[Congressional Record (Bound Edition), Volume 147 (2001), Part 10]
[Senate]
[Pages 14241-14254]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ALLARD:
  S. 1224. A bill to amend title XVIII of the Social Security Act to 
extend the availability of Medicare cost contracts for 10 years; to the 
Committee on Finance.
  Mr. ALLARD. Mr. President, I am pleased to introduce the Medicare 
Cost Contract Extension Act of 2001.
  For decades, the Centers for Medicare and Medicaid Services (formerly 
the Health Care Financing Administration), has successfully offered 
health insurance providers two contracts to choose from: a Medicare 
risk contract, (Medicare+Choice), and Medicare cost contract. In an 
effort to expand and refine the Medicare+Choice program, the Balanced 
Budget Act of 1997 terminated the Medicare cost contract program 
effective December 31, 2002. To prevent this termination, in 1999 
Congress passed the Balanced Budget and Refinement Act, which extended 
cost contracts for two years through 2004.
  I am pleased that Congress passed into law this two-year extension of 
Medicare cost contracting. This extension will help Medicare 
beneficiaries in rural communities in the United States keep the 
quality health care they currently receive under their cost contract 
plans.
  Congress should work to extend further Medicare cost contracts. The 
Medicare Cost Contract Extension Act of 2001 would accomplish this by 
extending by ten years the cost contract sunset date of December 31, 
2004 to December 31, 2014.
  Currently 298,683 Americans, and 18,050 Coloradans receive health 
care through Medicare cost contracts. Of the 18,050 Coloradans with 
cost contract plans, 16,075 (89 percent) of them live in rural 
Colorado, where few Medicare and Medicare+Choice providers operate. If 
Medicare cost contracts are eliminated, essentially two health care 
options for Medicare beneficiaries would remain: traditional Medicare 
fee-for-service, which can include Medigap, and Medicare+Choice. If 
Medicare cost contracts are eliminated, as scheduled in 2004, then 
thousands of seniors will be forced into these other Medicare programs.
  Basic Medicare and Medicare+Choice providers, however, are few in 
rural Colorado, where health care demands are great. In addition to the 
fact that 89 percent of Colorado's seniors with cost contract plans 
live in rural areas, 6,358, 35 percent, of Colorado Medicare managed 
care beneficiaries live in counties in which Medicare+Choice is not 
even available. Further, cost contract plans are more widely used 
across the State than are Medicare+Choice plans: Medicare+Choice is the 
Medicare option of beneficiaries in only 20 of Colorado's 64 counties, 
while Medicare cost contracts are enjoyed by seniors in 46 counties in 
Colorado.
  In addition to accessibility, basic Medicare has fewer benefits than 
cost contract plans, and Medigap has higher out-of-pocket expenses than 
cost contract plans. Cost contract plans often provide more benefits 
than Medigap, such as preventive care and prescription drug benefits, 
and Medicare Part B deductible coverage. In addition, some cost 
contract plans offer one rate for older Medicare beneficiaries, while 
Medigap plans charge higher premiums for beneficiaries who are older.
  Further, beneficiaries under Medicare cost contracts value the 
services

[[Page 14242]]

cost contracting companies offer. According to a 1999 U.S. Department 
of Health and Human Services study, the Medicare Managed Care Consumer 
Assessment of Health Plans Study, CAHPS, Medicare beneficiaries gave 
Medicare cost contract health insurers higher ratings than non-cost 
contract providers. Beneficiaries noted cost contracting HMOs solved 
problems, provided care, and provided customer service better than the 
majority of non-cost contracting providers. These ratings demonstrate 
that cost contract insurers provide the quality service seniors want 
and the health benefits they need.
  While the goal of the Balanced Budget Act of 1997 was to provide an 
alternative to basic Medicare through Medicare+Choice, Medicare+Choice 
has not accomplished this goal in rural America. One of the objectives 
of President Bush and Tommy Thompson, the Secretary of Health and Human 
Services, is to increase in the near future Medicare+Choice enrollment. 
I support and have confidence in this effort. Until Medicare+Choice 
coverage is readily available to rural cost contract recipients 
Congress should extend the current cost contract sunset for an 
additional ten years.
  Medicare beneficiaries deserve a choice in how they receive their 
health care. Congress should allow one of these choices to remain 
Medicare cost contracts. On behalf of the 298,683 U.S. and 18,050 
Colorado Medicare beneficiaries who obtain their health care from cost 
contract plans, I urge my colleagues to extend Medicare cost contract 
plans for ten years.
                                 ______
                                 
      By Mr. ALLEN (for himself and Mr. Warner):
  S. 1225. A bill to require the Secretary of the Treasury to redesign 
the $1 bill so as to incorporate the preamble to the Constitution of 
the United States, the Bill of Rights, and a list of the Articles of 
the Constitution on the reverse side of such currency; to the Committee 
on Banking, Housing, and Urban Affairs.
  Mr. ALLEN. Mr. President, I rise today to introduce the Liberty Bill 
Act, which directs the United States Treasury to print an abridged 
Constitution with the titles of salient articles and amendments of the 
Constitution of the United States on the back of our one dollar bill. 
Indeed, the redesign of a Ten, Twenty, Fifty or 100 dollar bill could 
incorporate this goal.
  This important and innovative legislation is designed to educate, 
encourage and promote the understanding of the fundamental principles, 
the concept of self-government, free will and the protection of 
individual rights, of the United States for all Americans and people 
around the world who may use U.S. currency.
  I believe that it is most fitting that the idea for the Liberty Bill 
Act began in a classroom in Liberty Middle School, in Ashland VA, and 
carried forth by students at Patrick Henry High School in Hanover 
County, VA, by students who wanted to do something good for this 
country and its democratic principles.
  A little more than three years ago at Virginia's Poor Farm Park's 
amphitheatre, 170 students, representing Liberty Middle School, recited 
the abridged Constitution as part of a school project. The so-called 
Liberty Bill project left them with a deeper appreciation of the 
Constitution and how important it is that we, as Americans, fully 
understand our heritage and the principles of freedom, justice and 
liberty. And, fortunately for the rest of us, the Liberty Bill project 
also left them with the desire to communicate this appreciation to all 
Americans and to all people worldwide.
  I am proud to say that these students did not simply stop their 
education at this juncture. Instead, they worked with their teacher, 
Mr. Randy Wright, to create a proposal that would serve as a reminder 
of our rights and responsibilities as citizens of the United States.
  After careful thought and consideration, the students decided that 
putting the thoughts of our Constitution on the back of the dollar 
bill, something that passes through the hands of millions of people 
around the world every day, would serve as the powerful reminder of how 
important the Constitution is to our representative democracy.
  In addition, the newly revised dollar bill would teach the progress 
of American history, highlighting amendments that were added to the 
Constitution as our nation evolved into the free and prosperous global 
leader it is today. For example, despite a strong belief in what some 
termed the ``inherent and unalienable rights of man,'' the fledgling 
American government did not protect the individual rights and liberties 
of all Americans. In fact, it was not until 1865, upon the adoption of 
amendment XIII, slavery was abolished and all races were guaranteed 
their freedom under the law.
  In addition, the right to vote and have a say in one's government and 
the policies that affect everyday life, was not extended to all 
Americans. In fact, only white men could vote until amendment XV, 
proclaimed in 1870, provided that all men could vote, regardless of 
their race or status as a former slave. Later, in 1920, amendment XIX 
rightfully extended suffrage to all of America's people, securing the 
right of women to have a voice in our government as well. For a 
representative democracy is not truly representative until all people 
are heard.
  Referencing constitutional amendments, such as amendments XIII, XV, 
and XIX on our dollar bill, would help to highlight not only the 
adaptive qualities of our Constitution and its ability to reflect an 
increasingly enlightened awareness of the rights of all people, but 
teach us to appreciate and value these freedoms and rights as 
Americans.
  The Constitution of the United States is one of the most important 
documents in all of history. Yet in this day and age many Americans do 
not even know all the rights and protections enshrined in the first ten 
amendments, our Bill of Rights. Many Americans fail to recognize the 
Constitution as framework of the United States government and its 
impact on our government and prosperity as a nation of free people.
  The dollar bill is the most used and most recognized currency in the 
world, every day it pass through the hands of millions of people around 
the world. And, as the students of Liberty Middle School asked 
themselves three years ago: ``What better way than to highlight the 
Constitution and promote the ideals and values it represents than 
putting the principles it embodies on the back of the dollar bill?''
  Every day I come across adults who complain that they are powerless 
to affect our political process or laws. They claim that even their 
vote will not make a difference.
  Yet, a group of middle school students, through their commitment and 
determination, have persevered.
  In just three years these students have taken up the challenge to 
help ensure every American understands the basic precepts of our 
treasured Constitution. This group of students developed a plan to 
reach this goal. They have gained media coverage and the endorsement of 
editorialists nationwide and their local governments, receiving acclaim 
from such notables as the Wall Street Journal and CNN News, although, I 
have to believe that one of the most notable endorsements of all was 
from a middle school student named Jessie, who said of the Liberty Bill 
project: ``A fantastic learning experience, the Liberty Bill has 
inspired me to pursue politics like never before.''
  Because of their work and dedication, the impact of the Liberty Bill 
project on the education of our students can be felt nationwide. A 
remarkable 21 schools, representing seven states, have also joined 
their effort, ranging from Bedwell Elementary School in New Jersey and 
Festus High School in Festus, MO, to Dickinson High School in North 
Dakota and Newcastle Middle School in Wyoming.
  The students have taken their effort all the way to Capitol Hill. The 
Liberty Bill Act, H.R. 903, introduced in the 106th Congress eventually 
secured 107 consponsors and was supported by leadership on both sides 
of the aisle, including Speaker Hastert, Majority

[[Page 14243]]

Leader Armey, Majority Whip DeLay, and Minority Leader Gephardt. In 
addition, eight Committee Chairmen and 3 Ranking Members endorsed the 
Liberty Bill proposal. I am confident that under the guidance of 
Congressman Cantor, the Liberty Bill will enjoy even more success 
during the 107th Congress in the House of Representatives and I am 
looking forward to working with my colleagues to secure the Liberty 
Bill's success in the Senate.
  Last February, I had the opportunity to attend a Liberty Bill Project 
presentation performed by students from the Patrick Henry High School 
of Ashland, VA. I cannot tell you how encouraging it is to see a group 
of young people who really get, who realize how important a full 
understanding of our Constitution is and the values it represents. Not 
only was this presentation one of the most wholesome and inspirational 
I have seen, it convinced me that the Liberty Bill Project is an 
exemplary way of capturing our imagination and providing a major 
contribution toward our understanding of our Constitution, history, and 
form of government.
  Therefore, it is my privilege to stand here today, joining my 
colleague in the House of Representatives, Congressman Eric Cantor, and 
introduce the companion legislation in the Senate. I am proud to act as 
a representative for the hard work and dedication of our students and 
support their efforts to teach all Americans about the importance of 
the values and principles embodied by our Constitution.
  Finally, I would like to take this opportunity to commend the fine 
efforts of the students of Liberty Middle School and their teacher, Mr. 
Randy Wright. Their success is a lesson to all of us, demonstrating 
that with initiative and hard work we can easily, positively educate 
Americans.
  Thomas Jefferson once said, ``If a Nation expects to be ignorant and 
free, in a state of civilization, it expects what never was and never 
will be.'' This remarkable group of young people has shown all of us 
what can be accomplished through dedication, creativity and a desire to 
do what has not been done before.
  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. 1225

       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 ``Liberty Dollar Bill Act''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) many Americans are unaware of the provisions of the 
     Constitution of the United States, one of the most remarkable 
     and important documents in world history;
       (2) a version of this important document, consisting of the 
     preamble, a list of the Articles, and the Bill of Rights, 
     could easily be placed on the reverse side of the $1 Federal 
     reserve note;
       (3) the placement of this version of the Constitution on 
     the $1 Federal reserve note, a unit of currency used daily by 
     virtually all Americans, would serve to remind people of the 
     historical importance of the Constitution and its impact on 
     their lives today; and
       (4) Americans would be reminded by the preamble of the 
     blessings of liberty, by the Articles, of the framework of 
     the Government, and by the Bill of Rights, of some of the 
     historical changes to the document that forms the very core 
     of the American experience.

