[Congressional Record (Bound Edition), Volume 147 (2001), Part 1]
[Senate]
[Pages 1295-1304]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. GRASSLEY (for himself, Mr. Breaux, Mr. Smith of Oregon, 
        Mr. Cleland, Mr. Murkowski, Ms. Landrieu, Mr. Crapo, Mr. Bayh, 
        Mr. Jeffords, Mr. Kyl, Mr. Roberts, Mr. Helms, Mr. Bunning, Mr. 
        Santorum, Mr. Craig, Mr. Stevens, Mr. Fitzgerald, Mr. Burns, 
        Mr. Gregg, and Mr. Hatch):
  S. 234. A bill to amend the Internal Revenue Code of 1986 to repeal 
the excise tax on telephone and other communications services; to the 
Committee on Finance.
  Mr. GRASSLEY. Mr. President, I rise today, along with Senator Breaux 
and others, to introduce a bill to repeal the telephone excise tax--the 
Help Eliminate the Levy on Locution Act known as the HELLO Act. The 
telephone excise tax is a tax that is outdated, unfair, and complex for 
both consumers to understand and for the phone companies to administer. 
It cannot be justified on any tax policy grounds.
  Mr. President, the federal government has had the American consumer 
on ``hold'' for too long when it comes to this tax. The telephone 
excise tax has been around for over 102 years. In fact, it was first 
imposed in 1898--just 22 years after the telephone itself was invented. 
So quickly was it imposed that it almost seems that Uncle Sam was there 
to collect it before Alexander Graham Bell could put down the receiver 
from the first call. In fact, the tax is so old that Bell himself would 
have paid it!
  This tax on talking--as it is known--currently stands at 3 percent. 
Today, about 94 percent of all American families have telephone 
service. This means that virtually every family in the United States 
must tack an additional 3 percent on to their monthly phone bill. The 
federal tax applies to local phone service; it applies to long distance 
service; and it even applies in some cases to the extra amounts paid 
for state and local taxes. It is estimated that this tax costs the 
American public more than $5 billion per year.
  The telephone excise tax is a classic story of a tax that has been 
severed from its original justifications, but lives on solely to 
collect money.
  In truth, the Federal phone tax has had more legislative lives than a 
cat. When the tax was originally imposed, Teddy Roosevelt was leading 
the Rough Riders up San Juan Hill. At that time, it was billed as a 
luxury tax, as only a small portion of the American public even had 
telephones. The tax was repealed in the early 20th century, but then 
was reinstated at the beginning of World War I. It was repealed and 
reinstated a few more times until 1941, when it was made permanent to 
raise money for World War II. In the mid-60s, Congress scheduled the 
elimination of the phone tax, which had reached levels of 10 and 25 
percent. But once again, the demands of war intervened, as the 
elimination of the tax was delayed to help pay for Vietnam. In 1973, 
the phone tax began to phase-out, but one year before it was about to 
be eliminated, it rose up yet again--this time justified by the 
rationale of deficit reduction--and has remained with us ever since.
  This tax is a perfect example of why we must stop needlessly 
collecting the taxpayer's money--it does not pass any of the 
traditional criteria used for evaluating tax policy. First, this phone 
tax is outmoded. Once upon a time, it could have been argued that 
telephone service was a luxury item and that only the rich would be 
affected. As we all know, there is nothing further from the truth 
today.
  Second, the federal phone tax is unfair. Because this tax is a flat 3 
percent, it applies disproportionately to low and middle income people. 
For example, studies show that an American family making less than 
$50,000 per year spends at least 2 percent of its income on telephone 
service. A family earning less than $10,000 per year spendings over 9 
percent of its income on telephone service. Imposing a tax on those 
families for a service that is a necessity in a modern society is 
simply not fair.
  Third, the federal phone tax is complex. Once upon a time, phone 
service was simple--there was one company who provided it. It was an 
easy tax to administer. Now, however, phone service is intertwined with 
data services and Internet access, and it brings about a whole new set 
of complexities. For instance, a common way to provide high speed 
Internet access is through a digital subscriber line. This line allows 
a user to have simultaneous access to the Internet and to telephone 
communications. How should it be taxed? Should the tax be apportioned? 
Should the whole line be tax free? And what will we do when cable, 
wireless, and satellite companies provide voice and data communications 
over the same system? The burdensome complexity of today will only 
become more difficult tomorrow.
  As these questions are answered, we run the risk of distorting the 
market by favoring certain technologies. There are already numerous 
exceptions and carve-outs to the phone tax. For instance, private 
communications services are exempt from the tax. That allows large, 
sophisticated companies to establish communications networks and avoid 
paying any federal phone tax. It goes without saying that American 
families do not have that same option.
  Speaking of complexity, let me ask if anyone has taken a look at 
their most recent phone bill. It is a labyrinth of taxes and fees piled 
one on top of another. We may not be able to figure out what all the 
fees are for; but we do know that they add a big chunk to our phone 
bill. According to a recent study, the mean tax rate across the country 
on telecommunications is slightly over 18 percent. That is about a 6 
percent rise in the last 10 years. I can't control the state and local 
taxes that have been imposed, but I can do my part with respect to the 
federal taxes. I seek to remove this burden from the citizens of my 
state--and all Americans across the country.
  As members of Congress, we need to make sure that our tax policies do 
not stifle that economic expansion. We should not adhere to policies 
that are a relic from a different time. In today's economy, the 
arguments for repeal are even stronger.
  Mr. President, it is time to end the federal phone tax. For too long 
while America has been listening to a dial tone, Washington has been 
hearing a dollar tone. This tax is outmoded. Why are we taxing a poor 
family's phone with a tax that was originally meant for luxury items. 
Mr. President, it is time we hung up the phone tax once and for all. I 
urge my colleagues to join me in supporting its repeal, and help all 
Americans to say ``Hello.''
  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. 234

       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 ``Help Eliminate the Levy on 
     Locution (HELLO) Act.''.

     SEC. 2. REPEAL OF EXCISE TAX ON TELEPHONE AND OTHER 
                   COMMUNICATIONS SERVICES.

       (a) In General.--Chapter 33 of the Internal Revenue Code of 
     1986 (relating to facilities and services) is amended by 
     striking subchapter B.
       (b) Conforming Amendments.--
       (1) Section 4293 of such Code is amended by striking 
     ``chapter 32 (other than the taxes imposed by sections 4064 
     and 4121) and subchapter B of chapter 33,'' and inserting 
     ``and chapter 32 (other than the taxes imposed by sections 
     4064 and 4121),''.
       (2)(A) Paragraph (1) of section 6302(e) of such Code is 
     amended by striking ``section 4251 or''.
       (B) Paragraph (2) of section 6302(e) of such Code is 
     amended by striking ``imposed by--''

[[Page 1296]]

     and all that follows through ``with respect to'' and 
     inserting ``imposed by section 4261 or 4271 with respect 
     to''.
       (C) The subsection heading for section 6302(e) of such Code 
     is amended by striking ``Communications Services and''.
       (3) Section 6415 of such Code is amended by striking 
     ``4251, 4261, or 4271'' each place it appears and inserting 
     ``4261 or 4271''.
       (4) Paragraph (2) of section 7871(a) of such Code is 
     amended by inserting ``or'' at the end of subparagraph (B), 
     by striking subparagraph (C), and by redesignating 
     subparagraph (D) as subparagraph (C).
       (5) The table of subchapters for chapter 33 of such Code is 
     amended by striking the item relating to subchapter B.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid pursuant to bills first rendered 
     on or after 30 days after the date of the enactment of this 
     Act.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Smith of Oregon):
  S. 238. A bill to authorize the Secretary of the Interior to conduct 
feasibility studies on water optimization in the Burnt River basin. 
Malheur River basin, Owyhee River basin, and Powder River Basin, 
Oregon; to the Committee on Energy and Natural Resources.
  Mr. WYDEN. Mr. President, I am introducing today legislation that 
will allow the Bureau of Reclamation to conduct a feasibility study on 
ways to improve water management in the Malheur, Owyhee, Powder and 
Burnt River basins in northeastern Oregon. An earlier study by the 
Bureau identified a number of problems on these four Snake River 
tributaries, including high water temperatures and degraded habitat.
  These types of problems are not unique to these rivers; in fact, many 
rivers in the Pacific Northwest are in a similar condition. However, 
Oregon has a unique approach to solving these problems through the work 
of Watershed Councils. In these Councils, local farmers, ranchers and 
other stakeholders sit down together with the resource agencies to 
develop action plans to solve local problems.
  The Council members have the local knowledge of the land and waters, 
but they don't have technical expertise. The Bureau of Reclamation has 
the expertise to collect the kinds of water flow and water quality data 
that are needed to understand how the watershed works and how effective 
different solutions might be.
  One class of possible solutions includes small-scale construction 
projects, such as upgrading of irrigation systems and creation of 
wetlands to act as pollutant filters. This legislation would allow the 
Bureau of Reclamation to partner with the Watershed Councils in 
determining how such small-scale construction projects might benefit 
both the environment and the local economy.
  This bill authorizes a study; it does not authorize actual 
construction. It simply enables the Bureau to help find the most 
logical solution to resource management issues.
  Last Congress, the Senate passed the same bill I am introducing 
today. However, the other body did not act on the legislation before 
the last Congress adjourned.
  I look forward to prompt action to enact this bill in the current 
Congress. I welcome my colleague, Mr. Smith, as an original cosponsor 
of this bill.
  I ask unanimous consent that a copy of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 238

