[Congressional Record (Bound Edition), Volume 146 (2000), Part 11]
[Senate]
[Pages 15998-16010]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CONRAD:
  S. 2913. A bill to amend the Agricultural Trade Act of 1978 to 
require the Secretary of Agriculture to use the export enhancement 
program to encourage the commercial sale of United States wheat in 
world markets at competitive prices whenever the importation of 
Canadian wheat into the United States reaches certain triggers; to the 
Committee on Agriculture, Nutrition, and Forestry.


           the export enhancement program trigger act of 2000

  Mr. CONRAD. Mr. President, today I am introducing legislation to help 
our farmers fight back against the unfair trade practices of state 
trading enterprises. As many of my colleagues know, state trading 
enterprises are government sanctioned monopolies that control commodity 
exports. Their unfair practices allow them to undercut prices of U.S. 
commodities, both in our market and in overseas markets where we 
compete for exports. My legislation, the Export Enhancement Program 
Trigger Act of 2000, would direct our government to fight back against 
these unfair practices.
  I am introducing this legislation in response to the experience of 
farmers in North Dakota, who have been forced to compete not just with 
foreign farmers, but with foreign state trading enterprises. Ever since 
the U.S.-Canada Free Trade Agreement (CFTA) took effect, North Dakota 
farmers have been flooded with a rising tide of imports of Canadian 
grains.
  These imports are coming into our country not because Canadian 
farmers are more competitive, but because of flaws in the CFTA and the 
unfair actions of the Canadian Wheat Board (CWB). As negotiated by 
then-USTR Clayton Yeutter, the CFTA allows the Canadian Wheat Board to 
sell into our market at less than the total cost of acquiring and 
selling its grain.
  The fact is that the Canadian Wheat Board is a government created and 
government supported monopoly. Because Canadian farmers are required to 
sell their grain to the Wheat Board, the Wheat Board gets its wheat at 
below market prices and can then tell its customers in this country or 
overseas that it will undercut U.S. prices. These practices amount to 
de facto subsidies, but because the Wheat Board operates in secret, 
these unfair practices are not subjected to the normal rules of 
international trade.
  This unfair competition caused imports of wheat from Canada to 
increase steadily until, in 1993-94, they reached a record 2.4 million 
tons of total wheat and 575,000 tons of durum. These levels of imports 
caused unacceptable damage to North Dakota farmers, so I convinced the 
Clinton Administration to impose limits on Canadian imports. Under the 
Memorandum of Understanding (MOU) negotiated with Canada, durum imports 
were limited to 300,000 tons and total wheat imports were limited to 
1.5 million tons in 1994-95.
  These limits worked. Imports of Canadian grain fell dramatically for 
several years. Unfortunately, however, the authority to impose these 
limits disappeared as a result of the Uruguay Round Agreements. As a 
result, our friends to the north are once again on the move, attacking 
our markets, using the monopoly power of the Canadian Wheat Board to 
undercut prices for our farmers.
  Last year, imports from Canada again approached their 1993-94 peaks 
(2.2 million tons of total wheat and 560,000 tons of durum), and this 
year they are on track to stay far above the MOU level (2 million tons 
of total wheat and 480,000 tons of durum). This is unacceptable. It is 
far past time to send a clear and unmistakable message to our friends 
in Canada that the U.S. will not tolerate these practices any longer--
that we will fight back.
  The legislation I am introducing today will do exactly that. My 
legislation would require USDA to use the Export Enhancement Program--
EEP--in either of two circumstances.
  First, if imports of durum or wheat into the U.S. from Canada exceed 
the limits set in the MOU--300,000 tons for durum and 1,500,000 tons 
for total wheat imports--USDA would be required to use EEP to export 
wheat or durum into markets where we compete with Canada in a quantity 
equal to at least twice the total amount of Canadian imports into the 
U.S. for that year.
  This will clearly tell Canada that it will lose far more in its 
overseas markets than it gains in our markets if it persists in 
exporting more than the MOU levels. As a result, I expect that Canada 
will again voluntarily comply with the MOU limits as it did in 1995-96 
and 1996-97. Even if Canada does not comply, though, this legislation 
will ensure that U.S. farmers do not bear the costs of Canadian 
imports. By requiring the U.S. to export twice as much wheat as we are 
importing from Canada, this legislation will ensure that total supply 
will be reduced and prices will strengthen.
  Second, if the Secretary of Agriculture determines that a state 
trading enterprise (STE) like the Canadian Wheat Board is using unfair 
trade practices to reduce our exports of any agricultural commodity to 
overseas markets, the Secretary is required to respond by using EEP in 
an amount sufficient to ensure that prices received by U.S. farmers are 
not reduced as a result of the STE's actions. Too often, we have heard 
from our industry and our USDA officials that Canada is arbitrarily 
undercutting U.S. prices in overseas markets. My proposal would require 
USDA to respond, to ensure that we do not give up our export markets 
without a fight.
  Taken together, these two provisions will support the efforts of our 
trade negotiators to discipline STES as part of the World Trade 
Organization (WTO) negotiations on agriculture. Disciplining STEs is a 
top priority for our negotiators, and this legislation, by defining the 
marketing practices of STEs as unfair trade practices, will increase 
our negotiators' leverage to develop meaningful rules on STEs.
  Moreover, I believe these provisions will support the efforts of 
North Dakota farmers, acting through the Wheat Commission, in bringing 
a trade

[[Page 15999]]

case against Canada. I have always believed that, ultimately, Canadian 
agricultural trade issues will have to be resolved through negotiation. 
It is my hope that, in combination, this legislation and the trade case 
will provide short term relief for our farmers and help build 
sufficient pressure on Canada to negotiate a permanent resolution of 
Canadian grain issues.
  I have no doubt that our friends to the north will not like this 
legislation. They do not like having a spotlight focused on their 
system, so they will complain about our use of EEP. I have a simple 
answer for them: If they do not want us to use EEP against them, they 
should stop dumping their grain into our market and stop using unfair 
trade practices in overseas markets.
  I am pleased that this legislation has the support of every major 
farm group in North Dakota with an interest in these issues, including 
North Dakota Farmers Union, North Dakota Farm Bureau, North Dakota 
Wheat Commission, North Dakota Grain Growers, and the North Dakota 
Barley Council.
  I hope that my colleagues will join me in supporting this important 
legislation.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Gramm):
  S. 2914. A bill to amend the National Housing Act to require partial 
rebates of FHA mortgage insurance premiums to certain mortgagors upon 
payment of their FHA-insured mortgages; to the Committee on Banking, 
Housing, and Urban Affairs.


                     homeowners rebate act of 2000

  Mr. ALLARD. Mr. President, today I am introducing legislation to 
reduce the Federal Housing Administration (FHA) homeownership tax. I am 
joined in this effort by Senator Gramm of Texas, the chairman of the 
Banking Committee. This legislation was introduced earlier in the month 
by Congressman Rick Lazio of New York. Congressman Lazio chairs the 
House Subcommittee on Housing and Community Opportunity.
  This homeownership tax comes in the form of excess premiums paid by 
those who have FHA insured mortgages on their properties. The FHA 
Mutual Mortgage Insurance Fund (MMI fund) collects mortgage insurance 
premiums in order to cover any losses to the government that result 
from FHA-insured mortgage defaults and to fund the administrative costs 
of the FHA program.
  FHA is an important program for first-time, low and moderate income, 
and minority homeowners. These families should not be overcharged in 
FHA premiums. Premiums in excess of an amount necessary to maintain an 
actuarially sound reserve ratio in the FHA Mutual Mortgage Insurance 
Fund can only be characterized as a tax on homeownership. The Congress 
has determined that a capital reserve ratio of 2 percent of the MMI 
fund's amortized insurance-in-force is necessary to ensure the safety 
and soundness of the MMI fund. According to the Department of Housing 
and Urban Development the FY 1999 capital reserve ratio is 3.66 percent 
and is estimated to rise to over 3.8 percent in FY 2000, nearly twice 
the reserve ratio mandated by Congress.
  The FHA single family mortgage program was designed to operate as a 
mutual insurance program where homeowners were granted rebates of 
excess premiums. This rebate program was suspended at the direction of 
Congress in 1990 when the MMI fund was in the red--with the intent that 
the payment of distributive shares or rebates would resume when the 
Fund was again financially sound. Since 1990 a number of steps have 
been taken to strengthen the FHA program. The premiums were increased 
(Congress mandated the addition of a risk-based annual premium to the 
one-time, up front premium), downpayment requirements were improved, 
oversight by HUD and the Congress was strengthened, and Congress 
mandated the minimum 2 percent capital reserve ratio. With a capital 
reserve ratio nearly twice that mandated by the Congress it is time to 
resume rebates and return the MMI program to its prior status as a 
mutual insurance fund. This legislation restores the rebates for 
mortgages insured for 7 years or more and paid off subsequent to the 
1990 rebate suspension.
  The legislatively mandated improvements in the FHA program have 
certainly been partially responsible for the strength of the MMI fund. 
But another major reason for this strength is the fact that we have 
experienced a near perfect economy in recent years. I recognize that 
this will not always be the case. We should therefore proceed carefully 
when we propose to lower or rebate premiums. This legislation takes the 
cautious approach of providing for rebates only when the reserve ratio 
is in excess of 3 percent, or 150 percent of the reserve level mandated 
by Congress. If the capital reserve ratio drops below 3 percent, the 
rebates will be suspended. The legislation also requires that the 
General Accounting Office evaluate the adequacy of the 2 percent 
capital reserve ratio for ensuring the safety and soundness of the MMI 
fund and make a recommendation to Congress regarding the most 
appropriate reserve ratio at which to trigger future premium rebates.
  I invite my colleagues to review this important legislation and join 
with me in reducing this tax on homeownership. By enacting this 
homeownership rebate we will continue to help make homeownership 
affordable for more and more Americans.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record following this statement.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2914

       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 ``Homeowners Rebate Act of 
     2000''.

     SEC. 2. PAYMENT OF DISTRIBUTIVE SHARES FROM MUTUAL MORTGAGE 
                   INSURANCE FUND RESERVES.

       (a) In General.--Section 205(c) of the National Housing Act 
     (12 U.S.C. 1711(c)) is amended to read as follows:
       ``(c) Distribution of Reserves.--Upon termination of an 
     insurance obligation of the Mutual Mortgage Insurance Fund by 
     payment of the mortgage insured thereunder, if the Secretary 
     determines (in accordance with subsection (e)) that there is 
     a surplus for distribution under this section to mortgagors, 
     the Participating Reserve Account shall be subject to 
     distribution as follows:
       ``(1) Required distribution.--In the case of a mortgage 
     paid after November 5, 1990, and insured for 7 years or more 
     before such termination, the Secretary shall distribute to 
     the mortgagor a share of such Account in such manner and 
     amount as the Secretary shall determine to be equitable and 
     in accordance with sound actuarial and accounting practice, 
     subject to paragraphs (3) and (4).
       ``(2) Discretionary distribution.--In the case of a 
     mortgage not described in paragraph (1), the Secretary is 
     authorized to distribute to the mortgagor a share of such 
     Account in such manner and amount as the Secretary shall 
     determine to be equitable and in accordance with sound 
     actuarial and accounting practice, subject to paragraphs (3) 
     and (4).
       ``(3) Limitation on amount.--In no event shall the amount 
     any such distributable share exceed the aggregate scheduled 
     annual premiums of the mortgagor to the year of termination 
     of the insurance.
       ``(4) Application requirement.--The Secretary shall not 
     distribute any share to an eligible mortgagor under this 
     subsection beginning on the date which is 6 years after the 
     date that the Secretary first transmitted written 
     notification of eligibility to the last known address of the 
     mortgagor, unless the mortgagor has applied in accordance 
     with procedures prescribed by the Secretary for payment of 
     the share within the 6-year period. The Secretary shall 
     transfer from the Participating Reserve Account to the 
     General Surplus Account any amounts that, pursuant to the 
     preceding sentence, are no longer eligible for 
     distribution.''.
       (b) Determination of Surplus.--
       (1) In general.--Section 205(e) of the National Housing Act 
     (12 U.S.C. 1711(e)) is amended by adding at the end the 
     following: ``Notwithstanding any other provision of this 
     section, if, at the time of such a determination, the capital 
     ratio (as defined in subsection (f)) for the Fund is 3.0 
     percent or greater, the Secretary shall determine that there 
     is a surplus for distribution under this section to 
     mortgagors.''.
       (2) GAO report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall submit a 
     report to the Congress that evaluates the adequacy of the 
     capital ratio requirement under section 205(f)(2) of the 
     National Housing Act (12

