[Congressional Record (Bound Edition), Volume 147 (2001), Part 8]
[Senate]
[Pages 10835-10866]
[From the U.S. Government Publishing Office, www.gpo.gov]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. HUTCHISON (for herself, Mr. Inouye, Mr. Hutchinson, and 
        Mr. Stevens):
  S. 1037. A bill to amend title 10, United States Code, to authorize 
disability retirement to be granted posthumously for members of the 
Armed Forces who die in the line of duty while on active duty, and for 
other purposes; to the Committee on Armed Services.
  Mrs. HUTCHISON. Mr. President, I am pleased to be joined by Senator 
Inouye and Senator Hutchinson to offer legislation on a very important 
issue for those military men and women who serve our country every day. 
Our current military retirement system, I have come to understand, has 
a serious flaw on it.
  We often memorialize those soldiers, sailors, and airmen who died in 
combat, but too often we forget that service men and women die 
frequently during daily operations or while training. In the past five 
years, 2,206 military families lost their spouse, father or mother 
while serving their country. In just the past year we have mourned the 
loss of the sailors on the USS Cole, Air Force pilots in Scotland, and 
soldiers in helicopter crashes in Hawaii, and Vietnam. What is not 
fully understood is that their families do not receive their full 
retirement pensions in many cases. Because service members are not 
vested in their retirement system until the day they retire active duty 
personnel do not qualify for a retirement pension unless the services 
medically retire them before death. This has caused hardships to 
families and necessitated extraordinary efforts by commanders and 
medical and manpower personnel.
  Most Americans, and even many in uniform, do not understand that this 
affects those with one year of service as well as those with thirty. If 
these military members were in the Federal service system, or a 
policeman in Arizona, their family would be able to receive part of 
their pension. This bill will correct that inequity by amending 
Sections 1222 and 1448 of Title 10 U.S.C. and allowing members of the 
armed forces on active duty who die while serving in the line of duty 
to be posthumously retired. In addition, the bill

[[Page 10836]]

would allow the services to ensure the family is given the best choice 
of benefits based on their individual situation. This is the least we 
can do when they make the ultimate sacrifice for their country.
  Though we have not been involved in a major conflict in more than ten 
years, every day we deploy our military to many more places than we did 
just a decade ago. The day-to-day activities of our armed forces are 
inherently dangerous. If we are going to maintain and recruit a quality 
force, we must reassure those who serve that we are going to provide 
for their family. I believe that Brigadier General William Caldwell, 
Assistant Division Commander of the 25th Infantry Division, said it 
best, ``Everything we do is complex.'' BG Caldwell made this comment 
after the crash of two helicopters in Hawaii that killed six members of 
the 25th Infantry Division. That sums up the situation perfectly.
  This bill will be a step in the right direction and is a way to help 
repay our debt to our military and their families. Not only is it the 
right thing and fair thing to do, but during these times of increased 
deployments and personnel shortages, it is in our national interest to 
continue to show our dedicated service members that we appreciate their 
sacrifice and commitment.
  I commend the Senator from Hawaii for his support on this issue and 
urge other Senators to join us in this effort.
  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. 1037

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

     SECTION 1. POSTHUMOUS DISABILITY RETIREMENT FOR MEMBERS OF 
                   THE ARMED FORCES WHO DIE IN THE LINE OF DUTY 
                   WHILE ON ACTIVE DUTY.

       (a) Authority.--Chapter 61 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 1222. Posthumous retirement: retroactive effective 
       date; related elections

       ``(a) Authority.--Upon a determination by the Secretary 
     concerned that it is advantageous for the survivors of a 
     member of the armed forces who dies in the line of duty while 
     on active duty, the Secretary concerned may--
       ``(1) posthumously retire the member under section 1201 of 
     this title effective immediately before the member's death; 
     and
       ``(2) make for the deceased member any election with 
     respect to survivor benefits under laws referred to in 
     subsection (c) that the deceased member would have been 
     entitled to make upon being retired under that section.
       ``(b) Construction With Section 1201 Requirements.--Nothing 
     in this section modifies the requirements set forth in 
     section 1201 of this title regarding determinations or 
     eligibility.
       ``(c) Administration of Benefits Laws.--A retirement and 
     election under subsection (a) shall be effective for the 
     purposes of laws administered by the Secretary of Defense or 
     any Secretary concerned and laws administered by the 
     Secretary of Veterans Affairs.
       ``(d) Nonreviewability of Determinations.--A determination 
     or election made by a Secretary concerned under subsection 
     (a) is not subject to judicial review.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1222. Posthumous retirement: retroactive effective date; related 
              elections.''.

     SEC. 2. SURVIVOR BENEFIT PLAN.

       (a) Surviving Spouse Annuity.--Section 1448(d) of title 10, 
     United States Code, is amended by striking paragraph (1) and 
     inserting the following:
       ``(1) Surviving spouse annuity.--The Secretary concerned 
     shall pay an annuity under this subchapter to the surviving 
     spouse of a member who--
       ``(A) dies in the line of duty while on active duty after--
       ``(i) becoming eligible to receive retired pay;
       ``(ii) qualifying for retired pay except that the member 
     has not applied for or been granted that pay; or
       ``(iii) completing 20 years of active service but before 
     the member is eligible to retire as a commissioned officer 
     because the member has not completed 10 years of active 
     commissioned service; or
       ``(B) dies in the line of duty while on active duty and is 
     posthumously retired under section 1201 of this title 
     pursuant to section 1222 of this title.''.
       (b) Dependent Child Annuity.--Paragraph (2) of such section 
     is amended by striking ``or if the member's surviving spouse 
     subsequently dies'' and inserting ``or if the payment of an 
     annuity to the member's surviving spouse under that paragraph 
     subsequently terminates''.
       (c) Computation of Survivor Annuity.--Section 1451(c) of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(5) Service members posthumously retired.--In the case of 
     an annuity provided under section 1448(d)(1)(B) of this 
     title, the retired pay to which the member would have been 
     entitled when the member died shall be determined for 
     purposes of paragraph (1) based upon the retired pay base 
     computed for the member under section 1406(b) or 1407 of this 
     title as if the member had been retired under section 1201 of 
     this title on the date of the member's death.''.
       (d) Conforming Amendment.--Section 1451(c)(3) of such title 
     is amended by striking ``section 1448(d)(1)(B) or 
     1448(d)(1)(C)'' and inserting ``clause (ii) or (iii) of 
     section 1448(d)(1)(A)''.

     SEC. 3. EFFECT DATE AND APPLICABILITY.

       This Act and the amendments made by this Act shall take 
     effect on the date of the enactment of this Act and shall 
     apply with respect to deaths of members of the Armed Forces 
     occurring on or after that date.
                                 ______
                                 
      By Mr. JEFFORDS (for himself and Mr. Leahy):
  S. 1038. A bill to amend the Internal Revenue Code of 1986 to improve 
access to tax-exempt debt for small nonprofit health care and 
educational institutions; to the Committee on Finance.
  Mr. JEFFORDS. Mr. President, today I am introducing the Health and 
Higher Education Facilities Improvement Act of 2001. This legislation 
will help small non-profit health and educational institutions more 
effectively finance the cost of essential services, and lead to new 
facility construction. By modifying the laws that restrict 
deductibility or ``bank financing for small non-profit organizations 
that need it the most: small local hospitals and colleges.
  The Tax Reform Act of 1986 unintentionally discriminated against 
small non-profit educational and health care facilities that want to 
sell small amounts of tax-exempt debt to community banks. Before 1986, 
banks and financial institutions could deduct the interest incurred to 
carry tax-exempt bonds. This allowed banks to purchase tax-exempt bonds 
at attractive rates. The 1986 tax act repealed bank deductibility, but 
an exception was retained for small governmental issuers that issue 
bonds of $10 million or less each year.
  This exception was designed to preserve bank deductibility for small 
local governments, but does not help small non-profit institutions. The 
small issuer exception to be of little value in many States, like 
Vermont where statewide health care and higher education bond issuing 
authorities typically issue many millions of dollars of debt each year. 
The legislation I am introducing today will modify the small issuer 
exception by granting bond issuers the right to apply the small issuer 
exception at the level of the ultimate beneficiary of the funding. 
Consequently, a small college or health care facility borrowing less 
than $10 million in tax-exempt debt in any one year could elect tax-
exempt status for that debt, even if it is issued by a statewide 
authority. This would make the debt more attractive to local banks, and 
could result in significant savings for beneficiary institutions over 
the life of the bond.
  The Health and Higher Education Facilities Improvement Act of 2001 
focuses the benefit of the small issuer exemption on smaller non-
profits, without regard to whether the bond issuer is a government 
entity issuing more than $10 million in bonds per year. Small non-
profits are important community institutions; they stand to benefit 
from greater access to tax-exempt debt. Wall Street and large money 
center banks may have little interest in small amounts of debt from 
small institutions. The bank across the street from a local college or 
health care clinic, however, may have greater confidence and insight 
into the community value of the institution. This bill would allow 
those banks to carry tax-exempt debt at attractive rates and maintain 
commitments to the people and institutions in their local communities.

[[Page 10837]]

  I urge my colleagues to support this bill.
                                 ______
                                 
      By Mr. SHELBY:
  S. 1040. A bill to promote freedom, fairness, and economic 
opportunity for families by reducing the power and reach of the Federal 
establishment; to the Committee on Finance.
  Mr. SHELBY. Mr. President, Congress recently passed a tax bill that 
provides much-needed relief for all Americans. While I am pleased that 
the tax bill included marriage penalty relief, a reduction in marginal 
rates and a phase out of the estate tax, these changes unfortunately 
increase the tax code's complexity. Furthermore, despite the positive 
changes made this year, the current code still retains the alternative 
minimum tax, the taxation of Social Security benefits, and marginal 
rates that increase with income.
  I rise today to introduce legislation that takes tax reform to the 
next level and addresses the fundamental problems of the current code. 
My bill accomplishes this by repealing the current Internal Revenue 
Code and replacing it with a flat tax, where all taxpayers pay the same 
rate.
  As with current law, not all wage earners will pay a Federal income 
tax under a flat tax. In order to assist lower income Americans, I have 
included large standard deductions. For example, a family of four would 
need to make more than $35,200 before paying a single penny in taxes.
  Some argue that it's fair to tax wealthier people at higher rates. I 
believe that nothing can be further from the truth. Not only is this 
type of tax policy fundamentally unfair, it also prevents our economy 
from realizing its full potential.
  A flat tax does not mean that a school teacher will have the same tax 
liability as Bill Gates. The principles of math dictate that people who 
make more will still pay more in taxes with a single rate. The 
difference is that with a flat tax those who earn more will no longer 
be penalized by rising marginal rates.
  My bill also increases tax fairness by eliminating itemized 
deductions and credits. While these tax breaks benefit those who are 
lucky enough to claim them, they consequently hurt the taxpayers who 
are not. As a result, people with the same yearly salaries can pay very 
different Federal income taxes depending on whether they have children, 
they decide to own or rent a home, or decide to finance a family 
vacation through a credit card or a home equity loan.
  Over time the tax code has evolved from a way to collect Federal 
revenue into a way to encourage and reward behavior the government 
deems important. I believe that the American people are intelligent 
enough that they do not need the Federal Government dangling a carrot 
in front of them when they make life decisions. Furthermore, I believe 
that people should not be punished for deciding to make these decisions 
in ways that are contrary to what the government decides is right.
  Simplification is yet another reason our country needs the flat tax. 
The National Taxpayer Advocate cited complications in the tax code as 
the number one issue taxpayers faced in 2001. As the IRS publishes more 
and more regulations, and new tax laws are enacted, the complexity of 
the tax code will only grow.
  The complexity of the tax code forces many Americans to seek the 
advice of tax professionals at the cost of many millions of dollars. No 
tax code should be so puzzling that the average person has to spend his 
hard-earned money to hire a tax preparer or an accountant. Those who 
decide to brave the tax code and file their own returns do not fare 
better. These people face conflicting IRS advice and many hours of 
completing confusing tax forms. All of these needless hassles results 
in taxpayer frustration and apathy and less time spent on more 
productive endeavors.
  Under the flat tax, a taxpayers would be able to be quickly and 
accurately file their returns. There would be no itemized deductions or 
credits to calculate, no capital gains tabulations and no alternative 
minimum tax. With this new simplicity, taxpayers would be able to 
complete their personal income tax return in virtually no time at all 
compared to the 13 hours the IRS estimates it takes to complete a 1040 
form.
  I understand that my bill is a major change from the current tax 
code. Many people have become complacent with the status quo. Still 
others enjoy using the tax to implement social policy. I on the other 
hand believe though that a tax code should have one purpose and that is 
to collect revenue.
  I hope that my colleagues will begin to seriously look at 
alternatives to the current code. The legislation I have introduced 
today is an excellent opportunity to bring this debate to the floor of 
the Senate. The combination of freedom, simplicity and fairness make 
the flat tax the ultimate goal of true tax reform. I urge my colleagues 
to join me in support of meaningful and comprehensive tax reform.
                                 ______
                                 
      By Mr. FEINGOLD:
  S. 1041. A bill to establish a program for an information 
clearinghouse to increase public access to defibrillation in schools; 
to the Committee on Health, Education, Labor, and Pensions.
  Mr. FEINGOLD. Mr. President, I rise today with my colleague from 
Maine, Senator Collins, to introduce the Automatic Defibrillators in 
Adam's Memory Act, or the ADAM Act, which would help schools across 
America implement public access defibrillation programs.
  I am especially proud that the concept of this legislation came from 
my home state of Wisconsin, where a similar program has saved the lives 
of a number of students.
  Heart disease is not only a problem among adults. I recently learned 
the story of Adam Lemel, a 17-year-old high school student and a star 
basketball and tennis player in southeastern Wisconsin. Tragically, 
during a timeout while playing basketball at a neighboring Milwaukee 
high school, Adam suffered sudden cardiac arrest, and died before the 
paramedics arrived.
  The following November, a Milwaukee Technical High School football 
player died of Sudden Cardiac Arrest while playing basketball with his 
friends. And in April 2000, two more Milwaukee-area deaths were 
attributed to sudden cardiac arrest: a Marquette University senior and 
a visiting 12-year old from Illinois who was playing basketball.
  These stories are incredibly tragic. These young people had their 
whole lives before them, and could have been saved. In fact, we have 
seen a number of examples in Wisconsin where early CPR and access to 
defibrillation have saved lives.
  Seventy miles away from Milwaukee, a 14-year-old boy, collapsed while 
playing basketball. Within three minutes, the emergency team arrived 
and began CPR. Within five minutes of his collapse, the paramedics used 
an automated external defibrillator to jump start his heart. Not only 
has this young man survived, they have identified his father and 
brother to have the same heart condition. To prevent cardiac deaths, 
internal defibrillators were implanted in both men.
  I also recently met Heather Rahn who on March 19, was at a church 
concert in the gymnasium of Good Hope Christian Academy. She told her 
friends that her heart was racing, and she felt nervous. In the middle 
of running across the gym, she collapsed on the ground from cardiac 
arrest. She was down for about three and a half minutes when an 
ambulance arrived, bringing a defibrillator that would save her life. 
It took two shocks to bring her back.
  These tragic stories help to underscore three issues. First, although 
cardiac arrest is most common among adults, it can occur at any age, 
even in apparently healthy children and adolescents. Second, early 
intervention is essential, a combination of CPR and use of AEDs can 
save lives. Third, some individuals who are at risk for sudden cardiac 
arrest, can be identified to prevent cardiac arrest.
  After Adam Lemel tragically suffered his cardiac arrest two years 
ago, his friend David Ellis joined forces with Children's Hospital of 
Wisconsin to initiate Project ADAM to: bring CPR

[[Page 10838]]

training and public access defibrillation into schools, educate 
communities about preventing sudden cardiac deaths, and save lives.
  Today, Project ADAM has introduced AEDs into several Wisconsin 
schools, and has been a model for programs in Washington, Florida, 
Michigan and elsewhere.
  I had the chance to visit with Dave Ellis, Adam's parents, and the 
dedicated people at Children's Hospital of Wisconsin, especially Karen 
Bauer and Dr. Stu Berger. And let me tell you, there are no better 
advocates for saving the lives of cardiac arrest victims. I want to 
commend them for their service, and efforts to save the lives of sudden 
cardiac arrest victims.
  I strongly believe that the Federal Government should support local 
efforts to equip more people in our communities, including younger 
generations, with the necessary skills to deal with life-threatening 
emergencies like cardiac arrest. And there is no better way to support 
local efforts than by following the lead of a successful local effort 
such as Project ADAM.
  Over two hundred twenty thousand Americans die each year of sudden 
cardiac arrest, including between 5000 and 7000 children. About 50,000 
of these victims lives could be saved each year if more people 
implemented the ``Chain of Survival,'' which includes an immediate call 
to 911, early CPR and defibrillation, and early advanced life support.
  According to the Centers for Disease Control, the number of sudden 
cardiac deaths of people between the ages of 15 and 34 years old has 
increased over 10 percent in the past 10 years. The research also shows 
that sudden cardiac death has increased by 30 percent in young women.
  Without any training, kids would never know what to do in the face of 
such an emergency.
  As a matter of fact, many adults wouldn't know what to do either. 
That lack of knowledge is a break in the chain of survival, but that 
break can be repaired through the right training. A number of 
localities have pushed for increased CPR training and public access to 
defibrillation in schools.
  The ADAM Act will help strengthen the Chain by establishing a 
national Project ADAM resource center. The center would provide schools 
with information to help them implement public access defibrillation 
programs.
  The ADAM Center would also provide support to CPR and AED training 
programs, and help foster new community partnerships among public and 
private organizations to promote public access to defibrillation in 
schools.
  Finally, the ADAM Act would create a way to track cardiac arrest 
among children and to conduct further research into this serious health 
threat.
  This clearinghouse responds to the growing number of schools that 
have the desire to set up a public access defibrillation program, but 
often don't know where to start.
  If the ADAM Act becomes law, schools across the country will have a 
place to turn as they work to establish public access to defibrillation 
programs in more schools across America. The Project ADAM resource 
center will help schools give victims of cardiac arrest a fighting 
chance.
                                 ______
                                 
      By Mr. INOUYE:
  S. 1042. A bill to amend title 38, United States Code, to improve 
benefits for Filipino veterans of World War II, and for other purposes; 
to the Committee on Veterans' Affairs.
  Mr. INOUYE. Mr. President, I rise to introduce the Filipino Veterans' 
Benefits Improvement Act of 2001. This bill provides our country the 
opportunity to right a wrong committed decades ago, by providing 
Philippine-born veterans of World War II who served in the United 
States Armed Forces their hard-earned, due compensation.
  Our Nation is now at peace, and our prosperity has reached levels 
never before seen by any Nation in history. We are on the top of the 
world in terms of economic power and military might, and much of this 
unprecedented success is due to the tremendous sacrifices made by our 
fighting forces during World War II. We trampled tyranny in Europe and 
in the Pacific, and when we raised our flag proudly over hostile lands, 
we were greeted enthusiastically by the millions we liberated from the 
grasp of terrible aggression.
  I take this opportunity today to remind everyone of an injustice that 
persists as a blemish on one of history's greatest success stories.
  The Philippines became a United States possession in 1898, when it 
was ceded from Spain following the Spanish-American War. In 1934, the 
Congress enacted the Philippine Independence Act, Public Law 73-127, 
which provided a 10-year time frame for the independence of the 
Philippines. Between 1934 and final independence in 1946, the United 
States retained certain powers over the Philippines, including the 
right to call all military forces organized by the newly-formed 
Commonwealth government into the service of the United States Armed 
Forces.
  On July 26, 1941, President Roosevelt issued an Executive Order 
calling members of the Philippine Commonwealth Army into the service of 
the United States Armed Forces of the Far East. Under this order, 
Filipinos were entitled to full veterans' benefits. More than 100,000 
Filipinos volunteered for the Philippine Commonwealth Army and fought 
alongside the United States Armed Forces.
  The United States Armed Forces of the Far East fought to reclaim 
control of the entire Western Pacific. Filipinos, under the command of 
General Douglas MacArthur, fought in the front lines of the Battle of 
Corregidor and at Bataan. They served in Okinawa, on occupied mainland 
Japan, and in Guam. They were part of what became known as the Bataan 
Death March, and were held and tortured as prisoners of war. Through 
these hardships, the men of the Philippine Commonwealth Army remained 
loyal to the United States during the Japanese occupation of the 
Philippines, and the valiant guerilla war they waged against the 
Japanese helped to delay the Japanese advance across the Pacific.
  Despite all of their sacrifices, on February 18, 1946, Congress 
betrayed these veterans by enacting the Rescission Act of 1946 and 
declaring the service performed by the Philippine Commonwealth Army 
veterans as not ``active service,'' thus denying many benefits to which 
these veterans were entitled.
  Then, shortly after Japan's surrender, Congress enacted the Armed 
Forces Voluntary Recruitment Act of 1945 for the purpose of sending 
American troops to occupy enemy lands, and to oversee military 
installations at various overseas locations. A provision included in 
the Recruitment Act called for the enlistment of Philippine citizens to 
constitute a new body of Philippine Scouts. The New Scouts were 
authorized to receive pay and allowances for services performed 
throughout the Western Pacific. Although hostilities had ceased, 
wartime service of the New Philippine Scouts continued as a matter of 
law until the end of 1946.
  On May 27, 1946, the Congress enacted the Second Supplemental Surplus 
Appropriation Rescission Act, which included a provision to limit 
veterans' benefits to Filipinos. This provision duplicated the language 
that had eliminated veterans' benefits under the First Rescission Act, 
and placed similar restrictions on veterans of the New Philippine 
Scouts. Thus, the Filipino veterans that fought in the service of the 
United States during World War II have been precluded from receiving 
most veterans' benefits that had been available to them before 1946, 
and that are available to all other veterans of our armed forces 
regardless of race, national origin, or citizenship status.
  The Congress tried to rectify the wrong committed against the 
Filipino veterans of World War II by amending the Nationality Act of 
1940 to grant the veterans the privilege of becoming United States 
citizens for having served in the United States Armed Forces of the Far 
East.
  The law expired at the end of 1946, but not before the United States 
had withdrawn its sole naturalization examiner from the Philippines for 
a nine-month period. This effectively denied Filipino veterans the 
opportunity to become citizens during this nine-month window. Forty-
five years later, under

[[Page 10839]]

the Immigration Act of 1990, certain Filipino veterans who served 
during World War II became eligible for United States citizenship. 
Between November, 1990, and February, 1995, approximately 24,000 
veterans took advantage of this opportunity and became United States 
citizens.
  For many years, Filipino veterans of World War II, who are now in 
their twilight years, have sought to correct the injustice caused by 
the Rescission Acts by seeking equal treatment of their valiant 
military service in our Armed Forces. They stood up to the same 
aggression that American-born soldiers did, and many Filipinos 
sacrificed their lives in the war for democracy and liberty.
  Heroes should never be forgotten or ignored, so let us not turn our 
backs on those who sacrificed so much. Many of the Filipinos who have 
fought so hard for us have been honored with American citizenship, but 
let us now work to repay all of these brave men for their sacrifices by 
providing them the full veterans' benefits they have earned.
                                 ______
                                 
      By Mr. REID:
  S. 1043. A bill to extend the deadline for commencement of 
construction of a hydroelectric project in the State of Nevada; to the 
Committee on Energy and Natural Resources.
  Mr. REID. Mr. President, today I am introducing a simple bill that 
would extend the deadline under the Federal Power Act for the 
commencement of construction of the Blue Diamond hydroelectric project 
in southern Nevada. The bill will allow the Federal Government to 
extend the project permit for as many as three consecutive two-year 
periods. At this time, serious concerns remain about the environmental 
impacts of the project and where power generated at the facility would 
be sold. These important questions merit additional dialogue and 
introduction of this bill provides for further examination of this 
project.
                                 ______
                                 
      By Mr. SARBANES (for himself, Mr. Warner, Mr. Allen, and Ms. 
        Mikulski):
  S. 1044. A bill to amend the Federal Water Pollution Control Act to 
provide assistance for nutrient removal technologies to States in the 
Chesapeake Bay watershed; to the Committee on Environment and Public 
Works.
                                 ______
                                 
      By Mr. SARBANES (for himself, Ms. Mikulski, Mr. Warner, and Mr. 
        Allen):
  S. 1045. A bill to amend the National Oceanic and Atmospheric 
Administration Authorization Act of 1992 to revise and enhance 
authorities, and to authorize appropriations, for the Chesapeake Bay 
Office, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.
  Mr. SARBANES. Mr. President, today I am introducing two measures to 
expand restoration and protection efforts in the Chesapeake Bay 
watershed. Joining me in sponsoring these measures are my colleagues 
Senators Warner, Allen, and Mikulski.
  Nearly two decades ago, the Bay area States and the Federal 
Government signed an historic agreement to work together to restore the 
Chesapeake Bay, our Nation's largest estuary and one of the most 
productive ecosystems in the world. In 1987, the Governors of Maryland, 
Virginia, Pennsylvania, the Chesapeake Bay Commission, the Mayor of the 
District of Columbia and the Administrator of the EPA, on behalf of the 
Federal Government, reaffirmed their commitment to that compact and 
agreed to 29 specific goals and action plans including the 
unprecedented goal of a 40 percent reduction of nitrogen and 
phosphorous loads to the main stem of the Bay by the year 2000. Last 
year, the State and the Federal Government conducted an extensive 
evaluation of cleanup progress since the 1980s and determined that, 
despite important advances, efforts must be redoubled to restore the 
integrity of the Chesapeake Bay ecosystem. A new Chesapeake 2000 
agreement was signed to serve as a blueprint for the restoration effort 
over the next decade.
  To meet the goals established in the new agreement, it is estimated 
that the local, State and Federal Governments must invest $8.5 billion 
over the course of the next ten years. Thousands of acres of watershed 
property must be preserved, buffer zones to protect rivers and streams 
need to be created, and pollution from all sources will have to be 
further reduced. While $8.5 billion seems like an enormous sum, we 
should remember that the health of Chesapeake is vital not only to the 
more than 15 million people who live in the watershed, but to the 
nation. The Chesapeake Bay watershed is one of our Nation's and the 
world's greatest natural resources covering 64,000 square miles within 
six States. It is a world-class fishery that still produces a 
significant portion of the fin fish and shellfish catch in the United 
States. It provides vital habitat for living resources, including more 
than 3600 species of plants, fish and animals. It is a major resting 
area for migratory waterfowls and birds along the Atlantic including 
many endangered and threatened species. It is also a one-of-a-kind 
recreational asset enjoyed by millions of people, a major commercial 
waterway and shipping center for much of the eastern United States, and 
provides jobs for thousands of people. In short, the Chesapeake Bay is 
a magnificent, multifaceted resource worthy of the highest levels of 
protection and restoration.
  Over the years, human activities have profoundly impacted the Bay. 
Untreated sewage, deforestation, toxic chemicals, runoff and increased 
development have degraded the Bay's water quality and contributed to 
the decline of such key species as oysters and blue crabs and the 
underwater grasses they favor for habitat. We have lost not only 
thousands of jobs in the fishing industry but much of the wilderness 
that defined the watershed. By the year 2020, an additional three 
million people are expected to settle in the watershed and this growth 
could eclipse the nutrient reduction and habitat protection gains of 
the past. Not meeting the investment needs of the next 10 years risks 
reversing all that has been achieved over the past two decades in 
cleaning up the Bay.
  The first measure we are introducing would establish a grant program 
in the Environmental Protection Agency to support the installation of 
nutrient reduction technologies at major wastewater treatment 
facilities in the Chesapeake Bay watershed. Despite important water 
quality improvements over the past decade, nutrient over-enrichment 
remains the most serious pollution problem facing the Bay. The 
overabundance of the nutrients nitrogen and phosphorous continues to 
rob the Bay of life sustaining oxygen. Recent modeling of EPA's Bay 
Program has found that total nutrient discharges must be reduced by 
more than 35 percent from current levels to restore the Chesapeake Bay 
and its major tributaries to health. To do so, nitrogen discharges from 
all sources must be reduced drastically below current levels. Annual 
nitrogen discharges into the Bay will need to be cut by at least 110 
million pounds from the current 300 million pounds to less than 190 
million pounds. Municipal wastewater treatment plants, in particular, 
will have to reduce nitrogen discharges by nearly 75 percent.
  There are 288 major wastewater treatment plants in the Chesapeake Bay 
watershed: Pennsylvania, 124, Maryland, 62, Virginia, 70, New York, 18, 
Delaware, 3, Washington, D.C., 2, and West Virginia, 9. These plants 
contribute about 60 million pounds of nitrogen per year, one fifth, of 
the total loads of nitrogen to the Bay. Upgrading these plants with 
nutrient removal technologies to achieve nitrogen reductions of 3 mg/
liter would remove 46 million pounds of nitrogen in the Bay each year 
or 40 percent of the total nitrogen reductions needed. Nutrient removal 
technologies have other benefits as well, they provide significant 
savings in energy usage, 20 to 30 percent, in chemical usage, more than 
50 percent, and in the amount of sludge produced, five to 15 percent. 
They are one of the most cost-effective methods of reducing nutrients 
discharged to the Bay.
  My legislation would provide grants for 55 percent of the capital 
cost of upgrading all 288 plants with nutrient removal technologies 
capable of achieving nitrogen reductions of 3 mg/liter.