       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 ``Burnt, Malheur, Owyhee, and 
     Powder River Basin Water Optimization Feasibility Study Act 
     of 2001''.

     SEC. 2. STUDY.

       The Secretary of the Interior may conduct feasibility 
     studies on water optimization in the Burnt River basin, 
     Malheur River basin, Owyhee River basin, and Powder River 
     basin, Oregon.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______
                                 
      By Mr. HAGEL (for himself, Mr. Dodd, Mr. Roberts, Mr. Dorgan, and 
        Mr. Lugar):
  S. 239. A bill to improve access to the Cuban market for American 
agricultural producers, and for other purposes; to the Committee on 
Foreign Relations.
  Mr. HAGEL. Mr. President, today I am introducing legislation to 
correct problems with a provision enacted last fall in the fiscal year 
2001 agriculture appropriations bill. I am pleased to be joined as 
original cosponsors by my distinguished colleagues, Senators Dodd, 
Lugar, Roberts, and Dorgan.
  The provision contained in the fiscal year 2001 agriculture 
appropriations bill was a revised version of legislation originally 
introduced last Congress by former Senator Ashcroft and me, together 
with Senators Dodd, Lugar, Roberts, and many others. The purpose of our 
bill was to lift all unilateral economic sanctions on the export of 
American food and medicine. Passage of this provision acknowledges what 
most Nebraska grain and livestock producers have always known--when the 
United States places unilateral sanctions on other nations, American 
producers are hurt, not the sanctioned nation.
  As the world leader in the development of pharmaceuticals and medical 
devices, America plays a critical role in helping prolong and improve 
the quality of people's lives. Ensuring that these products and 
therapies are available to people all over the world not only benefits 
American businesses and workers, but also reinforces America's image as 
a country of both innovation and compassion.
  The provision enacted in the fiscal year 2001 agriculture 
appropriations bill was changed, however, in the conference committee 
with the House of Representatives. The final legislation blocked--only 
for sales to Cuba--access to normal export financing in the U.S. 
private sector. Thus, while claiming to open up the Cuban market for 
the export of American agricultural and medical products, it placed 
restrictions making American exports uncompetitive. Finally, the 
provision codified new restrictions on the ability of Americans to 
travel to Cuba.
  The Cuba Food and Medicine Access Act of 2001 would correct those 
mistakes by repealing the new travel restrictions and permitting normal 
credit and financing support for food and medicine exports to Cuba.
  As we rewrite the farm bill we should begin by delivering on a 
promise we made last year to end unilateral sanctions on our own 
farmers, ranchers, and agricultural producers.
  But this issue goes beyond increased commercial opportunity. The 
export of American food and medicine is also a humanitarian 
undertaking. Blocking exports in these commodities harm the health and 
nutrition of the people of the sanctioned nation. It does nothing to 
harm governments and government leaders with which we disagree. Until 
last year, food sales to Cuba were prohibited except to independent 
importers, which did not exist. And while medical sales to Cuba were 
theoretically possible, licensing procedures were so difficult and 
complicated that they had the effect of severely restricting such 
exports. Last year's bill went part of the way to clear away these 
impediments. We should now finish the job.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 239

       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 ``Cuba Food and Medicine 
     Access Act of 2001''.
                                TITLE I

     SEC. 10. LIMITATION ON PROHIBITIONS AND RESTRICTIONS ON TRADE 
                   WITH CUBA TO ALLOW FOR THE EXPORT OF FOOD AND 
                   MEDICINES TO CUBA.

       Notwithstanding the Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (Title IX of H.R. 5426 of the One 
     Hundred Sixth Congress, as enacted into law by Section 1(a) 
     of Public Law 106-387, and as contained in the appendix of 
     that Act) (except section 904 of such Act) or any other 
     provision of law (except section 11 of this Act),

[[Page 1297]]

     the prohibition or restriction on trade or financial 
     transactions with Cuba shall not apply with respect to the 
     export of any agricultural commodities, medicines, or medical 
     devices, or with respect to travel incident to the sale or 
     delivery of agricultural commodities, medicines, or medical 
     devices, to Cuba.

     SEC. 11. LIMITATION ON EXCEPTION TO ALLOW FOR THE EXPORT OF 
                   FOOD AND MEDICINE TO CUBA.

       Section 10 of this Act shall not apply--
       (1) with respect to restrictions imposed under section 5 of 
     the Export Administration Act of 1979 for goods containing 
     parts or components on which export controls are in effect 
     under that section; and
       (2) with respect to section 203 of the International 
     Emergency Economic Powers Act, to the extent the authorities 
     under that section are exercised to deal with a threat to the 
     national security of the United States by virtue of the 
     technology incorporated in such goods.

     SEC. 12. LIFTING CERTAIN PROHIBITIONS ON VESSELS ENTERING 
                   U.S. PORTS.

       Sanctions pursuant to Section 1706(b) of Title XVII of PL 
     102-484 (Cuban Democracy Act of 1992) shall not apply with 
     respect to vessels which have transported food or medicine to 
     Cuba.

     SEC. 13. STUDY AND REPORT RELATING TO EXPORT PROMOTION AND 
                   CREDIT PROGRAMS FOR CUBA.

       Title IV of the Agricultural Trade act of 1978 (7 U.S.C. 
     5661 et seq.) is amended by adding at the end the following:

     ``SEC. 418. STUDY AND REPORT RELATING TO EXPORT PROMOTION AND 
                   CREDIT PROGRAMS FOR CUBA.

       ``(a) Study.--The Secretary shall carry out a study of 
     existing United States agricultural export promotion and 
     credit programs to determine how such programs can be carried 
     out to promote the consumption of United States agricultural 
     commodities in Cuba.
       ``(b) Report.--Not later than 90 days after the date of the 
     enactment of this section, the Secretary shall prepare and 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report containing--
       ``(1) the results of the study carried out under subsection 
     (a); and
       ``(2) proposed legislation, if any, to improve the ability 
     of the Secretary to utilize United States agricultural export 
     promotion and credit programs with respect to the consumption 
     of United States agricultural commodities in Cuba.''.

     SEC. 14. REPORT TO CONGRESS.

       Not later than 6 months after the date of the enactment of 
     this Act, the President shall transmit to the Congress a 
     report that sets forth--
       (1) the extent (expressed in volume and dollar amounts) of 
     sales to Cuba of agricultural commodities, medicines, and 
     medical devices, since the date of the enactment of this Act;
       (2) a description of the types and end users of the goods 
     so exported; and
       (3) whether there has been any indication that any 
     medicines, or medical devices exported to Cuba since the date 
     of the enactment of this Act--
       (A) have been used for purposes of torture or other human 
     rights abuses;
       (B) were reexported; or
       (C) were used in the production of any bio-technological 
     product.

     SEC. 15. DEFINITIONS.

       (1) Agricultural Commodity.--The term ``agricultural 
     commodity''--
       (A) has the meaning given the term in section 102 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5602); and
       (B) includes fertilizer and organic fertilizer, except to 
     the extent provided pursuant and organic fertilizer, except 
     to the extent provided pursuant to Section 904 of the Trade 
     Sanctions Reform and Export Enhancement Act of 2000 (Title IX 
     of H.R. 5426 of the One Hundred Sixth Congress, as enacted 
     into law by Section 1(a) of Public Law 106-387, and as 
     contained in the appendix of that Act).
       (2) Medical Device.--The term ``medical device'' has the 
     meaning given the term ``device'' in section 201 of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
       (3) Medicine.--The term ``medicine'' has the meaning given 
     the term ``drug'' in section 201 the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 7321).
                                TITLE II

     SEC. 20. REPEAL OF CODIFICATION OF TRAVEL RESTRICTIONS BY 
                   AMERICAN CITIZENS TO CUBA.