[[Page 16000]]

     U.S.C. 1711(f)(2)) for ensuring the safety and soundness of 
     the Mutual Mortgage Insurance Fund. Such report shall also 
     evaluate the adequacy of the capital ratio level established 
     under section 205(e)(1) of the National Housing Act, as 
     amended by paragraph (1) of this section and shall include a 
     recommendation of a capital ratio level that, if made 
     effective under such section upon the expiration of the 2-
     year period beginning on the date of enactment of this Act, 
     would provide for distributions of shares under section 
     205(c) of such Act in a manner adequate to ensure the safety 
     and soundness of such Fund.
       (c) Retroactive Payments.--
       (1) Timing.--Not later than 3 months after the date of 
     enactment of this Act, the Secretary of Housing and Urban 
     Development shall determine the amount of each distributable 
     share for each mortgage described in paragraph (2) to be paid 
     and shall make payment of such share.
       (2) Mortgages covered.--A mortgage described in this 
     paragraph is a mortgage for which--
       (A) the insurance obligation of the Mutual Mortgage 
     Insurance Fund was terminated by payment of the mortgage 
     before the date of enactment of this Act;
       (B) a distributable share is required to be paid to the 
     mortgagor under section 205(c)(1) of the National Housing Act 
     (12 U.S.C. 1711(c)(1)), as amended by subsection (a) of this 
     section; and
       (C) no distributable share was paid pursuant to section 
     205(c) of the National Housing Act upon termination of the 
     insurance obligation of such Fund.
                                 ______
                                 
      By Mr. GRASSLEY: (for himself and Mr. Torricelli):
  S. 2915. A bill to make improvements in the operation and 
administration of the Federal courts, and for other purposes; to the 
Committee on the Judiciary.


               THE FEDERAL COURTS IMPROVEMENT ACT OF 2000

  Mr. GRASSLEY. Mr. President, I am introducing a bill today entitled 
the ``Federal Courts Improvement Act of 2000.'' Every few years, the 
Judicial Conference, the governing body of the federal courts, contacts 
Congress regarding changes to the law the Judicial Conference believes 
are necessary to improve the functions of the courts. As chairman of 
the Judiciary Subcommittee with jurisdiction over the courts, I have 
the responsibility to review the operation of the federal court process 
and procedures. In the past, I have also been in the forefront of 
advocating that the federal judicial system be administered in the most 
efficient and cost-effective manner possible while maintaining a high 
level of quality in the administration of justice. The bill I am 
introducing, along with Senator Torricelli, the Ranking Member of my 
subcommittee, is a consensus bill that includes many of the 
recommendations made by the Judicial Conference.
  The Judicial Conference has noted a problem that continues to plague 
the Federal judicial system is the lack of up-to-date technologies that 
would reduce costs while at the same time improve the efficiency of its 
administration along with a wide range of judicial branch programs. The 
``Federal Courts Improvement Act of 2000'' attempts to addresses this 
problem. In accordance with federal policy to defray the cost of 
providing services by assessing a fee for their use, sections of this 
bill provide the judiciary with the authority to set, collect, and 
retain fees to be used to acquire information technologies, such as 
electronic filing, video conferencing, and electronic evidence 
presentation devices. This section requires that the fees collected are 
to be deposited into the Judiciary Information Technology Fund and used 
for reinvestment in information technology. I feel that granting the 
judiciary the authority to collect and retain these fees will go a long 
way toward improving the efficiency of the judicial system while 
providing substantial savings for litigants and attorneys.
  This bill addresses two areas in which I have taken a personal 
interest, over the years: reducing unnecessary expenses and improving 
the efficiency of the judicial system. This bill would help achieve 
both. Traditionally, the safeguards applicable to criminal defendants 
charged with more serious crimes have not been applicable to petty 
offense cases because the burdens were deemed undesirable and 
impractical in dealing with such minor offenses. Currently, U.S. 
Magistrate Judges may preside over petty offense cases charging a motor 
vehicle offense and infractions, without the consent of the defendant. 
This bill removes the consent requirement in all other petty cases--a 
position repeatedly supported by the Judicial Conference of the United 
States. Additionally, this bill authorizes magistrate judges to try 
misdemeanor cases involving juveniles currently tried in district 
court. Removing the consent requirement from these petty offense cases 
and authorizing magistrate judges to preside over all juvenile 
misdemeanors would free-up valuable district court resources that could 
be used to deal with more serious crimes and offenders while reducing 
the time and expense necessary in dealing with these offenses.
  Another section of the bill also contains provisions that would free 
up district court resources and allow federal judges more time to deal 
with their civil and criminal dockets. These provisions raise the 
maximum compensation level paid to federal or community defenders 
representing defendants appearing before United States magistrates or 
the district courts before they must seek a waiver for payment in 
excess of the prescribed maximum. Payment in excess of the maximum 
currently requires the approval of both the judge who presided over the 
case and the chief judge of the circuit. This procedure in turn 
increases the amount of time judges must devote to non-judicial 
matters. The last increase was instituted fourteen years ago. During 
this time, the effects of inflation have significantly eroded the 
compensation paid to federal and community defenders.
  The Judicial Conference has expressed to me their concern over a 
growing trend of ``Criminal Justice Act'' (CJA) panel attorneys being 
subject to unfounded suits by the defendants they previously 
represented and the financial damage these attorneys have to deal with 
when they must pay to defend themselves in these actions. These unfair 
costs have the potential of having a chilling effect on the willingness 
of attorneys to participate as panel attorneys and will only make it 
more difficult to obtain adequate representation for defendants. 
Currently, the CJA authorizes the Director of the Administrative Office 
of the United States Courts to provide representation and indemnify 
federal and community defender organizations for malpractice claims 
that arise as a result of furnishing representational services. Panel 
attorneys are the only component of the appointed counsel program who 
are not permitted to receive CJA-funded coverage for any costs 
associated with defending against a malpractice claim by a CJA client. 
Our bill rectifies this oversight in the CJA, and provides CJA panel 
attorneys the same protection as other federal defenders. Provisions in 
our bill authorize the judge who presides over a case, at his 
discretion, to reimburse panel attorneys for out-of-pocket expenses for 
civil claims arising for their CJA services. The judge would exercise 
his discretion limiting the amount of reimbursement available for a 
panel attorney as he views appropriate under the circumstances, as has 
been the practice with respect to malpractice claims against other 
federal defenders.
  In addition, the ``Federal Courts Improvement Act of 2000'' also 
contains provisions designed to assist handicapped employees working 
for the federal judiciary. These provisions bring the federal judicial 
system in-line with the Executive Branch and other governmental bodies.
  The bill also contains a number of other provisions that we believe 
are necessary to improve the Federal Courts' administration, judicial 
process and matters relating to public defenders, as well as other 
items that enhance the operation of the Federal judiciary. I urge my 
colleagues to join us and support these improvements to our Federal 
Court system.
                                 ______
                                 
      By Mr. DODD:
  S. 2916. A bill to amend the Harmonized Tariff Schedule of the United 
States to provide separate subheadings for hair clippers used for 
animals; to the Committee on Finance.

[[Page 16001]]




           tariff classification correction for hair clippers

  Mr. DODD. Mr. President, today I am introducing a bill that would 
amend the Harmonized Tariff Schedule to allow for a separate subheading 
for hair clippers used for animals.
  As a result of the ongoing beef hormone dispute with the European 
Union (EU), the United States Trade Representative has released a list 
of products upon which retaliatory duties of 100 percent will be 
placed. The proposed list was issued pursuant to Section 407 of the 
Trade and Development Act of 2000. Furthermore, Section 407 explicitly 
states that the products on this list must be goods of industries that 
are affected by the EU's non-compliance in the beef hormone dispute.
  Since beard trimmers used by humans and hair clippers for animals for 
use on the farm are both currently included under the same subheading 
within the Harmonized Tariff Schedule, human beard trimmers could 
potentially be subject to the retaliatory duties. However, the personal 
care industry, and specifically human beard trimmers, has no 
relationship with the beef hormone industry as is required by Section 
407.
  To address this problem, and to ensure that products are not 
inadvertently subjected to these retaliatory tariffs, I am introducing 
legislation that would provide a separate subheading to clippers used 
for animals. This legislation would prevent imposing duties on products 
that have no significant bearing or connection to the EU beef hormone 
case and would assist in the fair and equitable application of our 
trade laws. I urge my colleagues to support enactment of this simple 
clarification of our tariff schedule.
                                 ______
                                 
      By Mr. DOMENICI (for himself and Mr. Inouye):
  S. 2917. A bill to settle the land claims of the Pueblo of Santo 
Domingo; to the Committee on Indian Affairs.


           SANTO DOMINGO PUEBLO CLAIMS SETTLEMENT ACT OF 2000

  Mr. DOMENICI. Mr. President, Santo Domingo Pueblo is one of the 
largest Indian pueblos in New Mexico. It is located north of 
Albuquerque and South of Santa Fe, about midway between the two. For 
about 150 years, some 80,000 acres have been in dispute with 
neighboring Indian pueblos, Spanish land grants, and private land 
holders. Many of these disputes have been in court, but remain 
unsettled.
  I am pleased to inform my colleagues that three years of negotiations 
have produced a settlement agreement. Our legislation would ratify that 
agreement, thus resolving a complex land ownership situation in New 
Mexico.
  The initial Spanish land grant establishing the Santo Domingo Pueblo 
Grant was issued in 1689. When this Spanish grant was surveyed in the 
mid-19th century, approximately 24,000 acres of land to the east of the 
current reservation boundary were erroneously excluded. The excluded 
lands are now held in private deeds and public lands, but not by Santo 
Domingo Pueblo.
  The Pueblo of Santo Domingo purchased the Diego Gallegos Spanish Land 
Grant to expand its reservation on the west end. That purchase excluded 
some privately held lands and overlapped with both the San Felipe and 
Cochiti Pueblos.
  Forest Service and Bureau of Land Management (BLM) lands have also 
been claimed by Santo Domingo Pueblo.
  The global settlement we are endorsing, resolves the complex set of 
title disputes between Santo Domingo, the Pueblos of San Felipe and 
Cochiti, the federal government, and private land holders.
  In return for both money and land, the Santo Domingo Pueblo will 
waive their land claims and remove the clouded title for private land 
holders. This settlement envisions a monetary settlement of $23 
million. Of that amount, $8 million would be payable from the Judgment 
Fund. The remaining $15 million would be from appropriated accounts 
over a three year period at $5 million per year, beginning in FY 2002.
  Approximately 4500 acres of BLM land would be conveyed to Santo 
Domingo Pueblo, and the Pueblo would have an option to purchase 7000 
acres of Forest Service land for the agreed upon price of $3.7 million.
  Three lawsuits will be settled by this legislation. The first is 
Pueblo of Santo Domingo v. United States. This case is over 50 years 
old and was filed under the Indian Claims Commission Act (ICCA). In 
this action, the Pueblo asserts monetary claims against the United 
States for trespass, lost use, and breach of the ICCA's ``fair and 
honorable dealings'' provision by the United States. The Pueblo's 
claims, based on its Spanish land grants, involve more than 80,000 
acres of land. Our legislation affirms the compromise award of $8 
million for these claims and also includes the Pueblo's stipulated 
settlement of the ICCA case.
  The second lawsuit is Pueblo of Santo Domingo v. Rael. This issue 
stems from the Pueblo's purchase of the Diego Gallegos Grant. The 
Pueblo sought possession of land from a private landowner in the same 
grant. The Federal District court for the District of New Mexico 
entered judgment for the Pueblo. On appeal, the Tenth Circuit ordered 
the Rael action held in abeyance until the Government intervened in 
Rael or judgment was entered in the overlapping ICCA case. To date, 
neither has occurred. The settlement legislation will resolve the 
issues in the Rael case.
  The third lawsuit to be settled by this legislation is United States 
v. Thompson. In this case, the United States sought to enforce the 
Pueblo's title against third-party owners who trace their titles to 
overlapping land grants. In 1991, the Tenth Circuit held that the 
United States' claim for the Pueblo was time-barred. The Court of 
Appeals, however, found that the Pueblo Lands Board had ignored an 
express Congressional directive in its determination that the overlap 
lands were not the Pueblo's lands.
  The Court of Appeals did not resolve the ownership question, again 
due to the time bar. These overlap lands are currently in the 
possession of non-Indians and in the Army Corps of Engineers. This 
global settlement will resolve the ownership questions in favor of the 
private landowners and the Army Corps of Engineers in the overlap area.
  The global nature of this settlement will put all these issues to 
rest. Assuming the Congress agrees with our legislation, the next step 
would be entry of the stipulated settlement of the ICCA case and 
dismissal with prejudice of the Pueblo's existing quiet title action in 
Rael. The Pueblo of Santo Domingo would then receive both the money and 
the lands agreed to in this settlement agreement. In addition to 
waiving its ICCA claims and the Rael case, the Pueblo agrees to waive 
other existing land claims.
  In this settlement agreement, the Congress would ratify and resolve 
the Pueblo's land claims with finality and do so in a principled way 
which serves the interests of all parties. The Pueblo of Santo Domingo 
boundaries have been in dispute since the mid-19th century. This 
settlement resolves the Pueblo of Santo Domingo claims once and for 
all, and clearly delineates the Pueblo's boundaries. I urge my 
colleagues to support this legislation.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself, Mr. Daschle, Mr. Kennedy, Mr. 
        Harkin, Mr. Sarbanes, and Mr. Lautenberg):
  S. 2918. A bill to amend title XVIII of the Social Security Act and 
the Employee Retirement Income Security Act of 1974 to improve access 
to health insurance and Medicare benefits for individuals ages 55 to 65 
to be fully funded through premiums and anti-fraud provisions, to amend 
the Internal Revenue Code of 1986 to allow a credit against income tax 
for payment of such premiums and of premiums for certain COBRA 
continuation coverage, and for other purposes; to the Committee on 
Finance.