     SEC. 3. REDESIGN OF REVERSE SIDE OF THE BILL.

       (a) In General.--Section 5114 of title 31, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) Liberty Dollar Bills.--
       ``(1) In general.--In addition to the requirements of 
     subsection (b) (relating to the inclusion of the inscription 
     `In God We Trust' on all United States currency) and the 
     eighth undesignated paragraph of section 16 of the Federal 
     Reserve Act, the design of the reverse side of the $1 Federal 
     reserve notes shall incorporate the preamble to the 
     Constitution of the United States, a list of the Articles of 
     the Constitution, and a list of the first 10 amendments to 
     the Constitution.
       ``(2) Design--Subject to paragraph (3), the preamble of the 
     Constitution of the United States, the list of the Articles 
     of the Constitution, and the first 10 amendments to the 
     Constitution shall appear on the reverse side of the $1 
     Federal reserve note, in such form as the Secretary deems 
     appropriate.
       ``(3) Authority of secretary.--The requirements of this 
     subsection shall not be construed as--
       ``(A) prohibiting the inclusion of any other inscriptions 
     or material on the reverse side of the $1 Federal reserve 
     note that the Secretary may determine to be necessary or 
     appropriate; or
       ``(B) limiting any other authority of the Secretary with 
     regard to the design of the $1 Federal reserve note, 
     including the adoption of any design features to deter the 
     counterfeiting of United States currency.''.
       (b) Date of Application.--The amendment made by subsection 
     (a) shall apply to $1 Federal reserve notes that are first 
     placed into circulation after December 31, 2001.

  Mr. WARNER. Mr. President, I am deferring to my junior colleague from 
Virginia and am pleased to be an original cosponsor of legislation 
introduced by Senator Allen to place actual language from the 
Constitution on the back of the one dollar bill.
  This legislation is related to a bill I introduced last year based on 
the idea of students at Liberty Middle School in Ashland, Va. Working 
with their teacher, Randy Wright, this began as a school project 
several years ago. I commend these students and Mr. Wright for their 
continued dedication on seeing this idea realized.
  If you would think for a minute about the circulation of one dollar. 
it is fascinating to imagine how many people this message will reach, 
just how many hands a dollar will pass through even in just one year. 
Moreover, I believe this initiative exemplifies many of the principles 
laid out in the Constitution and the people's role in our government.
  The Constitution is our Nation's most noble achievement. It embodies 
the freedoms and liberties we enjoy as Americans, and gives value and 
meaning to the laws by which we live. I agree with the students of 
Liberty Middle School that the Constitution belongs to the people. It 
should be in their hands.
  I am pleased to support this important initiative.
                                   ____
                                 
      By Mr. CAMPBELL:
  S. 1226. A bill to require the display of the POW/MIA flag at the 
World War II memorial, the Korean War Veterans Memorial, and the 
Vietnam Veterans Memorial; to the Committee on the Judiciary.
  Mr. CAMPBELL. Mr. President, today I introduce the POW/MIA Memorial 
Flag Act of 2001. I am pleased to be joined by my friend and colleague 
Senator Allard as an original co-sponsor.
  I want to begin my statement today describing a powerful and 
emotional sight that moves us to the core of our faith and beliefs 
about America and about those who served in the Armed Forces of our 
Nation.
  Many of us have visited one or more of the military academies that 
train America's future military leaders. These academies have varied 
missions and yet all of them share in the critical task of developing 
leaders for their particular branch of service. On the grounds of each 
academy is a chapel, spectacular places that are easily identifiable as 
places of worship.
  In each chapel, a place has been reserved for those prisoners of war 
and the missing in action from each particular service. A pew has been 
set aside and marked by a candle, a powerful symbol that not all have 
returned from battle. These hallowed places have been set aside so that 
all POW's and MIA's are remembered with dignity and honor. It is a 
moving and emotional experience to pause at these reserved pews, to be 
encouraged by the burning candle, to recall the valor and sacrifice of 
those soldiers, sailors, marines, and pilots and to be inspired today 
by what they have done.
  Yes, I believe we can and should do more to honor the memory of all 
the POW's and MIA's who have so gallantly served our nation.
  Therefore, today I am introducing the POW/MIA Memorial Flag Act of 
2001. This act would require the display of the POW/MIA flag at the 
World War II Memorial, the Korea War Veterans Memorial, and the Vietnam 
Veterans Memorial, all here in the Nation's Capital, on any day on 
which the United States flag is displayed.
  Congress has officially recognized the POW/MIA flag. Displaying this 
flag

[[Page 14244]]

would be a powerful symbol to all Americans that we have not forgotten, 
and will not forget.
  As my colleagues well know, the United States has fought in many 
wars, and thousands of Americans who served in those wars were captured 
by the enemy or listed as missing in action. In 20th century wars 
alone, more than 147,000 Americans were captured and became prisoners 
of war; of that number more than 15,000 died while in captivity. When 
we add to the number those who are still missing in action, we realize 
that more can be done to honor their commitment to duty, honor, and 
country.
  The display of the POW/MIA flag would be a forceful reminder that we 
care not only for them, but also for their families who personally 
carry with them the burden of sacrifice. We want them to know that they 
do not stand alone, that we stand with them and beside them, as they 
remember the loyalty and devotion of those who served.
  As a veteran who served in Korea, I personally know that the 
remembrance of another's sacrifice in battle is one of the highest and 
most noble acts we can do. Let us now demonstrate our indebtedness and 
gratitude for those who served that we might live in freedom.
  Just as those special reserved pews in the chapels of the military 
academies recall the spirit and presence of our POW's and MIA's, so too 
will the display of their flag over the World War II Memorial, the 
Korean War Veterans Memorial, and the Vietnam Veterans Memorial be a 
special reminder that we have not forgotten, and will not forget. This 
coming September 21, 2001, is National POW/MIA Recognition Day. I 
invite my Senate colleagues to please join me in passing this bill by 
then to display the POW/MIA flag on this special day.
  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. 1226

       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 ``POW/MIA Memorial Flag Act of 
     2001''.

     SEC. 2. DISPLAY OF POW/MIA FLAG AT WORLD WAR II MEMORIAL, 
                   KOREAN WAR MEMORIAL, AND VIETNAM VETERANS 
                   MEMORIAL.

       (a) Requirement for Display.--Subsection (d)(3) of section 
     902 of title 36, United States Code, is amended by striking 
     ``The Korean War Veterans Memorial and the Vietnam Veterans 
     Memorial'' and inserting ``The World War II memorial, the 
     Korean War Veterans Memorial, and the Vietnam Veterans 
     Memorial''.
       (b) Days for Display.--Subsection (c)(2) of that section is 
     amended--
       (1) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (2) by inserting before subparagraph (B), as so 
     redesignated, the following new subparagraph (A):
       ``(A) in the case of display at the World War II memorial, 
     Korean War Veterans Memorial, and Vietnam Veterans Memorial 
     (required by subsection (d)(3) of this section), any day on 
     which the United States flag is displayed;''.
       (c) Display on Existing Flagpole.--No element of the United 
     States Government may construe the amendments made by this 
     section as requiring the acquisition of erection of a new or 
     additional flagpole for purposes of the display of the POW/
     MIA flag.
                                 ______
                                 
      By Mr. THURMOND (for himself and Mr. Hatch):
  S. 1228. A bill to amend title 18, United States Code, to authorize 
pilot projects under which private companies in the United States may 
use Federal inmate labor to produce items that would otherwise be 
produced by foreign labor, to revise the authorities and operations of 
Federal Prison Industries, and for other purposes; to the Committee on 
the Judiciary.
  Mr. THURMOND. Mr. President, I rise today to introduce legislation 
that would comprehensively reform Federal Prison Industries or UNICOR. 
It would eliminate the preference that Prison Industries currently has 
to make products for the Federal Government, while for the first time 
allowing private companies to partner with FPI for inmate labor. These 
changes would benefit all interested parties without endangering this 
essential inmate work program. I am pleased to have Senator Hatch as an 
original cosponsor for this important bill.
  FPI is a self-sufficient government corporation that provides work 
for over 20,000 inmates in the Federal Bureau of Prisons. This program 
is critical to keeping inmates productively occupied, which helps keep 
prisons safe for staff, inmates, and the public. At the same time, 
inmates learn important job skills that they can use when they return 
to society. FPI has been proven to be the best prison program in 
helping prevent inmates from returning to a life of crime. It does all 
of this without costing any taxpayer money.
  Prison Industries is an especially critical program today as the 
inmate population continues to grow dramatically. The number of Federal 
prisoners has doubled since 1989, and is continuing to grow every year. 
For the Bureau of Prisons to maintain just 25 percent of the work-
eligible inmates in FPI, it must produce more and more products to keep 
its growing population working and occupied.
  Since it was created in 1934, Prison Industries has had the authority 
to sell products only to Federal agencies and not to the private 
sector. In return, Federal agencies generally must purchase items that 
FPI makes, if it can provide them on time and at competitive prices. 
This is known as the mandatory source requirement.
  The equity of mandatory source has been debated for years. I believe 
that we should resolve this issue once and for all in this Congress by 
eliminating this governmental preference. However, we should do so in a 
way that will maintain, not destroy, this successful work program.
  The preference that FPI currently has regarding the Federal market is 
essential as long as Prison Industries is only permitted to sell 
products to Federal agencies. However, Prison Industries can do much 
more and actually be a partner with the private sector if it has the 
opportunity. Thus, this bill would eliminate the mandatory source 
requirement, and it would allow private businesses to contract with FPI 
for inmates to make the company's products in the commercial market, 
both domestically and overseas.
  One of the most promising areas for prison labor today is overseas 
markets where American companies simply cannot compete today. 
Economists, including respected labor expert Professor Richard Freeman, 
have argued that one of the best uses of prison labor is to produce 
goods that are not made in the United States, such as toys. This could 
help the American economy by bringing jobs back that we have lost. Of 
course, if prisoners make products that are not made in the United 
States, they are not displacing American workers. However, jobs would 
not only be created in prisons but also in the private sector. Private 
companies would provide raw materials, transport goods, and otherwise 
supplement the prison labor. This is a creative way to bring back 
industries whose entire economic support structure is overseas.
  Also, this could prove to help FPI reduce its need to make the type 
of products that it makes today while keeping inmates just as busy. It 
would also make the work experience for the inmates even more practical 
if they were making products for the private companies. Thus, the 
legislation would permit private companies to contract with FPI to 
provide the labor to make products that are otherwise being made by 
foreign labor outside the United States, and pay the inmates at the 
current prison industry wages.
  We must keep in mind that FPI has hidden burdens that increase its 
labor costs. Inmates are significantly less productive than private 
workers for various reasons including limited skills, less education, 
and the security needs at prisoner work areas. Nevertheless, under this 
legislation, when FPI contracted with private companies domestically, 
it would pay inmates the same as private employees who do the same type 
of work in the area. These ``comparable locality wages'' are identical 
to the wages that state prison industry work programs provide today. As 
under state prison work programs, the pay could never be below the 
Federal minimum wage.

