[Congressional Record (Bound Edition), Volume 147 (2001), Part 4]
[Senate]
[Pages 4645-4667]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself, Mr. Brownback, Mr. Graham, and Mr. 
        Bingaman):
  S. 622. A bill to amend titles V, XVIII, and XIX of the Social 
Security Act to promote tobacco cessation under the medicare program, 
the medicaid program, and maternal and child health services block 
grant program; to the Committee on Finance.
  Mr. DURBIN. Mr. President, I rise today to introduce legislation that 
expands treatment to millions of Americans suffering from a deadly 
addiction: tobacco. I am pleased to have Senators Brownback, Bingaman, 
and Graham of Florida join me in this effort. The Medicare, Medicaid 
and MCH Smoking Cessation Promotion Act of 2001 will help make smoking 
cessation therapy accessible to recipients of Medicare, Medicaid, and 
the Maternal and Child Health, MCH, Program.
  We have long known that cigarette smoking is the largest preventable 
cause of death, accounting for 20 percent of all deaths in this 
country. It is well documented that smoking causes virtually all cases 
of lung cancer and a substantial portion of coronary heart disease, 
peripheral vascular disease, chronic obstructive lung disease, and 
cancers of other sites. And the harmful effects of smoking do not end 
with the smoker. Women who use tobacco during pregnancy are more likely 
to have adverse birth outcomes, including babies with low birth weight, 
which is linked with an increased risk of infant death and a variety of 
infant health disorders.
  Still, despite enormous health risks, 48 million adults in the United 
States smoke cigarettes, approximately 22.7 percent of American adults. 
The rates are higher for our youth, 36.4 percent report daily smoking. 
In Illinois, the adult smoking rate is about 24.2 percent. Perhaps most 
distressing and surprising, data indicate that about 13 percent of 
mothers in the United States smoke during pregnancy.
  Today, the Surgeon General released a new report that documents the 
health effects for women who smoke. Women now represent 39 percent of 
all smoking related deaths in the United States each year, more than 
double the percentage in 1965.
  More than 21 percent of women in my state of Illinois smoke. Lung 
cancer is the leading cancer killer among women surpassing breast 
cancer in 1987, and smoking causes 87 percent of lung cancer cases. In 
fact, lung cancer death rates among women increased by more than 400 
percent between 1960 and 1990. And smoking among girls is on the rise 
as well. From 1991 to 1999, smoking among high school girls increased 
from 27 to 34.9 percent.
  There is no doubt that smoking rates among women and girls are linked 
to targeted tobacco advertising. The Centers for Disease Control and 
Prevention's National Health Interview Survey showed an abrupt increase 
in smoking inititation among girls around 1967, about the same time 
that Philip Morris and other tobacco companies launched advertisements 
for brands specifically targeted at women and girls. Six years after 
the introduction of Virginia Slims and other such brands, the rate of 
smoking initiation of 12-year-old girls increased by 110 percent.
  The report released today echoes this concern, highlighting the 
targeting of women in tobacco marketing. Between 1995 and 1998, 
expenditures in the United States for cigarette advertising and 
promotion increased from $4.90 billion to $6.73 billion. In 1999, these 
promotional expenditures leaped another 22 percent, to a new high of 
$8.24 billion.
  As a result, we are not only paying a heavy health toll, but an 
economic price as well. The total cost of smoking in 1993 in the U.S. 
was about $102 billion, with over $50 billion in health care 
expenditures directly linked to smoking. The Centers for Disease 
Control and Prevention, CDC, reports that approximately 43 percent of 
these costs were paid by government funds, primarily Medicaid and 
Medicare. Smoking costs Medicaid alone more than $12.9 billion per 
year. According to the Chicago chapter of the American Lung 
Association, my state of Illinois spends $2.9 billion each year in 
public and private funds to combat smoking-related diseases.
  Today, however, we also know how to help smokers quit. Advancements 
in treating tobacco use and nicotine addiction have helped millions 
kick the habit. While more than 40 million adults continue to smoke, 
nearly as many persons are former smokers living longer, healthier 
lives. In large part, this is because new tools are available. 
Effective pharmacotherapy and counseling regimens have been tested and 
proven effective. The Surgeon General's 2000 Report, Reducing Tobacco 
Use, concluded that ``pharmacologic treatment of nicotine addiction, 
combined with behavioral support, will enable 10 to 25 percent of

[[Page 4646]]

users to remain abstinent at one year of posttreatment.''
  Studies have shown that reducing adult smoking through tobacco use 
treatment pays immediate dividends, both in terms of health 
improvements and cost savings. Creating a new nonsmoker reduces 
anticipated medical costs associated with acute myocardial infarction 
and stroke by $47 in the first year and by $853 during the next seven 
years in 1995 dollars. And within four to five years after tobacco 
cessation, quitters use fewer health care services than continued 
smokers. In fact, in one study the cost savings from reduced use paid 
for a moderately priced effective smoking cessation intervention in 
just three to four years.
  The health benefits tobacco quitters enjoy are undisputed. They live 
longer. After 15 years, the risk of premature death for ex-smokers 
returns to nearly the level of persons who have never smoked. Male 
smokers who quit between just the ages of 35 and 39 add an average of 
five years to their lives; women can add three years. Even older 
Americans over age 65 can extend their life expectancy by giving up 
cigarettes.
  Former smokers are also healthier. They are less likely to die of 
chronic lung diseases. After ten smoke-free years, their risk of lung 
cancer drops to as much as one-half that of those who continue to 
smoke. After five to fifteen years the risk of stroke and heart disease 
for ex-smokers returns to the level of those who have never smoked. 
They have fewer days of illness, reduced rates of bronchitis and 
pneumonia, and fewer health complaints.
  New Public Health Service Guidelines released last summer conclude 
that tobacco dependence treatments are both clinically effective and 
cost-effective relative to other medical and disease prevention 
interventions. The guidelines urge health care insurers and purchasers 
to include counseling and FDA-approved pharmacotherapeutic treatments 
as a covered benefit.
  Unfortunately, the federal government, a major purchaser of health 
care through Medicare and Medicaid, does not currently adhere to its 
own published guidelines. It is high time that government-sponsored 
health programs catch up with science. That is why we are introducing 
legislation to improve smoking cessation benefits in government-
sponsored health programs.
  The Medicare, Medicaid and MCH Smoking Cessation Promotion Act of 
2000 improves access to and coverage of smoking cessation treatment 
therapies in four primary ways.
  First, our bill adds a smoking cessation counseling benefit to 
Medicare. By 2020, 17 percent of the U.S. population will be 65 years 
of age or older. It is estimated that Medicare will pay $800 billion to 
treat tobacco-related diseases over the next twenty years. In a study 
of adults 65 years of age or older who received advice to quit, 
behavioral counseling and pharmocotherapy, 24.8 percent reported having 
stopped smoking six months following the intervention. The total 
economic benefits of quitting after age 65 are notable. Due to a 
reduction in the risk of lung cancer, coronary heart disease and 
emphysema, studies have found that heavy smokers over age 65 who quit 
can avoid up to $4,592 in lifelong illness-related costs.
  Second, our measure provides coverage for both prescription and non-
prescription smoking cessation drugs in the Medicaid program. The bill 
eliminates the provision in current federal law that allows states to 
exclude FDA-approved smoking cessation therapies from coverage under 
Medicaid. Ironically, State Medicaid programs are required to cover 
Viagra, but not to treat tobacco addiction. Despite the fact that the 
States are now receiving the full benefit of their federal lawsuit 
against the tobacco industry, less than half the States provide 
coverage for smoking cessation in their Medicaid program. On average, 
states spend approximately 14.4 percent of their Medicaid budgets on 
medical care related to smoking.
  Third, our legislation clarifies that the maternity benefit for 
pregnant women in Medicaid covers smoking cessation counseling and 
services. Smoking during pregnancy causes about 5-6 percent of 
perinatal deaths, 17-26 percent of low-birth-weight births, and 7-10 
percent of preterm deliveries, and increases the risk of miscarriage 
and fetal growth retardation. It may also increase the risk of sudden 
infant death syndrome, SIDS. And a recent study published in the 
American Journal of Respiratory and Critical Care Medicine shows that 
children whose mothers smoke during pregnancy are almost twice as 
likely to develop asthma as those whose mothers did not. The Surgeon 
General recommends that pregnant women and parents with children living 
at home be counseled on the potentially harmful effects of smoking on 
fetal and child health. A new study shows that, over seven years, 
reducing smoking prevalence by just one percentage point would prevent 
57,200 low birth weight births and save $572 million in direct medical 
costs.
  Fourth, our bill ensures that the Maternal and Child Health Program 
recognizes that medications used to promote smoking cessation and the 
inclusion of anti-tobacco messages in health promotion are considered 
part of quality maternal and child health services. In addition to the 
well-documented benefits of smoking cessation for maternity care, the 
Surgeon General's report adds, ``Tobacco use is a pediatric concern. In 
the United States, more than 6,000 children and adolescents try their 
first cigarette each day. More than 3,000 children and adolescents 
become daily smokers each day, resulting in approximately 1.23 million 
new smokers under the age of 18 each year.'' The goal of the MCH 
program is to improve the health of all mothers and children. This goal 
cannot be reached without addressing the tobacco epidemic.
  This legislation has been endorsed by ENACT, a coalition of more than 
60 national health organizations including the Campaign for Tobacco 
Free Kids, the American Cancer Society, the American Heart Association, 
the American College of Chest Physicians, the Association of Maternal 
and Child Health Programs, and the American Public Health Association.
  I hope my colleagues will join me not only in cosponsoring this 
legislation but also in working with me to see that its provisions are 
adopted before the year is out. As the Surgeon General has said, 
``Although our knowledge about tobacco control remains imperfect, we 
know more than enough to act now.''
  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. 622

       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 ``Medicare, Medicaid, and MCH 
     Tobacco Cessation Promotion Act of 2001''.

     SEC. 2. MEDICARE COVERAGE OF COUNSELING FOR CESSATION OF 
                   TOBACCO USE.

       (a) Coverage.--Section 1861(s)(2) of the Social Security 
     Act (42 U.S.C. 1395x(s)(2)), as amended by section 105(a) of 
     the Medicare, Medicaid, and SCHIP Benefits Improvement and 
     Protection Act of 2000 (as enacted into law by section 
     1(a)(6) of Public Law 106-554), is amended--
       (1) in subparagraph (U), by striking ``and'' at the end;
       (2) in subparagraph (V), by inserting ``and'' at the end; 
     and
       (3) by adding at the end the following new subparagraph:
       ``(W) counseling for cessation of tobacco use (as defined 
     in subsection (ww));''.
       (b) Services Described.--Section 1861 of the Social 
     Security Act (42 U.S.C. 1395x), as amended by section 105(b) 
     of the Medicare, Medicaid, and SCHIP Benefits Improvement and 
     Protection Act of 2000 (as enacted into law by section 
     1(a)(6) of Public Law 106-554), is amended by adding at the 
     end the following new subsection:

               ``Counseling for Cessation of Tobacco Use

       ``(ww) The term `counseling for cessation of tobacco use' 
     means the following:
       ``(1)(A) Counseling for cessation of tobacco use for 
     individuals who have a history of tobacco use.
       ``(B) For purposes of subparagraph (A), the term 
     `counseling for cessation of tobacco use' means diagnostic, 
     therapy, and counseling services for cessation of tobacco use 
     which are furnished--
       ``(i) by or under the supervision of a physician; or

[[Page 4647]]

       ``(ii) by any other health care professional who is legally 
     authorized to furnish such services under State law (or the 
     State regulatory mechanism provided by State law) of the 
     State in which the services are furnished,

     as would otherwise be covered if furnished by a physician or 
     as an incident to a physician's professional service.
       ``(C) The term `counseling for cessation of tobacco use' 
     does not include coverage for drugs or biologicals that are 
     not otherwise covered under this title.''.
       (c) Payment and Elimination of Cost-Sharing for Counseling 
     for Cessation of Tobacco Use.--
       (1) Payment and elimination of coinsurance.--Section 
     1833(a)(1) of the Social Security Act (42 U.S.C. 
     1395l(a)(1)), as amended by section 223(c) of the Medicare, 
     Medicaid, and SCHIP Benefits Improvement and Protection Act 
     of 2000 (as enacted into law by section 1(a)(6) of Public Law 
     106-554), is amended--
       (A) by striking ``and'' before ``(U)''; and
       (B) by inserting before the semicolon at the end the 
     following: ``, and (V) with respect to counseling for 
     cessation of tobacco use (as defined in section 1861(ww)), 
     the amount paid shall be 100 percent of the lesser of the 
     actual charge for the service or the amount determined by a 
     fee schedule established by the Secretary for each service''.
       (2) Elimination of coinsurance in outpatient hospital 
     settings.--The third sentence of section 1866(a)(2)(A) of the 
     Social Security Act (42 U.S.C. 1395cc(a)(2)(A)) is amended by 
     inserting after ``1861(s)(10)(A)'' the following: ``, with 
     respect to counseling for cessation of tobacco use (as 
     defined in section 1861(ww)),''.
       (3) Elimination of deductible.--The first sentence of 
     section 1833(b) of the Social Security Act (42 U.S.C. 
     1395l(b)) is amended--
       (A) by striking ``and'' before ``(6)''; and
       (B) by inserting before the period the following: ``, and 
     (7) such deductible shall not apply with respect to 
     counseling for cessation of tobacco use (as defined in 
     section 1861(ww))''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after the date that 
     is 1 year after the date of enactment of this Act.

     SEC. 3. PROMOTING CESSATION OF TOBACCO USE UNDER THE MEDICAID 
                   PROGRAM.

       (a) Dropping Exception From Medicaid Prescription Drug 
     Coverage for Tobacco Cessation Medications.--Section 
     1927(d)(2) of the Social Security Act (42 U.S.C. 1396r-
     8(d)(2)) is amended--
       (1) by striking subparagraph (E);
       (2) by redesignating subparagraphs (F) through (J) as 
     subparagraphs (E) through (I), respectively; and
       (3) in subparagraph (F) (as redesignated by paragraph (2)), 
     by inserting before the period at the end the following: 
     ``except agents approved by the Food and Drug Administration 
     for purposes of promoting, and when used to promote, tobacco 
     cessation''.
       (b) Requiring Coverage of Tobacco Cessation Counseling 
     Services for Pregnant Women.--Section 1902(e)(5) of the 
     Social Security Act (42 U.S.C. 1396a(e)(5)) is amended by 
     adding at the end the following new sentence: ``Such medical 
     assistance shall include counseling for cessation of tobacco 
     use (as defined in section 1861(ww)).''.
       (c) Removal of Cost-Sharing for Tobacco Cessation 
     Counseling Services for Pregnant Women.--Section 1916 of the 
     Social Security Act (42 U.S.C. 1396o) is amended, in each of 
     subsections (a)(2)(B) and (b)(2)(B), by inserting ``, and 
     counseling for cessation of tobacco use (as defined in 
     section 1861(ww))'' after ``complicate the pregnancy''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after the date that 
     is 1 year after the date of enactment of this Act.

     SEC. 4. PROMOTING CESSATION OF TOBACCO USE UNDER THE MATERNAL 
                   AND CHILD HEALTH SERVICES BLOCK GRANT PROGRAM.

       (a) Quality Maternal and Child Health Services Includes 
     Tobacco Cessation Counseling and Medications.--Section 501 of 
     the Social Security Act (42 U.S.C. 701) is amended by adding 
     at the end the following new subsection:
       ``(c) For purposes of this title, the term `maternal and 
     child health services' includes counseling for cessation of 
     tobacco use (as defined in section 1861(ww)), any drug or 
     biological used to promote tobacco cessation, and any health 
     promotion counseling that includes an antitobacco use 
     message.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date that is 1 year after the date 
     of enactment of this Act.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself, Mr. Daschle, Mr. Kennedy, and 
        Mr. Sarbanes):
  S. 623. A bill to amend title XVIII of the Social Security Act and 
the Employee Retirement Income Security Act of 1974 to improve access 
to health insurance and Medicare benefits for individuals ages 55 to 
65, to amend the Internal Revenue Code of 1986 to allow a 50 percent 
credit against income tax for payment of such premiums and of premiums 
for certain COBRA continuation coverage, and for other purposes; to the 
Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, the problem of the uninsured 
continues to plague our Nation, and it is particularly severe for older 
Americans who are facing the loss of health coverage but who are not 
yet eligible for Medicare. Today, over 40 million Americans are without 
health insurance.
  Adults between the ages of 55 to 65 are the fastest growing group of 
uninsured. Individuals 55 and older who have been laid off or retire 
early are particularly vulnerable to loss of health insurance. They 
have a difficult time buying health insurance on their own because they 
tend to have more chronic health problems that can result in either the 
denial of coverage, limited coverage, or very expensive policies.
  This is the age group where early detection and access to 
preventative care become crucial. For example, only 16 percent of 
uninsured women report having had a mammogram in the past year, 
compared to 42 percent of insured women. Because regular preventative 
care is not received, the uninsured are more likely to be diagnosed at 
a more advanced stage of cancer, over 40 percent more likely to be 
diagnosed with late stage breast and prostate cancer, and more than 
twice as likely to be diagnosed with late stage melanoma than the 
insured.
  The uninsured are more likely than those with insurance to be 
hospitalized for conditions that could have been avoided, such as 
pneumonia and uncontrolled diabetes. Delaying or not receiving 
treatment can lead to more serious illness and avoidable health 
problems, which has a direct impact on the health care needs of this 
segment of the population as they become old enough for Medicare 
coverage.
  Lack of insurance and gaps in coverage affect more than just those 
without insurance. There is a cost to society, as well. When an 
uninsured person goes to a public hospital or clinic, and emergency 
room, or a private physician for care and cannot pay the full cost, 
some of the bill is passed on to those who do pay, through higher 
insurance premiums and in the form of taxes supporting our public 
insurance programs. One way or another, we all pay indirectly for 
having a large and growing uninsured population.
  With the aging of the baby boom generation, this particularly 
vulnerable age group is expected to increase significantly. In 1999, 
there were 23.1 million Americans in this age group. This is expected 
to increase to 35 million Americans by the year 2020. Unless we effect 
positive change to address the barriers facing the growing number of 
uninsured in this age group, this problem will only get worse.
  I join Senators Kennedy, Daschle, and Sarbanes, and Representatives. 
Stark, Brown, Gephardt, Rangel, Dingell, and a number of their 
colleagues today to introduce an improved version of the Medicare Early 
Access Act. Our legislation will create an opportunity for people 
between ages 55 and 64 to purchase Medicare coverage, which is really 
the only affordable option for this group, because of their age and the 
likelihood of chronic and/or preexisting conditions.
  The Medicare Early Access and Tax Credit Act would reduce the number 
of uninsured Americans by more than 500,000. This bill provides new 
insurance coverage options through a Medicare buy-in for people aged 55 
through 64 or through a special COBRA continuation program for workers 
aged 55 through 64 whose employers reneged on the promise of retiree 
health coverage.
  This legislation improves upon the existing Medicare Early Access Act 
by adding a new 50 percent federal tax credit to the program to make it 
more affordable for people age 55 and over to obtain health insurance 
coverage. By including a tax credit, we are making this option 
available to a broader range of people.
  A survey released last session by the Commonwealth Fund finds that 
one in five people from age 50-64 reported a period of time when they 
were without health insurance coverage since turning age 50. Access to 
employer insurance is reduced as people approach age

[[Page 4648]]

sixty-five and retire. Consequently, older Americans rely most heavily 
on individual insurance, which is expensive and limited for people with 
serious health problems. Because average health expenses increase 
sharply with age, people closest to age sixty-five face the greatest 
risk of being uninsured and being charged the highest premiums in the 
individual market. Clearly, we need to take real steps to address the 
needs of this population.
  The Commonwealth survey also found that, when asked what source they 
would trust more to provide health insurance for adults ages 50 to 64, 
Medicare outranked employer-sponsored coverage and direct purchase of 
private individual health insurance. Half of uninsured adults ages 50-
64 said they would trust Medicare the most as a source of coverage.
  The Medicare Early Access and Tax Credit Act provides an insurance 
option for people who are unable to purchase health insurance in the 
private market either because of pre-existing conditions, age related 
premium increases, or both.
  The Medicare Early Access and Tax Credit Act is not the solution to 
solving America's health insurance coverage problems. But, it is a 
simple and obvious step to take to open new doors to a vulnerable 
segment of our population who are lacking affordable coverage 
elsewhere, and who need the opportunity to buy in to Medicare. I urge 
my colleagues to join us in making health insurance a reality for 
people in their later years of life, who are not yet eligible for the 
safety net of Medicare.
  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. 623

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Medicare 
     Early Access and Tax Credit Act of 2001''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.