       Section 910 of the Trade Sections Reform and Export 
     Enhancement Act of 2000 (Title IX of H.R. 5426 of the One 
     Hundred Sixth Congress, as enacted into law by Section 1(a) 
     of Public Law 106-387, and as contained in the appendix of 
     that Act) is hereby repealed.

  Mr. ROBERTS. Mr. President, I rise today once again to introduce 
legislation to enhance trade provisions from Title Nine of the fiscal 
year 2001 agriculture appropriations bill.
  The legislation that I join with my colleagues to introduce today, 
the Cuba Food & Medicine Access Act of 2001, exempts, among other 
things, the sale of agricultural commodities from the financing and 
licensing restrictions of Title Nine of last year's agriculture 
appropriations bill, also known as the Trade Sanctions Reform & Export 
Enhancement Act.
  Last week, Senator Dorgan and I introduced similar corrective 
legislation. Title Nine of the fiscal year 2001 agriculture 
appropriations bill made significant progress toward ending the 
misguided policy of using unilateral food sanctions to isolate or 
punish so-called ``countries of concern''. Title Nine holds that ``The 
President shall terminate any unilateral agricultural sanction or 
unilateral medical sanction that is in effect as of the date of 
enactment of this Act.'' That is indeed progress, Mr. President.
  As I noted last week with my friend from North Dakota, however, Title 
Nine prohibits basic facilitators to trade--financing and export 
promotion. The Trade Sanctions Reform & Export Enhancement Act 
effectively thwarts U.S. agricultural trade with Cuba.
  It is that reality that prompts me to introduce and support as many 
legislative vehicles as I can toward repealing the prohibitions in last 
year's bill and opening the Cuban market to American agricultural 
commodities.
  There has been much talk about the importance of American tourist 
travel to Cuba--this is true and I have stated it repeatedly. The Trade 
Sanctions Reform & Export Enhancement Act's tourist travel ban stifles 
the most powerful influence on Cuban society: American culture and 
perspective, both economic and political.
  Consistent with the Dorgan-Roberts bill introduced last week, the 
codification of tourist travel restrictions is repealed under the Cuba 
Food & Medicine Access Act of 2001 as are restrictions on the sale of 
medicine and medical products. Further, the trade of both food and 
medicine is enhanced by nullifying a provision of the Cuban Democracy 
Act of 1992, which prohibits ships entering ports in Cuba from visiting 
U.S. ports for at least 180 days without a special license.
  Today, however, I want to place more emphasis on the agricultural 
trade issue. The U.S. cannot afford to rule out any market for our 
agricultural commodities. Now more than ever, as new markets develop 
and our competitors seize those opportunities, it makes no sense to 
preclude the use of export promotion programs nor outlaw private U.S. 
financing. It is nonsense to isolate our farmers in this fashion.
  Section 908 of the fiscal year 2001 agriculture appropriations bill 
reads ``no United States Government assistance, including United States 
foreign assistance, United States export assistance, and any United 
States credit or guarantees shall be available for exports to Cuba.'' 
Section 908 goes on to state, incredibly, that ``no United States 
person may provide payment or financing terms for sales of agricultural 
commodities or products to Cuba or any person in Cuba.''
  It's quite clear, Mr. President, the intent of this provision is to 
keep the Cuban market cut off from America's farmers. This is 
unacceptable.
  If it's not to keep the Cuban market cut off, then what is the 
policy? What are our farmers supposed to do when faced with this kind 
of contradictory and politicized language: You are permitted to sell to 
Cuba but don't bother trying? We are either going to encourage and 
facilitate global agricultural trade or we are going to discourage and 
complicate global agricultural trade. You can't have it both ways.
  Why is this significant in regards to Cuba? Let us sample some recent 
statistics provided by the U.S.-Cuba Trade & Economic Council, based in 
New York City: Wheat exports from Canada to Cuba in 1999 and 2000--
730,000 tons; corn exports from China to Cuba in 2000--26,101 tons; and 
rice exports from China to Cuba in 2000--225,510 tons.
  No, Cuba is not the largest market, Mr. President, but the point is, 
our farmers should be able to compete for that business. It's our 
obligation to at least permit such an opportunity.
                                 ______
                                 
      By Mr. FRIST:
  S. 240. a bill to authorize studies on water supply management and 
development; to the Committee on Environment and Public Works.

[[Page 1298]]


  Mr. FRIST. Mr. President, today, I introduce the Water Resource Study 
Act of 2001. The purpose of this bill is to ensure an adequate supply 
of fresh water for Tennessee's future.
  Currently, Tennessee is one of the fastest growing states in the 
country. We rank 9th out of the 50 states in projected population 
growth over the next 25 years. Though we welcome this growth, it is 
beginning to place a strain on our water supply. For example, public 
water use increased from 380 million gallons in 1960 to 777 million 
gallons in 1995. As industry and population increase, it will not be 
long before growth outpaces available water supply. We must act now to 
avoid serious problems.
  Specifically, this legislation would allow Tennessee to work with the 
Secretary of the Army, acting through the Chief of Engineers, to select 
a geographical area within the state having ``consistent, emerging 
water supply needs'' and to take a serious look at the water supply in 
that particular area. After gathering relevant data, the study would 
consider available federal resources, identify areas for improvement 
and detect outdated programs. It would also begin determining the 
appropriate role of the federal government in helping local communities 
to develop an adequate water supply.
  This legislation is not the full solution, but it will assist in 
understanding the complexity of water supply development and the 
different alternatives to meeting future water supply needs. It is a 
good step in addressing this important issue for all Tennesseans.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 240

       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 ``Water Resource Study Act of 
     2001''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) water resources in the United States are among the most 
     plentiful in the world;
       (2) for many years, the effective development and use of 
     water resources in the United States has been the focus of a 
     wide array of Federal policies and programs;
       (3) in recent years, unprecedented growth, multiple 
     competing water uses, and growing public interest in 
     environmental protection have combined to create an 
     atmosphere of conflicting policy interests;
       (4) large-scale water conflicts continue to emerge between 
     communities, States, and stakeholder interests in the 
     southeastern region of the United States; and
       (5) Federal support is needed to assess the utility and 
     effectiveness of current Federal policies and programs as 
     they relate to resolving State and local water supply needs.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of the Army, acting through the Chief of Engineers.
       (2) State.--The term ``State'' means the State of 
     Tennessee.

     SEC. 4. STUDIES ON EMERGING WATER SUPPLY NEEDS.

       (a) Designation.--The Secretary shall offer to provide 
     assistance to the State to conduct studies under this 
     section.
       (b) Studies.--As a condition of receiving assistance under 
     this section, not later than 1 year after the date of 
     enactment of this Act, in consultation with the Secretary, 
     the State shall--
       (1) select a geographic area within the State having 
     consistent, emerging, water supply needs; and
       (2) conduct a study on the emerging water supply needs of 
     the geographic area.
       (c) Administration.--A study conducted under this section 
     shall--
       (1) identify Federal and State resources, assistance 
     programs, regulations, and sources of funding for water 
     supply development and management that are applicable to the 
     geographic areas selected under subsection (b)(1);
       (2) identify potential weaknesses, redundancies, and 
     contradictions in those resources, assistance programs, 
     regulations, policies, and sources of funding;
       (3) conduct a water resource inventory in the geographic 
     study area to determine, with respect to the water supply 
     needs of the area--
       (A) projected demand;
       (B) existing supplies and infrastructure;
       (C) water resources that cannot be developed for water 
     supplies due to regulatory or technical barriers, including--
       (i) special aquatic sites (as defined in section 330.2 of 
     title 33, Code of Federal Regulations (or a successor 
     regulation)); and
       (ii) bodies of water protected under any other Federal or 
     State law;
       (D) water resources that can be developed for water 
     supplies, such as sites that have few, if any, technical or 
     regulatory barriers to development;
       (E) any water resources for which further research or 
     investigation, such as testing of groundwater aquifers, is 
     required to determine the potential for water supply 
     development for the site;
       (F) a description of the social, political, institutional, 
     and economic dynamics and characteristics of the geographic 
     study area that may affect the resolution of water supply 
     needs;
       (G) incentives for cooperation between water districts, 
     local governments, and State governments, including methods 
     that maximize private sector participation in the water 
     supply development; and
       (H) new water resource development technologies that merit 
     further analysis and testing.
       (d) Lead Agency.--For each study under this section, the 
     Corps of Engineers--
       (1) shall be the lead Federal agency; and
       (2) shall consult with the State for guidance in the 
     development of the study.
       (e) Participants.--
       (1) In general.--The United States Geological Survey and 
     the Tennessee Valley Authority shall participate in the 
     study.
       (2) Entities selected by the state.--In consultation with 
     the Secretary, the State shall select additional entities to 
     participate in the study.
       (3) University of tennessee.--The University of Tennessee 
     may elect to participate in the study.
       (f) Funding.--The Federal share of each study under this 
     section shall be 100 percent.
       (g) Report.--Not later than 180 days after the completion 
     of a study under this section, the State shall submit a 
     report describing the findings of the study to--
       (1) the Committee on Resources of the House of 
     Representatives; and
       (2) the Committee on Environment and Public Works of the 
     Senate.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     fiscal year 2002.
                                 ______
                                 
