)) is amended--
       (1) by striking ``$10,000,000'' and inserting 
     ``$40,000,000''; and
       (2) by striking ``each of fiscal years 1987,'' and all that 
     follows through ``1994'' and inserting ``each of fiscal years 
     2000 through 2004''.

                        TITLE VIII--DEFINITIONS

     SEC. 801. DEFINITIONS.

       Section 101 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601) (as 
     amended by section 101(c)) is amended by adding at the end 
     the following:
       ``(40) Brownfield site.--The term `brownfield site' means a 
     facility that has or is suspected of having environmental 
     contamination that--
       ``(A) could prevent the timely use, development, reuse, or 
     redevelopment of the facility; and
       ``(B) is relatively limited in scope or severity and can be 
     comprehensively assessed and readily analyzed.
       ``(41) Contaminant.--The term ``contaminant'', for purposes 
     of section 128 and paragraph (44), includes any hazardous 
     substance.
       ``(42) Grant.--The term ``grant'' includes a cooperative 
     agreement.
       ``(43) Local government.--The term ``local government'' has 
     the meaning given the term ``unit of general local 
     government'' in section 102(a) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5302(a)), except that the 
     term includes an Indian tribe.
       ``(44) Site assessment.--
       ``(A) In general.--The term ``site assessment'', for 
     purposes of sections 128 and 129 and paragraph (35) means an 
     investigation that determines the nature and extent of a 
     release or potential release of a hazardous substance at a 
     brownfield site and meets the requirements of subparagraph 
     (B).
       ``(B) Investigation.--For the purposes of this paragraph, 
     an investigation that meets the requirements of this 
     subparagraph--
       ``(i) shall include--

       ``(I) an onsite evaluation; and
       ``(II) sufficient testing, sampling, and other field-data-
     gathering activities to accurately determine whether the 
     brownfield site is contaminated and the threats to human 
     health and the environment posed by the release of 
     contaminants at the brownfield site; and

       ``(ii) may include--

       ``(I) review of such information regarding the brownfield 
     site and previous uses as is available at the time of the 
     review; and
       ``(II) an offsite evaluation, if appropriate.

       ``(45) Municipal solid waste.--
       ``(A) In general.--The term `municipal solid waste' means--
       ``(i) waste material generated by a household (including a 
     single or multifamily residence); and
       ``(ii) waste material generated by a commercial, 
     institutional, or industrial source, to the extent that the 
     waste material--

       ``(I) is essentially the same as waste normally generated 
     by a household; or
       ``(II) is collected and disposed of with other municipal 
     solid waste or municipal sewage sludge as part of normal 
     municipal solid waste collection services, and, with respect 
     to each source from which the waste material is collected, 
     qualifies for a de micromis exemption under section 107(r).

       ``(B) Examples.--Examples of municipal solid waste under 
     subparagraph (A) include food and yard waste, paper, 
     clothing, appliances, consumer product packaging, disposable 
     diapers, office supplies, cosmetics, glass and metal food 
     containers, elementary or secondary school science laboratory 
     waste, and household hazardous waste.
       ``(C) Exclusions.--The term `municipal solid waste' does 
     not include--
       ``(i) combustion ash generated by resource recovery 
     facilities or municipal incinerators; or
       ``(ii) waste material from manufacturing or processing 
     (including pollution control) operations that is not 
     essentially the same as waste normally generated by 
     households.
       ``(46) Municipality.--
       ``(A) In general.--The term `municipality' means a 
     political subdivision of a State.
       ``(B) Inclusions.--The term `municipality' includes--
       ``(i) a city, county, village, town, township, borough, 
     parish, school, school district, sanitation district, water 
     district, or other public entity performing local 
     governmental functions; and
       ``(ii) a natural person acting in the capacity of an 
     official, employee, or agent of a political subdivision of a 
     State or an entity described in clause (i) in the performance 
     of governmental functions.
       ``(47) Owner, operator, or lessee of residential 
     property.--
       ``(A) In general.--The term `owner, operator, or lessee of 
     residential property' means a person that--
       ``(i) owns, operates, manages, or leases residential 
     property; and
       ``(ii) uses or allows the use of the residential property 
     exclusively for residential purposes.
       ``(B) Residential property.--For the purposes of 
     subparagraph (A) the term `residential property' means a 
     single or multifamily residence (including incidental 
     accessory land, buildings, or improvements) that is used 
     exclusively for residential purposes.
       ``(48) Small nonprofit organization.--The term `small 
     nonprofit organization' means an organization that, at the 
     time of disposal--
       ``(A) did not distribute any part of its income or profit 
     to its members, directors, or officers;
       ``(B) employed not more than 100 paid individuals at the 
     chapter, office, or department disposing of the waste; and
       ``(C) was an organization described in section 501(c) of 
     the Internal Revenue Code of 1986 that is exempt from 
     taxation under section 501(a) of the Internal Revenue Code of 
     1986.
       ``(49) Affiliate; affiliated.--The terms `affiliate' and 
     `affiliated' have the meanings

[[Page 10641]]

     that those terms have in section 121.103 of title 13, Code of 
     Federal Regulations (or any successor regulation).
       ``(50) Municipal sewage sludge.--The term `municipal sewage 
     sludge' means solid, semisolid, or liquid residue removed 
     during the treatment of municipal wastewater, domestic 
     sewage, or other wastewater at or by publicly owned or 
     federally owned treatment works.''.

                            S. 1105--Summary


                    1. brownfields liability relief

       Finality for Buyers (limitation on liability for 
     prospective purchasers).
       Finality for Owners and Sellers (liability relief for 
     innocent landowners and contiguous property owners).


                         2. brownfields funding

       Grants to municipalities, states and tribes to assess 
     conditions at brownfields sites.
       Grants to municipalities, states and tribes to capitalize 
     revolving loan funds for cleanup of brownfields sites.
       Grants to states to develop and enhance state voluntary 
     cleanup programs.


                   3. small business liability relief

       Liability exemptions:
       De micromis (generators and transporters that send less 
     than 110 gallons of liquid material or less than 200 pounds 
     of solid material, or different amount determined by the 
     Administrator on a site-specific basis).
       Generators and transporters of municipal solid waste who 
     are small businesses, residential homeowners or small non-
     profits.
       Expedited settlement:
       De Minimis (presumed to be 1% or less of waste at site).
       Limited ability to pay.


        4. clarification of liability for recycling transactions

       Exemption for generators and transporters of recyclable 
     material, as provided in the Lott/Daschle bill in the 105th, 
     and endorsed buy ISRI, environmental groups, the 
     Administration and others.


 5. relief for generators and transporters of municipal waste and for 
                     municipal owners of landfills

       Cap on liability of generators and transporters of 
     municipal solid waste and sewage sludge, and of 
     municipalities that own or operate municipal landfills on the 
     NPL, per EPA 1998 policy that was negotiated with and has the 
     support of several municipal representatives (including 
     National Association of Counties, National League of Cities): 
     expedited settlement based on dollar per ton limits, for 
     generators and transporters; percentage of total costs cap 
     for owners and operators.


                               6. funding

       Authorization levels consistent with recent years and, 
     consistent with past, majority of funding from the Superfund 
     trust fund, with $250 million from general revenues.
       EPA continue to provide orphan funding as incentive for 
     parties to enter into cleanup settlements.
                                 ______
                                 
      By Mr. TORRICELLI (for himself and Ms. Snowe):
  S. 1106. A bill to amend the Public Health Service Act and Employee 
Retirement Income Security Act of 1974 to require that group and 
individual health insurance coverage and group health plans provide 
coverage for qualified individuals for bone mass measurement (bone 
density testing) to prevent fractures associated with osteoporosis; to 
the Committee on Health, Education, Labor, and Pensions.


    early detection and prevention of osteoporosis and related bone 
                          diseases act of 1999

  Mr. TORRICELLI. Mr. President, I rise today to introduce the Early 
Detection and Prevention of Osteoporosis and Related Bone Diseases Act 
of 1999 along with my colleague from Maine, Senator Snowe.
  Osteoporosis and other related bone diseases pose a major public 
health threat. More than 28 million Americans, 80 percent of whom are 
women, suffer from, or are at risk for, osteoporosis. Between three and 
four million Americans suffer from related bone diseases like Paget's 
disease or osteogenesis imperfecta. Today, in the United States, 10 
million individuals already have osteoporosis and 18 million more have 
low bone mass, placing them at increased risk.
  Osteoporosis is often called the ``silent disease'' because bone loss 
occurs without symptoms. People often do not know they have 
osteoporosis until their bones become so weak that a sudden bump or 
fall causes a fracture or a vertebra to collapse. Every year, there are 
1.5 million bone fractures caused by osteoporosis. Half of all women, 
and one-eighth of all men, age 50 or older, will suffer a bone fracture 
due to osteoporosis.
  Osteoporosis is a progressive condition that has no known cure; thus, 
prevention and treatment are key. The Early Detection and Prevention of 
Osteoporosis and Related Bone Diseases Act of 1999 seeks to combat 
osteoporosis, and related bone diseases like Paget's disease by 
requiring private health plans to cover bone mass measurement tests for 
qualified individuals who are at risk for developing osteoporosis.
  Bone mass measurement is the only reliable method of detecting 
osteoporosis in its early stages. The test is non-invasive and painless 
and is as predictive of future fractures as high cholesterol or high 
blood pressure is of heart disease or stroke. This provision is similar 
to a provision in the Balanced Budget Act of 1997 that requires 
Medicare coverage of bone mass measurements.
  Medical experts agree that osteoporosis is preventable. Thus, if the 
toll of osteoporosis and other related bone diseases is to be reduced, 
the commitment to prevention and treatment must be significantly 
increased.
  Last year, Congress reauthorized the Women's Health Research and 
Prevention Act. This legislation authorized $3 million for a national 
resource center to increase public knowledge and awareness of 
osteoporosis, and $40 million for osteoporosis research at the National 
Institutes of Health (NIH). This was an important first step in the 
fight against osteoporosis. Congress must now maintain its commitment 
to prevention by ensuring women have access to bone mass measurement 
tests.
  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. 1106

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

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Early 
     Detection and Prevention of Osteoporosis and Related Bone 
     Diseases Act of 1999''.
       (b) Findings.--Congress makes the following findings:
       (1) Nature of osteoporosis.--
       (A) Osteoporosis is a disease characterized by low bone 
     mass and structural deterioration of bone tissue leading to 
     bone fragility and increased susceptibility to fractures of 
     the hip, spine, and wrist.
       (B) Osteoporosis has no symptoms and typically remains 
     undiagnosed until a fracture occurs.
       (C) Once a fracture occurs, the condition has usually 
     advanced to the stage where the likelihood is high that 
     another fracture will occur.
       (D) There is no cure for osteoporosis, but drug therapy has 
     been shown to reduce new hip and spine fractures by 50 
     percent and other treatments, such as nutrition therapy, have 
     also proven effective.
       (2) Incidence of osteoporosis and related bone diseases.--
       (A) 28 million Americans have (or are at risk for) 
     osteoporosis, 80 percent of which are women.
       (B) Osteoporosis is responsible for 1.5 million bone 
     fractures annually, including more than 300,000 hip 
     fractures, 700,000 vertebral fractures and 200,000 fractures 
     of the wrists.
       (C) Half of all women, and one-eighth of all men, age 50 or 
     older will have a bone fracture due to osteoporosis.
       (D) Between 3 and 4 million Americans have Paget's disease, 
     osteogenesis imperfecta, hyperparathyroidism, and other 
     related metabolic bone diseases.
       (3) Impact of osteoporosis.--The cost of treating 
     osteoporosis is significant:
       (A) The annual cost of osteoporosis in the United States is 
     $13.8 billion and is expected to increase precipitously 
     because the proportion of the population comprised of older 
     persons is expanding and each generation of older persons 
     tends to have a higher incidence of osteoporosis than 
     preceding generations.
       (B) The average cost in the United States of repairing a 
     hip fracture due to osteoporosis is $32,000.
       (C) Fractures due to osteoporosis frequently result in 
     disability and institutionalization of individuals.
       (D) Because osteoporosis is a progressive condition causing 
     fractures primarily in aging individuals, preventing 
     fractures, particularly for post menopausal women before they 
     become eligible for medicare, has a significant potential of 
     reducing osteoporosis-related costs under the medicare 
     program.
       (4) Use of bone mass measurement.--

[[Page 10642]]

       (A) Bone mass measurement is the only reliable method of 
     detecting osteoporosis at an early stage.
       (B) Low bone mass is as predictive of future fractures as 
     is high cholesterol or high blood pressure of heart disease 
     or stroke.
       (C) Bone mass measurement is a non-invasive, painless, and 
     reliable way to diagnose osteoporosis before costly fractures 
     occur.
       (D) Under section 4106 of the Balanced Budget Act of 1997, 
     Medicare provides coverage, effective July 1, 1999, for bone 
     mass measurement for qualified individuals who are at risk of 
     developing osteoporosis.
       (5) Research on osteoporosis and related bone diseases.--
       (A) Technology now exists, and new technology is 
     developing, that will permit the early diagnosis and 
     prevention of osteoporosis and related bone diseases as well 
     as management of these conditions once they develop.
       (B) Funding for research on osteoporosis and related bone 
     diseases is severely constrained at key research institutes, 
     including the National Institute of Arthritis and 
     Musculoskeletal and Skin Diseases, the National Institute on 
     Aging, the National Institute of Diabetics and Digestive and 
     Kidney Diseases, the National Institute of Dental Research, 
     and the National Institute of Child Health and Human 
     Development.
       (C) Further research is needed to improve medical knowledge 
     concerning--
       (i) cellular mechanisms related to the processes of bone 
     resorption and bone formation, and the effect of different 
     agents on bone remodeling;
       (ii) risk factors for osteoporosis, including newly 
     discovered risk factors, risk factors related to groups not 
     ordinarily studied (such as men and minorities), risk factors 
     related to genes that help to control skeletal metabolism, 
     and risk factors relating to the relationship of aging 
     processes to the development of osteoporosis;
       (iii) bone mass measurement technology, including more 
     widespread and cost-effective techniques for making more 
     precise measurements and for interpreting measurements;
       (iv) calcium (including bioavailability, intake 
     requirements, and the role of calcium in building heavier and 
     denser skeletons), and vitamin D and its role as an essential 
     vitamin in adults;
       (v) prevention and treatment, including the efficacy of 
     current therapies, alternative drug therapies for prevention 
     and treatment, and the role of exercise; and
       (vi) rehabilitation.
       (D) Further educational efforts are needed to increase 
     public and professional knowledge of the causes of, methods 
     for avoiding, and treatment of osteoporosis.

     SEC. 2. REQUIRING COVERAGE OF BONE MASS MEASUREMENT UNDER 
                   HEALTH PLANS.

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

     ``SEC. 2707. STANDARDS RELATING TO BENEFITS FOR BONE MASS 
                   MEASUREMENT.

       ``(a) Requirements for Coverage of Bone Mass Measurement.--
     A group health plan, and a health insurance issuer offering 
     group health insurance coverage, shall include (consistent 
     with this section) coverage for bone mass measurement for 
     beneficiaries and participants who are qualified individuals.
       ``(b) Definitions Relating to Coverage.--In this section:
       ``(1) Bone mass measurement.--The term `bone mass 
     measurement' means a radiologic or radioisotopic procedure or 
     other procedure approved by the Food and Drug Administration 
     performed on an individual for the purpose of identifying 
     bone mass or detecting bone loss or determining bone quality, 
     and includes a physician's interpretation of the results of 
     the procedure. Nothing in this paragraph shall be construed 
     as requiring a bone mass measurement to be conducted in a 
     particular type of facility or to prevent such a measurement 
     from being conducted through the use of mobile facilities 
     that are otherwise qualified.
       ``(2) Qualified individual.--The term `qualified 
     individual' means an individual who--
       ``(A) is an estrogen-deficient woman at clinical risk for 
     osteoporosis;
       ``(B) has vertebral abnormalities;
       ``(C) is receiving chemotherapy or long-term 
     gluococorticoid (steroid) therapy;
       ``(D) has primary hyperparathyroidism, hyperthyroidism, or 
     excess thyroid replacement;
       ``(E) is being monitored to assess the response to or 
     efficacy of approved osteoporosis drug therapy;
       ``(F) is a man with a low trauma fracture; or
       ``(G) the Secretary determines is eligible.
       ``(c) Limitation on Frequency Required.--Taking into 
     account the standards established under section 1861(rr)(3) 
     of the Social Security Act, the Secretary shall establish 
     standards regarding the frequency with which a qualified 
     individual shall be eligible to be provided benefits for bone 
     mass measurement under this section. The Secretary may vary 
     such standards based on the clinical and risk-related 
     characteristics of qualified individuals.
       ``(d) Restrictions on Cost-Sharing.--
       ``(1) In general.--Subject to paragraph (2), nothing in 
     this section shall be construed as preventing a group health 
     plan or issuer from imposing deductibles, coinsurance, or 
     other cost-sharing in relation to bone mass measurement under 
     the plan (or health insurance coverage offered in connection 
     with a plan).
       ``(2) Limitation.--Deductibles, coinsurance, and other 
     cost-sharing or other limitations for bone mass measurement 
     may not be imposed under paragraph (1) to the extent they 
     exceed the deductibles, coinsurance, and limitations that are 
     applied to similar services under the group health plan or 
     health insurance coverage.
       ``(e) Prohibitions.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan, solely for the purpose of avoiding the 
     requirements of this section;
       ``(2) provide incentives (monetary or otherwise) to 
     individuals to encourage such individuals not to be provided 
     bone mass measurements to which they are entitled under this 
     section or to providers to induce such providers not to 
     provide such measurements to qualified individuals;
       ``(3) prohibit a provider from discussing with a patient 
     osteoporosis preventive techniques or medical treatment 
     options relating to this section; or
       ``(4) penalize or otherwise reduce or limit the 
     reimbursement of a provider because such provider provided 
     bone mass measurements to a qualified individual in 
     accordance with this section.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to require an individual who is a participant or 
     beneficiary to undergo bone mass measurement.
       ``(g) Notice.--A group health plan under this part shall 
     comply with the notice requirement under section 714(g) of 
     the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements of this section as if such 
     section applied to such plan.
       ``(h) Level and Type of Reimbursements.--Nothing in this 
     section shall be construed to prevent a group health plan or 
     a health insurance issuer offering group health insurance 
     coverage from negotiating the level and type of reimbursement 
     with a provider for care provided in accordance with this 
     section.
       ``(i) Preemption.--
       ``(1) In general.--The provisions of this section do not 
     preempt State law relating to health insurance coverage to 
     the extent such State law provides greater benefits with 
     respect to osteoporosis detection or prevention.
       ``(2) Construction.--Section 2723(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (B) Conforming amendment.--Section 2723(c) of such Act (42 
     U.S.C. 300gg-23(c)) is amended by striking ``section 2704'' 
     and inserting ``sections 2704 and 2707''.
       (2) ERISA amendments.--
       (A) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 714. STANDARDS RELATING TO BENEFITS FOR BONE MASS 
                   MEASUREMENT.

