[Congressional Record (Bound Edition), Volume 147 (2001), Part 5]
[Senate]
[Pages 6953-6977]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. TORRICELLI (for himself and Ms. Snowe):
  S. 819. A bill to amend the Public Health Service Act and Employee 
Retirement Income Security Act of 1974 to require that group and 
individual health insurance coverage and group health plans provide 
coverage for qualified individuals for bone mass measurement (bone 
density testing) to prevent fractures associated with osteoporosis; to 
the Committee of Health, Education, Labor, and Pensions.
  Mr. TORRICELLI. Mr. President, I rise today to introduce the Early 
Detection and Prevention of Osteoporosis and Related Bone Diseases Act 
of 2001 along with my colleague from Maine, Senator Snowe.
  Osteoporosis and other related bone diseases pose a major public 
health threat. More than 28 million Americans, 80 percent of whom are 
women, suffer from, or are at risk for, osteoporosis. Between three and 
four million Americans suffer from related bone diseases like Paget's 
disease or osteogenesis imperfecta. Today, in the United States, 10 
million individuals already have osteoporosis and 18 million more have 
low bone mass, placing them at increased risk. Osteoporosis is 
preventable through the use of new technology, yet the majority of 
Americans with the disease remain undiagnosed and untreated.
  Osteoporosis is often called the ``silent disease'' because bone loss 
occurs without symptoms. Often people do not know they have 
osteoporosis until their bones become so weak that a sudden bump or 
fall causes a fracture or a vertebrae to collapse. Every year, there 
are 1.5 million bone fractures caused by osteoporosis. Half of all 
women, and one-eighth of all men, age 50 or older, will suffer a bone 
fracture due to osteoporosis.
  The consequences of osteoporosis are often unrecognized. In New 
Jersey, individuals hospitalized with osteoporosis fractures average 
9.3 days in the hospital for hip fracture and 71 days for vertebral 
fracture. National statistics show that 10 to 20 percent of people with 
hip fracture either die within six months, cannot walk without aid or 
require long-term care. Education is needed to encourage individuals 
and their providers to diagnose osteoporosis early and treat the 
disease swiftly, preventing costly and debilitating fractures.
  Osteoporosis is a progressive condition that has no known cure; thus, 
prevention and treatment are key. The Early Detection and Prevention of 
Osteoporosis and Related Bone Diseases Act of 2001 seeks to combat 
osteoporosis, and related bone diseases like Paget's disease by 
requiring private health plans to cover bone mass measurement tests for 
qualified individuals who are at risk for developing osteoporosis.
  Bone mass measurement is the only reliable method of detecting 
osteoporosis in its early stages. The test is non-invasive and painless 
and is predictive of future fractures as high cholesterol or high blood 
pressure is of heart disease or stroke. This legislation is similar to 
a provision in the Balanced Budget Act of 1997 that requires Medicare 
coverage of bone mass measurements.
  Medical experts agree that osteoporosis is preventable. Thus, if the 
toll of osteoporosis and other related bones diseases are to be 
reduced, the commitment to prevention and treatment must be 
significantly increased.
  The bill is supported by the National Osteoporosis Foundation, 
American Medical Women's Association, American Society for Bone & 
Mineral Research, Osteogenesis Imperfecta Foundation, National 
Association of Orthopedic Nurses, American Physical Therapy Association 
and the Health Promotion Institute.
  I ask unanimous consent the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 819

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

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Early 
     Detection and Prevention of

[[Page 6954]]

     Osteoporosis and Related Bone Diseases Act of 2001''.
       (b) Findings.--Congress makes the following findings:
       (1) Nature of osteoporosis.--
       (A) Osteoporosis is a disease characterized by low bone 
     mass and structural deterioration of bone tissue leading to 
     bone fragility and increased susceptibility to fractures of 
     the hip, spine, and wrist.
       (B) Osteoporosis has no symptoms and typically remains 
     undiagnosed until a fracture occurs.
       (C) Once a fracture occurs, the condition has usually 
     advanced to the stage where the likelihood is high that 
     another fracture will occur.
       (D) There is no cure for osteoporosis, but drug therapy has 
     been shown to reduce new hip and spine fractures by 50 
     percent and other treatments, such as nutrition therapy, have 
     also proven effective.
       (2) Incidence of osteoporosis and related bone diseases.--
       (A) 28,000,000 Americans have (or are at risk for) 
     osteoporosis, 80 percent of which are women.
       (B) Osteoporosis is responsible for 1.5 million bone 
     fractures annually, including more than 300,000 hip 
     fractures, 700,000 vertebral fractures and 200,000 fractures 
     of the wrists.
       (C) Half of all women, and one-eighth of all men, age 50 or 
     older will have a bone fracture due to osteoporosis.
       (D) Between 3,000,000 and 4,000,000 Americans have Paget's 
     disease, osteogenesis imperfecta, hyperparathyroidism, and 
     other related metabolic bone diseases.
       (3) Impact of osteoporosis.--The cost of treating 
     osteoporosis is significant:
       (A) The annual cost of osteoporosis in the United States is 
     $13,800,000,000 and is expected to increase precipitously 
     because the proportion of the population comprised of older 
     persons is expanding and each generation of older persons 
     tends to have a higher incidence of osteoporosis than 
     preceding generations.
       (B) The average cost in the United States of repairing a 
     hip fracture due to osteoporosis is $32,000.
       (C) Fractures due to osteoporosis frequently result in 
     disability and institutionalization of individuals.
       (D) Because osteoporosis is a progressive condition causing 
     fractures primarily in aging individuals, preventing 
     fractures, particularly for post menopausal women before they 
     become eligible for medicare, has a significant potential of 
     reducing osteoporosis-related costs under the medicare 
     program.
       (4) Use of bone mass measurement.--
       (A) Bone mass measurement is the only reliable method of 
     detecting osteoporosis at an early stage.
       (B) Low bone mass is as predictive of future fractures as 
     is high cholesterol or high blood pressure of heart disease 
     or stroke.
       (C) Bone mass measurement is a non-invasive, painless, and 
     reliable way to diagnose osteoporosis before costly fractures 
     occur.
       (D) Under section 4106 of the Balanced Budget Act of 1997, 
     Medicare provides coverage, effective July 1, 1999, for bone 
     mass measurement for qualified individuals who are at risk of 
     developing osteoporosis.
       (5) Research on osteoporosis and related bone diseases.--
       (A) Technology now exists, and new technology is 
     developing, that will permit the early diagnosis and 
     prevention of osteoporosis and related bone diseases as well 
     as management of these conditions once they develop.
       (B) Funding for research on osteoporosis and related bone 
     diseases is severely constrained at key research institutes, 
     including the National Institute of Arthritis and 
     Musculoskeletal and Skin Diseases, the National Institute on 
     Aging, the National Institute of Diabetics and Digestive and 
     Kidney Diseases, the National Institute of Dental Research, 
     and the National Institute of Child Health and Human 
     Development.
       (C) Further research is needed to improve medical knowledge 
     concerning--
       (i) cellular mechanisms related to the processes of bone 
     resorption and bone formation, and the effect of different 
     agents on bone remodeling;
       (ii) risk factors for osteoporosis, including newly 
     discovered risk factors, risk factors related to groups not 
     ordinarily studied (such as men and minorities), risk factors 
     related to genes that help to control skeletal metabolism, 
     and risk factors relating to the relationship of aging 
     processes to the development of osteoporosis;
       (iii) bone mass measurement technology, including more 
     widespread and cost-effective techniques for making more 
     precise measurements and for interpreting measurements;
       (iv) calcium (including bioavailability, intake 
     requirements, and the role of calcium in building heavier and 
     denser skeletons), and vitamin D and its role as an essential 
     vitamin in adults;
       (v) prevention and treatment, including the efficacy of 
     current therapies, alternative drug therapies for prevention 
     and treatment, and the role of exercise; and
       (vi) rehabilitation.
       (D) Further educational efforts are needed to increase 
     public and professional knowledge of the causes of, methods 
     for avoiding, and treatment of osteoporosis.

     SEC. 2. REQUIRING COVERAGE OF BONE MASS MEASUREMENT UNDER 
                   HEALTH PLANS.

       (a) Group Health Plans.--
       (1) Public health service act amendments.--
       (A) In general.--Subpart 2 of part A of title XXVII of the 
     Public Health Service Act (42 U.S.C. 300gg-4) is amended by 
     adding at the end the following:

     ``SEC. 2707. STANDARDS RELATING TO BENEFITS FOR BONE MASS 
                   MEASUREMENT.

       ``(a) Requirements for Coverage of Bone Mass Measurement.--
     A group health plan, and a health insurance issuer offering 
     group health insurance coverage, shall include (consistent 
     with this section) coverage for bone mass measurement for 
     beneficiaries and participants who are qualified individuals.
       ``(b) Definitions Relating to Coverage.--In this section:
       ``(1) Bone mass measurement.--The term `bone mass 
     measurement' means a radiologic or radioisotopic procedure or 
     other procedure approved by the Food and Drug Administration 
     performed on an individual for the purpose of identifying 
     bone mass or detecting bone loss or determining bone quality, 
     and includes a physician's interpretation of the results of 
     the procedure. Nothing in this paragraph shall be construed 
     as requiring a bone mass measurement to be conducted in a 
     particular type of facility or to prevent such a measurement 
     from being conducted through the use of mobile facilities 
     that are otherwise qualified.
       ``(2) Qualified individual.--The term `qualified 
     individual' means an individual who--
       ``(A) is an estrogen-deficient woman at clinical risk for 
     osteoporosis;
       ``(B) has vertebral abnormalities;
       ``(C) is receiving chemotherapy or long-term 
     gluococorticoid (steroid) therapy;
       ``(D) has primary hyperparathyroidism, hyperthyroidism, or 
     excess thyroid replacement;
       ``(E) is being monitored to assess the response to or 
     efficacy of approved osteoporosis drug therapy;
       ``(F) is a man with a low trauma fracture; or
       ``(G) the Secretary determines is eligible.
       ``(c) Limitation on Frequency Required.--Taking into 
     account the standards established under section 1861(rr)(3) 
     of the Social Security Act, the Secretary shall establish 
     standards regarding the frequency with which a qualified 
     individual shall be eligible to be provided benefits for bone 
     mass measurement under this section. The Secretary may vary 
     such standards based on the clinical and risk-related 
     characteristics of qualified individuals.
       ``(d) Restrictions on Cost-Sharing.--
       ``(1) In general.--Subject to paragraph (2), nothing in 
     this section shall be construed as preventing a group health 
     plan or issuer from imposing deductibles, coinsurance, or 
     other cost-sharing in relation to bone mass measurement under 
     the plan (or health insurance coverage offered in connection 
     with a plan).
       ``(2) Limitation.--Deductibles, coinsurance, and other 
     cost-sharing or other limitations for bone mass measurement 
     may not be imposed under paragraph (1) to the extent they 
     exceed the deductibles, coinsurance, and limitations that are 
     applied to similar services under the group health plan or 
     health insurance coverage.
       ``(e) Prohibitions.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan, solely for the purpose of avoiding the 
     requirements of this section;
       ``(2) provide incentives (monetary or otherwise) to 
     individuals to encourage such individuals not to be provided 
     bone mass measurements to which they are entitled under this 
     section or to providers to induce such providers not to 
     provide such measurements to qualified individuals;
       ``(3) prohibit a provider from discussing with a patient 
     osteoporosis preventive techniques or medical treatment 
     options relating to this section; or
       ``(4) penalize or otherwise reduce or limit the 
     reimbursement of a provider because such provider provided 
     bone mass measurements to a qualified individual in 
     accordance with this section.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to require an individual who is a participant or 
     beneficiary to undergo bone mass measurement.
       ``(g) Notice.--A group health plan under this part shall 
     comply with the notice requirement under section 714(g) of 
     the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements of this section as if such 
     section applied to such plan.
       ``(h) Level and Type of Reimbursements.--Nothing in this 
     section shall be construed to prevent a group health plan or 
     a health insurance issuer offering group health insurance 
     coverage from negotiating the level and type of reimbursement 
     with a provider for care provided in accordance with this 
     section.

[[Page 6955]]

       ``(i) Preemption.--
       ``(1) In general.--The provisions of this section do not 
     preempt State law relating to health insurance coverage to 
     the extent such State law provides greater benefits with 
     respect to osteoporosis detection or prevention.
       ``(2) Construction.--Section 2723(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (B) Conforming amendment.--Section 2723(c) of the Public 
     Health Service Act (42 U.S.C. 300gg-23(c)) is amended by 
     striking ``section 2704'' and inserting ``sections 2704 and 
     2707''.
       (2) ERISA amendments.--
       (A) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 714. STANDARDS RELATING TO BENEFITS FOR BONE MASS 
                   MEASUREMENT.

       ``(a) Requirements for Coverage of Bone Mass Measurement.--
     A group health plan, and a health insurance issuer offering 
     group health insurance coverage, shall include (consistent 
     with this section) coverage for bone mass measurement for 
     beneficiaries and participants who are qualified individuals.
       ``(b) Definitions Relating to Coverage.--In this section:
       ``(1) Bone mass measurement.--The term `bone mass 
     measurement' means a radiologic or radioisotopic procedure or 
     other procedure approved by the Food and Drug Administration 
     performed on an individual for the purpose of identifying 
     bone mass or detecting bone loss or determining bone quality, 
     and includes a physician's interpretation of the results of 
     the procedure. Nothing in this paragraph shall be construed 
     as requiring a bone mass measurement to be conducted in a 
     particular type of facility or to prevent such a measurement 
     from being conducted through the use of mobile facilities 
     that are otherwise qualified.
       ``(2) Qualified individual.--The term `qualified 
     individual' means an individual who--
       ``(A) is an estrogen-deficient woman at clinical risk for 
     osteoporosis;
       ``(B) has vertebral abnormalities;
       ``(C) is receiving chemotherapy or long-term 
     gluococorticoid (steroid) therapy;
       ``(D) has primary hyperparathyroidism, hyperthyroidism, or 
     excess thyroid replacement;
       ``(E) is being monitored to assess the response to or 
     efficacy of approved osteoporosis drug therapy;
       ``(F) is a man with a low trauma fracture; or
       ``(G) the Secretary determines is eligible.
       ``(c) Limitation on Frequency Required.--The standards 
     established under section 2707(c) of the Public Health 
     Service Act shall apply to benefits provided under this 
     section in the same manner as they apply to benefits provided 
     under section 2707 of such Act.
       ``(d) Restrictions on Cost-Sharing.--
       ``(1) In general.--Subject to paragraph (2), nothing in 
     this section shall be construed as preventing a group health 
     plan or issuer from imposing deductibles, coinsurance, or 
     other cost-sharing in relation to bone mass measurement under 
     the plan (or health insurance coverage offered in connection 
     with a plan).
       ``(2) Limitation.--Deductibles, coinsurance, and other 
     cost-sharing or other limitations for bone mass measurement 
     may not be imposed under paragraph (1) to the extent they 
     exceed the deductibles, coinsurance, and limitations that are 
     applied to similar services under the group health plan or 
     health insurance coverage.
       ``(e) Prohibitions.--A group health plan, and a health 
     insurance issuer offering group health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan, solely for the purpose of avoiding the 
     requirements of this section;
       ``(2) provide incentives (monetary or otherwise) to 
     individuals to encourage such individuals not to be provided 
     bone mass measurements to which they are entitled under this 
     section or to providers to induce such providers not to 
     provide such measurements to qualified individuals;
       ``(3) prohibit a provider from discussing with a patient 
     osteoporosis preventive techniques or medical treatment 
     options relating to this section; or
       ``(4) penalize or otherwise reduce or limit the 
     reimbursement of a provider because such provider provided 
     bone mass measurements to a qualified individual in 
     accordance with this section.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to require an individual who is a participant or 
     beneficiary to undergo bone mass measurement.
       ``(g) Notice Under Group Health Plan.--The imposition of 
     the requirements of this section shall be treated as a 
     material modification in the terms of the plan described in 
     section 102(a)(1), for purposes of assuring notice of such 
     requirements under the plan; except that the summary 
     description required to be provided under the last sentence 
     of section 104(b)(1) with respect to such modification shall 
     be provided by not later than 60 days after the first day of 
     the first plan year in which such requirements apply.
       ``(h) Preemption.--
       ``(1) In general.--The provisions of this section do not 
     preempt State law relating to health insurance coverage to 
     the extent such State law provides greater benefits with 
     respect to osteoporosis detection or prevention.
       ``(2) Construction.--Section 731(a)(1) shall not be 
     construed as superseding a State law described in paragraph 
     (1).''.
       (B) Conforming amendments.--
       (i) Section 731(c) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1191(c)), as amended by 
     section 603(b)(1) of Public Law 104-204, is amended by 
     striking ``section 711'' and inserting ``sections 711 and 
     714''.
       (ii) Section 732(a) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1191a(a)), as amended by 
     section 603(b)(2) of Public Law 104-204, is amended by 
     striking ``section 711'' and inserting ``sections 711 and 
     714''.
       (iii) The table of contents in section 1 of the Employee 
     Retirement Income Security Act of 1974 is amended by 
     inserting after the item relating to section 713 the 
     following new item:

``Sec. 714. Standards relating to benefits for bone mass 
              measurement.''.

       (b) Individual Health Insurance.--
       (1) In general.--Part B of title XXVII of the Public Health 
     Service Act is amended by inserting after section 2752 (42 
     U.S.C. 300gg-52) the following new section:

     ``SEC. 2753. STANDARDS RELATING TO BENEFITS FOR BONE MASS 
                   MEASUREMENT.

       ``(a) In General.--The provisions of section 2707 (other 
     than subsection (g)) shall apply to health insurance coverage 
     offered by a health insurance issuer in the individual market 
     in the same manner as it applies to health insurance coverage 
     offered by a health insurance issuer in connection with a 
     group health plan in the small or large group market.
       ``(b) Notice.--A health insurance issuer under this part 
     shall comply with the notice requirement under section 714(g) 
     of the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements referred to in subsection (a) as 
     if such section applied to such issuer and such issuer were a 
     group health plan.
       ``(c) Preemption.--
       ``(1) In general.--The provisions of this section do not 
     preempt State law relating to health insurance coverage to 
     the extent such State law provides greater benefits with 
     respect to osteoporosis detection or prevention.
       ``(2) Construction.--Section 2762(a) shall not be construed 
     as superseding a State law described in paragraph (1).''.
       (2) Conforming amendments.--Section 2762(b)(2) of the 
     Public Health Service Act (42 U.S.C. 300gg-62(b)(2)) is 
     amended by striking ``section 2751'' and inserting ``sections 
     2751 and 2753''.
       (c) Effective Dates.--
       (1) Group health plans.--The amendments made by subsection 
     (a) shall apply with respect to group health plans for plan 
     years beginning on or after October 1, 2001.
       (2) Individual market.--The amendments made by subsection 
     (b) shall apply with respect to health insurance coverage 
     offered, sold, issued, renewed, in effect, or operated in the 
     individual market on or after October 1, 2001.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Craig):
  S. 820. A bill to amend the Energy Policy Act of 1992 to assess 
opportunities to increase carbon storage on national forests derived 
from the public domain and to facilitate voluntary and accurate 
reporting of forest projects that reduce atmospheric carbon dioxide 
concentrations, and for other purposes; to the Committee on Energy and 
Natural Resources.
  Mr. WYDEN. Mr. President, today Senator Craig and I are introducing 
legislation that uses a simple, scientifically sound and entirely 
voluntary approach to combat global warming. It's not revolutionary, 
and it's not regulatory. We believe growing more trees, bigger trees 
and healthier trees is one of the most effective ways to remove 
greenhouse gases from the atmosphere and help protect the earth's 
climate. The Forest Resources for the environment and the Economy Act 
of 2001 will expand the nation's forested lands and put our forests on 
the frontlines in the battle against global warming.
  Investing in healthy forests today is an investment in the well-being 
of our planet for decades to come. In the Pacific Northwest, forests 
are more than critical environmental resources--they are also a 
cornerstone of our economy. In debates about forest policies, there are 
those who have advocated an exclusively environmental pathway, and 
others who have stressed an exclusively economic pathway. This bill is