            medicare early access and tax credit act of 2000

  Mr. ROCKEFELLER. Mr. President, I ask unanimous consent that the text 
of the bill, the Medicare Early Access and Tax Credit Act of 2000, be 
printed in the Record.

[[Page 16002]]



                                S. 2918

       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 ``Medicare 
     Early Access and Tax Credit Act of 2000''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.

TITLE I--ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF 
                                  AGE

Sec. 101. Access to Medicare benefits for individuals 62-to-65 years of 
              age.

 ``Part D--Purchase of Medicare Benefits by Certain Individuals Age 62-
                           to-65 Years of Age

``Sec. 1859. Program benefits; eligibility.
``Sec. 1859A. Enrollment process; coverage.
``Sec. 1859B. Premiums.
``Sec. 1859C. Payment of premiums.
``Sec. 1859D. Medicare Early Access Trust Fund.
``Sec. 1859E. Oversight and accountability.
``Sec. 1859F. Administration and miscellaneous.

 TITLE II--ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 
                              YEARS OF AGE

Sec. 201. Access to Medicare benefits for displaced workers 55-to-62 
              years of age.

             TITLE III--COBRA PROTECTION FOR EARLY RETIREES

 Subtitle A--Amendments to the Employee Retirement Income Security Act 
                                of 1974

Sec. 301. COBRA continuation benefits for certain retired workers who 
              lose retiree health coverage.

        Subtitle B--Amendments to the Public Health Service Act

Sec. 311. COBRA continuation benefits for certain retired workers who 
              lose retiree health coverage.

      Subtitle C--Amendments to the Internal Revenue Code of 1986

Sec. 321. COBRA continuation benefits for certain retired workers who 
              lose retiree health coverage.

                          TITLE IV--FINANCING

Sec. 401. Reference to financing provisions.

TITLE V--CREDIT AGAINST INCOME TAX FOR MEDICARE BUY-IN PREMIUMS AND FOR 
              CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS

Sec. 501. Credit for medicare buy-in premiums and for certain COBRA 
              continuation coverage premiums.

TITLE I--ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF 
                                  AGE

     SEC. 101. ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-
                   65 YEARS OF AGE.

       (a) In General.--Title XVIII of the Social Security Act is 
     amended--
       (1) by redesignating section 1859 and part D as section 
     1858 and part E, respectively; and
       (2) by inserting after such section the following new part:

 ``Part D--Purchase of Medicare Benefits by Certain Individuals Age 62-
                           to-65 Years of Age

     ``SEC. 1859. PROGRAM BENEFITS; ELIGIBILITY.

       ``(a) Entitlement to Medicare Benefits For Enrolled 
     Individuals.--
       ``(1) In general.--An individual enrolled under this part 
     is entitled to the same benefits under this title as an 
     individual entitled to benefits under part A and enrolled 
     under part B.
       ``(2) Definitions.--For purposes of this part:
       ``(A) Federal or state cobra continuation provision.--The 
     term `Federal or State COBRA continuation provision' has the 
     meaning given the term `COBRA continuation provision' in 
     section 2791(d)(4) of the Public Health Service Act and 
     includes a comparable State program, as determined by the 
     Secretary.
       ``(B) Federal health insurance program defined.--The term 
     `Federal health insurance program' means any of the 
     following:
       ``(i) Medicare.--Part A or part B of this title (other than 
     by reason of this part).
       ``(ii) Medicaid.--A State plan under title XIX.
       ``(iii) FEHBP.--The Federal employees health benefit 
     program under chapter 89 of title 5, United States Code.
       ``(iv) TRICARE.--The TRICARE program (as defined in section 
     1072(7) of title 10, United States Code).
       ``(v) Active duty military.--Health benefits under title 
     10, United States Code, to an individual as a member of the 
     uniformed services of the United States.
       ``(C) Group health plan.--The term `group health plan' has 
     the meaning given such term in section 2791(a)(1) of the 
     Public Health Service Act.
       ``(b) Eligibility of Individuals Age 62-to-65 Years of 
     Age.--
       ``(1) In general.--Subject to paragraph (2), an individual 
     who meets the following requirements with respect to a month 
     is eligible to enroll under this part with respect to such 
     month:
       ``(A) Age.--As of the last day of the month, the individual 
     has attained 62 years of age, but has not attained 65 years 
     of age.
       ``(B) Medicare eligibility (but for age).--The individual 
     would be eligible for benefits under part A or part B for the 
     month if the individual were 65 years of age.
       ``(C) Not eligible for coverage under group health plans or 
     federal health insurance programs.--The individual is not 
     eligible for benefits or coverage under a Federal health 
     insurance program (as defined in subsection (a)(2)(B)) or 
     under a group health plan (other than such eligibility merely 
     through a Federal or State COBRA continuation provision) as 
     of the last day of the month involved.
       ``(2) Limitation on eligibility if terminated enrollment.--
     If an individual described in paragraph (1) enrolls under 
     this part and coverage of the individual is terminated under 
     section 1859A(d) (other than because of age), the individual 
     is not again eligible to enroll under this subsection unless 
     the following requirements are met:
       ``(A) New coverage under group health plan or federal 
     health insurance program.--After the date of termination of 
     coverage under such section, the individual obtains coverage 
     under a group health plan or under a Federal health insurance 
     program.
       ``(B) Subsequent loss of new coverage.--The individual 
     subsequently loses eligibility for the coverage described in 
     subparagraph (A) and exhausts any eligibility the individual 
     may subsequently have for coverage under a Federal or State 
     COBRA continuation provision.
       ``(3) Change in health plan eligibility does not affect 
     coverage.--In the case of an individual who is eligible for 
     and enrolls under this part under this subsection, the 
     individual's continued entitlement to benefits under this 
     part shall not be affected by the individual's subsequent 
     eligibility for benefits or coverage described in paragraph 
     (1)(C), or entitlement to such benefits or coverage.

     ``SEC. 1859A. ENROLLMENT PROCESS; COVERAGE.

       ``(a) In General.--An individual may enroll in the program 
     established under this part only in such manner and form as 
     may be prescribed by regulations, and only during an 
     enrollment period prescribed by the Secretary consistent with 
     the provisions of this section. Such regulations shall 
     provide a process under which--
       ``(1) individuals eligible to enroll as of a month are 
     permitted to pre-enroll during a prior month within an 
     enrollment period described in subsection (b); and
       ``(2) each individual seeking to enroll under section 
     1859(b) is notified, before enrolling, of the deferred 
     monthly premium amount the individual will be liable for 
     under section 1859C(b) upon attaining 65 years of age as 
     determined under section 1859B(c)(3).
       ``(b) Enrollment Periods.--
       ``(1) Individuals 62-to-65 years of age.--In the case of 
     individuals eligible to enroll under this part under section 
     1859(b)--
       ``(A) Initial enrollment period.--If the individual is 
     eligible to enroll under such section for January 2001, the 
     enrollment period shall begin on November 1, 2000, and shall 
     end on February 28, 2001. Any such enrollment before January 
     1, 2001, is conditioned upon compliance with the conditions 
     of eligibility for January 2001.
       ``(B) Subsequent periods.--If the individual is eligible to 
     enroll under such section for a month after January 2001, the 
     enrollment period shall begin on the first day of the second 
     month before the month in which the individual first is 
     eligible to so enroll and shall end four months later. Any 
     such enrollment before the first day of the third month of 
     such enrollment period is conditioned upon compliance with 
     the conditions of eligibility for such third month.
       ``(2) Authority to correct for government errors.--The 
     provisions of section 1837(h) apply with respect to 
     enrollment under this part in the same manner as they apply 
     to enrollment under part B.
       ``(c) Date Coverage Begins.--
       ``(1) In general.--The period during which an individual is 
     entitled to benefits under this part shall begin as follows, 
     but in no case earlier than January 1, 2001:
       ``(A) In the case of an individual who enrolls (including 
     pre-enrolls) before the month in which the individual 
     satisfies eligibility for enrollment under section 1859, the 
     first day of such month of eligibility.
       ``(B) In the case of an individual who enrolls during or 
     after the month in which the individual first satisfies 
     eligibility for enrollment under such section, the first day 
     of the following month.
       ``(2) Authority to provide for partial months of 
     coverage.--Under regulations, the Secretary may, in the 
     Secretary's discretion, provide for coverage periods that 
     include portions of a month in order to avoid lapses of 
     coverage.
       ``(3) Limitation on payments.--No payments may be made 
     under this title with respect to the expenses of an 
     individual enrolled under this part unless such expenses were 
     incurred by such individual during a period which, with 
     respect to the individual, is a coverage period under this 
     section.
       ``(d) Termination of Coverage.--

[[Page 16003]]

       ``(1) In general.--An individual's coverage period under 
     this part shall continue until the individual's enrollment 
     has been terminated at the earliest of the following:
       ``(A) General provisions.--
       ``(i) Notice.--The individual files notice (in a form and 
     manner prescribed by the Secretary) that the individual no 
     longer wishes to participate in the insurance program under 
     this part.
       ``(ii) Nonpayment of premiums.--The individual fails to 
     make payment of premiums required for enrollment under this 
     part.
       ``(iii) Medicare eligibility.--The individual becomes 
     entitled to benefits under part A or enrolled under part B 
     (other than by reason of this part).
       ``(B) Termination based on age.--The individual attains 65 
     years of age.
       ``(2) Effective date of termination.--
       ``(A) Notice.--The termination of a coverage period under 
     paragraph (1)(A)(i) shall take effect at the close of the 
     month following for which the notice is filed.
       ``(B) Nonpayment of premium.--The termination of a coverage 
     period under paragraph (1)(A)(ii) shall take effect on a date 
     determined under regulations, which may be determined so as 
     to provide a grace period in which overdue premiums may be 
     paid and coverage continued. The grace period determined 
     under the preceding sentence shall not exceed 60 days; except 
     that it may be extended for an additional 30 days in any case 
     where the Secretary determines that there was good cause for 
     failure to pay the overdue premiums within such 60-day 
     period.
       ``(C) Age or medicare eligibility.--The termination of a 
     coverage period under paragraph (1)(A)(iii) or (1)(B) shall 
     take effect as of the first day of the month in which the 
     individual attains 65 years of age or becomes entitled to 
     benefits under part A or enrolled for benefits under part B 
     (other than by reason of this part).