       ``(a) Requirements for Coverage of Bone Mass Measurement.--
     A group health plan, and a health insurance issuer offering 
     group health insurance coverage, shall include (consistent 
     with this section) coverage for bone mass measurement for 
     beneficiaries and participants who are qualified individuals.
       ``(b) Definitions Relating to Coverage.--In this section:
       ``(1) Bone mass measurement.--The term `bone mass 
     measurement' means a radiologic or radioisotopic procedure or 
     other procedure approved by the Food and Drug Administration 
     performed on an individual for the purpose of identifying 
     bone mass or detecting bone loss or determining bone quality, 
     and includes a physician's interpretation of the results of 
     the procedure. Nothing in this paragraph shall be construed 
     as requiring a bone mass measurement to be conducted in a 
     particular type of facility or to prevent such a measurement 
     from being conducted through the use of mobile facilities 
     that are otherwise qualified.
       ``(2) Qualified individual.--The term `qualified 
     individual' means an individual who--
       ``(A) is an estrogen-deficient woman at clinical risk for 
     osteoporosis;
       ``(B) has vertebral abnormalities;
       ``(C) is receiving chemotherapy or long-term 
     gluococorticoid (steroid) therapy;
       ``(D) has primary hyperparathyroidism, hyperthyroidism, or 
     excess thyroid replacement;
       ``(E) is being monitored to assess the response to or 
     efficacy of approved osteoporosis drug therapy;

[[Page 10643]]

       ``(F) is a man with a low trauma fracture; or
       ``(G) the Secretary determines is eligible.
       ``(c) Limitation on Frequency Required.--The standards 
     established under section 2707(c) of the Public Health 
     Service Act shall apply to benefits provided under this 
     section in the same manner as they apply to benefits provided 
     under section 2707 of such Act.
       ``(d) Restrictions on Cost-Sharing.--
       ``(1) In general.--Subject to paragraph (2), nothing in 
     this section shall be construed as preventing a group health 
     plan or issuer from imposing deductibles, coinsurance, or 
     other cost-sharing in relation to bone mass measurement under 
     the plan (or health insurance coverage offered in connection 
     with a plan).
       ``(2) Limitation.--Deductibles, coinsurance, and other 
     cost-sharing or other limitations for bone mass measurement 
     may not be imposed under paragraph (1) to the extent they 
     exceed the deductibles, coinsurance, and limitations that are 
     applied to similar services under the group health plan or 
     health insurance coverage.
       ``(e) Prohibitions.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan, solely for the purpose of avoiding the 
     requirements of this section;
       ``(2) provide incentives (monetary or otherwise) to 
     individuals to encourage such individuals not to be provided 
     bone mass measurements to which they are entitled under this 
     section or to providers to induce such providers not to 
     provide such measurements to qualified individuals;
       ``(3) prohibit a provider from discussing with a patient 
     osteoporosis preventive techniques or medical treatment 
     options relating to this section; or
       ``(4) penalize or otherwise reduce or limit the 
     reimbursement of a provider because such provider provided 
     bone mass measurements to a qualified individual in 
     accordance with this section.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to require an individual who is a participant or 
     beneficiary to undergo bone mass measurement.
       ``(g) Notice Under Group Health Plan.--The imposition of 
     the requirements of this section shall be treated as a 
     material modification in the terms of the plan described in 
     section 102(a)(1), for purposes of assuring notice of such 
     requirements under the plan; except that the summary 
     description required to be provided under the last sentence 
     of section 104(b)(1) with respect to such modification shall 
     be provided by not later than 60 days after the first day of 
     the first plan year in which such requirements apply.
       ``(h) Preemption.--
       ``(1) In general.--The provisions of this section do not 
     preempt State law relating to health insurance coverage to 
     the extent such State law provides greater benefits with 
     respect to osteoporosis detection or prevention.
       ``(2) Construction.--Section 731(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (B) Conforming amendments.--
       (i) Section 731(c) of such Act (29 U.S.C. 1191(c)), as 
     amended by section 603(b)(1) of Public Law 104-204, is 
     amended by striking ``section 711'' and inserting ``sections 
     711 and 714''.
       (ii) Section 732(a) of such Act (29 U.S.C. 1191a(a)), as 
     amended by section 603(b)(2) of Public Law 104-204, is 
     amended by striking ``section 711'' and inserting ``sections 
     711 and 714''.
       (iii) The table of contents in section 1 of such Act is 
     amended by inserting after the item relating to section 713 
     the following new item:

``Sec. 714. Standards relating to benefits for bone mass measurement.

       (b) Individual Health Insurance.--
       (1) In general.--Part B of title XXVII of the Public Health 
     Service Act is amended by inserting after section 2752 (42 
     U.S.C. 300gg-52) the following new section:

     ``SEC. 27530. STANDARDS RELATING TO BENEFITS FOR BONE MASS 
                   MEASUREMENT.

       ``(a) In General.--The provisions of section 2707 (other 
     than subsection (g)) shall apply to health insurance coverage 
     offered by a health insurance issuer in the individual market 
     in the same manner as it applies to health insurance coverage 
     offered by a health insurance issuer in connection with a 
     group health plan in the small or large group market.
       ``(b) Notice.--A health insurance issuer under this part 
     shall comply with the notice requirement under section 714(g) 
     of the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements referred to in subsection (a) as 
     if such section applied to such issuer and such issuer were a 
     group health plan.
       ``(c) Preemption.--
       ``(1) In general.--The provisions of this section do not 
     preempt State law relating to health insurance coverage to 
     the extent such State law provides greater benefits with 
     respect to osteoporosis detection or prevention.
       ``(2) Construction.--Section 2762(a) shall not be construed 
     as superseding a State law described in paragraph (1).''.
       (2) Conforming amendments.--Section 2762(b)(2) of such Act 
     (42 U.S.C. 300gg-62(b)(2)), as added by section 605(b)(3)(B) 
     of Public Law 104-204, is amended by striking ``section 
     2751'' and inserting ``sections 2751 and 2753''.
       (c) Effective Dates.--
       (1) Group health plans.--The amendments made by subsection 
     (a) shall apply with respect to group health plans for plan 
     years beginning on or after January 1, 2000.
       (2) Individual market.--The amendments made by subsection 
     (b) shall apply with respect to health insurance coverage 
     offered, sold, issued, renewed, in effect, or operated in the 
     individual market on or after such date.
                                 ______
                                 
      By Mr. WARNER:
  S. 1107. A bill to reform the conduct of Federal elections; to the 
Committee on Rules and Administration.


      constitutional and effective reform of campaigns act of 1999

  Mr. WARNER. Mr. President, today I introduce the Constitutional and 
Effective Reform of Campaigns Act, or ``CERCA'', which I first 
introduced during the 105th Congress. This legislation is the product 
of two years of hearings during my Chairmanship of the Rules Committee, 
discussions with numerous experts, party officials, and candidates, and 
nearly two decades of participating in campaigns and campaign finance 
debates in the Senate. Many of the proposals in this bill have been 
made in some form by several of my Senate colleagues and by Members of 
the House, and I readily acknowledge drawing on their expertise. The 
important discussions last Congress during the meetings of a task force 
headed by Senator Nickles, at the request of Majority Leader Lott, were 
invaluable.
  This legislation offers an opportunity for bipartisan support. It is 
a good faith effort to strike middle ground between those who believe 
public financing of campaigns is the solution, and those who believe 
the solution is to remove current regulations. It offers a package of 
proposals which realistically can be achieved with bipartisan support 
and meet the desire of the majority of Americans who believe that our 
present system can be reformed. In my judgment, we will not succeed 
with any measure of campaign reform in this complicated field without a 
bipartisan consensus.
  In drafting this legislation, I began with four premises. First, all 
provisions had to be consistent with the First Amendment: Congress 
would be acting in bad faith to adopt provisions which have a 
likelihood of being struck down by the federal courts. Second, I oppose 
public financing and mandating ``free'' or reduced-cost media time 
which in my mind is neither free nor a good policy idea. Why should 
seekers of federal office get free time, while candidates for state 
office or local office--from governors to local sheriffs--do not 
receive comparable free benefits? Such an inequity and imbalance will 
breed friction between federal and state office seekers. Third, I 
believe we should try to increase the role of citizens and the 
political parties. Fourth, any framework of campaign reform legislation 
must respect and protect the constitutional right of individuals, 
groups, and organizations to participate in advocacy concerning 
political issues.
  This bill is designed to be a ``bilateral disarmament'' on the tough 
issues of soft money and union dues: each side must give up equivalent 
ground. The Republicans should give ground by placing a cap on soft 
money which has tended to favor our side. And Democrats should give 
ground by allowing union members to decide voluntarily for themselves 
whether to contribute the portion of dues which goes to political 
contributions or activities.
  Specifically, on the issue of soft money, no reform can be considered 
true reform without placing limits on the corporate and union donations 
to the national political parties. This bill places a $100,000 cap on 
such donations. While this provision addresses the public's legitimate 
concern over the propriety of these large donations, it allows the 
political parties sufficient funds to maintain their headquarters and 
conduct their grassroots efforts. In addition, the current limits on 
``hard'' contributions must be updated. The

[[Page 10644]]

ability of citizens to contribute voluntarily to a wide range of 
candidates and to their parties is fundamental.
  At the same time, the practice of mandatory union dues going to 
partisan politics without union members' consent must end: it is 
counter to all the political freedoms that make America a true 
democracy. The concept of ``paycheck protection'' must be included in 
any campaign finance reform, so that these deductions are voluntary, 
whether these dues fund direct contributions to candidates or parties, 
or pay for undisclosed spending on phone banks, get-out-the-vote 
efforts, literature, and television ads.
  Under this legislation, unions would be required to obtain advance, 
written consent before deducting money for political activities from 
union members' paychecks. The present state of the law requires most 
union workers to give up their rights to participate in the union if 
they seek refunds of that portion of dues going to politics. In 
addition, this section would strengthen the reporting requirements for 
unions engaged in political activities and enhance an aggrieved union 
member's right to challenge a union's determination of the portion of 
dues going to political activities.
  In the Senate debates thus far, there has been much discussion about 
whether corporations should be required to obtain shareholder approval 
to make political contributions. This is an issue which warrants 
consideration. My proposal not only limits these corporate and union 
contributions to $100,000, it also includes a requirement that 
companies disclose their donations to federal political parties in 
their annual reports. And under current policies of the Securities and 
Exchange Commission, shareholders have the same rights to make 
recommendations to boards of directors on the propriety of political 
donations as they do on any business issue related to the company.
  In addition, the SEC is in the process of making it easier for 
shareholders to raise questions related to social policy matters at 
annual meetings. I am monitoring how these changes are implemented: if 
they are insufficient to guarantee adequate rights to shareholders, I 
will consider amending my bill to protect these rights.
  As an aside, I reject the notion that the status of union members is 
similar to those who belong to groups such as the National Rifle 
Association or the Sierra Club. Nobody is compelled to join these types 
of organizations, and those that do, know or should know that their 
dues are going in part to political causes.
  Furthermore, I considered including in this bill a narrowly-tailored 
disclosure requirement for individuals and groups spending large sums 
on public advertising affecting the public image of candidates during 
election seasons. However, in keeping with my first basic premise that 
reforms must pass the federal court test of constitutionality, I 
concluded that such a provision, in view of a long line of Supreme 
Court cases, likely would be declared unconstitutional, and thus I did 
not include the provision.
  The McCain-Feingold bill was thoroughly debated in the Senate, and 
any objective observer of the Senate would agree that we are genuinely 
deadlocked. This body needs to move beyond the debate of McCain-
Feingold. I hope that all Members will review my bill as an objective 
and pragmatic approach to current problems with our campaign system. I 
encourage other Members to come forward, as I have, with proposals 
which objectively represent pragmatic approaches to what can be 
achieved. I do not claim to have the only solution: those with other 
ideas should come forward.
  In addition to the issues of soft money and union dues discussed 
above, nine other fundamental problems--all of which can be solved in a 
constitutional manner--are the most pressing. Here are these problems, 
in no particular order, and my proposed solutions:
  Problem 1: Politicians spend too much time fundraising, at the 
expense of their legislative duties for incumbents, and, for both 
incumbents and challengers, at the expense of debating the issues with 
voters.
  Solution: The current individual contribution limit of $1,000 has not 
been raised, or even indexed for inflation, for over 20 years. This 
fact requires that candidates must spend more and more time seeking 
more and more donors. The limit should be doubled, as well as indexed 
for inflation.
  Problem 2: The influence of voters on campaigns has been diminished 
by the activities of political action committees and interest groups.
  Solutions: I propose a $100 tax credit for contributions made by 
citizens, with incomes under specified levels, to Senate and House 
candidates in their states: this credit should spark an influx of small 
dollar contributions to balance the greater ability of citizens with 
higher incomes to participate.
  In addition, the increased individual contribution limit should 
balance the activities of political action committees.
  Problem 3: The influence of voters on campaigns has been diminished 
by contributions from those not eligible to vote.
  Solution: If you are not eligible to vote, you should not contribute 
to campaigns. My bill would prohibit contributions by those ineligible 
to vote, including non-citizens, children, and persons under felony 
convictions. It also codifies current regulations concerning political 
donations by domestic subsidiaries of foreign companies.
  Problem 4: Compared to incumbents, challengers face greater 
difficulties raising funds and communicating with voters, particularly 
at the outset of a campaign.
  Solutions: This legislation will allow candidates to receive ``seed 
money'' contributions of up to $10,000 from individuals and political 
action committees. This provision should help get candidacies off the 
ground. The total amount of these ``seed money'' contributions could 
not exceed $100,000 for House candidates or $300,000 for Senate 
candidates. To meet the constitutional test, this provision would apply 
to both challengers and incumbents alike, but in the case of an 
incumbent with money carried over from a prior cycle, those funds would 
count against the seed money limit.
  Second, Senate incumbents would be barred from using the franking 
privilege to send out mass mailings during the election year, rather 
than the sixty day ban in current law.
  Problem 5: Candidates with personal wealth have a distinct advantage 
through their constitutional right to spend their own funds.
  Solution: If a candidate spends more than $25,000 of his or her own 
money, the individual contribution limits would be raised to $10,000 so 
that candidates could raise money to counter that personal spending. 
Again, to meet constitutional review, this provision would apply to all 
candidates.
  Problem 6: Current laws prohibiting fundraising activities on federal 
property are weak and insufficient.
  Solution: The current ban on fundraising on federal property was 
written before the law created such terms as ``hard'' and ``soft'' 
money. This bill updates this law to require that no fundraising take 
place on federal property.
  Problem 7: Reporting requirements and public access to disclosure 
statements are weak and inadequate.
  Solutions: Under this proposal, the FEC would be required to post 
reports on the Internet for all to see, and to require that candidates, 
and groups making independent expenditures, make faster and more 
complete reports. In addition, registered lobbyists would be required 
to report their campaign contributions and those of their employer on 
their lobbyist disclosure reports.
  Problem 8: The Federal Election Commission is in need of procedural 
and substantive reform.
  Solutions: This legislation contains a number of procedural and 
substantive reforms of the FEC, including term limits for 
commissioners, and increases in penalties for serious violations.
  Problem 9: The safeguards designed to protect the integrity of our 
elections are compromised by weak aspects of federal laws regulating 
voter registration and voting.

[[Page 10645]]

  Solutions: The investigations of contested elections in Louisiana and 
California have shown significant weaknesses in federal laws designed 
to safeguard the registration and voting processes. The requirement 
that states allow registration by mail has undermined confidence that 
only qualified voters are registering to vote and only registering 
once: states should be allowed to decide whether to allow mail-in 
registrations. In addition, states should be allowed to require proof 
of citizenship when registering and proof of identification when 
voting: we require a photo ID to buy beer or cigarettes and can 
certainly allow states to protect the voting process by requiring a 
photo ID.
  Lastly, this bill would allow states to purge inactive voters and to 
allow state law to govern whether voters who move without reregistering 
should be allowed to vote.
  These are the problems which I believe can be solved in a bipartisan 
fashion. Attached to this statement is a section by section review of 
the legislation. I look forward to working with my colleagues to enact 
meaningful campaign reform, by looking at reform beyond the usual sound 
bites and addressing the real problems with our present campaign 
system.
  Mr. President, I ask unanimous consent that the text of the bill 
summary be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   Constitutional and Effective Reform of Campaigns Act--Section-by-
                                Section


              TITLE I--ENHANCEMENT OF CITIZEN INVOLVEMENT

       Section 101: Prohibits those ineligible to vote (non-
     citizens, minors, felons) from making contributions (`hard 
     money') or donations (`soft money'). Also bans foreign aliens 
     making independent expenditures and codifies FEC regulations 
     on foreign control of domestic donations.
       Section 102: Updates maximum individual contribution limit 
     to $2000 per election (primary and general) and indexes both 
     individual and PAC limits in the future.
       Section 103: Provides a tax credit up to $100 for 
     contributions to in-state candidates for Senate and House for 
     incomes up to $60,000 ($200 for joint filers up to $120,000).


          TITLE II--LEVELING THE PLAYING FIELD FOR CANDIDATES

       Section 201: Seed money provision: Senate candidates may 
     collect $300,000 and House candidates $100,000 (minus any 
     funds carried over from a prior cycle) in contributions up to 
     $10,000 from individuals and PAC's.
       Section 202: `Anti-millionaires' provision: when one 
     candidate spends over $25,000 of personal funds, a candidate 
     may accept contributions up to $10,000 from individuals and 
     PAC's up to the amount of personal spending minus a 
     candidate's funds carried over from a prior cycle and own use 
     of personal funds.
       Section 203: Bans use of Senate frank for mass mailings 
     from January 1 to election day for incumbents seeking 
     reelection.


          TITLE III--VOLUNTARINESS OF POLITICAL CONTRIBUTIONS

       Section 301: Union dues provision: Labor organizations must 
     obtain prior, written authorization for portion of dues or 
     fees not to be used for representation: Establishes civil 
     action for aggrieved employee. Requires employers to post 
     notice of rights. Amends reporting statute to require better 
     disclosure of expenses unrelated to representation.
       Section 302: Corporations must disclose soft money 
     donations in annual reports.


               TITLE IV--ELIMINATION OF CAMPAIGN EXCESSES

       Section 410: Adds soft money donations to present ban on 
     fundraising on federal property and to other criminal 
     statutes.
       Section 402: Hard money contributions or soft money 
     donations over $500 which a political committee intends to 
     return because of illegality must be transferred to the FEC 
     and may be given to the Treasury as part of a civil or 
     criminal action.
       Section 403: `Soft' and `hard' money provisions. Soft money 
     cap: no national party, congressional committee or senatorial 
     committee shall accept donations from any source exceeding 
     $100,000 per year. Hard money increases: limit raised from 
     $25,000 to $50,000 per individual per year with no sub-limit 
     to party committees.
       Section 404: Codifies FEC regulations banning conversion of 
     campaign funds to personal use.


                      TITLE V--ENHANCED DISCLOSURE

       Section 501: Additional reporting requirements for 
     candidates: weekly reports for last month of general 
     election, 24-hour disclosure of large contributions extended 
     to 90 days before election, and end of `best efforts' waiver 
     for failure to obtain occupation of contributors over $200.
       Section 502: FEC shall make reports filed available on the 
     Internet.
       Section 503: 24-hour disclosure of independent expenditures 
     over $1,000 in last 20 days before election, and of those 
     over $10,000 made anytime.
       Section 504: Registered lobbyists shall include their own 
     contributions and soft money donations and those of their 
     employers and the employers' coordinated PAC's on lobbyist 
     disclosure forms.


              TITLE VI--FEDERAL ELECTION COMMISSION REFORM

       Section 601: FEC shall develop and provide, at no cost, 
     software to file reports, and shall issue regulations 
     mandating electronic filing and allowing for filing by fax.
       Section 602: Limits commissioners to one term of eight 
     years.
       Section 603: Increases penalties for knowing and willful 
     violations to greater of $15,000 or 300 percent of the 
     contribution or expenditure.
       Section 604: Requires that FEC create a schedule of 
     penalties for minor reporting violations.
       Section 605: Establishes availability of oral arguments at 
     FEC when requested and two commissioners agree. Also requires 
     that FEC create index of Commission actions.
       Section 606: Changes reporting cycle for committees to 
     election cycle rather than calendar year.
       Section 607: Classifies FEC general counsel and executive 
     director as presidential appointments requiring Senate 
     confirmation.


       TITLE VII--IMPROVEMENTS TO NATIONAL VOTER REGISTRATION ACT

       Section 701: Repeals requirement that states allow 
     registration by mail.
       Section 702: Requires that registrants for federal 
     elections provide social security number and proof of 
     citizenship.
       Section 703: Provides states the option of removing 
     registrants from eligible list of federal voters who have not 
     voted in two federal elections and did not respond to 
     postcard.
       Section 704: Allows states to require photo ID at the 
     polls.
       Section 705: Repeals requirement that states allow people 
     to change their registration at the polls and still vote.
                                 ______
                                 
      By Mr. COCHRAN (for himself, Mrs. Lincoln, Mr. Coverdell, Mr. 
        Sessions, Mr. Cleland, Mr. Hollings, Mr. Shelby, Mr. Robb, and 
        Mr. Hutchinson):
  S. 1108. A bill to amend the Federal Crop Insurance Act to improve 
crop insurance coverage and administration, and for other purposes; to 
the Committee on Agriculture, Nutrition, and Forestry.


                   crop insurance equity act of 1999

  Mr. COCHRAN. Mr. President, I am pleased to be joined today by my 
colleague from Arkansas, Mrs. Lincoln, in introducing the Crop 
Insurance Equity Act of 1999 to reform the federal crop insurance 
program. The other cosponsors of the bill are: Mr. Coverdell, Mr. 
Sessions, Mr. Cleland, Mr. Hollings, Mr. Shelby, Mr. Robb, and Mr. 
Hutchinson.
       The Crop Insurance Equity Act of 1999 is based on several 
     principles. First, we do not believe that the crop insurance 
     program should be the next iteration of a farm bill. 
     Therefore, this bill maintains the current policy with regard 
     to federal subsidy for revenue insurance products.
       We developed this bill with the intent of addressing the 
     reasons farmers in our states have found crop insurance to be 
     impractical. We believe that farmers from Washington to 
     Florida and Maine to California will find this bill worthy of 
     their support.
       Our bill establishes a process under which the current 
     rates and rating methods and procedures will be re-evaluated 
     by USDA to examine factors not currently considered. This may 
     lower crop insurance rates for some commodities. However, 
     because all current rating methodologies are actuarially 
     sound, if the re-evaluation would result in an increased 
     rate, the current method must remain in place.
       This bill also establishes a fixed percentage as the 
     federal contribution to a farmer's crop insurance premium. 
     Current law provides higher contributions for lower levels of 
     coverage. This bill would treat all farmers fairly.
       We believe that one of the simplest ways to make crop 
     insurance more attractive is to make it operate more like 
     other common forms of insurance, such as homeowners or auto 
     insurance. This bill establishes a process of discounts and a 
     menu of policy options from which farmers can choose. These 
     include discounts for coverage of larger, less risky units of 
     production, employment of technologically advanced 
     agricultural management practices, and the reinstatement of 
     good experience discounts. In addition, farmers will be able 
     to choose whether to purchase specific coverages for 
     prevented planting, quality losses, and cost of production 
     coverage.
       Mr. President, this bill raises the basic coverage level 
     for the lowest crop insurance unit--catastrophic coverage--so 
     that all farmers will benefit from this legislation. For the 
     same minimal fee as established in

[[Page 10646]]

     current law, this bill will provide catastrophic coverage for 
     sixty percent of a farmer's historical production at seventy 
     percent of the market price.
       Our bill also makes other important changes to the program. 
     It protects new farmers or those who rent new land or produce 
     new crops by ensuring they are assigned a fair yield until 
     they generate adequate actual production data.
  The legislation improves the management and oversight of the crop 
insurance program by establishing the Farm Service Agency as the sole 
agency for acreage and yield record keeping within USDA. It 
restructures the board of directors of the Federal Crop Insurance 
Corporation to include more farmers, and establishes a new office to 
work with private sector companies who develop new crop insurance 
products.
  One of the major complaints that I have heard about crop insurance is 
the abuse and fraud that exists in the current program. To address this 
complaint, our bill also improves the monitoring of agents and 
adjusters to combat fraud, and strengthens the penalties available to 
USDA for companies, agents, and producers who engage in fraudulent 
activities.
  I believe that we have developed a sound proposal which Senators will 
find good reason to support.
  Mr. President, I ask unanimous consent that the bill and a summary of 
the legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1108

       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 ``Crop 
     Insurance Equity Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--CROP INSURANCE COVERAGE

Sec. 101. Prevented planting.
Sec. 102. Alternative rating methodologies.
Sec. 103. Quality adjustment.
Sec. 104. Low-risk producer pilot program.
Sec. 105. Catastrophic risk protection.
Sec. 106. Loss adjustment.
Sec. 107. Cost of production plans of insurance.
Sec. 108. Discounts.
Sec. 109. Adjustments to subsidy levels.
Sec. 110. Sales closing dates.
Sec. 111. Assigned yields.
Sec. 112. Actual production history adjustment for disasters.
Sec. 113. Payment of portion of premium.
Sec. 114. Limitation on premiums included in underwriting gains.