      By Mr. REID:
  S. 241. A bill to direct the Federal Election Commission to set 
uniform national standards for Federal election procedures, change the 
Federal election day, and for other purposes; to the Committee on Rules 
and Administration.
  Mr. REID. Mr. President, I rise today to introduce the National 
Election Standards Act of 2001.
  The entire nation was disgusted by the presidential election of 2000. 
That election revealed the flaws in our election process to the entire 
world. America is the greatest country--and the oldest democracy--in 
the world, and we can do better.
  The most fundamental premise of democracy is that every vote is 
counted. But the reality is that votes cast in wealthier parts of the 
country frequently count more than votes cast in poorer areas, because 
wealthier districts have better, more accurate, more modern and less 
error-prone counting machines than poorer precincts and districts. Some 
counties in this nation are using voting machines and vote-counting 
machines that are 50, 60, 70 years old, and that have error rates of 3 
or more percent. In the wealthiest nation in the world, that is simply 
unacceptable.
  Today, I am introducing a bill that will give the Federal Election 
Commission the authority to issue uniform federal regulations governing 
registration, access to polling places, voting machines, and vote-
counting procedures in federal elections across the country. Unlike 
some other proposals introduced this Congress, these regulations will 
be binding on states and localities. The Commission will also be 
authorized to set deadlines for states and localities to comply, and to 
provide the necessary federal funding to enable them to comply.
  My bill will also require states to allow voters to register on the 
same day that they vote, and will move federal election days from the 
current Tuesday, to the preceding Saturday and Sunday. By simplifying 
registration, by allowing voters to vote on weekends, and extending 
election day to two days instead of one, more voters will be able to 
participate in federal elections more easily. I believe these changes 
will go a long way toward improving our atrocious voter turnout

[[Page 1299]]

rates, and help restore some of the confidence in our election process 
that many Americans lost during the last election.
  I urge my colleagues to join me in this effort.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Domenici, and Mr. Crapo):
  S. 242. A bill to authorize funding for University Nuclear Science 
and Engineering Programs at the Department of Energy for fiscal years 
2002 through 2006; to the Committee on Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I rise today to introduce a bill 
authorizing the Secretary of Energy to provide for the Office of 
Nuclear Energy, Science and Technology to reverse a serious decline in 
our nation's educational capability to produce future nuclear 
scientists and engineers. This bi-partisan bill which is referred to as 
the ``Department of Energy University Nuclear Science and Engineering 
Act'' is co-sponsored by my colleagues Mr. Domenici and Mr. Crapo. Let 
me outline how serious this decline is, after doing so I will outline 
its impact on our nation and then discuss how this bill attempts to 
remedy this situation.
  As of this year, the supply of four-year trained nuclear scientists 
and engineers is at a 35-year low. The number of four-year programs 
across our nation to train future nuclear scientists has declined to 
approximately 25--a 50 percent reduction since about 1970. Two-thirds 
of the nuclear science and engineering faculty are over age 45 with 
little if any ability to draw new and young talent to replace them. 
Universities across the United States cannot afford to maintain their 
small research reactors forcing their closure at an alarming rate. This 
year there are only 28 operating research and training reactors, over a 
50 percent decline since 1980. Most if not all of these reactors were 
built in the late 1950's and early 60's and were licensed initially for 
30 to 40 years. As a result, within the next five years the majority of 
these 28 reactors will have to be relicensed. Relicensing is a long, 
lengthy process which most universities cannot and will not afford. 
Interestingly, the employment demand for nuclear scientists and 
engineers exceeds our nation's ability to supply them. This year, the 
demand exceeded supply by 350, by 2003 it will be over 400. Our current 
projections are that in five years 76 percent of the nation's nuclear 
workforce can retire, the university pipeline of new scientists and 
engineers is moving in the wrong direction to meet this national 
problem.
  These human resource and educational infrastructure problems are 
serious. The decline in a competently trained nuclear workforce affects 
a broad range of national issues.
  We need nuclear engineers and health physicists to help design, 
safely dispose and monitor nuclear waste, both civilian and military.
  We rely on nuclear physicists and scientists in the field of nuclear 
medicine to develop radio isotopes for the thousands of medical 
procedures performed everyday across our nation--to help save lives.
  We must continue to operate and safely maintain our existing supply 
of fission reactors and respond to any future nuclear crisis 
worldwide--it takes nuclear scientists, engineers and health physicists 
to do that.
  Our national security and treaty commitments rely on nuclear 
scientists to help stem the proliferation of nuclear weapons whether in 
our national laboratories or as part of worldwide inspection teams in 
such places as Iraq. Nuclear scientists are needed to convert existing 
reactors worldwide from highly enriched to low enriched fuels.
  Nuclear engineers and health physicists are needed to design, operate 
and monitor future Naval Reactors. The Navy by itself cannot train 
students for their four year degrees--they only provide advance 
postgraduate training on their reactor's operation.
  Basically, we are looking at the potential loss of a 50 year 
investment in a field which our nation started and leads the world in. 
What is worse, this loss is a downward self-feeding spiral. Poor 
departments cannot attract bright students and bright students will not 
carry on the needed cutting edge research that leads to promising young 
faculty members. Our system of nuclear education and training, in which 
we used to lead the world, is literally imploding upon itself.
  I've laid out in this bill some proposals that I hope will seed a 
national debate in the upcoming 107th Congress on what we as a nation 
need to do to help solve this very serious problem. It is not a perfect 
bill, but I think it should start the ball rolling. I welcome all forms 
of bipartisan input on it. I hope that my colleagues in the House 
Science Committee looks favorably at this worthy effort and I would 
suggest joint hearings so that we as a Congressional body can hear 
together the testimony on the serious decline that we now face. My 
staff has worked from consensus reports from the scientific community 
developed by the Nuclear Energy Advisory Committee to the Department of 
Energy's Office of Nuclear Science and Technology, in particular its 
subcommittee on Education and Training. The report is available on the 
Office's website. I encourage everyone to read and look at these 
startling statistics.
  Here is an outline of what is in the bill.
  First and foremost, we need to concentrate on attracting good 
undergraduate students to the nuclear sciences. I have proposed 
enhancing the current program which provides fellowships to graduate 
students and extends that to undergraduate students.
  Second, we need to attract new and young faculty. I've proposed a 
Junior Faculty Research Initiation Grant Program which is similar to 
the NSF programs targeted only towards supporting new faculty during 
the first 5 years of their career at a university. These first five 
years are critical years that either make or break new faculty.
  Third, I've proposed enhancing the Office's Nuclear Engineering 
Education and Research Program. This program is critical to university 
faculty and graduate students by supporting only the most fundamental 
research in nuclear science and engineering. These fundamental programs 
ultimately will strengthen our industrial base and over all economic 
competitiveness.
  Fourth, I've strengthened the Office's applied nuclear science 
program by ensuring that universities play an important role in 
collaboration with the national labs and industry. This collaboration 
is the most basic form of tech transfer, it is face-to-face contact and 
networking between faculty, students and the applied world of research 
and industry. This program will ensure a transition between the student 
and their future employer.
  Finally, I've strengthened what I consider the most crucial element 
of this program--ensuring that future generations of students and 
professors have well maintained research reactors.
  I've proposed to increase the funding levels for refueling and 
upgrading academic reactor instrumentation.
  I propose to start a new program whereby faculty can apply for 
reactor research and training awards to provide for reactor 
improvements.
  I have proposed a novel program whereby as part of a student's 
undergraduate and graduate thesis project, they help work on the re-
licensing of their own research reactors. This program must be in 
collaboration with industry which already has ample experience in 
relicensing. Such a program will once again provide face-to-face 
networking and training between student, teacher and ultimately their 
employer.
  I have proposed a fellowship program whereby faculty can take their 
sabbatical year at a DOE laboratory. Under this program DOE laboratory 
staff can co-teach university courses and give extended seminars. This 
program also provides for part time employment of students at the DOE 
labs--we are talking about bringing in new and young talent.
  For the research funds allocated, I have permitted portions be used 
to operating the reactor during the investigation. I make this 
allocation provided that the investigator's host institution makes a 
cost sharing commitment in its operation. My intent is

