[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Senate]
[Pages 26282-26286]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. FEINSTEIN (for herself, Mr. Hollings, and Mrs. Boxer):
  S. 1829. A bill to provide for transitional employment eligibility 
for qualified lawful permanent resident alien airport security 
screeners until their naturalization process is completed, and to 
expedite that process; to the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce the Airport 
Security Personnel Protection Act. This legislation would expedite the 
naturalization process and authorize transitional employment for the 
many deserving airport security screeners who are in danger of losing 
their jobs as a result of a provision in the recently enacted Aviation 
Transaction Security Act.
  In providing this assistance to these worthy individuals, the bill 
also will provide relief for the airports in which they work and the 
many customers whom they serve.
  On November 19, 2001, President Bush signed the Aviation 
Transportation Security Act, P.L. 107-71, into law. The measure was 
passed with overwhelming support in both chambers. Among its many 
essential provisions was one, found in section 111(a) of the bill, that 
requires all airport security screeners to be United States citizens.
  Some expressed disagreement with the citizenship requirement while 
the bill was pending but voted for the bill, nonetheless, because of 
the many positive and essential provisions that the bill contained. 
Others supported the citizenship requirement as a necessary step to 
ensure the safety of our aviation system.
  Regardless of how Senators and House Members feel about the merits of 
the provision, we cannot help but be touched by one of its unfortunate 
consequences. Because of the contentious manner in which differing 
provisions in the House and Senate bills were resolved, we were unable 
to provide adequate transition provisions for the many well-qualified, 
hard-working, loyal, and deserving lawful permanent residents who are 
on the verge of attaining U.S. citizenship but who will not be able to 
complete that process before they lose their jobs.
  My legislation would resolve their situation in two ways: First, it 
would require the Attorney General to expedite the naturalization 
process for those applicants who were employed as airport security 
screeners at the time of enactment of the Aviation Transportation 
Security Act.
  Second, it would carve out a transition period during which qualified 
lawful permanent residents could continue their employment as security 
screeners while their naturalization applications are being 
adjudicated.
  The ``Airport Security Personnel Protection Act'' would provide for a 
smoother transition for qualified lawful permanent resident airport 
security screeners who are on the verge of completing the 
naturalization process. In so doing, it also would preserve both the 
integrity of the naturalization process and the strong requirements for 
security screeners that are contained in the Aviation Transportation 
Security Act.
  Section 4(c) of the legislation specifically precludes the weakening 
of standards for naturalization for these screeners. It makes it clear 
that the legislation merely requires the Attorney General to expedite 
the processing of the naturalization applications of qualified airport 
security screeners.
  Under current law, these standards include such requirements as five 
years of lawful permanent residence for most of those naturalizing, a 
demonstration of good moral character, an understanding of the English 
language, and an understanding of the history, principles, and form of 
government of the United States.
  The legislation also makes it clear that the Standards for continuing 
in employment during this transition period are to be the same, strong 
standards that are included in the recently enacted Aviation 
Transportation Security Act.
  Under this bill, in order to continue in employment during the 
transition period, an affected security screener would have to: be a 
lawful permanent resident alien; have been employed as a security 
screener on the date of enactment of the Act; meet the employment 
eligibility requirements under the Airport Security Screeners Act; have 
undergone and successfully completed an employment investigation 
(including a criminal history record check); have had a naturalization 
application pending on the date of enactment of the Act or, in the 
alternative, have to be within one year of being eligible to file an 
application for naturalization; and be approved by the U.S. Department 
of Transportation for hiring or continued employment.
  Just as importantly, in order to remain employed during this 
transition period, an alien would have to meet the new, enhanced 
requirements of security screeners that were enacted as part of the 
Aviation Transportation Security Act. These new, enhanced requirements 
provide that the alien would have to: have a satisfactory or better 
score on a Federal security screening personnel selection examination; 
demonstrate daily a fitness for duty without any impairment due to 
illegal drugs, sleep deprivation, medication, or alcohol; undergo an 
employment investigation, including a criminal history record check; 
not present a threat to national security; possess a high school 
diploma, a general equivalency diploma, or experience that the Under 
Secretary has determined to be sufficient for the individual to perform 
the duties of the position; possess the ability to efficiently and 
thoroughly manipulate and handle such baggage, containers, and other 
objects subject to security processing; be able to read, speak, and 
write English well enough to carry out written and oral instructions 
regarding the proper performance of screening duties; be able to read 
English language identification media, credentials, airline tickets, 
and labels on items normally encountered in the screening process; 
provide direction to and understand and answer questions from English-
speaking individuals undergoing screening; and write incident reports 
and statements and log entries into security records in the English

