[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Senate]
[Pages 12870-12881]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      Mrs. FEINSTEIN:
  S. 2803. A bill to provide for infant crib safety, and for other 
purposes; to the Committee on Commerce, Science, and Transportation.


                       the infant crib safety act

  Mrs. FEINSTEIN. Mr. President, today, I am introducing legislation 
designed to eliminate injuries and deaths that result from crib 
accidents.
  While there are strict guidelines on the manufacture and sale of new 
cribs, there are still 25 to 30 million unsafe cribs sold throughout 
the U.S. in ``secondary markets,'' such as thrift stores and resale 
furniture stores. These cribs should be taken off the market, and 
either made safe, or destroyed.
  There are a number of reasons why unsafe cribs should be taken off 
the market:
  Each year, at least 45 children die from injuries sustained in cribs. 
That is almost one child a week.
  The number of deaths from crib incidents exceeds deaths from all 
other nursery products combined.
  Over 9,000 children are hospitalized each year as a result of 
injuries sustained in cribs.
  To illustrate the need for this legislation, I want to share with you 
the story of Danny Lineweaver.
  At the age of 23 months, Danny was injured during an attempt to climb 
out of his crib. Danny caught his shirt on a decorative knob on the 
cornerpost of his crib and hanged himself.
  Though his mother was able to perform CPR the moment she found him, 
Danny lived in a semi-comatose state for nine years and died in 1993. 
This injury and subsequent death could have been prevented.
  Since Danny's accident, we have passed laws mandating safety 
standards for the manufacture of new cribs. But this is not enough.
  There are nearly four million infants born in this country each year, 
but only one million new cribs sold. As many as half of all infants are 
placed in secondhand, hand-me-down, or heirloom cribs--cribs that are 
sold in thrift stores or resale furniture stores. These cribs may be 
unsafe, and may in fact threaten the life of the infants placed in 
them.
  This legislation requires thrift stores and retail furniture stores 
to remove decorative knobs on the cornerposts of cribs before selling 
those cribs.
  Additionally, the bill prohibits hotels and motels from providing 
unsafe cribs to guests, or risk being fined up to $1,000.
  The Infant Crib Safety Act makes the sale of used, unsafe cribs 
illegal. I hope my colleagues will join me in putting a stop to 
preventable injuries and deaths resulting from unsafe cribs.
                                 ______
                                 
      By Mr. BAYH (for himself and Mr. Lugar):
  S. 2804. A bill to designate the facility of the United States Postal 
Service located at 424 South Michigan Street in South Bend, Indiana, as 
the ``John Brademas Post Office''; to the Committee on Governmental 
Affairs.


            designation of the ``john brademas post office''

 Mr. BAYH. Mr. President. It is with great pride that I rise 
today to pay tribute to a good friend and a great man, former United 
States Congressman John Brademas. I am honored to introduce legislation 
designating the United States Post Office located at 424 South Michigan 
Street in South Bend, Indiana, as the ``John Brademas Post Office.''
  John Brademas was born on March 2, 1927, in Mishawaka, Indiana, a 
small town in Indiana's third congressional district, which he would 
later represent for more than two decades (1959-1981). John's father 
was a Greek immigrant restauranteur and his mother was a Hoosier school 
teacher. Upon graduation from high school, John joined the Navy and 
soon thereafter became a Veterans National Scholar at Harvard 
University, from which he graduated with a B.A., Magna Cum Laude, in 
1949. From 1950 to 1953, he studied as a Rhodes Scholar at Oxford 
University, England, receiving the degree of Doctor of Philosophy in 
Social Studies.
  From 1955 to 1956, John Brademas served as Executive Assistant to the 
late Adlai E. Stevenson, where he assumed research responsibilities 
during the 1956 Presidential campaign. Three years later, John Brademas 
became the first native-born American of Greek origin to be elected to 
Congress. In the House, he quickly became a leader in the areas of 
education, the arts and humanities, as well as a staunch defender of 
the rights of the disabled and the elderly. During his service on the 
House Committee on Education and Labor,

[[Page 12871]]

Congressman Brademas was largely responsible for writing major federal 
legislation concerning elementary and secondary education, higher 
education, vocational education, as well as support for libraries, 
museums, and the arts and humanities.
  Congressman Brademas was also the chief House sponsor of the 
Education for all Handicapped Children Act; the Arts, Humanities, and 
Cultural Affairs Act; and the Older Americans Comprehensive Services 
Act. In 1977, Congressman Brademas was chosen by his colleagues for the 
influential position of House Majority Whip, in which he served for his 
last four years in office. Among his numerous accomplishments, 
Congressman Brademas was responsible for attaining the necessary 
funding for the very same Post Office that I seek to name in his honor.
  Today, Congressman Brademas is President Emeritus of New York 
University, where he served as President from 1981-1992. During that 
time, he led the transition of New York University from a regional 
commuter school to a national and international research university. In 
addition to his responsibilities at New York University, he is the 
Chairman of the National Endowment for Democracy and serves as co-
chairman for the Center on Science, Technology and Congress at the 
American Association for the Advancement of Science. He also serves on 
the Consultants' Panel to the Comptroller General of the United States.
  During his long and distinguished service, both as a leader in 
government and a leader in higher education, John Brademas has provided 
inspiration and guidance to two generations of men and women committed 
to public service and to education. I want to thank Congressman 
Brademas for his enduring contributions to the State of Indiana and the 
nation.
  Mr. President, it is my hope that the Postal facility located at 424 
South Michigan Street will soon bear the name of my good friend and 
fellow Hoosier, former Congressman John Brademas.
                                 ______
                                 
      By Mr. THOMPSON (for himself and Mr. Lieberman) (by request):
  S. 2805. To amend the Federal Property and Administrative Services 
Act of 1949, as amended, to enhance Federal asset management, and for 
other purposes; to the Committee on Governmental Affairs.


        the federal property asset management reform act of 2000

 Mr. THOMPSON. Mr. President, today Senator Lieberman and I are 
introducing, by request, the Federal Asset Management Reform Act of 
2000. This legislation is the result of the work of the General 
Services Administration, under the leadership of its Administrator 
David Barram, to modernize and reform the management, use and disposal 
of the Federal government's real property and surplus personal 
property.
  The Federal government owns or controls over 24 million acres of land 
and facilities which have been acquired for use and operation by 
Federal agencies in support of their missions. Since 1949, the Federal 
Property and Administrative Services Act has provided the foundation 
for the management and disposal of these properties as well as for 
surplus personal property. This legislative proposal is intended to 
improve life cycle planning and management of Federal assets.
  We are introducing this proposal today for the purpose of encouraging 
study and comment by all interested parties. Key participants in the 
current property disposal process are state and local governments, non-
profit organizations and federal agencies. The Governmental Affairs 
Committee intends to review this legislative measure and all comments 
received about it to better understand what changes are desirable in 
the management of the Federal government's billions of dollars worth of 
real and surplus property. The Committee expects to follow through with 
further legislative action in the next Congress.
  Mr. President, I ask unanimous consent that the full text of the 
Federal Asset Management Reform Act of 2000 be printed at this point in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2805

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

                         TITLE 1. SHORT TITLE.

       This Act may be cited as the ``Federal Property Asset 
     Management Reform Act of 2000''.

                         TITLE 2. DEFINITIONS.

       Section 3 of the Federal Property and Administrative 
     Services Act of 1949, as amended (40 U.S.C. Sec. 472), is 
     amended by adding at the end the following:
       ``(m) The term ``landholding agency'' means any Federal 
     agency that, by specific or general statutory authority, has 
     jurisdiction, custody, and control over real property, or 
     interests therein. The ten-n does not include agencies, when 
     they are acting as the sponsors of real property conveyances 
     for public benefit purposes pursuant to section 203 of the 
     Act (40 U.S.C. 33 Sec. 484).

              TITLE 3. LIFE CYCLE PLANNING AND MANAGEMENT

       Title 11 of the Federal Property and Administrative 
     Services Act of 1949, as amended, is amended by adding at the 
     end thereof the following new sections:
       ``Sec. 213. (a) In accordance with the authorities vested 
     in the Administrator under section 205(c) of this Act, the 
     Administrator, in collaboration with the heads of affected 
     Federal agencies, shall establish and maintain current asset 
     management principles to be used as guidance by such agencies 
     in making major decisions concerning the planning, 
     acquisition, use, maintenance, and disposal of real and 
     personal property assets subject to this Act and under the 
     jurisdiction, custody and control of such agencies.
       ``(b) In order to accumulate and maintain a single, 
     comprehensive descriptive listing of all Federal real 
     property interests under the custody and control of each 
     Federal agency, the Administrator, in coordination with the 
     heads of affected Federal agencies, shall collect such 
     descriptive information, except for classified information, 
     as the Administrator deems will best describe the nature, 
     use, and extent of the real property holdings of the United 
     States. For purposes of this section, real property holdings 
     include all public lands of the United States and all real 
     property of the United States located outside the States of 
     the Union, to include, but not be limited to the District of 
     Columbia, Puerto Rico, American Samoa, Guam, the Trust 
     Territory of the Pacific Islands and the Virgin Islands. To 
     facilitate the reporting on a uniform basis, the 
     Administrator is authorized to establish data and other 
     information technology standards for use by Federal agencies 
     in developing or upgrading agency real property infon-nation 
     systems.
       ``(c) The listing compiled pursuant to this section shall 
     be public record; however, the Administrator is authorized to 
     withhold infon-nation, including the location of classified 
     facilities, when it is determined that withholding such 
     information would be in the public interest. Nothing herein 
     shall require the public release of information which is 
     exempt from disclosure pursuant to the Freedom of Information 
     Act (5 U.S.C. Sec. 552).
       ``(d) Nothing in this section shall authorize the 
     Administrator to assume jurisdiction over the acquisition, 
     management, or disposal of real property not subject to this 
     Act.
       ``Sec. 214. (a) Within ISO days of the effective date of 
     this section, the head of each landholding agency shall 
     appoint, or designate from among persons who are employees 
     within such agency, a Senior Real Property Officer. The head 
     of any landholding agency who so desires may also appoint a 
     Real Property Officer for any major component part of an 
     agency, and such Real Property Officers, for the purposes of 
     complying with this Act, shall report to the Senior Real 
     Property Officer.
       ``(b) The Senior Real Property Officer for each agency 
     shall be responsible for continuously monitoring agency real 
     property assets to:
       ``(1) ensure that the management of each asset, including 
     but not limited to its functional use, occupancy, 
     reinvestment requirements and future utility, is fully 
     consistent with and supportive of the goals and objectives 
     set forth in the agency's Strategic Plan required under 
     section 3 of the Government Performance and Results Act of 
     1993, Public Law 103-62 (5 U.S.C. Sec. 306), consistent with 
     the framework provided by the real property asset management 
     principles published by the Administrator pursuant to section 
     213(a) of this Act, and reflected in an agency asset 
     management plan. The asset management plan shall be prepared 
     according to guidelines issued by the Administrator, shall be 
     maintained to reflect current agency program and budget 
     priorities, and be consistent with capital planning and 
     programming guidance issued by the Office of Management and 
     Budget;
       ``(2) identify real property assets that can benefit from 
     the application of the enhanced asset management tools 
     described in section 216 of this Act;

[[Page 12872]]

       ``(3) ensure, in those cases where a real property asset 
     can benefit from application of an enhanced asset management 
     tool, that any resulting transaction will result in a fair 
     return on the Federal government investment and protect the 
     Federal government from unreasonable financial or other 
     risks; and
       ``(4) ensure that a listing and description of the real 
     property assets, under the jurisdiction, custody and control 
     of that agency, including public lands of the United States 
     and property located in foreign lands, is provided to the 
     Administrator, along with any other relevant information the 
     Administrator may request, for inclusion in a govemment-wide 
     listing of all Federal real property interests established 
     and maintained in accordance with section 213(b) of this Act.
       ``(c) Except as otherwise provided by Federal law, prior to 
     a Federal agency acquiring any interests in real property 
     from any non-Federal source, the Senior Real Property Officer 
     of the acquiring agency shall give first consideration to 
     available Federal real property holdings.''.