[[Page 1300]]

clearly not to make the program simply fund the operations and 
maintenance of university reactors; it must be tied to the bill's 
research. The cost sharing insures that the host institution does not 
simply reallocate the funds already committed to operating the reactor.
  In making all of these proposals, let me emphasize that each one of 
these programs I have described is intended to be peer reviewed and to 
have awards made strictly on merit of the proposals submitted. This 
program is not a hand out. Each element that I am proposing requires 
that faculty innovate and compete for these funds. Those institutions 
that do not win such competitions will have the choice of funding the 
research reactor activities themselves or consider shutting them down.
  I have outlined a very serious problem that if not corrected now will 
cost far more to correct later on. If the program I have outlined is 
implemented, then it will strengthen our reputation as a leader in the 
nuclear sciences, strengthen our national security and our ability to 
compete in the world market place.
  Mr. President, I ask for unanimous consent that the text of this bill 
be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 242

       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 ``Department of Energy University 
     Nuclear Science and Engineering Act''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) U.S. university nuclear science and engineering 
     programs are in a state of serious decline. The supply of 
     bachelor degree nuclear science and engineering personnel in 
     the United States is at a 35-year low. The number of four 
     year degree nuclear engineering programs has declined 50 
     percent to approximately 25 programs nationwide. Over two-
     thirds of the faculty in these programs are 45 years or 
     older.
       (2) Universities cannot afford to support their research 
     and training reactors. Since 1980, the number of small 
     training reactors in the United States have declined by over 
     50 percent to 28 reactors. Most of these reactors were built 
     in the late 1950s and 1960s with 30- to 40-year operating 
     licenses, and will require re-licensing in the next several 
     years.
       (3) The neglect in human investment and training 
     infrastructure is affecting 50 years of national R&D 
     investment. The decline in a competent nuclear workforce, and 
     the lack of adequately trained nuclear scientists and 
     engineers, will affect the ability of the United States to 
     solve future waste storage issues, maintain basic nuclear 
     health physics programs, operate existing and design future 
     fission reactors in the United States, respond to future 
     nuclear events worldwide, help stem the proliferation of 
     nuclear weapons, and design and operate naval nuclear 
     reactors.
       (4) Further neglect in the nation's investment in human 
     resources for the nuclear sciences will lead to a downward 
     spiral. As the number of nuclear science departments shrink, 
     faculties age, and training reactors close, the appeal of 
     nuclear science will be lost to future generations of 
     students.
       (5) Current projections are that 76% of the nation's 
     professional nuclear workforce can retire in 5 years, a new 
     supply of trained scientists and engineers is needed.
       (6) The Department of Energy's Office of Nuclear Energy, 
     Science and Technology is well suited to help maintain 
     tomorrow's human resource and training investment in the 
     nuclear sciences. Through its support of research and 
     development pursuant to the Department's statutory 
     authorities, the Office of Nuclear Energy, Science and 
     Technology is the principal federal agent for civilian 
     research in the nuclear sciences for the United States. The 
     Office maintains the Nuclear Engineering and Education 
     Research Program which funds basic nuclear science and 
     engineering. The Office funds the Nuclear Energy and Research 
     Initiative which funds applied collaborative research among 
     universities, industry and national laboratories in the areas 
     of proliferation resistant fuel cycles and future fission 
     power systems. The Office funds Universities to refuel 
     training reactors from highly enriched to low enriched 
     proliferation tolerant fuels, performs instrumentation 
     upgrades and maintains a program of student fellowships for 
     nuclear science, engineering and health physics.

     SEC. 3. DEPARTMENT OF ENERGY PROGRAM.

       (a) Establishment.--The Secretary of Energy, through the 
     Office of Nuclear Energy, Science and Technology, shall 
     support a program to maintain the nation's human resource 
     investment and infrastructure in the nuclear sciences and 
     engineering consistent with the Department's statutory 
     authorities related to civilian nuclear research and 
     development.
       (b) Duties of the Office of Nuclear Energy, Science and 
     Technology.--In carrying out the program under this Act, the 
     Director of the Office of Nuclear Science and Technology 
     shall--
       (1) develop a robust graduate and undergraduate fellowship 
     program to attract new and talented students;
       (2) assist universities in recruiting and retaining new 
     faculty in the nuclear sciences and engineering through a 
     Junior Faculty Research Initiation Grant Program;
       (3) maintain a robust investment in the fundamental nuclear 
     sciences and engineering through the Nuclear Engineering 
     Education Research Program;
       (4) encourage collaborative nuclear research between 
     industry, national laboratories and universities through the 
     Nuclear Energy Research Initiative; and
       (5) support communication and outreach related to nuclear 
     science and engineering.
       (c) Maintaining University Research and Training Reactors 
     and Associated Infrastructure.--Within the funds authorized 
     to be appropriated pursuant to this Act, the amounts 
     specified under section 4(b) shall, subject to 
     appropriations, be available for the following research and 
     training reactor infrastructure maintenance and research:
       (1) Refueling of research reactors with low enriched fuels, 
     upgrade of operational instrumentation, and sharing of 
     reactors among universities.
       (2) In collaboration with the U.S. nuclear industry, 
     assistance, where necessary, in re-licensing and upgrading 
     training reactors as part of a student training program.
       (3) A reactor research and training award program that 
     provides for reactor improvements as part of a focused effort 
     that emphasizes research, training, and education.
       (d) University--DOE Laboratory Interactions.--The Secretary 
     of Energy, through the Office of Nuclear Science and 
     Technology, shall develop--
       (1) a sabbatical fellowship program for university 
     professors to spend extended periods of time at Department of 
     Energy laboratories in the areas of nuclear science and 
     technology; and
       (2) a visiting scientist program in which laboratory staff 
     can spend time in academic nuclear science and engineering 
     departments.

     The Secretary may under section 3(b)(1) provide for 
     fellowships for students to spend time at Department of 
     Energy laboratories in the area of nuclear science under the 
     mentorship of laboratory staff.
       (3) Operations and Maintenance.--For the research programs 
     described, portions thereof may be used to supplement 
     operation of the research reactor during investigator's 
     proposed effort provided the host institution provides cost 
     sharing in the reactor's operation.
       (f) Merit Review Required.--All grants, contracts, 
     cooperative agreements, or other financial assistance awards 
     under this Act shall be made only after independent merit 
     review.