     ``SEC. 1859B. PREMIUMS.

       ``(a) Amount of Monthly Premiums.--
       ``(1) Base monthly premiums.--The Secretary shall, during 
     September of each year (beginning with 1998), determine the 
     following premium rates which shall apply with respect to 
     coverage provided under this title for any month in the 
     succeeding year:
       ``(A) Base monthly premium for individuals 62 years of age 
     or older.--A base monthly premium for individuals 62 years of 
     age or older, equal to \1/12\ of the base annual premium rate 
     computed under subsection (b) for each premium area.
       ``(2) Deferred monthly premiums for individuals 62 years of 
     age or older.--The Secretary shall, during September of each 
     year (beginning with 1998), determine under subsection (c) 
     the amount of deferred monthly premiums that shall apply with 
     respect to individuals who first obtain coverage under this 
     part under section 1859(b) in the succeeding year.
       ``(3) Establishment of premium areas.--For purposes of this 
     part, the term `premium area' means such an area as the 
     Secretary shall specify to carry out this part. The Secretary 
     from time to time may change the boundaries of such premium 
     areas. The Secretary shall seek to minimize the number of 
     such areas specified under this paragraph.
       ``(b) Base Annual Premium for Individuals 62 Years of Age 
     or Older.--
       ``(1) National, per capita average.--The Secretary shall 
     estimate the average, annual per capita amount that would be 
     payable under this title with respect to individuals residing 
     in the United States who meet the requirement of section 
     1859(b)(1)(A) as if all such individuals were eligible for 
     (and enrolled) under this title during the entire year (and 
     assuming that section 1862(b)(2)(A)(i) did not apply).
       ``(2) Geographic adjustment.--The Secretary shall adjust 
     the amount determined under paragraph (1) for each premium 
     area (specified under subsection (a)(3)) in order to take 
     into account such factors as the Secretary deems appropriate 
     and shall limit the maximum premium under this paragraph in a 
     premium area to assure participation in all areas throughout 
     the United States.
       ``(3) Base annual premium.--The base annual premium under 
     this subsection for months in a year for individuals 62 years 
     of age or older residing in a premium area is equal to the 
     average, annual per capita amount estimated under paragraph 
     (1) for the year, adjusted for such area under paragraph (2).
       ``(c) Deferred Premium Rate for Individuals 62 Years of Age 
     or Older.--The deferred premium rate for individuals with a 
     group of individuals who obtain coverage under section 
     1859(b) in a year shall be computed by the Secretary as 
     follows:
       ``(1) Estimation of national, per capita annual average 
     expenditures for enrollment group.--The Secretary shall 
     estimate the average, per capita annual amount that will be 
     paid under this part for individuals in such group during the 
     period of enrollment under section 1859(b). In making such 
     estimate for coverage beginning in a year before 2004, the 
     Secretary may base such estimate on the average, per capita 
     amount that would be payable if the program had been in 
     operation over a previous period of at least 4 years.
       ``(2) Difference between estimated expenditures and 
     estimated premiums.--Based on the characteristics of 
     individuals in such group, the Secretary shall estimate 
     during the period of coverage of the group under this part 
     under section 1859(b) the amount by which--
       ``(A) the amount estimated under paragraph (1); exceeds
       ``(B) the average, annual per capita amount of premiums 
     that will be payable for months during the year under section 
     1859C(a) for individuals in such group (including premiums 
     that would be payable if there were no terminations in 
     enrollment under clause (i) or (ii) of section 
     1859A(d)(1)(A)).
       ``(3) Actuarial computation of deferred monthly premium 
     rates.--The Secretary shall determine deferred monthly 
     premium rates for individuals in such group in a manner so 
     that--
       ``(A) the estimated actuarial value of such premiums 
     payable under section 1859C(b), is equal to
       ``(B) the estimated actuarial present value of the 
     differences described in paragraph (2).
     Such rate shall be computed for each individual in the group 
     in a manner so that the rate is based on the number of months 
     between the first month of coverage based on enrollment under 
     section 1859(b) and the month in which the individual attains 
     65 years of age.
       ``(4) Determinants of actuarial present values.--The 
     actuarial present values described in paragraph (3) shall 
     reflect--
       ``(A) the estimated probabilities of survival at ages 62 
     through 84 for individuals enrolled during the year; and
       ``(B) the estimated effective average interest rates that 
     would be earned on investments held in the trust funds under 
     this title during the period in question.

     ``SEC. 1859C. PAYMENT OF PREMIUMS.

       ``(a) Payment of Base Monthly Premium.--
       ``(1) In general.--The Secretary shall provide for payment 
     and collection of the base monthly premium, determined under 
     section 1859B(a)(1) for the age (and age cohort, if 
     applicable) of the individual involved and the premium area 
     in which the individual principally resides, in the same 
     manner as for payment of monthly premiums under section 1840, 
     except that, for purposes of applying this section, any 
     reference in such section to the Federal Supplementary 
     Medical Insurance Trust Fund is deemed a reference to the 
     Trust Fund established under section 1859D.
       ``(2) Period of payment.--In the case of an individual who 
     participates in the program established by this title, the 
     base monthly premium shall be payable for the period 
     commencing with the first month of the individual's coverage 
     period and ending with the month in which the individual's 
     coverage under this title terminates.
       ``(b) Payment of Deferred Premium for Individuals Covered 
     After Attaining Age 62.--
       ``(1) Rate of payment.--
       ``(A) In general.--In the case of an individual who is 
     covered under this part for a month pursuant to an enrollment 
     under section 1859(b), subject to subparagraph (B), the 
     individual is liable for payment of a deferred premium in 
     each month during the period described in paragraph (2) in an 
     amount equal to the full deferred monthly premium rate 
     determined for the individual under section 1859B(c).
       ``(B) Special rules for those who disenroll early.--
       ``(i) In general.--If such an individual's enrollment under 
     such section is terminated under clause (i) or (ii) of 
     section 1859A(d)(1)(A), subject to clause (ii), the amount of 
     the deferred premium otherwise established under this 
     paragraph shall be pro-rated to reflect the number of months 
     of coverage under this part under such enrollment compared to 
     the maximum number of months of coverage that the individual 
     would have had if the enrollment were not so terminated.
       ``(ii) Rounding to 12-month minimum coverage periods.--In 
     applying clause (i), the number of months of coverage (if not 
     a multiple of 12) shall be rounded to the next highest 
     multiple of 12 months, except that in no case shall this 
     clause result in a number of months of coverage exceeding the 
     maximum number of months of coverage that the individual 
     would have had if the enrollment were not so terminated.
       ``(2) Period of payment.--The period described in this 
     paragraph for an individual is the period beginning with the 
     first month in which the individual has attained 65 years of 
     age and ending with the month before the month in which the 
     individual attains 85 years of age.
       ``(3) Collection.--In the case of an individual who is 
     liable for a premium under this subsection, the amount of the 
     premium shall be collected in the same manner as the premium 
     for enrollment under such part is collected under section 
     1840, except that any reference in such section to the 
     Federal Supplementary Medical Insurance Trust Fund is deemed 
     to be a reference to the Medicare Early Access Trust Fund 
     established under section 1859D.
       ``(c) Application of Certain Provisions.--The provisions of 
     section 1840 (other than subsection (h)) shall apply to 
     premiums collected under this section in the same manner

[[Page 16004]]

     as they apply to premiums collected under part B, except that 
     any reference in such section to the Federal Supplementary 
     Medical Insurance Trust Fund is deemed a reference to the 
     Trust Fund established under section 1859D.

     ``SEC. 1859D. MEDICARE EARLY ACCESS TRUST FUND.

       ``(a) Establishment of Trust Fund.--
       ``(1) In general.--There is hereby created on the books of 
     the Treasury of the United States a trust fund to be known as 
     the `Medicare Early Access Trust Fund' (in this section 
     referred to as the `Trust Fund'). The Trust Fund shall 
     consist of such gifts and bequests as may be made as provided 
     in section 201(i)(1) and such amounts as may be deposited in, 
     or appropriated to, such fund as provided in this title.
       ``(2) Premiums.--Premiums collected under section 1859B 
     shall be transferred to the Trust Fund.
       ``(3) Transfer of savings from new fraud and abuse 
     initiatives.--
       ``(A) In general.--There is hereby transferred to the Trust 
     Fund from the Federal Hospital Insurance Trust Fund and from 
     the Federal Supplementary Medical Insurance Trust Fund 
     amounts equivalent to the amounts (specified under 
     subparagraph (B)) of the reductions in expenditures under 
     such respective trust fund as may be attributable to the 
     enactment of the Medicare Fraud and Reimbursement Reform Act 
     of 1999 (H.R. 2229).
       ``(B) Use of cbo estimates.--For each fiscal year during 
     the 10-fiscal-year period beginning with fiscal year 2001, 
     the amounts under subparagraph (A) shall be the amounts 
     described in such subparagraph as determined by the 
     Congressional Budget Office at the time of, and in connection 
     with, the enactment of the Medicare Early Access and Tax 
     Credit Act of 2000. For subsequent fiscal years, the amounts 
     under subparagraph (A) shall be the amount determined under 
     this subparagraph for the previous fiscal year increased by 
     the same percentage as the percentage increase in aggregate 
     expenditures under this title from the second previous fiscal 
     year to the previous fiscal year.
       ``(b) Incorporation of Provisions.--
       ``(1) In general.--Subject to paragraph (2), subsections 
     (b) through (i) of section 1841 shall apply with respect to 
     the Trust Fund and this title in the same manner as they 
     apply with respect to the Federal Supplementary Medical 
     Insurance Trust Fund and part B, respectively.
       ``(2) Miscellaneous references.--In applying provisions of 
     section 1841 under paragraph (1)--
       ``(A) any reference in such section to `this part' is 
     construed to refer to this part D;
       ``(B) any reference in section 1841(h) to section 1840(d) 
     and in section 1841(i) to sections 1840(b)(1) and 1842(g) are 
     deemed references to comparable authority exercised under 
     this part; and
       ``(C) payments may be made under section 1841(g) to the 
     Trust Funds under sections 1817 and 1841 as reimbursement to 
     such funds for payments they made for benefits provided under 
     this part.

     ``SEC. 1859E. OVERSIGHT AND ACCOUNTABILITY.

       ``(a) Through Annual Reports of Trustees.--The Board of 
     Trustees of the Medicare Early Access Trust Fund under 
     section 1859D(b)(1) shall report on an annual basis to 
     Congress concerning the status of the Trust Fund and the need 
     for adjustments in the program under this part to maintain 
     financial solvency of the program under this part.
       ``(b) Periodic GAO Reports.--The Comptroller General of the 
     United States shall periodically submit to Congress reports 
     on the adequacy of the financing of coverage provided under 
     this part. The Comptroller General shall include in such 
     report such recommendations for adjustments in such financing 
     and coverage as the Comptroller General deems appropriate in 
     order to maintain financial solvency of the program under 
     this part.

     ``SEC. 1859F. ADMINISTRATION AND MISCELLANEOUS.

