[Congressional Record (Bound Edition), Volume 147 (2001), Part 17]
[Senate]
[Pages 24595-24600]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 24595]]

          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DOMENICI:
  S. 1791. A bill to amend the Internal Revenue Code of 1986 to provide 
for economic security and recovery, and for other purposes; to the 
Committee on finance.
  Mr. DOMENICI. Madam President, the economy remains weak and the 
unemployment rate released last Friday for the month of November topped 
5.7 percent. This is the highest level in over 6 years, and many 
economists expect it to exceed 6 percent in the coming months.
  Recently the economy officially was put in the category of 
``recession'' beginning last March by the National Bureau of Economic 
Research.
  The economy measured by its gross national product, declined at a 1.1 
percent rate in the third quarter of this year.
  Corporate profits are down nearly 22 percent compared to last year, 
and consumer confidence is down 51 points in three months, the steepest 
drop since 1980.
  While there are a couple of ``not so bad'' economic factors out 
there, low consumer prices, low interest rates, low oil prices for 
consumers, and record high auto sales, these all could be temporary 
phenomena related to a broader weak economy and low consumer demand.
  For all these reasons, I believe Congress needs to act on a stimulus 
bill before it adjourns this first session of the 107th congress.
  The American public deserves action on a stimulus bill and we need to 
act quickly. Too much time has passed and we cannot let politics as 
usual keep us from putting together a bill that can achieve wide 
bipartisan support quickly.
  I have come to the conclusion that we should adopt a bill that is not 
controversial, politically speaking, and that can actually do some good 
for the American economy in a short time period.
  I therefore am introducing today a bill that does three very simple 
things that I think we can all agree on:
  First, a one-month payroll tax holiday, that will provide relief from 
the regressive payroll tax. It would eliminate the need for both 
employers and employees to pay the current 12.4 percent tax.
  I have found wide bipartisan support for this proposal. Unfortunately 
it is probably too late now to implement it successfully in the month 
of December but I still believe it can be enacted in time to provide 
real relief in the first month of 2002.
  This proposal will provide nearly $40 billion in immediate, temporary 
tax relief to working Americans and businesses, and to State and local 
governments that must pay the tax also.
  Second, expand the safety net for working Americans by extending 
unemployment insurance for 13 weeks, and providing nearly 300,000 part 
time workers eligibility for unemployment insurance benefits and 
adjusting the ``base period'' for determining eligibility. These latter 
two changes were recommended by a blue ribbon commission charged with 
making recommendations for reforming the UI program.
  In total the changes I am recommending would increase the cost of the 
program by about $9 billion this year, and only $12 billion over the 
next decade.
  Finally, the bill I am proposing today would provide for an 
enhancement of expensing for capital purchases, a 20 percent bonus for 
depreciation with a 3 year sunset. The tax benefit to businesses for 
new capital purchases would be nearly $26 billion this year, and $12 
billion over the next decade.
  In total, these three provisions, packaged together to provide quick 
and affordable economic stimulus, would not exceed $73 billion this 
year and less than $62 billion over the next decade.
  Like so many on my side I wish we could do more in the way of 
speeding up the marginal tax rate cuts we enacted last spring, but it 
is clear that that can not pass the political test of other side.
  Some on the other side want to have a major expansion of health care 
benefits in any stimulus package, but it should be clear now that that 
will not pass the political test on this side of the aisle.
  For these reasons, I believe with time running short, this is the 
best possible package that we can put together that will win wide 
bipartisan support in the shortest amount of time and I encourage those 
directly involved in the, what appears to be faltering negotiations on 
a stimulus bill, to look at this package as a solution to acting 
quickly.
  I submit the bill to the desk for referral and I ask unanimous 
consent that the bill and a table outlining the proposal be printed in 
the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1791

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Economic 
     Security and Recovery Act of 2001''.
       (b) References to Internal Revenue Code of 1986.--Except as 
     otherwise expressly provided, whenever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.
       (c) Table of Contents.--

Sec. 1. Short title; etc.

                      TITLE I--BUSINESS PROVISIONS

Sec. 101. Special depreciation allowance for certain property acquired 
              after September 10, 2001, and before September 11, 2004.

                     TITLE II--PAYROLL TAX HOLIDAY

Sec. 201. Payroll tax holiday.

        TITLE III--TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION

Sec. 301. Federal-State agreements.
Sec. 302. Temporary emergency unemployment compensation account.
Sec. 303. Payments to States having agreements for the payment of 
              temporary emergency unemployment compensation.
Sec. 304. Financing provisions.
Sec. 305. Fraud and overpayments.
Sec. 306. Definitions.
Sec. 307. Applicability.

                      TITLE I--BUSINESS PROVISIONS

     SEC. 101. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY 
                   ACQUIRED AFTER SEPTEMBER 10, 2001, AND BEFORE 
                   SEPTEMBER 11, 2004.