[[Page 14245]]

  The additional money that inmates would earn under these new higher 
wages would be used to help pay debts that the inmate owes to society, 
such as more restitution to victims and child support obligations. 
Also, if funds were available, inmates would reimburse the government 
for a portion of their room and board costs.
  Further, the bill would increase the size of the Prison Industries 
Board of Directors to provide greater representation, including members 
recommended by the Senate and House leadership. Also, decisions about 
whether a product is otherwise being made by foreign workers outside 
the United States would be determined by an independent panel, separate 
from the Prison Industries Board. This panel would consist of 
representatives of the Departments of Commerce and Labor, as well as 
labor unions and the business community.
  The cornerstone of the legislation is that the mandatory source 
requirement would be eliminated, which is a change that has long been 
sought by certain business and labor interests. The bill would phase it 
out over five years to permit a smooth transition and prevent any major 
disruptions in inmate labor programs. However, during this period, FPI 
would be prohibited from expanding beyond its current mandatory source 
levels in any existing federal market.
  I believe that this bill represents comprehensive, fundamental reform 
of Prison Industries. It would not be an easy task for Prison 
Industries to transform its market, as this bill would require. 
However, I think this legislation constitutes a fair and equitable 
compromise for this longstanding issue. It eliminates the mandatory 
source once and for all. At the same time, it creates new markets for 
prison labor, especially overseas markets where America simply cannot 
compete today.
  It is time that we took an entirely new approach toward the issue of 
prison labor. We have the opportunity to move Prison Industries into 
the new century as a new, dynamic partner with the private sector. I 
encourage my colleagues to join me and Senator Hatch in supporting this 
bold reform initiative.
  I ask unanimous consent that the text of the bill and a section by 
section analysis be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1228

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Inmate Work Act of 
     2001''.

     SEC. 2. AUTHORITY TO CARRY OUT PILOT PROJECTS USING FEDERAL 
                   INMATE LABOR TO REPLACE FOREIGN LABOR.

       (a) Foreign Labor Substitute Pilot Projects Authorized.--
     Chapter 85 of title 18, United States Code, is amended in 
     section 1761--
       (1) in subsection (b), by striking ``This chapter'' and 
     inserting ``This section'';
       (2) in subsection (c), by striking ``this chapter'' and 
     inserting ``this section'';
       (3) by redesignating subsection (d) as subsection (f); and
       (4) by adding after subsection (c) the following new 
     subsections:
       ``(d) This section shall not apply to goods, wares, or 
     merchandise manufactured, produced, or mined by convicts or 
     prisoners who are participating in industrial operations of 
     Federal Prison Industries.
       ``(e) This section shall not apply to goods, wares, or 
     merchandise manufactured, produced, or mined by convicts or 
     prisoners who are participating in any pilot project approved 
     as a foreign labor substitute by the Foreign Labor Substitute 
     Panel established under section 1762.''.
       (b) Foreign Labor Substitute Panel.--(1) Section 1762 of 
     such chapter is amended to read as follows:

     ``Sec. 1762. Foreign Labor Substitute Panel

       ``(a) The Attorney General shall establish a panel to be 
     known as the Foreign Labor Substitute Panel (in this section 
     referred to as the `Panel').
       ``(b) The Panel shall be composed of eight members, each of 
     whom shall serve at the pleasure of the Attorney General, and 
     who shall be appointed by the Attorney General as follows:
       ``(1) One member who shall be an officer, employee, or 
     other representative of the Department of Commerce.
       ``(2) One member who shall be an officer, employee, or 
     other representative of the Department of Labor.
       ``(3) One member who shall be an officer, employee, or 
     other representative of the International Trade Commission.
       ``(4) One member who shall be an officer, employee, or 
     other representative of the Small Business Administration.
       ``(5) Two members, each of whom shall be an officer, 
     employee, or other representative of the business community.
       ``(6) Two members, each of whom shall be an officer, 
     employee, or other representative of organized labor.
       ``(c)(1) Members of the Panel shall not receive pay, 
     allowances, or benefits by reason of their service on the 
     Panel.
       ``(2) Each member shall receive travel expenses, including 
     per diem in lieu of subsistence, in accordance with 
     applicable provisions under subchapter I of chapter 57 of 
     title 5, United States Code.
       ``(d) The Panel shall review proposals for pilot projects 
     submitted to the Panel. For each proposal reviewed, the Panel 
     shall approve the pilot project as a foreign labor substitute 
     if, and only if, the Panel determines that the pilot project 
     specified in the proposal satisfies each of the following 
     requirements:
       ``(1) The pilot project is to be carried out by one or more 
     private United States companies.
       ``(2) The goods, wares, or merchandise proposed to be 
     manufactured, produced, or mined wholly or in part by Federal 
     convicts or prisoners under the pilot project would otherwise 
     be manufactured, produced, or mined by foreign labor.
       ``(e) Any determination of the Panel under subsection (d) 
     shall be made available to the public upon request.''.
       (2) In the table of sections at the beginning of such 
     chapter, the item relating to section 1762 is amended to read 
     as follows:

``1762. Foreign Labor Substitute Panel.''.

     SEC. 3. RESTATEMENT AND IMPROVEMENT OF FEDERAL PRISON 
                   INDUSTRIES PROGRAM.

       (a) In General.--Sections 4121, 4122, and 4123 of title 18, 
     United States Code, are amended to read as follows:

     ``Sec. 4121. Federal Prison Industries: status, mission, and 
       management

       ``(a) Status.--Federal Prison Industries is a Government 
     corporation. The headquarters of the corporation is in the 
     District of Columbia.
       ``(b) Mission.--The mission of Federal Prison Industries is 
     to carry out industrial operations in accordance with this 
     chapter using eligible inmate workers.
       ``(c) Board of Directors.--
       ``(1) Composition.--Federal Prison Industries is 
     administered by a board of directors composed of 12 members 
     appointed by the Attorney General as follows:
       ``(A) One member appointed from among individuals 
     recommended by the Speaker of the House of Representatives.
       ``(B) One member appointed from among individuals 
     recommended by the minority leader of the House of 
     Representatives.
       ``(C) One member appointed from among individuals 
     recommended by the majority leader of the Senate.
       ``(D) One member appointed from among individuals 
     recommended by the minority leader of the Senate.
       ``(E) Two members who shall be representatives of the 
     business community.
       ``(F) Two members who shall be representatives of organized 
     labor.
       ``(G) One member who shall be representative of victims of 
     crime.
       ``(H) One member who shall be representative of the 
     prisoner rehabilitation community.
       ``(I) Two members whose background or expertise the 
     Attorney General considers appropriate.
       ``(2) Terms.--
       ``(A) Except as provided in this paragraph, each member 
     shall be appointed for a term of four years.
       ``(B) As designated by the Attorney General at the time of 
     appointment, of the members first appointed--
       ``(i) 3 members shall be appointed for terms of 1 year;
       ``(ii) 3 members shall be appointed for terms of 2 years;
       ``(iii) 3 members shall be appointed for terms of 3 years; 
     and
       ``(iv) 3 members shall be appointed for terms of 4 years.
       ``(C) Any member appointed to fill a vacancy occurring 
     before the expiration of the term for which the member's 
     predecessor was appointed shall be appointed only for the 
     remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office. A vacancy in the Board shall be filled in the manner 
     in which the original appointment was made.
       ``(3) Compensation.--A member of the Board may not receive 
     pay, allowances, or benefits by reason of his or her service 
     on the Board.
       ``(4) Quorum.--Seven members of the Board constitutes a 
     quorum but a lesser number may hold hearings.

[[Page 14246]]

       ``(5) Chair.--The Chair of the Board is elected by the 
     members.

     ``Sec. 4122. Federal Prison Industries: operating objectives, 
       standards, and requirements

       ``(a) Operating Objectives.--Federal Prison Industries 
     shall carry out its industrial operations so as to achieve 
     each of the following objectives:
       ``(1) To increase public safety by reducing the rate of 
     recidivism by providing as many inmates as possible with an 
     opportunity to gain meaningful employment and vocational 
     skills and improve their chances of becoming productive and 
     law-abiding citizens after release from prison.
       ``(2) To minimize any adverse effects of the operations on 
     domestic companies or workers.
       ``(3) To provide meaningful employment and vocational 
     training for not less than 25 percent of eligible inmate 
     workers.
       ``(4) To provide inmate workers with a source of income 
     with which they may facilitate their ability to contribute to 
     the discharge of their financial obligations.
       ``(5) To generate sufficient revenue to fund those 
     operations.
       ``(6) To provide products and services that are market 
     quality and competitively priced.
       ``(b) Performance Standards.--Federal Prison Industries 
     shall carry out its industrial operations in compliance with 
     the following standards, as applicable to correctional 
     industry programs:
       ``(1) United Nations standards.
       ``(2) International Labor Organization conventions to which 
     the United States is a signatory party.
       ``(3) Federal standards.
       ``(4) American Correctional Association standards.
       ``(c) Voluntariness.--Federal Prison Industries shall carry 
     out its industrial operations only with inmate workers who 
     participate in those operations voluntarily.
       ``(d) Wage Rates.--Unless otherwise provided by law, each 
     inmate worker participating in the industrial operations of 
     Federal Prison Industries shall be paid at a wage rate 
     prescribed by the Board of Directors of Federal Prison 
     Industries.
       ``(e) Protection of Certain Information.--Federal Prison 
     Industries shall carry out its industrial operations so as to 
     ensure that, in the production of a product or the 
     performance of a service, inmate workers do not have access 
     to--
       ``(1) personal or financial information about any citizen 
     of the United States without prior notice of the access being 
     provided to that citizen, including information relating to 
     the citizen's real property, however described, unless that 
     information is publicly available; or
       ``(2) information that is classified in the national 
     security or foreign policy interests of the United States.
       ``(f) Vocational Training.--At the end of each fiscal year, 
     Federal Prison Industries shall, if the Board of Directors 
     determines that it is financially feasible to do so, 
     contribute not less than 20 percent of its net profits for 
     that fiscal year to provide for the vocational training of 
     inmates without regard to their industrial or other 
     assignments.
       ``(g) Exemption From Public Contracting and Procurement 
     Laws.--Federal Prison Industries is exempt from all laws and 
     regulations governing public contracting and the procurement 
     of property or services by an agency of the Federal 
     Government.
       ``(h) Liability.--The sole remedy for injury, death, or 
     loss resulting from negligence in the design or production of 
     a product, or in the performance of a service, by Federal 
     Prison Industries shall be as follows:
       ``(1) In the case of a person suffering an injury, death, 
     or loss in the performance of duties as an employee of the 
     United States, chapter 81 of title 5, relating to 
     compensation for work-related injuries.
       ``(2) In all other cases, chapter 171 of title 28, relating 
     to tort claims.
       ``(i) Deductions From Wages.--
       ``(1) In general.--Subject to the other provisions of this 
     subsection, the Board of Directors may deduct and withhold 
     amounts from the wages paid to a Federal Prison Industries 
     inmate worker and disburse those amounts for the following:
       ``(A) Payment of fines, special assessments, restitution to 
     the victim, and any other restitution owed by the inmate 
     worker pursuant to court order.
       ``(B) Allocations for support of the inmate worker's family 
     under law, court order, or agreement by the inmate worker.
       ``(C) Reasonable charges for costs of incarceration, as 
     determined by the Board of Directors.
       ``(D) Contributions to any fund established by law to 
     compensate the victims of crime.
       ``(E) Amounts to be held on account and paid to the inmate 
     worker upon release from the custody of the Bureau of 
     Prisons.
       ``(2) Limitation.--The total of all amounts deducted and 
     withheld from the pay of an inmate worker for a pay period 
     may not exceed--
       ``(A) 80 percent of gross pay, in the case of an inmate 
     worker specified in section 4123(d)(2); or
       ``(B) 50 percent of gross pay, in the case of any other 
     inmate worker.
       ``(3) Exception.--The total specified in paragraph (2) may, 
     with the consent of an inmate worker, exceed the limitation 
     in paragraph (2)(A) or (2)(B), as applicable, if the amounts 
     in excess of such limitation are for the purposes described 
     in subparagraphs (B) or (E) of paragraph (1).
       ``(4) Agreement of inmate worker required.--Amounts may not 
     be deducted, withheld, or disbursed under this subsection 
     unless the inmate worker concerned has agreed in advance to 
     the deduction, withholding, or disbursement of those amounts.