    TITLE 4. ENHANCED AUTHORITIES FOR REAL PROPERTY ASSET MANAGEMENT

       Sec. 401. Title 11 of the Federal Property and 
     Administrative Services Act of 1949, as amended, is amended 
     by adding at the end thereof the following new sections:
       ``Sec. 215. Criteria for Using Enhanced Asset Management 
     Tools.--
       ``(a) Subject to the requirements of subsection (b) of this 
     section, the head of a landholding agency may apply an 
     enhanced asset management tool described in section 216 of 
     this Title to a real property interest under the agency's 
     jurisdiction, custody and control when the head of the agency 
     has determined that such real property interest--
       ``(1) when used to acquire replacement real property, is 
     not excess property within the meaning given in subsection 
     3(e) of this Act (40 U.S.C. Sec. 472(e));
       ``(2) is used to fulfill or support a continuing mission 
     requirement of the agency; and
       ``(3) can, by applying an enhanced asset management tool, 
     improve the support of such mission.
       ``(b) Before applying an enhanced asset management tool 
     defined in section 216 to a real property interest identified 
     under subsection (a) of this section, the head of the agency 
     shall determine that such application meets all of the 
     following criteria:
       ``(1) supports the goals and objectives set forth in the 
     agency's Strategic Plan required under section 3 of the 
     Government Performance and Results Act of 1993, Public Law 
     103-62 (5 U.S.C. Sec. 306) and the agency's real property 
     asset management plan as required in section 214;
       ``(2) is the most economical and cost effective option 
     available for the use of the real property; and
       ``(3) is documented in a business plan which, commensurate 
     with the nature of the selected tool, analyzes all reasonable 
     options for using the property; takes into account applicable 
     provisions of law including but not limited to the National 
     Environmental Policy Act; and evidences compliance with the 
     requirements of the Stewart B. McKinney Homeless Assistance 
     Act, including (i) describing the result of the determination 
     by the Department of Housing and Urban Development of the 
     suitability of the property for use to assist the homeless; 
     and (ii) explaining the rationale for the landholding 
     agency's decision not to make the property available for use 
     to assist the homeless.
       ``Sec. 216. Enhanced Asset Management Tools.--
       ``(a) Interagency Transfers or Exchanges.--Any landholding 
     agency may acquire replacement real property by transfer or 
     exchange of real property subject to this Act with other 
     Federal agencies under terms mutually agreeable to the 
     agencies involved.
       ``(b) Sales to or Exchanges With Non-Federal Sources.--Any 
     landholding agency may acquire replacement real property by 
     selling or exchanging a real property asset or interests 
     therein with any non Federal source; provided that: (1) this 
     transaction does not conflict with other applicable laws 
     governing the acquisition of interests in real property by 
     Federal agencies; (2) the agency first made the property 
     available for transfer or exchange to other Federal agencies; 
     and (3) the transaction results in the agency receiving fair 
     market value consideration, as determined by the agency head, 
     for the asset sold or exchanged.
       ``(c) Subleases.--The head of any landholding agency, by 
     lease, permit, license or similar instrument, may make 
     available to other Federal agencies and to non-Federal 
     entities the unexpired portion of any government lease for 
     real property; provided that the term of any sublease shall 
     not exceed the unexpired portion of the term of the original 
     government lease of the property and the sublease results in 
     the agency receiving fair market rental value for the asset. 
     Prior to subleasing to any private person or private sector 
     entity, the Federal landholding agency shall give 
     consideration to the needs of the following entities with the 
     needs of entities listed in paragraph (1) being considered 
     before the needs of entities listed in paragraph (2):
       ``(1) First priority.--The needs of each of the following 
     entities, equally, shall be given first priority by the 
     agency:
       ``(A) Federal agencies; and
       ``(B) Indian tribes (as defined by section 4 of the Indian 
     Health Care Improvement Act (25 U.S.C. 1603)), urban Indian 
     organizations (as defined by that section), and tribal 
     organizations (as defined by section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)) 
     when the property is to be used in connection with an Indian 
     self-determination contract or grant pursuant to the Indian 
     Self-Determination Act (25 U.S.C. 450f et seq.); and
       ``(C) urban Indian organizations (defined as in 
     subparagraph (B)) when the property is to be used in 
     connection with a contract or grant pursuant to title V of 
     the Indian Health Care Improvement Act (25 U.S.C. 1651 et 
     seq.).
       ``(2) Second priority.--The needs of each of the following 
     entities, equally, shall be given second priority by the 
     agency:
       ``(A) State and local governments; and
       ``(B) Indian tribes, tribal organizations, and urban Indian 
     organizations (defined as in paragraph (1)(B)) when the 
     property is to be used other than as described in paragraph 
     (1).
       ``(d) Outleases.--The head of any landholding agency may 
     make available by outlease agreements with other Federal 
     agencies and non-Federal entities any unused or underused 
     portion of or interest in any agency real and related 
     personal property after finding that (i) there is no long-
     term mission requirement for the property, but the Federal 
     government is not permitted to dispose of it; or (11) there 
     is a continuing long-term mission requirement for the 
     property to remain in Government ownership but no known 
     agency need for the property over the term of the outlease 
     and (iii) the use of the real property by the lessee will not 
     be inconsistent with the statutory mission of the landholding 
     agency; provided that such an outlease transaction is 
     conducted competitively.
       ``(1) Outlease Agreements.--Any outlease agreements 
     authorized under this subsection:
       ``(A) shall be for a term no longer than 20 years; with the 
     exception that property that cannot be sold may be outleased 
     for up to 35 years provided any such agency head 
     determination of whether property cannot be sold shall be 
     based on criteria established by the Administrator;
       ``(B) shall result in the agency receiving fair market 
     value consideration, as defined by the agency head, for the 
     asset, including cash, services, and/or in-kind 
     consideration;
       ``(C) shall not provide a leaseback option to the Federal 
     government to occupy space in any facilities acquired, 
     constructed, repaired, renovated or rehabilitated by the non-
     govemmental entity, unless the net present value, including 
     the market value of the land provided through the outlease, 
     of such an outlease and leaseback arrangement is less 
     expensive for the Federal government than a simple 
     Government-financed renovation or construction project; 
     provided further that any subsequent agreements to leaseback 
     space in such facilities must be in accordance with the 
     competition requirements of Title III of this Act (41 U.S.C. 
     Sec. 253 et seq.) and meet the guidelines for operating 
     leases set forth in Conference Report No. 105-217, to 
     accompany the Balanced Budget Act of 1997.
       ``(D) shall provide (i) that neither the United States, nor 
     its agencies or employees, shall be liable for any actions, 
     debts or liability of the lessee, and (ii) that the lessee 
     shall not be authorized to execute and shall not execute any 
     instrument or document creating or evidencing any 
     indebtedness unless such instrument or document specifically 
     disclaims any liability of the United States, and of any 
     Federal agency or employee, thereunder; and
       (E) may contain such other terms and conditions as the head 
     of the agency making the property available deems necessary 
     to protect the interests of the Federal government.
       ``(2) Order of Consideration.--In making property available 
     for outlease, the landholding agency shall follow the order 
     of consideration listed in subsection (c) of this section.
       ``(3) Prerequisites to Agreements.--Prior to the head of 
     any landholding agency executing any agreement authorized 
     under subsection (d) of this section which would result in 
     the development or major rehabilitation/renovation of Federal 
     assets in partnership with a non-Federal entity, the head of 
     such agency shall undertake an analysis of the proposed 
     arrangement or transaction, which provides that any Federal 
     real property, financial capital or other resources committed 
     to the transaction are not placed at unreasonable financial 
     risk or legal jeopardy.
       ``(4) Other Authorities.--The authority under this 
     subsection shall not be construed to affect any other 
     authority of any agency to outlease property or to otherwise 
     make property available for any reason.
       ``Sec. 217. Forms of Consideration.--Notwithstanding any 
     other provision of law, the forms of consideration received 
     from an enhanced asset management tool as described in 
     section 216 may include cash or cash equivalents, in-kind 
     assets, services, or any combination thereof.

[[Page 12873]]

       ``Sec. 218. Transactional Reports.--For those transactions 
     authorized under section 216 involving the sale, exchange or 
     outlease to a non-Federal source of any asset valued in 
     excess of $2 million at the time of the transaction, the head 
     of the landholding agency sponsoring the transaction shall 
     submit the business plan required by subsection 215(b)(3) to 
     the Office of Management and Budget and to the appropriate 
     Committees of the United States Senate and the House of 
     Representatives at least 30 calendar days prior to final 
     execution of such transaction. The $2 million reporting 
     threshold in this subsection may be adjusted upward or 
     downward by the Administrator to reflect the annual 
     inflation/deflation factor as determined by the Department of 
     Commerce Consumer Price Index.
       ``Sec. 219. Annual Reports.--The head of each landholding 
     agency shall include a list of all transactions using 
     enhanced asset management tools under section 216 during the 
     previous fiscal year with the materials the agency annually 
     submits under section 3515 of Title 3 1, United States 
     Code.''
       Sec. 402. Section 321 of the Act of June 30, 1932, 47 Stat. 
     412 (40 U.S.C. Sec. 303b), is repealed.
       Sec. 403. Subsection 203(b) of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 484(b)), is amended to read as follows:
       ``(b)(1) The care and handling of surplus personal 
     property, pending its disposition, and the disposal of such 
     property, may be performed by the General Services 
     Administration or, when so determined by the Administrator, 
     by the executive agency in possession thereof or by any other 
     executive agency consenting thereto.
       ``(2) The responsibilities and authorities for the care and 
     handling of surplus real and related personal property, 
     pending its disposition, and for the disposal of such 
     property, provided to the Administrator elsewhere in this 
     Act, are hereby transferred to the head of the landholding 
     agency. The head of the landholding agency may request the 
     General Services Administration or any other entity to 
     provide disposal services, as long as the landholding agency 
     retains the authority to make disposal decisions and agrees 
     to reimburse the related disposal costs. The head of the 
     affected landholding agency may also delegate the authority 
     to manage the disposal process (including responsibility for 
     the related disposal costs) and to make disposal decisions to 
     the General Services Administration. In the latter event, the 
     landholding agency foregoes any claim to any related disposal 
     proceeds pursuant to section 204 of this Act and the General 
     Services Administration, after deducting any disposal 
     expenses incurred, shall deposit any net proceeds in the 
     Treasury. The Administrator of General Services retains the 
     authority to promulgate general policies and procedures for 
     disposing of such property. These policies and procedures 
     shall require that the General Services Administration:
       (A) notify the agencies responsible elsewhere in this Act 
     for sponsoring public benefit conveyances of the availability 
     of excess property as soon as it has been declared excess and 
     solicit their input on whether their public benefit 
     represents the highest and best use of such property;
       (B) serve as the central point of contact for agencies, 
     prospective donees, and the public on the availability of 
     surplus property as soon as it has been declared surplus;
       (C) assure that the agencies with the authority to make 
     disposal decisions give full consideration to the public 
     benefit uses of surplus Federal property in making their 
     disposal decisions; and
       (D) serve as a clearinghouse for information on all phases 
     of the surplus property disposal process, including appeals 
     from sponsoring agencies and prospective donees that 
     insufficient consideration was given to public benefit 
     donations.