[[Page 10840]]

The total cost of these upgrades is estimated at $1.2 billion, with a 
federal share of $660 million. Any publically owned wastewater 
treatment plant which has a permitted design capacity to threat an 
annual average of 0.5 million gallons per day within the Chesapeake Bay 
watershed portion of New York, Pennsylvania, Maryland, West Virginia, 
Delaware, Virginia and the District of Columbia would be eligible to 
receive these grants. As a signatory to the Chesapeake Bay Agreement, 
the EPA has an important responsibility to assist the states with 
financing these water infrastructure needs.
  The second measure would reauthorize the National Oceanic and 
Atmospheric, NOAA, Chesapeake Bay Office. I first introduced a similar 
measure in June, 2000, but unfortunately it was not acted upon prior to 
the adjournment of the 106th Congress.
  The NOAA Chesapeake Bay office, NCBO, was first established in 1992 
pursuant to Public Law 102-567. It serves as the focal point for all of 
NOAA's activities within the Chesapeake Bay watershed and is a vital 
part of the effort to achieve the long-term goal of the Bay Program, 
restoring the Bay's living resources to healthy and balanced levels. 
During the past nine years, the NCBO has made great strides in 
realizing the objectives of the NOAA Authorization Act of 1992 and the 
overall Bay Program living resource goals. Working with other Bay 
Program partners, important progress has been made in surveying and 
assessing fishery resources in the Bay, developing fishery management 
plans for selected species, undertaking habitat restoration projects, 
removing barriers to fish passage, and undertaking important remote 
sensing and data analysis activities.
  NOAA's responsibilities to the Bay restoration effort are far from 
complete, however. Some populations of major species of fish and 
shellfish in Chesapeake Bay such as shad and oysters, remain severely 
depressed, while others, such as blue crab are at risk. Bay-wide, some 
16 of 25 ecologically important species are in decline or severe 
decline, due to disease, habitat loss, over-fishing and other factors. 
The underwater grasses that once sustained these fisheries are only at 
a fraction of their historic levels. Research and monitoring must be 
continued and enhanced to track living resource trends, evaluate the 
responses of the estuary's biota to changes in their environment and 
establish clear management goals and progress indicators for restoring 
the productivity, diversity and abundance of these species. Chesapeake 
2000, the new Bay Agreement, has identified several living resource 
goals which will require strong NOAA involvement to achieve.
  The legislation which we are introducing would provide NOAA with 
additional resources and authority necessary to ensure its continued 
full participation in the Bay's restoration and in meeting with goals 
and objectives of Chesapeake 2000. First, the legislation authorizes 
and directs NOAA to undertake a special five-year study, in cooperation 
with the scientific community of the Chesapeake Bay and appropriate 
other federal agencies, to develop the knowledge base required for 
understanding multi-species interactions and developing multi-species 
management plans. To date, fisheries management in Chesapeake Bay and 
other waters, has been largely based upon single-species plans that 
often ignore the critical relationships between water and habitat 
quality, ecosystem health and the food webs that support the Bay's 
living resources. There is a growing consensus between scientific 
leaders and managers alike that we must move beyond the one-species-at-
a-time approach toward a wider, multi-species and ecosystem 
perspective. Chesapeake 2000 calls for developing multi-species 
management plans for targeted species by the year 2005 and implementing 
the plans by 2007. In order to achieve these goals, NOAA must take a 
leadership role and support a sustained research and monitoring 
program.
  Second, the legislation authorizes NOAA to carry out a small-scale 
fishery and habitat restoration grant and technical assistance program 
to help citizens organizations and local governments in the Chesapeake 
Bay watershed undertake habitat, fish and shellfish restoration 
projects. Experience has shown that, with the proper tools and 
training, citizens' groups and local communities can play a tremendous 
role in fisheries and habitat protection and restoration efforts. The 
Chesapeake Bay Foundation's oyster gardening program, for example, has 
proven to be highly successful in training citizens to grow oysters at 
their docks to help restore oysters' populations in the Bay. The new 
Bay Agreement has identified a critical need to not only to expand and 
promote community-based programs but to restore historic levels of 
oyster production, restore living resource habitat and submerged 
aquatic vegetation. The NOAA small-grants program, which this bill 
would authorize, would complement EPA's Chesapeake Bay small watershed 
program, and make ``seed'' grants available on a competitive, cost-
sharing basis to local governments and nonprofit organizations to 
implement hands-on projects such as improvement of fish passageways, 
creating artificial or natural reefs, restoring wetlands and seagrass 
beds, and producing oysters for restoration projects.
  Third, the legislation would establish an internet-based Coastal 
Predictions Center for the Chesapeake Bay. Resource managers and 
scientists alike agree that we must make better use of the various 
modeling and monitoring systems and new technologies to improve 
prediction capabilities and response to physical and chemical events 
within the Bay and tributary rivers. There are substantial amounts of 
data collected and compiled by Federal, state and local government 
agencies and academic institutions including information on weather, 
tides, currents, circulation, climate, land use, coastal environmental 
quality, aquatic living resources and habitat conditions. 
Unfortunately, little of this data is coordinated and organized in a 
manner that is useful to the wide range of potential users. The Coastal 
Predictions Center would serve as a knowledge bank for assembling 
monitoring and modeling data from relevant government agencies and 
academic institutions, interpreting that data, and organizing it into 
products that are useful to resource managers, scientists and the 
public.
  Finally, the legislation would direct NOAA to implement an education 
program targeted toward the 3 million pupils in kindergarten through 
12th grade in the Chesapeake Bay watershed. One of the key goals of the 
Chesapeake 2000 Agreement is to expand education and public awareness 
of the Bay and local watersheds. Among other activities, the Agreement 
calls for providing meaningful Bay or stream outdoor experiences for 
every school student in the watershed before graduation from high 
school, incorporating the Chesapeake Bay watershed into school 
curricula, and providing students and teachers alike with information 
to increase awareness of Bay living resource and other issues. Our 
legislation would enable NOAA to enter into partnerships with non-
profit environmental organizations in the region experienced in 
conducting environmental education programs, the Chesapeake Bay 
Foundation and the Living Classrooms Foundation, for example, and to 
expand opportunities for students and teachers to participate in Bay 
and other field and classroom learning experiences which support 
Chesapeake Bay restoration and protection efforts.
  The legislation increases the authorization for the NOAA Bay Program 
from the current level of $2.5 million to $8.5 million per year to 
enhance current activities and to carry out these new initiatives. For 
more than a decade, funding for NOAA's Bay Program has remained static 
at an annual average of $1.9 million. If we are to achieve the 
ultimate, long-term goal of the Bay Program, protecting, restoring and 
maintaining the health of the living resources of the Bay, additional 
financial resources must be provided.
  These two measures would provide an important boost to our efforts to 
save the Chesapeake Bay. They are strongly

[[Page 10841]]

supported by the Chesapeake Bay Commission, the Chesapeake Bay 
Foundation, and other organizations in the watershed. I ask unanimous 
consent that the full text of the measures and supporting letters be 
printed in the Record. I urge my colleagues to join with us in 
supporting the two measures and continue the momentum contributing to 
the improvement and enhancement of our Nation's most valuable and 
treasured natural resource.
  There being no objection, the additional material was ordered to be 
printed in the Record, as follows:

                                S. 1044

       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 ``Chesapeake Bay Watershed 
     Nutrient Removal Assistance Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) nutrient pollution from point sources and nonpoint 
     sources continues to be the most significant water quality 
     problem in the Chesapeake Bay watershed;
       (2) a key commitment of the Chesapeake 2000 agreement, an 
     interstate agreement among the Administrator, the Chesapeake 
     Bay Commission, the District of Columbia, and the States of 
     Maryland, Virginia, and Pennsylvania, is to achieve the goal 
     of correcting the nutrient-related problems in the Chesapeake 
     Bay by 2010;
       (3) by correcting those problems, the Chesapeake Bay and 
     its tidal tributaries may be removed from the list of 
     impaired bodies of water designated by the Administrator of 
     the Environmental Protection Agency under section 303(d) of 
     the Federal Water Pollution Control Act (33 U.S.C. 1313(d));
       (4) nearly 300 major sewage treatment plants located in the 
     Chesapeake Bay watershed annually discharge approximately 
     60,000,000 pounds of nitrogen, or the equivalent of 20 
     percent of the total nitrogen load, into the Chesapeake Bay; 
     and
       (5) nutrient removal technology is 1 of the most reliable, 
     cost-effective, and direct methods for reducing the flow of 
     nitrogen from point sources into the Chesapeake Bay.
       (b) Purposes.--The purposes of this Act are--
       (1) to authorize the Administrator of the Environmental 
     Protection Agency to provide financial assistance to States 
     and municipalities for use in upgrading publicly-owned 
     wastewater treatment plants in the Chesapeake Bay watershed 
     with nutrient removal technologies; and
       (2) to further the goal of restoring the water quality of 
     the Chesapeake Bay to conditions that are protective of human 
     health and aquatic living resources.

     SEC. 3. SEWAGE CONTROL TECHNOLOGY GRANT PROGRAM.

       The Federal Water Pollution Control Act (33 U.S.C. 1251 et 
     seq.) is amended by adding at the end the following:

                       ``TITLE VII--MISCELLANEOUS

     ``SEC. 701. SEWAGE CONTROL TECHNOLOGY GRANT PROGRAM.

       ``(a) Definition of Eligible Facility.--In this section, 
     the term `eligible facility' means a municipal wastewater 
     treatment plant that--
       ``(1) as of the date of enactment of this title, has a 
     permitted design capacity to treat an annual average of at 
     least 500,000 gallons of wastewater per day; and
       ``(2) is located within the Chesapeake Bay watershed in any 
     of the States of Delaware, Maryland, New York, Pennsylvania, 
     Virginia, or West Virginia or in the District of Columbia.
       ``(b) Grant Program.--
       ``(1) Establishment.--Not later than 1 year after the date 
     of enactment of this title, the Administrator shall establish 
     a program within the Environmental Protection Agency to 
     provide grants to States and municipalities to upgrade 
     eligible facilities with nutrient removal technologies.
       ``(2) Priority.--In providing a grant under paragraph (1), 
     the Administrator shall--
       ``(A) consult with the Chesapeake Bay Program Office;
       ``(B) give priority to eligible facilities at which 
     nutrient removal upgrades would--
       ``(i) produce the greatest nutrient load reductions at 
     points of discharge; or
       ``(ii) result in the greatest environmental benefits to 
     local bodies of water surrounding, and the main stem of, the 
     Chesapeake Bay; and
       ``(iii) take into consideration the geographic distribution 
     of the grants.
       ``(3) Application.--
       ``(A) In general.--On receipt of an application from a 
     State or municipality for a grant under this section, if the 
     Administrator approves the request, the Administrator shall 
     transfer to the State or municipality the amount of 
     assistance requested.
       ``(B) Form.--An application submitted by a State or 
     municipality under subparagraph (A) shall be in such form and 
     shall include such information as the Administrator may 
     prescribe.
       ``(4) Use of funds.--A State or municipality that receives 
     a grant under this section shall use the grant to upgrade 
     eligible facilities with nutrient removal technologies that 
     are designed to reduce total nitrogen in discharged 
     wastewater to an average annual concentration of 3 milligrams 
     per liter.
       ``(5) Cost sharing.--
       ``(A) Federal share.--The Federal share of the cost of 
     upgrading any eligible facility as described in paragraph (1) 
     using funds provided under this section shall not exceed 55 
     percent.
       ``(B) Non-federal share.--The non-Federal share of the 
     costs of upgrading any eligible facility as described in 
     paragraph (1) using funds provided under this section may be 
     provided in the form of funds made available to a State or 
     municipality under--
       ``(i) any provision of this Act other than this section 
     (including funds made available from a State revolving fund 
     established under title VI); or
       ``(ii) any other Federal or State law.
       ``(c) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $132,000,000 for each of fiscal 
     years 2003 through 2007, to remain available until expended.
       ``(2) Administrative costs.--The Administrator may use not 
     to exceed 4 percent of any amount made available under 
     paragraph (1) to pay administrative costs incurred in 
     carrying out this section.''.
                                  ____


                                S. 1045

       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 ``NOAA Chesapeake Bay Office 
     Reauthorization Act of 2001''.

     SEC. 2. CHESAPEAKE BAY OFFICE.

       (a) Establishment.--Section 307(a) of the National Oceanic 
     and Atmospheric Administration Authorization Act of 1992 (15 
     U.S.C. 1511d(a)) is amended--
       (1) in paragraph (1), by striking ``Estuarine Resources''; 
     and
       (2) by amending paragraph (2) to read as follows:
       ``(2) The Secretary of Commerce shall appoint as Director 
     of the Office an individual who has knowledge of and 
     experience in research or resource management efforts in the 
     Chesapeake Bay.''.
       (b) Functions.--
       (1) Section 307(b)(3) of the National Oceanic and 
     Atmospheric Administration Authorization Act of 1992 (15 
     U.S.C. 1511d(b)(3)) is amended to read as follows:
       ``(3) facilitate coordination of the programs and 
     activities of the various organizations and facilities within 
     the National Oceanic and Atmospheric Administration, the 
     Chesapeake Bay units of the National Estuarine Research 
     Reserve System, the Chesapeake Bay Regional Sea Grant 
     Programs, and the Cooperative Oxford Lab, including--
       ``(A) programs and activities in--
       ``(i) coastal and estuarine research, monitoring, and 
     assessment;
       ``(ii) fisheries research and stock assessments;
       ``(iii) data management;
       ``(iv) remote sensing;
       ``(v) coastal management;
       ``(vi) habitat conservation and restoration; and
       ``(vii) atmospheric deposition; and
       ``(B) programs and activities of the Cooperative Oxford 
     Laboratory of the National Ocean Service with respect to--
       ``(i) nonindigenous species;
       ``(ii) marine species pathology;
       ``(iii) human pathogens in marine environments; and
       ``(iv) ecosystems health;''.
       (2) Section 307(b)(7) of the National Oceanic and 
     Atmospheric Administration Authorization Act of 1992 (15 
     U.S.C. 1511d(b)(7)) is amended by striking the period at the 
     end and inserting the following: ``, which report shall 
     include an action plan consisting of--
       ``(A) a list of recommended research, monitoring, and data 
     collection activities necessary to continue implementation of 
     the strategy described in paragraph (2); and
       ``(B) proposals for--
       ``(i) continuing and new National Oceanic and Atmospheric 
     Administration activities in the Chesapeake Bay; and
       ``(ii) the integration of those activities with the 
     activities of the partners in the Chesapeake Bay Program to 
     meet the commitments of the Chesapeake 2000 agreement and 
     subsequent agreements.''.
       (c) Conforming Amendment.--Section 307 of the National 
     Oceanic and Atmospheric Administration Authorization Act of 
     1992 (15 U.S.C. 1511d) is amended by striking the section 
     heading and inserting the following:

     ``SEC. 307. CHESAPEAKE BAY OFFICE.''.

     SEC. 3. MULTIPLE SPECIES MANAGEMENT STRATEGY; CHESAPEAKE BAY 
                   FISHERY AND HABITAT RESTORATION SMALL GRANTS 
                   PROGRAM; COASTAL PREDICTION CENTER.

       The National Oceanic and Atmospheric Administration 
     Authorization Act of 1992 is amended by inserting after 
     section 307 (15 U.S.C. 1511d) the following:

     ``SEC. 307A. MULTIPLE SPECIES MANAGEMENT STRATEGY.

       ``(a) In General.--Not later than 180 days after the date 
     of enactment of this section,

[[Page 10842]]

     the Director of the Chesapeake Bay Office of the National 
     Oceanic and Atmospheric Administration shall commence a 5-
     year study, in cooperation with the scientific community of 
     the Chesapeake Bay and appropriate Federal agencies--
       ``(1) to determine and expand the understanding of the role 
     and response of living resources in the Chesapeake Bay 
     ecosystem; and
       ``(2) to develop a multiple species management strategy for 
     the Chesapeake Bay.
       ``(b) Required Elements of Study.--In order to improve the 
     understanding necessary for the development of the strategy 
     under subsection (a), the study shall--
       ``(1) determine the current status and trends of fish and 
     shellfish that live in the Chesapeake Bay estuary and are 
     selected for study;
       ``(2) evaluate and assess interactions among the fish and 
     shellfish described in paragraph (1) and other living 
     resources, with particular attention to the impact of changes 
     within and among trophic levels; and
       ``(3) recommend management actions to optimize the return 
     of a healthy and balanced ecosystem for the Chesapeake Bay.

     ``SEC. 307B. CHESAPEAKE BAY FISHERY AND HABITAT RESTORATION 
                   SMALL GRANTS PROGRAM.

       ``(a) In General.--The Director of the Chesapeake Bay 
     Office of the National Oceanic and Atmospheric Administration 
     (referred to in this section as the `Director'), in 
     cooperation with the Chesapeake Executive Council (as defined 
     in section 307(e)), shall carry out a community-based fishery 
     and habitat restoration small grants and technical assistance 
     program in the Chesapeake Bay watershed.
       ``(b) Projects.--
       ``(1) Support.--The Director shall make grants under the 
     program under subsection (a) to pay the Federal share of the 
     cost of projects that are carried out by eligible entities 
     described in subsection (c) for the restoration of fisheries 
     and habitats in the Chesapeake Bay.
       ``(2) Federal share.--The Federal share of the cost of a 
     project under paragraph (1) shall not exceed 75 percent of 
     the total cost of that project.
       ``(3) Types of projects.--Projects for which grants may be 
     made under the program include--
       ``(A) the improvement of fish passageways;
       ``(B) the creation of natural or artificial reefs or 
     substrata for habitats;
       ``(C) the restoration of wetland or sea grass;
       ``(D) the production of oysters for restoration projects; 
     and
       ``(E) the identification and characterization of 
     contaminated habitats, and the development of restoration 
     plans for those habitats in the Chesapeake Bay watershed.
       ``(c) Eligible Entities.--The following entities are 
     eligible to receive grants under the program under this 
     section:
       ``(1) The government of a political subdivision of a State 
     in the Chesapeake Bay watershed and the Government of the 
     District of Columbia.
       ``(2) An organization in the Chesapeake Bay watershed (such 
     as an educational institution or a community organization) 
     that is described in section 501(c) of the Internal Revenue 
     Code of 1986 and is exempt from taxation under section 501(a) 
     of the Code.
       ``(d) Additional Requirements.--The Director may prescribe 
     any additional requirements, including procedures, that the 
     Director considers necessary to carry out the program under 
     this section.

     ``SEC. 307C. COASTAL PREDICTION CENTER.

       ``(a) Establishment.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this section, the Director of the Chesapeake Bay 
     Office of the National Oceanic and Atmospheric Administration 
     (referred to in this section as the `Director'), in 
     collaboration with regional scientific institutions, shall 
     establish a coastal prediction center for the Chesapeake Bay 
     (referred to in this section as the `center').
       ``(2) Purpose of center.--The center shall serve as a 
     knowledge bank for--
       ``(A) assembling, integrating, and modeling coastal 
     information and data from appropriate government agencies and 
     scientific institutions;
       ``(B) interpreting the data; and
       ``(C) organizing the data into predictive products that are 
     useful to policy makers, resource managers, scientists, and 
     the public.
       ``(b) Activities.--
       ``(1) Information and prediction system.--The center shall 
     develop an Internet-based information system for integrating, 
     interpreting, and disseminating coastal information and 
     predictions concerning--
       ``(A) climate;
       ``(B) land use;
       ``(C) coastal pollution;
       ``(D) coastal environmental quality;
       ``(E) ecosystem health and performance;
       ``(F) aquatic living resources and habitat conditions; and
       ``(G) weather, tides, currents, and circulation that affect 
     the distribution of sediments, nutrients, and organisms, 
     coastline erosion, and related physical and chemical events 
     within the Chesapeake Bay and the tributaries of the 
     Chesapeake Bay.
       ``(2) Agreements to provide data, information, and 
     support.--The Director may enter into agreements with other 
     entities of the National Oceanic and Atmospheric 
     Administration, other appropriate Federal, State, and local 
     government agencies, and academic institutions, to provide 
     and interpret data and information, and provide appropriate 
     support, relating to the activities of the center.
       ``(3) Agreements relating to information products.--The 
     Director may enter into grants, contracts, and interagency 
     agreements with eligible entities for the collection, 
     processing, analysis, interpretation, and electronic 
     publication of information products for the center.''.

     SEC. 4. ENVIRONMENTAL EDUCATION.

       The National Oceanic and Atmospheric Administration 
     Authorization Act of 1992 is amended by inserting after 
     section 307C (as added by section 3) the following:

     ``SEC. 307D. ENVIRONMENTAL EDUCATION PILOT PROGRAM.

       ``(a) Pilot Program Established.--Not later than 180 days 
     after the date of enactment of this section, the Director, in 
     cooperation with the Chesapeake Executive Council, shall 
     establish the Chesapeake Bay Environmental Education Program 
     to improve the understanding of elementary and secondary 
     school students and teachers of the living resources of the 
     ecosystem of the Chesapeake Bay, and to meet the educational 
     goals of the Chesapeake 2000 agreement.
       ``(b) Grant Program.--
       ``(1) In general.--The Director, through the pilot program 
     established under subsection (a), shall make grants to not-
     for-profit institutions (or consortia of such institutions) 
     to pay the federal share of the cost of programs described in 
     paragraph (3).
       ``(2) Criteria.--The Director shall award grants under this 
     subsection based on the experience of the applicant in 
     providing environmental education and training programs 
     regarding the Chesapeake Bay watershed to a range of 
     participants and in a range of settings.
       ``(3) Functions and Activities.--Grants awarded under this 
     subsection may be used to support education and training 
     programs that--
       ``(A) provide classroom education, including the use of 
     distance learning technologies, on the issues, science, and 
     problems of the living resources of the Chesapeake Bay 
     watershed;
       ``(B) provide meaningful outdoor experience on the 
     Chesapeake Bay, or on a stream or in a local watershed of the 
     Chesapeake Bay, in the design and implementation of field 
     studies, monitoring and assessments, or restoration 
     techniques for living resources;
       ``(C) provide professional development for teachers related 
     to the science of the Chesapeake Bay watershed and the 
     dissemination of pertinent education materials oriented to 
     varying grade levels;
       ``(D) demonstrate or disseminate environmental educational 
     tools and materials related to the Chesapeake Bay watershed;
       ``(E) demonstrate field methods, practices and techniques 
     including assessment of environmental and ecological 
     conditions and analysis of environmental problems; and
       ``(F) develop or disseminate projects designed to--
       ``(i) enhance understanding and assessment of a specific 
     environmental problem in the Chesapeake Bay watershed or of a 
     goal of the Chesapeake Bay Program; or
       ``(ii) protect or restore living resources of the 
     Chesapeake Bay watershed.
       ``(4) Federal share.--The Federal share of the cost of a 
     program under paragraph (1) shall not exceed 75 percent of 
     the total cost of that program.
       ``(5) Program review.--Not later than 1 year after the date 
     on which the Director awards the first grant under this 
     subsection, and annually thereafter, the Director shall 
     conduct a detailed review and evaluation of the programs 
     supported by grants awarded under this subsection to 
     determine whether the quality of the content, delivery, and 
     outcome of the program warrants continued support.
       ``(c) Procedures.--The Director shall establish procedures, 
     including safety protocols, as necessary for carrying out the 
     purposes of this section.
       ``(d) Termination and Report.--
       ``(1) Termination.--The program established under this 
     section shall be effective during the 4-year period beginning 
     on October 1, 2001.
       ``(2) Report.--Not later than December 31, 2005, the 
     Director, in consultation with the Chesapeake Executive 
     Council, shall submit a report through the Administrator of 
     National Oceanic and Atmospheric Administration to Congress 
     regarding this program and, on the appropriate role of 
     Federal, State and local governments in continuing the 
     program established under this section.
       ``(e) Definition.--In this section, the term `Chesapeake 
     2000 agreement' means the agreement between the United 
     States, the States of Maryland, Pennsylvania, and Virginia, 
     and the District of Columbia entered into on June 28, 
     2000.''.

[[Page 10843]]



     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 307(d) of the National Oceanic and 
     Atmospheric Administration Authorization Act of 1992 (15 
     U.S.C. 1511d(d)) is amended to read as follows:
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to the Department of Commerce for the Chesapeake Bay Office 
     $8,000,000 for each of fiscal years 2002 through 2005.
       ``(2) Amounts for programs.--Of the amount authorized to be 
     appropriated for each fiscal year under paragraph (1)--
       ``(A) not more than $2,500,000 shall be available to 
     operate the Chesapeake Bay Office and to carry out section 
     307A;
       ``(B) not more than $1,000,000 shall be available to carry 
     out section 307B; and
       ``(C) not more than $500,000 shall be available to carry 
     out section 307C.
       ``(D) not more than $2,000,000 shall be available to carry 
     out section 307D.
       (c) Conforming Amendment.--Section 2 of the National 
     Oceanic and Atmospheric Administration Marine Fisheries 
     Program Authorization Act (97 Stat. 1409) is amended by 
     striking subsection (e), as added by section 307(d) of the 
     National Oceanic and Atmospheric Administration Authorization 
     Act of 1992 (106 Stat. 4285).

     SEC. 6. TECHNICAL CORRECTION.

