[Congressional Record (Bound Edition), Volume 147 (2001), Part 11]
[Senate]
[Pages 16375-16377]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BREAUX:
  S. 1405. A bill to amend the Internal Revenue Code of 1986 to allow 
certain coins to be acquired by individual retirement accounts and 
other individually directed pension plan accounts; to the Committee on 
Finance.
  Mr. BREAUX. Mr. President, I rise today to introduce legislation 
allowing certain U.S. legal tender coins to be qualified investments 
for an individual retirement account (IRA).
  Congress excluded ``collectibles,'' such as antiques, gold and silver 
bullion, and legal tender coinage, as appropriate for contribution to 
IRAs in 1981. The primary reason was the concern that individuals would 
get a tax break when they bought collectibles for their personal use. 
For example, a taxpayer might deduct the purchase of an antique rug for 
his/her living room as an IRA investment. Congress was also concerned 
about how the many different types of collectibles are valued.
  Over the years, however, certain coins and precious metals have been 
excluded from the definition of a collectible because they are 
independently valued investments that offer investors portfolio 
diversity and liquidity. For example, Congress excluded gold and silver 
U.S. American Eagles from the definition of collectibles in 1986, and

[[Page 16376]]

the Taxpayer Relief Act of 1997 took the further step of excluding 
certain precious metals bullion.
  My legislation would exclude from the definition of collectibles only 
those U.S. legal tender coins which meet the following three standards: 
certification by a nationally recognized grading service, traded on a 
nationally-recognized network and held by a qualified trustee as 
described in the Internal Revenue Code. In other words, only investment 
quality coins that are independently valued and not held for personal 
use may be included in IRAs.
  There are several nationally-recognized, independent certification or 
grading services. Full-time professional graders (numismatists) examine 
each coin for authenticity and grade them according to established 
standards. Upon certification, the coin is sonically-sealed (preserved) 
to ensure that if remains in the same condition as when it was graded.
  Legal tender coins are then traded via two independent electronic 
networks--the Certified Coin Exchange and Certified CoinNet. These 
networks are independent of each other and have no financial interest 
in the legal tender coinage and precious metals markets. The networks 
function in precisely the same manner as the NASDAQ with a series of 
published ``bid'' and ``ask'' prices and last trades. The buys and 
sells are enforceable prices that must be honored as posted until 
updated.
  Mr. President, the liquidity provided through a bona fide national 
trading network, combined with published prices, make legal tender 
coinage a practical investment that offers investors diversification 
and liquidity. Investment in these tangible assets has become a safe 
and prudent course of action for both the small and large investor and 
should be given the same treatment under the law as other financial 
investments. I urge the Senate to enact this important legislation as 
soon as possible.
  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. 1405

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

     SECTION 1. CERTAIN COINS NOT TREATED AS COLLECTIBLES.

       (a) In General.--Section 408(m)(3) of the Internal Revenue 
     Code of 1986 (relating to exception for certain coins and 
     bullion) is amended--
       (1) by inserting after clause (iv) in subparagraph (A) the 
     following new clause:
       ``(v) any coin certified by a recognized grading service 
     and either traded on a nationally recognized electronic 
     network or listed by a recognized wholesale reporting 
     service, and which is or was at any time legal tender in the 
     United States, or'', and
       (2) by striking ``such bullion'' in the matter following 
     subparagraph (B) and inserting ``such coin or bullion (in 
     either coin or bar form)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.
                                 ______
                                 