     TITLE 5. INCENTIVES FOR REAL AND PERSONAL PROPERTY MANAGEMENT 
                              IMPROVEMENT

       Sec. 501. Section 204 of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 485), is amended as follows:
       (a) in paragraph (2) of subsection (h) by striking ``(b)'' 
     and inserting in lieu thereof ``(c)'', and by striking the 
     phrase ``, to the extent provided in appropriations Acts,'';
       (b) by revising subsection (i) to read as follows:
       ``Federal agencies may retain from the proceeds of the sale 
     of personal property amounts necessary to recover, to the 
     extent practicable, the full costs, direct and indirect, 
     incurred by the agencies in disposing of such property 
     including but not limited to the costs for warehousing, 
     storage, environmental services, advertising, appraisal, and 
     transportation. Such amounts shall be deposited into an 
     account available for such expenses without regard to fiscal 
     year limitations. Amounts that are not needed to pay such 
     costs shall be transferred at least annually to the general 
     fund or to a specific account in the Treasury as required by 
     statute.'';
       (c) by redesignating subsections (c), (d), (e), (f), (g), 
     (h) and (i), as subsections (d), (e), (f), (g), (h), (i) and 
     (j), respectively; and
       (d) by striking subsections (a) and (b) and by inserting in 
     lieu thereof the following subsections (a), (b), and (c):
       ``Sec. 204. Proceeds From Transfer or Disposition of 
     Property--
       ``(a)(1) Agency retention of proceeds from real property.--
     Proceeds resulting from the transfer or disposition of real 
     and related property under this Title shall be credited to 
     the fund, account or appropriation of the agency which made 
     the property available and shall be treated as provided in 
     subsections (b) and (c) of this section.
       ``(2) Proceeds from personal property.--Proceeds from any 
     transfer of excess personal property to a Federal agency or 
     from any sale, lease, or other disposition of surplus 
     personal property shall be treated as prescribed in 
     subsection (j) or permitted by law or otherwise.
       ``(3) Other proceeds.--All proceeds under this title not 
     deposited or credited to a specific agency account, shall be 
     covered into the Treasury as miscellaneous receipts except as 
     provided in subsections (d), (e), (f), (g), (h), (i) and (j) 
     of this section or permitted by law or otherwise.
       ``(b) Monetary Proceeds to Agency Capital Asset Accounts.--
     Monetary proceeds received by agencies from the transfer or 
     disposition of real and related personal property shall be 
     credited to an existing account or an account to be 
     established in the Treasury to pay for the capital 
     expenditures of the particular agency making the property 
     available, which account shall be known as the agency's 
     capital asset account. Subject to subsection (c), any amounts 
     credited or deposited to such account under this section, 
     along with such other amounts as may be appropriated or 
     credited from time to time in annual appropriations acts, 
     shall be devoted to the sole purpose of funding that agency's 
     capital asset expenditures, including any expenses necessary 
     and incident to the agency's real property capital 
     acquisitions, improvements, and dispositions, and such funds 
     shall remain available until expended, in accordance with the 
     agency's asset management plan as required in Section 214, 
     without further authorization: Provided, That monies from an 
     exchange or sale of real property, or a portion of a real 
     property holding, under subsection 216(b) of this Act shall 
     be applied only to the replacement of that property or to the 
     rehabilitation of the portion of that real property holding 
     that remains in Federal ownership.''.
       ``(c) Transactional and Other Costs.--Agencies may be 
     reimbursed, from the monetary proceeds of real property 
     dispositions or from other available resources including from 
     the agency's capital asset account, the full costs, direct 
     and indirect, to the agency of disposing of such property, 
     including but not limited to the costs of site remediation or 
     other environmental services, relocating affected tenants and 
     occupants, advertising, surveying, appraisal, brokerage, 
     historic preservation services, title insurance, document 
     notarization and recording services and the costs of managing 
     leases and providing necessary services to the lessees.''.
       Sec. 502. Nothing in Act shall be construed to repeal or 
     supersede any other provision of Federal law directing the 
     use of proceeds from specific real property transactions or 
     directing how or where a particular Federal agency is to 
     deposit, credit or use the proceeds from the sale, exchange 
     or other disposition of Federal property except as expressly 
     provided for herein.
       Sec. 503. (a) Section 2(a) of the Land and Water 
     Conservation Act of 1965 as amended (16 U.S.C. Sec. 4601-
     5(a)), is superseded only to the extent that the Federal 
     Property and Administrative Services Act of 1949, as amended, 
     or a provision of this Act, provide for an alternative 
     disposition of the proceeds from the disposal of any surplus 
     real property and related personal property subject to this 
     Act, or the disposal of any interest therein.
       (b) Subsection 3302(b) of Title 31, United States Code, is 
     superseded only to the extent that this Act or any other Act 
     provides for the disposition of money received by the 
     Government.
       Sec. 504. For purposes of implementing Title V of this Act, 
     the following shall apply:
       (a) For fiscal years 2001 through 2005, OMB shall allocate 
     by agency a prorata share of the baseline estimate of total 
     surplus real property sales receipts transferred to the Land 
     and Water Conservation Fund that were contained in the 
     President's Budget for Fiscal year 2001, made pursuant to 
     section 1109 of title 31 U.S. Code. OMB shall notify the 
     affected agencies and Appropriation Committees of the U.S. 
     House of Representatives and Senate in writing of this 
     allocation within 30 days of enactment of this Act and shall 
     not subsequently revise the allocation.
       (b) On September 30 of each fiscal year, each agency shall 
     transfer to the Treasury an amount equal to its allocation 
     for that fiscal year, out of the proceeds realized from any 
     sales of the agency's surplus real property assets during 
     that fiscal year.
       (c) If an agency's actual sale proceeds in any fiscal year 
     are less than the amount allocated to it by OMB for that 
     fiscal year, the agency shall transfer all of its sale 
     proceeds to the Treasury, and its allocation for the 
     subsequent fiscal year shall be increased by the difference.
       (d) On September 30, 2005, if an agency has transferred 
     less sale proceeds to the Treasury than its total allocation 
     for the five

[[Page 12874]]

     years, the agency shall transfer the difference out of any 
     other funds available to the agency.