     ``Sec. 4123. Federal Prison Industries: transactions 
       authorized

       ``(a) Sales to Agencies and Not-for-Profits.--Federal 
     Prison Industries may sell products and services to 
     government agencies and not-for-profit organizations.
       ``(b) Sales of Certain Commodities.--Federal Prison 
     Industries may carry out a program to manufacture commodities 
     specified in section 1761(b).
       ``(c) Participation in Foreign Labor Substitute Pilot 
     Projects.--Subject to the requirements in subsection (e), 
     Federal Prison Industries may make available inmate workers 
     for participation in a pilot project approved as a foreign 
     labor substitute by the Foreign Labor Substitute Panel, as 
     referred to in section 1761(e).
       ``(d) Participation in BJA Pilot Projects.--
       ``(1) In general.--Subject to the requirements in 
     subsection (e), Federal Prison Industries may make available 
     inmate workers for participation in a pilot project 
     designated by the Director of the Bureau of Justice 
     Assistance, as referred to in section 1761(c).
       ``(2) Wage rate.--Each inmate worker participating in a 
     pilot project specified in paragraph (1) shall be paid at a 
     wage rate that complies with section 1761(c).
       ``(e) Requirements for Contracts With Private Companies.--
     In making available inmate workers for participation in a 
     pilot project under subsection (c) or (d), Federal Prison 
     Industries shall comply with the following requirements:
       ``(1) The inmate workers shall be made available through a 
     contract between Federal Prison Industries and a private 
     United States company.
       ``(2) The contract shall--
       ``(A) require that the labor performed by the inmate 
     workers shall be carried out at a Federal Prison Industries 
     facility;
       ``(B) include a clause that prohibits the company from 
     displacing any of that company's existing domestic workers as 
     a direct result of the contract with Federal Prison 
     Industries; and
       ``(C) provide that any workforce reductions carried out by 
     the company affecting employees performing work comparable to 
     the work performed pursuant to the contract shall first apply 
     to inmate workers employed pursuant to the contract.
       ``(f) Goals for Certain Businesses.--Federal Prison 
     Industries shall, in consultation with the Small Business 
     Administration, establish and strive to meet or exceed 
     realistic goals for entering into contracts with one or more 
     of the following:
       ``(1) A business concern that meets the applicable size 
     standards prescribed pursuant to section 3(a) of the Small 
     Business Act (15 U.S.C. 632(a)).
       ``(2) A small business concern owned and controlled by 
     socially and economically disadvantaged individuals, as that 
     term is defined in section 8(d)(3)(C) of the Small Business 
     Act (15 U.S.C. 637(d)(3)(C)).
       ``(g) Job Opportunities for Blind and Severely Disabled 
     Individuals.--Federal Prison Industries shall establish 
     business partnerships with organizations representing 
     domestic workers who are blind or severely disabled, for the 
     purpose of entering into contracts with private United States 
     companies that would create job opportunities both for blind 
     and severely disabled individuals and for Federal inmates.
       ``(h) Donation of Products and Services.--The Board of 
     Directors may authorize--
       ``(1) the donation of a product or service of Federal 
     Prison Industries that is available for sale; or
       ``(2) the production of a new product, or the performance 
     of a new service, for donation.
       ``(i) Catalog.--Federal Prison Industries shall publish and 
     maintain a catalog of all products and services that it 
     offers for sale to government agencies and not-for-profit 
     organizations. The catalog shall be periodically revised as 
     products and services are added or deleted.''.
       (b) Conforming Amendment.--Section 1761(c)(1) of such title 
     is amended by striking ``non-Federal''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 307 of such title is amended by striking 
     the items relating to sections 4121, 4122, and 4123 and 
     inserting the following:

``4121. Federal Prison Industries: status, mission, and management.
``4122. Federal Prison Industries: operating objectives, standards, and 
              requirements.
``4123. Federal Prison Industries: transactions authorized.''.

     SEC. 4. ELIMINATION OF MANDATORY SOURCE PURCHASE REQUIREMENT.

       (a) In General.--Section 4124 of title 18, United States 
     Code, is amended--

[[Page 14247]]

       (1) in subsection (a), by adding at the end the following: 
     ``This subsection does not apply to services.'';
       (2) by amending subsection (c) to read as follows:
       ``(c) Each Federal department or agency shall report 
     purchases from Federal Prison Industries to the Federal 
     Procurement Data System (referred to in section 6(d)(4) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     405(d)(4))) in the same manner as it reports to such System 
     any acquisition in an amount in excess of the simplified 
     acquisition threshold (as defined in section 4(11) of that 
     Act (41 U.S.C. 403(11))).''; and
       (3) by amending subsection (d) to read as follows:
       ``(d)(1) The head of a Federal department or agency may 
     purchase directly from Federal Prison Industries any of the 
     following:
       ``(A) Any products with respect to which the requirement in 
     subsection (a) has, under any authority, been suspended, 
     waived, or not invoked.
       ``(B) Any services.
       ``(2) A purchase under this subsection may be made in any 
     quantity and by any method that is determined appropriate by 
     the head of the agency making the purchase without regard to 
     any provision of law or regulation.''.
       (b) Plan for Phased Elimination of Mandatory Source.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Board of Directors shall submit to Congress a plan 
     for the elimination of the requirement of section 4124(a) of 
     title 18, United States Code. The plan shall provide for the 
     following:
       (1) Annual reductions in the total sales that are made by 
     Federal Prison Industries under the requirement.
       (2) A prohibition on any interim significant expansion of 
     sales under the requirement above levels authorized by the 
     Board of Directors of Federal Prison Industries for such 
     sales before the date of the enactment of this Act.
       (3) A prohibition on sales under the requirement after the 
     date that is five years after the date on which the plan is 
     submitted to Congress under this section.
       (c) Public Availability of Plan.--Not later than 30 days 
     after the date on which the plan is submitted to Congress 
     under this section, Federal Prison Industries shall publish 
     the plan in a commercial business publication with a national 
     circulation. Federal Prison Industries shall make copies of 
     the plan available to the public upon request.
       (d) Repeal of Mandatory Source Requirement.--Effective on 
     the date that is 5 years after the date on which the plan is 
     submitted to Congress under this section, section 4124 of 
     title 18, United States Code, is amended--
       (1) by striking subsections (a) and (b); and
       (2) by amending subsection (d)(1)(A) to read as follows:
       ``(A) Any products.''.

     SEC. 5. PERIODIC EVALUATION AND REPORTS.

       (a) In General.--Section 4127 of title 18, United States 
     Code, is amended to read as follows:

     ``Sec. 4127. Periodic evaluation and reports

       ``(a) Evaluation by GAO.--
       ``(1) Matters evaluated.--The Comptroller General shall 
     provide for an independent evaluation of the operations of 
     Federal Prison Industries to be carried out each year. The 
     matters evaluated shall include the following:
       ``(A) The overall success of the operations.
       ``(B) The effects that any reduction in the purchases made 
     under section 4124(a) has on the viability of Federal Prison 
     Industries.
       ``(C) The extent to which Federal Prison Industries can 
     successfully contract with private companies without 
     adversely affecting domestic companies or workers.
       ``(2) Views included.--The Comptroller General shall ensure 
     that, in the development of appropriate methodologies for the 
     evaluation under paragraph (1), the views of the Foreign 
     Labor Substitute Panel, private industry, organized labor, 
     the Board of Directors of Federal Prison Industries, and the 
     public are solicited.
       ``(3) Report.--Not later than March 31 of each fiscal year, 
     the Comptroller General shall submit to Congress a report on 
     the evaluation of the operations of Federal Prison Industries 
     that was carried out under paragraph (1) for the preceding 
     fiscal year. The report for a fiscal year shall, at a 
     minimum, include the following:
       ``(A) The evaluation.
       ``(B) Any concerns raised about any adverse effects on 
     domestic companies or workers, together with any actions 
     taken in regard to the concerns.
       ``(C) The extent to which Federal Prison Industries 
     maintained at least a 25 percent employment rate for eligible 
     inmate workers.
       ``(D) The extent to which Federal Prison Industries 
     conducted its operations on a financially self-sustaining 
     basis.
       ``(E) Any recommended legislation to improve the 
     administration of this chapter or the effects of the 
     administration of this chapter, including any recommended 
     legislation necessary to authorize remedial actions 
     regarding--
       ``(i) any conduct of the operations of Federal Prison 
     Industries in a manner that adversely affects domestic 
     companies or workers (excluding the effects of normal 
     competitive business practices);
       ``(ii) any failure of Federal Prison Industries to maintain 
     at least a 25 percent employment rate for eligible inmate 
     workers; or
       ``(iii) any failure of Federal Prison Industries to conduct 
     its operations on a financially self-sustaining basis.
       ``(b) Annual Report by Board of Directors.--
       ``(1) In general.--The Board of Directors of Federal Prison 
     Industries shall, each year, report under section 9106 of 
     title 31 on the conduct of the business of Federal Prison 
     Industries and the condition of its funds during the 
     preceding fiscal year.
       ``(2) Matters included.--In addition to the matters 
     required by section 9106 of title 31, and such other matters 
     as the Board considers appropriate, each report for a fiscal 
     year under paragraph (1) shall include the following:
       ``(A) A statement of the amount of obligations issued under 
     section 4129(a)(1) of this title during that fiscal year.
       ``(B) An estimate of the amount of obligations that will be 
     issued under that section during the following fiscal year.
       ``(C) An analysis of--
       ``(i) the total sales by Federal Prison Industries for each 
     product and service sold to Federal agencies and to private 
     United States companies;
       ``(ii) the total purchases by each Federal agency of each 
     product and service; and
       ``(iii) The Federal Prison Industries share of the total 
     Federal Government purchases by product and service.
       ``(D) An analysis of the inmate workforce, including--
       ``(i) the number of inmates employed;
       ``(ii) the number of inmates used to produce products or 
     perform services sold to private United States companies;
       ``(iii) the number and percentage of employed inmates, 
     categorized by term of incarceration; and
       ``(iv) the various hourly wages paid to inmates engaged in 
     the production of the various products and the performance of 
     services authorized for production and sale to Federal 
     agencies and to private United States companies.
       ``(E) Information concerning any employment obtained by 
     former inmates upon release that is useful in determining 
     whether the employment provided by Federal Prison Industries 
     during incarceration provided those former inmates with 
     knowledge and skill in a trade or occupation that enabled 
     them to earn a livelihood upon release.
       ``(3) Availability to public.--The Board of Directors shall 
     make available to the public each report under this 
     subsection.''.
       (b) Clerical Amendment.--In the table of sections at the 
     beginning of chapter 307 of such title, the item relating to 
     section 4127 is amended to read as follows:

``4127. Periodic evaluation and reports.''.

     SEC. 6. RULES OF CONSTRUCTION AND DEFINITIONS.

       (a) In General.--Chapter 307 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 4130. Construction of provisions

       ``Nothing in this chapter shall be construed--
       ``(1) to establish an entitlement of any inmate to--
       ``(A) employment in a Federal Prison Industries facility; 
     or
       ``(B) any particular wage, compensation, or benefit on 
     demand;
       ``(2) to establish that inmates are employees for the 
     purposes of any law or program; or
       ``(3) to establish any cause of action by or on behalf of 
     any person against the United States or any officer, 
     employee, or contractor thereof.

     ``Sec. 4131. Definitions

       ``In this chapter:
       ``(1) The term `eligible inmate worker' means a person 
     who--
       ``(A) is committed to the custody of the Bureau of Prisons 
     pursuant to section 3621 of this title;
       ``(B) is designated to a low, medium, or high security 
     facility operated by the Bureau of Prisons; and
       ``(C) is physically and mentally able to work.
       ``(2) The term `private United States company' means a 
     corporation, partnership, joint venture, or sole 
     proprietorship with a principal place of business in the 
     United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 307 of such title is amended by adding 
     at the end the following new items:

``4130. Construction of provisions.
``4131. Definitions.''.