      By Mr. DOMENICI:
  S. 1407. A bill to establish a national competence for critical 
infrastructure protection, and for other purposes; to the Committee on 
Armed Services.
  Mr. DOMENICI. Mr. President, I rise today to introduce the Critical 
Infrastructures Protection Act of 2001. This bill represents an 
important first step towards greatly increasing our understanding of 
our nation's infrastructures and the interdependencies among those 
infrastructures that underpin our daily lives.
  I would ask my colleagues to think about the scare surrounding the 
year 2000 potential computer glitch, the so-called Y2K problem. We 
invested billions of dollars to ensure that the transition to that date 
did not cause a cataclysmic failure in our weapons systems, medical 
devices, energy sources, financial systems and many other areas. But, 
the cyber component of our potential vulnerability did not disappear on 
January 2, 2000.
  The physical infrastructures that support our daily lives are 
vulnerable as well. The increasing complexity of transportation and 
energy infrastructures make them extremely vital to our economy and 
exceedingly vulnerable to minor disturbances or perturbations, 
intentional or not. In many instances, a cyber infrastructure underlies 
the normal, efficient functioning of the physical infrastructures.
  The smooth functioning of the Federal Government, whether it's a 
Defense Department mission or the handling of veteran's medical claims, 
relies heavily on cyber infrastructures. Further, many critical 
infrastructures are supported or owned by private sector entities. The 
task of adequate protection and mitigation risk must be a cooperative 
effort between Federal, State and local governments and private sector 
actors.
  Beyond having insufficient understanding of the complex systems and 
their interdependencies, we also have no means to pinpoint what 
vulnerabilities we face or create policies to address vulnerabilities 
or ensure stability. Technology has outpaced our understanding of the 
potential inherent weaknesses or ensuing vulnerabilities. We currently 
cannot assess either the problems or possible solutions.
  The administration is fully aware of this problem. We confront a 
fundamental national security concern, and we currently lack sufficient 
government coordination and scientific understanding to adequately 
address it.
  The President will sign an Executive order in the coming weeks to 
address the coordination needs of the federal agencies responsible for 
critical infrastructures. This Executive order establishes the 
President's Critical Infrastructure Protection and Continuity Board to 
address our federal government's policies, procedures and capacity to 
achieve specific policy objectives. This Board will require scientific 
modeling and simulation capacity to inform policy making and 
implementation of a framework to ensure adequate protection.
  The National Infrastructure Simulation and Analysis Center (NISAC) 
offers precisely that scientific capability. For almost a decade two of 
the Department of Energy National Laboratories, Los Alamos and Sandia 
National Labs, have been working to model our nations energy and 
transportation infrastructures. They have also modeled epidemics, 
simulated anthrax attacks and assisted private sector companies better 
understand the infrastructure necessarily for the next generation of 
cell phones.
  The computing capacity and expertise applied to modeling and 
simulating the physics of a nuclear explosion can be readily leveraged 
to address the design and protection of our nation's cyber and physical 
infrastructures.
  This bill is designed to support the President's forthcoming 
executive order by reiterating our key national policy objectives, 
including: that the physical or virtual disruption of any of these 
critical infrastructures should be rare, brief, limited geographically, 
manageable, and minimally detrimental to the economy, essential human 
and government services, and national security; a public-private 
partnership, involving corporation and non-governmental organizations, 
is necessary to facilitate adequate protection; the need for a 
comprehensive and effective program to ensure continuity of essential 
Federal functions under all circumstances.
  The bill also establishes NISAC as a core research and analytical 
tool to support the President's Critical Infrastructure Protection and 
Continuity Board, especially, but not limited to, the Infrastructure 
Interdependencies Committee established in the Executive order.
  Further, the bill authorizes $8 million for the first year in order 
to expedite the process of creating a structure for data acquisition, 
model development and enhanced understanding or our nation's 
infrastructures and their interdependencies.
  Our Nation cannot be secure without sufficient understanding of the 
infrastructures that undergrid our economy and facilitate modern life. 
The unintentional or overt disruption of any one of these 
infrastructures could have a cascading effect on other areas. In a 
worst case scenario, such mass disruption could have a severe economic 
or national security impact.

[[Page 16377]]

  I ask my colleagues for their support in ensuring we immediately 
apply the best available means to addressing these threats. NISAC can 
offer the appropriate analytical tools to support the President's 
Critical Infrastructure Board. This bill will position and fund NISAC 
in the forthcoming year to fulfill this mission.
  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. 1407

       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 ``Critical Infrastructures 
     Protection Act of 2001''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The Information revolution has transformed the conduct 
     of business and the operations of government as well as the 
     infrastructure relied upon for the defense and national 
     security of the United States.
       (2) Private business, government, and the national security 
     apparatus increasingly depend on an interdependent network of 
     critical physical and information infrastructures, including 
     telecommunications, energy, financial services, water, and 
     transportation sectors.
       (3) A continuous national effort is required to ensure the 
     reliable provision of cyber and physical infrastructure 
     services critical to maintaining the national defense, 
     continuity of government, economic prosperity, and quality of 
     life in the United States.
       (4) This national effort requires extensive modeling and 
     analytic capabilities for purposes of evaluating appropriate 
     mechanisms to ensure the stability of these complex and 
     interdependent systems, and to underpin policy 
     recommendations, so as to achieve the continuous viability 
     and adequate protection of the critical infrastructure of the 
     nation.