                        TITLE II--ADMINISTRATION

Sec. 201. Board of Directors of Corporation.
Sec. 202. Office of Risk Management.
Sec. 203. Office of Private Sector Partnership.
Sec. 204. Penalties for false information.
Sec. 205. Regulations.
Sec. 206. Program compliance.
Sec. 207. Payments by cooperative associations.
Sec. 208. Limitation on double insurance.
Sec. 209. Consultation with State committees of Farm Service Agency.
Sec. 210. Records and reporting.
Sec. 211. Fees for plans of insurance.
Sec. 212. Flexible subsidy pilot program.
Sec. 213. Reinsurance agreements.
Sec. 214. Funding.

                    TITLE I--CROP INSURANCE COVERAGE

     SEC. 101. PREVENTED PLANTING.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) is amended by adding at the end the following:
       ``(7) Prevented planting.--
       ``(A) In general.--The Corporation shall offer coverage for 
     prevented planting of an agricultural commodity only as an 
     endorsement to a policy.
       ``(B) Equal coverage.--For each agricultural commodity for 
     which prevented planting coverage is available, the 
     Corporation shall offer an equal level of prevented planting 
     coverage.
       ``(C) Planting of substitute agricultural commodities.--In 
     the case of prevented planting coverage that is offered under 
     this paragraph, the Corporation shall allow producers that 
     have the coverage, and that are eligible to receive a 
     prevented planting indemnity, to plant an agricultural 
     commodity, other than the commodity covered by the prevented 
     planting coverage, on the acreage that the producer has been 
     prevented from planting to the original agricultural 
     commodity.
       ``(D) Ineligibility for coverage.--A substitute 
     agricultural commodity described in subparagraph (C) shall 
     not be eligible for coverage under a plan of insurance under 
     this title.''.

     SEC. 102. ALTERNATIVE RATING METHODOLOGIES.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) (as amended by section 101) is amended by adding at 
     the end the following:
       ``(8) Alternative rating methodologies.--
       ``(A) In general.--Not later than September 30, 2000, the 
     Corporation shall develop and implement alternative 
     methodologies for rating plans of insurance under subsections 
     (b) and (c), and rates for the plans of insurance, that take 
     into account--
       ``(i) producers that elect not to participate in the 
     Federal crop insurance program established under this title; 
     and
       ``(ii) producers that elect only to obtain catastrophic 
     risk protection under subsection (b).
       ``(B) Review and adjustment.--Effective for the 2001 and 
     subsequent crop years, the Corporation shall review and make 
     any necessary adjustments to methodologies and rates 
     established under this paragraph, based on (as determined by 
     the Corporation)--
       ``(i) expected future losses, with appropriate adjustment 
     of any historical data used in rating to remove--

       ``(I) the impact of adverse selection; and
       ``(II) data that no longer reflects the productive capacity 
     of the area;

       ``(ii) program errors; and
       ``(iii) any other factor that can cause errors in 
     methodologies and rates.
       ``(C) Implementation.--In developing, implementing, and 
     adjusting rating methodologies and rates under this 
     paragraph, the Corporation shall--
       ``(i) use methodologies for rating plans of insurance under 
     subsections (b) and (c) that result in the lowest premiums 
     payable by producers of an agricultural commodity in a 
     geographic area, as determined by the Corporation; and
       ``(ii) update the manner in which rates are applied at the 
     individual producer level, as determined by the Corporation.
       ``(D) Priority.--In developing, implementing, and adjusting 
     alternative methodologies for rating plans of insurance under 
     subsections (b) and (c) for agricultural commodities, the 
     Corporation shall provide the highest priority to 
     agricultural commodities with (as determined by the 
     Corporation)--
       ``(i) the largest average acreage; and
       ``(ii) the lowest percentage of producers that purchased 
     coverage under subsection (c).''.

     SEC. 103. QUALITY ADJUSTMENT.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) (as amended by section 102) is amended by adding at 
     the end the following:
       ``(9) Quality adjustment policies.--The Corporation shall 
     offer, only as an endorsement to a policy, coverage that 
     permits a reduction in the quantity of production of an 
     agricultural commodity produced during a crop year, or any 
     similar adjustment, that results from the agricultural 
     commodity not meeting the quality standards established in 
     the policy.''.

     SEC. 104. LOW-RISK PRODUCER PILOT PROGRAM.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) (as amended by section 103) is amended by adding at 
     the end the following:
       ``(10) Low-risk producer pilot program.--
       ``(A) In general.--For each of the 2000 through 2003 crop 
     years, the Corporation shall carry out a pilot program that 
     is designed to encourage participation in the Federal crop 
     insurance program established under this title by producers 
     who rarely suffer insurable losses.
       ``(B) Scope.--The Corporation shall carry out the pilot 
     program in at least 40 counties that are determined by the 
     Corporation to be adequate to provide a comprehensive 
     evaluation of the feasibility, effectiveness, and demand 
     among producers for a low-risk producer program.
       ``(C) Premium refund.--Notwithstanding section 506(o) and 
     subsection (d)(1), if a producer participating in the pilot 
     program incurs a yield loss in any crop year that is more 
     than 10 percent but not more than 35 percent of the yield 
     determined under subsection (g), the Corporation shall--
       ``(i) refund all or part, as determined by the Corporation, 
     of the premium that was paid by the producer for a plan of 
     insurance for the crop that incurred the qualifying loss; or
       ``(ii) apply the amount to be refunded under clause (i) 
     against the premium payable by the producer for equivalent 
     coverage for the subsequent crop year.
       ``(D) Regulations.--The Corporation shall promulgate such 
     regulations as are necessary to carry out the pilot 
     program.''.

     SEC. 105. CATASTROPHIC RISK PROTECTION.

       Section 508(b)(2)(A) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(b)(2)(A)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii)--
       (A) by striking ``each of the 1999 and subsequent crop 
     years'' and inserting ``the 1999 crop year''; and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(iii) in the case of each of the 2000 and subsequent crop 
     years, catastrophic risk protection shall offer a producer 
     coverage for a 60 percent loss in yield, on an individual

[[Page 10647]]

     yield or area yield basis, indemnified at 70 percent of the 
     expected market price, or a comparable coverage (as 
     determined by the Corporation).''.

     SEC. 106. LOSS ADJUSTMENT.

       Section 508(b)(11) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(b)(11)) is amended by striking ``11 percent'' and 
     all that follows through the end of the paragraph and 
     inserting ``$50 for each claim that is adjusted under this 
     subsection.''.

     SEC. 107. COST OF PRODUCTION PLANS OF INSURANCE.

       (a) In General.--Section 508(c) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(c)) is amended by striking 
     paragraph (5) and inserting the following:
       ``(5) Expected market price.--
       ``(A) In general.--For the purposes of this title, the 
     Corporation shall establish or approve the price level 
     (referred to in this title as the `expected market price') of 
     each agricultural commodity for which insurance is offered.
       ``(B) Amount.--The expected market price of an agricultural 
     commodity--
       ``(i) except as otherwise provided in this subparagraph, 
     shall be not less than the projected market price of the 
     agricultural commodity, as determined by the Corporation;
       ``(ii) may be based on the actual market price of the 
     agricultural commodity at the time of harvest, as determined 
     by the Corporation; or
       ``(iii) in the case of cost of production or similar plans 
     of insurance, shall be the projected cost of producing the 
     agricultural commodity, as determined by the Corporation.''.
       (b) Conforming Amendments.--Section 508(h) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(h)) is amended--
       (1) by striking paragraph (9); and
       (2) by redesignating paragraph (10) as paragraph (9).

     SEC. 108. DISCOUNTS.

       Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(d)) is amended by adding at the end the following:
       ``(3) Discounts.--
       ``(A) In general.--Notwithstanding section 506(o) and 
     paragraph (1), the Corporation shall provide a discount in 
     the premium payable by the producer for a plan of insurance 
     under subsections (b) and (c) for an agricultural commodity 
     in a county if the producer--
       ``(i) during each of the preceding 5 consecutive crop 
     years--

       ``(I) has obtained insurance under this title for the 
     agricultural commodity; and
       ``(II) has not filed any claim under the insurance;

       ``(ii) if offered by the Corporation, elects to have unit 
     coverage that reduces the risk of loss below the risk of loss 
     that is expected for a unit comprised of all insurable 
     acreage of the agricultural commodity in the county; or
       ``(iii) implements innovative farming management practices 
     that reduce the risk of insurable loss, as determined by the 
     Corporation.
       ``(B) Amount.--
       ``(i) In general.--Subject to clause (ii), the amount of 
     the discount provided to a producer for a crop year under 
     subparagraph (A) shall be determined by the Corporation.
       ``(ii) No claim discount.--The amount of the discount 
     provided to a producer for a crop year under subparagraph 
     (A)(i) shall increase for each additional consecutive crop 
     year for which the producer is eligible for a discount under 
     subparagraph (A)(i).''.

     SEC. 109. ADJUSTMENTS TO SUBSIDY LEVELS.

       (a) In General.--Section 508(e)(2) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(e)(2)) is amended by striking 
     subparagraphs (B) and (C) and inserting the following:
       ``(B) In the case of additional coverage below 65 percent 
     of the recorded or appraised average yield indemnified at 100 
     percent of the expected market price, or an equivalent 
     coverage, the amount shall be equal to the sum of--
       ``(i) 50 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i); and
       ``(ii) the amount of operating and administrative expenses 
     determined under subsection (d)(2)(B)(ii).
       ``(C) In the case of additional coverage equal to or 
     greater than 65 percent of the recorded or appraised average 
     yield indemnified at 100 percent of the expected market 
     price, or an equivalent coverage, the amount shall be equal 
     to the sum of--
       ``(i) 50 percent of the amount of the premium established 
     under subsection (d)(2)(C)(i); and
       ``(ii) the amount of operating and administrative expenses 
     determined under subsection (d)(2)(C)(ii).''.
       (b) Application.--The amendment made by subsection (a) 
     applies beginning with the 2000 crop year.

     SEC. 110. SALES CLOSING DATES.

       Section 508(f)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(f)(2)) is amended by striking the last sentence.

     SEC. 111. ASSIGNED YIELDS.

       Section 508(g)(2)(B) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(g)(2)(B)) is amended--
       (1) by striking ``assigned a yield'' and inserting 
     ``assigned--
       ``(i) a yield'';
       (2) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(ii) a yield determined by the Corporation, in the case 
     of--

       ``(I) a person that has not been actively engaged in 
     farming for a share of the production of the insured crop for 
     more than 2 crop years, as determined by the Secretary;
       ``(II) a producer that produces an agricultural commodity 
     on land that has not been farmed by the producer; and
       ``(III) a producer that rotates a crop produced on a farm 
     to a crop that has not been produced on the farm.''.

     SEC. 112. ACTUAL PRODUCTION HISTORY ADJUSTMENT FOR DISASTERS.

       Section 508(g)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(g)(2)) is amended by adding at the end the 
     following:
       ``(E) Substitution of transitional yield.--Effective 
     beginning with the 2000 crop year, if the producer's yield of 
     an agricultural commodity in any crop year is less than 85 
     percent of the transitional yield established by the 
     Corporation for the agricultural commodity, the Corporation 
     shall, at the option of the producer, consider the producer's 
     yield for the crop year to be 85 percent of the transitional 
     yield for the purpose of calculating the actual production 
     history for a crop of an agricultural commodity under 
     subparagraph (A).
       ``(F) Corporation's share of costs.--In the case of any 
     yield substitution under subparagraph (E), in addition to any 
     other authority to pay any portion of the premium and 
     indemnity, the Corporation shall pay--
       ``(i) the portion of the premium or indemnity that 
     represents the increase in premium associated with the 
     substitution of the transitional yield under subparagraph 
     (E);
       ``(ii) all additional indemnities associated with the 
     substitution; and
       ``(iii) any amounts that result from the difference in the 
     administrative and operating expenses owed to an approved 
     insurance provider as the result of the substitution.''.

     SEC. 113. PAYMENT OF PORTION OF PREMIUM.

       Section 508(h)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(h)(2)) is amended in the second sentence by 
     inserting before the period at the end the following: ``, 
     except that the Corporation shall not pay any portion of the 
     premium for any plan of insurance that offers coverage for 
     losses associated with a change in price''.

     SEC. 114. LIMITATION ON PREMIUMS INCLUDED IN UNDERWRITING 
                   GAINS.

       Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(k)) is amended by adding at the end the following:
       ``(8) Limitation on premiums included in underwriting 
     gains.--Notwithstanding any other provision of law, the 
     reinsurance agreements of the Corporation shall require that 
     not more than 50 percent of any premium for catastrophic risk 
     protection under subsection (b) be included in the 
     calculation of gains or losses of an approved insurance 
     provider unless the loss ratio for catastrophic risk 
     protection exceeds 1.0.''.

                        TITLE II--ADMINISTRATION

     SEC. 201. BOARD OF DIRECTORS OF CORPORATION.

       Section 505 of the Federal Crop Insurance Act (7 U.S.C. 
     1505) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Board of Directors.--
       ``(1) In general.--The management of the Corporation shall 
     be vested in a Board subject to the general supervision of 
     the Secretary.
       ``(2) Composition.--The Board shall consist of--
       ``(A) 4 members who are active agricultural producers with 
     or without crop insurance, with 1 member appointed from each 
     of the 4 regions of the United States (as determined by the 
     Secretary);
       ``(B) 1 member who is active in the crop insurance 
     business;
       ``(C) 1 member who is active in the reinsurance business;
       ``(D) the Under Secretary for Farm and Foreign Agricultural 
     Services;
       ``(E) the Under Secretary for Rural Development; and
       ``(F) the Chief Economist of the Department of Agriculture.
       ``(3) Appointment and terms of private sector members.--The 
     members of the Board described in subparagraphs (A), (B), and 
     (C) of paragraph (2)--
       ``(A) shall be appointed by, and hold office at the 
     pleasure of, the Secretary;
       ``(B) shall not be otherwise employed by the Federal 
     Government;
       ``(C) shall be appointed to staggered 4-year terms, as 
     determined by the Secretary; and
       ``(D) shall serve not more than 2 consecutive terms.
       ``(4) Chairperson.--The Board shall select a member of the 
     Board described in subparagraph (A), (B), or (C) of paragraph 
     (2) to serve as Chairperson of the Board.
       ``(5) Staff.--The Board shall employ or contract with 1 or 
     more individuals who are knowledgeable and experienced in 
     quantitative mathematics and actuarial rating to assist the 
     Board in reviewing and approving policies and materials with 
     respect to plans of insurance authorized or submitted under 
     section 508.''.

[[Page 10648]]



     SEC. 202. OFFICE OF RISK MANAGEMENT.

       (a) Establishment.--Section 226A(a) of the Department of 
     Agriculture Reorganization Act of 1994 (7 U.S.C. 6933(a)) is 
     amended by striking ``independent Office of Risk Management'' 
     and inserting ``Office of Risk Management, which shall be 
     under the direction of the Board of Directors of the Federal 
     Crop Insurance Corporation''.
       (b) Functions.--Section 226A(b) of the Department of 
     Agriculture Reorganization Act of 1994 (7 U.S.C. 6933(b)) is 
     amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Assistance to the Board in developing, reviewing, and 
     recommending plans of insurance under section 508(a)(7) of 
     the Federal Crop Insurance Act (7 U.S.C. 1508(a)(7)) to 
     ensure that each agricultural commodity (including each new 
     or speciality crop) is adequately served by plans of 
     insurance.''.

     SEC. 203. OFFICE OF PRIVATE SECTOR PARTNERSHIP.

       The Federal Crop Insurance Act is amended by inserting 
     after section 507 (7 U.S.C. 1507) the following:

     ``SEC. 507A. OFFICE OF PRIVATE SECTOR PARTNERSHIP.

       ``(a) Establishment.--The Secretary shall establish and 
     maintain in the Department an Office of Private Sector 
     Partnership, which shall be under the direction of the Board.
       ``(b) Functions.--The Office shall--
       ``(1) provide at least monthly reports to the Board on crop 
     insurance issues, which shall be based on comments received 
     from producers, approved insurance providers, and other 
     sources that the Office considers appropriate;
       ``(2)(A) review policies and materials with respect to--
       ``(i) subsidized plans of insurance authorized under 
     section 508; and
       ``(ii) unsubsidized plans of insurance submitted to the 
     Board under section 508(h); and
       ``(B) make recommendations to the Board with respect to 
     approval of the policies and materials;
       ``(3) administer the reinsurance functions described in 
     section 508(k) on behalf of the Corporation;
       ``(4) review and make recommendations to the Board with 
     respect to methodologies for rating plans of insurance under 
     this title; and
       ``(5) perform such other functions as the Board considers 
     appropriate.
       ``(c) Administrator.--The Office shall be headed by an 
     Administrator who shall be appointed by the Secretary.
       ``(d) Staff.--The Administrator shall appoint such 
     employees pursuant to title 5, United States Code, as are 
     necessary for the administration of the Office, including 
     employees who have commercial reinsurance and actuarial 
     experience.''.

     SEC. 204. PENALTIES FOR FALSE INFORMATION.

       Section 506(n)(1) of the Federal Crop Insurance Act (7 
     U.S.C. 1506(n)(1)) is amended--
       (1) in subparagraph (A), by inserting ``for each claim'' 
     after ``$10,000''; and
       (2) in subparagraph (B), by striking ``noninsured 
     assistance'' and inserting ``any loan, payment, or benefit 
     described in section 1211 of the Food Security Act of 1985 
     (16 U.S.C. 3811)''.

     SEC. 205. REGULATIONS.

       Section 506(p) of the Federal Crop Insurance Act (7 U.S.C. 
     1506(p)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (2) by adding at the end the following:
       ``(2) Terms of insurance.--
       ``(A) In general.--Regulations issued by the Secretary and 
     the Corporation specifying the terms of insurance under 
     section 508 shall be issued without regard to--
       ``(i) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       ``(ii) the Statement of Policy of the Secretary of 
     Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), 
     relating to notices of proposed rulemaking and public 
     participation in rulemaking; and
       ``(iii) chapter 35 of title 44, United States Code 
     (commonly known as the `Paperwork Reduction Act').
       ``(B) Congressional review of agency rulemaking.--In 
     carrying out this paragraph, the Secretary shall use the 
     authority provided under section 808 of title 5, United 
     States Code.''.

     SEC. 206. PROGRAM COMPLIANCE.