[[Page 6956]]

part of what I believe is a third pathway through the woods, a path to 
both stronger rural economies and healthier forests.
  I introduced this bill with Senator Craig in the 106th Congress. 
Though there have been numerous changes to the bill to address specific 
concerns, the underlying functions of the bill remain the same: this 
bill will reduce the buildup of greenhouse gases in the atmosphere and 
help protect our global climate for ourselves, our children and our 
grandchildren. It will provide improved wildlife and fish habitats and 
protect our waterways. It will enhance our national forests by reducing 
water pollution within their watersheds. It will provide jobs in the 
forestry sector in areas that have been hard hit by declining timber 
harvests. And it will grow additional timber resources on 
underproductive private lands.
  The legislation does all of this through entirely voluntary, 
incentive-based approach. The bill makes new resources available to 
private landowners through state-operated revolving loan programs that 
provide assistance for tree planting and other forest management 
actions. I know that this approach works because of the leadership of 
my home state, Oregon. The loan program is modeled after the innovative 
Forest Resource Trust, which was established in Oregon in 1993, and is 
just one of the many ways Oregon continues to lead the nation in state 
actions to reduce greenhouse gas emissions. I am introducing this bill 
to make sure that we take advantage of these opportunities across the 
country and encourage more businesses to invest in the nation's 
forests.
  The bill is based on recommendations of the National Academy of 
Sciences to overcome the capital constraints that prevent non-
industrial, private forest land owners from growing healthy forests. 
Almost 10 million landowners in the United States own 42 percent of the 
non-industrial, private forest land in parcels of less than 100 acres. 
Access to the low-interest loans provided by this bill can empower 
these landowners to improve their lands while providing global 
environmental protection.
  In addition to establishing the state revolving loan programs, the 
bill makes important changes to the Energy Policy Act of 1992 to 
strengthen the voluntary accounting and verification of greenhouse gas 
reductions from forestry activities. The bill directs the Secretary of 
Agriculture to develop new guidelines on accurate and cost-effective 
methods to account for and report real and credible greenhouse gas 
reductions. These guidelines will be developed with the input of a new 
Advisory Council representing industry, foresters, states, and 
environment groups.
  As I said above, numerous changes have been made to the bill since 
its introduction in the 106th Congress. By a process of intellectual 
give and take between various Congressional offices, stakeholder groups 
and environmental organizations, this bill has been improved to offer 
greater environmental protection opportunities and better science. The 
bill now requires that all funded projects have ``a positive impact on 
watersheds, fish habitats, and wildlife diversity.'' It promotes 
reforestion activities for species that are native to a region. Also, 
the bill now allows flexibility in the loan repayment requirements that 
encourage the longer rotation, and permanent protection, of lands 
reforested under this program. In addition, the new Advisory Council 
will have three independent scientists instead of one and the members 
must have an expertise in forest management; carbon storage reporting 
will include monitoring requirements to assure the net increase of 
carbon storage; and the bill allows for the incorporation of the latest 
scientific and observational information. Overall, this bill is a solid 
step forward in the long journey towards addressing global climate 
change.
  As in the last Congress, this bill will pay for itself by taking the 
money that polluters pay when they are caught violating the Clean Air 
Act and Clean Water Act and use it to expand our forests, protect 
streams and rivers and help remove greenhouse gases from the air. In 
fiscal year 1998, $45 million of these environmental penalties were 
assessed against polluters. There are currently no guarantees that 
these penalties, which revert to the General Fund, are used to improve 
our environment. This bill would make this money available as loans to 
small and medium landowners to cover the upfront costs of tree planting 
and other activities that aid in the growth of healthy, productive 
forests and provide better wildlife habitats.
  We cannot afford to play Russian roulette with our global climate. 
The total amount of greenhouse gases in our atmosphere depends, in 
part, on the efficiency of forests and other natural ``sinks'' that 
absorb carbon dioxide--the most significant greenhouse gas--from the 
atmosphere. The implications are as simple as they are scientifically 
sound--if we grow more trees, bigger trees, and healthier trees, we 
will remove more greenhouse gases from the atmosphere and help protect 
the global climate. According to the Pacific Forest Trust, our forest 
lands in the United States are only storing one-quarter of the carbon 
they can ultimately store. Just tapping a portion of this potential by 
expanding and increasing the productivity of the nation's 737 million 
acres of forests is an important part of a win-win strategy to slow 
global warming. This bill takes an important first step toward 
sequestering greenhouse gases on Federal lands: it directs the Forest 
Service to report to Congress on options to increase carbon storage in 
our national forests.
  It is hard to believe that nine years ago, during the first Bush 
Administration, both Democrat and Republican Senators proclaimed their 
support for taking action to protect the climate system and reducing 
the buildup of greenhouse gases in the atmosphere. When the 1992 United 
Nations Framework Convention on Climate Change was ratified by the 
Senate, Senators from both parties came to the floor to applaud this 
commitment to begin reducing greenhouse gas emissions. And then-
President Bush supported that position as well. We cannot afford to let 
the current debates about international treaties paralyze this Congress 
when their are opportunities here at home to protect our environment in 
ways that also provide jobs and economic growth.
  This bill is about taking advantage of a clear win-win opportunity. 
It's a win for the global environment. It's a win for sustainable 
forestry. It's a win for local water protection. And it's a win for 
rural communities. For these reasons, the bill has already received 
positive reactions from timber companies and environmental 
organizations alike, including the National Association of State 
Foresters and the Society of American Foresters, American Forest and 
Paper Association, American Forests, Environmental Defense Fund, 
Governor John A. Kitzhaber of Oregon, PacificCorp, The Nature 
Conservancy, and The Pacific Forest Trust.
  I look forward to pursuing this common-sense step toward protecting 
the environment and supporting our forest workers. This bill will have 
a sequential referral to both the Senate Energy and Natural Resources 
Committee and the Senate Agriculture Committee. These Committees share 
jurisdiction over all our nations forests, public and private. They 
represent the interests of the people who use our forests from the 
National Forest visitor, to the large industrial land owner, to the 
small woodlot owner. Through the combined efforts of both of these 
Committees, I am sure that the bill will receive a thorough hearing. I 
look forward to starting this process with a hearing in early May in 
the Energy and Natural Resources Committee.
  I ask unanimous consent that the text of the bill and the section-by-
section analysis of the Forest Resources for the Environment and the 
Economy Act be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 820

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

[[Page 6957]]



     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Forest Resources for the 
     Environment and the Economy Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the Federal Government should increase the long-term 
     forest carbon storage on public land while pursuing existing 
     statutory objectives;
       (2) insufficient information exists on the opportunities to 
     increase carbon storage on public land through improvements 
     in forest land management;
       (3) important environmental benefits to national forests 
     can be achieved through cooperative forest projects that 
     enhance fish and wildlife habitats, water, and other 
     resources on public or private land located in national 
     forest watersheds;
       (4) forest projects also provide economic benefits, 
     including--
       (A) employment and income that contribute to the 
     sustainability of rural communities; and
       (B) ensuring future supplies of forest products;
       (5) monitoring and verification of forest carbon storage 
     provides an important opportunity to create employment in 
     rural communities and substantiate improvements in natural 
     habitats or watersheds due to forestry activities; and
       (6) sustainable production of biomass energy feedstocks 
     provides a renewable source of energy that can reduce carbon 
     dioxide emissions and improve the energy security of the 
     United States by diversifying energy fuels.
       (b) Purpose.--The purpose of this Act is to promote 
     sustainable forestry in the United States by--
       (1) increasing forest carbon sequestration in the United 
     States;
       (2) encouraging long term carbon storage in forests of the 
     United States;
       (3) improving water quality;
       (4) enhancing fish and wildlife habitats;
       (5) providing employment and income to rural communities;
       (6) providing new sources of forest products;
       (7) providing opportunities for use of renewable biomass 
     energy; and
       (8) improving the energy security of the United States.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Carbon sequestration.--The term ``carbon 
     sequestration'' means the action of vegetable matter in--
       (A) extracting carbon dioxide from the atmosphere through 
     photosynthesis;
       (B) converting the carbon dioxide to carbon; and
       (C) storing the carbon in the form of roots, stems, soil, 
     or foliage.
       (2) Forestry carbon activity.--The term ``forestry carbon 
     activity'' means a forest management action that--
       (A) increases carbon sequestration and/or maintains carbon 
     sinks,
       (B) encourages long-term carbon storage, and
       (C) has no net negative impact on watersheds and fish and 
     wildlife habitats.
       (a) Forest carbon program.--The term ``forest carbon 
     program'' means the program established by the Secretary of 
     Agriculture under section 5 of the Forest Resources for the 
     Environment and the Economy Act, to provide assistance 
     through cooperative agreements and State revolving loan 
     funds.
       (4) Forest carbon reservoir.--The term ``forest carbon 
     reservoir'' means trees, roots, soils, or other biomass 
     associated with forest ecosystems or products from the 
     biomass that store carbon.
       (5) Forest carbon storage.--The term ``forest carbon 
     storage'' means the quantity of carbon sequestered from the 
     atmosphere and stored in forest carbon reservoirs, including 
     forest products.
       (6) Forest land--
       (A) In general.--The term ``forest land'' means land that 
     is, or has been, at least 10 percent stocked by forest trees 
     of any size.
       (B) Inclusions.--The term ``forest land'' includes--
       (i) land that had such forest cover and that will be 
     naturally or artificially regenerated; and
       (ii) a transition zone between a forested and nonforested 
     area that is capable of sustaining forest cover.
       (7) Forest management action.--The term ``forest management 
     action'' means the practical application of forestry 
     principles to the regeneration, management, utilization, and 
     conservation of forests to meet specific goals and 
     objectives, while maintaining the productivity of the 
     forests, including management of forests for aesthetics, 
     fish, recreation, urban values, water, wilderness, wildlife, 
     wood products, and other forest values.
       (8) Invasive species.--The term ``invasive species'' means 
     any species that is not native to an ecosystem and whose 
     introduction does or is likely to cause economic or 
     environmental harm or harm to human health.
       (9) Nonindustrial private forest.--The term ``nonindustrial 
     private forest'' means forest land that is privately owned by 
     an individual or corporation that does not control a forest 
     products manufacturing facility and where management may 
     include objectives other than timber production.
       (10) Reforestation.--
       (A) In general.--The term ``reforestation'' means the 
     reestablishment of forest cover naturally or artificially.
       (B) Inclusions.--The term ``reforestation'' includes--
       (i) planned replanting;
       (ii) re-seeding; and
       (iii) natural regeneration.
       (11) revolving loan program.--The term ``revolving loan 
     program'' means a State revolving loan program established 
     under section 5.

     SEC. 4. CARBON MANAGEMENT ON FEDERAL LAND; CARBON MONITORING 
                   AND VERIFICATION GUIDELINES.

       (a) Definitions.--Title XVI of the Energy Policy Act of 
     1992 is amended by inserting before section 1601 (42 U.S.C. 
     13381) the following:

     ``SEC. 1600. DEFINITIONS.

       ``In this title:
       ``(1) Carbon sequestration.--The term `carbon 
     sequestration' means the action of vegetable matter in--
       ``(A) extracting carbon dioxide from the atmosphere through 
     photosynthesis;
       ``(B) converting the carbon dioxide to carbon; and
       ``(C) storing the carbon in the form of roots, stems, soil, 
     or foliage.'
       ``(2) Forest carbon storage.--The term `forest carbon 
     storage' means the quantity of carbon sequestered from the 
     atmosphere and stored in forest carbon reservoirs, including 
     forest products.
       ``(3) Forest carbon program.--The term `forest carbon 
     program' means the program established by the Secretary of 
     Agriculture under section 5 of the Forest Resources for the 
     environment and the Economy Act, to provide financial 
     assistance through cooperative agreements and State revolving 
     loan funds for forest carbon activities.
       ``(4) Forest carbon reservoir.--The term `forest carbon 
     reservoir' means trees, roots, soils, or other biomass 
     associated with forest ecosystems or products from the 
     biomass that store carbon.
       ``(5) Forest management action.--The term `forest 
     management action' means the practical application of 
     forestry principles to the regeneration, management, 
     utilization, and conservation of forests to meet specific 
     goals and objectives, while maintaining the productivity of 
     the forests, including management of forests for aesthetics, 
     fish, recreation, urban values, water, wilderness, wildlife, 
     wood products, and other forest values.''
       (b) Carbon Management on Federal Land.--Section 1604 of the 
     Energy Policy Act of 1992 (42 U.S.C. 13384) is amended--
       (1) by inserting ``(a) Report.--'' before ``Not''; and
       (2) by adding at the end the following:
       ``(b) Carbon Management on Federal Land.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this subsection, after consultation with 
     appropriate Federal agencies, the Secretary of Agriculture, 
     acting through the Chief of the Forest Service, shall report 
     to Congress on--
       ``(A) the quantity of carbon contained in the forest carbon 
     reservoir of the National Forest System and the methodology 
     and assumptions used to ascertain that quantity;
       ``(B) the potential to increase the quantity of carbon in 
     the National Forest System and provide positive impacts on 
     watersheds and fish and wildlife habitats through forest 
     management actions; and
       ``(C) the role of forests in the carbon cycle and the 
     contributions of U.S. forestry to the global carbon budget.
       ``(2) Contents.--The report shall also include an 
     assessment of any impacts of the forest management actions 
     identified under paragraph (1)(B) on timber harvests, 
     wildlife habitat, recreation, forest health, and other 
     statutory objectives of national forest system management.''
       (c) Monitoring and Verification of Carbon Storage.--Section 
     1605(b) of the Energy Policy Act of 1992 (42 U.S.C. 13385(b)) 
     is amended by adding at the end the following:
       (5) Guidelines on reporting, monitoring, and verification 
     of carbon storage from forest management actions.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of this paragraph, the Secretary of Agriculture, 
     acting through the Chief of the Forest Service, shall--
       ``(i) review the guidelines established under paragraph (1) 
     that address procedures for the accurate voluntary reporting 
     of greenhouse gas sequestration from tree planting and forest 
     management actions;
       ``(ii) make recommendations to the Secretary of Energy for 
     amendment of the guidelines; and
       ``(iii) provide an opportunity for public comment on the 
     guidelines established under subparagraph (A) prior to their 
     submission to the Secretary of Energy.
       ``(B) Carbon and forestry advisory council.--
       ``(i) Establishment.--The Secretary of Agriculture, acting 
     through the Chief of the Forest Service, shall establish a 
     Carbon and Forestry Advisory Council for the purpose of--
       ``(I) advising the Secretary of Agriculture in the 
     development and updating of guidelines for accurate voluntary 
     reporting of

[[Page 6958]]

     greenhouse gas sequestration from forest management actions;
       (II) evaluating the potential effectiveness of the 
     guidelines in verifying carbon inputs and outputs from 
     various forest management strategies;
       ``(III) estimating the effect of proposed implementation on 
     carbon sequestration and storage;
       ``(IV) assisting the Secretary of Agriculture in reporting 
     annually to Congress on the results of the carbon storage 
     program; and
       ``(V) assisting the Secretary of Agriculture in assessing 
     the vulnerability of forests to adverse effects of climate 
     change.
       ``(ii) Membership.--The Advisory Council shall be composed 
     of the following 16 members with interest and expertise in 
     carbon sequestration and forestry management, appointed by 
     the Secretaries of Agriculture and Energy:
       ``(I) 1 member representing national professional forestry 
     organizations;
       ``(II) 2 members representing environmental or conservation 
     organizations;
       ``(III) 1 member representing nonindustrial, private 
     landowners;
       ``(IV) 1 member representing forest industry;
       ``(V) 1 member representing American Indian Tribes;
       ``(VI) 1 member representing forest laborers;
       ``(VII) 3 members representing the academic scientific 
     community;
       ``(VII) 2 members representing State forestry 
     organizations;
       ``(IX) 1 member representing the Department of Energy;
       ``(X) 1 member representing the Environmental Protection 
     Agency;
       ``(XI) 1 member representing the Department of Agriculture;
       ``(XII) 1 member representing the Department of the 
     Interior
       ``(iii) Terms.--
       ``(I) In general.--Except as provided in subclause (III), a 
     member of the Advisory Council shall be appointed for a term 
     of 3 years.
       ``(II) Consecutive terms.--No individual may serve on the 
     Advisory Council for more than 2 consecutive terms.
       ``(III) Initial terms.--Of the members first appointed to 
     the Advisory Council--
       ``(aa) 1 member appointed under each of subclauses (II), 
     (VI), (VII), (X), and (XIII) of clause (ii) shall serve an 
     initial term of 1 year; and
       ``(bb) 1 member appointed under each of subclauses (I), 
     (IV), (VII), (IX), (XI), and (XIV) shall serve an initial 
     term of 2 years.
       ``(iv) Vacancy.--A vacancy on the Advisory Council shall be 
     filled in the manner in which the original appointment was 
     made.
       ``(v) Continuation.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term shall be 
     appointed only for the remainder of the term.
       ``(vi) Compensation.--
       ``(I) In general.--Except as provided in subclause (II), a 
     member of the Advisory Council shall serve without 
     compensation, but may be reimbursed for reasonable costs 
     incurred while in the actual performance of duties vested in 
     the Advisory Council.
       ``(II) Federal officers and employees.--A member of the 
     Advisory Council who is a full-time officer or employee of 
     the United States shall receive no additional compensation or 
     allowances because of the service of the member on the 
     Advisory Council.
       ``(III) Support.--The Secretary shall provide financial and 
     administrative support for the Advisory Council.
       ``(vii) Use of existing council.--The Secretary of 
     Agriculture may use an existing council to perform the tasks 
     of the Carbon and Forestry Advisory Council providing--
       ``(I) Council representation, membership terms and 
     background, and Council responsibilities reflect those stated 
     in subparagraph (B), and
       ``(II) The responsibilities of the Council, as described in 
     subparagraph (A), are a priority for the Council.
       ``(C) Criteria.--
       ``(i) In general.--The recommendations described in 
     subparagraph (A)(ii) shall include reporting guidelines 
     that--
       ``(I) are based on--
       ``(aa) measuring increases in carbon storage in excess of 
     the carbon storage that would have occurred in the absence of 
     the reforestation, forest management, forest protection, or 
     other forest management actions; and
       ``(bb) comprehensive carbon accounting that reflects net 
     increases in the carbon reservoir and takes into account any 
     carbon emissions resulting from disturbance of carbon 
     reservoirs existing at the start of a forest management 
     action;
       ``(II) include options for--
       ``(aa) estimating the indirect effects of forest management 
     actions on carbon storage, including possible emissions of 
     carbon that may result elsewhere as a result of the project's 
     impact on timber supplies or possible displacement of carbon 
     emissions to other lands owned by the reporting party;
       ``(bb) quantifying the expected carbon storage over various 
     time periods, taking into account the likely duration of 
     carbon stored in the carbon reservoir; and
       ``(cc) considering the economic and social affects of 
     management alternatives.
       ``(ii) Accurate monitoring, measurement, and 
     verification.--
       ``(I) In General.--The recommendations described in 
     subparagraph (A)(ii) shall include recommended practices for 
     monitoring, measurement, and verification of carbon storage 
     from forest management actions.
       ``(II) Requirements.--The recommended practices shall, to 
     the maximum extent practicable--
       ``(aa) be based on statistically sound sampling strategies 
     that build on knowledge of the carbon dynamics of forests and 
     agricultural land;
       ``(bb) include cost-effective combinations of field 
     conditions measurements with modeling to compute carbon 
     stocks and changes in stocks;
       ``(cc) include guidance on how to sample and calculate 
     carbon sequestration across multiple participating 
     ownerships; and
       ``(dd) do not prevent use of more precise measurements, if 
     desired by a reporting entity.
       ``(D) State forest carbon programs.--The recommendations 
     described in subparagraph (A)(ii) shall include guidelines to 
     States for reporting, monitoring, and verifying carbon 
     storage under the forest carbon program.
       ``(E) Biomass energy projects.--The recommendations 
     described in subparagraph (A)(ii) shall include guidelines 
     for calculating net greenhouse gas reductions from biomass 
     energy projects, including--
       ``(i) net changes in carbon storage resulting from changes 
     in land use; and
       ``(ii) the effect that using biomass to generate 
     electricity (including co-firing of biomass with fossil 
     fuels) has on the displacement of greenhouse gas emissions 
     from fossil fuels.
       ``(F) Amendment of guidelines.--Not later than 180 days 
     after receiving the recommendations from the Secretary of 
     Agriculture, the Secretary of Energy, acting through the 
     Administrator of the Energy Information Administration, shall 
     revise the guidelines established under paragraph (1) to 
     include the recommendations.
       ``(G) Review of guidelines by the advisory council.--
       ``(i) Periodic review.--At least every 24 months, the 
     Secretary of Agriculture shall--
       ``(I) convene the Advisory Council to evaluate the latest 
     scientific and observational information on reporting, 
     monitoring, and verification of carbon storage from forest 
     management actions; and
       ``(II) issue revised guidelines for reporting, monitoring, 
     and verification of carbon storage from forest management 
     actions as necessary.
       ``(ii) Consistency with future laws.--The Secretary of 
     Agriculture shall convene the Advisory Council as necessary 
     to ensure that the guidelines for reporting, monitoring, and 
     verification of carbon storage from forest management actions 
     are revised to be consistent with any Federal laws enacted 
     after the date of enactment of this Act.
       ``(6) Monitoring of forest carbon programs.--
       ``(A) In general.--Forest Carbon Program reports shall--
       ``(i) be developed in accordance with the guidelines issued 
     under paragraph (1),
       ``(ii) state the quantity of carbon storage realized;
       ``(iii) include the data used to monitor and verify the 
     carbon storage,
       ``(iv) be consistent with reporting requirements of the 
     Energy Information Administration, and
       ``(v) ensure the avoidance of double counting of forest 
     carbon activities.
       ``(B) States and cooperative agreement participants.--
     States receiving assistance to establish revolving loans and 
     entities participating in cooperative agreements for forest 
     carbon programs shall--
       ``(i) monitor and verify carbon storage achieved under the 
     program in accordance with guidelines issued under 
     subparagraph (5)(E),
       ``(ii) report annually to the Secretary of Agriculture on 
     the results of the carbon storage program, and
       ``(iii) report annually to any non-governmental 
     organization, business, or other entity that provides funding 
     for the carbon storage program.
       ``(C) Secretary of agriculture.--
       ``(i) In general.--The Secretaries shall report annually to 
     Congress on the results of the carbon storage program.
       ``(ii) Inclusions.--The report shall include--
       ``(I) specifications consistent with subparagraph (A),
       ``(II) an assessment of the effectiveness of monitoring and 
     verification,
       ``(III) a report on carbon activities associated with 
     cooperative agreements for the forest carbon program, and
       ``(IV) a State Forest Carbon Program compliance report 
     established by--
       ``(aa) reviewing reports submitted by states under clause 
     (B)(ii),
       ``(bb) verifying compliance with the guidelines under 
     subparagraph (A),
       ``(cc) notifying the State of compliance status,
       ``(dd) notifying the State of any corrections that are 
     needed to attain compliance, and

[[Page 6959]]

       ``(ee) establishing an opportunity for re-submission by the 
     State.''

     SEC. 5. FOREST CARBON COOPERATIVE AGREEMENTS AND LOAN 
                   PROGRAM.