[[Page 26283]]

language; have satisfactorily completed all initial, recurrent, and 
appropriate specialized training required by the security program; 
among other requirements.
  This simple but important bill would help the many deserving lawful 
permanent residents who are well qualified, have been performing their 
jobs admirably, and whose lives are in danger of being disrupted. But 
it also would help the traveling public.
  It is estimated that at least 25 percent of the current 28,000 
airport security screeners in the Nation's 419 commercial airports are 
noncitizens. I have heard from the mayor and airport director of the 
San Francisco International Airport. They came to me out of concern 
that, as a result of the new citizenship requirements under the 
Aviation and Transportation Security Act, the airport stands to lose 70 
to 80 percent of its screening personnel. In Los Angeles, about 40 
percent of the baggage screeners are noncitizens.
  Certainly, not all of these noncitizens will be able to meet the 
stringent requirements of this legislation. But to the extent that 
those who are well-qualified are permitted to continue their employment 
while their naturalization applications are being adjudicated, it will 
be a great help to the many airports in which they are employed.
  I urge my colleagues to move expeditiously to enact this bill into 
law. 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. 1829

       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 Security Personnel 
     Protection Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Airport security screener.--The term ``airport security 
     screener'' means an individual who is employed to perform 
     security screening services at an airport in the United 
     States.
       (2) Lawful permanent resident alien.--The term ``lawful 
     permanent resident alien'' means an alien lawfully admitted 
     for permanent residence, as defined in section 101(a)(20) of 
     the Immigration and Nationality Act (8 U.S.C. 1101(a)(20)).
       (3) Qualified lawful permanent resident alien defined.--The 
     term ``qualified lawful permanent resident alien'' means an 
     alien with respect to whom a certification has been made by 
     the Under Secretary of Transportation for Security under 
     section 111(e)(1)(B) of the Aviation and Transportation 
     Security Act (Public Law 107-71), as added by section 3 of 
     this Act.

     SEC. 3. TRANSITIONAL EMPLOYMENT ELIGIBILITY FOR QUALIFIED 
                   LAWFUL PERMANENT RESIDENT AIRPORT SECURITY 
                   SCREENERS.