       ``(a) Treatment for Purposes of Title.--Except as otherwise 
     provided in this part--
       ``(1) individuals enrolled under this part shall be treated 
     for purposes of this title as though the individual were 
     entitled to benefits under part A and enrolled under part B; 
     and
       ``(2) benefits described in section 1859 shall be payable 
     under this title to such individuals in the same manner as if 
     such individuals were so entitled and enrolled.
       ``(b) Not Treated As Medicare Program for Purposes of 
     Medicaid Program.--For purposes of applying title XIX 
     (including the provision of medicare cost-sharing assistance 
     under such title), an individual who is enrolled under this 
     part shall not be treated as being entitled to benefits under 
     this title.
       ``(c) Not Treated As Medicare Program for Purposes of COBRA 
     Continuation Provisions.--In applying a COBRA continuation 
     provision (as defined in section 2791(d)(4) of the Public 
     Health Service Act), any reference to an entitlement to 
     benefits under this title shall not be construed to include 
     entitlement to benefits under this title pursuant to the 
     operation of this part.''.
       (b) Conforming Amendments to Social Security Act 
     Provisions.--
       (1) Section 201(i)(1) of the Social Security Act (42 U.S.C. 
     401(i)(1)) is amended by striking ``or the Federal 
     Supplementary Medical Insurance Trust Fund'' and inserting 
     ``the Federal Supplementary Medical Insurance Trust Fund, and 
     the Medicare Early Access Trust Fund''.
       (2) Section 201(g)(1)(A) of such Act (42 U.S.C. 
     401(g)(1)(A)) is amended by striking ``and the Federal 
     Supplementary Medical Insurance Trust Fund established by 
     title XVIII'' and inserting ``, the Federal Supplementary 
     Medical Insurance Trust Fund, and the Medicare Early Access 
     Trust Fund established by title XVIII''.
       (3) Section 1820(i) of such Act (42 U.S.C. 1395i-4(i)) is 
     amended by striking ``part D'' and inserting ``part E''.
       (4) Part C of title XVIII of such Act is amended--
       (A) in section 1851(a)(2)(B) (42 U.S.C. 1395w-21(a)(2)(B)), 
     by striking ``1859(b)(3)'' and inserting ``1858(b)(3)'';
       (B) in section 1851(a)(2)(C) (42 U.S.C. 1395w-21(a)(2)(C)), 
     by striking ``1859(b)(2)'' and inserting ``1858(b)(2)'';
       (C) in section 1852(a)(1) (42 U.S.C. 1395w-22(a)(1)), by 
     striking ``1859(b)(3)'' and inserting ``1858(b)(3)'';
       (D) in section 1852(a)(3)(B)(ii) (42 U.S.C. 1395w-
     22(a)(3)(B)(ii)), by striking ``1859(b)(2)(B)'' and inserting 
     ``1858(b)(2)(B)'';
       (E) in section 1853(a)(1)(A) (42 U.S.C. 1395w-23(a)(1)(A)), 
     by striking ``1859(e)(4)'' and inserting ``1858(e)(4)''; and
       (F) in section 1853(a)(3)(D) (42 U.S.C. 1395w-23(a)(3)(D)), 
     by striking ``1859(e)(4)'' and inserting ``1858(e)(4)''.
       (5) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is 
     amended--
       (A) in paragraph (1), by striking ``or (7)'' and inserting 
     ``, (7), or (8)'', and
       (B) by adding at the end the following:
       ``(8) Adjustment for early access.--In applying this 
     subsection with respect to individuals entitled to benefits 
     under part D, the Secretary shall provide for an appropriate 
     adjustment in the Medicare+Choice capitation rate as may be 
     appropriate to reflect differences between the population 
     served under such part and the population under parts A and 
     B.''.
       (c) Other Conforming Amendments.--
       (1) Section 138(b)(4) of the Internal Revenue Code of 1986 
     is amended by striking ``1859(b)(3)'' and inserting 
     ``1858(b)(3)''.
       (2)(A) Section 602(2)(D)(ii) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1162(2)) is amended by 
     inserting ``(not including an individual who is so entitled 
     pursuant to enrollment under section 1859A)'' after ``Social 
     Security Act''.
       (B) Section 2202(2)(D)(ii) of the Public Health Service Act 
     (42 U.S.C. 300bb-2(2)(D)(ii)) is amended by inserting ``(not 
     including an individual who is so entitled pursuant to 
     enrollment under section 1859A)'' after ``Social Security 
     Act''.
       (C) Section 4980B(f)(2)(B)(i)(V) of the Internal Revenue 
     Code of 1986 is amended by inserting ``(not including an 
     individual who is so entitled pursuant to enrollment under 
     section 1859A)'' after ``Social Security Act''.

 TITLE II--ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 
                              YEARS OF AGE

     SEC. 201. ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 
                   55-TO-62 YEARS OF AGE.

       (a) Eligibility.--Section 1859 of the Social Security Act, 
     as inserted by section 101(a)(2), is amended by adding at the 
     end the following new subsection:
       ``(c) Displaced Workers and Spouses.--
       ``(1) Displaced workers.--Subject to paragraph (3), an 
     individual who meets the following requirements with respect 
     to a month is eligible to enroll under this part with respect 
     to such month:
       ``(A) Age.--As of the last day of the month, the individual 
     has attained 55 years of age, but has not attained 62 years 
     of age.
       ``(B) Medicare eligibility (but for age).--The individual 
     would be eligible for benefits under part A or part B for the 
     month if the individual were 65 years of age.
       ``(C) Loss of employment-based coverage.--
       ``(i) Eligible for unemployment compensation.--The 
     individual meets the requirements relating to period of 
     covered employment and conditions of separation from 
     employment to be eligible for unemployment compensation (as 
     defined in section 85(b) of the Internal Revenue Code of 
     1986), based on a separation from employment occurring on or 
     after July 1, 2000. The previous sentence shall not be 
     construed as requiring the individual to be receiving such 
     unemployment compensation.
       ``(ii) Loss of employment-based coverage.--Immediately 
     before the time of such separation of employment, the 
     individual was covered under a group health plan on the basis 
     of such employment, and, because of such loss, is no longer 
     eligible for coverage under such plan (including such 
     eligibility based on the application of a Federal or State 
     COBRA continuation provision) as of the last day of the month 
     involved.
       ``(iii) Previous creditable coverage for at least 1 year.--
     As of the date on which the individual loses coverage 
     described in clause (ii), the aggregate of the periods of 
     creditable coverage (as determined under section 2701(c) of 
     the Public Health Service Act) is 12 months or longer.
       ``(D) Exhaustion of available cobra continuation 
     benefits.--

[[Page 16005]]

       ``(i) In general.--In the case of an individual described 
     in clause (ii) for a month described in clause (iii)--

       ``(I) the individual (or spouse) elected coverage described 
     in clause (ii); and
       ``(II) the individual (or spouse) has continued such 
     coverage for all months described in clause (iii) in which 
     the individual (or spouse) is eligible for such coverage.

       ``(ii) Individuals to whom cobra continuation coverage made 
     available.--An individual described in this clause is an 
     individual--

       ``(I) who was offered coverage under a Federal or State 
     COBRA continuation provision at the time of loss of coverage 
     eligibility described in subparagraph (C)(ii); or
       ``(II) whose spouse was offered such coverage in a manner 
     that permitted coverage of the individual at such time.

       ``(iii) Months of possible cobra continuation coverage.--A 
     month described in this clause is a month for which an 
     individual described in clause (ii) could have had coverage 
     described in such clause as of the last day of the month if 
     the individual (or the spouse of the individual, as the case 
     may be) had elected such coverage on a timely basis.
       ``(E) Not eligible for coverage under federal health 
     insurance program or group health plans.--The individual is 
     not eligible for benefits or coverage under a Federal health 
     insurance program or under a group health plan (whether on 
     the basis of the individual's employment or employment of the 
     individual's spouse) as of the last day of the month 
     involved.
       ``(2) Spouse of displaced worker.--Subject to paragraph 
     (3), an individual who meets the following requirements with 
     respect to a month is eligible to enroll under this part with 
     respect to such month:
       ``(A) Age.--As of the last day of the month, the individual 
     has not attained 62 years of age.
       ``(B) Married to displaced worker.--The individual is the 
     spouse of an individual at the time the individual enrolls 
     under this part under paragraph (1) and loses coverage 
     described in paragraph (1)(C)(ii) because the individual's 
     spouse lost such coverage.
       ``(C) Medicare eligibility (but for age); exhaustion of any 
     cobra continuation coverage; and not eligible for coverage 
     under federal health insurance program or group health 
     plan.--The individual meets the requirements of subparagraphs 
     (B), (D), and (E) of paragraph (1).
       ``(3) Change in health plan eligibility affects continued 
     eligibility.--For provision that terminates enrollment under 
     this section in the case of an individual who becomes 
     eligible for coverage under a group health plan or under a 
     Federal health insurance program, see section 1859A(d)(1)(C).
       ``(4) Reenrollment permitted.--Nothing in this subsection 
     shall be construed as preventing an individual who, after 
     enrolling under this subsection, terminates such enrollment 
     from subsequently reenrolling under this subsection if the 
     individual is eligible to enroll under this subsection at 
     that time.''.
       (b) Enrollment.--Section 1859A of such Act, as so inserted, 
     is amended--
       (1) in subsection (a), by striking ``and'' at the end of 
     paragraph (1), by striking the period at the end of paragraph 
     (2) and inserting ``; and'', and by adding at the end the 
     following new paragraph:
       ``(3) individuals whose coverage under this part would 
     terminate because of subsection (d)(1)(B)(ii) are provided 
     notice and an opportunity to continue enrollment in 
     accordance with section 1859E(c)(1).'';
       (2) in subsection (b), by inserting after Notwithstanding 
     any other provision of law, (1) the following:
       ``(2) Displaced workers and spouses.--In the case of 
     individuals eligible to enroll under this part under section 
     1859(c), the following rules apply:
       ``(A) Initial enrollment period.--If the individual is 
     first eligible to enroll under such section for January 2001, 
     the enrollment period shall begin on November 1, 2000, and 
     shall end on February 28, 2001. Any such enrollment before 
     January 1, 2001, is conditioned upon compliance with the 
     conditions of eligibility for January 2001.
       ``(B) Subsequent periods.--If the individual is eligible to 
     enroll under such section for a month after January 2001, the 
     enrollment period based on such eligibility shall begin on 
     the first day of the second month before the month in which 
     the individual first is eligible to so enroll (or reenroll) 
     and shall end four months later.'';
       (3) in subsection (d)(1), by amending subparagraph (B) to 
     read as follows:
       ``(B) Termination based on age.--
       ``(i) At age 65.--Subject to clause (ii), the individual 
     attains 65 years of age.
       ``(ii) At age 62 for displaced workers and spouses.--In the 
     case of an individual enrolled under this part pursuant to 
     section 1859(c), subject to subsection (a)(1), the individual 
     attains 62 years of age.'';
       (4) in subsection (d)(1), by adding at the end the 
     following new subparagraph:
       ``(C) Obtaining access to employment-based coverage or 
     federal health insurance program for individuals under 62 
     years of age.--In the case of an individual who has not 
     attained 62 years of age, the individual is covered (or 
     eligible for coverage) as a participant or beneficiary under 
     a group health plan or under a Federal health insurance 
     program.'';
       (5) in subsection (d)(2), by amending subparagraph (C) to 
     read as follows:
       ``(C) Age or medicare eligibility.--
       ``(i) In general.--The termination of a coverage period 
     under paragraph (1)(A)(iii) or (1)(B)(i) shall take effect as 
     of the first day of the month in which the individual attains 
     65 years of age or becomes entitled to benefits under part A 
     or enrolled for benefits under part B.
       ``(ii) Displaced workers.--The termination of a coverage 
     period under paragraph (1)(B)(ii) shall take effect as of the 
     first day of the month in which the individual attains 62 
     years of age, unless the individual has enrolled under this 
     part pursuant to section 1859(b) and section 1859E(c)(1).''; 
     and
       (6) in subsection (d)(2), by adding at the end the 
     following new subparagraph:
       ``(D) Access to coverage.--The termination of a coverage 
     period under paragraph (1)(C) shall take effect on the date 
     on which the individual is eligible to begin a period of 
     creditable coverage (as defined in section 2701(c) of the 
     Public Health Service Act) under a group health plan or under 
     a Federal health insurance program.''.
       (c) Premiums.--Section 1859B of such Act, as so inserted, 
     is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following:
       ``(B) Base monthly premium for individuals under 62 years 
     of age.--A base monthly premium for individuals under 62 
     years of age, equal to \1/12\ of the base annual premium rate 
     computed under subsection (d)(3) for each premium area and 
     age cohort.''; and
       (2) by adding at the end the following new subsection:
       ``(d) Base Monthly Premium for Individuals Under 62 Years 
     of Age.--
       ``(1) National, per capita average for age groups.--
       ``(A) Estimate of amount.--The Secretary shall estimate the 
     average, annual per capita amount that would be payable under 
     this title with respect to individuals residing in the United 
     States who meet the requirement of section 1859(c)(1)(A) 
     within each of the age cohorts established under subparagraph 
     (B) as if all such individuals within such cohort were 
     eligible for (and enrolled) under this title during the 
     entire year (and assuming that section 1862(b)(2)(A)(i) did 
     not apply).
       ``(B) Age cohorts.--For purposes of subparagraph (A), the 
     Secretary shall establish separate age cohorts in 5 year age 
     increments for individuals who have not attained 60 years of 
     ages and a separate cohort for individuals who have attained 
     60 years of age.
       ``(2) Geographic adjustment.--The Secretary shall adjust 
     the amount determined under paragraph (1)(A) for each premium 
     area (specified under subsection (a)(3)) in the same manner 
     and to the same extent as the Secretary provides for 
     adjustments under subsection (b)(2).
       ``(3) Base annual premium.--The base annual premium under 
     this subsection for months in a year for individuals in an 
     age cohort under paragraph (1)(B) in a premium area is equal 
     to 165 percent of the average, annual per capita amount 
     estimated under paragraph (1) for the age cohort and year, 
     adjusted for such area under paragraph (2).
       ``(4) Pro-ration of premiums to reflect coverage during a 
     part of a month.--If the Secretary provides for coverage of 
     portions of a month under section 1859A(c)(2), the Secretary 
     shall pro-rate the premiums attributable to such coverage 
     under this section to reflect the portion of the month so 
     covered.''.
       (d) Administrative Provisions.--Section 1859F of such Act, 
     as so inserted, is amended by adding at the end the 
     following:
       ``(d) Additional Administrative Provisions.--
       ``(1) Process for continued enrollment of displaced workers 
     who attain 62 years of age.--The Secretary shall provide a 
     process for the continuation of enrollment of individuals 
     whose enrollment under section 1859(c) would be terminated 
     upon attaining 62 years of age. Under such process such 
     individuals shall be provided appropriate and timely notice 
     before the date of such termination and of the requirement to 
     enroll under this part pursuant to section 1859(b) in order 
     to continue entitlement to benefits under this title after 
     attaining 62 years of age.
       ``(2) Arrangements with states for determinations relating 
     to unemployment compensation eligibility.--The Secretary may 
     provide for appropriate arrangements with States for the 
     determination of whether individuals in the State meet or 
     would meet the requirements of section 1859(c)(1)(C)(i).''.
       (e) Conforming Amendment to Heading to Part.--The heading 
     of part D of title XVIII of the Social Security Act, as so 
     inserted, is amended by striking ``62'' and inserting ``55''.