       (a) Forest Carbon Cooperative Agreement.--The Secretary may 
     enter into cooperative agreements with willing landowners 
     from State or local governments, American Indian tribes, 
     Alaska Natives, native Hawaiians and private, nonprofit 
     entities for forest carbon activities on private land, state 
     land, American Indian land, Alaska Native land, or native 
     Hawaiian land.
       (b) Forest Carbon Revolving Loan Program.--
       (1) In general.--In collaboration with State Foresters and 
     non-governmental organizations, the Secretary shall provide 
     assistance to States so that States may establish a revolving 
     loan program for forest carbon activities on non-industrial 
     private forest (NIPF) land.
       (2) Eligibility.--An owner of non-industrial private forest 
     land shall be eligible for assistance from a revolving loan 
     fund for forest carbon activity on not more than a total of 
     5,000 acres of their NIPF land holdings.
       (3) Loan terms.--A loan agreement under the program shall--
       (A) have loan interest rates that are established by the 
     State--
       (i) as necessary to encourage participation of NIPF 
     landowners in the loan program,
       (ii) not to exceed a real rate of return in excess of 3%, 
     and
       (iii) that will further the forest carbon program 
     objectives;
       (B) require that all loan obligations be repaid to the 
     State--
       (i) at the time of harvest of land covered by the program; 
     or
       (ii) in accordance with any other repayment schedule 
     determined by the State;
       (iii) proportional to the percentage decrease of carbon 
     stock;
       (C) include provisions that provide for private insurance 
     or that otherwise release the owner from the financial 
     obligation for any portion of the timber, forest products, or 
     other biomass that--
       (i) is lost to insects, disease, fire, storm, flood, or 
     other natural destruction through no fault of the owner; or
       (ii) cannot be harvested because of restrictions on tree 
     harvesting imposed by the Federal State, or local government 
     after the date of the agreement;
       (D) impose a lien on all timber, forest products, and 
     biomass grown on land covered by the loan, with an assurance 
     that the terms of the lien shall transfer with the land on 
     sale, lease, or transfer of the land;
       (E) include a buyout option that--
       (i) specifies financial terms allowing the owner to 
     terminate the agreement before harvesting timber from the 
     stand established with loan funds; and
       (ii) repays the loan with interest;
       (F) recognize that, until the loan is paid in full by the 
     participating landowner or otherwise terminated in accordance 
     with this Act, all reductions in atmospheric greenhouse gases 
     achieved by the project funded by the loan are attributable 
     to the non-Federal entities that provide funding for a loan 
     (including the State or any other person, company, or non-
     governmental organization that provides funding to the State 
     for purposes of issuing the loan); and
       (G) include provisions for the monitoring and verification 
     of carbon storage.
       (4) Cancellation of loan terms for permanent 
     conservation.--
       (A) In general.--The State shall cancel the loan agreement 
     under paragraph (3) and any liens on the timber, forest 
     products, and biomass under paragraph (3)(C) if the borrower 
     donates to the State or may cancel the loan agreement under 
     paragraph (3) and any liens on the timber, forest products, 
     and biomass under paragraph (3)(C) if the borrower donates to 
     another appropriate entity a permanent conservation easement 
     that--
       (i) furthers the purposes of this Act, including managing 
     the land in a manner that maximizes the forest carbon 
     reservoir of the land; and
       (ii) permanently protects the covered private forest land 
     and resources at a level above what is required under 
     applicable Federal, State, and local law.
       (B) Continuation of forest management actions.--The 
     conservation easement may allow the continuation of forest 
     management actions that increase carbon storage on the land 
     and forest or otherwise further the purposes of this Act.
       (5) Reinvestment of funds.--All funds collected under a 
     loan issued under this subsection (including loan repayments, 
     loan buyouts, and any interest payments) shall be reinvested 
     by the State in the program and used by the State to make 
     additional loans under the program in accordance with this 
     subsection.
       (6) Records.--The State Forester shall--
       (A) maintain all records related to any loan agreement 
     funded from a revolving loan fund; and
       (B) make the records available to the public.
       (7) Matching funds.--
       (A) In general.--In order to be eligible to continue 
     participating in the program, any State in the program under 
     this section shall provide matching funds equal to at least 
     25 percent of the Federal funds made available to the State 
     for the program, beginning the second year of program 
     participation.
       (B) Form.--The State may provide the matching funds in the 
     form of in-kind administrative services, technical 
     assistance, and procedures to ensure accountability for the 
     use of Federal funds.
       (8) Loan funding distribution.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, in consultation with State Foresters, 
     the Secretary shall--
       (i) establish a formula under which Federal funds shall be 
     distributed under this subsection among eligible States; and
       (ii) report the formula and methodology to Congress.
       (B) Basis.--The formula shall--
       (i) be based on maximizing the potential for meeting the 
     objectives of this Act;
       (ii) give appropriate consideration to--
       (I) the acreage of un-stocked or under-producing private 
     forest land in each State;
       (II) the potential productivity of such land;
       (III) the potential long-term carbon storage of such land;
       (IV) the potential to achieve other environmental benefits;
       (V) the number of owners eligible for loans under this 
     section in each State; and
       (VI) the need for reforestation, timber stand improvement, 
     or other forestry investments consistent with the objectives 
     of this Act; and
       (iii) give priority to States that have experienced or are 
     expected to experience significant declines in employment 
     levels in the forestry industries due to declining timber 
     harvests on Federal land.
       (9) Private funding.--A revolving loan fund may accept and 
     distribute as loans any funds provided by non-governmental 
     organizations, businesses, or persons in support of the 
     purposes of this Act.
       (10) Bonneville power administration.--
       (A) In general.--The States of Washington, Oregon, Idaho, 
     and Montana may apply for funding from the Bonneville Power 
     Administration for purposes of funding loans that meet both 
     the objectives of this Act and the fish and wildlife 
     objectives of the Bonneville Power Administration under the 
     Pacific Northwest Electric Power and Conservation Act (16 
     U.S.C. 839 et seq.).
       (B) Application of requirements under other law.--An 
     application under subparagraph (A) shall be subject to all 
     rules and procedures established by the Pacific Northwest 
     Electric Power and Conservation Planning Council and the 
     Bonneville Power Administration under the Pacific Northwest 
     Electric Power and Conservation Act (16 U.S.C. 839 et seq.).
       (c) Requirements.--
       (1) Eligible forestry carbon activities.--Eligible forestry 
     carbon activities that--
       (A) help restore under-producing or understocked forest 
     lands,
       (B) provide for protection of forests from non-forest use,
       (C) allow a variety of sustainable management alternatives, 
     and
       (D) have no net negative impact on watersheds and fish and 
     wildlife habitats.
       (2) Guidance.--The Secretary, working through the US Forest 
     Service and in collaboration with States, shall provide 
     guidance on eligible forestry carbon activities based on the 
     criteria of this section.
       (3) Activities required under other law.--Funding shall not 
     be provided under this section for activities required under 
     other applicable Federal, State, or local laws.
       (4) Pre-agreement activities.--Funding shall not be 
     provided for costs incurred before entering into a 
     cooperative or loan agreement under this Act.
       (5) Limitation on land considered for funding.--No new loan 
     agreements shall be entered into under this section to fund 
     reforestation of land harvested after the date of enactment 
     of this Act if the landowner received revenues from the 
     harvest sufficient to reforest the land.
       (6) Eligible tree species.--
       (A) In general.--Selection of tree species for loan 
     projects shall be consistent with Executive Order No. 13112, 
     ``Invasive Species''.
       (B) Program funding.--Funding for reforestation activities 
     shall be provided for--
       (i) tree species native to a region,
       (ii) tree species that formerly occupied the site, or
       (iii) non-native tree species or hybrids that are non-
     invasive.
       (7) Forest-management plan.--Priority shall be given to 
     projects on land under a forestry management plan or forest 
     stewardship plan, if the plan is consistent with the 
     objectives of the carbon storage program.
       (8) Use of funds.--
       (A) funds will be used to pay--
       (i) the cost of purchasing and planting tree seedings; and
       (ii) other costs associated with the planted trees, 
     including planning, site preparation, forest management, 
     monitoring, measurement and verification, and consultant and 
     contractor fees.
       (B) funds will not be used to--
       (i) pay the owner for the owner's own labor; or
       (ii) purchase capital items or expendable items, such as 
     vehicles, tools, and other equipment.

[[Page 6960]]

       (9) Financial assistance amount.--The amount of financial 
     assistance provided under this section shall not exceed--
       (A) 100 percent of total project costs, whether they 
     constitute the only funding source or are used in combination 
     with funds received from any other source; or
       (B) $100,000 during any 2-year period.
       (10) Federal funding.--During fiscal years 2001 through 
     2010, civil penalties collected under section 113 of the 
     Clean Air Act (42 U.S.C. 7413) and under section 309(d) of 
     the Federal Water Pollution Control Act (33 U.S.C. 1319(d)) 
     shall be available, without further appropriation, to fund 
     cooperative agreements and revolving loan funds authorized in 
     this section.
       (11) Allocation of funds.--
       (A) In general.--The Secretary shall--
       (i) allocate 15 percent of available funds for Cooperative 
     agreements as specified under subsection (a), and
       (ii) allocate 85 percent of available funds for State 
     revolving loan programs as specified under subsection (b), 
     after determining that States have implemented a system to 
     administer the loans in accordance with this Act.
                                  ____


 The Forest Resources for the Environment and the Economy Act--Section-
                          by-Section Analysis

       The purposes of the bill are to develop monitoring and 
     verification systems for carbon reporting in forestry, to 
     increase carbon sequestration in forests by encouraging 
     private sector investment in forestry, and to promote 
     employment in forestry in the United States. The bill 
     achieves these purposes through three major actions: (1) 
     Guidelines for Accurate Carbon Accounting for Forests.--The 
     bill directs the Secretary of Agriculture, through the Forest 
     Service, to establish scientifically-based guidelines for 
     accurate reporting, monitoring, and verification of carbon 
     storage from forest management actions. The bill establishes 
     a multi-stakeholder Carbon and Forestry Advisory Council to 
     assist USDA in developing the guidelines.
       (2) Report on Options to Increase Carbon Storage on Federal 
     Lands--The bill directs the Secretary of Agriculture, through 
     the Forest Service, to report to Congress on forestry options 
     to increase carbon storage in the National Forest System.
       (3) State Revolving Loan Programs/Cooperative Agreements--
     The bill provides assistance to plant and manage 
     underproducing or understocked forests to increase carbon 
     sequestration. Assistance is provided through Cooperative 
     Agreements with State or local governments, American Indian 
     Tribes, Alaska natives, native Hawaiians, and private-
     nonprofit entities; or through loans to nonindustrial private 
     forest landowners. The Federal share of funding for 
     Cooperative Agreements and the loan program will come from 
     penalties that are being assessed against violators of the 
     Clean Air Act and the Clean Water Act (civil penalties 
     assessed in FY 1998 totaled $45 million).


                         section 1. short title

       The title of the bill is the ``Forest Resources for the 
     Environment and the Economy Act''.


                    SECTION 2. FINDINGS AND PURPOSES

       This section states the findings of the bill, including: 
     there is a need or additional information opportunities to 
     increase carbon storage on public land through improvements 
     in forest land management; monitoring and verification of 
     forest carbon storage can provide employment opportunities 
     for rural communities; and the sustainable production of 
     biomass energy feedstocks provides a renewable source of 
     energy that can improve the energy security of the United 
     States.
       This section also states the purposes of the bill: to 
     increase carbon sequestration in forests; to provide 
     employment and income to rural communities; and to improve 
     the energy security of the United States by providing 
     opportunities for development of renewable biomass energy.


                         section 3. definitions

       This section defines terms used in the bill, including the 
     following: ``Carbon sequestration''; ``Forestry carbon 
     activity''; ``Forest carbon program''; ``Forest carbon 
     reservoir''; ``Forest carbon storage''; ``Forest land''; 
     ``Forest management action''; ``Invasive species''; 
     ``Nonindustrial private forest''; ``Reforestation''; and 
     ``Revolving loan program''.


  section 4. carbon management on federal land; carbon monitoring and 
                        verification guidelines

       This section amends Title XVI (``Global Climate Change'') 
     of the Energy Policy Act of 1992.
       (a) Definitions: This subsection amends the Energy Policy 
     Act to add the definitions for ``carbon 
     sequestration''``forest carbon storage,'' ``forest carbon 
     program,'' ``forest carbon reservoir,'' and ``forest 
     management action'' that were specified in Section 3.
       (b) Carbon Management on Federal Land: This subsection 
     directs the Secretary of Agriculture to report to Congress on 
     the quantity of carbon contained in the forest carbon 
     reservoir in the national forest system. The report will 
     include an assessment of forest management actions that can 
     increase carbon storage on these national forest system 
     lands. Finally, the report will include an assessment of the 
     role of forests in the carbon cycle and the contributions of 
     forestry to the global carbon budget. This subsection is 
     accomplished by amendment to section 1604 of the Energy 
     Policy Act (``Assessment of Alternative Policy Mechanisms for 
     Addressing Greenhouse Gas Emissions'').
       (c) Monitoring and Verification of Carbon Storage. This 
     subsection amends section 1605(b) of the Energy Policy Act 
     (``Voluntary Reporting''). It directs the Secretary of 
     Agriculture to review the existing Federal guidelines on 
     reporting, monitoring, and verification of carbon storage 
     from forest management actions and to make recommendations to 
     the Secretary of Energy for amendment of the guidelines.
       Carbon and Forestry Advisory Council: This subsection also 
     directs the Secretary of Agriculture to establish a 16-
     member, multi-stakeholder Carbon and Forestry Advisory 
     Council for the purpose of advising the Department of 
     Agriculture on: the development of the guidelines for 
     accurate voluntary reporting of greenhouse gas sequestration 
     from forest management actions, and for other purposes.
       Criteria: The guidelines developed by the Secretary of 
     Agriculture must take account of additionality and leakage. 
     The guidelines must include recommended practices for 
     monitoring, measurement and verification of carbon storage 
     that are scientifically sound and cost-effective.
       State Forest Carbon Programs: The guidelines will include 
     guidance to States for reporting, monitoring and verifying 
     carbon storage achieved under the carbon storage program 
     established in Section 5 of the bill.
       Biomass energy projects: The guidelines will include 
     guidance on calculating net greenhouse gas reductions from 
     biomass energy projects.
       Amendment of guidelines: The subsection directs the 
     Secretary of Energy to revise the existing voluntary 
     reporting guidelines to include the recommendations provided 
     by the Secretary of Agriculture.
       Review of guidelines: Guidelines must be reviewed at least 
     every 24 months, and as necessary for consistency with any 
     future Federal laws that credit for reductions of atmospheric 
     greenhouse gas concentrations resulting from forest 
     management actions.
       Monitoring of Forest Carbon Programs: Participants in the 
     Forest Carbon Program established in Section 5 of the bill 
     must report annually to the Secretary of Agriculture on the 
     results of the program. Reports that are certified to comply 
     with the guidelines in this section will be submitted to the 
     Department of Energy for inclusion in the 1605(b) voluntary 
     reporting data base.


    section 5. forest carbon cooperative agreements and loan program

       This section authorizes the Secretary of Agriculture to 
     enter into cooperative agreements and directs the Secretary 
     to provide assistance to States to establish revolving loan 
     funds to undertake forestry carbon activities.
       (a) Forest Carbon Activity Cooperative Agreements. This 
     subsection authorizes the Secretary of Agriculture to enter 
     into cooperative agreements with willing State or local 
     governments, American Indian tribes, Alaska natives, native 
     Hawaiians, and private-nonprofit landowners for forest carbon 
     activities.
       (b) Forest Carbon Activity Revolving Loan Program. This 
     subsection establishes a program to provide assistance 
     through State established revolving loan funds to 
     nonindustrial private forest land owners (NIPF) for eligible 
     forest carbon activities. Requirements include:
       Eligibility: Funds may be used to support eligible forest 
     carbon activities on not more than 5,000 acres of an NIPF 
     landowners' holdings.
       Loan terms: Loans must be repaid with interest at a rate 
     not to exceed a 3 percent real rate of return. They must be 
     repaid when the land is harvested, although the owner may pay 
     off the loan prior to harvesting. Loans must include a 
     transferable lien on all timber, forest products and biomass. 
     The State assumes the risk of loss of timber due to natural 
     disaster. A loan agreement must include recognition that, 
     until the loan is paid off, all reductions in atmospheric 
     greenhouse gases achieved by projects funded by the loan are 
     attributable to the entity that provides funding for the 
     loan.
       Permanent conservation easements: Loan recipients can 
     cancel the loan by donating a permanent conservation 
     easement.
       Reinvestment of funds: All repayments collected by a State 
     must be reinvested in the program and used by the State to 
     make additional loans.
       Records: The State Forester shall maintain all loan records 
     and make them available to the public.
       Matching funds: A State must match Federal funding by at 
     least 25% beginning in the second year of participating in 
     the program.
       Loan Funding Distribution: The Secretary will report to 
     Congress on a formula under which Federal funds will be 
     distributed among eligible States. The distribution formula 
     will give priority to States that have experienced or are 
     expected to experience significant declines in employment 
     levels in the forestry industries due to declining timber 
     harvests on Federal land.

[[Page 6961]]

       Private funding: A revolving loan fund may accept any funds 
     provided by nongovernmental organizations, businesses or 
     persons for the purpose of this Act.
       Bonneville Power Administration (BPA): States served by BPA 
     (Washington, Oregon, Idaho and Montana) may apply for funding 
     from BPA for purposes of funding loans that meet both the 
     objectives of this Act and the fish and wildlife objectives 
     of BPA under current law.
       (c) Requirements: This subsection specifies requirements of 
     any financial assistance arrangement for forest carbon 
     activities.
       Eligibility: This gives a general definition of eligible 
     forestry carbon activities.
       Guidance: The Forest Service, in collaboration with the 
     States, will provide guidance on eligible forestry carbon 
     activities.
       Activities require under law: Funding shall not be provided 
     for activities required under existing laws.
       Pre-agreements: Funding shall not be provided for costs 
     already incurred.
       Limitation on land considered for funding: No funding shall 
     be provided for reforestation of land that has been 
     harvested, if the landowner received revenues from the 
     harvest sufficient to reforest the land.
       Eligible tree species: Planted tress must be native or non-
     invasive species.
       Forest management plan: Priority shall be given to projects 
     on land under a forest management plan or forest stewardship 
     plan.
       Use of funds: Funds shall be used for planting of trees and 
     their management.
       Financial assistance amount: Cooperative agreements or 
     loans may cover up to 100 percent of total project costs, not 
     to exceed $100,000 during any 2-year period.
       Authorization of appropriations: Authorizes funding from FY 
     2001 to FY 2010 at amounts equal to civil penalties collected 
     under the Clean Water Act and the Clean Air Act, which 
     currently revert to the Treasury as General Revenues. In 
     fiscal year 1998, $45 million in penalties were assessed.
       Allocation of funds: The Secretary shall allocate 15 
     percent of available funds for cooperative agreements and the 
     remaining 85 percent for the State revolving loan fund.
                                 ______
                                 
      By Mr. FRIST (for himself and Mr. Thompson):
  S. 821. A bill to amend the Tennessee Valley Authority Act of 1933 to 
modify provisions relating to the Board of Directors of the Tennessee 
Valley Authority, and for other purposes; to the Committee on Energy 
and Natural Resources.
  Mr. FRIST. Mr. President, today I introduce the ``TVA Modernization 
Act of 2001'' along with Senator Thompson. This bill would expand and 
restructure TVA's Board of Directors to make it reflect the board 
structure of most large corporations.
  TVA is now a multi-billion dollar per year corporation. However, it 
continues to function under a Depression-era administrative structure. 
By expanding the board and restructuring it more like a corporation's 
board, TVA will be in a better position to meet the future challenges 
facing TVA and the energy industry as a whole.
  Specifically, this legislation would create a nine-member, part-time 
board made up of experts in corporate management and strategic decision 
making. Each member would be required to be a legal resident of the TVA 
service area, and each member would receive an annual stipend. The 
board would appoint a CEO who would be responsible for daily management 
decisions. Currently, the board is comprised of three full-time 
members, although one position is currently vacant, and the Chairman 
acts as the CEO.
  This legislation provides the organizational structure necessary for 
TVA's future. With proper leadership and sound management practices, 
TVA can continue to improve and more efficiently provide its valuable 
services.
  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. 821

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

     SECTION 1. CHANGE IN COMPOSITION, OPERATION, AND DUTIES OF 
                   THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY 
                   AUTHORITY.

       (a) In General.--The Tennessee Valley Authority Act of 1933 
     (16 U.S.C. 831 et seq.) is amended by striking section 2 and 
     inserting the following:

     ``SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE BOARD OF 
                   DIRECTORS.

       ``(a) Membership.--
       ``(1) Appointment.--The Board of Directors of the 
     Corporation (referred to in this Act as the `Board') shall be 
     composed of 9 members appointed by the President by and with 
     the advice and consent of the Senate, who shall be legal 
     residents of the service area.
       ``(2) Chairman.--The members of the Board shall select 1 of 
     the members to act as chairman of the Board.
       ``(b) Qualifications.--
       ``(1) In general.--To be eligible to be appointed as a 
     member of the Board, an individual--
       ``(A) shall be a citizen of the United States;
       ``(B) shall have widely recognized experience or applicable 
     expertise in the management of or decisionmaking for a large 
     corporate structure;
       ``(C) shall not be an employee of the Corporation;
       ``(D) shall have no substantial direct financial interest 
     in--
       ``(i) any public-utility corporation engaged in the 
     business of distributing and selling power to the public; or
       ``(ii) any business that may be adversely affected by the 
     success of the Corporation as a producer of electric power; 
     and
       ``(E) shall profess a belief in the feasibility and wisdom 
     of this Act.
       ``(2) Party affiliation.--Not more than 5 of the 9 members 
     of the Board may be affiliated with a single political party.
       ``(c) Recommendations.--In appointing members of the Board, 
     the President shall--
       ``(1) consider recommendations from such public officials 
     as--
       ``(A) the Governors of States in the service area;
       ``(B) individual citizens;
       ``(C) business, industrial, labor, electric power 
     distribution, environmental, civic, and service 
     organizations; and
       ``(D) the congressional delegations of the States in the 
     service area; and
       ``(2) seek qualified members from among persons who reflect 
     the diversity and needs of the service area of the 
     Corporation.
       ``(d) Terms.--
       ``(1) In general.--A member of the Board shall serve a term 
     of 5 years, except that in first making appointments after 
     the date of enactment of this paragraph, the President shall 
     appoint--
       ``(A) 2 members to a term of 2 years;
       ``(B) 1 member to a term of 3 years; and
       ``(C) 2 members to a term of 4 years.
       ``(2) Vacancies.--A member appointed to fill a vacancy in 
     the Board occurring before the expiration of the term for 
     which the predecessor of the member was appointed shall be 
     appointed for the remainder of that term.
       ``(3) Reappointment.--
       ``(A) In general.--A member of the Board that was appointed 
     for a full term may be reappointed for 1 additional term.
       ``(B) Appointment to fill vacancy.--For the purpose of 
     subparagraph (A), a member appointed to serve the remainder 
     of the term of a vacating member for a period of more than 2 
     years shall be considered to have been appointed for a full 
     term.
       ``(e) Quorum.--
       ``(1) In general.--Six members of the Board shall 
     constitute a quorum for the transaction of business.
       ``(2) Minimum number of members.--A vacancy in the Board 
     shall not impair the power of the Board to act, so long as 
     there are 6 members in office.
       ``(f) Compensation.--
       ``(1) In general.--A member of the Board shall be entitled 
     to receive--
       ``(A)(i) a stipend of $30,000 per year; plus
       ``(ii) compensation, not to exceed $10,000 for any year, at 
     a rate that does not exceed the daily equivalent of the 
     annual rate of basic pay prescribed under level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code, for each day the member is engaged in the actual 
     performance of duties as a member of the Board at meetings or 
     hearings; and
       ``(B) travel expenses, including per diem in lieu of 
     subsistence, in the same manner as persons employed 
     intermittently in Government service under section 5703 of 
     title 5, United States Code.
       ``(2) Adjustments in stipends.--The amount of the stipend 
     under paragraph (1)(A)(i) shall be adjusted by the same 
     percentage, at the same time and manner, and subject to the 
     same limitations as are applicable to adjustments under 
     section 5318 of title 5, United States Code.
       ``(g) Duties.--
       ``(1) In general.--The Board shall--
       ``(A) establish the broad goals, objectives, and policies 
     of the Corporation that are appropriate to carry out this 
     Act;
       ``(B) develop long-range plans to guide the Corporation in 
     achieving the goals, objectives, and policies of the 
     Corporation and provide assistance to the chief executive 
     officer to achieve those goals, objectives, and policies, 
     including preparing the Corporation for fundamental changes 
     in the electric utilities industry;
       ``(C) ensure that those goals, objectives, and policies are 
     achieved;
       ``(D) approve an annual budget for the Corporation;
       ``(E) establish a compensation plan for employees of the 
     Corporation in accordance with subsection (i);
       ``(F) approve the salaries, benefits, and incentives for 
     managers and technical personnel that report directly to the 
     chief executive officer;

[[Page 6962]]

       ``(G) ensure that all activities of the Corporation are 
     carried out in compliance with applicable law;
       ``(H) create an audit committee, composed solely of Board 
     members independent of the management of the Corporation, 
     which shall--
       ``(i) recommend to the Board an external auditor;
       ``(ii) receive and review reports from the external 
     auditor; and
       ``(iii) make such recommendations to the Board as the audit 
     committee considers necessary;
       ``(I) create such other committees of Board members as the 
     Board considers to be appropriate;
       ``(J) conduct public hearings on issues that could have a 
     substantial effect on--
       ``(i) the electric ratepayers in the service area; or
       ``(ii) the economic, environmental, social, or physical 
     well-being of the people of the service area; and
       ``(K) establish the electricity rate schedule.
       ``(2) Meetings.--The Board shall meet at least 4 times each 
     year.
       ``(h) Chief Executive Officer.--
       ``(1) Appointment.--The Board shall appoint a person to 
     serve as chief executive officer of the Corporation.
       ``(2) Qualifications.--To serve as chief executive officer 
     of the Corporation, a person--
       ``(A) shall be a citizen of the United States;
       ``(B) shall have management experience in large, complex 
     organizations;
       ``(C) shall not be a current member of the Board or have 
     served as a member of the Board within 2 years before being 
     appointed chief executive officer; and
       ``(D) shall have no substantial direct financial interest 
     in--
       ``(i) any public-utility corporation engaged in the 
     business of distributing and selling power to the public; or
       ``(ii) any business that may be adversely affected by the 
     success of the Corporation as a producer of electric power; 
     and
       ``(3) Tenure.--The chief executive officer shall serve at 
     the pleasure of the Board.
       ``(i) Compensation Plan.--
       ``(1) In general.--The Board shall approve a compensation 
     plan that specifies salaries, benefits, and incentives for 
     the chief executive officer and employees of the Corporation.
       ``(2) Annual survey.--The compensation plan shall be based 
     on an annual survey of the prevailing salaries, benefits, and 
     incentives for similar work in private industry, including 
     engineering and electric utility companies, publicly owned 
     electric utilities, and Federal, State, and local 
     governments.
       ``(3) Considerations.--The compensation plan shall provide 
     that education, experience, level of responsibility, 
     geographic differences, and retention and recruitment needs 
     will be taken into account in determining salaries of 
     employees.
       ``(4) Submission to congress.--No salary shall be 
     established under a compensation plan until after the 
     compensation plan and the survey on which it is based have 
     been submitted to Congress and made available to the public 
     for a period of 30 days.
       ``(5) Positions at or below level iv.--The chief executive 
     officer shall determine the salary and benefits of employees 
     whose annual salary is not greater than the annual rate 
     payable for positions at level IV of the Executive 
     Schedule under section 5315 of title 5, United States 
     Code.
       ``(6) Positions above level iv.--On the recommendation of 
     the chief executive officer, the Board shall approve the 
     salaries of employees whose annual salaries would be in 
     excess of the annual rate payable for positions at level IV 
     of the Executive Schedule under section 5315 of title 5, 
     United States Code.''.
       (b) Current Board Members.--A member of the board of 
     directors of the Tennessee Valley Authority who was appointed 
     before the effective date of the amendment made by subsection 
     (a)--
       (1) shall continue to serve as a member until the date of 
     expiration of the member's current term; and
       (2) may not be reappointed.