       Section 506(q) of the Federal Crop Insurance Act (7 U.S.C. 
     1506(q)) is amended--
       (1) by redesignating paragraph (2) as paragraph (6); and
       (2) by striking paragraph (1) and inserting the following:
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Crop Insurance Equity Act of 1999, the 
     Corporation shall establish a program for monitoring 
     compliance with this title by all Federal crop insurance 
     participants, including producers, agents, adjusters, and 
     approved insurance providers.
       ``(2) Consultation.--The Corporation shall consult with 
     approved insurance providers in developing the compliance 
     program.
       ``(3) Oversight of loss adjustment.--As part of the 
     compliance program, the Corporation shall provide for a 
     mechanism to independently review the performance of loss 
     adjusters.
       ``(4) Program review.--Not later than 90 days after the 
     date of enactment of the Crop Insurance Equity Act of 1999, 
     the Corporation shall submit to the Board and the Office of 
     Private Sector Partnership for their review the proposed 
     compliance program under this subsection.
       ``(5) Annual reports.--Beginning with fiscal year 2001, the 
     Corporation shall submit an annual report to the Committee on 
     Agriculture of the House of Representatives, the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, the 
     Board, and the Office of Private Sector Partnership 
     concerning the compliance program established under this 
     subsection, including any recommendations for legislative or 
     administrative changes that could further improve program 
     compliance.''.

     SEC. 207. PAYMENTS BY COOPERATIVE ASSOCIATIONS.

       Section 507(e) of the Federal Crop Insurance Act (7 U.S.C. 
     1507(e)) is amended--
       (1) by striking ``(e) In'' and inserting the following:
       ``(e) Cooperative Associations.--
       ``(1) In general.--In''; and
       (2) by adding at the end the following:
       ``(2) Payments.--A cooperative association described in 
     paragraph (1) that is licensed and acts as an agent or 
     approved insurance provider with respect to any plan of 
     insurance offered under this title may provide to the members 
     of the association all or part of any funds received from the 
     Corporation under this title.''.

     SEC. 208. LIMITATION ON DOUBLE INSURANCE.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) (as amended by section 104) is amended by adding at 
     the end the following:
       ``(11) Limitation on double insurance.--The Corporation may 
     offer plans of insurance or reinsurance for only 1 
     agricultural commodity on specific acreage during a crop 
     year, unless--
       ``(A) there is an established practice of double-cropping 
     in an area, as determined by the Corporation;
       ``(B) the additional plan of insurance is offered with 
     respect to an agricultural commodity that is customarily 
     double-cropped in the area; and
       ``(C) the producer has a history of double cropping or the 
     acreage has historically been double-cropped.''.

     SEC. 209. CONSULTATION WITH STATE COMMITTEES OF FARM SERVICE 
                   AGENCY.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) (as amended by section 208) is amended by adding at 
     the end the following:
       ``(12) Consultation with state committees of farm service 
     agency.--The Corporation shall establish a mechanism under 
     which State committees of the Farm Service Agency are 
     consulted concerning policies of insurance offered in a State 
     under this title.''.

     SEC. 210. RECORDS AND REPORTING.

       (a) Catastrophic Risk Protection.--Section 508(f)(3)(A) of 
     the Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)(A)) is 
     amended by striking ``provide, to the extent required by the 
     Corporation,'' and inserting ``to the extent required by the 
     Corporation, provide to the Secretary, acting through the 
     Farm Service Agency,''.
       (b) Noninsured Crop Disaster Assistance Program.--Section 
     196(b) of the Agricultural Market Transition Act (7 U.S.C. 
     7333(b)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Records.--To be eligible for assistance under this 
     section, a producer shall provide annually to the Secretary, 
     acting through the Farm Service Agency, records of crop 
     acreage, acreage yields, and production for each eligible 
     crop.''; and
       (2) in paragraph (3), by inserting ``annual'' after ``shall 
     provide''.

     SEC. 211. FEES FOR PLANS OF INSURANCE.

       Section 508(h)(5) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(h)(5))) is amended--
       (1) by striking ``Any policy'' and inserting the following:
       ``(A) In general.--Any policy''; and
       (2) by adding at the end the following:
       ``(B) Fees for new plans of insurance.--
       ``(i) In general.--If an approved insurance provider elects 
     to sell a plan of insurance that was developed by another 
     approved insurance provider after the date of enactment of 
     this subparagraph and the plan of insurance offered coverage 
     that was not available for any crop at the time the plan of 
     insurance was approved by the Board (as determined by the 
     Corporation), the approved insurance provider that developed 
     the plan of insurance shall have the right to receive a fee 
     from the approved insurance provider that elects to sell the 
     plan of insurance.
       ``(ii) Amount.--

       ``(I) In general.--Subject to subclause (II), the amount of 
     the fee that is payable by an approved insurance provider for 
     a plan of insurance under clause (i) shall be an amount that 
     is--

       ``(aa) determined by the approved insurance provider that 
     developed the plan; and
       ``(bb) approved by the Board.

       ``(II) Approval.--The Board shall not approve the amount of 
     a fee under clause (i) if the amount of the fee unnecessarily 
     inhibits the use of the plan of insurance, as determined by 
     the Board.

       ``(C) Payments.--The Corporation shall annually--

[[Page 10649]]

       ``(i) collect from an approved insurance provider the 
     amount of any fees that are payable by the approved insurance 
     provider under subparagraph (B); and
       ``(ii) credit any fees that are payable to an approved 
     insurance provider under subparagraph (B).''.

     SEC. 212. FLEXIBLE SUBSIDY PILOT PROGRAM.

       Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(h)) is amended by adding at the end the following:
       ``(11) Flexible subsidy pilot program.--For each of the 
     2000 through 2002 crop years, the Corporation shall carry out 
     a pilot program under which flexible subsidies are provided 
     under this title to encourage private sector innovation 
     through exclusive marketing rights and premium rate 
     competition.''.

     SEC. 213. REINSURANCE AGREEMENTS.

       Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(k)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) Reinsurance agreements.--
       ``(A) Share of risk.--Each reinsurance agreement of the 
     Corporation with a reinsured company shall require the 
     reinsured company to bear a sufficient share of any potential 
     loss under the agreement so as to ensure that the reinsured 
     company will sell and service policies of insurance in a 
     sound and prudent manner, taking into consideration the 
     financial condition of the reinsured company and the 
     availability of private reinsurance.
       ``(B) Compliance.--To promote program compliance and 
     integrity, the Corporation, after notice and an opportunity 
     for a hearing on the record--
       ``(i)(I) shall assess civil fines in an amount not to 
     exceed $10,000 per violation against agents, loss adjusters, 
     and approved insurance providers that are determined by the 
     Corporation to have recurring compliance problems; and
       ``(II) may deposit any civil fines collected under 
     subclause (I) in the insurance fund established under section 
     516(c); and
       ``(ii) shall disqualify the agents, loss adjusters, and 
     approved insurance providers described in clause (i)(I) from 
     participation in the Federal crop insurance program for a 
     period not to exceed 5 years.
       ``(C) Review of agreements.--As soon as practicable after 
     the date of enactment of this subparagraph and regularly 
     thereafter, in consultation with the Office of Private Sector 
     Partnership, the Corporation shall review the Standard 
     Reinsurance Agreement issued by the Corporation to ensure 
     that the allocation of risk between the Corporation and the 
     reinsured companies is equitable, as determined by the 
     Corporation.''.

     SEC. 214. FUNDING.

       Section 516 of the Federal Crop Insurance Act (7 U.S.C. 
     1516) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) salaries and expenses of the Office of Private Sector 
     Partnership.'';
       (2) in subsection (b)(1)--
       (A) in subparagraph (B), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) salaries and expenses of the Office of Private Sector 
     Partnership, but not to exceed $5,000,000 for each fiscal 
     year;
       ``(E) administrative expenses of collecting information 
     under section 508(f)(3); and
       ``(F) payment of fees in accordance with section 
     508(h)(5)(B).''; and
       (3) in subsection (c)(1), by inserting ``, fees under 
     section 508(h)(5)(B), civil fines under section 
     508(k)(3)(B)(i)(II),'' after ``premium income''.
                                  ____


               Crop Insurance Equity Act of 1999--Summary

       Sec. 101--Prevented Planting. Ensures that producers have 
     the ability to reduce premium cost by giving them the option 
     whether to choose prevented planting coverage for a 
     commodity. Ensures that prevented planting coverage offered 
     under the crop insurance program is equivalent among all 
     commodities. Also eliminates current ``black dirt'' 
     requirement by allowing producers who are prevented from 
     planting their insured commodity to receive the prevented 
     planting indemnity but still plant another, uninsured crop on 
     the same acreage without penalty. Amendment ensures that 
     productive crop land is not idled because of crop insurance 
     requirement.
       Sec. 102--Alternative Rating Methodologies. The preliminary 
     conclusions from a review of current rating methodologies 
     indicates that many of FCIC's rates and rating procedures 
     need to be changed. The bill directs FCIC to develop and 
     implement alternative methodologies for rating insurance 
     plans by September 30, 2000, that takes into account (1) 
     producers that elect not to participate in the Federal crop 
     insurance program, and (2) producers that elect only to 
     obtain catastrophic coverage. FCIC is also directed to review 
     and make adjustments to methodologies and rates by the 2001 
     crop year, based on expected future losses (adjusted to 
     correct for adverse selection and old data), program errors 
     and other factors that can cause errors in methodologies and 
     rates. The bill requires FCIC to implement the rating 
     methodologies in a manner that results in the lowest premium 
     payable by producers of a commodity in a particular 
     geographic area. Priority will be given to those commodities 
     with the lowest level of participation in buy-up coverage 
     plans.
       Sec. 103--Quality Adjustment. Ensures that quality 
     adjustment coverage is offered as optional coverage.
       Sec. 104--Low-risk producer pilot program. Establishes a 
     pilot program designed to encourage participation in crop 
     insurance by producers who rarely suffer insurable losses. 
     Participating producers would receive a reduction in their 
     payable premium if they incur a yield loss greater than 10%, 
     but not great enough to trigger an indemnity.
       Sec. 105--Catastrophic risk protection. Increases the 
     coverage level for catastrophic coverage to 60% of APH at 70% 
     of the price. Other parts of the bill address excessive 
     underwriting gains and unearned loss adjustment expenses 
     being generated as a result of CAT coverages.
       Sec. 106--Loss adjustment. Reduces the fees for loss 
     adjustments with respect to catastrophic coverage.
       Sec. 107--Cost of production plans of insurance. Provides 
     permanent authority for the Federal Crop Insurance 
     Corporation to provide cost of production and revenue 
     insurance coverage.
       Sec. 108--Discounts. The bill requires FCIC to reinstate 
     good experience discounts and to provide discounts for 
     production practices that reduce the risk of loss and for 
     insurance that is issued on larger, more cost-effective 
     insurable units.
       Sec. 109--Adjustment to Subsidy Levels. The bill provides 
     for 50% subsidization of all levels of buy-up coverage.
       Sec. 110--Sales Closing Dates. The bill restores 
     flexibility to FCIC in determining sales closing dates.
       Sec. 111--Assigned Yields. Ensures that beginning farmers 
     or farmers who rent new land or produce new crops will be 
     assigned a fair yield.
       Sec. 112--Actual production history adjustment for 
     disasters. Requires FCIC to adjust APH yields for producers 
     who suffer multi-year disasters by directing FCIC to assign a 
     yield equal to 85% of the county transition yield for any 
     year in which a producer's yield falls below that 85% level.
       Sec. 113--Payment of Portion of Premium. Prohibits FCIC 
     from subsidizing revenue or price insurance policies.
       Sec. 114--Limitation on Underwriting Gains. The bill limits 
     the amount of underwriting gains companies can make on 
     catastrophic policies to 50 percent of the premium.


                                title ii

       Sec. 201--Board of Directors of Corporation. Expands the 
     board to include 4 producers from 4 regions of the United 
     States, 1 person engaged in the crop insurance business, 1 
     person engaged in reinsurance, the Undersecretary for Farm 
     and Foreign Agricultural Services, the Under Secretary for 
     Rural Development and the Chief Economist of the Department 
     of Agriculture.
       Sec. 202--Office of Risk Management. Clarifies that the 
     FCIC board of directors shall have direct oversight of RMA.
       Sec. 203--Office of Private Sector Partnership. Establishes 
     the Office of Private Sector Partnership, reporting directly 
     to the FCIC board. The OPSP will have the authority to review 
     and make recommendations on both privately and RMA-developed 
     policies. It will also have the authority to approve 
     reinsurance and review and make recommendations concerning 
     subsidy for new crop policies and, with board concurrence, 
     approve new rating structures.
       Sec. 204--Penalities for false information. Allows anyone 
     convicted of providing false information in connection with 
     any crop insurance claim to be disbarred from all USDA 
     programs.
       Sec. 205--Regulations. Allows certain RMA rulemaking 
     activities to be exempted from the Administrative Procedures 
     Act and other federal statutes.
       Sec. 206--Program Compliance. The bill enhances the 
     compliance authority of FCIC by 1) requiring FCIC to develop 
     and implement an effective program for monitoring program 
     compliance by all crop insurance participants; and 2) 
     requiring regular oversight of loss adjusters.
       Sec. 207--Payment of rebates to cooperative associations. 
     Allows the payment of rebates to cooperatives who engage in 
     the sale of crop insurance.
       Sec. 208--Limitation on Double Insurance. Prohibits 
     purchasing insurance for two crops for the same acreage in a 
     year, except where there is an established practice of 
     double-cropping.
       Sec. 209--Consultation with state committees of farm 
     service agency. Requires FCIC to consult with state FSA 
     committees on the feasibility of polices of insurance being 
     offered in their state.
       Sec. 210--Records and reporting. The bill strengthens 
     requirements for accurate recordkeeping and reporting of crop 
     production

[[Page 10650]]

     by participants and non-participants in crop insurance.
       Sec. 211--Fees for plans of insurance. Establishes a system 
     of payment for the sale of policies developed by other 
     companies.
       Sec. 212--Flexible subsidy pilot program. Allows for the 
     creation of a flexible subsidy pilot program for the 2000-
     2002 crop years.
       Sec. 213--Reinsurance Agreements. Provides tougher 
     sanctions for agents and reinsured companies that have 
     recurring compliance difficulties, and requires a regular 
     review of the Standard Reinsurance Agreement.
       Sec. 214--Funding. Makes necessary adjustments in funding 
     provisions to take into account the establishment of the 
     Office of Private Sector Partnership.

  Mrs. LINCOLN. Mr. President, I am pleased to be here today with my 
colleague from Mississippi, Senator Cochran, to introduce the Crop 
Insurance Equity Act of 1999. We believe this bill makes fundamental 
changes to the existing Federal Crop Insurance Program that are 
necessary to make crop insurance more workable and affordable for 
producers across the country.
  As we all know, the government's role in farm programs has changed. 
The 1996 Farm Bill phased out traditional support for our farmers, and 
current farm programs require producers to assume more risk than ever 
before. Due to the Ag economic crisis, there has been much discussion 
lately on the issue of the ``safety net'' for our nation's producers. 
On that point I would like to be perfectly clear. Crop insurance is a 
risk management tool to help producers guard against yield loss. It was 
not created and was never intended to be the end all be all solution 
for the income needs of our nation's producers. As the crop insurance 
reform debate proceeds, I am hopeful that my colleagues will be 
cognizant of the various needs in the agriculture community and 
recognize that while crop insurance is an important part of the 
``safety net,'' it is not and should not be the only income guard for 
our nation's farmers.
  Congress has been attempting to eliminate the ad hoc disaster program 
for years because it is not the most efficient way of helping our 
farmers who suffer yield losses. Senator Cochran and I have been 
working over the last few months with individuals involved in crop 
insurance delivery, major commodity organizations, and most 
importantly, farmers, to craft a comprehensive bill that addresses the 
various reform needs of the crop insurance program. We feel that this 
legislation takes a significant step toward providing a crop insurance 
program that is equitable, affordable, and effective.
  In response to the outcry we have heard from producers in Arkansas, 
Mississippi, and across the nation, we have attempted to make the crop 
insurance program more cost effective for our farmers. In Arkansas, the 
last estimates I heard indicated that 1% of our cotton producers were 
participating in the buy-up program this year. Buy-up coverage for all 
commodities in Akansas historically is around 12%. That tells me that 
producers at home don't think that crop insurance is currently 
providing the kind of help they need. Our bill establishes a process 
for re-evaluating crop insurance rates for all crops and for lowering 
those rates if warranted. By making the crop insurance program more 
affordable, additional producers will be encouraged to participate in 
the program and protect themselves against the unforeseeable factors 
that will be working against them once they put a crop into the ground.
  This legislation directs USDA to establish ``good experience'' 
premium discounts for producers who have not filed claims in the last 
years. This simply makes sense. If you have car insurance and you 
haven't had a wreck or a ticket over a significant period of time, then 
your premium is reduced. Crop insurance should not be any different.
  The bill also provides for a more equitable subsidy method by setting 
the subsidy for crop insurance premiums at a flat rate, regardless of 
the level of coverage a producer purchases. Current law provides higher 
levels of federal subsidy to producers who purchase the lowest levels 
of coverage.
  In an attempt to improve the record keeping process within USDA, this 
legislation establishes the Farm Service Agency (FSA) as the central 
repository for all acreage and yield record keeping. Current USDA 
record keeping, split between FSA and RMA, is redundant and 
insufficient. By including both crop insurance program participants and 
non-program participants in the process, we hope to enhance the 
agricultural data held by the agency and make acreage and yield 
reporting less of a hassle for already overburdened producers.
  In addition, this bill establishes a role for consultation with state 
FSA committees in the introduction of new coverage to a state. The need 
for this provision was made abundantly clear to Arkansas' rice 
producers this spring. A private insurance policy was offered to 
farmers at one rate, only to have the company reduce the rate once the 
amount of potential exposure was realized. In my discussions with 
various executives from the company on this issue it became apparent 
that their knowledge of the rice industry was fairly minimal. Had they 
consulted with local FSA committees who had a working knowledge of the 
rice industry before introduction of the policy, the train wreck that 
occurred might have been stopped in its tracks.
  Many of the problems associated with the crop insurance program have 
been addressed in previous reform measures, however, fraud and abuses 
are still present to some degree. This bill strengthens the monitoring 
of agents and adjusters to combat fraud and enhances the penalties 
available to USDA for companies, agents and producers who engage in 
fraudulent activities. There is simply no room for bad actors that 
recklessly cost the taxpayers money.
  While this bill was crafted with the input of producers from Arkansas 
and Mississippi, there is no preferential treatment toward any 
commodity or geographic region. We have attempted to include provisions 
that will make the crop insurance program more effective across the 
nation. We hope that we have achieved this goal and look forward to 
working with our colleagues to address any measures that will make the 
crop insurance reform effort more effective.
  Mr. President, I ask unanimous consent that letters of support for 
this bill be included in the Record from the following commodity 
organizations: The National Cotton Council, USA Rice Federation, 
American Sugar Cane League, the Southern Peanut Farmers Federation, and 
the Alabama Farmers Federation.
  These organizations have been very helpful in the crafting of this 
bill and we certainly appreciate the input they have provided.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                        American Sugar Cane League


                                           of the U.S.A., Inc.