             TITLE III--COBRA PROTECTION FOR EARLY RETIREES

 Subtitle A--Amendments to the Employee Retirement Income Security Act 
                                of 1974

     SEC. 301. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 603 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1163) is amended by 
     inserting

[[Page 16006]]

     after paragraph (6) the following new paragraph:
       ``(7) The termination or substantial reduction in benefits 
     (as defined in section 607(7)) of group health plan coverage 
     as a result of plan changes or termination in the case of a 
     covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 607 of such Act (29 
     U.S.C. 1167) is amended--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     section 603(7), the term `qualified beneficiary' means a 
     qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(6) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     section 603(7), a covered employee who, at the time of the 
     event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(7) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary and with respect to a qualified beneficiary, a 
     reduction in the average actuarial value of benefits under 
     the plan (through reduction or elimination of benefits, an 
     increase in premiums, deductibles, copayments, and 
     coinsurance, or any combination thereof), since the date of 
     commencement of coverage of the beneficiary by reason of the 
     retirement of the covered employee (or, if later, January 6, 
     2000), in an amount equal to at least 50 percent of the total 
     average actuarial value of the benefits under the plan as of 
     such date (taking into account an appropriate adjustment to 
     permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of section 602(3).''.
       (b) Duration of Coverage Through Age 65.--Section 602(2)(A) 
     of such Act (29 U.S.C. 1162(2)(A)) is amended--
       (1) in clause (ii), by inserting ``or 603(7)'' after 
     ``603(6)'';
       (2) in clause (iv), by striking ``or 603(6)'' and inserting 
     ``, 603(6), or 603(7)'';
       (3) by redesignating clause (iv) as clause (vi);
       (4) by redesignating clause (v) as clause (iv) and by 
     moving such clause to immediately follow clause (iii); and
       (5) by inserting after such clause (iv) the following new 
     clause:
       ``(v) Special rule for certain dependents in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     section 603(7), in the case of a qualified beneficiary 
     described in section 607(3)(D) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(I) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(II) the date that is 36 months after the date of the 
     qualifying event.''.

       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 602(1) of such 
     Act (29 U.S.C. 1162(1)) is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the coverage''; and
       (2) by adding at the end the following:
       ``(B) Certain retirees.--In the case of a qualifying event 
     described in section 603(7), in applying the first sentence 
     of subparagraph (A) and the fourth sentence of paragraph (3), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary) 
     continued under the group health plan (or, if none, under the 
     most prevalent other plan offered by the same plan sponsor) 
     shall be treated as the coverage described in such sentence, 
     or (at the option of the plan and qualified beneficiary) such 
     other coverage option as may be offered and elected by the 
     qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 602(3) 
     of such Act (29 U.S.C. 1162(3)) is amended by adding at the 
     end the following new sentence: ``In the case of an 
     individual provided continuation coverage by reason of a 
     qualifying event described in section 603(7), any reference 
     in subparagraph (A) of this paragraph to `102 percent of the 
     applicable premium' is deemed a reference to `125 percent of 
     the applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in paragraph (1)(B)'.''.
       (e) Notice.--Section 606(a) of such Act (29 U.S.C. 1166) is 
     amended--
       (1) in paragraph (4)(A), by striking ``or (6)'' and 
     inserting ``(6), or (7)''; and
       (2) by adding at the end the following:

     ``The notice under paragraph (4) in the case of a qualifying 
     event described in section 603(7) shall be provided at least 
     90 days before the date of the qualifying event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after January 6, 2000. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

        Subtitle B--Amendments to the Public Health Service Act

     SEC. 311. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 2203 of the Public Health Service 
     Act (42 U.S.C. 300bb-3) is amended by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) The termination or substantial reduction in benefits 
     (as defined in section 2208(6)) of group health plan coverage 
     as a result of plan changes or termination in the case of a 
     covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 2208 of such Act (42 
     U.S.C. 300bb-8) is amended--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(C) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     section 2203(6), the term `qualified beneficiary' means a 
     qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     section 2203(6), a covered employee who, at the time of the 
     event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(6) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary of Labor and with respect to a qualified 
     beneficiary, a reduction in the average actuarial value of 
     benefits under the plan (through reduction or elimination of 
     benefits, an increase in premiums, deductibles, copayments, 
     and coinsurance, or any combination thereof), since the date 
     of commencement of coverage of the beneficiary by reason of 
     the retirement of the covered employee (or, if later, January 
     6, 2000), in an amount equal to at least 50 percent of the 
     total average actuarial value of the benefits under the plan 
     as of such date (taking into account an appropriate 
     adjustment to permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of section 2202(3).''.
       (b) Duration of Coverage Through Age 65.--Section 
     2202(2)(A) of such Act (42 U.S.C. 300bb-2(2)(A)) is amended--
       (1) by redesignating clause (iii) as clause (iv); and
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) Special rule for certain dependents in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     section 2203(6), in the case of a qualified beneficiary 
     described in section 2208(3)(C) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(I) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(II) the date that is 36 months after the date of the 
     qualifying event.''.

       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 2202(1) of 
     such Act (42 U.S.C. 300bb-2(1)) is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the coverage''; and
       (2) by adding at the end the following:

[[Page 16007]]

       ``(B) Certain retirees.--In the case of a qualifying event 
     described in section 2203(6), in applying the first sentence 
     of subparagraph (A) and the fourth sentence of paragraph (3), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary of 
     Labor) continued under the group health plan (or, if none, 
     under the most prevalent other plan offered by the same plan 
     sponsor) shall be treated as the coverage described in such 
     sentence, or (at the option of the plan and qualified 
     beneficiary) such other coverage option as may be offered and 
     elected by the qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 2202(3) 
     of such Act (42 U.S.C. 300bb-2(3)) is amended by adding at 
     the end the following new sentence: ``In the case of an 
     individual provided continuation coverage by reason of a 
     qualifying event described in section 2203(6), any reference 
     in subparagraph (A) of this paragraph to `102 percent of the 
     applicable premium' is deemed a reference to `125 percent of 
     the applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in paragraph (1)(B)'.''.
       (e) Notice.--Section 2206(a) of such Act (42 U.S.C. 300bb-
     6(a)) is amended--
       (1) in paragraph (4)(A), by striking ``or (4)'' and 
     inserting ``(4), or (6)''; and
       (2) by adding at the end the following:

     ``The notice under paragraph (4) in the case of a qualifying 
     event described in section 2203(6) shall be provided at least 
     90 days before the date of the qualifying event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after January 6, 2000. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

      Subtitle C--Amendments to the Internal Revenue Code of 1986

     SEC. 321. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 4980B(f)(3) of the Internal 
     Revenue Code of 1986 is amended by inserting after 
     subparagraph (F) the following new subparagraph:
       ``(G) The termination or substantial reduction in benefits 
     (as defined in subsection (g)(6)) of group health plan 
     coverage as a result of plan changes or termination in the 
     case of a covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 4980B(g) of such Code 
     is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(E) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     subsection (f)(3)(G), the term `qualified beneficiary' means 
     a qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     subsection (f)(3)(G), a covered employee who, at the time of 
     the event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(6) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary of Labor and with respect to a qualified 
     beneficiary, a reduction in the average actuarial value of 
     benefits under the plan (through reduction or elimination of 
     benefits, an increase in premiums, deductibles, copayments, 
     and coinsurance, or any combination thereof), since the date 
     of commencement of coverage of the beneficiary by reason of 
     the retirement of the covered employee (or, if later, January 
     6, 2000), in an amount equal to at least 50 percent of the 
     total average actuarial value of the benefits under the plan 
     as of such date (taking into account an appropriate 
     adjustment to permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of subsection (f)(2)(C).''.
       (b) Duration of Coverage Through Age 65.--Section 
     4980B(f)(2)(B)(i) of such Code is amended--
       (1) in subclause (II), by inserting ``or (3)(G)'' after 
     ``(3)(F)'';
       (2) in subclause (IV), by striking ``or (3)(F)'' and 
     inserting ``, (3)(F), or (3)(G)'';
       (3) by redesignating subclause (IV) as subclause (VI);
       (4) by redesignating subclause (V) as subclause (IV) and by 
     moving such clause to immediately follow subclause (III); and
       (5) by inserting after such subclause (IV) the following 
     new subclause:

       ``(V) Special rule for certain dependents in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     paragraph (3)(G), in the case of a qualified beneficiary 
     described in subsection (g)(1)(E) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(a) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(b) the date that is 36 months after the date of the 
     qualifying event.''.
       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 4980B(f)(2)(A) 
     of such Code is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(i) In general.--Except as provided in clause (ii), the 
     coverage''; and
       (2) by adding at the end the following:
       ``(ii) Certain retirees.--In the case of a qualifying event 
     described in paragraph (3)(G), in applying the first sentence 
     of clause (i) and the fourth sentence of subparagraph (C), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary of 
     Labor) continued under the group health plan (or, if none, 
     under the most prevalent other plan offered by the same plan 
     sponsor) shall be treated as the coverage described in such 
     sentence, or (at the option of the plan and qualified 
     beneficiary) such other coverage option as may be offered and 
     elected by the qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 
     4980B(f)(2)(C) of such Code is amended by adding at the end 
     the following new sentence: ``In the case of an individual 
     provided continuation coverage by reason of a qualifying 
     event described in paragraph (3)(G), any reference in clause 
     (i) of this subparagraph to `102 percent of the applicable 
     premium' is deemed a reference to `125 percent of the 
     applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in subparagraph (A)(ii)'.''.
       (e) Notice.--Section 4980B(f)(6) of such Code is amended--
       (1) in subparagraph (D)(i), by striking ``or (F)'' and 
     inserting ``(F), or (G)''; and
       (2) by adding at the end the following:

     ``The notice under subparagraph (D)(i) in the case of a 
     qualifying event described in paragraph (3)(G) shall be 
     provided at least 90 days before the date of the qualifying 
     event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after January 6, 2000. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

                          TITLE IV--FINANCING

     SEC. 401. REFERENCE TO FINANCING PROVISIONS.