       (a) In General.--Section 111 of the Aviation and 
     Transportation Security Act (Public Law 107-71) is amended by 
     adding at the end the following:
       ``(e) Special Transition Rule for Qualified Lawful 
     Permanent Resident Aliens.--
       ``(1) In general.--Notwithstanding any rule or regulation 
     promulgated to implement the citizenship requirement in 
     section 44935(e)(2)(A)(ii) of title 49, United States Code, 
     as amended by subsection (a), or any other provision of law 
     prohibiting the employment of aliens by the Federal 
     Government, an alien shall be eligible for hiring or 
     continued employment as an airport security screener until 
     the naturalization process for such alien is completed, if--
       ``(A) the Attorney General makes the certification 
     described in paragraph (2) to the Under Secretary of 
     Transportation for Security with respect to the alien; and
       ``(B) the Under Secretary of Transportation for Security 
     makes the certification described in paragraph (3) to the 
     Attorney General with respect to such alien.
       ``(2) Certification by the attorney general.--A 
     certification under this paragraph is a certification by the 
     Attorney General, upon the request of the Under Secretary of 
     Transportation for Security, with respect to an alien 
     described in paragraph (1) that--
       ``(A) the alien is a lawful permanent resident alien (as 
     defined in section 2 of the ``Airport Security Personnel 
     Protection Act); and
       ``(B)(i) an application for naturalization has been 
     approved, and the alien is awaiting the holding of a ceremony 
     for the administration of the oath of renunciation and 
     allegiance, as required by section 337 of the Immigration and 
     Nationality Act (8 U.S.C. 1448);
       ``(ii) an application for naturalization filed by the alien 
     prior to the date of enactment of this Act is pending before 
     the Immigration and Naturalization Service but has not been 
     finally adjudicated; or
       ``(iii) the alien--
       ``(I) satisfies, or will satisfy within one year of the 
     date of certification if the alien remains in the United 
     States, the residence requirements applicable to the alien in 
     the Immigration and Nationality Act, or any other Act that 
     are necessary for eligibility for naturalization; and
       ``(II) not more than 180 days after the date of enactment 
     of the Airport Security Personnel Protection Act, filed under 
     section 334(f) of the Immigration and Nationality Act an 
     application for a declaration of intention to become a United 
     States citizen.
       ``(3) Certification by the under secretary of 
     transportation.--A certification under this paragraph is a 
     certification by the Under Secretary of Transportation for 
     Security with respect to an alien described in paragraph (1) 
     that--
       ``(A) the Under Secretary has decided to hire or continue 
     the employment of such alien; and
       ``(B) the alien--
       ``(i) meets the qualifications to be a security screener 
     under section 44935(f);
       ``(ii) was employed as an airport security screener as of 
     the date of enactment of this Act, as determined by the Under 
     Secretary of Transportation for Security; and
       ``(iii) has undergone and successfully completed an 
     employment investigation (including a criminal history record 
     check) required by section 44935(e)(2)(B) of such title, as 
     amended by subsection (a).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be deemed effective as if included in the enactment of 
     the Aviation and Transportation Security Act.

     SEC. 4. EXPEDITED NATURALIZATION FOR QUALIFIED LAWFUL 
                   PERMANENT RESIDENT AIRPORT SECURITY SCREENERS.

       (a) Requirement.--
       (1) In general.--For the purpose of enabling qualified 
     lawful permanent resident aliens to satisfy in a timely 
     manner the citizenship requirement in section 
     44935(e)(2)(A)(ii) of title 49, United States Code, the 
     Attorney General shall expedite--
       (A) the processing and adjudication of an application for 
     naturalization filed by any qualified lawful permanent 
     resident alien who was employed as an airport security 
     screener as of the date of enactment of the Aviation and 
     Transportation Security Act (Public Law 107-71); and
       (B) if such application for naturalization is approved, the 
     holding of a ceremony for administration of the oath of 
     renunciation and allegiance to such qualified lawful 
     permanent resident alien, as required by section 337 of the 
     Immigration and Nationality Act (8 U.S.C. 1448).
       (b) Deadlines for Completed Action.--The Attorney General 
     shall complete the actions described in subsection (a)--
       (1) not later than 30 days after the date of enactment of 
     this Act, in the case of a qualified lawful permanent 
     resident alien with respect to whom an application for 
     naturalization is approved but such alien is awaiting the 
     holding of a ceremony for the administration of the oath of 
     renunciation and allegiance, as required by section 337 of 
     the Immigration and Nationality Act (8 U.S.C. 1448);
       (2) not later than 180 days after the date of enactment of 
     this Act, in the case of a qualified lawful permanent 
     resident alien with respect to whom an application for 
     naturalization was pending on the date of enactment of this 
     Act; and
       (3) not later than 180 days after the date on which an 
     application for naturalization is received by the Attorney 
     General, in the case of a qualified lawful permanent resident 
     alien with respect to whom an application for naturalization 
     is filed after the date of enactment of this Act.
       (c) Statutory Construction.--Nothing in this section may be 
     construed to lower the standards of qualification set forth 
     in title III of the Immigration and Nationality Act (8 U.S.C. 
     1401 et seq.) that applicants for naturalization must meet in 
     order to become naturalized citizens of the United States.
                                 ______
                                 
      By Mr. DeWINE:
  S. 1830. A bill to amend sections 3, 4, and 5 of the National Child 
Protection Act of 1993, relating to national criminal history 
background checks of providers of care to children, elderly persons, 
and persons with disabilities, and for other purposes; to the Committee 
on the Judiciary.
  Mr. DeWINE. 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. 1830

       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 ``National Child Protection 
     Amendments Act of 2001''.