       Section 307(b) of the National Oceanic and Atmospheric 
     Administration Authorization Act of 1992 (15 U.S.C. 1511d(b)) 
     is amended by striking ``Chesapeake Bay Executive Council'' 
     and inserting ``Chesapeake Executive Council''.
                                  ____



                                    Chesapeake Bay Foundation,

                                      Annapolis, MD, May 15, 2001.
     Hon. Paul Sarbanes,
     U.S. Senate, Hart Office Building, Washington, DC.
       Dear Senator Sarbanes: Last year, a few Members claimed 
     that the Florida Everglades was a national treasure. I know 
     you agree with me that the Chesapeake Bay, which drains six 
     states and the District, has more claim to being a national 
     treasure than the Florida Everglades.
       I am writing to thank you for your steadfast support for 
     the Bay. I am also writing to urge you to pass new 
     legislation that will fund wastewater treatment plant 
     upgrades to reduce nutrient pollution in the Bay. Nutrient 
     pollution is the Bay's number one problem. The Bay and its 
     tributaries receive about twice as much nitrogen and 
     phosphorus as they should. Sewage plants are not the sole 
     source, but new technology makes them the low-hanging fruit 
     as we seek reductions.
       First, let me give credit where it is due. Over 70 large 
     wastewater treatment plants have been upgraded with 
     technology that dramatically reduces the amount of nitrogen 
     and phosphorus in the treated discharge. Some plants, like 
     the Blue Plains facility in DC, have gone beyond what was 
     asked of them. Virginia and Maryland and the local 
     municipalities have shouldered that cost so far.
       Nevertheless, to make a real dent in nutrient pollution, we 
     need to get serious about getting all the major plants to 
     remove nitrogen and phosphorus from the effluent. Another 218 
     major plants await upgrades. These plants need to install 
     state-of-the-art technology, which would cut 85% of the 
     nitrogen and phosphorus pollution from the treated discharge. 
     That would slash nutrients in the Bay by more than 50 million 
     pounds each year. I've attached a copy of a letter from my 
     staff to yours that provides a detailed background briefing 
     on this subject.
       The Clean Water Act promised citizens that they would have 
     clean waters by now. Sadly, the Bay is still polluted thirty 
     years later. If we fail to greatly reduce nutrient pollution 
     in the next few years, the Bay will not be the only loser. 
     Commercial fishermen and their families will suffer. 
     Waterfront property owners will not realize a gain in their 
     investment. Recreational opportunities--so important in this 
     workaholic world--will be diminished. And certainly, an 
     unhealthy Bay imperils human health.
       The Chesapeake Bay Foundation stands ready to galvanize 
     public support behind your effort to fund these upgrades. 
     With 92,000 members, a dedicated professional staff and a 
     volunteer board, we are determined to do whatever it takes to 
     save the Bay. Thank you again for all of your hard work on 
     behalf of the Bay.
           Sincerely,
                                                 William C. Baker,
     President.
                                  ____



                                    Chesapeake Bay Commission,

                                      Annapolis, MD, May 23, 2001.
     Hon. Paul S. Sarbanes,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Sarbanes: We write in support of your efforts 
     to reduce the environmental and public health impacts of one 
     of the major point sources of nutrient pollution to the 
     Chesapeake Bay--municipal wastewater treatment plants. As you 
     know, nearly 300 major sewerage treatment plants located in 
     the Chesapeake Bay watershed discharge approximately 60 
     million pounds of nitrogen, amounting to 20 percent of the 
     total nitrogen load, into the Chesapeake Bay.
       Nutrient pollution has been a particularly difficult and 
     persistent problem in our efforts to protect and restore the 
     Chesapeake Bay's ecosystem. In 1987, the Chesapeake Bay 
     Commission and our Bay partners committed to achieving a 40 
     percent reduction in controllable nutrient loads to the Bay 
     by the year 2000. While measurable pollution reductions were 
     achieved despite continued population growth and development, 
     the Chesapeake Bay Program estimates that at least an 
     additional 100 million lbs. of nitrogen must be removed in 
     order to correct the Bay's nutrient-related problems by 2010.
       Fortunately, the Bay states have led the way in the 
     application of advanced nutrient removal technologies. For 
     example, of Maryland's 66 wastewater treatment plants, 
     biological nutrient removal (BNR) technology is in operation 
     at 34 plants, under construction at 9 plants, and all but one 
     of the remaining wastewater treatment plants have signed 
     cost-share agreements for implementation of BNR. While this 
     technology is one of the most reliable and cost-effective 
     means of reducing nutrient loads to the Bay, it is 
     prohibitively expensive without the combined contribution of 
     local, state, and Federal funds. To date, the financial 
     burden for upgrading aging sewerage infrastructure has rested 
     largely upon local governments, which have a limited capacity 
     to support such expensive capital improvements. The 
     Chesapeake Bay Foundation has derived a rough estimate of 
     $1.2 billion for the application of BNR at treatment plants 
     within the Bay watershed over a 10-year period.
       By establishing the proposed grant program under the 
     ``Chesapeake Bay Watershed Nutrient Removal Assistance Act,'' 
     state and local funds could be matched with Federal funds to 
     initiate urgently needed upgrades to eligible wastewater 
     treatment facilities. By prioritizing those facilities that 
     would produce the greatest nutrient load reductions at points 
     of discharge and the greatest environmental benefits to local 
     bodies of water, this program would ensure significant and 
     measurable improvements to the water quality and living 
     resources of the Chesapeake Bay. We commend you and your 
     colleagues for addressing this important issue and offer our 
     assistance in your endeavor.
           Sincerely,
     Brian E. Frosh,
       Chairman (Senate of Maryland).
     Robert S. Bloxom,
       Vice-Chairman (Virginia House of Delegates).
     Russ Fairchild,
       Vice-Chairman (Pennsylvania House of Representatives).
                                  ____

                                               Maryland Department


                                           of the Environment,

                                     Baltimore, MD, June 12, 2001.
     Hon. Paul Sarbanes,
     U.S. Senate, Hart Building,
     Washington, DC.
       Dear Senator Sarbanes: The State of Maryland has been 
     pursuing an aggressive program of reducing nutrients from 
     publicly owned wastewater treatment plants through its 
     Biological Nutrient Removal (BNR) Cost-Share Program. This 
     State funded program provides 50% of the costs to upgrade 
     existing wastewater treatment plants with pollutant removal 
     technologies that go beyond regulatory requirements to help 
     meet the goal of cleaning up the Chesapeake Bay and its 
     tributaries.
       This State funded program has benefited from your efforts 
     as well as those of Senator Mikulski through the earmarking 
     of special federal appropriations to some of the wastewater 
     treatment plants targeted for these BNR upgrades. This 
     assistance has made the needed improvements affordable to the 
     citizens served by these treatment plants and advanced the 
     goals of the Chesapeake Bay Program.
       I am writing to you today to request your continued support 
     of the BNR Program. Maryland has accomplished much in this 
     program. Of the 66 targeted plants, 34 are in operation and 9 
     are under construction. The remaining plants are in planning 
     and design. Maryland has provided $163 million to fund these 
     improvements, with another $73 to $100 million estimated to 
     be needed to complete the program. The local governments have 
     committed an equal share, and have the need for additional 
     funding to implement BNR. With full implementation of the BNR 
     Program, nitrogen loadings to the Bay will be reduced from 32 
     to 15.2 million pounds per year.
       Achieving this level of nutrient reduction is more critical 
     than ever, as the new goals being evaluated for the 
     Chesapeake 2000 Agreement are refined. It is already clear 
     that we will have to do much more to reduce both point 
     sources and non-point sources of nutrient pollution to 
     restore the Bay.
       BNR will remain the cornerstone of the point survey 
     strategy to achieve the needed nutrient reductions. While the 
     BNR program has targeted a nitrogen concentration of 8 mg/l, 
     many of the plants designed with BNR will be able to achieve 
     even lower concentrations. The plants currently in planning 
     and design are being evaluated and designed to

[[Page 10844]]

     be able to achieve lower concentrations, in anticipation of 
     more ambitious Bay goals. In some cases, this may increase 
     project costs, but is a reasonable investment to protect the 
     Bay and its tributaries.
       In the interest of maintaining the leadership of the 
     Chesapeake Bay restoration effort by providing a nationally 
     significant demonstration effort, I am asking for your 
     continuing assistance in helping Maryland, and the other 
     jurisdictions in the Chesapeake Bay region, meet these 
     ambitious yet critical nutrient reduction goals. The creation 
     of a special grant program to help local governments upgrade 
     their wastewater treatment plants to reach the lowest 
     possible nutrient discharge levels would ensure that the 
     large publicly owned wastewater treatment plants in the 
     region are maximizing pollutant removals to the benefit of 
     the Chesapeake Bay.
       The beneficiaries of this capital investment will be not 
     only the future residents in the Chesapeake Bay region, who 
     will be able to enjoy the environment and economic wealth of 
     the Bay and the living resources with which we share this 
     unique resource, but also the nation which will benefit from 
     the knowledge gained from the Chesapeake Bay restoration 
     effort.
           Sincerely,
                                                     Jane Nishida,
                                                        Secretary.
                                 ______
                                 
      By Mr. DeWINE (for himself, Mr. Leahy, Mr. Voinovich, Mr. Breaux, 
        Mr. Conrad, Mr. Lugar, Mr. Santorum Ms. Landrieu, and Mr. 
        Hatch):
  S. 1048. A bill to amend the Internal Revenue Code of 1986 to provide 
relief for payment of asbestos-related claims; to the Committee on 
Finance.
  Mr. DeWINE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection the text of the bill was ordered to be 
printed in the Record.

                                S. 1048

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

     SECTION 1. EXEMPTION FOR ASBESTOS-RELATED SETTLEMENT FUNDS.

       (a) Exemption for Asbestos-Related Settlement Funds.--
     Subsection (b) of section 468B of the Internal Revenue Code 
     of 1986 (relating to special rules for designated settlement 
     funds) is amended by adding at the end the following new 
     paragraph:
       ``(6) Exemption from tax for asbestos-related settlement 
     funds.--Notwithstanding paragraph (1), no tax shall be 
     imposed under this section or any other provision of this 
     subtitle on any settlement fund to which this section or the 
     regulations thereunder applies that is established for the 
     principal purpose of resolving and satisfying present and 
     future claims relating to asbestos.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 468B(b) of such Code is 
     amended by striking ``There'' and inserting ``Except as 
     provided in paragraph (6), there''.
       (2) Subsection (g) of section 468B of such Code is amended 
     by inserting ``(other than subsection (b)(6))'' after 
     ``Nothing in any provision of law''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending on or after December 31, 
     2000.

     SEC. 2. MODIFY TREATMENT OF ASBESTOS-RELATED NET OPERATING 
                   LOSSES.

       (a) Asbestos-Related Net Operating Losses.--Subsection (f) 
     of section 172 of the Internal Revenue Code of 1986 (relating 
     to net operating loss deduction) is amended by redesignating 
     paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), 
     respectively, and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Special rules for asbestos liability losses.--
       ``(A) In general.--At the election of the taxpayer, the 
     portion of any specified liability loss that is attributable 
     to asbestos may, for purposes of subsection (b)(1)(C), be 
     carried back to the taxable year in which the taxpayer, 
     including any predecessor corporation, was first involved in 
     the production or distribution of products containing 
     asbestos and each subsequent taxable year. In determining its 
     specified liability losses attributable to asbestos, the 
     taxpayer may elect to take into account payments of related 
     parties attributable to asbestos-related products produced or 
     distributed by the taxpayer.
       ``(B) Coordination with credits.--If a deduction is 
     allowable for any taxable year by reason of a carryback 
     described in subparagraph (A)--
       ``(i) the credits allowable under part IV (other than 
     subpart C) of subchapter A shall be determined without regard 
     to such deduction, and
       ``(ii) the amount of taxable income taken into account with 
     respect to the carryback under subsection (b)(2) for such 
     taxable year shall be reduced by an amount equal to--

       ``(I) the increase in the amount of such credits allowable 
     for such taxable year solely by reason of clause (i), divided 
     by
       ``(II) the maximum rate of tax under section 1 or 11 
     (whichever is applicable) for such taxable year.

       ``(C) Carryforwards taken into account before asbestos-
     related deductions.--For purposes of this section--
       ``(i) in determining whether a net operating loss 
     carryforward may be carried under subsection (b)(2) to a 
     taxable year, taxable income for such year shall be 
     determined without regard to the deductions referred to in 
     paragraph (1)(A) with respect to asbestos, and
       ``(ii) if there is a net operating loss for such year after 
     taking into account such carryforwards and deductions, the 
     portion of such loss attributable to such deductions shall be 
     treated as a specified liability loss that is attributable to 
     asbestos.
       ``(D) Limitation.--The amount of reduction in income tax 
     liability arising from the election described in subparagraph 
     (A) that exceeds the amount of reduction in income tax 
     liability that would have resulted if the taxpayer utilized 
     the 10-year carryback period under subsection (b)(1)(C) shall 
     be devoted by the taxpayer solely to asbestos claimant 
     compensation and related costs, through a settlement fund or 
     otherwise.
       ``(E) Coordination with other carryback limitations.--The 
     amount of asbestos-related specified liability loss that may 
     be absorbed in a prior taxable year (and the amount of refund 
     attributable to such loss absorption) shall be determined 
     without regard to any limitation under section 381, 382, or 
     1502 or the regulations thereunder.
       ``(F) Predecessor corporation.--For purposes of this 
     paragraph, a predecessor corporation shall include a 
     corporation that transferred or distributed assets to the 
     taxpayer in a transaction to which section 381(a) applies or 
     that distributed the stock of the taxpayer in a transaction 
     to which section 355 applies.''.
       (b) Conforming Amendment.--Paragraph (7) of section 172(f) 
     of such Code, as redesignated by this section, is amended by 
     striking ``10-year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending on or after December 31, 
     2000.

  Mr. LEAHY. Mr. President, I am pleased to join with Senator DeWine in 
introducing bipartisan legislation to provide common-sense tax 
incentives to help address asbestos liability issues.
  First, our legislation would exempt investment income in an asbestos-
related designated settlement funds from Federal income tax, much as 
the investment income in a 401(k) savings plan is exempt from Federal 
income tax under current law. To qualify for this exemption from 
Federal taxation, the principal purpose of the asbestos-related 
designated settlement fund must be to pay present and future claims to 
asbestos victims and their families. This tax incentive encourages 
businesses to create settlement funds to meet their asbestos-related 
liabilities, just as the tax incentive for 401(k) savings plans 
encourages workers to invest for their retirement.
  Second, our legislation recognizes the unique nature of asbestos-
related diseases by providing a special ``carry-back'' rule for a 
company's losses from paying claims to asbestos victims and their 
families. Under current law, a company may carry back these costs from 
products sold in the last ten years. This carry-back period, however, 
fails to match the realities of asbestos-related diseases, which are 
often latent for forty or more years. In many cases, companies are 
paying asbestos-related claims for exposure to products that were 
produced a half-century ago.
  Our legislation would permit companies for whom the ten-year period 
provides no relief to carry back their current expenses from asbestos 
payments to victims and their families to the years in which the 
company produced the asbestos product. This extension of the carry-back 
tax rule is only fair given the long latency period of asbestos-related 
diseases.
  I agree with Supreme Court Justice Ruth Bader Ginsburg in the Amchem 
Products decision that Congress can provide a secure, fair and 
efficient means of compensating victims of asbestos exposure. The 
appropriate role for Congress is to provide incentives for private 
parties to reach settlements, not to take away the legal rights of 
asbestos victims and their families. Our bipartisan bill provides these 
tax incentives for private parties involved in asbestos-related 
litigation to reach global settlements and for asbestos victims and 
their families to receive the full benefit of the incentives.
  Encouraging fair settlements while still preserving the legal rights 
of all

[[Page 10845]]

parties involved is a win-win situation for business and asbestos 
victims. For example, Rutland Fire Clay Company, a family-run, 118-
year-old small business in my home state of Vermont, recently reached a 
settlement with its insurers and the trial bar concerning the firm's 
asbestos problems. Unlike some big businesses that are trying to avoid 
any accountability for their asbestos responsibilities through national 
``tort reform'' legislation, the Rutland Fire Clay Company and its 
President, Tom Martin, are doing the right thing within the legal 
system. The tax incentives in our bipartisan bill will support the 
Rutland Fire Clay Company and its employees while providing financial 
security for its settlement with asbestos victims and their families.
  I believe it is in the national interest to encourage fair and 
expeditious settlements between companies and asbestos victims. The 
legislation we are introducing today will encourage payments to victims 
while ensuring defendant firms remain solvent.
  I thank Senator DeWine for his leadership on this issue. I urge my 
colleagues to support our bipartisan approach to provide a secure and 
fair means of compensating victims of asbestos exposure and to permit 
businesses with asbestos liabilities to efficiently meet their 
responsibilities.
                                 ______
                                 
      By Mr. TORRICELLI:
  S. 1049. A bill to provide for an election to exchange research-
related tax benefits for a refundable tax credit, for the recapture of 
refunds in certain circumstances, and for other purposes; to the 
Committee on Finance.
  Mr. TORRICELLI. Mr. President, I rise today to introduce a vital 
piece of legislation that will encourage the growth of some of the most 
innovative companies in the world. I refer to the small biotechnology 
firms throughout the country which on a daily basis perform 
breakthrough research that enhances our daily lives.
  Indeed, biotechnology research over the years has benefitted greatly 
from successful initiatives such as the R&D tax credit. The R&D credit 
is of particular importance to my State of New Jersey because there are 
over 100 companies who spend $20 billion a year in R&D. In fact, over 
50 percent of all the prescription drug research in the world is 
conducted in my State.
  Going hand in hand with the R&D tax credit are the contributions of 
the biotechnology industry. My colleagues are well aware of the 
importance of this segment of industry and the beneficial role 
biotechnology plays in improving our quality of life and protecting the 
environment. In fact, the Senate unanimously approved a resolution 
acknowledging the benefits of biotech research earlier this Congress.
  The Senate has recognized these benefits that are seen in the drugs 
and vaccines developed over the last 20 years, which have already 
enabled over 270 million people throughout the world live healthier and 
longer lives. Today, a breast cancer, leukemia or diabetes patient has 
a fighting chance to survive their illness through treatments developed 
by biotech research.
  The record number of biotech drug approvals by the FDA over the past 
five years demonstrates the potential of this industry to develop new 
therapies which may someday lead to cures and vaccines for debilitating 
diseases such as heart disease, Alzheimer's, AIDS and cancer.
  While the R&D credit has been responsible for enabling much of this 
breakthrough research, the irony is that many small firms who are 
performing the most advanced, cutting edge research and 
experimentation, who desperately need the R&D credit are unable to 
utilize it because they have failed to turn a profit. These small 
companies often dedicate all of their resources to one or two major 
initiatives to conduct long term R&D projects benefitting our medical, 
agricultural and industrial sectors.
  In many instances, these projects are time consuming, expend much 
capital, and unfortunately are unsuccessful or unmarketable. 
Consequently, the long term unprofitability of these companies make 
them unable to take advantage of tax breaks and incentives such as the 
R&D credit. Therefore, many small firms are forced to abandon their 
research, sell their innovations to larger companies or simply go out 
of business.
  I firmly believe that these industry failures are our failures 
because the firm that ends its research today, may have been the 
company that provides the cure for Parkinson's or Lou Gherig's disease 
tomorrow.
  In order to address this situation, it is time for Congress to adopt 
a straightforward proposal that would build on the success of the R&D 
credit to provide these small research companies with the resources 
they need to continue their vital work. Specifically, I am introducing 
a proposal to allow these small firms to elect to take a refundable tax 
credit, equal to 75 percent of the nominal value of their current-year 
research credits or deductions or 75 percent of the value of the 
current- year net operating losses multiplied by the highest marginal 
tax rate for corporations (currently 35 percent).
  I have also included safeguard provisions to ensure that the 
government's investment in these companies is put to good use. Any 
company that elects to take this refundable tax credit would become 
ineligible for normal R&D tax credits and normal corporate tax 
deductions until they are able to payback the original amount of the 
refundable tax credit in federal income taxes after they turn a profit. 
Furthermore, my proposal requires that the proceeds from the refundable 
tax credit must be used towards ongoing research-related activities. My 
legislation also maintains that if it is determined that a company 
claiming this credit is not using the proceeds for research, the IRS 
can recapture that portion of the credit.
  This proposal does not seek to supercede or replace the R&D tax 
credit. Rather, it complements the tremendous success of the R&D 
credit. It helps the struggling companies that the R&D credit doesn't 
reach. I am hopeful that my colleagues will recognize, as I do, the 
magnificent potential of the biotech industry and make this investment 
in its future.
                                 ______
                                 
      By Mr. SANTORUM (for himself, Mr. Fitzgerald, and Mr. Voinovich):
  S. 1050. A bill to protect infants who are born alive; to the 
Committee on the Judiciary.
  Mr. SANTORUM. Mr. President, today I am introducing the Born Alive 
Infants Protection Act.
  When I was first elected to the Senate in 1994, I never imagined that 
the bill I am offering today would be necessary. Simply stated, this 
measure gives legal status to a fully born living infant, regardless of 
the circumstances of his or her birth. I am deeply saddened that we 
must clarify Federal law to specify that a living newborn baby is, in 
fact, a person.
  One could ask, ``Why do you need Federal legislation to state the 
obvious? What else could a living baby be, except a person?'' I will 
begin my explanation with events in 1995, when the Senate began its 
attempts to outlaw a horrifying, inhumane, and barbaric abortion 
procedure: partial birth abortion. In this particular abortion method, 
a living baby is killed when he or she is only inches from being fully 
born. Twice, the House and Senate stood united in sending a bill to 
President Clinton to ban this procedure. Twice, President Clinton 
vetoed the bill; and twice, the House courageously voted to override 
his veto. Although support in the Senate grew each time the ban came to 
a vote, the Senate fell a few votes shy of overriding the veto.
  Then, on June 28, 2000, the U.S. Supreme Court struck down Nebraska's 
partial birth abortion ban. The Supreme Court's ruling in Stenberg v. 
Carhart, as well as subsequent rulings in lower courts, are disturbing 
on a number of levels. First, the Supreme Court struck down Nebraska's 
attempt to ban a grotesque procedure the American Medical Association 
has called ``bad medicine,'' and thousands of physicians who specialize 
in high risk pregnancies have called ``never medically necessary.'' 
Further, the Court said it did not matter that the baby is killed when 
it is almost totally outside

[[Page 10846]]

the mother's body in this abortion method. In other known abortion 
methods, the baby is killed in utero. Finally, the U.S. Supreme Court, 
and the Third Circuit Court have stated it does not matter where the 
baby is positioned when it is aborted. This assertion, to me, is the 
most horrifying of all.
  In the years of debates on partial birth abortion, I have asked 
Senators a very simple question: If a partial birth abortion were being 
performed on a baby, and for some reason the head slipped out and the 
baby were delivered, would it be o.k. to kill that baby? Not one 
Senator who defended the procedure has ever provided a straightforward 
``yes'' or ``no'' response. They would not answer my question. I 
believe it is important to define when a child is protected by the 
Constitution; so, I revised my question. I asked whether it would be 
alright to kill a baby whose foot is still inside the mother's body, or 
what if only a toe is inside? Again, I did not receive an answer.
  Unfortunately, evidence uncovered last year at a hearing before the 
House Judiciary Subcommittee on the Constitution suggests my questions 
were not so hypothetical. In fact, two nurses testified to seeing 
babies who were born alive as a result of induced labor abortions being 
left to die in soiled utility rooms. Furthermore, the intellectual 
framework for legalization of killing unwanted babies is being 
constructed by a prominent bioethics professor at Princeton University. 
Professor Peter Singer has advocated allowing parents a 28-day waiting 
period to decide whether to kill a disabled or unhealthy newborn. In 
his widely disseminated book, Practical Ethics, he asserts, ``killing a 
disabled infant is not morally equivalent to killing a person. Very 
often it is not wrong at all.''
  In response to these events, the Born Alive Infants Protection Act 
grants protection under Federal law to newborns who are fully outside 
of the mother. Specifically, it states that Federal laws and 
regulations referring to a ``person,'' ``human being,'' ``child,'' and 
``individual'' include ``every infant member of the species homo 
sapiens who is born alive at any stage of development.'' ``Born alive'' 
means ``the complete expulsion or extraction from its mother of that 
member, at any stage of development, who after such expulsion or 
extraction breathes or has a beating heart, pulsation of the umbilical 
cord, or definite movement of voluntary muscles, regardless of whether 
the umbilical cord has been cut, and regardless of whether the 
expulsion or extraction occurs as a result of natural or induced labor, 
caesarean section, or induced abortion.'' The definition of ``born 
alive'' is derived from a World Health Organization definition of 
``live birth'' that has been enacted in approximately 30 states and the 
District of Columbia.
  Again, all this bill says is that a living baby who is completely 
outside of its mother is a person, a human being, a child, an 
individual. Similar legislation passed by the House of Representatives 
last year by an overwhelming vote of 380-15. I am hopeful that Senators 
on both sides of the general abortion debate can agree that once a baby 
is completely outside of its mother, it is a person, deserving the 
protections and dignity afforded to all other Americans.
  I ask unanimous consent that the text of the Born Alive Infants 
Protection Act be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1050

       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 ``Born-Alive Infants 
     Protection Act''.

     SEC. 2. DEFINITION OF BORN-ALIVE INFANT.

       (a) In General.--Chapter 1 of title 1, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 8. `Person', `human being', `child', and `individual' 
       as including born-alive infant

       ``(a) In determining the meaning of any Act of Congress, or 
     of any ruling, regulation, or interpretation of the various 
     administrative bureaus and agencies of the United States, the 
     words `person', `human being', `child', and `individual', 
     shall include every infant member of the species homo sapiens 
     who is born alive at any stage of development.
       ``(b) As used in this section, the term `born alive', with 
     respect to a member of the species homo sapiens, means the 
     complete expulsion or extraction from its mother of that 
     member, at any stage of development, who after such expulsion 
     or extraction breathes or has a beating heart, pulsation of 
     the umbilical cord, or definite movement of voluntary 
     muscles, regardless of whether the umbilical cord has been 
     cut, and regardless of whether the expulsion or extraction 
     occurs as a result of natural or induced labor,caesarean 
     section, or induced abortion.
       ``(c) Nothing in this section shall be construed to affirm, 
     deny, expand, or contract any legal status or legal right 
     applicable to any member of the species homo sapiens at any 
     point prior to being born alive as defined in this section''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 1 of title 1, United States Code, is 
     amended by adding at the end the following new item:

``8. `Person', `human being', `child', and `individual' as including 
              born-alive infant.''.
                                 ______
                                 
      By Mr. WARNER (for himself and Mr. Allen):
  S. 1051. A bill to expand the boundary of the Booker T. Washington 
National Monument, and for other purposes; to the Committee on Energy 
and Natural Resources.
  Mr. WARNER. Mr. President, today I rise to introduce a bill which 
will expand the borders of the Booker T. National Washington Monument 
in Virginia. This extraordinary 224 acres of rolling hills, woodlands, 
and agricultural fields preserves and protects the birth site and 
childhood home of Booker T. Washington. It interprets both his life 
experiences and significance in American history.
  On April 2, 1956 the Monument was authorized by Congress to create a 
``public national memorial to Booker T. Washington, noted Negro 
educator and apostle of good will . . .''. Mr. Washington was widely 
considered the most powerful African American of his time. This park 
provides a focal point for the continuing discussions on the context of 
race in American society, a resource for public education, and the 
continuation of his legacy today.
  The agricultural landscape surrounding the Monument plays a critical 
role in the park's interpretation of Washington's life as an enslaved 
child during the Civil War era. Many of his most significant 
experiences center on this small tobacco farm located near the rapidly 
developing recreational area of Smith Mountain Lake. It is remarkable 
that the area immediately surrounding the national monument remains 
relatively unchanged since the time of Booker T. Washington's birth.
  As part of the park's strategic plan, a viewshed study was conducted 
in 1998. It's purpose was to survey the surrounding lands in the most 
highly visited areas of the park and determine what visual effects 
urban development would have on the preservation of this historic site. 
The study identified a 15-acre parcel of land to be the most critical 
addition for this park because of its proximity to Booker T. 
Washington's birth site.
  Several private landowners now wish to sell some of the surrounding 
farmland, including the 15-acre tract identified in the viewshed study. 
I believe that in order to maintain this unique historic setting, the 
Park Service should acquire this property so that visitors will be able 
to experience the same pastoral setting that was so crucial to Booker 
T. Washington's life. I urge my colleagues to join me in preserving 
this important landmark in our nation's history for all future 
generations.
  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. 1051

       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 ``Booker T. Washington 
     National Monument Boundary Adjustment Act of 2001''.

[[Page 10847]]



     SEC. 2. BOUNDARY OF BOOKER T. WASHINGTON NATIONAL MONUMENT 
                   EXPANDED.

       The Act entitled ``An Act to provide for the establishment 
     of the Booker T. Washington National Monument'', approved 
     April 2, 1956 (16 U.S.C. 450ll et seq.), is amended by adding 
     at the end the following new section:

     ``SEC. 5. ADDITIONAL LANDS.