     SEC. 7. CONFORMING AMENDMENT.

       Section 436 of title 18, United States Code, is amended by 
     striking ``Whoever,'' and inserting ``Except as otherwise 
     provided in this title, whoever,''.
                                  ____


      Federal Inmate Work Act of 2001 Section-by-Section Analysis


                         section 1. short title

       This Act may be cited as the ``Federal Inmate Work Act of 
     2001.''

[[Page 14248]]



section. 2. authority to carry out pilot projects using federal inmate 
                     labor to replace foreign labor

     (a) Foreign Labor Substitute Pilot Projects
       This section authorizes Federal Prison Industries, FPI or 
     trade name UNICOR, to carry out pilot projects to produce 
     products for private companies that would otherwise be 
     produced by foreign labor. FPI currently has authority to 
     perform commercial market services, but not for products. The 
     interstate commerce restrictions contained in 18 U.S.C. 1761 
     concerning products are deemed not to apply to such projects 
     when the provisions below are met.
     (b) Foreign Labor Substitute Panel
       This section establishes a Foreign Labor Substitute Panel, 
     selected by the Attorney General. The Panel is to consist of 
     eight members. In order to ensure that there is 
     representation from those with expertise in the affected 
     areas, this section provides that the Panel must be comprised 
     of one representative from the Department of Commerce, the 
     Department of Labor, the International Trade Commission, and 
     the Small Business Administration; two representatives from 
     the business community; and two representatives from 
     organized labor. The Panel is not to receive pay, benefits, 
     or allowances for their services, but may receive travel 
     expenses. Any findings of the Panel must be made available to 
     the public.
       This section requires the Panel to review proposals for 
     pilot projects. The Panel is authorized to approve a pilot 
     project if, and only if, the Panel determines that: 1. the 
     pilot will be carried out by one or more United States 
     companies and 2. the goods, wares or merchandise proposed 
     under the pilot would otherwise be manufactured, produced or 
     mined by foreign labor.


  Section 3. Restatement and Improvement of Federal Prison Industries 
                                Program

     Sec. 4121. Federal Prison Industries: status, mission, and 
       management

     (a) Status
       This section states FPI's status as a government 
     corporation, whose headquarters is located in the District of 
     Columbia.
     (b) Mission
       This section states that FPI's mission is to carry out 
     industrial operations in accordance with the parameters of 
     this section.
     (c) Board of Directors
       FPI's current statute provides for six Presidentially 
     appointed Board of Directors who represent industry, labor, 
     agriculture, retailers and consumers, the Secretary of 
     Defense and the Attorney General. This section substitutes 
     the Attorney General for the President and expands FPI's 
     Board of Directors from the current six members to twelve 
     members to increase representation from business, organized 
     labor, victims of crime, and the inmate rehabilitation 
     community. Four members would be required to be selected from 
     the recommendations of the House and Senate majority and 
     minority leadership. The Board also must include two 
     representatives from the business community, two from 
     organized labor, one member representing victims of crime, 
     one representing prisoner rehabilitation community, and two 
     additional members whose background and expertise the 
     Attorney General deems appropriate.
       This section continues the current provision that the Board 
     of Directors serve without pay, allowances, or benefits. The 
     members of the Board shall serve for a four year term or 
     until the remainder of a four year term if a member is 
     replaced. Seven board members constitute a quorum. The term 
     limits for the first appointments are varied in order to 
     provide for term limits that are staggered. The Chairman of 
     the Board is to be elected by members of the Board.

     Sec. 4122. Federal Prison Industries: operating objectives, 
       standards, and requirements

     (a) Operating Objectives
       This section requires that FPI's operations be conducted so 
     as to: 1. increase public safety and reduce recidivism by 
     providing meaningful employment and vocational skills, 2. 
     minimize adverse effects on domestic companies or workers, 3. 
     provide meaningful employment and vocational training for not 
     less than 25 percent of eligible inmate workers, 4. provide 
     income so as to help inmates pay their financial obligations, 
     5. generate sufficient revenue to fund the corporation, and 
     6. provide market quality and competitively priced products 
     and services.
     (b) Performance Standards
       This section requires FPI to comply with standards, as 
     applicable to correctional industry programs, including: 
     United Nations standards, and International Labor 
     Organization Conventions to which the United States is a 
     signatory party, Federal standards, and American Correctional 
     Association Standards.
     (c) Voluntariness
       This section requires that inmates participate in FPI 
     operations voluntarily. This is currently FPI's practice.
     (d) Wage Rates
       This section requires that inmate workers be paid the wage 
     rates prescribed by the Board of Directors, unless otherwise 
     provided by law.
     (e) Protection of Certain Information
       This section prohibits inmates from having access to 
     personal or national security information, that is otherwise 
     not publicly available.
     (f) Vocational Training
       While FPI is authorized to fund vocational training 
     programs, this section specifies that where financially 
     feasible, FPI contribute at least twenty percent of its net 
     profits each year for this purpose.
     (g) Exemption from Public Contracting and Procurement Laws
       In order to be as competitive as possible in commercial 
     market ventures, this section exempts FPI from federal 
     procurement and public contracting requirements. This 
     provision is consistent with exemptions granted to other 
     federal agencies with commercial-like missions, such as the 
     U.S. Postal Service and the U.S. Mint.
     (h) Liability
       This section provides that personal injuries arising out of 
     FPI work shall be compensated pursuant to the Federal 
     Employees' Compensation Act, for Federal Employees, or the 
     Federal Tort Claims Act, for all other persons. This is 
     consistent with current law.
     (i) Deductions from Wages
       This section permits the Board of Directors to make 
     deductions from the amounts paid to FPI inmate workers to pay 
     court ordered fines, restitution, child support, to 
     compensate for reasonable charges for costs of incarceration, 
     to compensate crime victims, and for amounts to be held on 
     account and paid to the inmate upon release from the custody 
     of the BOP. With certain exceptions, the deductions may not 
     exceed 80 percent for FPI inmate workers being paid higher 
     wage rates that comply with 18 U.S.C. 1761(c), for Prison 
     Industry Enhancement pilot projects, or 50 percent for FPI 
     inmate workers being paid prison industry wage rates. Current 
     BOP policy permits these deductions to a maximum of 50 
     percent. This section requires that inmates agree in advance 
     to any deductions, withholdings, or disbursement of those 
     amounts.

     Sec. 4123. Federal Prison Industries: transactions authorized

     (a) Sales to Agencies and Not-For-Profits
       This section permits FPI to sell its products, as well as 
     services (which are already authorized in the commercial 
     market), to government agencies and not for profit 
     organizations. Currently, FPI may only sell its products to 
     the federal government.
     (b) Sales of Certain Commodities
       This section also permits FPI to carry out programs to 
     manufacture commodities specified in 18 U.S.C. 1761(b) 
     (agricultural commodity sales, as well as commodities sold to 
     federal, D.C. or state entities).
     (c) Participation in Foreign Labor Substitute Pilot Projects
       This section authorizes FPI to participate in pilot 
     projects as approved by the Foreign Labor Substitute Panel.
     (d) Participation in BJA Pilot Projects
       This section authorizes FPI to make its products (in 
     addition to services which are currently authorized) for 
     private companies if inmates are paid a wage rate that 
     complies with 18 U.S.C. 1761(c). This is similar to the 
     authority that state prisons currently have to sell products 
     to the commercial market, provided the inmates are paid 
     comparable locality wages pursuant to the Prison Industry 
     Enhancement, P.I.E., Program.
     (e) Requirements for Contracts with Private Companies
       In FPI contracts with companies pursuant to a pilot 
     program, the contracts must require the inmate work to be 
     carried out in a FPI facility. The contract must prohibit the 
     private company from displacing any of its existing domestic 
     workers as a direct result of the contract with FPI. Any 
     workforce reductions carried out by the company performing 
     comparable work must apply first to the inmate workers 
     performing work under the contract.
     (f) Goals for Certain Businesses
       This section requires FPI, in consultation with the Small 
     Business Administration, to establish and strive to meet or 
     exceed realistic goals for entering into contracts with small 
     business concerns and with small business concerns owned and 
     controlled by socially and economically disadvantaged 
     individuals.
     (g) Job Opportunities for Blind and Severely Disabled 
         Individuals
       This section requires FPI to establish business 
     partnerships with organizations representing domestic workers 
     who are blind and severely disabled to create job 
     opportunities in furtherance of its efforts to contract with 
     private companies.
     (h) Donation of Products and Services
       FPI would be authorized to donate products or services in 
     the Board's discretion, which it currently cannot do.
     (i) Catalog
       This section requires FPI to continue to maintain a catalog 
     of its products and services and keep it updated.

[[Page 14249]]




    SECTION 4. ELIMINATION OF MANDATORY SOURCE PURCHASE REQUIREMENT

       This section requires FPI to phase out its use of the 
     mandatory source preference.
     (a) In General
       This section clarifies that the mandatory source preference 
     in section 4124 applies to products only. Neither this 
     section nor section 4124 require any Federal Government 
     agency or department to purchase services from FPI. As is 
     currently required by law, this section requires each Federal 
     department or agency to report purchases from FPI to the 
     Federal Procurement Data System. See 41 U.S.C. 405(d)(4). 
     This section further clarifies that federal entities may 
     continue to buy FPI products or services voluntarily and 
     directly from FPI, even without the mandatory source 
     requirement.
     (b) Plan for Phased Elimination of Mandatory Source
       This section requires that the Board of Directors develop 
     and submit a plan to Congress within 180 days after the 
     enactment of this Act, that would phase out mandatory source 
     over a five year period.
     (c) Public Availability of Plan
       This section requires that FPI publish the plan in a 
     commercial business publication with national circulation, 
     and make it available to the public.
     (d) Repeal of Mandatory Source Requirement
       Effective five years after the date the plan is submitted, 
     this section repeals the mandatory source requirement.


               SECTION 5. PERIODIC EVALUATION AND REPORTS

     Sec. 4127. Periodic evaluation and reports

     (a) Evaluation by GAO
       This section requires the GAO to provide for annual 
     evaluations to assess the continued viability of FPI and its 
     ability to contract with private companies without adversely 
     affecting domestic companies or workers. The GAO is to ensure 
     that the views of the Foreign Labor Substitute Panel, private 
     industry, organized labor, FPI's Board of Directors and the 
     public are sought in the development of appropriate 
     evaluation methodologies by which to assess the program's 
     overall success.
       This Section also requires the GAO to report annually to 
     Congress its evaluation FPI's operations, to include any 
     concerns raised about any adverse impact on domestic 
     companies or workers; the extent to which FPI was able to 
     maintain at least a 25 percent employment rate for work 
     eligible inmates; the extent to which FPI was able to conduct 
     its operations in a financially self-sustaining manner; and 
     any recommended legislation, if any, for statutory changes to 
     improve the administration or effects of the program, 
     including recommended remedial actions.
     (b) Annual Report by Board of Directors
       This section requires FPI to report annually to Congress on 
     its operations and financial condition. Although the current 
     statute requires these annual reports, this section expands 
     the specific information to be included in such reports, such 
     as the total sales of FPI products and services to Federal 
     agencies and to private companies, the total purchase by 
     Federal agency of each product and service, and the FPI share 
     of the total Federal Government purchases. An analysis shall 
     also determine the number of inmates employed, and the number 
     and percentage of employed inmates in the production of 
     products and the performance of services authorized for 
     production and sale to agencies and private companies. The 
     report must also include information concerning any 
     employment obtained by former inmates upon release that is 
     useful in determining whether the employment provided by FPI 
     during incarceration provided those inmates with knowledge 
     and skill in a trade or occupation that enabled those inmates 
     to earn a livelihood upon release.

     Sec. 4130. Construction of Provisions

       This section is intended to preclude Federal inmates from 
     asserting an employee-employer relationship or other 
     entitlements out of their work with FPI.