[[Page 26284]]



     SEC. 2. FACILITATION OF BACKGROUND CHECKS.

       (a) In General.--Section 3 of the National Child Protection 
     Act of 1993 (42 U.S.C. 5119a) is amended to read as follows:

     ``SEC. 3. FACILITATION OF BACKGROUND CHECKS.

       ``(a) In General.--
       ``(1) Background checks.--
       ``(A) In general.--A qualified entity designated by a State 
     may contact an authorized agency of the State to obtain a 
     fingerprint-based national criminal history background check 
     (referred to in this section as a `background check') of a 
     provider who provides care to children, the elderly, or 
     individuals with disabilities (referred to in this section as 
     a `provider').
       ``(B) Definition.--In this paragraph, the term 
     `fingerprint-based' means based upon fingerprints or other 
     biometric identification characteristics approved under rules 
     applicable to the Interstate Identification Index System as 
     defined in Article I (13) of the National Crime Prevention 
     and Privacy Compact.
       ``(2) Procedures.--
       ``(A) Submission.--A request for background check pursuant 
     to this section shall be submitted through a State criminal 
     history record repository.
       ``(B) Duties of repository.--After receipt of a request 
     under subparagraph (A), the State criminal history record 
     repository shall--
       ``(i) conduct a search of the State criminal history record 
     system and, if necessary, forward the request, together with 
     the fingerprints of the provider, to the Federal Bureau of 
     Investigation; and
       ``(ii) make a reasonable effort to respond to the qualified 
     entity within 15 business days after the date on which the 
     request is received.
       ``(C) Duties of the fbi.--Upon receiving a request from a 
     State repository under this section, the FBI shall--
       ``(i) conduct a search of its criminal history record 
     system; and
       ``(ii) make a reasonable effort to respond to the State 
     repository or the qualified entity within 5 business days 
     after the date on which the request is received.
       ``(3) National crime prevention and privacy compact.--Each 
     background check pursuant to this section shall be conducted 
     pursuant to the National Crime Prevention and Privacy 
     Compact.
       ``(b) Guidelines.--
       ``(1) In general.--In order to conduct background checks 
     pursuant to this section, a State shall--
       ``(A) establish or designate one or more authorized 
     agencies to perform the duties required by this section, 
     including the designation of qualified entities; and
       ``(B) establish procedures requiring that--
       ``(i) a qualified entity that requests a background check 
     pursuant to this section shall forward to the authorized 
     agency the fingerprints of the provider and shall obtain a 
     statement completed and signed by the provider that--

       ``(I) sets out the name, address, and date of birth of the 
     provider appearing on a valid identification document (as 
     defined in section 1028 of title 18, United States Code);
       ``(II) states whether the provider has a criminal history 
     record and, if so, sets out the particulars of such record;
       ``(III) notifies the provider that the qualified entity may 
     request a background check and that the signature of the 
     provider to the statement constitutes an acknowledgement that 
     such a background check may be conducted and explains the 
     uses and disclosures that may be made of the results of the 
     background check;
       ``(IV) notifies the provider that pending the completion of 
     the background check the provider may be denied unsupervised 
     access to children, the elderly, or disabled persons with 
     respect to which the provider intends to provide care; and
       ``(V) notifies the provider of the rights of the provider 
     under subparagraph (B);

       ``(ii) each provider who is the subject of an adverse 
     fitness determination based on a background check pursuant to 
     this section shall be provided with an opportunity to contact 
     the authorized agency and initiate a process to--

       ``(I) obtain a copy of the criminal history record upon 
     which the determination was based; and
       ``(II) file a challenge with the State repository or, if 
     appropriate, the FBI, concerning the accuracy and 
     completeness of the criminal history record information in 
     the report, and obtain a prompt determination of the 
     challenge before a final adverse fitness determination is 
     made on the basis of the criminal history record information 
     in the report;