       (a) In General.--Section 168 (relating to accelerated cost 
     recovery system) is amended by adding at the end the 
     following new subsection:
       ``(k) Special Allowance for Certain Property Acquired After 
     September 10, 2001, and Before September 11, 2004.--
       ``(1) Additional allowance.--In the case of any qualified 
     property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 20 percent of the 
     adjusted basis of the qualified property, and
       ``(B) the adjusted basis of the qualified property shall be 
     reduced by the amount of such deduction before computing the 
     amount otherwise allowable as a depreciation deduction under 
     this chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has a recovery 
     period of 20 years or less or which is water utility 
     property, or
       ``(II) which is computer software (as defined in section 
     167(f)(1)(B)) for which a deduction is allowable under 
     section 167(a) without regard to this subsection,
       ``(ii) the original use of which commences with the 
     taxpayer after September 10, 2001,
       ``(iii) which is--

       ``(I) acquired by the taxpayer after September 10, 2001, 
     and before September 11, 2004, but only if no written binding 
     contract for the acquisition was in effect before September 
     11, 2001, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into after September 10, 
     2001, and before September 11, 2004, and

       ``(iv) which is placed in service by the taxpayer before 
     January 1, 2005.
       ``(B) Exceptions.--
       ``(i) Alternative depreciation property.--The term 
     `qualified property' shall not include any property to which 
     the alternative depreciation system under subsection (g) 
     applies, determined--

       ``(I) without regard to paragraph (7) of subsection (g) 
     (relating to election to have system apply), and
       ``(II) after application of section 280F(b) (relating to 
     listed property with limited business use).

[[Page 24596]]

       ``(ii) Election out.--If a taxpayer makes an election under 
     this clause with respect to any class of property for any 
     taxable year, this subsection shall not apply to all property 
     in such class placed in service during such taxable year.
       ``(iii) Repaired or reconstructed property.--Except as 
     otherwise provided in regulations, the term `qualified 
     property' shall not include any repaired or reconstructed 
     property.
       ``(iv) Qualified leasehold improvement property.--The term 
     `qualified property' shall not include any qualified 
     leasehold improvement property (as defined in section 
     168(e)(6)).
       ``(C) Special rules relating to original use.--
       ``(i) Self-constructed property.--In the case of a taxpayer 
     manufacturing, constructing, or producing property for the 
     taxpayer's own use, the requirements of clause (iii) of 
     subparagraph (A) shall be treated as met if the taxpayer 
     begins manufacturing, constructing, or producing the property 
     after September 10, 2001, and before September 11, 2004.
       ``(ii) Sale-leasebacks.--For purposes of subparagraph 
     (A)(ii), if property--

       ``(I) is originally placed in service after September 10, 
     2001, by a person, and
       ``(II) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in subclause (II).
       ``(D) Coordination with section 280f.--For purposes of 
     section 280F--
       ``(i) Automobiles.--In the case of a passenger automobile 
     (as defined in section 280F(d)(5)) which is qualified 
     property, the Secretary shall increase the limitation under 
     section 280F(a)(1)(A)(i) by $4,600.
       ``(ii) Listed property.--The deduction allowable under 
     paragraph (1) shall be taken into account in computing any 
     recapture amount under section 280F(b)(2).''
       (b) Allowance Against Alternative Minimum Tax.--
       (1) In general.--Section 56(a)(1)(A) (relating to 
     depreciation adjustment for alternative minimum tax) is 
     amended by adding at the end the following new clause:
       ``(iii) Additional allowance for certain property acquired 
     after september 10, 2001, and before september 11, 2004.--The 
     deduction under section 168(k) shall be allowed.''
       (2) Conforming amendment.--Clause (i) of section 
     56(a)(1)(A) is amended by striking ``clause (ii)'' both 
     places it appears and inserting ``clauses (ii) and (iii)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after September 10, 
     2001, in taxable years ending after such date.

                     TITLE II--PAYROLL TAX HOLIDAY

     SEC. 201. PAYROLL TAX HOLIDAY.

       (a) In General.--Notwithstanding any other provision of 
     law, the rate of tax with respect to remuneration received 
     during the payroll tax holiday period shall be zero under 
     sections 1401(a), 3101(a), and 3111(a) of the Internal 
     Revenue Code of 1986 and for purposes of determining the 
     applicable percentage under section 3201(a), 3211(a)(1), and 
     3221(a) of such Code.
       (b) Payroll Tax Holiday Period.--The term ``payroll tax 
     holiday period'' means the period beginning after November 
     30, 2001, and ending before January 1, 2002.
       (c) Employer Notification.--The Secretary of the Treasury 
     shall notify employers of the payroll tax holiday period in 
     any manner the Secretary deems appropriate.
       (d) Transfer of Funds.--The Secretary of the Treasury shall 
     transfer from the general revenues of the Federal Government 
     an amount sufficient so as to ensure that the income and 
     balances of the trust funds under section 201 of the Social 
     Security Act and the Social Security Equivalent Benefit 
     Account under section 15A of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231n-1) are not reduced as a result of the 
     application of subsection (a).
       (e) Determination of Benefits.--In making any determination 
     of benefits under title II of the Social Security Act, the 
     Commissioner of Social Security shall disregard the effect of 
     the payroll tax holiday period on any individual's earnings 
     record.

          TITLE III--TEMPORARY EMERGENCY UNEMPLOYMENT BENEFITS

     SEC. 301. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this title with 
     the Secretary of Labor (in this title referred to as the 
     ``Secretary''). Any State which is a party to an agreement 
     under this title may, upon providing 30 days written notice 
     to the Secretary, terminate such agreement.
       (b) Provisions of Agreement.--
       (1) In general.--Any agreement under subsection (a) shall 
     provide that the State agency of the State will make--
       (A) payments of regular compensation to individuals in 
     amounts and to the extent that such payments would be 
     determined if the State law were applied with the 
     modifications described in paragraph (2); and
       (B) payments of temporary emergency unemployment 
     compensation to individuals who--
       (i) have exhausted all rights to regular compensation under 
     the State law;
       (ii) do not, with respect to a week, have any rights to 
     compensation (excluding extended compensation) under the 
     State law of any other State (whether one that has entered 
     into an agreement under this title or otherwise) nor 
     compensation under any other Federal law (other than under 
     the Federal-State Extended Unemployment Compensation Act of 
     1970 (26 U.S.C. 3304 note)), and are not paid or entitled to 
     be paid any additional compensation under any Federal or 
     State law; and
       (iii) are not receiving compensation with respect to such 
     week under the unemployment compensation law of Canada.
       (2) Modifications described.--The modifications described 
     in this paragraph are as follows:
       (A) Alternative base period.--An individual shall be 
     eligible for regular compensation if the individual would be 
     so eligible, determined by applying--
       (i) the base period that would otherwise apply under the 
     State law if this title had not been enacted; or
       (ii) a base period ending at the close of the calendar 
     quarter most recently completed before the date of the 
     individual's application for benefits, provided that wage 
     data for that quarter has been reported to the State;