TITLE I--ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF 
                                  AGE

Sec. 101. Access to Medicare benefits for individuals 62-to-65 years of 
              age.

 ``Part D--Purchase of Medicare Benefits by Certain Individuals Age 62-
                           to-65 Years of Age

``Sec. 1859. Program benefits; eligibility.
``Sec. 1859A. Enrollment process; coverage.
``Sec. 1859B. Premiums.
``Sec. 1859C. Payment of premiums.
``Sec. 1859D. Medicare Early Access Trust Fund.
``Sec. 1859E. Oversight and accountability.
``Sec. 1859F. Administration and miscellaneous.

 TITLE II--ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 
                              YEARS OF AGE

Sec. 201. Access to Medicare benefits for displaced workers 55-to-62 
              years of age.

             TITLE III--COBRA PROTECTION FOR EARLY RETIREES

 Subtitle A--Amendments to the Employee Retirement Income Security Act 
                                of 1974

Sec. 301. COBRA continuation benefits for certain retired workers who 
              lose retiree health coverage.

        Subtitle B--Amendments to the Public Health Service Act

Sec. 311. COBRA continuation benefits for certain retired workers who 
              lose retiree health coverage.

      Subtitle C--Amendments to the Internal Revenue Code of 1986

Sec. 321. COBRA continuation benefits for certain retired workers who 
              lose retiree health coverage.

  TITLE IV--50 PERCENT CREDIT AGAINST INCOME TAX FOR MEDICARE BUY-IN 
     PREMIUMS AND FOR CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS

Sec. 401. 50 percent income tax credit for medicare buy-in premiums and 
              for certain COBRA continuation coverage premiums.

TITLE I--ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-65 YEARS OF 
                                  AGE

     SEC. 101. ACCESS TO MEDICARE BENEFITS FOR INDIVIDUALS 62-TO-
                   65 YEARS OF AGE.

       (a) In General.--Title XVIII of the Social Security Act is 
     amended--
       (1) by redesignating section 1859 and part D as section 
     1858 and part E, respectively; and
       (2) by inserting after such section the following new part:

 ``Part D--Purchase of Medicare Benefits by Certain Individuals Age 62-
                           to-65 Years of Age

     ``SEC. 1859. PROGRAM BENEFITS; ELIGIBILITY.

       ``(a) Entitlement to Medicare Benefits For Enrolled 
     Individuals.--
       ``(1) In general.--An individual enrolled under this part 
     is entitled to the same benefits under this title as an 
     individual entitled to benefits under part A and enrolled 
     under part B.
       ``(2) Definitions.--For purposes of this part:
       ``(A) Federal or state cobra continuation provision.--The 
     term `Federal or State COBRA continuation provision' has the 
     meaning given the term `COBRA continuation provision' in 
     section 2791(d)(4) of the Public Health Service Act and 
     includes a comparable State program, as determined by the 
     Secretary.
       ``(B) Federal health insurance program defined.--The term 
     `Federal health insurance program' means any of the 
     following:
       ``(i) Medicare.--Part A or part B of this title (other than 
     by reason of this part).
       ``(ii) Medicaid.--A State plan under title XIX.
       ``(iii) FEHBP.--The Federal employees health benefit 
     program under chapter 89 of title 5, United States Code.
       ``(iv) TRICARE.--The TRICARE program (as defined in section 
     1072(7) of title 10, United States Code).
       ``(v) Active duty military.--Health benefits under title 
     10, United States Code, to an individual as a member of the 
     uniformed services of the United States.
       ``(C) Group health plan.--The term `group health plan' has 
     the meaning given such term in section 2791(a)(1) of the 
     Public Health Service Act.
       ``(b) Eligibility of Individuals Age 62-to-65 Years of 
     Age.--
       ``(1) In general.--Subject to paragraph (2), an individual 
     who meets the following requirements with respect to a month 
     is eligible to enroll under this part with respect to such 
     month:
       ``(A) Age.--As of the last day of the month, the individual 
     has attained 62 years of age, but has not attained 65 years 
     of age.
       ``(B) Medicare eligibility (but for age).--The individual 
     would be eligible for benefits under part A or part B for the 
     month if the individual were 65 years of age.
       ``(C) Not eligible for coverage under group health plans or 
     federal health insurance programs.--The individual is not 
     eligible for benefits or coverage under a Federal health 
     insurance program (as defined in subsection (a)(2)(B)) or 
     under a group health plan (other than such eligibility merely 
     through a Federal or State COBRA continuation provision) as 
     of the last day of the month involved.
       ``(2) Limitation on eligibility if terminated enrollment.--
     If an individual described in paragraph (1) enrolls under 
     this part and coverage of the individual is terminated under 
     section 1859A(d) (other than because of age), the individual 
     is not again eligible to enroll under this subsection unless 
     the following requirements are met:
       ``(A) New coverage under group health plan or federal 
     health insurance program.--After the date of termination of 
     coverage under such section, the individual obtains coverage 
     under a group health plan or under a Federal health insurance 
     program.
       ``(B) Subsequent loss of new coverage.--The individual 
     subsequently loses eligibility for the coverage described in 
     subparagraph (A) and exhausts any eligibility the individual 
     may subsequently have for coverage under a Federal or State 
     COBRA continuation provision.
       ``(3) Change in health plan eligibility does not affect 
     coverage.--In the case of an individual who is eligible for 
     and enrolls under this part under this subsection, the 
     individual's continued entitlement to benefits under this 
     part shall not be affected by the individual's subsequent 
     eligibility for benefits or coverage described in paragraph 
     (1)(C), or entitlement to such benefits or coverage.

     ``SEC. 1859A. ENROLLMENT PROCESS; COVERAGE.

       ``(a) In General.--An individual may enroll in the program 
     established under this part only in such manner and form as 
     may be prescribed by regulations, and only during an 
     enrollment period prescribed by the Secretary consistent with 
     the provisions of this section. Such regulations shall 
     provide a process under which--
       ``(1) individuals eligible to enroll as of a month are 
     permitted to pre-enroll during a prior month within an 
     enrollment period described in subsection (b); and
       ``(2) each individual seeking to enroll under section 
     1859(b) is notified, before enrolling, of the deferred 
     monthly premium amount the individual will be liable for 
     under section 1859C(b) upon attaining 65 years of age as 
     determined under section 1859B(c)(3).
       ``(b) Enrollment Periods.--
       ``(1) Individuals 62-to-65 years of age.--In the case of 
     individuals eligible to enroll under this part under section 
     1859(b)--
       ``(A) Initial enrollment period.--If the individual is 
     eligible to enroll under such

[[Page 4649]]

     section for January 2002, the enrollment period shall begin 
     on November 1, 2001, and shall end on February 28, 2002. Any 
     such enrollment before January 1, 2002, is conditioned upon 
     compliance with the conditions of eligibility for January 
     2002.
       ``(B) Subsequent periods.--If the individual is eligible to 
     enroll under such section for a month after January 2002, the 
     enrollment period shall begin on the first day of the second 
     month before the month in which the individual first is 
     eligible to so enroll and shall end four months later. Any 
     such enrollment before the first day of the third month of 
     such enrollment period is conditioned upon compliance with 
     the conditions of eligibility for such third month.
       ``(2) Authority to correct for government errors.--The 
     provisions of section 1837(h) apply with respect to 
     enrollment under this part in the same manner as they apply 
     to enrollment under part B.
       ``(c) Date Coverage Begins.--
       ``(1) In general.--The period during which an individual is 
     entitled to benefits under this part shall begin as follows, 
     but in no case earlier than January 1, 2002:
       ``(A) In the case of an individual who enrolls (including 
     pre-enrolls) before the month in which the individual 
     satisfies eligibility for enrollment under section 1859, the 
     first day of such month of eligibility.
       ``(B) In the case of an individual who enrolls during or 
     after the month in which the individual first satisfies 
     eligibility for enrollment under such section, the first day 
     of the following month.
       ``(2) Authority to provide for partial months of 
     coverage.--Under regulations, the Secretary may, in the 
     Secretary's discretion, provide for coverage periods that 
     include portions of a month in order to avoid lapses of 
     coverage.
       ``(3) Limitation on payments.--No payments may be made 
     under this title with respect to the expenses of an 
     individual enrolled under this part unless such expenses were 
     incurred by such individual during a period which, with 
     respect to the individual, is a coverage period under this 
     section.
       ``(d) Termination of Coverage.--
       ``(1) In general.--An individual's coverage period under 
     this part shall continue until the individual's enrollment 
     has been terminated at the earliest of the following:
       ``(A) General provisions.--
       ``(i) Notice.--The individual files notice (in a form and 
     manner prescribed by the Secretary) that the individual no 
     longer wishes to participate in the insurance program under 
     this part.
       ``(ii) Nonpayment of premiums.--The individual fails to 
     make payment of premiums required for enrollment under this 
     part.
       ``(iii) Medicare eligibility.--The individual becomes 
     entitled to benefits under part A or enrolled under part B 
     (other than by reason of this part).
       ``(B) Termination based on age.--The individual attains 65 
     years of age.
       ``(2) Effective date of termination.--
       ``(A) Notice.--The termination of a coverage period under 
     paragraph (1)(A)(i) shall take effect at the close of the 
     month following for which the notice is filed.
       ``(B) Nonpayment of premium.--The termination of a coverage 
     period under paragraph (1)(A)(ii) shall take effect on a date 
     determined under regulations, which may be determined so as 
     to provide a grace period in which overdue premiums may be 
     paid and coverage continued. The grace period determined 
     under the preceding sentence shall not exceed 60 days; except 
     that it may be extended for an additional 30 days in any case 
     where the Secretary determines that there was good cause for 
     failure to pay the overdue premiums within such 60-day 
     period.
       ``(C) Age or medicare eligibility.--The termination of a 
     coverage period under paragraph (1)(A)(iii) or (1)(B) shall 
     take effect as of the first day of the month in which the 
     individual attains 65 years of age or becomes entitled to 
     benefits under part A or enrolled for benefits under part B 
     (other than by reason of this part).

     ``SEC. 1859B. PREMIUMS.

       ``(a) Amount of Monthly Premiums.--
       ``(1) Base monthly premiums.--The Secretary shall, during 
     September of each year (beginning with 1998), determine the 
     following premium rates which shall apply with respect to 
     coverage provided under this title for any month in the 
     succeeding year:
       ``(A) Base monthly premium for individuals 62 years of age 
     or older.--A base monthly premium for individuals 62 years of 
     age or older, equal to \1/12\ of the base annual premium rate 
     computed under subsection (b) for each premium area.
       ``(2) Deferred monthly premiums for individuals 62 years of 
     age or older.--The Secretary shall, during September of each 
     year (beginning with 2001), determine under subsection (c) 
     the amount of deferred monthly premiums that shall apply with 
     respect to individuals who first obtain coverage under this 
     part under section 1859(b) in the succeeding year.
       ``(3) Establishment of premium areas.--For purposes of this 
     part, the term `premium area' means such an area as the 
     Secretary shall specify to carry out this part. The Secretary 
     from time to time may change the boundaries of such premium 
     areas. The Secretary shall seek to minimize the number of 
     such areas specified under this paragraph.
       ``(b) Base Annual Premium for Individuals 62 Years of Age 
     or Older.--
       ``(1) National, per capita average.--The Secretary shall 
     estimate the average, annual per capita amount that would be 
     payable under this title with respect to individuals residing 
     in the United States who meet the requirement of section 
     1859(b)(1)(A) as if all such individuals were eligible for 
     (and enrolled) under this title during the entire year (and 
     assuming that section 1862(b)(2)(A)(i) did not apply).
       ``(2) Geographic adjustment.--The Secretary shall adjust 
     the amount determined under paragraph (1) for each premium 
     area (specified under subsection (a)(3)) in order to take 
     into account such factors as the Secretary deems appropriate 
     and shall limit the maximum premium under this paragraph in a 
     premium area to assure participation in all areas throughout 
     the United States.
       ``(3) Base annual premium.--The base annual premium under 
     this subsection for months in a year for individuals 62 years 
     of age or older residing in a premium area is equal to the 
     average, annual per capita amount estimated under paragraph 
     (1) for the year, adjusted for such area under paragraph (2).
       ``(c) Deferred Premium Rate for Individuals 62 Years of Age 
     or Older.--The deferred premium rate for individuals with a 
     group of individuals who obtain coverage under section 
     1859(b) in a year shall be computed by the Secretary as 
     follows:
       ``(1) Estimation of national, per capita annual average 
     expenditures for enrollment group.--The Secretary shall 
     estimate the average, per capita annual amount that will be 
     paid under this part for individuals in such group during the 
     period of enrollment under section 1859(b). In making such 
     estimate for coverage beginning in a year before 2005, the 
     Secretary may base such estimate on the average, per capita 
     amount that would be payable if the program had been in 
     operation over a previous period of at least 4 years.
       ``(2) Difference between estimated expenditures and 
     estimated premiums.--Based on the characteristics of 
     individuals in such group, the Secretary shall estimate 
     during the period of coverage of the group under this part 
     under section 1859(b) the amount by which--
       ``(A) the amount estimated under paragraph (1); exceeds
       ``(B) the average, annual per capita amount of premiums 
     that will be payable for months during the year under section 
     1859C(a) for individuals in such group (including premiums 
     that would be payable if there were no terminations in 
     enrollment under clause (i) or (ii) of section 
     1859A(d)(1)(A)).
       ``(3) Actuarial computation of deferred monthly premium 
     rates.--The Secretary shall determine deferred monthly 
     premium rates for individuals in such group in a manner so 
     that--
       ``(A) the estimated actuarial value of such premiums 
     payable under section 1859C(b), is equal to
       ``(B) the estimated actuarial present value of the 
     differences described in paragraph (2).
     Such rate shall be computed for each individual in the group 
     in a manner so that the rate is based on the number of months 
     between the first month of coverage based on enrollment under 
     section 1859(b) and the month in which the individual attains 
     65 years of age.
       ``(4) Determinants of actuarial present values.--The 
     actuarial present values described in paragraph (3) shall 
     reflect--
       ``(A) the estimated probabilities of survival at ages 62 
     through 84 for individuals enrolled during the year; and
       ``(B) the estimated effective average interest rates that 
     would be earned on investments held in the trust funds under 
     this title during the period in question.

     ``SEC. 1859C. PAYMENT OF PREMIUMS.

       ``(a) Payment of Base Monthly Premium.--
       ``(1) In general.--The Secretary shall provide for payment 
     and collection of the base monthly premium, determined under 
     section 1859B(a)(1) for the age (and age cohort, if 
     applicable) of the individual involved and the premium area 
     in which the individual principally resides, in the same 
     manner as for payment of monthly premiums under section 1840, 
     except that, for purposes of applying this section, any 
     reference in such section to the Federal Supplementary 
     Medical Insurance Trust Fund is deemed a reference to the 
     Trust Fund established under section 1859D.
       ``(2) Period of payment.--In the case of an individual who 
     participates in the program established by this title, the 
     base monthly premium shall be payable for the period 
     commencing with the first month of the individual's coverage 
     period and ending with the month in which the individual's 
     coverage under this title terminates.
       ``(b) Payment of Deferred Premium for Individuals Covered 
     After Attaining Age 62.--
       ``(1) Rate of payment.--
       ``(A) In general.--In the case of an individual who is 
     covered under this part for a month pursuant to an enrollment 
     under section 1859(b), subject to subparagraph (B), the 
     individual is liable for payment of a deferred

[[Page 4650]]

     premium in each month during the period described in 
     paragraph (2) in an amount equal to the full deferred monthly 
     premium rate determined for the individual under section 
     1859B(c).
       ``(B) Special rules for those who disenroll early.--
       ``(i) In general.--If such an individual's enrollment under 
     such section is terminated under clause (i) or (ii) of 
     section 1859A(d)(1)(A), subject to clause (ii), the amount of 
     the deferred premium otherwise established under this 
     paragraph shall be pro-rated to reflect the number of months 
     of coverage under this part under such enrollment compared to 
     the maximum number of months of coverage that the individual 
     would have had if the enrollment were not so terminated.
       ``(ii) Rounding to 12-month minimum coverage periods.--In 
     applying clause (i), the number of months of coverage (if not 
     a multiple of 12) shall be rounded to the next highest 
     multiple of 12 months, except that in no case shall this 
     clause result in a number of months of coverage exceeding the 
     maximum number of months of coverage that the individual 
     would have had if the enrollment were not so terminated.
       ``(2) Period of payment.--The period described in this 
     paragraph for an individual is the period beginning with the 
     first month in which the individual has attained 65 years of 
     age and ending with the month before the month in which the 
     individual attains 85 years of age.
       ``(3) Collection.--In the case of an individual who is 
     liable for a premium under this subsection, the amount of the 
     premium shall be collected in the same manner as the premium 
     for enrollment under such part is collected under section 
     1840, except that any reference in such section to the 
     Federal Supplementary Medical Insurance Trust Fund is deemed 
     to be a reference to the Medicare Early Access Trust Fund 
     established under section 1859D.
       ``(c) Application of Certain Provisions.--The provisions of 
     section 1840 (other than subsection (h)) shall apply to 
     premiums collected under this section in the same manner as 
     they apply to premiums collected under part B, except that 
     any reference in such section to the Federal Supplementary 
     Medical Insurance Trust Fund is deemed a reference to the 
     Trust Fund established under section 1859D.

     ``SEC. 1859D. MEDICARE EARLY ACCESS TRUST FUND.

       ``(a) Establishment of Trust Fund.--
       ``(1) In general.--There is hereby created on the books of 
     the Treasury of the United States a trust fund to be known as 
     the `Medicare Early Access Trust Fund' (in this section 
     referred to as the `Trust Fund'). The Trust Fund shall 
     consist of such gifts and bequests as may be made as provided 
     in section 201(i)(1) and such amounts as may be deposited in, 
     or appropriated to, such fund as provided in this title.
       ``(2) Premiums.--Premiums collected under section 1859B 
     shall be transferred to the Trust Fund.
       ``(b) Incorporation of Provisions.--
       ``(1) In general.--Subject to paragraph (2), subsections 
     (b) through (i) of section 1841 shall apply with respect to 
     the Trust Fund and this title in the same manner as they 
     apply with respect to the Federal Supplementary Medical 
     Insurance Trust Fund and part B, respectively.
       ``(2) Miscellaneous references.--In applying provisions of 
     section 1841 under paragraph (1)--
       ``(A) any reference in such section to `this part' is 
     construed to refer to this part D;
       ``(B) any reference in section 1841(h) to section 1840(d) 
     and in section 1841(i) to sections 1840(b)(1) and 1842(g) are 
     deemed references to comparable authority exercised under 
     this part; and
       ``(C) payments may be made under section 1841(g) to the 
     Trust Funds under sections 1817 and 1841 as reimbursement to 
     such funds for payments they made for benefits provided under 
     this part.

     ``SEC. 1859E. OVERSIGHT AND ACCOUNTABILITY.

       ``(a) Through Annual Reports of Trustees.--The Board of 
     Trustees of the Medicare Early Access Trust Fund under 
     section 1859D(b)(1) shall report on an annual basis to 
     Congress concerning the status of the Trust Fund and the need 
     for adjustments in the program under this part to maintain 
     financial solvency of the program under this part.
       ``(b) Periodic GAO Reports.--The Comptroller General of the 
     United States shall periodically submit to Congress reports 
     on the adequacy of the financing of coverage provided under 
     this part. The Comptroller General shall include in such 
     report such recommendations for adjustments in such financing 
     and coverage as the Comptroller General deems appropriate in 
     order to maintain financial solvency of the program under 
     this part.

     ``SEC. 1859F. ADMINISTRATION AND MISCELLANEOUS.