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

       (a) Total Authorization.--The following sums are authorized 
     to be appropriate to the Secretary of Energy, to remain 
     available until expended, for the purposes of carrying out 
     this Act:
       (1) $30,200,000 for fiscal year 2002.
       (2) $41,000,000 for fiscal year 2003.
       (3) $47,900,000 for fiscal year 2004.
       (4) $55,600,000 for fiscal year 2005.
       (5) $64,100,000 for fiscal year 2006.
       (b) Graduate and Undergraduate Fellowships.--Of the funds 
     under subsection (a), the following sums are authorized to be 
     appropriated to carry out section 3(b)(1):
       (1) $3,000,000 for fiscal year 2002.
       (2) $3,100,000 for fiscal year 2003.
       (3) $3,200,000 for fiscal year 2004.
       (4) $3,200,000 for fiscal year 2005.
       (5) $3,200,000 for fiscal year 2006.
       (c) Junior Faculty Research Initiation Grant Program.--Of 
     the funds under subsection (a), the following sums are 
     authorized to be appropriated to carry out section 3(b)(2):
       (1) $5,000,000 for fiscal year 2002.
       (2) $7,000,000 for fiscal year 2003.
       (3) $8,000,000 for fiscal year 2004.
       (4) $9,000,000 for fiscal year 2005.
       (5) $10,000,000 for fiscal year 2006.
       (d) Nuclear Engineering and Education Research Program.--Of 
     the funds under subsection (a), the following sums are 
     authorized to be appropriated to carry out section 3(b)(3):
       (1) $8,000,000 for fiscal year 2002.
       (2) $12,000,000 for fiscal year 2003.
       (3) $13,000,000 for fiscal year 2004.
       (4) $15,000,000 for fiscal year 2005.
       (5) $20,000,000 for fiscal year 2006.
       (e) Communication and Outreach Related to Nuclear Science 
     and Engineering.--Of the funds under subsection (a), the 
     following sums are authorized to be appropriated to carry out 
     section 3(b)(5):
       (1) $200,000 for fiscal year 2002.
       (2) $200,000 for fiscal year 2003.
       (3) $300,000 for fiscal year 2004.
       (4) $300,000 for fiscal year 2005.
       (5) $300,000 for fiscal year 2006.
       (f) Refueling of Research Reactors and Instrumentation 
     Upgrades.--Of the funds

[[Page 1301]]

     under subsection (a), the following sums are authorized to be 
     appropriated to carry out section 3(c)(1):
       (1) $6,000,000 for fiscal year 2002.
       (2) $6,500,000 for fiscal year 2003.
       (3) $7,000,000 for fiscal year 2004.
       (4) $7,500,000 for fiscal year 2005.
       (5) $8,000,000 for fiscal year 2006.
       (g) Re-Licensing Assistance.--Of the funds under subsection 
     (a), the following sums are authorized to be appropriated to 
     carry out section 3(c)(2):
       (1) $1,000,000 for fiscal year 2002.
       (2) $1,100,000 for fiscal year 2003.
       (3) $1,200,000 for fiscal year 2004.
       (4) $1,300,000 for fiscal year 2005.
       (5) $1,300,000 for fiscal year 2006.
       (h) Reactor Research and Training Award Program.--Of the 
     funds under subsection (a), the following sums are authorized 
     to be appropriated to carry out section 3(c)(3):
       (1) $6,000,000 for fiscal year 2002.
       (2) $10,000,000 for fiscal year 2003.
       (3) $14,000,000 for fiscal year 2004.
       (4) $18,000,000 for fiscal year 2005.
       (5) $20,000,000 for fiscal year 2006.
       (i) University--DOE Laboratory Interactions.--Of the funds 
     under subsection (a), the following sums are authorized to be 
     appropriated to carry out section 3(d):
       (1) $1,000,000 for fiscal year 2002.
       (2) $1,100,000 for fiscal year 2003.
       (3) $1,200,000 for fiscal year 2004.
       (4) $1,300,000 for fiscal year 2005.
       (5) $1,300,000 for fiscal year 2006.
                                 ______
                                 
      By Mr. JOHNSON (for himself, Mr. Bingaman, Mr. Daschle, Mr. 
        Inouye, Mr. Cochran, Mr. Baucus, Mr. Reid, Mr. Akaka, and Mr. 
        Campbell):
  S. 243. A bill to provide for the issuance of bonds to provide 
funding for the construction of schools of the Bureau of Indian Affairs 
of the Department of the Interior, and for other purposes; to the 
Committee on Indian Affairs.
  Mr. JOHNSON. Mr. President, I, along with Senators Bingaman, Daschle, 
Campbell, Inouye, Cochran, Reid, Akaka, and Baucus am introducing 
legislation to establish an innovative funding mechanism to enhance the 
ability of Indian tribes to construct, repair, and maintain quality 
educational facilities. Representatives from tribal schools in my State 
of South Dakota have been working with tribes nationwide to develop an 
initiative which I believe will be a positive first step toward 
addressing the serious crisis we are facing in Indian education.
  Over 50 percent of the American Indian population in this country is 
age 24 or younger. Consequently, the need for improved educational 
programs and facilities, and for training the American Indian workforce 
is pressing. American Indians have been, and continue to be, 
disproportionately affected by both poverty and low educational 
achievement. The high school completion rate for Indian people aged 20 
to 24 was 12.5 percent below the national average. American Indian 
students, on average, have scored far lower on the National Assessment 
for Education Progress indicators than all other students.
  By ignoring the most fundamental aspect of education; that is, safe, 
quality educational facilities, there is little hope of breaking the 
cycle of low educational achievement, and the unemployment and poverty 
that result from neglected academic potential.
  The Indian School Construction Act establishes a bonding authority to 
use existing tribal education funds for bonds in the municipal finance 
market which currently serves local governments across the Nation. 
Instead of funding construction projects directly, these existing funds 
will be leveraged through bonds to fund substantially more tribal 
school construction, maintenance and repair projects.
  The Bureau of Indian Affairs estimates the tribal school construction 
and repair backlog at over $1 billion. Confounding this backlog, 
inflation and facility deterioration severely increases this amount. 
The administration's school construction request for fiscal year 2001 
was over $62 million. In this budgetary climate, I believe every avenue 
for efficiently stretching the Federal dollar should be explored.
  Tribal schools in my State and around the country address the unique 
learning needs and styles of Indian students, with sensitivity to 
Native cultures, ultimately promoting higher academic achievement. 
There are strong historical and moral reasons for continued support of 
tribal schools. In keeping with our special trust responsibility to 
sovereign Indian nations, we need to promote the self-determination and 
self-sufficiency of Indian communities. Education is absolutely vital 
to this effort. Allowing the continued deterioration and decay of 
tribal schools through lack of funding would violate the Government's 
commitment and responsibility to Indian nations and only slow the 
progress of self-sufficiency.
  I urge my colleagues to closely examine the Indian School 
Construction Act and join me in working to make this innovative funding 
mechanism a reality. I ask unanimous consent that the text of the 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 243

       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 ``Indian School Construction 
     Act''.

     SEC. 2. INDIAN SCHOOL CONSTRUCTION.

       (a) Definitions.--In this section:
       (1) Bureau.--The term ``Bureau'' means the Bureau of Indian 
     Affairs of the Department of the Interior.
       (2) Indian.--The term ``Indian'' means any individual who 
     is a member of a tribe.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Tribal school.--The term ``tribal school'' means an 
     elementary school, secondary school, or dormitory that is 
     operated by a tribal organization or the Bureau for the 
     education of Indian children and that receives financial 
     assistance for its operation under an appropriation for the 
     Bureau under section 102, 103(a), or 208 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450f, 
     450h(a), and 458d) or under the Tribally Controlled Schools 
     Act of 1988 (25 U.S.C. 2501 et seq.) under a contract, a 
     grant, or an agreement, or for a Bureau-operated school.
       (5) Tribe.--The term ``tribe'' has the meaning given the 
     term ``Indian tribal government'' by section 7701(a)(40) of 
     the Internal Revenue Code of 1986, including the application 
     of section 7871(d) of such Code. Such term includes any 
     consortium of tribes approved by the Secretary.
       (b) Issuance of Bonds.--
       (1) In general.--The Secretary shall establish a pilot 
     program under which eligible tribes have the authority to 
     issue qualified tribal school modernization bonds to provide 
     funding for the construction, rehabilitation, or repair of 
     tribal schools, including the advance planning and design 
     thereof.
       (2) Eligibility.--
       (A) In general.--To be eligible to issue any qualified 
     tribal school modernization bond under the program under 
     paragraph (1), a tribe shall--
       (i) prepare and submit to the Secretary a plan of 
     construction that meets the requirements of subparagraph (B);
       (ii) provide for quarterly and final inspection of the 
     project by the Bureau; and
       (iii) pledge that the facilities financed by such bond will 
     be used primarily for elementary and secondary educational 
     purposes for not less than the period such bond remains 
     outstanding.
       (B) Plan of construction.--A plan of construction meets the 
     requirements of this subparagraph if such plan--
       (i) contains a description of the construction to be 
     undertaken with funding provided under a qualified tribal 
     school modernization bond;
       (ii) demonstrates that a comprehensive survey has been 
     undertaken concerning the construction needs of the tribal 
     school involved;
       (iii) contains assurances that funding under the bond will 
     be used only for the activities described in the plan;
       (iv) contains response to the evaluation criteria contained 
     in Instructions and Application for Replacement School 
     Construction, Revision 6, dated February 6, 1999; and
       (v) contains any other reasonable and related information 
     determined appropriate by the Secretary.
       (C) Priority.--In determining whether a tribe is eligible 
     to participate in the program under this subsection, the 
     Secretary shall give priority to tribes that, as demonstrated 
     by the relevant plans of construction, will fund projects--
       (i) described in the Education Facilities Replacement 
     Construction Priorities List as of FY 2000 of the Bureau of 
     Indian Affairs (65 Fed. Reg. 4623-4624);
       (ii) described in any subsequent priorities list published 
     in the Federal Register; or
       (iii) which meet the criteria for ranking schools as 
     described in Instructions and Application for Replacement 
     School Construction, Revision 6, dated February 6, 1999.
       (D) Advance planning and design funding.--A tribe may 
     propose in its plan of construction to receive advance 
     planning and