     whichever results in the greater amount.
       (B) Part-time employment.--An individual shall not be 
     denied regular compensation under the State law's provisions 
     relating to availability for work, active search for work, or 
     refusal to accept work, solely by virtue of the fact that 
     such individual is seeking, or is available for, only part-
     time (and not full-time) work, if--
       (i) the individual's employment on which eligibility for 
     the regular compensation is based was part-time employment; 
     or
       (ii) the individual can show good cause for seeking, or 
     being available for, only part-time (and not full-time) work.
       (c) Coordination Rules.--
       (1) Regular compensation payable under a federal law.--The 
     modifications described in subsection (b)(2) shall also apply 
     in determining the amount of benefits payable under any 
     Federal law to the extent that those benefits are determined 
     by reference to regular compensation payable under the State 
     law of the State involved.
       (2) TEUC to serve as second-tier benefits.--Notwithstanding 
     any other provision of law, extended benefits shall not be 
     payable to any individual for any week for which temporary 
     emergency unemployment compensation is payable to such 
     individual.
       (d) Exhaustion of Benefits.--For purposes of subsection 
     (b)(1)(B)(i), an individual shall be considered to have 
     exhausted such individual's rights to regular compensation 
     under a State law when--
       (1) no payments of regular compensation can be made under 
     such law because such individual has received all regular 
     compensation available to such individual based on employment 
     or wages during such individual's base period; or
       (2) such individual's rights to such compensation have been 
     terminated by reason of the expiration of the benefit year 
     with respect to which such rights existed.
       (e)  Weekly Benefit Amount.--For purposes of any agreement 
     under this title--
       (1) the amount of temporary emergency unemployment 
     compensation which shall be payable to an individual for any 
     week of total unemployment shall be equal to the amount of 
     regular compensation (including dependents' allowances) 
     payable to such individual under the State law for a week for 
     total unemployment during such individual's benefit year;
       (2) the terms and conditions of the State law which apply 
     to claims for extended compensation and to the payment 
     thereof shall apply to claims for temporary emergency 
     unemployment compensation and the payment thereof, except 
     where inconsistent with the provisions of this title or with 
     the regulations or operating instructions of the Secretary 
     promulgated to carry out this title; and
       (3) the maximum amount of temporary emergency unemployment 
     compensation payable to any individual for whom a temporary 
     emergency unemployment compensation account is established 
     under section 302 shall not exceed the amount established in 
     such account for such individual.
       (e) Election by States.--Notwithstanding any other 
     provision of Federal law (and if State law permits), the 
     Governor of a State is authorized and may elect to trigger 
     off an extended compensation period in order to provide 
     payment of temporary emergency unemployment compensation to 
     individuals who have exhausted their rights to regular 
     compensation under State law.

     SEC. 302. TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION 
                   ACCOUNT.

       (a) In General.--Any agreement under this title shall 
     provide that the State will establish, for each eligible 
     individual who files an application for temporary emergency 
     unemployment compensation, a temporary emergency unemployment 
     compensation account with respect to such individual's 
     benefit year.
       (b) Amount in Account.--

[[Page 24597]]

       (1) In general.--The amount established in an account under 
     subsection (a) shall be equal to 13 times the individual's 
     average weekly benefit amount for the benefit year.
       (2) Reduction for extended benefits.--The amount in an 
     account under paragraph (1) shall be reduced (but not below 
     zero) by the aggregate amount of extended compensation (if 
     any) received by such individual relating to the same benefit 
     year under the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note).
       (3) Weekly benefit amount.--For purposes of this 
     subsection, an individual's weekly benefit amount for any 
     week is the amount of regular compensation (including 
     dependents' allowances) under the State law payable to such 
     individual for such week for total unemployment.

     SEC. 303. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE 
                   PAYMENT OF TEMPORARY EMERGENCY UNEMPLOYMENT 
                   COMPENSATION.

       (a) General Rule.--There shall be paid to each State which 
     has entered into an agreement under this title an amount 
     equal to--
       (1) 100 percent of any regular compensation made payable to 
     individuals by such State by virtue of the modifications 
     which are described in section 301(b)(2) and deemed to be in 
     effect with respect to such State pursuant to section 
     301(b)(1)(A);
       (2) 100 percent of any regular compensation--
       (A) which is paid to individuals by such State by reason of 
     the fact that its State law contains provisions comparable to 
     the modifications described in subparagraphs (A) and (B) of 
     section 301(b)(2); but only
       (B) to the extent that those amounts would, if such amounts 
     were instead payable by virtue of the State law's being 
     deemed to be so modified pursuant to section 301(b)(1)(A), 
     have been reimbursable under paragraph (1); and
       (3) 100 percent of the temporary emergency unemployment 
     compensation paid to individuals by the State pursuant to 
     such agreement.
       (b) Treatment of Reimbursable Compensation.--No payment 
     shall be made to any State under this section in respect of 
     any compensation to the extent the State is entitled to 
     reimbursement in respect of such compensation under the 
     provisions of any Federal law other than this title or 
     chapter 85 of title 5, United States Code. A State shall not 
     be entitled to any reimbursement under such chapter 85 in 
     respect of any compensation to the extent the State is 
     entitled to reimbursement under this title in respect of such 
     compensation.
       (c) Determination of Amount.--Sums under subsection (a) 
     payable to any State by reason of such State having an 
     agreement under this title shall be payable, either in 
     advance or by way of reimbursement (as may be determined by 
     the Secretary), in such amounts as the Secretary estimates 
     the State will be entitled to receive under this title for 
     each calendar month, reduced or increased, as the case may 
     be, by any amount by which the Secretary finds that the 
     Secretary's estimates for any prior calendar month were 
     greater or less than the amounts which should have been paid 
     to the State. Such estimates may be made on the basis of such 
     statistical, sampling, or other method as may be agreed upon 
     by the Secretary and the State agency of the State involved.