       ``(a) Treatment for Purposes of Title.--Except as otherwise 
     provided in this part--
       ``(1) individuals enrolled under this part shall be treated 
     for purposes of this title as though the individual were 
     entitled to benefits under part A and enrolled under part B; 
     and
       ``(2) benefits described in section 1859 shall be payable 
     under this title to such individuals in the same manner as if 
     such individuals were so entitled and enrolled.
       ``(b) Not Treated As Medicare Program for Purposes of 
     Medicaid Program.--For purposes of applying title XIX 
     (including the provision of medicare cost-sharing assistance 
     under such title), an individual who is enrolled under this 
     part shall not be treated as being entitled to benefits under 
     this title.
       ``(c) Not Treated As Medicare Program for Purposes of COBRA 
     Continuation Provisions.--In applying a COBRA continuation 
     provision (as defined in section 2791(d)(4) of the Public 
     Health Service Act), any reference to an entitlement to 
     benefits under this title shall not be construed to include 
     entitlement to benefits under this title pursuant to the 
     operation of this part.''.
       (b) Conforming Amendments to Social Security Act 
     Provisions.--
       (1) Section 201(i)(1) of the Social Security Act (42 U.S.C. 
     401(i)(1)) is amended by striking ``or the Federal 
     Supplementary Medical Insurance Trust Fund'' and inserting 
     ``the Federal Supplementary Medical Insurance Trust Fund, and 
     the Medicare Early Access Trust Fund''.
       (2) Section 201(g)(1)(A) of such Act (42 U.S.C. 
     401(g)(1)(A)) is amended by striking ``and the Federal 
     Supplementary Medical Insurance Trust Fund established by 
     title XVIII'' and inserting ``, the Federal Supplementary 
     Medical Insurance Trust Fund, and the Medicare Early Access 
     Trust Fund established by title XVIII''.
       (3) Section 1820(i) of such Act (42 U.S.C. 1395i-4(i)) is 
     amended by striking ``part D'' and inserting ``part E''.
       (4) Part C of title XVIII of such Act is amended--
       (A) in section 1851(a)(2)(B) (42 U.S.C. 1395w-21(a)(2)(B)), 
     by striking ``1859(b)(3)'' and inserting ``1858(b)(3)'';
       (B) in section 1851(a)(2)(C) (42 U.S.C. 1395w-21(a)(2)(C)), 
     by striking ``1859(b)(2)'' and inserting ``1858(b)(2)'';
       (C) in section 1852(a)(1) (42 U.S.C. 1395w-22(a)(1)), by 
     striking ``1859(b)(3)'' and inserting ``1858(b)(3)'';
       (D) in section 1852(a)(3)(B)(ii) (42 U.S.C. 1395w-
     22(a)(3)(B)(ii)), by striking ``1859(b)(2)(B)'' and inserting 
     ``1858(b)(2)(B)'';
       (E) in section 1853(a)(1)(A) (42 U.S.C. 1395w-23(a)(1)(A)), 
     by striking ``1859(e)(4)'' and inserting ``1858(e)(4)''; and
       (F) in section 1853(a)(3)(D) (42 U.S.C. 1395w-23(a)(3)(D)), 
     by striking ``1859(e)(4)'' and inserting ``1858(e)(4)''.
       (5) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is 
     amended--
       (A) in paragraph (1), by striking ``or (7)'' and inserting 
     ``, (7), or (8)'', and
       (B) by adding at the end the following:
       ``(8) Adjustment for early access.--In applying this 
     subsection with respect to individuals entitled to benefits 
     under part D, the Secretary shall provide for an appropriate 
     adjustment in the Medicare+Choice capitation rate as may be 
     appropriate to reflect differences between the population 
     served under such part and the population under parts A and 
     B.''.
       (c) Other Conforming Amendments.--
       (1) Section 138(b)(4) of the Internal Revenue Code of 1986 
     is amended by striking ``1859(b)(3)'' and inserting 
     ``1858(b)(3)''.
       (2)(A) Section 602(2)(D)(ii) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1162(2)) is amended by 
     inserting ``(not including an individual who is so entitled 
     pursuant to enrollment under section 1859A)'' after ``Social 
     Security Act''.
       (B) Section 2202(2)(D)(ii) of the Public Health Service Act 
     (42 U.S.C. 300bb-2(2)(D)(ii)) is amended by inserting ``(not 
     including an individual who is so entitled pursuant to 
     enrollment under section 1859A)'' after ``Social Security 
     Act''.
       (C) Section 4980B(f)(2)(B)(i)(V) of the Internal Revenue 
     Code of 1986 is amended by inserting ``(not including an 
     individual who is so entitled pursuant to enrollment under 
     section 1859A)'' after ``Social Security Act''.

 TITLE II--ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 55-TO-62 
                              YEARS OF AGE

     SEC. 201. ACCESS TO MEDICARE BENEFITS FOR DISPLACED WORKERS 
                   55-TO-62 YEARS OF AGE.

       (a) Eligibility.--Section 1859 of the Social Security Act, 
     as inserted by section 101(a)(2), is amended by adding at the 
     end the following new subsection:
       ``(c) Displaced Workers and Spouses.--
       ``(1) Displaced workers.--Subject to paragraph (3), an 
     individual who meets the following requirements with respect 
     to a month is eligible to enroll under this part with respect 
     to such month:
       ``(A) Age.--As of the last day of the month, the individual 
     has attained 55 years of age, but has not attained 62 years 
     of age.
       ``(B) Medicare eligibility (but for age).--The individual 
     would be eligible for benefits under part A or part B for the 
     month if the individual were 65 years of age.
       ``(C) Loss of employment-based coverage.--
       ``(i) Eligible for unemployment compensation.--The 
     individual meets the requirements relating to period of 
     covered employment and conditions of separation from 
     employment to be eligible for unemployment compensation (as 
     defined in section 85(b) of

[[Page 4651]]

     the Internal Revenue Code of 1986), based on a separation 
     from employment occurring on or after July 1, 2001. The 
     previous sentence shall not be construed as requiring the 
     individual to be receiving such unemployment compensation.
       ``(ii) Loss of employment-based coverage.--Immediately 
     before the time of such separation of employment, the 
     individual was covered under a group health plan on the basis 
     of such employment, and, because of such loss, is no longer 
     eligible for coverage under such plan (including such 
     eligibility based on the application of a Federal or State 
     COBRA continuation provision) as of the last day of the month 
     involved.
       ``(iii) Previous creditable coverage for at least 1 year.--
     As of the date on which the individual loses coverage 
     described in clause (ii), the aggregate of the periods of 
     creditable coverage (as determined under section 2701(c) of 
     the Public Health Service Act) is 12 months or longer.
       ``(D) Exhaustion of available cobra continuation 
     benefits.--
       ``(i) In general.--In the case of an individual described 
     in clause (ii) for a month described in clause (iii)--

       ``(I) the individual (or spouse) elected coverage described 
     in clause (ii); and
       ``(II) the individual (or spouse) has continued such 
     coverage for all months described in clause (iii) in which 
     the individual (or spouse) is eligible for such coverage.

       ``(ii) Individuals to whom cobra continuation coverage made 
     available.--An individual described in this clause is an 
     individual--

       ``(I) who was offered coverage under a Federal or State 
     COBRA continuation provision at the time of loss of coverage 
     eligibility described in subparagraph (C)(ii); or
       ``(II) whose spouse was offered such coverage in a manner 
     that permitted coverage of the individual at such time.

       ``(iii) Months of possible cobra continuation coverage.--A 
     month described in this clause is a month for which an 
     individual described in clause (ii) could have had coverage 
     described in such clause as of the last day of the month if 
     the individual (or the spouse of the individual, as the case 
     may be) had elected such coverage on a timely basis.
       ``(E) Not eligible for coverage under federal health 
     insurance program or group health plans.--The individual is 
     not eligible for benefits or coverage under a Federal health 
     insurance program or under a group health plan (whether on 
     the basis of the individual's employment or employment of the 
     individual's spouse) as of the last day of the month 
     involved.
       ``(2) Spouse of displaced worker.--Subject to paragraph 
     (3), an individual who meets the following requirements with 
     respect to a month is eligible to enroll under this part with 
     respect to such month:
       ``(A) Age.--As of the last day of the month, the individual 
     has not attained 62 years of age.
       ``(B) Married to displaced worker.--The individual is the 
     spouse of an individual at the time the individual enrolls 
     under this part under paragraph (1) and loses coverage 
     described in paragraph (1)(C)(ii) because the individual's 
     spouse lost such coverage.
       ``(C) Medicare eligibility (but for age); exhaustion of any 
     cobra continuation coverage; and not eligible for coverage 
     under federal health insurance program or group health 
     plan.--The individual meets the requirements of subparagraphs 
     (B), (D), and (E) of paragraph (1).
       ``(3) Change in health plan eligibility affects continued 
     eligibility.--For provision that terminates enrollment under 
     this section in the case of an individual who becomes 
     eligible for coverage under a group health plan or under a 
     Federal health insurance program, see section 1859A(d)(1)(C).
       ``(4) Reenrollment permitted.--Nothing in this subsection 
     shall be construed as preventing an individual who, after 
     enrolling under this subsection, terminates such enrollment 
     from subsequently reenrolling under this subsection if the 
     individual is eligible to enroll under this subsection at 
     that time.''.
       (b) Enrollment.--Section 1859A of such Act, as so inserted, 
     is amended--
       (1) in subsection (a), by striking ``and'' at the end of 
     paragraph (1), by striking the period at the end of paragraph 
     (2) and inserting ``; and'', and by adding at the end the 
     following new paragraph:
       ``(3) individuals whose coverage under this part would 
     terminate because of subsection (d)(1)(B)(ii) are provided 
     notice and an opportunity to continue enrollment in 
     accordance with section 1859E(c)(1).'';
       (2) in subsection (b), by inserting after Notwithstanding 
     any other provision of law, (1) the following:
       ``(2) Displaced workers and spouses.--In the case of 
     individuals eligible to enroll under this part under section 
     1859(c), the following rules apply:
       ``(A) Initial enrollment period.--If the individual is 
     first eligible to enroll under such section for January 2002, 
     the enrollment period shall begin on November 1, 2001, and 
     shall end on February 28, 2002. Any such enrollment before 
     January 1, 2002, is conditioned upon compliance with the 
     conditions of eligibility for January 2002.
       ``(B) Subsequent periods.--If the individual is eligible to 
     enroll under such section for a month after January 2002, the 
     enrollment period based on such eligibility shall begin on 
     the first day of the second month before the month in which 
     the individual first is eligible to so enroll (or reenroll) 
     and shall end four months later.'';
       (3) in subsection (d)(1), by amending subparagraph (B) to 
     read as follows:
       ``(B) Termination based on age.--
       ``(i) At age 65.--Subject to clause (ii), the individual 
     attains 65 years of age.
       ``(ii) At age 62 for displaced workers and spouses.--In the 
     case of an individual enrolled under this part pursuant to 
     section 1859(c), subject to subsection (a)(1), the individual 
     attains 62 years of age.'';
       (4) in subsection (d)(1), by adding at the end the 
     following new subparagraph:
       ``(C) Obtaining access to employment-based coverage or 
     federal health insurance program for individuals under 62 
     years of age.--In the case of an individual who has not 
     attained 62 years of age, the individual is covered (or 
     eligible for coverage) as a participant or beneficiary under 
     a group health plan or under a Federal health insurance 
     program.'';
       (5) in subsection (d)(2), by amending subparagraph (C) to 
     read as follows:
       ``(C) Age or medicare eligibility.--
       ``(i) In general.--The termination of a coverage period 
     under paragraph (1)(A)(iii) or (1)(B)(i) shall take effect as 
     of the first day of the month in which the individual attains 
     65 years of age or becomes entitled to benefits under part A 
     or enrolled for benefits under part B.
       ``(ii) Displaced workers.--The termination of a coverage 
     period under paragraph (1)(B)(ii) shall take effect as of the 
     first day of the month in which the individual attains 62 
     years of age, unless the individual has enrolled under this 
     part pursuant to section 1859(b) and section 1859E(c)(1).''; 
     and
       (6) in subsection (d)(2), by adding at the end the 
     following new subparagraph:
       ``(D) Access to coverage.--The termination of a coverage 
     period under paragraph (1)(C) shall take effect on the date 
     on which the individual is eligible to begin a period of 
     creditable coverage (as defined in section 2701(c) of the 
     Public Health Service Act) under a group health plan or under 
     a Federal health insurance program.''.
       (c) Premiums.--Section 1859B of such Act, as so inserted, 
     is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following:
       ``(B) Base monthly premium for individuals under 62 years 
     of age.--A base monthly premium for individuals under 62 
     years of age, equal to \1/12\ of the base annual premium rate 
     computed under subsection (d)(3) for each premium area and 
     age cohort.''; and
       (2) by adding at the end the following new subsection:
       ``(d) Base Monthly Premium for Individuals Under 62 Years 
     of Age.--
       ``(1) National, per capita average for age groups.--
       ``(A) Estimate of amount.--The Secretary shall estimate the 
     average, annual per capita amount that would be payable under 
     this title with respect to individuals residing in the United 
     States who meet the requirement of section 1859(c)(1)(A) 
     within each of the age cohorts established under subparagraph 
     (B) as if all such individuals within such cohort were 
     eligible for (and enrolled) under this title during the 
     entire year (and assuming that section 1862(b)(2)(A)(i) did 
     not apply).
       ``(B) Age cohorts.--For purposes of subparagraph (A), the 
     Secretary shall establish separate age cohorts in 5 year age 
     increments for individuals who have not attained 60 years of 
     ages and a separate cohort for individuals who have attained 
     60 years of age.
       ``(2) Geographic adjustment.--The Secretary shall adjust 
     the amount determined under paragraph (1)(A) for each premium 
     area (specified under subsection (a)(3)) in the same manner 
     and to the same extent as the Secretary provides for 
     adjustments under subsection (b)(2).
       ``(3) Base annual premium.--The base annual premium under 
     this subsection for months in a year for individuals in an 
     age cohort under paragraph (1)(B) in a premium area is equal 
     to 165 percent of the average, annual per capita amount 
     estimated under paragraph (1) for the age cohort and year, 
     adjusted for such area under paragraph (2).
       ``(4) Pro-ration of premiums to reflect coverage during a 
     part of a month.--If the Secretary provides for coverage of 
     portions of a month under section 1859A(c)(2), the Secretary 
     shall pro-rate the premiums attributable to such coverage 
     under this section to reflect the portion of the month so 
     covered.''.
       (d) Administrative Provisions.--Section 1859F of such Act, 
     as so inserted, is amended by adding at the end the 
     following:
       ``(d) Additional Administrative Provisions.--
       ``(1) Process for continued enrollment of displaced workers 
     who attain 62 years of age.--The Secretary shall provide a 
     process for the continuation of enrollment of individuals 
     whose enrollment under section 1859(c) would be terminated 
     upon attaining 62 years of age. Under such process such 
     individuals shall be provided appropriate and timely notice 
     before the date of such termination and of the requirement to 
     enroll under this part pursuant to section 1859(b) in

[[Page 4652]]

     order to continue entitlement to benefits under this title 
     after attaining 62 years of age.
       ``(2) Arrangements with states for determinations relating 
     to unemployment compensation eligibility.--The Secretary may 
     provide for appropriate arrangements with States for the 
     determination of whether individuals in the State meet or 
     would meet the requirements of section 1859(c)(1)(C)(i).''.
       (e) Conforming Amendment to Heading to Part.--The heading 
     of part D of title XVIII of the Social Security Act, as so 
     inserted, is amended by striking ``62'' and inserting ``55''.

             TITLE III--COBRA PROTECTION FOR EARLY RETIREES

 Subtitle A--Amendments to the Employee Retirement Income Security Act 
                                of 1974

     SEC. 301. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 603 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1163) is amended by 
     inserting after paragraph (6) the following new paragraph:
       ``(7) The termination or substantial reduction in benefits 
     (as defined in section 607(7)) of group health plan coverage 
     as a result of plan changes or termination in the case of a 
     covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 607 of such Act (29 
     U.S.C. 1167) is amended--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     section 603(7), the term `qualified beneficiary' means a 
     qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(6) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     section 603(7), a covered employee who, at the time of the 
     event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(7) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary and with respect to a qualified beneficiary, a 
     reduction in the average actuarial value of benefits under 
     the plan (through reduction or elimination of benefits, an 
     increase in premiums, deductibles, copayments, and 
     coinsurance, or any combination thereof), since the date of 
     commencement of coverage of the beneficiary by reason of the 
     retirement of the covered employee (or, if later, January 6, 
     2001), in an amount equal to at least 50 percent of the total 
     average actuarial value of the benefits under the plan as of 
     such date (taking into account an appropriate adjustment to 
     permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of section 602(3).''.
       (b) Duration of Coverage Through Age 65.--Section 602(2)(A) 
     of such Act (29 U.S.C. 1162(2)(A)) is amended--
       (1) in clause (ii), by inserting ``or 603(7)'' after 
     ``603(6)'';
       (2) in clause (iv), by striking ``or 603(6)'' and inserting 
     ``, 603(6), or 603(7)'';
       (3) by redesignating clause (iv) as clause (vi);
       (4) by redesignating clause (v) as clause (iv) and by 
     moving such clause to immediately follow clause (iii); and
       (5) by inserting after such clause (iv) the following new 
     clause:
       ``(v) Special rule for certain dependents in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     section 603(7), in the case of a qualified beneficiary 
     described in section 607(3)(D) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(I) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(II) the date that is 36 months after the date of the 
     qualifying event.''.

       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 602(1) of such 
     Act (29 U.S.C. 1162(1)) is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the coverage''; and
       (2) by adding at the end the following:
       ``(B) Certain retirees.--In the case of a qualifying event 
     described in section 603(7), in applying the first sentence 
     of subparagraph (A) and the fourth sentence of paragraph (3), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary) 
     continued under the group health plan (or, if none, under the 
     most prevalent other plan offered by the same plan sponsor) 
     shall be treated as the coverage described in such sentence, 
     or (at the option of the plan and qualified beneficiary) such 
     other coverage option as may be offered and elected by the 
     qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 602(3) 
     of such Act (29 U.S.C. 1162(3)) is amended by adding at the 
     end the following new sentence: ``In the case of an 
     individual provided continuation coverage by reason of a 
     qualifying event described in section 603(7), any reference 
     in subparagraph (A) of this paragraph to `102 percent of the 
     applicable premium' is deemed a reference to `125 percent of 
     the applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in paragraph (1)(B)'.''.
       (e) Notice.--Section 606(a) of such Act (29 U.S.C. 1166) is 
     amended--
       (1) in paragraph (4)(A), by striking ``or (6)'' and 
     inserting ``(6), or (7)''; and
       (2) by adding at the end the following:
     ``The notice under paragraph (4) in the case of a qualifying 
     event described in section 603(7) shall be provided at least 
     90 days before the date of the qualifying event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after January 6, 2001. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

        Subtitle B--Amendments to the Public Health Service Act

     SEC. 311. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 2203 of the Public Health Service 
     Act (42 U.S.C. 300bb-3) is amended by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) The termination or substantial reduction in benefits 
     (as defined in section 2208(6)) of group health plan coverage 
     as a result of plan changes or termination in the case of a 
     covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 2208 of such Act (42 
     U.S.C. 300bb-8) is amended--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(C) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     section 2203(6), the term `qualified beneficiary' means a 
     qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     section 2203(6), a covered employee who, at the time of the 
     event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(6) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary of Labor and with respect to a qualified 
     beneficiary, a reduction in the average actuarial value of 
     benefits under the plan (through reduction or elimination of 
     benefits, an increase in premiums, deductibles, copayments, 
     and coinsurance, or any combination thereof), since the date 
     of commencement of coverage of the beneficiary by reason of 
     the retirement of the covered employee (or, if later, January 
     6, 2001), in an amount equal to at least 50 percent of the 
     total average actuarial value of the benefits under the plan 
     as of such date (taking into account an appropriate 
     adjustment to permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of section 2202(3).''.
       (b) Duration of Coverage Through Age 65.--Section 
     2202(2)(A) of such Act (42 U.S.C. 300bb-2(2)(A)) is amended--

[[Page 4653]]

       (1) by redesignating clause (iii) as clause (iv); and
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) Special rule for certain dependents in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     section 2203(6), in the case of a qualified beneficiary 
     described in section 2208(3)(C) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(I) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(II) the date that is 36 months after the date of the 
     qualifying event.''.

       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 2202(1) of 
     such Act (42 U.S.C. 300bb-2(1)) is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     the coverage''; and
       (2) by adding at the end the following:
       ``(B) Certain retirees.--In the case of a qualifying event 
     described in section 2203(6), in applying the first sentence 
     of subparagraph (A) and the fourth sentence of paragraph (3), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary of 
     Labor) continued under the group health plan (or, if none, 
     under the most prevalent other plan offered by the same plan 
     sponsor) shall be treated as the coverage described in such 
     sentence, or (at the option of the plan and qualified 
     beneficiary) such other coverage option as may be offered and 
     elected by the qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 2202(3) 
     of such Act (42 U.S.C. 300bb-2(3)) is amended by adding at 
     the end the following new sentence: ``In the case of an 
     individual provided continuation coverage by reason of a 
     qualifying event described in section 2203(6), any reference 
     in subparagraph (A) of this paragraph to `102 percent of the 
     applicable premium' is deemed a reference to `125 percent of 
     the applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in paragraph (1)(B)'.''.
       (e) Notice.--Section 2206(a) of such Act (42 U.S.C. 300bb-
     6(a)) is amended--
       (1) in paragraph (4)(A), by striking ``or (4)'' and 
     inserting ``(4), or (6)''; and
       (2) by adding at the end the following:
     ``The notice under paragraph (4) in the case of a qualifying 
     event described in section 2203(6) shall be provided at least 
     90 days before the date of the qualifying event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after January 6, 2001. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

      Subtitle C--Amendments to the Internal Revenue Code of 1986

     SEC. 321. COBRA CONTINUATION BENEFITS FOR CERTAIN RETIRED 
                   WORKERS WHO LOSE RETIREE HEALTH COVERAGE.