            SECTION 6. RULES OF CONSTRUCTION AND DEFINITIONS

     Sec. 4131. Definitions

       This section defines the terms used in this Act.


                    SECTION 7. CONFORMING AMENDMENT.

       This section makes a conforming amendment.
                                 ______
                                 
      By Mr. WELLSTONE (for himself and Ms. Stabenow):
  S. 1229. A bill to amend the Federal Food Drug, and Cosmetic Act to 
permit individuals to import prescription drugs in limited 
circumstances; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. WELLSTONE. Mr. President, I rise to introduce legislation that 
helps to correct the injustice that finds American consumers the least 
likely of any in the industrialized world to be able to afford drugs 
manufactured by the American pharmaceutical industry. The reason is the 
unconscionable prices the industry charges only here in the United 
States.
  I am under no illusion that this legislation provides comprehensive 
or ultimate relief to Americans who are struggling to afford the 
prescription drugs they need. However, this bill does expose and 
highlight the problem American consumers face and it provides a certain 
measure of immediate relief for individuals struggling with the high 
cost of prescription drugs.
  When I return to Minnesota which I do frequently, I meet with many 
constituents, but none with more compelling stories than senior 
citizens struggling to make ends meet because of the high cost of 
prescription drugs, life-saving drugs that are not covered under the 
Medicare program. Ten or twenty years ago these same senior citizens 
were going to work everyday--in the stores, and factories, and mines in 
Minnesota, earning an honest paycheck, and paying their taxes without 
protest. Now they wonder, how can this government, their government, 
stand by, when the medicines they need are out of reach.
  It is not just that Medicare does not cover these drugs. The 
unfairness which Minnesotans feel is exacerbated of course by the high 
cost of prescription drugs here in the United States, the same drugs 
that can be purchased for frequently half the price in Canada or 
Europe. These are the exact same drugs, manufactured in the exact same 
facilities with the exact same safety precautions. A year ago, most 
Americans did not know that the exact same drugs are for sale at half 
the price in Canada. Today, you can bet the pharmaceutical industry 
wishes no one knew it. But the cat is out of the bag, and it is time 
for Congress to begin to address these inequities.
  Legislators, especially from Northern States but also from all around 
the country, have heard first-hand stories from constituents who are 
justifiably frustrated and discouraged when they can't afford to buy 
prescription drugs that are made in the United States, unless they go 
across the border to Canada where those same drugs, manufactured in the 
same facilities are available for about half the price. It is time to 
codify the right of Americans to go to Canada and certain other 
countries to buy the prescription drugs they need at a price they can 
afford. And it is time to allow Americans to obtain those necessary 
medications through the mail as well.
  Driving to Canada every few months to buy prescription drugs at 
affordable prices isn't the solution; it is a symptom of how broken 
parts of our health care system are. Americans regardless of party have 
a fundamental belief in fairness, and know a rip-off when they see one. 
It is time to allow Americans to end-run that rip-off.
  While we can be proud of both American scientific research that 
produces new miracle cures and the high standards of safety and 
efficacy that we expect to be followed at the FDA, it is shameful that 
America's most vulnerable citizens, the chronically ill and the 
elderly, are being asked to pay the highest prices in the world here in 
the U.S. for the exact same medications manufactured here but sold more 
cheaply overseas.
  That is why today I am introducing with Senator Stabenow the Personal 
Prescription Drug Import Fairness Act, a bill which will amend the 
Food, Drug, and Cosmetic Act to allow Americans to legally import 
prescription drugs into the United States for their personal use as 
long as the drugs meet FDA's strict safety standards. With this 
legislation, Americans will be able to legally purchase these FDA-
approved drugs in person or by mail at huge savings.
  What this bill does is to address the absurd situation by which 
American consumers are paying substantially higher prices for their 
prescription drugs than are the citizens of Canada, and the rest of the 
industrialized world. This bill does not create any new Federal 
programs. Instead it uses principles frequently cited in both houses of 
the Congress, principles of open trade and competition, on a personal 
level, to help make it possible for American consumers to purchase the 
prescription drugs they need.

[[Page 14250]]

  The need is clear. A recent informal survey by the Minnesota Senior 
Federation on the price of six commonly used prescription medications 
showed that Minnesota consumers pay, on average, nearly double, 196 
percent, that paid by their Canadian counterparts. These excessive 
prices apply to drugs manufactured by U.S. pharmaceutical firms, the 
same drugs that are sold for just a fraction of the U.S. price in 
Canada and Europe.
  Now, however, Federal law allows only the manufacturer of a drug to 
import it into the U.S. It is time to stop protecting the 
pharmaceutical industry's outrageous profits, and they are outrageous, 
and give all Americans the legal right to purchase their prescription 
drugs directly from a pharmacy in a limited number of countries with 
regulatory systems the FDA has found meet certain minimal standards.



  Last year, the editors of Fortune Magazine, writing about 1999 
pharmaceutical industry profits, noted that ``Whether you gauge 
profitability by median return on revenues, assets, or equity, 
pharmaceuticals had a Viagra kind of year.'' In 2000, drug company 
profits were just as excessive.
  Let's take a look at the numbers, so there can be no mistake:
  Where the average Fortune 500 industry in the United States returned 
4.5 percent profits as a percentage of revenue, the pharmaceutical 
industry returned 18.6 percent.
  Where the average Fortune 500 industry returned 3.3 percent profits 
as a percentage of their assets, the pharmaceutical industry returned 
17 percent.
  Where the average Fortune 500 industry returned 14.6 percent profits 
as a percentage of shareholders equity, the pharmaceutical industry 
returned 29.4 percent.
  Those record profits are no surprise to America's senior citizens 
because they know where those profits come from, they come from their 
own pocketbooks. It is time to end the price gouging.
  We need every piece of legislation we can get to help assure our 
Senior Citizens and all Americans that safe and affordable prescription 
medications can be legally obtained from countries with a track records 
of prescription drug safety. The Personal Prescription Drug Import 
Fairness Act is one such step.
  We all know that the giant step this Congress should be taking is the 
enactment of a comprehensive Medicare prescription drug benefit. Such a 
benefit should address two issues. First, Medicare beneficiaries are 
entitled to a drug benefit as good as Congress provides for itself. 
That means a low deductible, 20 percent copay, a cap on out-of-pocket 
expenses of about $2,000, and affordable premiums. Second, we need 
seriously to address the outrageously high prices that Americans are 
forced to pay for prescription drugs. If we address those high prices, 
we can provide a comprehensive benefit at a price that is affordable to 
Medicare beneficiaries and to the Federal Government. I have already 
introduced a bill, S. 925, the Medicare Extension of Drugs to Seniors 
Act of 2001, that provides affordable comprehensive benefits and makes 
it possible to enact them by reigning in the ever increasing cost of 
pharmaceuticals using three complimentary approaches.
  But, while we wait for the Finance Committee and this Congress to act 
on a Medicare drug benefit, we should not lose the opportunity to 
provide some needed relief. That is why I am introducing the Personal 
Prescription Drug Import Fairness Act today.
  This bill includes specific protections, which were not included in a 
recent House-passed amendment to the Agriculture Appropriations bill. 
These protections include: 1. importation for personal use only of no 
more than a 3 month supply at any one time; 2. limitation on country of 
origin; 3. no importation of controlled substances or biologics; 4. 
requirement that imported drug be accompanied by a form prescribed by 
the Secretary of HHS in consultation with the Secretary of the Treasury 
that makes clear what overseas pharmacy is dispensing the drug, who 
will be receiving it, and who will be responsible for the recipients 
medical care with the drug in the United States.
  The only things that are not protected in this bill are the excessive 
profits of the pharmaceutical industry. My job as a United States 
Senator is not to protect those profits but to protect the people. 
Colleagues, please join in and support this thoughtful and necessary 
bill that will help make prescription drugs more affordable to the 
American people.
                                 ______
                                 
      By Mr. FRIST (for himself and Mrs. Clinton):
  S. 1230. A bill to amend the Public Health Service Act to focus 
American efforts on HIV/AIDS, tuberculosis, and malaria in developing 
countries; to the Committee on Foreign Relations.
  Mr. FRIST. Mr. President, I rise to discuss critically important 
legislation that I am introducing today along with Senator Clinton to 
address the international crises of HIV/AIDS, tuberculosis, and 
malaria. The threats of HIV/AIDS, tuberculosis, and malaria are not 
strictly American problems, they ignore national borders, threatening 
the entire world. Together, these three diseases cause over 300 million 
illnesses and five million deaths each year.
  We are all aware of the chilling global impact of HIV/AIDS, 22 
million have already died worldwide and more than three million in the 
last year alone. Sixty million are currently infected with HIV, a 
number that increases by 15,000 each day. In 2000, 2.4 million 
individuals died in Africa alone.
  Tuberculosis and malaria are also ravaging the developing world. 
Eight million people are infected with tuberculosis each year; over two 
million of whom die. There are over 400 million clinical cases of 
malaria diagnosed each year, resulting in over one million deaths. Over 
700,000 of those who die each year are children. Malaria is endemic to 
101 countries and territories.
  Not only do these three diseases produce over 50 percent of the 
deaths due to infectious diseases each year, but they also have complex 
disease patterns that result in them facilitating each other's spread. 
By weakening the immune system, infection with HIV increases 
susceptibility to both tuberculosis and malaria. Furthermore, the 
increasing number of multi-resistant tuberculosis cases is largely 
attributed to resistance developed in HIV-infected patients. Finally, 
in treating severe anemia that commonly accompanies illness due to 
malaria, untested blood transfusions create a method of HIV/AIDs 
spread.
  Historically, the United States has played a critical role in 
addressing international crises. There is perhaps no greater crisis 
that we face worldwide than the spread of deadly infectious disease. 
Therefore, we must provide the leadership to confront the global HIV/
AIDS, malaria, and tuberculosis epidemics. History will record how we 
respond to the call.
  We know what is needed to reverse the epidemic. Work by community-
based organizations, both religious and secular, has been the linchpin 
of grassroots success. As a surgeon, I have traveled to numerous areas 
of Africa, Sudan, Kenya, the Congo, and Uganda. I have performed 
operations in converted school houses and ill-equipped hospitals where 
I seen first-hand the great need, and the important role, that American 
involvement can play in providing hope through health education and 
treatment.
  We fight this battle in two ways--by improving primary prevention and 
expanding access to treatment. Actions to provide drugs to developing 
countries at dramatically reduced costs represent a promise to those 
currently suffering from AIDS. However, access to those treatments 
without appropriate health care infrastructure is a moot point. We must 
support the development of effective health care delivery systems, 
personnel training and infrastructure. We must also support programs 
targeting affected by AIDS, such as the millions of orphans.
  I have already introduced legislation with Senator Kerry, the 
International Infectious Diseases Control Act of 2001. This Act would 
direct the President to work with foreign governments, the United 
Nations, UN, the World bank,