       ``(a) Lands Added to Monument.--The boundary of the Booker 
     T. Washington National Monument is modified to include the 
     approximately 15 acres, as generally depicted on the map 
     entitled ``Boundary Map, Booker T. Washington National 
     Monument, Franklin County, Virginia'', numbered BOWA 404/
     80,024, and dated February 2001. The map shall be on file and 
     available for inspection in the appropriate offices of the 
     National Park Service, Department of the Interior.
       ``(b) Acquisition of Additional Lands.--The Secretary of 
     the Interior is authorized to acquire from willing owners the 
     land or interests in land described in subsection (a) by 
     donation, purchase with donated or appropriated funds, or 
     exchange.
       ``(c) Administration of Additional Lands.--Lands added to 
     Booker T. Washington National Monument by subsection (a) 
     shall be administered by the Secretary of the Interior as 
     part of the monument in accordance with applicable laws and 
     regulations.''.
                                 ______
                                 
      By Mr. HARKIN (for himself, Mr. Akaka, Mr. Bingaman, Mr. 
        Murkowski, Mr. Reid, Mr. Domenici, Mr. Kyl, Mr. Bayh, Mr. 
        Inouye, Mr. Lieberman, and Mr. Jeffords):
  S. 1053. A bill to reauthorize and amend the Spark M. Matsunaga 
Hydrogen Research Development, and Demonstration Act of 1990, and for 
other purposes; to the Committee on Energy and Natural Resources.
  Mr. HARKIN. Mr. President, I am pleased to introduce today the 
Hydrogen Future Act of 2001, a bill to reauthorize the Department of 
Energy's hydrogen energy programs. I am especially pleased that this 
bill has strong bipartisan support. I worked closely with my colleague 
from Hawaii, Senator Akaka, in developing the bill, which builds on the 
great work of his predecessor, Spark Matsunaga, and I thank him for his 
support. Other cosponsors include Senators Bingaman, Murkowski, Reid, 
Domenici, Kyl, Bayh, Inouye, Lieberman, and Jeffords.
  There has been a wide-ranging and sometimes fierce debate recently 
over what should be in a national energy policy. But while there is 
significant disagreement over near-term strategies, there is a widely 
shared vision of where we need to end up. For the sake of both the 
economy and the environment, we need to develop clean, domestic 
renewable fuels, such as solar heat and power, wind turbines, 
geothermal power, hydroelectric power, and biomass and ethanol. These 
fuels are domestic, avoiding the risks of dependence on foreign 
sources; indeed several of these fuels are widely available in the 
U.S., so that many states, such as Iowa, that now import virtually all 
their fuel could bring that work home. The use of multiple fuels, and 
the local availability, should make supplies more reliable as well. And 
these renewable fuels are truly ``green''--they cause almost no 
pollution and result in almost no global warming.
  However, the sun, the wind, and even the rivers are not always 
available when you need them, and you can't store sunlight, wind, or 
the electricity you make from them. If they are to be major sources of 
power, you need a way to store the energy.
  The need to store electricity is not just a hypothetical problem for 
an energy future. The California energy crisis this year has vividly 
demonstrated that electricity is not just another commodity. The 
terrible price spikes and rolling blackouts occur in part because 
customers need electricity but cannot store or stockpile it, during 
brief shortages purchasers have paid hundreds or thousands of dollars a 
kilowatthour, or found there was no electricity to buy. Californians 
hoped to create a free and fair market in electricity, but instead find 
themselves at the mercy of electricity providers.
  The automobile industry has also recognized for some time that 
electric cars could be much more efficient than any combustion engine 
vehicle, as well as quieter and non-polluting. But they have lacked an 
effective way to generate electricity on board.
  These issues may be even more important abroad. Our world population 
continues to increase at an almost alarming rate. Back when I was born 
in 1939, there were three billion people on the earth. When I turned 60 
not long ago, there were 6 billion people. And 40 years from now, when 
by daughter turns 60, there will be 11 billion people on earth.
  As countries like India, China and the African Nations become 
industrialized consumer societies, billions of additional people will 
want, and deserve to have, a better quality of life. That means heating 
in the winter and air conditioning in the summer, televisions and 
microwave ovens and cars. But if they develop the same way we did, we 
are all in trouble. The air pollution, water pollution, and global 
warming could make our earth unlivable. And if China and other 
developing nations import oil to fuel a billion cars, our recent $2 a 
gallon gasoline prices will look like bargains. For the sake of these 
countries and for our own sake, we've got to help these developing 
countries leap-frog fossil fuels and move directly to sustainable 
development based on renewable energy.
  The Hydrogen Future Act is about the solution to the electricity 
storage problem. Hydrogen is a colorless, odorless, non-toxic gas that 
can be obtained from ordinary water using electricity or from plants 
such as switchgrass and trees. Hydrogen can be stored and transported 
much like natural gas. And it is an almost perfect fuel. When burned, 
the main waste product is water. But hydrogen can more efficiently be 
used to power fuel cells, making only electricity, heat, and pure 
water. And it's safe, escaping harmlessly into the air if there is a 
leak.
  Because of these qualities, hydrogen has long been a technologist's 
dream. Jules Verne imagined hydrogen from water powering machinery, 
trains, and and lights back in 1874. But in 1990, when the Hydrogen 
Research, Development, and Demonstration Act first became law, hydrogen 
was still used for energy more in space, by NASA, than on earth.
  How things are changing. Hydrogen fuel cells are no longer a 
laboratory curiosity. Today, the First National Bank of Omaha, just 
outside my home state of Iowa, uses fuel cells to power its credit card 
service operations. They wanted fuel cells because of their 
reliability. They figure it costs them one million dollars for every 
hour their power is out, and that the $3.8 million system has already 
paid for itself. The New York Central Park Police Station relies on a 
fuel cell for off-grid electricity because it would have cost over a 
million dollars to run power line extensions to the building. And at 
the Kirby Cove Campground in California, fuel cells have another 
advantage: they're quiet.
  We've seen public buses running on hydrogen fuel cells in Chicago and 
Vancouver and Southern California. Every major car manufacturer has 
prototype fuel cell cars and vans on the roads. And there are hydrogen 
fueling stations in places such as Dearborn, Michigan; Las Vegas, 
Nevada, and Sacramento, CA. Some companies are developing fuel cells to 
power cell phones and personal computers, others for full-size power 
plants. Companies have announced plans to deliver commercial fuel cell 
products in the next few years in cars, buses, and homes.
  Soon hydrogen may be powering the world. It's potential is so great 
that some people look forward to a ``hydrogen economy,'' an economy in 
which hydrogen is the ubiquitous energy ``carrier'' between renewable 
sources and all end uses. Larry Burns, a vice president of General 
Motors has said, ``We believe hydrogen will be the fuel of the 
future.'' And Don Huberts, of Shell, said ``The stone age did not end 
because the world ran out of stones, and the oil age will not end 
because we run out of oil.'' Saudi Arabian Oil Minister Ahmed Zaki 
Yamani has used almost the same words. Now Iceland has embarked on a 
visionary program to create the world's first hydrogen economy using 
their abundant hydroelectric and geothermal resources.
  The Department of Energy hydrogen energy program is a critical part 
of this revolution. The program conducts

[[Page 10848]]

research in the efficient and cost-effective production of hydrogen 
from renewable sources and from fossil fuels, in effective storage of 
hydrogen, and in potential uses such as reversible fuel cells, as well 
as in necessary infrastructure including hydrogen sensors. The program 
demonstrates technologies such as hydrogen fueling and remote off-grid 
power applications. The program also conducts invaluable process and 
market analyses, as well as doing necessary work on codes and 
regulations. They are working on ceramic membranes, combined 
electricity generation and hydrogen production, and niche markets such 
as vehicles in mines. Almost all projects are funded in party by 
industry.
  The bill we are introducing today will extend, expand, and improve 
this DOE program. Because of the enormous promise of hydrogen energy, 
and the current rapid expansion of opportunities, the bill authorizes a 
significant increase in funding for the hydrogen program, to $60 
million next year, with a total of $350 million over five years.
  It also establishes a new program aimed at demonstrating hydrogen 
technologies and their integration with fuel cells at Federal, State, 
and local government facilities. The program would be based on a plan 
to be developed by an interagency task force. It would focus on 
hydrogen production, storage, and use in buildings and vehicles; on 
hydrogen-based infrastructure for buses and fleet transportation; and 
on distributed power generation, including the generation of combined 
heat, power, and hydrogen. This new demonstration program would be 
funded at an additional $20 million next year, with a total of $150 
million over five years.
  The bill makes other improvements, including: Modification of cost-
sharing requirements to enable more participation in research projects 
by small companies and to exclude from cost-sharing analytical and 
service work that will not lead to commercial products. These changes 
are intended to conform more closely to the requirements in the Energy 
Policy Act of 1992 that govern the rest of the renewable energy 
program, without violating WTO rules; Language incorporating 
international activities where appropriate in the DOE programs. A 
global perspective is necessary both to develop world markets for our 
products and to encourage international development on a sustainable 
path; Clarification of the composition of the Hydrogen Technical 
Advisory Panel that oversees the program for DOE; Reporting 
requirements to further enhance inter-agency and inter-governmental 
cooperation in the hydrogen program.
  This bill has the support of the chairman and ranking members of the 
Energy Committee as well as the chairman and ranking member of the 
Energy and Water Subcommittee of the Appropriations Committee. I 
understand that a bill to reauthorize the Hydrogen Future Act will also 
be introduced today in the House by Representatives Ken Calvert and 
Sherwood Boehlert, key members of the Science Committee. And the recent 
report of the administration's National Energy Policy Development Group 
recommended reauthorization of the hydrogen program. I hope with this 
strong bipartisan support we will be able to pass this bill quickly and 
to help realize hydrogen's potential in providing the clean, reliable 
energy we so desperately need.
  Mr. AKAKA. Mr. President, I am pleased to join Senator Harkin, 
Senator Bingaman and Senator Murkowski, Chairman and Ranking Member of 
the Senate Committee on Energy and Natural Resources, my colleagues 
Senators Bayh, Domenici, Jeffords, Kyl, Lieberman, Reid, and my senior 
colleague from Hawaii, Senator Inouye, in introducing legislation that 
will accelerate the ongoing efforts for the development of a fuel for 
the future--hydrogen. Hydrogen is an efficient and environmentally 
friendly energy carrier that can be obtained using conventional or 
renewable resources.
  In these days of soaring energy prices, oil cartels, air pollution, 
global climate change and greenhouse gases, hydrogen is a dazzling 
alternative. We can have a zero-pollution fuel. It can be produced 
domestically, ending our dependence on foreign oil. The question is not 
whether there will be a hydrogen age but when.
  Hydrogen as a fuel can help us resolve our energy problems and 
satisfy much of the world's energy needs. I am convinced that sometimes 
in the 21st century, hydrogen will join electricity as one of our 
Nation's primary energy carriers, and hydrogen will ultimately be 
produced from renewable sources. In the next twenty years, increasing 
concerns about global climate change and energy security will help 
bring about penetration of hydrogen in several niche markets. The 
growth of fuel cell technology will allow the introduction of hydrogen 
in both the transportation and electricity sectors.
  I have a long-term vision for hydrogen energy as a renewable 
resource. Progress is being made and challenges and barriers are being 
surmounted at an accelerating pace on a global scale. Fuel cells for 
distributed stationary power are being commercialized and installed in 
various locations in the United States and worldwide. Transit bus 
demonstration programs are underway in both the United States and 
Europe. Major automobile companies are poised to deploy fuel cell 
passenger cars within the next few years. All these activities involve 
government and private sector cooperation.
  Industry is moving ahead with fuel cell developments at a rapid pace. 
Many companies are forming partnerships to bring new technologies to 
the marketplace. Daimler-Chrysler, Ford, and Ballard have formed a 
partnership and pledged $1.5 billion for commercialization of 
automotive fuel cells. Edison Development Company, General Electric, 
SoCal Gas, and Plug Power have agreements to commercialize residential 
fuel cells.
  National governments are turning to hydrogen as the fuel of the 
future. Iceland is making a strong bid to become the world's first 
hydrogen-based economy. According to its plans, hydrogen-powered cars 
and buses will transport people in Reykjavik, the country's capital 
within ten years. If all goes well there will be no need for oil in 
Iceland.
  Closer to home, I am particularly pleased that the State of Hawaii is 
taking the lead in ushering in the hydrogen era. Our State Legislature 
is advancing bills that would authorize the formation of a public-
private sector partnership for promoting hydrogen as an energy source. 
The partnership would involve the State, Counties, Federal Government, 
utilities, and private companies. The partnership would be charged with 
developing plans to promote investment in hydrogen infrastructure, 
begin pilot plants to produce hydrogen from geothermal and other 
sources on Oahu, study how to move hydrogen to other islands, and study 
how wind and other methods could be used to produce hydrogen. In 
California, the state's zero emissions vehicle requirements favor early 
introduction of hydrogen-powered vehicles.
  These are very important initiatives. They may be small steps, but 
for the hydrogen future they are important steps forward.
  My predecessor in the Senate, Senator Spark Matsunaga was one of the 
first to focus attention on hydrogen by sponsoring hydrogen research 
legislation. The Matsunaga Hydrogen Act, as the legislation became 
known, was designed to accelerate development of domestic capability to 
produce an economically renewable energy source in sufficient 
quantities to reduce the Nation's dependence on conventional fuels. As 
a result of Senator Matsunaga's vision, the Department of Energy has 
been conducting research that will advance technologies for cost-
effective production, storage, and utilization of hydrogen.
  The Hydrogen Future Act of 1996, which followed the Matsunaga 
Hydrogen Act, expanded the research, development, and demonstration 
program under the original Act. It authorized activities leading to 
production, storage, transformation, and use of hydrogen for 
industrial, residential, transportation, and utility applications. It 
enjoyed bipartisan support in Congress.
  Today we are introducing legislation that reauthorizes and amends the 
Hydrogen Future Act of 1996. It highlights

[[Page 10849]]

the potential of hydrogen as an efficient and environmentally friendly 
source of energy, the need for a strong partnership between the Federal 
government, industry, and academia, and the importance of continued 
support for hydrogen research. It fosters collaboration between Federal 
agencies, State and local governments, universities, and industry, and 
it encourages private sector investment and cost sharing in the 
development of hydrogen as an energy source. It adds provisions for the 
demonstration of hydrogen technologies at government facilities to 
expedite wider application of these technologies.
  The bill we are introducing today supports the recommendations of the 
President's Council of Advisors on Science and Technology, PCAST. In 
its report issued in November 1997, PCAST proposed a substantial 
increase in Federal spending for applied energy technology R&D, with 
the largest share going to energy efficiency and renewable energy 
technologies. The PCAST report, ``Federal Energy Research and 
Development for the Challenges of the Twenty-First Century,'' 
acknowledged and supported advances in a wide range of both hydrogen-
producing and hydrogen-using technologies.
  The current Hydrogen Program, administered by the Department of 
Energy, supports a broad range of research and development projects in 
the areas of hydrogen production, storage, and use in a safe and cost-
effective manner. Some of these new technologies may become available 
for wider use in the next few years. The most promising include 
advanced natural gas- and biomass-based hydrogen production 
technologies, high pressure gaseous and cryogas storage systems, and 
reversible PEM fuel cell systems. Other projects lay the groundwork for 
long range opportunities. These activities need continued support if 
the nation is to enjoy the benefits of a clean energy source.
  The Hydrogen Program utilizes the talents of our national 
laboratories and our universities. The National Renewable Energy 
Laboratory, Sandia, Lawrence Livermore, Los Alamos, and Oak Ridge 
National Laboratories, as well as Jet Propulsion Laboratory are 
involved in the program. The DOE Field Office at Golden, Colorado, and 
Nevada Operations Office in Nevada are also involved. University-led 
centers-of-excellence have been established at the University of Miami 
and the University of Hawaii. U.S. participation in the International 
Energy Agency contributes to the advancement of DOE hydrogen research 
through international cooperation. The program has also built strong 
links with the industry. This has resulted in strong industry 
participation and cost sharing. Cooperation between government, 
industry, universities, and the national laboratories is key to the 
successful development and commercialization of new and environmentally 
friendly energy technologies.
  The legislation we are introducing today authorizes $350 million over 
the next five years for research and development for hydrogen 
production, storage and use. This will allow advancement of 
technologies such as smaller-scale production systems that are 
applicable to distributed-generation and vehicle applications, advanced 
pressure vessels, photobiological and photocatalytic production of 
hydrogen, and carbon nanotubes, graphite nanofibers, and fullerenes.
  The bill also authorizes $150 million for conducting integrated 
demonstrations of hydrogen technologies at government facilities. This 
provision will help secure industry participation through competitive 
solicitations for technology development and testing. It will test the 
viability of hydrogen production, storage, and use, and lead to the 
development of hydrogen-based operating experience acceptance to meet 
safety codes and standards.
  By supporting this bill, we will be ushering in a new era of non-
polluting energy. I urge my colleagues to support this important 
legislation.
                                 ______
                                 
      By Mr. KOHL (for himself and Mr. Reid):
  S. 1054. A bill to amend titles XVIII and XIX of the Social Security 
Act to prevent abuse of recipients of long-term care services under the 
Medicare and Medicaid programs; to the Committee on Finance.
  Mr. KOHL. Mr. President, I rise today to re-introduce the Patient 
Abuse Prevention Act. I am pleased to be joined in this effort by 
Senator Reid, who has worked tirelessly with me on this important 
legislation.
  There is absolutely no excuse for abuse or neglect of the elderly and 
disabled at the hands of those who are supposed to care for them. Our 
parents and grandparents made our country what it is today, and they 
deserve to live with dignity and the highest quality care.
  Unfortunately, this is not always the case. We know that the majority 
of caregivers are dedicated, professional, and do their best under 
difficult circumstances. But we also know that too often, the elderly 
are starved, shamed, abused, neglected and exploited by the very people 
charged with their care. And the systems that are in place today are 
not enough to protect them.
  It is estimated that more than 43 percent of Americans over the age 
of 65 will likely spend time in a nursing home. The number of people 
needing long-term care services will continue to increase as the Baby 
Boom generation ages. While most long-term care workers do an excellent 
job, it only takes a few abusive staff to cast a dark shadow over what 
should be a healing environment.
  A disturbing number of cases have been reported where workers with 
criminal backgrounds have been cleared to work in direct patient care, 
and have subsequently abused patients in their care. In 1997, the 
Milwaukee Journal-Sentinel ran a series of articles describing this 
problem, which led my home State of Wisconsin to pass a criminal 
background check law for health care workers. The legislation I 
introduce today follows their example and builds on their efforts.
  Current State and National safeguards are inadequate to screen out 
abusive workers. All States are required to maintain registries of 
abusive nurse aides. But nurse aides are not the only workers involved 
in abuse, and other workers are not tracked at all. Even worse, there 
is no system to coordinate information about abusive nurse aides 
between States. A known abuser in Iowa would have little trouble moving 
to Wisconsin and continuing to work with patients there.
  In addition, there is no Federal requirement that long-term care 
facilities conduct criminal background checks on prospective employees. 
People with violent criminal backgrounds, people who have already been 
convicted of murder, rape, and assault, could easily get a job in a 
nursing home or other health care setting without their past ever being 
discovered.
  Our legislation will go a long way toward solving this problem. 
First, it will create a National Registry of abusive long-term care 
employees. States will be required to submit information from their 
current State registries to the National Registry. Facilities will be 
required to check the National Registry before hiring a prospective 
worker. Any worker with a substantiated finding of patient abuse will 
be prohibited from working in long-term care.
  Second, the bill provides a second line of defense to protect 
patients from violent criminals. If the National Registry does not 
contain information about a prospective worker, the facility is then 
required to initiate an FBI background check. Any conviction for 
patient abuse or a relevant violent crime would bar that applicant from 
working with patients.
  There is clear evidence that this is needed. In 1998, at my request, 
the Senate Special Committee on Aging held a hearing that focused on 
how easy it is for known abusers to find work in long-term care and 
continue to prey on patients. At that hearing, the HHS Inspector 
General presented a report which found that, in the two States they 
studied, between 5-10 percent of employees currently working in nursing 
homes had serious criminal convictions in their past. They also found 
that among aides who had abused patients, 15-20 percent of them had at 
least one conviction in their past.

[[Page 10850]]

  But even more compelling, we heard from Richard Meyer of 
Libertyville, Illinois, whose 92-year old mother was raped by a nursing 
home worker who had a previous conviction for child sexual abuse. A 
criminal background check could have prevented this tragedy. But even 
more appalling, there is nothing in current law that prevents her 
assailant from travelling 50 miles to my home town of Milwaukee and 
finding another job in a home health agency.
  There's no greater illustration of the need for background checks 
than this. But for those who need more hard data, there is more 
evidence. In 1998, I offered an amendment which became law that allowed 
long-term care providers to voluntarily use the FBI system for 
background checks. So far, 7 percent of those checks have come back 
with criminal convictions, including rape and kidnapping.
  Clearly, this is a critical tool that long-term care providers should 
have, they don't want abusive caregivers working for them any more than 
families do. The current voluntary system was a good first step, but if 
we're serious about protecting our seniors, and I believe that every 
Member of the Senate is, then we have to do more than make it 
voluntary. We should make it a national priority to require all long-
term care providers who participate in Medicare and Medicaid to conduct 
these checks. And we should make the investment necessary to cover the 
costs of the checks, just like we reimburse providers for other costs 
of providing care to Medicare and Medicaid beneficiaries. This is a 
common-sense, inexpensive step we can take to protect patients by 
helping long-term care providers thoroughly screen potential 
caregivers.
  I realize that this legislation will not solve all instances of 
abuse. We still need to do more to stop abuse from occurring in the 
first place. But this bill will ensure that those who have already 
abused an elderly or disabled patient, and those who have committed 
violent crimes against people in the past, are kept away from 
vulnerable patients.
  I want to repeat that I strongly believe that most long-term care 
providers and their staff work hard to deliver the highest quality 
care. However, it is imperative that Congress act immediately to get 
rid of those that don't. When a patient checks into a nursing home or 
hospice, or receives home health care, they should not have to give up 
their right to be free from abuse, neglect, or mistreatment.
  This bill is the product of collaboration and input from the health 
care industry, patient and employee advocates who all have the same 
goal I do: protecting patients in long-term care. I look forward to 
continuing to work with my colleagues, the Administration, and the 
health care industry in this effort. Our nation's seniors and disabled 
deserve nothing less than our full attention.
  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. 1054

       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 ``Patient Abuse Prevention 
     Act''.

     SEC. 2. ESTABLISHMENT OF PROGRAM TO PREVENT ABUSE OF NURSING 
                   FACILITY RESIDENTS.

       (a) Nursing Facility and Skilled Nursing Facility 
     Requirements.--
       (1) Medicaid program.--Section 1919(b) of the Social 
     Security Act (42 U.S.C. 1396r(b)) is amended by adding at the 
     end the following new paragraph:
       ``(8) Screening of nursing facility workers.--
       ``(A) Background checks on applicants.--Subject to 
     subparagraph (B)(ii), before hiring a nursing facility 
     worker, a nursing facility shall--
       ``(i) give the worker written notice that the facility is 
     required to perform background checks with respect to 
     applicants;
       ``(ii) require, as a condition of employment, that such 
     worker--

       ``(I) provide a written statement disclosing any conviction 
     for a relevant crime or finding of patient or resident abuse;
       ``(II) provide a statement signed by the worker authorizing 
     the facility to request the search and exchange of criminal 
     records;
       ``(III) provide in person a copy of the worker's 
     fingerprints or thumb print, depending upon available 
     technology; and
       ``(IV) provide any other identification information the 
     Secretary may specify in regulation;

       ``(iii) initiate a check of the data collection system 
     established under section 1128E in accordance with 
     regulations promulgated by the Secretary to determine whether 
     such system contains any disqualifying information with 
     respect to such worker; and

       ``(iv) if that system does not contain any such 
     disqualifying information--

       ``(I) request that the State initiate a State and national 
     criminal background check on such worker in accordance with 
     the provisions of subsection (e)(8); and
       ``(II) furnish to the State the information described in 
     subclauses (II) through (IV) of clause (ii) not more than 7 
     days (excluding Saturdays, Sundays, and legal public holidays 
     under section 6103(a) of title 5, United States Code) after 
     completion of the check against the system initiated under 
     clause (iii).

       ``(B) Prohibition on hiring of abusive workers.--
       ``(i) In general.--A nursing facility may not knowingly 
     employ any nursing facility worker who has any conviction for 
     a relevant crime or with respect to whom a finding of patient 
     or resident abuse has been made.
       ``(ii) Provisional employment.--After complying with the 
     requirements of clauses (i), (ii), and (iii) of subparagraph 
     (A), a nursing facility may provide for a provisional period 
     of employment for a nursing facility worker pending 
     completion of the check against the data collection system 
     described under subparagraph (A)(iii) and the background 
     check described under subparagraph (A)(iv). Such facility 
     shall maintain direct supervision of the worker during the 
     worker's provisional period of employment.
       ``(C) Reporting requirements.--A nursing facility shall 
     report to the State any instance in which the facility 
     determines that a nursing facility worker has committed an 
     act of resident neglect or abuse or misappropriation of 
     resident property in the course of employment by the 
     facility.
       ``(D) Use of information.--
       ``(i) In general.--A nursing facility that obtains 
     information about a nursing facility worker pursuant to 
     clauses (iii) and (iv) of subparagraph (A) may use such 
     information only for the purpose of determining the 
     suitability of the worker for employment.
       ``(ii) Immunity from liability.--A nursing facility that, 
     in denying employment for an applicant (including during the 
     period described in subparagraph (B)(ii)), reasonably relies 
     upon information about such applicant provided by the State 
     pursuant to subsection (e)(8) or section 1128E shall not be 
     liable in any action brought by such applicant based on the 
     employment determination resulting from the information.
       ``(iii) Criminal penalty.--Whoever knowingly violates the 
     provisions of clause (i) shall be fined in accordance with 
     title 18, United States Code, imprisoned for not more than 2 
     years, or both.
       ``(E) Civil penalty.--
       ``(i) In general.--A nursing facility that violates the 
     provisions of this paragraph shall be subject to a civil 
     penalty in an amount not to exceed--

       ``(I) for the first such violation, $2,000; and
       ``(II) for the second and each subsequent violation within 
     any 5-year period, $5,000.

       ``(ii) Knowing retention of worker.--In addition to any 
     civil penalty under clause (i), a nursing facility that--

       ``(I) knowingly continues to employ a nursing facility 
     worker in violation of subparagraph (A) or (B); or
       ``(II) knowingly fails to report a nursing facility worker 
     under subparagraph (C),

     shall be subject to a civil penalty in an amount not to 
     exceed $5,000 for the first such violation, and $10,000 for 
     the second and each subsequent violation within any 5-year 
     period.
       ``(F) Definitions.--In this paragraph:
       ``(i) Conviction for a relevant crime.--The term 
     `conviction for a relevant crime' means any Federal or State 
     criminal conviction for--

       ``(I) any offense described in paragraphs (1) through (4) 
     of section 1128(a); and
       ``(II) such other types of offenses as the Secretary may 
     specify in regulations, taking into account the severity and 
     relevance of such offenses, and after consultation with 
     representatives of long-term care providers, representatives 
     of long-term care employees, consumer advocates, and 
     appropriate Federal and State officials.

       ``(ii) Disqualifying information.--The term `disqualifying 
     information' means information about a conviction for a 
     relevant crime or a finding of patient or resident abuse.
       ``(iii) Finding of patient or resident abuse.--The term 
     `finding of patient or resident abuse' means any 
     substantiated finding by a State agency under subsection 
     (g)(1)(C) or a Federal agency that a nursing facility worker 
     has committed--

[[Page 10851]]

       ``(I) an act of patient or resident abuse or neglect or a 
     misappropriation of patient or resident property; or
       ``(II) such other types of acts as the Secretary may 
     specify in regulations.

       ``(iv) Nursing facility worker.--The term `nursing facility 
     worker' means any individual (other than any volunteer) that 
     has direct access to a patient of a nursing facility under an 
     employment or other contract, or both, with such facility. 
     Such term includes individuals who are licensed or certified 
     by the State to provide such services, and nonlicensed 
     individuals providing such services, as defined by the 
     Secretary, including nurse assistants, nurse aides, home 
     health aides, and personal care workers and attendants.''.
       (2) Medicare program.--Section 1819(b) of the Social 
     Security Act (42 U.S.C. 1395i-3(b)) is amended by adding at 
     the end the following:
       ``(8) Screening of skilled nursing facility workers.--
       ``(A) Background checks on applicants.--Subject to 
     subparagraph (B)(ii), before hiring a skilled nursing 
     facility worker, a skilled nursing facility shall--
       ``(i) give the worker written notice that the facility is 
     required to perform background checks with respect to 
     applicants;
       ``(ii) require, as a condition of employment, that such 
     worker--

       ``(I) provide a written statement disclosing any conviction 
     for a relevant crime or finding of patient or resident abuse;
       ``(II) provide a statement signed by the worker authorizing 
     the facility to request the search and exchange of criminal 
     records;
       ``(III) provide in person a copy of the worker's 
     fingerprints or thumb print, depending upon available 
     technology; and
       ``(IV) provide any other identification information the 
     Secretary may specify in regulation;

       ``(iii) initiate a check of the data collection system 
     established under section 1128E in accordance with 
     regulations promulgated by the Secretary to determine whether 
     such system contains any disqualifying information with 
     respect to such worker; and
       ``(iv) if that system does not contain any such 
     disqualifying information--

       ``(I) request that the State initiate a State and national 
     criminal background check on such worker in accordance with 
     the provisions of subsection (e)(6); and
       ``(II) furnish to the State the information described in 
     subclauses (II) through (IV) of clause (ii) not more than 7 
     days (excluding Saturdays, Sundays, and legal public holidays 
     under section 6103(a) of title 5, United States Code) after 
     completion of the check against the system initiated under 
     clause (iii).

       ``(B) Prohibition on hiring of abusive workers.--
       ``(i) In general.--A skilled nursing facility may not 
     knowingly employ any skilled nursing facility worker who has 
     any conviction for a relevant crime or with respect to whom a 
     finding of patient or resident abuse has been made.
       ``(ii) Provisional employment.--After complying with the 
     requirements of clauses (i), (ii), and (iii) of subparagraph 
     (A), a skilled nursing facility may provide for a provisional 
     period of employment for a skilled nursing facility worker 
     pending completion of the check against the data collection 
     system described under subparagraph (A)(iii) and the 
     background check described under subparagraph (A)(iv). Such 
     facility shall maintain direct supervision of the covered 
     individual during the worker's provisional period of 
     employment.
       ``(C) Reporting requirements.--A skilled nursing facility 
     shall report to the State any instance in which the facility 
     determines that a skilled nursing facility worker has 
     committed an act of resident neglect or abuse or 
     misappropriation of resident property in the course of 
     employment by the facility.
       ``(D) Use of information.--
       ``(i) In general.--A skilled nursing facility that obtains 
     information about a skilled nursing facility worker pursuant 
     to clauses (iii) and (iv) of subparagraph (A) may use such 
     information only for the purpose of determining the 
     suitability of the worker for employment.
       ``(ii) Immunity from liability.--A skilled nursing facility 
     that, in denying employment for an applicant (including 
     during the period described in subparagraph (B)(ii)), 
     reasonably relies upon information about such applicant 
     provided by the State pursuant to subsection (e)(6) or 
     section 1128E shall not be liable in any action brought by 
     such applicant based on the employment determination 
     resulting from the information.
       ``(iii) Criminal penalty.--Whoever knowingly violates the 
     provisions of clause (i) shall be fined in accordance with 
     title 18, United States Code, imprisoned for not more than 2 
     years, or both.
       ``(E) Civil penalty.--
       ``(i) In general.--A skilled nursing facility that violates 
     the provisions of this paragraph shall be subject to a civil 
     penalty in an amount not to exceed--

       ``(I) for the first such violation, $2,000; and
       ``(II) for the second and each subsequent violation within 
     any 5-year period, $5,000.