       Any increase in payments under the medicare program under 
     title XVIII of the Social Security Act that results from the 
     enactment of this Act shall be offset by reductions in 
     payments under such program pursuant to the anti-fraud and 
     anti-abuse provisions enacted as part of the Medicare Fraud 
     and Reimbursement Reform Act of 1999 (H.R. 2229).

TITLE V--CREDIT AGAINST INCOME TAX FOR MEDICARE BUY-IN PREMIUMS AND FOR 
              CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS

     SEC. 501. CREDIT FOR MEDICARE BUY-IN PREMIUMS AND FOR CERTAIN 
                   COBRA CONTINUATION COVERAGE PREMIUMS.

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

     ``SEC. 25B. MEDICARE BUY-IN PREMIUMS AND CERTAIN COBRA 
                   CONTINUATION COVERAGE PREMIUMS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to 25 percent of 
     the amount paid during such year as--
       ``(1) qualified continuation health coverage premiums, and

[[Page 16008]]

       ``(2) medicare buy-in coverage premiums.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified continuation health coverage premiums.--The 
     term `qualified continuation health coverage premiums' means, 
     for any period, premiums paid for continuation coverage (as 
     defined in section 4980B(f)) under a group health plan for 
     such period but only if failure to offer such coverage to the 
     taxpayer for such period would constitute a failure by such 
     health plan to meet the requirements of section 4980B(f) and 
     only if the continuation coverage is provided because of a 
     qualifying event described in section 4980B(f)(3)(G).
       ``(2) Medicare buy-in coverage premiums.--The term 
     `medicare buy-in coverage premiums' means premiums paid under 
     part D of title XVIII of the Social Security Act.''
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of such Code is 
     amended by inserting after the item relating to section 25A 
     the following new item:

``Sec. 25B. Medicare buy-in premiums and certain COBRA continuation 
              coverage premiums.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

  Mr. KENNEDY. Mr. President, too many Americans nearing age 65 face a 
crisis in health care. They are too young for Medicare, and unable to 
obtain private coverage they can afford. Often, they are victims of 
corporate down-sizing, or of a company's decision to cancel its health 
insurance. These Americans have been left out and left behind through 
no fault of their own--often after decades of loyal work--and it is 
time for Congress to provide a helping hand.
  Almost three and a half million Americans ages 55 to 64 have no 
health insurance today, including more than 60,000 in Massachusetts. 
Many of these Americans have serious health problems that threaten to 
destroy the savings of a lifetime and that prevent them from finding or 
keeping a job. Even those without significant health problems know that 
a serious illness could wipe out their savings.
  Even those with good coverage today can't be certain it will be there 
tomorrow. No one nearing retirement can be confident that the health 
insurance they have now will protect them until they qualify for 
Medicare at 65.
  The health and financial well-being of these near-elderly are often 
at risk because of the serious gaps in our health care system. Those 
without coverage are twice as likely to be in fair or poor health than 
persons with coverage. They are four times as likely not to receive a 
recommended medical test or treatment, and five times as likely to 
forego needed medical care when they are sick.
  The bill that Senators Rockefeller, Daschle, and I are introducing 
today is a lifeline for these Americans. It is a constructive step 
toward the day when every American will be guaranteed the fundamental 
right to health care. It will enable uninsured Americans ages 62 to 65 
to buy into Medicare by paying monthly premiums. It will also enable 
those ages 55 to 61 who lose their jobs to buy in. In addition, it will 
help retirees ages 55 and older whose health insurance is terminated by 
their employers by extending COBRA.
  Finally, tax credits equal to 25% of the premium will be available 
for enrollees in all three programs to help them afford to buy into the 
programs. The estimated cost of the tax credits is $8.4 billion over 
the next ten years.
  In the past, opponents have used scare tactics to claim that these 
proposals pose a threat to Medicare. They are nothing of the kind. 
There is no additional burden of Medicare as a result of this 
legislation. The tax credits are paid for by general treasury funds. 
The Medicare costs are paid for through enrollee premiums. The existing 
Medicare Trust Fund is protected by placing the programs in their own 
trust fund. The Medicare Trustees will monitor the program to ensure 
that it is self-financing.
  The number of near-elderly who are uninsured is growing every year. 
Relief of this kind was originally proposed by President Clinton, and 
it deserves broad bipartisan support. The health and financial 
consequences of the lack of insurance are significant--especially for 
the near-elderly. These Americans need and deserve the help that this 
bill provides. We intend to do all we can to see that this proposal is 
enacted as soon as possible.
                                 ______
                                 
      By Mr. CAMPBELL:
  S. 2919. A bill to amend the Omnibus Parks and Public Lands 
Management Act of 1996 to extend the legislative authority for the 
Black Patriots Foundation to establish a commemorative work; to the 
Committee on Energy and Natural Resources.


                 black patriots foundation legislation

  Mr. CAMPBELL. 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. 2919

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

     SECTION 1. BLACK REVOLUTIONARY WAR PATRIOTS MEMORIAL.

       Section 506 of the Omnibus Parks and Public Lands 
     Management Act of 1996 (40 U.S.C. 1003 note; 110 Stat. 4155) 
     is amended by striking ``2000'' and inserting ``2002''.
                                 ______
                                 
      By Mr. CAMPBELL:
  S. 2920. A bill to amend the Indian Gaming Regulatory Act, and for 
other purposes; to the Committee on Indian Affairs.


            indian gaming regulatory improvement act of 2000

  Mr. CAMPBELL. Mr. President today I am pleased to introduce the 
Indian Gaming Regulatory Improvement Act of 2000 to make specific and 
what I feel are needed changes to the Indian Gaming Regulatory Act of 
1988, 25 U.S.C. Sec. 2701, et seq. (``IGRA'').
  The IGRA was signed into law in 1988 with two broad goals in mind: 
First, to provide for the continued economic opportunities tribal 
gaming presents to Indian tribes, and second, to provide a regulatory 
framework for tribal gaming to ensure the integrity of such gaming for 
the benefit of tribes as well as customers of tribal gaming operations.
  In 1988, tribal gaming was a relative new activity and in 12 years 
tribal gaming gross revenues have grown from $500 million to $8.26 
billion. By statute these revenues are spent by tribal governments on 
physical infrastructure, general welfare and the betterment of Indian 
and surrounding non-Indian communities.
  For the 198 tribes that now conduct some form of gaming the economic 
benefits for the tribes as well as surrounding communities cannot be 
ignored. For these communities collectively, unemployment has dropped 
and tribes who operate gaming have been able to provide for housing, 
health care and education for their members and to generate hundreds of 
thousands of jobs for Indians and non-Indians alike.
  The legislation I am introducing today is not intended and should not 
be viewed as a comprehensive attempt to remedy all matters that have 
arisen in the past 12 years. Rather, this bill takes aim at very 
specific items.
  1. With regard to gaming fees assessed against tribal operations, 
this bill will require the Federal National Indian Gaming Commission to 
levy fees that are reasonably related to the duties of and services 
provided by the Commission to tribes, and in certain instances to 
reduce the level of fees payable by those operations;
  2. It establishes a Trust Fund for such fees that can only be tapped 
for the specific activities of the Commission mandated by the IGRA;
  3. It provides statutory authority for the Commission to establish 
through a negotiated rule-making process, Minimum Standards for the 
conduct of tribal gaming, acknowledging that for class III gaming the 
standards are to be determined by the tribe and the state through 
negotiated gaming compacts;
  4. It authorizes technical assistance to tribes for a number of 
purposes including strengthening tribal regulatory regimes; assessing 
the feasibility of non-gaming economic development activities on Indian 
lands; providing treatment services for problem gamblers; and for other 
purposes not inconsistent with the IGRA;
  5. It launches a negotiated rulemaking to eventually clarify the 
current conflict between the IGRA and other Federal law with regard to 
the

[[Page 16009]]

classification of certain games conducted by tribes; and
  6. Last, to bring the Commission in line with all other Federal 
agencies it specifically subjects the Commission to the reporting and 
other requirements of the Federal Government Performance and Results 
Act.
  Mr. President, while there are other matters that Indian tribes and 
others wish to address that are not included in this bill, I am hopeful 
that people of good will find this legislation to be appropriate, 
reasonable and targeted to specific issues that he arisen in the part 
12 years.
  It is my hope that we can debate and discuss the bill in Committee to 
get the views of affected parties and iron out whatever differences 
there may be.
  I ask unanimous consent that a copy of the legislation be printed in 
the Record. I thank the Chair and I yield the floor.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2920

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Indian Gaming Regulatory 
     Improvement Act of 2000''.

     SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.

       The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) 
     is amended--
       (1) in section 7 (25 U.S.C. 2706)--
       (A) in subsection (c)--
       (i) in paragraph (3), by striking ``and'' at the end 
     thereof;
       (ii) by redesignating paragraph (4) as paragraph (5); and
       (iii) by inserting after paragraph (3), the following:
       ``(4) performance plans created under subsection (d), 
     including copies of such plans; and''; and
       (B) by adding at the end the following:
       ``(d) Performance Plans.--The Commission shall be subject 
     to the requirements of section 306 of title 5, United States 
     Code, and sections 1115 and 1116 of title 31, United States 
     Code (as added by the Government Performance and Results Act 
     (Public Law 130-62)). Not later than 1 year after the date of 
     enactment of the Indian Gaming Regulatory Improvement Act of 
     2000, the Commission shall prepare and submit the initial 
     strategic plan required under such section 306 to the 
     Director of the Office of Management and Budget.'';
       (2) in section 11(b)(2)(F)(i) (25 U.S.C. 2710(b)(2)(F)(i)), 
     by striking ``primary management'' and all that follows 
     through ``such officials'' and inserting ``tribal gaming 
     commissioners, tribal gaming commission employees, and 
     primary management officials and key employees of the gaming 
     enterprise and that oversight of primary management officials 
     and key employees'';
       (3) by redesignating section 22 (25) U.S.C. 2721) as 
     section 26; and
       (4) by inserting after section 21 (25 U.S.C. 2720) the 
     following:

     ``SEC. 22 FEE ASSESSMENTS.