                                      Thibodaux, La, May 19, 1999.
     Hon. Thad Cochran,
     Russell Senate Office Building,
     Washington, DC
     Hon. Blanche Lincoln,
     Hart Senate Office Building,
     Washington, DC
       Dear Senators Cochran and Lincoln: On behalf of the 
     American Sugar Cane League of the U.S.A., Inc., which 
     represents the entire sugar producing and processing industry 
     in the state of Louisiana, I offer to you our full support of 
     your efforts to improve crop insurance with the introduction 
     of the Crop Insurance Equity Act of 1999. Agriculture in this 
     great country has been in a crisis mode for the last several 
     years and the federal crop insurance program, as it is 
     presently structured, is of limited or no utility to our 
     growers.
       In particular, we are pleased with the language which 
     directs the Federal Crop Insurance Corporation (FCIC) to 
     review the rating methodologies, giving high priority to 
     those commodities with the lowest level of participation. Due 
     to the inherent problems with the program, as presently 
     structured, sugarcane growers in Louisiana have not 
     considered crop insurance an affordable or viable management 
     tool. Again, it is with great enthusiasm that we support this 
     bill which we hope will benefit the entire agricultural 
     community and our industry, and allow us the opportunity to 
     have available to us a viable risk management tool that is 
     affordable.
       We appreciate tremendously your initiative with this bill 
     language which seeks to make crop insurance more useful for 
     southern commodities. The Louisiana sugarcane industry will 
     continue to review the reasons that crop insurance has not 
     worked thus far

[[Page 10651]]

     and would like to reserve the option to make additional 
     suggestions to you as the process moves forward. Thanks again 
     for taking on a challenge that stands to give American 
     agriculture what the rest of the manufacturing and business 
     community of this country has always had, a viable and 
     affordable risk management tool.
       Sincerely,
                                              Charles J. Melancon,
     President and General Manager.
                                  ____



                           National Cotton Council of America,

                                                     May 18, 1999.
     Hon. Thad Cochran,
     Hon. Blanche Lincoln,
     U.S. Senate, Washington, DC.
       Dear Senators Cochran and Lincoln: On behalf of the 
     National Cotton Council, I would like to convey our sincere 
     appreciation and strong support for your efforts to improve 
     the Federal crop insurance program. The legislation that you 
     are about to introduce, The Crop Insurance Equity Act of 
     1999, makes many needed changes to the program, improves 
     compliance, and should increase participation as well.
       The profitability crisis we are experiencing in American 
     agriculture and the policy direction we have chosen on farm 
     programs has greatly increased the cotton industry's interest 
     in more sound risk management tools to help weather the tough 
     times. Your legislation takes a very comprehensive approach 
     towards improving the current system. We are especially 
     pleased with your provisions that will result in a reformed 
     rating process, significantly improved record keeping 
     requirements through the Farm Service Agency, equitable 
     prevented planting coverage for all crops, and a streamlined 
     private product approval process.
       Finally, we appreciate the efforts of Hunt Shipman and Ben 
     Noble on your staffs who worked tirelessly with the cotton 
     industry to include provisions that would make the program 
     more equitable for all commodities. They are both an asset to 
     your offices.
       Thank you again for your efforts and all you do to help the 
     cotton industry. We look forward to working with you any way 
     we can to insure passage of your bill.
           Sincerely,
     Ron Rayer,
                               President, National Cotton Council,
     Allen Helms,
     Chairman, American Cotton Producers Association.
                                  ____



                                          USA Rice Federation,

                                                      May 19, 1999
     Hon. Blanche Lambert Lincoln,
     U.S. Senate, Washington, DC.
       Dear Senator Lincoln: On behalf of the USA Rice Federation, 
     which represents producers of over 80 percent of America's 
     rice crop and virtually all U.S. rice millers, I would like 
     to express our appreciation for the leadership that you and 
     Senator Cochran have provided on the issue of reforming 
     Federal crop insurance. Specifically, we want to express our 
     strong support for the Crop Insurance Equity Act of 1999 
     which represents a positive step towards addressing the 
     concerns that U.S. rice producers have had with the existing 
     crop insurance program.
       As you probably are aware, most rice producers have 
     traditionally not participated in the Federal crop insurance 
     program because premiums have been viewed as too high 
     relative to the minimal coverage the program offers. For 
     example, during the 1998 crop year, only 43 percent of 3 
     million acres planted to rice was covered by catastrophic 
     policies while only another 20 percent of the acreage was 
     covered by buy-up policies. In general, the low level of 
     participation by U.S. rice farmers has occurred because: CAT 
     coverage offers farmers minimal coverage and buy-up policies 
     are too expensive; serious problems exist with the actuarial 
     data used to calculate premiums and coverage; and rice 
     farmers, who traditionally experience relatively low levels 
     of yield variability, want price/revenue protection versus 
     traditional yield coverage. We believe that the Crop 
     Insurance Equity Act begins to seriously address each of 
     these three major issues.
       Again, Senator Lincoln, we want to thank you and your staff 
     for working so closely with the USA Rice Federation during 
     the development of this important bill. We are proud to 
     support this bill and look forward to working with you to 
     enact the legislation in 1999.
           Sincerely,
                                                A. Ellen Terpstra,
     President and Chief Executive Officer.
                                  ____

                                                 The Redding Firm,


                313 Massachusetts Avenue, N.E., Washington, DC

       We are very appreciative of Senators Cochran and Lincoln 
     taking the lead on reforming the Federal Crop Insurance 
     Program. Growers in the Southeast want sound product options 
     at a reasonable price. The Cochran-Lincoln bill moves crop 
     insurance in this direction. Disaster bills do not adequately 
     address the problems growers face in a bad crop year. Crop 
     insurance has to be reformed where growers can plan and 
     address difficult financial times.
     Southern Peanut Farmers Federation.
                                  ____



                                                 ALFA FARMERS,

                                                     May 18, 1999.
     Senator Blanche Lincoln,
     Hart Senate Office Building, Washington, DC.
       Dear Senator Lincoln: On behalf of over 398,000 members of 
     the Alabama Farmers Federation, I am writing in support of 
     this bill which you and Senator Cochran are introducing 
     titled the Crop Insurance Equity Act of 1999. This crop 
     insurance reform bill goes a long way toward addressing the 
     inequities southern producers face under the current federal 
     crop insurance program. While producers do not want the 
     government to guarantee them a profit, real crop insurance 
     reform is needed to ensure farmers have adequate risk 
     management tools for years when a disaster does occur.
       We are pleased that the Crop Insurance Equity Act addresses 
     the so-called ``ratings'' issue in which southern producers 
     are unfairly penalized by a flawed rating system. As you 
     know, the current 20-year historical actuarial database being 
     used to determine probability of loss and establish premium 
     levels does not accurately reflect real risk (particularly in 
     the Southeast).
       In addition, Alabama farmers want increased emphasis on 
     oversight by the federal government and private insurers to 
     prevent fraud. The Federation is pleased that the oversight 
     provisions were included in your bill by making crop 
     insurance more affordable for good farmers and eliminating 
     abuses by those who would take advantage of it, thereby 
     increasing producer participation.
       The Federation is also pleased to note that your bill 
     restores the provision in law that enables producers with 
     good experience to receive premium discounts, as well as 
     eliminating ``black dirt'' and replant provisions which have 
     unfairly penalized cotton growers in the current federal crop 
     insurance program.
       Furthermore, it is important to note that premium subsidies 
     are shifted to the higher levels of coverage in your bill, as 
     well as recognizing that your provision concerning the 
     multiple year disasters remedies the problem that producers 
     who experience multiple years of disaster currently face. 
     These provisions should make higher coverage more affordable, 
     as well as encourage greater producer participation.
       Again, we thank you and Senator Cochran for your leadership 
     for southern agriculture, and we look forward to working 
     toward a reasonable crop insurance program that is truly a 
     risk management tool for producers of all areas of the 
     country.
           Sincerely,
                        G. Keith Gray, Director, National Affairs.
                                 ______
                                 
      By Mr. McCONNELL (for himself, Mr. Smith of New Hampshire, Mr. 
        Kohl, Mr. Frist, Mr. Gregg, Mr. Johnson, Mr. Warner, Mr. 
        Cleland, Mr. Schumer, Mr. Allard, Mr. Jeffords, Mr. Akaka, Mrs. 
        Feinstein, Mr. Enzi, Mr. Robb, Mr. Grams, Mrs. Boxer, Mr. 
        Lugar, Ms. Landrieu, Mr. Cochran, Mrs. Murray, Mr. Inhofe, Mr. 
        Mack, Mr. Torricelli, Mr. Bingaman, Mr. Thomas, Mr. Leahy, Mr. 
        Campbell, Mr. Kennedy, Mr. Helms, Mr. Durbin, Mr. Santorum, Mr. 
        Lautenberg, Mr. Bunning, Mr. Moynihan, Mr. Kerry, Mr. Wyden, 
        Mr. Graham, Mr. Reid, Mr. Levin, and Mr. Lieberman):
  S. 1109. A bill to conserve global bear populations by prohibiting 
the importation, exportation, and interstate trade of bear viscera and 
items, products, or substances containing, or labeled or advertised as 
containing, bear viscera, and for other purposes; to the Committee on 
Environment and Public Works.


                        the bear protection act

  Mr. McCONNELL. Mr. President, I rise today to introduce the Bear 
Protection Act. This legislation, which I sponsored in the 105th 
Congress, is aimed at eliminating the poaching of America's bears for 
profit. As you may know, bear parts, such as gall bladders and bile, 
which are commonly referred to as ``viscera,'' have traditionally been 
used in myriad Asian medicines--for everything from diabetes to heart 
disease to hangovers, and in luxury shampoos and cosmetics. Due to the 
popularity of these products containing bear viscera, Asian bear 
populations have been decimated, causing poachers to run to American 
bears to meet the increasing demand.
  Mr. President, the practice of poaching bears for viscera is both a 
national and international problem. Asian and American bear populations 
are threatened by high demand for and low supply of bear parts and by 
the black market trade in exotic and traditional

[[Page 10652]]

medicine cures. The problem is compounded by the fact that the poaching 
of bears for their viscera is a very profitable enterprise, and one in 
which at least 18 Asian countries are known to participate. In fact, 
bear gall bladders in South Korea, for instance, are worth more than 
their weight in gold, fetching a price of about $10,000 a piece.
  Mr. President, each year, nearly 40,000 black bears are legally 
hunted in 36 States and Canada. Unfortunately, it has been estimated 
that roughly the same number is illegally poached every year, according 
to a former chief law enforcement officer with the U.S. Fish and 
Wildlife Service. While I am pleased to report that for the most part, 
U.S. bear populations have remained stable or are increasing, I 
continue to remain concerned about the threat posed by unchecked 
poaching.
  Since 1981, State and Federal wildlife agents have conducted many 
successful undercover operations to aimed at exposing the illegal 
slaughter of American bears. As recently as this past February, a group 
of State and Federal officers arrested 25 people in Virginia and 
charged them with 112 wildlife violations including bear poaching as 
part of Operations SOUP, or ``Special Operation to Uncover Poaching.'' 
Operation SOUP is a major undercover investigation, which has been 
ongoing for three years and is aimed at the trafficking of gall 
bladders and other bear parts from black bears in Virginia and 
Shenandoah National Park.
  Mr. President, I have with me two press releases from the Virginia 
Department of Game and Inland Fishing, as well as an article from the 
Washington Post which I would like to have placed in the Record.
  Mr. President, as these and other news reports will attest, this 
problem with poaching and trading bear parts must be addressed. 
Although many States and the U.S. Fish and Wildlife Service are making 
efforts to combat this problem, these agencies have neither the funds 
nor the resources to adequately solve the problem. Moreover, there are 
loopholes created by a patchwork of State laws that allow these illegal 
practices to flourish. There are fourteen States in which the sale of 
bear gall bladders is legal--eight of those States limit the sale to 
viscera taken from bears in other States, and there are five States 
that have no law in this regard. This patchwork of State laws enables 
poachers to ``launder'' the gall through the States that permit the 
sale of gall bladders. As long as a few States allow this action to go 
on, poaching for profit will continue.
  Mr. President, as I mentioned earlier, this is both a national and 
international problem--and it is a growing problem. The Convention on 
International Trade in Endangered Species (CITES), to which the United 
States is a party, has recognized the issue of bear conservation as a 
global issue. In fact, CITES has noted that ``the continued illegal 
trade is bear parts and derivatives of bear parts undermines the 
effectiveness of the Convention and that if CITES parties . . . do not 
take action to eliminate such trade, poaching may cause declines of 
wild bears that could lead to the extirpation of certain populations or 
even species.'' The Convention goes on to say that in order to achieve 
this goal, ``submitted and measurable action'' must be taken--this 
includes adopting national legislation.
  I would like to point out that members of the U.S. delegation to the 
CITES Convention contributed to the drafting of that resolution, and in 
doing so, made a strong statement about the need to strengthen our 
national commitment to eradicating the poaching of bears. Recently, the 
Secretariat pointed out that bear poaching is most likely to flourish 
in countries that have inconsistent internal trade, import, and export 
controls. In such instances where there are differences in national, 
Federal, and State laws, the Secretariat asserts that confusion and 
enforcement difficulties arise which will contribute to the 
availability of bear viscera that can become available for 
international trade.
  Mr. President, in order to halt the poaching of America's bears, we 
need to effectuate legislation that not only prohibits the import and 
export of bear viscera, but we need to close the loopholes in State 
laws that encourage poachers to evade the law. To effectively reduce 
the laundering of bear viscera through the United States, all states 
must have a minimum level of protection. We must also stop the import 
and export of bear viscera, so that we can shut off the international 
trade before America's bear populations suffer the same fate as Asian 
bear populations.
  The Bear Protection Act will do just that. It will establish national 
guidelines for trade in bear parts, but will not weaken any existing 
state laws that have been instituted to deal with this issue. The 
outright ban on the trade, sale or barter of bear viscera, including 
items that claim to contain bear parts, will close the existing 
loopholes and will allow State and Federal wildlife officials to focus 
their limited resources on much needed conservation efforts.
  Mr. President, let me underscore that my bill would in no way 
infringe on the rights of hunters to legally hunt bears. These 
sportsmen would still be allowed to keep trophies and furs of bears 
killed during legal hunts.
  The Bear Protection Act will also bolster America's efforts to 
curtail the international bear trade by directing the Secretaries of 
the Interior and State, as well as the United States Trade 
Representative to establish a dialogue with the counties that share our 
interest in conserving bear species. This, too, is an important element 
of the legislation because I believe efforts to both reduce the demand 
for bear parts in Asia and encourage the increased usage of synthetic 
and other natural products as an alternative to beargall should be made 
a priority.
  Mr. President, it is important that we act now to protect the 
American bear population. The United States must take a stand and be an 
example to the rest of the world by prohibiting the illegal taking and 
smuggling of American bears. If we act now, we can stop the poaching of 
bears, which left unchecked, will lead us down a path toward these 
magnificent creatures' extinction. That is why I urge my colleagues to 
join me in support of this worthwhile legislation.
  Mr. President, I ask that the full text of my legislation and 
additional material to be printed in the Record.
  There being no objection, the material was ordered to the printed in 
the Record, as follows:

                                S. 1109

       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 ``Bear Protection Act of 
     1999''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) all 8 extant species of bear--Asian black bear, brown 
     bear, polar bear, American black bear, spectacled bear, giant 
     panda, sun bear, and sloth bear--are listed on Appendix I or 
     II of the Convention on International Trade in Endangered 
     Species of Wild Fauna and Flora (27 UST 1087; TIAS 8249) 
     (referred to in this section as ``CITES'');
       (2) Article XIV of CITES provides that Parties to CITES may 
     adopt stricter domestic measures regarding the conditions for 
     trade, taking, possession, or transport of species on 
     Appendix I or II, and the Parties to CITES adopted a 
     resolution (Conf. 10.8) urging Parties to take immediate 
     action to demonstrably reduce the illegal trade in bear parts 
     and derivatives;
       (3) the Asian bear populations have declined significantly 
     in recent years, as a result of habitat loss and poaching due 
     to a strong demand for bear viscera used in traditional 
     medicines and cosmetics;
       (4) Federal and State undercover operations have revealed 
     that American bears have been poached for their viscera;
       (5) while most American black bear populations are 
     generally stable or increasing, commercial trade could 
     stimulate poaching and threaten certain populations if the 
     demand for bear viscera increases; and
       (6) prohibitions against the importation into the United 
     States and exportation from the United States, as well as 
     prohibitions against the interstate trade, of bear viscera 
     and products containing, or labeled or advertised as 
     containing, bear viscera will assist in ensuring that the 
     United States does not contribute to the decline of any bear 
     population as a result of the commercial trade in bear 
     viscera.

     SEC. 3. PURPOSES.

       The purpose of this Act is to ensure the long-term 
     viability of the world's 8 bear species by--

[[Page 10653]]

       (1) prohibiting international trade in bear viscera and 
     products containing, or labeled or advertised as containing, 
     bear viscera;
       (2) encouraging bilateral and multilateral efforts to 
     eliminate such trade; and
       (3) ensuring that adequate Federal legislation exists with 
     respect to domestic trade in bear viscera and products 
     containing, or labeled or advertised as containing, bear 
     viscera.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Bear viscera.--The term ``bear viscera'' means the body 
     fluids or internal organs, including the gallbladder and its 
     contents but not including blood or brains, of a species of 
     bear.
       (2) Import.--The term ``import'' means to land on, bring 
     into, or introduce into any place subject to the jurisdiction 
     of the United States, whether or not the landing, bringing, 
     or introduction constitutes an importation within the meaning 
     of the customs laws of the United States.
       (3) Person.--The term ``person'' means--
       (A) an individual, corporation, partnership, trust, 
     association, or other private entity;
       (B) an officer, employee, agent, department, or 
     instrumentality of--
       (i) the Federal Government;
       (ii) any State, municipality, or political subdivision of a 
     State; or
       (iii) any foreign government;
       (C) a State, municipality, or political subdivision of a 
     State; and
       (D) any other entity subject to the jurisdiction of the 
     United States.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (5) State.--The term ``State'' means a State, the District 
     of Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, the Commonwealth of the Northern Mariana 
     Islands, American Samoa, and any other territory, 
     commonwealth, or possession of the United States.
       (6) Transport.--The term ``transport'' means to move, 
     convey, carry, or ship by any means, or to deliver or receive 
     for the purpose of movement, conveyance, carriage, or 
     shipment.

     SEC. 5. PROHIBITED ACTS.

       (a) In General.--Except as provided in subsection (b), a 
     person shall not--
       (1) import into, or export from, the United States bear 
     viscera or any product, item, or substance containing, or 
     labeled or advertised as containing, bear viscera; or
       (2) sell or barter, offer to sell or barter, purchase, 
     possess, transport, deliver, or receive, in interstate or 
     foreign commerce, bear viscera or any product, item, or 
     substance containing, or labeled or advertised as containing, 
     bear viscera.
       (b) Exception for Wildlife Law Enforcement Purposes.--A 
     person described in subparagraph (B) or (C) of section 4(3) 
     may import into, or export from, the United States, or 
     transport between States, bear viscera or any product, item, 
     or substance containing, or labeled or advertised as 
     containing, bear viscera if the importation, exportation, or 
     transportation--
       (1) is solely for wildlife law enforcement purposes; and
       (2) is authorized by a valid permit issued under Appendix I 
     or II of the Convention on International Trade in Endangered 
     Species of Wild Fauna and Flora (27 UST 1087; TIAS 8249), in 
     any case in which such a permit is required under the 
     Convention.

     SEC. 6. PENALTIES AND ENFORCEMENT.

       (a) Criminal Penalties.--A person that knowingly violates 
     section 5 shall be fined under title 18, United States Code, 
     imprisoned not more than 1 year, or both.
       (b) Civil Penalties.--
       (1) Amount.--A person that knowingly violates section 5 may 
     be assessed a civil penalty by the Secretary of not more than 
     $25,000 for each violation.
       (2) Manner of assessment and collection.--A civil penalty 
     under this subsection shall be assessed, and may be 
     collected, in the manner in which a civil penalty under the 
     Endangered Species Act of 1973 may be assessed and collected 
     under section 11(a) of that Act (16 U.S.C. 1540(a)).
       (c) Products, Items, and Substances.--Any bear viscera, or 
     any product, item, or substance sold, imported, or exported, 
     or attempted to be sold, imported, or exported, in violation 
     of this section (including any regulation issued under this 
     section) shall be seized and forfeited to the United States.
       (d) Regulations.--After consultation with the Secretary of 
     the Treasury, the Secretary of Health and Human Services, and 
     the United States Trade Representative, the Secretary shall 
     issue such regulations as are necessary to carry out this 
     section.
       (e) Enforcement.--The Secretary, the Secretary of the 
     Treasury, and the Secretary of the department in which the 
     Coast Guard is operating shall enforce this section in the 
     manner in which the Secretaries carry out enforcement 
     activities under section 11(e) of the Endangered Species Act 
     of 1973 (16 U.S.C. 1540(e)).
       (f) Use of Penalty Amounts.--Amounts received as penalties, 
     fines, or forfeiture of property under this section shall be 
     used in accordance with section 6(d) of the Lacey Act 
     Amendments of 1981 (16 U.S.C. 3375(d)).

     SEC. 7. DISCUSSIONS CONCERNING TRADE PRACTICES.

       The Secretary and the Secretary of State shall discuss 
     issues involving trade in bear viscera with the appropriate 
     representatives of countries trading with the United States 
     that are determined by the Secretary and the United States 
     Trade Representative to be the leading importers, exporters, 
     or consumers of bear viscera, and attempt to establish 
     coordinated efforts with the countries to protect bears.