[[Page 1302]]

     design funding from the tribal school modernization escrow 
     account established under paragraph (6)(B). Before advance 
     planning and design funds are allocated from the escrow 
     account, the tribe shall agree to issue qualified tribal 
     school modernization bonds after the receipt of such funds 
     and agree as a condition of each bond issuance that the tribe 
     will deposit into such account or a fund managed by the 
     trustee as described in paragraph (4)(C) an amount equal to 
     the amount of such funds received from the escrow account.
       (3) Permissible activities.--In addition to the use of 
     funds permitted under paragraph (1), a tribe may use amounts 
     received through the issuance of a qualified tribal school 
     modernization bond to--
       (A) enter into and make payments under contracts with 
     licensed and bonded architects, engineers, and construction 
     firms in order to determine the needs of the tribal school 
     and for the design and engineering of the school;
       (B) enter into and make payments under contracts with 
     financial advisors, underwriters, attorneys, trustees, and 
     other professionals who would be able to provide assistance 
     to the tribe in issuing bonds; and
       (C) carry out other activities determined appropriate by 
     the Secretary.
       (4) Bond trustee.--
       (A) In general.--Notwithstanding any other provision of 
     law, any qualified tribal school modernization bond issued by 
     a tribe under this subsection shall be subject to a trust 
     agreement between the tribe and a trustee.
       (B) Trustee.--Any bank or trust company that meets 
     requirements established by the Secretary may be designated 
     as a trustee under subparagraph (A).
       (C) Content of trust agreement.--A trust agreement entered 
     into by a tribe under this paragraph shall specify that the 
     trustee, with respect to any bond issued under this 
     subsection shall--
       (i) act as a repository for the proceeds of the bond;
       (ii) make payments to bondholders;
       (iii) receive, as a condition to the issuance of such bond, 
     a transfer of funds from the tribal school modernization 
     escrow account established under paragraph (6)(B) or from 
     other funds furnished by or on behalf of the tribe in an 
     amount, which together with interest earnings from the 
     investment of such funds in obligations of or fully 
     guaranteed by the United States or from other investments 
     authorized by paragraph (10), will produce moneys sufficient 
     to timely pay in full the entire principal amount of such 
     bond on the stated maturity date therefor;
       (iv) invest the funds received pursuant to clause (iii) as 
     provided by such clause; and
       (v) hold and invest the funds in a segregated fund or 
     account under the agreement, which fund or account shall be 
     applied solely to the payment of the costs of items described 
     in paragraph (3).
       (D) Requirements for making direct payments.--
       (i) In general.--Notwithstanding any other provision of 
     law, the trustee shall make any payment referred to in 
     subparagraph (C)(v) in accordance with requirements that the 
     tribe shall prescribe in the trust agreement entered into 
     under subparagraph (C). Before making a payment to a 
     contractor under subparagraph (C)(v), the trustee shall 
     require an inspection of the project by a local financial 
     institution or an independent inspecting architect or 
     engineer, to ensure the completion of the project.
       (ii) Contracts.--Each contract referred to in paragraph (3) 
     shall specify, or be renegotiated to specify, that payments 
     under the contract shall be made in accordance with this 
     paragraph.
       (5) Payments of principal and interest.--
       (A) Principal.--No principal payments on any qualified 
     tribal school modernization bond shall be required until the 
     final, stated maturity of such bond, which stated maturity 
     shall be within 15 years from the date of issuance. Upon the 
     expiration of such period, the entire outstanding principal 
     under the bond shall become due and payable.
       (B) Interest.--In lieu of interest on a qualified tribal 
     school modernization bond there shall be awarded a tax credit 
     under section 1400K of the Internal Revenue Code of 1986.
       (6) Bond guarantees.--
       (A) In general.--Payment of the principal portion of a 
     qualified tribal school modernization bond issued under this 
     subsection shall be guaranteed solely by amounts deposited 
     with each respective bond trustee as described in paragraph 
     (4)(C)(iii).
       (B) Establishment of account.--
       (i) In general.--Notwithstanding any other provision of 
     law, beginning in fiscal year 2002, from amounts made 
     available for school replacement under the construction 
     account of the Bureau, the Secretary is authorized to deposit 
     not more than $30,000,000 each fiscal year into a tribal 
     school modernization escrow account.
       (ii) Payments.--The Secretary shall use any amounts 
     deposited in the escrow account under clauses (i) and (iii) 
     to make payments to trustees appointed and acting pursuant to 
     paragraph (4) or to make payments described in paragraph 
     (2)(D).
       (iii) Transfers of excess proceeds.--Excess proceeds held 
     under any trust agreement that are not needed for any of the 
     purposes described in clauses (iii) and (v) of paragraph 
     (4)(C) shall be transferred, from time to time, by the 
     trustee for deposit into the tribal school modernization 
     escrow account.
       (7) Limitations.--
       (A) Obligation to repay.--Notwithstanding any other 
     provision of law, the principal amount on any qualified 
     tribal school modernization bond issued under this subsection 
     shall be repaid only to the extent of any escrowed funds 
     furnished under paragraph (4)(C)(iii). No qualified tribal 
     school modernization bond issued by a tribe shall be an 
     obligation of, nor shall payment of the principal thereof be 
     guaranteed by, the United States, the tribes, nor their 
     schools.
       (B) Land and facilities.--Any land or facilities purchased 
     or improved with amounts derived from qualified tribal school 
     modernization bonds issued under this subsection shall not be 
     mortgaged or used as collateral for such bonds.
       (8) Sale of bonds.--Qualified tribal school modernization 
     bonds may be sold at a purchase price equal to, in excess of, 
     or at a discount from the par amount thereof.
       (9) Treatment of trust agreement earnings.--Any amounts 
     earned through the investment of funds under the control of a 
     trustee under any trust agreement described in paragraph (4) 
     shall not be subject to Federal income tax.
       (10) Investment of sinking funds.--Any sinking fund 
     established for the purpose of the payment of principal on a 
     qualified tribal school modernization bond shall be invested 
     in obligations issued by or guaranteed by the United States 
     or in such other assets as the Secretary of the Treasury may 
     by regulation allow.
       (c) Expansion of Incentives for Tribal Schools.--Chapter 1 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subchapter:

        ``Subchapter XI--Tribal School Modernization Provisions

``Sec. 1400K. Credit to holders of qualified tribal school 
              modernization bonds.

     ``SEC. 1400K. CREDIT TO HOLDERS OF QUALIFIED TRIBAL SCHOOL 
                   MODERNIZATION BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a qualified tribal school modernization bond on a 
     credit allowance date of such bond which occurs during the 
     taxable year, there shall be allowed as a credit against the 
     tax imposed by this chapter for such taxable year an amount 
     equal to the sum of the credits determined under subsection 
     (b) with respect to credit allowance dates during such year 
     on which the taxpayer holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a qualified tribal school modernization bond is 25 
     percent of the annual credit determined with respect to such 
     bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any qualified tribal school modernization bond is 
     the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (1), the applicable credit rate with respect to an issue is 
     the rate equal to an average market yield (as of the date of 
     sale of the issue) on outstanding long-term corporate 
     obligations (as determined by the Secretary).
       ``(4) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under part IV of 
     subchapter A (other than subpart C thereof, relating to 
     refundable credits).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year.
       ``(d) Qualified Tribal School Modernization Bond; Other 
     Definitions.--For purposes of this section--
       ``(1) Qualified tribal school modernization bond.--
       ``(A) In general.--The term `qualified tribal school 
     modernization bond' means, subject to subparagraph (B), any 
     bond issued as part of an issue under section 2(c) of the 
     Indian School Construction Act, as in effect on the date of 
     the enactment of this section, if--

[[Page 1303]]

       ``(i) 95 percent or more of the proceeds of such issue are 
     to be used for the construction, rehabilitation, or repair of 
     a school facility funded by the Bureau of Indian Affairs of 
     the Department of the Interior or for the acquisition of land 
     on which such a facility is to be constructed with part of 
     the proceeds of such issue,
       ``(ii) the bond is issued by a tribe,
       ``(iii) the issuer designates such bond for purposes of 
     this section, and
       ``(iv) the term of each bond which is part of such issue 
     does not exceed 15 years.
       ``(B) National limitation on amount of bonds designated.--
       ``(i) National limitation.--There is a national qualified 
     tribal school modernization bond limitation for each calendar 
     year. Such limitation is--

       ``(I) $200,000,000 for 2002,
       ``(II) $200,000,000 for 2003, and
       ``(III) zero after 2004.