       ``(ii) Knowing retention of worker.--In addition to any 
     civil penalty under clause (i), a skilled nursing facility 
     that--

       ``(I) knowingly continues to employ a skilled nursing 
     facility worker in violation of subparagraph (A) or (B); or
       ``(II) knowingly fails to report a skilled nursing facility 
     worker under subparagraph (C),

     shall be subject to a civil penalty in an amount not to 
     exceed $5,000 for the first such violation, and $10,000 for 
     the second and each subsequent violation within any 5-year 
     period.
       ``(F) Definitions.--In this paragraph:
       ``(i) Conviction for a relevant crime.--The term 
     `conviction for a relevant crime' means any Federal or State 
     criminal conviction for--

       ``(I) any offense described in paragraphs (1) through (4) 
     of section 1128(a); and
       ``(II) such other types of offenses as the Secretary may 
     specify in regulations, taking into account the severity and 
     relevance of such offenses, and after consultation with 
     representatives of long-term care providers, representatives 
     of long-term care employees, consumer advocates, and 
     appropriate Federal and State officials.

       ``(ii) Disqualifying information.--The term `disqualifying 
     information' means information about a conviction for a 
     relevant crime or a finding of patient or resident abuse.
       ``(iii) Finding of patient or resident abuse.--The term 
     `finding of patient or resident abuse' means any 
     substantiated finding by a State agency under subsection 
     (g)(1)(C) or a Federal agency that a skilled nursing facility 
     worker has committed--

       ``(I) an act of patient or resident abuse or neglect or a 
     misappropriation of patient or resident property; or
       ``(II) such other types of acts as the Secretary may 
     specify in regulations.

       ``(iv) Skilled nursing facility worker.--The term `skilled 
     nursing facility worker' means any individual (other than any 
     volunteer) that has direct access to a patient of a skilled 
     nursing facility under an employment or other contract, or 
     both, with such facility. Such term includes individuals who 
     are licensed or certified by the State to provide such 
     services, and nonlicensed individuals providing such 
     services, as defined by the Secretary, including nurse 
     assistants, nurse aides, home health aides, and personal care 
     workers and attendants.''.
       (3) Technical amendments.--Effective as if included in the 
     enactment of section 941 of the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (114 Stat. 
     2763A-585), as enacted into law by section 1(a)(6) of Public 
     Law 106-554, sections 1819(b) and 1919(b) of the Social 
     Security Act (42 U.S.C. 1395i-3(b), 1396r(b)), as amended by 
     such section 941 (as so enacted into law) are each amended by 
     redesignating the paragraph (8) added by such section as 
     paragraph (9).
       (b) State Requirements.--
       (1) Medicaid program.--
       (A) Expansion of state registry to collect information 
     about nursing facility employees other than nurse aides.--
     Section 1919 of the Social Security Act (42 U.S.C. 1396r) is 
     amended--
       (i) in subsection (e)(2)--

       (I) in the paragraph heading, by striking ``Nurse aide 
     registry'' and inserting ``Nursing facility employee 
     registry'';
       (II) in subparagraph (A)--

       (aa) by striking ``By not later than January 1, 1989, the'' 
     and inserting ``The'';
       (bb) by striking ``a registry of all individuals'' and 
     inserting ``a registry of (I) all individuals''; and
       (cc) by inserting before the period ``, and

       (II) all other nursing facility employees with respect to 
     whom the State has made a finding described in subparagraph 
     (B)'';
       (III) in subparagraph (B), by striking ``involving an 
     individual listed in the registry'' and inserting ``involving 
     a nursing facility employee''; and
       (IV) in subparagraph (C), by striking ``nurse aide'' and 
     inserting ``nursing facility employee or applicant for 
     employment''; and

       (ii) in subsection (g)(1)--

       (I) in subparagraph (C)--

       (aa) in the first sentence, by striking ``nurse aide'' and 
     inserting ``nursing facility employee''; and
       (bb) in the third sentence, by striking ``nurse aide'' each 
     place it appears and inserting ``nursing facility employee''; 
     and

       (II) in subparagraph (D)--

       (aa) in the subparagraph heading, by striking ``nurse aide 
     registry'' and inserting ``nursing facility employee 
     registry''; and
       (bb) by striking ``nurse aide'' each place it appears and 
     inserting ``nursing facility employee''.
       (B) Federal and state requirement to conduct background 
     checks.--Section 1919(e) of the Social Security Act (42 
     U.S.C. 1396r(e)) is amended by adding at the end the 
     following:
       ``(8) Federal and state requirements concerning criminal 
     background checks on nursing facility employees.--
       ``(A) In general.--Upon receipt of a request by a nursing 
     facility pursuant to subsection (b)(8) that is accompanied by 
     the information described in subclauses (II) through (IV) of 
     subsection (b)(8)(A)(ii), a State, after checking appropriate 
     State

[[Page 10852]]

     records and finding no disqualifying information (as defined 
     in subsection (b)(8)(F)(ii)), shall submit such request and 
     information to the Attorney General and shall request the 
     Attorney General to conduct a search and exchange of records 
     with respect to the individual as described in subparagraph 
     (B).
       ``(B) Search and exchange of records by attorney general.--
     Upon receipt of a submission pursuant to subparagraph (A), 
     the Attorney General shall direct a search of the records of 
     the Federal Bureau of Investigation for any criminal history 
     records corresponding to the fingerprints and other positive 
     identification information submitted. The Attorney General 
     shall provide any corresponding information resulting from 
     the search to the State.
       ``(C) State reporting of information to nursing facility.--
     Upon receipt of the information provided by the Attorney 
     General pursuant to subparagraph (B), the State shall--
       ``(i) review the information to determine whether the 
     individual has any conviction for a relevant crime (as 
     defined in subsection (b)(8)(F)(i));
       ``(ii) report to the nursing facility the results of such 
     review; and
       ``(iii) in the case of an individual with a conviction for 
     a relevant crime, report the existence of such conviction of 
     such individual to the database established under section 
     1128E.
       ``(D) Fees for performance of criminal background checks.--
       ``(i) Authority to charge fees.--

       ``(I) Attorney general.--The Attorney General may charge a 
     fee to any State requesting a search and exchange of records 
     pursuant to this paragraph and subsection (b)(8) for 
     conducting the search and providing the records. The amount 
     of such fee shall not exceed the lesser of the actual cost of 
     such activities or $50. Such fees shall be available to the 
     Attorney General, or, in the Attorney General's discretion, 
     to the Federal Bureau of Investigation, until expended.
       ``(II) State.--A State may charge a nursing facility a fee 
     for initiating the criminal background check under this 
     paragraph and subsection (b)(8), including fees charged by 
     the Attorney General, and for performing the review and 
     report required by subparagraph (C). The amount of such fee 
     shall not exceed the actual cost of such activities.

       ``(ii) Prohibition on charging applicants or employees.--An 
     entity may not impose on an applicant for employment or an 
     employee any charges relating to the performance of a 
     background check under this paragraph.
       ``(E) Regulations.--
       ``(i) In general.--In addition to the Secretary's authority 
     to promulgate regulations under this title, the Attorney 
     General, in consultation with the Secretary, may promulgate 
     such regulations as are necessary to carry out the Attorney 
     General's responsibilities under this paragraph and 
     subsection (b)(8), including regulations regarding the 
     security, confidentiality, accuracy, use, destruction, and 
     dissemination of information, audits and recordkeeping, and 
     the imposition of fees.
       ``(ii) Appeal procedures.--The Attorney General, in 
     consultation with the Secretary, shall promulgate such 
     regulations as are necessary to establish procedures by which 
     an applicant or employee may appeal or dispute the accuracy 
     of the information obtained in a background check conducted 
     under this paragraph. Appeals shall be limited to instances 
     in which an applicant or employee is incorrectly identified 
     as the subject of the background check, or when information 
     about the applicant or employee has not been updated to 
     reflect changes in the applicant's or employee's criminal 
     record.
       ``(F) Report.--Not later than 2 years after the date of 
     enactment of this paragraph, the Attorney General shall 
     submit a report to Congress on--
       ``(i) the number of requests for searches and exchanges of 
     records made under this section;
       ``(ii) the disposition of such requests; and
       ``(iii) the cost of responding to such requests.''.
       (2) Medicare program.--
       (A) Expansion of state registry to collect information 
     about skilled nursing facility employees other than nurse 
     aides.--Section 1819 of the Social Security Act (42 U.S.C. 
     1395i-3) is amended--
       (i) in subsection (e)(2)--

       (I) in the paragraph heading, by striking ``Nurse aide 
     registry'' and inserting ``Skilled nursing care employee 
     registry'';
       (II) in subparagraph (A)--

       (aa) by striking ``By not later than January 1, 1989, the'' 
     and inserting ``The'';
       (bb) by striking ``a registry of all individuals'' and 
     inserting ``a registry of (I) all individuals''; and
       (cc) by inserting before the period ``, and (II) all other 
     skilled nursing facility employees with respect to whom the 
     State has made a finding described in subparagraph (B)'';

       (III) in subparagraph (B), by striking ``involving an 
     individual listed in the registry'' and inserting ``involving 
     a skilled nursing facility employee''; and
       (IV) in subparagraph (C), by striking ``nurse aide'' and 
     inserting ``skilled nursing facility employee or applicant 
     for employment''; and

       (ii) in subsection (g)(1)--

       (I) in subparagraph (C)--

       (aa) in the first sentence, by striking ``nurse aide'' and 
     inserting ``skilled nursing facility employee''; and
       (bb) in the third sentence, by striking ``nurse aide'' each 
     place it appears and inserting ``skilled nursing facility 
     employee''; and

       (II) in subparagraph (D)--

       (aa) in the subparagraph heading, by striking ``nurse aide 
     registry'' and inserting ``nursing facility employee 
     registry''; and
       (bb) by striking ``nurse aide'' each place it appears and 
     inserting ``nursing facility employee''.
       (B) Federal and state requirement to conduct background 
     checks.--Section 1819(e) of the Social Security Act (42 
     U.S.C. 1395i-3(e)) is amended by adding at the end the 
     following:
       ``(6) Federal and state requirements concerning criminal 
     background checks on skilled nursing facility employees.--
       ``(A) In general.--Upon receipt of a request by a skilled 
     nursing facility pursuant to subsection (b)(8) that is 
     accompanied by the information described in subclauses (II) 
     through (IV) of subsection (b)(8)(A)(ii), a State, after 
     checking appropriate State records and finding no 
     disqualifying information (as defined in subsection 
     (b)(8)(F)(ii)), shall submit such request and information to 
     the Attorney General and shall request the Attorney General 
     to conduct a search and exchange of records with respect to 
     the individual as described in subparagraph (B).
       ``(B) Search and exchange of records by attorney general.--
     Upon receipt of a submission pursuant to subparagraph (A), 
     the Attorney General shall direct a search of the records of 
     the Federal Bureau of Investigation for any criminal history 
     records corresponding to the fingerprints and other positive 
     identification information submitted. The Attorney General 
     shall provide any corresponding information resulting from 
     the search to the State.
       ``(C) State reporting of information to skilled nursing 
     facility.--Upon receipt of the information provided by the 
     Attorney General pursuant to subparagraph (B), the State 
     shall--
       ``(i) review the information to determine whether the 
     individual has any conviction for a relevant crime (as 
     defined in subsection (b)(8)(F)(i));
       ``(ii) report to the skilled nursing facility the results 
     of such review; and
       ``(iii) in the case of an individual with a conviction for 
     a relevant crime, report the existence of such conviction of 
     such individual to the database established under section 
     1128E.
       ``(D) Fees for performance of criminal background checks.--
       ``(i) Authority to charge fees.--

       ``(I) Attorney general.--The Attorney General may charge a 
     fee to any State requesting a search and exchange of records 
     pursuant to this paragraph and subsection (b)(8) for 
     conducting the search and providing the records. The amount 
     of such fee shall not exceed the lesser of the actual cost of 
     such activities or $50. Such fees shall be available to the 
     Attorney General, or, in the Attorney General's discretion, 
     to the Federal Bureau of Investigation until expended.
       ``(II) State.--A State may charge a skilled nursing 
     facility a fee for initiating the criminal background check 
     under this paragraph and subsection (b)(8), including fees 
     charged by the Attorney General, and for performing the 
     review and report required by subparagraph (C). The amount of 
     such fee shall not exceed the actual cost of such activities.

       ``(ii) Prohibition on charging applicants or employees.--An 
     entity may not impose on an applicant for employment or an 
     employee any charges relating to the performance of a 
     background check under this paragraph.
       ``(E) Regulations.--
       ``(i) In general.--In addition to the Secretary's authority 
     to promulgate regulations under this title, the Attorney 
     General, in consultation with the Secretary, may promulgate 
     such regulations as are necessary to carry out the Attorney 
     General's responsibilities under this paragraph and 
     subsection (b)(9), including regulations regarding the 
     security confidentiality, accuracy, use, destruction, and 
     dissemination of information, audits and recordkeeping, and 
     the imposition of fees.
       ``(ii) Appeal procedures.--The Attorney General, in 
     consultation with the Secretary, shall promulgate such 
     regulations as are necessary to establish procedures by which 
     an applicant or employee may appeal or dispute the accuracy 
     of the information obtained in a background check conducted 
     under this paragraph. Appeals shall be limited to instances 
     in which an applicant or employee is incorrectly identified 
     as the subject of the background check, or when information 
     about the applicant or employee has not been updated to 
     reflect changes in the applicant's or employee's criminal 
     record.
       ``(F) Report.--Not later than 2 years after the date of 
     enactment of this paragraph, the Attorney General shall 
     submit a report to Congress on--

[[Page 10853]]

       ``(i) the number of requests for searches and exchanges of 
     records made under this section;
       ``(ii) the disposition of such requests; and
       ``(iii) the cost of responding to such requests.''.
       (c) Application to Other Entities Providing Home Health or 
     Long-Term Care Services.--
       (1) Medicaid.--Section 1902(a) of the Social Security Act 
     (42 U.S.C. 1396a) is amended--
       (A) in paragraph (65), by striking the period and inserting 
     ``; and''; and
       (B) by inserting after paragraph (65) the following:
       ``(66) provide that any entity that is eligible to be paid 
     under the State plan for providing home health services or 
     long-term care services for which medical assistance is 
     available under the State plan to individuals requiring long-
     term care complies with the requirements of subsections 
     (b)(8) and (e)(8) of section 1919.''.
       (2) Medicare.--Part D of title XVIII of the Social Security 
     Act (42 U.S.C. 1395x et seq.) is amended by adding at the end 
     the following:


 ``APPLICATION OF SKILLED NURSING FACILITY PREVENTIVE ABUSE PROVISIONS 
 TO ANY PROVIDER OF SERVICES OR OTHER ENTITY PROVIDING HOME HEALTH OR 
                        LONG-TERM CARE SERVICES

       ``Sec. 1897. The requirements of subsections (b)(8) and 
     (e)(6) of section 1819 shall apply to any provider of 
     services or any other entity that is eligible to be paid 
     under this title for providing home health services or long-
     term care services to an individual entitled to benefits 
     under part A or enrolled under part B (including an 
     individual provided with a Medicare+Choice plan offered by a 
     Medicare+Choice organization under part C).''.
       (d) Reimbursement of Reasonable Costs for Background 
     Checks.--The Secretary of Health and Human Services shall 
     factor into any payment system under titles XVIII and XIX of 
     the Social Security Act the reasonable costs of the 
     requirements of sections 1819(b)(8) and 1919(b)(8) of such 
     Act, as added by this section, incurred by any entity subject 
     to such requirements.

     SEC. 3. INCLUSION OF ABUSIVE WORKERS IN THE DATABASE 
                   ESTABLISHED AS PART OF NATIONAL HEALTH CARE 
                   FRAUD AND ABUSE DATA COLLECTION PROGRAM.

       (a) Inclusion of Abusive Acts Within a Long-Term Care 
     Facility or Provider.--Section 1128E(g)(1)(A) of the Social 
     Security Act (42 U.S.C. 1320a-7e(g)(1)(A)) is amended--
       (1) by redesignating clause (v) as clause (vi); and
       (2) by inserting after clause (iv), the following:
       ``(v) A finding of abuse or neglect of a patient or a 
     resident of a long-term care facility, or misappropriation of 
     such a patient's or resident's property.''.
       (b) Coverage of Long-Term Care Facility or Provider 
     Employees.--Section 1128E(g)(2) of the Social Security Act 
     (42 U.S.C. 1320a-7e(g)(2)) is amended by inserting ``, and 
     includes any individual of a long-term care facility or 
     provider (other than any volunteer) that has direct access to 
     a patient or resident of such a facility under an employment 
     or other contract, or both, with the facility or provider 
     (including individuals who are licensed or certified by the 
     State to provide services at the facility or through the 
     provider, and nonlicensed individuals, as defined by the 
     Secretary, providing services at the facility or through the 
     provider, including nurse assistants, nurse aides, home 
     health aides, and personal care workers and attendants)'' 
     before the period.
       (c) Reporting by Long-Term Care Facilities or Providers.--
       (1) In general.--Section 1128E(b)(1) of the Social Security 
     Act (42 U.S.C. 1320a-7e(b)(1)) is amended by striking ``and 
     health plan'' and inserting ``, health plan, and long-term 
     care facility or provider''.
       (2) Correction of information.--Section 1128E(c)(2) of the 
     Social Security Act (42 U.S.C. 1320a-7e(c)(2)) is amended by 
     striking ``and health plan'' and inserting ``, health plan, 
     and long-term care facility or provider''.
       (d) Access to Reported Information.--Section 1128E(d)(1) of 
     the Social Security Act (42 U.S.C. 1320a-7e(d)(1)) is amended 
     by striking ``and health plans'' and inserting ``, health 
     plans, and long-term care facilities or providers''.
       (e) Mandatory Check of Database by Long-Term Care 
     Facilities or Providers.--Section 1128E(d) of the Social 
     Security Act (42 U.S.C. 1320a-7e(d)) is amended by adding at 
     the end the following:
       ``(3) Mandatory check of database by long-term care 
     facilities or providers.--A long-term care facility or 
     provider shall check the database maintained under this 
     section prior to hiring under an employment or other 
     contract, or both, any individual as an employee of such a 
     facility or provider who will have direct access to a patient 
     or resident of the facility or provider (including 
     individuals who are licensed or certified by the State to 
     provide services at the facility or through the provider, and 
     nonlicensed individuals, as defined by the Secretary, that 
     will provide services at the facility or through the 
     provider, including nurse assistants, nurse aides, home 
     health aides, and personal care workers and attendants).''.
       (f) Definition of Long-Term Care Facility or Provider.--
     Section 1128E(g) of the Social Security Act (42 U.S.C. 1320a-
     7e(g)) is amended by adding at the end the following:
       ``(6) Long-term care facility or provider.--The term `long-
     term care facility or provider' means a skilled nursing 
     facility (as defined in section 1819(a)), a nursing facility 
     (as defined in section 1919(a)), a home health agency, a 
     hospice facility, an intermediate care facility for the 
     mentally retarded (as defined in section 1905(d)), or any 
     other facility that provides, or provider of, long-term care 
     services or home health services and receives payment for 
     such services under the medicare program under title XVIII or 
     the medicaid program under title XIX.''.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the amendments made by this 
     section, $10,200,000 for fiscal year 2002.

     SEC. 4. PREVENTION AND TRAINING DEMONSTRATION PROJECT.

       (a) Establishment.--The Secretary of Health and Human 
     Services shall establish a demonstration program to provide 
     grants to develop information on best practices in patient 
     abuse prevention training (including behavior training and 
     interventions) for managers and staff of hospital and health 
     care facilities.
       (b) Eligibility.--To be eligible to receive a grant under 
     subsection (a), an entity shall be a public or private 
     nonprofit entity and prepare and submit to the Secretary of 
     Health and Human Services an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (c) Use of Funds.--Amounts received under a grant under 
     this section shall be used to--
       (1) examine ways to improve collaboration between State 
     health care survey and provider certification agencies, long-
     term care ombudsman programs, the long-term care industry, 
     and local community members;
       (2) examine patient care issues relating to regulatory 
     oversight, community involvement, and facility staffing and 
     management with a focus on staff training, staff stress 
     management, and staff supervision;
       (3) examine the use of patient abuse prevention training 
     programs by long-term care entities, including the training 
     program developed by the National Association of Attorneys 
     General, and the extent to which such programs are used; and
       (4) identify and disseminate best practices for preventing 
     and reducing patient abuse.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 5. EFFECTIVE DATE.

       The provisions of and amendments made by the Act shall 
     apply, without regard to whether implementing regulations are 
     in effect, to any individual applying for employment or hired 
     for such employment--
       (1) by any skilled nursing facility (as defined in section 
     1819(a) of the Social Security Act) or any nursing facility 
     (as defined in section 1919(a) of such Act), on or after the 
     date which is 6 months after the date of enactment of this 
     Act,
       (2) by any home health agency, on or after the date which 
     is 12 months after such date of enactment, and
       (3) by any hospice facility, any intermediate care facility 
     for the mentally retarded (as defined in section 1905(d) of 
     the Social Security Act), or any other facility that provides 
     long-term care services and receives payment for such 
     services under the medicare program under title XVIII of such 
     Act or the medicaid program under title XIX of such Act, on 
     or after the date which is 18 months after such date of 
     enactment.
                                 ______
                                 
      By Mrs. FEINSTEIN:
  S. 1055. A bill to require the consent of an individual prior to the 
sale and marketing of such individual's personally identifiable 
information, and for other purposes; to the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, I am pleased today to introduce the 
Privacy Act of 2001.
  This legislation combats the growing scourge of identity theft and 
other privacy abuses by setting a national standard for privacy 
protection.
  The bill has a simple goal. It is designed to give back to ordinary 
citizens control over their personal information.
  Under the Privacy Act of 2001, if a company intends to collect and 
sell a customer's address, phone number, or other non-sensitive 
information, the company must give the customer notice and an 
opportunity to opt-out of the sale if they so choose.
  For especially sensitive personal information such as financial, 
health, driver's licenses, and Social Security Numbers, the legislation 
establishes more stringent privacy protections.

[[Page 10854]]

  Specifically, the bill requires an individual's opt-in prior to the 
sale, licensing, or renting of their personal financial or health 
information.
  In other words, opt-in means that a person must give their explicit 
and affirmative consent before an entity can use this type of personal 
information.
  The bill would also close loopholes in the Driver's Privacy 
Protection Act, most recently amended last year, so that a State 
Department of Motor Vehicles can no longer disclose the most sensitive 
information on a driver's license, such as the driver's identification 
number or physical characteristics, without the driver's opt-in.
  Finally, the bill would restrict the purchase, sale, and display of 
Social Security numbers to the general public.
  Why do we need a Federal privacy law?
  The new economy has exponentially increased the flow of personal 
information, but the protections for individual privacy have not kept 
pace.
  With access to sensitive data so widely available, often just at the 
touch of a keyboard, identity theft has become one of the country's 
fastest growing crimes.
  Identity theft is when a thief steals your personal information and 
then uses it to run up huge bills on your credit cards, bank accounts 
or other accounts. In some cases, identity theft has also resulted in 
stalking and murder.
  Recent statistics on the growth of identity theft suggest we have no 
time to waste in protecting personal privacy.
  The Federal Bureau of Investigation estimates 350,000 cases of 
identity theft occur each year. That's one case every two minutes.
  Not surprisingly, members of the public have flooded our Federal 
agencies with pleas for assistance. Reports to the Social Security 
Administration of Social Security number misuse have increased from 
7,868 in 1997 to 46,839 in 2000, an astonishing increase of over 500 
percent.
  The Federal Trade Commission, FTC, has experienced a similar 
explosion of cases. If recent trends continue, reports of identity 
theft to the Federal Trade Commission will double between 2000 and 
2001, to over 60,000 cases.
  Fully 40 percent of all consumer fraud complaints received by the FTC 
in the first three months of 2001 involved identity theft.
  Unfortunately, the State most affected by these complaints is 
California. Fully 17 percent of the identity theft complaints the FTC 
received this past winter came from my home state.
  Let me give some real-world examples of privacy abuses:
  Social Security Number Privacy: Amy Boyer, a 20-year-old dental 
assistant from Maine was killed in 1999 by a stalker who bought her 
Social Security number off the Internet for $45, and then used it to 
locate her work address.
  Identity Theft No. 1: Michelle Brown of Los Angeles, California, had 
her Social Security number stolen in 1999, and it was used to charge 
$50,000 including a $32,000 truck, a $5,000 liposuction operation, and 
a year-long residential lease.
  While assuming the victim's name, the perpetrator also became the 
object of an arrest warrant for drug smuggling in Texas.
  Identity Theft No. 2: An identity theft ring in Riverside County 
allegedly bilked eight victims of $700,000. The thieves stole personal 
information of employees at a large phone company and drained their on-
line stock accounts.
  One employee reportedly had $285,000 taken from his account when 
someone was able to access his account by supplying the employee's name 
and Social Security number.
  Financial Privacy: In a September 14, 1999 editorial, the Los Angeles 
Times described how a small San Fernando Valley bank, ``sold 3.7 
million credit card numbers to a felon, who then bilked cardholders out 
of millions of dollars.'' According to the article, the bank was not 
held liable for this action.
  It is also astonishing what some data marketers are now providing to 
their customers.
  According to the Los Angeles Times, some marketing companies have 
started selling lists of as many as 120 million households which 
include names, addresses, and phone numbers, estimated income, marital 
status, buying habits and hobbies.
  Similarly, a medical information service has made databases available 
to its customers which contain the phone number, gender and address of: 
3.3 million people with allergies, 3.0 million people with heartburn, 
850,000 with yeast infections, 450,000 people with incontinence, and 
368,000 people who suffer clinical depression.
  As a result, we have seen privacy become the top consumer protection 
issue.
  The bill I am introducing today, the Privacy Act of 2001, contains 
two bedrock principles.
  Privacy legislation should not discriminate against any system of 
communication.
  If personal information deserves protection, it deserves protection 
however it is collected. It should not matter whether personal data is 
collected in person, over the phone, or on the Internet.
  Nevertheless, some privacy bills have exclusively targeted Internet 
transactions. There is no justification for discriminating against high 
technology companies by imposing Internet-specific privacy rules.
  Companies operating on the Internet should not have any more duties 
to protect privacy than businesses extracting information from warranty 
cards or mail catalogues.
  Not all personal information deserves the same level of privacy 
protection.
  Some information like Social Security numbers, motor vehicle records, 
personal financial information, and medical information deserve higher 
levels of privacy protection.
  With regard to the first principle, the Privacy Act of 2001 protects 
the privacy of information regardless of the medium through which it is 
collected.
  Other privacy proposals have tried to confine privacy legislation to 
the Internet.
  These proposals unfairly discriminate against high technology users. 
Put simply, companies and other entities can misuse personal 
information from off-line sources just as easily as with on-line 
sources.
  Why should a company extracting data from a warranty card have any 
less of a duty to protect personal privacy than a company collecting 
personal data on-line?
  For example, telemarketers who besiege consumers with phone calls 
during the dinner hour get much of their personal information used from 
consumers filling out and mailing back warranty and registration cards. 
But these warranty cards give consumers no notice about how their 
personal information will be used.
  Consider the case of Anne Marie Levine, a Virginia resident, who 
entered a raffle to win a new car.
  The sponsor of the raffle, unbeknownst to Ms. Levine, sold the 
personal information on her raffle ticket. In the next two weeks, she 
received calls from a host of jeep dealers in the area.
  While some may consider unsolicited marketing calls a mere annoyance, 
Ms. Levine was outraged, as I'm sure many Americans would be, that the 
auto dealer sold her personal information without her permission.
  Moreover, with the advent of digital scanners, digital photography, 
and data processing, the distinctions between on-line and off-line 
transactions are already blurring.
  With regard to the second principle, the Privacy Act of 2001 
recognizes that not all categories of personal information merit the 
same level of protection.
  The bill requires businesses intending to collect and sell 
nonsensitive personal information, eg. name, phone number, address, to 
nonaffiliated third parties to give customers notice and the 
opportunity to opt-out of the sale.
  The opt-out standard for non-sensitive information ensures that if a 
person fills out a warranty card, sign-up for a computer service, or 
submit an entry for a sweepstakes, the business must notify him before 
it sells his personal information to other businesses or marketers.