     SEC. 8. REPORT.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary, in cooperation with appropriate State 
     agencies, shall submit to the Committee on Environment and 
     Public Works of the Senate and the Committee on Resources of 
     the House of Representatives a report detailing the progress 
     of efforts to end the illegal trade in bear viscera.
                                  ____


 [From the Virginia Department of Game and Inland Fisheries, Jan. 18, 
                                 1999]

           Joint Effort Tackles Poachers, Illegal Bear Trade

       Luray, Virginia.--Earlier today, nearly 100 state and 
     federal officers arrested almost three dozen defendants 
     charged with more than 150 state wildlife violations. 
     Officers executed approximately a dozen search warrants to 
     further the investigation into the illegal trade of bear 
     parts. The action is part of the continuing investigation 
     Operation SOUP, or Special Operation to Uncover Poaching. The 
     operation is expected to yield one of the largest 
     prosecutions in the nation's history for crimes relating to 
     bear poaching and illegal trade in bear parts. Operation SOUP 
     is a joint effort of the Virginia Department of Game and 
     Inland Fisheries (VDGIF), the National Park Service, and the 
     U.S. Fish & Wildlife Service.
       Operation SOUP's three-year undercover investigation 
     involves a three-pronged approach targeting the 
     commercialization of bear parts used in the jewelry trade; 
     bear gall bladder and paw trafficking; and poaching by 
     individuals associated with specific groups suspected of 
     supplying bear parts. In addition to the arrests made today, 
     more misdemeanor and felony indictments may follow in the 
     weeks and months ahead as this joint effort identifies other 
     individuals involved in poaching and commercial trafficking 
     of bear parts. By working together, these government agencies 
     have been able to increase their manpower and resources to 
     combat the illegal sale of bear parts.
       A major aspect of the investigation focuses on the bear 
     gall bladder trade. This worldwide market is driven by the 
     demand for its use in traditional Asian medicine. Since the 
     substantial decline of the Asian bear populations, the 
     American black bear has been targeted for this trade. One 
     bear gall bladder may sell overseas at auction for thousands 
     of dollars. Dried and ground to a fine powder it is sold by 
     the gram at a street value greater than cocaine.
       Details of Operation SOUP will be announced at a press 
     conference to be held tomorrow, Tuesday, January 19, at 1 PM, 
     at the Shenandoah National Park administrative headquarters 
     on U.S. Route 211 east of Luray, Virginia and west of the 
     Skyline Drive.
                                  ____


 [From the Virginia Department of Game and Island Fisheries, Jan. 19, 
                                 1999]

      Successful Joint Effort Tackles Poachers, Illegal Bear Trade

       Luray Virginia.--On Monday, January 18, 1999, nearly 110 
     state and federal officers arrested 25 defendants charged 
     with 112 wildlife violations, and executed 14 search warrants 
     as part of Operation SOUP, or ``Special Operation to Uncover 
     Poaching''. Operation SOUP is a major, on-going, undercover 
     investigation into illegal hunting and commercialization of 
     American black bears in Virginia and in Shenandoah National 
     Park. This three-year investigation has been a joint 
     operation of the Virginia Department of Game and Inland 
     Fisheries, the National Park Service, and the U.S. Fish & 
     Wildlife Service. Much of the investigation has been 
     concentrated in the Blue Ridge region of Virginia. Upon its 
     completion, Operation SOUP is expected to yield one of the 
     largest prosecutions in the nation's history for crimes 
     relating to bear poaching and illegal trade in bear parts.
       Operation SOUP utilizes a three-pronged approach to combat 
     this criminal activity. The first has targeted the sale of 
     bear parts, mostly claws and teeth, for use in the jewelry 
     trade. Sales of intact bear paws used to make ashtrays and 
     other trinkets also fall into this category. This 
     investigation has confirmed that in Virginia there is active 
     trade in bear parts used for jewelry. Independent of 
     yesterday's arrests, over the last eight months 12 
     individuals have been arrested and charged with 94 counts of 
     buying or selling bear parts in violation of state law.
       The second prong of Operation SOUP has targeted trafficking 
     of gall bladders and frozen bear paws. This aspect of the 
     investigation has confirmed that significant trade in gall 
     bladders and bear paws out of Virginia exists, including from 
     bears within and around Shenandoah National Park.
       To further this portion of the investigation, 11 federal 
     search warrants were executed in Madison and Rappanhannock 
     Counties in Virginia, and near Petersburg, West

[[Page 10654]]

     Virginia. They were issued on a combination of homes, 
     businesses and vehicles. Seized were five vehicles, several 
     freezers, and an assortment of bear parts, firearms, and 
     cash. Federal felony indictments may be forthcoming in the 
     weeks and months ahead. Three arrests made on Monday have 
     connections with trafficking of bear parts. Additional 
     details will be released as they become available.
       The third prong of Operation SOUP has targeted the poachers 
     themselves. These individuals are associated with specific 
     groups that are suspected of being a source of bear parts for 
     commercial trade. On Monday, 22 individuals were arrested and 
     charged with a total of 107 state wildlife violations. 
     Although bear may be legally taken in Virginia by legitimate 
     sportsmen, these individuals are accused of using illegal 
     hunting practices to harvest bears. Undercover investigations 
     in this portion of the operation indicated that some of these 
     individuals may also have engaged in bear poaching within 
     Shenandoah National Park where it is unlawful to hunt. This 
     is still under investigation and may result in federal 
     indictments for illegal hunting within the park being passed 
     down in the weeks or months ahead.
       At the heart of Operation SOUP are concerns about an 
     international problem that has a toehold in Virginia. The 
     bear gall bladder trade is a worldwide industry driven by the 
     demand for its use in traditional Asian medicine. Many people 
     from Asian cultures believe bear parts, particularly the gall 
     bladder, have medicinal value for treating and preventing a 
     variety of ailments. A single gall bladder can be sold at 
     auction overseas for thousands of dollars. Dried, ground and 
     sold by the gram, bear gall bladders have a street value 
     greater than cocaine. In this operation, 300 gall bladders 
     were purchased or seized with an estimated U.S. value of 
     $75,000 and an international value of more than $3 million 
     dollars. Bear paws also have high commercial value. Bear paws 
     are purchased as an ingredient in Bear Paw Soup, considered a 
     delicacy in some ethnic Asian restaurants. A single bowl of 
     this soup can sell for hundreds of dollars overseas. The 
     serious decline in the Asian black bear population has lead 
     to the American black bear being targeted for this trade. The 
     government agencies behind Operation SOUP are deeply 
     concerned about these activities and will continue to 
     investigate illegal bear poaching and trafficking of bear 
     parts.
                                  ____


               [From the Washington Post, Feb. 16, 1999]

               Bear Poaching on Rise on Shenandoah Region

                     (By Maria Glod and Leef Smith)

       It was early January when the call came in on Jeffrey 
     Pascale's unlisted phone line: The goods were available. Was 
     he interested?
       A date was set, and Pascale agreed to meet James Presgraves 
     at a roadside dinner in Stanley, Va. The deal was completed 
     several miles away at Presgrave's home, where he allegedly 
     removed an assortment of bear gallbladders from the freezer 
     and Pascale, an undercover U.S. Park Ranger, paid him $925 
     for six of the golf ball-size organs.
       The purchase of the bear organs was documented last month 
     in affidavits filed in U.S. District Court in Roanoke in 
     support of search warrants and signaled to the close of a 
     three-year state and federal investigation into what 
     authorities said was a highly profitable loosely organized 
     bear-poaching ring operating in Virginia's Blue Ridge 
     mountains. Instead of killing the bears just for their meat 
     and fur, officials said, poachers were harvesting the animals 
     for their paws and gallbladders, which can sell for hundreds 
     of dollars in this country and thousands of dollars in Asia.
       No charges have been filed against Presgraves.
       As bear populations dwindle in other parts of the world--
     victims of excessive hunting and disappearing habitats--
     poaching has become increasingly lucrative in North America, 
     where an estimated 400,000 bears live. Each year, hundreds of 
     bear carcasses turn up, intact except for missing 
     gallbladders, paws and claws, according to testimony given to 
     Congress.
       Gallbladders and the green bile they store are prized in 
     Asia, where they are used in medicine to treat a variety of 
     ailments, including heart disease and hangovers. Bear paw 
     soup is considered a delicacy in some Asian cultures and is 
     sold--off the menu--in some restaurants for as much as $60 a 
     bowl, investigators say.
       ``People are willing to pay any amount of money [for a bear 
     product] if they want it really bad,'' said Andrea Gaski of 
     the World Wildlife Fund, which monitors bear poaching.
       While bear hunting is legal in Virginia, it is illegal, as 
     in most states, to sell the animal's body parts--including 
     gallbladders, heads, hides, claws or teeth. Bear hunting is 
     not permitted in Maryland. Last year, Congress considered, 
     but did not pass, legislation aimed at halting the trade in 
     bear organs.
       In Virginia, hunters legally kill 600 to 900 bears each 
     hunting season. Officials say it is unclear how many more of 
     the population of about 4,000 bears are taken by poachers. In 
     the most recent investigation, law enforcement officials 
     seized about 300 gallbladders and arrested 25 people. They 
     have been charged with offenses ranging from illegally buying 
     wildlife parts, a felony, to misdemeanor hunting violations. 
     Authorities said that some of the charges stem from selling 
     jewelry made with bear claws or teeth, while others target 
     alleged traffickers in the bear organs. Officials say that 
     some of the parts sold in Virginia are hunted legally. The 
     federal investigation is continuing.
       The state and federal investigation in Virginia began in 
     1996 when investigators began receiving tips from hunters 
     about poaching in and around Shenandoah National Park, 
     officials said.
       Agents ultimately infiltrated the local ring, accompanying 
     poachers on hunts and posed as middlemen.
       ``Some of those people were blatant enough that if you left 
     a business card saying, ``I want to buy gallbladders,' at a 
     hunting lodge, they would call you back,'' said Don 
     Patterson, a supervisor with the U.S. Fish and Wildlife 
     Service who helped lead the investigation.
       According to documents filed in U.S. District Court in 
     Roanoke, Pascale met six times during 1997 and 1998 with 
     Bonnie Sue and Danny Ray Baldwin at their home in 
     Sperryville, Va., to purchase bear gallbladders and paws.
       During the course of his investigation, according to the 
     affidavit filed in support of a search warrant application, 
     the Baldwins told Pascale they had been in business for 13 
     years, selling about 300 gallbladders annually to customers 
     in Maryland, New York and the District.
       According to court records, the Baldwins said they obtained 
     their bear parts from several sources including hunt clubs, 
     farmers and orchards, as well as from the bears that Danny 
     Baldwin bagged by hunting or trapping.
       No charges have been filed against the Baldwins.
       Investigators compare the illegal trade in bear parts to 
     drug trafficking, saying the poachers typically work through 
     a middleman who delivers the gallbladders and paws to either 
     local or overseas Asian markets.
       Nationwide, federal authorities have intercepted 70 
     shipments of bear parts headed to Asian markets in the past 
     five years, according to U.S. Fish and Wildlife officials.
       ``If you don't watch this situation and keep your fingers 
     on the pulse, you can quickly look at it and say, `Where did 
     [the bears] all go?' '' said William Woodfin, director of the 
     Virginia Department of Game and Inland Fisheries. ``We have 
     an obligation to future generations to make sure the black 
     bear will be there for them to enjoy.''
                                  ____


             Conf. 10.8--Conservation of and Trade in Bears

       Aware that all populations of bear species are included 
     either in Appendix I or Appendix II of the Convention;
       Recognizing that bears are native to Asia, Europe, North 
     America and South America and, therefore, the issue of bear 
     conservation is a global one;
       Noting that the continued illegal trade in parts and 
     derivatives of bear species undermines the effectiveness of 
     the Convention and that if CITES Parties and States not-party 
     do not take action to eliminate such trade, poaching may 
     cause declines of wild bears that could lead to the 
     extirpation of certain populations or even species;
       Recognizing that long-term solutions for the protection and 
     conservation of bears require the adoption of substantive and 
     measurable actions;
       The Conference of the Parties to the Convention urges all 
     Parties, particularly bear range and consuming countries, to 
     take immediate action in order to demonstrably reduce the 
     illegal trade in bear parts and derivatives by the 11th 
     meeting of the Conference of the Parties, by:
       (a) confirming, adopting or improving their national 
     legislation to control the import and export of bear parts 
     and derivatives, ensuring that the penalties for violations 
     are sufficient to deter illegal trade;
       (b) increasing CITES enforcement by providing additional 
     resources, nationally and internationally, for wildlife trade 
     controls;
       (c) strengthening measures to control illegal export as 
     well as import of bear parts and derivatives;
       (d) initiating or encouraging new national efforts in key 
     producers and consumer countries to identify, target and 
     eliminate illegal markets;
       (e) developing international training programmes on 
     enforcement of wildlife laws for field personnel, with a 
     specific focus on bear parts and derivatives, and exchanging 
     field techniques and intelligence; and
       (f) developing bilateral and regional agreements for 
     conservation and law enforcement efforts;
       Recommends that all Parties review and strengthen measures, 
     where necessary, to enforce the provisions of the Convention 
     relating to specimens of species included in Appendices I and 
     II, where bear parts and derivatives are concerned;
       Recommends further that Parties and States not-party, as a 
     matter of urgency, address the issues of illegal trade in 
     bear parts and derivatives by:
       (a) strengthening dialogue between government agencies, 
     industry, consumer groups and conservation organizations to 
     ensure

[[Page 10655]]

     that legal trade does not provide a conduit for illegal trade 
     in parts and derivatives of Appendix-I bears and to increase 
     public awareness of CITES trade controls;
       (b) encouraging bear range and consumer countries that are 
     not party to CITES to accede to the Convention as a matter of 
     urgency;
       (c) providing funds for research on the status of 
     endangered bears, especially Asian species;
       (d) working with traditional-medicine communities to reduce 
     demand for bear parts and derivatives, including the active 
     promotion of research on and use of alternatives and 
     substitutes that do not endanger other wild species; and
       (e) developing programmes in co-operation with traditional-
     medicine communities and conservation organizations to 
     increase public awareness and industry knowledge about the 
     conservation concerns associated with the trade in bear 
     specimens and the need for stronger domestic trade controls 
     and conservation measures; and
       Calls upon all governments and intergovernmental 
     organizations, international aid agencies and non-
     governmental organizations to provide, as a matter of 
     urgency, funds and other assistance to stop the illegal trade 
     in bear parts and derivatives and to ensure the survival of 
     all bear species.
                                 ______
                                 
      By Mr. LOTT:
  S. 1110. A bill to amend the Public Health Service Act to establish 
the National Institute of Biomedical Imaging and Engineering; to the 
Committee on Health, Education, Labor, and Pensions.


national institute of biomedical imaging and engineering establishment 
                                  act

  Mr. LOTT. Mr. President, I am pleased to introduce today the National 
Institute of Biomedical Imaging and Engineering Establishment Act. The 
bill would create a concentrated focus at the National Institutes of 
Health (NIH) on biomedical imaging and bioengineering.
  Imaging has been on the forefront of many of our advances in early 
diagnosis and treatment of disease. Innovative technologies have 
greatly reduced the need for invasive surgery and provided a remarkable 
tool for early detection of disease. Breakthroughs in imaging research 
have direct application to advances in molecular biology and molecular 
genetics, accelerating the development of new gene therapies and 
genetic screening.
  Despite the revolutionary influence of imaging on both research and 
treatment, the NIH traditionally has not concentrated basic research 
efforts on the imaging sciences. The bill I am introducing today 
ensures that research is not only focused in this important field, but 
that its applications are disseminated across disease fields. The bill 
also encourages information sharing among federal agencies. Many 
agencies, such as NASA, do basic imaging research. We should be 
committed to ensuring that all advances that have applications in our 
fight against disease are shared with our medical community.
  I am proud of the commitment that this Congress has made to the 
National Institutes of Health. We have demonstrated our determination 
to provide increased federal resources in the fight against disease. I 
believe that the establishment of a National Institute of Biomedical 
Imaging and Engineering will compliment those efforts.
  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. 1110

       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 ``National Institute of 
     Biomedical Imaging and Engineering Establishment Act''.

     SEC. 2. FINDINGS.

       The Congress makes the following findings:
       (1) Basic research in imaging, bioengineering, computer 
     science, informatics, and related fields is critical to 
     improving health care but is fundamentally different from the 
     research in molecular biology on which the current national 
     research institutes at the National Institutes of Health 
     (referred to in this section as the ``NIH'') are based. To 
     ensure the development of new techniques and technologies for 
     the 21st century, these disciplines therefore require an 
     identity and research home at the NIH that is independent of 
     the existing institute structure.
       (2) Advances based on medical research promise new, more 
     effective treatments for a wide variety of diseases, but the 
     development of new, noninvasive imaging techniques for 
     earlier detection and diagnosis of disease is essential to 
     take full advantage of such new treatments and to promote the 
     general improvement of health care.
       (3) The development of advanced genetic and molecular 
     imaging techniques is necessary to continue the current rapid 
     pace of discovery in molecular biology.
       (4) Advances in telemedicine, and teleradiology in 
     particular, are increasingly important in the delivery of 
     high quality, reliable medical care to rural citizens and 
     other underserved populations. To fulfill the promise of 
     telemedicine and related technologies fully, a structure is 
     needed at the NIH to support basic research focused on the 
     acquisition, transmission, processing, and optimal display of 
     images.
       (5) A number of Federal departments and agencies support 
     imaging and engineering research with potential medical 
     applications, but a central coordinating body, preferably 
     housed at the NIH, is needed to coordinate these disparate 
     efforts and facilitate the transfer of technologies with 
     medical applications.
       (6) Several breakthrough imaging technologies, including 
     magnetic resonance imaging (MRI) and computed tomography 
     (CT), have been developed primarily abroad, in large part 
     because of the absence of a home at the NIH for basic 
     research in imaging and related fields. The establishment of 
     a central focus for imaging and bioengineering research at 
     the NIH would promote both scientific advance and U.S. 
     economic development.
       (7) At a time when a consensus exists to add significant 
     resources to the NIH in coming years, it is appropriate to 
     modernize the structure of the NIH to ensure that research 
     dollars are expended more effectively and efficiently and 
     that the fields of medical science that have contributed the 
     most to the detection, diagnosis, and treatment of disease in 
     recent years receive appropriate emphasis.
       (8) The establishment of a National Institute of Biomedical 
     Imaging and Engineering at the NIH would accelerate the 
     development of new technologies with clinical and research 
     applications, improve coordination and efficiency at the NIH 
     and throughout the Federal Government, reduce duplication and 
     waste, lay the foundation for a new medical information age, 
     promote economic development, and provide a structure to 
     train the young researchers who will make the pathbreaking 
     discoveries of the next century.

     SEC. 3. ESTABLISHMENT OF NATIONAL INSTITUTE OF BIOMEDICAL 
                   IMAGING AND ENGINEERING.

       (a) In General.--Part C of title IV of the Public Health 
     Service Act (42 U.S.C. 285 et seq.) is amended by adding at 
     the end the following:

 ``Subpart 18--National Institute of Biomedical Imaging and Engineering

     ``SEC. 464Z. PURPOSE OF THE INSTITUTE.

       ``(a) In general.--The general purpose of the National 
     Institute of Biomedical Imaging and Engineering (in this 
     section referred to as the `Institute') is the conduct and 
     support of research, training, the dissemination of health 
     information, and other programs with respect to biomedical 
     imaging, biomedical engineering, and associated technologies 
     and modalities with biomedical applications (in this section 
     referred to as `biomedical imaging and engineering').
       ``(b) National Biomedical Imaging and Engineering 
     Program.--
       ``(1) Establishment.--The Director of the Institute, with 
     the advice of the Institute's advisory council, shall 
     establish a National Biomedical Imaging and Engineering 
     Program (in this section referred to as the `Program').
       ``(2) Activities.--Activities under the Program shall 
     include the following with respect to biomedical imaging and 
     engineering:
       ``(A) Research into the development of new techniques and 
     devices.
       ``(B) Related research in physics, engineering, 
     mathematics, computer science, and other disciplines.
       ``(C) Technology assessments and outcomes studies to 
     evaluate the effectiveness of biologics, materials, 
     processes, devices, procedures, and informatics.
       ``(D) Research in screening for diseases and disorders.
       ``(E) The advancement of existing imaging and engineering 
     modalities, including imaging, biomaterials, and informatics.
       ``(F) The development of target-specific agents to enhance 
     images and to identify and delineate disease.
       ``(G) The development of advanced engineering and imaging 
     technologies and techniques for research from the molecular 
     and genetic to the whole organ and body levels.
       ``(H) The development of new techniques and devices for 
     more effective interventional procedures (such as image-
     guided interventions).
       ``(3) Plan.--
       ``(A) In general.--With respect to the Program, the 
     Director of the Institute shall prepare and transmit to the 
     Secretary and the Director of NIH a plan to initiate, expand, 
     intensify, and coordinate activities of the Institute with 
     respect to biomedical imaging

[[Page 10656]]

     and engineering. The plan shall include such comments and 
     recommendations as the Director of the Institute determines 
     appropriate. The Director of the Institute shall periodically 
     review and revise the plan and shall transmit any revisions 
     of the plan to the Secretary and the Director of NIH.
       ``(B) Recommendations.--The plan under subparagraph (A) 
     shall include the recommendations of the Director of the 
     Institute with respect to the following:
       ``(i) Where appropriate, the consolidation of programs of 
     the National Institutes of Health for the express purpose of 
     enhancing support of activities regarding basic biomedical 
     imaging and engineering research.
       ``(ii) The coordination of the activities of the Institute 
     with related activities of the other agencies of the National 
     Institutes of Health and with related activities of other 
     Federal agencies.
       ``(c) Advisory Council.--The establishment under section 
     406 of an advisory council for the Institute is subject to 
     the following:
       ``(1) The number of members appointed by the Secretary 
     shall be 12.
       ``(2) Of such members--
       ``(A) 6 members shall be scientists, engineers, physicians, 
     and other health professionals who represent disciplines in 
     biomedical imaging and engineering and who are not officers 
     or employees of the United States; and
       ``(B) 6 members shall be scientists, engineers, physicians, 
     and other health professionals who represent other 
     disciplines and are knowledgeable about the applications of 
     biomedical imaging and engineering in medicine, and who are 
     not officers or employees of the United States.
       ``(3) Ex officio members.--In addition to the ex officio 
     members specified in section 406(b)(2), the ex officio 
     members of the advisory council shall include the Director of 
     the Centers for Disease Control and Prevention, the Director 
     of the National Science Foundation, and the Director of the 
     National Institute of Standards and Technology (or the 
     designees of such officers).
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--Subject to paragraph (2), for the 
     purpose of carrying out this section:
       ``(A) For fiscal year 2000, there is authorized to be 
     appropriated an amount equal to the amount obligated by the 
     National Institutes of Health during fiscal year 1999 for 
     biomedical imaging and engineering, except that such amount 
     shall be adjusted to offset any inflation occurring after 
     October 1, 1998.
       ``(B) For each of the fiscal years 2001 and 2002, there is 
     authorized to be appropriated an amount equal to the amount 
     appropriated under subparagraph (A) for fiscal year 2000, 
     except that such amount shall be adjusted for the fiscal year 
     involved to offset any inflation occurring after October 1, 
     1999.
       ``(2) Reduction.--The authorization of appropriations for a 
     fiscal year under paragraph (1) is hereby reduced by the 
     amount of any appropriation made for such year for the 
     conduct or support by any other national research institute 
     of any program with respect to biomedical imaging and 
     engineering.''.
       (b) Use of Existing Resources.--In providing for the 
     establishment of the National Institute of Biomedical Imaging 
     and Engineering pursuant to the amendment made by subsection 
     (a), the Director of the National Institutes of Health 
     (referred to in this subsection as the ``NIH'')--
       (1) may transfer to the National Institute of Biomedical 
     Imaging and Engineering such personnel of the NIH as the 
     Director determines to be appropriate;
       (2) may, for quarters for such Institute, utilize such 
     facilities of the NIH as the Director determines to be 
     appropriate; and
       (3) may obtain administrative support for the Institute 
     from the other agencies of the NIH, including the other 
     national research institutes.
       (c) Construction of Facilities.--None of the provisions of 
     this Act or the amendments made by the Act may be construed 
     as authorizing the construction of facilities, or the 
     acquisition of land, for purposes of the establishment or 
     operation of the National Institute of Biomedical Imaging and 
     Engineering.
       (d) Date Certain for Establishment of Advisory Council.--
     Not later than 90 days after the effective date of this Act, 
     the Secretary of Health and Human Services shall complete the 
     establishment of an advisory council for the National 
     Institute of Biomedical Imaging and Engineering in accordance 
     with section 406 of the Public Health Service Act and in 
     accordance with section 464Z of such Act (as added by 
     subsection (a) of this section).
       (e) Conforming Amendment.--Section 401(b)(1) of the Public 
     Health Service Act (42 U.S.C. 281(b)(1)) is amended by adding 
     at the end the following:
       ``(R) The National Institute of Biomedical Imaging and 
     Engineering.''.