     SEC. 2. CHANGE IN MANNER OF APPOINTMENT OF STAFF.

       Section 3 of the Tennessee Valley Authority Act of 1933 (16 
     U.S.C. 831b) is amended--
       (1) by striking the first undesignated paragraph and 
     inserting the following:
       ``(a) Appointment by the Chief Executive Officer.--The 
     chief executive officer shall appoint, with the advice and 
     consent of the Board, and without regard to the provisions of 
     the civil service laws applicable to officers and employees 
     of the United States, such managers, assistant managers, 
     officers, employees, attorneys, and agents as are necessary 
     for the transaction of the business of the Corporation.''; 
     and
       (2) by striking ``All contracts'' and inserting the 
     following:
       ``(b) Wage Rates.--All contracts''.

     SEC. 3. CONFORMING AMENDMENTS.

       (a) The Tennessee Valley Authority Act of 1933 (16 U.S.C. 
     831 et seq.) is amended--
       (1) by striking ``board of directors'' each place it 
     appears and inserting ``Board of Directors''; and
       (2) by striking ``board'' each place it appears and 
     inserting ``Board''.
       (b) Section 9 of the Tennessee Valley Authority Act of 1933 
     (16 U.S.C. 831h) is amended--
       (1) by striking ``The Comptroller General of the United 
     States shall audit'' and inserting the following:
       ``(c) Audits.--The Comptroller General of the United States 
     shall audit''; and
       (2) by striking ``The Corporation shall determine'' and 
     inserting the following:
       ``(d) Administrative Accounts and Business Documents.--The 
     Corporation shall determine''.

     SEC. 4. EFFECTIVE DATE.

       The amendments made by this Act take effect, and 7 
     additional members of the Board of the Tennessee Valley 
     Authority shall be appointed so as to commence their terms 
     on, May 18, 2002.
                                 ______
                                 
      By Mrs. MURRAY (for herself, Mr. Smith of Oregon, Mr. Craig, Mr. 
        Daschle, and Mr. Leahy):
  S. 822. A bill to amend the Internal Revenue Code of 1986 to modify 
the treatment of bonds issues to acquire renewable resources on land 
subject to conservation easement; to the Committee on Finance.
  Mrs. MURRAY. Mr. President, I rise today to reintroduce the 
``Community Forestry and Agriculture Conservation Act of 2001.''
  Communities across the United States are losing private forest and 
farmland to development. Many citizens are demanding that we protect 
green space, control sprawl, and protect natural resources, fish and 
wildlife.
  Unfortunately, there are few options available to local communities 
to protect these working green spaces. Federal, state or local 
governments can purchase the land outright. But this is expensive, and 
simply unworkable for larger tracts of forest and agricultural land. 
Outright purchase also raises concerns about harming local economies, 
reducing the tax base, and hurting private property rights.
  Meanwhile, landowners are often land-rich and cash-poor. My bill 
would allow landowners to capitalize some or all of their assets.
  We have a responsibility to find solutions that protect private 
forests and farm land, enhance economic prosperity, and bring 
communities together in the process. The Community Forestry and 
Agriculture Conservation Act would accomplish these goals.
  The bill modifies the tax code to make it easier for communities to 
issue tax-exempt revenue bonds on behalf of a private non-profit 
corporation to purchase tracts of land. This protects the land from 
development, while allowing jobs that depend on harvesting the land to 
continue. The bonds would be serviced by harvesting the resources on 
the land in a responsible, sustainable way.
  I want to give an example of the concept behind this bill, and then 
mention some of the benefits.
  A group of community leaders would form a non-profit organization 
with a diverse board of directors. The non-profit organization would 
work with a landowner to reach a voluntary sale agreement at fair 
market value. The non-profit organization would then develop a binding 
management plan, which would allow for continued harvesting, but in a 
manner that exceeds federal and state conservation standards.
  A local government could then issue tax-exempt revenue bonds on 
behalf of the non-profit organization to fund the acquisition of the 
land. The bonds would be serviced by the non-profit organization with 
revenue raised by the continued harvest of trees or crops in accordance 
with the management plan. The non-profit would hold title to the land, 
but an independent third party would monitor the permanent conservation 
easement.
  There are three benefits to this bill.
  First, it gives communities a new tool to protect green spaces from 
development. Second, communities are able to keep resource-based jobs 
and their tax base. Third, this legislation will bring communities 
together. It will move us away from the conflicts of the past and will 
encourage environmentalists, timber companies, farmers, and local 
governments to work together to maintain these green spaces.
  This legislation is supported by a number of conservation 
organizations, private companies, local governments,

[[Page 6963]]

and private associations, including: World Wildlife Fund; The Nature 
Conservancy; Trust for Public Land; Land Trust Alliance; Pacific Forest 
Trust; American Sportfishing Association; Plum Creek Timber Company; 
Collins Pine Companies; Mendocino Redwood Company; The Harwood Group; 
Port Blakely Tree Farms; Weyerhaeuser; The Campbell Group; King County, 
Washington; Mendocino County, California; Society of American 
Foresters; and the Political Economy Research Center.
  In addition, the Senate agreed to a modified version of this 
legislation as an amendment to the Senate version of H.R. 2488 in 1999. 
The amendment was removed during conference.
  As I did two years ago, I want to emphasize that this is an approach 
that every Senator can support. It is bipartisan. It is inexpensive. It 
is voluntary. It respects private property rights. It limits government 
involvement but establishes proper enforcement to prevent abuse. It 
protects the environment. It provides local control.
  I would like to thank Senators G. Smith, Craig, Leahy, and Daschle 
for cosponsoring this legislation, and I urge my other colleagues to 
support it as well.
  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. 822

       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 ``Community Forestry and 
     Agriculture Conservation Act of 2001''.

     SEC. 2. TREATMENT OF BONDS ISSUED TO ACQUIRE RENEWABLE 
                   RESOURCES ON LAND SUBJECT TO CONSERVATION 
                   EASEMENT.

       (a) In General.--Section 145 of the Internal Revenue Code 
     of 1986 (defining qualified 501(c)(3) bond) is amended by 
     redesignating subsection (e) as subsection (f) and by 
     inserting after subsection (d) the following new subsection:
       ``(e) Bonds Issued To Acquire Renewable Resources on Land 
     Subject to Conservation Easement.--
       ``(1) In general.--If--
       ``(A) the proceeds of any bond are used to acquire land (or 
     a long-term lease thereof) together with any renewable 
     resource associated with the land (including standing timber, 
     agricultural crops, or water rights) from an unaffiliated 
     person,
       ``(B) the land is subject to a conservation restriction--
       ``(i) which is granted in perpetuity to an unaffiliated 
     person that is--

       ``(I) a 501(c)(3) organization, or
       ``(II) a Federal, State, or local government conservation 
     organization,

       ``(ii) which meets the requirements of clauses (ii) and 
     (iii)(II) of section 170(h)(4)(A),
       ``(iii) which exceeds the requirements of relevant 
     environmental and land use statutes and regulations, and
       ``(iv) which obligates the owner of the land to pay the 
     costs incurred by the holder of the conservation restriction 
     in monitoring compliance with such restriction,
       ``(C) a management plan which meets the requirements of the 
     statutes and regulations referred to in subparagraph (B)(iii) 
     is developed for the conservation of the renewable resources, 
     and
       ``(D) such bond would be a qualified 501(c)(3) bond (after 
     the application of paragraph (2)) but for the failure to use 
     revenues derived by the 501(c)(3) organization from the sale, 
     lease, or other use of such resource as otherwise required by 
     this part,

     such bond shall not fail to be a qualified 501(c)(3) bond by 
     reason of the failure to so use such revenues if the revenues 
     which are not used as otherwise required by this part are 
     used in a manner consistent with the stated charitable 
     purposes of the 501(c)(3) organization.
       ``(2) Treatment of timber, etc.--
       ``(A) In general.--For purposes of subsection (a), the cost 
     of any renewable resource acquired with proceeds of any bond 
     described in paragraph (1) shall be treated as a cost of 
     acquiring the land associated with the renewable resource and 
     such land shall not be treated as used for a private business 
     use because of the sale or leasing of the renewable resource 
     to, or other use of the renewable resource by, an 
     unaffiliated person to the extent that such sale, leasing, or 
     other use does not constitute an unrelated trade or business, 
     determined by applying section 513(a).
       ``(B) Application of bond maturity limitation.--For 
     purposes of section 147(b), the cost of any land or renewable 
     resource acquired with proceeds of any bond described in 
     paragraph (1) shall have an economic life commensurate with 
     the economic and ecological feasibility of the financing of 
     such land or renewable resource.
       ``(C) Unaffiliated person.--For purposes of this 
     subsection, the term `unaffiliated person' means any person 
     who controls not more than 20 percent of the governing body 
     of another person.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to obligations issued after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself and Mr. Reed):
  S. 827. A bill to amend the Social Security Act to guarantee 
comprehensive health care coverage for all children born after 2001; to 
the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, it gives me great pleasure and pride 
to introduce today the MediKids Health Insurance Act of 2001. I am 
joined by my colleague Representative Stark, who is introducing 
companion legislation in the House.
  In 1997, we passed historic legislation which created the Children's 
Health Insurance Program. I was a proud sponsor of the CHIP legislation 
with our late-colleague Senator John Chafee. However, one thing which 
we have learned throughout the implementation process of CHIP is that 
while it provides a vehicle for insuring our nation's low-income 
children, it does not guarantee all of America's children health 
insurance coverage and access to affordable health care. I'm pleased to 
say that of the 26,000 West Virginia children without health insurance 
two years ago, according to the most recent state estimate nearly 
20,000 have now enrolled in the CHIP program. But this is not enough. 
We can do better for our children to make sure they can count on access 
to the care they need to grow up healthy. It should not be so hard. 
Today, there remain more than 10 million children in America without 
health insurance, in spite of more and more children being enrolled in 
CHIP every day. Clearly, there is still much more that can and should 
be done to guarantee health coverage to all American children.
  Today, I offer a solution to ensure that all of our nation's children 
have access to health care. The MediKids program, which I propose, 
would create a new Medicare-like program for children which is separate 
from Medicare and will have no financial impact on the existing 
program. Every child would be enrolled at birth, just as every American 
is enrolled in the Medicare program at age 65. This ensures that all 
children will have coverage, avoiding difficult problems related to 
outreach and enrollment, or state-to-state variations. MediKids is a 
simple, direct and comprehensive approach to dramatically improve the 
health insurance safety net for America's Children. Eligibility for the 
program would be phased in over 5 years, covering children from birth 
to 5 years of age in the first year, 6 to 10 in the second, 11 to 15 in 
the third, 16 to 20 in the fourth, and 21 and 22 in the fifth and final 
year. By 2008, the legislation would provide every child in America 
access to consistent, continuous health insurance coverage.
  The benefits covered by the program would be very similar to those 
available to children under Medicaid now, including the screening and 
prevention services so critical to successful childhood development. 
The MediKids program would work in conjunction with CHIP and Medicaid, 
allowing children enrolled in those programs, and those children with 
private insurance coverage, to remain in those programs.
  CHIP and Medicaid are important programs, and essential for the 
insurance coverage of children. However, even with perfect enrollment 
in CHIP and Medicaid, there would still be a great number of children 
without health insurance. This is partially due to our increasingly 
mobile society, where parents frequently change jobs and families often 
move from state to state. When this occurs there is often a lapse in 
health coverage. Also, families working their way out of welfare 
fluctuate between eligibility and ineligibility for means-tested 
assistance programs. Another reason for the number of uninsured 
children is that the cost of health insurance continues to increase, 
leaving many working parents

[[Page 6964]]

unable to afford coverage for themselves or their families. All of this 
adds up to the fact that many of our children do not have the 
consistent and regular access to health care which they need to grow up 
healthy.
  Under The MediKids program, all children would be enrolled 
automatically at birth, and have continuous, reliable health coverage 
from birth until their twenty-third birthday. A prescription drug 
benefit would be included as part of the program, and the Secretary of 
Health and Human Services will continue to develop age-appropriate 
benefits as needed. The legislation also contains provisions allowing 
the Secretary to review and update the benefits offered annually, with 
input from the pediatric community.
  During the first few years of the program, the costs can be fully 
covered by public funds such as tobacco settlement monies, the budget 
surplus, or other funds upon which we may agree. Over this period of 
time, the Treasury Secretary will have the necessary time to develop a 
package of progressive, gradual tax changes to fund the program. 
Parents will be responsible for a small premium which will account for 
one-forth of annual average cost per child, and will be exempt from the 
premium should they have comparable health coverage for their children 
through private insurance or enrollment in other federal programs.
  There will be no cost-sharing under the program for preventive and 
well child care, and there will be assistance for low-income families 
to meet their needs. Those families living at or below 150 percent of 
poverty will pay no premium and those living between 150 percent and 
200 percent of poverty will receive a 50 percent discount on premiums. 
A family's premium obligation will be capped at 5 percent of its total 
income.
  Children are inexpensive to insure, yet the benefits of doing so 
would be enormous for our country. We have an opportunity now to 
guarantee that future generations of children grow up more healthy and 
ready to succeed than any before them. I am pleased to announce that I 
am joined today by a number of organizations whose support has been 
critical to the cause of ensuring health coverage for all children. I 
thank the many national organizations that have already lent their 
support and endorsement to this important legislation. The American 
Academy Pediatrics and the Children's Defense Fund have already begun 
to actively push for the MediKids Health Insurance Act of 2001. I am so 
pleased to have the support of these and other organizations which have 
dedicated themselves to children and children's health care in America.
  I learned a valuable lesson some 35 years ago as a VISTA volunteer in 
the small town of Emmons, West Virginia. I was taught that health care 
is not just something to be talked about, or debated here on the floor 
of the Senate. Health care is a fundamental right, its as necessary as 
food and shelter. I have learned this time and time again, and I have 
carried that lesson with me throughout my entire life in public 
service, as Chairman of the Pepper Commission on Comprehensive Health 
Care, and also on the National Commission on Children.
  The growing number of uninsured in this country is a very serious 
problem. The fact that some 10 million children, our nation's most 
vulnerable population, do not have access to affordable health 
insurance today is not just unfair, it is downright immoral. In a 
nation as wealthy as ours, it is wrong that poverty at birth can mean 
life-long illness or even early death, especially from easily treatable 
and preventable causes. What's more, children are the cheapest 
population in America to insure.
  But as I have said time and time again, I also believe it is 
important to not lose sight of the ideal, and our capacity to reach 
that ideal, of the United States of America joining every other 
industrialized nation by ensuring that its citizens have basic health 
insurance.
  I believe that we must not lose sight of that great ideal which I 
have spoken about here today, that every American have access to 
affordable health care. The MediKids Health Insurance Act is a tangible 
step toward achieving that ideal. I offer this legislation to enlist my 
colleagues in an effort to insist that all of our nation's children are 
insured as quickly as possible. I ask my colleagues from both sides of 
the aisle to join as co-sponsors.
  I ask unanimous consent that the text of the bill and a summary be 
printed in the Record.
  There being no objection, the material ordered to be printed in the 
Record, as follows:

                                 S. 827

       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; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``MediKids 
     Health Insurance Act of 2002''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents; findings.
Sec. 2. Benefits for all children born after 2002.

                     ``TITLE XXII--MEDIKIDS PROGRAM

``Sec. 2201. Eligibility.
``Sec. 2202. Benefits.
``Sec. 2203. Premiums.
``Sec. 2204. MediKids Trust Fund.
``Sec. 2205. Oversight and accountability.
``Sec. 2206. Addition of care coordination services.
``Sec. 2207. Administration and miscellaneous.
Sec. 3. MediKids premium.
Sec. 4. Refundable credit for cost-sharing expenses under MediKids 
              program.
Sec. 5. Report on long-term revenues.

       (c) Findings.--Congress finds the following:
       (1) More than 11 million American children are uninsured.
       (2) Children who are uninsured receive less medical care 
     and less preventive care and have a poorer level of health, 
     which result in lifetime costs to themselves and to the 
     entire American economy.
       (3) Although SCHIP and Medicaid are successfully extending 
     a health coverage safety net to a growing portion of the 
     vulnerable low-income population of uninsured children, we 
     now see that they alone cannot achieve 100 percent health 
     insurance coverage for our nation's children due to 
     inevitable gaps during outreach and enrollment, fluctuations 
     in eligibility, and variations in access to private insurance 
     at all income levels.
       (4) As all segments of our society continue to become more 
     and more transient, with many changes in employment over the 
     working lifetime of parents, the need for a reliable safety 
     net of health insurance which follows children across State 
     lines, already a major problem for the children of migrant 
     and seasonal farmworkers, will become a major concern for all 
     families in the United States.
       (5) The Medicare program has successfully evolved over the 
     years to provide a stable, universal source of health 
     insurance for the nation's disabled and those over age 65, 
     and therefore provides a tested model for designing a program 
     to reach out to America's children
       (6) The problem of insuring 100 percent of all American 
     children could be gradually solved by automatically enrolling 
     all children born after December 31, 2002, in a program 
     modeled after Medicare (and to be known as ``MediKids''), and 
     allowing those children to be transferred into other 
     equivalent or better insurance programs, including either 
     private insurance, SCHIP, or Medicaid, if they are eligible 
     to do so, but maintaining the child's default enrollment in 
     MediKids for any times when the child's access to other 
     sources of insurance is lost.
       (7) A family's freedom of choice to use other insurers to 
     cover children would not be interfered with in any way, and 
     children eligible for SCHIP and Medicaid would continue to be 
     enrolled in those programs, but the underlying safety net of 
     MediKids would always be available to cover any gaps in 
     insurance due to changes in medical condition, employment, 
     income, or marital status, or other changes affecting a 
     child's access to alternate forms of insurance.
       (8) The MediKids program can be administered without 
     impacting the finances or status of the existing Medicare 
     program.
       (9) The MediKids benefit package can be tailored to the 
     special needs of children and updated over time.
       (10) The financing of the program can be administered 
     without difficulty by a yearly payment of affordable premiums 
     through a family's tax filing (or adjustment of a family's 
     earned income tax credit).
       (11) The cost of the program will gradually rise as the 
     number of children using MediKids as the insurer of last 
     resort increases, and a future Congress always can accelerate 
     or slow down the enrollment process as desired, while the 
     societal costs for emergency room usage, lost productivity 
     and work days, and poor health status for the next generation 
     of Americans will decline.

[[Page 6965]]

       (12) Over time 100 percent of American children will always 
     have basic health insurance, and we can therefore expect a 
     healthier, more equitable, and more productive society.

     SEC. 2. BENEFITS FOR ALL CHILDREN BORN AFTER 2002.

       (a) In General.--The Social Security Act is amended by 
     adding at the end the following new title:

                     ``TITLE XXII--MEDIKIDS PROGRAM

     ``SEC. 2201. ELIGIBILITY.