     SEC. 304. FINANCING PROVISIONS.

       (a) In General.--There are appropriated such funds as are 
     necessary to make payments to States having agreements 
     entered into under this title.
       (b) Certification.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     State the sums payable to such State under this title. The 
     Secretary of the Treasury, prior to audit or settlement by 
     the General Accounting Office, shall make payments to the 
     State in accordance with such certification, by transfers 
     from the extended unemployment compensation account (as so 
     established) to the account of such State in the Unemployment 
     Trust Fund (as so established).
       (c) Assistance to States.--There are appropriated, without 
     fiscal year limitation, such funds as may be necessary for 
     purposes of assisting States (as provided in title III of the 
     Social Security Act (42 U.S.C. 501 et seq.) in meeting the 
     costs of administration of agreements under this title.
       (d) Appropriations for Certain Payments.--There are 
     appropriated from the general fund of the Treasury, without 
     fiscal year limitation, such sums as the Secretary estimates 
     to be necessary to make the payments under this section in 
     respect of--
       (1) compensation payable under chapter 85 of title 5, 
     United States Code; and
       (2) compensation payable on the basis of services to which 
     section 3309(a)(1) of the Internal Revenue Code of 1986 
     applies.

     Amounts appropriated pursuant to the preceding sentence shall 
     not be required to be repaid.

     SEC. 305. FRAUD AND OVERPAYMENTS.

       (a) In General.--If an individual knowingly has made, or 
     caused to be made by another, a false statement or 
     representation of a material fact, or knowingly has failed, 
     or caused another to fail, to disclose a material fact, and 
     as a result of such false statement or representation or of 
     such nondisclosure such individual has received an amount of 
     temporary emergency unemployment compensation under this 
     title to which he was not entitled, such individual--
       (1) shall be ineligible for further temporary emergency 
     unemployment compensation under this title in accordance with 
     the provisions of the applicable State unemployment 
     compensation law relating to fraud in connection with a claim 
     for unemployment compensation; and
       (2) shall be subject to prosecution under section 1001 of 
     title 18, United States Code.
       (b) Repayment.--In the case of individuals who have 
     received amounts of temporary emergency unemployment 
     compensation under this title to which they were not 
     entitled, the State shall require such individuals to repay 
     the amounts of such emergency unemployment compensation to 
     the State agency, except that the State agency may waive such 
     repayment if it determines that--
       (1) the payment of such emergency unemployment compensation 
     was without fault on the part of any such individual; and
       (2) such repayment would be contrary to equity and good 
     conscience.
       (c) Recovery by State Agency.--
       (1) In general.--The State agency may recover the amount to 
     be repaid, or any part thereof, by deductions from any 
     temporary emergency unemployment compensation payable to such 
     individual under this title or from any unemployment 
     compensation payable to such individual under any Federal 
     unemployment compensation law administered by the State 
     agency or under any other Federal law administered by the 
     State agency which provides for the payment of any assistance 
     or allowance with respect to any week of unemployment, during 
     the 3-year period after the date such individuals received 
     the payment of the temporary emergency unemployment 
     compensation to which they were not entitled, except that no 
     single deduction may exceed 50 percent of the weekly benefit 
     amount from which such deduction is made.
       (2) Opportunity for hearing.--No repayment shall be 
     required, and no deduction shall be made, until a 
     determination has been made, notice thereof and an 
     opportunity for a fair hearing has been given to the 
     individual, and the determination has become final.
       (d) Review.--Any determination by a State agency under this 
     section shall be subject to review in the same manner and to 
     the same extent as determinations under the State 
     unemployment compensation law, and only in that manner and to 
     that extent.

     SEC. 306. DEFINITIONS.

       In this title:
       (1) In general.--The terms ``compensation'', ``regular 
     compensation'', ``extended compensation'', ``additional 
     compensation'', ``benefit year'', ``base period'', ``State'', 
     ``State agency'', ``State law'', and ``week'' have the 
     respective meanings given such terms under section 205 of the 
     Federal-State Extended Unemployment Compensation Act of 1970 
     (26 U.S.C. 3304 note), subject to paragraph (2).
       (2) State law and regular compensation.--In the case of a 
     State entering into an agreement under this title--
       (A) ``State law'' shall be considered to refer to the State 
     law of such State, applied in conformance with the 
     modifications described in section 301(b)(2); and
       (B) ``regular compensation'' shall be considered to refer 
     to such compensation, determined under its State law (applied 
     in the manner described in subparagraph (A));

     except as otherwise provided or where the context clearly 
     indicates otherwise.

     SEC. 307. APPLICABILITY.