       (a) Establishment of New Qualifying Event.--
       (1) In general.--Section 4980B(f)(3) of the Internal 
     Revenue Code of 1986 is amended by inserting after 
     subparagraph (F) the following new subparagraph:
       ``(G) The termination or substantial reduction in benefits 
     (as defined in subsection (g)(6)) of group health plan 
     coverage as a result of plan changes or termination in the 
     case of a covered employee who is a qualified retiree.''.
       (2) Qualified retiree; qualified beneficiary; and 
     substantial reduction defined.--Section 4980B(g) of such Code 
     is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``except as otherwise 
     provided in this paragraph,'' after ``means,''; and
       (ii) by adding at the end the following new subparagraph:
       ``(E) Special rule for qualifying retirees and 
     dependents.--In the case of a qualifying event described in 
     subsection (f)(3)(G), the term `qualified beneficiary' means 
     a qualified retiree and any other individual who, on the day 
     before such qualifying event, is a beneficiary under the plan 
     on the basis of the individual's relationship to such 
     qualified retiree.''; and
       (B) by adding at the end the following new paragraphs:
       ``(5) Qualified retiree.--The term `qualified retiree' 
     means, with respect to a qualifying event described in 
     subsection (f)(3)(G), a covered employee who, at the time of 
     the event--
       ``(A) has attained 55 years of age; and
       ``(B) was receiving group health coverage under the plan by 
     reason of the retirement of the covered employee.
       ``(6) Substantial reduction.--The term `substantial 
     reduction'--
       ``(A) means, as determined under regulations of the 
     Secretary of Labor and with respect to a qualified 
     beneficiary, a reduction in the average actuarial value of 
     benefits under the plan (through reduction or elimination of 
     benefits, an increase in premiums, deductibles, copayments, 
     and coinsurance, or any combination thereof), since the date 
     of commencement of coverage of the beneficiary by reason of 
     the retirement of the covered employee (or, if later, January 
     6, 2001), in an amount equal to at least 50 percent of the 
     total average actuarial value of the benefits under the plan 
     as of such date (taking into account an appropriate 
     adjustment to permit comparison of values over time); and
       ``(B) includes an increase in premiums required to an 
     amount that exceeds the premium level described in the fourth 
     sentence of subsection (f)(2)(C).''.
       (b) Duration of Coverage Through Age 65.--Section 
     4980B(f)(2)(B)(i) of such Code is amended--
       (1) in subclause (II), by inserting ``or (3)(G)'' after 
     ``(3)(F)'';
       (2) in subclause (IV), by striking ``or (3)(F)'' and 
     inserting ``, (3)(F), or (3)(G)'';
       (3) by redesignating subclause (IV) as subclause (VI);
       (4) by redesignating subclause (V) as subclause (IV) and by 
     moving such clause to immediately follow subclause (III); and
       (5) by inserting after such subclause (IV) the following 
     new subclause:

       ``(V) Special rule for certain dependents in case of 
     termination or substantial reduction of retiree health 
     coverage.--In the case of a qualifying event described in 
     paragraph (3)(G), in the case of a qualified beneficiary 
     described in subsection (g)(1)(E) who is not the qualified 
     retiree or spouse of such retiree, the later of--

       ``(a) the date that is 36 months after the earlier of the 
     date the qualified retiree becomes entitled to benefits under 
     title XVIII of the Social Security Act, or the date of the 
     death of the qualified retiree; or
       ``(b) the date that is 36 months after the date of the 
     qualifying event.''.
       (c) Type of Coverage in Case of Termination or Substantial 
     Reduction of Retiree Health Coverage.--Section 4980B(f)(2)(A) 
     of such Code is amended--
       (1) by striking ``The coverage'' and inserting the 
     following:
       ``(i) In general.--Except as provided in clause (ii), the 
     coverage''; and
       (2) by adding at the end the following:
       ``(ii) Certain retirees.--In the case of a qualifying event 
     described in paragraph (3)(G), in applying the first sentence 
     of clause (i) and the fourth sentence of subparagraph (C), 
     the coverage offered that is the most prevalent coverage 
     option (as determined under regulations of the Secretary of 
     Labor) continued under the group health plan (or, if none, 
     under the most prevalent other plan offered by the same plan 
     sponsor) shall be treated as the coverage described in such 
     sentence, or (at the option of the plan and qualified 
     beneficiary) such other coverage option as may be offered and 
     elected by the qualified beneficiary involved.''.
       (d) Increased Level of Premiums Permitted.--Section 
     4980B(f)(2)(C) of such Code is amended by adding at the end 
     the following new sentence: ``In the case of an individual 
     provided continuation coverage by reason of a qualifying 
     event described in paragraph (3)(G), any reference in clause 
     (i) of this subparagraph to `102 percent of the applicable 
     premium' is deemed a reference to `125 percent of the 
     applicable premium for employed individuals (and their 
     dependents, if applicable) for the coverage option referred 
     to in subparagraph (A)(ii)'.''.
       (e) Notice.--Section 4980B(f)(6) of such Code is amended--
       (1) in subparagraph (D)(i), by striking ``or (F)'' and 
     inserting ``(F), or (G)''; and
       (2) by adding at the end the following:
     ``The notice under subparagraph (D)(i) in the case of a 
     qualifying event described in paragraph (3)(G) shall be 
     provided at least 90 days before the date of the qualifying 
     event.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by this section (other 
     than subsection (e)(2)) shall apply to qualifying events 
     occurring on or after January 6, 2001. In the case of a 
     qualifying event occurring on or after such date and before 
     the date of the enactment of this Act, such event shall be 
     deemed (for purposes of such amendments) to have occurred on 
     the date of the enactment of this Act.
       (2) Advance notice of terminations and reductions.--The 
     amendment made by subsection (e)(2) shall apply to qualifying 
     events occurring after the date of the enactment of this Act, 
     except that in no case shall notice be required under such 
     amendment before such date.

[[Page 4654]]



  TITLE IV--50 PERCENT CREDIT AGAINST INCOME TAX FOR MEDICARE BUY-IN 
     PREMIUMS AND FOR CERTAIN COBRA CONTINUATION COVERAGE PREMIUMS

     SEC. 401. 50 PERCENT INCOME TAX CREDIT FOR MEDICARE BUY-IN 
                   PREMIUMS AND FOR CERTAIN COBRA CONTINUATION 
                   COVERAGE PREMIUMS.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25A the following new section:

     ``SEC. 25B. MEDICARE BUY-IN PREMIUMS AND CERTAIN COBRA 
                   CONTINUATION COVERAGE PREMIUMS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter for the taxable year an amount equal to 50 percent of 
     the amount paid during such year as--
       ``(1) qualified continuation health coverage premiums, and
       ``(2) medicare buy-in coverage premiums.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified continuation health coverage premiums.--The 
     term `qualified continuation health coverage premiums' means, 
     for any period, premiums paid for continuation coverage (as 
     defined in section 4980B(f)) under a group health plan for 
     such period but only if failure to offer such coverage to the 
     taxpayer for such period would constitute a failure by such 
     health plan to meet the requirements of section 4980B(f) and 
     only if the continuation coverage is provided because of a 
     qualifying event described in section 4980B(f)(3)(G).
       ``(2) Medicare buy-in coverage premiums.--The term 
     `medicare buy-in coverage premiums' means premiums paid under 
     part D of title XVIII of the Social Security Act.''
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of such Code is 
     amended by inserting after the item relating to section 25A 
     the following new item:

``Sec. 25B. Medicare buy-in premiums and certain COBRA continuation 
              coverage premiums.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.
                                 ______
                                 
      By Mr. Gregg (for himself and Mrs. Hutchison):
  S. 624. A bill to amend the Fair Labor Standards Act of 1938 to 
provide to private sector employees the same opportunities for time-
and-a-half compensatory time off and biweekly work programs as Federal 
employees currently enjoy to help balance the demands and needs of work 
and family, to clairfy the provisions relating to exemptions of certain 
professionals from minimum wage and overtime requirements of the Fair 
Labor Standards Act of 1938, and for other purposes; to the Committee 
on Health, Education, Labor, and Pensions.
  Mr. GREGG. Mr. President, I rise today to introduce legislation that, 
if enacted, could have a monumental impact on the lives of thousands of 
working men, women and families in America. Today, with Senator Kay 
Bailey Hutchison, I am pleased to introduce the Workplace Flexibility 
Act. The Workplace Flexibility Act has as its primary purpose, giving 
families and employers greater flexibility in meeting and balancing the 
demands of work and family.
  The demand for family time is significant. In fact, families today 
are spending close to 40 percent less time with their families and 
children than in the 1960s. This is an important and even critical 
issue to many Americans. In fact, survey upon survey has found that the 
issue of workplace flexibility and family time is the number one issue 
women want addressed.
  The Workplace Flexibility Act is not a total solution, but it is an 
important part of the solution. It gives working families a choice.
  The Workplace Flexibility Act in a nutshell consists of two main 
provisions. The first allows employees the option of taking time off in 
lieu of overtime pay. The second gives employees the option of 
``flexing'' their schedules over a two week period. In other words, 
employees would have 10 ``flexible'' hours that they could work in one 
week in order to take 10 hours off in the next week. Flexible work 
arrangements have been available to Federal government workers since 
1978. In the 1970's, 80's, and 90's federal government workers have had 
this special privilege. The Federal program was so successful in fact, 
that the President in 1993 issues an Executive Order extending it to 
parts of the Federal Government that had not yet had the benefits of 
the program.
  Yet members of the private sector do not have this option. The 
Workplace Flexibility Act corrects this and extends this option to all 
businesses covered by the Fair Labor Standards Act.
  So, who are these workers who are currently covered by the FLSA but 
do not have the ability to exercise workplace flexibility? They are 
some of the hardest working Americans. Sixty percent of these workers 
have only a high school education. Eighty percent of them make less 
than $28,000. A great percentage of them are single mothers with 
children. They are working hard to meet their family's economic needs 
as well as their emotional needs. And while government can't mandate 
love and nurture, it can get out of the way and eliminate barriers to 
opportunities for love and nurture. That is what the Workplace 
Flexibility Act does.
  In the subsequent weeks and months we will undoubtedly hear from some 
that what working families really need is more money. They need their 
overtime pay. That may well be true for some families, and this bill 
does not affect them in any way. But for other families, for families 
who want to choose to take time off with pay to attend a child's school 
play or PTA meeting, the issue is time, not money. The point is this--
the family should have the right to choose. Washington should not 
decide for them which priority is important for their family.
  I am one who believes in the working men and women of America and in 
their ability to know what is best for their families. It is time for 
Congress to give families what they want, and not what Congress thinks 
they need. It's time to give working families what every Federal 
employee has already, workplace flexibility.
  I ask unanimous consent that the text of the bill and a bill summary 
be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 624

       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 ``Workplace Flexibility Act''.

     SEC. 2. WORKPLACE FLEXIBILITY OPTIONS.

       (a) Compensatory Time Off.--Section 7 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 207) is amended by adding at 
     the end the following:
       ``(r)(1)(A) Except as provided in subparagraph (B), no 
     employee may be required under this subsection to receive 
     compensatory time off in lieu of monetary overtime 
     compensation. The acceptance of compensatory time off in lieu 
     of monetary overtime compensation may not be a condition of 
     employment or of working overtime.
       ``(B) In a case in which a valid collective bargaining 
     agreement exists between an employer and the labor 
     organization that has been certified or recognized as the 
     representative of the employees of the employer under 
     applicable law, an employee may only be required under this 
     subsection to receive compensatory time off in lieu of 
     monetary overtime compensation in accordance with the 
     agreement.
       ``(2)(A) An employee may receive, in accordance with this 
     subsection and in lieu of monetary overtime compensation, 
     compensatory time off at a rate not less than one and one-
     half hours for each hour of employment for which monetary 
     overtime compensation is required by this section.
       ``(B) In this subsection:
       ``(i) The term `employee' means an individual--
       ``(I) who is an employee (as defined in section 3);
       ``(II) who is not an employee of a public agency; and
       ``(III) to whom subsection (a) applies.
       ``(ii) The term `employer' does not include a public 
     agency.
       ``(3) An employer may provide compensatory time off to 
     employees under paragraph (2)(A) only pursuant to the 
     following:
       ``(A) The compensatory time off may be provided only in 
     accordance with--
       ``(i) applicable provisions of a collective bargaining 
     agreement between the employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees under applicable law; or
       ``(ii) in the case of an employee who is not represented by 
     a labor organization described in clause (i), a written 
     agreement arrived at between the employer and employee before 
     the performance of the work involved if the agreement or 
     understanding was entered into knowingly and voluntarily by

[[Page 4655]]

     such employee and was not a condition of employment.
       ``(B) The compensatory time off may only be provided to an 
     employee described in subparagraph (A)(ii) if such employee 
     has affirmed, in a written statement that is made, kept, and 
     preserved in accordance with section 11(c), that the employee 
     has chosen to receive compensatory time off in lieu of 
     monetary overtime compensation.
       ``(C) No employee may receive, or agree to receive, the 
     compensatory time off unless the employee has been employed 
     for at least 12 months by the employer, and for at least 
     1,250 hours of service with the employer during the previous 
     12-month period.
       ``(D) An employee shall be eligible to accrue compensatory 
     time off if such employee has not accrued compensatory time 
     off in excess of the limit applicable to the employee 
     prescribed by paragraph (4).
       ``(4)(A) An employee may accrue not more than 160 hours of 
     compensatory time off.
       ``(B) Not later than January 31 of each calendar year, the 
     employer of the employee shall provide monetary compensation 
     for any unused compensatory time off accrued during the 
     preceding calendar year that was not used prior to December 
     31 of the preceding calendar year at the rate prescribed by 
     paragraph (8). An employer may designate and communicate to 
     the employees of the employer a 12-month period other than 
     the calendar year, in which case the compensation shall be 
     provided not later than 31 days after the end of the 12-month 
     period.
       ``(C) The employer may provide monetary compensation for an 
     employee's unused compensatory time off in excess of 80 hours 
     at any time after providing the employee with at least 30 
     days' written notice. The compensation shall be provided at 
     the rate prescribed by paragraph (8).
       ``(5)(A) An employer that has adopted a policy offering 
     compensatory time off to employees may discontinue the policy 
     for employees described in paragraph (3)(A)(ii) after 
     providing 30 days' written notice to the employees who are 
     subject to an agreement or understanding described in 
     paragraph (3)(A)(ii).
       ``(B) An employee may withdraw an agreement or 
     understanding described in paragraph (3)(A)(ii) at any time, 
     by submitting a written notice of withdrawal to the employer 
     of the employee. An employee may also request in writing that 
     monetary compensation be provided, at any time, for all 
     compensatory time off accrued that has not been used. Within 
     30 days after receiving the written request, the employer 
     shall provide the employee the monetary compensation due in 
     accordance with paragraph (8).
       ``(6)(A)(i) An employer that provides compensatory time off 
     under paragraph (2) to an employee shall not directly or 
     indirectly intimidate, threaten, or coerce, or attempt to 
     intimidate, threaten, or coerce, any employee for the purpose 
     of--
       ``(I) interfering with the rights of the employee under 
     this subsection to request or not request compensatory time 
     off in lieu of payment of monetary overtime compensation for 
     overtime hours;
       ``(II) interfering with the rights of the employee to use 
     accrued compensatory time off in accordance with paragraph 
     (9); or
       ``(III) requiring the employee to use the compensatory time 
     off.
       ``(ii) In clause (i), the term `intimidate, threaten, or 
     coerce' has the meaning given the term in section 13A(c)(2).
       ``(B) An agreement or understanding that is entered into by 
     an employee and employer under paragraph (3)(A)(ii) shall 
     permit the employee to elect, for an applicable workweek--
       ``(i) the payment of monetary overtime compensation for the 
     workweek; or
       ``(ii) the accrual of compensatory time off in lieu of the 
     payment of monetary overtime compensation for the 
     workweek.''.
       (b) Remedies and Sanctions.--Section 16 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216) is amended by adding at 
     the end the following:
       ``(f)(1) In addition to any amount that an employer is 
     liable under subsection (b) for a violation of a provision of 
     section 7, an employer that violates section 7(r)(6)(A) shall 
     be liable to the employee affected in an amount equal to--
       ``(A) the product of--
       ``(i) the rate of compensation (determined in accordance 
     with section 7(r)(8)(A)); and
       ``(ii)(I) the number of hours of compensatory time off 
     involved in the violation that was initially accrued by the 
     employee; minus
       ``(II) the number of such hours used by the employee; and
       ``(B) as liquidated damages, the product of--
       ``(i) such rate of compensation; and
       ``(ii) the number of hours of compensatory time off 
     involved in the violation that was initially accrued by the 
     employee.
       ``(2) The employer shall be subject to such liability in 
     addition to any other remedy available for such violation 
     under this section or section 17, including a criminal 
     penalty under subsection (a) and a civil penalty under 
     subsection (e).''.
       (c) Calculations and Special Rules.--Section 7(r) of the 
     Fair Labor Standards Act of 1938 (29 U.S.C. 207(r)), as added 
     by subsection (a), is further amended by adding at the end 
     the following:
       ``(7) An employee who has accrued compensatory time off 
     authorized to be provided under paragraph (2) shall, upon the 
     voluntary or involuntary termination of employment, be paid 
     for the unused compensatory time off in accordance with 
     paragraph (8).
       ``(8)(A) If compensation is to be paid to an employee for 
     accrued compensatory time off, the compensation shall be paid 
     at a rate of compensation not less than--
       ``(i) the regular rate received by such employee when the 
     compensatory time off was earned; or
       ``(ii) the final regular rate received by such employee;

     whichever is higher.
       ``(B) Any payment owed to an employee under this subsection 
     for unused compensatory time off shall be considered unpaid 
     monetary overtime compensation.
       ``(9) An employee--
       ``(A) who has accrued compensatory time off authorized to 
     be provided under paragraph (2); and
       ``(B) who has requested the use of the accrued compensatory 
     time off;

     shall be permitted by the employer of the employee to use the 
     accrued compensatory time off within a reasonable period 
     after making the request if the use of the accrued 
     compensatory time off does not unduly disrupt the operations 
     of the employer.
       ``(10) The terms `monetary overtime compensation' and 
     `compensatory time off' shall have the meanings given the 
     terms `overtime compensation' and `compensatory time', 
     respectively, by subsection (o)(7).''.
       (d) Notice to Employees.--Not later than 30 days after the 
     date of enactment of this Act, the Secretary of Labor shall 
     revise the materials the Secretary provides, under 
     regulations contained in section 516.4 of title 29, Code of 
     Federal Regulations, to employers for purposes of a notice 
     explaining the Fair Labor Standards Act of 1938 (29 U.S.C. 
     201 et seq.) to employees so that the notice reflects the 
     amendments made to the Act by this section.

     SEC. 3. BIWEEKLY WORK PROGRAMS.

       (a) In General.--The Fair Labor Standards Act of 1938 is 
     amended by inserting after section 13 (29 U.S.C. 213) the 
     following:

     ``SEC. 13A. BIWEEKLY WORK PROGRAMS.