         TITLE 6. STREAMLINED AND ENHANCED DISPOSAL AUTHORITIES

       Sec. 601. (a) Section 203 of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 484), is amended in paragraph (k)(3) as follows--
       (1) by striking ``or municipality'' and inserting in lieu 
     thereof ``municipality, or qualified nonprofit organization 
     established for the primary purpose of preserving historic 
     monuments''; and
       (2) by inserting after the first sentence ``Such property 
     may be conveyed to a nonprofit organization only if the 
     State, political subdivision, instrumentalities thereof, and 
     municipality in which the property is located do not request 
     conveyance under this section within thirty days after notice 
     to them of the proposed conveyance by the Administrator to 
     that nonprofit organization.''.
       (b) Section 203 of the Federal Property and Administrative 
     Services Act of 1949, as amended (40 U.S.C.Sec. 484), is 
     amended by revising paragraph (k)(4)(C) to read as follows--
       ``(C) the Secretary of the Interior, in the case of 
     property transferred pursuant to the surplus Property Act of 
     1944, as amended, and pursuant to this Act, to States, 
     political subdivisions, and instrumentalities thereof, and 
     municipalities for use as a public park or public recreation 
     area, and to State, political subdivisions, and 
     instrumentalities thereof, municipalities, and nonprofit 
     organizations for use as an historic monument for the benefit 
     of the public; or''.
       Sec. 602. (a) Section 203 of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 484), is amended in subsection (e) as follows--
       (1) by striking subparagraphs (3)(A), (3)(B), (3)(C) and 
     (3)(E);
       (2) by redesignating subparagraph (3)(D) and subparagraphs 
     (3)(F) through (3)(I), as subparagraphs (3)(A) through 
     (3)(E), respectively;
       (3) by amending redesignated subparagraph (3)(E) to read as 
     follows:
       ``(E) otherwise authorized by this Act or other law or with 
     respect to personal property deemed advantageous to the 
     Government.''; and
       (4) by amending subparagraph (6)(A) to read as follows:
       ``(6)(A) An explanatory statement shall be prepared of the 
     circumstances of each disposal by negotiation of any real 
     property that has an estimated fair market value in excess of 
     the threshold value for which transactional reports are 
     required under Section 218.''; and
       (5) by deleting subparagraphs (6)(C) and (6)(D).
       (b) Section 203 of the Federal Property and Administrative 
     Services Act of 1949, as amended, is further amended by 
     adding to the end thereof the following new subsection:
       ``(s) The authority of any department, agency, or 
     instrumentality of the executive branch or wholly owned 
     Government corporation to convey or give surplus real and 
     related personal property for public airport purposes under 
     Subchapter II of Title 49, United States Code, shall be 
     subject to the requirements of this Act, and any surplus real 
     property available for conveyance under that subchapter shall 
     first be made available to the Administrator for disposal 
     under this section, including conveyance for any public 
     benefit purposes, including public airport use, as the 
     Administrator, after consultation with the affected agencies, 
     deems advisable.''.
       Sec. 603. Subsection 201(c) of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 481(c)), is revised to read as follows:
       ``(c) In acquiring personal property or related services, 
     or a combination thereof, any executive agency, under 
     regulations to be prescribed by the Administrator, subject to 
     regulations prescribed by the Administrator for Federal 
     Procurement Policy pursuant to the Office of Federal 
     Procurement Policy Act (41 U.S.C. Sec. 401 et seq.), may 
     exchange or sell personal property and may apply the exchange 
     allowance or proceeds of sale in such cases in whole or in 
     part payment for similar property or related services, or a 
     combination thereof, acquired: Provided, That any transaction 
     carried out under the authority of this subsection shall be 
     evidenced in writing. Sales of property pursuant to this 
     subsection shall be governed by subsection 203(e) of this 
     title, and shall be exempted from the provisions of section 5 
     of Title 41.''.
       Sec. 604. Subsection 202(h) of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 483(h)), is amended to read as follows:
       ``(h) The Administrator may authorize the abandonment, 
     destruction, or other disposal of property which has no 
     commercial value or of which the estimated cost of continued 
     care and handling would exceed the estimated fair market 
     value.''.
       Sec. 605. Subsection 203(j) of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     Sec. 484(j)), is further amended as follows:
       (a) Paragraph (j)(1) is amended--
       (1) by striking the phrase ``the fair and equitable 
     distribution, through donation,'' and inserting in lieu 
     thereof ``donation on a fair and equitable basis''; and
       (2) by striking ``paragraphs (2) and (3)'' and inserting in 
     lieu thereof ``paragraph (2)''.
       (b) Paragraph (j)(2) is deleted.
       (c) Paragraph (j)(3) is renumbered (j)(2) and amended as 
     follows:
       (1) by deleting the introductory paragraph and inserting in 
     lieu thereof the following:
       ``(2) The Administrator shall, pursuant to criteria which 
     are based on need and utilization and established after such 
     consultation with State agencies as is feasible, allocate 
     surplus personal property among the States on a fair and 
     equitable basis, taking into account the condition of the 
     property as well as the original acquisition cost thereof, 
     and transfer to the State agency property selected by it for 
     purposes of donation within the State--'';
       (2) in subparagraph (B) by--
       (A) deleting ``providers of assistance to homeless 
     individuals, providers of assistance to families or 
     individuals whose annual incomes are below the poverty line 
     (as that term is defined in section 673 of the Community 
     Services Block Grant Act),'';
       (B) striking out ``schools for the mentally retarded, 
     schools for the physically handicapped'' and by inserting in 
     lieu thereof ``schools for persons with mental or physical 
     disabilities'';
       (C) striking the word ``and'' before ``libraries''; and
       (D) inserting ``and educational activities identified by 
     the Secretary of Defense as being of special interest to the 
     Armed Services,'' following the word ``region,''; and
       (3) by adding a new subparagraph (C) to read as follows:
       ``(C) to nonprofit institutions or organizations which are 
     exempt from taxation under section 501 of Title 26, and which 
     have for their primary function the provision of food, 
     shelter, or other necessities to homeless individuals or 
     families or individuals whose annual income is below the 
     poverty line (as that term is defined in section 673 of the 
     Community Services Block Grant Act) for use in assisting the 
     poor and homeless.''.
       (d) Paragraph (j)(4) is renumbered (j)(3) and amended as 
     follows:
       (1) in subparagraph (C)(ii) by inserting before the period 
     at the end thereof the following: ``: Provided, That such 
     requirement shall not apply to property identified by the 
     Administrator in subparagraph (E) of this paragraph as 
     property for which no terms, conditions, reservations, or 
     restrictions shall be imposed.'';
       (2) by deleting subparagraph (E) and inserting the 
     following new paragraph:
       ``(E) The State plan of operation shall provide that the 
     State agency may impose reasonable terms, conditions, 
     reservations, and restrictions on the use of property to be 
     donated under paragraph (2) of this subsection and shall 
     impose such terms, conditions, reservations, and restrictions 
     as required by the Administrator. The Administrator shall 
     determine the condition, age, value, or cost of property for 
     which no terms, conditions, reservations or restrictions 
     shall be imposed and for property so identified, title shall 
     pass to the recipient immediately upon transfer by the State 
     agency. If the Administrator finds that an item or items have 
     characteristics that require special handling or use 
     limitations, the Administrator may impose appropriate 
     conditions on the donation of such property.''.
       (e) Paragraph (j)(5) is renumbered (j)(4).
       Sec. 606. (a) Section 501 of the Stewart B. McKinney 
     Homeless Assistance Act, as amended, and as codified at 
     section 11411 of title 42, United States Code, is amended as 
     follows:
       (1) in the first sentence of subsection (a), by inserting 
     before the period the following: ``, and that have not been 
     previously reported on by an agency under this subsection'';
       (2) in the second sentence of subsection (a), by inserting 
     after ``to the Secretary'' the following: ``, which shall not 
     include information previously reported on by an agency under 
     this subsection'';
       (3) in subsection (b)(1), (c)(1)(A), and (c)(2)(A), by 
     striking ``45'' and inserting ``30'';
       (4) in subsection (c)(1)(A)(i), by inserting after ``(a)'' 
     the following: ``that have not been previously published'';
       (5) in subsection (c)(1)(A)(ii), by inserting after 
     ``properties'' the following: ``which have not been 
     previously published'';
       (6) by striking subsections (c)(1)(D) and (c)(4);
       (7) in subsections (d)(1) and (d)(2), by striking ``60 and 
     inserting ``90'';
       (8) in subsection (d)(4)(A), by striking ``after the 60-day 
     period described in paragraph (1) has expired.'' and 
     inserting ``during the 90-day period described in paragraph 
     (1).'' and by striking the remainder of the paragraph;
       (9) in subsection (e)(3), by inserting the following 
     sentence immediately after the first sentence: ``The 
     Secretary of Health and Human Services shall give a 
     preference to applications that contain a certification that 
     their proposal is consistent with the local Continuum of Care 
     strategy for homeless assistance.'';
       (10) in subsection (h) heading, by striking ``APPLICABILITY 
     TO PROPERTY UNDER BASE CLOSURE PROCESS'' and inserting 
     ``EXEMPTIONS''; and
       (11) in subsection (h), by adding the following new 
     paragraph at the end:

[[Page 12875]]

       ``(3) The provisions of this section shall not apply to 
     buildings and property that are--
       (A) in a secured area for national defense purposes; or
       (B) inaccessible by road and can be reached only by 
     crossing private property.''.
       (b) Within 30 days of the date of enactment of this 
     section, the Secretary of Housing and Urban Development shall 
     survey landholding agencies to determine whether the 
     properties included in the last comprehensive list of 
     properties published pursuant to section 501(c)(1)(A) of the 
     Stewart B. McKinney Homeless Assistance Act remain available 
     for application for use to assist homeless. The Secretary 
     shall publish in the Federal Register a list of all such 
     properties. Such properties shall remain available for 
     application for use to assist the homeless in accordance with 
     sections 501(d) and 501(e) of such Act (as amended by 
     subsection (a) of this section) as if such properties had 
     been published under section 501(c)(1)(A)(ii) of such Act.

                         TITLE 7. MISCELLANEOUS

       Sec. 701. Scope and Construction.--The authorities granted 
     by this Act to the heads of Federal agencies for the 
     management of real and personal property and the conduct of 
     transactions involving such property, including the 
     disposition of the proceeds therefrom, shall be in addition 
     to, and not in lieu of, any authorities provided in any law 
     existing on the date of enactment hereof. Except as expressly 
     provided herein, nothing in this Act shall be construed to 
     repeal or supersede any such authorities.
       Sec. 702. Severability.--Although this Act is intended to 
     be integrated legislation, should any portion or provision of 
     this Act be found to be invalid or otherwise unenforceable by 
     a court of competent jurisdiction, such portion or portions 
     of this Act shall be considered independent and severable for 
     all other provisions of this Act and such invalidity shall 
     not, by itself, invalidate any other provisions of this Act, 
     which remaining provisions shall have the full force and 
     effect of law.
       Sec. 703. Judicial Review.--Any determination or any asset 
     management decision by an authorized agency official to 
     transfer, outlease, sell, exchange or dispose of Federal real 
     property or an interest therein in accordance with applicable 
     law shall be at the sole discretion of the authorized agency 
     official and shall not be the basis of any suit, claim or 
     action.
       Sec. 704. No Waiver.--Nothing in this Act should be 
     construed to limit or waive any right, remedy, immunity, or 
     jurisdiction of any Federal agency or any claim, judgement, 
     lien or benefit due the United States of America.
       Sec. 705. Effective Date.--This Act and the amendments made 
     by its provisions shall be effective upon enactment except as 
     otherwise specifically provided for herein.

 Mr. LIEBERMAN. Mr. President, today, along with Senator 
Thompson, I am introducing a bill at the request of the administration 
to amend the Federal Property and Administrative Services Act of 1949. 
The bill is designed to improve the federal government's role in 
managing both its personal and real property. By granting agencies 
enhanced tools to handle their assets, the bill's goal is to bring 
federal asset management into the 21st century. I invite comments on 
the administration's proposal and look forward to reviewing 
them.
                                 ______
                                 
      By Mr. SARBANES (for himself and Ms. Mikulski):
  S. 2806. A bill to amend the National Housing Act to clarify the 
authority of the Secretary of Housing and Urban Development to 
terminate mortgagee origination approval for poorly performing 
mortgagees; to the Committee on Banking, Housing, and Urban Affairs.


                        CREDIT WATCH ACT OF 2000

 Mr. SARBANES. Mr. President, today I am introducing, ``Credit 
Watch,'' a bill that will authorize the Federal Housing Administration 
(FHA) to identify lenders who have excessively high early default and 
claim rates and terminate their origination approval. This legislation 
is necessary to protect the FHA fund and take action against lenders 
who are contributing to the deterioration of our neighborhoods.
  A recent rash of FHA loan defaults have led to foreclosures and 
vacant properties in a number of cities around the country. In 
Baltimore, the effects of high foreclosure rates are acute. In some 
neighborhoods, there are numerous foreclosed homes, now abandoned, 
within just a few blocks of each other. This can often be the beginning 
of a neighborhood's decline. It creates a perception that the property 
and the neighborhood is not highly valued. In turn, these neighborhoods 
become physically deteriorated and often attract criminal activity.
  It's like a rotten apple in a barrel. The rundown appearance of one 
home spreads to the surrounding neighborhood. Neighborhoods that are 
struggling to stabilize and revitalize find their efforts undermined by 
the presence of abandoned homes.
  The Department of Housing and Urban Development (HUD), community 
activists, and local law makers have come together to examine the loans 
being made in neighborhoods with high foreclosure rates.
  In Baltimore and other cities, these groups found that careless 
lenders are offering FHA insured loans to families who cannot afford to 
pay them back. Early default or claim of these loans frequently leads 
to foreclosure of the home. A foreclosed property can easily turn into 
an uninhabited home, which can either begin or continue a cycle of 
decline.
  In an effort to reduce the number of loans that end in foreclosure, 
the FHA developed several new oversight methods. One of which is 
``Credit Watch.''
  ``Credit Watch'' is an automated system that compares the number of 
early foreclosures and claims of lenders in the same area. This 
legislation authorizes FHA to revoke the origination approval of 
lenders who have significantly higher rates of early defaults and 
claims than the other lenders in the same area. FHA is currently 
targeting lenders with default rates over 300% of the area average. 
They estimate that in Baltimore this threshold would allow them to 
terminate the origination privileges of three major lenders that 
account for 40% of early defaults and claims.
  The legislation accounts for differing regional economies by ensuring 
that lenders are only compared to others making loans in the same 
community. It also provides a manner by which terminated lenders may 
appeal the decision of the FHA, if they believe there are mitigating 
factors that may justify higher rates.
  When lenders make loans with no regard for the consumer or the health 
of the community, the FHA must be able to take action in a timely 
manner. This practice is a costly abuse of the FHA insurance fund. 
Quick action not only protects the health of the Mutual Mortgage 
Insurance (MMI) fund, but it protects neighborhoods from the 
detrimental effects of high vacancy rates and consumers from the pain 
of foreclosure and serious damage to their credit.
  Lenders that offer loans to individuals who cannot afford them should 
not be able to continue making those loans. It is a bad deal for 
taxpayers. It is a bad deal for neighborhoods. It is a bad deal for the 
families who take out the loan.
  Credit Watch is an effective and efficient way that the FHA can 
prevent these unfortunate foreclosures from happening. While we need to 
address the larger issue of predatory lending in our communities, 
``Credit Watch'' is an obvious and immediate solution to one part of 
the problem.
                                 ______
                                 