[[Page 10855]]

  This framework guarantees basic privacy protections for consumers 
without unduly impacting commerce.
  To eliminate unnecessary burdens on businesses, the legislation sets 
up a safe harbor for businesses which appropriately use nonsensitive 
personal information. Industries and industry-sponsored seal programs 
which have already adopted Notice-and-Opt Out information policies will 
be exempt.
  The bill also sets a national standard for the sale or marketing of 
nonsensitive personal information.
  Federal preemption is needed because a jumbled patchwork of State 
privacy laws helps neither businesses nor consumers. Conflicting State 
laws lead to consumer confusion about privacy rights.
  For example, if one logs onto an Internet site, which State law 
governs: the law of the State of the computer user, the law where the 
website is being operated, or the law of the State of the manufacturer 
of a product?
  Similarly, a patchwork of 50 State privacy laws, would pose a 
logistical nightmare for corporate America.
  Without Federal preemption, businesses will face the unsavory choice 
of either adopting, for consistency's sake, privacy guidelines that 
comply with the strictest state privacy law, or dealing with the costs 
and paperwork imposed by 50 different state privacy laws.
  For especially sensitive personal data, like financial data, medical 
data, or a driver's license, the bill pushes for an opt-in model of 
consent.
  I believe people should have control over how their most sensitive 
information is used. In the absence of a customer's express permission, 
company's should not market or sell sensitive personal data.
  To create this opt-in standard, this legislation builds upon the 
existing lattice-work of Federal privacy laws.
  For example, the bill modifies the recently enacted Gramm-Leach-
Bliley Financial Services Modernization Act by requiring an opt-in for 
the sale of personal financial information.
  Presently, under the Gramm-Leach-Bliley Act, a bank must give a 
customer notice and the opportunity to opt-out before the bank can 
disclose private financial information to non-affiliated third parties.
  This legislation would impose a stricter standard if the bank tries 
to sell the information. Any bank that sells personal financial 
information to non-affiliated third parties would have to get the prior 
consent of the customer, OPT-in.
  Similarly, this bill strengthens the privacy protections for personal 
health data.
  The newly enacted Department of Health and Human Services privacy 
regulations set a basic opt-in framework for disclosure of health 
information. I recognize that the rules are being revised by the Bush 
administration, so any discussion of health privacy must necessarily 
contemplate a moving target.
  Nevertheless, the current version of the regulation has loopholes 
that limit patient privacy.
  The regulations only prohibit ``covered entities'', namely health 
insurers, health providers, and health care clearinghouses, from 
selling a patient's health information without that patient's prior 
consent, an Opt-in Model.
  Meanwhile, non-covered entities such as business associates, health 
researchers, schools or universities, and life insurers are not subject 
to this opt-in requirement, except through contractual arrangements.
  My bill would preserve the privacy of health information wherever the 
information is sold. Any life insurer, school or non-covered entity 
trying to sell protected health information would have to get the 
patient's consent.
  In addition, the bill would require entities to obtain a patient's 
approval before using ``protected health information'' for marketing 
purposes.
  This legislation builds on existing law to protect the information on 
our drivers' licenses.
  With its recent amendments, the Driver's Privacy Protection Act, 
DPPA, offers some meaningful protections for drivers privacy.
  For example, under the DPPA, a State Department of Motor Vehicles 
must obtain the prior consent, Opt-in of the driver before ``highly 
restricted personal information'', defined as the driver's photograph, 
image, Social Security number, medical or disability information, can 
be disclosed to a third party.
  However, loopholes remain. Other sensitive information found on a 
driver's license deserves equal protection.
  This legislation would expand the definition of ``highly restricted 
personal'' to include a physical copy of a driver's license, the driver 
identification number, birth date, information on the driver's physical 
characteristics and any biometric identifiers like a fingerprint that 
are found on the driver's license.
  Thus, this bill would ensure consumers have control over how their 
motor vehicle records and driver's license data are used.
  I would like to take a moment to highlight Title II of this 
legislation, which reflects a compromise with Senator Gregg on the 
privacy of Social Security numbers.
  It is so crucial to protect Social Security Numbers because these are 
the key to unlocking a person's identity.
  Many identity theft cases start with the theft of a Social Security 
number.
  Once a thief has access to a victim's Social Security number, it is 
only a short step to acquiring credit cards, driver's licenses, or 
other crucial identification documents.
  The Feinstein/Gregg compromise bars the sale or display of Social 
Security numbers to the public except in a very narrow set of 
circumstances.
  Display or sale is permitted if the Social Security Number holder 
gives consent or if there are compelling public safety needs.
  For the first time, Federal, State, and local governments will have 
to redact Social Security numbers on government records before these 
records are provided to the public.
  Thus, enterprising identity thieves no longer can scour bankruptcy 
records, liens, marriage certificates, or other public documents to 
steal Social Security Numbers.
  Moreover, State governments will no longer be permitted to use the 
Social Security number as the default driver's license number.
  The legislation, however, recognizes that some industries, like 
banks, rely on Social Security Numbers to exchange information between 
databases and complete identification verification necessary for 
certain transactions.
  It permits the sale or purchase of Social Security Numbers to 
facilitate business-to-business transactions so long as businesses put 
appropriate safeguards in place and do not permit public access to the 
number.
  Some critics of privacy legislation argue it will impede commerce. I 
disagree. A reasonable baseline of privacy laws will stimulate 
commerce. On the Internet, for example, fear of identity theft has 
impeded consumer transactions.
  One study of e-commerce estimates consumer privacy fears prevented up 
to $2.8 billion in online retail sales in 1999. Another study suggests 
that, by 2002, over $18 billion of lost sales can be attributed to 
consumer privacy concerns.
  This legislation codifies steps Congress can take to protect citizens 
from identity thieves and other predators of personal information.
  It restores to individuals more control over their most sensitive 
personal information such as Social Security numbers, driver's license 
information, health information, and financial information.
  The legislation sets reasonable guidelines for businesses that handle 
our personal information every day, like credit card companies, 
hospitals, and banks.
  Our Nation is rushing toward an information economy that will yield 
unprecedented economic efficiencies.
  The commercial benefits of the new economy are unquestionable. But, 
in our rush to embrace the new, we must remember to protect the core 
Democratic values on which our country depends.
  Every American has a fundamental right to privacy, no matter how fast 
our technology grows or changes.

[[Page 10856]]

  But our right to privacy only will remain vital, if we take strong 
action to protect it.
  I look forward to working with my colleagues to enact the Privacy Act 
of 2001.
  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. 1055

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Privacy 
     Act of 2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

   TITLE I--COMMERCIAL SALE AND MARKETING OF PERSONALLY IDENTIFIABLE 
                              INFORMATION

Sec. 101. Collection and distribution of personally identifiable 
              information.
Sec. 102. Enforcement.
Sec. 103. Safe harbor.
Sec. 104. Definitions.
Sec. 105. Preemption.
Sec. 106. Effective Date.

        TITLE II--LIMITATIONS ON USE OF SOCIAL SECURITY NUMBERS

Sec. 201. Findings.
Sec. 202. Prohibition of the display, sale, or purchase of social 
              security numbers.
Sec. 203. No prohibition with respect to public records.
Sec. 204. Rulemaking authority of the Attorney General.
Sec. 205. Treatment of social security numbers on government documents.
Sec. 206. Limits on personal disclosure of a social security number for 
              consumer transactions.
Sec. 207. Extension of civil monetary penalties for misuse of a social 
              security number.

   TITLE III--LIMITATIONS ON SALE AND SHARING OF NONPUBLIC PERSONAL 
                         FINANCIAL INFORMATION

Sec. 301. Definition of sale.
Sec. 302. Rules applicable to sale of nonpublic personal information.
Sec. 303. Exceptions to sale prohibition.
Sec. 304. Effective date.

 TITLE IV--LIMITATIONS ON THE PROVISION OF PROTECTED HEALTH INFORMATION

Sec. 401. Definitions.
Sec. 402. Prohibition against selling protected health information.
Sec. 403. Authorization for sale of protected health information.
Sec. 404. Prohibition against retaliation.
Sec. 405. Prohibition against marketing protected health information.
Sec. 406. Rule of construction.
Sec. 407. Regulations.
Sec. 408. Enforcement.

                   TITLE V--DRIVER'S LICENSE PRIVACY

Sec. 501. Driver's license privacy.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Enforcement by State Attorneys General.
Sec. 602. Federal injunctive authority.

   TITLE I--COMMERCIAL SALE AND MARKETING OF PERSONALLY IDENTIFIABLE 
                              INFORMATION

     SEC. 101. COLLECTION AND DISTRIBUTION OF PERSONALLY 
                   IDENTIFIABLE INFORMATION.

       (a) Prohibition.--
       (1) In general.--It is unlawful for a commercial entity to 
     collect personally identifiable information and disclose such 
     information to any nonaffiliated third party for marketing 
     purposes or sell such information to any nonaffiliated third 
     party, unless the commercial entity provides--
       (A) notice to the individual to whom the information 
     relates in accordance with the requirements of subsection 
     (b); and
       (B) an opportunity for such individual to restrict the 
     disclosure or sale of such information.
       (2) Exception.--A commercial entity may collect personally 
     identifiable information and use such information to market 
     to potential customers such entity's product.
       (b) Notice.--
       (1) In general.--A notice under subsection (a) shall 
     contain statements describing the following:
       (A) The identity of the commercial entity collecting the 
     personally identifiable information.
       (B) The types of personally identifiable information that 
     are being collected on the individual.
       (C) How the commercial entity may use such information.
       (D) A description of the categories of potential recipients 
     of such personally identifiable information.
       (E) Whether the individual is required to provide 
     personally identifiable information in order to do business 
     with the commercial entity.
       (F) How an individual may decline to have such personally 
     identifiable information used or sold as described in 
     subsection (a).
       (2) Time of notice.--Notice shall be conveyed prior to the 
     sale or use of the personally identifiable information as 
     described in subsection (a) in such a manner as to allow the 
     individual a reasonable period of time to consider the notice 
     and limit such sale or use.
       (3) Medium of notice.--The medium for providing notice must 
     be--
       (A) the same medium in which the personally identifiable 
     information is or will be collected, or a medium approved by 
     the individual; or
       (B) in the case of oral communication, notice may be 
     conveyed orally or in writing.
       (4) Form of notice.--The notice shall be clear and 
     conspicuous.
       (c) Opt-Out.--
       (1) Opportunity to opt-out of sale or marketing.--The 
     opportunity provided to limit the sale of personally 
     identifiable information to nonaffiliated third parties or 
     the disclosure of such information for marketing purposes, 
     shall be easy to use, accessible and available in the medium 
     the information is collected, or in a medium approved by the 
     individual.
       (2) Duration of limitation.--An individual's limitation on 
     the sale or marketing of personally identifiable information 
     shall be considered permanent, unless otherwise specified by 
     the individual.
       (3) Revocation of consent.--After an individual grants 
     consent to the use of that individual's personally 
     identifiable information, the individual may revoke the 
     consent at any time, except to the extent that the commercial 
     entity has taken action in reliance thereon. The commercial 
     entity shall provide the individual an opportunity to revoke 
     consent that is easy to use, accessible, and available in the 
     medium the information was or is collected.
       (4) Not applicable.--This section shall not apply to 
     disclosure of personally identifiable information--
       (A) that is necessary to facilitate a transaction 
     specifically requested by the consumer;
       (B) is used for the sole purpose of facilitating this 
     transaction; and
       (C) in which the entity receiving or obtaining such 
     information is limited, by contract, to use such formation 
     for the purpose of completing the transaction.

     SEC. 102. ENFORCEMENT.

       (a) In General.--In accordance with the provisions of this 
     section, the Federal Trade Commission shall have the 
     authority to enforce any violation of section 101 of this 
     Act.
       (b) Violations.--The Federal Trade Commission shall treat a 
     violation of section 101 as a violation of a rule under 
     section 18a(a)(1)(B) of the Federal Trade Commission Act (15 
     U.S.C. 57a(a)(1)(B)).
       (c) Transfer of Enforcement Authority.--The Federal Trade 
     Commission shall promulgate rules in accordance with section 
     553 of title 5, United States Code, allowing for the transfer 
     of enforcement authority from the Federal Trade Commission to 
     a Federal agency regarding section 101 of this Act. The 
     Federal Trade Commission may permit a Federal agency to 
     enforce any violation of section 101 if such agency submits a 
     written request to the Commission to enforce such violations 
     and includes in such request--
       (1) a description of the entities regulated by such agency 
     that will be subject to the provisions of section 101;
       (2) an assurance that such agency has sufficient authority 
     over the entities to enforce violations of section 101; and
       (3) a list of proposed rules that such agency shall use in 
     regulating such entities and enforcing section 101.
       (d) Actions by the Commission.--Absent transfer of 
     enforcement authority to a Federal agency under subsection 
     (c), the Federal Trade Commission shall prevent any person 
     from violating section 101 in the same manner, by the same 
     means, and with the same jurisdiction, powers, and duties as 
     provided to such Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.). Any entity that 
     violates section 101 is subject to the penalties and entitled 
     to the privileges and immunities provided in such Act in the 
     same manner, by the same means, and with the same 
     jurisdiction, power, and duties under such Act.
       (e) Relationship to Other Laws.--
       (1) Commission authority.--Nothing contained in this title 
     shall be construed to limit authority provided to the 
     Commission under any other law.
       (2) Communications act.--Nothing in section 101 requires an 
     operator of a website to take any action that is inconsistent 
     with the requirements of section 222 or 631 of the 
     Communications Act of 1934 (47 U.S.C. 222 and 5551).
       (3) Other acts.--Nothing in this title is intended to 
     affect the applicability or the enforceability of any 
     provision of, or any amendment made by--
       (A) the Children's Online Privacy Protection Act of 1998 
     (15 U.S.C. 6501 et seq.);
       (B) title V of the Gramm-Leach-Bliley Act;
       (C) the Health Insurance Portability and Accountability Act 
     of 1996; or

[[Page 10857]]

       (D) the Fair Credit Reporting Act.
       (f) Public Records.--Nothing in this title shall be 
     construed to restrict commercial entities from obtaining or 
     disclosing personally identifying information from public 
     records.
       (g) Civil Penalties.--In addition to any other penalty 
     applicable to a violation of section 101(a), a penalty of up 
     to $25,000 may be issued for each violation.
       (h) Enforcement Regarding Programs.--
       (1) In general.--A Federal agency or department providing 
     financial assistance to any entity required to comply with 
     section 101 of this Act shall issue regulations requiring 
     that such entity comply with such section or forfeit some or 
     all of such assistance. Such regulations shall prescribe 
     sanctions for noncompliance, require that such department or 
     agency provide notice of failure to comply with such section 
     prior to any action being taken against such recipient, and 
     require that a determination be made prior to any action 
     being taken against such recipient that compliance cannot be 
     secured by voluntary means.
       (2) Federal financial assistance.--The term ``Federal 
     financial assistance'' means assistance through a grant, 
     cooperative agreement, loan, or contract other than a 
     contract of insurance or guaranty.

     SEC. 103. SAFE HARBOR.

       A commercial entity may not be held to have violated any 
     provision of this title if such entity complies with self-
     regulatory guidelines that--
       ``(1) are issued by seal programs or representatives of the 
     marketing or online industries or by any other person; and
       ``(2) are approved by the Federal Trade Commission, after 
     public comment has been received on such guidelines by the 
     Commission, as meeting the requirements of this title.

     SEC. 104. DEFINITIONS.

       In this title:
       (1) Commercial entity.--The term ``commercial entity''--
       (A) means any person offering products or services 
     involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--

       (I) another such territory; or
       (II) any State or foreign nation; or

       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; and
       (B) does not include--
       (i) any nonprofit entity that would otherwise be exempt 
     from coverage under section 5 of the Federal Trade Commission 
     Act (15 U.S.C. 45);
       (ii) any financial institution that is subject to title V 
     of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.); or
       (iii) any group health plan, health insurance issuer, or 
     other entity that is subject to the Health Insurance 
     Portability and Accountability Act of 1996 (42 U.S.C. 201 
     note).
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) Individual.--The term ``individual'' means a person 
     whose personally identifying information has been, is, or 
     will be collected by a commercial entity.
       (4) Marketing.--The term ``marketing'' means to make a 
     communication about a product or service a purpose of which 
     is to encourage recipients of the communication to purchase 
     or use the product or service.
       (5) Medium.--The term ``medium'' means any channel or 
     system of communication including oral, written, and online 
     communication.
       (6) Nonaffiliated third party.--The term ``nonaffiliated 
     third party'' means any entity that is not related by common 
     ownership or affiliated by corporate control with, the 
     commercial entity, but does not include a joint employee of 
     such institution.
       (7) Personally identifiable information.--The term 
     ``personally identifiable information'' means individually 
     identifiable information about the individual that is 
     collected including--
       (A) a first, middle, or last name, whether given at birth 
     or adoption, assumed, or legally changed;
       (B) a home or other physical address, including the street 
     name, zip code, and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a photograph or other form of visual identification;
       (F) a birth date, birth certificate number, or place of 
     birth for that person; or
       (G) information concerning the individual that is combined 
     with any other identifier in this paragraph.
       (8) Sale; Sell; Sold.--The terms ``sale'', ``sell'', and 
     ``sold'', with respect to personally identifiable 
     information, mean the exchanging of such information for any 
     thing of value, directly or indirectly, including the 
     licensing, bartering, or renting of such information.
       (9) Writing.--The term ``writing'' means writing in either 
     a paper-based or computer-based form, including electronic 
     and digital signatures.

     SEC. 105. PREEMPTION.

       The provisions of this title shall supersede any statutory 
     and common law of States and their political subdivisions 
     insofar as that law may now or hereafter relate to the--
       (1) collection and disclosure of personally identifiable 
     information for marketing purposes; and
       (2) collection and sale of personally identifiable 
     information.

     SEC. 106. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect 1 year after the date of enactment of this Act.

        TITLE II--LIMITATIONS ON USE OF SOCIAL SECURITY NUMBERS

     SEC. 201. FINDINGS.

       Congress makes the following findings:
       (1) The inappropriate display, sale, or purchase of social 
     security numbers has contributed to a growing range of 
     illegal activities, including fraud, identity theft, and, in 
     some cases, stalking and other violent crimes.
       (2) While financial institutions, health care providers, 
     and other entities have often used social security numbers to 
     confirm the identity of an individual, the general display to 
     the public, sale, or purchase of these numbers has been used 
     to commit crimes, and also can result in serious invasions of 
     individual privacy.
       (3) The Federal Government requires virtually every 
     individual in the United States to obtain and maintain a 
     social security number in order to pay taxes, to qualify for 
     social security benefits, or to seek employment. An 
     unintended consequence of these requirements is that social 
     security numbers have become tools that can be used to 
     facilitate crime, fraud, and invasions of the privacy of the 
     individuals to whom the numbers are assigned. Because the 
     Federal Government created and maintains this system, and 
     because the Federal Government does not permit individuals to 
     exempt themselves from those requirements, it is appropriate 
     for the Federal Government to take steps to stem the abuse of 
     this system.
       (4) A social security number does not contain, reflect, or 
     convey any publicly significant information or concern any 
     public issue. The display, sale, or purchase of such numbers 
     in no way facilitates uninhibited, robust, and wide-open 
     public debate, and restrictions on such display, sale, or 
     purchase would not affect public debate.
       (5) No one should seek to profit from the display, sale, or 
     purchase of social security numbers in circumstances that 
     create a substantial risk of physical, emotional, or 
     financial harm to the individuals to whom those numbers are 
     assigned.
       (6) Consequently, this Act offers each individual that has 
     been assigned a social security number necessary protection 
     from the display, sale, and purchase of that number in any 
     circumstance that might facilitate unlawful conduct.

     SEC. 202. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF 
                   SOCIAL SECURITY NUMBERS.

       (a) Prohibition.--
       (1) In general.--Chapter 47 of title 18, United States 
     Code, is amended by inserting after section 1028 the 
     following:

     ``Sec. 1028A. Prohibition of the display, sale, or purchase 
       of social security numbers

       ``(a) Definitions.--In this section:
       ``(1) Display.--The term `display' means to intentionally 
     communicate or otherwise make available (on the Internet or 
     in any other manner) to the general public an individual's 
     social security number.
       ``(2) Person.--The term `person' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or any other entity.
       ``(3) Purchase.--The term `purchase' means providing 
     directly or indirectly, anything of value in exchange for a 
     social security number.
       ``(4) Sale.--The term `sale' means obtaining, directly or 
     indirectly, anything of value in exchange for a social 
     security number.
       ``(5) State.--The term `State' means any State of the 
     United States, the District of Columbia, Puerto Rico, the 
     Northern Mariana Islands, the United States Virgin Islands, 
     Guam, American Samoa, and any territory or possession of the 
     United States.
       ``(b) Limitation on Display.--Except as provided in section 
     1028B, no person may display any individual's social security 
     number to the general public without the affirmatively 
     expressed consent of the individual.
       ``(c) Limitation on Sale or Purchase.--Except as otherwise 
     provided in this section, no person may sell or purchase any 
     individual's social security number without the affirmatively 
     expressed consent of the individual.
       ``(d) Prohibition of Wrongful Use as Personal 
     Identification Number.--No person may obtain any individual's 
     social security number for purposes of locating or 
     identifying an individual with the intent to physically 
     injure, harm, or use the identity of the individual for any 
     illegal purpose.
       ``(e) Prerequisites for Consent.--In order for consent to 
     exist under subsection (b) or (c), the person displaying or 
     seeking to display, selling or attempting to sell, or 
     purchasing or attempting to purchase, an individual's social 
     security number shall--
       ``(1) inform the individual of the general purpose for 
     which the number will be used, the types of persons to whom 
     the number may be available, and the scope of transactions 
     permitted by the consent; and

[[Page 10858]]

       ``(2) obtain the affirmatively expressed consent 
     (electronically or in writing) of the individual.
       ``(f) Exceptions.--
       ``(1) In general.--Except as provided in subsection (d), 
     nothing in this section shall be construed to prohibit or 
     limit the display, sale, or purchase of a social security 
     number--
       ``(A) permitted, required, or excepted, expressly or by 
     implication, under section 205(c)(2), 1124A(a)(3), or 1141(c) 
     of the Social Security Act (42 U.S.C. 405(c)(2), 1320a-
     3a(a)(3), and 1320b-11(c)), section 7(a)(2) of the Privacy 
     Act of 1974 (5 U.S.C. 552a note), section 6109(d) of the 
     Internal Revenue Code of 1986, or section 6(b)(1) of the 
     Professional Boxing Safety Act of 1996 (15 U.S.C. 
     6305(b)(1));
       ``(B) for a public health purpose, including the protection 
     of the health or safety of an individual in an emergency 
     situation;
       ``(C) for a national security purpose;
       ``(D) for a law enforcement purpose, including the 
     investigation of fraud, as required under subchapter II of 
     chapter 53 of title 31, United States Code, and chapter 2 of 
     title I of Public Law 91-508 (12 U.S.C. 1951-1959), and the 
     enforcement of a child support obligation;
       ``(E) if the display, sale, or purchase of the number is 
     for a business-to-business use, including, but not limited 
     to--
       ``(i) the prevention of fraud (including fraud in 
     protecting an employee's right to employment benefits);
       ``(ii) the facilitation of credit checks or the 
     facilitation of background checks of employees, prospective 
     employees, and volunteers;
       ``(iii) compliance with any requirement related to the 
     social security program established under title II of the 
     Social Security Act (42 U.S.C. 401 et seq.); or
       ``(iv) the retrieval of other information from, or by, 
     other businesses, commercial enterprises, or private 
     nonprofit organizations,

     except that, nothing in this subparagraph shall be construed 
     as permitting a professional or commercial user to display or 
     sell a social security number to the general public;
       ``(F) if the transfer of such a number is part of a data 
     matching program under the Computer Matching and Privacy 
     Protection Act of 1988 (5 U.S.C. 552a note) or any similar 
     computer data matching program involving a Federal, State, or 
     local agency; or
       ``(G) if such number is required to be submitted as part of 
     the process for applying for any type of Federal, State, or 
     local government benefit or program.
       ``(g) Civil Action in United States District Court; 
     Damages; Attorney's Fees and Costs.--
       ``(1) In general.--Any individual aggrieved by any act of 
     any person in violation of this section may bring a civil 
     action in a United States district court to recover--
       ``(A) such preliminary and equitable relief as the court 
     determines to be appropriate; and
       ``(B) the greater of--
       ``(i) actual damages;
       ``(ii) liquidated damages of $2,500; or
       ``(iii) in the case of a violation that was willful and 
     resulted in profit or monetary gain, liquidated damages of 
     $10,000.
       ``(2) Statute of limitations.--No action may be commenced 
     under this subsection more than 3 years after the date on 
     which the violation was or should reasonably have been 
     discovered by the aggrieved individual.
       ``(3) Nonexclusive remedy.--The remedy provided under this 
     subsection shall be in addition to any other remedy available 
     to the individual.
       ``(h) Civil Penalties.--
       ``(1) In general.--Any person who the Attorney General 
     determines has violated this section shall be subject, in 
     addition to any other penalties that may be prescribed by 
     law--
       ``(A) to a civil penalty of not more than $5,000 for each 
     such violation; and
       ``(B) to a civil penalty of not more than $50,000, if the 
     violations have occurred with such frequency as to constitute 
     a general business practice.
       ``(2) Determination of violations.--Any willful violation 
     committed contemporaneously with respect to the social 
     security numbers of 2 or more individuals by means of mail, 
     telecommunication, or otherwise, shall be treated as a 
     separate violation with respect to each such individual.
       ``(3) Enforcement procedures.--The provisions of section 
     1128A of the Social Security Act (42 U.S.C. 1320a-7a), other 
     than subsections (a), (b), (f), (h), (i), (j), (m), and (n) 
     and the first sentence of subsection (c) of such section, and 
     the provisions of subsections (d) and (e) of section 205 of 
     such Act (42 U.S.C. 405) shall apply to a civil penalty under 
     this subsection in the same manner as such provisions apply 
     to a penalty or proceeding under section 1128A(a) of such Act 
     (42 U.S.C. 1320a-7a(a)), except that, for purposes of this 
     paragraph, any reference in section 1128A of such Act (42 
     U.S.C. 1320a-7a) to the Secretary shall be deemed to be a 
     reference to the Attorney General.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     47 of title 18, United States Code, is amended by inserting 
     after the item relating to section 1028 the following:

``1028A. Prohibition of the display, sale, or purchase of social 
              security numbers.''.

       (b) Criminal Sanctions.--Section 208(a) of the Social 
     Security Act (42 U.S.C. 408(a)) is amended--
       (1) in paragraph (8), by inserting ``or'' after the 
     semicolon; and
       (2) by inserting after paragraph (8) the following new 
     paragraphs:
       ``(9) except as provided in paragraph (5) of section 
     1028A(a) of title 18, United States Code, knowingly and 
     willfully displays, sells, or purchases (as those terms are 
     defined in paragraph (1) of such section) any individual's 
     social security number (as defined in such paragraph) without 
     the affirmatively expressed consent of that individual after 
     having met the prerequisites for consent under paragraph (4) 
     of such section, electronically or in writing, with respect 
     to that individual; or
       ``(10) obtains any individual's social security number for 
     the purpose of locating or identifying the individual with 
     the intent to injure or to harm that individual, or to use 
     the identity of that individual for an illegal purpose;''.
       (c) Effective Date.--Section 1028A of title 18, United 
     States Code (as added by subsection (a)), and section 208 of 
     the Social Security Act (42 U.S.C. 408) (as amended by 
     subsection (b)) shall take effect 30 days after the date on 
     which the final regulations promulgated under section 204(b) 
     are published in the Federal Register.

     SEC. 203. NO PROHIBITION WITH RESPECT TO PUBLIC RECORDS.

       (a) Public Records Exception.--
       (1) In general.--Chapter 47 of title 18, United States Code 
     (as amended by section 202(a)(1)), is amended by inserting 
     after section 1028A the following:

     ``Sec. 1028B. No prohibition of the display, sale, or 
       purchase of social security numbers included in public 
       records

       ``(a) In General.--Nothing in section 1028A shall be 
     construed to prohibit or limit the display, sale, or purchase 
     of any public record which includes a social security number 
     that--
       ``(1) is incidentally included in a public record, as 
     defined in subsection (d);
       ``(2) is intended to be purchased, sold, or displayed 
     pursuant to an exception contained in section 1028A(f);
       ``(3) is intended to be purchased, sold, or displayed 
     pursuant to the consent provisions of subsections (b), (c), 
     and (e) of section 1028A; or
       ``(4) includes a redaction of the nonincidental occurrences 
     of the social security numbers when sold or displayed to 
     members of the general public.
       ``(b) Agency Requirements.--Each agency in possession of 
     documents that contain social security numbers which are 
     nonincidental, shall, with respect to such documents--
       ``(1) ensure that access to such numbers is restricted to 
     persons who may obtain them in accordance with applicable 
     law;
       ``(2) require an individual who is not exempt under section 
     1028A(f) to provide the social security number of the person 
     who is the subject of the document before making such 
     document available; or
       ``(3) redact the social security number from the document 
     prior to providing a copy of the requested document to an 
     individual who is not exempt under section 1028A(f) and who 
     is unable to provide the social security number of the person 
     who is the subject of the document.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be used as a basis for permitting or requiring a State or 
     local government entity or other repository of public 
     documents to expand or to limit access to documents 
     containing social security numbers to entities covered by the 
     exception in section 1028A(f).
       ``(d) Definitions.--In this section:
       ``(1) Incidental.--The term `incidental' means that the 
     social security number is not routinely displayed in a 
     consistent and predictable manner on the public record by a 
     government entity, such as on the face of a document.
       ``(2) Public record.--The term `public record' means any 
     item, collection, or grouping of information about an 
     individual that is maintained by a Federal, State, or local 
     government entity and that is made available to the 
     public.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     47 of title 18, United States Code (as amended by section 
     202(a)(2)), is amended by inserting after the item relating 
     to section 1028A the following:

``1028B. No prohibition of the display, sale, or purchase of social 
              security numbers included in public records.''.