       ``(a) Voluntary Participation.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     employee may be required to participate in a program 
     described in this section. Participation in a program 
     described in this section may not be a condition of 
     employment.
       ``(2) Collective bargaining agreement.--In a case in which 
     a valid collective bargaining agreement exists between an 
     employer and the labor organization that has been certified 
     or recognized as the representative of the employees of the 
     employer under applicable law, an employee may only be 
     required to participate in such a program in accordance with 
     the agreement.
       ``(b) Biweekly Work Programs.--
       ``(1) In general.--Notwithstanding section 7, an employer 
     may establish biweekly work programs that allow the use of a 
     biweekly work schedule--
       ``(A) that consists of a basic work requirement of not more 
     than 80 hours, over a 2-week period; and
       ``(B) in which more than 40 hours of the work requirement 
     may occur in a week of the period, except that no more than 
     10 hours may be shifted between the 2 weeks involved.
       ``(2) Conditions.--An employer may carry out a biweekly 
     work program described in paragraph (1) for employees only 
     pursuant to the following:
       ``(A) Agreement or understanding.--The program may be 
     carried out only in accordance with--
       ``(i) applicable provisions of a collective bargaining 
     agreement between the employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees under applicable law; or
       ``(ii) in the case of an employee who is not represented by 
     a labor organization described in clause (i), a written 
     agreement arrived at between the employer and employee before 
     the performance of the work involved if the agreement or 
     understanding was entered into knowingly and voluntarily by 
     such employee and was not a condition of employment.
       ``(B) Statement.--The program shall apply to an employee 
     described in subparagraph (A)(ii) if such employee has 
     affirmed, in a written statement that is made, kept, and 
     preserved in accordance with section 11(c), that the employee 
     has chosen to participate in the program.
       ``(C) Minimum service.--No employee may participate, or 
     agree to participate, in the program unless the employee has 
     been employed for at least 12 months by the employer, and for 
     at least 1,250 hours of service with the employer during the 
     previous 12-month period.
       ``(3) Compensation for hours in schedule.--Notwithstanding 
     section 7, in the case of an employee participating in such a 
     biweekly work program, the employee shall be compensated for 
     each hour in such a biweekly work schedule at a rate not less 
     than

[[Page 4656]]

     the regular rate at which the employee is employed.
       ``(4) Computation of overtime.--All hours worked by the 
     employee in excess of such a biweekly work schedule or in 
     excess of 80 hours in the 2-week period, that are requested 
     in advance by the employer, shall be overtime hours.
       ``(5) Overtime compensation provision.--The employee shall 
     be compensated for each such overtime hour at a rate not less 
     than one and one-half times the regular rate at which the 
     employee is employed, in accordance with section 7(a)(1), or 
     receive compensatory time off in accordance with section 7(r) 
     for each such overtime hour.
       ``(6) Discontinuance of program or withdrawal.--
       ``(A) Discontinuance of program.--An employer that has 
     established a biweekly work program under paragraph (1) may 
     discontinue the program for employees described in paragraph 
     (2)(A)(ii) after providing 30 days' written notice to the 
     employees who are subject to an agreement or understanding 
     described in paragraph (2)(A)(ii).
       ``(B) Withdrawal.--An employee may withdraw an agreement or 
     understanding described in paragraph (2)(A)(ii) at the end of 
     any 2-week period described in paragraph (1)(A), by 
     submitting a written notice of withdrawal to the employer of 
     the employee.
       ``(c) Prohibition of Coercion.--
       ``(1) In general.--An employer shall not directly or 
     indirectly intimidate, threaten, or coerce, or attempt to 
     intimidate, threaten, or coerce, any employee for the purpose 
     of interfering with the rights of the employee under this 
     section to elect or not to elect to work a biweekly work 
     schedule.
       ``(2) Definition.--In paragraph (1), the term `intimidate, 
     threaten, or coerce' includes promising to confer or 
     conferring any benefit (such as appointment, promotion, or 
     compensation) or effecting or threatening to effect any 
     reprisal (such as deprivation of appointment, promotion, or 
     compensation).
       ``(d) Definitions.--In this section:
       ``(1) Basic work requirement.--The term `basic work 
     requirement' means the number of hours, excluding overtime 
     hours, that an employee is required to work or is required to 
     account for by leave or otherwise.
       ``(2) Collective bargaining.--The term `collective 
     bargaining' means the performance of the mutual obligation of 
     the representative of an employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees of the employer under applicable law to meet 
     at reasonable times and to consult and bargain in a good-
     faith effort to reach agreement with respect to the 
     conditions of employment affecting such employees and to 
     execute, if requested by either party, a written document 
     incorporating any collective bargaining agreement reached, 
     but the obligation referred to in this paragraph shall not 
     compel either party to agree to a proposal or to make a 
     concession.
       ``(3) Collective bargaining agreement.--The term 
     `collective bargaining agreement' means an agreement entered 
     into as a result of collective bargaining.
       ``(4) Employee.--The term `employee' means an individual--
       ``(A) who is an employee (as defined in section 3);
       ``(B) who is not an employee of a public agency; and
       ``(C) to whom section 7(a) applies.
       ``(5) Employer.--The term `employer' does not include a 
     public agency.
       ``(6) Overtime hours.--The term `overtime hours', when used 
     with respect to biweekly work programs under subsection (b), 
     means all hours worked in excess of the biweekly work 
     schedule involved or in excess of 80 hours in the 2-week 
     period involved, that are requested in advance by an 
     employer.
       ``(7) Regular rate.--The term `regular rate' has the 
     meaning given the term in section 7(e).''.
       (b) Remedies.--
       (1) Prohibitions.--Section 15(a)(3) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
       (A) by inserting ``(A)'' after ``(3)'';
       (B) by adding ``or'' after the semicolon; and
       (C) by adding at the end the following:
       ``(B) to violate any of the provisions of section 13A;''.
       (2) Remedies and sanctions.--Section 16 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216), as amended in section 
     2(b), is further amended--
       (A) in subsection (c)--
       (i) in the first sentence--

       (I) by inserting after ``7 of this Act'' the following: ``, 
     or of the appropriate legal or monetary equitable relief 
     owing to any employee or employees under section 13A''; and
       (II) by striking ``wages or unpaid overtime compensation 
     and'' and inserting ``wages, unpaid overtime compensation, or 
     legal or monetary equitable relief, as appropriate, and'';

       (ii) in the second sentence, by striking ``wages or 
     overtime compensation and'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, and''; and
       (iii) in the third sentence--

       (I) by inserting after ``first sentence of such 
     subsection'' the following: ``, or the second sentence of 
     such subsection in the event of a violation of section 
     13A,''; and
       (II) by striking ``wages or unpaid overtime compensation 
     under sections 6 and 7 or'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, or'';

       (B) in subsection (e)--
       (i) in the second sentence, by striking ``section 6 or 7'' 
     and inserting ``section 6, 7, or 13A''; and
       (ii) in the fourth sentence, in paragraph (3), by striking 
     ``15(a)(4) or'' and inserting ``15(a)(4), a violation of 
     section 15(a)(3)(B), or''; and
       (C) by adding at the end the following:
       ``(g)(1) In addition to any amount that an employer is 
     liable under the second sentence of subsection (b) for a 
     violation of a provision of section 13A, an employer that 
     violates section 13A(c) shall be liable to the employee 
     affected for an additional sum equal to that amount.
       ``(2) The employer shall be subject to such liability in 
     addition to any other remedy available for such violation 
     under this section or section 17.''.
       (c) Notice to Employees.--Not later than 30 days after the 
     date of enactment of this Act, the Secretary of Labor shall 
     revise the materials the Secretary provides, under 
     regulations contained in section 516.4 of title 29, Code of 
     Federal Regulations, to employers for purposes of a notice 
     explaining the Fair Labor Standards Act of 1938 (29 U.S.C. 
     201 et seq.) to employees so that the notice reflects the 
     amendments made to the Act by this section.

     SEC. 4. PROTECTIONS FOR CLAIMS RELATING TO COMPENSATORY TIME 
                   OFF IN BANKRUPTCY PROCEEDINGS.

       Section 507(a)(3) of title 11, United States Code, is 
     amended--
       (1) by striking ``for--'' and inserting the following: ``on 
     the condition that all accrued compensatory time off (as 
     defined in section 7 of the Fair Labor Standards Act of 1938 
     (29 U.S.C. 207)) shall be deemed to have been earned within 
     90 days before the date of the filing of the petition or the 
     date of the cessation of the debtor's business, whichever 
     occurs first, for--''; and
       (2) in subparagraph (A), by inserting before the semicolon 
     the following: ``or the value of unused, accrued compensatory 
     time off (as defined in section 7 of the Fair Labor Standards 
     Act of 1938 (29 U.S.C. 207))''.

     SEC. 5. CONGRESSIONAL COVERAGE.

       Section 203 of the Congressional Accountability Act of 1995 
     (2 U.S.C. 1313) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and section 12(c)'' and 
     inserting ``section 12(c), and section 13A''; and
       (B) by striking paragraph (3);
       (2) in subsection (b)--
       (A) by striking ``The remedy'' and inserting the following:
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the remedy''; and
       (B) by adding at the end the following:
       ``(2) Compensatory time.--The remedy for a violation of 
     subsection (a) relating to the requirements of section 7(r) 
     of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(r)) 
     shall be such remedy as would be appropriate if awarded under 
     subsection (b) or (f) of section 16 of such Act (29 U.S.C. 
     216).
       ``(3) Biweekly work programs.--The remedy for a violation 
     of subsection (a) relating to the requirements of section 13A 
     of the Fair Labor Standards Act of 1938 shall be such remedy 
     as would be appropriate if awarded under sections 16 and 17 
     of such Act (29 U.S.C. 216, 217) for such a violation.''; and
       (3) in subsection (c), by striking paragraph (4).

     SEC. 6. TERMINATION.

       The authority provided by this Act and the amendments made 
     by this Act terminates 5 years after the date of enactment of 
     this Act.
                                  ____


                Summary of the Workplace Flexibility Act


          Section 2, Workplace Flexibility Options: Comp-time

  Gives employers and employees, who have been employed for at least 12 
months by the employer, and for at least 1,250 hours of service with 
the employer during the previous 12-month period, the option of comp 
time in lieu of monetary overtime compensation, at the rate of 1\1/2\ 
hours of comp time for each hour of overtime worked.
  Where a collective bargaining agreement is in place, an employer 
would have to work within that context in shaping any comp time 
program.
  Where there is no collective bargaining agreement in place, the 
employer and the individual employee would be allowed to enter into 
``an agreement or understanding'' with respect to comp time. Such an 
agreement must be completely voluntary and must be arrived at before 
the performance of the work. The agreement must be affirmed in writing.
  The employer is prohibited from directly or indirectly intimidating, 
threatening, coercing or attempting to intimidate, threaten or coerce 
any employee into agreeing to the comp time

[[Page 4657]]

option nor may acceptance of comp time be a condition of employment or 
of working overtime.
  Employees may not accrue more than 160 hours of comp time. If unused, 
such hours must be cashed out at the end of the preceding calendar year 
or not later than 31 days after the end of an alternative 12-month 
period designated by the employer. An employer may, upon 30 days 
written notice to the employee, cash-out all hours banked in excess of 
80. Employees who terminate their employment either voluntarily or 
involuntarily must be paid for any unused comp time.
  An employee may withdraw an agreement or understanding at any time by 
submitting a written notice of withdrawal to the employer and an 
employer must, within 30 days after receiving the written request, 
provide the employee the monetary compensation due.
  Comp time may be used, upon request by a worker within a reasonable 
period after making the request if it does not unduly disrupt the 
operations of the employer.


             Section 3, Bi-Weekly Work Programs: Flex- time

  Gives employers and employees the option of a 2-week 80 hour work 
period during which, without incurring an overtime penalty, up to 10 
hours could be ``flexed'' between the two week period. Employees could, 
if agreed upon by their employers, choose to work 2 weeks of 40 hours 
each, 50 hours in one week and 30 in another, etc. Employers would not 
be required to pay overtime rates (time-and-a-half) until 80 hours had 
been worked in 2 calendar weeks. For hours worked in excess of 80 in a 
2 week period, a worker would have to be compensated either in cash or 
in paid comp time, if the employer has agreed to a comp time option, 
each at not less than a time-and-a-half basis.
  Like comp time, this program is completely voluntary and may not 
affect collective bargaining agreements that are in force.
  Congress would be covered by both provisions which sunset after 5 
years.
  Mrs. HUTCHISON. Mr. President, I rise today to join with my 
colleague, Senator Gregg from New Hampshire to introduce the Workplace 
Flexibility Act to give America's families the kinds of choices and 
options they demand and deserve.
  When I speak with hourly wage workers in my home state of Texas, and 
I ask them how they are coping with the growing and competing demands 
of work and family, I hear many different answers. I hear stories of 
parents working days and nights to pay the bills and maybe even get a 
little bit ahead.
  Today we introduce legislation to deal with some of the workplace 
problems of Americans who are paid by the hour. Every day, millions of 
people in this country must punch a time clock, and they never seem to 
have enough time they need to get things done, much less the time they 
would like to have to spend on home and family. Despite the fact that 
hourly wage earners have the greatest time and money pressures on them, 
the federal government gives them the least amount of flexibility in 
scheduling their work week.
  While salaried, or so-called ``exempt'' workers can bargain with 
their employers to work additional hours in one week in order to take 
time off later, hourly or ``non-exempt'' workers do not have that 
privilege. The Federal Fair Labor Standards Act prohibits them from 
benefitting from the additional scheduling options that salaried 
workers enjoy and that Congress gave to all federal employees back in 
1978.
  It is time to end this inequity in our nation's labor laws. It is 
time to give all American workers the ability to choose work schedules 
to fit their own home and family needs.
  The Workplace Flexibility Act will do just that. The bill restores 
fairness in workplace scheduling by giving hourly wage earners three 
new scheduling and overtime options.
  First, where an employer requires an employee to work overtime, any 
hours in excess of 40 in a week, the bill would give that employee the 
option of choosing paid time-and-a-half off in lieu of time and a half 
pay. So, for example, an employee who works 10 hours of overtime would 
have earned 15 hours of paid time off for later use. This is called 
``comp time.''
  Second, for those employees who do not typically work overtime, 
which, by the way, encompasses over 90 percent of the women who are now 
paid by the hour, the bill would allow employees to choose to work more 
than 40 hours in one week in exchange for the same amount of paid time 
off in another week. This is called ``flex time.''
  Finally, the bill will give employees and employers the option of 
establishing regular two week schedules to allow an employee to work 
additional hours in week one in order to take paid time off in week 
two. For example, many federal employees enjoy working 9-hour days and 
taking every alternate Friday off, with pay, for a total at the end of 
two weeks of 80 hours. I think it is only right to give private sector 
workers the flexibility that these federal employees now enjoy.
  Polls show that Americans overwhelmingly support being given these 
added options. Three fourths of federal employees say comp time and 
flextime have given them more time to spend with their families and 
have improved their morale and even their productivity. President 
Clinton's own polling firm found recently that the same proportion of 
Americans, 75 percent, favor expanding these options to all private 
sector employees. It is easy to understand why.
  According to the Bureau of Labor Statistics, both mother and father 
work outside the home in almost two thirds of American households. 
Moreover, 75 percent of mothers with school age children are now in the 
workforce, up dramatically in recent years. While the causes for this 
are many, including expanded work opportunities for women and a heavy 
tax burden on working families, the results are clear: fewer hours are 
spent by mothers and fathers with their children and with each other. 
This shrinking window of family time is weakening the essential family 
bond that is the bedrock of our strength as a nation.
  Not only will our bill make it easier for parents to spend more 
quality time at home or engaged in personal or community activities, it 
will do so without a hit to the monthly bottom line. Since comp time 
and flex time are paid, workers will receive the same amount of money 
as they would if they did not have these options. The only difference 
is that this legislation will allow workers the flexibility of taking a 
day, a week, or even a month off once they have accumulated time in 
their bank.
  Let me make one point very clear: the Workplace Flexibility Act 
expands, but does not replace the existing law requiring overtime pay 
for overtime work. For those employees required to work overtime, they 
will always have the option of receiving overtime pay at the standard 
time-and-a-half rate. This bill simply affords the employee additional 
options, upon the mutual agreement of the employee and employer. An 
employer who violates this or any other provision of our labor laws 
would be subject to severe civil fines and possibly even prison. In 
fact, this bill heightens those protections by providing for quadruple 
damages against an employer who violates the law.
  But rather than foster antagonism between labor and management, these 
added scheduling options have been proven both in this country and 
abroad to encourage greater cooperation between employees and their 
employers. Flexible scheduling has created win-win situations for 
millions of salaried and federal workers and their employers. For the 
first time in 50 years, America's blue collar working men and women 
will be empowered to help determine the course of their work week. And 
thereby, workers will be given greater control over the most precious 
asset in their lives and in the lives of their families: time.
  I urge my colleagues to respond to the growing need for workplace 
flexibility by supporting the Workplace Flexibility Act.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. Specter, Mr. Daschle, Mr. Smith 
        of Oregon, Mr. Leahy, Ms. Collins, Mr. Leiberman, Ms. Snowe, 
        Mr. Wyden, Mr.

[[Page 4658]]

        Jeffords, Mr. Schumer, Mr. Chafee, Mr. Akaka, Mr. Ensign, Mr. 
        Bayh, Mr. Biden, Mr. Bingaman, Mrs. Boxer, Mr. Breaux, Ms. 
        Cantwell, Mrs. Carnahan, Mr. Carper, Mr. Cleland, Mrs. Clinton, 
        Mr. Corzine, Mr. Dayton, Mr. Dodd, Mr. Dorgan, Mr. Durbin, Mr. 
        Edwards, Mrs. Feinstein, Mr. Graham, Mr. Harkin, Mr. Inouye, 
        Mr. Johnson, Mr. Kerry, Ms. Landrieu, Mr. Levin, Mrs. Lincoln, 
        Ms. Mikulski, Mr. Miller, Mrs. Murray, Mr. Nelson of Nebraska, 
        Mr. Nelson of Florida, Mr. Reed, Mr. Reid, Mr. Rockefeller, Mr. 
        Sarbanes, Ms. Stabenow, Mr. Torricelli, and Mr. Wellstone):
  S. 625. A bill to provide Federal assistance to States and local 
jurisdictions to prosecute hate crimes, and for other purposes; to the 
Committee on the Judiciary.
  Mr. KENNEDY, Mr. President, today's introduction of the bipartisan 
Local Law Enforcement Act, with 50 original sponsors in the Senate, is 
the first step toward passing this important legislation this year. 
This bill has the support of a wide range of law enforcement, 
religious, and civil rights organizations.
  Although America experienced a significant drop in violent crime 
during the 1990's, the number of hate crimes has continued to grow. In 
fact, according to FBI statistics, in 1999 there were 7876 reported 
hate crimes committed in the United States. That's over 20 hate crimes 
per day, every day.
  Hate crimes are a national disgrace, an attack on everything this 
country stands for. They send a poisonous message that some Americans 
are second class citizens who deserve to be victimized solely because 
of their race, their ethnic background, their religion, their sexual 
orientation, their gender or their disability. These senseless crimes 
have a destructive and devastating impact not only on individual 
victims, but entire communities. If America is to live up to its 
founding ideals of liberty and justice for all, combating hate crimes 
must be a national priority.
  Yet for too long, the Federal government has been forced to stand on 
the sidelines in the fight against these senseless acts of hate and 
violence. The bill we are introducing today will change that by giving 
the Justice Department greater ability to investigate and prosecute 
these crimes, and to help the states do so as well.
  We look forward to bringing this legislation to the Senate floor for 
a vote in the near future.
  Mr. SMITH of Oregon. Mr. President, I rise today to introduce with 
Senator Kennedy the Local Law Enforcement Act of 2001, legislation that 
would add new categories to current hate crimes law. I want to keep my 
remarks brief, so I speak to you from the heart about hate crimes.
  Many of you know I am a Republican, a conservative man of faith from 
a religious minority. I have known firsthand persecution and 
discrimination because of my faith. As a member of the Senate Foreign 
Relations Committee, I have taken great interest in religious freedom 
and fighting anti-Semitism abroad. I found that all of my colleagues 
have joined me in that goal in many ways. We have all asked other 
countries to stop hate, to stop ethnic violence and persecution of 
minorities. Today, I ask every Senator to take the same stand in our 
own country.
  If it were easy to speak out against hate thousands of miles away, 
then it must be easy to speak out against hate in your own backyard. 
Backyards in Wyoming--where Matthew Shepard was brutally beaten and 
left to die tied to a cattle fence off a lonely road. Backyards in 
Texas, where James Byrd, Jr. was dragged to death behind a pick-up 
truck. Backyards in Virginia, where Roanoke native Danny Lee Overstreet 
was brutally shot down in a hate crime last fall. Backyards in Alabama, 
where Jack Gaither was bludgeoned to death and set on fire. And 
backyards in Oregon, my state, where two women, Roxanne Ellis and 
Michelle Abdill of Medford, were killed in late 1995 because of their 
sexual orientation.
  This hate crimes legislation sends a signal that violence of any kind 
is unacceptable. I look to my party and look for inclusion--a big tent 
approach to this issue. I hope that the President can join in this 
effort, I believe that given the opportunity, the White House can 
participate in this effort and play a significant role in the outcome. 
Further, I am committed to making sure that partisan rhetoric stays out 
of this issue and together we can work on both sides of the aisle to 
make this legislation public law. I fear any strain of hate or 
homophobia, any isolationism or xenophobia in politics today, and I 
believe that all my colleagues share this fear. Taking a stand against 
hate crimes isn't a liberal or a conservative issue--it's something we 
should all do.
  I believe that government's first duty is to defend its citizens, to 
defend them against the harms that come out of hate, to defend them 
regardless of their status, be they female, disabled or gay. The Local 
Law Enforcement Enhancement Act of 2001 is now a symbol that can become 
substance. By changing this law we can change hearts and minds as well.
  The law is a teacher and we should teach our fellow citizens that all 
crime is hateful. But we can also teach that some crime is so odious 
that an extra measure of prosecution is demanded by us, so that it will 
never again be repeated among us.
  Mrs. FEINSTEIN. Mr. President, I join with my colleagues in 
expressing my strong support for the Local Law Enforcement Act of 2001, 
legislation of which I am an original cosponsor.
  Popularly known as the ``Hate Crimes Prevention Act,'' this 
legislation would expand current federal protections against hate 
crimes based on race, religion, and national origin; amend the criminal 
code to cover hate crimes based on gender, sexual orientation, and 
disability; authorize grants for State and local programs designed to 
combat and prevent hate crimes; and enable the federal government to 
assist State and local law enforcement in investigating and prosecuting 
hate crimes.
  While past efforts to enact this legislation have received strong 
bipartisan support, we have not been able to get it to the President's 
desk for his consideration. We must now work to ensure that this 
legislation is not simply supported, but actually passed and signed 
into law by the President.
  This important legislation would enhance current hate crimes law and 
enable the federal government to offer assistance to states and 
localities in investigating and prosecuting bias-motivated crimes. Even 
with the strides we have made in combating hate crimes thus far, these 
crimes are still frequently under-reported and therefore go 
unprosecuted.
  In California, I have seen, first-hand, the devastating impact these 
crimes have on victims, their families and their communities. Hate 
crimes divide neighborhoods and breed a sense of mistrust and fear 
within communities. This is why I have long supported legislation aimed 
at protecting citizens from crimes based on races, ethnicity, religion, 
gender, disability, or sexual orientation.
  Prior to 1990, while we knew that hate crimes existed, we had no 
tools to measure the number of instances in which such crimes were 
committed. In 1990, Congress enacted the Hate Crimes Statistics Act. 
Because of this law, we are now able to quantify the extent of the 
problem. What we found was disturbing. For the first time, data was 
collected and analyzed on the incidence of hate crimes. In 1991, the 
first year after the Act took effect, 4,588 hate crimes were reported 
nationwide. In 1998, the last year for which we have statistics, that 
number rose to 7,755. These statistics provide federal and state law 
enforcement officials the tools to recognize the problems particular to 
their communities and have encouraged many to come up with solutions.
  In 1993, I sponsored the Hate Crimes Sentencing Enhancement Act of 
1993, which was subsequently signed into law as part of the Violent 
Crime Control and Law Enforcement Act of 1994. This act increased 
penalties for hate