       ``(a) Eligibility of Individuals Born After December 31, 
     2002; All Children under 23 Years of Age in Sixth Year.--An 
     individual who meets the following requirements with respect 
     to a month is eligible to enroll under this title with 
     respect to such month:
       ``(1) Age.--
       ``(A) First year.--During the first year in which this 
     title is effective, the individual has not attained 6 years 
     of age.
       ``(B) Second year.--During the second year in which this 
     title is effective, the individual has not attained 11 years 
     of age.
       ``(C) Third year.--During the third year in which this 
     title is effective, the individual has not attained 16 years 
     of age.
       ``(D) Fourth year.--During the fourth year in which this 
     title is effective, the individual has not attained 21 years 
     of age.
       ``(E) Fifth and subsequent years.--During the fifth year in 
     which this title is effective and each subsequent year, the 
     individual has not attained 23 years of age.
       ``(2) Citizenship.--The individual is a citizen or national 
     of the United States or is permanently residing in the United 
     States under color of law.
       ``(b) Enrollment Process.--An individual may enroll in the 
     program established under this title 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 who are born in the United States after 
     December 31, 2002, are deemed to be enrolled at the time of 
     birth and a parent or guardian of such an individual is 
     permitted to pre-enroll in the month prior to the expected 
     month of birth;
       ``(2) individuals who are born outside the United States 
     after such date and who become eligible to enroll by virtue 
     of immigration into (or an adjustment of immigration status 
     in) the United States are deemed enrolled at the time of 
     entry or adjustment of status;
       ``(3) eligible individuals may otherwise be enrolled at 
     such other times and manner as the Secretary shall specify, 
     including the use of outstationed eligibility sites as 
     described in section 1902(a)(55)(A) and the use of 
     presumptive eligibility provisions like those described in 
     section 1920A; and
       ``(4) at the time of automatic enrollment of a child, the 
     Secretary provides for issuance to a parent or custodian of 
     the individual a card evidencing coverage under this title 
     and for a description of such coverage.
     The provisions of section 1837(h) apply with respect to 
     enrollment under this title in the same manner as they apply 
     to enrollment under part B of title XVIII.
       ``(c) Date Coverage Begins.--
       ``(1) In general.--The period during which an individual is 
     entitled to benefits under this title shall begin as follows, 
     but in no case earlier than January 1, 2003:
       ``(A) In the case of an individual who is enrolled under 
     paragraph (1) or (2) of subsection (b), the date of birth or 
     date of obtaining appropriate citizenship or immigration 
     status, as the case may be.
       ``(B) In the case of an another individual who enrolls 
     (including pre-enrolls) before the month in which the 
     individual satisfies eligibility for enrollment under 
     subsection (a), the first day of such month of eligibility.
       ``(C) In the case of an another individual who enrolls 
     during or after the month in which the individual first 
     satisfies eligibility for enrollment under such subsection, 
     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 title 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) Expiration of Eligibility.--An individual's coverage 
     period under this part shall continue until the individual's 
     enrollment has been terminated because the individual no 
     longer meets the requirements of subsection (a) (whether 
     because of age or change in immigration status).
       ``(e) Entitlement to MediKids Benefits For Enrolled 
     Individuals.--An individual enrolled under this section is 
     entitled to the benefits described in section 2202.
       ``(f) Low-Income Information.--At the time of enrollment of 
     a child under this title, the Secretary shall make an inquiry 
     as to whether or not the family income of the family that 
     includes the child is less than 150 percent of the poverty 
     line for a family of the size involved. If the family income 
     is below such level, the Secretary shall encode in the 
     identification card issued in connection with eligibility 
     under this title a code indicating such fact. The Secretary 
     also shall provide for a toll-free telephone line at which 
     providers can verify whether or not such a child is in a 
     family the income of which is below such level.
       ``(g) Construction.--Nothing in this title shall be 
     construed as requiring (or preventing) an individual who is 
     enrolled under this section from seeking medical assistance 
     under a State medicaid plan under title XIX or child health 
     assistance under a State child health plan under title XXI.

     ``SEC. 2202. BENEFITS.

       ``(a) Secretarial Specification of Benefit Package.--
       ``(1) In general.--The Secretary shall specify the benefits 
     to be made available under this title consistent with the 
     provisions of this section and in a manner designed to meet 
     the health needs of enrollees.
       ``(2) Updating.--The Secretary shall update the 
     specification of benefits over time to ensure the inclusion 
     of age-appropriate benefits to reflect the enrollee 
     population.
       ``(3) Annual updating.--The Secretary shall establish 
     procedures for the annual review and updating of such 
     benefits to account for changes in medical practice, new 
     information from medical research, and other relevant 
     developments in health science.
       ``(4) Input.--The Secretary shall seek the input of the 
     pediatric community in specifying and updating such benefits.
       ``(5) Limitation on updating.--In no case shall updating of 
     benefits under this subsection result in a failure to provide 
     benefits required under subsection (b).
       ``(b) Inclusion of Certain Benefits.--
       ``(1) Medicare core benefits.--Such benefits shall include 
     (to the extent consistent with other provisions of this 
     section) at least the same benefits (including coverage, 
     access, availability, duration, and beneficiary rights) that 
     are available under parts A and B of title XVIII.
       ``(2) All required medicaid benefits.--Such benefits shall 
     also include all items and services for which medical 
     assistance is required to be provided under section 
     1902(a)(10)(A) to individuals described in such section, 
     including early and periodic screening, diagnostic services, 
     and treatment services.
       ``(3) Inclusion of prescription drugs.--Such benefits also 
     shall include (as specified by the Secretary) prescription 
     drugs and biologicals.
       ``(4) Cost-sharing.--
       ``(A) In general.--Subject to subparagraph (B), such 
     benefits also shall include the cost-sharing (in the form of 
     deductibles, coinsurance, and copayments) applicable under 
     title XVIII with respect to comparable items and services, 
     except that no cost-sharing shall be imposed with respect to 
     early and periodic screening and diagnostic services included 
     under paragraph (2).
       ``(B) No cost-sharing for lowest income children.--Such 
     benefits shall not include any cost-sharing for children in 
     families the income of which (as determined for purposes of 
     section 1905(p)) does not exceed 150 percent of the official 
     income poverty line (referred to in such section) applicable 
     to a family of the size involved.
       ``(C) Refundable credit for cost-sharing for other low-
     income children.--For a refundable credit for cost-sharing in 
     the case of children in certain families, see section 35 of 
     the Internal Revenue Code of 1986.
       ``(c) Payment Schedule.--The Secretary, with the assistance 
     of the Medicare Payment Advisory Commission, shall develop 
     and implement a payment schedule for benefits covered under 
     this title. To the extent feasible, such payment schedule 
     shall be consistent with comparable payment schedules and 
     reimbursement methodologies applied under parts A and B of 
     title XVIII.
       ``(d) Input.--The Secretary shall specify such benefits and 
     payment schedules only after obtaining input from appropriate 
     child health providers and experts.
       ``(e) Enrollment in Health Plans.--The Secretary shall 
     provide for the offering of benefits under this title through 
     enrollment in a health benefit plan that meets the same (or 
     similar) requirements as the requirements that apply to 
     Medicare+Choice plans under part C of title XVIII. In the 
     case of individuals enrolled under this title in such a plan, 
     the Medicare+Choice capitation rate described in section 
     1853(c) shall be adjusted in an appropriate manner to reflect 
     differences between the population served under this title 
     and the population under title XVIII.

     ``SEC. 2203. PREMIUMS.

       ``(a) Amount of Monthly Premiums.--
       ``(1) In general.--The Secretary shall, during September of 
     each year (beginning with 2002), establish a monthly MediKids 
     premium. Subject to paragraph (2), the monthly MediKids 
     premium for a year is equal to \1/12\ of the annual premium 
     rate computed under subsection (b).
       ``(2) Elimination of monthly premium for demonstration of 
     equivalent coverage (including coverage under low-income 
     programs).--The amount of the monthly premium imposed under 
     this section for an individual for a month shall be zero in 
     the case

[[Page 6966]]

     of an individual who demonstrates to the satisfaction of the 
     Secretary that the individual has basic health insurance 
     coverage for that month. For purposes of the previous 
     sentence enrollment in a medicaid plan under title XIX, a 
     State child health insurance plan under title XXI, or under 
     the medicare program under title XVIII is deemed to 
     constitute basic health insurance coverage described in such 
     sentence.
       ``(b) Annual Premium.--
       ``(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 
     2201(a)(1) 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) Annual premium.--Subject to subsection (d), the 
     annual premium under this subsection for months in a year is 
     equal to 25 percent of the average, annual per capita amount 
     estimated under paragraph (1) for the year.
       ``(c) Payment of Monthly Premium.--
       ``(1) Period of payment.--In the case of an individual who 
     participates in the program established by this title, 
     subject to subsection (d), the 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.
       ``(2) Collection through tax return.--For provisions 
     providing for the payment of monthly premiums under this 
     subsection, see section 59B of the Internal Revenue Code of 
     1986.
       ``(3) Protections against fraud and abuse.--The Secretary 
     shall develop, in coordination with States and other health 
     insurance issuers, administrative systems to ensure that 
     claims which are submitted to more than one payor are 
     coordinated and duplicate payments are not made.
       ``(d) Reduction in Premium for Certain Low-Income 
     Families.--For provisions reducing the premium under this 
     section for certain low-income families, see section 59B(c) 
     of the Internal Revenue Code of 1986.

     ``SEC. 2204. MEDIKIDS 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 `MediKids 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 2203 
     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 title XXII;
       ``(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 title;
       ``(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 title; and
       ``(D) the Board of Trustees of the MediKids Trust Fund 
     shall be the same as the Board of Trustees of the Federal 
     Supplementary Medical Insurance Trust Fund.

     ``SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.

       ``(a) Through Annual Reports of Trustees.--The Board of 
     Trustees of the MediKids Trust Fund under section 2204(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 title to maintain financial solvency of 
     the program under this title.
       ``(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 title. 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 title.

     ``SEC. 2206. INCLUSION OF CARE COORDINATION SERVICES.

       ``(a) In General.--
       ``(1) Program authority.--The Secretary, beginning in 2003, 
     may implement a care coordination services program in 
     accordance with the provisions of this section under which, 
     in appropriate circumstances, eligible individuals may elect 
     to have health care services covered under this title managed 
     and coordinated by a designated care coordinator.
       ``(2) Administration by contract.--The Secretary may 
     administer the program under this section through a contract 
     with an appropriate program administrator.
       ``(3) Coverage.--Care coordination services furnished in 
     accordance with this section shall be treated under this 
     title as if they were included in the definition of medical 
     and other health services under section 1861(s) and benefits 
     shall be available under this title with respect to such 
     services without the application of any deductible or 
     coinsurance.
       ``(b) Eligibility Criteria; Identification and Notification 
     of Eligible Individuals.--
       ``(1) Individual eligibility criteria.--The Secretary shall 
     specify criteria to be used in making a determination as to 
     whether an individual may appropriately be enrolled in the 
     care coordination services program under this section, which 
     shall include at least a finding by the Secretary that for 
     cohorts of individuals with characteristics identified by the 
     Secretary, professional management and coordination of care 
     can reasonably be expected to improve processes or outcomes 
     of health care and to reduce aggregate costs to the programs 
     under this title.
       ``(2) Procedures to facilitate enrollment.--The Secretary 
     shall develop and implement procedures designed to facilitate 
     enrollment of eligible individuals in the program under this 
     section.
       ``(c) Enrollment of Individuals.--
       ``(1) Secretary's determination of eligibility.--The 
     Secretary shall determine the eligibility for services under 
     this section of individuals who are enrolled in the program 
     under this section and who make application for such services 
     in such form and manner as the Secretary may prescribe.
       ``(2) Enrollment period.--
       ``(A) Effective date and duration.--Enrollment of an 
     individual in the program under this section shall be 
     effective as of the first day of the month following the 
     month in which the Secretary approves the individual's 
     application under paragraph (1), shall remain in effect for 
     one month (or such longer period as the Secretary may 
     specify), and shall be automatically renewed for additional 
     periods, unless terminated in accordance with such procedures 
     as the Secretary shall establish by regulation. Such 
     procedures shall permit an individual to disenroll for cause 
     at any time and without cause at re-enrollment intervals.
       ``(B) Limitation on reenrollment.--The Secretary may 
     establish limits on an individual's eligibility to reenroll 
     in the program under this section if the individual has 
     disenrolled from the program more than once during a 
     specified time period.
       ``(d) Program.--The care coordination services program 
     under this section shall include the following elements:
       ``(1) Basic care coordination services.--
       ``(A) In general.--Subject to the cost-effectiveness 
     criteria specified in subsection (b)(1), except as otherwise 
     provided in this section, enrolled individuals shall receive 
     services described in section 1905(t)(1) and may receive 
     additional items and services as described in subparagraph 
     (B).
       ``(B) Additional benefits.--The Secretary may specify 
     additional benefits for which payment would not otherwise be 
     made under this title that may be available to individuals 
     enrolled in the program under this section (subject to an 
     assessment by the care coordinator of an individual's 
     circumstance and need for such benefits) in order to 
     encourage enrollment in, or to improve the effectiveness of, 
     such program.
       ``(2) Care coordination requirement.--Notwithstanding any 
     other provision of this title, the Secretary may provide that 
     an individual enrolled in the program under this section may 
     be entitled to payment under this title for any specified 
     health care items or services only if the items or services 
     have been furnished by the care coordinator, or coordinated 
     through the care coordination services program. Under such 
     provision, the Secretary shall prescribe exceptions for 
     emergency medical services as described in section 
     1852(d)(3), and other exceptions determined by the Secretary 
     for the delivery of timely and needed care.
       ``(e) Care Coordinators.--
       ``(1) Conditions of participation.--In order to be 
     qualified to furnish care coordination services under this 
     section, an individual or entity shall--
       ``(A) be a health care professional or entity (which may 
     include physicians, physician group practices, or other 
     health care professionals or entities the Secretary may find 
     appropriate) meeting such conditions as the Secretary may 
     specify;
       ``(B) have entered into a care coordination agreement; and
       ``(C) meet such criteria as the Secretary may establish 
     (which may include experience in the provision of care 
     coordination or primary care physician's services).
       ``(2) Agreement term; payment.--
       ``(A) Duration and renewal.--A care coordination agreement 
     under this subsection shall be for one year and may be 
     renewed if the Secretary is satisfied that the care 
     coordinator continues to meet the conditions of participation 
     specified in paragraph (1).

[[Page 6967]]

       ``(B) Payment for services.--The Secretary may negotiate or 
     otherwise establish payment terms and rates for services 
     described in subsection (d)(1).
       ``(C) Liability.--Case coordinators shall be subject to 
     liability for actual health damages which may be suffered by 
     recipients as a result of the care coordinator's decisions, 
     failure or delay in making decisions, or other actions as a 
     care coordinator.
       ``(D) Terms.--In addition to such other terms as the 
     Secretary may require, an agreement under this section shall 
     include the terms specified in subparagraphs (A) through (C) 
     of section 1905(t)(3).

     ``SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.

       ``(a) In General.--Except as otherwise provided in this 
     title--
       ``(1) the Secretary shall enter into appropriate contracts 
     with providers of services, other health care providers, 
     carriers, and fiscal intermediaries, taking into account the 
     types of contracts used under title XVIII with respect to 
     such entities, to administer the program under this title;
       ``(2) individuals enrolled under this title shall be 
     treated for purposes of title XVIII as though the individual 
     were entitled to benefits under part A and enrolled under 
     part B of such title;
       ``(3) benefits described in section 2202 that are payable 
     under this title to such individuals shall be paid in a 
     manner specified by the Secretary (taking into account, and 
     based to the greatest extent practicable upon, the manner in 
     which they are provided under title XVIII);
       ``(4) provider participation agreements under title XVIII 
     shall apply to enrollees and benefits under this title in the 
     same manner as they apply to enrollees and benefits under 
     title XVIII; and
       ``(5) individuals entitled to benefits under this title may 
     elect to receive such benefits under health plans in a 
     manner, specified by the Secretary, similar to the manner 
     provided under part C of title XVIII.
       ``(b) Coordination with Medicaid and SCHIP.--
     Notwithstanding any other provision of law, individuals 
     entitled to benefits for items and services under this title 
     who also qualify for benefits under title XIX or XXI or any 
     other Federally funded program may continue to qualify and 
     obtain benefits under such other title or program, and in 
     such case such an individual shall elect either--
       ``(1) such other title or program to be primary payor to 
     benefits under this title, in which case no benefits shall be 
     payable under this title and the monthly premium under 
     section 2203 shall be zero; or
       ``(2) benefits under this title shall be primary payor to 
     benefits provided under such program or title, in which case 
     the Secretary shall enter into agreements with States as may 
     be appropriate to provide that, in the case of such 
     individuals, the benefits under titles XIX and XXI or such 
     other program (including reduction of cost-sharing) are 
     provided on a `wrap-around' basis to the benefits under this 
     title.''.
       (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 MediKids 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 MediKids Trust Fund 
     established by title XVIII''.
       (3) 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 medikids.--In applying this subsection 
     with respect to individuals entitled to benefits under title 
     XXII, 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 title and the population under parts A and 
     B.''.
       (c) Maintenance of Medicaid Eligibility and Benefits for 
     Children.--
       (1) In general.--In order for a State to continue to be 
     eligible for payments under section 1903(a) of the Social 
     Security Act (42 U.S.C. 1396b(a))--
       (A) the State may not reduce standards of eligibility, or 
     benefits, provided under its State medicaid plan under title 
     XIX of the Social Security Act or under its State child 
     health plan under title XXI of such Act for individuals under 
     23 years of age below such standards of eligibility, and 
     benefits, in effect on the date of the enactment of this Act; 
     and
       (B) the State shall demonstrate to the satisfaction of the 
     Secretary of Health and Human Services that any savings in 
     State expenditures under title XIX or XXI of the Social 
     Security Act that results from children from enrolling under 
     title XXII of such Act shall be used in a manner that 
     improves services to beneficiaries under title XIX of such 
     Act, such as through increases in provider payment rates, 
     expansion of eligibility, improved nurse and nurse aide 
     staffing and improved inspections of nursing facilities, and 
     coverage of additional services.
       (2) MediKids as primary payor.--In applying title XIX of 
     the Social Security Act, the MediKids program under title 
     XXII of such Act shall be treated as a primary payor in cases 
     in which the election described in section 2207(b)(2) of such 
     Act, as added by subsection (a), has been made.
       (d) Expansion of MedPAC Membership to 19.--
       (1) In general.--Section 1805(c) of the Social Security Act 
     (42 U.S.C. 1395b-6(c)) is amended--
       (A) in paragraph (1), by striking ``17'' and inserting 
     ``19''; and
       (B) in paragraph (2)(B), by inserting ``experts in 
     children's health,'' after ``other health professionals,''.
       (2) Initial terms of additional members.--
       (A) In general.--For purposes of staggering the initial 
     terms of members of the Medicare Payment Advisory Commission 
     under section 1805(c)(3) of the Social Security Act (42 
     U.S.C. 1395b-6(c)(3)), the initial terms of the 2 additional 
     members of the Commission provided for by the amendment under 
     subsection (a)(1) are as follows:
       (i) One member shall be appointed for 1 year.
       (ii) One member shall be appointed for 2 years.
       (B) Commencement of terms.--Such terms shall begin on 
     January 1, 2002.

     SEC. 3. MEDIKIDS PREMIUM.

       (a) General Rule.--Subchapter A of chapter 1 of the 
     Internal Revenue Code of 1986 (relating to determination of 
     tax liability) is amended by adding at the end the following 
     new part:

                     ``PART VIII--MEDIKIDS PREMIUM

``Sec. 59B. MediKids premium.

     ``SEC. 59B. MEDIKIDS PREMIUM.

       ``(a) Imposition of Tax.--In the case of an individual to 
     whom this section applies, there is hereby imposed (in 
     addition to any other tax imposed by this subtitle) a 
     MediKids premium for the taxable year.
       ``(b) Individuals Subject to Premium.--
       ``(1) In general.--This section shall apply to an 
     individual if the taxpayer has a MediKid at any time during 
     the taxable year.
       ``(2) MediKid.--For purposes of this section, the term 
     `MediKid' means, with respect to a taxpayer, any individual 
     with respect to whom the taxpayer is required to pay a 
     premium under section 2203(c) of the Social Security Act for 
     any month of the taxable year.
       ``(c) Amount of Premium.--For purposes of this section, the 
     MediKids premium for a taxable year is the sum of the monthly 
     premiums under section 2203 of the Social Security Act for 
     months in the taxable year.
       ``(d) Exceptions Based on Adjusted Gross Income.--
       ``(1) Exemption for very low-income taxpayers.--
       ``(A) In general.--No premium shall be imposed by this 
     section on any taxpayer having an adjusted gross income not 
     in excess of the exemption amount.
       ``(B) Exemption amount.--For purposes of this paragraph, 
     the exemption amount is--
       ``(i) $17,415 in the case of a taxpayer having 1 MediKid,
       ``(ii) $21,945 in the case of a taxpayer having 2 MediKids,
       ``(iii) $26,475 in the case of a taxpayer having 3 
     MediKids, and
       ``(iv) $31,005 in the case of a taxpayer having 4 or more 
     MediKids.
       ``(C) Phaseout of exemption.--In the case of a taxpayer 
     having an adjusted gross income which exceeds the exemption 
     amount but does not exceed twice the exemption amount, the 
     premium shall be the amount which bears the same ratio to the 
     premium which would (but for this subparagraph) apply to the 
     taxpayer as such excess bears to the exemption amount.
       ``(D) Inflation adjustment of exemption amounts.--In the 
     case of any taxable year beginning in a calendar year after 
     2001, each dollar amount contained in subparagraph (C) shall 
     be increased by an amount equal to the product of--
       ``(i) such dollar amount, and
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2000' 
     for `calendar year 1992' in subparagraph (B) thereof.
     If any increase determined under the preceding sentence is 
     not a multiple of $50, such increase shall be rounded to the 
     nearest multiple of $50.
       ``(2) Premium limited to 5 percent of adjusted gross 
     income.--In no event shall any taxpayer be required to pay a 
     premium under this section in excess of an amount equal to 5 
     percent of the taxpayer's adjusted gross income.
       ``(e) Coordination With Other Provisions.--
       ``(1) Not treated as medical expense.--For purposes of this 
     chapter, any premium paid under this section shall not be 
     treated as expense for medical care.
       ``(2) Not treated as tax for certain purposes.--The premium 
     paid under this section

[[Page 6968]]

     shall not be treated as a tax imposed by this chapter for 
     purposes of determining--
       ``(A) the amount of any credit allowable under this 
     chapter, or
       ``(B) the amount of the minimum tax imposed by section 55.
       ``(3) Treatment under subtitle f.--For purposes of subtitle 
     F, the premium paid under this section shall be treated as if 
     it were a tax imposed by section 1.''.
       (b) Technical Amendments.--
       (1) Subsection (a) of section 6012 of such Code is amended 
     by inserting after paragraph (9) the following new paragraph:
       ``(10) Every individual liable for a premium under section 
     59B.''.
       (2) The table of parts for subchapter A of chapter 1 of 
     such Code is amended by adding at the end the following new 
     item:

``Part VIII. MediKids premium.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to months beginning after December 2002, in 
     taxable years ending after such date.

     SEC. 4. REFUNDABLE CREDIT FOR COST-SHARING EXPENSES UNDER 
                   MEDIKIDS PROGRAM.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 35 as 
     section 36 and by inserting after section 34 the following 
     new section:

     ``SEC. 35. COST-SHARING EXPENSES UNDER MEDIKIDS PROGRAM.

       ``(a) Allowance of Credit.--In the case of an individual 
     who has a MediKid (as defined in section 59B) at any time 
     during the taxable year, there shall be allowed as a credit 
     against the tax imposed by this subtitle an amount equal to 
     50 percent of the amount paid by the taxpayer during the 
     taxable year as cost-sharing under section 2202(b)(4) of the 
     Social Security Act.
       ``(b) Limitation Based on Adjusted Gross Income.--The 
     amount of the credit which would (but for this subsection) be 
     allowed under this section for the taxable year shall be 
     reduced (but not below zero) by an amount which bears the 
     same ratio to such amount of credit as the excess of the 
     taxpayer's adjusted gross income for such taxable year over 
     the exemption amount (as defined in section 59B(d)) bears to 
     such exemption amount.''.
       (b) Technical Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``or 
     from section 35 of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     the last item and inserting the following new items:

``Sec. 35. Cost-sharing expenses under MediKids program.
``Sec. 36. Overpayments of tax.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.