       ``(iii) an authorized agency that receives a criminal 
     history record report that lacks disposition information 
     shall make appropriate inquiries to available State and local 
     recordkeeping systems to obtain complete information, to the 
     extent possible considering available personnel and 
     resources;
       ``(iv) an authorized agency that receives the results of a 
     background check conducted under this section shall either--

       ``(I) make a determination regarding whether the criminal 
     history record information received in response to the 
     background check indicates that the provider has a criminal 
     history record that renders the provider unfit to provide 
     care to children, the elderly, or individuals with 
     disabilities and convey that determination to the qualified 
     entity; or
       ``(II) provide some or all of such criminal history record 
     information to the qualified entity for use by the qualified 
     entity in making a fitness determination concerning the 
     provider; and

       ``(v) a qualified entity that receives criminal history 
     record information concerning a provider in response to a 
     background check pursuant to this section--

       ``(I) shall adhere to a standard of reasonable care 
     concerning the security and confidentiality of the 
     information and the privacy rights of the provider;
       ``(II) shall make a copy of the criminal history record 
     available, upon request, to the provider; and
       ``(III) shall not retain the criminal history record 
     information for any period longer than necessary for a final 
     fitness determination concerning the subject of the 
     information.

       ``(2) Retention of information.--The statement required 
     under paragraph (1)(B)(i)--
       ``(A) may be forwarded by the qualified entity to the 
     authorized agency or retained by the qualified entity; and
       ``(B) shall be retained by such agency or entity, as 
     appropriate, for not less than 1 year.
       ``(c) Guidance by the Attorney General.--The Attorney 
     General shall to the maximum extent practicable, encourage 
     the use of the best technology available in conducting 
     background checks pursuant to this section.
       ``(d) Guidance by the National Crime Prevention and Privacy 
     Compact Council.--
       ``(1) In general.--The Compact Council shall provide 
     guidance to States to ensure that national background checks 
     conducted under this section comply with the National Crime 
     Prevention and Privacy Compact and shall provide guidance to 
     authorized agencies to assist them in performing their duties 
     under this section.
       ``(2) Model fitness standards.--The guidance under 
     paragraph (1) shall include model fitness standards for 
     particular types of providers, which may be adopted 
     voluntarily by States for use by authorized agencies in 
     making fitness determinations.
       ``(3) NCPA care provider committee.--In providing the 
     guidance under paragraph (1), the Compact Council shall 
     create a permanent NCPA Care Provider Committee which shall 
     include, but not be limited to, representatives of national 
     organizations representing private nonprofit qualified 
     entities using volunteers to provide care to children, the 
     elderly, or individuals with disabilities.
       ``(4) Reports.--At least annually, the Compact Council 
     shall report to the President and Congress with regard to 
     national background checks of providers conducted pursuant to 
     the NCPA.
       ``(e) Penalty.--Any officer, employee, or authorized 
     representative of a qualified entity who knowingly and 
     willfully--
       ``(1) requests or obtains any criminal history record 
     information pursuant to this section under false pretenses; 
     or
       ``(2) uses criminal history record information for a 
     purpose not authorized by this section, shall be guilty of a 
     misdemeanor and fined not more than $5,000.
       ``(f) Limitations on Liability.--
       ``(1) Liability of qualified entities.--
       ``(A) Failure to request background check.--A qualified 
     entity shall not be liable in an action for damages solely 
     for the failure of such entity to request a background check 
     on a provider.
       ``(B) Willful violations.--A qualified entity shall not be 
     liable in an action for damages for violating any provision 
     of this section, unless such violation is knowing and 
     willful.
       ``(C) Reasonable care standard.--A qualified entity that 
     exercises reasonable care for the security, confidentiality, 
     and privacy of criminal history record information received 
     in response to a background check pursuant to this section 
     shall not be liable in an action for damages.
       ``(2) Liability of governmental entities.--A State or 
     political subdivision thereof, or any agency, officer, or 
     employee thereof, shall not be liable in an action for 
     damages for the failure of a qualified entity (other than 
     itself) to take adverse action with respect to a provider who 
     was the subject of a background check.
       ``(3) Reliance on information.--An authorized agency or a 
     qualified entity that reasonably relies on criminal history 
     record information received in response to a background check 
     pursuant to this section shall not be liable in an action for 
     damages based upon the inaccuracy or incompleteness of the 
     information.
       ``(g) Fees.--
       ``(1) Limitation.--In the case of a background check 
     pursuant to a State requirement adopted after December 20, 
     1993, conducted with fingerprints on a person who volunteers 
     with a qualified entity, the fees collected by authorized 
     State agencies and the Federal Bureau of Investigation may 
     not