      By Mr. BREAUX (for himself, Mr. Frist, Mr. Kerrey, Mr. Bond, Mr. 
        Santorum, Ms. Landrieu, Mr. Ashcroft, and Ms. Collins):
  S. 2807. A bill to amend the Social Security Act to establish a 
Medicare Prescription Drug and Supplemental Benefit Program and to 
stabilize and improve the Medicare+Choice program, and for other 
purposes; to the Committee on Finance.


        medicare prescription drug and modernization act of 2000

 Mr. FRIST. Mr. President, I am pleased to be here today to 
join Senators Breaux, Kerrey, Bond, Santorum, Landrieu, Ashcroft, and  
Collins in introducing the ``Medicare Prescription Drug and 
Modernization Act of 2000''--a truly bipartisan effort to address the 
real need to provide seniors the prescription drugs they deserve and 
strengthen and improve the Medicare program overall.
  Last fall, I introduced the ``Medicare Preservation and Improvement 
Act of 1999'', with Senators Breaux, Kerrey, and  Hagel. This was the 
first bipartisan attempt to comprehensively reform Medicare in the 
program's 35 year

[[Page 12876]]

history. When Medicare was first enacted in 1965, it had the goal of 
providing seniors necessary acute health care that would otherwise have 
been unaffordable. However today's health care delivery systems are far 
more advanced than the program's creators ever imagined. Our goal over 
the past year was to create an atmosphere for further discussion on 
ways to strengthen and improve the Medicare program, including 
proposals for an outpatient prescription drug benefit. Today, we take 
the first step in the right direction--a direction to bring Medicare in 
line with the benefits and delivery systems commonplace in the 21st 
century today.
  Building on last year's bill and the findings of the Bipartisan 
Commission on the Future of Medicare, the ``Medicare Prescription Drug 
and Modernization Act of 2000'' takes the first steps towards long-term 
Medicare reform while adding a much needed outpatient prescription drug 
benefit to the program. Unlike in 1965, prescription drugs are integral 
to the delivery of health care and treating diseases prevalent among 
the elderly population. We must include a prescription drug benefit in 
the Medicare system. However, we must also address some of the other 
problems facing Medicare.
  For instance, we must recognize the need to update the total benefit 
package and increase the flexibility of the program. Today's Medicare 
coverage is inadequate, covering only 53 percent of beneficiary's 
average health costs, and still does not include coverage for many 
preventive services, eyeglasses, or dental care, much less prescription 
drugs.
  Medicare is also facing a doubling of beneficiaries over the coming 
decades. Today, there are 39 million Medicare beneficiaries, but within 
the next 10 years, 77 million baby boomers will begin entering the 
program. Our ability to effectively respond to this increased demand is 
further limited by the declining number of workers paying payroll 
taxes, which fund Medicare obligations each year, as the number of 
workers per retiree has continued to decline, from 4.5 in 1960 to 3.9 
today. This figure is expected to further decline to 2.8 in 2020.
  We all know that Medicare spending consumes much of the federal 
budget. But this will only get worse. Currently absorbing nearly 12 
percent of the federal outlays, Medicare will balloon to 25 percent of 
the federal budget by 2030. The program, which relies on general 
revenues to pay for close to 40 percent of total program expenditures 
today, will continue to use an increasing share of general revenues, 
leaving fewer and fewer federal dollars available to support other 
federal programs.
  Finally, with over hundred thousand pages of HCFA regulations 
governing Medicare, the program has become so bloated and heavily 
micro-managed that it cannot adopt to the daily advances in medicine 
and health care delivery. Even when life-saving diagnostic tests become 
available, such as a breakthrough prostate cancer-screening test that 
came on the market in the early 1990s, it takes years before they can 
be approved. Medicare has only recently begun reimbursing for prostate 
screening and only because a new law was passed to allow it.
  The very fact that Congress must past such laws illustrates perfectly 
the problem with a heavily micro-managed system. No government program 
can possibly keep up with the increasingly rapid rate at which new 
drugs and technologies are brought to the market. As a physician, I 
know that today, more than ever, access to lifesaving drugs and 
technology as they become available is the key to providing quality 
health care, and we must modernize Medicare to meet these demands.
  The need to modernize Medicare has never been more apparent. The 
measures included in the ``Medicare Prescription Drug and Modernization 
Act of 2000'' will provide seniors the option to choose the kind of 
health care coverage that best suit their individual needs, including 
enhanced benefits, outpatient prescription drug coverage, and 
protections against high out-of-pocket drug costs.
  The ``Medicare Prescription Drug and Modernization Act of 2000'' 
establishes that Competitive Medicare Agency (CMA), an independent, 
executive-branch agency to spearhead an advanced level of Medicare 
management and oversight--leaving behind the intransigent bureaucracy 
and outdated mindset infecting the program and instead guaranteeing 
seniors choice, health care security, and improved benefits and 
delivery of care. Modeled after the Social Security Administration, the 
CMA functions in a manner similar to the Office of Personnel 
Management, which has a 40-year track record of success in providing 
quality comprehensive health coverage for the millions of federal 
employees and their families through the Federal Employees Health 
Benefits Program.
  Vital to this bill is the Prescription Drug and Supplemental Benefit 
Program that provides beneficiaries outpatient prescription drugs and 
other additional benefits through new Medicare Prescription Plus plans 
offered by private entities or through Medicare+Choice plans. The drug 
benefit will provide, at a minimum, a standard prescription drug 
package consisting of a $250 deductible, 50 percent cost-sharing up to 
$2,100, and stop-loss protection at $6,000. Seniors are guaranteed this 
minimum benefits, but also have the choice of other drug benefit 
packages. I recognize more than anyone that a one-size-fits-all 
approach to health care does not work. It is important to pass along 
the same choices we, as members of Congress, have, Seniors deserve no 
less.
  We ensure that low-income beneficiaries receive necessary drug 
coverage by providing premium subsidies. Beneficiaries below 135 
percent of poverty, beneficiaries receive a 100 percent premium subsidy 
and 95 percent of all cost-sharing. Beneficiaries between 135% and 150 
percent of poverty receive premium subsidiaries on a sliding scale from 
a much as 100 percent to no less than 25 percent, and all 
beneficiaries, regardless of income, will receive a 25% premium 
subsidy. Since 39 percent of beneficiaries below 150 percent of poverty 
have no drug coverage, this provision alone will provide comprehensive 
drug coverage for over 5 million seniors and individuals with 
disabilities.
  We also address the high costs of drugs by ensuring that no 
beneficiary will ever pay retail prices for prescription drugs again. 
We do this through a prescription drug discount card program that 
passes on price discounts negotiated between pharmaceutical companies 
and insurers to beneficiaries. For example, today a senior may pay $100 
for a particular drug. Under the ``Medicare Prescription Drug and 
Modernization Act of 2000'', this senior would have access to the 
insurers negotiated rate of $70, but then would also receive an even 
further discount through coinsurance, reducing the total price of the 
drug by over 60 percent down to just $35.
  The ``Medicare Prescription Drug and Modernization Act of 2000'' 
modernizes Medicare by establishing a new competitive system under 
Medicare+Choice where plans bid for the costs of delivering care and 
compete with traditional Medicare based on benefits, price, and quality 
so that beneficiaries receive the highest-quality, affordable health 
care possible. Under this new system, plans are allowed maximum 
flexibility to reduce current beneficiary Part B premiums and cost-
sharing as well as offer new and additional benefits to beneficiaries, 
including outpatient prescription drug coverage.
  Finally, the ``Medicare Prescription Drug and Modernization Act of 
2000'', for the first time in Medicare's history provides lawmakers and 
the public a better measure for evaluating Medicare's financial health 
and establishes strong reporting requirements for the Medicare program 
as a whole.
  Medicare must be modernized to provide seniors integrated health care 
choices, including outpatient prescription drug coverage. This 
afternoon my colleagues and I have moved beyond the demagoguery and 
disinformation campaigns and have come together to propose bipartisan 
legislation that balances the very real need for outpatient 
prescription drug coverage with the need for meaningful modernizations. 
By moving forward on this legislation,

[[Page 12877]]

I believe we can truly provide choice and security for our Medicare 
beneficiaries to ensure their individual health care needs are met, 
today and well into the future.
                                 ______
                                 
      By Mr. DODD (for himself and Mr. DeWine):
  S. 2809. A bill to protect the health and welfare of children 
involved in research; to the Committee on Health, Education, Labor, and 
Pensions.


                   children's research protection act

  Mr. DODD. Mr. President, I rise today with my colleague from Ohio, 
Senator DeWine, to introduce important legislation to enhance the 
safety of our children. The Children's Research Protection Act will 
strengthen protections for children participating in research and also 
increase the number researchers expert in pediatric pharmacology.
  Three years ago, Senator DeWine and I were successful in enacting 
legislation to reverse a troubling statistic--the fact that only 20 
percent of drugs on the market have been tested specifically for their 
safety and efficacy in children. Our legislation, The Better 
Pharmaceuticals for Children Act, for the first time provided a 
incentive for drug companies to test their products for use with 
children. The results of that legislation have been overwhelming. In 
the 2 years since this initiative was started, drug manufacturers have 
launched more than 300 new pediatric studies of 127 drugs. In contrast, 
in the 5 years prior to enactment of our legislation, the industry 
conducted only 11 pediatric safety studies for drugs already on the 
market--11 studies in five years versus over 300 in just 2 years. The 
most immediate consequence of this surge in the industry's interest in 
testing their products in children is the rapid increase in the number 
of children being signed up to participate in research studies--more 
than 18,000 children will eventually be needed just for the 300 trials 
that have been proposed so far.
  While we're thrilled with the success of our legislation, it has 
forced us to take a hard look at the adequacy of the safety protections 
for children participating in research. All experimental treatments, by 
their very nature, contain some risk. Research involving children is no 
exception. Yet, despite the risks, each year thousands of parents agree 
to allow their children to participate in a clinical trial, either in 
hopes of improving their own health or the health of other children. In 
doing so, they place their trust in the expertise and ethics of the 
researchers and in strong oversight by the federal government. The vast 
majority of the time that trust is well-founded. But recent isolated 
incidents involving children harmed during clinical trials, as well as 
increasing concerns about the adequacy of federal oversight for 
clinical trials, generally point to the need to proactively address the 
issue of the safety of children in research.
  It is that need to be proactive that has led Senator DeWine and I to 
introduce the Children's Research Protection Act. This legislation will 
address critical safety issues in children's research by:
  (1) Requiring the Secretary of Health and Human Services (HHS) to 
review the current regulations for the protection of children 
participating in research and to clarify and update them to ensure the 
highest standards of safety.
  Requiring that all HHS funded and regulated research comply with 
these strengthened federal protections. (Currently research overseen by 
the Food and Drug Administration, but funded by private pharmaceutical 
companies, is not required to comply with the additional children's 
protections, although many pharmaceutical companies do so voluntarily.)
  (3) Requiring the 15 federal agencies that don't currently have 
special guidelines for children's research to develop them within 12 
months.
  (4) Asking the Secretary of HHS to review the adequacy of the IRB 
(Institutional Review Board) process for protecting children in 
clinical trials and to report to Congress within 6 months on the 
question of whether we should have a national board(s) to review 
adverse events arising out of research on children.
  (5) Increasing the number of researchers that are experts in 
conducting drug research with children by providing grants for 
fellowship training and creating a loan repayment program for pediatric 
drug researchers. Only 20 physicians complete clinical pharmacology 
speciality training programs each year--of these, only 2 or fewer 
specialize in pediatric pharmacology.
  We still have a long way to go to make sure that children are not an 
afterthought when it comes to drug research, but we can start by making 
sure that when they volunteer to help other children by participating 
in research, their safety is paramount. This measure prescribes a 
strong dose of safety for our children. It provides critically 
important safeguards and protections when it comes to pediatric 
medicine testing, allowing us to increase our knowledge of children's 
medication without increasing the danger to children.
  I am pleased to join Senator DeWine in this effort and I look forward 
to working with my colleague to pass this legislation.
  I ask unanimous consent that the attached letters and a copy of the 
bill be printed in the Record.
  There being no objection, the materials were ordered to be printed in 
the Record, as follows:

                                S. 2809

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Children's Research 
     Protection Act''.