[[Page 4659]]

crimes targeting individuals because of their race, color, religion, 
national origin, gender, disability or sexual orientation.
  While current hate crime laws help us better understand the problem 
and penalize those who would resort to such violent acts, these laws do 
not extend to the thousands of people who are victimized because of 
their gender, sexual orientation or disability. Nor are they broad 
enough to help those who were not engaging in such federally protected 
activities as attending school, or voting, when they were victimized.
  In New Jersey, for example, a mentally disabled man was tortured by 
eight different people at a party. The man was burned with cigarettes, 
beaten, choked, and then left alone in the wilderness. Investigators 
found that this man was tortured only because of his disability. This 
was the third time this man had been attacked at a party.
  Just recently, my staff met with a constituent who is a teacher at a 
Beverly Hills high school. The teacher expressed concern about the 
safety of gay students, many of whom had been targeted and attacked by 
other students on account of their sexual orientation. She felt that 
teachers like herself did all they could to protect the students while 
they were on school property. She feared for their safety, however, 
once the students were off school grounds. Even within the school, the 
teacher explained, some officials did little to create an environment 
of tolerance and mutual respect for the students. As a result, the 
bias-motivated acts committed against them often went unreported, 
whether they took place in the school or within their communities.
  My constituent's appeal for help on behalf of her young students 
amplifies the need to send a strong message of mutual tolerance and 
respect to our youngsters. Nearly two-thirds of these crimes are 
committed by our nation's youth and young adults. In many ways, 
reinforcing the strength of our diverse nation must begin with our 
youth.
  As these stories illustrate, the perpetrators of hate crimes have no 
respect for boundaries. They are neither confined to any one region of 
the country, nor any one age group. The perpetrators of these crimes 
target individuals not because of what the victims have, or what they 
have done, but for who they are. Hate crimes are not like other crimes 
of violence. Their impact is pervasive.
  Opponents of hate crimes legislation argue that these crimes are no 
different from any other crime; that they should be treated like other 
crimes of violence. Research by the American Psychological Association, 
APA, suggest otherwise. According to the APA, hate crime victims and 
their communities are often left with psychological wounds that run 
deeper and take significantly longer to heal than the wounds of victims 
of non-bias related crimes.
  Much like victims of non-bias related crimes, victims of hate crimes 
are likely to exhibit symptoms of depression, post-traumatic stress 
disorder, anxiety, high levels of anger, and a decreased sense of 
control. Unlike victims of non-bias related crimes, however, hate crime 
victims experience psychological after-effects at a much higher level. 
According to the APA, hate crime victims need ``as much as five years 
to overcome the emotional distress of the incident,'' compared with 
``victims of non-bias crimes who experience a drop off in crime-related 
psychological problems within two years of the crime.'' The financial 
costs for mental health and medical treatment following an attack only 
add to the psychological stress of the victim.
  Hate crimes pose a very real threat to the social health of the 
community. Individuals who live in communities where hate crimes have 
occurred often experience an increased sense of fear and intimidation. 
They also tend to feel a heightened sense of vulnerability and are much 
less likely to report such crimes should they occur again, for fear of 
retaliation. Hate crimes also breed mistrust within the community. 
Members of the victimized groups are likely to believe that law 
enforcement agencies are biased against their group and, that when 
needed, the law enforcement community will not respond.
  In essence, hate crimes have been shown to produce deep psychological 
wounds in the victim. They engender a sense of disunity and division 
within the community, which undermines the basic tenets on which this 
nation was founded. As a country that prides itself on its diversity, 
our nation cannot continue to withstand these acts of hatred and 
intolerance. No individual or group should be targeted for violence and 
no such act of violence should go unpunished.
  No American should have to live in fear because of his or her 
perceived race, sexual orientation, ethnicity or disability. No 
American should be afraid to walk down the street for fear of a gender-
motivated attack. No American should be deterred by intimidation from 
living in the home of his or her choice. And certainly, no American 
should be deterred from reporting a hate-based crime because they are 
afraid that the police lack the will or the resources necessary to 
protect them.
  This legislation is not only overdue, it is necessary for the safety 
and well being of millions of Americans. It is necessary for our 
National unity.
  Certainly, none of us in this body would condone an act of brutality 
based on an individual's race, religion, sexual orientation, 
disability, ethnicity or gender. None of us would be willing to send 
the message that today, basic civil rights protections do not extend to 
every American, but only to a few and under certain circumstances.
  By introducing this legislation today, we are sending a signal that 
we are unwilling to turn a blind eye to this epidemic of hate that 
threatens to envelop our Nation. I urge my colleagues to join in this 
message by supporting the enactment of ``The Local Law Enforcement 
Enhancement Act of 2001.''
                                 ______
                                 
      By Mr. JEFFORDS (for himself and Mr. Baucus):
  S. 626. A bill to amend the Internal Revenue Code of 1986 to 
permanently extend the work opportunity credit and the welfare-to-work 
credit, and for other purposes; to the Committee on Finance.
  Mr. JEFFORDS. Mr. President, today I am introducing the Work 
Opportunity Improvement Act of 2001, which will permanently extend both 
the work opportunity tax credit and the welfare-to-work tax credit. The 
bill will also modify eligibility criteria for the work opportunity tax 
credit, to strengthen efforts to help fathers of children on welfare 
find work. Over the past five years, these tax credits have played a 
crucial role in helping 1.5 million low-skilled, undereducated persons 
dependent on public assistance enter the work force.
  The work opportunity tax credit was first enacted in 1996, to provide 
employers with financial resources to recruit, hire, and retain 
individuals who have significant problems finding and keeping a job. 
The welfare-to-work tax credit, serving a similar purpose, was enacted 
the next year. Traditionally, employers had been reluctant to hire 
people coming off the welfare rolls, both because they tended to have 
less education and experience than other job candidates, and because 
welfare dependence was seen as fostering a poor self-image and work 
habits. These tax credits, however, have demonstrated that employers 
can be enticed to overcome their resistance to hiring less skilled, 
economically dependent individuals. No other incentive or training 
program has been nearly as successful as these tax credits in 
encouraging employers to change their hiring practices.
  Over the past five years, government and employers have developed a 
partnership that has led to significant changes in hiring practices. 
Many employers have established outreach and recruitment programs to 
identify and target individuals whom employers could hire under these 
tax credit programs. States have made the tax credit programs more 
employer-friendly by continual improvements in the way the programs are 
administered. Still, we repeatedly hear both from employers

[[Page 4660]]

and State job service agencies administering the programs that 
continued uncertainty about the programs' future impedes expanded 
participation and improvements in program administration. Making the 
work opportunity and welfare-to-work tax credits permanent would induce 
employers to expand their recruitment efforts and encourage States to 
commit more time and effort to further improve the programs. This, in 
turn, would mean that more individuals would be helped to make the jump 
from welfare dependency to work. Because these programs have proven so 
successful over the past five years, I believe they should be made 
permanent and am today introducing a bill to achieve this end.
  In addition to making these two tax provisions permanent, my bill 
will address an oversight. Currently, the work opportunity tax credit 
gives employers an incentive to hire individuals on food stamps between 
ages 18 and 24. No sound policy reason exists for not extending the tax 
credit's eligibility criteria to people on food stamps over age 25. 
Lifting the work opportunity tax credit food stamp age ceiling would 
mean that many more fathers of children on welfare could be hired under 
the credit. These individuals often face significant barriers to 
finding work. Increasing the age ceiling for food stamp recipients is 
consistent with the tax credit's underlying objectives, as many food 
stamp households include adults who are not working. Moreover, over 90 
percent of those on food stamps live below the poverty line. My bill 
will include among those eligible for the work opportunity tax credit 
persons in households receiving food stamps, as long as they are 50 
years old or younger. I believe that this will have the effect of 
making the tax credit available with respect to fathers of children on 
welfare who aren't otherwise eligible.
  I urge my colleagues to support and co-sponsor this bill.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Graham):
  S. 627. A bill to amend the Internal Revenue Code of 1986 to allow 
individuals a deduction for qualified long-term care insurance 
premiums, use of such insurance under cafeteria plans and flexible 
spending arrangements, and a credit for individuals with long-term care 
needs; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I rise today to introduce the Long-Term 
Care and Retirement Security Act. This legislation, which I sponsored 
in the 106th Congress with my distinguished colleague from Florida, 
Senator Bob Graham, would ease the tremendous cost of long-term care.
  The bill that Senator Graham and I are re-introducing today would 
allow individuals a tax deduction for the cost of long-term care 
insurance premiums. Increasingly, Americans are interested in private 
long-term care insurance to pay for nursing home stays, assisted 
living, home health aides, and other services. However, most people 
find the policies unaffordable. The younger the person, the lower the 
insurance premium, yet most people aren't ready to buy a policy until 
retirement. A deduction would encourage more people to buy long-term 
care insurance.
  Our proposal also would give individuals or their care givers a 
$3,000 tax credit to help cover their long-term care expenses. This 
would apply to those who have been certified by a doctor as needing 
help with at least three activities of daily living, such as eating, 
bathing or dressing. This credit would help care givers pay for medical 
supplies, nursing care and any other expenses of caring for family 
members with disabilities.
  The Van Zee family of Otley, Iowa, typifies many families who would 
benefit from his legislation. Renee Van Zee at 55 years old has early 
onset Alzheimer's disease. Three years after her diagnosis, she can't 
feed, bathe or dress herself. Her daughter, Leanna, and her husband, 
Albert, are pulling out all the stops to keep Mrs. Van Zee out of a 
nursing home. They care for her full-time. They've found some services 
through Medicaid and Medicare and received a donated hospital bed. Even 
so, caring for Mrs. Van Zee is difficult. She can't be left alone at 
any time. The family's network of services is piecemeal, like that of 
many families in similar straits. Those services could change with any 
change in their circumstances. The family bears considerable out-of-
pocket expenses for Mrs. Van Zee's nutritional supplements. The 
supplements cost $4.96 for a four-pack of cans. Mrs. Van Zee consumes 
two or three cans a day. It's obvious how this situation affects a 
family's finances. Working adults quit their jobs to care for a loved 
one, and take on a host of new expenses at the same time.
  The Long-Term Care and Retirement Security Act would help the 22 
million family caregivers like the Van Zees. A $3,000 tax credit would 
help to pay for Mrs. Van Zee's nutritional supplements or hire an extra 
nurse. The legislation also would help families like the Van Zees buy 
long-term care insurance. Someone like Mrs. Van Zee could have bought 
herself insurance years ago, had it been an affordable option for her.
  As it did last year, the bill that Senator Graham and I are 
introducing today has been endorsed by both the AARP and the Health 
Insurance Association of America. A companion bill sponsored by 
Representatives Nancy Johnson, Karen Thurman, and Earl Pomeroy is 
pending in the House of Representatives.
  An aging nation has no time to waste in preparing for long-term care, 
and the need to help people afford long-term care is more pressing than 
ever. I look forward to working with Senator Graham and our colleagues 
in the Senate to get our bill passed into law as soon as possible.
                                 ______
                                 
      By Mr. BURNS (for himself, Mr. Wyden, Mr. Lieberman, Ms. 
        Landrieu, Mr. Torricelli, Mr. Breaux, and Mr. Murkowski):
  S. 630. A bill to prohibit senders of unsolicited commercial 
electronic mail from disguising the source of their messages, to give 
consumers the choice to cease receiving a sender's unsolicited 
commercial electronic mail messages, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. BURNS. 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. 630

       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 ``Controlling the Assault of 
     Non-Solicited Pornography and Marketing Act of 2001'', or the 
     ''CAN SPAM Act of 2001''.

     SEC. 2. CONGRESSIONAL FINDINGS AND POLICY.

       (a) Findings.--The Congress finds the following:
       (1) There is a right of free speech on the Internet.
       (2) The Internet has increasingly become a critical mode of 
     global communication and now presents unprecedented 
     opportunities for the development and growth of global 
     commerce and an integrated worldwide economy. In order for 
     global commerce on the Internet to reach its full potential, 
     individuals and entities, using the Internet and other online 
     services should be prevented from engaging in activities that 
     prevent other users and Internet service providers from 
     having a reasonably predictable, efficient, and economical 
     online experience.
       (3) Unsolicited commercial electronic mail can be a 
     mechanism through which businesses advertise and attract 
     customers in the online environment.
       (4) The receipt of unsolicited commercial electronic mail 
     may result in costs to recipients who cannot refuse to accept 
     such mail and who incur costs for the storage of such mail, 
     or for the time spent accessing, reviewing, and discarding 
     such mail, or for both.
       (5) Unsolicited commercial electronic mail may impose 
     significant monetary costs on providers of Internet access 
     services, businesses, and educational and nonprofit 
     institutions that carry and receive such mail, as there is a 
     finite volume of mail that such providers, businesses, and 
     institutions can handle without further investment. The 
     sending of such mail is increasingly and negatively affecting 
     the quality of service provided to customers of Internet 
     access service, and shifting costs from the sender of the 
     advertisement to the provider of Internet access service and 
     the recipient.
       (6) While some senders of unsolicited commercial electronic 
     mail messages provide simple and reliable way for recipients 
     to reject (or ``opt-out'' of) receipt of unsolicited 
     commercial electronic mail from such senders in the future, 
     other senders provide no

[[Page 4661]]

     such ``opt-out'' mechanism, or refuse to honor the requests 
     of recipients not to receive electronic mail from such 
     senders in the future, or both.
       (7) An increasing number of senders of unsolicited 
     commercial electronic mail purposefully disguise the source 
     of such mail so as to prevent recipients from responding to 
     such mail quickly and easily.
       (8) An increasing number of senders of unsolicited 
     commercial electronic mail purposefully include misleading 
     information in the message's subject lines in order to induce 
     the recipients to view the messages.
       (9) Because recipients of unsolicited commercial electronic 
     mail are unable to avoid the receipt of such mail through 
     reasonable means, such mail may invade the privacy of 
     recipients.
       (10) The practice of sending unsolicited commercial 
     electronic mail is sufficiently profitable that senders of 
     such mail will not be unduly burdened by the costs associated 
     with providing an ``opt-out'' mechanism to recipients and 
     ensuring that recipients who exercise such opt-out do not 
     receive further messages from that sender.
       (11) In legislating against certain abuses on the Internet, 
     Congress should be very careful to avoid infringing in any 
     way upon constitutionally protected rights, including the 
     rights of assemble, free speech, and privacy.
       (b) Congressional Determination of Public Policy.--On the 
     basis of the findings in subsection (a), the Congress 
     determines that--
       (1) there is substantial government interest in regulation 
     of unsolicited commercial electronic mail;
       (2) senders of unsolicited commercial electronic mail 
     should not mislead recipients as to the source or content of 
     such mail; and
       (3) recipients of unsolicited commercial electronic mail 
     have a right to decline to receive additional unsolicited 
     commercial electronic mail from the same source.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Affirmative consent.--The term ``affirmative consent'', 
     when used with respect to a commercial electronic mail 
     message, means--
       (A) the message falls within the scope of an express and 
     unambiguous invitation or permission granted by the recipient 
     and not subsequently revoked;
       (B) the recipient had clear and conspicuous notice, at the 
     time such invitation or permission was granted, of--
       (i) the fact that the recipient was granting the invitation 
     or permission;
       (ii) the scope of the invitation or permission, including 
     what types of commercial electronic mail messages would be 
     covered by the invitation or permission and what senders or 
     types of senders, if any, other than the party to whom the 
     invitation or permission was communicated would be covered by 
     the invitation or permission; and
       (iii) a reasonable and effective mechanism for revoking the 
     invitation or permission; and
       (C) the recipient has not, after granting the invitation or 
     permission, submitted a request under section 5(a)(3) not to 
     receive unsolicited commercial electronic mail messages from 
     the sender of the message.
       (2) Commercial electronic mail message.--The term 
     ``commercial electronic mail message'' means any electronic 
     mail message the primary purpose of which is to advertise or 
     promote, for a commercial purpose, a commercial product or 
     service (including content on an Internet website). An 
     electronic mail message shall not be considered to be a 
     commercial electronic mail message solely because such 
     message includes a reference to a commercial entity that 
     serves to identify the sender or a reference or link to an 
     Internet website operated for a commercial purpose.
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Domain name.--The term ``domain name'' means any 
     alphanumeric designation which is registered with or assigned 
     by any domain name registrar, domain name registry, or other 
     domain name registration authority as part of an electronic 
     address on the Internet.
       (5) Electronic mail address.--
       (A) In general.--The term ``electronic mail address'' means 
     a destination (commonly expressed as a string of characters) 
     to which electronic mail can be sent or delivered.
       (B) Inclusion.--In the case of the Internet, the term 
     ``electronic mail address'' may include an electronic mail 
     address consisting of a user name or mailbox (commonly 
     referred to as the ``local part'') and a reference to an 
     Internet domain (commonly referred to as the ``domain 
     part'').
       (6) FTC act.--The term ``FTC Act'' means the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (7) Functioning return electronic mail address.--
       (A) The term ``functioning return electronic mail address'' 
     means a legitimately obtained electronic mail address, 
     clearly and conspicuously displayed in a commercial 
     electronic mail message, that--
       (i) remains capable of receiving messages for no less than 
     30 days after the transmission of such commercial electronic 
     mail message; and
       (ii) that has capacity reasonably calculated, in light of 
     the number of recipients of the commercial electronic mail 
     message, to enable it to receive the full expected quantity 
     of reply messages from such recipients.
       (B) An electronic mail address that meets the requirements 
     of subparagraph (A) shall not be excluded from this 
     definition because of a temporary inability to receive 
     electronic mail message due to technical problems, provided 
     steps are taken to correct such technical problems within a 
     reasonable time period.
       (8) Header information.--The term ``header information'' 
     means the source, destination, and routing information 
     attached to the beginning of an electronic mail message, 
     including the originating domain name and originating 
     electronic mail address.
       (9) Implied consent.--The term ``implied consent'', when 
     used with respect to a commercial electronic mail message, 
     means--
       (A) within the 5-year period ending upon receipt of such 
     message, there has been a business transaction between the 
     sender and the recipient (including a transaction involving 
     the provision, free of charge, of information, goods, or 
     services requested by the recipient); and
       (B) the recipient was, at the time of such transaction or 
     thereafter, provided a clear and conspicuous notice of an 
     opportunity not to receive unsolicited commercial electronic 
     mail messages from the sender and has not exercised such 
     opportunity.
       (10) Initiate.--The term ``initiate'', when used with 
     respect to a commercial electronic mail message, means to 
     originate such message, to procure the origination of such 
     message, or to assist in the origination of such message 
     through the provision or selection of addresses to which such 
     message will be sent, but shall not include actions that 
     constitute routine conveyance of such message. For purposes 
     of this Act, more than 1 person may be considered to have 
     initiated the same message.
       (11) Internet.--The term ``Internet'' has the meaning given 
     that term in the Internet Tax Freedom Act (Pub. L. 105-277, 
     Div. C, Title XI, Sec. 1101(e)(3)(c)).
       (12) Internet access service.--The term ``Internet access 
     service'' has the meaning given that term in section 
     231(e)(4) of the Communications Act of 1934 (47 U.S.C. 
     231(e)(4)).
       (13) Protected computer.--The term ``protected computer'' 
     has the meaning given that term in section 1030(e)(2) of 
     title 18, United States Code.
       (14) Recipient.--The term ``recipient'', when used with 
     respect to a commercial electronic mail message, means the 
     addressees of such message. If an address of a commercial 
     electronic mail message has 1 or more electronic mail 
     addresses in addition to the address to which the message was 
     addressed, the addressees shall be treated as a separate 
     recipient with respect to each such address.
       (15) Routine conveyance.--The term ``routine conveyance'' 
     means the transmission, routing, relaying, handling, or 
     storing, through an automatic technical process, of an 
     electronic mail message for which another person has provided 
     and selected the recipient addresses.
       (16) Sender.--The term ``sender'', when used with respect 
     to a commercial electronic mail message, means a person who 
     initiates such a message and whose product, service, or 
     Internet web site is advertised or promoted by the message, 
     but does not include any person, including a provider of 
     Internet access service, whose role with respect to the 
     message is limited to routine conveyance of the message.
       (17) Unsolicited commercial electronic mail message.--
       (A) In general.--The term ``unsolicited commercial 
     electronic mail message'' means any commercial electronic 
     mail message that is sent to a recipient--
       (i) without prior affirmative consent or implied consent 
     from the recipient; or
       (ii) to a recipient who, subsequent to the establishment of 
     affirmative or implied consent under subparagraph (i), has 
     expressed, in a reply submitted pursuant to section 5(a)(3), 
     or in response to any other opportunity the sender may have 
     provided to the recipient, a desire not to receive commercial 
     electronic mail messages from the sender.
       (B) Exclusion.--Notwithstanding subparagraph (A), the term 
     ``unsolicited commercial electronic mail message'' does not 
     include an electronic mail message sent by or on behalf of 
     one or more lawful owners of copyright, patent, publicity, or 
     trademark rights to an unauthorized user of protected 
     material notifying such user that the use is unauthorized and 
     requesting that the use be terminated or that permission for 
     such use be obtained from the rights holder or holders.