[[Page 26285]]

     exceed $18, respectively, or the actual cost, whichever is 
     less, of the background check conducted with fingerprints.
       ``(2) State fee systems.--The States shall establish fee 
     systems that ensure that fees to nonprofit entities for 
     background checks do not discourage volunteers from 
     participating in child care programs.
       ``(3) Authority of federal bureau of investigation.--This 
     subsection shall not effect the authority of the Federal 
     Bureau of Investigation or the States to collect fees for 
     conducting background checks of persons who are employed as 
     or apply for positions as paid care providers.''.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS; CONFORMING 
                   AMENDMENTS.

       (a) Funding for Improvement of Child Abuse Crime 
     Information.--Section 4 of the National Child Protection Act 
     of 1993 (42 U.S.C. 5119b) is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively; and
       (2) in subsection (a), as redesignated--
       (A) in paragraph (1)--
       (i) in each of subparagraphs (C) and (D), by striking 
     ``national criminal history background check system'' and 
     inserting ``criminal history record repository''; and
       (ii) by striking subparagraph (E) and inserting the 
     following:
       ``(E) to assist the State in offsetting the costs to 
     qualified entities of background checks under section 3 on 
     volunteer providers.''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Authorization of appropriations.--There are 
     authorized to be appropriated for grants under paragraph 
     (1)--
       ``(A) $80,000,000 for fiscal year 2001; and
       ``(B) such sums as may be necessary for each of fiscal 
     years 2002 through 2005.''.
       (b) Funding for Compact Council.--There are authorized to 
     be appropriated to the Federal Bureau of Investigation to 
     support the activities of the National Crime Prevention and 
     Privacy Compact Council--
       (1) $1,000,000 for fiscal year 2001; and
       (2) such sums as may be necessary for fiscal years 2002 
     through 2005.

     SEC. 4. DEFINITIONS.

       Section 5 of the National Child Protection Act of 1993 (42 
     U.S.C. 5119c) is amended--
       (1) by striking paragraph (8);
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively;
       (3) by inserting after paragraph (5) the following:
       ``(6) the term `criminal history record repository' means 
     the State agency designated by the Governor or other 
     executive official of a State, or by the legislature of a 
     State, to perform centralized recordkeeping functions for 
     criminal history records and services in the State;''; and
       (4) in paragraph (9)--
       (A) in subparagraph (A)(iii)--
       (i) by inserting ``or to an elderly person or person with a 
     disability'' after ``to a child''; and
       (ii) by striking ``child care'' and inserting ``care''; and
       (B) in subparagraph (B)(iii)--
       (i) by inserting ``or to an elderly person or person with a 
     disability'' after ``to a child''; and
       (ii) by striking ``child care'' and inserting ``care''.

     SEC. 5. AMENDMENT TO NATIONAL CRIMINAL HISTORY ACCESS AND 
                   CHILD PROTECTION ACT.