     SEC. 4. EFFECTIVE DATE.

       This Act shall take effect on October 1, 1999, or upon the 
     date of the enactment of this Act, whichever occurs later.
                                 ______
                                 
      By Mr. BOND:
  S. 1111. A bill to provide continuing authorization for a National 
Conference on Small Business, and for other purposes; to the Committee 
on Small Business.


               national conference on small business act

  Mr. BOND. Mr. President, it is with great pleasure that I am 
introducing the ``National Conference on Small Business Act.'' This 
bill is designed to create a permanent independent commission that will 
carry-on the extraordinary work that has been accomplished by three 
White House Conferences on Small Business.
  For the past 15 years, small businesses have been the fastest growing 
sector of the U.S. economy. When large businesses were restructuring 
and laying off significant numbers of workers, small businesses not 
only filled the gap, but their growth actually caused a net increase in 
new jobs. Today, small businesses employ 55% of all workers in the 
United States and they generate 50% of the gross domestic product. Were 
it not for small businesses, our country could not have experienced the 
sustained economic upsurge that has been ongoing since 1992.
  Because small businesses play such a significant role in our economy, 
in both rural towns and bustling inner cities, I believe it is 
important that the Federal government sponsor a national conference 
every four years to highlight the successes of small businesses and to 
focus national attention on the problems that may be hindering the 
ability of small businesses to start up and grow.
  Small business ownership is, has been, and will continue to be the 
dream of millions of Americans. Countries from all over the world send 
delegations to the United States to study why our system of small 
business ownership is so successful, all the while looking for a way to 
duplicate our success in their countries. Because we see and experience 
the successes of small businesses on a daily basis, it is easy to lose 
sight of the very special thing we have going for us in the United 
States--where each of us can have the opportunity to own and run our 
own business.
  The ``National Conference on Small Business Act'' is designed to 
capture and focus our attention on small business every four years. In 
this way, we will take the opportunity to study what is happening 
throughout the United States to small businesses. In one sense, the 
bill is designed to put small business on a pinnacle so we can 
appreciate what they have accomplished. At the same time, and just as 
important, every four years we will have an opportunity to learn from 
small businesses in each state what is not going well for them--such 
as, actions by the Federal government that hinder small business growth 
or state and local regulations that are a deterrent to starting a 
business.
  My bill creates an independent, bipartisan National Commission on 
Small Business, which will be made up of 8 small business advocates and 
the Small Business Administration's Chief Counsel for Advocacy. Every 
four years, during the first year following a presidential election, 
the President will name two National Commissioners. In the U.S. Senate 
and the House of Representatives, the Majority Leader of each body will 
name two National Commissioners and the Minority Leaders will each name 
one.
  Widespread participation from small businesses in each state will 
contribute to the work leading up to the National Conference. Under the 
bill, the National Conference will take place one year after the 
National Commissioners are appointed. The first act of the 
Commissioners will be to request that each Governor and each U.S. 
Senator name a small business delegate and alternate delegate from 
their respective states to the National Convention. Each U.S. 
Representative will name a small business delegate and alternative from 
his or her Congressional district. And the President will name a 
delegate and alternate from each state.
  The small business delegates will play a major role leading up to the 
National Conference on Small Business. There will be at least one 
meeting of the delegates at their respective State Conferences. We will 
be looking to the small business delegates to develop and highlight 
issues of critical concern to small businesses. The work at the state

[[Page 10657]]

level by the small business delegates will need to be thorough and 
thoughtful to make the National Conference a success.
  My goal will be for the small business delegates to think broadly, 
that is, to think ``out of the box.'' Their attention should include 
but not be restricted to the traditional issues associated with small 
business concerns, such as access to capital, tax reform and regulatory 
reform. In my role as Chairman of the Committee on Small Business, I 
will urge the delegates to focus on a wide array of issues that impact 
significantly on small businesses, including the importance of a solid 
education and the need for skilled, trained workers.
  Once the small business delegates are selected, the National 
Commission on Small Business will serve as a resource to the delegates 
for issue development and for planning the State Conferences. The 
National Commission will have a modest staff, including an Executive 
Director, that will work full time to make the State and National 
Conferences successes. A major resource to the National Commission and 
its staff will be the Chief Counsel for Advocacy from SBA. The Chief 
Counsel and the Office of Advocacy will serve as a major resource to 
the National Commission, and in turn, to the small business delegates, 
by providing them with both substantive background information and 
other administrative materials in support of the State and National 
Conferences.
  Mr. President, small businesses generally do not have the resources 
to maintain full time representatives to lobby our Federal government. 
They are too busy running their businesses to devote much attention to 
educating government officials as to what is going well, what is going 
poorly, and what needs improvement for the small business community. 
The National Conference on Small Business will give small businesses an 
opportunity every four years to make its mark on the Congress and the 
Executive Branch. I urge each of my colleagues to review this proposal, 
and I hope they will agree to join me as cosponsors of the ``National 
Conference on Small Business Act.''
  I ask unanimous consent that the full text of the bill and the 
section-by-section analysis be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

       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 ``National Conference on Small 
     Business Act''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``Administrator'' means the Administrator of 
     the Small Business Administration;
       (2) the term ``Chief Counsel'' means the Chief Counsel for 
     Advocacy of the Small Business Administration;
       (3) the term ``National Commission'' means the National 
     Commission on Small Business established under section 6;
       (4) the term ``National Conference''--
       (A) means the National Conference on Small Business 
     conducted under section 3(a); and
       (B) includes the last White House Conference on Small 
     Business occurring before 2002;
       (5) the term ``small business'' has the meaning given the 
     term ``small business concern'' under section 3 of the Small 
     Business Act;
       (6) the term ``State'' means any of the 50 States of the 
     United States; and
       (7) the term ``State Conference'' means a State Conference 
     on Small Business conducted under section 3(b).

     SEC. 3. NATIONAL AND STATE CONFERENCES ON SMALL BUSINESS.

       (a) National Conferences.--There shall be a National 
     Conference on Small Business once every 4 years, to be held 
     during the second year following each Presidential election, 
     to carry out the purposes specified in section 4.
       (b) State Conferences.--Each National Conference referred 
     to in subsection (a) shall be preceded by a State Conference 
     on Small Business, with not fewer than 1 such conference held 
     in each State, and with not fewer than 2 such conferences 
     held in any State having a population of more than 
     10,000,000.

     SEC. 4. PURPOSES OF NATIONAL CONFERENCES.

       The purposes of each National Conference shall be--
       (1) to increase public awareness of the contribution of 
     small business to the Nation's economy;
       (2) to identify the problems of small business;
       (3) to examine the status of minorities and women as small 
     business owners;
       (4) to assist small business in carrying out its role as 
     the Nation's job creator;
       (5) to assemble small businesses to develop such specific 
     and comprehensive recommendations for legislative and 
     regulatory action as may be appropriate for maintaining and 
     encouraging the economic viability of small business and 
     thereby, the Nation; and
       (6) to review the status of recommendations adopted at the 
     immediately preceding National Conference on Small Business.

     SEC. 5. CONFERENCE PARTICIPANTS.

       (a) In General.--To carry out the purposes specified in 
     section 4, the National Commission shall conduct National and 
     State Conferences to bring together individuals concerned 
     with issues relating to small business.
       (b) Conference Delegates.--
       (1) Appointments.--Only individuals who are owners or 
     officers of a small business shall be eligible for 
     appointment as delegates (or alternates) to the National and 
     State Conferences pursuant to this subsection, and such 
     appointments shall consist of--
       (A) 1 delegate (and 1 alternate) appointed by each Governor 
     of each State;
       (B) 1 delegate (and 1 alternate) appointed by each Member 
     of the House of Representatives, from the congressional 
     district of that Member;
       (C) 1 delegate (and 1 alternate) appointed by each Member 
     of the Senate from the home State of that Member; and
       (D) 50 delegates (and 50 alternates) appointed by the 
     President, 1 from each State.
       (2) Powers and duties.--Delegates to each National 
     Conference--
       (A) shall attend the State conferences in his or her 
     respective State;
       (B) shall conduct meetings and other activities at the 
     State level before the date of the National Conference, 
     subject to the approval of the National Commission; and
       (C) shall direct such State level conferences, meetings, 
     and activities toward the consideration of the purposes of 
     the National Conference specified in section 4, in order to 
     prepare for the next National Conference.
       (3) Alternates.--Alternates shall serve during the absence 
     or unavailability of the delegate.
       (c) Role of the Chief Counsel.--The Chief Counsel for 
     Advocacy of the Small Business Administration shall, after 
     consultation and in coordination with the National 
     Commission, assist in carrying out the National and State 
     Conferences required by this Act by--
       (1) preparing and providing background information and 
     administrative materials for use by participants in the 
     conferences;
       (2) distributing issue information and administrative 
     communications, electronically where possible through an 
     Internet web site and e-mail, and in printed form if 
     requested; and
       (3) maintaining an Internet site and regular e-mail 
     communications after each National Conference to inform 
     delegates and the public of the status of recommendations and 
     related governmental activity.
       (d) Expenses.--Each delegate (and alternate) to each 
     National and State Conference shall be responsible for his or 
     her expenses related to attending the conferences, and shall 
     not be reimbursed either from funds appropriated pursuant to 
     this section or the Small Business Act.
       (e) Advisory Committee.--
       (1) In general.--The National Commission shall appoint a 
     Conference Advisory Committee consisting of 10 individuals 
     who were participants at the last preceding National 
     Conference.
       (2) Preference.--Preference for appointment under this 
     subsection shall be given to those who have been active 
     participants in the implementation process following the 
     prior National Conference.
       (f) Public Participation.--National and State Conferences 
     shall be open to the public, and no fee or charge may be 
     imposed on such attendee, other than an amount necessary to 
     cover the cost of any meal provided, plus a registration fee 
     to defray the expense of meeting rooms and materials of not 
     to exceed $15 per person.

     SEC. 6. NATIONAL COMMISSION ON SMALL BUSINESS.

       (a) Establishment.--There is established the National 
     Commission on Small Business.
       (b) Membership.--
       (1) Appointment.--The National Commission shall be composed 
     of 9 members, including--
       (A) the Chief Counsel for Advocacy of the Small Business 
     Administration;
       (B) 2 members appointed by the President;
       (C) 2 members appointed by the majority leader of the 
     Senate;
       (D) 1 member appointed by the minority leader of the 
     Senate;
       (E) 2 members appointed by the majority leader of the House 
     of Representatives; and
       (F) 1 member appointed by the minority leader of the House 
     of Representatives.
       (2) Selection.--Members of the National Commission shall be 
     selected among distinguished individuals noted for their 
     knowledge and experience in fields relevant to the

[[Page 10658]]

     issue of small business and the purposes of this Act.
       (3) Time of appointment.--The appointments required by 
     paragraph (1) shall be made 1 year before the opening date of 
     each National Conference, and shall expire 9 months after the 
     date on which each National Conference is convened.
       (c) Election of Chairperson.--At the first meeting of each 
     National Commission, a majority of the members of the 
     National Commission present and voting shall elect the 
     Chairperson of the National Commission.
       (d) Powers and Duties of Commission.--The National 
     Commission--
       (1) may enter into contracts with public agencies, private 
     organizations, and academic institutions to carry out this 
     Act;
       (2) shall consult, coordinate, and contract with an 
     independent, nonpartisan organization that--
       (A) has both substantive and logistical experience in 
     developing and organizing conferences and forums throughout 
     the Nation with elected officials and other government and 
     business leaders;
       (B) has experience in generating private resource from 
     multiple States in the form of event sponsorships; and
       (C) can demonstrate evidence of a working relationship with 
     Members of Congress from the majority and minority parties, 
     and at least 1 Federal agency; and
       (3) shall prescribe such financial controls and accounting 
     procedures as needed for the handling of funds from fees and 
     charges and the payment of authorized meal, facility, travel, 
     and other related expenses.
       (e) Planning and Administration of Conferences.--In 
     carrying out the National and State Conferences required by 
     this Act, the National Commission shall consult with the 
     Office of Advocacy of the Small Business Administration, the 
     Congress, and such other Federal agencies as it deems 
     appropriate.
       (f) Reports Required.--Not later than 6 months after the 
     date on which each National Conference is convened, the 
     National Commission shall submit to the President and to the 
     chairpersons and ranking minority Members of the Committees 
     on Small Business of the Senate and the House of 
     Representatives a final report, which shall--
       (1) include the findings and recommendations of the 
     National Conference and any proposals for legislative action 
     necessary to implement those recommendations; and
       (2) be made available to the public.
       (g) Quorum.--4 voting members of the National Commission 
     shall constitute a quorum for purposes of transacting 
     business.
       (h) Meetings.--The National Commission shall meet not later 
     than 20 calendar days after the appointment of all members, 
     and at least every 30 calendar days thereafter.
       (i) Vacancies.--Any vacancy of the National Commission 
     shall not affect its powers, but shall be filled in the 
     manner in which the original appointment was made.
       (j) Executive Director and Staff.--The National Commission 
     may appoint and compensate an Executive Director and such 
     other personnel to conduct the National and State Conferences 
     as it may deem advisable, without regard to title 5, United 
     States Code, governing appointments in the competitive 
     service, and without regard to chapter 51 and subchapter III 
     of chapter 53 of such title, relating to classification and 
     General Schedule pay rates, except that the rate of pay for 
     the Executive Director and other personnel may not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of such title.
       (k) Funding.--Members of the National Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the National 
     Commission.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS; AVAILABILITY OF 
                   FUNDS.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out each National and State 
     Conference required by this Act, $5,000,000, which shall 
     remain available until expended. New spending authority or 
     authority to enter contracts as provided in this Act shall be 
     effective only to such extent and in such amounts as are 
     provided in advance in appropriation Acts.
       (b) Specific Earmark.--No amount made available to the 
     Small Business Administration may be made available to carry 
     out this Act, other than amounts made available specifically 
     for the purpose of conducting the National Conferences.
                                  ____


     National Conference on Small Business Act--Section-by-Section

     SECTION 1. SHORT TITLE.

       The name of the Act will be the ``National Conference on 
     Small Business Act.''

     SECTION 2. DEFINITIONS.

       This section defines key words and terms included in the 
     bill.

     SECTION 3. NATIONAL AND STATE CONFERENCES ON SMALL BUSINESS.

       This section states that a National Conference on Small 
     Business will occur every four years during the second year 
     after a presidential election. Prior to the National 
     Conference, there will be State Conferences for the delegates 
     in each state.

     SECTION 4. PURPOSES OF NATIONAL CONFERENCES.

       This section sets forth the reasons for having a National 
     Conference on Small Business.

     SECTION 5. CONFERENCE PARTICIPANTS.

       Subsection (a) directs the National Commission to conduct 
     National and State Conferences to bring together individuals 
     interested in issues affecting small businesses.
       Subsection (b) sets forth the procedures for selecting 
     delegates to the State and National Conferences. A delegates 
     must be an owner or officer of a small business. The 
     Governors and U.S. Senators will each appoint a delegate and 
     alternative delegate from their respective states. U.S. 
     Representatives will each appoint a delegate and alternate 
     from their respective congressional districts, and the 
     President will appoint a delegate and alternate from each 
     state. The delegates will be able to conduct meetings and 
     will attend a State Conference in their respective states 
     before the National Conference is held.
       Subsection (c) describes the role of SBA's Chief Counsel 
     for Advocacy.
       Subsection (d) explains that the delegates will be 
     responsible for their own expenses and will not be reimbursed 
     from appropriated funds.
       Subsection (e) directs the National Commission to appoint 
     an Advisory Committee of 10 persons who were participants at 
     the last preceding National Conference.
       Subsection (f) states that all State and National 
     Conferences will be open to the public and no fee greater 
     than $15 can be charged to people who wish to attend a 
     conference.

     SECTION 6. NATIONAL COMMISSION ON SMALL BUSINESS.

       Subsection (a) authorizes the establishment of a National 
     Commission on Small Business.
       Subsection (b) defines the membership of the National 
     Commission. It will include the SBA Chief Counsel for 
     Advocacy, 2 members appointed by the President, 3 members 
     from the Senate (2 majority, 1 minority), and 3 members from 
     the House of Representatives (2 majority, 1 minority). The 
     appointments will be made 1 year before the opening date of 
     the National Conference and will expire 9 months after the 
     National Conference has concluded.
       Subsection (c) sets forth the election of a Chairperson.
       Subsection (d) permits the National Commission to enter 
     into contracts with public agencies, private organizations, 
     academic institutions, and independent, nonpartisan 
     organizations to carry out the State and National 
     Conferences.
       Subsection (e) directs the National Commission to consult 
     with the Office of Advocacy at SBA, Congress, and Federal 
     agencies in carrying out the State and National Conferences.
       Subsection (f) requires that the National Commission submit 
     a report to the Chairmen and Ranking minority Members of the 
     Senate and House Committees on Small Business within 6 months 
     after the conclusion of the National Conference.
       Subsection (g) establishes a quorum of 4 members of the 
     National Commission for purposes of transacting business.
       Subsection (h) requires the National Commission to hold its 
     first meeting within 20 days after the appointment of all 
     members and at least every 30 days thereafter.
       Subsection (i) states that vacancies on the National 
     Commission will be filled in the same manner as the original 
     appointments were made.
       Subsection (j) authorizes the National Commission to hire 
     an Executive Director and the staff necessary to conduct the 
     State and National Conferences.
       Subsection (k) authorizes the National Commission to 
     reimburse its members for travel expenses, including per 
     diem.

     SECTION 7. AUTHORIZATION OF APPROPRIATIONS; AVAILABILITY OF 
                   FUNDS.