     SEC. 4. CRIMINAL PENALTY FOR UNSOLICITED COMMERCIAL 
                   ELECTRONIC MAIL CONTAINING FRAUDULENT ROUTING 
                   INFORMATION.

       (a) In General.--Chapter 63 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1348. UNSOLICITED COMMERCIAL ELECTRONIC MAIL 
                   CONTAINING FRAUDULENT TRANSMISSION INFORMATION

       ``(a) In General.--Any person who intentionally initiates 
     the transmission of any

[[Page 4662]]

     unsolicited commercial electronic mail message to a protected 
     computer in the United States with knowledge that such 
     message contains or is accompanied by header information that 
     is materially or intentionally false or misleading shall be 
     fined or imprisoned for not more than 1 year, or both, under 
     this title.
       ``(b) Definitions.--Any term used in subsection (a) that is 
     defined in section 3 of the Unsolicited Commercial Electronic 
     Mail Act of 2001 has the meaning giving it in that 
     section.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     63 of title 18, United States Code, is amended by adding at 
     the end the following:

``1348. Unsolicited commercial electronic mail containing fraudulent 
              routing information''.

     SEC. 5. OTHER PROTECTIONS AGAINST UNSOLICITED COMMERCIAL 
                   ELECTRONIC MAIL.

       (a) Requirements for Transmission of Messages.--
       (1) Prohibition of false or misleading transmission 
     information.--It shall be unlawful for any person to initiate 
     the transmission, to a protected computer, of a commercial 
     electronic mail message that contains, or is accompanied by, 
     header information that is materially or intentionally false 
     or misleading, or not legitimately obtained.
       (2) Prohibition of deceptive subject headings.--It shall be 
     unlawful for any person to initiate the transmission, to a 
     protected computer, of a commercial electronic mail message 
     with a subject heading that such person knows is likely to 
     mislead the recipient about a material fact regarding the 
     contents or subject matter of the message.
       (3) Inclusion of return address in commercial electronic 
     mail.--It shall be unlawful for any person to initiate the 
     transmission of a commercial electronic mail message to a 
     protected computer unless such message contains a functioning 
     return electronic mail address to which a recipient may send 
     a reply to the sender to indicate a desire not to receive 
     further messages from that sender at the electronic mail 
     address at which the message was received.
       (4) Prohibtiion of transmission of unsolicited commercial 
     electronic mail after objection.--If a recipient makes a 
     request to a sender, through an electronic mail message sent 
     to an electronic mail address provided by the sender pursuant 
     to paragraph (3), not to receive further electronic mail 
     messages from that sender, it shall be unlawful for the 
     sender, or any person acting on behalf of the sender, to 
     initiate the transmission of an unsolicited commercial 
     electronic mail message to such a recipient within the United 
     States more than 10 days after receipt of such request.
       (5) Inclusion of identifier, opt-out, and physical address 
     in unsolicited commercial electronic mail.--It shall be 
     unlawful for any person to initiate the transmission of any 
     unsolicited commercial electronic mail message to a protected 
     computer unless the message provides, in a manner that is 
     clear and conspicuous to the recipient--
       (A) identification that the message is an advertisement or 
     solicitation;
       (B) notice of the opportunity under paragraph (3) to 
     decline to receive further unsolicited commercial electronic 
     mail messages from the sender; and
       (C) a valid physical postal address of the sender.
       (b) No Effect on Policies of Providers of Internet Access 
     Service.--Nothing in this Act shall be construed to have any 
     effect on the lawfulness or unlawfulness, under any other 
     provision of law, of the adoption, implementation, or 
     enforcement by a provider of Internet access service of a 
     policy of declining to transmit, route, relay, handle, or 
     store certain types of electronic mail messages.

     SEC. 6. ENFORCEMENT.

       (a) Enforcement by Commission.--
       (1) In general.--Section 5 of this Act shall be enforced by 
     the Commission under the FTC Act. For purposes of such 
     Commission enforcement, a violation of section 5 of this Act 
     shall be treated as a violation of a rule under section 18 
     (15 U.S.C. 57a) of the FTC Act regarding unfair or deceptive 
     acts or practices.
       (2) Scope of commission enforcement authority.--
       (A) The Commission shall prevent any person from violating 
     section 5 of this Act in the same manner, by the same means, 
     and with the same jurisdiction, powers, and duties as though 
     all applicable terms and provisions of the FTC Act were 
     incorporated into and made a part of this section. Any person 
     who violates section 5 of this Act shall be subject to the 
     penalties and entitled the privileges and immunities provided 
     in the FTC Act in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the FTC Act were 
     incorporated into and made a part of this section.
       (B) Nothing in this Act shall be construed to give the 
     Commission authority over activities that are otherwise 
     outside the jurisdiction of the FTC Act.
       (b) Enforcement by Certain Other Agencies.--
       (1) In general.--Compliance with section 5 of this Act 
     shall be enforced under--
       (A) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (i) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (ii) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25A of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et seq.), 
     by the Federal Reserve Board; and
       (iii) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (B) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (C) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (D) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (E) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act;
       (F) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) by 
     the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association; 
     and
       (G) the Communications Act of 1934 (47 U.S.C. 151 et seq.) 
     by the Federal Communications Commission with respect to any 
     person subject to the provisions of that Act.
       (2) Exercise of certain powers.--For the purpose of the 
     exercise by any agency referred to in paragraph (1) of its 
     powers under any Act referred to in that paragraph, a 
     violation of section 5 of this Act is deemed to be a 
     violation of a requirement imposed under that Act. In 
     addition to its powers under any provision of law 
     specifically referred to in paragraph (1), each of the 
     agencies referred to in that paragraph may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under section 5 of this Act, any other authority conferred on 
     it by law.
       (c) Enforcement by States.--
       (1) Civil action.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by any person engaging in a practice that 
     violates section 5 of this Act, the State, as parens patriae, 
     may bring a civil action on behalf of the residents of the 
     State in a district court of the United States of appropriate 
     jurisdiction or in any other court of competent 
     jurisdiction--
       (A) to enjoin that practice, or
       (B) to obtain damages on behalf of residents of the State, 
     in an amount equal to the greater of--
       (i) the actual monetary loss suffered by such residents; or
       (ii) the amount determined under paragraph (2).
       (2) Statutory damages.--For purposes of paragraph 
     (1)(B)(ii), the amount determined under this paragraph is the 
     smaller of--
       (A) the amount determined by multiplying the number of 
     willful, knowing, or negligent violations by an amount, in 
     the discretion of the court, of up to $10 (with each 
     separately addressed unlawful message received by such 
     residents treated as a separate violation); or
       (B) $500,000.

     In determining the per-violation penalty under this 
     paragraph, the court shall take into account the degree of 
     culpability, any history of prior such conduct, ability to 
     pay, effect on ability to continue to do business, and such 
     other matters as justice may require.
       (3) Treble damages.--If the court finds that the defendant 
     committed the violation willfully and knowingly, the court 
     may increase the amount recoverable under paragraph (2) up to 
     threefold.
       (4) Attorney fees.--In the case of any successful action 
     under subparagraph (1), the State shall be awarded the costs 
     of the action and reasonable attorney fees as determined by 
     the court.
       (5) Notice.--
       (A) Pre-filing.--Before filing an action under paragraph 
     (1), an attorney general shall provide to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Contemporaneous.--If an attorney general determines 
     that it is not feasible to provide the notice required by 
     subparagraph (A) before filing the action, the notice and a 
     copy of the complaint shall be provided to the Commission 
     when the action is filed.
       (6) Intervention.--If the Commission receives notice under 
     paragraph (4), it--

[[Page 4663]]

       (A) may intervene in the action that is the subject of the 
     notice; and
       (B) shall have the right--
       (i) to be heard with respect to any matter that arises in 
     that action; and
       (ii) to file a petition for appeal.
       (7) Construction.--For purposes of bringing any civil 
     action under paragraph (1), nothing in this Act shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (A) conduct investigations;
       (B) administer oaths or affirmations; or
       (C) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (8) Venue; service of process.--
       (A) Venue.--Any action brought under paragraph (1) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (B) Service of process.--In an action brought under 
     paragraph (1), process may be served in any district in which 
     the defendant--
       (i) is an inhabitant; or
       (ii) maintains a physical place of business.
       (9) Limitation on state action while federal action is 
     pending.--If the Commission or other appropriate Federal 
     agency under subsection (b) has instituted a civil action or 
     an administrative action for violation of this Act, no State 
     attorney general may bring an action under this subsection 
     during the pendency of that action against any defendant 
     named in the complaint of the Commission or the other agency 
     for any violation of this Act alleged in the complaint.
       (d) Action by Provider of Internet Access Service.--
       (1) Action Authorized.--A provider of Internet access 
     service adversely affected by a violation of section 5 may 
     bring a civil action in any district court of the United 
     States with jurisdiction over the defendant, or in any other 
     court of competent jurisdiction, to--
       (A) enjoin further violation by the defendant; or
       (B) recover damages in any amount equal to the greater of--
       (i) actual monetary loss incurred by the provider of 
     Internet access service as a result of such violation; or
       (ii) the amount determined under paragraph (2).
       (2) Statutory damages.--For purposes of paragraph 
     (1)(B)(ii), the amount determined under this paragraph is the 
     smaller of--
       (A) the amount determined by multiplying the number of 
     willful, knowing, or negligent violations by an amount, in 
     the discretion of the court, of up to $10 (with each 
     separately addressed unlawful message carried over the 
     facilities of the provider of Internet access service treated 
     as a separate violation); or
       (B) $500,000.

     In determining the per-violation penalty under this 
     paragraph, the court shall take into account the degree of 
     culpability, any history of prior such conduct, ability to 
     pay, effect on ability to continue to do business, and such 
     other matters as justice may require.
       (3) Treble damages.--If the court finds that the defendant 
     committed the violation willfully and knowingly, the court 
     may increase the amount recoverable under paragraph (2) up to 
     threefold.
       (4) Attorney fees.--In any action brought pursuant to 
     paragraph (1), the court may, in its discretion, require an 
     undertaking for the payment of the costs of such action, and 
     assess reasonable costs, including reasonable attorneys' 
     fees, against any party.
       (5) Evidentiary presumption.--For purposes of an action 
     alleging a violation of section 5(a)(4) or 5(a)(5), a showing 
     that a recipient has submitted a complaint about a commercial 
     electronic mail message to an electronic mail address 
     maintained and publicized by the provider of Internet access 
     service for the purpose of receiving complaints about 
     unsolicited commercial electronic mail messages shall create 
     a rebuttable presumption that the message in question was 
     unsolicited within the meaning of this Act.
       (e) Affirmative Defense.--A person shall not be liable for 
     damages under subsection (c)(2) or (d)(2) if--
       (1) such person has established and implemented, with due 
     care, reasonable practices and procedures to effectively 
     prevent violations of section 5; and
       (2) any violation occurred despite good faith efforts to 
     maintain compliance with such practices and procedures.

     SEC. 7. EFFECT ON OTHER LAWS.

       (a) Federal Law.--Nothing in this Act shall be construed to 
     impair the enforcement of section 223 or 231 of the 
     Communications Act of 1934, chapter 71 (relating to 
     obscenity) or 110 (relating to sexual exploitation of 
     children) of title 18, United States Code, or any other 
     Federal criminal statute.
       (b) State Law.--No State or local government may impose any 
     civil liability for commercial activities or actions in 
     interstate or foreign commerce in connection with an activity 
     or action described in section 5 of this Act that is 
     inconsistent with or more restrictive than the treatment of 
     such activities or actions under this Act, except that this 
     Act shall not preempt any civil action under--
       (1) State trespass, contract, or tort law; or
       (2) any provision of Federal, State, or local criminal law 
     or any civil remedy available under such law that relates to 
     acts of computer fraud perpetrated by means of the 
     unauthorized transmission of unsolicited commercial 
     electronic mail messages, provided that the mere sending of 
     unsolicited commercial electronic mail in a manner that 
     complies with this Act shall not constitute an act of 
     computer fraud for purposes of this subparagraph.

     SEC. 8. STUDY OF EFFECTS OF UNSOLICITED COMMERCIAL ELECTRONIC 
                   MAIL.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission, in consultation with the Department 
     of Justice and other appropriate agencies, shall submit a 
     report to the Congress that provides a detailed analysis of 
     the effectiveness and enforcement of the provisions of this 
     Act and the need (if any) for the Congress to modify such 
     provisions.

     SEC. 9. SEPARABILITY.

       If any provision of this Act or the application thereof to 
     any person or circumstance is held invalid, the remainder of 
     this Act and the application of such provision to other 
     persons or circumstances shall not be affected.

     SEC. 10. EFFECTIVE DATE.

       The provisions of this Act shall take effect 120 days after 
     the date of the enactment of this Act.

  Mr. WYDEN. Mr. President, Internet communications are increasingly 
important to Americans' daily lives and business. However, as the 
public's reliance on online and Internet services continues to grow, so 
do the burdens and frustrations stemming from unwanted junk e-mail.
  This type of e-mail is commonly known as ``spam,'' and it isn't hard 
to see why. Getting spam e-mail in your in-box is a lot like getting 
its namesake lunchmeat in your lunchbox: You didn't order it, and you 
really can't tell where the stuff comes from.
  Until now, you also have been virtually powerless to stop it. The 
recipient has no opportunity to refuse to accept the message, and thus 
is forced to take the time and bear the costs of storing, accessing, 
reviewing, and deleting such unwanted e-mail. In short, spammers have 
all the power. A spammer can send a recipient whatever messages it 
wants, and the recipient has no choice but to deal with them.
  Technology is on the side of the spammer. E-mail technology enables 
spammers to send huge quantities of messages quickly and cheaply. With 
the stroke of a key, a spammer can let fly a torrent of tens or 
hundreds of thousands of identical e-mails at minimal cost. Such bulk 
spam can clog up the network, impairing Internet service for everyone. 
For example, back in December, an influx of millions of junk e-mails 
slowed Verizon's network to a crawl, causing delays of several hours 
for customers trying to send and receive messages.
  Spam affects Internet companies as well as end users. Internet 
service providers are the ones who have to deal directly with the 
traffic jams caused when bulk spam floods their networks. And when 
consumers become frustrated by the receipt of spam, the first place 
they turn to complain will be the Internet companies from whom they 
purchase service. Left unchecked, spam could have a significant impact 
on how consumers perceive and use Internet services and e-commerce.
  Because of this, Internet service providers have often played a major 
role in trying to shield their customers from spam. But the bottom line 
is that existing laws do not provide the tools to deal with the 
mounting problem of junk e-mail.
  That is why I am teaming up again today with my good friend Senator 
Burns to introduce the ``Controlling the Assault of Non-Solicited 
Pornography And Marketing Act,'' the CAN SPAM Act, for short. This 
bipartisan legislation says that if you want to send unsolicited 
marketing e-mail, you've got to play by a set of rules, rules that 
allow consumers to see where the messages are coming from, and to tell 
the sender stop. The basic goal is simple: give the consumer more 
control.
  Specifically, our bill would require a sender of any marketing e-mail 
to include a working return address, so that the recipient can send a 
reply e-mail demanding not to receive any further

[[Page 4664]]

messages. A spammer would be prohibited from sending further messages 
to a consumer that has told it to stop.
  The bill also would prohibit spammers from using falsified or 
deceptive headers or subject lines, so that consumers will be able to 
tell where their marketing e-mails are coming from.
  The bill includes strong enforcement provisions to ensure compliance. 
Spammers that intentionally disguise their identities would be subject 
to misdemeanor criminal penalties. The Federal Trade Commission would 
have authority to impose civil fines. State attorneys general would be 
able to bring suit on behalf of the citizens of their states. And 
Internet service providers would be able to bring suit to keep unlawful 
spam off of their networks. In all cases, particularly high penalties 
would be available for true ``bad actors''--the shady, high-volume 
spammers who have no intention of behaving in a lawful and responsible 
manner.
  Our goal here is not to discourage legitimate online communications 
with consumers. Senator Burns and I have no intention of interfering 
with a company's ability to use e-mail to inform customers of warranty 
information, provide account holders with monthly account statements, 
and so forth. Rather, we want to go after those unscrupulous 
individuals who use e-mail to annoy and mislead. I believe this bill 
strikes that important balance.
  Senator Burns and I have worked with a number of different groups in 
shaping this legislation, and we believe we have made real progress in 
addressing some concerns that were raised about the spam bill we 
proposed last year. We feel that the version of the bill we introduce 
today is a workable, common-sense approach. I am pleased that Senators 
Lieberman, Landrieu, Torricelli, Breaux, and Murkowski are cosponsoring 
this bill today, and I look forward to working with them and the rest 
of my Senate colleagues to see that the bill moves forward as quickly 
as possible.
                                 ______
                                 