     SEC. 2. FINDINGS, PURPOSES, AND DEFINITION.

       (a) Findings.--Congress makes the following findings:
       (1) Children are the future of the Nation and the 
     preservation and improvement of child health is in the 
     national interest.
       (2) The preservation and improvement of child health may 
     require the use of pharmaceutical products.
       (3) Currently only 1 out of 5 drugs on the market in the 
     United States have been approved for use by children. The 
     enactment of the provisions of the Food and Drug 
     Administration Modernization Act (Public Law 105-115) 
     relating to pediatric studies of drugs, however, is expected 
     to increase the pediatric testing of pharmaceuticals and thus 
     to increase the numbers of children involved in research.
       (4) Children are a vulnerable population and thus need 
     additional protections for their involvement in research 
     relative to adults. Yet, current Federal guidelines for the 
     protection of children involved in research have not been 
     updated since 1981, do not currently apply to Food and Drug 
     Administration-regulated research that is not Federally 
     funded, and have not been adopted by all Federal agencies 
     that conduct research involving children.
       (5) Currently, in the United States, there is a shortage of 
     pharmacologists trained to address the unique aspects of 
     developing therapies for children. There are fewer than 200 
     academic-based clinical pharmacologists in the United States, 
     of which 20 percent or fewer are pediatricians. Currently, 
     only 20 physicians complete clinical pharmacology specialty 
     training programs each year, and of these, only 2 or fewer 
     specialize in pediatric pharmacology.
       (b) Purposes.--It is the purpose of this Act to--
       (1) ensure the adequate and appropriate protection of 
     children involved in research by--
       (A) reviewing and updating as needed the Federal 
     regulations that provide additional protections for children 
     participating in research as contained in subpart D of part 
     45 of title 46, Code of Federal Regulations;
       (B) extending such subpart D to all research regulated by 
     the Secretary of Health and Human Services; and
       (C) requiring that all Federal agencies adopt regulations 
     for additional protections for children involved in research 
     that is conducted, supported, or regulated by the Federal 
     Government; and
       (2) ensure that an adequate number of pediatric clinical 
     pharmacologists are trained and retained, in order to meet 
     the increased demand for expertise in this area created by 
     the pediatric studies provisions of the Food and Drug 
     Administration Modernization Act (Public law 105-115), so 
     that all children have access to medications that have been 
     adequately and properly tested on children.
       (c) Definition.--In this Act, the term ``pediatric clinical 
     pharmacologist'' means an individual--
       (1) who is board certified in pediatrics; and
       (2) who has additional formal training and expertise in 
     human pharmacology.

     SEC. 3. REVIEW OF REGULATIONS.

       (a) Review.--By not later than 6 months after the date of 
     enactment of this Act, the

[[Page 12878]]

     Secretary of Health and Human Services shall have conducted a 
     review of the regulations under subpart D of part 45 of title 
     46, Code of Federal Regulations, considered any modifications 
     necessary to ensure the adequate and appropriate protection 
     of children participating in research, and report the 
     findings of the Secretary back to Congress.
       (b) Areas of Review.--In conducting the review under 
     subsection (a), the Secretary of Health and Human Services 
     shall consider--
       (1) the appropriateness of the regulations for children of 
     differing ages and maturity levels, including legal status;
       (2) the definition of ``minimal risk'' and the manner in 
     which such definition varies for a healthy child as compared 
     to a child with an illness;
       (3) the definitions of ``assent'' and ``permission'' for 
     child clinical research participants and their parents or 
     guardians and of ``adequate provisions'' for soliciting 
     assent or permission in research as such definitions relate 
     to the process of obtaining the informed consent of children 
     participating in research and the parents or guardians of 
     such children;
       (4) the definitions of ``direct benefit to the individual 
     subjects'' and ``generalizable knowledge about the subject's 
     disorder or condition'';
       (5) whether or not payment (financial or otherwise) may be 
     provided to a child or his or her parent or guardian for the 
     participation of the child in research, and if so, the amount 
     and type given;
       (6) the expectations of child research participants and 
     their parent or guardian for the direct benefits of the 
     child's research involvement;
       (7) safeguards for research involving children conducted in 
     emergency situations with a waiver of informed assent;
       (8) parent and child notification in instances in which the 
     regulations have not been complied with;
       (9) compliance with the regulations in effect on the date 
     of enactment of this Act, the monitoring of such compliance, 
     and enforcement actions for violations of such regulations; 
     and
       (10) the appropriateness of current practices for 
     recruiting children for participation in research.
       (c) Consultation.--In conducting the review under 
     subsection (a), the Secretary of Health and Human Services 
     shall consult broadly with experts in the field, including 
     pediatric pharmacologists, pediatricians, bioethics experts, 
     clinical investigators, institutional review boards, industry 
     experts, and children who have participated in research 
     studies and the parents or guardians of such children.
       (d) Consideration of Additional Provisions.--In conducting 
     the review under subsection (a), the Secretary of Health and 
     Human Services shall consider and, not later than 6 months 
     after the date of enactment of this Act, report back to 
     Congress concerning--
       (1) whether the Secretary should establish national data 
     and safety monitoring boards to review adverse events 
     associated with research involving children; and
       (2) whether the institutional review board oversight of 
     clinical trials involving children is adequate to protect the 
     children.

     SEC. 4. REQUIREMENT FOR ADDITIONAL PROTECTIONS FOR CHILDREN 
                   INVOLVED IN RESEARCH.

       (a) In General.--Notwithstanding any other provision of 
     law, not later than 6 months after the date of enactment of 
     this Act, the Secretary of Health and Human Services shall 
     require that all research involving children that is 
     conducted, supported, or regulated by the Department of 
     Health and Human Services be in compliance with subpart D of 
     part 45 of title 46, Code of Federal Regulations.
       ``(b) Other Federal Agencies.--Not later than 12 months 
     after the date of enactment of this Act, all Federal agencies 
     shall have promulgated regulations to provide additional 
     protections for children involved in research.

     SEC. 5. GRANTS FOR PEDIATRIC PHARMACOLOGY.

       (a) In General.--The Secretary of Health and Human Services 
     shall award grants to qualified academic research 
     institutions and research networks with the appropriate 
     expertise to provide training in pediatric clinical 
     pharmacology, such as the Pediatric Pharmacology Research 
     Units of the National Institute of Child Health and Human 
     Development, and the Research Units of the National Institute 
     of Mental Health, to enable such entities to provide 
     fellowship training to individuals who hold an M.D. in order 
     to ensure the specialized training of pediatric clinical 
     pharmacologists.
       (b) Amount of Grant.--In awarding grants under subsection 
     (a), the Secretary of Health and Human Services shall ensure 
     that each grantee receive adequate amounts under the grant to 
     enable the grantee to fund at least 1 fellow each year for a 
     3-year period, at a total of $100,000 per fellowship per 
     year.
       (c) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each fiscal 
     year.

     SEC. 6. LOAN REPAYMENT PROGRAM REGARDING CLINICAL 
                   RESEARCHERS.

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

     ``SEC. 487F. LOAN REPAYMENT PROGRAM REGARDING PEDIATRIC 
                   PHARMACOLOGY.

       ``(a) In General.--The Secretary, acting through the 
     Director of the National Institutes of Health, shall 
     establish a program to enter into contracts with qualified 
     individuals who hold an M.D. under which such individuals 
     agree to undergo training in, and practice, pediatric 
     pharmacology, in consideration of the Federal Government 
     agreeing to repay, for each year of service as a pediatric 
     pharmacologist, not more than $35,000 of the principal and 
     interest of the educational loans of such individuals.
       ``(b) Application of Provisions.--The provisions of 
     sections 338B, 338C, and 338E shall, except as inconsistent 
     with subsection (a) of this section, apply to the program 
     established under subsection (a) to the same extent and in 
     the same manner as such provisions apply to the National 
     Health Service Corps Loan Repayment Program established in 
     subpart III of part D of title III.
       ``(c) Funding.--
       ``(1) Authorization of appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each fiscal 
     year.
       ``(2) Availability.--Amounts appropriated for carrying out 
     this section shall remain available until the expiration of 
     the second fiscal year beginning after the fiscal year for 
     which the amounts were made available.''.

     SEC. 7. EFFECTIVE DATE.