       Section 215 of the National Criminal History Access and 
     Child Protection Act is amended by--
       (1) striking subsection (b) and inserting the following:
       ``(b) Direct Access to Certain Records Not Affected.--
     Nothing in the Compact shall affect any direct terminal 
     access to the III System provided prior to the effective date 
     of the Compact under the following:
       ``(1) Section 9101 of title 5, United States Code.
       ``(2) The Brady Handgun Violence Prevention Act (Public Law 
     103-159; 107 Stat. 1536).
       ``(3) The Violent Crime Control and Law Enforcement Act of 
     1994 (Public Law 103-322; 108 Stat. 2074) or any amendments 
     made by that Act.
       ``(4) The United States Housing Act of 1937 (42 U.S.C. 1437 
     et seq.).
       ``(5) The Native American Housing Assistance and Self-
     Determination Act of 1996 (25 U.S.C. 4101 et seq.).
       ``(6) Any direct terminal access to Federal criminal 
     history records authorized by law.''; and
       (2) in subsection (c) by inserting after the period at the 
     end thereof the following: ``Criminal history records 
     disseminated by the FBI pursuant to such Act by means of the 
     III System shall be subject to the Compact.''.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Kerry):
  S. 1831. A bill to provide alternative minimum tax relief with 
respect to incentive stock options exercised during 2000; to the 
Committee on Finance.
  Mr. GRASSLEY. Mr. President, today Senator Kerry and I introduced 
bipartisan legislation that will provide some relief to those workers 
who are facing a massive tax bill on the phantom income they have from 
incentive stock options.
  Because it is important that my colleagues understand the unfairness 
of this matter, let me provide a very brief background.
  Incentive stock options ISO, are an option given by an employer to an 
employee to purchase stock at a certain price. An individual does not 
recognize any income on the grant of the option or exercise thereof if 
the individual holds the shares for more than 2 years after grant and 1 
year after exercise. If the holding period requirements are satisfied, 
the employee is taxed on the excess of the sale price over the exercise 
price on his disposition of the shares.
  The reason these employees have such a significant tax bill is due to 
the workings of the Tax Code's answer to Rube Goldberg, the Alternative 
Minimum Tax, AMT. The employee's nonrecognition of income discussed 
above does not apply for AMT purposes. For AMT purposes, the code 
requires the recognition of the excess for the stock's fair market 
value on the date of exercise over the option price when the stock is 
substantially vested. Thus, while an employee does not have a tax 
liability of ordinary income for exercising his ISO the employee may be 
subject to AMT when he exercises his ISO.
  While in years past, this may not have been too great a problem in a 
time when share prices are increasing and individuals have the money to 
pay the AMT. It is a very different story when shares are declining. 
The individual is then facing the AMT charges based on the exercise 
value but often has no funds to pay the AMT since the stock that was 
the source of the AMT has declined in value since it was exercised.
  It is true that if the individual had sold the stock in the same year 
he exercised his ISO he would have potentially reduced his AMT 
liability significantly. However, the code sends a mixed signal to the 
individual telling him that he must hold the stock for one year after 
exercise if he wants to avoid taxation at ordinary income on the value 
at the point of exercise.
  The above are the facts of the tax code, but they do not reflect the 
very real disaster this has done to many people across the country. The 
story of one company in Cedar Rapids, IA, McLeod USA, puts a real face 
on how this tax has destroyed families. I have received letters from 
dozens of honest hard-working people of this company telling me how 
they are making a good salary in Iowa, say $50,000 or $70,000, and were 
also given these ISOs as an additional incentive to work for McLeod. 
Now, because of the AMT rules and the declining market, these families 
are facing tax bills of tens of thousands, if not over a hundred 
thousand dollars. It is wiping out a lifetime of savings and hardwork, 
all to pay a tax bill on phantom income, income they never received, 
never enjoyed and never had. It is outrageous and it is just plain 
wrong.
  The bill that Senator Kerry and I have introduced will provide 
significant relief from the AMT tax bill for workers. It allows 
employees to determine the value of their stock options on April 15, 
2001, (as opposed to the exercise date), which will reflect the 
downturn of the market. This will go far in minimizing the AMT hit that 
employees face. In addition, the relief is targeted to assist low-
income and middle-income families.
  I hope my colleagues will join myself and Senator Kerry to put an end 
to this tax disaster.
  I ask unanimous consent 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. 1831

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

     SECTION 1. ALTERNATIVE MINIMUM TAX RELIEF WITH RESPECT TO 
                   INCENTIVE STOCK OPTIONS EXERCISED DURING 2000.