[[Page 14251]]

and the private sector to establish the Global AIDS and Health Fund to 
fight HIV/AIDS, malaria, and tuberculosis. This fund would provide 
grants to governments and non-governmental organizations for 
implementation of effective and affordable HIV/AIDS, malaria, and 
tuberculosis programs, with initial priority to programs to combat HIV/
AIDS.
  It is important to contribute to these international efforts not only 
by providing monetary support but also our time, our energy, and our 
expertise. Therefore, today Senator Clinton and I are introducing 
legislation to help mobilize our Nation's public health infrastructure 
in the fight against international HIV/AIDS, tuberculosis, and malaria. 
The Global Leadership in Developing an Expanded Response, GLIDER, 
initiative will place American health care providers in nations 
confronting the epidemics of HIV/AIDS, tuberculosis, and malaria and 
provide them with the tools to carry out prevention programs, care, 
treatment, and infrastructure development. In addition, it will 
evaluate current methods of treatment and levels of access to treatment 
and enhance disease surveillance. Finally, it will increase funding for 
research into treatment and vaccine development.
  The GLIDER initiative expands programs administered by the 
Departments of State, Health and Human Services, Defense, and Labor to 
ensure that U.S. government agencies are contributing their scientific 
and diplomatic expertise to the problems associated with the spread of 
HIV/AIDS, malaria, and tuberculosis throughout the world.
  This initiative, coordinated through the offices of the Secretary of 
State and Secretary of Health and Human Services, in collaboration with 
the Secretaries of Defense and Labor, targets four objectives: to 
promote and expand our primary prevention efforts, improve clinic-, 
community- and home-based care and treatment, provide assistance to 
those individuals who are affected by such diseases such as AIDS 
orphans and families, and assist with capacity and infrastructure 
development.
  The close partnership between the Departments of State and Health and 
Human Services will be crucial in ensuring that this program is run in 
complete coordination with national, regional and local initiatives, 
medial and scientific experts, non-governmental organizations, and 
diplomatic missions. I would like to take a moment to thank Secretary 
Thompson and Secretary Powell for their personal commitment to this 
issue. I know that they are working together to bring the full force of 
the Administration behind the efforts to combat HIV/AIDS, tuberculosis, 
and malaria. Their support and input has been invaluable in helping us 
to draft legislation that builds upon and enhances our efforts to 
combat infectious diseases worldwide.
  Another essential component to broadening the U.S. mandate for 
involvement in international health initiatives is the creation of the 
Paul Coverdell Health Care Corps, a Corps based on the Peace Corps and 
run through the Department of Health and Human Services. This Corps 
would provide assistance for the placement of health care professionals 
who wish to provide their services in developing countries dealing with 
the crises of HIV/AIDS, tuberculosis, and malaria. This legislation 
provides flexibility in the design of the program but ensures a wide 
variety of volunteer opportunities--both short-term and long-term 
projects, administered by the Ministries of Health, local communities, 
non-governmental organizations, both faith-based and secular, or the 
United States government.
  Where do we go from here?
  First, public-private partnerships are extremely important and should 
be encouraged to attack the pressing problems. This can take place 
through widespread support for the Global AIDS and Health Fund and by 
hastily enacting a vaccine development tax credit.
  Furthermore, we should promote access to high-quality health care by 
engaging the American public health infrastructure in a collaborative 
effort to address an epidemic that has no regard for international 
boundaries.
  We must enlist each stakeholder in the fight against HIV/AIDS. 
Political, ethnic, and religious leaders can coalesce support for 
prevention, care, and treatment programs as well as reduce stigmas 
attached to the disease--a crucial element to any prevention program.
  Finally, we must not lose sight of the importance of prevention when 
attempting to provide treatment. Likewise, we must not let the 
importance of treatment for those presently be forgotten in the rush to 
enhance awareness and prevention efforts.
  As Americans, our challenge has always been to work with other 
nations to create a better, safer world through courage, persistence, 
and patience.
  That is still our challenge today. And I have no doubt that, as a 
nation, and as a people, we will rise to it.
  The bipartisan legislation we are introducing today is an important 
step toward achieving these goals. I thank my cosponsors for their 
support. And, I look forward to working with all my colleagues to 
improve our international efforts to fight deadly infectious diseases 
by passing the GLIDER Act.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Burns):
  S. 1231. A bill to amend the Federal Power Act to establish a system 
for market participants, regulators, and the public to have access to 
certain information about the operation of electricity power markets 
and transmission systems; to the Committee on Energy and Natural 
Resources.
  Mr. WYDEN. Mr. President, it is time to lift the veil of secrecy 
around energy markets in this country.
  Now that electric power is being traded as a commodity, with 
electricity bought and sold in markets all across the country, basic 
information about things like transmission capability and outages must 
be made available to the public. This information is crucial both for 
the markets to function efficiently and for the public to have 
confidence in these markets. But, unlike other commodities, it is often 
difficult to get basic information about how electric power systems and 
markets work. Information about the supply, demand and transmission of 
electricity around the country is simply unavailable in many areas of 
the country to State regulators and the general public.
  The electric power industry has not made this information available, 
and without Congressional action, Americans will continue to be kept in 
the dark about information they need to make informed choices and which 
will enable energy markets to work in a fair way.
  Today, along with Senator Burns, I am introducing the Electricity 
Information, Disclosure, Efficiency, and Accountability Act to open up 
access to operating information so that the markets can operate more 
efficiently, which can ultimately provide lower prices for consumers.
  Our legislation will create a standard system to provide market 
participants, regulators and the public with access to key operational 
information about wholesale electric transmission systems and power 
markets. The bill requires operators of wholesale electric transmission 
and other bulk power systems to provide all system users with basic 
operating information, including all transmission line and generation 
facility data used to determine capacity or restraints on a 
transmission line and the supply and demand for electricity. Power 
system operators already have access to this information as part of 
their routine operation of bulk power systems. So there should be no 
additional burden on power generators to disclose information beyond 
what they are already providing to their system operators.
  In general, the bill would require operating information to be 
released on a real-time basis, updated hourly. This would ensure that 
market participants can keep current with changing conditions 
throughout the day that impact market decisions. This release of real-
time data will also ensure there is a level playing field for all users 
of the

[[Page 14252]]

transmission grid and prevent some users from gaining a competitive 
advantage by access to non-public information.
  At the same time, the bill also creates a mechanism for keeping 
commercially sensitive information confidential or delaying disclosure 
of information that could be used to manipulate markets. Our 
legislation gives the Federal Energy Regulatory Commission authority to 
decide what data is considered commercially sensitive and either should 
not be publicly disclosed or should only be disclosed when the data is 
no longer commercially sensitive.
  In developing this legislation, we have worked with a broad range of 
stakeholders including market participants, regulators and consumer 
groups. The supporters include Enron, the largest electric power 
marketer in the U.S. today, the National Association of Regulatory 
Utility Commissioners, NARUC, and the Consumer Federation of America.
  The bill we are introducing today will lift the veil of secrecy now 
shrouding the operations of electric power systems around the country. 
It will improve access to critical information about how electric power 
systems and markets work while fully protecting commercially sensitive 
data. By improving access to information, market participants will be 
better informed when they make the thousands of decisions that must be 
made every day about how electricity is generated to customers across 
the country. Better access to information will enable regulators to 
take appropriate steps to ensure our electric power systems are 
reliable and that markets are functioning properly. Ultimately, by 
creating more efficient systems and markets, electricity customers 
throughout the country will be better served.
  I urge my colleagues to support the Electricity Information, 
Disclosure, Efficiency, and Accountability Act.
  I ask unanimous consent that letters of support written by NARUC and 
the Consumer Federation of America be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
         National Association of Regulatory Utility Commissioners,
                                    Washington, DC, July 24, 2001.
     Senator Ron Wyden,
     U.S. Senate,
     Washington, DC.
       Dear Senator Wyden: Thank you for leadership in sponsoring 
     legislation to address the data access difficulties 
     confronting State Public Utility Commissions. Additionally, 
     the National Association of Regulatory Utility Commissioners 
     (NARUC) would like to thank you for working with NARUC 
     members and staff to include in your draft legislation our 
     recommendations on the types of information necessary to 
     adequately monitor wholesale electricity markets and to 
     assure proper access to such information. NARUC supports the 
     draft legislation you are sponsoring regarding electricity 
     information disclosure.
       Many regional electric markets throughout the country have 
     experienced price spikes of unusual and unexpected 
     proportions. These price spikes have led to curtailment or 
     shutdown of operations of some large industrial customers and 
     to increased prices for smaller commercial and residential 
     customers.
       The high market price volatility has raised concerns about 
     the integrity of the markets, leading to calls from numerous 
     participants, consumers and policy makers for heightened 
     monitoring of these markets by regulatory bodies. In order to 
     identify corrective policy options to assure the public of 
     the competitiveness and efficiency of the developing 
     wholesale electricity market and its prices, regulatory 
     bodies need access to data such as production for generating 
     plants, transmission path schedules and actual flows.
       The electric industry restructuring efforts of the federal 
     government and the various states are based upon an 
     assumption that wholesale markets are workably competitive. 
     To that end, policy makers must have the ability to provide 
     confidence to an already skeptical and uneasy public that the 
     market is not being ``gamed.'' This confidence can only be 
     provided if regulators are able to access the data necessary 
     to ensure that the market is functioning in a truly 
     competitive fashion. To the extent data is currently shared 
     among market participants for purposes of reliability, it 
     should also be available to regulators and the public.
       In conclusion, I would like to thank you again for 
     considering NARUC's concerns and recommendations while you 
     drafted the ``Electricity Information, Disclosure, 
     Efficiency, and Accountability Act.'' NARUC would be pleased 
     to provide any additional assistance necessary to move this 
     legislation forward.
           Sincerely,
                                                  Charles D. Gray,
     Executive Director.
                                  ____



                               Consumer Federation of America,

                                    Washington, DC, July 24, 2001.

     Re Support for Wyden/Burns Electricity Information, 
         Disclosure, Efficiency and Accountability Act.

     Hon. Ron Wyden,
     U.S. Senate, Washington, DC.
     Hon. Conrad Burns,
     U.S. Senate, Washington, DC.
       Dear Senators Wyden and Burns: The Consumer Federation of 
     America supports this legislation, which would require that 
     essential information about the functioning and reliability 
     of electricity markets be provided to the public, regulators 
     and market participants on a real-time basis. This would 
     include operating data used by wholesale system operators to 
     determine available electric capacity and bottlenecks and to 
     maintain reliability. Bid data would also have to be made 
     available, such as the price, amount and delivery location of 
     electricity that is purchased.
       In a series of studies over the last three years, the 
     Consumer Federation of America has documented in detail how 
     the flawed deregulation of electricity in a number of states 
     has led to extensive price spikes and brown outs for 
     consumers and huge windfalls for many energy producers. Among 
     the many steps that should be taken to fix this highly 
     dysfunctional market is the creation of functioning market 
     institutions and greater transparency. Market institutions 
     should be developed before, not after, the trading of 
     electricity begins so that trading is transparent and 
     disciplined by market forces. Undeveloped information and 
     trading mechanisms are prone to manipulation. As we've seen 
     in California over the last year, when abuse occurs under 
     such circumstances, consumers are vulnerable to price gouging 
     and the provision of unreliable electricity.
       Electricity markets have a multitude of complex 
     transactions. Unfortunately, good information about these 
     transactions is not generally available at crucial times, 
     such as periods of scarcity when wholesale electric prices 
     are being driven up very quickly. There is simply no 
     centralized, reliable source of information, particularly for 
     electric system operators. Moreover, the brokers who are the 
     sources of information--on bid prices, for instance--may well 
     have an interest in skewing it. Overall, a number of 
     information and management weaknesses exist, including 
     inadequate market forecasting tools, a lack of monitoring 
     instruments and little real-time information to respond to 
     market problems.
       This legislation addresses the lack of timely information 
     that exists about the rates, terms and conditions under which 
     wholesale electricity is being offered. It is an essential 
     step in making this nation's defective electricity markets 
     more competitive and more pro-consumer.
           Sincerely,
                                               Travis B. Plunkett,
                                             Legislative Director.