       The provisions of sections 5 and 6 shall take effect on the 
     date that is 6 months after the date of enactment of this 
     Act.
                                  ____

                                                      May 1, 2000.
       Dear Senator Dodd, I am addressing you today in support of 
     proposed senate bill, AAC: ``Children's Research Protection 
     Act'' ``. . . that will protect the health and welfare of 
     children involved in research.'' Additionally, this bill will 
     serve to ascertain whether specific guidelines should be 
     included in the Code of Federal Regulations for conducting 
     research with other vulnerable members of our society.
       As a long time advocate and provider of services for 
     persons with disabilities, families and children, my ongoing 
     research of the informed consent process as it relates to 
     clinical trials dates back to 1979. At that time, I focused 
     on some very complex issues of conducting medical research 
     with children who had mental retardation and were being 
     placed under state care.
       We are a wealthy and powerful nation and I believe that our 
     children are our greatest treasure. They deserve the highest 
     ethical standards that we can provide in all areas of their 
     lives including medical research and health. With the passage 
     of the Food and Drug Administration Modernization Act, we 
     have widened the field of pediatric clinical research, as 
     should be the case since until this time it has been 
     seriously lacking attention. Due to this surge in new 
     research, it is the opportune time to review federal 
     regulations that provide guidelines for clinical trials. We 
     need to close gaps and better define protections so that our 
     children will be offered the safest environment possible 
     during research efforts. Furthermore, the parents and 
     guardians of our children need to have every advantage and 
     possible opportunity afforded them so they can more fully 
     understand the experimental nature of any research before 
     giving consent.
       I am particularly excited that there are provisions in this 
     bill to help increase the number of pediatric clinical 
     pharmacologists and clinical investigators. This action will 
     strengthen the quality of research and treatment prescribed 
     for children.
       In closing, this bill helps reach a goal of optimal health 
     therapy for our children. As always, I appreciate the hard 
     work and time that has been expended to bring this issue 
     forward for legislative action. Thank you.
           Sincerely,
     Sheila S. Mulvey.
                                  ____

                                                      May 1, 2000.
       To Whom It May Concern: My name is David Krol and I am a 
     pediatrician in New Haven, Connecticut and a recent graduate 
     of pediatric residency training. I am writing in support of 
     the Children's Research Protection Act. As both a practicing 
     pediatrican and a child health researcher I am very 
     interested in studies that can improve the lives of children. 
     These studies, however, need to keep in mind the unique 
     biology of children as well as the developmental needs of 
     those who would participate in these studies. Children are 
     most definitely a unique population and require protections 
     in the research environment that are adequate, appropriate, 
     and different from adults. I am pleased to see that the 
     Children's Research and Protection Act addresses these 
     issues.
       In addition, as a recent graduate from medical school with 
     a debt burden hovering near $90,000, I am very aware of the 
     difficult decision that many medical school graduates face in 
     choosing a specialty. It can be a very difficult decision to 
     pursue further training and postpone the reduction of the 
     significant debt many of us face. Those who pursue pediatric 
     subspecialty training, including pediatric pharmacologists, 
     are no exception to

[[Page 12879]]

     this fact. I am very happy to see that the Children's 
     Research Protection Act provides both funding for pediatric 
     pharmacology positions and loan repayment for those who would 
     choose to further their education in such an important and 
     rewarding specialty. I hope we can extend this opportunity to 
     all who pursue pediatric subspecialty training. Pediatric 
     research requires not only experts in pediatric pharmacology 
     but also in the specific diseases that need to be researched.
       It is with great pleasure that I write this letter in 
     support of the Children's Research Protection Act. I ask for 
     your support concerning this important issue in child health.
           Sincerely,
     David M. Krol, MD.
                                  ____



                               American Academy of Pediatrics,

                                                      May 1, 2000.
     Hon. Christopher Dodd,
     U.S. Senate,
     Washington, DC.
     Hon. Mike DeWine,
     U.S. Senate,
     Washington, DC.
       Dear Senators Dodd and DeWine: The American Academy of 
     Pediatrics, representing 55,000 pediatricians throughout the 
     United States, is pleased to support the Children's Research 
     Protection Act. This legislation provides appropriate and 
     needed requirements for the inclusion of children in any 
     research conducted, supported, or regulated by the U.S. 
     Department of Health and Human Services.
       Protection of children in all research settings is an 
     imperative. Under your strong leadership, important advances 
     are being made in therapeutic research for children through 
     the Food and Drug Administration Modernization Act (FDAMA). 
     As a result of FDAMA, the increase in the number of new 
     clinical trials involving pediatric patients is 
     unprecedented. The Children's Research Protection Act 
     balances the need to continue and encourage more and better 
     clinical trials involving children while at the same time 
     ensuring that children are protected by requiring that all 
     research be in compliance with subpart D of part 45 of title 
     46, Code of Federal Regulations.
       This legislation also recognizes the importance of 
     increasing the number of pediatric clinical researchers 
     through the grant and loan repayment provisions. We strongly 
     believe that this kind of greater support is needed for all 
     pediatric research scientists. Still, we recognize that this 
     legislation specifically addresses FDAMA's significant 
     increase on the need for additional pediatric clinical 
     pharmacologists to conduct pediatric drug studies. The grant 
     program and loan repayment provisions of this bill are 
     important incentives to securing greater numbers of well-
     trained experts of pediatric clinical pharmacology, and can 
     hopefully be used as models for promoting a broader scope of 
     pediatric research.
       Throughout the years, you have been a strong and successful 
     advocate for children and their needs and the American 
     Academy of Pediatrics is grateful to you. The Children's 
     Research Protection Act will be an advance for children. We 
     offer our assistance as this bill moves through the Congress.
           Sincerely,
                                         Donald E. Cook, MD, FAAP,
     President.
                                  ____

                                       Pharmaceutical Research and


                                     Manufacturers of America,

                                    Washington, DC, June 26, 2000.
     Hon. Mike DeWine,
     U.S. Senate,
     Washington, DC.
     Hon. Christopher J. Dodd,
     U.S. Senate,
     Washington, DC.
       Dear Senators DeWine and Dodd: The Pharmaceutical Research 
     and Manufacturers of America (PhRMA) is pleased to offer its 
     support for The Children's Research Protection Act. This 
     piece of legislation addresses several key gaps towards the 
     successful implementation of Section 111 of the Food and Drug 
     Modernization Act of 1997 (FDAMA). This particular section of 
     FDAMA has had an enormous impact on the investigation of 
     important medicines in children. There has been a remarkable 
     increase in the number of medicines being studied by 
     pharmaceutical companies. The pharmaceutical industry has 
     proposed pediatric studies on 177 medicines and the FDA has 
     issued 145 written requests for studies as of May 1, 2000. In 
     the short time since its inception, the legislation has 
     fundamentally changed our approach to the study of medicines 
     in children and holds enormous promise for improved treatment 
     of sick children.
       Several issues have become apparent as we have embarked on 
     this new era of clinical investigation. There is clearly a 
     shortage of experienced pediatric clinical pharmacologists, 
     and those active in the field are generally quite senior. 
     There is thus a need for training the next generation of 
     investigators. If children are to receive the benefits of the 
     new medicines now under development, and of the exciting 
     therapies of the future, we will need highly qualified 
     pediatric investigators, knowledgeable in the safe, ethical, 
     and efficient study of medicines in children. The NICHD 
     Pediatric Pharmacology Research Unit network has been 
     instrumental in doing excellent studies in this area, and is 
     an exemplary training ground for young pediatric 
     investigators. It is vital that pediatric clinical 
     investigation be performed by our best physician/scientists, 
     in centers fully equipped to ensure a positive environment 
     for children who participate in studies, and to ensure that 
     all studies are done with the very highest standards of 
     clinical investigation and clinical care.
       It is also crucial, as the number of patients studied is 
     expanding, to re-emphasize the ethical standards for 
     conducting studies in children. The FDA has held meetings of 
     its Pediatric Pharmacology Subcommittee, and one issue of 
     concern was that the DHHS Guidelines in investigation of 
     vulnerable subjects, 45 CRF 46, Subpart D does not cover all 
     of the studies or investigative centers where studies of 
     medicines under FDAMA might be done. It is clear that it is 
     in the interest of children, and of the clinical 
     investigative process, that the provision be reviewed and 
     that all studies of medicines in children be covered under 
     this provision.
       To assure career paths for the new trainees in pediatric 
     clinical pharmacology, renewal of Section 111 of FDAMA is 
     particularly important since it assures continued pediatric 
     clinical investigation of new medicines. These two 
     legislative initiatives will have a major impact on the 
     future of the health of our children.
           Sincerely,
     Stephen P. Spielberg, MD, Ph.D.,
     Vice President, Pediatric Drug Development, Janssen Research 
     Foundation, Chair, Pediatric Task Force, PhRMA.
     Alan Goldhammer, Ph.D.,
       Associate Vice President, US Regulatory Affairs PhRMA.
                                  ____

                                     American Society for Clinical


                                Pharmacology and Therapeutics,

                                     Alexandria, VA, May 16, 2000.
     Hon. Christopher Dodd,
     U.S. Senate,
     Washington, DC.
       Dear Senator Dodd: The American Society for Clinical 
     Pharmacology and Therapeutics is pleased to express support 
     of the Children's Research Protection Act. Our society is the 
     largest academic society of clinical pharmacologists in the 
     United States and consists of member scientists, clinicians 
     and researchers from the academic, regulatory and industry 
     sectors including physicians, PhDs and PharmDs. We endorse 
     the great need for this legislation as a means of improving 
     the care of children by improving medications available to 
     them and by increasing the effective use of medicines that 
     are already on the market for children. In addition, we 
     believe that the provisions of this legislation will 
     ultimately lead to a reduced incidence of side effects and 
     the rate of medication errors in children.
       There are only two pediatric clinical pharmacology training 
     programs in this country, and it is estimated that the number 
     of practicing pediatric clinical pharmacologists may be as 
     few as 20. Consequently, it is little wonder that 80% of the 
     drugs already on the market have yet to be approved for use 
     in children. We must expand the cadre of well-trained 
     pediatric clinical pharmacologists who can focus their 
     scientific and clinical skills on assuring that children have 
     access to the same therapies readily available to adult 
     patients. Further, special studies are required regarding the 
     proper dosage and safe use of medications in children. The 
     ASCPT applauds your recognition of these needs, and we 
     believe that your bill includes the means to these ends: a 
     program to increase the number of funded pediatric clinical 
     pharmacology fellowships and a loan repayment program to 
     attract physicians to careers in clinical pharmacology will 
     improve the health of children through the safe use of 
     available medications.
       Thank you for your leadership on children's health care, 
     and please add the American Society for Clinical Pharmacology 
     and Therapeutics to the list of organizations endorsing the 
     Children's Research Protection Act.
           Yours sincerely,
                                         Raymond L. Woosley, M.D.,
     President.
                                  ____

                                           National Association of


                                         Children's Hospitals,

                                      Alexandria, VA, May 9, 2000.
     Hon. Christopher Dodd,
     U.S. Senate,
     Washington, DC.
     Hon. Mike DeWine,
     U.S. Senate, Washington, DC.
       Dear Senators Dodd and DeWine. On behalf of the National 
     Association of Children's Hospitals (N.A.C.H.), an 
     organization representing more than 100 freestanding 
     children's hospitals and pediatric departments of major 
     medical centers, I am writing to support the ``Children's 
     Research Protection Act.'' This legislation represents an 
     important step in assuring that children enrolled

[[Page 12880]]

     in federally supported and/or regulated research receive 
     important protections for their safety and well-being when 
     participating as research subjects.
       Children's hospitals are major centers for pediatric 
     clinical research--research supported by the federal 
     government, as well as private industry. The biomedical 
     research efforts undertaken by children's hospitals recognize 
     that ``children are not little adults'' and that their unique 
     needs must be taken into account when developing and 
     monitoring research protocols to address pediatric diseases 
     and conditions. With the relatively recent adoption of the 
     Food and Drug Administration Modernization Act (FDAMA), the 
     number of children enrolled in pediatric clinical trials is 
     rising. Therefore, it is especially important that a 
     consistent set of additional protections for children 
     participating in research, such as those included within 
     subpart D of part 45 of title 46, Code of Federal Regulations 
     (i.e. the ``common rule''), be reviewed and extended to all 
     federally conducted, supported, or regulated clinical 
     research.
       The ``Children's Research Protection Act'' also establishes 
     a grant program and loan repayment provision to help address 
     the expected shortage of pediatric clinical pharmacologists 
     and clinical investigators trained to develop therapies for 
     children. This is especially important given the increased 
     demand for expertise in this area created by the pediatric 
     studies provisions of FDAMA. In addition, we are hopeful that 
     such a model of grant and loan repayment can eventually be 
     replicated to provide added incentives to increase the 
     overall pediatric research workforce, such as is proposed in 
     Sen. Bond's ``Healthy Kids 2000 Act.''
       N.A.C.H. applauds your efforts for introducing this 
     important piece of legislation. Please feel free to contact 
     me if I can be of further assistance as this bill moves 
     through Congress.
           Sincerely,
                                            Lawrence A. McAndrews.