       This section authorizes $5 million to cover all expense 
     incurred under this Act. It states that funds from SBA may 
     not support the Act unless specifically earmarked for that 
     purpose.
                                 ______
                                 
      By Mrs. BOXER (for herself and Mr. Lautenberg):
  S. 1112. A bill to protect children and other vulnerable 
subpopulations from exposure to environmental pollutants, to protect 
children from exposure to pesticides in schools, and to provide parents 
with information concerning toxic chemicals that pose risks to 
children, and for other purposes; to the Committee on Environment and 
Public Works.


                children's environmental protection act

  Mrs. BOXER. Mr. President, today I am pleased to introduce a bill to 
protect children from the dangers posed by pollution and toxic 
chemicals in our environment. My Children's Environmental Protection 
Act (CEPA) is based on the understanding that children are more 
vulnerable to those dangers than adults, and require special 
protection.
  In fact, we know that the physiology of children and their exposure 
patterns to toxic and harmful substances differ

[[Page 10659]]

from that of adults, and make them more susceptible to the dangers 
posed by those substances than adults. Children face greater exposure 
to such substances because they eat more food, drink more water, and 
breathe more air as a percentage of their body weight than adults. 
Children are also rapidly growing, and therefore physiologically more 
vulnerable to such substances than adults.
  How is this understanding that children suffer higher risks from the 
dangers posed by toxic and harmful substances than adults taken into 
account in our environmental and public health standards? Do we gather 
and consider data that specifically evaluates how those substances 
affect children?
  If that data is lacking, do we apply extra caution when we determine 
the amount of toxics that can be released into the air and water, the 
level of harmful contaminants that may be present in our drinking 
water, or the amount of pesticides that may be present in our food?
  In most cases, the answer to all of these questions is ``no.''
  In fact, most of these standards are designed to protect adults 
rather than children. In most cases, we don't even have the data that 
would allow us to measure how those substances specifically affect 
children. And, finally, in the face of that uncertainty, we generally 
assume that what we don't know about the dangers toxic and harmful 
substances pose to our children won't hurt them.
  We generally don't apply extra caution to take account of that 
uncertainty.
  CEPA would change the answers to those questions from ``no'' to 
``yes.'' It would childproof our environmental laws. CEPA is based on 
the premise that what we don't know about the dangers toxic and harmful 
substances pose to our children may very well hurt them.
  CEPA would require the Environmental Protection Agency (EPA) to set 
environmental and public health standards to protect children. It would 
specifically require EPA to explicitly consider the dangers that toxic 
and harmful substances pose to children when setting those standards. 
Finally, if EPA discovers that it does not have specific data that 
would allow it to measure those dangers, EPA would be required to apply 
an additional safety factor--an additional measure of caution--to 
account for that lack of information.
  As work would move forward under CEPA to childproof our environmental 
standards, CEPA would provide parents and teachers with a number of 
tools to immediately protect their children from toxic and harmful 
substances.
  First, CEPA would require EPA to provide all schools and day care 
centers that receive federal funding a copy of EPA's guide to help 
schools adopt a least toxic pest management policy. CEPA would also 
prohibit the use of dangerous pesticides--those containing known or 
probable carcinogens, reproductive toxins, acute nerve toxins and 
endocrine disrupters--in those areas. Under CEPA, parents would also 
receive advance notification before pesticides are applied on school or 
day care center grounds.
  Second, CEPA would expand the federal Toxics Release Inventory (TRI) 
to require the reporting of toxic chemical releases that may pose 
special risks to children. In particular, CEPA provides that releases 
of small amounts of lead, mercury, dioxin, cadmium and chromium be 
reported under TRI. These chemicals are either highly toxic, persist in 
the environment or can accumulate in the human body over many years--
all features which render them particularly dangerous to children.
  Lead, for example, will seriously affect a child's development, but 
is still released into the environment through lead smelting and waste 
incineration. CEPA would then require EPA to identify other toxic 
chemicals that may present special risks to children, and to provide 
that releases of those chemicals be reported under TRI.
  Finally, CEPA would direct EPA to create a list of recommended safer-
for-children products that minimize potential risks to children. CEPA 
would also require EPA to create a family right-to-know information kit 
that would include practical suggestions to help parents reduce their 
children's exposure to toxic and harmful substances in the environment.
  My CEPA bill is based on the premise that what we don't know about 
the dangers toxic and harmful substances pose to our children may very 
well hurt them. It would require EPA to apply caution in the face of 
that uncertainty. And, ultimately, it would childproof our 
environmental laws to ensure that those laws protect the most 
vulnerable among us--our children.
  I am hopeful that my House and Senate colleagues can act quickly to 
ensure the passage of my legislation.
  I ask unanimous consent that the full 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. 1112

       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 ``Children's Environmental 
     Protection Act.''

     SEC. 2. ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER 
                   VULNERABLE SUBPOPULATIONS.

       The Toxic Substances Control Act (15 U.S.C. 2601 et. seq.) 
     is amended by adding at the end the following:

 ``TITLE V--ENVIRONMENTAL PROTECTION FOR CHILDREN AND OTHER VULNERABLE 
                             SUBPOPULATIONS

     ``SEC. 501. FINDINGS AND POLICY.

       ``(a) Findings.--Congress finds that--
       ``(1) the protection of public health and safety depends on 
     individuals and government officials being aware of the 
     pollution dangers that exist in their homes, schools, and 
     communities, and whether those dangers present special 
     threats to the health of children and other vulnerable 
     subpopulations;
       ``(2) children spend much of their young lives in schools 
     and day care centers, and may face significant exposure to 
     pesticides and other environmental pollutants in those 
     locations;
       ``(3) the metabolism, physiology, and diet of children, and 
     exposure patterns of children to environmental pollutants 
     differ from those of adults and can make children more 
     susceptible than adults to the harmful effects of 
     environmental pollutants;
       ``(4) a study conducted by the National Academy of Sciences 
     that particularly considered the effects of pesticides on 
     children concluded that current approaches to assessing 
     pesticide risks typically do not consider risks to children 
     and, as a result, current standards and tolerances often fail 
     to adequately protect children;
       ``(5) there are often insufficient data to enable the 
     Administrator, when establishing a environmental and public 
     health standard for an environmental pollutant, to evaluate 
     the special susceptibility or exposure of children to 
     environmental pollutants;
       ``(6) when data are lacking to evaluate the special 
     susceptibility or exposure of children to an environmental 
     pollutant, the Administrator generally does not presume that 
     the environmental pollutant presents a special risk to 
     children and generally does not apply a special or additional 
     margin of safety to protect the health of children in 
     establishing an environmental or public health standard for 
     that pollutant; and
       ``(7) safeguarding children from environmental pollutants 
     requires the systematic collection of data concerning the 
     special susceptibility and exposure of children to those 
     pollutants, and the adoption of an additional safety factor 
     of at least 10-fold in the establishment of environmental and 
     public health standards where reliable data are not 
     available.
       ``(b) Policy.--It is the policy of the United States that--
       ``(1) the public has the right to be informed about the 
     pollution dangers to which children are being exposed in 
     their homes, schools and communities, and how those dangers 
     may present special health threats to children and other 
     vulnerable subpopulations;
       ``(2) each environmental and public health standard for an 
     environmental pollutant established by the Administrator 
     must, with an adequate margin of safety, protect children and 
     other vulnerable subpopulations;
       ``(3) where data sufficient to evaluate the special 
     susceptibility and exposure of children (including exposure 
     in utero) to an environmental pollutant are lacking, the 
     Administrator should presume that the environmental pollutant 
     poses a special risk to children and should apply an 
     appropriate additional margin of safety of at least 10-fold 
     in establishing an environmental or public health standard 
     for that environmental pollutant;
       ``(4) since it is difficult to identify all conceivable 
     risks and address all uncertainties

[[Page 10660]]

     associated with pesticide use, the use of dangerous 
     pesticides in schools and day care centers should be 
     eliminated; and
       ``(5) the Environmental Protection Agency, the Department 
     of Health and Human Services (including the National 
     Institute of Environmental Health Sciences and the Agency for 
     Toxic Substances and Disease Registry), the National 
     Institutes of Health, and other Federal agencies should 
     support research on the short-term and long-term health 
     effects of cumulative and synergistic exposures of children 
     and other vulnerable subpopulations to environmental 
     pollutants.

     ``SEC. 502. DEFINITIONS.

       ``In this title:
       ``(1) Child.--The term `child' means an individual 18 years 
     of age or younger.
       ``(2) Day care center.--The term `day care center' means a 
     center-based child care provider that is licensed, regulated, 
     or registered under applicable State or local law.
       ``(3) Environmental pollutant.--The term `environmental 
     pollutant' includes a hazardous substance subject to 
     regulation under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601), a 
     drinking water contaminant subject to regulation under the 
     Safe Drinking Water Act (42 U.S.C. 300f et seq), an air 
     pollutant subject to regulation under the Clean Air Act (42 
     U.S.C. 7401 et seq.), a water pollutant subject to regulation 
     under the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.), and a pesticide subject to regulation under the 
     Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
     136 et seq.).
       ``(4) Pesticide.--The term `pesticide' has the meaning 
     given the term in section 2 of the Federal Insecticide, 
     Fungicide, and Rodenticide Act (7 U.S.C. 136).
       ``(5) School.--The term `school' means an elementary school 
     (as defined in section 14101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801)), a secondary school 
     (as defined in section 14101 of that Act), a kindergarten, or 
     a nursery school that is public or receives Federal funding.
       ``(6) Vulnerable subpopulation.--The term `vulnerable 
     subpopulation' means children, pregnant women, the elderly, 
     individuals with a history of serious illness, and other 
     subpopulations identified by the Administrator as being 
     likely to experience special health risks from environmental 
     pollutants.

     ``SEC. 503. SAFEGUARDING CHILDREN AND OTHER VULNERABLE 
                   SUBPOPULATIONS.

       ``(a) In General.--The Administrator shall--
       ``(1) ensure that each environmental and public health 
     standard for an environmental pollutant protects children and 
     other vulnerable subpopulations with an adequate margin of 
     safety;
       ``(2) explicitly evaluate data concerning the special 
     susceptibility and exposure of children to any environmental 
     pollutant for which an environmental or public health 
     standard is established; and
       ``(3) adopt an additional margin of safety of at least 10-
     fold in the establishment of an environmental or public 
     health standard for an environmental pollutant in the absence 
     of reliable data on toxicity and exposure of the child to an 
     environmental pollutant or if there is a lack of reliable 
     data on the susceptibility of the child to an environmental 
     pollutant for which the environmental and public health 
     standard is being established.
       ``(b) Establishing, Modifying, or Reevaluating 
     Environmental and Public Health Standards.--
       ``(1) In general.--In establishing, modifying, or 
     reevaluating any environmental or public health standard for 
     an environmental pollutant under any law administered by the 
     Administrator, the Administrator shall take into 
     consideration available information concerning--
       ``(A) all routes of children's exposure to that 
     environmental pollutant;
       ``(B) the special susceptibility of children to the 
     environmental pollutant, including neurological differences 
     between children and adults, the effect of in utero exposure 
     to that environmental pollutant, and the cumulative effect on 
     a child of exposure to that environmental pollutant and other 
     substances having a common mechanism of toxicity.
       ``(2) Additional safety margin.--If any of the data 
     described in paragraph (1) are not available, the 
     Administrator shall, in completing a risk assessment, risk 
     characterization, or other assessment of risk underlying an 
     environmental or public health standard, adopt an additional 
     margin of safety of at least 10-fold to take into account 
     potential pre-natal and post-natal toxicity of an 
     environmental pollutant, and the completeness of data 
     concerning the exposure and toxicity of an environmental 
     pollutant to children.
       ``(c) Identification and Revision of Current Environmental 
     and Public Health Standards That Present Special Risks to 
     Children.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this title and annually thereafter, based on the 
     recommendations of the Children's Environmental Health 
     Protection Advisory Committee established under section 507, 
     the Administrator shall--
       ``(A) repromulgate, in accordance with this section, at 
     least 3 of the environmental and public health standards 
     identified by the Children's Environmental Health Protection 
     Advisory Committee as posing a special risk to children; or
       ``(B) publish a finding in the Federal Register that 
     provides the Administrator's basis for declining to 
     repromulgate at least 3 of the environmental and public 
     health standards identified by the Children's Environmental 
     Health Protection Advisory Committee as posing a special risk 
     to children.
       ``(2) Determination by administrator.--If the Administrator 
     makes the finding described in paragraph (1)(B), the 
     Administrator shall repromulgate in accordance with this 
     section at least 3 environmental and public health standards 
     determined to pose a greater risk to children's health than 
     the environmental and public health standards identified by 
     the Children's Environmental Health Protection Advisory 
     Committee.
       ``(3) Report.--Not later than 1 year after the date of 
     enactment of this title and annually thereafter, the 
     Administrator shall submit a report to Congress describing 
     the progress made by the Administrator in carrying out this 
     subsection.

     ``SEC. 504. PROTECTING CHILDREN FROM EXPOSURE TO PESTICIDES 
                   IN SCHOOLS.

       ``(a) In General.--Each school and day care center that 
     receives Federal funding shall--
       ``(1) take steps to reduce the exposure of children to 
     pesticides on school grounds, both indoors and outdoors; and
       ``(2) provide parents with advance notification of any 
     pesticide application on school grounds in accordance with 
     subsection (b).
       ``(b) Least Toxic Pest Control Strategy.--
       ``(1) In general.--The Administrator shall distribute to 
     each school and day care center the current manual of the 
     Environmental Protection Agency that guides schools and day 
     care centers in the establishment of a least toxic pest 
     control strategy.
       ``(2) List.--Not later than 180 days after the date of 
     enactment of this Act and annually thereafter, the 
     Administrator shall provide each school and day care center 
     with a list of pesticides that contain a substance that the 
     Administrator has identified as a known or probable 
     carcinogen, a developmental or reproductive toxin, a category 
     I or II acute nerve toxin, or a known or suspected endocrine 
     disrupter as identified by the endocrine disrupter screening 
     program of the Environmental Protection Agency.
       ``(3) Prohibition of pesticide application.--Effective 
     beginning on the date that is 2 years after the date of 
     enactment of this Act, any school or day care center that 
     receives Federal funding shall not apply any pesticide 
     described in paragraph (2), either indoors or outdoors.
       ``(4) Emergency exemption.--
       ``(A) In general.--An administrator of a school or day care 
     center may suspend the prohibition under paragraph (3) for a 
     period of not more than 14 days if the administrator 
     determines that a pest control emergency poses an imminent 
     threat to the health and safety of the school or day care 
     center community.
       ``(B) Notice.--
       ``(i) In general.--Prior to exercising the authority under 
     this paragraph, an administrator shall give notice to the 
     board of the school or day care center of the reasons for 
     finding that a pest control emergency exists.
       ``(ii) Action taken.--An administrator that exercises the 
     authority under subparagraph (A) shall report any action 
     taken by personnel or outside contractors in response to the 
     pest control emergency to the board of the school or day care 
     center at the next scheduled meeting of the board.
       ``(c) Parental notice prior to any pesticide application.--
       ``(1) In general.--An administrator of the school or day 
     care center shall provide written notice to parents not later 
     than 72 hours before any indoor or outdoor pesticide 
     application on the grounds of the school or day care center.
       ``(2) Contents of notice.--A notice under this subsection 
     shall include a description of the intended area of 
     application and the name of each pesticide to be applied.
       ``(3) Form.--A pesticide notice under this subsection may 
     be incorporated into any notice that is being sent to parents 
     at the time the pesticide notice is required to be sent.
       ``(4) Warning sign.--
       ``(A) In general.--An administrator of a school or day care 
     center shall post at any area in the area of the school or 
     day care center where a pesticide is to be applied a warning 
     sign that is consistent with the label of the pesticide and 
     prominently displays the term `warning', `danger', or 
     `poison'.
       ``(B) Period of display.--During the period that begins not 
     less than 24 hours before the application of a pesticide and 
     ends not less than 72 hours after the application, a sign 
     under this subparagraph shall be displayed in a location 
     where it is visible to all individuals entering the area.

     ``SEC. 505. SAFER ENVIRONMENT FOR CHILDREN.

       ``(a) In General.--Not later than 1 year after the date of 
     enactment of this title, the Administrator shall--

[[Page 10661]]

       ``(1) identify environmental pollutants commonly used or 
     found in areas that are reasonably accessible to children;
       ``(2) create a scientifically peer reviewed list of 
     substances identified under paragraph (1) with known, likely, 
     or suspected health risks to children;
       ``(3) create a scientifically peer reviewed list of safer-
     for-children substances and products recommended by the 
     Administrator for use in areas that are reasonably accessible 
     to children that, when applied as recommended by the 
     manufacturer, will minimize potential risks to children from 
     exposure to environmental pollutants;
       ``(4) establish guidelines to help reduce and eliminate 
     exposure of children to environmental pollutants in areas 
     reasonably accessible to children, including advice on how to 
     establish an integrated pest management program;
       ``(5) create a family right-to-know information kit that 
     includes a summary of helpful information and guidance to 
     families, such as the information created under paragraph 
     (3), the guidelines established under paragraph (4), 
     information on the potential health effects of environmental 
     pollutants, practical suggestions on how parents may reduce 
     their children's exposure to environmental pollutants, and 
     other relevant information, as determined by the 
     Administrator in cooperation with the Director of the Centers 
     for Disease Control and Prevention;
       ``(6) make all information created pursuant to this 
     subsection available to Federal and State agencies, the 
     public, and on the Internet; and
       ``(7) review and update the lists created under paragraphs 
     (2) and (3) at least once each year.''.

     SEC. 3. ADDITIONAL REPORTING OF TOXIC CHEMICAL RELEASES THAT 
                   AFFECT CHILDREN.

       Section 313(f)(1) of the Emergency Planning and Community 
     Right-to-Know Act of 1986 (42 U.S.C. 11023(f)(1)) is amended 
     by adding at the end the following:
       ``(C) Children's health.--
       ``(i) In general.--With respect to each of the toxic 
     chemicals described in clause (ii) that are released from a 
     facility, the amount described in clause (iii).
       ``(ii) Chemicals.--Not later than 2 years after the date of 
     enactment of this subparagraph, the Administrator shall 
     identify each toxic chemical that the Administrator 
     determines may present a significant risk to children's 
     health or the environment due to the potential of that 
     chemical to bioaccumulate, disrupt endocrine systems, remain 
     in the environment, or other characteristics, including--

       ``(I) any chemical or group of chemicals that persists in 
     any environmental medium for at least 60 days (as defined by 
     half life) or that have bioaccumulation or bioconcentration 
     factors greater than 1,000;
       ``(II) any chemical or group of chemicals that, despite a 
     failure to meet the specific persistence or bioaccumulation 
     measuring criteria described in subclause (I), can be 
     reasonably expected to degrade into a substance meeting those 
     criteria; and
       ``(III) lead, mercury, dioxin, cadmium, and chromium and 
     pollutants that are bioaccumulative chemicals of concern 
     listed in subparagraph (A) of table 6 of the tables to part 
     132 of title 40, Code of Federal Regulations.

       ``(iii) Threshold.--The Administrator shall establish a 
     threshold for each toxic chemical described in clause (ii) at 
     a level that shall ensure reporting for at least 80 percent 
     of the aggregate of all releases of the chemical from 
     facilities that--

       ``(I) have 10 or more full-time employees; and
       ``(II) are in Standard Industrial Classification Codes 20 
     through 39 or in the Standard Industrial Classification Codes 
     under subsection (b)(1)(B).

       ``(iv) Additional facilities.--If the Administrator 
     determines that a facility other than a facility described in 
     clause (iii) contributes substantially to total releases of 
     toxic chemicals described in clause (ii), the Administrator 
     shall require that facility to comply with clause (iii).''.

     SEC. 4. RESEARCH TO IMPROVE INFORMATION ON THE EFFECTS OF 
                   ENVIRONMENTAL POLLUTANTS ON CHILDREN.

       The Toxic Substances Control Act (15 U.S.C. 2601 et seq.) 
     (as amended by section 2) is amended by adding at the end the 
     following:

     ``SEC. 506. RESEARCH TO IMPROVE INFORMATION ON THE EFFECTS OF 
                   ENVIRONMENTAL POLLUTANTS ON CHILDREN.

       ``(a) Exposure and Toxicity Data.--The Administrator, the 
     Secretary of Agriculture, and the Secretary of Health and 
     Human Services shall coordinate and support the development 
     and implementation of basic and applied research initiatives 
     to examine the health effects and toxicity of pesticides 
     (including active and inert ingredients) and other 
     environmental pollutants on children and other vulnerable 
     subpopulations, and the exposure of children and vulnerable 
     subpopulations to environmental pollutants.
       ``(b) Biennial Reports.--The Administrator, the Secretary 
     of Agriculture, and the Secretary of Health and Human 
     Services shall submit biennial reports to Congress describing 
     actions taken to carry out this section.''.

     SEC. 5. CHILDREN'S ENVIRONMENTAL HEALTH PROTECTION ADVISORY 
                   COMMITTEE.

       The Toxic Substances Control Act (15 U.S.C. 2601 et seq.) 
     (as amended by section 4) is amended by adding at the end the 
     following:

     ``SEC. 507. CHILDREN'S ENVIRONMENTAL HEALTH PROTECTION 
                   ADVISORY COMMITTEE.

       ``(a) Establishment.--The Administrator shall establish a 
     Children's Environmental Health Protection Advisory Committee 
     to assist the Administrator in carrying out this title.
       ``(b) Composition.--The Committee shall be comprised of 
     medical professionals specializing in pediatric health, 
     educators, representatives of community groups, 
     representatives of environmental and public health nonprofit 
     organizations, industry representatives, and State 
     environmental and public health department representatives.
       ``(c) Duties.--Not later than 2 years after the date of 
     enactment of this title and annually thereafter, the 
     Committee shall develop a list of standards that merit 
     reevaluation by the Administrator in order to better protect 
     children's health.
       ``(d) Termination.--The Committee shall terminate not later 
     than 15 years after the date on which the Committee is 
     established.

     ``SEC. 508. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this title.''.

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