       (a) In General.--An agreement entered into under this title 
     shall apply to weeks of unemployment--
       (1) beginning no earlier than the first day of the first 
     week after the date on which such agreement is entered into; 
     and
       (2) ending before the date that is 12 months after the date 
     of enactment of this Act.
       (b) Specific Rules.--
       (1) In general.--Under such an agreement, the following 
     rules shall apply:
       (A) Alternative base periods.--The modification described 
     in section 301(b)(2)(A) (relating to alternative base 
     periods) shall not apply except in the case of initial claims 
     filed on or after the first day of the week that includes 
     September 11, 2001.
       (B) Part-time employment.--The modifications described in 
     section 301(b)(2)(B) (relating to part-time employment) shall 
     apply to weeks of unemployment described in subsection (a), 
     regardless of the date on which an individual's initial claim 
     for benefits is filed.
       (C) Eligibility for teuc.--The payments described in 
     section 301(b)(1)(B) (relating to temporary emergency 
     unemployment compensation) shall not apply except in the case 
     of individuals exhausting their rights to regular 
     compensation (as described in clause (i) of such section) on 
     or after the first day of the week that includes September 
     11, 2001.
       (2) Reapplication process.--
       (A) Alternative base periods.--In the case of an individual 
     who filed an initial claim for regular compensation on or 
     after the first day of the week that includes September 11, 
     2001, and before the date that the

[[Page 24598]]

     State entered into an agreement under subsection (a)(1) that 
     was denied as a result of the application of the base period 
     that applied under the State law prior to the date on which 
     the State entered into the such agreement, such individual--
       (i) may refile a claim for regular compensation based on 
     the modification described in section 301(b)(2)(A) (relating 
     to alternative base periods) on or after the date on which 
     the State enters into such agreement and before the date on 
     which such agreement terminates; and
       (ii) if eligible, shall be entitled to such compensation 
     only for weeks of unemployment described in subsection (a) 
     beginning on or after the date on which the individual files 
     such claim.
       (B) Part-time employment.--In the case of an individual who 
     before the date that the State entered into an agreement 
     under subsection (a)(1) was denied regular compensation under 
     the State law's provisions relating to availability for work, 
     active search for work, or refusal to accept work, solely by 
     virtue of the fact that such individual is seeking, or 
     available for, only part-time (and not full-time) work, such 
     individual--
       (i) may refile a claim for regular compensation based on 
     the modification described in section 301(b)(2)(B) (relating 
     to part-time employment) on or after the date on which the 
     State enters into the agreement under subsection (a)(1) and 
     before the date on which such agreement terminates; and
       (ii) if eligible, shall be entitled to such compensation 
     only for weeks of unemployment described in subsection (a) 
     beginning on or after the date on which the individual files 
     such claim.
       (3) No retroactive payments for weeks prior to agreement.--
     No amounts shall be payable to an individual under an 
     agreement entered into under this title for any week of 
     unemployment prior to the week beginning after the date on 
     which such agreement is entered into.
                                  ____


                         Domenici Stimulus Bill

------------------------------------------------------------------------
                                                             Cost in
                                                             billions
                                                        ----------------
                                                          2002   2002-11
------------------------------------------------------------------------
       Relief for Low and Middle-Income Americans
 
Payroll Tax Holiday: Offer workers and employers a one-    $38       $38
 month holiday from federal payroll taxes while holding
 federal trust funds harmless..........................
 
      Expand the Safety Net for Working Americans
 
Extended and Expanded Unemployment Benefits: Provide         9        12
 additional 13 weeks of unemployment benefits to
 workers who exhaust their standard benefits after 9/
 11, expand eligibility to part-time workers, apply
 alternative base period...............................
 
       Stimulus for Encouraging Investment--Bonus
 
Expensing: Enhance expensing of capital expenditures        26        12
 with 20% bonus depreciation (3-year sunset)...........
                                                        ----------------
    Total Stimulus and Assistance......................     73        62
------------------------------------------------------------------------