     SEC. 5. REPORT ON LONG-TERM REVENUES.

       Within one year after the date of the enactment of this 
     Act, the Secretary of the Treasury shall propose a gradual 
     schedule of progressive tax changes to fund the program under 
     title XXII of the Social Security Act, as the number of 
     enrollees grows in the out-years.
                                  ____


          Summary of the MediKids Health Insurance Act of 2001

       The MediKids Health Insurance Act provides health insurance 
     for all children in the United States regardless of family 
     income level by 2008. The program is modeled after Medicare, 
     but the benefits are targeted toward children. Families below 
     150 percent of poverty pay no premium or copays, while those 
     between 150 and 300 percent of poverty pay a graduated 
     premium up to 5 percent of their income and receive a 
     graduated refundable tax credit for cost sharing expenses.
       The MediKids enrollment process is simple with no re-
     determination hoops to jump through because it is not means 
     tested. MediKids follows children across state lines when 
     families move, and covers them until their parents can enroll 
     them in a new insurance program. Moreover, MediKids fills the 
     gaps when families climbing out of poverty become ineligible 
     for means-tested programs. It provides security for children 
     until their parents can obtain reliable health insurance 
     coverage.


                               enrollment

       Every child born after 2002 is automatically enrolled in 
     MediKids, and those children already born are enrolled over a 
     5-year phase-in as described below. Children who immigrate to 
     this country are enrolled when they receive their immigration 
     cards. Materials describing the program's benefits, along 
     with a MediKids insurance card, are issued to the parent(s) 
     or legal guardian(s) of each child. Once enrolled, children 
     remain enrolled in MediKids until they reach the age of 23.
       Parents may choose to enroll their children in private 
     plans or government programs such as Medicaid or S-CHIP. 
     During periods of equivalent alternative coverage, the 
     MediKids premium is waived. However, if a lapse in other 
     insurance coverage occurs, MediKids automatically covers the 
     children's health insurance needs (and a premium will be owed 
     for those months).


                                phase-in

       Year 1 (2003) = the child has not attained age 6.
       Year 2 (2004) = the child has not attained age 11.
       Year 3 (2005) = the child has not attained age 16
       Year 4 (2006) = the child has not attained age 21.
       Year 5 (2007) = the child has not attained age 23.


                                benefits

       The benefit package is based on the Medicare and the 
     Medicaid Early and Periodic Screening. Diagnosis, and 
     Treatment (EPSDT) benefits for children, and includes 
     prescription drugs. The benefits will be reviewed annually 
     and updated by the Secretary of Health and Human Services to 
     reflect age-appropriate benefits as needed with input from 
     the pediatric community.


                   premiums, deductibles, and copays

       Families up to 150 percent of poverty pay no premiums or 
     copays. Families between 150 and 300 percent of poverty pay a 
     graduated premium up to 5 percent of their income and receive 
     a graduated refundable tax credit for cost sharing expenses. 
     Parents 300 percent of poverty are responsible for a small 
     premium equal to one fourth of the average annual cost per 
     child. Premiums are collected at the time of income tax 
     filing. There is no cost sharing for preventive and well 
     childcare for any children.


                               financing

       Congress would need to determine initial funding. In future 
     years, the Secretary of Treasury would develop a package of 
     progressive, gradual tax changes to fund the program, as the 
     number of enrollees grows.


                                 states

       Medicaid and S-CHIP are not altered by MediKids. These 
     programs remain the safety net for children until MediKids is 
     fully implemented and appropriately modified to best serve 
     our nation's children. Once MediKids is fully operational, 
     Congress can revisit the role of these programs in covering 
     children.
       To the extent that the states save money from the 
     enrollment of children into MediKids, states are required to 
     maintain those funding levels in other programs and services 
     directed toward the Medicaid population. This can include 
     expanding eligibility or offering additional services. For 
     example, states could expand eligibility for parents and 
     single individuals, increase payment rates to providers, or 
     enhance quality initiatives in nursing homes.
                                 ______
                                 
      By Mr. LIEBERMAN (for himself, Ms. Snowe, Mr. Schumer, Mr. 
        Hutchinson, Mr. Dodd, Mrs. Clinton, Ms. Cantwell, Mr. Carper, 
        Mr. Dorgan, Mr. Leahy, Mr. Levin, Mr. Harkin, Mr. Akaka, and 
        Ms. Mikulski):
  S. 828. A bill to amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for certain energy-efficient property; to the 
Committee on Finance.
  Mr. LIEBERMAN. Mr. President, I am pleased today to join a bipartisan 
coalition of Senators in introducing environmentally friendly 
legislation to encourage the use of fuel cells, a clean and cutting-
edge energy source. If adopted, this bill would provide tax incentives 
to consumers for purchasing residential and commercial fuel cell 
systems to power their electricity. The $1,000-per-kilowatt tax credit 
applies to all types of stationary fuel cell systems and would be 
applicable for 5 years. This is a Senate companion piece to legislation 
introduced in the House of Representatives by Representative Nancy 
Johnson last month.
  With oil and gas prices now reaching record highs, I believe fuel 
cells are one excellent answer to our heightened energy demand and 
dependence on foreign oil. The benefits of fuel cell technology are 
many. They are a nearly pollution-free power supply because they 
operate without combustion; they can run on any hydrogen-rich source, 
including propane, natural gas, methane or diesel; they can operate 
independently of a power grid, which is ideal for remote locations, and 
they provide highly reliable, uninterrupted power, making them very 
attractive for applications highly sensitive to power interruptions. 
Currently they are being used at a variety of locations, including a 
New York City police station in Central Park, a major postal facility 
in Alaska, a hotel on Mohegan tribal lands in Connecticut, and in a 
hospital in California.
  Fuel cells have been successfully used since the 1960s. Initially 
they were developed for space applications and have provided all of the 
water and electricity needs in every manned U.S.

[[Page 6969]]

space mission, including the Apollo and Gemini spacecraft. Since this 
time, they have been developed for a wide variety of other 
applications, including commercial, residential, and transportation 
uses.
  I am pleased to join Senators Snowe, Schumer, Dodd, Hutchinson, 
Clinton, Cantwell, Carper, Dorgan, Leahy, Levin, Harkin, Akaka, and 
Mikulski on this important bill.
  Ms. SNOWE. Mr. President, I rise today with my colleague from 
Connecticut Senator Lieberman, to introduce a bill that will promote 
the expanded use of an environmentally sound and efficient energy 
technology, fuel cell power.
  We all agree with President Bush that we have a crisis situation, 
America's energy future is bleak. Portions of our country are 
experiencing rolling blackouts, fuel prices are skyrocketing, America's 
dependence on imported oil reached a new high of over 60 percent in 
recent months, and our search for additional fossil fuels threatens the 
sanctity of protected wilderness areas. Now is the time to promote long 
term solutions such as fuel cell technology to reduce our fossil fuel 
consumption and maintain a steady supply of energy.
  Fuel cells are not a futuristic dream, every manned U.S. space 
mission has relied upon fuel cells for electricity and drinking water. 
From a New York city police station to a postal facility in Alaska to 
hospitals, schools, banks, military installations, and manufacturing 
facilities around the world, fuel cell units are efficiently generating 
dependable power 24 hours a day, seven days a week for upwards of 5 
years with only routine maintenance.
  Fuel cell technology offers a clean, secure, efficient, and 
dependable source of energy that should be part of our national energy 
strategy. Not only do fuel cells deliver the high quality, reliable 
power that is considered an absolute necessity for many portions of our 
society, they reduce power grid demand while improving grid 
flexibility. Fuel cells are an ideal energy source to address America's 
pressing energy needs.
  Using an electro-chemical reaction to convert energy from hydrogen-
rich fuel sources into electricity, fuel cells reduce the need for 
fossil fuel consumption. And, since no combustion is involved, fuel 
cells produce virtually no air pollution and significantly reduce 
carbon dioxide emissions. In fact, a 200 kilowatt fuel cell power plant 
produces less than one ounce of pollutants for every 1,000 kilowatt 
hours of electricity it yields. In comparison, the average American 
fossil fuel plant produces nearly 25 pounds of pollutants to generate 
the same 1,000 kilowatt hours of electricity. That is 400 times the 
amount of the fuel cell power plant.
  However, it is difficult for consumers to take advantage of fuel 
cells because as with any new technology, the introductory price is 
high. To create the market incentives necessary to speed the 
commercialization of this technology, our legislation provides a $1,000 
per kilowatt stationary fuel cell tax credit for power plants that have 
an electrical generation efficiency of 30 percent or higher.
  By lowering the initial price for consumers, market introduction and 
production volume of fuel cells will be accelerated with the end result 
being a significant reduction in manufacturing costs. The decrease in 
price would enable even more consumers to use the one of the cleanest, 
most reliable and most efficient means to generate electricity.
  This fuel cell tax credit is designed to benefit the widest range of 
potential fuel cell customers and manufacturers with a meaningful 
incentive for the purchase of fuel cells for residential and commercial 
use while minimizing the budget impact to $500 million over the 5-year 
life of the program. I hope my colleagues will agree that an annual 
cost of $100 million is a small price to pay for a reliable source of 
power that will benefit the environment and reduce our nation's 
dependence on foreign oil supplies.
  At a time when power shortages and interruptions are becoming more 
prevalent, we must increase our investment and commitment to non-
traditional energy sources such as fuel cells. The reliable, 
combustion-free power fuel cells provide is a sensible alternative that 
is available today. I urge my colleagues to support us in the Fuel Cell 
Tax Credit.
                                 ______
                                 
      By Mr. BROWNBACK (for himself, Mr. Cleland, Mr. Santorum, Mr. 
        Lott, Mrs. Clinton, Mr. Reid, Mr. Dodd, Mr. Miller, and Mr. 
        Edwards):
  S. 829. A bill to establish the National Museum of African American 
History and Culture within the Smithsonian Institution; to the 
Committee on Rules and Administration.
  Mr. BROWNBACK. Mr. President, I am honored to introduce legislation, 
today, that creates the ``National Museum of African American History 
and Culture.'' I along with Senators Max Cleland, Rich Santorum, 
Majority Leader Lott, Hillary Clinton, Harry Reid, Christopher Dodd, 
Zell Miller, and John Edwards are committed to passing this legislation 
this year.
  One of the most important chapters in our national story of human 
freedom and dignity is the history and legacy of the African American 
march toward freedom, legal equality and full participation in American 
Society. Yet in our nation's front yard, the National Mall, there is no 
museum set aside to honor this legacy.
  As a Kansan, I feel a special connection to honoring the legacy of 
African-Americans. Kansas, as you know, not only played a significant 
role in the Civil War but also was chosen by many African-American 
families as a place to begin their new life of freedom and prosperity 
in the ``Exodus to Kansas.''
  This is just one part of the incredible history of African Americans 
that must be told on a national level. We have over 200 wonderful 
African-American history museums across the nation that tell portions 
of the African-American story. However, this legacy must be showcased 
at a national level.
  That is why I am here today with my colleagues introducing this 
legislation to create the National Museum of African-American history 
and culture within the Smithsonian Institution, a premier organization, 
which represents the best museums in the nation. We believe it is 
vitally important that the Smithsonian, the world's leading museum 
organization, provide its expertise in putting this facility and its 
programs together.
  This project has brought together a very broad and bicameral 
coalition that stood with us today during the press conference to 
announce the introduction of this bill. I would like to personally 
thank Pastor Chuck Singleton, of Loveland Church in California, as well 
as Robert Johnson, of B.E.T., Dorothy Height of the National Council of 
Negro Women, and Phyllis Berry Myers, of the Center for New Black 
Leadership for joining with us to support this legislation today.
  We do not pretend that our legislation is a cure-all for the problem 
of racial division. It is, however, an important and productive step 
toward healing our nation's racial wounds. I believe that this museum 
will both celebrate African-American achievement and serve as a 
landmark of national conscience on the historical facts of slavery and 
the civil rights struggle.
  We have an extraordinary opportunity before us--a chance to learn, 
understand and remember together our nation's history and to honor the 
significant contribution of African Americans to our history and 
culture.
  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. 829

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Museum of African 
     American History and Culture Act of 2001''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Over the history of our Nation, the United States has 
     grown into a symbol of democracy and freedom around the 
     world, and the legacy of African Americans is rooted in the 
     very fabric of our Nation's democracy and freedom.

[[Page 6970]]

       (2) There exists no national museum within the Smithsonian 
     Institution located on the National Mall that is devoted to 
     the documentation of African American life, art, history, and 
     culture and that encompasses on a national level, the period 
     of slavery, the era of reconstruction, the Harlem 
     renaissance, the civil rights movement, and beyond.
       (3) Slavery was an accepted practice in this Nation, 
     authorized by the Government through legislation such as the 
     fugitive slave law of 1793 (1 Stat. 302) and sanctioned by 
     the Supreme Court in the Dred Scott decision (Scott v. 
     Sanford, 60 U.S. 393 (1857)).
       (4) Those African Americans who suffered under slavery and 
     their descendants show us the strength of the human character 
     and provide us with a model of courage, commitment, and 
     perseverance. A national museum dedicated to the history of 
     and commemorating those who suffered the grave injustice of 
     slavery in this country will help in ``binding our Nation's 
     wounds'' rooted in slavery and will allow all Americans to 
     understand the past and honor the history of all Americans.
       (5) Leaders of the African American community in the 1950s 
     and 1960s led this Nation in the civil rights movement with 
     the intent of ending discrimination against African 
     Americans. During this period, many African American churches 
     were destroyed and countless individuals involved in this 
     movement were often beaten and killed. Through the devotion 
     and sacrifice of those leaders, the civil rights movement 
     made great strides in ensuring equality for African Americans 
     in this country.
       (6) African Americans have enriched the cultural make-up of 
     the United States by their contributions in the areas of 
     science, medicine, the arts and humanities, sports, music, 
     and dance.
       (7) Preserving this rich record of the experiences of 
     African Americans, studying their experiences, and presenting 
     those experiences through exhibits to the public would be of 
     great educational and social value.
       (8) The creation of a National Museum of African American 
     History and Culture located on the National Mall in the 
     District of Columbia and administered by the Smithsonian 
     Institution's Board of Regents was endorsed in 1991 by a 
     unanimous vote by the Smithsonian Institution's Board of 
     Regents.
       (9) The Smithsonian African American Institutional Study 
     recommended that the National Museum of African American 
     History and Culture be established in the Arts and Industries 
     Building of the Smithsonian Institution.
       (10) Although the Smithsonian Institution has had some 
     success in focusing on African American history and culture, 
     the programming on African American history and culture has 
     been occasional and episodic.
       (11) A National Museum of African American History and 
     Culture will provide a continued and consistent African 
     American presence on the National Mall.
       (12) The National Museum of African American History and 
     Culture will be dedicated to the collection, preservation, 
     research, and exhibition of African American historical and 
     cultural material reflecting the breadth and depth of the 
     experiences of persons of African descent living in the 
     United States.
       (13) The National Museum of African American History and 
     Culture established by this Act will coordinate the 
     collection of material related to African Americans, which is 
     rapidly disappearing due to a lack of resources and trained 
     professionals engaged in preservation.
       (14) The work of the National Museum of African American 
     History and Culture will be, fundamentally, the same as the 
     work of all museums in the United States that reflect and 
     express the experiences of the people of the United States in 
     an inclusive manner.

     SEC. 3. ESTABLISHMENT OF THE NATIONAL MUSEUM OF AFRICAN 
                   AMERICAN HISTORY AND CULTURE.

       (a) Establishment.--There is established within the 
     Smithsonian Institution the National Museum of African 
     American History and Culture (hereafter referred to in this 
     Act as the ``Museum''), and the Smithsonian Institution shall 
     maintain and administer the Museum.
       (b) Purpose.--The purpose of the Museum is to provide for--
       (1) the collection, study, and creation of scholarship 
     relating to the African American diaspora that encompasses 
     slavery, the era of reconstruction, the Harlem renaissance, 
     the civil rights movement, and beyond;
       (2) the creation and maintenance of permanent and temporary 
     exhibits documenting American slavery and African American 
     life, art, history, and culture from slavery and the era of 
     reconstruction to the Harlem renaissance, the civil rights 
     movement, and beyond;
       (3) the collection and study of artifacts and documents 
     relating to African American life, art, history, and culture 
     and the African diaspora;
       (4) the establishment of programs in cooperation with other 
     museums, historical societies, educational institutions, and 
     other organizations that promote the understanding of modern 
     day practices of slavery throughout the world;
       (5) collaboration between the Museum and other African 
     American museums, historically black colleges and 
     universities, and other museums, historical societies, 
     educational institutions, and other organizations that 
     promote the study of the African diaspora including 
     collaboration regarding--
       (A) development of cooperative programs and exhibitions;
       (B) identification, management, and care of collections; 
     and
       (C) participation in the training of museum professionals; 
     and
       (6) leadership and commitment to historical accuracy in the 
     study, education, and exhibition of African American life, 
     art, history, and culture in the museum and throughout the 
     Nation.

     SEC. 4. COUNCIL.

       (a) Establishment.--There is established in the Smithsonian 
     Institution the National Museum of African American History 
     and Culture Council (hereinafter referred to in this Act as 
     the ``Council'').
       (b) Duties.--
       (1) In general.--The Council, subject to subsection (l) and 
     to the general policies of the Board of Regents of the 
     Smithsonian Institution (hereafter referred to in this Act as 
     the ``Board of Regents''), shall have sole authority to--
       (A) solicit, accept, use, and dispose of gifts, bequests, 
     and devises of services and property, both real and personal, 
     for the purpose of aiding and facilitating the work of the 
     Museum or the Council;
       (B) establish policy with respect to the utilization of the 
     collections and resources of the Museum, including policies 
     on programming, education, exhibitions, and research with 
     respect to life, art, and culture of African Americans, the 
     role of African Americans in the history of the United 
     States, from slavery to the present, and the contributions of 
     African Americans to society;
       (C) purchase, accept, borrow, and otherwise acquire 
     artifacts and other property for addition to the collections 
     of the Museum;
       (D) provide for restoration, preservation, and maintenance 
     of the collections of the Museum;
       (E) loan, exchange, sell, and otherwise dispose of any part 
     of the collections of the Museum, but only if the funds 
     generated by such disposition are used for additions to the 
     collections of the Museum or for programs carried out under 
     section 6; and
       (F) contract with and compensate Federal Government and 
     private agencies or persons for supplies and services that 
     would aid the work of the Museum, without regard to section 
     3709 of the Revised Statutes (41 U.S.C. 5).
       (2) Administration.--Subject to subsection (l), the Board 
     of Regents shall advise and assist the Council on all matters 
     relating to the administration, operation, maintenance, and 
     preservation of the Museum.
       (3) Annual report to congress.--Subject to subsection (l), 
     the Council shall submit to Congress an annual report that--
       (A) provides a detailed account of the activities of the 
     Council and the Museum;
       (B) recommends an annual budget for the Council and the 
     Museum; and
       (C) identifies the future needs of the Council and the 
     Museum.
       (4) Annual report to the board of regents.--Subject to 
     subsection (l), the Council shall report annually to the 
     Board of Regents on the acquisition, disposition, and display 
     of African American objects and artifacts and on other 
     appropriate matters.
       (c) Composition and Appointment.--
       (1) In general.--The Council shall be composed of 25 voting 
     members as provided under paragraph (2) and 7 honorary 
     nonvoting members as provided under paragraph (3).
       (2) Voting members.--The Council shall include the 
     following voting members:
       (A) The Secretary of the Smithsonian Institution.
       (B) An Assistant Secretary of the Smithsonian Institution 
     appointed by the Board of Regents.
       (C) 13 individuals of diverse disciplines and geographical 
     residence who are committed to the advancement of knowledge 
     of African American history and culture appointed as follows:
       (i) 5 individuals shall be appointed by the President from 
     a list of nominees provided by the President pro tempore of 
     the Senate in consultation with the majority and minority 
     leaders of the Senate.
       (ii) 5 individuals shall be appointed by the President from 
     a list of nominees provided by the Speaker of the House of 
     Representatives in consultation with the majority and 
     minority leaders of the House of Representatives.
       (iii) 3 individuals shall be appointed by the President.
       (D) 10 individuals appointed as follows:
       (i) 4 individuals shall be appointed by the President from 
     a list of nominees, provided by the President pro tempore of 
     the Senate in consultation with the majority and minority 
     leaders of the Senate, and recommended by the Association of 
     African American Museums, the National African American 
     Museum and Culture Complex, historically black colleges and 
     universities, and cultural or other organizations committed 
     to

[[Page 6971]]

     the advancement of knowledge of African American life, art, 
     history and culture.
       (ii) 4 individuals shall be appointed by the President from 
     a list of nominees, provided by the Speaker of the House of 
     Representatives in consultation with the majority and 
     minority leaders of the House of Representatives, and 
     recommended by the Association of African American Museums, 
     the National African American Museum and Culture Complex, 
     historically black colleges and universities, and cultural or 
     other organizations committed to the advancement of knowledge 
     of African American life, art, history and culture.
       (iii) 2 individuals shall be appointed by the President.
       (3) Honorary nonvoting members.--The Council shall include 
     the following honorary nonvoting members:
       (A) The Secretary of the Interior.
       (B) 3 Members of the House of Representatives appointed by 
     the Speaker of the House of Representatives upon the 
     recommendation of the majority and minority leaders of the 
     House of Representatives.
       (C) 3 Senators appointed by the President pro tempore of 
     the Senate upon the recommendation of the majority and 
     minority leaders of the Senate.
       (d) Terms.--
       (1) In general.--
       (A) Initial appointment.--Except as provided in this 
     subsection, each member of the Council shall be appointed for 
     a term that terminates 9 years after the date on which the 
     museum is open to the general public.
       (B) Subsequent appointments.--Except as provided in this 
     subsection, each of the members of the Council that are 
     appointed after the members described in paragraph (1) shall 
     be appointed for a term of 6 years.
       (C) Reappointment.--Members of the Council may be 
     reappointed for subsequent terms.
       (2) Members of congress.--If a member appointed to the 
     Council under subparagraph (B) or (C) of subsection (c)(3) 
     ceases to hold the office that qualified such member for 
     appointment, that member shall cease to be a member of the 
     Council.
       (3) Vacancies and subsequent appointments.--A vacancy on 
     the Council, including among the honorary non-voting members, 
     shall not affect the Council's powers and shall be filled in 
     the manner in which the original appointment was made, except 
     that when filling any vacancies among the voting members and 
     when making any appointments for voting members after the 
     initial appointments, the President shall make appointments 
     from a list of nominees provided by the Council. Any member 
     appointed to fill a vacancy occasioned by death or 
     resignation shall be appointed for the remainder of the term.
       (e) Compensation.--
       (1) In general.--Except as provided in paragraph (2), 
     members of the Council shall serve without pay.
       (2) Expenses.--Members of the Council shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with applicable provisions under subchapter I of 
     chapter 57 of title 5, United States Code.
       (f) Chairperson.--The Council shall elect a chairperson by 
     a majority vote of the voting members of the Council.
       (g) Meetings.--
       (1) In general.--The Council shall meet at the call of the 
     chairperson or upon the written request of a majority of the 
     voting members of the Council, but shall meet, subject to 
     paragraph (2), not fewer than 2 times each year.
       (2) Planning.--During the first year, the Council shall 
     meet not fewer than 10 times for the purpose of the planning 
     and design of the Museum.
       (h) Quorum.--A majority of the voting members of the 
     Council shall constitute a quorum for purposes of conducting 
     business, but a lesser number may receive information on 
     behalf of the Council.
       (i) Bylaws.--The Council shall adopt bylaws.
       (j) Powers of Members and Agents.--Any member or agent of 
     the Council may, if authorized by a majority of the voting 
     members of the Council, take any action that the Council is 
     authorized to take by this Act.
       (k) Voluntary Services.--Notwithstanding section 1342 of 
     title 31, United States Code, the chairperson of the Council 
     may accept for the Council voluntary services provided by a 
     member of the Council.
       (l) Transfer of Powers and Duties.--
       (1) In general.--Except as provided in this subsection, the 
     Council's powers and duties shall transfer to the Board of 
     Regents 3 years after the date on which the Museum is open to 
     the general public.
       (2) Advisory council.--
       (A) In general.--3 years after the date on which the Museum 
     is open to the general public, the Council shall become an 
     advisory council (hereafter referred to in this Act as the 
     ``Advisory Council'').
       (B) Duties of the advisory council.--The Advisory Council 
     shall advise the Board of Regents on matters related to the 
     administration, operation, and maintenance of the Museum.
       (C) Meetings.--The Advisory Council shall meet not fewer 
     than 1 time each year.
       (D) Permanent committee.--Section 14 of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     Advisory Council.