  Mr. BURNS. Mr. President, I am pleased to join Senator Wyden today 
with the introduction of the Electricity Information, Disclosure, 
Efficiency, and Accountability Act.
  Legislation dealing with market data for the wholesale electric power 
market is long overdue. The evolving wholesale electric power market is 
being hindered by the lack of data that power suppliers need in order 
to provide services to the market. Access to real time operational 
information leads to improved efficiencies of systems dispatch in the 
short term, which leads to lower prices for consumers. The absence of 
reliable, real time, market data hinders the ability of energy 
suppliers to manage price and volume risk and also prevents efficient 
utilization of transmission and generation capacity. Consequently, the 
increased costs associated with risks inherent in operating without 
reliable data are ultimately borne by consumers.
  As our Nation moves towards consumer choice it is important that this 
Congress takes action to direct the Federal Energy Regulatory 
Commission (FERC) to craft rules designed to promote transparency in 
energy markets. This bill that Senator Wyden and I have introduced will 
do just that.
  By incorporating a standard system that would provide market 
participants, regulators and the public access to certain operational 
information concerning power markets and the transmission systems that 
support them, this plan would keep participants abreast of the changing 
power operating conditions throughout the day that impact market 
decisions required to manage risk. The recent fluctuations in the 
Western energy markets

[[Page 14253]]

have shown Montana and every State in the West that we cannot shelter 
ourselves from the power operating conditions in other States. With 
more access to that information, our local and State suppliers can have 
the information to better protect their consumers.
  This bill is backed by consumer groups, power marketers, and the 
national utility commissioners. It puts forward a framework that many 
of our colleagues can support. As the Senate continues to move closer 
to having movements on energy legislation, I would urge my colleagues 
to also support the Electricity Information, Disclosure, Efficiency, 
and Accountability Act.
                                 ______
                                 
      By Mr. McCONNELL:
  S. 1232. A bill to provide for the effective punishment of online 
child molesters, and for other purposes; to the Committee on the 
Judiciary.
  Mr. McCONNELL. 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. 1232

       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 ``Cybermolesters Enforcement 
     Act of 2001''.

     SEC. 2. MANDATORY MINIMUM SENTENCES.

       Section 2423 of title 18, United States Code, is amended--
       (1) in subsection (b), by inserting ``not less than 5 and'' 
     before ``not more than 15''; and
       (2) in subsection (c), by inserting ``not less than 5 and'' 
     before ``not more than 15''.

     SEC. 3. AUTHORIZATION OF INTERCEPTION OF COMMUNICATIONS IN 
                   THE INVESTIGATION OF SEXUAL CRIMES AGAINST 
                   CHILDREN.

       (a) Child Pornography.--Section 2516(1)(c) of title 18, 
     United States Code, is amended by inserting ``section 2252A 
     (relating to material constituting or containing child 
     pornography),'' after ``2252 (sexual exploitation of 
     children),''.
       (b) Transportation for Illegal Sexual Activity.--Section 
     2516(1) of title 18, United States Code, as amended by 
     section 3 of this Act, is amended--
       (1) by striking ``or'' at the end of paragraph (o);
       (2) by inserting after paragraph (o) the following:
       ``(p) a violation of section 2422 (relating to coercion and 
     enticement) or section 2423 (relating to transportation of 
     minors) of this title, if, in connection with that violation, 
     the sexual activity for which a person may be charged with a 
     criminal offense would constitute a felony offense under 
     chapter 109A or 110, if that activity took place within the 
     special maritime and territorial jurisdiction of the United 
     States; or''; and
       (3) by redesignating paragraph (p) as paragraph (q).
       (c) Technical Amendment Eliminating Duplicative 
     Provision.--Section 2516(1) of title 18, United States Code, 
     is amended--
       (1) by striking the first paragraph (p); and
       (2) by inserting ``or'' at the end of paragraph (o).

     SEC. 4. CHILD PORNOGRAPHY AS CONTRABAND.

       Section 80302(a) of title 49, United States Code, is 
     amended--
       (1) in paragraph (5), by striking ``or'' after the 
     semicolon;
       (2) in paragraph (6)(D), by striking the period and 
     inserting ``; or''; and
       (3) by inserting at the end the following:
       ``(7) material involved in a violation of section 2252A of 
     title 18, United States Code (relating to material 
     constituting or containing child pornography).''.
                                 ______
                                 
      By Mr. KOHL (for himself, Mr. Hatch, Mr. Leahy, Mr. DeWine, and 
        Mr. Durbin):
  S. 1233. A bill to provide penalties for certain unauthorized writing 
with respect to consumer products; to the Committee on the Judiciary.
  Mr. KOHL. Madam President, I rise today with Senators Hatch, Leahy, 
DeWine, and Durbin to introduce the Product Packaging Protection Act of 
2001. This measure will help prevent and punish a disturbing trend of 
product tampering, the placement of hate-filled literature into the 
boxes of cereal or food that millions of Americans bring home from the 
grocery store every day.
  Opening a box of macaroni and cheese should not be a harrowing 
experience. But too many Americans have recently opened product boxes 
and found offensive, racist, anti-Semitic, pornographic and hateful 
leaflets. In the last few years, food manufacturers have received 
numerous complaints from consumers who report finding such literature 
inserted in their groceries. Hundreds more incidents have likely gone 
unreported. Pizza and cereal boxes appear to be the most frequent 
targets of this hate speech, but any product large enough for a vandal 
to insert an offensive leaflet is a potential target.
  As disturbing as this conduct is, it is equally troubling that no 
Federal law exists. And only a couple of State laws are in place. The 
measure I introduce today will remedy this situation. It is supported 
by the manufacturers whose products are tampered with. It is necessary 
for us to help the American consumer.
  It will empower the government to investigate and punish these 
reprehensible acts. Let me give you one example of how these acts 
impact unsuspecting Americans. This conduct can harm the youngest and 
most impressionable among us.
  Recently, one morning, eight year old Mario Alexander of Chestnut 
Ridge, NJ decided to make himself breakfast one morning. In a kitchen 
cabinet, he found an unopened box of his favorite cereal, Oreo O's. So, 
he grabbed the cereal, a bowl, a spoon, and milk from the refrigerator. 
He then sat down at the kitchen table and opened the cereal box. In 
addition to the sealed bag of cereal inside, he also found a piece of 
paper. When he opened it, he discovered a graphic description of 
abortion. The leaflet also informed Mario that groups like the National 
Organization of Women and the American Civil Liberties Union are 
``Natural Born Killers.'' Imagine his surprise and confusion when he 
found that propaganda, not to mention the shock of his parents. No 
child should be unknowingly exposed to that kind of material. Yet, it 
happens regularly in kitchens across the country.
  These are not isolated occurrences. In fact, Kraft Foods has 
documented over 80 incidents in the past four years alone, almost one 
every two weeks. Of course, there is no way to calculate the number of 
incidents that go unreported. Many manufacturers and distributors share 
Kraft's experience with this type of product tampering. Together, they 
recognize the need for this legislation and have signed a letter 
supporting the introduction and passage of this bill. The supporters of 
this bill include: the American Bakers Association, the American Frozen 
Food Institute, Food Distributors International, General Mills, the 
Grocery Manufacturers of America, the Independent Bakers Association, 
Kellogg's, Kraft Foods, the National Food Processors Association, and 
the National Frozen Pizza Institute.
  No child, indeed no person, should have to face this type of assault 
in the privacy of their homes. But children like Mario Alexander are 
not the only victims of this kind of behavior. The companies that make 
these products have their names and reputations slandered by this 
activity.
  Manufacturers have responded as best they can to these incidents. 
They have undertaken internal reviews to ensure that these leaflets are 
not getting into the products either at the manufacturing plant or 
during distribution. It is not until the products reach the shelves of 
the grocery store that these handbills are inserted, too late for the 
manufacturer or the distributor to do anything about it.
  Unfortunately, when consumers or companies turn to the authorities 
for help, they cannot be assisted. According to the Federal Bureau of 
Investigations and the Food and Drug Administration's Office of 
Criminal Investigation, these actions are not covered by federal 
product tampering statutes. Those laws only cover the actual product 
themselves, but not the packaging. In response to incidents in their 
respective states, both New Jersey and California passed laws to 
criminalize this behavior. These States should be commended, but more 
should be done. Federal law needs to be amended accordingly.
  The Product Packaging Protection Act of 2001 would prohibit the 
placement of any writing or other material inside a consumer product 
without the

[[Page 14254]]

permission of the manufacturer, authorized distributor, or retailer. An 
exception would be made where the manufacturer places inserts in the 
product solely for promotional purposes. The penalty for violation of 
this measure would be a fine of up to $250,000 per offense and/or 
imprisonment of up to three years. Closing this gap in Federal law 
would appropriately punish people whose actions violate the integrity 
of the food product, compromise consumer's faith in the food they 
purchase in the grocery store, and damage the good name and reputation 
of the food manufacturer.
  I look forward to its consideration and passage.
  Mr. President, I ask unanimous consent that a copy of the legislation 
be printed in the Record following the completion of my remarks. I also 
ask unanimous consent that copies of the remarks of cosponsoring 
Senators be printed immediately following my statement.
  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. 1233

       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 ``Product Packaging Protection 
     Act of 2001''.

     SEC. 2. TAMPERING WITH CONSUMER PRODUCTS.

       Section 1365 of title 18, United States Code, is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f)(1) Whoever, without the consent of the manufacturer, 
     retailer, or authorized distributor, intentionally tampers 
     with a consumer product that is sold in interstate or foreign 
     commerce by knowingly placing or inserting any writing in the 
     consumer product, or the container for the consumer product, 
     before the sale of the consumer product to any consumer shall 
     be fined under this title, imprisoned not more than three 
     years, or both.
       ``(2) As used in paragraph (1) of this subsection, the term 
     `writing' means any form of representation or communication, 
     including handbills, notices, or advertising, that contain 
     letters, words, or pictorial representations.''.

  Mr. HATCH. Mr. President, I am proud to sponsor, along with my good 
friend and esteemed colleague, Senator Kohl, the Product Packaging 
Protection Act of 2001. Other cosponsors include Senator DeWine and the 
distinguished Chairman of the Judiciary Committee, Senator Leahy.
  This bipartisan legislation addresses a troubling development that 
has been increasingly reported over the last several years--the 
discovery by consumers of unauthorized pamphlets placed inside the 
packaging of everyday consumer products, such as breakfast cereal and 
frozen foods. In many cases, unsuspecting consumers, including young 
children, have found offensive messages inserted into the products they 
have purchased, including pamphlets explicitly advocating violence 
against particular racial, ethnic, and religious groups.
  While Federal law currently prohibits tampering with consumer 
products that taints the product, or renders the labeling materially 
false, the law does not currently prohibit someone placing writings in 
or on the product after the product has left the manufacturer's 
control. The legislation being introduced today will close this 
loophole--providing the FBI and other Federal law enforcement agencies 
with jurisdiction to investigate these incidents and bring the 
perpetrators to justice.
  With all the recent focus on protecting our children from corrupting 
influences on the Internet, we should not ignore old-fashioned ``low 
tech'' avenues by which harmful and often hateful messages may be 
disseminated. It is intolerable for the distributors of our foodstuffs 
and other consumer products to become the unwitting carriers of 
offensive harmful messages.
  I look forward to working with Senator Kohl to ensure passage of this 
important legislation.
  Mr. LEAHY. Madam President, I am pleased to join Senator Kohl, and 
others, on introducing the Product Packaging Protection Act of 2001.
  Over the last few years, consumer complaints had been made about 
offensive material being inserted in various consumer products. These 
offensive materials range from neo-Nazi and anti-Semitic hate messages 
to pornographic images and disturbing anti-abortion images. 
Unfortunately, these materials have been found in consumer products 
often used by children, such as cereal boxes. Moreover, such activities 
pose risks to the safety of consumer products, which consumers 
reasonably expect to obtain from the store in pristine condition and 
without those products having been opened by unauthorized individuals.
  To address this problem, this legislation would add a new prohibition 
to the Federal Anti-Tampering Act, 18 U.S.C. Sec.  1365, to prohibit a 
person from intentionally tampering with a consumer product, without 
the consent of the manufacturer, retailer, or authorized distributor by 
inserting a writing in the consumer product or its container prior to 
its sale to a consumer. A person convicted of violating this new 
provision would be subject to a fine or up to two years' imprisonment. 
The term ``tamper'' is defined to mean meddling for the purpose of 
altering, damaging or misusing a product. See Webster's Dictionary. The 
bill describes in precise terms the tampering activity that would fall 
within the new criminal prohibition, and is intended to extend further 
protection to consumer products.

                          ____________________