                                 ______
                                 
      By Mr. BAYH (for himself, Mr. McCain, Mr. Cleland, and Mr. 
        Lieberman):
  S. 1792. A bill to further facilitate service for the United States, 
and for other purposes; to the Committee on Health, Labor, and 
Pensions.
  Mr. McCAIN. Madam President, today, Senator Bayh and I are 
introducing legislation, the Call to Service Act of 2001, that will 
expand opportunities for Americans to serve our nation. Congressmen 
Ford of Tennessee and Congressman Osborne of Nebraska are offering 
companion legislation in the House, and I want to thank them for their 
strong, bipartisan leadership in the face of America's new challenge at 
home and overseas.
  All of us welcome the support of America's Promise, Teach for 
America, AmeriCorps Alums, City Year, the National Association of 
Service and Conservation Corps, the Naval Reserve Association, the 
Reserve Officers Association, the American Legion, and many other 
groups dedicated to service to our nation.
  Our legislation is not a Democratic or Republican initiative. Duty, 
honor, and country are values that transcend party or ideology. This is 
a uniquely American moment in which a crisis becomes an opportunity to 
harness our unity and channel is into what historian Stephen Ambrose 
describes as ``common-patriotism.''
  In the aftermath of September 11, the American people have 
demonstrated, through their courage and generosity, that they are 
prepared to meet the challenge that confronts our Nation. Yet, our 
fellow citizens ask how they can do more for their country. That is why 
we should act to provide more opportunities for public service.
  Forty years ago, at the height of the cold war, President John F. 
Kennedy issued his famous call for service, ``Ask not what your country 
can do for you, but rather what you can do for your country.'' His 
clarion challenge inspired millions of Americans to enter into public 
service. President Kennedy created both the civilian Peace Corps and 
the Green Berets as avenues to serve.
  Now, we are confronted with a new challenge.
  In this battle against terror, there are both foreign and domestic 
fronts. The heroic sacrifices of the New York City firefighters and 
police have truly moved the public. Thousands of men and women in 
uniform are now in harms way to defend our liberty and freedom.
  The American people are also ready to serve at home. Walk down any 
street and you will see a blizzard of American flags. Over a billion 
dollars have been contributed to the victims of the terrorist attacks. 
We should seize this moment and issue a new call to service. There will 
be many tasks ahead, both new and old. On the home front, there are new 
security and civil defense needs. The military will also require new 
recruits to confront the challenges abroad and within our borders. And, 
of course, there are many other ongoing service opportunities ranging 
from combating illiteracy to helping children and our elderly.
  A major component of our legislation would be to expand AmeriCorps. 
Since it was created, more than 200,000 Americans have served one-to-
two year stints in AmeriCorps, tutoring children, building low-income 
housing or helping flood-ravaged communities. AmeriCorps achievements 
are impressive: thousands of homes constructed; hundreds of thousands 
of seniors assisted to live independently in their own homes; millions 
of children taught, tutored, and mentored. The program receives broad 
bipartisan support, with 49 of the Nation's 50 Governors signing a 
letter last year urging Congress to support AmeriCorps.
  But for all its concrete achievements, AmeriCorps has a fundamental 
flaw: In its seven years of existence it has barely stirred the 
Nation's imagination. Two out of every three Americans say that they 
have never heard of the program. We seek not only to expand the 
program, but also make certain that it has national objectives. We also 
charge the program with the task of assembling a plan to assist the new 
needs in the area of Homeland Defense.
  We must also ask our Nation's colleges to step up to the plate and 
more aggressively promote service. Currently, only a small fraction of 
college work-study funds are devoted to community service, far less 
than what Congress originally intended when it passed the Higher 
Education Act of 1965. Our legislation requires universities to being 
truly complying with the intent of the act to promote student 
involvement in community activities.
  We should also be concerned by the growing gap between our nation's 
military and civilian cultures. While the volunteer military has been 
successful, fewer Americans know first-hand the sacrifices and 
contributions of their fellow citizens who serve in uniform.
  There are also many civil defense needs that must be met to defend 
our Nation against terrorists attacks and having a shorter-term 
enlistment option will help provide the manpower to defend the security 
of our Nation. An October 15 article in the Los Angeles Times described 
``the sheer size of the task of protecting targets'' within our 
borders. And a recent Newsweek cover story, ``Protecting America: What 
Must Be Done,'' cited a long list of potential terrorist targets, 
including nuclear power plants, seaports, dams, chemical plants, 
airports, water supplies, and government buildings across the United 
States.
  To bolster our preparedness against terrorist attack, our legislation 
allows that Defense Department to create a new short-term enlistment to 
encouraging more young Americans to serve in the military. This new 18-
18-18-enlistment option would provide an $18,000 post-service award for 
18-months of active duty and 18 months of reserve duty.
  Our legislation also significantly improves the benefits of the 
Montgomery GI bill by doubling the annual education benefit from $7,800 
to $15,600 and

[[Page 24599]]