     SEC. 5. DIRECTOR AND STAFF OF THE MUSEUM.

       (a) In General.--The Council, in consultation with the 
     Board of Regents, shall appoint a Director who shall manage 
     the Museum.
       (b) Applicability of Certain Civil Service Laws.--
       (1) Appointments.--The Council may appoint the Director and 
     any additional personnel to serve under the Director, without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service.
       (2) Pay.--The Council may fix the pay of the Director at a 
     rate not to exceed the maximum rate of basic pay payable for 
     level III of the Executive Schedule and fix the pay of such 
     additional personnel as the Council considers appropriate.

     SEC. 6. OFFICE OF EDUCATION AND LIAISON PROGRAMS.

       (a) Office Established.--There is established within the 
     Museum, the Office of Education and Liaison Programs, which 
     shall carry out educational programs with respect to the 
     Museum and other programs in collaboration with other African 
     American museums.
       (b) Functions.--The Office of Education and Liaison 
     Programs shall--
       (1) carry out public educational programs within the Museum 
     relating to African American life, art, history, and culture, 
     including programs utilizing digital, electronic, and 
     interactive technologies, and programs in collaboration with 
     elementary schools, secondary schools, and post-secondary 
     schools; and
       (2) collaborate with African American museums by--
       (A) establishing educational grant programs that strengthen 
     museum operations, improve care of museum collections, and 
     increase professional development;
       (B) providing internship and fellowship programs that allow 
     individuals pursuing careers or carrying out studies in the 
     arts, humanities, and sciences to study African American 
     life, art, history and culture;
       (C) providing scholarship programs to assist individuals 
     who demonstrate a commitment to a career in African American 
     museum management in financing their studies; and
       (D) collaborating with national and international 
     organizations that address the issue of slavery in the 
     international community.

     SEC. 7. LOCATION OF THE NATIONAL MUSEUM OF AFRICAN AMERICAN 
                   HISTORY AND CULTURE.

       (a) Main Building.--The Council, in consultation with the 
     Board of Regents of the Smithsonian Institution is authorized 
     to plan, design, reconstruct, and renovate the Arts and 
     Industries Building of the Smithsonian Institution and the 
     surrounding site to house the Museum. The Council shall 
     consider expanding, and is authorized to expand, the Arts and 
     Industries Building horizontally, vertically, and below 
     ground.
       (b) Additional Facilities.--
       (1) In general.--If the Council determines that facilities 
     in addition to the Arts and Industries Building of the 
     Smithsonian Institution are needed for the Museum, the 
     Council, in consultation with the General Services 
     Administration and the National Capital Planning Commission 
     is authorized to--
       (A) identify a site for the additional facilities;
       (B) acquire real property for the additional facilities;
       (C) design the additional facilities; and
       (D)(i) construct a building for the additional facilities; 
     or
       (ii) reconstruct and renovate a building for the additional 
     facilities.
       (2) Location.--Any additional facilities for the Museum 
     shall be located, if feasible, on or adjacent to the National 
     Mall.
       (3) Purchase authority.--After consultation with the 
     General Services Administration and the National Capital 
     Planning Commission, the Council may purchase, with the 
     consent of the owner thereof, any real property on or 
     adjacent to the National Mall for such additional facilities.
       (4) Transfer authority.--For the purpose of securing 
     additional facilities, any department or agency of the United 
     States is authorized to transfer to the Council any interest 
     of such department or agency in real property located on or 
     adjacent to the National Mall, and the Council, after 
     consultation with the General Services Administration and the 
     National Capital Planning Commission, may accept any such 
     interest in such property.
       (c) Cost-Sharing.--The Council shall pay \1/3\ of the total 
     cost of carrying out this section from appropriated funds. 
     The Council shall pay the remainder of such costs from non-
     Federal sources. The Council shall have 5 years following the 
     date of the Council's first meeting to secure the non-Federal 
     funds required under this subsection.
       (d) Commemorative Works Act.--Any building to house the 
     Museum, including any additional facilities for the Museum, 
     is not a commemorative work for purposes of the Commemorative 
     Works Act (40 U.S.C. 1001 et seq.).

     SEC. 8. NATIONAL MALL.

       In this Act, the term ``National Mall'' means the National 
     Mall (United States Government Reservations 3, 4, 5, and 6) 
     in the District of Columbia.

[[Page 6972]]



     SEC. 9. AUTHORITY.

       Authority under this Act to enter into contracts or to make 
     payments is effective in any fiscal year only to the extent 
     provided in advance in an appropriations act, except as 
     provided under section 10(b)(3).

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       (a) Renovation.--There is authorized to be appropriated 
     such sums as may be necessary to carry out the activities 
     authorized under section 7.
       (b) Operation and Maintenance.--
       (1) In general.--There is authorized to be appropriated to 
     the Council to carry out this Act, other than sections 6 and 
     7--
       (A) $15,000,000 for fiscal year 2002; and
       (B) such sums as may be necessary for each succeeding 
     fiscal year.
       (2) Office of education and liaison programs.--There is 
     authorized to be appropriated to the Council to carry out 
     section 6, $10,000,000 for fiscal year 2002 and for each 
     succeeding fiscal year.
       (3) Availability.--The amounts appropriated under 
     paragraphs (1) and (2) shall remain available for the 
     operation and maintenance of the Museum until expended.

     SEC. 11. AMENDMENT.

       Section 5580 of the Revised Statutes (20 U.S.C. 42) is 
     amended in subsection (b)(2) by inserting ``the National 
     Museum of African American History and Culture,'' after 
     ``Performing Arts,''.

  Mr. CLELAND. Mr. President, I rise to discuss legislation being 
introduced in the Senate today to establish the National Museum of 
African American History and Culture. I am very proud to work with such 
distinguished members of the Senate as my friend, Senator Brownback, 
and the other co-sponsors of this legislation: Senators Santorum, 
Clinton, Reid, Dodd, and Miller. Our bill is similar to a measure being 
introduced in the House by Representatives John Lewis and J.C. Watts. I 
am both proud and pleased to be associated with this project and look 
forward to seeing this legislation passed by the Senate and the House 
of Representatives and signed into law by the President in the near 
future.
  This bipartisan legislation would establish a permanent collection of 
artifacts and historical materials showcasing 400 years of African 
American history, available for the public to experience and enjoy 
year-round. The national museum would be financed by a combination of 
public and private sector contributions. A number of studies document 
the great need for museum collections addressing African American 
history and culture. African American visitors to Washington find that 
their story is not being told in the existing museums and memorials. 
Yet, there are existing private collections of historical materials 
addressing African American history that could be contributed to a 
museum in Washington.
  Many notable African Americans have made important contributions in 
the areas of science, medicine, the arts and humanities, sports, music 
and dance, among many other fields. It is right to honor this legacy on 
a national level. We believe that by establishing this museum we will 
be able to finally honor the legacy of African Americans properly. By 
placing this museum on or near the National Mall, we will finally place 
the history of African Americans in a national spot-light, where it 
belongs.
  Legislation authorizing a national museum devoted to African American 
history and culture has been introduced during every Congress since 
1988. The legislation passed the Senate unanimously in one Congress, 
and passed the House unanimously in another session. However, it has 
not yet become law. The sponsors of the legislation in the 107th 
Congress believe that the time has come for enactment of this 
legislation so that families across America from all races and ethnic 
groups who visit the nation's capital can more fully understand 
American history and the significant contributions of African Americans 
to that history.
  I encourage others to join us in this endeavor as we attempt to 
remember, recognize, and commemorate the major contributions made by 
African Americans in the areas of science, medicine, the arts and 
humanities, sports, music, and dance. This museum will not only be a 
tribute to African American history and culture but it will also be a 
source of pride for all Americans as physical evidence of the strength, 
character, and dignity of the human race.




                                 ______
                                 
      By Mr. CHAFEE (for himself, Mr. Reid, Mr. Hatch, Mr. Leahy, Mr. 
        Warner, Mr. Torricelli, Ms. Snowe, Mrs. Murray, Ms. Mikulski, 
        Mr. Johnson, Mr. Corzine, and Mr. Kerry):
  S. 830. A bill to amend the Public Health Service Act to authorize 
the Director of the National Institute of Environmental Health Sciences 
to make grants for the development and operation of research centers 
regarding environmental factors that may be related to the etiology of 
breast cancer; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. CHAFEE. Mr. President, I am pleased to be joined today by 
Senators Reid, Hatch, Leahy, Warner, Toricelli, Snowe, Murray, 
Mikulski, Johnson, Corzine, and Kerry in introducing the Breast Cancer 
and Environmental Research Act of 2001. This bill would establish 
research centers that would be the first in the nation to specifically 
study the environmental factors that may be related to the development 
of breast cancer. The lack of agreement within the scientific community 
and among breast cancer advocates on this question highlights the need 
for further study.
  It is generally believed that the environment plays some role in the 
development of breast cancer, but the extent of that role is not 
understood. The Breast Cancer and Environmental Research Act of 2001 
will enable us to conduct more conclusive and comprehensive research to 
determine the impact of the environment on breast cancer. Before we can 
find the answers, we must determine the right questions we should be 
asking.
  While more research is being conducted into the relationship between 
breast cancer and the environment, there are still several issues that 
must be resolved to make this research more effective. They are as 
follows:
  There is no known cause of breast cancer. There is little agreement 
in the scientific community on how the environment effects breast 
cancer. While studies have been conducted on the links between 
environmental factors like pesticides, diet, and electromagnetic 
fields, no consensus has been reached. There are other factors that 
have not yet been studied that could provide valuable information. 
While there is much speculation, it is clear that the relationship 
between environmental exposures and breast cancer is poorly understood.
  There are challenges in conducting environmental research. 
Identifying links between environmental factors and breast cancer is 
difficult. Laboratory experiments and cluster analyses, such as those 
in Long Island, New York, cannot reveal whether an environmental 
exposure increases a woman's risk of breast cancer. Epidemiological 
studies must be designed carefully because environmental exposures are 
difficult to measure.
  Coordination between the National Institutes of Health, NIH, the 
National Cancer Institute, NCI, and the National Institute of 
Environmental Health Sciences, NIEHS, needs to occur. NCI and NIEHS are 
the two institutes in the NIH that fund most of the research related to 
breast cancer and the environment; however, comprehensive information 
specific to environmental effects on breast cancer is not currently 
available.
  This legislation would establish eight Centers of Excellence to study 
these potential links. These ``Breast Cancer Environmental Research 
Centers'' would provide for multi-disciplinary research among basic, 
clinical, epidemiological and behavioral scientists interested in 
establishing outstanding, state-of-the-art research programs addressing 
potential links between the environment and breast cancer. The NIEHS 
would award grants based on a competitive peer-review process. This 
legislation would require each Center to collaborate with community 
organizations in the area, including those that represent women with 
breast cancer. The bill would authorize $30 million for the next five 
years for these grants.
  ``Genetics loads the gun, the environment pulls the trigger,'' as Ken 
Olden, the Director of NIEHS, frequently says.

[[Page 6973]]

Many scientists believe that certain groups of women have genetic 
variations that may make them more susceptible to adverse environmental 
exposures. We need to step back and gather evidence before we come to 
conclusions--that is the purpose of this bill. People are hungry for 
information, and there is a lot of inconclusive data out there, some of 
which has no scientific merit whatsoever. We have the opportunity 
through this legislation to gather legitimate and comprehensive data 
from premier research institutions across the nation.
  According to the American Cancer Society, each year 800 women in 
Rhode Island are diagnosed with breast cancer, and 200 women in my 
state will die of this terrible disease this year. We owe it to these 
women who are diagnosed with this, life-threatening disease to provide 
them with answers for the first time.
  I urge my colleagues to join me in supporting and cosponsoring this 
important legislation, and ask unanimous consent that the text of this 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record as follows:

                                 S. 830

       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 ``Breast Cancer and 
     Environmental Research Act of 2001''.

     SEC. 2. FINDINGS.

       The Congress finds as follows:
       (1) Breast cancer is the second leading cause of cancer 
     deaths among American women.
       (2) More women in the United States are living with breast 
     cancer than any other cancer (excluding skin cancer). 
     Approximately 3,000,000 women in the United States are living 
     with breast cancer, 2,000,000 of which have been diagnosed 
     and an estimated 1,000,000 who do not yet know that they have 
     the disease.
       (3) Breast cancer is the most commonly diagnosed cancer 
     among women in the United States and worldwide (excluding 
     skin cancer). In 2001, it is estimated that 233,000 new cases 
     of breast cancer will be diagnosed among women in the United 
     States, 192,000 cases of which will involve invasive breast 
     cancer and 40,800 cases of which will involve ductal 
     carcinoma in situ (DCIS).
       (4) Breast cancer is the second leading cause of cancer 
     death for women in the United States. Approximately 40,000 
     women in the United States die from the disease each year. 
     Breast cancer is the leading cause of cancer death for women 
     in the United States between the ages of 20 and 59, and the 
     leading cause of cancer death for women worldwide.
       (5) A woman in the United States has a 1 in 8 chance of 
     developing invasive breast cancer in her lifetime. This risk 
     was 1 in 11 in 1975. In 2001, a new case of breast cancer 
     will be diagnosed every 2 minutes and a woman will die from 
     breast cancer every 13 minutes.
       (6) All women are at risk for breast cancer. About 90 
     percent of women who develop breast cancer do not have a 
     family history of the disease.
       (7) The National Action Plan on Breast Cancer, a public 
     private partnership, has recognized the importance of 
     expanding the scope and breadth of biomedical, 
     epidemiological, and behavioral research activities related 
     to the etiology of breast cancer and the role of the 
     environment.
       (8) To date, there has been only a limited research 
     investment to expand the scope or coordinate efforts across 
     disciplines or work with the community to study the role of 
     the environment in the development of breast cancer.
       (9) In order to take full advantage of the tremendous 
     potential for avenues of prevention, the Federal investment 
     in the role of the environment and the development of breast 
     cancer should be expanded.
       (10) In order to understand the effect of chemicals and 
     radiation on the development of cancer, multi-generational, 
     prospective studies are probably required.

     SEC. 3. NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES; 
                   AWARDS FOR DEVELOPMENT AND OPERATION OF 
                   RESEARCH CENTERS REGARDING ENVIRONMENTAL 
                   FACTORS RELATED TO BREAST CANCER.

       Subpart 12 of part C of title IV of the Public Health 
     Service Act (42 U.S.C. 285l et seq.) is amended by adding at 
     the end the following section:

     ``SEC. 463B. RESEARCH CENTERS REGARDING ENVIRONMENTAL FACTORS 
                   RELATED TO BREAST CANCER.

       ``(a) In General.--The Director of the Institute, based on 
     recommendations from the Breast Cancer and Environmental 
     Research Panel established under subsection (b) (referred to 
     in this section as the `Panel') shall make grants, after a 
     process of peer review and programmatic review, to public or 
     nonprofit private entities for the development and operation 
     of not more than 8 centers for the purpose of conducting 
     multidisciplinary and multi-institutional research on 
     environmental factors that may be related to the etiology of 
     breast cancer. Each such center shall be known as a Breast 
     Cancer and Environmental Research Center of Excellence.
       ``(b) Breast Cancer and Environmental Research Panel.--
       ``(1) Establishment.--The Secretary shall establish in the 
     Institute of Environmental Health Sciences a Breast Cancer 
     and Environmental Research Panel.
       ``(2) Composition.--The Panel shall be composed of--
       ``(A) 9 members to be appointed by the Secretary, of 
     which--
       ``(i) six members shall be appointed from among physicians, 
     and other health professionals, who--

       ``(I) are not officers or employees of the United States;
       ``(II) represent multiple disciplines, including clinical, 
     basic, and public health sciences;
       ``(III) represent different geographical regions of the 
     United States;
       ``(IV) are from practice settings or academia or other 
     research settings; and
       ``(V) are experienced in biomedical review; and

       ``(ii) three members shall be appointed from the general 
     public who are representatives of individuals who have had 
     breast cancer and who represent a constituency; and
       ``(B) such nonvoting, ex officio members as the Secretary 
     determines to be appropriate.
       ``(3) Chairperson.--The members of the Panel appointed 
     under paragraph (2)(A) shall select a chairperson from among 
     such members.
       ``(4) Meetings.--The Panel shall meet at the call of the 
     chairperson or upon the request of the Director, but in no 
     case less often than once each year.
       ``(5) Duties.--The Panel shall--
       ``(A) oversee the peer review process for the awarding of 
     grants under subsection (a) and conduct the programmatic 
     review under such subsection;
       ``(B) make recommendations with respect to the funding 
     criteria and mechanisms under which amounts will be allocated 
     under this section; and
       ``(C) make final programmatic recommendations with respect 
     to grants under this section.
       ``(c) Collaboration With Community.--Each center under 
     subsection (a) shall establish and maintain ongoing 
     collaborations with community organizations in the geographic 
     area served by the center, including those that represent 
     women with breast cancer.
       ``(d) Coordination of Centers; Reports.--The Director of 
     the Institute shall, as appropriate, provide for the 
     coordination of information among centers under subsection 
     (a) and ensure regular communication between such centers, 
     and may require the periodic preparation of reports on the 
     activities of the centers and the submission of the reports 
     to the Director.
       ``(e) Required Consortium.--Each center under subsection 
     (a) shall be formed from a consortium of cooperating 
     institutions, meeting such requirements as may be prescribed 
     by the Director of the Institute. Each center shall require 
     collaboration among highly accomplished scientists, other 
     health professionals and advocates of diverse backgrounds 
     from various areas of expertise.
       ``(f) Duration of Support.--Support of a center under 
     subsection (a) may be for a period not exceeding 5 years. 
     Such period may be extended for one or more additional 
     periods not exceeding 5 years if the operations of such 
     center have been reviewed by an appropriate technical and 
     scientific peer review group established by the Director of 
     the Institute and if such group has recommended to the 
     Director that such period should be extended.
       ``(g) Geographic Distribution of Centers.--The Director of 
     the Institute shall, to the extent practicable, provide for 
     an equitable geographical distribution of centers under this 
     section.
       ``(h) Innovative Approaches.--Each center under subsection 
     (a) shall use innovative approaches to study unexplored or 
     under-explored areas of the environment and breast cancer.
       ``(i) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated $30,000,000 for each of the fiscal years 2002 
     through 2007. Such authorization is in addition to any other 
     authorization of appropriations that is available for such 
     purpose.''.

  Mr. REID. Mr. President, I am pleased to join Senator Chafee in 
introducing the Breast Cancer and Environmental Research Act. Senator 
Chafee and I serve together on the Environment and Public Works 
Committee where we have had the opportunity to take a closer look at 
different environment-related health concerns. Most recently, the 
Committee traveled to Nevada to investigate what environmental factors 
may have contributed to a childhood leukemia cluster in the town of 
Fallon.

[[Page 6974]]

  The Fallon hearing reminded me how little we know about what causes 
cancer and what, if any, connection exists between the environment and 
cancer. Three decades have passed since President Nixon declared the 
``War on Cancer'' and scientists are still struggling with these and 
other crucial unanswered questions about cancer. This is particularly 
true in the case of breast cancer. We still don't know what causes 
breast cancer. We don't know if the environment plays a role in the 
development of breast cancer, and if it does, we don't know how 
significant that role is. In our search for answers about breast 
cancer, we need to make sure we are asking the right questions.
  To date, there has been only a limited research investment to study 
the role of the environment in the development of breast cancer. More 
research needs to be done to determine the impact of the environment on 
breast cancer. The Breast Cancer and Environmental Research Act would 
give scientists the tools they need to pursue a better understanding 
about what links between the environment and breast cancer may exist. 
Specifically, our bill would authorize $30 million dollars to the 
National Institute of Environmental Health Sciences to establish eight 
Centers of Excellence that would focus on breast cancer and the 
environment.
  In the year 2000 alone, 183,000 women will learn that they have 
breast cancer. In this same year, 40,000 women will die from breast 
cancer. In Nevada--a state with a population under two million people--
1,200 women will be diagnosed with breast cancer in this year and 200 
women will lose their lives to this deadly disease. These women are our 
mothers, our wives, our daughters, and our friends.
  If we miss promising research opportunities because of Congress' 
failure to act, millions of women and their families will face critical 
unanswered questions about breast cancer. I urge my colleagues to join 
in our quest for answers about this deadly disease and to support the 
Breast Cancer and Environmental Research Act.
                                 ______
                                 
      By Mr. SHELBY:
  S. 831. A bill to amend the Internal Revenue Code of 1986 to provide 
for a 100 percent deduction for business meals; to the Committee on 
Finance.
  Mr. SHELBY. Mr. President, I rise today to introduce legislation that 
would increase the deductibility of business meals to 100 percent. By 
only allowing a 50 percent deduction, the current law unfairly hurts 
small business owners who many times conduct business face to face over 
a meal. For these people, the costs of business meals truly is a 
legitimate business expense. However, unlike other business expenses, 
they are not able to fully deduct the cost of business meals.
  America's small businesses are the backbone of our economy. Allowing 
full deductibility of business related meals will lighten the heavy 
financial burden small business owners face daily just to be able to 
keep their doors open. Furthermore, increased deductibility will inject 
additional capital into our country's businesses, allowing them to 
spend more money on innovation and growth. Such activities will lead to 
more jobs and a stronger economy.
  Full deductibility of business meals will also create an increase in 
restaurant patronage. As a result, my bill will benefit waiters, 
waitresses, cooks and other restaurant workers by increasing their job 
security and wages. Increased wages will make it easier for restaurant 
employees to meet the rising cost of living. With the cost of gasoline, 
electricity, and health insurance rising to unprecedented levels, 
higher wages can not come soon enough.
  Just as importantly, increased wages will make it easier for more 
Americans to save for their retirement. Rather than living paycheck to 
paycheck, increased wages in the restaurant industry will make it 
possible for more people to begin to save for the future. Given the 
bleak predictions for the continued solvency of the Social Security 
trust fund, Congress must do all that it can to encourage saving.
  Similar bills to increase the deductibility of business meals have 
been introduced in previous years. Now is the time to move beyond mere 
discussion and to move towards meaningful action. This legislation will 
have a positive effect on our economy. It fosters small business growth 
and will help increase wages for many Americans throughout the country. 
I ask that my colleagues join me in support of this bill.
  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. 831

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

     SECTION 1. INCREASED DEDUCTION FOR BUSINESS MEAL EXPENSES.