     SEC. 3. POLICY OF THE UNITED STATES.

       It is the policy of the United States--
       (1) that any physical or virtual disruption of the 
     operation of the critical infrastructures of the United 
     States be rare, brief, geographically limited in effect, 
     manageable, and minimally detrimental to the economy, 
     essential human and government services, and national 
     security of the United States;
       (2) that actions necessary to achieve the policy stated in 
     paragraph (1) be carried out in a public-private partnership 
     involving corporate and non-governmental organizations; and
       (3) to have in place a comprehensive and effective program 
     to ensure the continuity of essential Federal Government 
     functions under all circumstances.

     SEC. 4. ESTABLISHMENT OF NATIONAL COMPETENCE FOR CRITICAL 
                   INFRASTRUCTURE PROTECTION.

       (a) Support of Critical Infrastructure Protection and 
     Continuity by National Infrastructure Simulation and Analysis 
     Center.--
       (1) In general.--The National Infrastructure Simulation and 
     Analysis Center (NISAC) shall provide support for the 
     activities of the President's Critical Infrastructure 
     Protection and Continuity Board under Executive Order __.
       (2) Particular support.--The support provided for the Board 
     under paragraph (1) shall include the following:
       (A) Modeling, simulation, and analysis of the systems 
     comprising critical infrastructures, including cyber 
     infrastructure, telecommunications infrastructure, and 
     physical infrastructure, in order to enhance understanding of 
     the large-scale complexity of such systems and to facilitate 
     modification of such systems to mitigate the threats to such 
     systems and to critical infrastructures generally.
       (B) Acquisition from State and local governments and the 
     private sector of data necessary to create and maintain 
     models of such systems and of critical infrastructures 
     generally.
       (C) Utilization of modeling, simulation, and analysis under 
     subparagraph (A) to provide education and training to members 
     of the Board, and other policymakers, on matters relating 
     to--
       (i) the analysis conducted under that subparagraph;
       (ii) the implications of unintended or unintentional 
     disturbances to critical infrastructures; and
       (iii) responses to incidents or crises involving critical 
     infrastructures, including the continuity of government and 
     private sector activities through and after such incidents or 
     crises.
       (D) Utilization of modeling, simulation, and analysis under 
     subparagraph (A) to provide recommendations to members of the 
     Board and other policymakers, and to departments and agencies 
     of the Federal Government and private sector persons and 
     entities upon request, regarding means of enhancing the 
     stability of, and preserving, critical infrastructures.
       (3) Recipient of certain support.--Modeling, simulation, 
     and analysis provided under this subsection to the Board 
     shall be provided, in particular, to the Infrastructure 
     Interdependencies committee of the Board under section 
     9(c)(8) of the Executive Order referred to in paragraph (1).
       (b) Activities of President's Critical Infrastructure 
     Protection and Continuity Board.--The Board shall provide to 
     the Center appropriate information on the critical 
     infrastructure requirements of each Federal agency for 
     purposes of facilitating the provision of support by the 
     Center for the Board under subsection (a).

     SEC. 5. CRITICAL INFRASTRUCTURE DEFINED.

       In this Act, the term ``critical infrastructure'' means 
     systems and assets, whether physical or virtual, so vital to 
     the United States that the incapacity or destruction of such 
     systems and assets would have a debilitating impact on 
     national security, national economic security, national 
     public health or safety, or any combination of those matters.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       There is hereby authorized for the Department of Defense 
     for fiscal year 2002, $8,000,000 for the Defense Threat 
     Reduction Agency for activities of the National 
     Infrastructure Simulation and Analysis Center under section 4 
     in that fiscal year.

                          ____________________