by encouraging service-members to participate in the program through 
the elimination of the current 10-year requirement from use of the GI 
Bill educational benefits.
  Our legislation also ensures maximum accessibility to colleges and 
high schools by military service recruiters. We close loopholes in 
current recruiting access statutes, especially where colleges may be 
allowing access but not providing, in the spirit of the law, full 
access to recruiters in terms of both information they require and 
reasonable physical presence.
  Finally, our legislation establishes a 9-member Commission on 
Military Recruitment and National Service to be appointed by the 
Secretary of Defense and Secretary of State to examine such things as 
ways to shrink the civilian-military gap and develop ways to bring in a 
larger, broader pool of recruits.
  As a country, we should strive to make national service a rite of 
passage for young Americans. Not only will our Nation benefit, but 
those whose serve will find their lives transformed. They will be able 
to glimpse the glory of serving a cause greater than their self-
interest. They will come to know both the obligations and rewards of 
active citizenship. Over the past few years, we have celebrated the 
achievements of the Greatest Generation. Now a new generation is 
confronted with a challenge to defend our great nation. Let us seize 
the moment and provide Americans with the opportunity to serve our 
great nation.
  Mr. BAYH. Madam President, I rise today with my colleague Senator 
John McCain to introduce the Call to Service Act of 2001. I want to 
express my appreciation to Senator McCain; without his leadership we 
would not be here today. I also want to extend my thanks to Congressman 
Harold Ford and Congressman Tom Osborne for their strong leadership in 
the House on this issue.
  In addition, former President Clinton deserves our thanks and 
gratitude. He championed public service and AmeriCorps during his 
tenure. We build upon his legacy today and acknowledge with pride the 
important contribution to America's well-being he has made in this 
area.
  We are introducing this legislation at a time of great challenge for 
our country. But within this challenge lie the seeds of opportunity if 
we can seize the moment, the seeds of opportunity for civic renewal 
across the United States of America.
  Everywhere I have gone since the tragedy of September 11, people of 
every age are asking, What can I do? How can I help? So to those who 
are looking for a way to help to put something back, we are here today 
to say that the Call to Service Act will give you those opportunities.
  We expand the AmeriCorps program fully fivefold, increasing the 
number of volunteers annually, from 50,000 to 250,000, so that every 4 
years, 1 million young people will have the opportunity to serve our 
country. Fifty percent of the new volunteers will be focused on 
homeland defense to meet the many issues that have come to light and 
need attention since the events of September 11. With this dramatic 
expansion, we include strong accountability measures to ensure 
measurable, positive outcomes for the communities served by AmeriCorps.
  The Call to Service Act significantly expands the serve study 
initiative. Work-study in our colleges was originally intended to get 
kids involved in public service and community work, but unfortunately, 
it has not lived up to that initial promise. The requirement today is 
that 7 percent of students involved in work-study have to be involved 
in community service. We expand that more than threefold to 25 percent, 
to get America's best and brightest giving back to the community. This 
means that every year, approximately 250,000 students will be 
contributing to their communities. Expanding the community service 
portion of work-study has broad bipartisan support. In May 2000, 
General Powell sent a letter to the Nation's college presidents to 
``work toward a goal of dedicating a greater and greater portion of 
your Federal College Work Study funds each year to community service.''
  We expand Senior Corps to ensure that more senior citizens can help 
their community. We are living long and we are living healthier. Our 
seniors have a lot of experience and a lot to contribute to our 
country. We propose lifting the age and income requirements for the 
three Senior Corps programs to enable more seniors to serve.
  The Call to Service Act also seeks to expand opportunities to serve 
in the military. Military service used to be a common experience and 
therefore a common bond. We would like to see more young Americans 
enlist and serve their country through the military. This legislation 
takes important steps in this direction. We create a new enlistment 
track for the military, the ``18-18-18 plan.'' Under this plan, a 
person could serve 18 months in active duty, and 18 months in the 
military reserve service and receive a $18,000 bonus payment which can 
be used for educational purposes, in addition to regular pay, at the 
end of his or her service. Our plan also significantly improves 
benefits under the Montgomery G.I. Bill by doubling the educational 
award and encouraging more service members to utilize these benefits.
  All over the world, expectant and hopeful eyes are turned to our 
nation. Many are asking, does this generation of Americans have the 
willingness to sacrifice even for a moment, even for a part of the ease 
and comfort that we have been accustomed to for these last several 
decades, to defend the values that we cherish? I believe that the 
answer to that will be a resounding yes, and this initiative will give 
people, young and old, an opportunity to prove that this generation of 
Americans is a worthy successor to those who have gone before.
  This bill is consistent with the most basic principles of our 
democracy. Perhaps the most famous call to public service was John F. 
Kennedy's words in his inaugural address, when he said, ``Ask not.'' 
But it goes back a long way before that. It was Thomas Jefferson who 
chose for his headstone to be remembered for his authorship of the 
Declaration of Independence, his authorship of the law guaranteeing 
religious liberty to the people of Virginia, and his founding of the 
University of Virginia.
  He was asked by a friend when he showed his proposed words to him, he 
said, ``Mr. Jefferson, you don't mention the fact that you were 
president. You don't mention the fact that you were vice president, 
ambassador to Paris, or secretary of state. How can you leave these 
things off?'' To which Jefferson replied, ``My friend, I would much 
prefer to be remembered for what I have been privileged to do for 
others, than what others have so kindly done for me.'' It is in that 
spirit that we offer this legislation and call upon this generation of 
Americans to serve.
  I ask unanimous consent that this letter be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                America's Promise,


                                       The Alliance For Youth,

                                     Alexandria, VA, May 30, 2000.
       Dear Friend: President Clinton has written you and I join 
     him in enlisting your support in a very important endeavor--
     the well being of our Nation's young people.
       Three years ago at the Presidents' Summit for America's 
     Future held in Philadelphia, all the living Presidents of the 
     United States and thousands of other national leaders pledged 
     to harness the power of volunteerism in the service of our 
     Nation's most important resource, our youth. The organization 
     I chair, America's Promise. The Alliance for Youth, was born 
     at the 1997 Presidents' Summit, and it continues today 
     mobilizing communities, individuals, organizations, and 
     institutions to make five key promises to every youngster: an 
     ongoing relationship with a caring adult--parent, mentor, 
     tutor or coach; safe places and structured activities during 
     non-school hours; a healthy start; a marketable skill through 
     effective education; and an opportunity to give back through 
     community service.
       Colleges and universities can play a crucial role in this 
     movement. Actually, many have already enlisted in our crusade 
     by becoming Colleges and Universities of Promise. With that 
     pledge they make a commitment to keep the Five Promises to 
     young people in their communities.
       One very substantial way you can contribute is by using the 
     Federal College Work

[[Page 24600]]

     Study Program to enable hundreds of thousands of college 
     students to serve in the communities where they study. By 
     being tutors or mentors, or by working with local schools and 
     youth-service organizations, college students can make a 
     tangible difference in the lives of young children. I can 
     attest that there are thousands more nonprofit organizations 
     and community groups serving young children and youth that 
     would benefit profoundly from the energy and idealism of your 
     students.
       In that spirit, President Clinton is asking you to commit a 
     greater share of your work study assignments to community 
     service. I second the President's request and encourage you 
     to work toward a goal of dedicating a greater and greater 
     portion of your Federal College Work Study funds each year to 
     community service. Institutions of higher learning have 
     always been leaders in the life of our nation. I hope you 
     will seize this opportunity to demonstrate that leadership 
     again.
       Please join in this effort. Help us to keep America's 
     Promise. Thank you and best wishes.
           Sincerely,
                                  Gen. Colin L. Powell, USA (Ret),
                                                         Chairman.
                                 ______
                                 