      By Mr. VOINOVICH:
  S. 631. A bill to provide for pension reform, and for other purposes; 
to the Committee on Finance.
  Mr. VOINOVICH. Mr. President, I rise today to introduce legislation 
that I believe will provide for the financial future of millions of 
Americans, help boost this nation's savings rate, and bolster long-term 
economic growth. My bill, the Comprehensive Retirement Security and 
Pension Reform Act, mirrors H.R. 10, legislation introduced earlier 
this year by my friend and fellow Ohioan, Representative Rob Portman.
  It is estimated that right now, an astounding 75 million American 
workers have no pension plan. In other words, roughly half of America's 
workers lack a key mechanism they will need in order to achieve a 
comfortable retirement. This situation is intolerable and must change.
  In my view, we must do more to encourage more citizens to ensure 
their financial independence in their golden years. That's why I 
strongly believe we need to enact the Comprehensive Retirement Security 
and Pension Reform Act. The increased personal savings and investment 
that would result from expanding pensions would reinvigorate our 
savings ethic, which has been eroding over recent years. Something 
needs to be done quickly to encourage more Americans to save and plan 
for their retirement and I believe the legislation I am introducing 
today is an important step in the right direction.
  Among the important things the bill I am introducing today does is 
raise the maximum annual contribution to an Individual Retirement 
Account, IRAs, from $2,000 per individual to $5,000. The contribution 
limits for, IRAs, has remained unchanged since 1981. Since sixty-nine 
percent of all IRA participants contribute the maximum, the $2,000 
limit has been a barrier to encouraging Americans to save for their own 
retirement. If the original IRA contribution limit in 1975, of $1,500, 
had been indexed for inflation, it would have reached $5,353 in the 
year 2000. Clearly, today's working men and women want to, and are 
ready to, invest more for their retirement if Congress would only let 
them. The time has come to raise the contribution limit.
  In addition, the Comprehensive Retirement Security and Pension Reform 
Act includes provisions to encourage employers to offer pensions, 
increase participation by eligible employees, raise limits on benefits 
and contributions, improve asset portability, strengthen legal 
protections for plan participants, and reduce regulatory burdens on 
plan sponsors.
  When the baby boomers start to retire in a few short years, this 
country will begin to experience a retirement tsunami unlike anything 
it has ever experienced. This 20-year event will put great strain on 
the economy and the federal budget, especially on government programs 
that provide services to senior citizens. One of the best ways to help 
prepare for this is to encourage private saving. The Comprehensive 
Retirement Security and Pension Reform Act is an important step in this 
direction and I urge my colleagues to join in co-sponsoring this 
legislation.
                                 ______
                                 
      By Mr. NELSON of Florida:
  S. 632. A bill to reinstate a final rule promulgated by the 
Administrator of the Environmental Protection Agency, and for other 
purposes; to the Committee on Environment and Public Works.
  Mr. NELSON of Florida. Mr. President, I rise today to express my 
grave concern about the Bush administration's latest decision to roll 
back measures designed to safeguard public health. Last Tuesday, the 
administration announced it would revoke the new, safer arsenic 
standard for drinking water and revert to the standard we have had in 
effect since 1942. The administration stated that the lower standard 
for drinking water should not go into effect because there was ``no 
consensus on a particular safe level'' of arsenic in drinking water. 
The administration also claims it would cost industry too much money to 
comply with the lower standard.
  The old standard of 50 parts per billion was established almost 60 
years ago--before research linked arsenic to some forms of cancer. A 
1999 study by the National Academy of Sciences, a study mandated by 
Congress for drinking water, concluded that the current arsenic 
standard for drinking water could result in one additional case of 
cancer for every 100 people consuming such drinking water. Moreover, 
the study determined that long-term exposure to low concentrations of 
arsenic in drinking water can lead to skin, bladder, lung, and prostate 
cancer. Non-cancer effects of ingesting arsenic at these levels can 
include cardiovascular disease, diabetes and anemia as well as 
reproductive, developmental, immunological, and neurological effects. 
In response, the Environmental Protection Agency adopted a rule that 
set a new standard of 10 parts per billion which the EPA deemed safe 
for drinking water.
  This standard also has been adopted by the European Union and the 
World Health Organization.
  Is cost a sufficient reason for reversal? No. That's because Congress 
consistently has made clear that it will help states and municipalities 
with the funds necessary to provide their citizens with safe drinking 
water.
  Even the Governor of Florida recognizes the health risks of arsenic. 
Arsenic was discovered recently in the soil in playgrounds in Tarpan 
Springs, Miami and Crystal River. It leached into the soil from 
pressure-treated wood used for park boardwalks and other outdoor 
structures. Last week, Gov. Jeb Bush ordered the state's wood-treatment 
plant to stop using arsenic to treat wood. I commend him for that 
decision.
  If arsenic in the soil is dangerous for children, it only stands to 
reason that the danger is even greater when it is found in drinking 
water. The Administration should join the State of Florida in 
recognizing the danger of arsenic and restore the 10 parts per billion 
standard. In the meantime, I am introducing legislation to restore the 
federal rule containing the new, safer drinking-water standard. The 
American people deserve clean, safe drinking water. If the 
Administration won't act, Congress must.

[[Page 4665]]

  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. 632

       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 ``Arsenic Reduction in 
     Drinking Water Act of 2001''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Public water system.--The term ``public water system'' 
     has the meaning given the term in section 1401 of the Safe 
     Drinking Water Act (42 U.S.C. 300f).
       (3) State.--The term ``State'' has the meaning given the 
     term in section 1401 of the Safe Drinking Water Act (42 
     U.S.C. 300f).

     SEC. 3. REINSTATEMENT OF FINAL RULE.

       On and after the date of enactment of this Act, the final 
     rule promulgated by the Administrator entitled ``Arsenic and 
     Clarifications to Compliance and New Source Contaminants 
     Monitoring'' (66 Fed. Reg. 6976 (January 22, 2001)), and the 
     amendments to parts 9, 141, and 142 of title 40, Code of 
     Federal Regulations, made by that rule, shall have full force 
     and effect.

     SEC. 4. ASSISTANCE FOR COMPLIANCE WITH ARSENIC STANDARD.

       (a) In General.--For each fiscal year for which funds are 
     made available to carry out this section, the Administrator, 
     using data obtained from the most recent available needs 
     survey conducted by the Administrator under section 1452(h) 
     of the Safe Drinking Water Act (42 U.S.C. 300j-12(h)), shall 
     allocate the funds to States for use in carrying out 
     treatment projects to comply with the final rule reinstated 
     by section 3.
       (b) Ratio.--The Administrator shall allocate funds to a 
     State under subsection (a) in the ratio that--
       (1) the financial need associated with treatment projects 
     for compliance with the final rule reinstated by section 3 
     for public water systems in the State; bears to
       (2) the total financial need associated with treatment 
     projects for compliance with the final rule reinstated by 
     section 3 for all public water systems in all States.
                                 ______
                                 
      By Mrs. HUTCHISON (for herself and Mr. Rockefeller):
  S. 633. A bill to provide for the review and management of airport 
congestion, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Mrs. HUTCHISON. Mr. President, I rise today, with my colleague 
Senator Rockefeller, to introduce legislation that will bring real 
relief to the hundreds of millions of passengers that have been 
suffering through the dramatic increase in the number of flight delays 
and cancellations in our passenger aviation system.
  I know that most of my colleagues are, by necessity, frequent fliers. 
So you know how bad it is out there and you have heard the statistics. 
More than twenty-five percent of the scheduled flights last year were 
delayed or canceled. The length of the average delay has also 
increased, despite the extra ``fudge time'' built into eighty-three 
percent of flights by the airlines to compensate for delays they know 
are going to occur.
  Not coincidentally, the number of annual air travelers is also 
rising. Between 1995 and 1999, the number of air travelers increased 
nearly sixteen percent, from about 582 million to 674 million. The 
Federal Aviation Administration estimates that this number will 
increase to more than 1 billion by the end of this decade. To meet this 
increased demand, the number of scheduled flights has also increased.
  However, there has not been a commensurate increase in the number of 
new aviation facilities. Only one major airport has opened in the last 
decade, in Denver, and only a handful of new runways and terminals have 
been completed to deal with the new demand. Unfortunately, the process 
for making capital improvements to existing airports is often painfully 
slow and easily derailed by well-organized groups who use every 
possible impediment to delay a new runway until it becomes impossibly 
expensive and difficult to build.
  Unless we significantly expand the capacity of our aviation system, 
we will not be able to meet the growing demand for air travel. Air 
fares will skyrocket and delays will continue to spread across the 
system. The loss of American productivity, from millions of hours lost 
while sitting on an airport tarmac, will be incalculable.
  Fixing the problem will call for more infrastructure and better air 
traffic control facilities. But we must meet the challenge now so these 
new runways and terminals can be ready before we have a real crisis on 
our hands.
  Until now, most of the focus here in Congress has been on passenger 
service. The Commerce Committee recently reported a bill, which I 
cosponsored, to force airlines to live up to their promises to provide 
improved customer service, especially during delays and cancellations. 
Passenger service is critical, but the real cause of consumers' 
frustration is the explosive growth in the number and length of flight 
delays. This bill gets to the heart of that issue.
  The bill instructs the Secretary to develop a procedure to ensure 
that the approval process for runways, terminals and airports is 
streamlined. Federal, state, regional and local reviews would take 
place simultaneously, not one after the other.
  In no way would this mean that environmental laws would be ignored or 
broken. The bill does not limit the grounds on which a lawsuit may be 
filed. It simply provides the community with a reasonable time line to 
get an answer. If that answer is ``no,'' then the community is free to 
explore other transportation options.
  The bill also addresses the unfortunate practice of the airlines to 
overschedule at peak hours. At many airports, these schedules are so 
densely packed that, even in perfect weather conditions throughout the 
country, there is no way the airlines could possibly meet them. The 
result is chronically late flights.
  The legislation directs the Secretary to study the options to ease 
congestion at crowded airports. The legislation also grants the 
airlines a limited antitrust exemption, so that they may consult with 
one another, subject to the Secretary's approval, to re-schedule 
flights from the most congested hours to off-peak times.
  We have all experienced flights that push away from the gate only to 
languish for hours on the tarmac waiting to take off. The current 
system logs these flights as on-time departures. This legislation would 
change the definition of ``on-time departure'' to mean that the flight 
is airborne within 20 minutes of its scheduled departure time.
  Our national economic health depends upon the reliability of our 
aviation system. If we fail to act now, that reliability will be placed 
in serious jeopardy.
  Mr. ROCKEFELLER. Mr. President, I join today with the chairwoman of 
the Aviation Subcommittee in introducing the Aviation Delay Prevention 
Act. The bill is intended to start a dialogue about some of the 
solutions for reducing congestion, specifically ways to expedite 
airport construction, and provide a mechanism for air carriers to talk 
about changing flight schedules to reduce delays. This is a tough issue 
with no easy, simple solutions. Senator Hutchison and I know this. I 
also know that this specific piece of legislation is intended to 
provide a framework for a debate on how to provide a better air 
transportation system for travelers. We must, though, continue our 
efforts to work through every issue in our efforts to enable the FAA, 
airports and air carriers to provide a more efficient air 
transportation system.
  Senator Hutchison and I want to provide our colleagues with 
constructive and feasible legislative provisions that are well thought 
out and considered. We will hold a hearing on this bill on Thursday, 
eliciting testimony from the Department of Transportation, DOT, the 
Federal Aviation Administration, FAA, airports and airlines, as well as 
general aviation.
  We do know we are facing an aviation system that today is overcrowded 
and cannot keep up with demand. Tomorrow's demand forecasts are also 
daunting, with an increase in passenger traffic from about 670 million 
passengers to more than a billion. As we review the problems of our 
aviation system, I am constantly thinking and envisioning a system with 
twice the

[[Page 4666]]

number of planes, and twice the number of people traveling within the 
next 10 years. Today, right now, we have airports that cannot 
accommodate all of the planes. We have terminals that need to be 
expanded, and runways that must be built. One thing all of us know is 
that without adequate runways and terminals, no one is well served.
  We see it first hand as we fly around the country, as our planes are 
delayed, as we talk with constituents at home and here in Washington, 
that our aviation system is running on empty. Last year, we had to 
fight and claw our way to getting bills that finally provides 
sufficient money for the FAA to be able to build new runways and buy 
new equipment. We must be vigorous in ensuring that the Administration 
does not make cuts to these key programs, as was initially proposed by 
the Bush Administration. Knowing that it takes years to build a runway 
and years to develop new air traffic control systems, we cannot 
shortchange the system.
  Last year, as part of the Wendell H. Ford Aviation Investment and 
Reform Act, FAIR-21, P.L. 106-181, we set out a road map for a more 
businesslike Federal Aviation Administration, FAA, creating a 
corporate-type Board with people from non-aviation related businesses 
to oversee air traffic control. We created a Chief Operating Officer, 
COO, to run air traffic, with specific authority to focus on 
operations, the budget and establishing a goal-oriented ATC. In 
addition, we made sure that the money was provided to buy new ATC 
equipment to expand ATC capacity.
  With respect to airports, we authorized significant increases in 
Airport Improvement Program monies, increases of $1.25, $1.35 and $1.45 
billion over 1999 funds, $1.95 billion. We also gave airports the 
ability to increase their passenger facility fees from $3 to $4.50 per 
person. The money is there to build and expand capacity. But, nothing 
happens overnight and we all know it.
  With the reforms of the FAA and the funding, we are on a path to 
change. Yet, even with that path, we are not able to keep up with 
demand, particularly in the short term. Secretary Mineta has already 
stated he wants to use the reforms of FAIR-21, and not get bogged down 
in an age-old debate over FAA privatization/corporatization. The Air 
Transport Association, ATA, has echoed this sentiment. Nonetheless, we 
must look at ways particularly in the near term, to provide relief to 
travelers, and in the longer term figure out better ways to build 
runways, while being cognizant of the need to be environmentally 
conscious.
  Right now we have runway construction underway at Denver, Detroit-
Metro, Minneapolis-St. Paul, Houston, and Orlando. Miami is set to 
begin construction within the next month or two as is St. Louis. 
Charlotte is awaiting the United-US Airways merger decision before it 
begins construction since the carriers will help finance the project. 
At other airports, runway planning is ongoing. Chip Barclay, the 
President of the American Association of Airport Executives, in 
testimony before a House Committee recently noted that if we could 
build 50 more miles of additional runways we could solve our airport 
capacity problem. Fifty miles. Each of us wants them built more 
quickly, but changes in the laws may not expedite the current 
construction. Yet, we can ensure, as this bill does, that the FAA and 
other Federal, State and local agencies do a better job of coordinating 
the various environmental and planning reviews necessary before a 
runway is built. It is a starting point for the discussion, but by no 
means an end point. We want to expedite construction, without intruding 
upon the necessary environmental reviews.
  AAAE has put out a proposal to expedite runway construction, and we 
will carefully evaluate it too. I have been developing my own 
legislation which will build upon the bill we introduced today and want 
to work with Senator Hutchison and other members on that bill. I have 
learned that this is a complicated problem, with no easy, or quick, 
solutions. As the legislation we introduce today is considered by the 
Committee, changes will be made to reflect many concerns and issues. 
Senator Hutchison and I want to work with the entire aviation community 
in addressing and solving this issue.
                                 ______
                                 
      By Ms. COLLINS:
  S. 634. A bill to amend section 2007 of the Social Security Act to 
provide grant funding for additional Enterprise Communities, and for 
other purposes; to the Committee on Finance.
  Ms. COLLINS. Mr. President, in 1993, Congress created the Community 
Empowerment Program to provide communities with real opportunities for 
growth and revitalization. The program challenged local jurisdictions 
to develop strategic plans for the future and rewarded the communities 
that have developed the best plans with a ten-year designation as an 
Empowerment Zone or Enterprise Community. Once a designation is 
awarded, communities receive Federal support to assist local efforts to 
promote economic opportunity and implement strategies designed to help 
communities obtain their development goals. When it authorized the 
program, Congress also provided, in one appropriation, the funding 
necessary to support the communities for the full life of the ten-year 
designations.
  In response to the initial success of the Community Empowerment 
Program, Congress authorized a second round of the Enterprise Community 
designations in 1998, creating an additional 20 Enterprise Communities. 
These designations were awarded to deserving communities shortly 
thereafter by the Department of Agriculture.
  When Congress authorized a second round of Enterprise Communities, it 
only appropriated funding for the program in Fiscal Year 1999. 
Consequently, communities have had to rely on funding added in 
conference to the VA-HUD appropriations bill in each of the subsequent 
fiscal years.
  This last minute approach to funding these communities is not at all 
conducive to the strategic planning that the Community Empowerment 
Program is supposed to encourage. We cannot expect local leaders to 
effectively implement their plans if the Federal support they have been 
promised is still in question. I believe it is time for Congress to 
demonstrate its support for the Round II Enterprise Communities by 
setting aside, as it did in Round I, the funding necessary to sustain 
this important program.
  Today, I am introducing legislation that would ensure that Congress 
keeps its commitment to the Round II Enterprise Communities by 
authorizing a one time appropriation to the States through the Social 
Service Block Grant program to support the remaining years of the 
designations. My bill, the Enterprise Communities Enhancement Act of 
2001, also authorizes the States to make annual grants for each of the 
seven remaining years of the program of $500,000 for each of the 20 
Round II Enterprise Communities. By guaranteeing funding, Congress 
would demonstrate its support for the work being done by these 
communities and provide local leaders with the assurance that Federal 
dollars will be available as they make their plans for the future.
  The Enterprise Communities Enhancement Act will also allow for more 
local control over how the annual funding is used. My bill allows 
communities to use funds to capitalize local revolving loan accounts 
should community leaders deem such accounts as an important part of 
their economic development efforts.
  I have long been a strong supporter of Empower Lewiston--the local 
effort that secured and is implementing the Enterprise Community 
designation for the city of Lewiston, Maine. Thousands of local people 
and dozens of organizations worked together for a year to develop a 
strategic plan for the city as a whole and those neighborhoods most 
affected by poverty. The plan includes proposals to enhance lifelong 
learning and employment opportunities, improve the community's housing, 
and revitalize the city's downtown.
  Empower Lewiston has been able to leverage its funding by more than 
50 to 1, generating more than $11 million in public and private 
investment in the community. Included among the projects that have been 
funded are investments in a local employment firm

[[Page 4667]]

that created 60 new jobs and in the Seeds of Change program that 
enhances outreach among community residents. Looking ahead, Empower 
Lewiston will be developing a community resource center, working to 
develop safe and affordable housing, and expanding education programs 
that target the needs of local residents.
  Empower Lewiston provides a wonderful example of what the new 
Enterprise Communities are able to accomplish. By passing the 
Enterprise Communities Enhancement Act, Congress can ensure that 
communities such as Lewiston will have the resources they need to 
complete their missions and create a brighter future.
                                 ______
                                 
      By Mr. DODD:
  S. 635. A bill to reinstate a standard for arsenic in drinking water; 
to the Committee on Environment and Public Works.
  Mr. DODD. 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. 635

       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 ``Arsenic Standard 
     Reinstatement Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) in 1996, Congress amended the Safe Drinking Water Act 
     (42 U.S.C. 300f et seq.) to require the Administrator of the 
     Environmental Protection Agency to revise the standard for 
     arsenic in drinking water;
       (2) after conducting scientific and economic analyses, the 
     Administrator, on January 22, 2001, promulgated a final rule 
     to reduce the public health risks from arsenic in drinking 
     water by reducing the permissible level of arsenic from 50 
     parts per billion (.05 milligrams per liter) to 10 parts per 
     billion (.01 milligrams per liter);
       (3) the new standard would provide additional protection 
     against cancer and other health problems for 13,000,000 
     people;
       (4) the National Academy of Sciences has determined that 
     drinking water containing 50 parts per billion of arsenic 
     ``could easily'' result in a 1-in-100 risk of cancer;
       (5) 50 parts per billion of arsenic causes a cancer risk 
     that is 10,000 times the level of any cancer risk caused by 
     any carcinogen that the Environmental Protection Agency 
     permits to be present in food;
       (6) 10 parts per billion of arsenic in drinking water is 
     the standard used by the European Union, Japan, and the World 
     Health Organization;
       (7) public water systems may apply for financial assistance 
     through the drinking water State revolving loan fund under 
     section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-
     12);
       (8) since 1996, the revolving loan fund program has made 
     $3,600,000,000 available to assist public water systems with 
     projects to improve infrastructure; and
       (9) on March 20, 2001, Administrator of the Environmental 
     Protection Agency proposed to withdrew the pending arsenic 
     standard that was promulgated on January 22, 2001, and due to 
     take effect on March 23, 2001.

     SEC. 3. REINSTATEMENT OF FINAL RULE.

       (a) In General.--On and after the date of enactment of this 
     Act, the final rule promulgated by the Administrator of the 
     Environmental Protection Agency entitled ``Arsenic and 
     Clarifications to Compliance and New Source Contaminants 
     Monitoring'' (66 Fed. Reg. 6976 (January 22, 2001)), and the 
     amendments to parts 9, 141, and 142 of title 40, Code of 
     Federal Regulations, made by that rule, shall have full force 
     and effect.
       (b) Maximum Contaminant Level.--The maximum contaminant 
     level for arsenic in drinking water of .01 milligrams per 
     liter established by the final rule described in subsection 
     (a) shall not be subject to revision except by Act of 
     Congress.




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