       (a) In General.--In the case of an incentive stock option 
     (as defined in section 422 of the Internal Revenue Code of 
     1986) exercised during calendar year 2000, the amount taken 
     into account under section 56(b)(3) of such

[[Page 26286]]

     Code by reason of such exercise shall not exceed the amount 
     that would have been taken into account if, on the date of 
     such exercise, the fair market value of the stock acquired 
     pursuant to such option had been its fair market value as of 
     April 15, 2001 (or, if such stock is sold or exchanged on or 
     before such date, the amount realized on such sale or 
     exchange).
       (b) Limitation.--
       (1) In general.--If the adjusted gross income of a taxpayer 
     for the taxable year in which an exercise described in 
     paragraph (1) occurs exceeds the threshold amount, the amount 
     otherwise not taken into account under paragraph (1) shall be 
     reduced by the amount which bears the same ratio to such 
     amount as the taxpayer's adjusted gross income in excess of 
     the threshold amount bears to the phaseout amount.
       (2) Threshold amount.--For purposes of this subsection, the 
     threshold amount is equal to--
       (A) $106,000 in the case of a taxpayer described in section 
     1(a) of such Code,
       (B) $84,270 in the case of a taxpayer described in section 
     1(b) of such Code, and
       (C) $53,000 in the case of a taxpayer described in section 
     1(c) or 1(d) of such Code.
       (3) Phaseout amount.--For purposes of this subsection, the 
     phaseout amount is equal to--
       (A) $230,000 in the case of a taxpayer described in section 
     1(a) of such Code,
       (B) $172,500 in the case of a taxpayer described in section 
     1(b) of such Code, and
       (C) $115,000 in the case of a taxpayer described in section 
     1(c) or 1(d) of such Code.
                                 ______
                                 
      By Mr. LEVIN:
  S. 1834. A bill for the relief of retired Sergeant First Class James 
D. Benoit and Wan Sook Benoit; to the Committee on the Judiciary.
  Mr. LEVIN. Mr. President, I rise today to introduce a bill that I 
hope will assist a family in my home State of Michigan who suffered the 
death of their child while living on a U.S. Army base in the Republic 
of Korea. Nearly 18 years ago, Mr. James Benoit and his wife Mrs. Wan 
Sook Benoit lost their three year old son, David Benoit, in a tragic 
mishap.
  Some years ago, Mr. and Mrs. Benoit approached my office with a 
request for assistance. The Benoit family felt that they did not 
receive the relief that they were entitled to receive. To assist the 
family, I introduced two private relief bills that sought to give the 
Benoit family a hearing before the U.S. Court of Federal Claims.
  This case was referred to U.S. Court of Federal Claims as the result 
of private relief legislation I introduced. The legislation, S. 1168, 
gave the Court of Federal Claims ``jurisdiction to hear, determine and 
render judgement on a claim by Retired Sergeant First Class James D. 
Benoit, Wan Sook Benoit, or the estate of David Benoit concerning the 
death of David Benoit on June 28th 1983. On March 14, 2000, oral 
arguments were heard by the hearing officer assigned to the case and 
the hearing officer recommended to the Court of Federal Claims on July 
28, 2000, ``that Sergeant and Mrs.. Benoit be awarded $415,000 for the 
wrongful death of David Benoit.'' Subsequently on May 23, 2001, the 
Court of Federal Claims Review Panel upheld the conclusion of the 
hearing officer, and found that the plaintiffs ``have a valid and 
equitable claim against the United States.'' It went on to state that 
``the Review Panel recommends that plaintiffs be awarded $415,000.''
  As a result of these findings, I am introducing special legislation 
to provide relief consistent with the court's recommendation. This 
legislation can in no way compensate the Benoit's for the horrible loss 
that they have suffered. No amount of money can do that. However, as 
the court has stated, the Benoit family does indeed ``have a valid and 
equitable claim.'' It is my hope that Congress will act expeditiously 
to resolve this claim.

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