     SEC. 204. RULEMAKING AUTHORITY OF THE ATTORNEY GENERAL.

       (a) In General.--Except as provided in subsection (b), the 
     Attorney General may prescribe such rules and regulations as 
     the Attorney General deems necessary to carry out the 
     provisions of section 202.
       (b) Business-to-Business Commercial Display, Sale, or 
     Purchase Rulemaking.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Attorney General, in consultation 
     with the Commissioner of Social Security, the Federal

[[Page 10859]]

     Trade Commission, and such other Federal agencies as the 
     Attorney General determines appropriate, may conduct such 
     rulemaking procedures in accordance with subchapter II of 
     chapter 5 of title 5, United States Code, as are necessary to 
     promulgate regulations to implement and clarify the business-
     to-business provisions pertaining to section 1028A(f)(1)(E) 
     of title 18, United States Code (as added by section 
     202(a)(1)). The Attorney General shall consult with other 
     agencies to ensure, where possible, that these provisions are 
     consistent with other privacy laws, including title V of the 
     Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.).
       (2) Factors to be considered.--In promulgating the 
     regulations required under paragraph (1), the Attorney 
     General shall, at a minimum, consider the following factors:
       (A) The benefit to a particular business practice and to 
     the general public of the sale or purchase of an individual's 
     social security number.
       (B) The risk that a particular business practice will 
     promote the use of the social security number to commit 
     fraud, deception, or crime.
       (C) The presence of adequate safeguards to prevent the 
     misappropriation of social security numbers by the general 
     public, while permitting internal business uses of such 
     numbers.
       (D) The implementation of procedures to prevent identity 
     thieves, stalkers, and others with ill intent from posing as 
     legitimate businesses to obtain social security numbers.

     SEC. 205. TREATMENT OF SOCIAL SECURITY NUMBERS ON GOVERNMENT 
                   DOCUMENTS.

       (a) Prohibition of Use of Social Security Account Numbers 
     on Checks Issued for Payment by Governmental Agencies.--
       (1) In general.--Section 205(c)(2)(C) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at 
     the end the following new clause:
       ``(x) No Federal, State, or local agency may display the 
     social security account number of any individual, or any 
     derivative of such number, on any check issued for any 
     payment by the Federal, State, or local agency.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to violations of section 
     205(c)(2)(C)(x) of the Social Security Act (42 U.S.C. 
     405(c)(2)(C)(x)), as added by paragraph (1), occurring after 
     the date that is 3 years after the date of enactment of this 
     Act.
       (b) Prohibition of Appearance of Social Security Account 
     Numbers on Driver's Licenses or Motor Vehicle Registration.--
       (1) In general.--Section 205(c)(2)(C)(vi) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
       (A) by inserting ``(I)'' after ``(vi)''; and
       (B) by adding at the end the following new subclause:
       ``(II)(aa) An agency of a State (or political subdivision 
     thereof), in the administration of any driver's license or 
     motor vehicle registration law within its jurisdiction, may 
     not disclose the social security account numbers issued by 
     the Commissioner of Social Security, or any derivative of 
     such numbers, on any driver's license or motor vehicle 
     registration or any other document issued by such State (or 
     political subdivision thereof) to an individual for purposes 
     of identification of such individual.
       ``(bb) Nothing in this subclause shall be construed as 
     precluding an agency of a State (or political subdivision 
     thereof), in the administration of any driver's license or 
     motor vehicle registration law within its jurisdiction, from 
     using a social security account number for an internal use or 
     to link with the database of an agency of another State that 
     is responsible for the administration of any driver's license 
     or motor vehicle registration law.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to licenses, registrations, and 
     other documents issued or reissued after the date that is 1 
     year after the date of enactment of this Act.
       (c) Prohibition of Inmate Access to Social Security Account 
     Numbers.--
       (1) In general.--Section 205(c)(2)(C) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by 
     subsection (b)) is amended by adding at the end the following 
     new clause:
       ``(xi) No Federal, State, or local agency may employ, or 
     enter into a contract for the use or employment of, prisoners 
     in any capacity that would allow such prisoners access to the 
     social security account numbers of other individuals. For 
     purposes of this clause, the term `prisoner' means an 
     individual confined in a jail, prison, or other penal 
     institution or correctional facility pursuant to such 
     individual's conviction of a criminal offense.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to employment of prisoners, or entry 
     into contract with prisoners, after the date that is 1 year 
     after the date of enactment of this Act.

     SEC. 206. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL SECURITY 
                   NUMBER FOR CONSUMER TRANSACTIONS.

       (a) In General.--Part A of title XI of the Social Security 
     Act (42 U.S.C. 1301 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL 
                   SECURITY NUMBER FOR CONSUMER TRANSACTIONS.

       ``(a) In General.--A commercial entity may not require an 
     individual to provide the individual's social security number 
     when purchasing a commercial good or service or deny an 
     individual the good or service for refusing to provide that 
     number except--
       ``(1) for any purpose relating to--
       ``(A) obtaining a consumer report for any purpose permitted 
     under the Fair Credit Reporting Act;
       ``(B) a background check of the individual conducted by a 
     landlord, lessor, employer, voluntary service agency, or 
     other entity as determined by the Attorney General;
       ``(C) law enforcement; or
       ``(D) a Federal or State law requirement; or
       ``(2) if the social security number is necessary to verify 
     identity and to prevent fraud with respect to the specific 
     transaction requested by the consumer and no other form of 
     identification can produce comparable information.
       ``(b) Other Forms of Identification.--Nothing in this 
     section shall be construed to prohibit a commercial entity 
     from--
       ``(1) requiring an individual to provide 2 forms of 
     identification that do not contain the social security number 
     of the individual; or
       ``(2) denying an individual a good or service for refusing 
     to provide 2 forms of identification that do not contain such 
     number.
       ``(c) Application of Civil Money Penalties.--A violation of 
     this section shall be deemed to be a violation of section 
     1129(a)(3)(F).
       ``(d) Application of Criminal Penalties.--A violation of 
     this section shall be deemed to be a violation of section 
     208(a)(8).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to requests to provide a social security number 
     made on or after the date of enactment of this Act.

     SEC. 207. EXTENSION OF CIVIL MONETARY PENALTIES FOR MISUSE OF 
                   A SOCIAL SECURITY NUMBER.

       (a) Treatment of Withholding of Material Facts.--
       (1) Civil penalties.--The first sentence of section 
     1129(a)(1) of the Social Security Act (42 U.S.C. 1320a-
     8(a)(1)) is amended--
       (A) by striking ``who'' and inserting ``who--'';
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to'' and inserting the following:
       ``(A) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading;
       ``(B) makes such a statement or representation for such use 
     with knowing disregard for the truth; or
       ``(C) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     individual knows or should know is material to the 
     determination of any initial or continuing right to or the 
     amount of monthly insurance benefits under title II or 
     benefits or payments under title VIII or XVI and the 
     individual knows, or should know, that the statement or 
     representation with such omission is false or misleading or 
     that the withholding of such disclosure is misleading,

     shall be subject to'';
       (C) by inserting ``or each receipt of such benefits while 
     withholding disclosure of such fact'' after ``each such 
     statement or representation'';
       (D) by inserting ``or because of such withholding of 
     disclosure of a material fact'' after ``because of such 
     statement or representation''; and
       (E) by inserting ``or such a withholding of disclosure'' 
     after ``such a statement or representation''.
       (2) Administrative procedure for imposing penalties.--The 
     first sentence of section 1129A(a) of the Social Security Act 
     (42 U.S.C. 1320a-8a(a)) is amended--
       (A) by striking ``who'' and inserting ``who--''; and
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to'' and inserting the following new 
     paragraphs:
       ``(1) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading;
       ``(2) makes such a statement or representation for such use 
     with knowing disregard for the truth; or
       ``(3) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     individual knows or should know is material to the 
     determination of any initial or continuing right to or the 
     amount of monthly insurance benefits under title II or 
     benefits or payments under title VIII or XVI and the 
     individual knows, or should know, that the statement or 
     representation with such omission is false or misleading or 
     that the withholding of such disclosure is misleading,


[[Page 10860]]


     shall be subject to''.
       (b) Application of Civil Money Penalties to Elements of 
     Criminal Violations.--Section 1129(a) of the Social Security 
     Act (42 U.S.C. 1320a-8(a)), as amended by subsection (a)(1), 
     is amended--
       (1) by redesignating paragraph (2) as paragraph (4);
       (2) by redesignating the last sentence of paragraph (1) as 
     paragraph (2) and inserting such paragraph after paragraph 
     (1); and
       (3) by inserting after paragraph (2) (as so redesignated) 
     the following new paragraph:
       ``(3) Any person (including an organization, agency, or 
     other entity) who--
       ``(A) uses a social security account number that such 
     person knows or should know has been assigned by the 
     Commissioner of Social Security (in an exercise of authority 
     under section 205(c)(2) to establish and maintain records) on 
     the basis of false information furnished to the Commissioner 
     by any person;
       ``(B) falsely represents a number to be the social security 
     account number assigned by the Commissioner of Social 
     Security to any individual, when such person knows or should 
     know that such number is not the social security account 
     number assigned by the Commissioner to such individual;
       ``(C) knowingly alters a social security card issued by the 
     Commissioner of Social Security, or possesses such a card 
     with intent to alter it;
       ``(D) knowingly displays, sells, or purchases a card that 
     is, or purports to be, a card issued by the Commissioner of 
     Social Security, or possesses such a card with intent to 
     display, purchase, or sell it;
       ``(E) counterfeits a social security card, or possesses a 
     counterfeit social security card with intent to display, 
     sell, or purchase it;
       ``(F) discloses, uses, compels the disclosure of, or 
     knowingly displays, sells, or purchases the social security 
     account number of any person in violation of the laws of the 
     United States;
       ``(G) with intent to deceive the Commissioner of Social 
     Security as to such person's true identity (or the true 
     identity of any other person) furnishes or causes to be 
     furnished false information to the Commissioner with respect 
     to any information required by the Commissioner in connection 
     with the establishment and maintenance of the records 
     provided for in section 205(c)(2);
       ``(H) offers, for a fee, to acquire for any individual, or 
     to assist in acquiring for any individual, an additional 
     social security account number or a number which purports to 
     be a social security account number; or
       ``(I) being an officer or employee of a Federal, State, or 
     local agency in possession of any individual's social 
     security account number, willfully acts or fails to act so as 
     to cause a violation by such agency of clause (vi)(II) or (x) 
     of section 205(c)(2)(C)

     shall be subject to, in addition to any other penalties that 
     may be prescribed by law, a civil money penalty of not more 
     than $5,000 for each violation. Such person shall also be 
     subject to an assessment, in lieu of damages sustained by the 
     United States resulting from such violation, of not more than 
     twice the amount of any benefits or payments paid as a result 
     of such violation.''.
       (c) Clarification of Treatment of Recovered Amounts.--
     Section 1129(e)(2)(B) of the Social Security Act (42 U.S.C. 
     1320a-8(e)(2)(B)) is amended by striking ``In the case of 
     amounts recovered arising out of a determination relating to 
     title VIII or XVI,'' and inserting ``In the case of any other 
     amounts recovered under this section,''.
       (d) Conforming Amendments.--
       (1) Section 1129(b)(3)(A) of the Social Security Act (42 
     U.S.C. 1320a-8(b)(3)(A)) is amended by striking ``charging 
     fraud or false statements''.
       (2) Section 1129(c)(1) of the Social Security Act (42 
     U.S.C. 1320a-8(c)(1)) is amended by striking ``and 
     representations'' and inserting ``, representations, or 
     actions''.
       (3) Section 1129(e)(1)(A) of the Social Security Act (42 
     U.S.C. 1320a-8(e)(1)(A)) is amended by striking ``statement 
     or representation referred to in subsection (a) was made'' 
     and inserting ``violation occurred''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply with respect to 
     violations of sections 1129 and 1129A of the Social Security 
     Act (42 U.S.C. 1320-8 and 1320a-8a), as amended by this 
     section, committed after the date of enactment of this Act.
       (2) Violations by government agents in possession of social 
     security numbers.--Section 1129(a)(3)(I) of the Social 
     Security Act (42 U.S.C. 1320a-8(a)(3)(I)), as added by 
     subsection (b), shall apply with respect to violations of 
     that section occurring on or after the effective date under 
     section 202(c).

   TITLE III--LIMITATIONS ON SALE AND SHARING OF NONPUBLIC PERSONAL 
                         FINANCIAL INFORMATION

     SEC. 301. DEFINITION OF SALE.

       Section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809) 
     is amended by adding at the end the following:
       ``(12) Sale.--The terms `sale', `sell', and `sold', with 
     respect to nonpublic personal information, mean the exchange 
     of such information for any thing of value, directly or 
     indirectly, including the licensing, bartering, or renting of 
     such information.''.

     SEC. 302. RULES APPLICABLE TO SALE OF NONPUBLIC PERSONAL 
                   INFORMATION.

       Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802) 
     is amended--
       (1) in the section heading, by inserting ``and sales'' 
     after ``disclosures'';
       (2) in subsection (a), by inserting ``or sell'' after 
     ``disclose'';
       (3) in subsection (b)--
       (A) in the heading, by inserting ``for Certain 
     Disclosures'' before the period; and
       (B) by adding at the end the following:
       ``(3) Limitation.--Paragraphs (1) and (2) do not apply to 
     the sale of nonpublic personal information.'';
       (4) by striking subsection (e);
       (5) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (6) by inserting after subsection (b) the following:
       ``(c) Opt-In for Sale of Information.--
       ``(1) Affirmative consent required.--Each agency or 
     authority described in section 504(a) shall, by rule 
     prescribed under that section, prohibit a financial 
     institution that is subject to its jurisdiction from selling 
     any nonpublic personal information to any nonaffiliated third 
     party, unless the consumer to whom the information pertains--
       ``(A) has affirmatively consented in accordance with such 
     rule to the sale of such information; and
       ``(B) has not withdrawn the consent.
       ``(2) Denial of service prohibited.--The rule prescribed 
     pursuant to paragraph (1) shall prohibit a financial 
     institution from denying any consumer a financial product or 
     a financial service for the refusal by the consumer to grant 
     the consent required by such rule.''.

     SEC. 303. EXCEPTIONS TO SALE PROHIBITION.

       Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802), 
     as amended by this title, is amended by adding at the end the 
     following:
       ``(f) General Exceptions.--This section does not prohibit--
       ``(1) the sale or other disclosure of nonpublic personal 
     information to a nonaffiliated third party--
       ``(A) as necessary to effect, administer, or enforce a 
     transaction requested or authorized by the consumer to whom 
     the information pertains, or in connection with--
       ``(i) servicing or processing a financial product or 
     service requested or authorized by the consumer;
       ``(ii) maintaining or servicing the account of the consumer 
     with the financial institution, or with another entity as 
     part of a private label credit card program or other 
     extension of credit on behalf of such entity; or
       ``(iii) a proposed or actual securitization, secondary 
     market sale (including sales of servicing rights), or similar 
     transaction related to a transaction of the consumer;
       ``(B) with the consent or at the direction of the consumer, 
     in accordance with applicable rules prescribed under this 
     subtitle;
       ``(C) to the extent specifically permitted or required 
     under other provisions of law and in accordance with the 
     Right to Financial Privacy Act of 1978; or
       ``(D) to law enforcement agencies (including a Federal 
     functional regulator, the Secretary of the Treasury, with 
     respect to subchapter II of chapter 53 of title 31, United 
     States Code, and chapter 2 of title I of Public Law 91-508 
     (12 U.S.C. 1951-1959), a State insurance authority, or the 
     Federal Trade Commission), self-regulatory organizations, or 
     for an investigation on a matter related to public safety; or
       ``(2) the disclosure, other than the sale, of nonpublic 
     personal information--
       ``(A) to protect the confidentiality or security of the 
     records of the financial institution pertaining to the 
     consumer, the service or product, or the transaction therein;
       ``(B) to protect against or prevent actual or potential 
     fraud, unauthorized transactions, claims, or other liability;
       ``(C) for required institutional risk control, or for 
     resolving customer disputes or inquiries;
       ``(D) to persons holding a legal or beneficial interest 
     relating to the consumer;
       ``(E) to persons acting in a fiduciary or representative 
     capacity on behalf of the consumer;
       ``(F) to provide information to insurance rate advisory 
     organizations, guaranty funds or agencies, applicable rating 
     agencies of the financial institution, persons assessing the 
     compliance of the institution with industry standards, or the 
     attorneys, accountants, or auditors of the institution;
       ``(G) to a consumer reporting agency, in accordance with 
     the Fair Credit Reporting Act or from a consumer report 
     reported by a consumer reporting agency, as those terms are 
     defined in that Act;
       ``(H) in connection with a proposed or actual sale, merger, 
     transfer, or exchange of all or a portion of a business or 
     operating unit if the disclosure of nonpublic personal 
     information concerns solely consumers of such business or 
     unit;
       ``(I) to comply with Federal, State, or local laws, rules, 
     or other applicable legal requirements, or with a properly 
     authorized civil, criminal, or regulatory investigation or 
     subpoena or summons by Federal, State, or local authorities; 
     or

[[Page 10861]]

       ``(J) to respond to judicial process or government 
     regulatory authorities having jurisdiction over the financial 
     institution for examination, compliance, or other purposes, 
     as authorized by law.''.

     SEC. 304. EFFECTIVE DATE.

       This title shall take effect 6 months after the date on 
     which the rules are required to be prescribed under section 
     504(a)(3).

 TITLE IV--LIMITATIONS ON THE PROVISION OF PROTECTED HEALTH INFORMATION

     SEC. 401. DEFINITIONS.

       In this title:
       (1) Business associate.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``business associate'' means, with respect to a 
     covered entity, a person who--
       (i) on behalf of such covered entity or of an organized 
     health care arrangement in which the covered entity 
     participates, but other than in the capacity of a member of 
     the workforce of such covered entity or arrangement, 
     performs, or assists in the performance of--

       (I) a function or activity involving the use or disclosure 
     of individually identifiable health information, including 
     claims processing or administration, data analysis, 
     processing or administration, utilization review, quality 
     assurance, billing, benefit management, practice management, 
     and repricing; or
       (II) any other function or activity regulated under parts 
     160 through 164 of title 45, Code of Federal Regulations; or

       (ii) provides, other than in the capacity of a member of 
     the workforce of such covered entity, legal, actuarial, 
     accounting, consulting, data aggregation, management, 
     administrative, accreditation, or financial services to or 
     for such covered entity, or to or for an organized health 
     care arrangement in which the covered entity participates, 
     where the provision of the service involves the disclosure of 
     individually identifiable health information from such 
     covered entity or arrangement, or from another business 
     associate of such covered entity or arrangement, to the 
     person.
       (B) Limitations.--
       (i) In general.--A covered entity participating in an 
     organized health care arrangement that performs a function or 
     activity as described by subparagraph (A)(i) for or on behalf 
     of such organized health care arrangement, or that provides a 
     service as described in subparagraph (A)(ii) to or for such 
     organized health care arrangement, does not, simply through 
     the performance of such function or activity or the provision 
     of such service, become a business associate of other covered 
     entities participating in such organized health care 
     arrangement.
       (ii) Limitation.--A covered entity may be a business 
     associate of another covered entity.
       (2) Covered entity.--The term ``covered entity'' means--
       (A) a health plan;
       (B) a health care clearinghouse; and
       (C) a health care provider who transmits any health 
     information in electronic form in connection with a 
     transaction covered by parts 160 through 164 of title 45, 
     Code of Federal Regulations.
       (3) Disclosure.--The term ``disclosure'' means the release, 
     transfer, provision of access to, or divulging in any other 
     manner of information outside the entity holding the 
     information.
       (4) Employer.--The term ``employer'' means a person or 
     organization for whom an individual performs or has performed 
     any service, of whatever nature, as the employee of that 
     person or organization, except that--
       (A) if the person for whom the individual performs or has 
     performed the service does not have control of the payment of 
     wages for such service, the term ``employer'' means the 
     person having control of the payment of those wages; and
       (B) in the case of a person paying wages on behalf of a 
     nonresident alien individual, foreign partnership, or foreign 
     corporation, not engaged in trade or business within the 
     United States, the term ``employer'' means that person.
       (5) Group health plan.--The term ``group health plan'' 
     means an employee welfare benefit plan (as defined in section 
     3(1) of the Employee Retirement Income and Security Act of 
     1974 (29 U.S.C. 1002(1)), including insured and self-insured 
     plans, to the extent that the plan provides medical care (as 
     defined in section 2791(a)(2) of the Public Health Service 
     Act, 42 U.S.C. 300gg-91(a)(2)), including items and services 
     paid for as medical care, to employees or their dependents 
     directly or through insurance, reimbursement, or otherwise, 
     that--
       (A) has 50 or more participants (as defined in section 3(7) 
     of Employee Retirement Income and Security Act of 1974, 29 
     U.S.C. 1002(7)); or
       (B) is administered by an entity other than the employer 
     that established and maintains the plan.
       (6) Health care.--The term ``health care'' means care, 
     services, or supplies related to the health of an individual, 
     including--
       (A) preventive, diagnostic, therapeutic, rehabilitative, 
     maintenance, or palliative care and counseling services, 
     assessment, or procedure with respect to the physical or 
     mental condition, or functional status, of an individual or 
     that affects the structure or function of the body; and
       (B) a sale or dispensing of a drug, device, equipment, or 
     other item in accordance with a prescription.
       (7) Health care clearinghouse.--The term ``health care 
     clearinghouse'' means a public or private entity, including a 
     billing service, repricing company, community health 
     management information system or community health information 
     system, and value-added networks and switches, that--
       (A) processes or facilitates the processing of health 
     information received from another entity in a nonstandard 
     format or containing nonstandard data content into standard 
     data elements or a standard transaction; or
       (B) receives a standard transaction from another entity and 
     processes or facilitates the processing of health information 
     into nonstandard format or nonstandard data content for the 
     receiving entity.
       (8) Health care provider.--The term ``health care 
     provider'' has the same meaning given the terms ``provider of 
     services'' and ``provider of medical or health services'' in 
     subsections (u) and (s) of section 1861 of the Social 
     Security Act (42 U.S.C. 1395x), and includes any other person 
     or organization who furnishes, bills, or is paid for health 
     care in the normal course of business.
       (9) Health information.--The term ``health information'' 
     means any information, whether oral or recorded in any form 
     or medium, that--
       (A) is created or received by a health care provider, 
     health plan, public health authority, employer, life insurer, 
     school or university, or health care clearinghouse; and
       (B) relates to the past, present, or future physical or 
     mental health or condition of an individual; the provision of 
     health care to an individual; or the past, present, or future 
     payment for the provision of health care to an individual.
       (10) Health insurance issuer.--The term ``health insurance 
     issuer'' means a health insurance issuer (as defined in 
     section 2791(b)(2) of the Public Health Service Act, 42 
     U.S.C. 300gg-91(b)(2)) and used in the definition of health 
     plan in this section and includes an insurance company, 
     insurance service, or insurance organization (including an 
     HMO) that is licensed to engage in the business of insurance 
     in a State and is subject to State law that regulates 
     insurance. Such term does not include a group health plan.
       (11) Health maintenance organization.--The term ``health 
     maintenance organization'' (HMO) (as defined in section 
     2791(b)(3) of the Public Health Service Act, 42 U.S.C. 300gg-
     91 (b)(3)) and used in the definition of health plan in this 
     section, means a federally qualified HMO, an organization 
     recognized as an HMO under State law, or a similar 
     organization regulated for solvency under State law in the 
     same manner and to the same extent as such an HMO.
       (12) Health oversight agency.--The term ``health oversight 
     agency'' means an agency or authority of the United States, a 
     State, a territory, a political subdivision of a State or 
     territory, or an Indian tribe, or a person or entity acting 
     under a grant of authority from or contract with such public 
     agency, including the employees or agents of such public 
     agency or its contractors or persons or entities to whom it 
     has granted authority, that is authorized by law to oversee 
     the health care system (whether public or private) or 
     government programs in which health information is necessary 
     to determine eligibility or compliance, or to enforce civil 
     rights laws for which health information is relevant.
       (13) Health plan.--The term ``health plan'' means an 
     individual or group plan that provides, or pays the cost of, 
     medical care, as defined in section 2791(a)(2) of the Public 
     Health Service Act (42 U.S.C. 300gg-91(a)(2))--
       (A) including, singly or in combination--
       (i) a group health plan;
       (ii) a health insurance issuer;
       (iii) an HMO;
       (iv) part A or B of the medicare program under title XVIII 
     of the Social Security Act (42 U.S.C. 1395 et seq.);
       (v) the medicaid program under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.);
       (vi) an issuer of a medicare supplemental policy (as 
     defined in section 1882(g)(1) of the Social Security Act, 42 
     U.S.C. 1395ss(g)(1));
       (vii) an issuer of a long-term care policy, excluding a 
     nursing home fixed-indemnity policy;
       (viii) an employee welfare benefit plan or any other 
     arrangement that is established or maintained for the purpose 
     of offering or providing health benefits to the employees of 
     2 or more employers;
       (ix) the health care program for active military personnel 
     under title 10, United States Code;
       (x) the veterans health care program under chapter 17 of 
     title 38, United States Code;
       (xi) the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) (as defined in section 1072(4) 
     of title 10, United States Code);
       (xii) the Indian Health Service program under the Indian 
     Health Care Improvement Act (25 U.S.C. 1601 et seq.);

[[Page 10862]]

       (xiii) the Federal Employees Health Benefits Program under 
     chapter 89 of title 5, United States Code;
       (xiv) an approved State child health plan under title XXI 
     of the Social Security Act (42 U.S.C. 1397aa et seq.), 
     providing benefits for child health assistance that meet the 
     requirements of section 2103 of such Act (42 U.S.C. 1397cc);
       (xv) the Medicare+Choice program under part C of title 
     XVIII of the Social Security Act (42 U.S.C. 1395w-21 et 
     seq.);
       (xvi) a high risk pool that is a mechanism established 
     under State law to provide health insurance coverage or 
     comparable coverage to eligible individuals; and
       (xvii) any other individual or group plan, or combination 
     of individual or group plans, that provides or pays for the 
     cost of medical care (as defined in section 2791(a)(2) of the 
     Public Health Service Act (42 U.S.C. 300gg-91(a)(2)); and
       (B) excluding--
       (i) any policy, plan, or program to the extent that it 
     provides, or pays for the cost of, excepted benefits that are 
     listed in section 2791(c)(1) of the Public Health Service Act 
     (42 U.S.C. 300gg-91(c)(1); and
       (ii) a government-funded program (other than 1 listed in 
     clause (i) through (xvi) of paragraph (1)), whose principal 
     purpose is other than providing, or paying the cost of, 
     health care, or whose principal activity is the direct 
     provision of health care to persons, or the making of grants 
     to fund the direct provision of health care to persons.
       (14) Individually identifiable health information.--The 
     term ``individually identifiable health information'' means 
     information that is a subset of health information, including 
     demographic information collected from an individual, that--
       (A) is created or received by a covered entity or employer; 
     and
       (B)(i) relates to the past, present, or future physical or 
     mental health or condition of an individual, the provision of 
     health care to an individual, or the past, present, or future 
     payment for the provision of health care to an individual; 
     and
       (ii)(I) identifies an individual; or
       (II) with respect to which there is a reasonable basis to 
     believe that the information can be used to identify an 
     individual.
       (15) Law enforcement official.--The term ``law enforcement 
     official'' means an officer or employee of any agency or 
     authority of the United States, a State, a territory, a 
     political subdivision of a State or territory, or an Indian 
     tribe, who is empowered by law to--
       (A) investigate or conduct an official inquiry into a 
     potential violation of law; or
       (B) prosecute or otherwise conduct a criminal, civil, or 
     administrative proceeding arising from an alleged violation 
     of law.
       (16) Life insurer.--The term ``life insurer'' means a life 
     insurance company (as defined in section 816 of the Internal 
     Revenue Code of 1986), including the employees and agents of 
     such company.
       (17) Marketing.--
       (A) In general.--The term ``marketing'' means to make a 
     communication about a product or service a purpose of which 
     is to encourage recipients of the communication to purchase 
     or use the product or service.
       (B) Limitation.--Such term does not include communications 
     that meet the requirements of subparagraph (C) and that are 
     made by a covered entity--
       (i) for the purpose of describing the entities 
     participating in a health care provider network or health 
     plan network, or for the purpose of describing if and the 
     extent to which a product or service (or payment for such 
     product or service) is provided by a covered entity or 
     included in a plan of benefits; or
       (ii) that are tailored to the circumstances of a particular 
     individual and the communications are--

       (I) made by a health care provider to an individual as part 
     of the treatment of the individual, and for the purpose of 
     furthering the treatment of that individual; or
       (II) made by a health care provider to an individual in the 
     course of managing the treatment of that individual, or for 
     the purpose of directing or recommending to that individual 
     alternative treatments, therapies, health care providers, or 
     settings of care.