      By Mr. CLELAND:
  S. 1794. A bill to amend title 49, United States Code, to prohibit 
the unauthorized circumvention of airport security systems and 
procedures; to the Committee on Commerce, Science, and Transportation.
  Mr. CLELAND. Madam President, I rise today to introduce legislation 
that will make it a Federal criminal offense to intentionally 
circumvent an airport security checkpoint. This morning I chaired the 
first Senate Commerce Committee hearing on aviation security since the 
landmark aviation security bill was signed into law earlier this fall. 
That historic piece of legislation was enacted as a response to the 
events of September 11, when terrorists commandeered U.S. commercial 
jets filled with passengers and used them as weapons of mass 
destruction.
  Those terrorist attacks have precipitated a sea-change in attitude on 
how we view our homeland security. There is no such thing as ``business 
as usual,'' especially at our airports across this country. Immediately 
after the events of 9-11, the Federal Aviation Administration and U.S. 
Department of Transportation took steps to tighten aviation security 
across the country. U.S. airlines and airports put in place additional 
security safeguards. And Congress passed the most sweeping aviation 
security bill in history.
  Under the new law, every commercial airport will now have a Federal 
security manager and the manager will conduct an immediate assessment 
of safety procedures at the busiest airports in the country. We will 
have strict and uniform national standards for the hiring and training 
and job performance of the men and women who are on the front lines of 
ensuring that our airports and airplanes are not only the safest in the 
world, but are also the most secure. Because of this legislation, every 
airport screener must now be a U.S. citizen. He or she must pass a 
criminal background check, and they must perform well in their job. If 
they don't, and this includes federal screeners, they can and will be 
fired immediately. Cockpit doors will be fortified, the number of air 
marshals on airplanes will be significantly increased, and 
international flights must provide the U.S. Customs Service with 
passenger lists before they can land in this country.
  Hartsfield Atlanta International Airport, the world's busiest 
airport, Delta, with its world headquarters in Atlanta, and AirTran are 
key not just to Georgia's economy, but to our national aviation system 
as well. At the Commerce Committee hearing this morning, Spokespersons 
from each of these Georgia giants, told us about the security measures 
that have been put in place since the September 11 hijackings and what 
further steps they plan to take in light of the requirements of the new 
aviation security law.
  At the hearing, Hartsfield's General Manager, Mr. Benjamin DeCosta, 
addressed the incident of November 16 when an individual breached 
security at the Atlanta airport. The security breach triggered the 
total evacuation of Hartsfield and a temporary halt of incoming and 
outgoing air traffic. That action caused a ripple effect of delays and 
flight cancellations. I might add that I have firsthand knowledge of 
those delays, since I spent some ``quality time'' on the tarmac in 
Atlanta that day. But I want to stress that despite those delays, the 
system worked. Hartsfield correctly followed the FAA directive, put in 
place after September 11, that required airport lock-down until airport 
security could be assured.
  However, the November incident revealed a glaring loophole in the 
system, even after enactment of the new airline security legislation. 
Currently, an intentional security violation aboard an aircraft is a 
Federal crime, but a willful breach of an airport security checkpoint 
is punishable only by local criminal penalties and federal civil 
penalties. Just as we have at last stepped up to the plate to assure 
greater uniformity and greater accountability through federalizing the 
airport security workforce, I believe it is the responsibility of 
Congress to address this shortcoming in our federal laws. Accordingly, 
I am introducing legislation, the Airport Checkpoint Enhancement, or 
ACE, Act, to make willful violations of airport security checkpoints a 
federal crime. We should send a message loud and clear that airport 
business is serious business, that if you come to a U.S. airport for 
mischief or for folly, you will pay the consequences.
  My legislation addresses the all-important issue of aviation security 
which, as we have recently learned in the most painful way possible, is 
a matter of national security. Specifically, the ACE Act will amend the 
recently-passed Aviation and Transportation Security Act to provide a 
federal criminal penalty for individuals who intentionally circumvent 
or breach an airport security checkpoint. It was amazing to me to learn 
that in Georgia, an individual who willfully violates the secure area 
of an airport is only subject to a misdemeanor which means a maximum 
penalty involving a civil fine up to $1,100 and a year in jail. My 
legislation will mean that violators could face up to 10 years in 
prison. This legislation is supported by Atlanta's Hartsfield 
International Airport, Delta Airlines, the Air Carrier Association of 
America, and the Office of the Solicitor General, Clayton County, GA. 
We have only just begun to improve airport security and therefore, I 
look forward to continuing this discussion with airport officials and 
law enforcement officers across the country on how we can best protect 
passengers, airport workers, and air travel in the future.
  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. 1794

       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 ``Airport Checkpoint 
     Enhancement Act''.

     SEC. 2. PROHIBITION ON UNAUTHORIZED CIRCUMVENTION OF AIRPORT 
                   SECURITY SYSTEMS AND PROCEDURES.

       (a) Prohibition.--Section 46503 of title 49, United States 
     Code, as added by section 114 of the Aviation and 
     Transportation Security Act (Public Law 107-71), is amended--
       (1) by inserting ``(a) Interference With Security Screening 
     Personnel.--'' before ``An individual''; and
       (2) by adding at the end the following new subsection:
       ``(b) Unauthorized Circumvention of Security Systems and 
     Procedures.--An individual in an area within a commercial 
     service airport in the United States who intentionally 
     circumvents, in an unauthorized manner, a security system or 
     procedure in the airport shall be fined under title 18, 
     imprisoned for not more than 10 years, or both.''.
       (b) Conforming and Clerical Amendments.--(1) The section 
     heading of that section is amended to read as follows:

     ``Sec. 46503. Interference with security screening personnel; 
       unauthorized circumvention of security systems or 
       procedures''.

       (2) The item relating to that section in the table of 
     sections at the beginning of chapter 465 of that title is 
     amended to read as follows:

``46503. Interference with security screening personnel; unauthorized 
              circumvention of security systems or procedures.''.




                          ____________________