       ``(ii) Allocation of limitation.--The national qualified 
     tribal school modernization bond limitation shall be 
     allocated to tribes by the Secretary of the Interior subject 
     to the provisions of section 2 of the Indian School 
     Construction Act, as in effect on the date of the enactment 
     of this section.
       ``(iii) Designation subject to limitation amount.--The 
     maximum aggregate face amount of bonds issued during any 
     calendar year which may be designated under subsection (d)(1) 
     with respect to any tribe shall not exceed the limitation 
     amount allocated to such government under clause (ii) for 
     such calendar year.
       ``(iv) Carryover of unused limitation.--If for any calendar 
     year--

       ``(I) the limitation amount under this subparagraph, 
     exceeds
       ``(II) the amount of qualified tribal school modernization 
     bonds issued during such year,

     the limitation amount under this subparagraph for the 
     following calendar year shall be increased by the amount of 
     such excess. The preceding sentence shall not apply if such 
     following calendar year is after 2010.
       ``(2) Credit allowance date.--The term `credit allowance 
     date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.

     Such term includes the last day on which the bond is 
     outstanding.
       ``(3) Bond.--The term `bond' includes any obligation.
       ``(4) Tribe.--The term ``tribe'' has the meaning given the 
     term ``Indian tribal government'' by section 7701(a)(40), 
     including the application of section 7871(d). Such term 
     includes any consortium of tribes approved by the Secretary 
     of the Interior.
       ``(e) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(f) Bonds Held by Regulated Investment Companies.--If any 
     qualified tribal school modernization bond is held by a 
     regulated investment company, the credit determined under 
     subsection (a) shall be allowed to shareholders of such 
     company under procedures prescribed by the Secretary.
       ``(g) Credits May Be Stripped.--Under regulations 
     prescribed by the Secretary--
       ``(1) In general.--There may be a separation (including at 
     issuance) of the ownership of a qualified tribal school 
     modernization bond and the entitlement to the credit under 
     this section with respect to such bond. In case of any such 
     separation, the credit under this section shall be allowed to 
     the person who on the credit allowance date holds the 
     instrument evidencing the entitlement to the credit and not 
     to the holder of the bond.
       ``(2) Certain rules to apply.--In the case of a separation 
     described in paragraph (1), the rules of section 1286 shall 
     apply to the qualified tribal school modernization bond as if 
     it were a stripped bond and to the credit under this section 
     as if it were a stripped coupon.
       ``(h) Treatment for Estimated Tax Purposes.--Solely for 
     purposes of sections 6654 and 6655, the credit allowed by 
     this section to a taxpayer by reason of holding a qualified 
     tribal school modernization bonds on a credit allowance date 
     shall be treated as if it were a payment of estimated tax 
     made by the taxpayer on such date.
       ``(i) Credit May Be Transferred.--Nothing in any law or 
     rule of law shall be construed to limit the transferability 
     of the credit allowed by this section through sale and 
     repurchase agreements.
       ``(j) Credit Treated as Allowed Under Part IV of Subchapter 
     A.--For purposes of subtitle F, the credit allowed by this 
     section shall be treated as a credit allowable under part IV 
     of subchapter A of this chapter.
       ``(k) Reporting.--Issuers of qualified tribal school 
     modernization bonds shall submit reports similar to the 
     reports required under section 149(e).''.
       (d) Additional Provisions.--
       (1) Sovereign immunity.--This section and the amendments 
     made by this section shall not be construed to impact, limit, 
     or affect the sovereign immunity of the Federal Government or 
     any State or tribal government.
       (2) Application.--This section and the amendments made by 
     this section shall take effect on the date of the enactment 
     of this Act with respect to bonds issued after December 31, 
     2001, regardless of the status of regulations promulgated 
     thereunder.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself, Mr. Helms, Mr. Brownback, Mr. 
        Leahy, Mr. Reid, Mr. Nelson of Nebraska, Mrs. Clinton, Mr. 
        Dodd, Mr. Baucus, Mrs. Boxer, Mr. Byrd, and Mr. Carper):
  S. 244. A bill to provide for United States policy toward Libya; to 
the Committee on Foreign Relations.
  Mrs. FEINSTEIN. Mr. President, yesterday a Scottish court, meeting in 
the Netherlands, convicted Abdel Basset Ali Megrahi for the 1988 
bombing of Pan American flight 103 over Lockerbie, Scotland. That court 
sentenced him to life in prison. Two-hundred seven people, including 
189 Americans, lost their lives in this barbaric act.
  In addition, the court conclusively tied the planning and execution 
of the bombing to Libya and Libya intelligence.
  While no verdict could have fully comforted the families of the 
victims, eased their anguish, or removed the haunting images from their 
minds, they can take some solace in the fact that guilt has now been 
established. I would like to personally thank the families of the 
victims for their hard work, for their dedication, and for the 
unyielding determination to ensure that their loved ones did not die in 
vain. The international community truly owes them a debt of gratitude.
  Nevertheless, the quest for justice is not over. Now some have 
suggested the verdict brings the matter to a close, and at the 
sanctions in place since 1992 should now be lifted. We, however, 
believe that would be a serious mistake and an insult to the victims 
and their families. U.N. Resolutions have required Libya to pay 
compensation to the families of the victims of Pan Am 103 if a guilty 
verdict is rendered, and, second, to officially end support for 
international terrorism before the multilateral sanctions can 
permanently be lifted.
  A formal lifting of the sanctions now would send Libya the wrong 
signal. It would indicate that the international community has absolved 
Libya of its role in the bombing, a role, to repeat, clearly 
established by the Scottish court. It would say that Libya should be 
accepted back into the community of responsible nations. It would 
bestow upon Colonel Qadhafi's regime a respect and credibility it seeks 
but has not earned.
  The United States must press Libya to publicly accept its role in the 
bombing of Pan Am Flight 103, issue an apology, and compensate the 
victims' families.
  Consequently, today we are introducing the Justice for the Victims of 
Pan Am 103 Act of 2001. This legislation is cosponsored by Senators 
Helms, Brownback, Leahy, Reid of Nevada, Nelson of Nebraska, Clinton, 
Dodd, Baucus, Boxer, Byrd, and Carper.
  The legislation states that it shall be the policy of the United 
States to oppose lifting U.N. and U.S. sanctions against Libya until 
all cases of American victims of Libyan terrorism have been resolved; 
the Government of Libya has accepted responsibility, has issued an 
apology, has paid compensation to the victims' families of Pan Am 103; 
and has taken real and concrete steps to end support of international 
terrorism; and the legislation would prohibit assistance to the 
Government of Libya until the President determines and certifies that 
Libya has fulfilled the above requirements.
  In addition, the legislation expresses the sense of the Senate that 
the Government of Libya should be condemned for its support of 
international terrorism and the bombing of Pan Am 103.
  Second, the Government of Libya should accept responsibility for the 
bombing, issue a public apology, and provide due compensation.
  Finally, the President, the Secretary of State, and other U.S. 
officials should encourage other countries and the United Nations to 
maintain sanctions against Libya until it fulfills the above 
requirements. Until Libya accepts responsibility for its actions, 
apologizes,

[[Page 1304]]

and ends its support for international terrorism, the United States 
should leave and will leave no stone unturned in the quest for justice.
  We owe the victims of Pan Am 103 no less.
  Mr. President, I yield the floor.

                          ____________________