       (a) In General.--Section 274(n)(1) (relating to only 50 
     percent of meal and entertainment expenses allowed as 
     deduction) is amended by striking ``50 percent'' in the text 
     and inserting ``the allowable percentage''.
       (b) Allowable Percentage.--Section 274(n) is amended by--
       (1) striking paragraph (3);
       (2) redesignating paragraph (2) as paragraph (3); and
       (3) inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Allowable percentage.--For purposes of paragraph (1), 
     the allowable percentage is--
       ``(A) in the case of amounts for items described in 
     paragraph (1)(B), 50 percent, and
       ``(B) in the case of expenses for food or beverages, 100 
     percent.''.
       (c) Conforming Amendment.--The heading for subsection (n) 
     of section 274 is amended by striking ``50 Percent'' and 
     inserting ``Limited Percentages''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.
                                 ______
                                 
      By Mr. CAMPBELL (for himself and Mr. Inouye):
  S. 832. A bill to amend the Indian Gaming Regulatory Act, and for 
other purposes; to the Committee on Indian Affairs.
  Mr. CAMPBELL. Mr. President, today I am pleased to introduce the 
Indian Gaming Regulatory Improvement Act of 2001 to make what I believe 
are necessary changes to the Indian Gaming Regulatory Act of 1988. I am 
very pleased to be joined by Senator Inouye in this regard.
  The IGRA was signed into law in 1988 with two purposes in mind: to 
provide for and continue the economic opportunities tribal gaming 
presents to Indian tribes; and to provide a regulatory framework which 
ensures the integrity of tribal gaming--integrity that benefits tribes 
as well as customers of tribal gaming operations.
  In 1988, tribal gaming was a relatively new activity and in 13 years 
tribal gaming annual gross revenues have grown from $500 million to $9 
billion. The IGRA requires these revenues to be spent by tribal 
governments for specific purposes including physical infrastructure, 
general welfare and the betterment of Indian and surrounding non-Indian 
communities.
  Out of 561 federally recognized tribes, there are 212 tribes that 
conduct some form of gaming. The old saying that the best social 
welfare policy is a job is true when it comes to tribal gaming. The 
economic benefits for these tribes, their members and surrounding 
communities cannot be ignored. For these communities collectively, 
unemployment has dropped significantly and workers, both Non-Indian and 
Indian alike, employed by these operations enjoy benefits such as 
steady income and good paying jobs, health insurance and retirement 
benefits. Additionally, tribes who operate gaming have been able to 
complement scarce federal dollars to provide for housing, health care 
and education for their members and to generate hundreds of thousands 
of jobs for Indians and non-Indians nationwide.
  The legislation I am introducing today closely resembles a measure I 
introduced in the last Congress and is not intended to be a 
comprehensive attempt to address all gaming matters that have arisen in 
the past 13 years. Rather, this bill takes aim at 6 very specific 
items:
  1. With regard to gaming fees assessed against tribal operations, 
this bill will require the Federal National

[[Page 6975]]

Indian Gaming Commission to levy fees that are reasonably related to 
the duties of and services provided by the Commission to tribes, and in 
certain instances to reduce the level of fees payable by those 
operations;
  2. The bill establishes a requirement that fees paid by tribes can 
only be utilized for the specific activities of the Commission mandated 
by the IGRA;
  3. It provides statutory authority for the Commission to establish, 
through a negotiated rule-making process, minimum standards for the 
conduct of tribal gaming, while still recognizing the primary 
responsibility of tribes to regulate gaming on tribal lands;
  4. The bill authorizes technical assistance to tribes for a number of 
purposes including strengthening tribal regulatory regimes; assessing 
the feasibility of non-gaming economic development activities on Indian 
lands; providing treatment services for problem gamblers; and for other 
purposes not inconsistent with the IGRA;
  5. It clarifies the current conflict between the IGRA and other 
Federal law with regard to the classification of certain games 
conducted by tribes; and
  6. Last, to bring the Commission in line with all other Federal 
agencies it specifically subjects the Commission to the reporting and 
strategic and long-term planning requirements similar to requirements 
contained in the Government Performance and Results Act of 1993 
(``GPRA'').
  While there are other matters that Indian tribes and others wish to 
address that are not included in this bill, I am hopeful that my 
colleagues will find this legislation to be reasonable and targeted to 
specific issues that demand our attention in this session of Congress.
  I ask 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. 832

       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 ``Indian Gaming Regulatory 
     Improvement Act of 2001''.

     SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.

       The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) 
     is amended--
       (1) in section 4(7) (25 U.S.C. 2703(7)), by adding at the 
     end the following:
       ``(G) Notwithstanding any other provision of law, sections 
     1 through 7 of the Act of January 2, 1951 (commonly known as 
     the Gambling Devices Transportation Act (15 U.S.C. 1171-
     1177)) shall not apply to any gaming described in 
     subparagraph (A)(i) (class II gaming) where electronic, 
     computer, or other technologic aids are used in connection 
     with any such gaming.'';
       (2) in section 7 (25 U.S.C. 2706)--
       (A) in subsection (c)--
       (i) in paragraph (3), by striking ``and'' at the end 
     thereof;
       (ii) by redesignating paragraph (4) as paragraph (5); and
       (iii) by inserting after paragraph (3), the following:
       ``(4) the strategic plan for Commission activities.''; and
       (B) by adding at the end the following:
       ``(d) Strategic Plan.--
       ``(1) In general.--The strategic plan required under 
     subsection (c)(4) shall include--
       ``(A) a comprehensive mission statement covering the major 
     functions and operations of the Commission;
       ``(B) the general goals and objectives, including outcome-
     related goals and objectives, for the major functions and 
     operations of the Commission;
       ``(C) a description of how the general goals and objectives 
     are to be achieved, including a description of the 
     operational processes, skills and technology, and the human, 
     capital, information, and other resources required to meet 
     those goals and objectives;
       ``(D) a performance plan that shall be related to the 
     general goals and objectives of the strategic plan;
       ``(E) an identification of the key factors external to the 
     Commission and beyond its control that could significantly 
     affect the achievement of the general goals and objectives; 
     and
       ``(F) a description of the program evaluations used in 
     establishing or revising the general goals and objectives, 
     with a schedule for future program evaluations.
       ``(2) Term of plan.--The strategic plan shall cover a 
     period of not less than 5 fiscal years beginning with the 
     fiscal year in which it the plan is submitted. The strategic 
     plan shall be updated and revised at least every 4 years.
       ``(3) Performance plan.--The performance plan under 
     paragraph (1)(D) shall be consistent with the strategic plan. 
     In developing the performance plan, the Commission should be 
     consistent with the requirements of section 1115 of title 31, 
     United States Code (the Government Performance and Results 
     Act).
       ``(4) Consultation.--In developing the strategic plan, the 
     Commission shall consult with the Congress and tribal 
     governments, and shall solicit and consider the views and 
     suggestions of those entities that may be potentially 
     affected by or interested in such a plan.'';
       (3) in section 11(b)(2)(F)(i) (25 U.S.C. 2710(b)(2)(F)(i)), 
     by striking ``primary management'' and all that follows 
     through ``such officials'' and inserting ``tribal gaming 
     commissioners, key tribal gaming commission employees, and 
     primary management officials and key employees of the gaming 
     enterprise and that oversight of primary management officials 
     and key employees'';
       (4) in section 18(a) (25 U.S.C. 2717(a))--
       (A) in paragraph (1), by striking ``by each'' and all that 
     follows through the period and inserting ``pursuant to 
     section 22(a)'';
       (B) by striking paragraphs (2) and (3); and
       (C) by redesignating paragraphs (4) through (6) as 
     paragraphs (2) through (4), respectively;
       (5) by redesignating section 22 (25 U.S.C. 2721) as section 
     25; and
       (6) by inserting after section 21 (25 U.S.C. 2720) the 
     following:

     ``SEC. 22. FEE ASSESSMENTS.

       ``(a) Establishment of Schedule of Fees.--
       ``(1) In general.--Except as provided in this section, the 
     Commission shall establish a schedule of fees to be paid 
     annually to the Commission by each gaming operation that 
     conducts a class II or class III gaming activity that is 
     regulated by this Act.
       ``(2) Rates.--The rate of fees under the schedule 
     established under paragraph (1) that are imposed on the gross 
     revenues from each activity described in such paragraph shall 
     be as follows:
       ``(A) A fee of not more than 2.5 percent shall be imposed 
     on the first $1,500,000 of such gross revenues.
       ``(B) A fee of not more than 5 percent shall be imposed on 
     amounts in excess of the first $1,500,000 of such gross 
     revenues.
       ``(3) Total amount.--The total amount of all fees imposed 
     during any fiscal year under the schedule established under 
     paragraph (1) shall not exceed $8,000,000.
       ``(b) Commission Authorization.--
       ``(1) In general.--By a vote of not less than 2 members of 
     the Commission the Commission shall adopt the schedule of 
     fees provided for under this section. Such fees shall be 
     payable to the Commission on a quarterly basis.
       ``(2) Fees assessed for services.--The aggregate amount of 
     fees assessed under this section shall be reasonably related 
     to the costs of services provided by the Commission to Indian 
     tribes under this Act (including the cost of issuing 
     regulations necessary to carry out this Act). In assessing 
     and collecting fees under this section, the Commission shall 
     take into account the duties of, and services provided by, 
     the Commission under this Act.
       ``(3) Rulemaking.--The Commission shall promulgate 
     regulations as may be necessary to carry out this subsection.
       ``(4) Consultation.--In establishing a schedule of fees 
     under this section, the Commission shall consult with Indian 
     tribes.
       ``(c) Fee Reduction Program.--
       ``(1) In general.--In making a determination of the amount 
     of fees to be assessed for any class II or class III gaming 
     activity under the schedule of fees under this section, the 
     Commission may provide for a reduction in the amount of fees 
     that otherwise would be collected on the basis of the 
     following factors:
       ``(A) The extent of the regulation of the gaming activity 
     involved by a State or Indian tribe (or both).
       ``(B) The extent of self-regulating activities, as defined 
     by this Act, conducted by the Indian tribe.
       ``(C) Other factors determined by the Commission, including
       ``(i) the unique nature of tribal gaming as compared to 
     commercial gaming, other governmental gaming, and charitable 
     gaming;
       ``(ii) the broad variations in the nature, scale, and size 
     of tribal gaming activity;
       ``(iii) the inherent sovereign rights of Indian tribes with 
     respect to regulating the affairs of Indian tribes;
       ``(iv) the findings and purposes under sections 2 and 3;
       ``(v) the amount of interest or investment income derived 
     from the Indian gaming regulation accounts; and
       ``(vi) any other matter that is consistent with the 
     purposes under section 3.
       ``(2) Rulemaking.--The Commission shall promulgate 
     regulations as may be necessary to carry out this subsection.
       ``(3) Consultation.--In establishing any fee reduction 
     program under this subsection, the Commission shall consult 
     with Indian tribes.
       ``(d) Indian Gaming Regulation Accounts.--
       ``(1) In general.--All fees and civil forfeitures collected 
     by the Commission pursuant

[[Page 6976]]

     to this Act shall be maintained in separate, segregated 
     accounts, and shall only be expended for purposes set forth 
     in this Act.
       ``(2) Investments.--It shall be the duty of the Commission 
     to invest such portion of the accounts maintained under 
     paragraph (1) as are not, in the judgment of the Commission, 
     required to meet immediate expenses. The Commission shall 
     invest the amounts deposited under this Act only in interest-
     bearing obligations of the United States or in obligations 
     guaranteed as to both principal and interest by the United 
     States.
       ``(3) Sale of obligations.--Any obligation acquired by the 
     accounts maintained under paragraph (1), except special 
     obligations issued exclusively to such accounts, may be sold 
     by the Commission at the market price, and such special 
     obligations may be redeemed at par plus accrued interest.
       ``(4) Credits to the indian gaming regulatory accounts.--
     The interest on, and proceeds from, the sale or redemption of 
     any obligations held in the accounts maintained under 
     paragraph (1) shall be credited to and form a part of such 
     accounts.

     ``SEC. 23. MINIMUM STANDARDS.

       ``(a) Class I Gaming.--Notwithstanding any other provision 
     of law, class I gaming on Indian lands shall be within the 
     exclusive jurisdiction of the Indian tribes and shall not be 
     subject to the provisions of this Act.
       ``(b) Class II Gaming.--Effective on the date of enactment 
     of this section, an Indian tribe shall retain primary 
     jurisdiction to regulate class II gaming activities which, at 
     a minimum, shall be conducted in conformity with section 11 
     and regulations promulgated pursuant to subsection (d).
       ``(c) Class III Gaming.--Effective on the date of enactment 
     of this section, an Indian tribe shall retain primary 
     jurisdiction to regulate class III gaming activities 
     authorized under this Act. Any class III gaming operated by 
     an Indian tribe pursuant to this Act shall be conducted in 
     conformity with section 11 and regulations promulgated 
     pursuant to subsection (d).
       ``(d) Rulemaking.--
       ``(1) In general.--
       ``(A) Promulgation.--Not later than 180 days after the date 
     of enactment of the Indian Gaming Regulatory Improvement Act 
     of 2001, the Commission shall develop procedures under 
     subchapter III of chapter 5 of title 5, United States Code, 
     to negotiate and promulgate regulations relating to--
       ``(i) the monitoring and regulation of tribal gaming;
       ``(ii) the establishment and regulation of internal control 
     systems; and
       ``(iii) the conduct of background investigation.
       ``(B) Publication of proposed regulations.--Not later than 
     1 year after the date of enactment of the Indian Gaming 
     Regulatory Improvement Act of 2001, the Commission shall 
     publish in the Federal Register proposed regulations 
     developed by a negotiated rulemaking committee pursuant to 
     this section.
       ``(2) Committee.--A negotiated rulemaking committee 
     established pursuant to section 565 of title 5, United States 
     Code, to carry out this subsection shall be composed only of 
     Federal and Indian tribal government representatives, a 
     majority of whom shall be nominated by and be representative 
     of Indian tribes that conduct gaming pursuant to this Act.
       ``(e) Existing Regulations.--Regulations that establish 
     minimum internal control standards that are promulgated by 
     the Commission and in effect on the date of enactment of this 
     section shall, effective on the date that is 1 year after 
     such date of enactment, have no force or effect.

     ``SEC. 24. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL 
                   FINES.

       ``(a) In General.--Amounts collected by the Commission 
     pursuant to section 14 shall be deposited in a separate 
     Indian gaming regulation account as established under section 
     22(d). Funds in such accounts shall be available to the 
     Commission, as provided for in advance in appropriations 
     Acts, for carrying out this Act.
       ``(b) Use of Funds.--The Commission may provide grants and 
     technical assistance to Indian tribes from any funds secured 
     by the Commission pursuant to section 14, which funds shall 
     be made available only for the following purposes:
       ``(1) To provide technical training and other assistance to 
     Indian tribes to strengthen the regulatory integrity of 
     Indian gaming.
       ``(2) To provide assistance to Indian tribes to assess the 
     feasibility of non-gaming economic development activities on 
     Indian lands.
       ``(3) To provide assistance to Indian tribes to devise and 
     implement programs and treatment services for individuals 
     diagnosed as problem gamblers.
       ``(4) To provide other forms of assistance to Indian tribes 
     not inconsistent with the Indian Gaming Regulatory Act.
       ``(c) Source of Funds.--Amounts used to carry out 
     subsection (b) may only be drawn from funds--
       ``(1) collected by the Commission pursuant to section 14; 
     and
       ``(2) the use of which has been authorized in advance by an 
     appropriations Act.
       ``(d) Consultation.--In carrying out this section, the 
     Commission shall consult with Indian tribes and any other 
     appropriate tribal or Federal officials.
       ``(e) Regulations.--The Commission may promulgate such 
     regulations as may be necessary to carry out this section.''.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Dodd, Mr. Jeffords, Mr. 
        Rockefeller, Mr. Bingaman, and Ms. Collins):
  S. 833. A bill to amend the Internal Revenue Code of 1986 to expand 
the child tax credit; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce the Child Tax 
Credit Expansion and Equity Act of 2001, with my good friend and 
colleague, the Senator from Connecticut, Mr. Dodd, and our other 
cosponsors Mr. Jeffords, Mr. Rockefeller, Mr. Bingaman, and Ms. 
Collins. This legislation would take an important first step towards 
helping those children who are most in need, by expanding the current 
Child Tax Credit and making its benefits more equitable.
  That I am here today introducing this bill is due in large part to 
the efforts of two other people. Thanks to the President's initiative 
to double the current child tax credit from $500 to $1,000. This effort 
has opened the door to addressing the cost borne by the parents in our 
society as they raise their children.
  Of course, there is a larger cost than just the monetary expense 
incurred in taking care of and raising children. However, what better 
way can we acknowledge this cost, and lessen parents' burden than to 
increase the child tax credit. My good friend, and colleague, 
Representative Connie Morella, from Maryland, recognized this and began 
an effort in the House of Representatives to address the current child 
tax credit inequity. I thank her for all of her good work and am happy 
to be able to work with her from this side of the Capitol to see that 
this issue is properly addressed.
  The President's proposal, while an important first step, doesn't do 
enough to help those who need it the most--our low and middle income 
families. But make no mistake it is thanks to the President's opening 
the door to the Child Tax Credit that we are here today to take that 
effort one step further and make this credit partially refundable.
  There are over 16 million children in poverty, 1 in every 4, whose 
families have no federal tax liability and therefore will receive no 
benefit from an increase in the child tax credit because it's not 
refundable. More than two-thirds of these children are in working 
families.
  There are an additional 7 million children who live in families that 
will not benefit from an increase in the child tax credit unless it's 
refundable due to their limited tax liability because they do not pay 
enough in federal taxes to get a $500 credit. Yet, these families pay 
taxes. They pay federal and state taxes, payroll taxes, gas taxes, 
phone taxes, sales taxes, property taxes and other taxes. 
Overwhelmingly, they represent working families. They have no federal 
tax liability and therefore without this change to the child tax credit 
they will receive no benefit from an increased child tax credit.
  There may be some who will say that unless you can do it all don't do 
any of it. There are some who will say that only a fully refundable 
credit is acceptable. However, I respectfully disagree. I have served 
in Congress for over two decades and I have learned that you should 
never pass up the opportunity to make a difference. I have long made 
improving the lives of our children a priority.
  The Child Tax Credit Expansion and Equity Act, would expand the child 
tax credit from $500 to $1,000 as proposed by the President, but it 
would make the first $500 refundable. Families which would otherwise 
receive nothing, would have a $500 refundable credit to help mitigate 
the costs of raising their children today.
  This bill just makes good sense. It makes sense that every family 
with children should be eligible for the child tax credit. It makes 
good sense to expand the number of families that qualify for the credit 
instead of just giving

[[Page 6977]]

more money to those families that already benefit. It makes good sense 
and it does so in a simple and fair way. It does not create another 
complicated tax form. The amount of the credit is based on the number 
of dependents, period. It fits into the current tax code and doesn't 
require a complex calculation or a degree in accounting. This is good 
public policy.
  If timing is everything, then this is the time to do this for some of 
our most needy families. America today is prosperous, healthy and 
strong. And yet, too many of our children, our most vulnerable of 
citizens are in need of assistance. When the federal government is 
expecting the largest surplus ever, shouldn't we make an investment in 
our future and help those who need it most.
  I urge my colleagues to consider this legislation and work with me 
and the cosponsors to ensure that the child tax credit is assisting the 
most children possible.
  Mr. DODD. Mr. President, I am pleased to join with my colleague from 
Maine, Senator Snowe, in introducing legislation to make the child tax 
credit refundable.
  Throughout America, families with children struggle with the extra 
cost associated with raising children today.
  Early in the President's campaign, he proposed to increase the 
current child tax credit from $500 to $1,000. While a reduction in tax 
rates is helpful to families, an increase in the per child tax credit 
is especially helpful because it recognizes that there are costs 
associated with raising a family.
  During the President's inaugural remarks, he said, ``America at its 
best, is compassionate. In the quiet of American consciences, we know 
that deep, persistent poverty is unworthy of our nation's promise.''
  With much applause, the President continued, ``And whatever our views 
of its cause, we can agree that children at risk are not at fault.'' 
``Americans in need are not strangers, they are citizens, not problems, 
but priorities.
  While I very much support the President's proposal to increase the 
child tax credit from $500 to $1,000, it makes sense to me that all 
families, not just families with tax liability, should receive such 
assistance.
  Because the President's tax credit is not refundable, over 16 million 
children are left behind. They live in families with no federal tax 
liability and therefore will receive no benefit from an increase in the 
child tax credit because it's not refundable--it's not available to 
families without federal tax liability.
  An additional 7 million children live in families who will not 
benefit from an increase in the child tax credit unless it's refundable 
because their current credit would not increase due to limited tax 
liability.
  Yet, these families pay taxes. They pay federal and state taxes, 
payroll taxes, gas taxes, phone taxes, and other taxes. Overwhelmingly, 
they represent working families. Yet, at $12,000 or $20,000, they have 
no federal tax liability and therefore unless the child tax credit is 
made refundable, they will receive no benefit from an increased child 
tax credit.
  The legislation we are introducing today will increase the current 
child tax credit from $500 to $1,000 as the President proposed, but 
would also provide a refundable credit of $500 per child for those 
families without federal income tax liability. This reform will lift 
one million families out of poverty.
  Often, people talk of the complexity of the tax code. The beauty of 
making the child tax credit refundable is its simplicity. All families, 
regardless of income, would receive the credit--no marriage penalty, no 
cliff, no complicated phase-outs.
  Back in 1991, the Bipartisan National Children's Commission, chaired 
by my colleague from West Virginia, Senator Rockefeller, recommended 
enacting a refundable child tax credit. After a decade, the time is 
right. We have the resources. And, I hope and believe, we have the 
will.
  Making the child tax credit refundable is simply one of the most 
effective antipoverty strategies in years.
  I urge my colleagues to join with us today in supporting this 
legislation.

                          ____________________