       ``(a) Establishment of Schedule of Fees.--
       ``(1) In general.--Except as provided in this section, the 
     Commission shall establish a schedule of fees to be paid 
     annually to the Commission by each gaming operation that 
     conducts a class II or class III gaming activity that is 
     regulated by this Act.
       ``(2) Rates.--The rate of fees under the schedule 
     established under paragraph (1) that are imposed on the gross 
     revenues from each activity described in such paragraph shall 
     be as follows:
       ``(A) A fee of not more than 2.5 percent shall be imposed 
     on the first $1,500,000 of such gross revenues.
       ``(B) A fee of not more than 5 percent shall be imposed on 
     amounts in excess of the first $1,500,000 of such gross 
     revenues.
       ``(3) Total amount.--The total amount of all fees imposed 
     during any fiscal year under the schedule established under 
     paragraph (1) shall not exceed $8,000,000.
       ``(b) Commission Authorization.--
       ``(1) In general.--By a vote of not less than 2 members of 
     the Commission the Commission shall adopt the schedule of 
     fees provided for under this section. Such fees shall be 
     payable to the Commission on a quarterly basis.
       ``(2) Fees assessed for services.--The aggregate amount of 
     fees assessed under this section shall be reasonably related 
     to the costs of services provided by the Commission to Indian 
     tribes under this Act (including the cost of issuing 
     regulations necessary to carry out this Act). In assessing 
     and collecting fees under this section, the Commission shall 
     take into account the duties of, and services provided by, 
     the Commission under this Act.
       ``(3) Factors for consideration.--In making a determination 
     of the amount of fees to be assessed for any class II or 
     class III gaming activity under the schedule of fees under 
     this section, the Commission may provide for a reduction in 
     the amount of fees that otherwise would be collected on the 
     basis of the following factors:
       ``(A) The extent of the regulation of the gaming activity 
     involved by a State or Indian tribe (or both).
       ``(B) The extent of self-regulating activities, as defined 
     by this Act, conducted by the Indian tribe.
       ``(C) Other factors determined by the Commission, including
       ``(i) the unique nature of tribal gaming as compared to 
     commercial gaming, other governmental gaming, and charitable 
     gaming;
       ``(ii) the broad variations in the nature, scale, and size 
     of tribal gaming activity;
       ``(iii) the inherent sovereign rights of Indian tribes with 
     respect to regulating the affairs of Indian tribes;
       ``(iv) the findings and purposes under sections 2 and 3; 
     and
       ``(v) any other matter that is consistent with the purposes 
     under section 3.
       ``(4) Consultation.--In establishing a schedule of fees 
     under this section, the Commission shall consult with Indian 
     tribes.
       ``(c) Trust Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     of the United States a fund to be known as the Indian Gaming 
     Trust Fund (referred to in this subsection as the `Trust 
     Fund'), consisting of such amounts as are--
       ``(A) transferred to the Trust Fund under paragraph (2)(A);
       ``(B) appropriated to the Trust Fund; and
       ``(C) any interest earned on the investment of amounts in 
     the Trust Fund under subsection (d).
       ``(2) Transfer of amounts equivalent to fees.--
       ``(A) In general.--The Secretary of the Treasury shall 
     transfer to the Trust Fund an amount equal to the aggregate 
     amount of fees collected under this section.
       ``(B) Transfers based on estimates.--The amounts required 
     to be transferred to the Trust Fund under subparagraph (A) 
     shall be transferred not less frequently than quarterly from 
     the general fund of the Treasury to the Trust Fund on the 
     basis of estimates made by the Secretary of the Treasury. 
     Proper adjustment shall be made in amounts subsequently 
     transferred to the extent prior estimates were in excess of 
     or less than the amounts required to be transferred.
       ``(d) Investments.--
       ``(1) In general.--It shall be the duty of the Secretary of 
     the Treasury to invest such portion of the Trust Fund as is 
     not, in the judgment of the Secretary of the Treasury, 
     required to meet current withdrawals. The Secretary of the 
     Treasury shall invest the amounts deposited under subsection 
     (c) only in interest-bearing obligations of the United States 
     or in obligations guaranteed as to both principal and 
     interest by the United States.
       ``(2) Sale of obligations.--Any obligation acquired by the 
     Trust Fund, except special obligations issued exclusively to 
     the Trust Fund, may be sold by the Secretary of the Treasury 
     at the market price, and such special obligations may be 
     redeemed at par plus accrued interest.
       ``(3) Credits to trust fund.--The interest on, and proceeds 
     from, the sale or redemption of, any obligations held in the 
     Trust Fund shall be credited to and form a part of the Trust 
     Fund.
       ``(e) Expenditures from Trust Fund.--
       ``(1) In general.--Amounts in the Trust Fund shall be 
     available to the Commission, as provided for in 
     appropriations Acts, for carrying out the duties of the 
     Commission under this Act.
       ``(2) Withdrawal and transfer of funds.--Upon request of 
     the Commission, the Secretary of the Treasury shall withdraw 
     amounts from the Trust Fund and transfer such amounts to the 
     Commission for use in accordance with paragraph (1).
       ``(f) Limitation on Transfers and Withdrawals.--Except as 
     provided in subsection (e)(2), the Secretary of the Treasury 
     may not transfer or withdraw any amount deposited under 
     subsection (c).

     ``SEC. 23. MINIMUM STANDARDS.

       ``(a) Class I Gaming.--Notwithstanding any other provision 
     of law, class I gaming on Indiana lands shall be within the 
     exclusive jurisdiction of the Indian tribes and shall not be 
     subject to the provisions of this Act.
       ``(b) Class II Gaming.--Effective on the date of enactment 
     of this section, an Indian tribe shall retain the rights of 
     that Indian tribe, with respect to class II gaming and in a 
     manner that meets or exceeds the minimum Federal standards 
     established under section 11, to--
       ``(1) monitor and regulate that gaming;
       ``(2) conduct background investigations; and
       ``(3) establish and regulate internal control systems.
       ``(c) Class III Gaming Under a Compact.--With respect to 
     class III gaming that is conducted under a compact entered 
     into under this Act, an Indian tribe or a State (or both), as 
     provided for in such a compact or a related tribal ordinance 
     or resolution shall, in a manner that meets or exceeds the 
     minimum Federal standards established by the Commission under 
     section 11--
       ``(1) monitor and regulate that gaming;
       ``(2) conduct background investigations; and

[[Page 16010]]

       ``(3) establish and regulate internal control systems.
       ``(d) Rulemaking.--The Commission may promulgate such 
     regulations as may be necessary to carry out this section.

     ``SEC. 24. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL 
                   FINES.

       ``(a) Use of Funds.--The Secretary may provide grants and 
     technical assistance to Indian tribes from any funds secured 
     by the Commission pursuant to section 14, which funds shall 
     be made available only for the following purposes:
       ``(1) To provide technical training and other assistance to 
     Indian tribes to strengthen the regulatory integrity of 
     Indian gaming.
       ``(2) To provide assistance to Indian tribes to assess the 
     feasibility of non-gaming economic development activities on 
     Indian lands.
       ``(3) To provide assistance to Indian tribes to devise and 
     implement programs and treatment services for individuals 
     diagnosed as problem gamblers.
       ``(4) To provide other forms of assistance to Indian tribes 
     not inconsistent with the Indian Gaming Regulatory Act.
       ``(b) Consultation.--In carrying out this section, the 
     Secretary shall consult with Indian tribes and any other 
     appropriate tribal or Federal officials.
       ``(c) Regulations.--The Secretary may promulgate such 
     regulations as may be necessary to carry out this section.

     ``SEC. 25. REGULATIONS.

       ``(a) In General.--
       ``(1) Promulgation.--Not later than 90 days after the date 
     of enactment of the Indian Gaming Regulatory Improvement Act 
     of 2000, the Secretary shall develop procedures under 
     subchapter III of chapter 5 of title 5, United States Code, 
     to negotiate and promulgate regulations relating to the 
     classification of games conducted by Indian tribes pursuant 
     to this Act.
       ``(2) Publication of proposed regulations.--Not later than 
     1 year after the date of enactment of the Indian Gaming 
     Regulatory Improvement Act of 2000, the Secretary shall 
     publish in the Federal Register proposed regulations to 
     implement the amendments made by such Act.
       ``(b) Committee.--A negotiated rulemaking committee 
     established pursuant to section 565 of title 5, United States 
     Code, to carry out this section shall be composed only of 
     Federal and Indian tribal government representatives, a 
     majority of whom shall be nominated by and be representative 
     of Indian tribes that conduct gaming pursuant to this Act.''.

     SEC. 3. APPLICATION OF GOVERNMENT PERFORMANCE AND RESULTS 
                   ACT.

       Section 306(f) of title 5, United States Code, is amended 
     by inserting ``and includes the National Indian Gaming 
     Commission,'' after ``section 105,''.
                                 ______
                                 
      By Mr. McCAIN (for himself and Mr. Inouye):
  S. 2921. A bill to provide for management and leadership training, 
the provision of assistance and resources for policy analysis, and 
other appropriate activities in the training of Native American and 
Alaska Native professionals in health care and public policy; to the 
Committee on Environment and Public Works.


           legislation expanding the udall foundation mission

  Mr. McCAIN. Mr. President, I rise to introduce legislation that will 
amend the Morris K. Udall Scholarship and Excellence in National 
Environmental and Native America Public Policy Act of 1992 to expand 
opportunities for the Morris K. Udall Foundation to assist tribal 
governments with leadership and management training. I am pleased that 
Senator Inouye is an original cosponsor of this legislation.
  This legislation is mostly technical in nature. It extends the 
authority of the Udall Foundation, located at the University of Arizona 
in Tucson, to implement a leadership and management training program, 
to be called the ``Native Nations Institute for Leadership, Management 
and Policy.''
  The 1992 Act which created the Udall Foundation is already authorized 
to implement programs to assist tribal governments with training for 
Native American and Alaska Native professionals in public policy. This 
legislation simply authorizes the Udall Foundation to carry out another 
step in its mission.
  The Native Nations Institute will provide practical leadership and 
management training as well as policy analysis, in a variety of fields, 
for native people and communities to further the goals of tribal self-
governance. The Native Nations Institute will facilitate this training 
through a unique partnership between the University of Arizona, the 
Udall Foundation and the Harvard Project on American Indian Economic 
Development.
  Mr. President, the Native Nations Institute will enable tribal 
leaders and decision-makers to access professional leadership and 
management training to prepare current and future tribal leaders to 
tackle the socioeconomic, educational and other fundamental challenges 
facing tribal communities.
  Companion legislation has been introduced in the House with 
bipartisan support. In the short time remaining in this Congressional 
session, I hope that we can proceed with prompt passage of this 
legislation.
  I ask unanimous consent to include the text of the legislation in the 
Record immediately following my remarks.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2921

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

     SECTION 1. MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN 
                   NATIONAL ENVIRONMENTAL POLICY FOUNDATION.

       (a) Authority.--Section 6(7) of the Morris K. Udall 
     Scholarship and Excellence in National Environmental and 
     Native American Public Policy Act of 1992 (20 U.S.C. 5604(7)) 
     is amended by inserting before the semicolon at the end the 
     following: ``, by conducting management and leadership 
     training of Native Americans, Alaska Natives, and others 
     involved in tribal leadership, providing assistance and 
     resources for policy analysis, and carrying out other 
     appropriate activities.''.
       (b) Administrative Provisions.--Section 12(b) of the Morris 
     K. Udall Scholarship and Excellence in National Environmental 
     and Native American Public Policy Act of 1992 (20 U.S.C. 
     5608(b)) is amended by inserting before the period at the end 
     the following: ``and to the activities of the Foundation 
     under section 6(7)''.
       (c) Authorization of Appropriations.--Section 13 of the 
     Morris K. Udall Scholarship and Excellence in National 
     Environmental and Native American Public Policy Act of 1992 
     (20 U.S.C. 5609) is amended by adding at the end the 
     following:
       ``(c) Training of Professionals in Health Care and Public 
     Policy.--There is authorized to be appropriated to carry out 
     section 6(7) $12,300,000 for the 5-year period beginning with 
     the first fiscal year that begins after the date of enactment 
     of this subsection.''.

                          ____________________