  Mr. DeWINE. Mr. President, I rise today to join my friend and 
colleague from Connecticut, Senator Dodd, in introducing the Children's 
Research Protection Act. This bill is a logical and necessary follow-up 
to the Better Pharmaceuticals for Children Act, which Senator Dodd and 
I got passed and enacted into law in 1997 as part of the FDA 
Modernization Act. This law created incentives for drug manufacturers 
for use by children. Since the law has been in place, more children 
than ever before are participating in clinical trials for drug testing.
  Mr. President, it is imperative that we test drugs for children--on 
children. There are several reasons that such testing is necessary. 
Children have different physical make-ups from adults, which means they 
metabolize drugs differently. They likely need different doses and 
different amounts of time between doses for medications to be safe and 
effective. Also, because the same disease can manifest itself very 
differently in children and adults, we need to thoroughly test the 
drugs that we are using for children to treat the same illness.
  As I noted already, since our Better Pharmaceuticals Act was enacted, 
we have seen a rapid increase in the number of children being enrolled 
in clinical trials. More than 18,000 children will be needed just for 
the 300 studies that have been proposed so far. Research has been 
completed and exclusivity granted on 22 drugs that were previously used 
for children without safety information, and more than 300 pediatric 
studies of 127 products are currently underway. Of those 22 drugs for 
which studies have been completed, eight drugs have already been re-
labeled to reflect, the new pediatric safety information.
  In contrast, in the five years prior to enactment of our Better 
Pharmaceuticals Act, only 11 studies to gather additional pediatric 
safety information about drugs already on the market were conducted--
that's 11 studies in five years versus over 125 in just two years since 
this legislation was enacted. The increase in pediatric studies is good 
news for children and parents and is certainly a welcome improvement at 
a time when only one in five drugs currently on the market in the 
United States has been approved for use by children.
  While we want to encourage better drug testing for children, we also 
need to ensure that strong federal protections are in place to protect 
children who participate in such research. Tragically, there are parts 
of the current law that do not protect children who participate in HHS 
federally-regulated research, unless it is also federally funded 
research. These federal protections for children also have not been 
updated since 1981, and have not been adopted by all of the federal 
agents that conduct research involving children.
  That's why the Children's Research Protection Act we are introducing 
would require the Secretary of Health and Human Services (HHS) to 
review the current regulations governing the protection of children 
participating in research and update them to ensure that the strongest 
federal protections exist for such children.
  Now, only HHS federally funded and federally regulated research has 
to comply with certain protections for children.
  Our bill also would extend research protections for children to all 
research regulated by the Secretary of HHS, even if it is not federally 
funded.
  Furthermore, our bill would require that all other federal agencies 
that conduct, support, or regulate research involving children must 
adopt regulations to provide greater protections for those children.
  Finally, our bill would address the shortage of pediatric clinical 
pharmacologists whose specialized expertise is essential in performing 
pediatric studies, because the bill would authorize grants to ensure 
that an adequate number of pediatric clinical pharmacologists and 
clinical investigators are trained and retained to meet the increased 
demand for expertise created by the Better Pharmaceuticals law. There 
are fewer than 200 academic-based clinical pharmacologists in the 
United States, of whom 20 percent are pediatricians. Moreover, the bill 
would authorize the Secretary of HHS to enter into loan repayment 
contracts with doctors who agree to train and practice in pediatric 
pharmacology.
  Mr. President, it is very important that we pass our legislation this 
year. While we have successfully encouraged better drug testing for 
children through the incentives in the ``Better Pharmaceuticals for 
Children Act,'' we must take the next step and ensure that strong 
federal protections are in place to protect the children who 
participate in such research.
  The children who are participating in clinical trials are medical 
pioneers. They will help to ensure that drugs used for children will be 
proven to be safe and appropriate for use in children. At the very 
least, we should make certain that strong federal safeguards exist to 
ensure their safety as they participate in these trials.
                                 ______
                                 
      By Mr. KERRY (for himself and Mr. DeWine):
  S. 2810. A bill to amend the Consumer Product Safety Act to confirm 
the Consumer Product Safety Commission's jurisdiction over child safety 
devices for handguns, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.


                THE CHILD HANDGUN INJURY PREVENTION ACT

  Mr. DeWINE. Mr. President, I rise today as an original cosponsor of 
the Child Handgun Injury Prevention Act being introduced by my friend 
and colleague from Massachusetts, Senator Kerry. I support this bill 
because I believe it will save lives.
  Recently, we have all witnessed a disturbing trend. Day after day 
after day, we see shocking news reports about children dying because 
they got their hands on a loaded, unlocked firearm. In 1999 alone, this 
was an almost daily occurrence. Last year, more than 300 children died 
in gun accidents. Most of these accidents occurred in a child's own 
home, or in the home of a close friend or relative--the very places 
where these children should feel the safest.
  Mr. President, the mixture of children and loaded firearms is deadly. 
An estimated 3.3 million children in the United States live in homes 
with firearms--firearms that are always or sometimes loaded and 
unlocked. I believe that the majority of parents with firearms believe 
they are being responsible about gun storage and other safety measures 
dealing with firearms. But, the sad fact is that some parents simply 
have a fundamental misunderstanding of a child's ability to access

[[Page 12881]]

and fire a gun, to distinguish between real and toy guns, to make good 
judgments about handling a gun, and to consistently follow rules about 
gun safety. These are children, after all, and we can't expect them to 
understand completely what is involved with handling a gun safely.
  Here's a startling fact: Nearly two-thirds of parents with school-age 
children who keep a gun in the home believe that the firearm is safe 
from their children. However, another study found that when a gun was 
in the home, 75 to 80 percent of first and second graders knew where 
the gun was kept.
  Many gun owners, state and local governments, as well as this Senate, 
have started to recognize the combustible relationship between children 
and loaded, accessible firearms. This recognition has led many gun 
owners to purchase gun safety locks to ensure the safe storage of their 
handguns. In some states, gun locks are required at the time handguns 
are purchased. Seventeen states have Child Firearm Access Prevention 
laws that permit prosecution of adults if their firearm is left 
unsecured and a child uses that firearm to harm themselves or others. 
And, also, the Senate passed an amendment to the juvenile justice bill 
last year that would require the use of gun safety locks.
  Despite the fact that gun owners are buying more firearm safety 
devices and governments are rushing to mandate their use, surprisingly 
there are no minimum safety standards for these devices. Currently, 
there are many different types of trigger locks, safety locks, lock 
boxes, and other devices available. And, there is a wide range in the 
quality and effectiveness of these devices. Some are inadequate to 
prevent the accidental discharge of the firearm or to prevent a child 
access to the firearm.
  As governments move toward mandated safety devices, it is crucial 
that consumers know whether or not the devices they are buying will 
actually keep children from harming themselves. If states are going to 
prosecute adults when a child uses a firearm, these gun owners should--
at the very least--have some peace of mind that their gun storage or 
safety lock device is adequate.
  The legislation I am introducing today with Senator Kerry would help 
responsible gun owners and parents know that the safety devices they 
buy are at least minimally adequate. This legislation just makes sense. 
It requires the Consumer Product Safety Commission (CPSC) to formulate 
minimum safety standards for gun safety locks and to ensure that only 
adequate locks meeting those standards are available for purchase by 
consumers. The standards to be used by the Commission require that gun 
safety locks are sufficiently difficult for children to deactivate or 
remove and that the safety locks prevent the discharge of the handgun 
unless the lock has been deactivated or removed.
  Mr. President, I would also like to note what this bill does not do. 
First of all, it does not give CPSC any say in standards of firearms or 
ammunition. In other words, it is not intended to regulate firearms, 
themselves, in any way whatsoever. Second, it would not mandate which 
type of gun lock device consumers use.
  As I said earlier, there are many different types of gun locks 
currently available. Some of these allow for easy access and use of 
firearms for adults should they decide that is important to them. Other 
devices are more cumbersome and do not provide quick and easy access. 
Gun owners would be free to decide what device is best for them. This 
legislation would have no effect on that issue. Finally, this 
legislation does not require the use of gun safety locks. While the 
Senate has already passed legislation to do this, if that language is 
removed in conference, this legislation will not affect that.
  As I have stated already, Mr. President, I believe that this 
legislation will save lives. But, more than that, this legislation will 
empower parents--parents who decide that they want to have a gun safety 
lock but are awash in a sea of different devices--to purchase only gun 
safety locks that provide adequate protection for their children. I 
urge my colleagues to join Senator Kerry and me in support of this 
bill.
                                 ______
                                 
      By Mr. DASCHLE (for himself and Mr. Conrad):
  S. 2811. A bill to amend the Consolidated Farm and Rural Development 
Act to make communities with high levels of out-migration or population 
loss eligible for community facilities grants; to the Committee on 
Agriculture, Nutrition, and Forestry.


        amending the consolidated farm and rural development act

  Mr. DASCHLE. 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. 2811

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

     SECTION 1. COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL 
                   COMMUNITIES WITH HIGH LEVELS OF OUT-MIGRATION 
                   OR LOSS OF POPULATION.

       (a) In General.--Section 306(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1926(a)) is amended by 
     adding at the end the following:
       ``(20) Community facilities grant program for rural 
     communities with high levels of out-migration or loss of 
     population.--
       ``(A) Grant authority.--The Secretary may make grants to 
     associations, units of general local government, nonprofit 
     corporations, and Indian tribes (as defined in section 4 of 
     the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450b)) in a State to provide the Federal share of 
     the cost of developing specific essential community 
     facilities in any geographic area--
       ``(i) that is represented by--

       ``(I) any political subdivision of a State;
       ``(II) an Indian tribe on a Federal or State reservation; 
     or
       ``(III) other federally recognized Indian tribal group;

       ``(ii) that is located in a rural area (as defined in 
     section 381A);
       ``(iii) with respect to which, during the most recent 5-
     year period, the net out-migration of inhabitants, or other 
     population loss, from the area equals or exceeds 5 percent of 
     the population of the area; and
       ``(iv) that has a median household income that is less than 
     the nonmetropolitan median household income of the United 
     States.
       ``(B) Federal share.--Paragraph (19)(B) shall apply to a 
     grant made under this paragraph.
       ``(C) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph 
     $50,000,000 for fiscal year 2001 and such sums as are 
     necessary for each subsequent fiscal year, of which not more 
     than 5 percent of the amount made available for a fiscal year 
     shall be available for community planning and 
     implementation.''.
       (b) Conforming Amendment.--Section 381E(d)(1)(B) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009d(d)(1)(B)) is amended by striking ``section 306(a)(19)'' 
     and inserting ``paragraph (19) or (20) of section 306(a)''.

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