       (C) Not included.--A communication described in 
     subparagraph (B) is not included in marketing if--
       (i) the communication is made orally; or
       (ii) the communication is in writing and the covered entity 
     does not receive direct or indirect remuneration from a third 
     party for making the communication.
       (18) Noncovered entity.--
       (A) In general.--The term ``noncovered entity'' means any 
     person or public or private entity, including but not limited 
     to a health researcher, school or university, life insurer, 
     employer, public health authority, health oversight agency, 
     or law enforcement official, or any person acting as an agent 
     of such entities or persons, that is not a covered entity.
       (B) Limitation.--The term ``noncovered entity'' includes a 
     covered entity if such covered entity is acting as a business 
     associate.
       (19) Organized health care arrangement.--The term 
     ``organized health care arrangement'' means--
       (A) a clinically integrated care setting in which 
     individuals typically receive health care from more than 1 
     health care provider;
       (B) an organized system of health care in which more than 1 
     covered entity participates, and in which the participating 
     covered entities--
       (i) hold themselves out to the public as participating in a 
     joint arrangement; and
       (ii) participate in joint activities including at least--

       (I) utilization review, in which health care decisions by 
     participating covered entities are reviewed by other 
     participating covered entities or by a third party on their 
     behalf;


       (II) quality assessment and improvement activities, in 
     which treatment provided by participating covered entities is 
     assessed by other participating covered entities or by a 
     third party on their behalf; or
       (III) payment activities, if the financial risk for 
     delivering health care is shared, in part or in whole, by 
     participating covered entities through the joint arrangement 
     and if protected health information created or received by a 
     covered entity is reviewed by other participating covered 
     entities or by a third party on their behalf for the purpose 
     of administering the sharing of financial risk;

       (C) a group health plan and a health insurance issuer or 
     HMO with respect to such group health plan, but only with 
     respect to protected health information created or received 
     by such health insurance issuer or HMO that relates to 
     individuals who are or who have been participants or 
     beneficiaries in such group health plan;
       (D) a group health plan and 1 or more other group health 
     plans each of which are maintained by the same plan sponsor; 
     or
       (E) the group health plans described in subparagraph (D) 
     and health insurance issuers or HMOs with respect to such 
     group health plans, but only with respect to protected health 
     information created or received by such health insurance 
     issuers or HMOs that relates to individuals who are or have 
     been participants or beneficiaries in any of such group 
     health plans.
       (20) Protected health information.--The term ``protected 
     health information'' means individually identifiable health 
     information that is in any form or medium. The term does not 
     include individually identifiable health information in 
     education records covered by section 444 of the General 
     Education Provisions Act (20 U.S.C. 1232g).
       (21) Public health authority.--The term ``public health 
     authority'' means an agency or authority of the United 
     States, a State, a territory, a political subdivision of a 
     State or territory, or an Indian tribe, or a person or entity 
     acting under a grant of authority from or contract with such 
     public agency, including employees or agents of such public 
     agency or its contractors or persons or entities to whom it 
     has granted authority, that is responsible for public health 
     matters as part of its official mandate.
       (22) School or university.--The term ``school or 
     university'' means an institution or place for instruction or 
     education, including an elementary school, secondary school, 
     or institution of higher learning, a college, or an 
     assemblage of colleges united under 1 corporate organization 
     or government.
       (23) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (24) Sale; sell; sold.--The terms ``sale'', ``sell'', and 
     ``sold'', with respect to protected health information, mean 
     the exchange of such information for anything of value, 
     directly or indirectly, including the licensing, bartering, 
     or renting of such information.
       (25) Use.--The term ``use'' means, with respect to 
     individually identifiable health information, the sharing, 
     employment, application, utilization, examination, or 
     analysis of such information within an entity that maintains 
     such information.
       (26) Writing.--The term ``writing'' means writing in either 
     a paper-based or computer-based form, including electronic 
     and digital signatures.

     SEC. 402. PROHIBITION AGAINST SELLING PROTECTED HEALTH 
                   INFORMATION.

       (a) In General.--A noncovered entity shall not sell the 
     protected health information of an individual without an 
     authorization that is valid under section 403. When a 
     noncovered entity obtains or receives authorization to sell 
     such information, such sale must be consistent with such 
     authorization.
       (b) Scope.--A sale of protected health information as 
     described under subsection (a) shall be limited to the 
     minimum amount of information necessary to accomplish the 
     purpose for which the sale is made.
       (c) Purpose.--A recipient of information sold pursuant to 
     this title may use or disclose such information solely to 
     carry out the purpose for which the information was sold.
       (d) Not Required.--Nothing in this title permitting the 
     sale of protected health information shall be construed to 
     require such sale.
       (e) Identification of Information as Protected Health 
     Information.--Information sold pursuant to this title shall 
     be clearly identified as protected health information.
       (f) No Waiver.--Except as provided in this title, an 
     individual's authorization to sell protected health 
     information shall not be construed as a waiver of any rights 
     that the

[[Page 10863]]

     individual has under other Federal or State laws, the rules 
     of evidence, or common law.

     SEC. 403. AUTHORIZATION FOR SALE OF PROTECTED HEALTH 
                   INFORMATION.

       (a) Valid Authorization.--A valid authorization is a 
     document that complies with all requirements of this section. 
     Such authorization may include additional information not 
     required under this section, provided that such information 
     is not inconsistent with the requirements of this section.
       (b) Defective Authorization.--An authorization is not 
     valid, if the document submitted has any of the following 
     defects:
       (1) The expiration date has passed or the expiration event 
     is known by the noncovered entity to have occurred.
       (2) The authorization has not been filled out completely, 
     with respect to an element described in subsections (e) and 
     (f).
       (3) The authorization is known by the noncovered entity to 
     have been revoked.
       (4) The authorization lacks an element required by 
     subsections (e) and (f).
       (5) Any material information in the authorization is known 
     by the noncovered entity to be false.
       (c) Revocation of Authorization.--An individual may revoke 
     an authorization provided under this section at any time 
     provided that the revocation is in writing, except to the 
     extent that the noncovered entity has taken action in 
     reliance thereon.
       (d) Documentation.--
       (1) In general.--A noncovered entity must document and 
     retain any signed authorization under this section as 
     required under paragraph (2).
       (2) Standard.--A noncovered entity shall, if a 
     communication is required by this title to be in writing, 
     maintain such writing, or an electronic copy, as 
     documentation.
       (3) Retention period.--A noncovered entity shall retain the 
     documentation required by this section for 6 years from the 
     date of its creation or the date when it last was in effect, 
     whichever is later.
       (e) Content of Authorization.--
       (1) Content.--An authorization described in subsection (a) 
     shall--
       (A) contain a description of the information to be sold 
     that identifies such information in a specific and meaningful 
     manner;
       (B) contain the name or other specific identification of 
     the person, or class of persons, authorized to sell the 
     information;
       (C) contain the name or other specific identification of 
     the person, or class of persons, to whom the information is 
     to be sold;
       (D) include an expiration date or an expiration event 
     relating to the selling of such information that signifies 
     that the authorization is valid until such date or event;
       (E) include a statement that the individual has a right to 
     revoke the authorization in writing and the exceptions to the 
     right to revoke, and a description of the procedure involved 
     in such revocation;
       (F) be in writing and include the signature of the 
     individual and the date, or if the authorization is signed by 
     a personal representative of the individual, a description of 
     such representative's authority to act for the individual; 
     and
       (G) include a statement explaining the purpose for which 
     such information is sold.
       (2) Plain language.--The authorization shall be written in 
     plain language.
       (f) Notice.--
       (1) In general.--The authorization shall include a 
     statement that the individual may--
       (A) inspect or copy the protected health information to be 
     sold; and
       (B) refuse to sign the authorization.
       (2) Copy to the individual.--A noncovered entity shall 
     provide the individual with a copy of the signed 
     authorization.
       (g) Model Authorizations.--The Secretary, after notice and 
     opportunity for public comment, shall develop and disseminate 
     model written authorizations of the type described in this 
     section and model statements of the limitations on such 
     authorizations. Any authorization obtained on a model 
     authorization form developed by the Secretary pursuant to the 
     preceding sentence shall be deemed to satisfy the 
     requirements of this section.
       (h) Noncoercion.--A covered entity or noncovered entity 
     shall not condition the purchase of a product or the 
     provision of a service to an individual based on whether such 
     individual provides an authorization to such entity as 
     described in this section.

     SEC. 404. PROHIBITION AGAINST RETALIATION.

       A noncovered entity that collects protected health 
     information, may not adversely affect another person, 
     directly or indirectly, because such person has exercised a 
     right under this title, disclosed information relating to a 
     possible violation of this title, or associated with, or 
     assisted, a person in the exercise of a right under this 
     title.

     SEC. 405. PROHIBITION AGAINST MARKETING PROTECTED HEALTH 
                   INFORMATION.

       (a) In General.--Notwithstanding any other provision of 
     law, a covered entity or noncovered entity shall not use, 
     disclose, or sell protected health information for marketing 
     without an authorization that is valid under subsection (c), 
     except as provided in subsection (b).
       (b) Exception.--A health care provider may use or disclose 
     protected health information for marketing without an 
     authorization when it uses or discloses such information to 
     make a marketing communication to an individual if the 
     communication occurs in a face-to-face encounter between the 
     health care provider and the individual.
       (c) Authorization.--
       (1) In general.--An authorization under subsection (a) 
     shall--
       (A) contain a description of the information to be used, 
     disclosed, or sold that identifies such information in a 
     specific and meaningful manner;
       (B) contain the name or other specific identification of 
     the person, or class of persons, authorized to use, disclose, 
     or sell the information;
       (C) identify persons to whom the information is to be 
     provided or sold;
       (D) include an expiration date or an expiration event 
     relating to the use, disclosure, or sale of such information 
     that signifies that the authorization is valid until such 
     date or event;
       (E) include a statement that the individual has a right to 
     revoke the authorization in writing and that there are 
     exceptions to the right to revoke, and a description of the 
     procedure involved in such revocation;
       (F) be in writing and include the signature of the 
     individual and the date, or if the authorization is signed by 
     a personal representative of the individual, a description of 
     such representative's authority to act for the individual; 
     and
       (G) include a statement explaining the purpose for which 
     such information is used, disclosed, or sold.
       (2) Plain language.--The authorization must be written in 
     plain language.
       (d) Notice.--The authorization shall include a statement 
     that the individual may--
       (1) inspect or copy the protected health information to be 
     marketed as provided under section 164.524 of title 45, Code 
     of Federal Regulations (or a successor regulation); and
       (2) refuse to sign the authorization.
       (e) Documentation.--A covered entity shall retain such 
     documentation as required for any use, disclosure, or sale, 
     as described under section 403(d).
       (f) Rescission of Individually Identifiable Health 
     Information Regulation.--Effective as of December 28, 2000--
       (1) section 164.514(e) of title 45, Code of Federal 
     Regulations (relating to standards for uses and disclosures 
     of protected health information for marketing), promulgated 
     by the Secretary of Health and Human Services in the final 
     rule entitled ``Standards for Privacy of Individually 
     Identifiable Health Information'' (65 F.R. 82462 (December 
     28, 2000)) is void; and
       (2) section 164.514 shall take effect as if subsection (e) 
     of such section had not been included in the promulgation of 
     the final regulation.
       (g) Noncoercion.--A covered entity or noncovered entity 
     shall not condition the purchase of a product or the 
     provision of a service to an individual based on whether such 
     individual provides an authorization to such entity as 
     described in this section.

     SEC. 406. RULE OF CONSTRUCTION.

       Except for the provisions of section 405, all requirements 
     of this title shall not be construed to impose any additional 
     requirements or in any way alter the requirements imposed 
     upon covered entities under parts 160 through 164 of title 
     45, Code of Federal Regulations.

     SEC. 407. REGULATIONS.

       (a) In General.--The Secretary shall promulgate regulations 
     implementing the provisions of this title.
       (b) Timeframe.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall publish proposed 
     regulations in the Federal Register. With regard to such 
     proposed regulations, the Secretary shall provide an 
     opportunity for submission of comments by interested persons 
     during a period of not less than 90 days. Not later than 2 
     years after the date of enactment of this Act, the Secretary 
     shall publish final regulations in the Federal Register.

     SEC. 408. ENFORCEMENT.

       (a) In General.--A covered entity or noncovered entity that 
     knowingly violates section 402 or 405 shall be subject to a 
     civil money penalty under this section.
       (b) Amount.--The civil money penalty described in 
     subsection (a) shall not exceed $100,000. In determining the 
     amount of any penalty to be assessed, the Secretary shall 
     take into account the previous record of compliance of the 
     entity being assessed with the applicable provisions of this 
     title and the gravity of the violation.
       (c) Administrative Review.--
       (1) Opportunity for hearing.--The entity assessed shall be 
     afforded an opportunity for a hearing by the Secretary upon 
     request made within 30 days after the date of the issuance of 
     a notice of assessment. In such hearing the decision shall be 
     made on the record pursuant to section 554 of title 5, United 
     States Code. If no hearing is requested, the assessment shall 
     constitute a final and unappealable order.
       (2) Hearing procedure.--If a hearing is requested, the 
     initial agency decision shall be made by an administrative 
     law judge, and such decision shall become the final order 
     unless the Secretary modifies or vacates the decision. Notice 
     of intent to modify or vacate the decision of the 
     administrative law judge shall be issued to the parties 
     within 30

[[Page 10864]]

     days after the date of the decision of the judge. A final 
     order which takes effect under this paragraph shall be 
     subject to review only as provided under subsection (d).
       (d) Judicial Review.--
       (1) Filing of action for review.--Any entity against whom 
     an order imposing a civil money penalty has been entered 
     after an agency hearing under this section may obtain review 
     by the United States district court for any district in which 
     such entity is located or the United States District Court 
     for the District of Columbia by filing a notice of appeal in 
     such court within 30 days from the date of such order, and 
     simultaneously sending a copy of such notice by registered 
     mail to the Secretary.
       (2) Certification of administrative record.--The Secretary 
     shall promptly certify and file in such court the record upon 
     which the penalty was imposed.
       (3) Standard for review.--The findings of the Secretary 
     shall be set aside only if found to be unsupported by 
     substantial evidence as provided by section 706(2)(E) of 
     title 5, United States Code.
       (4) Appeal.--Any final decision, order, or judgment of the 
     district court concerning such review shall be subject to 
     appeal as provided in chapter 83 of title 28 of such Code.
       (e) Failure To Pay Assessment; Maintenance of Action.--
       (1) Failure to pay assessment.--If any entity fails to pay 
     an assessment after it has become a final and unappealable 
     order, or after the court has entered final judgment in favor 
     of the Secretary, the Secretary shall refer the matter to the 
     Attorney General who shall recover the amount assessed by 
     action in the appropriate United States district court.
       (2) Nonreviewability.--In such action the validity and 
     appropriateness of the final order imposing the penalty shall 
     not be subject to review.
       (f) Payment of Penalties.--Except as otherwise provided, 
     penalties collected under this section shall be paid to the 
     Secretary (or other officer) imposing the penalty and shall 
     be available without appropriation and until expended for the 
     purpose of enforcing the provisions with respect to which the 
     penalty was imposed.

                   TITLE V--DRIVER'S LICENSE PRIVACY

     SEC. 501. DRIVER'S LICENSE PRIVACY.

       Section 2725 of title 18, United States Code, is amended by 
     striking paragraphs (2) and (3) and adding the following:
       ``(2) `person' means an individual, organization, or 
     entity, but does not include a State or agency thereof;
       ``(3) `personal information' means information that 
     identifies an individual, including an individual's 
     photograph, social security number, driver identification 
     number, name, address (but not the 5-digit zip code), 
     telephone number, medical or disability information, any 
     physical copy of a driver's license, birth date, information 
     on physical characteristics, including height, weight, sex or 
     eye color, or any biometric identifiers on a license, 
     including a finger print, but not information on vehicular 
     accidents, driving violations, and driver's status; and
       ``(4) `highly restricted personal information' means an 
     individual's photograph or image, social security number, 
     medical or disability information, any physical copy of a 
     driver's license, driver identification number, birth date, 
     information on physical characteristics, including height, 
     weight, sex, or eye color, or any biometric identifiers on a 
     license, including a finger print.''.

                        TITLE VI--MISCELLANEOUS

     SEC. 601. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that is prohibited under title I, II, or IV of this 
     Act or under any amendment made by such a title, the State, 
     as parens patriae, may bring a civil action on behalf of the 
     residents of the State in a district court of the United 
     States of appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with such titles or such amendments;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Attorney General--
       (i) written notice of the action; and
       (ii) a copy of the complaint for the action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the State attorney general 
     determines that it is not feasible to provide the notice 
     described in such subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Attorney General at the same 
     time as the State attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Attorney General shall have the right to 
     intervene in the action that is the subject of the notice.
       (2) Effect of intervention.--If the Attorney General 
     intervenes in an action under subsection (a), the Attorney 
     General shall have the right to be heard with respect to any 
     matter that arises in that action.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this Act shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on such attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Attorney General of the United States.--
     In any case in which an action is instituted by or on behalf 
     of the Attorney General for violation of a practice that is 
     prohibited under title I, II, IV, or V of this Act or under 
     any amendment made by such a title, no State may, during the 
     pendency of that action, institute an action under subsection 
     (a) against any defendant named in the complaint in that 
     action for violation of that practice.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 602. FEDERAL INJUNCTIVE AUTHORITY.

       In addition to any other enforcement authority conferred 
     under this Act or under an amendment made by this Act, the 
     Federal Government shall have injunctive authority with 
     respect to any violation of any provision of title I, II, or 
     IV of this Act or of any amendment made by such a title, 
     without regard to whether a public or private entity violates 
     such provision.
                                 ______
                                 
      By Mrs. MURRAY (for herself, Mrs. Boxer, Ms. Cantwell, Mr. 
        Kennedy, Ms. Landrieu, Mr. Schumer):
  S. 1056. A bill to authorize grants for community telecommunications 
infrastructure planning, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.
  Mrs. MURRAY. Mr. President, I rise today to introduce legislation to 
help rural and underserved communities across the country get connected 
to the information economy.
  Today I am introducing the Community Telecommunication Planning Act 
of 2001. I am proud to have Senators Boxer, Landrieu, Kennedy, 
Cantwell, and Schumer as original cosponsors. This bill will give small 
and rural communities a new tool to attract high speed services and 
economic development.
  I am especially proud at how this legislation came about. Since last 
year, I've been working with a group of community leaders in Washington 
State to find ways to help communities get connected to advanced 
telecommunications services.
  I want to take a moment to thank the members of my Rural 
Telecommunication Working Group for their hard work on this bill. The 
members include: Brent Bahrenburg, Gregg Caudell, Dee Christensen, Dave 
Danner, Louis Fox, Tami Garrow, Larry Hall, Rod Fleck, Ray King, Dale 
King, Terry Lawhead, Dick Llarman, Jim Miller, Joe Poire, Skye 
Richendrfer, Jim Schmit, Fred Sexton, Ted Sprague, Barbara Tilly, Terry 
Vann, Ron Yenney.
  We met as a working group, and we held forums around the State that 
attracted hundreds of people. We've tapped the ideas of experts, 
service providers and people from across the State who are working to 
get their communities connected. The result in this legislation, which 
I am proud to say is part of Washington State's contribution to our 
national effort to wire all parts of our country.
  This bill addresses a real need in many communities. While urban and 
suburban areas have strong competition between telecommunications 
providers, many small and rural communities are far removed from the 
services they need. We must ensure that all communities have access to 
advanced

[[Page 10865]]

telecommunications like high speed internet access. Just as yesterday's 
infrastructure was built of roads and bridges, today our infrastructure 
includes advanced telecom services. Advanced telecommunications can 
enrich our lives through activities like distance-learning, and they 
can even save lives through efforts like telemedicine. The key is 
access. Access to these services is already turning some small 
companies in rural communities into international marketers of goods 
and services.
  Unfortunately, many small and rural communities are having trouble 
getting the access they need. Before areas can take advantage of some 
of the help and incentives that are out there, they need to work 
together and go through a community planning process. Community plans 
identify the needs and level of demand, create a vision for the future, 
and show what all the players must do to meet the telecom needs of 
their community for today and tomorrow. These plans take resources to 
develop. This bill would provide those funds.
  Providers say they're more likely to invest in an area if it has a 
plan that makes a business case for the costly infrastructure 
investment. Communities want to provide them with that plan, but they 
need help developing it. Unfortunately, many communities get stuck on 
that first step. They don't have the resources to do the studies and 
planning required to attract service. So the members of my Working 
Group came up with a solution: have the federal government provide 
competitive grants that local communities can use to develop their 
plans. I took that idea and put it into this bill.
  When you think about it, it just makes sense. Right now the federal 
government already provides money to help communities plan other 
infrastructure improvements--everything from roads and bridges to 
wastewater facilities. The bill would provide rural and underserved 
communities with grant money for creating community plans, technical 
assessments and other analytical work that needs to be done.
  With these grants, communities will be able to turn their desire for 
access into real access that can improve their communities and 
strengthen their economies. This bill can open the door for thousands 
of small and rural areas across our state to tap the potential of the 
information economy. I urge the Senate to support this bill and I look 
forward to working with my colleagues to see it passed.
                                 ______
                                 
      By Mr. AKAKA (for himself and Mr. Inouye):
  S. 1057. A bill to authorize the addition of lands to Pu`uhonua o 
Honaunau National Historical Park in the State of Hawaii, and for other 
purposes; to the committee on Energy and Natural Resources.
  Mr. AKAKA. Mr. President, I rise today along with my colleague 
Senator Inouye to introduce legislation that is important for the 
people of Hawaii, for the National Park Service, and for the nation as 
a whole. I am offering legislation that would allow expansion of the 
boundaries of Pu`uhonua o Honaunau National Historical Park on the 
island of Hawaii by 238 acres. These lands are adjacent to and 
contiguous with the park's current boundaries.
  Pu`uhonua o Honaunau National Historical Park preserves a site with 
great significance for Native Hawaiians, students of history, 
archaeologists, and the people of Hawaii in general. It is nestled 
along the coast of the island of Hawaii where, up until the early 19th 
century, Hawaiians who broke kapu or one of the ancient laws against 
the gods could avoid certain death by fleeing to this place of refuge 
or ``pu`uhonua.'' The offender would be absolved by a priest and freed 
to leave. Defeated warriors and non-combatants could also find refuge 
here during times of battle. The grounds just outside the wall that 
encloses the pu`uhonua were home to several generations of powerful 
chiefs. The 182-acre park was established in 1961 and includes the 
pu`uhonua and a complex of archeological areas including temple 
platforms, royal fishponds, holua (sledding tracks), and coastal 
village sites. The Haloe o Keawe temple and several other structures 
have been reconstructed to provide visitors an understanding of life 
during the early days of the royal families.
  The park, on the famed Kona coast of the Big Island of Hawaii, is 
appreciated by Native Hawaiians and the general public as a place where 
the story and history of native culture are interpreted for all 
Americans. It is worth mentioning that the National Park Service 
oversees 384 units across the nation, including national parks, 
battlefields, military parks, memorials, monuments and historic trails. 
Of these nearly 400 sites, there are only a handful of national 
historic parks that celebrate interpretations of contemporary native 
cultures. I am pleased that two of these parks, Pu`uhonua o Honaunau 
and Kaloko-Honokohau, are in Hawaii on the Big Island. I invite you all 
to visit us for a truly remarkable immersion in Hawaiian cultural 
history, something very close to my heart.
  The proposed expansion has national significance from an 
archaeological and historical perspective. The archeological resources 
are very important. They illustrate that the Ki`ilae village complex, 
with its numerous sites and features, represents one of the most 
complete assemblages of the coastal component of the ancient Kona field 
system. This system was not just an agricultural system utilized by the 
early Kona chiefs, it was a complex economic system that supported a 
dense population. Archaeological records have shown that this system 
allowed the Kona chiefs to become very powerful for a period of at 
least 200 years and most likely supported the growth and development of 
Kamehameha the Great's army and thereby contributed to his rise to 
power in the Hawaiian Islands. The cultural landscape here includes not 
only residential features, but also religious, agricultural and 
ceremonial sites. The unusually high number of heiau is believed to be 
an indication of the importance of this area to the Hawaiian ruling 
class.
  Mr. President, the expansion of the park has widespread support from 
local communities and county officials. There is a long history of 
study and analysis of expansion possibilities for the park. The 1977 
Master Plan for the Pu`uhonua o Honaunau National Historical Park 
originally proposed boundary expansions in four contiguous areas. 
Following the original master plan, in 1992 the National Park Service 
conducted a feasibility study for protecting adjacent lands through 
boundary expansions. Then in August of last year, given the 
notification of the recent land transaction between the McCandless 
Ranch and a private development corporation, the NPS prepared a special 
report on the proposed park expansion to include the Ki`ilae village 
parcel. The Service held three well-attended community meetings on the 
Big Island, with enthusiastic support for the expansion.
  The 238-acre expansion authorized by this bill is the preferred 
option of the NPS, although additional acres could potentially be 
acquired. The Ki`ilae village property meets the criterion of national 
significance for historical and archaeological areas. The Trust for 
Public Land (TPL) is providing funds for the appraisal of the property, 
and has indicated an interest in helping facilitate the expansion of 
the park. The TPL financial assistance is a departure from their normal 
business practice, and they made the decision to commit the funds in 
recognition of the unique conservation values that this property 
presents for the National Park Service.
  I submit for the Record a letter from Mayor Harry Kim of the County 
of Hawaii which shows the depth of public support and appreciation for 
the expansion, particularly from the Hawaiian community. I ask 
unanimous consent that the letter and the text of the bill be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1057

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pu`uhonau o Honaunau 
     National Historical Park Addition Act of 2001''.

[[Page 10866]]



     SEC. 2. ADDITIONS TO PU`UONAU O HONAUNAU NATIONAL HISTORICAL 
                   PARK.

       The first section of the Act of July 26, 1955 (69 Stat. 
     376, ch. 385; 16 U.S.C. 397) is amended--
       (1) by striking ``That when'' and inserting ``SECTION 1. 
     (s) When''; and
       (2) by adding at the end thereof the following new 
     subsections:
       ``(b) The boundaries of Pu`uhonua o Honaunau National 
     Historical Park are hereby modified to include approximately 
     238 acres of lands and interests therein within the area 
     identified as ``Parcel A'' on the map entitled ``Pu`uhonua o 
     Honaunau National Historical Park Proposed Boundary 
     Additions, Ki`ilae Village'', numbered PUHO-P 415/82,013 and 
     dated May, 2001.
       ``(c) The Secretary of the Interior is authorized to 
     acquire approximately 159 acres of lands and interests 
     therein within the area identified as ``Parcel B'' on the map 
     referenced in subsection (b). Upon the acquisition of such 
     lands or interests therein, the Secretary shall modify the 
     boundaries of Pu`uhonua o Honaunau National Historical Park 
     to include such lands or interests therein.''.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as may be 
     necessary to carry out this Act.
                                  ____



                                             County of Hawaii,

                                           Hilo, HI, May 16, 2001.
     Hon. Daniel Akaka,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Akaka: The purpose of this letter is to 
     request that you seek Congressional authorization to expand 
     the boundaries of Pu`u Honua O Honaunau National Park.
       As I am sure you know, our local media have given a good 
     deal of attention to a development proposed on 800 acres 
     adjacent to Pu`u Honua O Honaunau. The community, 
     particularly the Hawaiian community, has been outspoken in 
     its desire to see this acreage preserved and the park 
     enhanced. Numerous historic sites have been identified on 
     this acreage, some or all related to the ancient Hawaiian 
     village of Ki`ilae.
       My staff has spoken with Ms. Geri Bell, Park 
     Superintendent, and she has said that at least 238 acres (out 
     of the 800) are closely linked to the park and associated 
     with the village of Ki`ilae. Moreover, she has indicated that 
     the owner of the land would willingly sell the 238 acres to 
     the National Park. The next step is Congressional 
     authorization.
       The acquisition could be 238 acres, 800 acres, or something 
     in between, and I would leave that determination to the 
     experts to decide. However, your support for acquisition of 
     at least the smaller portion would allow for a valuable 
     addition to the park and assure preservation of an important 
     part of our ancient Hawaiian heritage.
       I fully support the expansion of the park by acquisition of 
     this acreage, and hope you will let me know if there is any 
     way in which I can be of assistance.
       A similar letter has been sent to the other members of our 
     Congressional delegation.
           Aloha,
                                                        Harry Kim,
     Mayor.

                          ____________________